Download Marketing Tools and Models for VET Online

AUSTRALIAN FLEXIBLE LEARNING FRAMEWORK
Managed by the Flexible Learning Advisory Group on behalf of all States and Territories in conjunction with ANTA
Marketing Tools and Models
for VET Online
28 November 2001
Project to provide research and develop tools and models to support the growth of VET online
products and services in the Australian marketplace
An initiative within the Australian Flexible Learning Framework for the National Vocational
Education and Training System 2000 – 2004.
Author:
ISBN
John Mitchell, John Mitchell & Associates
0 642 70829 0
© 2001 Australian National Training Authority
This work has been produced with the assistance of funding provided by the Commonwealth
Government through the Australian National Training Authority. Copyright for this document vests
in ANTA. ANTA will allow free use of the material so long as ANTA's interest is acknowledged and
the use is not for profit.
Forward
Background
In August 1999, the Australian National Training Authority Chief Executive Officers (ANTA CEOs)
endorsed the Australian Flexible Learning Framework for the National Vocation Education and
Training System 2000 - 2004 (AFL Framework). The AFL Framework has been developed by the
Flexible Learning Advisory Group (FLAG) and represents a strategic plan for the five- year National
Project allocation for flexible learning. It is designed to support both accelerated take-up of flexible
learning modes and to position Australian Vocational Education and Training (VET) as a world
leader in applying new technologies to vocational education products and services.
The AFL Framework is supported by an annual implementation plan, and the plan for 2001,
Strategy 2001, was endorsed by the ANTA CEOs in October 2000. It identifies specific initiatives
and allocates resources within each of the five Goals identified in the Framework.
Role of the Flexible Learning Advisory Group
In broad terms, FLAG is a strategically-focused group of senior VET personnel advising ANTA
CEOs, the ANTA Board, the Department of Education Training and Youth Affairs (DETYA) the
Australian Information and Communication Technology Education Committee (AICTEC - formerly
known as the EdNA Reference Committee), on national issues relating to the directions and
priorities for flexible learning in VET, with particular reference to online technologies.11
1 The New Economy Index, Progressive Policy Institute, URL: www.dicppi.org
Marketing Tools and
Models for VET Online
28 November 2001
Table of Contents
1. Introduction ________________________________________________________ 1
2. Principles and assumptions ___________________________________________ 3
3. Complementary resources ____________________________________________ 6
4. Summary of the tools_________________________________________________ 7
5. The Quick Market Research Approach __________________________________ 9
Tool No.1. Data collection tasks _________________________________________ 10
Tool No. 2. Data analysis steps __________________________________________ 17
Tool No. 3. Criteria for validity testing ____________________________________ 21
Tool No. 4. How to use research findings to assist planning and implementation _ 25
Tool No. 5. Strategies for online marketing and promotion ___________________ 28
Tool No. 6. Implementation steps for Customer Relationship Management _______ 32
Tool No. 7. Alternative ways to form and sustain alliances ___________________ 35
Tool No. 8. Strategies for developing products _____________________________ 39
Tool No. 9. Guidelin es for pricing products ________________________________ 42
Bibliography _________________________________________________________ 45
Marketing Tools and Models for VET Online
1. Introduction
This document contains nine tools and numerous models of good practice to assist staff in the vocational
education and training (VET) sector to develop skills in market research and marketing planning.
Aim
The aim of the following set of tools and models is to assist registered training organisations (RTOs) in
Australia to enter, maintain and grow national markets for online products and services.
The tools also aim to increase both individuals’ skills and organisational capability in market research and
marketing planning and management, in relation to online products and services. The tools are also
applicable to fields other than online products and services.
Targeted users
The tools are designed for use by individuals and groups within RTOs, who are not professional marketers.
The tools assume that it is beneficial for all staff in an RTO to have some marketing skills, from teaching
and library staff, to front office and back office staff and management.
It is also assumed that most users of these tools will not have a previously developed theoretical
framework for market research and marketing planning and management. Wherever possible, the text
makes clear where the assistance of staff with marketing expertise or advanced knowledge is desirable.
Marketing is not a simple discipline. Hence, a theoretical framework is necessary if full benefits are to be
obtained from the various tools. This resource provides many theoretical constructs, but users may wish
to extend further their knowledge of marketing by using the references cited at the end of each tool.
Users of these tools who do have a previously developed theoretical framework will be able to add their
own knowledge and experience to these tools.
How to use
The tools can be used either by an individual within an RTO or by teams of staff within an RTO, as part of
market research and marketing planning activities.
The tools also can be used as staff development exercises prior to being used in real-world marketing
situations. Before using the tools within RTOs, staff development officers may wish to customise the tools
to suit their own RTO and staff, as the marketing challenges for each RTO are different. Advice on
customisation is provided for each tool.
Definitions
For this resource, the following definitions are used:
•
Tools are practical devices designed to assist RTOs in market research and planning, including steps
to take and other resources to access on the same topic.
•
Models are exemplars of good practice in VET, in market research and marketing planning, related to
online products and services.
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Marketing Tools and Models for VET Online
•
Online products could include pre-packaged or customisable online courses, learning management
systems, software for constructing online courses or similar. For brevity, the tools set out in this
document focus on online courses.
•
Online services could include administrative, teaching or student support services for online courses,
or consulting, research or evaluation services for online learning. For brevity, the tools set out in this
document focus on supporting online courses, not consulting.
•
Marketing research is the systematic design, collection, analysis and reporting of data that may be
used to solve a specific marketing problem. Market research is research into a particular market,
which is one component of marketing research. Three of the nine tools in this document relate to
market research.
•
Marketing planning and marketing management follow marketing research and enable marketers
to make decisions about target markets, market positioning, product development, pricing,
partnerships and other matters. Marketing planning and management will enable RTOs to attract and
retain markets. Six of the nine tools in this document relate to marketing planning and management.
Origins
John Mitchell & Associates developed the tools in September-November 2001, for the Flexible Learning
Advisory Group (FLAG), as one component of the national project to provide research and develop tools
and models to support the growth of VET online products and services in the Australian marketplace.
The research for that project and for previous projects (Mitchell, 2000a, 2000b, 2000c; Mitchell et al 2001)
informed the design of the tools. The research for the 2001 FLAG project involved a literature review,
interviews and surveys. The research showed that if the market for VET online products and services to
grow, VET personnel need to develop more skills in marketing.
Personnel from twenty different VET organisations around Australia were invited to field-test the draft tools
in October-November 2001. They are listed in Appendix 3 of the final report for this project, ‘The Changing
Australian Market for VET Online’. Additionally, over 120 participants at four national Briefing Sessions in
Sydney, Melbourne, Canberra and Adelaide in November-December 2001 also reviewed the tools.
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Marketing Tools and Models for VET Online
2. Principles and assumptions
A number of business and educational principles and assumptions underpin the tools set out in this
document.
Benefits of marketing
Marketing can provide you, your organisation and your current and future clients with many benefits. For
instance,
•
Marketing can help you identify and satisfy your clients’ wants.
•
Marketing can help you to refine and develop both products and services to satisfy clients, saving you
time and money.
•
Marketing can help you achieve your organisation’s objectives.
Integrating the tools with your RTO
These tools need to be used creatively to respond to individual marketing opportunities. It is anticipated
that you will make the tools more relevant to you, by customising them to suit your RTO’s situation.
Customisation tips are provided with each of the tools.
Most value will be derived from these marketing tools if your organisation currently has a market
orientation, defined below. The tools are designed to be used to support and inform your RTO’s ongoing
marketing planning and management.
Developing a market-driven orientation
Ideally, every RTO will have a market-driven orientation to online products and services, not a sales-driven,
product-driven or technology-driven approach. The differences between a sales-driven approach and a
marketing approach are provided in the following table.
Table 2.1 Selling versus marketing orientation (based on Stanton et al, 1995, p. 14)
Selling orientation
Marketing orientation
Emphasis on the product
Emphasis on VET customers’ wants
RTO first makes the product and then
works out how to sell it
RTO first determines customers’ wants and then
works out how to make and deliver a product to
satisfy those wants
RTO management focuses on volume of
sales
RTO management is profit oriented (for public
providers, ‘profit’ may be attracting sufficient
students to justify the expenditure)
Stresses needs of sellers
Stresses wants of buyers
Selling is an essential aspect of any broad marketing program. However, selling follows marketing, so it is
imperative first to get the marketing right. With a marketing orientation, your RTO will first found out what
the customer wants and then develop a product that will satisfy that want and also yield a profit.
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Marketing Tools and Models for VET Online
Four aspects of a market orientation
The tools in this document are designed for use within a market-oriented RTO. A market orientation
towards online products and services includes a focus on the following four matters:
1.
Target markets. RTOs cannot satisfy every market for online products and services, so it is
sensible to target specific markets. Experiences to date in Australian VET show that offering online
products and services to undifferentiated mass markets of students is unlikely to succeed. For
instance, building online courses and then placing them on websites, hoping students will enrol,
has resulted in low levels of success.
Good practice However, there is a range of good practice models cited through this document, of
RTOs targeting specific markets, such as Illawarra Institute’s Julie Collereda who has effectively
marketed an online course on Wound Management as a Graduate Certificate for Nurses around
NSW.
2.
Customer needs. Understanding customers’ needs is challenging for RTOs where online learning
is involved, because students may not have experienced it before, or they may have had a negative
experience with it (particularly if it wasn’t designed well), or they may prefer the traditional
classroom. Online learning does not suit all learners or all learning contexts. If one asked most
students if they would prefer online learning to instructor-led classroom learning, recent research
shows that the majority would choose the classroom. But ask them if they want to enhance their
chances of learning and succeeding, by accessing learning materials outside of classrooms, at
times that suit them, cheaply and easily via the web, in addition to face-to-face contact with a
teacher and other class members, and many might answer differently.
