Promotional Strategies for Private Online Distance Education Providers
Author
C. Stephen Klitsch
MDE Candidate
University of Maryland University College
Adelphi, Maryland, USA
Capstone Research Project
Stella Porto and Lisa Marie Blaschke, Instructors
OMDE 670
Fall Term, 2012
1
Table of Contents
1. Title Page….………………………………………………………………….
1
2. Table of Contents……………………………………………………………..
2
3. Acknowledgements…………………………………………………………….
4
4. Abstract…………………………………………………………………………
5
5. Introduction of the Research Topic ……………..………………………………
6
6. Online Distance Education Provider’s Definition ………………………………..
7
7. Online Distance Education Provider as a Business in the Marketplace…………
8
8. Promotional Strategies Definition …………………………………………………
9
9. What is Marketing? …………..…………………………………………………… 10
10. What is Advertising? ………..……………………………………………………
11
11. What is Branding? …………………………………………………………………
12
12. Business Models of Online Distance Education Providers ………………………
13
13. Mapping of Online Distance Education Providers ………………………………... 16
14. Education Modes of Online Distance Education Providers ……………………..
17
15. Business Goals of Online Distance Education Providers …………………………
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16. Results of Marketing Strategies…………………………………………………….
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17. Results of Advertising Strategies ...………………………………………………… 24
18. Results of Branding Strategies……………………………………………………… 25
19. Applied Promotional Strategies ………………………………………………..…
25
20. Online Distance Education Provider’s Relationships with Customers ……………
27
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21. Online Distance Education Providers Business to Customer’s Business ………..
28
22. Online Distance Education Providers Business to Individual Customers ….……
29
23. Combined: Both Relationships…………………………………………………...
29
24. Costs of Promotional Strategies ………………………………………………….
30
25. Analysis of Promotional Strategies ……………………………………………..
31
26. Limitations and Further Research………………………………………………..
32
27. Conclusion ……………………………………………………………………….
33
28. References ……………………………………………………………………….
35
29. Appendix A ………………………………………………………………………
38
30. Appendix B………………………………………………………………………
39
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Acknowledgements
The author would like to extend a sincere thank you all the staff and faculty at UMUC
who assisted with guidance during this research project. Stella Porto and Lisa Marie Blaschke
were extremely helpful and patient as they worked through the details and requirements of the
work at this high level. The author appreciated the time of the those subjects in the study who
took phone calls and answered all those probing questions posed about adult education and how
those answers applied to the research within this text. The final acknowledgement goes to the
family and spouse of the author who endured the time away from each other while this project
was completed.
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Abstract
This research project provides analysis from desk-based research and interviews with
stakeholders regarding advertising and marketing strategies that enable online distance education
providers (ODEP) to grow their businesses, develop new customers, develop new business and
provide long-term sustainability. The research includes four tables showing research data and
one matrix to explain business models for online distance education providers. The tables help
identify the distribution and the implementation of certain marketing directives, advertising
campaigns and business branding techniques. The result of the research demonstrates that the
subjects of this study engage in several types of individual and collaborative promotional
strategies. The research identifies specific advertising and marketing strategies like direct mail,
consumer Internet browsing, target marketing and simultaneous efforts of multiple independent
ODEPs sharing one internet website.
Keywords: Online Education, Adult Education, Distance Education, ODEP, Marketing,
Advertising, Branding, and Promotional Strategies
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Promotional Strategies for Private Online Distance Education Providers
Introduction of the research topic
The way in which adults learn is radically changing due to the Internet. One reason for
this development is these adult learners are seeking to develop skill sets or advance their general
desire for education (Rosenburg, 2001). Since 1996, Pelton has argued about the number of
people that will need to be educated keeps increasing and the number of residential colleges will
decrease. Pelton (1996) also claims in all the history of human-kind, more people will require
education between 1996 and 2036 then in all previous time combined. Therefore, as the
population of the world continues to grow, the need for more educators and educational
institutions may be necessary. With such an increase in the numbers of adult learners, the
modality of teaching and learning because critical. How does the education community teach so
many adult learners who desire to learn?
Currently, one of the modes for teaching to and learning by adults is through online and
elearning venues. Online and e-learning are gaining in popularity and accessibility with learners
of all ages, especially with adults. Rosenburg (2001), claims Web-based Internet education is a
significant component for the future of learning. Web-based Internet education includes online
and e-learning venues. Professional adult learners enjoy the flexibility that online education
offers and that the online courses are custom-made for a very unique and specific audience
(Manhas, 2012). As the online education industry continues to expand, evolve, and develop, new
forms of education businesses are emerging to meet this need. The development of privately
owned Online Distance Education Provider (ODEP) businesses are entering the online and elearning education industry. ODEPs eliminate the need for students and faculty to travel to
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training and educational facilities since online education allows the adult learner to leverage their
own time from their own location in the self-paced learning venue of online education. With new
forms of e-learning businesses, the financial investment community is monitoring this growth
phenomenon for potential investors (Rosenburg, 2001). This means that not only is the education
community interested in recent developments of adult education but also the overall business
community is taking a serious look at the developments and sustainability of both existing and
emerging online and elearning educational businesses.
