Marketing Across Culture: Educational research into the Macro environments of Kenya and Chile

This report presents a marketing plan for the University of Hertfordshire and its Business School to expand its branches to Chile. It includes market analysis, SWOT analysis, and an outline of a marketing plan. The University aims to provide an international level of business education to the students of Chile to make them more prepared for the corporate world in the best possible manner and have a better future.

Running head: MARKETING ACROSS CULTURE
Marketing Across Culture: Educational research into the Macro environments of Kenya
and Chile
Name of the Student:
Name of the University:
Author note:

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Table of Contents
Introduction........................................................................................................................2
Market analysis..................................................................................................................2
SWOT analysis and findings.............................................................................................3
Outline of a marketing plan................................................................................................5
Conclusion.........................................................................................................................9
References.......................................................................................................................11
Appendix..........................................................................................................................12

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Introduction
Educational sector of Chile is quite developed and continuously growing. There
are scopes in the country for expanding the education and educational institutions. The
country not only has a stable economic condition among other countries in Latin
America and it also has improved technological infrastructures, which also helped in the
growth of the educational sector (Guzmán-Valenzuela and Barnett 2013). University of
Hertfordshire wants to expand its business school branch in Chile and wants to provide
the best possible international standard university business degrees to the students of
Chile. A marketing plan for the University of Hertfordshire and its Business School will
be presented in this report for the organization to expand its branches to Chile. The
paper will commence with the findings from the environment analysis of the country and
the findings, which will illustrate the opportunities and threats in the country that could
help the University while expanding its business in the education sector of Chile. It also
presents a marketing plan for the University of Hertfordshire and its business school to
open its branch in Chile.
Market analysis
According to a report by OECD (2016), the modern government places high
importance on growing the education sector. Initially, the public education was left
behind, however, in the past decades, the mindset changed and the opportunities and
infrastructures for the public education have grown substantially. With stable economy
and political scenario, Chile has become one of the most competitive, developed and
internationalized nations of Latin America (Ei.britishcouncil.org 2019). The government

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of Chile has focused on improving the skills and productivity of the younger population
to drive future growth of the economy, and thus, has been introducing many wide
ranging, international standard educational and economic reforms. However, the slower
pace of growth and dominance of private institutions in the education sector are driving
the interests of the students to go to abroad for higher studies.
It has been found that there are many reform actions undertaken for the growth
of the education sector in Chile. The government expenditure on the education sector is
increasing. In 2012-13, the Chilean government spent around USD 13billion, which is
around 6% of the total GDP and higher than 5.3% which is the OECD average
(Espinoza and Eduardo González 2013). The average spending per student is also
higher in Chile, around 56% from 2005 to 2012, which is much more than the OECD
average of 21% (Ei.britishcouncil.org 2019). Thus, it can be said that, there is scope for
investment in the education sector of Chile, which has the opportunity of greater
development.
SWOT analysis and findings
SWOT analysis has been performed to find out the internal environment of he
Chilean education system. External environment analysis for Chile and its education
sector has been conducted in the earlier research report. PEST analysis and Porter’s
five forces analyses have been conducted to find out the business condition in the
country and also in Kenya. The findings showed that Chile has better business
opportunities than in Kenya. It has been found from the macro environment analysis
that the education sector is more developed in Chile than in Kenya and the society puts

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more importance in education in Chile (Refer to Appendix). Moreover, the economy is
more stable and have better technological situation in Chile, which is beneficial for
establishing a branch of business school in Chile. A more in depth study of the strength,
weaknesses, opportunities and threats is presented below.
Strengths  Increasing government expenditure in the education sector
(Ei.britishcouncil.org 2019)
 Stable and growing economy
 Entry of many international universities and educational
organizations in Chile (Paulo et al. 2013)
 Improved technological infrastructure
Weaknesses  Slower growth rate of the educational reforms
 Lack of international level of infrastructure
 Dominance of private institutions making public education
expensive (Paulo et al. 2013)
Opportunities  Various educational reforms introduced by the government
leading to more investments
 Opportunities for foreign universities as the students are
aiming for higher studies in abroad
Threats  Public sector organizations are entering the educational sector
to provide cheaper public education.
 Loan schemes for the students are not favorable (Guzmán-
Valenzuela and Barnett 2013)