3.
Integrated marketing. This occurs when every department and division of an RTO works together
to meet the customer’s needs. While many RTO staff will not be formally trained in marketing, a
market-oriented RTO will encourage all staff to have a customer focus. Online products and services
need to be seen by all members of staff as ways of meeting customers’ wants, not as ends in
themselves.
4.
Profitability. For privately funded RTOs, the ultimate purpose of being market-oriented is to achieve
corporate goals and to remain profitable. For publicly funded RTOs, the ultimate purpose of being
market-oriented is to achieve goals and to attract sufficient funding to continue operating. Whether
RTOs are public or private, they are in the business of being market-oriented, achieving
organisational goals and maintaing profitability. Providing appropriate online products and services
may assist all RTOs to achieve their goals. The key is to know where and how the products are
wanted and are appropriate. This will keep changing, as new technologies enable the development
of new products and services and customers’ attitudes change.
Educational limitations of online products and services
Educationally, online products and services are not suitable in all learning situations. Research for this
FLAG project shows that online learning will have a stronger future if it is tucked inside an e-learning
framework (offering a variety of technologies) and nested within a broader flexible learning framework
(offering a variety of support mechanisms).
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Marketing Tools and Models for VET Online
Diagram 1: The relationship between flexible learning, e-learning and online learning, as viewed increasingly
by the market
flexible learning
e-learning
online
learning
(Internet &
Intranet)
CD-ROMs
other
technologies
Hence, the marketing of VET online products and services is more likely to succeed where the products
and services are promoted as part of a mix of learning strategies offered by the RTO. ‘Blended learning’ is
the new marketing phrase in the USA.
Equity issues
Reference is made above to making VET services available through a variety of mechanisms (e.g. CD
ROM, intranet and Internet). RTOs also have to satisfy requirements in relation to the needs of equity
groups such as the vision impaired, people in remote areas and Indigenous people.
Equity issues are particularly complex in the field of online learning. For instance, practices such as
providing text-based alternatives for multimedia to comply with W3C requirements may be boring for the
vision impaired user.
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Marketing Tools and Models for VET Online
3. Complementary resources
The tools in this document are best used in conjunction with other, related resources.
Other resources developed by this project
Users of these tools will benefit from accessing the other resources developed for this FLAG project, and
which will be available soon after the project’s conclusion in November 2001 at
http://flexiblelearning.net.au/national/np_news.htm
1.
Report: Summary of Existing Market Research into VET online products and services
2.
Report: Scan of the Literature on Market research into VET online products and services
3.
Report: Initial Target Markets for VET online products and services
4.
Final Report on the Australian market for VET online products and services containing:
i. Detailed profile of selected Australian markets for online products and services
ii. Access strategies for selected markets identified through the research
iii. Good practice models of successful VET providers in the online national marketplace.
iv. Recommendations for further development of tools and models, online training products and
services
5.
A database of agencies, organisations, individuals and information to support VET marketing of
products and services
6.
Briefing sessions and reports tailored to the needs of key stakeholders.
Links to the Flexible Delivery Business Planning Framework
These Market Research Tools and Models extend the Flexible Delivery Business Planning Framework
developed for the Flexible Learning Advisory Group (FLAG) in 2000 and available at
http://www.flexiblelearning.net.au/busmodels/index.html . The Business Planning Framework is designed
to facilitate the effective development and delivery of sustainable flexible delivery solutions.
The Business Planning Framework refers at various points in the Framework to marketing issues. In
particular, the Business Case Section refers to Market Assessment and Knowledge on pp.14-17. Topics
covered include:
•
Market assessment: Current Situation? Attractiveness? Market Access and Readiness? (p.15)
•
Self Assessment (p.17)
•
Collaboration (p.17)
•
Overall Assessment (p.17).
It is recommended that you preview the Business Planning Framework’s questions on pp.14-17 of the
Framework before using the tools below. This will prepare you for the more detailed market research
activities proposed in this set of tools.
Other resources
Users are directed towards other resources cited at the end of each tool.
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4. Summary of the tools
The following table summarises the tools provided in this document.
The table also provides a rating of the difficulty of each tool for non-marketing personnel.
Table 4.1: Summary of the tools provided in this document
Name of tool
Skill category
Purpose
Level of difficulty
for non-marketing
personnel*
1.
Data
collection
tasks
Market research
This tool will help you to collect
quality data about your customers’
needs for online products and
services.
Low
2.
Data analysis
steps
Market research
This tool will help you to derive
meaning from the raw data
collected in your market research
on online products and services.
Medium
3.
Criteria for
validity
testing
Market research
This tool will help you to test the
validity of your market research
findings.
High
4.
How to use
research
findings to
assist
planning and
implementati
on
Marketing planning
and management
This tool will help end-users-including your colleagues in the
RTO--to use the findings from your
market research, to commence
marketing planning and
implementation.
Medium
5.
Strategies for
online
marketing
and
promotion
Marketing planning
and management
This tool will help you to develop
strategies for online marketing and
promotion.
Medium
6.
Stages for
Customer
Relationship
Management
Marketing planning
and management
This tool will help you to acquire,
service and retain customers for
life.
High
7.
Alternative
ways to form
and sustain
alliances
Marketing planning
and management
This tool will help you to develop
and maintain alliances for comarketing.
Medium
8.
Strategies for
developing
products
Marketing planning
and management
This tool will help you to develop
new, improved or refined products.
High
9.
Guidelines for
pricing
products
Marketing planning
and management
This tool will help you to price your
products and services to suit both
your RTO’s objectives and the
market.
High
*You are advised to use the tools with a medium-high level of difficulty with the support of a colleague who
is experienced in marketing.
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Marketing Tools and Models for VET Online
Other marketing tools you could develop
The nine tools set out in this document represent only some of the tools that can be developed and used
by RTOs to enter, maintain and grow national markets for online products and services. The nine tools
were selected by FLAG representatives and included in the Brief for this project. A sample of other tools
that could be developed include tools in relation to:
•
Purchasing existing research
•
Promotion
•
Managing the sales process
•
After-sales service.
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Marketing Tools and Models for VET Online
5. The Quick Market Research Approach
The first three tools in this document relate to market research: data collection, data analysis and validity
testing. Feedback on the draft set of marketing tools clarified that, in many cases, it will not be possible or
necessary to conduct the thorough market research in the manner set out in tools No.1-3. Hence this
Quick Market Research Approach is provided.
Reasons for a quick approach
Reasons for a quick approach to marketing research could include:
•
The RTO does not have the resources to undertake or outsource a comprehensive market research
activity.
•
The RTO does not have the time available to wait till sufficient funds are available
•
The RTO perceives a need to respond very quickly to a market opportunity
•
The market opportunity is very specific, small, contained and within a market already well known to
the RTO
•
The customer, say an enterprise, has approached the RTO and wants a speedy response.
A quick approach is also justifiable when a product, such as an ANTA-funded Toolbox that was designed
in response to market research into a particular industry, is now available for use in new markets.
(Toolboxes are products of a FLAG project that promotes the development of high quality online
courseware and other online products to support VET programs and services.)
Elements of a quick response
Depending on a the marketing opportunity, the RTO might take the following quick approach to market
research:
•
Data collection: simply collate existing secondary information and do not seek primary data, e.g. do
not conduct interviews or surveys
•
Data analysis: using a short list of objectives for your market research, analyse the data yourself,
without seeking the services of an expert
•
Validity testing: identify the limitations of your research, do not conduct an experiment and accept
that the market research has limitations and that the findings can’t be applied to any other setting.
It is also useful to consider where the above three steps fit into a comprehensive marketing program and to
identify which other steps also need to be undertaken in a quick study. Eleven steps for market research
are set out in Tool No.1.
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Tool No.1. Data collection tasks
Purpose of the tool
This tool will help you to collect quality data about your customers’ needs for online products and services.
Description of the tool
This six-step tool enables you to logically approach the task of data collection, starting by locating data
collection within the field of market research, then asking you to clarify who will do the data collection, and
how and where.
Quick overview
The following table provides a quick overview of the tool.
Table T1.1: Introduction to Tool No.1: Data Collection
Aspect
Benefits of using the
tool
Why and when to
apply the tool
Explanation
The tool will ensure your data collection
•
fits in with your overall marketing planning
•
is undertaken by appropriate personnel
•
includes appropriate primary and secondary data
•
accesses relevant and available sources
•
draws on a range of methodologies
•
is high quality.
The tool can be used to investigate new markets or to review existing
markets.
The tool is best used when there is sufficient time to use a methodical,
thorough approach to market research.
Easy steps for using
the tool
Underpinning
concepts
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The tool involves six steps:
•
Clarify where data collection fits in
•
Decide who will collect the data
•
Decide on the type of data to be collected
•
Identify the sources of data
•
Use a range of primary data collection methodologies
•
Ensure quality in your data collection
Some of the concepts underpinning this tool are:
•
Data collection is just one of many steps in the market research
process
•
Quality data will come from a thorough preparation for data
collection
•
There are many optional data collection methodologies, each with
advantages and limitations.
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Marketing Tools and Models for VET Online
Step No.1. Clarify where data collection fits in
The first part of this tool is to understand where data collection fits into the market research process.
Burns & Bush (2000) identify eleven basic steps in the marketing research process, with data collection
listed at step nine. The steps are not always followed in a lock-step fashion by researchers, but normally
all of these tasks need to be undertaken:
1. Establish the need for marketing research
2. Define the problem
3. Establish research objectives
4. Determine research design
5. Identify information types and sources
6. Determine methods of accessing data
7. Design data collection forms
8. Determine sample plan and size
9. Collect data
10. Analyse data
11. Prepare and present the final research report (Burns & Bush, 2000, p.71).
Either on your own, or in your staff team, you are encouraged to address items 1-8 before beginning to
collect data.
