International marketing of British education:
research on the students' perception and the UK
market penetration
Keywords
Marketing intelligence,
Higher education,
Consumer behaviour,
United Kingdom, Students,
International marketing
Abstract
The study functions as marketing
intelligence inputs for the UK
Government, the British Council as
well as academic marketing
planners for constructing their
marketing opportunities-threats
audits, it investigates
international students' perception
about the UK education and it
researches UK performance in the
world markets for international
education. UK education has been
known to be the best in the world.
For many years, the UK
universities have enjoyed a high
reputation and have benefited in
accelerating its market
penetration worldwide.
Unfortunately, this superiority has
begun to decline. Other countries
are strongly emerging with their
quality education. The study
shows that UK competitors
achieved a remarkable growth of
their international students'
enrolment while the UK achieves
only a marginal growth with
declining market penetration
abroad. The findings confirmed the
central importance of pricing,
product and promotional variables
in designing and marketing UK
education abroad.
Marketing Intelligence &
Planning
21/5 [2003] 318-327
# MCB UP Limited
[ISSN 0263-4503]
[DOI 10.1108/02634500310490265]
[ 318 ]
A. Binsardi
Wrexham Business School North East Wales Institute of Higher Education,
Wrexham, UK
F. Ekwulugo
Westminster Business School, University of Westminster, London, UK
1. Introduction
The UK is the second leading exporter of
international education behind the USA. In
1999, 219,285 international students were
enrolled in UK universities and colleges,
then increasing up to 224,660 students in the
year 2000. Australia is the third exporter of
international education with 162,865
foreign students in 1999 and 188,277 in 2000,
while the USA is the market leader in the
markets for international education. In
1999, there were 490,933 international
students learning in the USA, increasing
considerably to 547,867 foreign students in
the year 2000 (Figure 1).
Recently, the UK Government sponsored
initiatives to attract more international
students. These initiatives identified several
aims, such as achieving a higher education
market share of 25 percent by 2005 or 50,000
additional foreign students and being the
world's leading nation for international
education. The Government has also
provided £3 million in 1998 for scholarship
schemes in order to attract more
international students[1]. In 1999, Tony Blair
announced an initiative to attract more
foreign students by injecting an additional £5
million to strengthen the UK marketing
campaign and penetration in the world
markets of international education. Since
then, the British Council (BC) has made
international education promotion as the
main priority and has increased grants
throughout its network (British Council,
2002).
Our research (Figure 2) indicates
however that the UK is lagging behind that
of its rival competitors such as the USA and
Australia. In the year 2000, Australia
achieved the highest growth of 15 percent,
followed by the USA with 12 percent, while
The Emerald Research Register for this journal is available at
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the UK achieved only 2 percent growth[2] of
its international students' enrolment. The
USA and Australia have been attracting
more international students than the UK.
This continuing strong growth in overseas
student numbers in the USA and Australia
is due to the sustained pro-active and
aggressive marketing strategies of the USA
and Australia in the international markets
for education (Smith 2001; IDP 2002;
Mazzarol and Hosie, 1996; Michael, 1990)
while the UK is behind in terms of its
strategic marketing policies. The UK is
facing rigorous changes in their macro-
marketing environment; for example,
through a decrease in demand for
traditional international education and an
increase in the global challenges from its
rivals from other countries such as: the
USA (among others, Stanford University,
MIT, UCLA, Harvard Business School, etc.),
Australia (University of Melbourne,
University of Sydney, Australian National
University, etc.), Japan (Kyoto University,
Waseda University, Christian University,
etc.) and other European Countries (Insead,
Groningen University, University of
Amsterdam, Catholic University of
Belgium, etc.).
The UK Government, the BC and the UK
universities nowadays face fiercer
competition in the world markets of
international education. It is imperative
that the UK should equip themselves with
the necessary marketing intelligence and
information that would enable the country
to face the challenges. This is the main
theme of the study. By examining
international student perceptions and
the trend of the UK market penetration,
the study functions as an input for
academic marketing planners and the
Government for formulating their strategic
marketing policies.
