QUEENSLAND UNIVERSITY

MARKETING PLAN
MBA PROGRAM
A. Executive Summary 2
B. Marketing Plan Objective 3
C. Situation Analysis 4

D. Market Analysis and Strategies Error! Bookmark not defined.

D1: Segmentation 8
D2: Targeting 10
D3: Positioning 11
E. Tactical Plans 11
F. Conclusion 14
G. Reference List 15

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Executive Summary

Queensland University Master of Business Administration (QMBA) is ranked number two in

Australia by the CEO Magazine. With competition in the employment market becoming
increasingly intense, an MBA qualification is deemed an added advantage in the pursuit of
reaching the pinnacle of the corporate ladder. This Marketing Plan is therefore commissioned to
accomplish three objectives: deliver value for money education, offer enriching and diverse
learning experience and provide a high standard MBA program through qualified and accredited
learning resources.

To achieve these objectives, an in-depth situational analysis of QMBA is carried out through a
SWOT analysis along with studies of both internal and external environment. Additionally, this
Marketing Plan also examines the education market conditions in Australia, specifically the
postgraduate/MBA market. Further, QMBA’s strategic positioning is presented in the form of a
Perceptual Map to provide a detailed snapshot of customers’ perspective. In order to find a way to
a deeper connection with prospective candidates through marketing communication, segmentation
has been done by motivation to study.

Armed with these details, the Marketing Plan recommends tactical steps through the Marketing
Mix of 4Ps: Product, Price, Place and Promotion. Key recommendations include delivering
consistent quality education through credentials, diverse learning environment and value-for-
money attributes. Other significant suggestions comprise of tapping into new student-base
publications, actively increase Search Engine Optimisation (SEO) for higher visibility and
attraction online, and use selective distribution strategy.

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Marketing Plan Objective
Queensland University (QU) is recognised for its high-quality, career-based courses, innovative
blended approach to education and an enriching learning environment that is culturally diverse.
Despite being a young university of only 25 years, QU entered the list of the Times Higher
Education World University Rankings for the first time in 2016, and impressively ranked top 2%
of universities globally (Queensland University Annual Report 2016).

Echoing this success is the university’s Master of Business Administration (MBA) Program which
is delivered by the Queensland Graduate School of Business (VGSB). In 2016 and for the third
year running, QU’s MBA ranked number two in Australia, maintaining its position within the Top
3 rank while climbing up a spot from 2015 (CEO Magazine, 2016).

As McKinsey’s consultant first coined the phrase “war for talent” in the late 1990s- underscoring
intense competition in the employment market for high performing employees, an MBA
qualification is seen necessary for those wanting an elevation to C-Suite positions (The Economist
2012).

It is therefore pertinent for QU to be able to not just meet, but exceed expectations of business
students ready for their next career stage, through a distinctive and prestigious MBA Program.

To this end, this Marketing Plan for QMBA Program has an objective of:
1. Delivering a high value education experience through affordable price points
2. Offering an enriching learning experience and transnational knowledge through a diverse
cultural environment
3. Providing quality education through qualified and accredited learning partners and
academia

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Situation Analysis
The situation analysis of Queensland University includes a relevant characterisation of Its
customers, context, collaborators and competitors.

1. COMPANY

What are we known for?

Queensland University is known as a dual education institution, providing higher education and
polytechnic course to national and international students. The Times Higher Education World
University Rankings (2016/2017/2018) rated this university as being in the world’s top 2%, with
the MBA course being ranked as among the top three in Australia and 8th in the world (Queensland
University Annual Report 2016).

What do we want to become?

Queensland University is committed to “Providing high quality, engaging career-based tertiary

education at all levels of vocational and higher education with flexible entry and exit points,
appropriate pathways, engaging and rigorous curriculum and contemporary delivery; while
maintaining rigorous standards and ensuring that all students are supported to meet those
standards” (Strategic Plan 2016-2020 p.4). University of opportunities, teaching student’s long-
life skills, preparing them for 21st century workforce and, to be known as giving students good
first-year experience, i.e. first year college.