Step No.2. Decide who will collect the data
You and your staff team may wish to collect the data or you could hire a professional researcher or you
could outsource the project to another company.
Good practice An example of outsourcing is as follows: in 2000-2001 TAFE frontiers in Victoria engaged
Online Learning Australia to conduct a mail-out survey of the take-up and use of online learning strategies
and systems in corporate Australia. Roy Morgan Research then conducted the research on behalf of these
two parties. See the report at www.tafefrontiers.com.au
Step No.3. Decide on the type of data to be collected
Both primary and secondary data can be collected. Definitions are:
•
Primary data is information gathered by the researcher specifically for the research project at hand.
•
Secondary data is information previously been gathered by someone other than the researcher. (Burns
& Bush, p.159)
Primary data has advantages and disadvantages. Its advantages include the fact that the researcher can
target the exact information required for the current project. Hence, the data will be relevant. However,
primary data collection is time-consuming.
Secondary data also has advantages and disadvantages. Its attractions are imposing: it is often quick, easy and
cheap to access. However, there are problems with secondary data, such as the material being out of date or
prepared for a different context. For example, USA merchant bank analyses of the USA market for e-learning like
that prepared by W.Hambrecht in March 2000 and available for free on the Internet, only have partial relevance to
the Australian VET market for online products and services. See
http://www.wrhambrecht.com/research/elearning/ir/ir_explore.html
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On the other hand, it is normal to commence your research by collecting secondary data, before seeking
primary material, as secondary data will often provide useful frameworks for the primary research, such as
definitions, concepts and existing knowledge about the topic.
Before beginning your data collection you could examine the secondary material on VET online products
and services available at websites such as FLAG’s http://www.flexiblelearning.net.au
Good practice Before conducting interviews and surveys for this project on the national Australian market on
online products and services, a comprehensive literature review was undertaken, using both print-based
and web-based materials. This secondary data influenced the design of the interview and survey
instruments.
Good practice Prior to commencing their ‘State of Play’ survey on flexible delivery in 2001, TAFE frontiers
developed the question framework below. This framework helped in planning the eventual survey questions.
Table T1.2: TAFE frontiers’ question framework, prior to developing survey questionnaire
Awareness
Policy &
initiatives
Barriers and
success factors
Of various state
and national
policies or
initiatives
Is the respondent
aware of barriers
to flexible learning
related to
bandwidth,
technological
infrastructure,
skills, costs, no
need, lack of
knowledge and/or
information?
Professional
development
Awareness of
professional
development
initiatives?
Innovation
Questions of
access?
Questions related
to awareness of
new approaches,
TAFE VC,
Toolboxes,
Institute activities,
e-commerce,
HRD, investment
related to SS8,
alliances
/partnerships
Questions related to
amount of
professional
development and its
source.
To what extent
has the
respondent been
involved in these
activities?
What does the
respondent
consider to be the
barriers and
success factors?
Involvement
To what extent
has the
respondent
been involved?
To what extent
and in what ways
has the
respondent been
involved?
Is this how the
respondent would
describe
innovation?
Impact
What impact
have these
P&Is had on
change of
practice
Extent to which
implementation
has been
affected?
What has been the
impact of the
professional
development on
change of practice?
What have been
the changes seen
through
innovation?
Needs
What are the
future policy
needs?
What is needed to
overcome the
barriers or
continue to
develop the
success factors?
What are the
current and future
needs for
professional
development?
What do you need
to be innovative?
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Marketing Tools and Models for VET Online
Step No.4. Identify the sources of data
Secondary data can be collected from books, journals, newspapers, databases and Internet sites. The
library and the web are two places to visit early in your study, before commencing your field research.
Good practice For example, an extensive list of secondary sources is contained in Section 4 of the TAFE
frontiers report Critical Issues for VET Managers in Flexible Learning (Mitchell et al, 2001) available at
htttp://www.tafefrontiers.com.au
Primary data can be collected from interviewees, focus groups and survey respondents.
Good practice For example, in late 2000, TAFE NSW commissioned SmartArts Communication to develop a
profile of the ‘ideal’ VET provider and to identify what role an Internet capability would play in such a profile.
The project also collected information about preferred communication channels in relation to the Internet,
basic preferences regarding site performance as well as an understanding of the Internet competencies of
various market segments. To collect the data, SmartArts conducted interviews and focus groups and
distributed a survey form.
Good practice Segmenting the market, before conducting field research, will lead to the development of more
useful data. In the TAFE NSW market research study, survey returns were received from 339 people from
the following ten, targeted market segments:
1.
School leavers
2.
Career builders
3.
Career changers
4.
People returning to work
5.
TAFE students
6.
Small to medium businesses
7.
Medium to large businesses
8.
TAFE teachers and advisors
9.
Secondary school career advisors
10. Professionals unlikely to attend TAFE.
Step No.5. Use a range of primary data collection methodologies
Secondary data collection normally involves an analysis of print material. However, primary data collection
can take many forms: for instance, it can be qualitative or quantitative or a combination. Qualitative
research involves collecting data by observing what people say and do. Quantitative research normally
involves the use of structured questions where the response options have been predetermined and a large
number of respondents is sought. (Burns & Bush, 2000, p.230)
Primary data collection methods include the following methodologies:
•
Observation
•
Focus groups
•
Interviews, ranging from structured to unstructured and in-depth interviews; and both face-to-face and
telephone interviews
•
Surveys.
Good practice For example, Douglas Mawson Institute of Technology developed a multimedia
CDROM/Internet program for printing students. To evaluate student responses to the prototype,
researchers Jasinski and Mitchell used multiple methodologies, including
•
observing students using the program in the following settings: at home, at work, at school (for VET in
school students) and in a TAFE college
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Marketing Tools and Models for VET Online
•
meeting with the sample of 12 users as a single group, to discuss the project
•
interviewing all individual users
•
distributing surveys to the users.
Figure T1.1: OnFX Market Research Case Study
Good practice Education Image Pty Ltd was engaged by the Consortium of Print and Graphics Art
Providers to undertake a market research study into the demand for the online training product
OnFX in 1999.
The objective of this project was to gather enough valid, relevant information to make an
assessment as to how the Consortium could best market OnFX in a competitive and profit
generating manner within new media industries. New media means industries related to the
Printing, media and graphic arts including but not limited to publishing, web design, graphics, Print
and desktop publishing.
The aims of the market research study were to:
1. Identify potential markets for the OnFX product within new media industries
2. Identify some cost effective marketing strategies for OnFX to target those markets
3. Identify any barriers to the marketing of OnFX
The final market research strategy recommendations were based on the findings of five separate
research activities:
1. interviews with Consortium members (4)
2.
the primary quantitative (questionnaire, 102 respondents),
3.
the primary qualitative information provided by interviews at the Print conference (10)
4.
the primary qualitative interviews with identified industry representatives (4)
5.
the secondary research offerings.
The data collection focus of the market research study was surveying participants at the PrintEx
Conference at Darling Harbour on 1-3 July 1999.
This research conducted at the Conference took two forms:
•
a self-completion mini-depth questionnaire distributed to Conference delegates who visited
the exhibition (response sample 102) and
•
an in-depth face to face interview with responsive conference delegates (10 respondents).
Step No.6. Ensure quality processes in your collection methods
Care is needed in collecting data, to avoid the following types of problems:
•
Interviewers leading the interviewee
•
Interviewers offending the interviewees
•
Interviewers suffering from fatigue
•
Respondents providing false responses
•
Respondents misunderstanding interview or survey questions.
These types of problems can be overcome through:
•
Carefully selecting the interviewers and providing them with an induction and training
•
Ensuring the interviewers do not become overloaded
•
Assuring interviewees that their anonymity and confidentiality will be maintained
•
Ensuring that interview and survey questions are clearly worded, involving direct, unambiguous
questions.
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Open and closed interview questions
Both open and closed questions are useful in interviews. Examples of open questions that encourage
respondents to provide, in their own words, their views and experiences are:
•
What do you like about the courses currently delivered by TAFE SA in the Primary Industries
Program?
•
What do you like about the courses currently delivered by other providers in the Primary Industries
Program?
•
What additional skills do you need to use new learning technologies, e.g. the Internet, videotapes, CD
ROMs, audiotapes and printed materials?
•
What are the major incentives to changing the way you access your learning?
•
What are the major impediments to changing the way you access your learning?
Examples of closed questions in interviews that encourage respondents to provide responses from a
limited choice, such as questions that invite either a yes or no, include:
•
Are you currently employed?
•
If so, do you work in private enterprise or for a government body?
•
Were you born in Australia?
•
Did you complete year 12 at school?
•
Do you have an undergraduate degree?
•
If you are employed, do you work in a metropolitan area?
•
Do you use the Internet at work?
•
Do you use the Internet at home?
•
Would you study online more often if you were aware of more online courses?
Sample survey questions
Examples of direct survey questions that are likely to lead to useful data being collected include:
•
Have you studied online before?
•
If so, was it satisfactory for your needs?
•
Would you describe yourself as a self-directed learner, requiring minimal contact with a teacher?
•
Do you prefer to learn through reading and listening, rather than through hands-on practice?
•
If you have studied online previ ously, was it supported by face-to-face contact with your teacher?
•
If so, how valuable was this extra support?
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Customising this tool
You can customise this six-step tool to suit your RTO’s context, staff and markets. For each of the six
steps, you could ask yourself the questions listed below.