The current issue and full text archive of this journal is available at
http://www.emeraldinsight.com/0263-4503.htm
A. Binsardi and F. Ekwulugo
International marketing of 2. Literature analysis
British education: research on
the students' perception and A centrally important principle of marketing
the UK market penetration is that all marketing activities should be
Marketing Intelligence & geared towards what the customers want. It
Planning implies a focus towards the customer or end
21/5 [2003] 318-327
consumer of the product or service. If
customer requirements are not satisfactorily
fulfilled, or if customers do not obtain what
they want and need, then marketing has
failed both the customer and the
organisation. In his Marketing Myopia,
Levitt (1968) argued against the product
centred view adopted by firms while he
instead supported a marketing-centred view,
suggesting that businesses must be viewed as
customer satisfying processes. This view was
also acknowledged by Kinnell (1985).
Marketing concept is a corporate
orientation to business that starts with
consumers and integrates marketing into
every other corporate function. The
traditional view of marketing orientation is
that ``the keys to achieving organisational
Figure 1
International students' enrolment in Australia, Britain and USA universities,
1999-2000
Figure 2
The growth of international students' enrolments, comparison between
Britain, the USA and Australia, 1999-2000
goals reside in determining the needs and
wants of . . . customers'' (Kotler and
Anderson, 1987). In the past, the universities
have determined what students want.
Recently, however, the customers are being
more vocal, thus indicating their
dissatisfaction with the provision of the
education sector. Market orientation is
presented as a convergence of marketing and
strategic management thinking. Education
establishments are currently converging
marketing with their strategic management
thinking. Most market orientation literature
focuses primarily on external stakeholders
such as customers and competitors. In
education, the nature of the product varies,
and there has been a debate as to whether
students are the real products. Kotler and
Fox (1985) argue that students are raw
materials, graduates the product, and
prospective employers the customer. Kotler
and Fox (1985) have put forward a different
view of marketing in education by bringing
in the stakeholder concept. This concept
emphasizes the importance of government,
parents, and students' employers, etc., all of
whom have a ``stake'' in the education
process.
Levitt (1980) in his earlier work sees the
universities' offerings as being made up of
different products that can be regarded as
existing on three separate and distinct levels:
1 the core;
2 tangible; and
3 augmented product.
If we consider core benefit, we see that the
students are not buying degrees; they are
buying the benefits that a degree can provide
in terms of employment, status, lifestyle, etc.
At the second level, tangible attributes might
include the physical layout of the campus,
the library, laboratories and sporting
facilities. Finally, the augmented level is
made up of intangible attributes such as
library membership for graduates, student
loans and finance, an employment or
placement service, etc. If these factors are not
achieved, students will not be satisfied.
International students requirements fit very
well with Levitt's work, and the work of
Kinnell (1985).
For universities to succeed, they need to
develop relationships between stakeholders
and the institution. Relationship marketing
is seen as relationship networks and
interaction between an organisation and its
customers (Gummesson, 1994). Relationships
require at least two parties who are in
contact with each other; in service marketing
this is the customer and the service provider.
Networks emerge when these relationships
[ 319 ]
A. Binsardi and F. Ekwulugo
International marketing of
British education: research on
the students' perception and
the UK market penetration
Marketing Intelligence &
Planning
21/5 [2003] 318-327
[ 320 ]
become many and complex. The core
interaction at the heart of relationship
marketing is the exchange of values and
supporting activities. Halal (1996) proposed a
stakeholder model of the corporation, which
views the corporation as a socio-economic
system composed of various equally
important constituencies:
. employees;
. customers;
. suppliers;
. the public and its government
representatives; and
. investors.
Each stakeholder has an obligation to the
corporation as well as rights.
The nature of educational products has
made it difficult for long-term customer
retention. ``The percentage of students that
remain loyal to an institution and stay on to
pursue post-graduate courses is certainly too
small to be a focus of any institution's
marketing strategy at the undergraduate
level'' (Ivy, 2001). Hence, marketing efforts
should not only be directed to students but to
the entire range of stakeholders. According
to this view, students should be regarded as
consumers and not just customers. This fact
was also recognised by others such as
Nicholls et al. (1995).
For years UK universities have been
described as being product-oriented by virtue
of their subject offerings in the past.
Recently, however, the universities have
evolved by recognising the importance of
marketing in this sector. The education
sector in the UK is facing rigorous changes in
its operating environment. These changes
will affect several dimensions; first, through
the supply of funding; second, through the
increase or decrease in demand for their
offerings and global challenges from other
competitors. Students are tending
increasingly to be extremely critical and
analytical when choosing their educational
institutions. Universities must, therefore, be
very self-critical. For an organisation to
thrive it has to balance internal capabilities
and resources with the opportunities offered
externally while coping with the obvious
threats of the environment. The nature of the
UK educational environment is unique.
