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Mba vs. Tradition Online Education

In: Business and Management

Submitted By ann2005
Words 2818
Pages 12
Pursuing an online MBA program over an on-site program
Shirley Ann Gates
Bus 620: Managerial Marketing (MAC1042A)
Professor Nancy Waldron
November 16, 2010

Executive Summary of Marketing Plan In today’s world, being able to obtain an adequate amount of education will increase the chances of better opportunities in the job market. Students entering MBA programs are now given a choice to obtain their education online opposed to onsite. Both MBA online and onsite programs share a common goal, and that is to assist students in obtaining their degrees. MBA online programs are convenient, because they are available to the students, any place, anywhere, and anytime, and will allow students to be able to complete their assignments within their own timetable opposed to an onsite setting, that you must meet the timetable of the facility in order to obtain your educational needs. According to Terry (2007) “online instruction provides flexibility for students in that it reduces the often substantial transaction and opportunity cost associated with traditional campus offerings. The flexibility in structures is countered by potential problems including lack of personal interaction (Fan & Lewis, 2001), the elimination of a sense of community (James & Voight, 2001), and the perception of lower quality (Terry, 2001). On sites courses have some advantages whereas, it allows students to interact with their peers, attend lectures, and physically work in groups. There are some dilemmas, such as the physical time it takes commuting back and forth to class, the price of gas, paid parking, and the distance in traveling for your educational needs. Other inconveniences of an MBA onsite program is, you must attend school in whatever city or state the university is located. Other dilemmas of an on-site MBA programs are the lack of lectures that are not available to students, on a 24/7 day basis. Not being able to have access to your educational needs unless you are physically in class can cause problems with accessibility of information that is needed to obtain a MBA degree. According to Dash (2006) “the flexibility of online scheduling is a key factor in the growth of online MBA programs. Having classes online has given those who may not have the ability to travel to campus or have a set schedule, the opportunity to gain an MBA degree without having to change their current schedules. Online graduate education has attracted a variety of individuals that may not have been able to gain an MBA degree through the traditional classroom”.
Company Overview MBA programs on-line have become one of the most convenient ways of being able to obtain a degree opposed to the traditional way that education was once obtained. MBA on-line programs are available to students access 24/7 365 days a week. It not only provides the availability but its range is worldwide. MBA online programs have the availability of online libraries 24/7 365 days a week anytime, anywhere, and any place, whereas onsite programs do not offer the availability of a 24/7 365 days a week library usage for their students. The advantages of online MBA programs are that professionals do not have to adjust their work schedules. The class starts when it’s convenient for them, opposed to on-site MBA programs, their class starts when the school sets the timer. Other advantages of online MBA programs opposed to onsite programs, it aids in making education available for individuals who are physically disabled. MBA online programs interact with their peers by means of online discussion chats. The discussions are monitored by professors, and made available for the interaction of students to discuss the topic of their assignments. The professors can engage in the discussion anytime, anyplace, and anywhere. The classes are asynchronous, which means the students can log on to listen to class room lectures, or participate in the class discussion 24/7 365 days a week, opposed to physically going to the onsite class room setting. According to Kathawala, Abdou, & Elmuti (2002) “since the online MBA is growing this means there are merits for those programs over the traditional MBA. The online MBA programs are accepted by new customers that were not willing to pursue their MBA degree in traditional classes. In other words, students who want to pursue an MBA degree without going to the campus would be willing to apply for an online MBA”
Description of Target Markets The MBA online targets individuals who have already experienced the work atmosphere but wish to “enhance” their skills on a higher level, and do not have the time to attend a class room setting. The on-site opportunities are not available to MBA online participants due to time of class, location, and availability of some classes being offered. The MBA online programs target individuals who want to attend class on an accelerated level which usually consist of a six to eight week courses, whereas, an on-site class offers classes that will take approximately four months which would be a longer time to complete. The usual time frame for an online MBA program is less than two years, opposed to an onsite program that would normally take two full years or more for completion. MBA online program perform SWOT analysis of their programs comparing them with e other MBA online and onsite programs, and they learn from their evaluation of their report which give the strengths, weaknesses, opportunities, and threats they have against their competitors. MBA online programs target