The basic junction where a Student becomes an Executive is through the Management Education Institutions (MEI) which is serving these aspirants with management education and skills. The institutions view towards this management profession aspirants with traditional outlook and uses traditional management tools in building up the managerial skills. They need to be updated as per the needs of the industry and it is high time for these institutions to go for a turnaround strategy in administering their training programmes to these potential professionals. They need to face the global and domestic industry challenges. Wide gaps exist between institution offerings and industry’s expectations and also between student hopes /expectations and the institution’s offerings/ performance of management education services.

Quite a few management institutions which are somewhat able to sustain in the present market condition are relatively better than their competitors in the market but not absolutely better. This fact can be witnessed not through the academic results obtained by the candidates of the concerned institution (which might be fair or better) but through the situation where the candidates fail to get themselves placed in the right positions in the industry or where they compromise with the jobs which do not befit their expectations. Often it can be observed that even though they are well convinced about their academic progress/ results, but they lack confidence in themselves about the quality of skills which they have obtained through the institution. Barring few institutions, (reputed management institutions and B- schools) in general the performance of the traditional management education institutions (TMEI) are more or less similar with a marginal degree of noticeable change among them. The gauge of academic results is the one which placates TMEI to continue and survive in their business. This placating factor, the existing competition and the cost involved for change, often force the TMEI not to incorporate any change.

METHODOLOGY AND SCOPE OF THE STUDY:

This Conceptual paper focuses on applying revised services marketing mix to management education sector specifically focusing on TMEI. It starts by briefly reviewing the present situation relating to the 7 mixes of services marketing administered by the TMEI. The paper further highlights the required change in the present situation by redrafting the versions of 7P’s to 7C’s. The article presents a revised view of Jerome McCarthy’s 4P’s of 1960’s (which was Product centric approach) into Robert Lauterborn’s 4C’s of 1990’s (which is a Consumer centric approach). From 4C’s of Lauterborn, additional 3C’s are adopted based on the 7C’s marketing mix concepts of Koichi Shimizu of 1981. Apart from reviewing the present situation it briefly explains how this reviewed marketing mix can be relevantly adopted by TMEI.

Past related Studies

While explaining the need for changes in higher education sector Maringe, (2006) opines that environmental changes such as privatization, diversification, decentralization, internationalization and increased competition in higher education are the changes which have an effect on how higher education institutions operate nowadays and they are seen as the driving forces for the marketization of higher education. [1]

Temple, P., Shattock, M. (2007) argues that marketing principles and marketing ideas can be applied to the higher education sector, but not in the same way as in the business sector. The differences in types of products/services offered, the scope of targeted markets and the organization of specific marketing activities that exist between the business and the higher education sectors make marketing concepts only partially applicable to the higher education sector.[2]

Meanings and Definitions:

1. Concise : The exact meaning of concise is “brief in form but comprehensive in scope ”.[3]

2. Customer: A customer (sometimes known as a client, buyer, or purchaser) is the recipient of a good, service, product, or idea, obtained from a seller, vendor, or supplier for a monetary or other valuable consideration.[4]

3. Intermediate customer or trade customer is a dealer that purchases goods for re-sale. [5]

4. Internal customer is a customer who is directly connected to an organization, and is usually (but not necessarily) internal to the organization.[6]

5. Cost: (Original meaning of Latin: Constare= It means sacrifices) Something of value, usually an amount of money, given up in exchange for something else, usually goods or services. All expenses are costs, but not all costs are expenses. (An expense is the cost of resources used to produce revenue.) [7]

6. Contract: It is an agreement having a lawful object entered into voluntarily by two or more parties, each of whom intends to create one or more legal obligations between them. The elements of a contract are "offer" and "acceptance" by "competent persons" having legal capacity who exchanges "consideration" to create "mutuality of obligation."[8]

7. Communication (from Latin commūnicāre, meaning "to share")

1. It is the activity of conveying information through the exchange of thoughts, messages, or information, as by speech, visuals, signals, writing, or behavior. It is the meaningful exchange of information between two or more living creatures. [9]

2. One definition of communication is “any act by which one person gives to or receives from person information about that person's needs, desires, perceptions, knowledge, or affective states. Communication may be intentional or unintentional, may involve conventional or unconventional signals, may take linguistic or non-linguistic forms, and may occur through spoken or other modes.” [9]

