Branding in Universities: Analysis of its Implementation and Effectiveness Ana Karina Silva ABSTRACT This study was designed to illustrate how universities implement branding, i.e., how universities market themselves to be profitable while maintaining their social responsibility. The literature review addresses the primary objectives, principles, tools, techniques and challenges of branding for universities. This research used quantitative methods to test branding effectiveness as well as its influence on stakeholders’ image of universities. The research concluded that the university is arguably too complex to be expressed in a succinct brand proposition. The implications of studying branding are to provide a foundation for better marketing communication institution-wide and with the stakeholders. BACKGROUND/PROBLEM STATEMENT That money can buy anything and bring happiness is considered to be self-evident by those who hold this belief. It’s common for most people to spend more than 30 years working to provide for themselves and their family. Some workers excel at their profession and so will become successful; others are lucky or may come from wealthy families. On the other hand, there are workers who struggle for each dollar they earn and try to use it as economically as possible, avoiding unnecessary expenditures. In spite of the global economic crisis, most countries eventually become, to some extent, more prosperous, so people are willing to spend more on a quality education as it becomes a priority in their lives. In the past, education was seen as an end in itself, a goal to be accomplished for its own sake. Today, however, education is seen as a means to an end; one that will open doors to financial or material success. Americans are known for encouraging their children to get jobs as soon possible in order to be able to afford the tuition at a good university. The value of education continues to increase as the job market becomes more competitive. Advances of technology and constant migration of people to the U.S. are escalating the environment of competitiveness. But how is the quality of education measured? No individual is in a position to judge the quality of research, teaching, student selection, curriculum design, infrastructure, staff consultancy skills, and other elements that go into the design and daily operations of large universities. Only branding is capable of measuring the quality of a university (Jevons, 2006). Due to increased national and international competition, universities and colleges all over the world are searching for unique definitions of what they are and what they do, in order to differentiate themselves from other institutions and attract students and academic staff (Chapleo, 2004; Hemley-Brown & Goonawardana, 2007). This research study intends to demonstrate how universities market themselves in order to attract and retain students, faculty, employees, and parents, stay profitable, and, at the same time, remain socially responsible. Some universities are more than 100 years old; some have built their names by investing in sports, providing scholarships, building huge campus, supporting experimental research, and developing new technologies. Other universities are tiny, “unknown,” with humble campuses. Some exist only in the online world. An additional point of inquiry in this project is that, because the U.S. is a competitive country with thousands of universities, individuals tend to feel that their association with a particular school labels them. MBA students at small universities may have worries about whether they will be qualified to face the real world once they “finish” their studies and able to compete with students from larger and more famous universities. Environmental changes, like privatization, diversification, decentralization, internationalization and increased competition are common to every country and have an effect on the daily operations of higher education institutions. These institutions are feeling the pressure to market their products and services. The cost of tuition may not be the key factor for measuring the quality of universities but rather the perception people have of the universities. This perception depends largely on how universities communicate and manage their image. Education is an intangible, inseparable, perishable, and heterogeneous service product, and, for these reasons, branding in education has to, above other considerations, be based on the experience and employability they provide their students. The marketing and branding of education is seen by institutions as essential for their survival; as a result, marketing and branding are gaining popularity with private institutions, changing people’s way of seeing education, and changing the scope of the number and type of courses being offered. HYPOTHESIS H0: Branding is effectively implemented in Universities; H1: Branding is not effectively implemented in Universities; H0: Branding has a positive influence on stakeholders’ image of universities; H1: Branding doesn’t have a positive influence on stakeholders’ image of universities; H0: Effective branding attracts more students to the university; H1: Effective branding doesn’t attract more students to the university. RESEARCH QUESTIONS Norwegian researchers, Albert and Whetten (1985) state that in some countries the University is not an organization with a coherent, single identity; rather, it should be understood as a “parliament of selves” (Albert & Whetten, 1985) where different individuals and units see the totality, meaning, or purpose of the university differently (Humphreys & Browns, 