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The IUP Journal of Management Research :
Advertisement Effectiveness: Role of `Word-of-Mouth' in Success of Educational Institutes in Non-Metro Cities
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This paper discusses the significance of word-of-mouth for educational institutes (Career Launcher, TIME, Aptech, NIIT, Akaash, Narayana, BSL, etc.) operating in Rohtak, Jhajjar and Bhiwani. All these three non-metros are upcoming educational hubs. Particularly, Rohtak and Bhiwani attract nearly 70% of students from nearby towns, suburbs and villages. And it is alltogether a different, unorganized and hitherto untapped market for established institutes operating on national level. This paper with all the primary data (from both institute owners/center heads, principals and students) lists out the most significant factors behind students' decision to choose a particular institute despite the advertisements done by these institutes. Besides this, it highlights the role of advertisement and the contribution of word-of-mouth in the success of educational institutes. It also provides information on the institute owners' attitude on different advertisement tools.

 
 
 

India has been the world leader in education for ages. However, things are not worth appreciating today. It has 66% adult literacy rate at a time when much smaller countries like Sri Lanka, Iran, Malasiya, Mongolia, Philippines and Indonesia boast of their higher literacy rates (Table 1).

India has now a population of 1,166,079,217 (Wikipedia, 2009) out of which nearly 61% is below 35 year of age. It is all set to achieve higher literacy rate by introducing new programs prominently on rural India keeping in mind that 72.2% (Wikipedia, 2009) of total population belongs to rural India.

The government is also encouraging the establishment of technical, professional and educational institutes in rural India. A number of leading private educational institutes have already established (or are establishing) their institutes in tier-II and tier-III cities in the last seven years targeting the huge potential of rural India and untapped marketplace. May it be private universities, professional coaching institutes, computer education institutes, Industrial Training Institutes (ITIs), Indian Institutes of Technology (IITs) or even Indian Institutes of Management (IIMs)all have joined the bandwagon to enter the huge Indian rural marketplace. The government is planning to increase spending on education (Exhibit 1).

All the institutes operating in non-metros are projecting themselves as the pioneers among others. They take advantage of every possible tool which helps them in branding, reaching to target groups and finally getting admissions. Here, the advertisement tools and advertisement messages differ significantly from those in metros. They are more customized, simple and promising, which at times seem exaggerated.

 
 
 

Management Research Journal, Advertisement Effectiveness, Educational Institutes, Indian Institutes of Technology, IITs, Indian Institutes of Management, IIMs, Advertisement Tools, Rural Markets, Fast Moving Consumer Goods, FMCG, Newspaper Advertisements, Market Communication, Rural Market Communication, Event Management Groups, Social Networking Sites, Advertisement Messages.