8. Certainty:

1. Definite; fixed

2. Sure to come or happen

3. Established beyond doubt or question

4. Capable of being relied on; dependable:

5. Having or showing confidence; assured. [9]

9. Channel

1. Channel - The path through which goods and services travel from the vendor to the consumer.[10]

2. A distribution channel can be as short as a direct transaction from the vendor to the consumer, or may include several interconnected intermediaries along the way such as wholesalers, distributors, agents and retailers.[11]

10. Convenience- The quality of being suitable to one's comfort, purposes, or needs. [12]

11. Career: Career is used to describe an occupation or a profession that usually involves special training or formal education, and is considered to be a person’s lifework. In this case "a career" is seen as a sequence of related jobs usually pursued within a single industry or sector e.g. "a career in law" or "a career in the building trade".[13]

12. Craftsman: A professional whose work is consistently of high quality. [14]

13. Comprehension

1. The act or capacity of understanding

2. The state of including or comprising something; comprehensiveness [15]

a. The act or fact of grasping the meaning, nature, or importance of; understanding. [16]

b. The knowledge that is acquired in this way. [16]

14. Culture:

Development or improvement of the mind by education or training.

The total range of activities and ideas of a group of people with shared traditions, which are transmitted and reinforced by members of the group- [17]

15. Credibility:

1. The quality, capability, or power to elicit belief.

2. A capacity for belief. [18]

16. Consideration:

1. Fact or circumstance to be taken into account when making a judgment or decision.

2. Payment for a service; recompense; fee

3. Estimation; esteem [19]

A Paradigm shift from Product centric to Consumer Centric.- Modifications of 7 P’s to 7C’s

The marketer E. Jerome McCarthy proposed a four Ps classification in 1960, which has since been used by marketers throughout the world. [20] Robert F. Lauterborn proposed a four Cs classification in 1990 which is a more consumer-oriented version of the four Ps. [21] Lauterborn, views the Mix of Product as Consumer, Price as Cost, Promotion as Communication and Place as Convenience. Further Koichi Shimizu proposed a four Cs classification in 1973, this was expanded to the Seven Cs Compass Model to provide a more complete picture of the nature of marketing in 1981.According to Koichi, Product as Commodity, Price as Cost, Promotion as Communication, Place as channel. Further 3 P’s are added by him as Corporation, Consumer and Circumstances. [22] Keeping in view the above versions the paper attempts to bring in modifications in MES market which can result in a paradigm shift from traditional perspective of Service Institution Centric towards the Customer Centric perspective. The service provider needs to look at the market from Customer view point rather than the Institution’s view point. More than thinking towards what the institution can offer it will be more relevant and rewarding if they try to start thinking about the expectations of the Concise Customer and tailor their education services mix . Keeping this as a base, the traditional 7P’s of services are modified as follows:

1. Product – As Customers (Internal and Intermediate) : As a Concise Customer

TMEI’s serving the students enrolling to management educational institutions (MEI) hitherto, has been viewed as pupil or as consumer who aspire to obtain a management degree. The present global challenges had made the Industry inevitable to seek management professionals rather than merely seeking for management graduates. Student is an Internal Customer and also as an Intermediate Customer. They are internal Customers since they are directly connected and also peruse their programme in the institution. These internal Customers are highly Concise in their needs but comprehensive in their expectations. As internal Customers, they are directly connected to the institution and they obtain management degree to gain a better placement in the industry. Since they resell their qualitative skills possessed through the management program they are both Internal and also Intermediate Customers technically.

Transformation needed:

The TMEI need to change their attitude and outlook towards the potential and existing groups of Customers. They must not be viewed as student/ pupil or as a simple consumer. The new outlook needed is to view them as both Internal and as Intermediate Customers. The very change in their perspective towards them necessitates the institutions to rebuild their services mix focusing students as both Internal Concise Customers and also as Intermediate Customers.

2. Price – As Cost: As Cost of Contract

The potential Customer generally translate Price/ Fees in terms of Cost or value for the service that they have to pay for obtaining the service from the institution, rather than looking it simply as a Price or Payment for the service. The Customer virtually enters into a Contract with the service Institution. On completion of the program the Customers will possess with them the qualitative skills rather than any other quantitative elements from the institution. Hence the potential Customer before entering into a Contract they estimate the Cost, mentally judging mainly the qualitative attributes that they would be acquiring ( Management Skills/ Management Degree ) and also focus on those quantitative attributes such as affiliations, recognition, Infrastructure etc. which would enhance their image and capabilities in acquiring the qualitative skills offered by the institution.