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Thus, from the above table it can be said that there is growth opportunities in the
education of Chile, which the University of Hertfordshire can explore and take
advantage of while establishing the new branch for business studies in Chile. It should
adopt a proper and accurate marketing technique to attract the general public, as well
as those students who want to go to abroad for higher studies. Providing an
international level of education and infrastructure is the main agenda of the University of
Hertfordshire.
Outline of a marketing plan
The outline of the marketing plan below is prepared for the University of
Hertfordshire to open its branch in Chile. The plan is based on the findings of the SWOT
analysis. The university will have courses that suit the feasibility of students belonging
to all economic classes and educational background. It will also have courses for the
executives with work experiences, who want to enhance their skills for a better job
opportunity. With the marketing plan, the university will reach out to its target market.
Mission:
University of Hertfordshire wants to provide an international level of business
education to the students of Chile to make them more prepared for the corporate world
in the best possible manner and have a better future.
Objectives:
 To develop an international level of business school infrastructure and curriculum
for the Chilean students for their better future

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 To provide the best possible graduate and post graduate business education to
the students belonging to all economic and social classes
 To create more employment opportunities for the students both domestically and
internationally
Target market:
Age group: 18 years to 30 years
Educational background:
1. All subjects
2. Both from public and private educational institutions
3. with all types of work experience
Economic background: all income groups
Nationality: Chilean and students from any other countries who have migrated to Chile
Creative messages and Positioning:
University of Hertfordshire will establish its campus in the capital city of Chile,
that is, Santiago. It is the most populous city of Chile. It is also the business capital of
Chile, with the best transport network. Thus, the new campus of Santiago will be most
profitable not only for the university but also for the students. The message that will be
put forward by the university will highlight the need of international standard business
education in Chile, which will prepare the students for national and international
employment opportunities and for a better future.

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Marketing mix:
Marketing mix refers to the combination of the factors of marketing to connect
with the target audience (Londhe 2014). As stated by Khan (2014), marketing mix is
beneficial for creating right marketing strategy for an organization. The 4P’s of
marketing mix will be followed for preparing the marketing mix for the University of
Hertfordshire. This will contain the combination of product, price, place and promotion
and this plan will help the university to put across their plan of opening an international
branch of their business school in Santiago.
 Product: The educational courses containing every relevant international level
business subjects and degrees that are industry specific. The courses are
designed as per the demand of the industries, and thus, these courses aim to
reduce the frictional unemployment in the economy. There will be various
combinations of subjects, such as, full time and part time courses, and
specializations, such as, HR, sales and marketing, accounts, finance etc. the
university will also courses for students coming from different educational
background, and the degrees will be graduate, post graduate and diploma. They
will also introduce student exchange programme with its other international
branches to give a practical international exposure to the Chilean students.
 Price: The University will design the courses with different course fee structure
so that students from all economic background can afford it. Although, Chile has
a stable economy, yet there are groups with low income to the high. Cheaper

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public education in the public educational institutes enables students belonging
to all economic classes to have a basic education. Thus, University of
Hertfordshire wants the students to continue their higher education so that they
become eligible for a job in the national as well as international job market.
Hence, the university has kept the course fees affordable in all the streams. It will
also provide scholarships to the students of lower income groups.
 Place: University of Hertfordshire has decided to open the campus in the prime
location of Santiago. This will keep the campus well connected from every place
in Chile, as Santiago has the best transport network in the country. The
population in this city is also the largest and hence, more people will be able to
notice the campus and be aware of the university. The capital city also comprises
of people of all income groups and hence, they can be targeted by the university
with their inclusive course programs.
 Promotion: This is the most important aspect of the marketing activities. To
reach out to a larger target audience, the university must engage in rigorous
promotional activities. It should create print and digital media campaigns
highlighting the course features and their benefits. Advertisements should be
published in the print media, such as, newspapers, magazines and fliers. There
should be billboards and hoardings. Digital media, such as, radio, television, and
social media, should be utilized thoroughly to get the maximum benefits. Along
with that, the university should organize educational events and fairs, provide
sponsorship events and also should provide the discount pricing for the courses.
There will be early bird discounts, for those who register the courses earlier, get