British education has for a long time been
considered to be the best in the world,
enjoying the branding of ``made in the United
Kingdom''. For many years, large numbers of
UK universities have enjoyed this status and
have benefited in building their image
worldwide. Recently though, the trend has
changed as a result of global competition.
Many other countries are strongly emerging
and coming up with quality education.
Technological innovation and technological
improvement have had a profound effect in
all aspects of educational marketing.
Computer technology, for instance, has
revolutionised the way courses are
increasingly being offered; for example, some
students are engaged in distance learning,
and courses being offered through the
Internet. Against this background, UK
universities need to expand globally in order
to maintain their existence. Consequently, a
well co-ordinated marketing effort will be
needed if the UK is to maintain a competitive
position in the provision of international
education.
3. Research methodology
The study functions as marketing
intelligence inputs for the UK Government,
the BC as well as academic marketing
planners for constructing their marketing
opportunities-threats audits; by seeking
information on international students'
perceptions of UK education related to the
4Ps controllable variables, i.e. price, place,
promotion and product, by undertaking
marketing intelligence inputs based on
respondents' psycho-graphic characteristics
and perspective towards British education
and, by investigating the UK market
penetration abroad based on recent data.
The study employed both qualitative and
quantitative methodology (Figure 3). First,
the survey was undertaken to investigate
international students' perceptions of the UK
education system related to price, product,
place and promotion variables. Primary data
via survey were obtained by interviewing
foreign students using both structured and
unstructured questionnaires and 62
international students were chosen by
purposive random sampling for participation
in the survey. The questionnaires were then
analyzed by using ranking ± independence
analysis of Chi-square statistics. Second, the
qualitative approach of ``in-depth interviews''
was employed to complement the Chi-square
analysis for probing more detailed issues.
Third, the secondary data (Offices of Higher
Education Statistics Agency (HESA), BC,
Department for Education (DfE), the USA
and the Australian Statistical Offices) were
employed estimating a trend regression.
4. Empirical results
The study was conducted between October
2001 and February 2002. The sampling
respondents were 62 international students
A. Binsardi and F. Ekwulugo
International marketing of
British education: research on
the students' perception and
the UK market penetration
Marketing Intelligence &
Planning
21/5 [2003] 318-327
Figure 3
Research methodology
in which 45 percent of respondents came
from developing countries and 54 percent
came from developed countries[3]. The
respondents' profile is described in Table I.
Of the respondents, 68 percent are under 31
years old and 32 percent are 31 years old and
above. Most of the respondents are post-
graduates and doctoral degrees students (66
percent of the total) and the rest of the
remaining 34 percent of respondents are
pursuing undergraduate and non-degree
courses, such as diplomas and intensive
English programs.
The survey students were asked to provide
their perceptions related to particular
aspects of provision of the UK education of
provision in terms of ranking and order of
importance. Several statements related to the
4Ps concept were emphasized in the
questionnaires as follows:
. Why did the respondents choose to study
in the UK and what were the important
factors to consider?
. Who are the UK's main competitors and
where or in which country respondents
would like to study if not in the UK?
. What is the best way to attract more
international students to come to the UK
and what are other aspects to observe?
. What is the best promotional strategy to
attract more international students into
the UK in respondents' home countries
and from where did the respondents learn
about the UK education?
The results (see Appendix) indicate that
students ranked four leading reasons in
choosing a country to study abroad and in
Table I
Respondents' profiles
Percentage
Respondents' characteristics of total
From developing countries 56
From developed countries 44
Age: under 31 68
Age: 31 and above 32
Undergraduate degrees and others 34
Post-graduate and doctoral degrees 66
considering the important factors. Of the
respondents, 44 percent chose international
recognition as the first reason. The second
reason was the ease of university entrance
and immigration procedures (31 percent of
the respondents). The third reason was the
ease of working during and after the course
(16 percent), and the fourth was the cost of
living and other reasons (9 percent) such as
the shorter degree duration of the UK
education and other personal reasons[4].