ODEP definition
For the purposes of this research, ODEPs will be classified as those businesses that offer
professional development education, are revenue generating, are private sector businesses and
participate in online and e-learning education among other forms of adult education. ODEPs are
not part of a private or public college or university but include those education providers created,
in part, to offer online distance teaching and training to professional adults, for profit, and allow
open enrollment to the general adult public. Open enrollment for adult learners of these ODEPs
means there are no prior educational requirements to enroll in the curriculum of an ODEP such
as a high school diploma, GED, or other educational certificates. The ODEP within the scope of
this research, currently offer online and elearning in both synchronous and asynchronous
learning venues. This could include a for-profit ODEP that offers exclusive online trainings for
national, state, and/or local government agencies including military, fire and rescue, and/or
police. This definition does not include open education resources (OER) repositories nor does it
include open universities associated with traditional bricks and mortar colleges or universities.
With a clear understanding of the definition of an ODEP, the significance and importance of
7
these emerging and developing business learning and teaching organizations needs to be
recognized and acknowledged.
ODEP as a business in the marketplace
Now there is a clear picture of what is referred to and identified as an ODEP for this
research. Additionally, there is an understanding of the significance and importance as to why
ODEPs are necessary to the adult learning community. Simply put; the need for adult education
is on the rise. Technology is the driver and is allowing for more opportunities to educate and
train the adult learner. Furthermore, it is predictable that ODEPs will continue to emerge, evolve,
and develop in the future based on the growing need for more adult education. Consideration of
ODEPs as a business in the marketplace requires attention. This brings forward the following
questions to ponder:
1. How will these ODEPs promote themselves in the marketplace to the adult learning
community to encourage enrollment and to be able to grow their businesses?
2. What advertising strategies will the ODEPs implement to encourage lifelong learning
and therefore retain adult students/customers of the long-term?
3. How will these ODEPs differentiate themselves from each other, through branding
efforts, to capture a unique market niche?
In order to answer these questions and grasp this concept of promotional strategies, an
understanding of the implementation of a business plan by the ODEPs is paramount. A business
plan can and should contain many important ingredients. For most businesses in the private
sector, one significant ingredient of a business plan, is the inclusion of appropriate promotional
strategies. In other words, how does that business make its presence known in the marketplace?
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How does it or will it attract customers? According to Pinson (2003) “a well written business
plan will provide pathways to profits for an existing business or a new business” (p.1). Those
pathways to profits include how to attract customers to the ODEPs to purchase goods and/or
services. According to the Your Business Plan page of Entrepreneur.com (2012), “a business
plan is a written description of the business’ future.” This road map must include, amongst other
things, a promotional plan to expose the business to potential customers. Both Pinson and
Entrepreneur.com claim that a thorough business plan includes the business’ ability to promote
itself to a market niche to attract new business in order to grow as well as to sustain that
business. Therefore, if an ODEP is to be recognized as a viable business organization it will need
to implement promotional strategies as part of their respective business plans.
Promotional strategies defined
This research will include considerations of three specific elements of promotional
strategies which are marketing directives, advertising campaigns and business branding. Adult
education organizations are necessarily incorporating marketing as an entrepreneurial element as
a regular part of business operations aside from overseeing the pedagogic applications of their
respective learning institutions (Bernath, et al. 2007). Bulearca (2009) states that “marketing
represents the process and planning and executing the conception, pricing, promotion, and
distribution of ideas, goods, and services to create exchanges that satisfy individual and business
objectives” (p.106). Also, Burlearca (2009) describes the promotional blend “as consisting of
various tools used to accomplished communication objectives like advertising, direct marketing,
interactive marketing, sales promotions, public relations, and personal selling” (p.106). Sales
promotions, public relations and personal selling will be considered part of the branding
processes of a business. This demonstrates there is a lot of variables and considerations for the
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development of the most effective promotional strategies that can be implemented and generate
the most effective result. Therefore, promotional strategies for the ODEP must include
marketing, advertising and business branding.
What is marketing?
Gamble (2011) shares two definitions that apply to the marketing element of promotional
strategies. The first defines marketing as “the analyzing, organizing, planning and control of the
firms customer-impinging resources, policies, and activities with a view to satisfy the needs and
wants of chosen customer groups at a profit” (p. 229). The second definition Gamble (2011)
provides is “That process through which a business enterprise, institution, or organization (1)
seeks target customers or constituents, (2) assess the needs or wants of such target customers and
(3) manages its resources to satisfy those customer’s needs and wants” (p. 230). Therefore,
marketing directives are a broad collection of attention getting scenarios to identify wants and
needs of a customer so an organization can provide the product or service to fit a specific
customer wants and needs.
Mosakhani (2012) provides the following insight on promotional strategies and how they
apply to marketing.
“Introducing lead generation is important because it is the main activity before publishing
an ad or any other activity in the internet. Therefore, marketers always try to identify the
present needs and wants of their audiences to match their solutions with them” (p. 2209).
Within any business, marketing is a very distinguishing and unique function. Further,
marketing requires separate work from other departments within the business by creative staff
that understands the clear directive of searching for new customers. Edelson (1999), states that
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within adult education program development, being able to create new online educational
programs as well as asynchronous workshops and seminars will help to attract new adult
learners. Doing so would enable the ODEPs to expand their market share and attract more
customers. According to Edelson (1999), creative marketing is critical to the sustainability of
adult education and without creative promotional strategies and the implementation of new
online courses, most adult educational programs would cease to exist. Since adult education is
relevant to the ODEPs’ livelihood this research by Edelson (1999) provides insight into
considerations of creative course and program development as well as creative ways for ODEPs
to promote themselves through marketing initiatives.
