MARKETING AND TRADE OF

EDUCATIONAL SERVICES:
A STUDY OF OPTIMUM
APPLICATION OF INFORMATION
TECHNOLOGY IN HIGHER
EDUCATION

PROLOUGE- BACKGROUND
Over the last decade, education is increasingly being seen as an avenue to success. Education
and training have not only helped develop human capabilities, but have created social
opportunities for those who until then had little access to them. The numbers crowding our
schools and colleges indicate this growing demand for educational services.
. But, with demand creating huge opportunities for supply, a whole new education industry
has grown, alongside the fringes of our formal education system. , now if a student cannot go
to a school or college, teaching comes to him. With the development of modern
communication technologies, such as satellite, radio and the growth of the internet, students
can take up study in practically every subject through distance education. These systems have
helped all those, who want to attain higher education but are unable to adjust to the
inflexibility of formal classroom education. Today, distance education in India is imparted
through three major systems of instruction. These are external studentship, correspondence
education and open learning or distance education. Technology plays a pioneer role in doing
so, thus it becomes a priority to understand the puzzle of information technology with
academics, so that new avenues for development are open to exploration.
Education being an intangible dominant service , has difficulty in standardization , this lack
of standardization opens up marketing opportunities of differentiated need based course
package. India being a pioneer intellect domain can utilise this for its intellect enhancement
as well as a service provider using its intellect capabilities. This is practically viable only with
the technology in the hand of academics, but to do so the bridging of gaps is necessary. This
understanding needs an analysis to a core level taking into account why and how is it viable
to make academics and technology go hand in hand. In other words how can e-learning be
actually executed to the maximum? For this purpose it becomes important to analyse the
barriers for the same, and recommend techniques for their removal.
Education being a service sector with no set boundaries of standardization faces a lot of loop
holes from the process of delivering to accepting; in terms it would be right to say from
knowledge to learning to understanding to application. For every student the same teaching
has a different perception and thus it is very difficult to take only technology in hand, or even
to collaborate with technology. Though a reduction in time and improvement in efficiency is
observable, yet cannot be controlled by any one of the two. So to make them go hand in hand
or be a part of distance education e learning mode is not easy. This is the understanding
which needs to be unravelled. However the irony is that technology contains the answer to
the problem itself. Its optimal use would be the key to unlock this gamut of information,
education.
Technology, in particular information technology, has influenced the nature of services
themselves, how they are delivered, and the practice of service innovation and service
management. Technology is also providing new opportunities for delivering existing services
in more accessible, convenient, and productive ways. Technology facilitates basic customer
service functions (performance, answering questions, checking records, tracking
development) and learning or information seeking. . Technology also facilitates
transactions by offering a direct vehicle for making purchases and conducting businesses.
Technology enables both customers (students) and employees (knowledge provider) to
be more effective and productive in receiving and providing services. Today the solution
to almost all problems, queries of a student is just a click away. This click- if standardised,

authenticated and made accessible by a source- then it would open a wide sea of knowledge
left for exploration by self!
Technology also results in the potential for reaching out to customers around the globe in
ways not possible when, in the not-so-distant past, services were limited to local provision.
The Internet itself knows no boundaries, and therefore information, customer service, and
transactions can move across countries and across continents, reaching any customer who has
access to the Web. Technology also allows employees of international companies to stay in
touch easilyto share information and serve as a team together, thus allowing employees to
work remotely and services to be provided by global workers. This is what can act as a
platform and forte for the development of Indian education; educational industry .This not
only enhances capabilities but also fastens the process of innovation, research and
development for the mankind. The dilemma of how technology and higher education going
hand in hand is what needs an understanding.

MODES OF EDUCATION - DISTANCE MODE ITS RELEVANCE

The GATS defines four ways in which a service can be traded, known as modes of supply.
These four modes of trade apply to all service sectors in GATS. Chart below provides a
generic definition for each mode applies them to the education sector and comments on the
relative size of the market supply and demand.
Modes of supply according
to GATS
1.CROSS BORDER
SUPPLY

Explanation

2.CONSUMPTION
ABROAD

-provision of the service

involving the movement
of
the consumer to the
country
of the supplier
-the service provider
establishes or has
presence
of commercial facilities
in
another country in order

3.COMMERCIAL
PRESENCE

-the provision of a
service
where the service
crosses
the border ( does not
require the physical
movement of the
consumer)

Examples in Higher
Education
-distance education
- e-learning
-virtual universities

-students who go to
another country to
study

-local branch or
satellite campuses
-twinning partnerships
- franchising
arrangements with
local institutions