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a special lower price. There should also be reduced price offers for integrated
courses.
Market entry strategy
Since the University of Hertfordshire will enter the market of Chile for the first
time, it will follow the market entry strategies developed by Porter's. According to
Porter’s generic strategies, there are four different strategies, namely, cost leadership,
differentiation, cost focus and differentiation focus (Tanwar 2013). Under cost
leadership, the organization offers lowest price in the market to capture the new market
share, while under differentiation, the firm focuses on providing differentiated products
or services to a broad market. On the other hand, the cost and differentiation focus
strategies are meant for narrow market. In the case of the University of Hertfordshire in
Chile, the university will apply the differentiation focus strategy. By providing highly
specialized degree and diploma courses of an international level, which is the
competitive advantage factor for the university, it aims to cater to a narrow market, that
is, the students of higher education market are the target audience for the university.
Conclusion
From the above discussion, it can be concluded that, the University of
Hertfordshire has a new and opportunistic market in Chile to expand its branches. The
education sector of Chile is quite developed and the country has a stable economy and
improved technological infrastructure and hence, it is an emerging market. The
University of Hertfordshire aims to provide a better future to the Chilean students.
Through SWOT analysis, it has been found that the Chilean government is emphasizing

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on education sector reforms and thereby encouraging the investments from
international universities for growing its education sector. The University of Hertfordshire
wants to open its business school branch in the capital city of Chile, that is, Santiago.
By adopting the differentiation focus market entry strategy, the university will apply
appropriate marketing mix to address the target audience group, which comprises of the
students belonging to all economic classes and have any specialized degree or relevant
work experience. By offering courses with different subject combinations, as per the
industry needs and with affordable fee structure, the university wants to fulfill its
objectives of providing the highest quality of business course degree to the students of
Chile.

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References
Ei.britishcouncil.org, 2019. Education matters: Chile | Education Intelligence. [online]
Ei.britishcouncil.org. Available at: https://ei.britishcouncil.org/news/education-matters-
chile [Accessed 11 Jan. 2019].
Espinoza, Ó. and Eduardo González, L., 2013. Accreditation in higher education in
Chile: results and consequences. Quality Assurance in Education, 21(1), pp.20-38.
Guzmán-Valenzuela, C. and Barnett, R., 2013. Academic fragilities in a marketised age:
The case of Chile. British Journal of Educational Studies, 61(2), pp.203-220.
Khan, M.T., 2014. The concept of'marketing mix'and its elements (a conceptual review
paper). International journal of information, business and management, 6(2), p.95.
Londhe, B.R., 2014. Marketing mix for next generation marketing. Procedia Economics
and Finance, 11, pp.335-340.
Oecd.org, 2016. On public education in Chile. [online] Oecd.org. Available at:
http://www.oecd.org/education/on-public-education-in-chile.htm [Accessed 11 Jan.
2019].
Paulo, S., Francisco, B., Charlotte, D., Laura, G. and Deborah, N., 2013. OECD
Reviews of Evaluation and Assessment in Education Teacher Evaluation in Chile 2013.
OECD Publishing.
Tanwar, R., 2013. Porter’s generic competitive strategies. Journal of business and
management, 15(1), pp.11-17.