Transformation needed:

The present management focuses significantly on both the quantitative and qualitative attributes in convincing the Customer. However they only succeed in attaining the minimal norms laid by the affiliating body and in obtaining a certificate for the Concise Customer. But management institutions end up with little success in meeting the basic and ultimate expectations of possession of right management skills which is a implied Contract entered with the Customer. They need to measure the additional quantitative and qualitative offerings in terms of values added on and commensurate it with Cost from the Customer view point rather than hiking up the price for every addition.

3. Promotion- As Communication: As Communication of Certainty

This is the part from where the link between the Customer and the Institution starts. Institutions adopt various promotional programmes focusing mainly on the aspiring potential management graduates. The promotional tools carry the motivating quantitative and qualitative elements attracting the potential candidates to join the course. Further during the conduct of the programmes they also conduct activities relating to the course and also other literary and cultural activities diversified to that of the programme. This exercise is mainly to bring their Brand to lime light and to set a base for attracting future potential aspirant Customers. This is appreciable but the focus of the MEI is always with an external view as a Publicity/Promotion.

Firstly these promotional tools carry information about the institution and it becomes more as a Communication to the potential Customer rather than a motivating promotional tool. This becomes clear when the potential Customer perceives the promotional tools and mainly picks up the information but not immediately gets motivated with the attributes of the message. They tend to testify the claims of institution’s services marketing mix based on its Certainty. Truths, Half truths and naked lies are always subjected to scrutiny. Experiences and Communication passed on by the existing and past Customers are considered by potential Customers to gain entry into the organization. The present market requires more of Communication about all the service marketing mix rather than projecting only the strengths of the selected mixes maintaining silence about the weak mixes.

Transformation needed:

TMEI focus mainly on promotion and publicity to attract external potential Customers, their Communication in relation to internal Customers weakens after the admission process is completed. The TMEI view promotion more as publicity to external potential Customers rather than focusing on the existing Internal Customers .The very concept of publicity becomes highly effective by improving communications in terms of Certainty with Internal Customers. Dissatisfaction among the Internal Customers might lead for a propaganda working as antidote to their promotional efforts. TMEI need to make honest and sincere efforts in fulfilling their claims and promises made in relation to the offerings and their services mix, thereby proving their efficiency in Communication and Certainty.

4. Place – As Channel - As Channel of Convenience

Making the services Channels accessible to the potential Customers with the right type of mix is the core need. Apart from offering the services at the base point, in addition some of the TMEI opens their centers at different regional points catering to the needs of the potential Customers possessing different background. The channel of Distance education no doubt is an appreciable move in making Convenient to the potential Customer to gain access to management institutions from different destinations. This Channel opens its doors for varied types of Customers, such as Students, employed executives etc. Offering management programs in varied fields with different durations and running the programs to the convenient timings of the Executive Customers are really commendable. Further management programs offered through online, through collaborations with different management institutions etc. are really appreciable.

Inconveniences:

First of all, entrance tests are the deciding factor of eligibility for the Customer to enter into the field of management education is a major hurdle specifically offered by formal institutions. This is inevitable on the part of the MEI to fulfill the norms of affiliating bodies. For those set of eligible Customers, Convenience of obtaining the right quality of management skills by the present institution is a basic issue that need to be answered rightly by the TMEI.

Further the Institutions and intermediary agencies involved in imparting or facilitating potential Customers in gaining access to management institutions are good in number. The authenticity and credibility of these channels in terms of its quality relating to programs, fees, their recognition by the academic and industrial circles etc. is always a big question to the potential Customer. Agencies set up by the formal institutions, no doubt is able to render the service to the basic expected levels by helping the Customer to obtain the degree but singularly fail in providing practical hands on experience of management skills.

Transformation needed:

Firstly the MEI need to be clear and highly communicative in terms of their institutional network and details about the authorized intermediaries and their powers and limits. Further the procedures to be observed by the potential Customers need to be Convenient for gaining access to the Channel. The price charged for quantitative and qualitative offerings for providing Convenience to the Customers must be translated in terms of Cost/value before it is channelized to the Customers. It should be structured keeping the customer’s Convenience and expectations. Channel of Convenience must be provided keeping fair Cost in mind rather than a price.