Table T1.3: Questions to assist customisation
Steps
Questions to help you customise the tool
1.
Clarify where data
collection fits in
What marketing problem are you addressing in this research?
What are the objectives of your research?
2.
Decide who will
collect the data
What options do you have in selecting researchers?
3.
Decide on the type
of data to be
collected
What secondary data do you already have?
4.
Identify the
sources of data
Where are you likely to find most secondary data?
Who can you interview or survey? Who can you involve in a focus
group?
5.
Use a range of
primary data
collection
methodologies
Which methodologies are likely to work best in your markets:
interviews, observations, surveys or focus groups?
6.
Ensure quality
processes in your
data collection
How will you ensure quality processes in your data collection?
Sample resources on the topic
Sample resources on the topic are set out below.
Table T1.4: Resources related to data collection
Resource Type
Key resources
Generic resource
Burns, A. & Bush, R.F. (2000), Marketing Research, Prentice Hall
International Inc, New Jersey
Mann, C. & Stewart, F. Internet Communication and Qualitative
Research: A Handbook for Online Research, order via:
http://www.realworldres.com.au/results.html
VET resources
FLAG Flexible Delivery Business Planning Tool, available at
http://www.flexiblelearning.net.au/busmodels/index.html
Mitchell, J.G, Latchem, C., Bates, A. & Smith, P. (2001), Critical
Issues in Flexible learning for VET Managers, TAFE frontiers,
Melbourne (see Section 3.7)
http://www.tafefrontiers.com.au/content/MoreNewsPage.html
Mitchell, J. G. (2000a) International e-VET Market Research Report, a
report on international market research for Australian VET online
products and services, EVAG.
http://flexiblelearning.net.au/evetmarketing/docs/intlmark.rtf. Includes
primary data from eleven Asian countries.
Reid, C. (2001), Flexible Learning in VET: Market Research, 2001
(forthcoming. www.tafefrontiers.com.au)
TAFE frontiers and Online Learning Australia (2001), The Current Status of
Online Learning in Australia http:// www.tafefrontiers.com.au
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Tool No. 2. Data analysis steps
Knowing what to analyse, how to analyse, and how to interpret the results are what makes your
research worthwhile (Burns & Bush, 2000, p.486).
Purpose of the tool
This tool will help you to derive meaning from the raw data collected in your market research on online
products and services.
Description of the tool
This three-step tool guides you in analysing data that meets the objectives of your market research, using
either basic or advanced techniques.
Quick overview
The following table provides a quick overview of the tool.
Table T2.1: Introduction to Tool No.2: Data Analysis
Aspect
Benefits of using the
tool
Explanation
The tool will ensure that
•
You only use data that is relevant to your purposes
•
You follow good practice in cleaning and tabulating the data
•
You determine whether you have the skills for advanced analysis
or outsource advanced analysis
•
You focus on interpretation of the data.
Why and when to
apply the tool
The tool is used to ensure you gain maximum insights from your
market research, after you have completed your data collection.
Easy steps for using
the tool
The tool involves three steps:
Underpinning
concepts
flexiblelearning.net.au
•
Decide on what to analyse
•
Analyse the data and get an expert if you’re not, for advanced
statistical analysis
•
Interpret the results
Some of the concepts underpinning this tool are:
•
Data analysis often involves entering data into computer files,
inspecting it for errors and performing tabulations and statistical
tests.
•
Advanced data analysis requires a knowledge of statistics.
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Marketing Tools and Models for VET Online
Step No.1. Decide on what to analyse
Having collected qualitative and quantitative primary and secondary data, it is important to know what to
analyse. Sometimes the volume of data is a difficulty. Sometimes it is easy to become unclear about
what is important to analyse and what can be discarded, if you have undertaken significant primary
research over a period of time.
Faced by too much data or confusion about what to do, the keys are to:
•
return to the purpose and objectives of your market research
•
use the objectives of the market research to select the data for analysis.
Step No.2. Analyse the data and engage an expert if you’re not, for advanced
statistical analysis
Analysing the marketing data you have collected in relation to VET online products and services can be
undertaken at any level, from basic interpretation of data through to the use of advanced techniques. Of
course, a basic analysis will not reveal the rich insights of more advanced analyses.
When computer analysis software is used, a basic analysis starts with data cleaning, that is verifying that
the data has been correctly inputted from the data collection form to the computer software program. A
basic analysis normally then involves tabulating the data, that is counting the number of observations that
fall into each possible response category (e.g. 129 students prefer classroom instruction; 111 prefer online
learning).
Good practice An example of sound, basic analysis is provided in the following excerpt from the report on the
market potential of the OnFX online training product, conducted by Education Image for the VET
Consortium of Printing and Graphic Arts in 1999:
The survey response sample was 78% male.
Approx. 31% came from regional locations, whilst 69% were from capital cities.
There was a good spread across the age categories: 18-24 years = 9%, 25-34 years = 27%, 35-44
years = 31%, 45-54 years = 28%, whilst over 55 years 4%.
Approx. 50% of the 102 respondents work within the Print industry, whilst 21% come from the
Graphic Design industry.
Other industries (17%) identified by the survey included: sales and supplies, Government, paper
merchants, banking, pharmaceuticals, and welding/construction.
Good practice. The following table from the OnFX report is an example of useful, clear tabulation in a market
research report.
Table T2.2: Level of interest in participating in online training in the future (OnFX survey)
INDUSTRY
Interest level
Graphic
Design
Print
Other
Grand Total
Very disinterested
0%
4%
6%
3%
Somewhat disinterested
10%
16%
18%
14%
Somewhat Interested
48%
49%
35%
45%
Very Interested
38%
25%
35%
30%
Not specified
5%
6%
6%
8%
Grand Total
21
51
17
102
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Marketing Tools and Models for VET Online
Advanced techniques include different types of statistical tests, including means, frequencies, averages,
correlations and trend analysis. A popular text that shows the extent of advanced data analysis is
Marketing Research by Burns & Bush (2000).
To apply these advanced techniques requires high-level market research expertise and experience, so this
current tool is aimed at the basic level, for the non-specialist in marketing. However, this tool will prepare
you for working with a specialist and gaining more from the experience.
Good practice TAFE frontiers and Online Learning Australia modelled good practice in engaging the services
of experienced Roy Morgan Research for the study in 2000-2001 on the take-up and use of online learning
strategies and systems in corporate Australia. See www.tafefrontiers.com.au
Step No. 3. Interpret the results
Interpretation goes beyond basic analysis. RTO managers don’t want to be overwhelmed with reams of
computer printouts of statistical analyses: RTO managers need to interpret the results so that choices can
be made and decisions taken. Interpretation involves spotting trends, finding patterns and identifying
relationships between variables.
Good practice. Interpretation of the results from the OnFX Market Research study included the following
comparison between what affects training decisions in the print industry versus what the OnFX consortium
was offering users of its product.
Table T2.3: Comparison between what affects training decisions in the Print Industry and what OnFX
promoted (from the OnFX market research study, 1999)
What affects training decisions
What OnFX offers
Training is practical and skills focussed
Quality of tutor support
Reputation of training provider or product
Flexibility
Cutting edge technology
Innovative, user friendly, value for money
On-line tutor support and assessment
TAFE is a respected training provider
Learn at own pace, own place and pleasure
Training accredited to national training
standards
The above table helped the OnFX Consortium to re-align its marketing messages to fit with the mind-set of
its customers.
Customising this tool
You can customise this three-step tool to suit your RTO’s context, staff and markets. For each of the
three steps, ask yourself the questions below.
TableT2.4: Questions to assist customisation
Steps
1.
Decide on what to analyse
Questions to help you customise the tool
What is it you want to know?
Which data you have collected fits with your purpose and
objectives?
2.
Analyse the data and get an
expert if you’re not, for
advanced statistical analysis
Do you have skills in-house in data analysis, particularly
skills in statistics?
3.
Interpret the results
How does the data need to be presented, to enable easy
interpretation by managers?
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Marketing Tools and Models for VET Online
Sample resources on the topic
Sample resources on the topic are set out below.
Table T2.5: Resources related to data analysis
Resource Type
Key resources
Generic resource
Burns, A. & Bush, R.F. Marketing Research, Prentice Hall
International Inc, New Jersey
VET resources
FLAG Flexible Delivery Business Planning Tool, available at
http://www.flexiblelearning.net.au/busmodels/index.html
Reid, C. (2001), Flexible Learning in VET: Market Research, 2001
(forthcoming. www.tafefrontiers.com.au)
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Marketing Tools and Models for VET Online
Tool No. 3. Criteria for validity testing
Purpose of the tool
This tool will help you to test the validity of your market research findings.
Description of the tool
This three-step tool enables you to use criteria and a checklist to ensure that the findings from your
market research are valid. It also helps you to identify the limitations of your research.
The following table provides a quick overview of the tool.
Table T3.1: Introduction to Tool No.3: Validity Testing
Aspect
Benefits of using the
tool
Why and when to
apply the tool
Explanation
The tool will
•
ensure that your findings are valid
•
identify the limitations of your research.
The tool can be used after you have collected and analysed your data,
prior to finalising your report.
The tool is best used when you have conducted a market research
experiment, such as the use of a ‘control’ group and an ‘experimental
group’ although experimenting is high-order technique requiring the
assistance of an expert in marketing.
Easy steps for using
the tool
Underpinning
concepts
The tool involves three steps:
•
Identify the limitations of your research.
•
If conducting an experiment, use a checklist of validity concerns
•
If conducting an experiment, use two criteria to decide whether the
research is valid.
Some of the concepts underpinning this tool are:
•
Experimental design is difficult but worthwhile
•
Validity can be tested using sets of criteria.
