Đánh giá công cụ marketing cho dịch vụ tư vấn du học ở hà nội

VIETNAM NATIONAL UNIVERSITY, HANOIHANOI SCHOOL OF BUSINESS DAU THU HUONG AN EVALUATION OF MARKETING TOOLS FOR OVERSEAS STUDY CONSULTING SERVICES IN HANOI MASTER OF BUSINESS ADMINISTRATIO

VIETNAM NATIONAL UNIVERSITY, HANOI

HANOI SCHOOL OF BUSINESS

DAU THU HUONG

AN EVALUATION OF MARKETING TOOLS FOR OVERSEAS

STUDY CONSULTING SERVICES IN HANOI

MASTER OF BUSINESS ADMINISTRATION THESIS

Hanoi, 2012

VIETNAM NATIONAL UNIVERSITY, HANOI

HANOI SCHOOL OF BUSINESS

DAU THU HUONG

AN EVALUATION OF MARKETING TOOLS FOR OVERSEAS

STUDY CONSULTING SERVICES IN HANOI

Major: Business Administration

Code: 60 34 05

MASTER OF BUSINESS ADMINISTRATION THESIS

Supervisors: Nguyen Thi Phi Nga, Ph.D

Mr Ha Nguyen, MBA

Hanoi, 2012

This MBA is dedicated to my beloved family including my parents, my husband,

my son and my sister, without whom I would not have got this opportunity to dothis MBA

I would like to thank Mr Ha Nguyen, my supervisor for his invaluable guidance,advice and support My thanks are also extended to the staff and leaders of nineoverseas education consultants in Hanoi and 300 students from Hanoi Foreign Trade, Thang Long and FPT universities for their time they spared for me and providing

me with primary data, which necessary to complete this research work

I am also indebted to Hanoi Foreign Trade University, which provides me with thetwo very useful sources for doing this research, including www.proquest.com andwww.emeraldinsight.com

AN EVALUATION OF MARKETING TOOLS FOR OVERSEAS STUDY

CONSULTING SERVICES IN HANOI

Dau Thu Huong

MBA Candidate, 2009 – 2011School of Business – Vietnam National University, Hanoi

Supervisors: Dr Nguyen Thi Phi Nga

Ha Nguyen, MBA

August 2012, 125 pages

This thesis is conducted to get insight into the marketing activities of overseas studyconsultants in Hanoi and examine the needs of students for overseas study service

On the one hand, the study evaluates the marketing tools of overseas study

consultants in Hanoi from consultants' perspective On the other hand, the thesis also studies the consumer behavior through surveys of targeted students who have the need to study abroad in order to evaluate the effectiveness of marketing

activities of overseas study consultants from the students' perspective From the twoaspects of the research, the thesis will give the answer to the question whether these marketing and promotional activities can meet the requirements of the consumers ornot and the ultimate aim of the study is to point out solutions to improving the marketing activities of overseas education consultants The thesis is divided into 3 chapters as follows:

Chapter 1: A theoretical background of service marketing, marketing in education and marketing in overseas education service

Chapter 2: An evaluation of marketing and promotion activities of overseas

education consultants in Hanoi

Chapter 3: Solutions to improving the effectiveness of marketing and promotion activities of overseas education consultants in Hanoi

TÓM TẮT ĐÁNH GIÁ CÔNG CỤ MARKETING CHO DỊCH VỤ TƯ VẤN DU HỌC Ở

HÀ NỘI.

Đậu Thu Hương

Khoa Quản trị Kinh doanh – Đại học Quốc gia Hà Nội

Hướng dẫn: Ts.Nguyêñ Thi Phị Nga

ThS Hà Nguyên

Tháng 8 năm 2012, 125 trang

Luận văn này được tiến hành nhằm tìm hiểu hoạt động xúc tiến marketing của cáccông ty tư vấn du học ở Hà Nội và nhu cầu của sinh viên với dịch vụ này Một mặtluận văn đánh giá việc sử dụng các công cụ marketing của các công ty tư vấn du học

ở Hà Nội dưới góc độ của các công ty tư vấn du học Mặt khác luận văn cũngnghiên cứu hành vi tiêu dùng thông qua khảo sát với các sinh viên có nhu cầu đi duhọc để tìm hiểu hiệu quả của hoạt động xúc tiến marketing của các công ty du họcdưới góc độ nhìn nhận của sinh viên Từ hai mặt nghiên cứu trên có thể đánh giáđược hoạt động xúc tiến marketing của các công tu du học có đáp ứng được yêu cầucầu của người tiêu dùng hay không và mục đích cuối cùng của nghiên cứu là chỉ ranhững giải pháp nhằm cải thiện hoạt động xúc tiến marketing của các công ty duhọc Cấu trúc của luận văn gồm 3 chương

Chương 1: Cơ sở lý thuyết về marketing dịch vụ, marketing trong giáo dục vàmarketing trong dịch vụ du học

Chương 2: Đánh giá hoạt động xúc tiến marketing của các công ty tư vấn du học ở

Hà Nội

Chương 3: Giải pháp nâng cao hiệu quả cho hoạt động xúc tiến marketing của cáccông ty tư vấn du học ở Hà Nội

TABLE OF CONTENT

ACKNOWLEDGEMENTS i

ABSTRACT ii

TÓM TẮT iii

TABLE OF CONTENT iv

LIST OF FIGURES vii

LIST OF ABBREVIATIONS viii

INTRODUCTION 1

1 Rationale 1

2 Objectives of the study 2

3 Scopes of the study 2

4 Methodology of the study 3

5 Structure of the study 3

CHAPTER 1: A THEORETICAL BACKGROUND OF SERVICE MARKETING, MARKETING IN EDUCATION, AND MARKETING IN OVERSEAS EDUCATION SERVICE 5