What is advertising?
Advertising is about creating a unique message through a variety of media to attract new
business and/or new customers. West (2008) defines advertising as
“(1) looping the consumer into a place that they are comfortable and happy for them to
sell them, through association, the product, (2) most of advertising is straight selling, and
(3) the ability to take a strategy and create a piece of advertising (print or television) that
motivates somebody to think about or try a product” (p. 38).
Many of us are familiar with print advertising because we gain exposure to it in our
mailboxes, our newspapers and magazines, and along roadsides in the form of billboards. There
is also multimedia advertising which includes radio, television, YouTube and other social media
to name a few sources. Mosakhani (2012), claims that a properly developed advertisement is
highly efficient because it identifies the target customer and the stimulants, wants, and
11
motivations or reasons to make a purchase. What we are exposed to through advertisements
certainly can provide some basis for our purchasing decisions.
Therefore, advertising campaigns using various media persuade, lead, direct or
manipulate potential customers to become new customers. Advertising may be influential
enough to ask a previous customer to return to do business again. This research will identify
specific advertising that ODEPs implement to gain market share.
What is branding?
Branding is an important ingredient of promotional strategies also. Manhas (2012), states
the “branding is mostly referred to as the name, term, design, symbol or any other feature that
identifies one seller’s goods or services” (p.78). For ODEPs this would refer to icons, logos,
graphics, target market niches, catch phrases, and other unique trademarks for branding
purposes. Manhas (2012) also claims that branding provides differentiation between competing
organizations. Bennett, sales manager for a national franchise (personal interview 2012), claims
that marketing also creates brand awareness and strategically separating one competing business
from another through branding initiatives. Therefore, branding of ODEPs is included within
promotional strategies.
By applying the aforementioned definitions of marketing, advertising and
branding to a business plan of the ODEPs, promotional strategies for those ODEP can be
customizable and specific depending on marketing requirements and advertising campaigns of
each ODEP. The research will demonstrate the importance and practicality to the ODEP of
marketing, advertising and branding.
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Business models of ODEPs
Understanding business models of ODEPs is an important part of understanding how
ODEPs may fit in or connect to a given marketplace. Observing business models enables a better
application of the roles that OPED play in the event that these ODEPs compete for the same
customers. Modeling allows for comparisons and understandings of similarities and differences
in the ODEP’s business models. Classifying ODEPs according to their business models will
allow for better understanding of their respective promotional strategies.
According to Hill (2012), there are several business models that are influencing online
education today. These business models are described below.
1. Traditional Non-Profit face-to-face educational programs in a classroom
2. Non-Profit online educational programs
3. For-Profit which includes both face-to-face and online educational programs
4. Competency based educational programs
5. Open-Education Practices
6. Massively Open Online Courses (MOOCs)
7. Flipped Classroom combines online learning with classroom learning
Below is Matrix 1 which is an adaptation from Hill and Abram (2012) modeling. The
matrix locates the different educational business models and the relationship each has regarding
the type of learning mode and who is involved with course design and course facilitation. The
overlapping shapes in the matrix, representing the different business models, identifies the
crossover and commonalities with each model. This matrix shows similarities and differences of
each business model as recognized by Hill (2012). This matrix also demonstrates the evolution
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of learning and how many different learning models which are active today. The matrix also
provides insight for future ODEPs to identify a possible business model. Connections to an
established business model may be beneficial in writing and working a business plan. Hill and
Abram (2012) include both private and public universities and colleges within these business
models of Matrix 1.
Compared with other teaching institutions, ODEPs are relatively new compared to
century old colleges and universities. Even though private and public universities and colleges
are not included with this research, identifying ODEP business models within the general
education community is a starting point for comparison purposes. Of the ODEPs in this study,
the common ground lies in the top row in all columns of Matrix 1. This means that these ODEPs
mode of delivery for their respective courses are offered by face-to-face, hybrid or blended, and
online courses. Of those online courses offered by the ODEPs, they are inclusive of both cohortbased and self-paced courses. See Matrix 1 below.
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Matrix 1
Educational Delivery Models 2012
Instructional
Online Distance Education Provider
(ODEP)**
Design
For-Profit
Team
Competency Based
Including
For-Profit
Online
program
Faculty
Based
Open
NonProfit
Flipped
Education
Online
Program
Classroom
Faculty
Competency
Practices
MOOC
Team
Traditional Non-Profit
Individual
Faculty
Facilitators
MOOC
and
Rhizomatic
Participants
Cohort-Based
Face-to-Face
Course
Blended/Hybrid Online
Course
Course
Self-Paced
Fully Online
Fully Online
Course
Course
Modality of Course Delivery
** ODEP box is inserted by the author and not part of the Hill and Abram (2012) original model.
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Mapping of ODEP
In order to understand more clearly how the business models of the ODEP fit into the
education models as established by Hill and Abram (2012), the author conducted desk-based
research including web-based research and personal interviews to determine specific business
models of the ODEPs in this study. The author believes that identifying specific business models
of each ODEP will better suit the research for understanding each of the ODEP’s promotional
strategies. Mapping of the ODEP is an initiative to identify commonalities of the business
models. The methodology of this research considered criteria such as modality of course
delivery, market niche, and industry exclusivity. The assumption is that if ODEPs share common
ground with criteria such as course delivery modes, a unique market niche, or industry
exclusivity then the promotional strategies in which they engage may be similar or even
identical.
