iv

TABLE OF CONTENT
ACKNOWLEDGEMENTS i
ABSTRACT ii
TÓM TẮT iii
TABLE OF CONTENT iv
LIST OF FIGURES vii
LIST OF ABBREVIATIONS viii
INTRODUCTION 1
1. Rationale 1
2. Objectives of the study 2
3. Scopes of the study 2
4. Methodology of the study 3
5. Structure of the study 3
CHAPTER 1: A THEORETICAL BACKGROUND OF SERVICE
MARKETING, MARKETING IN EDUCATION, AND MARKETING IN
OVERSEAS EDUCATION SERVICE 5
A . OVERVIEW OF OVERSEAS STUDY OF VIETAM 5
B. THEORETICAL BACKGROUND 7
1.1. An overview of service marketing 7
1.1.1. Concept of service marketing 8
1.1.2. Fundamentals of service marketing 11
1.2. An overview of marketing in overseas education services 25
1.2.1. International Education services 25
1.2.2. Marketing in international education 26
1.2.3. Education agents 27
1.2.4. The role of agents 29
1.3. Marketing communication: Channels and promotion tools 31
1.4. Typical marketing tools used by OSC……………………………… …… 36
1.5. Proposed model 47

3.2.1. A solution to Tool 1- Direct mail 80
vi

3.2.2. Solution for Tool 2 - Advertising 75
3.2.3. Solutions for Tool 3 – Education fairs 77
3.2.4. Solution for Tool 4 - Direct consultancy and recruitment 80
3.2.5.Solution for Tool 5 – Websites 80
3.2.6. Solution for Tool 6 - Banner advertising 82
3.2.7.Solution for Tool 7 – Listings 84
3.2.8. Solution for Tool 8 – Email marketing 84
3.2.9. Solution for Tool 9 - Seminars 85
3.2.10. Solution for Tool 10 - Pr 86
3.2.11. Solution for Tool 11 – Tele marketing 87
3.3. Expansion and renovation of other types of marketing tools 90
3.3.1. Street banner advertising 96
3.3.2. Introduction to friends, relatives, acquaintances (words of mouth advertising) 90
3.3.3. Old customer care 91
3.3.4. Overseas study links 92
3.3.6. English center 92
CONCLUSIONS 94
REFERENCES 96
APPENDIX 110 vii

LIST OF FIGURES

D R&C: Direct recruitment and consultants
FTU: Foreign Trade University
IIE: International Education Institution
MOET: Ministry of Education and Training
OECD: Organization for Economic Cooperation and Development
OSC: Overseas Study Consultants
PPC: Pay per click
PR: Public Relations
SEO Search Engine Optimization
VEF: Vietnam Education Foundation
VIED: Vietnam International Education Development
WOM: Word of mouth
1

INTRODUCTION
1. Rationale
Overseas education has become increasingly popular in recent years as it is viewed
as offering the student likelihood of better future employment. It is the undeniable
benefits of the abroad study and the much improved living standards of Vietnamese
people that make overseas study on the rise. In the context of international
economic integrations, overseas study has gone beyond the traditional limit in the
educational sector and become a lucrative business for overseas education
consultants (OSC).
The overseas study consulting market in Vietnam is highly competitive. Hundreds
of education consulting centers and non-profit organizations are operating in big
cities. Regrettably, the increasing number of students studying overseas has not
received a much needed concern from authorities. In Hanoi alone, not least to say in
Vietnam, there has not been official statistics of the number of students studying
overseas, education markets for Vietnamese students as well as the number and
effectiveness of OSC.