A OVERVIEW OF OVERSEAS STUDY OF VIETAM 5

B THEORETICAL BACKGROUND 7

1.1 An overview of service marketing 7

1.1.1 Concept of service marketing 8

1.1.2 Fundamentals of service marketing 11

1.2 An overview of marketing in overseas education services 25

1.2.1 International Education services 25

1.2.2 Marketing in international education 26

1.2.3 Education agents 27

1.2.4 The role of agents 29

1.3 Marketing communication: Channels and promotion tools 31

1.4 Typical marketing tools used by OSC……… …… 36

1.5 Proposed model 47

CHAPTER 2: EVALUATION OF MARKETING ACTIVITIES OF

OVERSEAS STUDY CONSULTANTS IN HANOI 49

2.1 Analysis of marketing activities of overseas education consultants in Hanoi 50

2.1.2 Evaluation of the frequency use of each marketing tool employed by overseas study consultants 51

2.1.3 Evaluation of marketing tools from the perspective of overseas study consultants 54

2.2 Evaluation of marketing tools used by overseas education consultants from students' perspective 56

2.2.1 Evaluation of the most popular marketing tools 56

2.2.2 Evaluation of most expected/ chosen marketing tools 58

2.2.3 Comparison between the level of actual use and selection / expectation of students of oversea study marketing tools 59

2.3 Comparison of perceptions of the effectiveness of marketing promotion tools hold by students and overseas study consultants 61

2.4 Evaluation of marketing activities by each marketing tool 63

2.4.1 Evaluation of each marketing tool 64

2.4.2 Evaluation of OSC by tools

65 CHAPTER 3: SOLUTIONS TO IMPROVING MARKETING ACTIVITIES OF OVERSEAS STUDY CONSULTANTS 71

3.1 General solution for Groups of marketing tools for overseas education consultancy service 76

3.1.1 Solution for Group 1 71

3.1.2 Solutions for Group 2 72

3.1.3 Solutions for Group 4 73

3.2 Specific solutions for each marketing tool 75

3.2.1 A solution to Tool 1- Direct mail 80

3.2.2 Solution for Tool 2 - Advertising 75

3.2.3 Solutions for Tool 3 – Education fairs 77

3.2.4 Solution for Tool 4 - Direct consultancy and recruitment 80

3.2.5.Solution for Tool 5 – Websites 80

3.2.6 Solution for Tool 6 - Banner advertising 82

3.2.7.Solution for Tool 7 – Listings 84

3.2.8 Solution for Tool 8 – Email marketing 84

3.2.9 Solution for Tool 9 - Seminars 85

3.2.10 Solution for Tool 10 - Pr 86

3.2.11 Solution for Tool 11 – Tele marketing 87

3.3 Expansion and renovation of other types of marketing tools 90

3.3.1 Street banner advertising 96

3.3.2 Introduction to friends, relatives, acquaintances (words of mouth advertising) .90

3.3.3 Old customer care 91

3.3.4 Overseas study links 92

3.3.6 English center 92

CONCLUSIONS 94

REFERENCES 96

APPENDIX 110

LIST OF FIGURES

Figure 1 1: Service market 13

Figure 1.2: Direct distribution channel 19

Figure 1.3: Indirect distribution channels 19

Figure 2.1: The popularity of marketing tools to OSC 50

Figure 2.2: The frequency use of each narketing tool empoyed by overseas study consultants 51

Figure 2.3: The effeetiveness of marketing tools from the view of OSC 54

Figure 2.4: A summary of the use of marketing tools by OSC 55

Figure 2.5: The use of marketing tools by students 56

Figure 2.6: Evaluation of students‘ expectation of marketing tools for overses study .58

Figure 2.7: Comparison between the actual use and expectation of students of marketing tools foroverseas study 59

Figure 2.8: Comparison of perceptions of the effectiveness of marketing tools hold by students and OSC 61

Figure 2.9: Boston Matrix based model 63

Figure 2.10: Evaluation of each marketing tool 64

Figure 2.11: Evaluation of OSC by tool 1 65

Figure 2.12: Evaluation of OSC by tools 2, 6, 7, 8, 11 66

Figure 2.13: Evaluation of OSC by Tool 3 67

Figure 2.14: Evaluation of OSC by Tool 4 67

Figure 2.15: Evaluation of OSC by Tool 5 68

Figure 2.16: Evaluation of OSC by Tool 9 69

Figure 2.17: Evaluation of OSC by Tool 10 69

Figure 3.1: General solution for Groups of marketing tools for overseas education consultancy service 74

LIST OF ABBREVIATIONS

D R&C: Direct recruitment and consultants

FTU: Foreign Trade University

IIE: International Education Institution

MOET: Ministry of Education and Training

OECD: Organization for Economic Cooperation and Development

OSC: Overseas Study Consultants

PPC: Pay per click

PR: Public Relations

SEO Search Engine Optimization

VEF: Vietnam Education Foundation

VIED: Vietnam International Education Development

WOM: Word of mouth

1 Rationale

Overseas education has become increasingly popular in recent years as it is viewed

as offering the student likelihood of better future employment It is the undeniablebenefits of the abroad study and the much improved living standards of Vietnamesepeople that make overseas study on the rise In the context of internationaleconomic integrations, overseas study has gone beyond the traditional limit in theeducational sector and become a lucrative business for overseas educationconsultants (OSC)

The overseas study consulting market in Vietnam is highly competitive Hundreds

of education consulting centers and non-profit organizations are operating in bigcities Regrettably, the increasing number of students studying overseas has notreceived a much needed concern from authorities In Hanoi alone, not least to say inVietnam, there has not been official statistics of the number of students studyingoverseas, education markets for Vietnamese students as well as the number andeffectiveness of OSC

From the educational aspect, the Ministry of Education and Training (MOET) hasnot taken full responsibility in managing the study of Vietnamese overseas students,the quality of OSC and the prestige of the educational institutions which are thedestinations of Vietnamese students From the business aspect, the Ministry ofPlanning and Investment is only in charge of calculating the number of OSC.Information of OSC can only be found in newspapers, forums or data bases ofinternational education institutions

For all the reasons mentioned above, it is necessary to have a study on theperformance of OSC Indeed, there has not been any study on this field in generaland on marketing activities of overseas education consultants in particular

Therefore it can be said that “An evaluation of marketing tools for overseas study consulting services in Hanoi‖ is of theoretical and practical significance.