At the time the author conducted this research, each ODEP in the study was a viable
functioning business. After an Internet search, conducted by the author, of dozens of possible
ODEPs, only those ODEPs which fit the definition of ODEPs as described on page 6 are
included in this research. The author contacted the ODEP by telephone to verify this research
information. The person who answered the phone from the ODEP was a customer service
oriented front-end contact individual who, by the author’s interpretation, was trained to sell-theservices of the ODEP. The following are examples of some of the questions asked by the author
during these telephone interviews:
1. How long have you been offering online training programs?
2. Do you offer synchronous programs, asynchronous programs, or both?
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3. How do you attract students to your programs?
4. What types of advertising and marketing do you do to locate students?
5. What kind of budgeted funds are available for promotional strategies?
To gain a better understanding of the promotional strategies of the ODEPs, the author
chose to assess the types of delivery modes for the training and educational programs each
ODEP offered. After identifying a delivery mode, then further assessments could be made on
specific marketing and advertising each ODEP was engaged in.
There are a few presumable interpretations that need to be brought forth. In the process of
accumulating data for this research, the author discovered that of the ODEPs interviewed by
telephone have different and varied views of online distance education compared to scholars in
the distance education field. Online distance education refers to asynchronous training programs
where the student and teacher are separated by time and space (Moore and Kearsley, 2005). To
put this analogy in perspective, sixteen of the ODEPs interviewed offer online training but only
in synchronous formats. These ODEPs offer online training but not in a distance education
format as defined by Moore and Kearsley. Only two ODEPs offered online distance education
training that fit Moore and Kearsley definition. This is also an example of how the private
education sector, like these ODEPs, is differentiated from colleges and universities of which
many of these institutions of higher learning offer online courses based on Moore and Kearsley
2005 definition of online distance education.
Education modes of ODEPs
Of the ODEPs in this study, various modes of educational programs are offered. The
author was able to categorize each one into areas of course modes. There are five modes of
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course offerings and they are; synchronous seminars, synchronous webinars, archived webinars,
online courses (both synchronous and asynchronous) and audio conferencing.
Synchronous Seminars require the student and teacher to attend training at a specific time
and place, in a face-to-face environment, usually at a central training center or public meeting
space such as a meeting room within a hotel, convention hall, or corporate office. Bates (2005)
offers the benefits of synchronous learning in that it is in real-time and provides immediate
and/or spontaneous interactions between learners and instructors. Another example of
synchronous learning is video conferencing. Synchronous seminars have been popular for
decades and are still very common place to adult learners. Synchronous seminars also allow for
networking and after-program interaction for students and seminar moderators to further engage
beyond the seminar content.
Synchronous Webinars are those training events that require a computer and internet
access from the student’s home, office, or WiFi location. The homepage of Webopedia (2013)
defines webinar as the term used to describe Web-based seminar. According to Bloomsburg
Business Library (2013) a webinar is a seminar conducted over the internet, joining participants
with the combination inclusive of conference calls with PCs while connected to the internet. In
this adult learning environment, the student and teacher are separated by space and are active in
the webinar simultaneously. The eighteen ODEPs that were interviewed by the author entered
the webinar business as a side-line from synchronous seminars that were the initial product their
businesses offered. Once the ODEP has gained a customer from registering and participating in
an initial synchronous seminar, the ODEP offered a Webinar track in the attempt to keep the
customer within the ODEP’s customer data base. With the convenience of new trainings and
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educational programs in a Webinar format, the adult learner was not inconvenienced with travel
such as to attend a synchronous seminar.
Archived Webinars are those previously recorded webinars which included a facilitator
and participants. Archived Webinars can be accessed asynchronously by the student and usually
by some form of paid subscription or fee structure. The American Society for Civil Engineers
(2013) claims that archived webinars are available to their members who have high speed
Internet access and a computer. Once an archived webinar is located, the adult learner can listen
to an industry expert’s information and also listen to recorded questions asked by those students
who participated when the webinar was first being recorded as a synchronous webinar. Similarly,
after an adult student joins a membership or pays a subscription to the ODEP, the student is
allowed to access archived webinars at their leisure. Participation is limited to strictly
observation and not engaging in real-time interactions with an archived webinar. According to
Dan Taddei, (personal interview 2012) national educational director for the National Association
of the Remodeling Industry, an archived webinar means the instructor is not present except by
recorded voice and the student cannot interact with the instructor directly except through email
or telephone but in most cases only after the webinar has been reviewed. The author has
participated in several webinar recordings, in collaboration and under the direction of Taddei,
and among others. The author concurs with these descriptions and benefits of archived webinars.
