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[this is an example of the documentation produced for a new OU course]
7186 MA (Marketing) Marketing Enquirers
07/09/00
COMMENTS ON THE JULY 2000 RESEARCH OF MASTERS IN MARKETING ENQUIRERS - David Mercer (7 September 2000)
My thanks to Karen for passing on the results of this research undertaken in July; and herewith my initial observations.
As you might expect, especially during the holiday period, the main feature was the non-responses (at two thirds of the overall sample). Taking the 106 responses which were available, however, I have tried to cluster them into larger categories:
Likely MM students (booked and considering) 14%
Likely future MM students 13%
Total MM 27%
Not PgDip Qualified [a] 28%
MBA/OU students 9%
Already chosen to study elsewhere [b] 4%
Dubious about distance learning [c] 17%
Cost problems [d] 14%
Total Non MM 44%
The most important test is to apply these proportions to the overall enquirer numbers (quoted by our recent OUBS press release as 600), in order to give an initial feel for likely numbers on the programme:
Likely MM students (booked and considering) 84
Likely future MM students 78
Total MM 162
Not PgDip Qualified 168
MBA/OU students 54
Already chosen to study elsewhere 24
Dubious about distance learning 102
Cost problems 84
Total Non MM 264
Beyond this I am nervous about drawing any conclusions, since I have not been involved in any of the activities, or have even been informed about them; since I finalised the deal with CIM in the middle of last year and authority and responsibility passed to Marketing (under the guidance of the Masters Programme team).
But ignorance has never stopped me commenting before; so:
1) Disappointing Numbers? - As the target was reduced to 30, even before the recruitment campaign started (and even before we realised the shortfall in mailing numbers), the likely outcome of three times that number surely should not be seen as any failure. Indeed, if the Blueprint figures are correct, even running at this level will result in an extra contribution of around £250,000 per annum to OUBS profitability!
2) Managed Target Levels - In fact - presumably as a result of the revised target - we have manifestly chosen not to, or failed to, undertake the originally agreed promotional activity. You will remember that, although already watered down, the statement in the Blueprint was:
"One benefit of the tightly focused target audience will be that a very focused promotional campaign will be possible; and – as agreed with the marketing team - this will accordingly be especially cost-effective. Even though the usual OUBS model would allow up to £250,000 per annum, the marketing team is only budgeting for the maximum of £100,000 shown in the earlier financial breakdowns. The most focused elements of this will include closely targeted direct mail, using the CIM membership lists, and limited trade press (especially the CIM's own journal). The wider audience will initially be addressed by PR (jointly undertaken by OUBS and CIM), backed up by shared (OUBS) brand advertising."
As far as I am aware, the reality has only been three advertisements in Marketing Business (which, as a member of CIM, I have seen) - presumably backed up by a limited mailing, which I have not seen (except for the prospectus which I was able to pick up in reception). This compares with the major feature, splashed across several pages which was planned, and the ads in the other marketing press (and possibly the national press) promised when it was realised that the mailings would be limited. The PR to date has been two short paragraphs rather than - at least - the several pages long article which was agreed with CIM. It is not clear where even the reduced £100,000 budget has gone.
The ad was undoubtedly striking, but it was very short on information (and hence the enquiries from the non-qualifiers). This was perhaps unfortunate, where (since the 'product' was, in general, new to the world) the first marketing task should be to inform the audience; and, of course, PR should also play a vital role in this task.
All of this will not matter, as long as we accept that this is only a pilot - with the numbers deliberately held back to minimise risk and to allow leeway for all the work on the Certificate; and undertake all these activities - in full - for the second cohort.
3) Additional Observations - After taking into account the low levels overall, there are still a number of interesting observations. Not the least of these is that, despite the 'number of other providers', these [b] only account for 4%, compared with 14% for OUBS - indicating that our offering would have, as we expected, by the largest population of any in the UK. In terms of the message, the problems about distance learning [c], which seem to be the major turn-off, were not addressed (as perhaps they should have been for a new to the world product) by the very limited advertising message. The other problem, price [c], perhaps needs further investigation; where we were considering reducing the programme price to take account of this problem. In fact, the impact seems to be lower than we might have expected, and the evidence suggests we perhaps should not do this.
4) Next Cohort Promotional Activity - As currently planned, the next cohort will start in 2001K; and, in the new programme format, it will start with B851 - and this will also have the benefit of increasing the numbers on this MM only course to a more viable level. As this will not be a pilot, but the first 'production run', I enthusiastically agree with Karen's suggestion that we should undertake at least some of the other promotional activities we promised for the current cohort, including:
i) Marketing Business - The promised multi-page spreads, giving much more (editorialised) details, should be reinstated; and should be supported by drop-outs to simulate some of the missing mailings.
ii) Trade Press - the agreed ads in Marketing, Marketing Week, Campaign etc should also be reinstated - as well as possibly some of those discussed for the national press - again with more detail (befitting a new to the world product).
iii) PR - A significant relaunch campaign should be undertaken, not least by holding CIM to their promises.
iv) Launch Meetings - with CDNext out of the way, we might also consider regional launch meetings.
5) Certificate Holders - We should immediately follow up those not holding the PgDip [a], to undertake the planned research on these. As discussed within the Masters Programme, we should plan on bringing in the previous group of CIM Diploma holders, subject to the suitability clauses (similar to the MBA), since all the anecdotal evidence we have indicates that most of these will be suitable for the programme (especially with B851 now handling the entry point); and this research indicates that, as we expected, that this might treble the overall numbers (and bring in up to £2m extra net contribution per annum).
My, possibly uninformed, view is therefore, that these results are NOT disappointing - given our deliberate self-imposed limits on marketing activity. Indeed, if we undertake the full range of marketing activities (still keeping well within the £100,000 budget), and extend the pre-requisites to include suitable CIM Diploma candidates, there could be every chance of hitting what was thought to be very ambitious 300 head per annum target for the ongoing running rate in the presentations starting in 2001K - and this level might even grow to 600 or more per annum (if we provide two starting points a year).
COURSE PRODUCTION STATUS
On a more mundane level, development and production is going well. We already have around two thirds of the content of B851 ready for development testers; and this covers all the critical leading edge material we were worried might pose problems. We are, therefore, confident that the course will be delivered on time and to the requisite standards - despite it comprising all new material rather than repackaged material as originally planned. We have even been able to include the use of developmental testing; though this does now represent the critical path but still giving acceptable finish dates). The other potential bottleneck, that of the editor completing 15 units in 7 months, has now been resolved by the introduction of a second editor.
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