Study finds adult-learning marketers face budget, resource challenges

Study finds adult-learning marketers face budget, resource challenges

University Park, Pa. -- Budget constraints and resource management present the greatest challenges for higher-education marketers, according to a national study presented April 10 at the University Continuing Education Association (UCEA) Annual Conference in San Diego.

The "2006 State of Continuing Education Marketing," a biennial study conducted on behalf of UCEA by Penn State, concluded that continuing-education marketing leaders believe the top challenges facing them are budgetary issues (41 percent) marketing strategy (28 percent), and electronic marketing (18 percent). The study, which had nearly 120 participants, also unveiled shifts toward increased capacity in marketing research, database management, and call-center operations.

"Marketers are being asked to expand their market potential to reach more adult students, but many are not being provided the resources to fully support this venture," said Norman "Tut" Bailey, senior marketing associate for Penn State Outreach Marketing and Communications, who served as lead on the study. "Budget issues are compounded by the need to upgrade marketing services, and it's hard for many of these small shops to keep pace with the trends and technology."

Continuing-education media budgets -- used to purchase advertising -- grew from about $183,000 in 2000 to more than $300,000 in 2006. However, the average marketing operational budget -- used to staff and support the advertising efforts -- remained flat at about $475,000 over the same time period.

Bailey said while the media increase is essential, increasing organizational capacity is also a priority. In each of the last two studies, about 60 percent of participants reported their operational budget either stayed the same or shrank. "The support structure -- staff, systems, even professional development -- all need to be in place to properly manage and execute marketing and make strategic budget decisions," he said. "And the challenge is becoming increasingly difficult, as the adult-education market becomes more crowded with traditional and for-profit competitors."

According to the study, two out of every three universities are marketing to national and international audiences, when just four years ago only one-quarter of institutions were trying to penetrate these market segments.

Bailey said the explosion of electronic marketing has provided a path for universities to expand their reach. "But this medium changes much more quickly than traditional media such as print or direct mail," he added. "A major challenge facing marketers is to manage e-marketing without the resources to successfully implement these campaigns."

Electronic marketing may also be complicating the marketing landscape, as fewer departments believe they provide all marketing services for their unit. "Full-service" departments fell from 71 percent of the institutions in 2002 to 44 percent in 2006.

"Part of this trend can be attributed to a change in methodology in this year's study which resulted in a better representation of continuing-education departments," said Kim Erickson, the research investigator for the study and a market research associate for Penn State Outreach Marketing and Communications. "However, this is the second consecutive decrease in the 'full-service' category, so it also may reflect a true downturn in directors' perception that they provide all marketing services to their unit."

In light of these issues, marketers are outsourcing to a greater degree. Almost one-half of universities outsource marketing research, and one-quarter to one-third outsource call-center, database-management, and electronic-marketing activities.

"It's interesting that several of these outsourcing categories were at or near single-digit levels four years ago," said Erickson. "Marketing research is the fastest growing area for outsourcing and the second-fastest for adding staff. It is also worth noting that almost one-half of new program decisions are being influenced by marketing research. This is up from 34 percent just two years ago."

A few other key findings included:

-- One in four marketing departments report spending zero dollars in marketing research in 2005.

The top categories for a typical continuing-education media budget for 2006 are direct mail (22 percent), print advertising (17 percent), and electronic media (14 percent)

-- Ninety-one percent of participants believe marketing strategy is an organizational strength, yet 86 percent also feel they need some or significant professional development in this area.

-- Revenues for continuing-education departments are on the rise, as 67 percent of the participants reported an increase since 2004.

-- Eighty percent of these continuing-education marketing departments are also responsible for distance-education programs, and 75 percent include corporate training in the portfolio.

Bailey and Erickson will publish the results of the study in UCEA's Continuing Higher Education Review, slated for release in the fall.

About the State of Continuing Education Marketing Study
Created in 1999 by Jim Fong, "State of CE Marketing" is conducted biennially to assess the evolution of marketing higher education to adult learners on behalf of UCEA. Data from the study is a valuable benchmarking tool for administrators and marketers, aiding institutional assessment in areas such as budget, media and resource planning.

About the University Continuing Education Association (UCEA)
Founded in 1915, UCEA promotes excellence in continuing higher education and works to increase awareness of the importance of lifelong learning. Its member institutions, which include public and private accredited colleges and universities and non-profit organizations with a significant commitment to continuing higher education, are committed to extending opportunities to the expanding population of non-traditional students seeking continuous learning.

About Penn State Outreach Marketing and Communications (OMC)
Penn State OMC is an award-winning marketing work unit. OMC provides research, strategic, creative and public-relations support to the largest university-based outreach organization in the world, Penn State Outreach.