2 Objectives of the study

This study will be conducted to get insight into the marketing activities of OSC inHanoi and examine the needs of students for overseas study service

On the one hand, the study evaluates the promotional activities of OSC in Hanoi tofind out the answer to such questions as‖ Which marketing tools does each OSC useand focus? ―How is each tool conducted and evaluated in relation to others?‖ etc

On the other hand, the thesis also studies the consumer behavior through surveys oftargeted students who have the need to study abroad in order to evaluate theeffectiveness of promotional activities of OSC from the students' perspective

From the two aspects of the research, the thesis will give the answer to the questionwhether these marketing and promotional activities can meet the requirements of theconsumers or not and the ultimate aim of the study is to point out solutions toimproving the marketing activities of OSC

Hopefully, after a model to evaluate the effectiveness of OSC is made, the studycan propose solutions to improving marketing and promotional activities in overseaseducation consultancy, contributing to the improvement of quality and prestige ofOSC in Vietnam‘s educational market

3 Scopes of the study

Because of time constraint and limited ability of the author, a survey of 9 typicalOSC in Hanoi is conducted With regard to students answering the questionnaire,they are 100 senior students from Departments of External Economics, BusinessAdministration and Finance and Banking of FTU where the author is working and

200 senior students from FPT and Thang Long University

It should be taken into account that FTU is a well established university which isdubbed as Vietnam Harvard while Thang Long is the first private university whichhas won recognition for the quality of teaching and studying and FPT is anemerging private university which is backed up by the famous FPT group These

universities, in the author's observation, have a high rate of students wishing tostudy abroad.

It should also be noted that the object of the study are university students rather thanhigh school students Furthermore, the concept of customers here refers to studentswho want to study overseas It is hoped that in the near future, with a larger budget

of time, a larger-scaled study which covers a wide variety of objects will beconducted to find more comprehensive solutions to improving the effectiveness ofOSC

4 Methodology of the study

The method of analysis, synthesis, comparison, interpretation, induction and socioinvestigation are employed in the study

Based on the theoretical background that has been mentioned in the study, 11marketing tools will be included in the survey questionnaires for students andmarketing staff and leaders of 9 OSC Questions will be from general to specific tofind out the popularity of marketing tools, the effectiveness of each tool in the eyes

of both OSC and students

Survey and interview results are given in the form of figures to compare thepopularity and effectiveness of different marketing tools The figures vary as eachfocuses on each aspect of the research issues However, promotional tools will bedeeply analyzed with a more detailed figure Based on the results of this analysisand on the basis of the mentioned theory, solutions to improving the effectiveness

of marketing and promotional activities of OSC will be given

5 Structure of the study

Apart from the Introduction and Conclusion, the thesis is divided into 3 chapters asfollows:

CHAPTER 1: A THEORETICAL BACKGROUND OF SERVICE MARKETING, MARKETING IN EDUCATION, AND MARKETING IN OVERSEAS EDUCATION SERVICE

CHAPTER 2: AN EVALUATION OF MARKETING AND PROMOTION

ACTIVITIES OF OVERSEAS EDUCATION CONSULTANTS IN HANOI

CHAPTER 3: SOLUTIONS TO IMPROVING THE EFFECTIVENESS OF

MARKETING AND PROMOTION ACTIVITIES OF OVERSEAS

EDUCATION CONSULTANTS IN HANOI

CHAPTER 1: A THEORETICAL BACKGROUND OF SERVICE

MARKETING, MARKETING IN EDUCATION, AND MARKETING IN

OVERSEAS EDUCATION SERVICE

AN OVERVIEW OF OVERSEAS STUDY OF VIETNAM

There are an increasing number of types of scholarship available to study overseas.Each year there are approximately 25 U.S Government Fulbright Fellowships andaround 40-50 U.S Government Vietnam Education Foundation (VEF) Fellowshipsavailable for masters degree students only Additionally there are approximately 10Canadian government scholarships, 70 scholarships to study in the UK, 200scholarships for study in France, 150 for study in Australia, 70 short-term and 10long-term scholarships in Thailand A large number of additional students receivescholarships directly from universities, nongovernmental organizations, foundationsand other bodies The Vietnamese Government through MOET also has a program

to approve approximately 400 scholarships for state workers to study abroad toimprove their skills In 2009, the Vietnam International Education Development(VIED - replaced the Management Committee of Project 322), on behalf of Ministry

of Education and Training (MOET), select and award many scholarships for studiesoverseas These scholarships comprise the following:

500 scholarships for full time doctoral study overseas,

200 scholarships for full time masters study overseas,

30 scholarships for short term training courses overseas,

100 scholarships for doctoral and master study at joint programs,

About 150 scholarships for undergraduate study overseas

Another estimated 20,000 students are studying abroad each year on institutionalscholarships or on their own finances These figures are further growing yearly asthe government implements its so-called 10,000 PhD program with a goal ofcreating 20,000 new PhDs by 2020 through training abroad

In the coming years, the market of overseas study of Vietnam will have a new andsignificant trend and change The markets receiving students studying abroad will

be extended to other regional countries such as Japan, South Korea, Taiwan,Singapore, Malaysia, Hong Kong, and Thailand, etc due to their lower costs, andshorter distance from home In other words, parents will feel more comfortablewhen their children can enjoy the opportunity to study in an international andworldwide recognized environment which is not very far away from the homecountry

The modes of overseas study are also diversified Many international schools willinvest in Vietnam to reduce costs; therefore students can enjoy overseas studyprograms in their home country Besides, the joint training programs, in-countryprograms are on the rise In these programs, students will study in Vietnam forcertain years and complete the remaining of their course either in Vietnam or in aforeign country In both cases students are awarded offshore qualifications

In the case in which a foreign institution is not yet in Vietnam but located in a thirdcountry, such as Thailand, students can also go to the third country to study instead

of going to the far away foreign institution

The competition amongst OSC would even be tougher It is understandable as moreforeign institutions will come to Vietnam by themselves or though the OSC whendemand for overseas education increases in Vietnam Although when they enter intoVietnam market, foreign institutions will need more partners in Vietnam, thepartners, i.e the OSC still have to improve their service quality to compete withothers

The overseas-study consulting market in Vietnam is highly competitive Hundreds

of education consulting centers and non-profit organizations are operating in the bigcities Moreover, the internet also gives students the ability to find the scholarshipsand the school and the opportunities to go oversea to study by themselves Inaddition, the oversea-study exhibitions organized by the educational institutions

have provided opportunities to the student and introduced the student to ways toassess the foreign educational institutes by themselves This has also increased pricecompetition in the market.