2002). Several authors see branding in a positive light, as a mean to improve competitiveness and reputation. Branding is a wide subject that leads to numerous questions, but the primary questions for this research are: How is branding being implemented in universities? What leads students to pick a university and it to accept them? What is the stakeholders’ image of Universities? LITERATURE REVIEW University’s Purpose Some authors discuss the issue of how institutions see themselves and how this view does or does not match the stakeholder’s view of the institution. This view depends on the country, culture, and evolves through the time. In 1894, Cardinal Newman’s idea of a university, excluded the creation of new knowledge through research and insisted that the university simply transmit existing knowledge efficiently. In the 1980s, many US business school deans held research in low esteem, and described it using picturesque terms such as “crap, pretentious, and irrelevant” (Argenti, 2000). By way of contrast, Canadian university presidents hold the belief that the foundation of a university is the fostering of new ideas and critical thinking followed by disciplinary expertise (Mount & Belanger, 2001). There are primarily two kinds of universities: private universities, which are not operated by governments – although many receive public subsidies, especially in the form of tax breaks and public student loans and grants – and public universities, which are funded predominantly by public means through a national or sub-national government. Some stereotypes are held that the best universities are public. Private universities, according to stereotype, are essentially business companies, and as such, worried about profit and loss. However, some of the world's most renowned universities, such as Princeton University, Harvard University, Massachusetts Institute of Technology, and Stanford University, are private universities. Education is an experiential product that is built on trust and relationship so one way of attracting customers is by the word of mouth. There are hundreds of ranking scales for universities based on several criteria. But what motivates a student to pick a university, or if s/he is already there, to switch to another? In other words, how does a student measure a university’s quality? Why are the some universities seen as being better than others? The study takes, as its premise that it’s due to their brand; a term that became known in the 21st century, and is a specific name, symbol, design, or combination of these, used to distinguish a particular seller’s product (Doyle, 2001, p.166). These universities are successful because they have established a place in people’s mind, thereby making it more desirable than similar universities. A rigorous student selection process increases the compatibility between student and school (Belanger et al, 2002). And the greater the congruence between the students’ values, goals and attitudes and those of the institution, the less likely a student is to drop out (Jevons, 2006), and therefore will have a higher probability of being satisfied with the university, A university’s brand becomes an aid to efficient recruitment as applicants usually self-select the schools that match their expectations and plans. Due to the growing number of universities, different appeals to the public, and the ambiguous definition of “quality,” universities are spending money to promote a specific image and create a trusted brand through better and differentiated products and services, though little research exists to demonstrate the efficiency or outcomes of these investments. Despite the increase in marketing education and research being carried out within these institutions, the culture of marketing is still disappointing in universities (Jevons, 2006). Branding Branding can be described as the process which uses advertising campaigns with a consistent message such that a unique name and image for a product/service/idea is created in the consumer’s mind. The literature reveals very few studies that specifically address higher education branding, but an important finding is that a university may be too complex to be encapsulated by one brand or identity definition (Waeraas & Solbakk, 2008). Branding in higher education is all about “what” the institution is, not about the particular product that is being offered in the market place. Branding aids the institution to answer to stakeholders’ needs and expectations and so becomes a filter through which to make decisions about strategic direction, resource allocation, hiring, and curriculum development (Gupta & Singh, 2010). There is some controversy about where academic values fit into the branding processes, and whether such processes would build on the cultural heritage that primarily defines the university as a scientific institution, with attributes such as freedom of research, objectivity, truth, freedom to teach and to learn, etc. In other words, branding might challenge the institutional integrity of universities (Waeraas & Solbakk, 2008). Paul Temple, MBA, senior lecturer in higher education management at the Institute of Education, University of London, state that there are three components of a successful brand: an effective product, a distinctive identity, and added values. Branding is not just about getting a target market to choose one university over the other, but rather, it is about getting prospects to see the university as the only one that provides a solution to their particular need. The main objectives of branding are to deliver a clear message with credibility, which