Step 1: Identify the limitations of your research
Decisions may be made as a result of your research, requiring special care in your analysis of your
results. For instance, as a consequence of your market research, funds may be re-allocated to the
development of online resources; students may become the focus of new marketing efforts to persuade
them to become online learners; and staff roles may change as a result of your research. Given the
potential ramifications of your research, it is ethical to identify the limitations of your study.
One of the common limitations of a market research study is that the sample of people interviewed or
surveyed or observed was not sufficiently broad or numerous. Following is an example of how these sorts
of limitations can be articulated.
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The market research study of the OnFX online training product included
this statement about the limitations of the sampling conducted for that study:
Good practice
All the limitations outlined below were highlighted for the client prior to undertaking the study.
A limitation of the study was that the PrintEx Conference was predominantly Print industry focussed.
As a result the sample is biased and the information gathered in relation to web design and
multimedia was not sufficient to assist us with the development of strategies in this area.
However, it was indicated that the Consortium only had resources to take advantage of the PrintEx
opportunity and 'get a feel' for the markets needs, not undertake an in-depth, valid and reliable study.
A further limitation, was that the sample size allowed by consortium resources was insufficient to
enable detailed analysis of sub-sections. This has restricted the depth of analysis that has been
drawn from this sample and the recommendations that have been made. We are only able to make
broad assumptions and recommendations, as to the general direction the market is taking.
For the future, we would recommend the need to broaden this study to include evaluation of existing
users and other means of researching potential markets. (Education Image, 1999a)
Good practice TAFE frontiers and Online Learning Australia modelled good practice in aligning their survey
(TAFE frontiers, 2001) to an international one, to obtain benchmark data as well as local data. See
www.tafefrontiers.com.au
Step 2. If conducting experiments, use two criteria to decide whether the research
is valid
Often experiments are conducted in market research. This is a complex but valuable methodology, and
recommended for those with an understanding of experimental design.
It is possible to test the validity of a market research experiment, using two criteria identified by Burns &
Bush (2000, p.145):
1.
An experiment is valid if the observed change in the dependent variable is due to the independent
variable. Dependent variables are those variables that the researcher has little or no control over.
Independent variables are those variables over which the researcher has some control and wishes to
manipulate. A VET manager can increase expenditure on advertising (an independent variable), but
cannot control the level of enrolments (dependent variable). The manager will want to change this
dependent variable by manipulating the independent variable (e.g. advertising in locations which are
likely to influence potential students). The manager will then want to prove that this change in the
advertising strategy influenced enrolment levels.
2.
An experiment is valid if the results of the experiment apply to the ‘real world’ outside of the
experimental setting. A common threat to external validity is the sample of interviewees and survey
respondents is not representative. For instance, findings from a survey of attitudes to online learning of
male apprentices in regional areas cannot be extrapolated to all VET students in all locations.
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Marketing Tools and Models for VET Online
Step No.3. If conducting experiments, use a checklist of validity concerns
Internal validity is concerned with the extent to which the change in the dependent variable was actually
due to the independent variable. External validity refers to the extent to that the relationship observed
between the independent and dependent variable during the experiment is generalisable to the outside
world. (Burns & Bush, 2000, p.145).
The following table provides examples of both internal and external validity concerns.
TableT3.2: Examples of validity concerns in marketing experimentation (based on Burns & Bush, 2000,
p.146)
Internal validity concerns
External
concerns
validity
Extraneous factors
Have extraneous events or influences affected
the outcome of the experiment?
Subjects guessing
Were subjects ‘tipped off’ as to the
experiment’s objectives before or during the
experiment?
Representative
sample
Was the sample used representative of the
population to which the results were
generalised?
Generalisability
Can the experiment’s results be applied to
others not directly involved in the research?
If you do not have experience in designing experiments, you are encouraged to seek the assistance of
someone who is experienced. Despite their complexity, it is worth conducting experiments, particularly
where you are seeking specific market information that could influence internal strategies and resource
allocations.
Customising this tool
You can customise this three-step tool to suit your RTO’s context, staff and markets, by asking yourself
questions such as those below.
Table T3.3: Questions to assist customisation
Steps
Questions to help you customise the tool
Admit the limitations of your research
Is your research limited by an unrepresentative sample
or other factors?
Use two criteria to decide whether the
research is valid
What are the dependent and independent variables in
your market research design?
Use a checklist of validity concerns
Check your research against the following concerns:
extraneous factors; subjects guessing; representative
sample; generalisability.
Sample resources on the topic
Sample resources on the topic are set out below.
Table T3.4: Resources related to data validity
Resource Type
Key resources
Generic resource
Burns, A. & Bush, R.F. (2000), Marketing Research, Prentice Hall
International Inc, New Jersey. See chapter 5.
VET resources
Reid, C. (2001), Flexible Learning in VET: Market Research, 2001
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Marketing Tools and Models for VET Online
(forthcoming. www.tafefrontiers.com.au)
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Marketing Tools and Models for VET Online
Tool No. 4. How to use research findings to assist planning and
implementation
Purpose of the tool
This tool will help end-users – including your colleagues in the RTO – to use the findings from your market
research, to commence marketing planning and implementation.
Description of the tool
This three-step tool enables you to use your market research findings to prepare a marketing plan and
then the implementation strategies.
The following table provides a quick overview of the tool.
Table T4.1: Introduction to Tool No.4: Using the research findings
Aspect
Benefits of using the tool
Why and when to apply the
tool
Explanation
The tool will ensure that you:
•
Use your market research to influence decision-making about
target markets
•
Identify your target markets
•
Plan your marketing program.
The tool can be used to optimise the benefits of undertaking
market research.
The tool is best used when you complete your market research.
Easy steps for using the
tool
Underpinning concepts
The tool involves three steps:
•
Influence decision-makers with your report
•
Select your target markets
•
Plan your marketing program.
Some of the concepts underpinning this tool are:
•
Market research reports need to be tailored to suit their
audiences.
•
Market segments can are normally of the following four types:
geographic, demographic, psychographic or behavioural.
•
You can plan your marketing program around the four Ps:
product, price, place and promotion.
Step No.1. Influence decision-makers with your report
The final stage of market research is to present your findings. This is a critical step, as unless it is done
well, your prior work will be wasted. It is important to use the findings from your market research to
influence decision-making about target markets and marketing strategies.
To ensure your hard work in market research is used,
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Marketing Tools and Models for VET Online
•
Tailor your report and presentation to suit the audience. For example, find out how key RTO
management staff and other audiences prefer to have market research reported (e.g. presentation;
written report; informal briefing).
•
Report as soon as possible after you have completed field research, so the information is relevant and
up-to-date.
•
Present your research findings in a manner that is attractive and easy to understand.
Step No.2. Select your target markets
Your market research report provides your RTO with an analysis of its marketing opportunities for online
products and services. You are now in a position to identify your target markets by following these steps:
1.
Divide the market into segments. Markets are normally segmented using the following four factors:
geographic, demographic, psychographic (lifestyle/personality) and behavioural variables. For
instance, your market research may indicate that a likely market segment for your RTO’s online
products and services is in regional areas (geographic segment), for people between the ages of 25-40
(demographic) who lead active, busy lifestyles (psychographic) and have a positive attitude to
computing (behavioural).
2.
Evaluate each segment, by using criteria such as: Is the market measurable? Are the markets large
enough to be profitable? Are the markets accessible by your RTO? Is it possible to develop a
marketing program for the particular market segment?
3.
Select those market segments that your RTO can best serve. For instance, if your RTO has
strength in IT and has little expertise in automotive mechanics, then it may be sensible for your RTO
to target IT-based market segments.
Good practice Illawarra Institute’s ‘Extractive Industries, Quarry Management Diploma Online’, a finalist in
the 2001 ANTA Training Awards, is an instance of a VET provider identifying and catering for a target
market.
Step No.3. Plan your marketing program
You are now in position to plan your marketing program.
Once you have determined how much your RTO can spend on marketing in the field of online products and
services, it is time to divide the marketing budget among the tools in the marketing mix. The most popular
classification of the marketing mix involves four Ps: product, price, place and promotion, as described
below:
Product: this is the RTO’s tangible offer to the market. For instance, it may be an online course on
accounting. The product may be differentiated from other RTOs’ offerings because your RTO offers three
levels of student support to accompany the online course. Product development is discussed further in a
later section of this document.
Price: this is the amount of money a customer will pay for a product. Your RTO may want to use one fixed
price or to introduce discounts. For instance, students who enrol and pay for more than a certain number
of courses may be able to purchase an online course for a reduced rate. Pricing is discussed further in a
later section of this document.
Place (distribution): ‘place’ is the RTO’s ways of making the product available. For example, the course
may be purchased from the RTO website; or over the front desk of the RTO; or through an intermediary
with whom your RTO has a relationship.
Promotion: this includes all the activities your RTO undertakes to communicate its products to the target
market. For example, your RTO may decide to promote its online products and services using trade
exhibition booths at conferences; or with verbal presentations; or with printed flyers; or through live
demonstrations.
The 4 P’s of marketing mix are sometimes extended to five or more, to cover other areas, such as P for
People who will do the marketing or P for politics or public opinion. Just use the 4 Ps as a ready checklist
to get started with your marketing planning.
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Marketing Tools and Models for VET Online
Customising this tool
You can customise this three-step tool to suit your RTO’s context, staff and markets. For each of the
three steps, ask yourself questions as below.
Table T4.2: Questions to assist customisation
Steps
Questions to help you customise the tool
1.
Influence decision-makers
with your report
Who are the audiences for your market research report?
2.
Select your target markets
Are your proposed target markets likely to be accessible and
profitable?
