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Marketing Strategies
Debra Garza
AET 552
March 14, 2016
Mrs. Devin Andrews
MARKETING STRATEGIES
2
Marketing Strategies
Introduction
The purpose of this paper is to compare three institutions known for their accessibility
and popularity with nontraditional adult learners. The three schools investigated are the
University of Phoenix, Colorado Technical University both for-profit institutions, and Southern
New Hampshire University a nonprofit institution. The marketing strategies examined are
their use of market segmentation, market differentiation, and market positioning. Lastly, the
value proposition for each school will be identified as will the schools ability to meet their
customers expectations.
Marketing Strategies Comparison
The institutions chosen are University of Phoenix (UoP), Colorado Technical University
(CTU) and Southern New Hampshire University (SNHU) because all three have run aggressive
ad campaigns to recruit the working adult. The messages that each institution convey are
attractive each and seem to offer a unique product that consumers need and want, specifically,
quality education, a flexible schedule, and career advancement.
Each institutions marketing strategy draws from research that says that this segment is an
underserved population in learning institutions. Marcus (2016) citing Bennett, a Professor of
Economics, claims (adult education) is a market that is typically ignored by the rest of higher
education people are working, have families and need professional development or career
education (para. 6). In turn, the institutions are offering solutions that draw the consumer in and
appeal to the easy of entry into the programs, the achievable challenges they will face, and the
flexibility of getting an education while continuing to work, taking care of busy lives and
families. However, with the bad press that for-profit institutions are getting, some, like UoP and
CTU are devising new strategies to rebuild public confidence by providing more student support
MARKETING STRATEGIES
services and being a little more selective in the admissions process (Marcus, 2016, para. 12).
SNHU relies on its reputation of 80+ years in education as well as creative ads to recruit
consumers.
Effects of Segmentation, Differentiation, and Positioning
When developing a marketing strategy, some key elements to keep in mind are
identifying the target market, deciding what makes the service or product unique, as well as
consumer perception.
Segmentation
According to Shrimp & Andrews (2013), market segmentation is the act of dividing a
market into distinct groups of customers who might require separate products and services and
marketing mixes (p. 117). In other words, consumers who have common needs, behaviors, or
demographics are targeted who may find value in the product or service offered.
When reviewing the websites of the three institutions selected to examine, it is clear that
segmentation plays a definite role in the marketing strategy. Today, about 38% of the population
of students in colleges and universities is made up of non-traditional students. According to
National Center for Education Statistics (n.d.), non-traditional students are made up of:
MARKETING STRATEGIES
and CTU. As a non-profit institution that has, long, marketed to traditional students, SNHU has
joined the masses of online colleges and universities that are recognizing that non-traditional
students need quality education that is flexible and accessible education, and relevant to career
goals.
All three universities target individuals concerned with obtaining education for the
purpose of either starting a career, advancing a career, or pursue a lifelong dream of an advanced
degree.
Southern New Hampshire University: Online experience (2016) describes their program
as being Affordable, Accessible, and Achievable. They tout their program as among the lowest
in the nation, 24/7 access to their online classroom and generous transfer policies and multiple
terms starts per year that allows learners to earn their degree faster. These claims make it clear
that SNHU has segmented the market according to common needs of the individuals within the
non-traditional student group.
The University of Phoenixs segmentation of the market also found on their website and
in the new campaign, is aimed at shifting the public's perception of online education for adults.
University of Phoenix provides access to higher education opportunities that enable students to
develop knowledge and skills necessary to achieve their professional goals, improve the
performance of their organizations and provide leadership and service to their communities
(University of Phoenix: Mission and Purpose, 2016). The new campaign, We Rise, is aimed at
highlighting the pride of current university students who are typically working adults with
families (Madov, 2016, para. 2). According to Madov (2016), the We Rise campaign came
from the sheer determination (administration) saw in the student body and alumni. The
MARKETING STRATEGIES
Campaign is meant to convey to the world and prospective employers that, (students of UoP)
are determined, smart, passionate people who should not be overlooked (para. 10).
Colorado Technical University: Mission and Vision (2016), goes a step further in
segmenting in that it includes educating career-focused adults in homes coast to coast and
continent to continent. Included in their marketing strategy:
longevity 50years of educating students within Colorado, the military, across the U.S.
and overseas
a commitment to the military founded by two military men who wanted to help U.S
Veterans transition back to civilian life and move easily through education
a commitment to Colorado the state in which the school was founded
a commitment to innovation and online education providing effective, industry-leading
online and virtual learning options
With an 89% population of students over the age of 25 and more than 35% of its population
military veterans, it is quite obvious that CTU targets non-traditional students for its programs.
