Market Research for the New Course of Education in Latvia

by Toms Urdze, Latvian National Project group

Introduction

The marketing strategy was developed by the consultancy agency “Agenda” in Autumn 2002. The given task was to investigate target groups and their needs regarding the new course of education, to look at possible competitors, and develop proposals as to how the new course should be marketed in order to start in 2003.
The result is a document which provides interesting insights into adult education marketing, and has been used by us as a basis for marketing activities regarding theû new course of education. In the following you will find excerpts from this document, which show the most interesting aspects and main conclusions of this research.

New Course of Education

The new course should be adjusted to target two segments of the market: the first group is budget institutions and the second – commercial structures. The adjustment is connected with terminology. A course of education being implemented in structures with teachers, trainers, social workers, methodologists and other specialists directly involved in social and pedagogical processes will recognise their programme with terms such as “study aid”, “basics of adult education”, “planning of study program”, etc. But commercial structures will use terminology such as “education”, “training”, “planning”, “goals”, “selling’, “management”, “personal management”, “investment and payment”, “effective time planning”, “profit”.

Methodology

During the first investigation stage information was gathered and summarised according to a qualitative investigation method:

• By interviewing people;
  
• By summarising information from the Internet, leading media, advertisements and informative material.

Formulation of the Demand

Demand is the buyers’ need and wish to buy a certain service. In cases when buyers are not aware of the need for the service, the service supplier must carry out longer and more intensive introduction work and to form the demand. The quality of the service is a guaranty for the demand. Main buyers’ criteria are:

• Benefit that a buyer wishes to get as a result of using the service;
  
• Difference from other products;
  
• Market preparedness;
  
• Public social readiness;
  
• Market density.

Questionnaire

Questions of the questionnaire:

What do you know about adult education?
What do you associate with adult education?
Do you support additional education of your staff?
What educational forms does your company support financially (academic education, vocational education, courses, seminars etc.)?

What companies are you cooperating with in order to increase the qualifications of your staff?
What themes are financially supported to increase the qualifications of the staff?
How much money from your budget do you earmark for the additional education of your staff?
Does your staff willingly go on the paid courses?

Is the staff involved in payment for the courses/training?
Does the staff willingly pay for the training organised by the company?
Does the time and place of training influence your choice?
For what sort of educational content has your company foreseen budget means for the next six months?
What skills and knowledge are topical for your staff over the next six months?

Results of the Questionnaire

Management of State Structures (state financing)
Since in many regions there are adult education centres, state structure managers (representatives of regional city councils) are more or less acquainted with the adult education work in respective regions. Adult education is associated with state programmes and projects that have social value. In interviews state structure managers show a positive attitude and express an interest in various opportunities to educate their staff, although they are not ready to finance the education expenses. Need does not correspond to opportunities.

Managers think that there are too many offers of various educational programmes and it is difficult to decide which of the commercial offers are better than the others.
Local governments usually utilise programmes financed in the framework of various projects and only then do they finance their own courses, which are compulsory. Here belong programmes connected with introduction of new laws. And the third category is connected to the vocational and higher education of staff – specialists, which are fully or partly paid by local governments. And only in the last instance are there additional courses or training.

When assigning the financing for studies, local government managers are influenced by whether or not the study programme is accredited, for example, by the University of Latvia. This is connected to the fact that finances come from the state and there is a serious argumentation needed for the additional education of a staff member.

State structures make use of opportunities to educate their staff by involving them in projects that have special financing, for example, in projects financed by the Ministry of Welfare. Managers of state structures acknowledged that in regard to education they depend on concepts and priorities set by the state; thus they are not always able to realise their personal wishes.

With the onset of winter, finances are earmarked for the payment of heating, thus delaying educational and other issues. Economic issues have priority (Latgale region). If education timing were influencing working time the manager would support cases where he considers the training to be important for enhance the quality of staff carrying out their direct tasks.

Main criteria for choosing the education theme – whether or not there will be an improvement of staff carrying out their direct tasks. State institutions are more open for offers that are connected with the improvement of the social sphere. Choice criteria – increase of professionalism, improvement of social environment, improvement of cultural level, decrease of unemployment, increase of social activity of the staff, increase of responsibility of the staff.