3.
Plan your marketing
program
What are the four Ps for your RTO’s proposed marketing
program?
Sample resources on the topic
Sample resources on the topic are set out below.
Table T4.3: Resources related to using the research findings
Resource Type
Key resources
Generic resource
Kotler, P. (1997) Marketing Management: Analysis, Planning,
Implementation and Control, Prentice Hall International, New Jersey
VET resources
Australian National Training Authority’s work on market segmentation.
Access it at www.anta.gov.au
FLAG Flexible Delivery Business Planning Tool, available at
http://www.flexiblelearning.net.au/busmodels/index.html
Mitchell, J.G. (2000c), Market Driven e-VET, A feasibility study for a
national VET consortium to market, distribute and support online
products and services overseas, EVAG,
http://flexiblelearning.net.au/evetmarketing/docs/feastud.PDF
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Marketing Tools and Models for VET Online
Tool No. 5. Strategies for online marketing and promotion
Purpose of the tool
This tool will help you to develop strategies for online marketing and promotion.
Description of the tool
This three-step tool encourages you to consider a range of ways to improve customer service through
innovative use of the online medium.
The following table provides a quick overview of the tool.
Table T5.1: Introduction to Tool No.5: Online marketing and promotion
Aspect
Benefits of using the tool
Why and when to apply the
tool
Explanation
The tool will ensure that
•
You consider harnessing the power of the Web for marketing
purposes
•
Use the Web to customise and personalise your offerings
•
Use the Web to acquaint visitors to your site with the benefits
of learning online
•
Build traffic to your website
•
Build your RTO’s web brand name.
The tool can be used to enable your RTO to increase its
marketing impact through the use of the Web.
Although the tool is best used when your RTO is designing or
refining its website, it can be used at any time.
Easy steps for using the
tool
Underpinning concepts
flexiblelearning.net.au
The tool involves steps:
•
Harness the forces driving Net marketing
•
Use the power of the Web for marketing purposes
•
Build traffic and brand name.
Some of the concepts underpinning this tool are:
•
The Web is becoming more common in people’s lives
•
Customers will increasingly expect more services from the
Web
•
Principles of customisation and personalisation of services
are influencing the use of the Web by service providers.
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Marketing Tools and Models for VET Online
Step 1: Harness the forces driving Web marketing
The move to online marketing is being driven by some relentless forces, which your RTO needs to
harness:
•
The decrease in the cost of computing. PCs linked to the Internet are fast becoming ubiquitous in
workplaces and homes, making the Internet a powerful location for marketing and promotion. Students
and potential students will increasingly expect your RTO to have a web presence and to deliver more
and more services via the web, from the provision of information about courses and fees, to access to
libraries and to individual staff members.
•
The convergence of digital technologies. Websites such as the ABC’s www.abc.com.au
demonstrate the power of using audio, video and text on the one website. The ABC is raising the
standard of web-based service delivery, as are a range of Government departments and service
providers across industries such as finance and hospitality. RTOs need to be mindful of the quality
level set by these other organizations, as the standard will rise in education as it has in other
industries.
•
Digital technologies allow the creation of new environments. For instance, Amazon.com creates a
digital environment for buyers of books, enabling them to rate books and to participate in an online
community. E-learning providers sometimes create a sense of community with their websites, offering
users access to new research, encouraging users to communicate with other users via bulletin
boards, providing free courses and profiling satisified customers via testimonials. See, for example,
www.etraining.com.au
Despite the collapse in 2000 of many dotcoms that over-rated the potential power of websites, the web is
still and will continue to be a very powerful marketing and promotion medium. Ongoing successes in this
domain include websites for jobs, housing, cars and auctions.
Good practice Websites are also used effectively by organisations providing online training, such as
www.monster.com, www. SmartForce.com.au, www.netg.com.au, www.cbts.com.au,
www.selfcert.com and www.qantm.com.au.
Step 2: Use the power of the Web for marketing purposes
Whole texts are available on the topic of online marketing, such as Hanson, W. (2000), Principles of
Internet Marketing. Set out below are two strategies advocated by Hanson (2000), Phillips (1999) and
others:
•
Offer customisation and personalisation. Massive online education websites that offer everyone the
same courses are less appealing to users than websites that offer the individual the option of having a
course or set of courses customised to suit his or her needs and tastes. Personalisation is often
achieved by offering users of a web-based service their own web page. By creating the sense that a
set of web-based services can be personalised, the RTO will establish a relationship with the individual
that could be long-term. Repeat business is a key to business growth.
•
Assist users to get started and offer free tuition. Increasingly, companies are seeing the benefits of
teaching customers how to use websites, sometimes offering incentives such as access to free
courses. Your RTO could offer users of its website tips on how to use the site most effectively and
how to access free ‘taster’ courses.
Good practice Western Australia’s WestOne
http://www.westone.wa.gov.au/intotheinternet/ is an
exponent of offering free ‘taster’ courses online. Its ‘Into the Internet’ range of free online tutorials help
people get what they want out of the Internet. Similarly, Victoria’s Virtual Campus
http://www.tafevc.com.au/samplecourse.html offers a number of free online courses, such as Life
Online, Psychology and Australian Sport, to provide an insight into the effectiveness of online learning.
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Marketing Tools and Models for VET Online
Step 3: Build traffic and brand name
Having encouraged your students to start using your website, you could aim to greatly increase the value
of the website to your RTO. Aim to achieve the following:
•
Build the traffic to your RTO’s website. You can do this firstly by making sure the site is easy to find
and by publicising your website at every opportunity. You might consider paying for advertisements in
different contexts (e.g. on every staff members’ business card; on sides of buses or trams; on movie
theatre on-screen advertisements; or by placing links to your site on the websites of alliance partners).
•
Build your RTO’s web brand name. Identify the unique, differentiating features of your RTO that you
think the website could enhance, then design the website to fit. For example, your RTO’s
differentiating features might be that it is small, focuses on the one industry and has a proud history in
the local area. The website could take up one-two of these differentiators and reinforce them. For
instance, the web site could prove, through the choice of material available on the site, it knows a lot
about and is committed to one particular industry.
Good practice Many organizations have distributed online newsletters, in effect providing libraries of content.
The trend now is to send the reader back to the author’s website, enabling the author to progressively build
up the website. See, for example, EdNA News & Views Email Alert http://www.edna.edu.au/
Customising this tool
You can customise this three-step tool to suit your RTO’s context, staff and markets. For each of the
three steps, ask yourself questions as below.
Table T5.2: Questions to assist customisation
Steps
Questions to help you customise the tool
•
Harness the forces driving
Web marketing
In what ways is your RTO taking advantage of changes to the
Web, such as the decreasing costs to consumers, the
convergence of technologies and the potential to create new
environments?
•
Use the power of the Web
for marketing purposes
How can your RTO provide customised and personalised
services via the Web?
How can your RTO help users become more proficient users
of the Web?
•
Build traffic and brand name
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How can your RTO increase the traffic to its website and
enhance its web brand name?
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Marketing Tools and Models for VET Online
Sample resources on the topic
Sample resources on the topic are set out below.
Table T5.3: Resources related to online marketing and promotion
Resource Type
Key resources
Generic resource
Hanson, W. (2000), Principles of Internet Marketing, South-Western
College Publishing
VET resources
Phillips, M. (1999), Successful Internet Marketing: A Guide for TAFE
Providers, OTFE, Melbourne
http://www.otfe.vic.gov.au/learningtechnologies/marketing/stage5.htm
Phillips, M. (1999) Successful Internet Marketing: Project Report,
OTFE, Melbourne
http://www.otfe.vic.gov.au/learningtechnologies/marketing/stage4.htm
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Marketing Tools and Models for VET Online
Tool No. 6. Implementation steps for Customer Relationship
Management
Purpose of the tool
This tool will help you to acquire, service and retain customers for life.
Description of the tool
This four-step tool enables you to identify the major steps required to undertake customer relationship
management (CRM). CRM is an integrated sales, marketing and service strategy that depends on
coordinated enterprise-wide actions, not just the actions of individual staff members.
The following table provides a quick overview of the tool.
Table T6.1: Introduction to Tool No.6: Customer Relationship Management
Aspect
Benefits of using the
tool
Why and when to
apply the tool
Explanation
The tool will ensure:
•
You undertake necessary preparation before you implement CRM
in your RTO
•
You use the technology to assist you to acquire, retain and delight
your customers, for life.
The tool will help RTOs that seek to be at the cutting edge of customer
service.
The tool is appropriate when your RTO is ready to embark on a
comprehensive approach to customer relationships.
Easy steps for using
the tool
Underpinning
concepts
flexiblelearning.net.au
The tool involves four steps:
•
Prepare your RTO before implementing the software
•
Acquire new customers
•
Enhance the profitability of existing customers
•
Retain profitable customers for life.
Some of the concepts underpinning this tool are:
•
CRM is a business strategy and an integration framework: the
technology is the enabler.
•
Implementing CRM requires a thorough analysis of current and
proposed work processes and staff roles.
•
CRM goes beyond delighting the customer on the one occasion: it
is about maintaining an effective and improving relationship over
time.
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Marketing Tools and Models for VET Online
Step 1: Prepare your RTO before implementing the software
Educational organisations are becoming increasingly interested in Customer Relationship Management
(CRM). If your RTO is not yet ready to embrace a comprehensive CRM strategy, including the installation
of software, you will still find the following discussion will assist your development of a market-orientation.
CRM software helps organisations manage customer relationships better by tracking customer
interactions of all types. The suite of CRM software products available on the market spans all the steps of
the selling and customer service cycle to help automate direct-mail marketing campaigns, telemarketing,
telesales, lead qualification, response management, lead tracking, opportunity management, quotes and
order configuration (Kalakota & Robinson, 2001, pp. 172–3).