One thing worth noticing is the commitment of Vietnam to WTO on services ofhigher education, adult education which allows Vietnam to set up joint venture,allowing the majority foreign ownership in venture capital in January / 2007; after1/1/2009 it would allow the establishment of training institutions with 100% foreigninvestment capital (other educational services such as undergraduate education hasnot been committed)

After 3 years from the date of accession, the education service will not be restricted,which means that it would be easier for students if they want to participate in aninternational in country or a joint training program instead of going to study abroad.Then the OSC have to compete with each other internally but also with internationalinstitutions and joint training programs

However, study abroad with its own characteristics and prominent advantages such

as a professional learning environment can certainly attract many students In thecoming time, there will be many challenges and opportunities facing OSC; thereforethere should be solutions to improving marketing tools in order to help consultants

to better cope with challenges and seize opportunities in the present as well as in thefuture

B THEORETICAL BACKGROUND

1.1 An overview of service marketing

1.1.1 Concept of service marketing

1.1.1.1 Concept of service

Put in the simplest terms, services are deeds, processes and performances.Generally, services are not tangible things that can be touched, seen and felt butrather intangible deeds and performances To be specific, services can be whatever

value a business delivers to customers Services can be deeds or performanceswhich happen and last for a while but services can be the entire process presented tothe customers or clients from problem analysis activities, meetings with clients andfollow-up calls.

Basing on the simple, broad definition of services, it quickly becomes apparent thatservices are produced not only by service businesses but also in relation to theofferings and participation of many manufactured-goods producers For instance,machine manufacturers offer warranties and maintenance services for theirproducts, food producers provide delivery, inventory management, staff-trainingservices These above mentioned are all examples of services as deeds, processesand performances

In short, it can be learnt from the definition that service needs to be connected withthe activity from which service is generated, say, travel service, legal service etc.,

In all of the cases, each type of service brings some values to the consumers Thevalue of service is accompanied with the benefit that customers get from thatservice However, there are also some arguments that products customers purchaseand use at the production place and cannot be taken away are known as service

1.1.1.2 Concept of marketing

Marketing has been viewed traditionally as a business activity Businessorganizations exist to satisfy human needs, especially material needs Consequently,one way to define marketing is from the business perspective For instance,marketing has defined as the "delivery of higher standards of living"

Other definitions refer to marketing as an exchange process This process involves

at least two parties: buyer and seller Each party gives up something of value andreceives something of value Noted marketing scholar Philip Kotler definesmarketing as "a society process by which individuals and groups obtain what theyneed and want through creating, offering, and freely exchanging products andservices of value with others." [72]

Because marketing activities bring about exchanges, marketing is an essentialfunction in an economic system In a free-enterprise economy, resources areallocated by interaction of supply and demand in the marketplace Marketingactivities and institutions' provide the framework and mechanisms for thisinteraction and exchange taking place.

Although the business aspects of marketing are important, business-orienteddefinitions of marketing have been challenged Critics observe that marketinginvolves a wide range of activities and organizations and should be viewed from abroader perspective These critics point out that marketing takes place in not-for-profit organizations, such as hospitals, universities, and social and governmentagencies New applications of marketing are further evidence of its growingimportance in our society Any definition must recognize that marketing is afundamental human activity and that marketing decisions affect everyone's warfare.The American Marketing Association (AMA) provides a definition of marketing inits broader context: "Marketing is the process of planning and executing theconception, pricing, promotion, and distribution of ideas, goods, and services tocreate exchanges that satisfy individual and organization goals"

By including exchange as part of the definition, the AMA has expanded themarketing process to include all types of organizations This broadened or genericview of marketing recognizes the importance and application of marketing to not-for-profit organizations and situations As in for non-profit businesses, a carefulplanned and coordinated marketing program can help a not-for profit organizationsreach its goals, whether they are to attract more members, to increase donations, or

to provide better client services

Importance of Marketing

According to Blythe, (2005) marketing is the management process which identifies,anticipates, and supplies customer requirements efficiently and profitably [15].Modern businesses compete in complex global marketplaces Competition has

never been so fierce Well organized high quality, low cost competitors areemerging daily We can no longer rely upon our belief that traditional productservices and technological superiorities are sufficient to retain and grow ourbusinesses in the environment In a competitive market environment, building andmaintaining a market requires investment in marketing and promotion [60]

If marketing is the engine that drives the organization, then marketing research isthe process that keeps the engine tuned [54]

1.1.1.3 Concept of service marketing

Marketing activities, even marketing the service sector developed rapidly in recentyears Services marketing are regulated by the characteristics of the production,distribution and use of service The scope of Service Marketing includes the wholeprocess from pre-consumption, in production, distribution and after-sale- service.Marketing is one of management tools of a manager which has so far proved itseffectiveness and got tremendous results Marketing has been applied not only indoing business but also in many other fields of social life, namely environmentmarketing, social marketing, politics marketing, public non-profit productsmarketing so on and so forth The concept of marketing, therefore, has a boarderinsight than it used to be And services marketing are one of the extensions of thenew and broad definition of the traditional concept of marketing

Generally, service marketing is known as a form of marketing which focuses onselling services and a form of marketing based on relationship and value Services

as defined previously can be tricky to sell and marketing a service-base business is,therefore, different from marketing a product-base business in some sensesincluding: the buyer purchases an intangible product; the service may be based onthe reputation of a single person; it is more difficult to compare the quality ofsimilar services and the buyer cannot return the service Thus is why once markets aservice business, the owner should bear in mind that reputation, value, delivery ofservice and follow-through are keys to a successful venture

1.1.2 Fundamentals of service marketing

1.1.2.1 Characteristics of service: The services have unique characteristics which

make them different from that of goods The most common characteristics ofservices are:

of this, the services are not known to the customer before they take them Theservice provider has to follow certain things to improve the confidence of the client:The provider can try to increase the tangibility of services For example, by

displaying a plastic or a clay model showing patients an expected state after a plastic surgery The provider can emphasize on the benefits of the service

rather than just describing the features

Not all the service product has similar intangibility Some services are highlyintangible, while the others are low i.e the goods (or the tangible component) in theservice product may vary from low to high