individuals who have busy schedules, who are computer literate, with professional experience, and want to take their education to a higher level to obtain their degrees. The marketers offer individuals the benefits of an “online” experience informing them of how they can maintain their current job, maintain their household duties, and adjust their education needs to meet their goals of accomplishment. MBA online program students work more independently and communicate entirely with technology. MBA onsite programs are targeted towards individuals who have professional experience and have the time to attend onsite programs. Onsite programs target individuals who want to interact with their peers face to face and prefer a “hands on instruction”. Sometimes working physically in group settings help with better understandings of course purpose. According to Hochberg (2006) “the growth target market for MBA programs is the Gen Xers (age 25-39) and Millennials (age 24 and under), as younger professionals seek an MBA degree as a necessity to remain competitive in the job market and for their future career aspirations”. In essence, the MBA is becoming like the new undergraduate degree. Globalization is requiring professionals to be lifelong learners and to continually upgrade their skills and knowledge bases. According, online and DE programs “allow adults to learn at a time, place, and pace that is convenient for the “Kali as cited in Evans & Hasse (2001, pg. 248) “and substantially improve their access to skills required to compete for higher wage jobs”.
Description of Competitors The description of competitors would be other online MBA programs such as Kaplan University, University of Phoenix who offer online MBA programs and onsite programs and that do not require the GMAT entrance exam. Other competitors will be other onsite facilities that charge lower prices per credit hour, and have a shorter range of time to complete the MBA online program. Duke University is now incorporating online curriculums to coincide with their onsite courses. Competition rises when other MBA online programs offer better services such as, a wider range of accessibility to libraries, stipend allowances, job placement services, online writing centers, and availability to faculty online, lecture retrievals, access to education 24/7, people friendly technology, lower cost in tuition, 24/7 technical support, and less time completion using acceleration programs, and interacting with their peers on discussion boards. Onsite MBA programs are in strong competition with the online MBA programs because the “physical presence” which is face-to-face instruction methods that can only be utilized at a university that is considered “brick and motor” environment which limits the places and times classes can be offered. Having the convenience of obtaining a MBA made accessible will attract a wider audience opposed to onsite MBA programs. According to Kotler & Fox (1995) “when universities offer qualifications that satisfy student needs price these at a level that students see as providing value, distribute the tuition in a fashion that meets student expectations, and provide appropriate and valuable information on which prospective students can make decisions, courses will be filled easily”
Description of Products or Services The products that are offered in a MBA online courses consist of core curriculum covering functional areas of management, including information systems, finance and accounting, marketing, and human resources, and other courses that will allow the student to focus on their specialty. With online MBA programs the products are offered 24/7 to individuals and are made available anyplace, anytime with the service of technology retrieval, discussion boards, and internet submission for their homework. The services are tailored towards convenience for the students. According to “out of 168 accredited online MBA degrees, the average cost of a regionally accredited MBA is $20,500 while programs accredited by the Association to Advance Collegiate Schools of Business (AACSB) average $32,200.00”. MBA onsite offer the same products that online classes offer but the programs are not available to students anywhere, anyplace, and anytime. MBA onsite is a face-to-face (physical presence) method with a “brick mortar” setting. Classes are a set time frame, set place, and at set locations. The dilemma is sometimes classes may not be available to students do to overcrowded classes. Instead of the convenience of technology libraries on student course lines, the students must either go to the library, or search for the websites for information. According to Costa & Silva (2010) “historically education has been supported by technology; however, during the past three decade’s electronic technologies for educational purposes have been used to achieve better learning outcomes. There are two propositions regarding the use of computers for educational purposes; that is, people can learn “from technologies or people can learn “with technologies. The, e-learning literature reveals that technological and instructional perceptions are diffuse.
Marketing Budget Before entering any MBA online or onsite program, several decisions should be made in regards to cost of tuition, books, equipment, residence, and personal requirements that must be met. Included in the marketing budgets are comparisons of an online MBA program and onsite program that will provide a breakdown in expenses needed in order to make the decision of would online education be more affordable compared to onsite campus, would online be completed faster opposed to attending an onsite campus?

