The Potential Market Segments for the University

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Table of Contents

Current Tendencies and State of the Market
Business and Management Community
Working Class
International Audience
Conclusion
References

The crisis that emerged in the fallout of the COVID-19 novel coronavirus pandemic has affected multiples spheres of human activity worldwide. Higher education institutions faced significant challenges due to new restrictions imposed on learning, resulting in financial losses. The necessity of remote education has disrupted regular processes within universities, but it also promoted the rapid development and implementation of online learning opportunities. Therefore, it may be possible to utilize the present situation for the universities’ benefit and use new instruments to attract other segments of the market than the traditional one. The purpose of this paper is to explore marketing opportunities for ABC University in the UAE in terms of potential expansion and growth, as well as to provide practical marketing recommendations.

Current Tendencies and State of the Market

The coronavirus pandemic broke out at the beginning of the year 2020 and imposed new restrictions on global processes. Blankenberger and Williams (2020) state that higher education is one of the areas of society that has been deeply rocked by the COVID-19 situation. The research shows that universities faced significant budget cuts globally, and the pandemic aggravated this tendency (Blankenberger & Williams, 2020). Furthermore, Blankenberger and Williams (2020) say that several universities reported expected losses due to the increased financial support need for students, as well as the lack of housing and tuition revenues. Additionally, universities reconsider their enrollment expansion and investment opportunities, as their priorities have shifted from increasing profits to minimizing losses (Blankenberger & Williams, 2020). This tendency can be considered global, as no corners of the world remained untouched by the pandemic, including the ABC University (ABCU).

On the other hand, while most universities, as well as other organizations, presently focus on surviving the crisis, it may be wise to remain proactive amid the described situation. Therefore, instead of forming a protective shell to reduce the losses, it is possible to focus on gaining profits. As mentioned above, the traditional sources of revenues for universities are now less profitable, as the crisis had a particularly strong impact on young people and students. Accordingly, it seems to be the optimal choice to encompass other market segments and stimulate growth and development in this direction. This method is possible through an accurate utilization of new educational techniques that have emerged through online learning opportunities as a response to the Covid-19 challenges. While young university-age students become less capable of maintaining the required income level, there are other groups, which may have been less influenced by the Covid-19 crisis. An in-depth analysis of such potential target segments is required to estimate their growth potential based on the demographics, geography, and other characteristics.

Business and Management Community

First of all, it is possible to launch a campaign that would attract business society representatives looking to receive additional training. It would consist of offering short-term training programs for people aiming at enhancing their existing competencies and acquiring new ones. It is likely that there are such individuals in the business and management society. In general, this market group will comprise middle-aged people with income at the level of the middle class and higher. These individuals tend to not have any significant restrictions in terms of geography and think globally. At the same time, appeasing such an audience would not be an easy task, as these people usually have considerable achievements and extensive experience. In other words, business and management society representatives are quite demanding due to their vast financial capabilities and expertise. Therefore, the ABCU must devise an effective program that would attract such people.

On the other hand, the size of this market segment is not very large, which poses additional challenges for the university. Additionally, this audience devotes increased attention to the perceived risk analysis prior to making the final decision. Kotler and Keller (2015) distinguish six aspects of perceived risk, and it is important to focus on compensating them through the quality of proposed programs. Therefore, eliminating functional risks should the primary objective of the campaign. The financial aspect also plays a crucial role in this case, as, despite their considerable wealth, representatives of the market group in question value the money they spend on different products. Accordingly, attracting this segment may be demanding in terms of efforts and resources spent by the ABCU to offer a quality product that would outperform the potential competition.

Additionally, time risks remain important, which is why the program should be efficient and not time-consuming. Online education opportunities allow learners to continue the process from any part of the world while optimizing the time they spend on the process. Moreover, social risks are also eliminated, as the online format facilitates private learning and helps to protect people’s confidentiality if they want so. Overall, the campaign to attract this market should utilize the qualitative approach, as its purpose is to attract a market segment that is not large but shows great financial prospects.

Working Class

In fact, working-class people may also become a market segment of intense interest in the ABCU. Unlike the previous category, this group comprises people of various demographics and origins. As a rule, they were not able to obtain a higher education degree, which would provide them with better job opportunities. This segment also includes immigrants from other countries looking to receive a quality education in the UAE. Evidently, this group demonstrates modest financial opportunities when compared to the business and management community. However, it is possible to expect that such individuals will be more lenient in terms of program quality and organization demand. Accordingly, the perceived risks described will not be as significant in this case, but there is one aspect that must be taken into account. In spite of the global promotion of life-long learning, adult working-class individuals may be reluctant to return to the university because they might consider it embarrassing. Online learning eliminates this barrier, as students do not have to be present at their educational establishment. Therefore, it will eliminate the perceived embarrassment and allow learners to continue the process in a comfortable environment.

Overall, this market segment may be promising for the ABCU, but the university management must consider a significant level of potential competition. Indeed, the concept of life-long learning is promoted worldwide, and multiple universities encourage adult learners to resume their studies. Nevertheless, this segment is vast, which contributes to its potential in the context of ABCU. This potential can be utilized effectively if the university ensures competitive advantage. It may consist of various aspects, including a lenient pricing policy and attractive learning programs for adults. Unlike the first proposed segment, this group should be targeted with a quantitative approach that would encompass massive portions and ensure a constant flow of students.

International Audience

Finally, the Covid-19 brought along a particular situation in the context of globalization. While international travel has been paralyzed due to the pandemic-related restrictions, global communication via the Internet has reached outstanding levels. As the focus of the learning process shifts toward the online environment, it is possible to extend the range of potential markets worldwide. Tesar (2020) states that student mobility was seen as the ultimate manifestation of the globalization benefits prior to the Covid-19 era and provided substantial revenues for universities. Indeed, the concept of international learning has been significantly changed by the pandemic, but, simultaneously, other growth opportunities emerge in this sphere. As of now, online learning is perceived as a desperate measure aiming at reducing the impact of Covid-19. However, it is possible to implement unique Internet-based educational programs that would attract international students who otherwise would not be able to enroll in a particular university.

This approach may primarily target students from emerging economies who show interest in quality education in the UAE. Most of these students face significant financial barriers when considering studies abroad, but online learning popularized during the pandemic eradicates this obstacle. This market segment demonstrates immense growth opportunities for the ABCU as it encompasses the whole world. Nevertheless, the focus should be on young university-age individuals from the Middle East and Asia, as it would already comprise about two-thirds of the global population. However, the competition will also reach a global level, which requires a specific approach to marketing. The university would need to allocate additional resources to international marketing campaigns, while the creation of suitable education programs would not demand substantial expenditures.

Conclusion

In conclusion, the global COVID-19 novel coronavirus pandemic has imposed an array of challenges on the higher education market, but there ways of utilizing the new reality to the universities’ advantage. While the usual market is experiencing troubles, it is possible to extend the ABCU’s area of interest in order to encompass new segments. The business and management community, working-class, and international students demonstrate promising potential for the university, but each group should be targeted with a particular approach. Overall, an in-depth analysis of each segment is required prior to launching a campaign in order to ensure maximum results.

References

Blankenberger, B., & Williams, A. M. (2014). COVID and the impact on higher education: The essential role of integrity and accountability. Administrative Theory & Praxis, 42(3), 404–423.

Kotler, P., & Keller, K. L. (2015). Marketing Management + MyMarketingLab. 15^th edition. Pearson.

Tesar, M. (2020). Towards a post-Covid-19 ‘new normality?’: Physical and social distancing, the move to online and higher education.Policy Futures in Education, 18(5), 556–559. Web.

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