Online courses include both cohort-based and self-paced online courses. Within the past
ten years, these ODEPs began entering the online education business as an evolutionary offshoot to becoming more competitive with other training organizations with online training
programs. Recognizing the convenience factor to the customer/student and to the ODEP appears
a natural progression. These online courses eliminate the need for travel and coordinating
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arrangements for a training facility. The development of online distance education courses
eliminate travel to training facilities, is more convenient to schedule around career and personal
commitments, and even provides the adult learner with more self-confidence to learn (Berge,
2001). Online courses require the adult learner to participate in the course via computer and an
Internet connection. Online courses may engage in multimedia to disseminate course content
including written text, audio, and video applications. The modality of online courses can be
either synchronous or asynchronous.
Audio Conferencing is directed by a facilitator, can engage multiple participants, and
include multiple locations. The technology of the telephone enables audio conferencing to occur
in real time (Bates, 2005). Audio Conferencing is conducted from separate locations, participants
are in a synchronous environment, and each can participate under the direction of the facilitator.
The facilitator is at the helm maintaining control of the class training and allowing or not
allowing students to participate. One challenge with audio conferencing is the fixed costs of the
technology. Audio conferencing requires necessary hardware and software to make audio
conferencing effective and consistent without interruption. The reliability factor is in the
communication lines between the participants. With the technology of Integrated Services
Digital Networking and in conjunction with fiber optics and satellite use, some costs have
declined (Rumble, (2004). However, due to the high costs involved in audio conferencing
hardware and technology, this mode of learning is not available to all adult learners.
Based on the descriptions of the five educational modes of delivery, Table 1 places a
perspective of how the ODEP deliver their respective courses. All the ODEPs in this study
implement multiple modes of delivery for their educational and training programs.
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Table 1
Educational Modes of Delivery
Type of course delivery
% of ODEP offering this type of course
Synchronous Seminars
94%
Synchronous Webinars
50%
Archived Webinars
58%
Online Courses
78%
Audio Conferencing
55%
See Appendix A for further descriptions of course offerings
Business goals of ODEP
In review of each of the ODEPs in this research, none of these ODEP is associated or
affiliated with any college or university. Each ODEP in their own right is an independent
business entity. By personal interviews, the author determined the general purpose of each
ODEP is that they are in the business of providing professional adult education to a specific
market niche. This means they are providing education to their customers. Drucker (1974) claims
that creating customers is the only real purpose of any business. Therefore, it has been
determined that each ODEP in this study has two main business goals; (1) provide adult
education and (2) create customers for enrollment in their adult education programs.
Each ODEP offers multiple courses. Some of the course offerings are introductory in
nature, some courses are advanced requiring some work experience and/or prior knowledge and
some courses require a prerequisite course. Due to the complexity of course offerings, customer
support or, in these cases, student support is important to each of these ODEPs. Every ODEP in
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this study offers telephone support if the customer/student enters their name, email address and
phone number on the ODEP’s website. The author performed an online search with email
contact with the ODEPs and discovered the response time to be very timely with a return email
from the ODEP stating a request for assistance was received and some action will be taken soon.
Two of the ODEPs that were telephoned for customer/student support provided additional
follow-up with sending direct mail to the author with published information about the learning
opportunities of that particular ODEP. This was in the format of print advertising.
The significance of this is about direct contact with the prospect or potential customers.
This is a real-time connection that is being accomplished by the ODEP to its customers. Once an
email address, physical address, or a phone number is obtained by the ODEP from the prospect,
their respective marketing and advertising departments can potentially remain in perpetual
contract by various media within the scope of the ODEP’s promotional strategies. This is directly
connected to business goals based on Drucker’s definition above. Simply put, the ODEPs are
trying to create customers with various means to touch the prospect with the anticipation of that
prospect becoming a customer. The outreach to the prospect (adult student) from the ODEP is in
the following formats in Table 2 below. Phone calls received by the author from the ODEP were
direct results of marketing efforts and business branding. Catch phrases like, “let me tell you
about what we do for training adults” were common place during these phone calls. The emails
received by the author were both marketing and advertising. The emails received by the author
contained broad overviews of the ODEP in order to get the author’s attention and the emails also
included advertising incentives such as register now for the next course. The printed materials
the author received were strictly advertisements. All three types or outreach were branding the
22
ODEP business. Branding by the ODEPs included logos, color consistencies, testimonials, and
the use of catch phrases.
Table 2
OPED’s Outreach to the Prospect or Potential Student /Customer
Promotional Strategies of the ODEPs
Type of outreach
Marketing
Advertising
Branding
Phone call
Yes
No
Yes
Email
Yes
Yes
Yes
Mailing print materials
No
Yes
Yes
All of the ODEPs in this study claim to be serving some clients for many years and have
ongoing relationships for developing and implement in long-term educational and training needs.
In doing so, these ODEPs provide customizable trainings for both online and synchronous
formats written exclusively for clients like Cisco, Southwest Airlines, and Avis Rental Car. This
means that companies like Cisco, Southwest Airlines and Avis Rental Car are outsourcing at
least some of their corporate training to an ODEP. As the distance education industry continues
to evolve, there could be more opportunities for other ODEPs to enter the adult education and
training market. This may include soliciting to large scale corporations, like those previously
mentioned, for the possibility of outsourcing of their educational and training needs.
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Results of marketing strategies
The author conducted personal interviews with these ODEP and discovered that half of
ODEP in the study rely on third party marketing to attract new customers/students. The third
party marketing is a collective consortium of several ODEP using one primary website like
www.findaseminar.com to post their educational opportunities amongst others in the industry.