A number of steps are required before the CRM technology can be installed and used:
•
Redesign staff roles so they are aligned with the new business focus on customers
•
Modify work processes to deliver the new customer services
•
Manage the cultural resistance to change and inspire staff with the benefits.
Each of these steps is very challenging.
Good practice The Securities Institute of Australia used a specialist in organisational re-engineering to
analyse work processes, to identify new roles and to prepare staff before CRM was introduced in the
organisation in 2001.
Step 2: Acquire new customers
The first phase in CRM is to acquire new customers. Your RTO can acquire new students, for instance, by
promoting your RTO’s services and its differentiating features such as its experience in the field or its
outstanding staff or the high levels of student satisfaction.
In the future, in an increasingly market-oriented, not supplier-driven VET, RTOs will survive and profit if they
can meet increasingly demanding customer expectations for customer service. The RTOs that offer most
value for the students will prevail.
Behind the scenes, your CRM software will provide a powerful database for not only capturing information
about each student such as name and address, but about their preferences for how and when they access
learning opportunities.
Step 3: Enhance the profitability of existing customers
Establishing and enhancing relationships with students as customers is the next phase of CRM. This can
be achieved by developing ways of communicating with the students, to find out their academic needs and
wishes, to address their concerns and to offer them alternatives and solutions.
Increasingly RTOs will establish multiple ways for students to maintain contact with the RTO, such as call
centres and help desks.
RTOs will also offer students the opportunities to undertake other courses, such as a course that is
complementary to the one already undertaken (‘cross-selling’) or a course that is similar but more
prestigious (‘up-selling’).
Behind the scenes, the CRM technology can assist the staff member taking a phone call or receiving an
email from a student, by suggesting different options for the student, in response to the current
communication.
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Marketing Tools and Models for VET Online
Step 4: Retain profitable customers for life
In the past, RTOs may have only looked at a student as likely to do one or two courses, and then the
relationship finishes. Those days are over. As VET becomes increasingly competitive, a key to RTOs’
survival and growth is to retain profitable customers. This means being willing to adapt and provide good
customers with new services and products, as the customers’ needs change, over their life.
CRM technology can assist the RTO to track the customer for life, by monitoring the contact with the RTO
initiated by the customer and vice versa. The technology can provide a record and an analysis of the
responses by the customer to any contact from the RTO. For instance, the RTO may offer all graduates
special discounts for certain courses and the CRM technology can record the responses to such special
offers.
Customising this tool
You can customise this four-step tool to suit your RTO’s context, staff and markets. For each of the four
steps, ask yourself questions as below.
Table T6.2: Questions to assist customisation
Steps
1.
Questions to help you customise the tool
Prepare your RTO
before implementing
the software
Is your RTO ready for the staffing and other organisational
implications of CRM?
2.
Acquire new
customers
What new standards of service can you offer students, to acquire
new enrolments?
3.
Enhance the
profitability of existing
customers
How can you provide additional services to your existing students,
to complement or extend their previous studies?
4.
Retain profitable
customers for life
How will your RTO adapt to providing ongoing, life-long services to
your existing students?
Does your RTO have the resources to implement CRM?
Sample resources on the topic
Sample resources on the topic are set out below.
Table T6.3: Resources related to Customer Relationship Management
Resource Type
Key resources
Generic resource
Kalakota, R. & Robinson, M. (2001), e-Business 2.0, Addison-Wesley,
Boston
VET resource
Mitchell, J.G, Latchem, C., Bates, A. & Smith, P. (2001), Critical
Issues in Flexible Learning for VET Managers, TAFE frontiers,
Melbourne (Section 3.7) http://www.tafefrontiers.com.au
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Marketing Tools and Models for VET Online
Tool No. 7. Alternative ways to form and sustain alliances
Purpose of the tool
This tool will help you to form and maintain alliances for co-marketing.
Description of the tool
This three-step tool enables you to clarify the benefits and limitations of alliances; to identify the ongoing
tasks required to make the alliance effective; and to consider different business models for alliances.
Alliances are defined as a close, collaborative relationship between two or more organisations to achieve
mutually compatible goals that would be difficult for each to accomplish alone (from Spekman & Isabella,
2000, p.37). Alliances can be called partnerships. In Australian law, a partnership is also a legally binding
collaboration between two parties. Consortia are groups of more than two organizations, either loosely
bound or legally bound together. For the purposes of this tool, the word alliance will be used in most
instances, for brevity.
The following table provides a quick overview of the tool.
Table T7.1: Introduction to Tool No.1: Data Collection
Aspect
Benefits of using the
tool
Explanation
The tool will ensure that your RTO
•
Understands the advantages and challenges of forming a
marketing alliance
•
Knows the steps an alliance relationship passes through
•
Selects an appropriate business model.
Why and when to
apply the tool
The tool can be used to clarify the work involved in achieving an
effective alliance, when your RTO is considering or developing an
alliance for marketing purposes.
Easy steps for using
the tool
The tool involves three steps:
Underpinning
concepts
flexiblelearning.net.au
•
Clarify the benefits and pitfalls of alliances, partnerships and
consortia
•
Build, establish and refine your arrangement
•
Select the appropriate business model for your alliance.
Some of the concepts underpinning this tool are:
•
Forming alliances is difficult, but maintaining them is more difficult
•
A multitude of business models is available for alliances.
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Marketing Tools and Models for VET Online
Step 1. Clarify the benefits and pitfalls of alliances, partnerships and consortia
A collaborative approach to alliances has apparent advantages:
•
An alliance combines areas of excellence
•
An alliance pools its existing small markets
•
An alliance provides competitive advantage not available to solo enterprises
•
An alliance can broaden the market opportunities and reduce financial risk.
On the other hand, the pitfalls include:
•
members only partially committing to the concept or losing interest over time
•
members viewing the alliance as a poor second to their individual marketing efforts
•
members being unwilling to develop rigorous business and marketing plans
•
members being reluctant to commit appropriate resources to the alliance. (Mitchell, 2000b)
To succeed, it is clear that an alliance needs to be based not just on extensive planning and suitable
resourcing; it also needs to be supported and managed well, on an ongoing basis.
Good practice In July 2001 it was announced that the ‘RMIT consortium’ of RMIT University, RMIT
International, the Global University Alliance and NextEd was awarded the tender to develop a public-sector
corporate university online, to deliver business education and training. Initially it will service Austrade’s
1,000 staff worldwide.
Step 2: Build, establish and refine your alliance arrangement
Alliances take time to develop. Spekman & Isabella (2000, p.78) suggest that every alliance needs to pass
through the following stages of a journey:
•
Anticipation: clarifying strategy and sensing possibilities
•
Engagement: agreeing to collaborate and determining scope of alliance
•
Valuation: valuing assets/contributions and negotiating terms
•
Coordination: creating structures/interfaces and getting to work
•
Investment: making hard choices and committing to the future
•
Stabilisation: achieving balance and ongoing recalibration.
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Marketing Tools and Models for VET Online
Step 3: Select the appropriate business model for your alliance
There are many different business models available for alliances, partnerships and consortia. The following
table lists just five consortia models.
Table T7.2: Contemporary business models for consortia (from Mitchell, 2000b)
Business Model
Brief description
Example
1.
Syndication
Syndication is an emerging business model for
the Internet. Syndication involves the sale of the
same good to many customers, who then
integrate it with other offerings and redistribute it.
For example, cartoonists syndicate comic strips
to many newspapers; production studies
syndicate films to distributors. Syndication suits
information products. (K. Werbach, 2000, pp.8593)
Screaming Media is a
leading content
syndicator. It collects
articles in electronic
form from 400
originators and, using
filtering software and
human editors, and
delivers the articles to
targeted audiences.
2.
Co-option
alliances
Co-option involves an alliance between rival firms.
The alliance provides the coalition with a
competitive advantage and allows members to
gain strength. (Doz and Hamel, 1998, pp. 56,59)
Universitas 21 includes
18 universities, many of
whom are rivals.
3.
Cospecialisation
alliances
Co-specialisation alliances create value by
bringing together skills and owner-specific
resources. Each partner makes a unique
contribution to the alliance. (Doz and Hamel,
1998, p.61)
ComTech (now
Dimension Data),
Deakin University and
Microsoft recently
combined to provide a
new style of IT
undergraduate training.
4.
Opportunity
networks
An opportunity network is a ‘marketing exchange
company’: a set of firms organised around a
company that serves as a marketing arm,
brokerage and clearinghouse and regulates
network behaviours. (Achrol, 1997, p.168)
NextEd is providing the
role of integrator for the
Global University
Alliance.
5.
Vertical
market
networks
Traditionally, vertical market networks involved a
channel of suppliers and distributors organised
vertically around the classic manufacturing firm.
Increasingly, at the heart of the vertical network is
a focal organisation, the integrator. Often the
integrator is a marketing company. (Achrol, 1997,
p.166)
Nike is very experienced
at organizing a network
of suppliers and
distributors.
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Marketing Tools and Models for VET Online
Customising this tool
You can customise this three-step tool to suit your RTO’s context, staff and markets. For each of the
three steps, ask yourself questions as below.
Table T7.3: Questions to assist customisation
Steps
Questions to help you customise the tool
6.
Clarify the benefits and
pitfalls of alliances,
partnerships and
consortia
Do the benefits of establishing alliances outweigh the
disadvantages, for your RTO?
7.
Build, establish and refine
your arrangement
Where has your RTO reached on this six-stage journey
towards achieving a stable alliance?
8.