The USA was listed by 44 percent of
respondents as the UK's main competitor and
as their first choice of country to study,
followed by Australia (23 percent), Canada
(20 percent), and other countries (13 percent),
such as European nations, Japan, etc. This
finding is in line with the previous studies
(BMRB, 1998). BMRB studies indicate that
60 percent of respondents consider the USA
as the first place to take into account when
making the decision to study abroad,
followed by Australia (21 percent), Canada
(16 percent), New Zealand (2 percent) and
other (18 percent) (see Figure 4).
This study strongly suggests that the best
way to attract more international students is
to concentrate on the price variables such as
lowering the UK tuition fee (37 percent of the
respondents), followed by giving more
scholarships to international students
(31 percent). The third factor is to provide
better care and services to present students
(21 percent), followed by other reasons
(11 percent), such as giving more facilities,
i.e. computer, library, alumni networks, etc.
The results seem consistent with previous
surveys that emphasize the importance of
product and pricing aspects of the marketing
variables in international education.
In total, 52 percent of the sampling students
state that the best promotional strategy in
their countries is to involve alumni networks
and contacts, as most respondents learn
about the UK education via alumni, friends
and relatives. Then followed approaching
local universities and colleges in the
respondents' home countries as the next
important media strategies (24 percent). The
third element is to promote UK education via
[ 321 ]
A. Binsardi and F. Ekwulugo
International marketing of
British education: research on
the students' perception and
the UK market penetration
Marketing Intelligence &
Planning
21/5 [2003] 318-327
Figure 4
The UK's main competitors in the international markets in 2002. Ranking
according to number of respondents' perceptions, in percentages
[ 322 ]
its channels of distribution worldwide such
as BC's offices, consulates and Web sites
(17 percent of the respondents). Promoting
UK education via newspaper, TV, and other
media (7 percent) came fourth.
The survey found that student perception
about the UK education could be considered
under four main headings:
1 pricing variable;
2 product variable;
3 place variable; and
4 promotion variable.
The in-depth interviews strongly confirm that
of these variables, product and price variables
are the most important in attracting
international students. A Chi-square test of
independence was undertaken to investigate
whether or not the ranking is independent of
the respondents' psychographic
characteristics such as respondents' age,
respondents' gender and respondents' country
of origin. The results indicate that the ranking
is independent (as shown in the Appendix),
except in the case of promotional ranking
related to respondents' gender. All other
ranking indicates the null hypothesis of
independence, as the Chi-square statistics are
less than the Chi-square value of 5.99.
In the case of the best promotional
strategy, the ranking is dependent on the
respondents' gender (male or female). Male
respondents consider local universities,
colleges and Web sites to be important factors
in the promotion strategy of others; while
female respondents believed the alumni and
friends are the most important factors in the
media strategy. Overall, male and female
respondents agree on the best promotional
ranking as follows: 33 percent of respondents
consider the most efficient media strategy is
to promote via alumni, 31 percent of
respondents consider that it is desirable to
co-operate with local universities and
colleges; 29 percent favour Web sites, BC; and
7 percent suggest other media such as TV,
newspapers, government contacts, etc.
The following stakeholders were ranked
highly as promotional channels: alumni,
friends, relative, local universities, colleges
and governments. The implication of this is
that HE institutions should pay great attention
to their stakeholders by building relationships
that would generate positive impressions.
They should also build relationships with the
host country's education. Many writers
acknowledge the concept of relationship
marketing such as Gummesson (1994), Halal
(1996) and Payne et al. (1995). Making the
decision to study abroad is a high involvement
process, and is high risk. The decision-making
process is sequential with high information
search. The use of stakeholders could reduce
the level of risk, hence creating confidence for
the prospective student through source
credibility.
Compared with the previous studies
(BMRB, 1998; British Council, 2002) the
results are almost similar with regard to the
importance of controllable variables.
Although there are some differences of
ranking, in terms of the order of importance
and in terms of different-structured
questionnaires (Figure 5), the study reaches
the same conclusion that price and product
variables are the dominant factors for
formulating UK market penetration
strategies in the international markets.
Overall, surveyed students reported a similar
ranking and perception considering several
statements related to the widely accepted 4Ps
classification of the marketing mix that offer
a useful frame for academic marketing policy
makers. According to Levitt (1980) products
have three layers, core, tangible and
augmented products. The research shows
that most of the foreign students' needs are
clustered around the core and the tangible
characteristics of products such as academic
recognition, quality, follow-up services, etc.,
and price such as fee, scholarships, students'
perception of value. etc.