Fred Prior Seminars relies on memberships through their website and publishes a hardcopy
course catalog which is available upon request. The National Association for the Remodeling
Industry distributes an email blast monthly to its 7,500 dues paying members to market their
educational programs. A third of the ODEPs in the study claim their marketing strategy is to rely
on potential customer/students to Google and perform a Web-based search until the ODEP is
discovered.
Results of advertising strategies
Fred Prior Seminars publishes a brochure that is mailed to potential customers upon
request after that prospect enters the ODEP’s website and requests the brochure. SkillPath
Seminars uses direct mail with previous customers from a historical data base with periodic
brochure mailings identifying new synchronous trainings at regional locations. The National
Association for the Remodeling Industry publishes advertisements in industry related magazines
specific to their customer niche to promote future educational programs. The US Career Institute
purchases print advertising in newspapers and magazines like American Lady and Better Homes
and Gardens. The author was told in a personal interview by US Career Institute that the
magazines advertising is targeted to women who are career oriented and looking for
advancement in their careers through online education.
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Results of branding strategies
Each of the ODEPs in this study demonstrated branding strategies. In particular their
websites provided unique style and layout separating one from another. Printed materials
received by the author contained logos, catch phrases and color brochures to attract the attention
of the recipient. It is the opinion of the author that each ODEP has a clear understanding of
branding strategies that help differentiate and separate each ODEP from the other. These
branding techniques allow the potential customer/student to assess what is the best mode of
education and what are the best courses available on an individual basis. The types of branding
observed in this research certainly demonstrates these ODEPs are differentiating themselves
from one another.
Applied promotional strategies to ODEPs
The research in this study identified five types of common promotional strategies that are
implemented by the ODEPs. Three of these strategies are related to advertising and two of these
strategies are related to marketing. All the ODEPs in the study participate in a least one
promotional strategy and many participate in several promotional strategies. Table 3
demonstrates the distribution range of the applications of applied promotional strategies.
25
Table 3
Applied Promotional Strategies
Marketing
Advertising
Type of
Advertising
Print
Google
Direct
Advertising
Search
Mail
or Marketing
Percentage of
those ODEP
in the study
that
implement
this strategy
Campaigns
20%
33%
23%
Email Blast
and/or
e-Newsletter
Third
Party
Exposure
100%
50%
Further explanations of Table 3
The print advertising is specific to specialty trade and industry related magazines with the
attempt to reach a specific demographic. Those ODEPs that rely on Google Search used this
method as their exclusive mode of advertising and did not engage in other promotional strategies
except only when prompted be an inquiry from a potential customer. The Google search,
according to two ODEPs surveyed, is strictly a consumer driven Internet search and not
necessarily prompted by a specific promotion orchestrated by the ODEP nor particular placement
by search engine optimization. The Google search was initiated by the customer/student until the
ODEP was located and prompted direct contact either by telephone or email. Direct mail
campaigns were only enacted if a potential customer contacted the ODEP and asked through an
email or telephone query to receive printed marketing and advertising materials via first class
mail service. The email blasts and e-newsletters were only delivered to current students or those
26
potential customers who opted to participate in receiving marketing and advertising information
electronically. This is only accomplished by the adult student by entering the ODEP’s website
and requesting information. In one instance an ODEP sent the author several pieces of marketing
materials via first class mail within a four week period due to an email query posted by the
author requesting additional information about that ODEP’s online educational program. The
third party marketing involves 33% of the ODEPs in the study who belong to a collaborative
consortium of multiple ODEP of which they rely on the search engine optimization of the
primary website to attract prospects seeking information about adult learning. Therefore,
according to Graham (2011) “advertising and promotion are therefore seen as an investment
having future benefits to the firm’ (p. 6). These ODEPs are certainly investing in their future
benefits by engaging in promotional strategies.
ODEP Relationships with customers
Another important factor in this study is to determine the relationship the ODEP creates
with those they in which they seek to do business. This is significant because the relationship the
ODEP has with the customer may be a driving factor in the implementation of the specific
promotional strategies. Relationship marketing therefore establishes long-term and mutually
beneficial terms between the consumer and the provider with the concept of increasing value to
the consumer over perpetual time (Pride, et. al. 2009). Once marketing data is accumulated over
time and a data base is established for many customers, customer relationship management
(CRM) can be implemented to achieve a higher level of relationship marketing (Pride et.al.
2009). The introduction of relationship marketing is applicable to the ODEPs in this study. To
achieve a better understanding of this relationship between the ODEP and its customers, Table 4
below will create a setting for particular models of ODEP relationships with customers.
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Table 4
ODEP Relationships with Customers
Type of relationship
ODEP Business to Customer’s Business
Percentage of ODEPs in this study
12%
(promotions to the business)
ODEP Business to Individual Customer
12%
(promotions to individual employees)
Combined: Both relationships
ODEP Business to Customer and
76%
ODEP Business to Individual Customer
ODEP business to customer’s business
Banker’s Tool Box and Professional Bank Services are two ODEPs that participated in
this study. Each one markets themselves to banks and not to individual employees within the
banks. The bank is the customer of Banker’s Tool Box and Professional Bank Services each of
which operates as an ODEP. The purpose for this business to business marketing is two-fold.