For example: Teaching, Consulting, Legal advices are services which have almostnil tangible components; While restaurants, fast food centers, hotels and hospitalsoffer services in which their services are combined with product (tangible objective)

Services are typically produced and consumed simultaneously In case of physicalgoods, they are manufactured into products, distributed through multiple resellers,and consumed later But, in case of services, it cannot be separated from the serviceprovider Thus, the service provider would become a part of a service

For example: Taxi operator drives taxi, and the passenger uses it The presence oftaxi driver is essential to provide the service The services cannot be produced nowfor consumption at a later stage / time This produces a new dimension to servicemarketing The physical presence of customer is essential in services For example:

to use the services of an airline, hotel, doctor, etc a customer must be physicallypresent

Inseparability of production and consumption increases the importance of thequality in services Therefore, service marketers not only need to develop task-related, technical competence of service personnel , but also , require a great input

of skilled personnel to improve their marketing and inter personal skills

Perishability

Services are deeds, performance or act whose consumption take placesimultaneously; they tend to perish in the absence of consumption Hence, servicescannot be stored The services go waste if they are not consumed simultaneously i.e.value of service exists at the point when it is required

The perishable character of services adds to the service marketers' problems Theinability of service sector to regulate supply with the changes in demand; posesmany quality management problems Hence, service quality level deterioratesduring peak hours in restaurants, banks, transportation etc This is a challenge for aservice marketer Therefore, a marketer should effectively utilize the capacitywithout deteriorating the quality to meet the demand

Services are highly variable, as they depend on the service provider, and where andwhen they are provided Service marketers face a problem in standardizing theirservice, as it varies with experienced hand, customer, time and firm Service buyersare aware of this variability So, the service firms should make an effort to deliverhigh and consistent quality in their service; and this is attained by selecting goodand qualified personnel for rendering the service

1.1.2.2 Market in service marketing

The concept of market in Marketing is different from that of tangible products It isknown as the potential customers who have demands for specific products provided

by enterprises The concept of market in service marketing is divided into 6 basictypes which can be illustrated as follows:

Figure 1 1: Service market

'

Internal market

Supplying

Interactive market

MarketCustomer market

Employment

Power market

market

(Source: Nghiem, Luu Van (2001; 80) - A textbook of Service Marketing of

Vietnam National Economics University- Statistics Publishing House.) [99]

Customer market: For any enterprise to be successful, it is a must to focus on thecustomer market which is the buyers‘ demand for a specific type of product orservice The lowest influence of marketing on this market is to build customerloyalty and attract the new and potential ones It is quite difficult to understand thecustomers of a service The job of marketers, therefore, is to do research oncustomer behaviors to find out what has great influence on their buying decisions.One of the big concerns of service marketing lies in customer maintenance andrepeated business.

Interactive market: Interactive market occurs in the moment when the customersinteract with the organization and the service is produced and consumed It is alsothe interaction between different organizations taking part in the process ofproviding service These components of the whole process interlink and dependmuch on each other to provide the end-service to customers

Supplier market: The supplier market has changed a lot and played an importantpart in both service and tangible products Marketing activities in this market,therefore, is to provide all the resources, which means that marketer needs toestablish some essential middle men, develop the relationships with the future andpresent resources together with developing marketing campaign to distribute theseresources to supplier market Meanwhile organizations also need to have a plan topromote their market resources

Employment market: How to provide adequate qualified and skillful workforce forinteractive market is a question of concern for the reason that there has always been

a shortage of qualified and skillful workers for not only service providers but alsoany organizations doing business in the market The supply and demand inemployment market seems to be complicated There has been a great demand forthe high quality workforce working in several industries but the supply capacity stillremains low due to a number of reasons

Power market: This market is suitable to relationship based Marketing Enterprisesused Marketing resources and strategies to establish relationship with powerfulgroups and corporations, including:

 Financial and Baking Corporations: They make decisions on capital, payment ability, amount of cash, etc

 Powerful Corporations: Enterprises should establish the relationship to enter the market and find out opportunities in future

 Authorities: Enterprises should understand and follow regulations and rules related to trade and commercial activities

 Economic Associates: Enterprises should create a friendly relationship and support their positive activities

Internal market: An internal market operates inside an organization or a set oforganizations including employees, providers and internal customers The internalcustomers also have needs and demands that requires organizations to meet Thus,organizations should do research to find out the internal customers‘ needs and wants

as well as identify internal customer segmentation and work out the factors thatinfluence internal customers‘ needs which often associates with themes like theirpersonal lives, their families, working conditions, labor-saving devices, incomes,promotion, vacation, benefits and rewards, etc

The organizations should apply marketing tools to attract external customers toincrease internal customers ‗loyalty Marketing researches, communication and PRcampaigns should focus directly on the employees and indirect labors as well asexternal customers to attract the skilled labor force to produce high quality services.Services marketing mix is different from that of product Product marketing mix,also known as the 4 P's of Marketing, is the combination of product, price, place(distribution), and promotion

In service marketing, the traditional 4Ps mar-mix is extended to 7Ps mar-mix to becompatible with the successful proposition for the services industry The 7Ps of the

marketing mix can be discussed as: product service; price; place; promotion;people; processes and physical evidence.

Basing on the specification of the service and market segment, marketers cancoordinate the 7Ps to develop a marketing strategy which is suitable for theirmarketing purposes and get results

1.1.2.3 Mar-Mix in Marketing Service

1.1.2.3.1 Product policy

A product in general is a broad concept of things or set of activities that bring values

to customers Customers don‘t actually purchase goods or services but theypurchase the benefits and values that goods and services offer them

Service is a set of activities including intangible factors which create the valuechain and bring the overall benefit Thus, service is often classified into the coreservice and relating service

 Core service is the main service which identifies the main business activities ofany enterprise In this sense, the core service can meet a certain need of the customers for

it brings a certain values to customers which can help them to distinguish this servicefrom the others

 Relating service is the secondary services depriving from the core one which addvalues to customers and help them to have better feeling and understanding of the coreservice The more relating services are offered, the more benefits and values thecustomers can get and that help the customers identify the difference in service offeringbetween one enterprise and its main competitors

In order to successfully survive and stay ahead in a harshly competing market, enterprises need to make a numbers of decision related to their core-service

 The decision of the main service introduced to the market is made on the basis ofidentifying the general needs of the service in the market and also on the specific serviceorientation The main (core) service needs to be associated with the target market

 The decision of primary service is made in accordance with service structures, different service levels and service-providers.