SWOT Analysis:

Strengths Weaknesses
● Ranked in the world’s top 2% (Times
Higher Education World University
Rankings 2016/2017/2018), top three
in Australia and 8th in the world.
● Diverse student environment from
different cultural backgrounds.
● Affordability.
● Small classes.
● Strategic location in Western
suburbs.
● Low rankings in overall experience,
teaching quality, full-time
employment, staff qualification
(Good Universities Guide 2017).
● Financial stability.
● Lack of research compare to other
universities.

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 Opportunities
● Internationally engagement,
especially in the context of Asia.
● Attract students from western
suburbs.
● Accept students who are not able to
get into top ranking universities.
Threats
● Government funding cuts.
● Deregulation of the university
sector.
● International affairs.
● Competition from other universities
in Queensland and around the world.
● Low retention rate.
● Increase in Australian dollar.

2.CUSTOMERS

Demographics:

The 2016 Annual Report of Queensland University records the total number of student enrolments
in Higher Education as 27,201. Female students numbered 10,549, while male students numbered
8,914.

Prospective Students Survey Report (2012 p.8) shows that women (23%) are almost twice as likely
as men (13%) to have preferred a Master’s program, whereas men (61%) are more likely than
women (47%) to have considered only MBA programs. Students younger than 24 (31%) are most
likely than older students (8% for each age group) to consider a master’s programs only; whereas
students aged 25 or older are most likely consider only MBA programs.

Psychographics:

The Prospective Students Survey Report (2012 p.12) indicates that personal and professional
priorities of students influence their choices when considering graduate management programs.
Community life is important for students who consider full-time MBA, Master in Management,
and Master of Finance programs. Part-time, flexible, and online/distance MBA programs or Master
of Accounting programs are mostly chosen by students whose priority is home life. Executive
MBA students who are experienced tend to prioritize work and wealth over other psychographic
credentials.

Buying behaviour:

According to the Prospective Students Survey Report (2012 p.15), future career possibilities,
development of knowledge and skills, increase salary potential, accelerate career path, developing
leadership and managerial skills are among the top reasons for pursuing a graduate management
education. When considering an MBA, students decide base on a country’s educational system,
attractiveness of the location, better preparation for career and chances of having an international
career.

Customer satisfaction and loyalty:

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According to The Good Universities Guide (2017), Queensland University’s student satisfaction
ranked low. Brand loyalty of QU is negatively affected by the low rankings such as graduate salary,
teaching quality, full-time employment.

Preferred channels:

The preferred channels for higher education are school website, the internet, podcasts, social
networking websites, online marketing (Ibisworld 2017).

Levels of price sensitivity:

Compared to other universities, Queensland University provides affordable education to both local
and international students.

Whether any of these descriptors are likely to change soon:

The strength of the Australian dollar relative to the exchange rate affects international students
who attend universities in Australia. Also, government funding cuts potentially increases the fees
of universities.

3.CONTEXT

Political/Legal Factors:

Postgraduate programs like MBA is usually expensive; government funding help students attend
higher education and allow for students to repay loans only upon entering the workforce. The
Federal Government's HECS-HELP scheme increase the number of the domestic student's number
who attend the higher education. Also, improvements on the international student visa have
increased the demand for master programs (Ibisworld 2017).

Economic Factors:

Although the Australian economy is stable, the Australian Bureau of Statistics shows the rate of
unemployment at 5.6% (Australian Bureau of Statistics 2017) and the youth unemployment rate
rose in February, from 12.3% in January to 13.3% (The Guardian 2017). This high unemployment
rate along with tough competition in the job market had led to the increase in enrolment of
postgraduate studies (Ibisworld 2017).

Aside to this, growth in the school-aged population will increase in the coming five years; and
along with the low Australian dollar, there is growth potential in the education market, specifically
targeting international students (Ibisworld 2017).

Socio-cultural Factors:

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Young population growth in Australia will affect demand for postgraduate courses. If the number
of people in 25 age or older group increases, demand for higher education increases (Ibisworld
2017).