Marketing Budget for MBA Online Program Ashford University (11 Classes) Total Tuition and Fees: 17853
Loan Transaction Fee: 999
Rent 11436
Food 3600
Books 2750
Computer Materials 400
Marketing Budget MBA Online Total: 37038

Marketing Budget for MBA Onsite Program Minnesota State University (17 Classes) Total Tuition and Fees: 25041
Student Fees: 64.28
Moving Expense: (One Time) 3070
Rent 9600
Books 1800
Computer Materials 400
Food 3600
Gas 960
Parking 288
Car Insurance 1896
Marketing Budget MBA Onsite Total: 46719.28 According to Damast (2009) “this type of business school journey is becoming more and more common for a growing number of students, who are tossing aside convention and opting for a shorter and more intensive business school experience at roughly half the price of a traditional two-year program. The condensed time frame of a one-year MBA program, coupled with a more attractive price tag, is proving to be irresistible for many students in this economy, say admissions officers and MBA programs directors. A number of U.S. business schools that offer the accelerated programs say that applications were up significantly last year, with enrollment at record levels at some schools. To meet growing student demand for these programs, more and more schools are expanding their MBA offerings to include one-year programs with some adding programs just in the last few months.
Description of Location MBA online program can be made available anyplace, anytime, and anywhere through the use of computer technology. The MBA online programs consist of several universities who make their facilities available by the use of computer technology. Whereas the MBA onsite programs are available at “brick motar” using a physical presence (face-to-face) method that the program is taught under physical instruction at a designated place.
Pricing Strategy Being able to determine the price strategy used for an MBA online, and onsite programs individuals should perform a search, and do comparisons of what they will receive for the price the university charges. Marketers must keep in mind, if the price is too expensive for MBA online or onsite programs “word of mouth” will travel and students will seek other programs that are more affordable. According to Cook (2009) “over the past 10 years, college tuition has increased by 74 percent, with tuition in Alabama increasing by 68 percent. According to the Southern Regional Educational Board “a family earning a household income of $50,000 per year would spend about 30 percent of their annual income on tuition, room and board and fees to send one child to college”.
Summary and Implementation Plan Obtaining an MBA has become a necessity in today’s workforce. In order for individuals to obtain these necessary tools, universities and marketers must be able to make this access available to help students reach their educational goals. Marketers must target their audience by doing surveys, sending emails, visiting campuses, and making cold calls. Marketers can give students options to take classes online explaining to them the advantages of online MBA programs which allow student access and availability, anyplace, anytime, and anywhere. Whereas, MBA onsite programs offer somewhat the same programs but are only in designated sites. Other advantages with online that would be explained to prospective students of the MBA program that online is accelerated taking approximately six to eight weeks, opposed to onsite which has a longer timeframe for completion. The MBA online program will have “state of the art” technology that will “enhance” ones knowledge, and make class room studies available at the “click” of the mouse in the privacy of your own home. Onsite MBA offers the same classes but has a longer time frame of completion. Some classes may be overcrowded and rushing for registration sometimes occurs. Onsite classes have longer sessions. They usually take from eight to fifteen weeks, they operate on sometimes a semester or quarter basis. Although marketers strive to enroll individuals in the MBA programs, developing the trust relationship is important to students. When you give the consumer all the necessary information for them to make the right decisions, they will take notice of your customer service approach and “word of mouth” will sell the school’s customer service skills. As a conclusion for MBA online and onsite programs, it has become a necessary to pursue a higher education in order to compete in today’s economy. Being able to attend school with a choice of online or onsite programs proves the universities have made educational access available for all students, anyplace, anywhere, anytime, using the online approach, and onsite availability campus locations.