Most frequently mentioned and most popular are higher education institutions where local government staff study and which are supported by the state budget: the University of Latvia, Attîstîba, Riga Pedagogic and Management High school and others.

Projects: Phare, Ministry of Welfare, Ministry of Education and Science, others.
Most active period for study programme buying is September – April. Regions and cities, private structures and state institutions have different requirements regarding study duration and time.

2,- LVL (lats) a year are earmarked in the state budget for one basic school and gymnasium teacher for additional education. Nevertheless, it is not always used. In the Latgale region, local government managers are not active financiers of educational and social programmes because they are afraid to show that it is possible to find financing in a local budget. They would like to preserve the existing attitude – that Latgale is a deprived region with difficult conditions. Their attitude – various funds and programmes are there to help.

Private Enterprises, SIA, A/S (commercial structures)
Representatives of private structures were unwilling to participate in the questionnaire, using limited time as an excuse. They also tried to avoid giving information about the budgets that are used for staff education, considering this to be confidential information. Enterprises’ managers were willing to share their information only if it remained confidential.

Managers of commercial structures have heard the name “adult education” from the media and they associate it mainly with the improvement of the state education system. For managers of commercial structures, “adult education” is associated with evening schools, re-qualification of the unemployed, or at best – with evening studies in high schools. Meanwhile, there exist state programmes and projects financed by international organisations and those that are meant for improving the social environment.

Few respondents expressed their view that language and other courses also should qualify as adult education.

Business representatives evaluate education offers mainly according to the following criteria: What will be the benefit for their business, what will be the financial profit?
Training is considered to be as an instrument for increasing competence levels. Basic criteria for choice – how big will be the increase of company’s profit and competence ability be within the market? Enterprise managers think that there is a rather large number of offers regarding training and education. Company managers consider in-office education as a positive element. As a positive example a company was mentioned which offered training 2 times a week 2 hours early in the morning. Thus there is no interference with direct job tasks.

70% of respondents from enterprise representatives do not support the financing of first higher education from the company’s budget.
Businessmen consider it important to invest in the following courses: sales, management, stress management, work-planning. They think there might be even other themes of interest, but everything depends on the offer.

One section of the respondents thinks that the companies supplying education should be changed and the other section – that a cooperation should be established with the same company. Managers of enterprises did not want to reveal how much of the budget is earmarked for staff education. Nevertheless, all managers stated that training in selling are organised at least once a year, most often at the beginning of the business season. All respondents answered that training/courses are finished by the end of a year.

Each company has its own strategy regarding staff training. In companies where there is rapid personal exchange, managers of structural units are trained to be able to pass their knowledge on to their working groups. Usually, there is large exchange of sales managers. Business representatives mention price as the 3rd or 4th criteria. The main thing is – the benefit they will get for the price.

Choosing the service the first question is – what is the content of the education? The second – what will be the benefit? Other questions – what is company’s experience in the respective field, how long and with what other companies it has worked until now, are there recommendations available from respected companies? Has the offered education been implemented in other companies of the same branch? What are the teachers – their qualification, certificates, where they have studied – sometimes a CV is required.

The companies who participated in the questionnaire organise their staff training regularly. There are managers who always use the same education company and there are managers who choose to change the company performing their staff education. During first 2–3 years more financial means are invested in sales and management programmes; later ISO and other certification issues become important as well. All that increases the value of the enterprise.

Criteria for Choosing Additional Education for Individuals
People willingly go on courses and training financed by the employer.
They pay personally for education that directly influences their opportunities of finding a better job, one that corresponds better to their interests and/or one with a bigger salary.
To increase their ability to compete in the labour market.
To get a certificate or diploma recognised in the Latvian and world markets.
They wish to acquire practical skills that are both offered by the University of Latvia and others.