 The overall service is a set of the main (core) service, relating services andprimary services When deciding the overall service to be offered, the providers shouldconsider the overall benefits that the services can deliver as well as compare thesebenefits with those of the main competitors

 The service diversification decision is made to meet diverse requirements ofcustomers That is when enterprises introduce different basic services to meet differentmarket segments at the same time

1.1.1.3.2 Pricing policy

Price plays an important role in services marketing mix and has a large impact onprofit and also decides the value of the primary service that is offered to customers.Price is considered a decisive factor in building enterprise‘s image and positioningthe service being offered

How a company positions itself in the competitive market depends much on itspricing policy Pricing, therefore, is of great consideration Price a premium itemtoo low, for example, and customers will not believe the quality is good enough.Conversely, put too high a selling price on value lines and customers will purchasecompetitors‘ lower-price items With this purpose in mind, companies can set areasonable price compatible with the quality and characteristics of the service forthe reason that price has much influence on the intangible and non-material value ofservice

In marketing mix, pricing tool is of great significance and effectively affects othertools and factors which helps bring value and benefit for the company Price issomething that is sensitive and draws much people attention Pricing the service,therefore, needs take several factors into consideration

First and foremost, pricing should stem from the true value that the service candeliver to customers The service pricing strategy is often identified on such basis as

the service production cost, competition in the market and the value that customerscan get from the service.

From the service providers‘ perspective, pricing policy should meet gross marginrequirement and ensure profit for the company to survive and maintain sustainabledevelopment

1.1.1.3.3 Place Policy

Distribution channels in service industry are a broader concept in comparison withthe traditionally known ones Distribution channels are comprised from such factors

as service products, negotiation, information, ownership and promotion

Service is a special goods in which the production, distribution and consumption ofservice is a continuous and inseparate process In this sense, the service consumersalso participate in both service supply and consumption process

Distribution channels in service is normally short and direct channels which inreality is known as the bridge between consumers and service or bring services toconsumers in different market sectors Distribution channels may consist of serviceproviders, a number of intermediaries (sales representatives, agents, wholesalers,retailer, etc), and consumers

There are three main factors in distribution channels:

 Members of distribution channels and the relationship among these members

 Different functions performed by members of the channels together with

equipments, facilities and technologies used in distribution channels

 The whole service produced by distribution channels‘ members

These three main factors in distribution channels all participate in the buying andselling process with other members in that channel Each member has his owncapacity and target customers which make a unique channel representing a mix ofpower, contradiction and cooperation

Particularly, distribution channels in service are known as follows:

Direct channel: is the most effective distribution channel for service and verycommon for small businesses Services can be sold directly to the consumer on-sitei.e directly from your shop, office or home by consumers physically coming intothe premises to make a purchase.

Direct channel is appropriate to pure service because of the high intangibility ofservice and high demand of the relationship between service providers andconsumers Direct channel can work effectively in such services as: healthcare,education and training, art and entertainment

Indirect channel includes the participation of a number of intermediaries asillustrated below

Figure 1.2: Direct distribution channel

At-home service

(Source: Nghiem, Luu Van (2001; 281)- A textbook of Service Marketing of

Vietnam National Economics University- Statistics Publishing House.) [99]

Figure 1.3: Indirect distribution channels

(Source: Nghiem, Luu Van (2001; 281)- A textbook of Service Marketing of

Vietnam National Economics University- Statistics Publishing House.) [99]

In reality, indirect channels work more effectively for some particular service Forexample, service industries such as aviation, tourism, hotel chains, banking etc., canmake full use of agents, rep offices in different market segments and market areas.

Decisions in service distribution

In order for enterprise to have an effective distribution channel, enterprise needs tobase on the features of the service that it is offering together with the true demand

of the market Accordingly, enterprise should consider making the right decision toget the best result

1.1.1.3.4 Promotion Policy

Communication in service plays an important role in Mar-mix, which providesinformation to customers and solutions to the internal relationship inside thecompany as well as the relationship between company and the public.Communication makes things clear and help company position itself in the market

so that the customers can have more awareness of the value of service

Communication in service includes such things as advertisement (1), personalcommunication (2), promotion (3), which will be discussed as follows:

(1) Advertisement is one common form of communication used by almost all

organizations Advertisement in service is to identify information of the service, positionservice, develop service concept, have better insight into the service quality

and quantity, create customer‘s expectation and persuade customer‘s spending Advertisement methods, advertisement scripts, advertisement objectives and

budgets are also matters of concern in advertisement policy plan

Advertisement methods consist of mass media such as television, radio, press,cinema and other means which can help convey information to public, for exampleposters, directories, word of mouth and mail shots Companies should base on theiradvertising objectives to choose the appropriate methods and language ofadvertisement

There are some things to bear in mind in planning an advertising campaign.

 Identify the content, form and page-layout of the advertisement script

 Characterize the advertisement information

 Identify the service environment

 Identify the publicity of the advertisement

 Estimate the appropriate budget

The purpose of the advertisement is the required content of the advertisementactivities which are actually the initial goals associated with the ideas that theadvertisers wish to convey to the public or the making of ideas become real.Notably, advertisers should base much attention to word of mouth (WOM) method

in promoting their products and services Normally, customers often participate inthe service purchasing and share their experience with other customers Suggestionsmade by means of word of mouth are considered as an important and trust-worthysource of information WOM method is known such ways as followed:

 Inter-changeable interaction

 Experience in a service

 Expected value/ purchasing activities

 Word of mouth/ service transformation

Personal communication known as service selling activities is actually the process

of transforming service from the service suppliers with the customers Personalcommunication must ensure the coordination of activities as selling, servicegenerating and service monitoring in order to provide service information tocustomers

Promotion is known as the use of appropriate tools and solutions suitable to the

companies and market conditions to promote buying in short-term Promotion toolsand methods mainly focus on customers, intermediaries and sale-people

 Customers: Encourage the customers‘ buying power by providing customers

with add-on benefits which can be approaching method improvement, serviceregulations and manual books, lucky tickets, contests and free-of-chargemaintenance