5. People- As Career Craftsman:

There are a range of different educational, counseling and human resource management interventions that can support individuals to develop and manage their careers. Career support is commonly offered while people are in education, when they are transitioning to the labor market, when they are changing career. Professional career support is sometimes known as "career guidance" as in the OECD definition of career guidance. [23]

The very concept of Career support focus on providing education or training by the Career Professionals. The Customer aspires to posses more of management skills rather than mere academic knowledge/ degree. No doubt academic knowledge is the basic foundation on which the Career needs to be constructed. The Internal Customers view their teachers as not merely as Professors or Professionals, but they view them as Career Craftsman. A Craftsman is expected to be more a trainer rather than a teacher. Teaching no doubt provides a base, but training gives a practical experience or along with the Know How, even Do How is equivalently required. The modus operandi of Do How and Know How need to be synchronized. Further Institution’s efforts of roping in Industrial professionals for conducting workshops, seminars, expert Lectures etc. will be lopsided to the levels of performance of the activities by the industry Professionals with limited Internal Customer’s involvement. Again it will be more of a Know How exercises with little of Do How.

Transformation needed:

The MEI need to maintain close ties with industries not only for conducting workshops, seminars, expert Lectures, placement etc. but their involvement is required from the beginning of the programme. They need to web the institution’s academic activities with industry professionals and restructure the academic curriculum to suit the needs of the industry. Practical tests and exams need to be conducted by industrial professionals frequently instead of conducting at the end of the programme for placement purposes. There is an immense need for every MEI offering PG courses to establish a research center and to maintain continuous or frequent interactions of academic professionals and students with the industrial professionals. The Process mix needs to be retailored in accordance to the needs of the industry.

6. Process- As Comprehension - As Comprehension of Culture

Basically the Concise Customer seeking for management skills enters the field of management education expecting for a curriculum which will make them convenient to Comprehend and gain access to the academic and practical exercises of gaining management skills. Customers from different educational, cultural and regional background enter the field. Their Comprehension levels, their requirements and expectations vary widely. For better Comprehension of academic and practical skills they expect a Convenient Process customized to their levels of Comprehensions, expectations and requirements.

The present TMEI and the norms of the affiliating bodies are mainly inclined towards academic exercises more or less similar to that of non professional courses with marginal extensions towards practical exercises. No doubt apart from academic exercises in class room the institutions arrange for Expert lectures, industrial visits, organizing seminars, symposium, projects etc. all boils down to the point of gaining academic and practical information to the Internal Customer rather than making them Convenient in gaining practical training or experience and confidence about the management skills learnt through these academic exercises.

TMEI with a structured academic Culture extend a blanket strategy approach presuming the Comprehension levels of all the internal Customers as more or less equal but with marginal differences among them and these differences might affect least in causing hindrance to the internal Customers in obtaining a management degree. Customer’s success in the entrance tests proves this fact theoretically but might not be true practically. Even though this problem is discovered during the conduct of the program, no interest or efforts are executed by the TMEI in adopting different strategies to put the Internal Customers of different Comprehensive levels at ease.

Further the TMEI adopts the routine work Culture of institutions offering nonprofessional courses in terms of imparting and evaluating this professional management education programme. The Customer seldom finds any characteristics of management industry work Culture in the TMEI to adopt or to experience or to get professionally trained (apart from the executive wear provided by the institution) in terms of learning, socializing etc

Transformation needed:

Efforts should be made by the TMEI to identify and segment the internal Customers into groups on the basis of their comprehension levels. Based on their responses towards different types of teaching and training, changes in teaching and training methods g must be adopted to update them. Apart from routine set of academic activities new varied activities need to be added on. These added on activities must be directly or indirectly contribute to the successful completion of the programme by the internal Customer. Further some of the characteristics of industrial Culture need to be adopted, which helps the Customer to get adjusted with the industry after completion of the programme. Thus the process mix structured should be helpful in enhancing Customer’s Comprehension levels and imbibe industry Culture in them. Process should bring a metamorphic change in Internal and Intermediate Customer.

7. Physical evidence – As Credibility for Consideration

Management education services are intangible in nature and most management institutions strive to incorporate certain tangible and intangible elements into their offering to enhance customer experience. The Physical evidences such as infrastructure, collaborations with other reputed institutions/ foreign universities, accreditations, recognitions, research center, Placement center, ambiance, location, courses/ programs offered, technological services, history of results and achievements of the passed out Customers etc. are set to be observed by the potential Customers and for the use of existing Customers. These Physical evidences are perceived and considered (the act or an instance of considering) by the Customers in terms of Credibility of the institution. These physical evidences reflect the quality of content of the education services mix. Hence it raises hopes and expectations in the minds of the potential Concise Customers. The Credibility of the institution is weighed for assessing the value of Consideration (payment for a service). It also sets the base for evaluating Customer’s eligibilities and affordability in gaining entry to the institution. Higher the levels of Credibility more number of hurdles for varied potential Customers to gain entry to the institution. These Physical evidences are promising features to the Customer about the quality of education services mix that would be delivered by the institution.