Recent data (Table II) indicates that
international students' enrollment in the UK
has been growing. This is in line with BC's
reports (2002) that the overseas students'
enrollment in the UK has been increasing
over time.
However, looking closely at the growth of
the students' enrollment (Figure 6), the
growth was 0.8 percent in 1996, increasing to
7.67 percent in 1997. But since 1997 the growth
has been deteriorating to 2.82 percent in 1998,
then 2.45 percent in 2000. In fact, the UK
market penetration rate was found to be
declining or negative of ±0.00001 (dp/dt =
tan)[5].
A. Binsardi and F. Ekwulugo Figure 5
International marketing of International students' perception, comparative results
British education: research on
the students' perception and
the UK market penetration
Marketing Intelligence &
Planning
21/5 [2003] 318-327

Table II number of international students in the UK

Number of international students in the UK, has been increasing but, growing at a
1996-2000 decreasing rate, lower and lower each year
since 1997. Is this an indication of failure in
Year International students' enrolment
the UK marketing strategies facing hyper-
1996 196,346 competition and e-learning competition in
1997 198,064 the world markets of international
1998 213,264 education? This finding concerning
1999 219,285 international competitiveness is in line with
2000 224,660 respondents' perceptions about the UK's
Source: HESA (2002) rivals. The USA was listed by 44 percent of
respondents as the UK's main competitor,
followed by Australia (23 percent) and others.
This negative penetration indicates a decline
In order to achieve optimal gains, the
in the UK market penetration in the
analysis of declining UK penetration rate
international markets compared to its should be converted into a marketing
competitors, such as the USA, Australia. The opportunities-threats audit for academic
marketing planners as an early warning
Figure 6 system of marketing intelligence to evaluate
Declining market penetration rate of UK education in international markets threats. Marketing planners should assess
each threat according to two dimensions:
first, its potential severity as measured by
the amount of energy the institution would
lose if the threat materialized and, second, its
probability of occurrence. By using
information from this marketing intelligence
system, the UK marketing effectiveness[6],
such as performing similar marketing
activities better than rivals can be evaluated
(Porter, 2001). Constant improvement in
marketing effectiveness is necessary to
achieve superior profitability and become a
market leader. The USA and Australian
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A. Binsardi and F. Ekwulugo
International marketing of
British education: research on
the students' perception and
the UK market penetration
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Planning
21/5 [2003] 318-327
[ 324 ]
institutions have become much more
aggressive in recruiting international
students since 1980 (Smith, 2001; IDP, 2002).
Based on our primary and secondary data
analysis, the threat of declining market
penetration is the most serious threat with a
severe impact and high probability. The UK
must monitor and be prepared to effectively
respond to the challenges, otherwise the
competitors will consume a bigger portion of
the UK market share in the world markets of
international education. Thus, by combining
the international students' perception in
both structured and unstructured interviews
with the analysis of the secondary data, the
study will be useful for marketing planners
for constructing marketing opportunities/
threats audits, i.e. where aggressive
marketing attention could be focused for
gaining back the UK market penetration.
5. Discussions and conclusion
In 1999, the Prime Minister broadcast a
worldwide campaign to promote British
education in order to attract more
international students to the UK. Since then,
the BC has been undertaking a global
marketing campaign which brands British
education as the first for quality and choice.
Unfortunately, the UK is still behind its
competitors, such as the USA and Australia.
The USA and Australia achieved a
remarkable growth rate of their
international students' enrolment of
12 percent and 15 percent, respectively, in
2000, while the UK achieved marginal growth
rate of only 2 percent with a decline of the UK
market penetration abroad. The findings are
in line with respondents' perceptions of the
UK competitors who have been aggressively
marketing their products abroad. This is an
indication of ``underperformance'' of the UK
Strategies vis aÁ vis its competitors within the
increasingly hyper-competition of
globalization and competition of e-learning.