 Intermediaries: Encourage these supporters to participate more in the service

distribution activities, especially with the new service by providing higher discount,coordinating distribution with advertising and holding contests for distributors

 Sale-people: Encourage the sale-people morale by increasing bonus values and

frequency Bonus can be in the forms of pay-rise, vacations for the best sale-people toincrease selling performance We can say that service personal communication activitiesplay a decisive role in the service supply chain to customers Skillful sale people are theresults of qualified training, self-improvement and learnt experience

In a word, promotion has seen its effectiveness in many services especially in

banking and finance

1.1.1.3.5 People Policy

Human factor plays a significant part in service marketing Therefore, theenrollment, training, motivating and managing human resource have great impact

on the success of service marketing

Human resource in service supply consists of the entire employees in the companiesfrom the management to the direct workers These are the people who actuallyparticipate in the production and delivery of the service

Findings from recent studies show that the human factor, especially the front peoplewho deliver service to customers play a decisive role in the success of thecompanies Additionally, these are the people who contribute a lot to the decision toreengineer the supply models for the newly generated service

To make full use of human factor in developing new service, companies should takeinto account the followings hints:

 Companies must treat their employees as potential future customers by showingconcerns and giving quick response to their needs and wants and have a strategic

plan to gain and increase employees‘ satisfaction

 Companies should pay attention to getting employees involve in developing newservice together with paying attention to the organization and physical environment ofthe new service That is to say companies should provide adequately basic conditions forthe success of the new service

 Companies should also make their employees participate more in the process ofthe new service assessment to see if the provided service meets the customers‘

demand By so doing, companies can provide a service which is in line with thecustomers‘ needs If the service is for the sake of the customers, the resultcompanies get will be higher and the relationship between employees and customerswill be much improved

Internal Marketing is to understand the needs and wants of the entire employeesinside the companies For any organization to be successful, the board ofmanagement should take their employees‘ interests into consideration to findsuitable solutions and make appropriate policies to increase their employees‘satisfaction In return, organizations can gain employees‘ loyalty, productivity andperformance that get results Internal Marketing is practiced as follows:

 Recruit those who are qualified, enthusiastic with their jobs

 Develop the orientation programs which focus on the improvement ofemployees‘ business skills and customers‘ relationship

 Get to know the internal employees‘ needs and wants to have appropriatepolicies to meet their satisfaction

 Pay attention to the key and qualified staff

 Provide vocational training service

 Publish internal bulletin and documents

1.1.1.3.6 Process Policy

A customer service procedure is a way of doing a routine practice In customerservice there is certain protocol that must be taken in order to remain competitive.Finding a better or faster way of doing something can be considered a customerservice procedure Managers are given the responsibility of completing jobperformance evaluations to see where weak links can be rectified This leads toincreased efficiency and better customer service

Service procedures include the entire process, mechanisms and information flowsand values from the service production to service consumption The serviceprocedures are always associated with service management and customer care oraccess to customers to get information about customer requirements and processthese requirements in order to give advice and best solutions These processes alsoconsist of service preparation and delivery, customer approach to get feedback andlisten to complaints to provide add-on or differentiate services Service proceduresalways need to be professional

There are several steps in designing service supply process, namely generating theidea of service, building supply scenarios, modeling service supply in the physicalenvironment including the relationship between service providers and the end-users,and perfecting the model

1.1.3.7 Physical Evidence

Physical evidence can be categorized into two types – peripheral and essential.Essential physical evidence is provided by those tangibles, without which theservice cannot be delivered Peripheral evidence is provided by those tangiblesgiven out by service providers as gifts The important benefits offered by physicalevidence are increased employee productivity, creation of good impression amongcustomers, increased credibility of the service provider, and differentiation fromcompetitors, effective management of service quality and repositioning of services

For example, in aviation service the facilities on planes such as video, books,magazines, satellite TV, wireless internet, food and drink are very essential increasecustomers‘ satisfaction Physical evidence in banking industry is presented in such aways as the wide-spread of network which make the transaction comfortable,modern communication channel and interior facilities, professional website, ATMmachines available everywhere.

In a word, physical evidence are the combination of both tangible factor such asfacilities, uniforms, location, etc and intangible factor such as experience, skills, etcwhich help to build up brand and company‘s image

1.2 An overview of marketing in overseas education services

1.2.1 International Education services

There is little research on international education services, which is the immediatediscipline of this research Nonetheless, a range of perspectives abound Thedominant view of international higher education pertains to the nature of the

‗product‘ that is being exchanged, often perceived as a commoditized good, to befreely traded [5] Thus, international education is perceived like any othercommodity, (e.g gold or oil), to be bought and sold in accordance with marketvalues; reflecting a now outdated goods-oriented marketing perspective [40] A morecontemporary view of international education services classifies the ‗product‘ as aservice, recognising the importance of effective marketing strategies that are needed

in order to remain internationally competitive [52] While it is apparent thatinstitutions want to be internationally competitive and attractive to students wanting

to study in another country, there is a dearth of literature about international studentconsumer behaviour in the higher education market place [40] The reason for this isthe continuance of the commodity-based view adopted by many universities andwhich underpins marketing strategies targeted at achieving business outcomes such

as funding, and an absence of a focus on the needs, wants and decisions of studentcustomers in the international marketplace [102] International education as a

service, as opposed to a good, changes the marketing framework [52] Thus, whilemarketing international education will have some crossover from the businesscommodity point of view, it is important to note that it is a service and needs to bemarketed accordingly.