Select the appropriate
business model for your
alliance
Which business model might suit your RTO and its possible
partners?
Sample resources on the topic
Sample resources on the topic are set out below.
Table T7.4: Resources related to Alliances
Resource Type
Key resources
Generic resource
Spekman, R.E. & Isabella, L.AA., (2000), Maximising the Value of
Partnerships, John Wiley & Sons , Inc., New York
VET resources
Mitchell, J. G. (2000b) Business Models for Marketing e-VET, A report
on business models for the international marketing of Australian VET
online products and services.
<http://flexiblelearning.net.au/evetmarketing/docs/busmods.PDF>
Mitchell, J.G. (2000c), Market Driven e-VET, A feasibility study for a
national VET consortium to market, distribute and support online
products and services overseas, EVAG,
http://flexiblelearning.net.au/evetmarketing/docs/feastud.PDF
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Marketing Tools and Models for VET Online
Tool No. 8. Strategies for developing products
Purpose of the tool
This tool will help you to develop new, improved or refined products.
Description of the tool
This four-step tool enables you to identify strategies for product development and for the provision of faster
service, self-service and personalisation.
For this tool, products are defined in the broadest sense, as encompassing ‘tangible goods, services,
places, persons and ideas’. (Stanton et al, 1995, p.183) For the purposes of this resource, product
development includes development of both products (e.g. online courses and learning management
systems) and services (e.g. provision of online support and advice).
The following table provides a quick overview of the tool.
Table T8.1: Introduction to Tool No.8: Product Development
Aspect
Benefits of using the
tool
Explanation
The tool will ensure that
•
You clarify whether your product development involves new
products, or extensions to your current line, or improved or refined
products
•
Consider the benefits of faster service, self-service and
personalisation.
Why and when to
apply the tool
The tool can be used to review current product development strategies.
Easy steps for using
the tool
The tool involves four steps:
Underpinning
concepts
flexiblelearning.net.au
The tool is best used when your RTO is deciding how to respond to
new market opportunities.
•
Developing product development strategies
•
Provide faster service
•
Enable self-service
•
Cater for personalisation.
Some of the concepts underpinning this tool are:
•
Product development is necessary to meet the fluctuating
demands of the market.
•
Customers who use the web will increasingly expect services to be
faster and personalised and catering for self-service.
39
Marketing Tools and Models for VET Online
Step No.1. Develop product development strategies
Some typical product development strategies include:
1.
Developing new products for the market your RTO currently serves. For instance, your RTO may be
delivering online courses, at the moment, on occupational health and safety. This same market may
be receptive to online courses for other topics related to compliance, such as privacy legislation.
Good practice The Hotel School at Regency Institute of TAFE in South Australia began developing online
courses for its students in the mid-late 1990s, but then took the opportunity to provide a whole degree
online for its international students.
2.
Extending your current product line. For example, you may be able to develop new products for your
existing market in online IT training, by developing training courses for newly released IT software.
3.
Improving your current products. For instance, your current online courses may offer only limited
access to tutors online. You could improve your current product by providing users with access to
tutors via bulletin boards.
4.
Making style changes to current products. You can freshen up your existing online products with new
branding, new appearances and new features.
Step No.2. Provide faster service
Customers are becoming more demanding about the speed of service delivery. In the era of
correspondence training, it was acceptable for a tutor to take weeks, sometimes months, to return essays
and days to respond to telephone enquiries. In the online learning environment with email and bulletin
boards, a seven-day delay before a tutor responds to a student is unacceptable. Staff roles and work
processes may need to be modified to provide quicker response times.
Review your own organisation’s response times for student enquiries. Compare your findings with your
knowledge of other educational organisations’ response patterns.
Step No.3. Enable self-service
Students are getting used to self-service in many other aspects of their lives: e.g. online banking, online
shopping, online bill payment. Some innovative e-learning businesses are starting to use online retail
strategies for their websites, such as ‘shopping carts’ for ordering.
Web-based self-service in some industries has reduced the role of the ‘middleman’, such as travel agents,
car salesmen and real estate agents. Some innovative operators have responded by offering new, value
added services. In the field of online learning, the same pattern is emerging: some innovative operators are
offering new and attractive services to capture the market.
Consider how your organisation can offer more self-service for students.
Step No.4. Cater for personalisation
Two web-based developments are spurring the trend to personalisation: the ability to display a vast array of
stock on a website, without having to store huge numbers of stock; and the ability of websites to capture
customer information such as their addresses and purchasing habits and preferences.
Personalisation includes sending email alerts to a customer on chosen topics or tailoring web front-ends
to suit the individual.
RTOs may expect students to keep coming to their bricks and mortar establishments to access services,
but students may start to request not just web access to services but customised web access. To establish
competitive advantage, some RTOs may start to provide personalised, web-based services.
A number of Australian universities offer personalised web access. Consider how your RTO could do the same.
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Marketing Tools and Models for VET Online
Customising this tool
You can customise this four-step tool to suit your RTO’s context, staff and markets. For each of the four
steps, ask yourself questions as below.
Table T8.2: Questions to assist customisation
Steps
Questions to help you customise the tool
1.
Product development
strategies
How feasible is it for your RTO to develop new, improved or
refurbished products?
2.
Provide faster
service
What are the obstacles that your RTO needs to overcome to deliver
online products and services more quickly?
3.
Enable self-service
What needs to be done for your RTO to offer students more selfservice, online?
4.
Cater for
personalisation
How can your RTO cater for personalisation for online students?
Sample resources on the topic
Sample resources on the topic are set out below.
Table T8.3: Resources related to product development
Resource Type
Key resources
Generic resource
Kalakota, R. & Robinson, M. (2001), e-Business 2.0, Addison-Wesley,
Boston
VET resources
Mitchell, J.G, Latchem, C., Bates, A. & Smith, P. (2001), Critical
Issues in Flexible learning for VET Managers, TAFE frontiers,
Melbourne (see Section 3.1 in particular)
http://www.tafefrontiers.com.au
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Marketing Tools and Models for VET Online
Tool No. 9. Guidelines for pricing products
Purpose of the tool
This tool will help you to price your products and services to suit both your RTO’s objectives and the
market.
Description of the tool
This three-step tool enables you to understand factors affecting pricing and to develop pricing approaches
that suit your RTO.
The following table provides a quick overview of the tool.
Table T9.1: Introduction to Tool No.9: Product Pricing
Aspect
Benefits of using the
tool
Explanation
The tool will ensure that you will
•
Clarify the factors affecting pricing
•
Determine the objectives of the pricing
•
Select the most appropriate pricing strategy.
Why and when to
apply the tool
The tool can be used to set prices that meet all your RTO’s objectives.
Easy steps for using
the tool
The tool involves three steps:
Underpinning
concepts
The tool is best used when a new product needs to be priced, or a
price is required for a niche market.
•
Identify the factors affecting pricing
•
Clarify the objectives of the pricing
•
Select from optional pricing strategies.
Some of the concepts underpinning this tool are:
•
Pricing is affected by multiple factors.
•
Pricing can be directed by chosen objectives
•
Optional pricing strategies are available.
Step 1: Identify the factors affecting pricing
Decide how each of the following factors influence pricing of your RTO’s online products and services:
•
Your RTO’s corporate objectives
•
Any systemic constraints on your RTO’s setting of prices
•
The position of your RTO in the market
•
The nature and extent of competition in the market
•
Demand for online products and services
•
Costs for each course to be developed.
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Marketing Tools and Models for VET Online
Good practice NetOnline is a flexible learning network in Victoria, involving cooperatives of education
providers working together to provide TAFE and ACE programs that are accessible via the Internet.
NetOnline provides a range of online services at reasonable prices that reflect the community-building
objective of the network. For instance, online networks can be set up for companies for $150 per person
per year, providing facilities such as email, group conferencing and uploading files; but the charges for
associations and community groups is $50 per person per year. See
httP://online.nmit.vic.edu.au/fln/concept/htm
Step 2: Clarify the objectives of the pricing
Decide on the objectives your RTO wishes to achieve by the pricing. The objectives may come from the
following list:
•
Optimisation of profit
•
Maximum sales
•
Acquiring prestige
•
Accessibility and affordability
•
Surviving in the market till it takes off
•
Gaining a return on investment (RO1).
Step 3: Select from optional pricing strategies
A number of optional pricing strategies can be used to market your online products and services,
including:
•
Relationship pricing, where prices are set based on an estimation of future potential profit streams over
the lifetime of the customers.
•
Cost-plus pricing, where a percentage mark-up is required
•
Loss-leading pricing, where a low price is set in order to establish a position in the market
•
Rate-of-return pricing, where prices are set to achieve a given rate of return on investment.
To determine which strategy best suits your RTO may take some analysis of your market.
Customising this tool
You can customise this three-step tool to suit your RTO’s context, staff and markets. For each of the
three steps, ask yourself questions as below.
Table T9.2: Questions to assist customisation
Steps
Questions to help you customise the tool
1.
Identify the factors
affecting pricing
Which factors most affect your RTO’s pricing of online
products and services?
2.
Clarify the objectives of
the pricing
What are the major objectives that affect the pricing of online
products and services in your organisation.
3.
Select from optional
pricing strategies
Which pricing strategy suits your RTO’s markets?
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Marketing Tools and Models for VET Online
Sample resources on the topic
A sample resource on the topic is set out below.
Table T9.3: Resource related to pricing
Resource Type
Generic resource
flexiblelearning.net.au
Key resources
McDonald, M. & Payne, A. (1996), Marketing Planning for Services,
Butterworth Heinemann, Oxford
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Marketing Tools and Models for VET Online
Bibliography
Australian National Training Authority, National Marketing Strategy, www.anta.gov.au
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