prestige of OSC in Vietnam‘s educational market.
3. Scopes of the study
Because of time constraint and limited ability of the author, a survey of 9 typical
OSC in Hanoi is conducted. With regard to students answering the questionnaire,
they are 100 senior students from Departments of External Economics, Business
Administration and Finance and Banking of FTU where the author is working and
200 senior students from FPT and Thang Long University.
It should be taken into account that FTU is a well established university which is
dubbed as Vietnam Harvard while Thang Long is the first private university which
has won recognition for the quality of teaching and studying and FPT is an
emerging private university which is backed up by the famous FPT group. These
3

universities, in the author's observation, have a high rate of students wishing to
study abroad.
It should also be noted that the object of the study are university students rather than
high school students. Furthermore, the concept of customers here refers to students
who want to study overseas. It is hoped that in the near future, with a larger budget
of time, a larger-scaled study which covers a wide variety of objects will be
conducted to find more comprehensive solutions to improving the effectiveness of
OSC.
4. Methodology of the study
The method of analysis, synthesis, comparison, interpretation, induction and socio
investigation are employed in the study.
Based on the theoretical background that has been mentioned in the study, 11
marketing tools will be included in the survey questionnaires for students and
marketing staff and leaders of 9 OSC. Questions will be from general to specific to
find out the popularity of marketing tools, the effectiveness of each tool in the eyes
of both OSC and students.
Survey and interview results are given in the form of figures to compare the

5

CHAPTER 1: A THEORETICAL BACKGROUND OF SERVICE
MARKETING, MARKETING IN EDUCATION, AND MARKETING IN
OVERSEAS EDUCATION SERVICE
AN OVERVIEW OF OVERSEAS STUDY OF VIETNAM
There are an increasing number of types of scholarship available to study overseas.
Each year there are approximately 25 U.S. Government Fulbright Fellowships and
around 40-50 U.S. Government Vietnam Education Foundation (VEF) Fellowships
available for masters degree students only. Additionally there are approximately 10
Canadian government scholarships, 70 scholarships to study in the UK, 200
scholarships for study in France, 150 for study in Australia, 70 short-term and 10
long-term scholarships in Thailand. A large number of additional students receive
scholarships directly from universities, nongovernmental organizations, foundations
and other bodies. The Vietnamese Government through MOET also has a program
to approve approximately 400 scholarships for state workers to study abroad to
improve their skills. In 2009, the Vietnam International Education Development
(VIED - replaced the Management Committee of Project 322), on behalf of
Ministry of Education and Training (MOET), select and award many scholarships
for studies overseas. These scholarships comprise the following:
 500 scholarships for full time doctoral study overseas,
 200 scholarships for full time masters study overseas,
 30 scholarships for short term training courses overseas,
 100 scholarships for doctoral and master study at joint programs,
 About 150 scholarships for undergraduate study overseas.
Another estimated 20,000 students are studying abroad each year on institutional
scholarships or on their own finances. These figures are further growing yearly as

and the school and the opportunities to go oversea to study by themselves. In
addition, the oversea-study exhibitions organized by the educational institutions
7

have provided opportunities to the student and introduced the student to ways to
assess the foreign educational institutes by themselves. This has also increased price
competition in the market.
One thing worth noticing is the commitment of Vietnam to WTO on services of
higher education, adult education which allows Vietnam to set up joint venture,
allowing the majority foreign ownership in venture capital in January / 2007; after
1/1/2009 it would allow the establishment of training institutions with 100% foreign
investment capital (other educational services such as undergraduate education has
not been committed).
After 3 years from the date of accession, the education service will not be restricted,
which means that it would be easier for students if they want to participate in an
international in country or a joint training program instead of going to study abroad.
Then the OSC have to compete with each other internally but also with international
institutions and joint training programs.
However, study abroad with its own characteristics and prominent advantages such
as a professional learning environment can certainly attract many students. In the
coming time, there will be many challenges and opportunities facing OSC; therefore
there should be solutions to improving marketing tools in order to help consultants
to better cope with challenges and seize opportunities in the present as well as in the
future.
B. THEORETICAL BACKGROUND
1.1. An overview of service marketing
1.1.1. Concept of service marketing
1.1.1.1. Concept of service
Put in the simplest terms, services are deeds, processes and performances.
Generally, services are not tangible things that can be touched, seen and felt but