Size/ Potential of
Market
-currently a relatively
small
market
-seen to have great
potential
through the use of new
ICTs
and especially the
Internet
-currently represents the
largest share of the
global
market for education
services
-growing interest and
strong
potential for future
growth
-most controversial as it
appears to set

to
render service
4.PRESENCE OF
NATURAL PERSON

- persons travelling to
another country on a
temporary basis to
provide
service

-professors, teachers,
researchers working
abroad

international
rules on foreign
investment
-potentially a strong
market
given the emphasis on
mobility
of professionals

We would be considering the case of mode type-1 of services that is CROSS BORDER
SUPPLY.
This Mode of education is not new it has been observed in the Hindu mythology as Eklavya
receiving knowledge or Sanjay narrating the Kurukshetra war!
The benefits of this mode are many to list a few:
1) Increased Institutions- Since there is no physical asset required in terms of place, it
overcomes a major restriction of space, a large amount of capital becomes available for
institutions to open up a university.(may be in a room itself- a virtual university). The space
constraint does not remain a constraint any more.

2) Enhanced Access This mode reaches the mass; it is not restricted to the physical
boundaries of a class room where infrastructure is the key determinant of efficiency and
effectiveness, restricting the numbers to a few hundred only. Not only this, the demand for
the services is always higher than the supply by service provider. The economies of scale are
taken into consideration, for India it matters!

3) Opportunities of International Qualification: Sitting in your own country access to the

best possible education is seen, college comes home, and one doesnt have to go for the same.
There is no constraint as to availability of subject, here desire takes the lead over availability.
A person willing to work on nanotechnology can do so irrespective of the fact who else or
how many others want to work on the same subject.

4) Overcomes the geographical spread: today a student sitting in India can get best
knowledge of the globe. The geographical constrain of reaching one or two students residing
in Andaman and Nicobar, gets to study Astrophysics from Delhi without physically reaching
Delhi!

5) Technological Innovation- Once technology is in the hand it is easy to alter, edit and
make the consumer (in this case a student) understand as per his calibre and requirement.
(Development based on capabilities)

6) Competition leading to Quality Improvements: Higher order thinking is developed

when your performance and understanding are rated simultaneously technological innovation
makes this capable, without facing the anxieties of performance in public.

7) Curricular Innovation: When too many mindsets come together, and exposed to all
curriculum- the ultimate result is curricular innovation with best possible flexibilities and
opportunities.

8) Research & Development: When Exposure increases then definitely Research and
Development avenues are bound to open. As a wide platform of sharing knowledge is
available.

9) Resource Use Efficiency & International Exposure

10) Reduction in Time Constraint: Availability of time as per the students convenience is
the best part of this mode

MARKETING OF EDUCATIONAL SERVICES IN HIGHER

EDUCATION
AN AREA OF RESEARCH

Services are people based as well as equipment based, Education in the current scenario
being a mix of both, where instruction and interaction being invaluable as well as inevitable,
means varying day by day with technology. It becomes of utmost importance to bring in
tangible evidence to the same.
It is apparent that services are increasing as an economic force in countries such as China,
India, and other fast-growing and developing nations. The growth of service(s) is a relentless,
global phenomenon that is shaping the worlds economies and profoundly affecting peoples
lives. Yet, despite the economic domination of services, there is relatively little formal focus
within companies, governments, and universities on service excellence, service research, and
service innovation compared to the focus on tangible goods and technologies.
The management of educational services has become necessary, due to the fact that
competition today has become so severe. Even the best of the students feel they need some
professional help. With huge investments in terms of infrastructure, salaries of staff and
faculty and the use of self-learning instructional material such as CD-ROMS, these
institutions are making the education or teaching option, a highly-attractive one for the young
people.
The ability to produce and use knowledge has become a major factor in development. In fact,
this ability is critical to a nations comparative advantage. Surging demand for higher
education in many parts of the world offers developing countries an invaluable opportunity to
prepare a well-trained workforce can generate growth in a knowledge-driven economy.
Education for the Knowledge Economy (EKE) refers to the World Banks work with
developing countries to cultivate the highly skilled, flexible human capital needed to compete
in global marketsan endeavour that affects a countrys entire education system.

There are many unanswered questions pertaining to the marketing of educational services ,
which need some understanding and in order to answer these it is important to understand
this relatively new topic , in which little amount of research has been undertaken.
In such a scenario one wants to solve this puzzle and filter out a methodology wherein all
aspects of knowledge development open up for oneself, ones nation.