Technological Factors:

Computers are the most important tool for universities, from administration and library operation
to teaching and research. The use of computer systems and associated networks will increase in
the future. Online MBA courses are attractive for students who live in the rural areas or overseas.
Online courses are anticipated to increase but it is estimated that it will not significantly affect
enrolment rates or revenue (Ibisworld 2017).

Global Factors:

The strength of the Australian dollar affects international students. If the Australian dollar gets
stronger, cost of the higher education would increase in comparison to other countries. This can
lead to a decrease of the International student enrolment numbers (Ibisworld 2017).

4.COLLABORATORS

Do we have good relations with supply chain? Do we have good relations with distribution
channel members?

The supply chain team’s goal is to deliver value added service to the University and ensure to have
a good relationship with suppliers as well as distribution channels. Also, have cost savings, value
products and services for the University.

5.COMPETITORS

Who are our competitors?

The Australian MBA ranking systems follow different criteria like listings in the global world
MBA rankings, other domestic rankings with a local approach, student experiences, analyses and
metrics. In different ranking surveys these three universities stand out among other universities as
competitors of Queensland University (MBA Guide 2017).

Rank Business School

1 University of Queensland (UQ) Business School

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 2 Melbourne Business School, The University of Melbourne

3 Queensland University of Technology (QUT) Graduate School of Business

What are their competitive strengths?

UQ and QUT MBA Program rankings give these universities the most competitive advantage
(MBA Guide 2017). The University of Melbourne is the first founded university in Queensland
and second in Australia. It is considered one of the Australia's most prestigious research-intensive
universities (Ibisworld 2017).

Market Analysis and Strategies

D1: Segmentation

Customer knowledge
MBA candidates have differentiated motivations to undertake a degree. In order to better
understand them, customer knowledge such as demographic, geographical, psychological factors
as discussed in the previous section will be considered. Taking into consideration the time limit
and resources available for the purposes of this assignment, we utilise secondary data in order to
identify our segments.

Motivations - cluster analysis

The marketing that can be developed based on motivations resonates more with customers than
marketing that is developed based on demographics alone. It provides a way to connect on an
emotional level and inspires action. Motivational segmentations are also universal, avoid cultural
bias, and remain stable over time (GMAC 2016).

Source: Connecting With the Core Motivations of Business School Candidates

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 Segment Characteristics / needs
Respect Seekers Keep up with peers, Children’s future, Stand out, Increase status,
Get more respect, Make parents proud

Global Strivers Management skills, Specific skills, Keep up with change,

Leadership skills

Skill Upgraders Networking opportunities, Start/run business, Employment in

other countries, Become expert

Career Revitalizers Career advancement, Management job,

Become expert

Impactful Innovators International exposure, Social impact, Leadership skills,

Specific skills

Socio-Economic Climbers Socio-economic status, Career stability,

Qualify work other companies, Get a promotion

Demographics and professional situation

Demographically, a perfect candidate that is aligned with the QU’s Business School, is a bachelor
graduate with several years of professional experience (Nicholls et al, 1995). It is essential to
gather professional who are aware of the moment of their life and, therefore, make the informed
decision about the MBA.
In terms of age, there is no determinants because the need of perfecting business skills is
not limited by life stages. However, it can be can assumed that the average candidate is above 27
years old, holds a degree and with at least five years of work experience (Nicholls et al, 1995).

Current customers
Most of the students are professionals who decided to expand their knowledge and skills in
business area. In terms of geography, they are mostly Australia and Asia. Few students can be
found from Europe or Americas (Australian Government, 2015).

Non-users
QU’s Business Campus is open for every candidate with a bachelor degree. However, the
candidates that do not want to study business are not users of QU’s College of Business.

Ideal Customers
Current users are close to ideal customers in terms of age, life stage and professional experience.
However, ideal customers’ population would be even more diverse in terms of geography and
cultural background since one of the aims of this marketing plan is to emphasize more
multiculturality in marketing communication.

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D2: Targeting

Size of the market

While estimating the size of the market, our base population is postgraduate students number in
Australia, sourced from Universities Australia, the peak body representing the university sector. It
would be irrelevant to take into consideration global market since it’s too generic and difficult to
assess. Therefore, our assumption is that Australia holds a fixed number of students.