First, all banks in the US must comply with federal government guidelines that are mandated by
laws as they pertain to the Federal Deposit Insurance Company (FDIC) and its policies and
procedures. The two ODEPs in this study that specialize in federal laws and procedures of the
FDIC develop education and training for banks specific to those federal regulations. The banks
must comply with the policies and regulations of the FDIC or face severe financial penalties.
Therefore banks must register their employees for trainings and educational programs based on
28
these new federal banking laws and regulations. The second reason for this business-to-business
relationship is the banks recognize they must comply with federal laws as they apply to the
banking industry as mandated by the FDIC and are required to enroll in training and education
on a periodic basis. The completed training programs are documented and monitored by the
Office of the Comptroller of the Currency, an agency of the United States government. Banker’s
Tool Box and Professional Bank Services have development an ODEP business model for longterm sustainability since they remain at the forefront of the FDIC policies and regulations.
ODEP business to individual customer
The National Association of the Remodeling Industry (NARI) and the Remodelers
Institute (RI) are two examples of ODEPs that strictly market to individuals and not to a business
as a whole. They accomplish this marketing by incorporating email blasts from an address data
base. The print advertisements that NARI places in industry trade magazines are specific in that
they publish training ads for Lead Carpenters, Project Managers and Certified Remodels which
are individuals and not a business. NARI and RI are two ODEPs that are target marketing
individuals with education and training programs with specific interests with in a market niche.
Of the eighteen ODEPs in this study, only NARI and RI are the only two examples of ODEPs
exclusively incorporating the business-to-individual relationship style marketing.
Combined: Both relationships
After a careful observation of how the ODEPs connect with their customers through
relationship building regarding the implementation of promotional strategies, Fourteen of the
ODEPs in this study perform combinations of general marketing and advertising to both
businesses and to individuals which is just over three quarters of the ODEPs in this study. That is
29
the ODEP promotes itself to both the customer’s business and to individual employees. For
example, SkillPath Seminars will distribute direct mail marketing to a specific named employee
and supervisor. The mailing label would read:
Jane Jones, Director of Operations –ORManaging Director of Operations
ABC Warehousing, Inc.
123 Distribution Drive
Logistics, USA 01234
The purpose of this type of mailing label is to locate an individual who can make a decision
about participation in a training program offered by SkillPath Seminars. If Jane Jones is no
longer the Director of Operations, this piece of direct mail marketing should be delivered to the
current Director of Operations. SkillPath Seminars is attempting to reach an individual but if not
it has at least reached the business. This is a combination of both business-to-individual and
business-to- business promotional strategies.
In summary of the relationships ODEPs have with their customers, only 12% of the
ODEPs exclusively promoted themselves to the customer’s business and only 12% of the ODEPs
exclusively marketed themselves to individual employees. The other 76% of the ODEPs
implemented a combination of both relationships.
Costs of promotional strategies
While conducting this research, the author asked of the ODEPs for information regarding
budgeting and expense strategies for both the marketing and advertising departments. The reason
for this query was to see if budgeting funds had any bearing on the choices for promotional
strategies. However, none of the ODEPs in this study would comply with that request. Therefore,
an outside source is necessary to try and identify the actual cash investment available for
30
promotional strategies for the OPEPs. According to Wright (2009), the ideal advertising budget
should be 10% of the firm’s gross profit. Though cost of advertising and marketing are not part
of the research for understanding promotional strategies of ODEPs. Therefore, more research
may be necessary to determine if costs of promotional strategies have bearing on how ODEPs
will market and advertise themselves.
Analysis of promotional strategies
The phone conversations experienced by the author from the ODEP were very strongly
marketing oriented. The email follow up received by the author from the ODEP was marketing,
advertising and branding because the emails contained attachments about various trainings and
programs that were promoting immediate registration. The email also contained general
information about the ODEP which is a marketing directive. The email also was specific to
colors, logos and catch phrases. Print materials received via first class postage were most
certainly part of an advertising campaign and helped to brand the ODEPs .
In review of the data obtained in this study, when addressing promotional strategies,
Table 3 (p. 26) does provide the results and insight. The table identifies the percentage of the
results based on all the ODEPs in the study. Each of the ODEPs did promote their businesses
implementing several types of advertising and marketing. Of the 33% that relied on Google
Search to provide new adult students, the author found this to be the primary promotional
strategy of these ODEPs. Of the 50% that allow a third party marketer to promote their ODEP
was also a unique find. In other words, most of the ODEPs relied on an outside source to
promote their adult learning opportunities. This may be unique to the adult learning world as
compared to other business. Perhaps the assumption here is that if adults want to learn online,
31
then why not first search online to locate the appropriate ODEP to fit their personal and/or
professional education needs. If this is true, then these ODEPs are performing the necessary
promotional strategies to develop new customers and grow their businesses. The author was
surprised by these results because the ODEPs typically do not appear to follow promotional
strategies that are found within traditional marketing and advertising of large corporations.
In the final analysis of promotional strategies, are these ODEPs optimizing their
respective markets? Are the ODEPs advertising effectively to gain new students and grow their
business? In the personal interviews conducted by the author, it appears that these ODEPs are
taking the proper and necessary approaches to promote their education and training businesses.