Services have the capacity to deliver intellectual content [117] As the provision ofintellectual content is at the core of international education services, it fits into theservice sector category Building relationships with stakeholders is central to servicebusinesses, and in the case of international education services there is a need andbenefit in developing interpersonal relationships between the institution and itsstudents [90] Hence, relationships are a valuable component of services marketing[49] and it is from this platform that the relationship based mechanisms thatfacilitate the co-creation of value for the student consumer that enhances theirexperience, thus creating global competitive advantage for the institution is a plausibleway to shift and advance the marketing of international education services

1.2.2 Marketing in international education

Knight [69] stated that export of higher education is a billion dollar industry,including recruitment of international students, establishment of universitycampuses abroad, franchised provision and online learning The supply of

transnational (or cross-border) education plays an increasingly important role for the

economic growth of a country [126]

Status Quo Analysis of Export of Higher Education in Developed Countries

Since the late 1980s, the internationalization of higher education provision has beenconsistently identified as a major trend especially for universities in developedindustrial countries [9] According to the estimation of Organization for EconomicCooperation and Development (OECD), the countries of OECD admitted 1.5million international students in 1999 alone The report of the InternationalEducation Service Forum of OECD/US 2002 showed that the number of

international students looking for higher education will increase from 45 million in

1999 to 150 million in 2025, and the volume of export of higher education will hit

30 billion USD, 3% of the total service trade volume of OECD The top threecountries of educational export, in order, are Australia, New Zealand and America.Their educational export volumes of these three countries account for 11.6%, 4.9%and 3.8% of their own service trade volume, respectively

The development of international educational trade is imbalanced in different areas.The developed countries always have more exporting than importing The goal ofthe educational export of developed countries is to obtain commercial and economicbenefit The economic factors play a very important role in this progress [85]

Export of higher education in the USA.

The USA has always been the country accepting the most international students.The total number of the international students in OECD countries was 1.42 million,and 31% of which were in America [110] It is estimated by the Education Ministry

of USA that the number of international students increased from 311,880 in 1981 to514,723 in 2003 The American educational export volume reached more than 10billion in 2003 alone It resulted in the favorable balance of 8 billion, whichaccounted for about 10% of the America total favorable balance and also reachedapproximately one third of the consumption of international students in OECDcountries It is clear that America's high quality educational resources and herinfluence on the world are irreplaceable

From the analysis of schooling educational structure, it can be seen thatinternational students in America for training are much fewer than students fordegree From the analysis of majors, it can be found that most the internationalstudents in America choose commerce, industry, life sciences, mathematics,computer technology and so on for their study The students in such fields occupied52.8% of the international students in 2003 (Li & Cheng, 2004) Zhang (2002) [82]stated that from the area distribution, it is clear that the major market of American

educational export is Asia, which consumes more than 60% of her educationalexport Europe and Latin America are located in the second and the third places ofthe consumption Meanwhile, it is easily understood that the levels of economy,science and technology, and industry of a country play an important role inexpanding her business competence in every respect.

Export of higher education in Australia.

The international students in Australia reached 39,685 in 1995, 52,829 in 1997,60,914 in 1999, 86,269 in 2001, and 136,252 in 2003, which led to the increase ofthe trade volume from 6 million in 1970 to 21.55 billion in 2003 [110] When theWTO issued the General Agreements on Service after 1995, Australian universitiestook this opportunity, and developed Australian educational institutions abroad TheAgreements regulate that the member countries must try to reduce the trade barriersand be able to provide educational services in the form of commercial presence.Australia‘s government was very responsive to the situational changes from theissuance of the WTO regulations The government promulgated relevant laws andregulations, and adjusted policies for facilitating and normalizing the development

of her educational business According to the Australian Presidents Committee'sreport in 2003, 38 universities have established 2,009 educational projects abroad.[132] The structure of the international students in Australia has changed a lot forthe past few years the weight of conveying her higher education to other countriesthrough long distance learning increased from 5.9% of total trade volume of her highereducation in 1996 to 11% in 2003 [112]

Export of higher education in Japan.

For the past few years, the increase of the number of international students has beenremarkable It increased from 55,575 in 1999 to 111,130 in 2004 The averageincreasing rate is 20% [61]

From the analysis of the study level, the number of the international students fordegree reached 89,000 in 2004, which was 80.1 % of that year (111,130) The non-

degree study was mostly for visit scholars and students for learning Japanese Fromthe analysis of majors, students majoring in social science and literate account for25.6% of all students, and the students majoring in science and technology accountfor 16.6% [62] Compared with other countries in Asia, Japan is in the ascendant inscience and technology, which is the reason for many Asian countries to send theirstudents to Japan to learn advanced technology Here, Japan shows her competencederived from her tradition and the achievements of science and technology fordevelopment of educational business

1.2.3 Education agents

An education agent is defined as an individual, company or other organizationproviding services on a commercial basis to help students and their parents gainplaces on study programmers overseas Agents use a range of different titles todescribe themselves, including student advisor, education consultant andrepresentative Most fall into one of three broad categories:

• education specialists who place students on behalf of one or more institutions;

• education specialists who place students but with no ties to any particularinstitution;

• non-education specialists, for example travel agents and publishers, who may offeroverseas education placement services as a subsidiary activity

Other individuals may work as education agents, or in a similar capacity, includingalumni, parents and overseas-based staff running institutional in-country offices

1.2.4 The role of agents

Agents have only a limited role in raising general interest in study abroad but theyplay a very important role as intermediaries helping to convert interest fromstudents, particularly younger students (and their parents), into actual placements ininstitutions abroad As such, agents are an important means of increasing access tooverseas education markets

In many countries students and parents use agents to arrange study abroad becausethey lack knowledge and understanding of overseas education systems Even wherestudents or their parents find suitable placements on their own, they often lack theconfidence or time to complete the necessary formalities, especially visa applicationprocedures, without help and choose to pay for assistance from an agent Incountries where many customers have limited English language skills, agents have

an even more important role since they offer information and advice in thecustomers‘ own language In some cases agents are valued for the follow-upservices they provide during the period of study abroad, for example liaisonbetween parents and institutions, finding guardians and emergency support Manyagents also provide pre -departure briefings on behalf of institutions

For institutions, use of reputable agents offers a cost-effective means of increasingoutreach, especially in larger overseas markets Where direct recruitment activities

by overseas institutions are tightly controlled or limited, as in China for example,the value of a reputable agent is even more apparent

An international education agent is often seen as a ‗bridge‘ between the manypeople involved in international education including students, parents, providers andhome stay families-providing a pivotal link between them Agents can be foundacross the world with many offering services to the full range of providers includingLanguage Schools, Schools, Colleges, University, etc ‗

The specific activities of an agent vary based on provider and students needs, buttheir core activities are generally targeted towards students and providers as follows

Core International Education Agent‘s Services

Targeted to Students Targeted to Education providers

-providing information on the range -recruiting suitable students for the

of education options, courses and