Differentiation
A differentiated marketing strategy is when a company creates campaigns that appeal to at least
two market segments or target groups (Newton, n.d., para. 2). Both UoP and CTU use
differentiated marketing strategies in targeting military veterans typically seen as nontraditional students. Founded by military veterans, CTU has a strong commitment to helping
military veterans access education. Additionally, CTUs strategy targets technology and
innovative programming. At UoP, tuition rates for military affiliated students are eligible for the
military tuition rate at UoP, which is lower than the standard rate and can be used for both lowerand upper-division credits. The rate applies to active-duty service members and family members
of active duty and selected reserve (University of Phoenix: Military tuition rates, 2016). Aside
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from the small target group of adults that SNHU markets to, there is no differentiation that they
use in their marketing strategy.
Positioning
Shrimp & Andrews (2013) define positioning as a short statement that represents the
message that the institution wants to imprint in the customers mind (p. 139). Research does not
show that any of the institutions examined so far have tried to position themselves over the other.
Each of the schools has their unique advertising campaign. CTU positions itself to be the school
that is not the traditional route that is the new direction of online education (Colorado
Technical University, 2011). UoPs new campaign positions itself as an institution of students
that are proud of the hard work and dedication in going back to school and sticking with it in
their We Rise campaign that asks, Is the world ready for us? (University of Phoenix, 2016).
All three schools make a concerted effort to position their programs as to gain an advantage over
their competitors. SNHUs campaign positions itself to show that it makes education affordable
and accessible to those who want it. The commercial they have shows a myriad of adults saying
that they deserve the chance to transform our lives and of those around us, and for over 80
years they have only one focus: to support busy adult learners (Benedikt, 2014).
While each advertisement is different the best example of positioning is that of UoP
because it has more of an emotional pull than any of the other advertisements.
Value Proposition
A value proposition is an institutions promise to its consumers of a unique and relevant
benefit and it is also the heart of an institutions marketing campaign (Investopedia, n. d.). The
following are examples of the value propositions for each institution:
Colorado Technical University Value Proposition
MARKETING STRATEGIES
1. CTUs personalized learning system allows you to control how, what and where you
learn (Colorado Technical University: About, 2016).
2. Provide industry-relevant higher education to a diverse student population through
innovative technology and experienced faculty, enabling the pursuit of personal and
professional goals (Colorado Technical University, 2016)
University of Phoenix Value Proposition
1. Offers certificates, test preparation and individual courses to give working
professionals the skills to stand out (University of Phoenix, 2016)
2. Career focused education that provides skills relevant in the job marketplace
(University of Phoenix: Career-focused Education, 2016)
3. Flexible learning with convenient start dates, on-campus evening classes and fiveweek courses allows customizable schedules that fit busy lives (University of
Phoenix: Career-focused Education, 2016)
Southern New Hampshire University Value Proposition
1. Relentlessly reinventing higher education and dedicated to helping students transform
their lives and the lives of those around them (Southern New Hampshire University:
About, 2016)
2. Provide affordable, accessible education over an innovative online platform or at
regional centers (Southern New Hampshire University: About, 2016)
Meeting Customer Expectations
Each of the schools examined have a value that is attractive to non-traditional students in each of
the segments represented. Between the three institutions, UoP has the largest population of
students which indicates that they have been successful in appealing to the target market of nontraditional students who want a quality education that is relevant to their career goals. CTU and
SNHU, as smaller institutions also have been able to maintain a base of non-traditional students
MARKETING STRATEGIES
that are interested in flexible, relevant course work. With a new marketing campaign, it remains
to be seen if UoP will be successful at keeping and instilling pride and confidence in its students.
Conclusion
Institutional success is bound to their marketing strategy. Careful selection of target
markets and differentiation of product and services is vital to that success. Innovative positioning
can influence the perceptions of the consumer and the general public and create a distinction
between product and services from that of competitors. The value proposition is the promise of
value that an organization makes to the customer. The three institutions examined are great
examples of how successful marketing strategies can bring in consumers and motivate them to
purchase products.
References
Colorado Technical University: About. (2016). Retrieved from
http://www.coloradotech.edu/about
Colorado Technical University. (2011, June 6). Are you In: CTU [Video file]. Retrieved from
https://www.youtube.com/watch?v=jq6AIFIeFk8
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MARKETING STRATEGIES
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University of Phoenix. (2016, March 11). We Rise: University of Phoenix [Video file]. Retrieved
from https://youtu.be/n4jGUTN1PLg?
list=PLob1O8IDG1UBGTMdVv3U6F9PAJeASelgi
University of Phoenix: Career-focused Education. (2016). Retrieved from
http://www.phoenix.edu/career-services/career-focused-education.html
University of Phoenix: Military Tuition Rates. (2016). Retrieved from
http://www.phoenix.edu/colleges_divisions/military/tuition.html
University of Phoenix: Mission and Purpose. (2016). Retrieved from
http://www.phoenix.edu/about_us/about_university_of_phoenix/mission_and_purpose.ht
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