A firm’s future assets and revenues are based on investments in marketing, advertising and
branding of which each has an effect on the consumer to interact with that firm (Graham, 2011).
The ODEPs in this study follow this thought process.
Graham (2011), further analyzes that increase investments in advertising and marketing
yield higher consumer awareness and on the contrary decreases in advertising and marketing will
have ill effects on consumer awareness and reduce the firm’s revenue. Therefore, it would be
prudent and beneficial for ODEPs to establish long-term advertising and marketing plans on
conjunction with business branding to grow their businesses, develop new customers, develop
new business and provide long-term sustainability .
Limitations and further research
It is the opinion of the author that more research is necessary to study promotional
strategies for ODEPs. The research provided in this report is limited to a brief overview and
providing insight into promotional strategies of ODEPs. There are perhaps hundreds of ODEPs
32
in the United States and maybe thousands of ODEPs globally that are yet to be study within this
topic of promotional strategies. Perhaps this research provides a starting point for others who
have interests in this topic. There are more questions to be asked and more detail to divulge.
Gaining more insight into promotional strategies of ODEP will assist existing ODEPs and future
ODEPs with better directives for business growth.
Conclusion
Online Distance Education Providers continue to enter the online education business.
These ODEP are engaged in various promotional strategies to gain market share and grow their
businesses through increased customer base. This research demonstrates the reasons to develop
promotional strategies are to reach out and attract new customers/student by which will increase
market share and in the long term grow the ODEP’s business. Promotional strategies of these
ODEPs have been identified which include the specific marketing directives, advertising
campaigns and branding techniques that each ODEP implements. Some ODEPs partner with a
third party web-based marketing organization while other ODEPs self-market and self-advertise.
This research establishes a clear definition and understanding of what is an ODEP within
the private sector. A mapping or delineation of these private sector businesses as compared to
private and public colleges and universities is demonstrated. The ODEPs are categorized by
business functions and educational opportunities to adult learners. This research identifies
promotional strategies of the ODEP. A comparison review of each ODEP demonstrating the
similarities and the differences is recognized. This comparative analysis establishes patterns
and/or inconsistencies in existing promotional strategies. This research provides insight into
promotional strategies that accomplish future growth and business development, increase market
33
share, expand to new markets and recruit customers/students. This research is beneficial to those
active in adult education, in online distance education and those new educational entities with
future plans to enter the adult education industry as a new ODEP.
34
References
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Appendix A
Course mode offerings of ODEP
ODEP
Name *
Allen
Online
Training
Yes
Synchronous
Seminars
Yes
Synchronous
Webinars
Yes
Archived
Webinars
No
Audio
Conferencing
Yes
Bess Sol
No
Yes
Yes
Yes
Yes
B.T. Box
No
Yes
Yes
Yes
Yes
Enspire
Yes
Yes
No
No
No
F. A.S.com
Yes
Yes
No
No
Yes
F.P. Seminars
Yes
Yes
Yes
Yes
Yes
GAC
No
Yes
No
No
Yes
Hous Zone
Yes
No
No
No
No
Learn Key
Yes
Yes
No
No
Yes
Lorman
No
Yes
Yes
Yes
No
NARI
Yes
Yes
Yes
Yes
No
Pro Bank
Yes
Yes
Yes
Yes
No
Remod Inst
Yes
Yes
Yes
No
No
SkillPath
Yes
Yes
Yes
Yes
Yes
S.T.A. com
Yes
Yes
No
No
No
The PDI
No
Yes
No
No
No
Tracorp
Yes
Yes
No
No
No
Webucator
Yes
Yes
No
No
No
*See Appendix B for complete names of each ODEP and their corresponding website
38
Appendix B
Key to abbreviated names in the ODEP column
Name in
appendix A
Allen
Complete name
of the ODEP
Allen Interactions
http://www.alleninteractions.com/about-us/history
Bess Sol:
Bess Solutions
http://www.besssolutions.com
B. T. Box
Bankers Tool Box;
http://www.bankerstoolbox.com/index
Enspire
Enspire
http://www.enspire.com/
F. A. S. com Find a Seminar
Website address
http://www.findaseminar.com/
F. P. Sem
Fred Prior Seminars http://www.pryor.com/site/TrainingRewards/onlinetraining-courses-and-seminars/
GAC
GAC Academy
Hous Zone
Housing Zone University
http://www.gacacademy.com
http://www.hzuniversity.com/type/residential_construction.php
Learn Key
Learn Key
http://learnikey.com
Lorman
Lorman Business Services
http://www.lorman.com/?c=4&gclid=CJf32JzIqbMCFcRU4AodHQsAUQ
NARI
National Association for the Remodeling Industry
Pro Bank
Professional Bank Services
Remod Inst
Remodelers Institute for Lifelong Learning, Inc.
SkillPath
SkillPath Seminars
http://nari.org
https://www.probank.com/webinars
http://remodelersinstitute.com
http://www.skillpath.com/index.cfm/main/default?se=ms0003
S. T. A. com Software Training Academy
http://www.softwaretrainingacademy.com
The PDI
The Personal Development Institute
http://thepdi.com/
Tracorp
Tracorp
http://www.tracorp.com/
Webucator
Webucator
http://www.webucator.com/
39
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