Customer prioritization in higher education: targeting ‘right’ students for long-term profitability

Abstract

As competition for students, faculty and financial support has increased, so has the application of marketing in the field of higher education. One critical application of marketing all too often neglected, misunderstood and mismanaged in higher education is targeting customers for profitability. The purpose of this paper is to enrich the marketing practices of academic institutions as they face increasing competition for students, faculty and funding by presenting a discussion of ‘right,’ ‘at-risk right’ and ‘wrong’ customers for higher education. This paper reviews marketing paradigms as they have evolved over time, explains the concepts of right, at-risk right and wrong customers as they apply to higher education and identifies managerial implications critical to today's higher education administrators.

Keywords:

• target market
• market segments
• long-term competitive advantage
• right customers
• wrong customers
• at-risk right customers
• customer prioritization