Cook (2009) Textbook prices increasing making college even less affordable. McClatchy- Tribune News Washington: July 2009. Database: ProQuest. Doc: 1774074141 Retrieved November 16, 2010
Costa (2010) Knowledge Versus Content in E-Learning: A Philosophical Discussion: Information System Frontiers, 12, (4), 399-413. Retrieved November 18, 2010 Doc: 2110298691 Database: ProQuest
Damast (2009) The Shorter Faster, Cheaper MBA. Busines Week Online, 6, Retrieved November 19, 2010. Data Base: Academic Premier
Hochberg, (2006) Online Distance Education Pedagogy: Emulating the practice of global Business. Distance Education, May 2006, Vol 27, Issue 1, p 129-133, 5p; DOI
10.1080101587910600654841. Retrieved November 18, 2010 Database: Academic
Ivey & Naude (2004) Succeeding in the MBA Marketplace: Identifying the underlying factors. Journal of Higher Education Policy & Management. Nov, 2004, Vol. 26, Issue 3, P 401-417, 17pp; DOI: 10.10801/1360080042000290249. Retrieved November 16, 2010 Database: Academic Premier
Kathawala, Abdou & Elmuti (2002) The Global MBA: A Comparative Assessment for its Future. Journal of European Industrial Training. Vol 26, Iss 1; pg 14, 10 pgs. Retrieved November 17, 2010. Database: Proquest
Rydzewski, Eastman & Bocchi (2010) Important Characteristics In an MBA Program: The Perceptions of Online MBA Students. American Journal of Business Education, 3 (4), 33-41. Document: 2016987911. ISSN: 19422504 Database: ProQuest
Terry (2007 Assessing Instruction Modes for Master of Business Administration (MBA) Courses. Journal of Education for Business. March 2007, Vol 82. Issue 4, p 220-225 6;, 2 Charts. Database: Business Source Elite Ashford University (Financial Aid ) Tuition & Fees For Online Classes

Minnesota University- Tuition & Fees MBA On Campus

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...Leadership Development Seminars and ECQ-based Readings The success or failure of any endeavor depends on leadership. Now, more than ever before, we need leaders in our organizations and in our world. Great leaders create and communicate a vision and move people into action to achieve it. They ignite our passion and inspire us to do our best. Government leaders in the 21st century are experiencing change at a more rapid pace than previous generations. Rapid advances in technology have expanded the quantity of work we are capable of accomplishing, and also where it’s accomplished. We have a more highly educated workforce, yet face diminishing resources with an increased demand for productivity, and the essential services we provide to the American public. To be successful at navigating these challenges leaders must develop the essential skills to motivate their employees, effectively communicate with others, fine-tune critical thinking skills, and build and leverage partnerships. Future leaders must also be visionary; i.e., possess the ability to identify trends and the courage to be innovative. Being technically adept in your field will no longer be enough. In response to these demands on senior executives, the U.S. Office of Personnel Management identified five Executive Core Qualifications (ECQs) that all aspiring government leaders and executives must possess. These ECQs and Fundamental Competencies were developed by OPM after extensive research on the attributes...

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...Leadership Development Seminars and ECQ-based Readings The success or failure of any endeavor depends on leadership. Now, more than ever before, we need leaders in our organizations and in our world. Great leaders create and communicate a vision and move people into action to achieve it. They ignite our passion and inspire us to do our best. Government leaders in the 21st century are experiencing change at a more rapid pace than previous generations. Rapid advances in technology have expanded the quantity of work we are capable of accomplishing, and also where it’s accomplished. We have a more highly educated workforce, yet face diminishing resources with an increased demand for productivity, and the essential services we provide to the American public. To be successful at navigating these challenges leaders must develop the essential skills to motivate their employees, effectively communicate with others, fine-tune critical thinking skills, and build and leverage partnerships. Future leaders must also be visionary; i.e., possess the ability to identify trends and the courage to be innovative. Being technically adept in your field will no longer be enough. In response to these demands on senior executives, the U.S. Office of Personnel Management identified five Executive Core Qualifications (ECQs) that all aspiring government leaders and executives must possess. These ECQs and Fundamental Competencies were developed by OPM after extensive research on the attributes...

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