1. All enrolled students 2015: 1,410,133

2. Number of postgraduate students:

Commonwealth Supported Student Places: 606,691
Overseas Students Places: 271,354
Total: 878,045

3. Number of students that study business: 39% of CSSP = 236,610

11.5% of OSP = 31,206
Total: 267,816

4. Number of postgraduate students that study business: 166,760

(62% of Number of students that study business)

The figure of 166,760 is the number of candidates that is potentially interested in doing his/her
master degree in Business Administration which can be our assumed market size.

Fit with corporate and marketing strategy of each segment

Share in target population of each segment split by motivation to do a degree in business

Segment Share in target population
Respect Seekers 45025

Global Strivers 23346

Skill Upgraders 21679

Career Revitalizers 21679

Impactful Innovators 20011

Socio-Economic Climbers 18344

Balanced Careerists 16676

Total 166,760
Source: Connecting With the Core Motivations of Business School Candidates

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Desirability ranking of segments
Taking into account the QU’s strategy and values that it represents, we believe that the best
segments that fit the corporate strategy are:
- Global Strivers (multiculturality)
- Socio-Economic Climbers (the cost of studying at QU is considerably lower than other
universities such as MBS or Monash)
- Balanced Careerists (the cost of studying at QU is considerably lower than other
universities such as MBS or Monash - balanced careerists are less price elastic because of
their expenditure on family purposes)

It gives a potential number of 58,366 candidates that fit the corporate goals.

Positioning

Strategic position comparing to competitors on a perceptual map

QU’s MBA is positioned as a high-quality (e.g. rankings) course at a high but considerable price.

Show how strategic position compares to competitors’ positions

QU may take advantage of the fact that it is a national university which makes it more credible
(compared to private institutions). It is positioned close to other prestigious school (in high-price
and high-quality quarter of the perceptual map) but with reasonable price and decent quality.

Distribution and promotion plans

To succeed, QU must perform an exclusive distribution of its education services and carefully
select promotion channels (light promotion) with neatly crafted marketing messages.

Tactical Plans

This section provides details about the Marketing mix and how this set of controllable variables
can be combined in a way to meet the needs of a target customers. Usually, these variables are
represented by the 4 P’s; product, price, place and promotion (Iacobucci 2015).

QMBA differentiates itself from rigid, over-academic, time consuming university, by offering a
flexible MBA program to cater to both busy professional and full-time students aiming to develop
their competencies and professional skills. The QMBA program is well known for their
multicultural diversity and for offering good value for money.

Product

We can affirm that a product or a service is offered by companies to meet the needs of a specific
target market. This could be a physical good or a service and many times can be both (Iacobucci

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2015). In this specific case the Queensland University MBA program is an education service
provided to their target segments (mentioned before as a desirable target groups).

The QMBA program is in the second phase of the product life cycle, called “market growth”. They
are considered as a young university, being in the market for around 25 years. The quality of the
MBA program should be considered by consumers to be high end and innovative. QMBA needs
to focus on the quality of its program, in others words it is highly important to differentiate their
product from the competitors (Iacobucci 2015). They need to ensure that customers are satisfied
with the quality of the education received. Furthermore, it needs to consistently deliver the benefits
of the program: credentials, multicultural diversity and good value for money offer.

Working consistently through these objectives, QU can enable sales acceleration and as a result
can increase their profit. Additionally, strong credentials will generate higher levels of awareness
and some buzz within target consumers (Iacobucci 2015). They need to increase and expand brand
associations like: “inclusive”, “flexible”, “international”, “rank -top universities” and
“affordable”, in order to continue with the growth momentum.

Price/Tuition Fee

Regarding the price of the MBA program, the main purpose of this strategy is to continue with a
Midpoint price, as we mentioned before the affordability of this program is the key element for
their differentiation (Iacobucci 2015). The good value for money attribute needs to be displayed
in all marketing campaigns in order to attract more students and emphasize this tangible benefit vs
competitors.
At this stage their consumers are highly price sensitive. Price discounts are probably not necessary,
if the students are fully aware of the three main attributes mentioned before (credentials,
multicultural diversity and good value for money offer).