Conclusion

The results of this investigation proved that that the educational segment is active both in regards to supply and demand. There is a significant competence where supply is considerably bigger than demand. Nevertheless, the business environment in Latvia is developing and is not static; therefore one may anticipate that by implementing active channelling methods for the new course of education it will be possible to reach the desired result. The new course is not among the first necessity services, so the most effective method for reaching the desired goals is active sale, with the service provider going to the client and convincing them of the service advantages. The set goal – to form a group of 20 persons – is realistic.

Judging by the market situation, one has to admit that in terms of content the demand for the new course of education is greater in structures where pedagogical work or work connected with that has been implemented – on school boards, in education centres, in local government structures. Yet these structures have financial obstacles that hinder their needs being satisfied. Judging from this aspect, commercial structures are more realistic service buyers. When channelling service in commercial structures, the main task is to adapt the programme to the needs of commercial structures.

Local government structures should be offered a very attractive price. The following content is needed for commercial structures.

Product Implementation

Problems and Solutions
By organising inquiries and analysing education supply in the market, one may conclude that no intensive demand exists for adult education programmes. Reason – too little information on programme content and insufficient information on adult education in general.

Adult education centres very often include in their names a word “support” – for example, “Adult Education and Support Centres”. This gives rise to the view in society that adult education is social help for individuals in need.

On the other hand, for example, the further education system has gained popularity and recognition within just a couple of years. Further education as a type of education is positioned as an opportunity and service for clients’ convenience.
Because the significance and need of adult education is not appreciated, the potential client “does not find” the financing for this service. State-funded institutions consider it a social support, but commercial structures evaluate this as an opportunity to develop their business.

Solution – to implement informative advertising and public opinion-forming activities in an active and well-planned manner.
One should be aware that presentations and direct sale would not bring about immediate results. Hundreds of contacts are needed during presentations and thousands with the help of media that may not bring about immediate results in the first stage.

In order for the new course of education to gain sustainable positive development an adult education image has to be created. The public should be informed about the opportunities and world experience on demand and the results of this kind of study. Planned PR activities and popularisation of the education should be implemented at least for two years until there is a noticeable change in public attitude and information level.

Service Channelling in the Market, Informing the Public
The new course of education should be positioned as differing from others being offered at the moment.

In publications and interviews the new course should be positioned as a significant programme that offers the individual a chance to raise his or her level of education.
One of the ways to popularise is to form a direct link with development programmes/plans where the development of human resources is included.
For the state structure to stress the motivation: “the thought of mission”, social aspect, for example, socially active population, civil participation, self-confidence, adult education as a means of widening one’s opportunities.

The stress should be put on the importance of a certificate; practical usefulness should be stressed.
Clients should be gained by decreasing the competitor’s share of the market; own clients should be established.
Strategic information should be placed where the target audience can get acquainted with it. One should choose media trusted by clients.
In order to implement the programme, active PR should be organised – influencing public opinion.

In order to influence public opinion we should use the European experience in introducing adult education, to carry out purposeful and patient work.
Information activities should be implemented with the help of the media, theme exhibitions, presentations and e-mail. Less attractive (because of expenses since it a large number of contacts to get the necessary feedback is required) is information through the post.

Postal services are used to send personal invitations.

Method and Tactics of Activities
In order to realise the set goals, most suitable activity forms and methods are presentations, direct sale and personal contacts. With the aid of presentations the target audience is introduced to the material, but this method may not bring about immediate results. The main benefit of presentations is a wide target audience information, the influencing of publicity and client preparation for the deal. The advantage of the direct sale is effective influencing of the clients to buy the product, development of personal contacts and immediate clarification of unclear questions and programme adaptation to the needs of the client. Direct sale disadvantages are rather large expenses, a small number of contacts over a comparatively long period of time, slow influence of the public.

Benefits for Programme Users
New education has practical utilisation value;
Participants will gain an education corresponding to modern requirements, one based on international experience, on completing their studies, the participants will get a certificate;
Before and after the studies participants fill in a test that helps evaluate knowledge gained during the studies;
Staff members will be able to pass on their knowledge in a methodically correct and effective manner, available price; individual approach to each company.

Criteria for Choosing the Product
How the offer coincides with the company’s needs, presentation effectiveness, response and recommendations, result gained during the process of the studies, information in the media, popularity.

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