may connect them emotionally to the prospect, motivate them to buy the service, and ultimately, turn them into loyal customers. Unfortunately, to some educational institutions, branding is just the logo on the letter paper. In the case of universities, the product to be branded depends almost completely on the students themselves. The outcome of education largely depends on each student’s abilities, motivations, and interactions and helps to determine the quantity and quality of outcomes of the academic experience. In order to maintain the university’s quality standards, the branding team will be responsible for how and how many students are admitted and what the curriculum will be for a given area of study. The institutions identity is not just its name or logo. Identity varies from university to university ranging from focus on research, consultancy and technology to a wide range of subjects or thousands of students around the world, and so on. In the final analysis, effective marketing is about the university’s ability to meet the needs of the students. In order to have an effective brand in the world of higher education, the university has to have a position statement. A position statement describes a truly unique attribute within the institution’s competitive set, i.e., what the other institutions do not or will not offer (Scarborough & Scarborough). Positioning, according to Ries and Ries begins with the product but more importantly is about what the institutions/organization does to put the image of that product into the minds of potential customers. This position statement is a promise that the institution makes to the consumer, and in which everyone in the institution has to believe, in order to transmit that assurance to the consumer. The last component of a brand is the value placed on it by the consumer. The brand has to be seen as being unique so that it is inextricably fixed in the mind of the consumer. However, because universities don’t want to be perceived as companies that focus on their own profits instead of the transmission of knowledge, a brand enhancing marketer attempts to transmit the university’s values in a more subliminal manner. The final reality is that, no matter how skillful is the branding team, if the product is not good, the university will not be successful in the long term. The opposite might also be the case; if a university’s product is excellent, attention will be drawn to it and the university will flourish with or without branding. In higher education, the target of marketing includes the students, who can be treated as direct and immediate customers of higher education services; employers, who utilize the skills and abilities acquired by students during their studies; as well as society, parents, government and funding bodies, quality assurance agencies, and other regulatory and professional bodies (Gupta & Singh, 2010). Principles The benefits of branding in education are as apparent as the benefits of branding in business; as a result, brand management has become an imperative. Various researchers and authors cite different principles; this study will highlight the principles that follow. The first principle is integrity. The institution should state only what is accurate, since trust is something hard to attain and the lack of it can jeopardize the way society sees the institution. To build a successful brand in education can take between 10 and 15 years. The importance of rankings has grown significantly as the demand for evaluation of academic institutions has increased and their modes of governance have become more market-based (Engwall, 2007). Reputation may vary across stakeholder groups according to the perception of each group regarding the degree to which the organization in question meets its unique expectations (Bromley, 2002). Deephouse (2000) argued that the construction of reputation occurs in the media when a corporation is praised for its actions or associated with positive actions. Conversely, reputation is damaged when the organization is criticized for its actions or associated with questionable actions. Additionally to avoid the educational institution being seen as just any other business, the branding team shouldn’t advertise it with an emphasis on excitement. This gives the impression that the institution is just chasing after money. Another principle of branding is that the effective delivery of the brand’s promise requires that the institution’s leaders have a clear understanding of the marketplace’s perceptions of its brand; the sense of belonging creates the student’s engagement with fellow students. The faculty, staff, and administrators all play key roles in delivering an institution’s brand promise (Black, 2009). Moreover, although branding should drive marketing strategies; in order to avoid being ineffective, they must also be profitable (Apte, 2004). In other words, branding should generate revenue, fundraising receipts, and other resources. To ensure the principles listed here, higher institutions should have a documented position statement and a brand strategy. Marketing plans are fluid and may change over time, but in order that the institution is “known” for something, the brand strategy should remain intact over a long period of time (Gupta & Singh, 2010). Universities should invest heavily on pedagogy and care less about returns. The effects of globalization requires not only new academic subjects, but they also present fresh venues of pedagogy (Gupta & Singh, 2010), such that the curriculum and pedagogy must be relevant in the global marketplace. Other authors defend only two branding