services of value with others." [72]
9

Because marketing activities bring about exchanges, marketing is an essential
function in an economic system. In a free-enterprise economy, resources are
allocated by interaction of supply and demand in the marketplace. Marketing
activities and institutions' provide the framework and mechanisms for this
interaction and exchange taking place.
Although the business aspects of marketing are important, business-oriented
definitions of marketing have been challenged. Critics observe that marketing
involves a wide range of activities and organizations and should be viewed from a
broader perspective. These critics point out that marketing takes place in not-for-
profit organizations, such as hospitals, universities, and social and government
agencies. New applications of marketing are further evidence of its growing
importance in our society. Any definition must recognize that marketing is a
fundamental human activity and that marketing decisions affect everyone's warfare.
The American Marketing Association (AMA) provides a definition of marketing in
its broader context: "Marketing is the process of planning and executing the
conception, pricing, promotion, and distribution of ideas, goods, and services to
create exchanges that satisfy individual and organization goals"
By including exchange as part of the definition, the AMA has expanded the
marketing process to include all types of organizations. This broadened or generic
view of marketing recognizes the importance and application of marketing to not-
for-profit organizations and situations. As in for non-profit businesses, a careful
planned and coordinated marketing program can help a not-for profit organizations
reach its goals, whether they are to attract more members, to increase donations, or
to provide better client services.
Importance of Marketing
According to Blythe, (2005) marketing is the management process which identifies,
anticipates, and supplies customer requirements efficiently and profitably [15].

service and follow-through are keys to a successful venture.
11

1.1.2. Fundamentals of service marketing
1.1.2.1. Characteristics of service: The services have unique characteristics which
make them different from that of goods. The most common characteristics of
services are:
Intangibility.
Inseparability.
Perish ability.
Variability
Intangibility
Services are activities performed by the provider, unlike physical products they
cannot be seen, tasted, felt, heard or smelt before they are consumed. Since, services
are not tangible; they do not have features that appeal to the customers' senses.
Their evaluation, unlike goods, is not possible before actual purchase and
consumption. The marketer of service cannot rely on product-based clues that the
buyer generally employs in alternative evaluation prior to purchase. So, as a result
of this, the services are not known to the customer before they take them. The
service provider has to follow certain things to improve the confidence of the client:
The provider can try to increase the tangibility of services. For example, by
displaying a plastic or a clay model showing patients an expected state after a
plastic surgery. The provider can emphasize on the benefits of the service rather
than just describing the features.
Not all the service product has similar intangibility. Some services are highly
intangible, while the others are low i.e. the goods (or the tangible component) in the
service product may vary from low to high.
For example: Teaching, Consulting, Legal advices are services which have almost
nil tangible components; While restaurants, fast food centers, hotels and hospitals
offer services in which their services are combined with product (tangible objective)


Variability
Services are highly variable, as they depend on the service provider, and where and
when they are provided. Service marketers face a problem in standardizing their
service, as it varies with experienced hand, customer, time and firm. Service buyers
are aware of this variability. So, the service firms should make an effort to deliver
high and consistent quality in their service; and this is attained by selecting good
and qualified personnel for rendering the service.
1.1.2.2. Market in service marketing
The concept of market in Marketing is different from that of tangible products. It is
known as the potential customers who have demands for specific products provided
by enterprises. The concept of market in service marketing is divided into 6 basic
types which can be illustrated as follows:
Figure 1 .1: Service market
'

(Source: Nghiem, Luu Van (2001; 80) - A textbook of Service Marketing of
Vietnam National Economics University- Statistics Publishing House.) [99]

present resources together with developing marketing campaign to distribute these
resources to supplier market. Meanwhile organizations also need to have a plan to
promote their market resources.
Employment market: How to provide adequate qualified and skillful workforce for
interactive market is a question of concern for the reason that there has always been
a shortage of qualified and skillful workers for not only service providers but also
any organizations doing business in the market. The supply and demand in
employment market seems to be complicated. There has been a great demand for
the high quality workforce working in several industries but the supply capacity still
remains low due to a number of reasons.
15