ROLE OF INFORMATION TECHNOLOGY IN EDUCATION

Technology has been a basic force behind many service innovations now taken for granted,
such as automated voice mail, interactive voice response systems, Internet-based services,
and various smart services, today so many documentation are stored and accessible to one
through internet based services, planning of lessons execution becomes much better
organised when through these services, it also saves on repeated labour. Advances in
information technology are also making it possible for entire suites of services including
phone, Internet, video, photography, and e-mail to be available through one device such as
the iPhone and similar products. Technology provides an easy way for customers to learn, do
research, and collaborate with each other. Today technology is playing a key role in reduction
of time, travel, expenditure to name a few. Basically technology is inspirational innovation,
each innovation leading to education. It is the key to reach globally.
Customer relationship management, sales support, and product information software are
broad categories of technology based information that can aid frontline employees (teachers,
educators) in providing better service.
The peripheral evidences to quality of education is through technology like ease of access,
understanding, video conferencing, immediate answering to questions, tutorials. As
mentioned competition changes the rule of the game, with technology in education the pace is
going to be very fast.
Cloud computing would make education movement even faster as well as economical.
Technology enables the faculty to share knowledge and ensures that this knowledge is
retained within the system, even if some member leaves. The conventional factor of perish
ability of education as a service diminishes very slowly with cloud computing.
The Social CRM takes even a leap forward to this educational avenue. Looking at the
diagram below clarifies the fact that how a new domain of educational socialization can lead
to development.

Re ads an d c r eate s pr odu c t r ev ie ws, pro duct r an kin g s a nd blo g po sts.

Se e ks sup por t to con nec t w ithl ike- minded pee rs.

Exp ect sb etter cust omer experi ence . You g et w hat you wa ntp lu s b eyond exp ecta tion is w ha t on e ai ms for .

Th e new Socia l Customer

Want s to pr ovide feedba cka bout the pr odu ct an d customer ser vic e. Thi s agai n amplifi est h ekn ow le dg e of customer choice.

Us e s ne w online ch ann els and ne w co mm uni c ati ont ools ,

Te nds to b uy mor e on line th an offlin e. O nli ne me mbers hip and di scou nts ar e offe red .

Tr us t s in adv ic es made b y o nlin e ac quainta nc e s an d s trang ers .

Some clear constraints, paradoxes, and potential negative outcomes as well.

Legitimate customer concerns over privacy and confidentiality raise issues for
firms as they seek to learn about and interact with their customers online. Nor
are all customers equally interested in using technology as a means of
interacting with companies.
These types of concerns are what have stymied and precluded many efforts to
advance technology applications in the Educational Industry and currently Indian
Educational Industry is facing this turmoil. Research on technology readiness
suggests that some customers are simply not interested in or ready to use
technology (Teachers as well as students). Employees can also be reluctant to
accept and integrate technology into their work lives for a variety of reasons,
including job insecurity and reluctance to embrace change. With technology

there is also less human contact which many believe is detrimental purely from a
quality of life and human relationships perspective. This in Education is a
fundamental phenomenon as human touch, values; expressions cannot be
digitalized at all. Finally, from a company perspective, the payback in technology
investments is often uncertain and the need to balance technology and human
touch in developing relationships with customers can be challenging. Risk is high
in this aspect in educational sector.
New models and frameworks will be needed to accommodate, predict, and
control these Wide spread technology changes. It is also clear that well
established engineering, design, and management frameworks may need to be
adapted to reflect these influences.
The story doesnt end here unless and until the barriers to the trade are taken
into account, to mention a few:
1. Restriction on electronic transmission of course material.
2. Restriction on import of electronically produced electronic material
3. Non recognition of degrees obtained through distant learning.
One needs to design a methodology to meet the objectives of trade in education
services, to respond to opportunities and challenges arising from trade in
education services, To control negative effects such as dominance, exploitation
and destabilisation of domestic higher education ,institutions , influx of low
quality foreign providers and to achieve common understanding and better
coordination amongst different stakeholders for the development of skills to
meet short and medium term labour market demands for Strengthening priority
areas of growth that will contribute to the socio-economic development of the
country for Acquisition and creation of knowledge for Preservation of culture and
values of ones mother land .

METHODOLOGY
The methodology for the study would be analytical review of the literature available (A desk
study) Questionnaire to the institution, Academician and students associated with this mode
would be developed and presented for the study.
Yet assurance of honest effort will be made to reach out to some people to find the insight
position of the current scenario.

DATA SOURCES AND REFERENCES

1. Conversation and insight provided by my guide- Prof.Shailendra Kumar

2. WTO document on trade
3. Barriers to Trade in Higher Education Services: Empirical Evidence from AsiaPacific Countries.
4. FDI in Education in India-Sudhanshu Bhushan
5. A consultation paper On Higher education in India and gats: an Opportunity: In
preparation
For the on-going services negotiations At the WTO
6. Marketing of Services Dr. Ravi Shankar
7. The Secretarial note on education WTO
8. Trade in Higher Education Services: The Implications of GATS By Dr Jane Knight