Traditional institutions initially considered physical evidence to be as a plain proof or essentials needed for providing services to the students. The present MEI develops physical evidences to satisfy the norms of the affiliating and regulatory bodies. No doubt those institutions which intend to modernize had gone further ahead in building and strengthening their infrastructure. Further they always focus on the dominant evidence in attracting the potential Customer but show little importance towards peripheral evidence. One should realize that dominant evidence can only attract the potential Customer but peripheral evidences are the one which provides comfort and Convenience to the Internal Consumers and it is vitally used. Ex: Updating of Journals and other references, Generators, internet and wi-fi , adequate systems, timings of operation of computer labs and libraries, maintenance of electrical/ electronic equipments, machineries, photocopy facilities , transport facilities , etc. These issues can cause hiccups if not delivered or even though delivered but with the restrictions imposed can frustrate the existing Customers .It may also affect the entry of new Customers through word of mouth (Propaganda) by Internal Consumers.

Transformation needed:

MEI focuses more on the dominant physical evidences and flow little attention towards the peripheral evidences. They need to realize it is more the strengths of the peripheral evidences which can satisfy the expectations of the Internal Concise Customers along with the dominant evidence. The establishment of physical evidence, no doubt need to satisfy the norms of affiliating and regulatory bodies. But rightly it should result in matching the Credibility and Consideration (Payment made) of the Internal Customers.

CONCLUSION:

For the transformation to take place, imitating a B- school and changing the structure overnight cannot be a solution. But a gradual evolutionary change is required in the TMEI. The Services Marketing Mixes must be restructured in a phased manner where changes should not attract more of resistance. A new Culture must be evolved matching with the cultures practiced by the industries. The overall transformation becomes successful only when the institution’s Culture is changed along with the reoriented services marketing mix. The ultimate success of the TMEI is achieved only when the internal Customers are accepted well and rightly placed by the Industry.

List of abbreviations:

1. MEI : Management Education Institutions.

2. TMEI: Traditional Management Education Institutions.

REFERENCES:

1. Maringe, F. (2006), University and course choice, International Journal of EducationalManagement, 20, no. 6, pp. 466-479

2. Temple, P., Shattock, M. (2007), What does „Branding” mean in higher education? In Stensaker B. and D’Andrea V. (eds.) Branding in Higher Education. Exploring an Emerging Phenomenon, EAIR Series Research, Policy and Practice in Higher Education, pp. 73-82

3. dictionary.com howtobemoreconcise.blogspot.com/2012/06/be-concise-in-email-writing-nowadays.html

4. Kendall, Stephanie D. (2007). "Customer Service from the Customer's Perspective". In Fogli, Lawrence. Customer Service Delivery: Research and Best Practices. J-B SIOP Professional Practice Series 20. John Wiley and Sons.

5. Frain, John (1999). "Customers and customer buying behaviour". Introduction to marketing (4th ed.). Cengage Learning EMEA. Tennant, Geoff (2001). Six Sigma: SPC and TQM in manufacturing and services. Gower Publishing.

6. http://www.investordictionary.com/definition/cost#sthash.3HPQ X yv A.dpuf

7. en.wikipedia.org/wiki/Contract

9. http://www.businessdictionary.com/definition/distribution-channel.html#ixzz2pWTbz2fS

10. www.businessdictionary.com/definition/distribution-channel.html

11. www.thefreedictionary.com/convenience

12. en.wikipedia.org/wiki/Career

13. ardictionary.com/Craftsman/13846

16. World English Dictionary

19. E. Jerome McCarthy (1975)”Basic Marketing: A Managerial Approach," fifth edition, Richard D. Irwin, Inc., p.37.

20. Lauterborn, B. (1990). New Marketing Litany: Four Ps Passé: C-Words Take Over. Advertising Age, 61(41), 26.

21. Koichi Shimizu (2009) "Advertising Theory and Strategies,"16th edition, Souseisha Book Company. (Japanese)

22. en.wikipedia.org/wiki/Career

Received on 15.01.2014 Modified on 25.01.2014

Asian J. Management 5(2): April-June, 2014 page 255-260