Power market: This market is suitable to relationship based Marketing. Enterprises
used Marketing resources and strategies to establish relationship with powerful
groups and corporations, including:
 Financial and Baking Corporations: They make decisions on capital, payment
ability, amount of cash, etc
 Powerful Corporations: Enterprises should establish the relationship to enter the
market and find out opportunities in future.
 Authorities: Enterprises should understand and follow regulations and rules
related to trade and commercial activities.
 Economic Associates: Enterprises should create a friendly relationship and
support their positive activities.
Internal market: An internal market operates inside an organization or a set of
organizations including employees, providers and internal customers. The internal
customers also have needs and demands that requires organizations to meet. Thus,
organizations should do research to find out the internal customers‘ needs and wants
as well as identify internal customer segmentation and work out the factors that
influence internal customers‘ needs which often associates with themes like their
personal lives, their families, working conditions, labor-saving devices, incomes,

values to customers and help them to have better feeling and understanding of the
core service. The more relating services are offered, the more benefits and values
the customers can get and that help the customers identify the difference in service
offering between one enterprise and its main competitors.
In order to successfully survive and stay ahead in a harshly competing market,
enterprises need to make a numbers of decision related to their core-service.
 The decision of the main service introduced to the market is made on the basis of
identifying the general needs of the service in the market and also on the specific
service orientation. The main (core) service needs to be associated with the target
market.
17

 The decision of primary service is made in accordance with service structures,
different service levels and service-providers.
 The overall service is a set of the main (core) service, relating services and
primary services. When deciding the overall service to be offered, the providers
should consider the overall benefits that the services can deliver as well as compare
these benefits with those of the main competitors.
 The service diversification decision is made to meet diverse requirements of
customers. That is when enterprises introduce different basic services to meet
different market segments at the same time.
1.1.1.3.2. Pricing policy
Price plays an important role in services marketing mix and has a large impact on
profit and also decides the value of the primary service that is offered to customers.
Price is considered a decisive factor in building enterprise‘s image and positioning
the service being offered.
How a company positions itself in the competitive market depends much on its
pricing policy. Pricing, therefore, is of great consideration. Price a premium item
too low, for example, and customers will not believe the quality is good enough.
Conversely, put too high a selling price on value lines and customers will purchase

 Members of distribution channels and the relationship among these members.
 Different functions performed by members of the channels together with
equipments, facilities and technologies used in distribution channels.
 The whole service produced by distribution channels‘ members.
These three main factors in distribution channels all participate in the buying and
selling process with other members in that channel. Each member has his own
capacity and target customers which make a unique channel representing a mix of
power, contradiction and cooperation.
Particularly, distribution channels in service are known as follows:
19

Direct channel: is the most effective distribution channel for service and very
common for small businesses. Services can be sold directly to the consumer on-site
i.e. directly from your shop, office or home by consumers physically coming into
the premises to make a purchase.
Direct channel is appropriate to pure service because of the high intangibility of
service and high demand of the relationship between service providers and
consumers. Direct channel can work effectively in such services as: healthcare,
education and training, art and entertainment.
Indirect channel includes the participation of a number of intermediaries as
illustrated below.
Figure 1.2: Direct distribution channel
(Source: Nghiem, Luu Van (2001; 281)- A textbook of Service Marketing of
Vietnam National Economics University- Statistics Publishing House.) [99]

Figure 1.3: Indirect distribution channels


of the market. Accordingly, enterprise should consider making the right decision to
get the best result.
1.1.1.3.4. Promotion Policy
Communication in service plays an important role in Mar-mix, which provides
information to customers and solutions to the internal relationship inside the
company as well as the relationship between company and the public.
Communication makes things clear and help company position itself in the market
so that the customers can have more awareness of the value of service.
Communication in service includes such things as advertisement (1), personal
communication (2), promotion (3), which will be discussed as follows:
(1) Advertisement is one common form of communication used by almost all
organizations. Advertisement in service is to identify information of the service,
position service, develop service concept, have better insight into the service quality
and quantity, create customer‘s expectation and persuade customer‘s spending.
Advertisement methods, advertisement scripts, advertisement objectives and
budgets are also matters of concern in advertisement policy plan.
Advertisement methods consist of mass media such as television, radio, press,
cinema and other means which can help convey information to public, for example
posters, directories, word of mouth and mail shots. Companies should base on their
advertising objectives to choose the appropriate methods and language of
advertisement.