principles: differentiation and integration. Differentiation offers something totally unique in order to achieve a sustainable market position. Integration ensures that campus-wide decisions (by admissions, the academic divisions/ departments, university relations, etc.) are integrated to reinforce the same core differentiators (Scarborough & Scarborough). Tools and techniques There are three major branding tools, according to Gupta and Singh (2010): making, enabling, and delivering the brand promise. Making the brand promise has to do with the strategies and steps that are taken in accordance with the institution’s mission, vision and values. An additional consideration is the image the institution wants to project to the consumer. The designer of the brand then develop a 5Ms model (mission, media, message, money and measurement) of branding and positioning that is intended to ensure that the communication matches the institution’s objectives; that it is effectively communicated to the target audience; that there exist sufficient financial resources to communicate the message; and, finally, that a measurement tool assesses the effectiveness of the message being projected. Enabling the brand is the second step in the process. This is accomplished by employing qualified and talented faculty/staff for the organization, in order that quality services can be delivered to the students. The institution may motivate the employees through an effective job design and reward system; this facilitates their cooperation and makes it more likely that they will be more effective and productive employees. By providing proper training and empowerment to the employees they are making sure the employees will act in accordance with the brand promise. Delivering the brand promise is the final tool. Universities should incorporate all aspects of its brand throughout its culture, so that no disparity will be exist between the organization’s claims and the consumer’s experience. Brand authors make clear that the brand promise must be executed and personified through services, business transactions, human interactions, the teaching and learning process, information delivery, and learning experiences (Black, 2008). Challenges Education brands are influenced by more deeply felt and longer lasting considerations than other commercial products. In contrast to the example that children and young adults like the same games, cars, people, etc., that their peers like; when choosing a university, prospective students rely on rankings, family histories, and parents’ and teachers’ advice, among other variables In other words, The decision to apply to this or that university doesn’t depend only on the students’ whims nor is it done on the spur of the moment. Another challenge is that universities are selling their products and services to educated, sophisticated, and mature people, and so must work harder to make their particular service and products appealing. Additionally, in the attempt to attract a diversity of students from all over the world, the institution may be hard-pressed to transmit a unified message. Further, due to the diversity of students, their study ambitions and involvement in university life might vary considerably (Warwick, 2004). Moreover, some of the finest institutions, those that rely on gifts and donations as much as on tuition, have more faculty members per student and smaller class sizes. This is a much different situation than experienced by most businesses. The final challenge is that, although universities are trying to be unique, they’re frequently being seen as becoming more similar (Belanger, 2002). RESEARCH DESIGN The research used a simple random sample for reasons of convenience. Data collection included primary data (questionnaire) and secondary data (peer review journals). The data was analyzed through the use of descriptive statistics in charts and graphs, and interpreted through generalization. Participants numbered 150 students and consisted of undergraduate and graduate students and alumni, mostly from Virginia International University (VIU). The data was collected from November 10 to November 20, 2011. In order to get different points of view, and to take advantage of social media tool, www.facebook.com was used to reach students from around the world. Sixty-eight people responded but only 36 answered all questions. The following table shows the frequency distribution of the participants. Of the people interviewed, 56 percent were between 22 and 26 years old, roughly half were female and half male, and 57 percent were graduate students. More than 80 percent of participants were from Virginia International University (VIU). The large percentage of participants from VIU was probably due to the fact that the researcher was also a student at Virginia International University. Table 1. Characteristics of Survey Participants Number of Participants Age 21 or younger 1 Between 22 and 26 38 Between 27 and 30 16 Between 31 and 35 5 Older than 35 8 Didn’t answer 0 Gender Female 35 Male 33 Didn’t answer 0 Status Undergraduate 14 Graduate 39 Alumni 4 Professor 3 Staff 1 Staff/Graduate 1 Staff/Undergraduate 0 Staff/Alumni 0 ESL 1 Didn't answer 5 University Virginia International 59 University 1 University of Reading Leeds Metropolitan 1 University 1 University of Chester 1 Damelin South Africa The Art Institute of 2 Washington Catholic University 1 of America 1 Strayer University 1 Didn't answer Continent of Origin Europe 9 Characteristics Percent 1 56 24 7 12 0 51 49 0 21 57 06 04 01 01 00 00 01 07 87 1 1 1 1 3 1 1 1 13 Africa Asia South America North America Middle East