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Appendix
Macro analysis of Chile using PEST model:
Political environment: Chile has a very safe political environment. It has a stable
demographic system. Chile is also considered to have a very safe business
environment.
Economic environment: Chile experienced economic slowdown from 2015. Chile has
highest per capita GDP in Latin America. The tax system in Chile is not proper hence
there is many inequalities.
Social environment: Chile is considered to have meritocratic-oriented education
system. The entry in university is based on a single academic test. Also, there exists a
great class difference among people in Chile.
Technological environment: Chile has the most advanced technology in Latin
America. Chile has a very good electronic commerce and digitalization.
Porter’s five forces for Chile
Competitive rivalry in Chile: Chile has wide number of institutions some of them are
state institutions and some of them are private. Even in this country also many
universities have older history, but they are in leading ranks .60% of students in Chile
prefer state universities and remaining prefer private universities. Some of the major

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institutions in Chile are University of Chile, Pontifical catholic university, University of
Santiago, etc
Buying power-student in Chile: In Chile many international students were from its
neighbouring countries like Peru, Colombia, Ecuador and Bolivia. Undergraduate
courses were popular among International students, led by business degrees.
Exchange student enrolments also rose in 2016. 76.5% students were from South
America. Chile prefer exchange student policy with USA and European countries like
Spain, France etc. University of Chile and Pontifical catholic university of Chile were the
top receivers of both International and exchange students.”
Threat of substitution: A threat of substitutes exists when a product demand is
affected by the price or quality change of substitute. Products price elasticity is
affected by substitute products because as more substitutes become available, the
demand becomes more elastic since consumers have more alternatives. A nearby
substitute item compels the capacity of firms in an industry to raise costs.
Threat of new entry: The likelihood that new firms may enter the business
influences rivalry. Obstructions decrease the rate of section of new firms,
subsequently keeping up a level of benefits for those as of now in the business.
From a vital point of view, hindrances can be made or abused to improve an
association's upper hand. This affects for universities also. As in Kenya the research
made by British council (5.7 million college-aged students by 2024) may be viewed

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by many universities in world. So, there are many possibilities that wide range of
universities may target Kenya. On the other hand, for Chile has only less
possibilities.
Opportunities and threats:
Opportunities in Chile: During 1990 - 2006 is a dramatic increase in the tertiary
education sector. The major factor is the rapid growth in people successfully completing
secondary education, statistics show the percentage of 20-24-year-old has at least
secondary education qualification rose from 52% to 80%. Another important factor is
participation in tertiary education in recent years has been due to Chilean government
policy to encourage in the private sector. people in the tertiary sector education is three
times during the last decade.
Threats in Chile: The major threat in Chilean tertiary education sector is that the
government is losing its grip to steer the policies of higher education and is diminishing
substantially. and the introduction of the new student loan scheme at this decisive
moment led to universities lost their enthusiasm with the government, in enabling new
quality agency.

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Marketing theories
Segmentation
The county is located on the western coast of south America. Chile has a mass of
15,017,800 tenants (from a June 1999 check) with a yearly improvement rate of 1.8
percent. The national masses thickness is 46.5 individuals for each square mile. Pretty
much six million people live in the metropolitan region of Santiago, while the northern
and southern zones are insufficiently populated. The counties student population has
been diversified into 2 categories i.e. once who get public education (79%) and the
others who have private education (21%). It’s been a rise in their student population
from compared to the last years. In 2012 the youth’s literacy rate was around 98.9%,
which supports the undergraduate courses and post graduate courses.
Targeting
Targeting means to focus on a particular type of people for sale. In this case we would
target all the students who fall in age range of 18-30. People who would still like to
learn would be our customers. The university can provide them with the best
knowledge and help creating a better future for the students.
The target market would be the all the students who wish to study and could pay the
fees of the universities.
Positioning
The best place for university positioning in Chile would be its capital. Santiago is the
capital of Chile and has most of the population located near it. Santiago is the main

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hub for business in the country, which can help business school to get some practical
knowledge.
Porter's generic strategies
Figure 1: Porter's generic strategies
(Source: Tanwar 2013)