The study indicates that surveyed
respondents choose to study in the UK
because of its educational standard and its
recognised qualifications worldwide (first
rank). Ease of university admissions and of
immigration procedures (second rank), ease
of finding employment during and after the
study (third rank) and costs of living,
accommodation, safety and culture (fourth
rank). The best way to attract more
international students, according to the
respondents are, in order of ranking,
lowering tuition fees, providing more
scholarships, giving better quality care and
service, and others such as supplying more
facilities, computers, alumni networks and
promotion. Respondents consider that the
best promotional strategy to attract more
international students into the UK in
respondents' countries are, in order of
ranking, via alumni, friends, relatives, local
universities and colleges, the UK Web sites,
BC, consulates and others such as TV,
newspaper, government contacts, etc.
Based on all respondents' perceptions, the
study found the importance of product and
pricing variables in formulating market
penetration strategies to attract more
international students into the UK. The study
also serves as a marketing intelligence
system for the UK universities, the BC and
other academic marketing planners for
constructing marketing opportunities-
threats audits. The relatively small sample
size (n = 62) used in the Chi-square analysis
could be seen as a limitation of the findings,
but in order to overcome limitations, the
study has employed both qualitative analysis
(in-depth interviews) and statistical analysis
of secondary data as a background to
formulate the UK marketing opportunities-
threats audit facing the declining British
market penetration.
Further research can be undertaken by
increasing the sample sizes from several
universities/colleges and by researching
international staff at the BC from various
geographical locations in the world, HEFCE,
DfE, international education consulates,
Home Office, international offices of the UK
universities, which can be analyzed by using
the factor analysis in order to strengthen the
outcomes in terms of statistical robustness.
Notes
1 There are several benefits of having
international scholars studying in the UK. The
benefits are economic and non-economic
(Kotler and Fox, 1985). Beside the economic
value of the UK international education
industry in terms of its contribution to the UK
gross national product, there are also
significant non-economic benefits including
the fostering of social and political tolerance,
mutual respects between UK and non-UK and
establishing foundations for future cultural
and international business relationships.
2 Growth (p) is defined as [(St-St±1)/St±1] 100
percent, where S stands for the number of
international students' enrolment at t, and t
for time.
3 The terms developing and developed countries
are classified according their GNP of IMF
Classification (IMF, 2002). Developing
countries are among others: Uganda, Nigeria,
Indonesia, Vietnam, China, etc., while
developed countries are the USA, France,
A. Binsardi and F. Ekwulugo Germany, Sweden, Canada, Australia,
International marketing of Japan, etc.
British education: research on 4 In the USA, students have to finish master's
the students' perception and
the UK market penetration degrees for two years, while in the UK,
students can finish in a year shorter and
Marketing Intelligence &
Planning compact program. Also in the USA, students
21/5 [2003] 318-327 need to pass the GRE and GMAT tests before
enrolling in post-graduate studies; while in
the UK, the admissions are more lenient.
5 From the equation of p = [(St ±St±1)/St±1] where
S stands for the number of international
students' enrolment at t, and subscript t for
time. The equation is p = 0.0349 ±0.00001 t, and
the market penetration rate is defined as dp/dt
= tan which is equal to ±0.00001.
6 Marketing effectiveness is not only limited to
efficiency but also to a number of UK
marketing practices that allow the UK to
better utilize its inputs; for example, by
penetrating the world markets of
international education faster than its rivals,
by broadening the UK market share, etc. It is
different from marketing positioning, which
means performing different marketing
activities from rivals or performing similar
marketing activities in different ways.
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GroÈnroos, C. (1990), Service Management and
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Moogan, Y, Baron, S and Bainbridge, S. (2001),
``Timings and Trade-Offs in the Marketing of
Higher Education Courses; A Conjoint
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Riggs, R. and Lewis, L. (1980), ``Applicability of
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Education, Supplement, 5 January, p. 3, UCAS
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Stanton, W. (1988), ``It's time to restructure
marketing in academia'', Journal of
Marketing Education, Vol. 19, Summer,
pp. 2-7.
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A. Binsardi and F. Ekwulugo
International marketing of
Appendix
British education: research on
the students' perception and Figure A1
the UK market penetration
Marketing Intelligence &
Planning
21/5 [2003] 318-327

Figure A2

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A. Binsardi and F. Ekwulugo Figure A3
International marketing of
British education: research on
the students' perception and
the UK market penetration
Marketing Intelligence &
Planning
21/5 [2003] 318-327

Figure A4

[ 327 ]
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