Didn't answer 22 28 3 2 1 3 32 41 4 3 1 4 The questions in the survey were divided in four main areas. The first part collected information about the survey subject. The second part was related to the university itself, the overall identity definition or the “what to be.” The third part was related to core values, or “what to stand for.” And the fourth was related to consistency or “how to orchestrate” the universities communication (Waeraas & Solbakk, 2008). In order to respect the time constraints of the responders, the survey consisted of only 26 questions. All were structured with multiple choice answers, in order to prevent misunderstandings that might stem from hand-written answers or from receiving too many different answers that could lead to inconclusive interpretations. As shown in Figure 1, early 58 percent of participants had been advised by a friend, classmate, or relative to attend VIU. While it is a good sign that students are referring the university to others, the marketing team should be open to other communication means. Figure 1. How Somewhat Easy to Found Out about VIU 1.5% 4.4% Searching online 36.8% 57.4% Referral from a friends/classmate/relative Print advertisements Didn't know Because the research subjects were adults, most of the participants had decided where to study on their own (Figure 2). Figure 2. Who Made the Decision for the Somewhat Easy to to Study at VIU 1.5% 4.4% 2.9% You Parents 91.2% As shown in Figure 3, although 81 percent of the participants recognize the university’s logo, only 37 percent recognize its slogan. It is, therefore, an anomaly that 62 percent of them think that VIU’s logo and slogan match. Figure 3. Participant Recognition of VIU Logo and Slogan 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 81% 57% 37% 16% 3% 62% 62% 34% 6% 4% 32% 59% 38% Yes 6% 3% No Didn't Answer Regarding branding, it is alarming that 59 percent of participants was not aware of the university’s presence in the media and did not think the university has a strong brand. We have to recall the first chart where no participant heard about the University through a TV or radio advertisement. It seems like the term brand overlaps with the term reputation. And the term reputation is overly associated to the size and/or age of the university. Since most of participants study, work at, or use relatively new universities, they do not see the institution as having a strong brand. The previous data might be supported by the fact that 85 percent of participants consider their university a small one. And smaller universities are hardly noticed by the public. A positive result was observed concerning communication with university employees. Almost 83 percent of the participants that attend small universities answered that it is easy or somewhat easy to communicate with staff or faculty (Figure 4). On the other hand, only about 10 percent of students from large universities answered that it was easy or somewhat easy (Figure 4). Figure 4. Participant Perception of Ease of Communication with Faculty and Staff in Small Schools 4.4% 1.5% 2.9% Easy 8.8% Somehow easy Neutral 19.1% 63.2% Somehow difficult Difficult Didn't know Figure 5. Percentage of Participants Who Agree that it is Easy or Somewhat Easy to Communicate with University Faculty and Staff, by School Size 10.29% 4.41% Big 85.29% Small Being part of either a big or small university, 84 percent of the participants said they are aware of the school’s culture, 12 percent said they were not, and 4 percent did not answer. As shown in Figure 6, only 57 percent of the participants consider that their university has a modern culture. The 10 percent that didn’t answer weren’t sure of the meaning of culture. Figure 6. Percent of Participants Who Believe Their School Has a Modern, Traditional or Outdated Culture 10% Modern 7% Traditional 25% 57% Outdated Didn't answer When we decide to buy a product or a service, we have expectations. After acquiring it, the product or service might exceed, meet, or fall short of our expectations. From this we infer whether the product or service is good or not. Twenty-five percent of survey participants feel that the product – their university – fell short of their expectations (Figure 7). Either the university made promises it couldn’t keep or the participants had an unreal expectation about the university. Figure 7. University Success in Satisfying Participant Expectations 4% 13% Over expectations 24% Equal Expectations Under Expectations 59% Didn't answer The culture as a combination of the different backgrounds of each individual within an institution is extremely subjective. Universities usually make an effort to present this culture to its staff, professors, and students. There are several ways to deliver it, and the results were that almost 40 percent of participants felt that they were being introduced to the culture through welcome events, seminars, and similar approaches (Figure 8). Figure 8. Participant Perception of How They are Introduced to Their University’s Culture 1.4% 14.9% 9.5% 40.5% 20.3% 13.5% Welcome events, Seminars and other events Informal speeches by the staff and faculty Emails, newsletters and other print advertisements I was not introduced to the university’s values Other Didn't know Regarding overall student opinion about the quality of their university, over 60 percent of participants thought it is good or excellent (Figure 9). For the most part, students that consider their university “modern” are the same one who considers it “good”. Figure 9. Participant Perception of the Quality of Their University 5.9% 1.5% 10.3% Excellent Good 13.2% 