Considering QMBA program strategic position, this will be the perfect moment to penetrate the
market and disperse the brand through the marketplace. The efforts should be concentrated to
encourage trial and word of mouth. Therefore, one of the results of stimulating the sales will be
increase their market share (Kotler & Keller 2012).

This approach will bring positive outcomes, only if, QU is able to maintain the quality delivered
and attributes of the MBA program.

Place/Distribution

Regarding the QMBA program, the channel strategy we recommend to used is the selective
distribution. This distribution strategy allows them to have more control and less relationships to
manage during the logistic chain (Iacobucci 2015).

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The MBA program should be distributed through well-known magazines (e.g. Grad Australia),
newspapers, Internet Web-sites and current QU campus. It is also expected to see consumer
involvement and an active pull strategy. Advertising directly to end-users will increase consumers
awareness and loyalty (Iacobucci 2015).
To support the key channels and because it is direct marketing channel, it is important to have
some printing material with relevant information like detailed facts handouts and displays
featuring the MBA program (Kotler & Keller 2012).

In addition, QU should take into account the physical locations and campuses where the MBA
program is going to be deliver. For the educational sector the Place can also be interpreted as the
location of the institute or/and it can refer to the characteristics of the area in which the campus is
located.
For instance, QU should take into consideration physical buildings, including appearance, signage,
functionality, resources as technology and the atmosphere of the spaces (Gajić 2012).

Promotion

The marketing advertising goals for QMBA program are to stand out in search engines and getting
more credentials through third-party rankings and publications. Promotion through well-known
magazines/newspapers and digital marketing, will help distinct QU from its competitors (Ivy
2008).

It’s fundamental to create content through digital marketing, using innovative and update
strategies. Some recommendations include promotion in alumni magazine, build segmented online
content, showcase day-to-day life at QU and/or develop mobile apps with functional contents
(Content Marketing Institute 2013).

Additionally, employ news publications, marketing and advertising programs, public relations,
sponsorships and other electronic communications to brand and differentiate the QMBA program
as a multicultural place, quality-high standards and good value for money offer. The key is to
understand students’ needs and wishes in order to achieve an effective communication strategy
(Gajić 2012).

We suggested to measure the effectiveness of the online strategies using Google Analytics.
According to the Higher Ed Marketing Journal (2014 p.1) “We’ve been able to cut costs and save
time by making data driven decisions, rather than decisions made on a hunch that often prove to
be wasteful and hinder the success of our marketing campaigns”
For instance, track ‘Total Visits’, mainly to QU’s official website as it is usually the first go-to
when seeking information on the university and its program. Besides this, ‘New Sessions’ should
also be tracked to measure how many of the site visitors are new and how many are recurring.
Last, but not least important, track ‘Channel-Specific Traffic’ that will segment the traffic based
on their point of origin- direct, referrals, organic and/or social (Forbes 2014).

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Conclusion (5%)

Through the Situational Analysis conducted, it is recognised that there is a gap to bridge in terms
of branding compared to our Top 3 competitors. However, QU’s commitment to provide high
quality education while maintaining rigorous standards is an assurance that the university has in
mind to excel forward and create opportunities for success for every students of all backgrounds.

The ideal candidate for the QU’s College of Business is diagnosed via motivational factors. It is a
point of differentiation that QU may focus on candidates with specific motivations to do an MBA
degree and based on that, the strategy may be executed. Therefore, avoiding competition on factors
that the university is not a leader in terms of perception (e.g. Melbourne University is known as
one of the best in the world so there is no point in competing directly in this area).

It is recommended that QU continues its midpoint pricing strategy for its MBA program to meet
its objective of offering quality education at an affordable price. Promotional strategies such as
partnering with publications, actively tap into digital marketing strategy and use tools to track the
success rate of each marketing campaigns are important implementations for the success of the
plan.

By following this Marketing Plan, Queensland University will be able to exceed expectations of
their students ready for their next career stage, through a distinctive and prestigious MBA Program.

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