University challenge

Private universities are spending heavily on advertising to draw new students who can still afford tuition fees that are much higher than at state-run institutes
Thirteen private universities have spent more than Bt100 million on advertising in the first four months of this year, as part of the Bt1 billion spent on advertising in the past four years, according to a MindShare (Media Agencies) survey. The survey, covering ad spending of 118 private, state-run and international universities, showed that the money had gone to every media, but TV ads have been the most popular this year. The University of the Thai Chamber of Commerce was ranked as the biggest spender for the first four months, accounting for Bt21.3 million or 13 per cent of the industry's total ad spending. Bangkok University was in second place with Bt19.89 million, or a 12-per-cent share, followed by Mahanakorn University of Technology with Bt12.44 million, or 8 per cent. The figures showed how fierce the private-university market has become, especially amid the economic slowdown, which has lowered purchasing power and could lead to a drop in enrolments. Those who cannot afford high tuition fees are flocking to Ramkhamhaeng University and Sukhothai Thammathirat University or other state institutions which are less popular, such as Rajabhat University. Still, many parents and students prefer to pay higher fees in the belief that a better educational institution promises better job opportunity. To attract those who can still afford the tuition fees, Bangkok University, the University of the Thai Chamber of Commerce, Kasem Bundit University and Mahanakorn University of Technology have placed ads on the air, some during prime time, and more are expected, to entice approximately 40,000 students who failed the national entrance examination to state universities. Kasem Bundit University, the seventh largest ad spender, has promoted itself most frequently on television since the middle of April. Its spending hit Bt6.43 million for the first four months, of which Bt2 million was poured into TV ads in April alone. Kasem Bundit has focused on the university's atmosphere, campus life and information about new curricula with potential to meet the demand of the labour market. Examples of those subjects are the aviation business and film studies. "We believe the variety of subjects, which are now of interest to many students, will attract them to study with us," said Dr Senee Suwandee, vice president for planning and development. "What we do is to select the proper time to launch in each medium," Senee added. The vice president said that students who were disappointed with their admission test results would look for other places to study. "So we believe this time [April to May] is best to promote ourselves on TV. Just 30 seconds is enough to display how campus life is," he said. However, he said the university would not focus on one particular medium, looking also to radio, newspapers and outdoor sites. According to MindShare's survey, Bangkok University spent almost Bt8 million on TV ads, followed by the University of the Thai Chamber of Commerce with Bt4.62 million. Mahanakorn University of Technology spent Bt3.22 million on TV advertising in April, compared to Bt4.3 million in the previous month. The education industry is now focusing on brand-building to survive in a rapidly changing business world, said Danai Chanchaochai, CEO of MDK Thailand. "TV is good for immediate sales and immediate results," said Danai. He said the universities had concentrated on brand-building as they wanted to stand on their own feet. "With rapid changes, organisations can suffer if they are not in customers' minds," he said. He added that what the universities have done about advertisements was the same as the banking industry and healthcare. Many universities seem to change their strategy year by year. Some opt for Internet advertising and short messages via mobile phones to directly target students. Dhurakij Pundit University's marketing strategy for this year has not relied much on mainstream media. Kanokporn Pinpang, director of Marketing Communication at Dhurakij Pundit, said it had focused more on direct marketing through events or activities at schools. "From an evaluation we did with new students from previous years, we found that students decided to study with us from what we presented in road shows or in open-house activities," she said. This year the university invited students to spend time inside the university so they could experience the atmosphere of the campus, but also to promote the curriculum. At the same time they got a chance to meet teachers and senior students. Sripatum University, a leading private university, has launched advertisements in a daily newspaper. Assumption University only uses the print media to approach students and parents. "The university has no policy to use other media except print, and the ad content must be in an announcement format," said a source at Assumption. But this does not mean the university will do little to draw new students. It offers scholarships and a fee moratorium. Meanwhile, Rangsit University, one of the country's best-known private universities for architecture and medicine, has not spent any money on TV ads in the first four months, though it ranked 8th with Bt5.89 million spent during that period. Rangsit has shifted its ad budget from TV to the Internet, short messages via mobile phones and radio, said public-relations director Somkeit Rungruangviriya. He added that the university was now opening a live chat room for inquiries. Somkeit explained that the telephone numbers of students were collected from a database gathered on the university's road show. Danai suggested that universities should not exploit advertising to promote their reputations. Pinpang from Dhurakij Pundit University said small universities might set goals that matched their status rather than trying to compete with the big universities. "They might adapt to serve the community around the campus and build a reputation on that," she said. "Money does not guarantee any success'" Senee of Kasem Bundit added that small universities might go for new subjects unique in the market and use them as selling points. However, no matter what strategies the universities use, the most important tool affecting the decision of students is the quality of the institute itself. "You can use anything to promote your university, your staff, or your students, but in the end the quality of your university is the deciding factor," says Somkeit of RSU. On-usa Lamliengpol, CEO of Leo Burnett and Arc Worldwide (Thailand), said TV ads were too costly. In her opinion, direct selling and road shows were more suitable for universities. That will probably be the case next year, but the competition between universities will never end as long as tens of thousands of students cannot find a place at popular state universities each year.
Watchara Saengsrisin The Nation
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