19.1% Acceptable 50.0% Could be better Poor Didn't answer As can be seen in Figure 10, none of the participants thought that best professors or best students come from unknown universities. Similarly, they don’t think the best professors come from less expensive universities. This might be because, as potential employees, they seek better salaries and benefits that less expensive universities won’t be able to meet. Regarding where best students come from, half of participants said that there’s the same probability regardless of where they had studied. The result might be biased due the fact most of participants were students, and none want to admit they’re not good students. It is interesting how the idea of “known university” is not associated with “expensive university” or “bigger university”. Figure 10. Participant Perceptions of the Types of Universities with the Best Professors and Students 60.0% 50.0% 50.0% 40.0% 33.8% 30.0% 20.0% 10.0% 0.0% 19.1% 17.6% 16.2% 8.8% 8.8%8.8% 7.4% 4.4% 2.9% 0.0% 13.2% 8.8% Best professors Best Students 0.0% According to this research, besides current students, 79 percent of participants thought that employers are concerned about the background of their prospect employees (Figure 11). Figure 11. 4.4% 19.1% Yes No 76.5% Didn't answer Regarding our sresearch question “What leads students to pick a University and it to accept them?” the answers were quite divided because the participants were presented with 14 possibilities, and they could pick as many as applied. Twenty-four percent of participants thought that affordable tuition was the main factor in their decision. This factor was followed by school location and the courses available. Figure 12. Factors Influencing Participants to Select a University 25.0% 24.0% 20.0% 15.0% 10.0% 13.7% 5.4% 5.0% 12.3% 7.8% 3.9% 4.9% 6.9% 2.5% 0.5% 5.4% 7.4% 2.9% 2.5% 0.0% Series1 LIMITATIONS OF STUDY The first limitation regarding the study is the researcher’s lack of experience of conducting research and the second is the time constraints the research was under. A similar paper is typically takes at least 2 years to prepare while this one took only 8 weeks. A drawback of limited was that the volunteers used to survey the participants didn’t deliver the answers on time to be properly edited and coded. Regarding the research itself, beyond rankings and accreditations, there was little research on reputation-building and branding in universities. CONCLUSIONS H1: Branding is not effectively implemented in universities. Some universities seem to be ignoring “commercial branding models and practices” and the ones that are imitating it, have a lot to learn yet. Branding in university is not a fad or a superficial idea but a necessary process. A university is arguably too complex to express itself in a succinct brand proposition (Waeraas and Solbakk, 2008). H0: Branding has a positive influence on stakeholders’ image of universities. The factors that are important for branding universities (Gray et al., 2003; Gatfield et al, 1999) have not yet been presented in any type of branding framework. The success of branding in universities could be regularly measured by analyzing the brand perception through surveys or comparisons between universities. Nevertheless, it is hard to quantify improvements in branding activity and the benefits it brings to the university’s strategic objectives (Chris Chapleo, 2010). H0: An effective branding attracts more students to the university. Branding is not about getting a target market to choose one university over another, but is about getting prospects to see the University as the only one that provides a solution to their problem. So branding’s main objectives are to deliver a clear message and credibility, motivate the prospect to buy by connecting with them emotionally, and turn them into loyal customers. Unfortunately, to some educational institutions, branding is just a logo on their letterhead. According to Chris Chapleo, the concept of “success” in any aspect of the organizational and business arena is subjective, and this could be argued to be particularly so when applied to a concept as intangible as brand management. A real understanding of branding, however, may require researchers to continually ask why some organizations are more successful than others in brand building (Urde, 2003). De Chernatony et al. (1998, p. 778) ultimately concluded that “brand success is a multi-dimensional construct comprising both business based and consumer based criteria”. Findings, of the Portsmouth University Business School, Portsmouth, UK research, showed that successful higher education institutions have some points in common: Table 2. Commonalities between Successful Institutions of Higher Education Evidence of association with a successfully branded university Support from leadership Clear vision Internal support (or “buy in”) Location – synergy with brand of city/town Use of public relations Possible association with a successfully branded university Number of marketing staff Individuals with brand guardian roles Brand has been researched and is understood Use of marketing communications Experiential aspect to brand IMPLICATIONS OF THE STUDY In summation, it appears that brand management has a role to play in relationship construction between the institution and key stakeholders, as well as increasing the exposure of the institution in the community it serves. The literature review highlighted a number of salient points. The study showed that there’s the need for a better understanding of the essence of a university brand. 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