Educational Technology Corporation

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Educational Technology Corporationcrossing the
chasm
Technology Marketing - Study Case

• Group F

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GROUP MEMBER
IVONNE SUWARMA M9721811
JULIANNA WAHJU M9721814
IVAN ARISTA M9721815
WONO SARDONO M9821807
LOUISE ADRINA M9821808
JENNI TJANDRADJAJA M9821811
Educational Technology Corporation - Crossing the
Chasm
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OUTLINES
Higher Education Environment
Company Background
Products
Educational Technology Industry
Sales Process
Marketing Challenges
Educational Technology Corporation - Crossing the
Chasm
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Educational Technology Corporationcrossing the
chasm
Technology Marketing - Study Case

• Higher education environment

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INTRODUCTION
developing comprehensive, cost-effective
technology-mediated learning systems
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INTRODUCTION
ETC
Wall Street Journal software had been able to
improve the pass rate in some college math
classes from less than 50 to more than 70
April 1996
Interactive Mathematics
Interactive Multimedia product for basic college
algebra
Developed to take advantage of a proven theory in
academia called mediated learning
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INTERACTIVE MATHEMATICS
Market for IM had the potential to explode

• Colleges and universities willing to take a
  chance on a new concept
• Those who needed proof positive before investing
  something new

Todd Wilson (Kellogg MBA-Manager of Partner
Development)

• Sales Collateral materials
• Unique Marketing Challenge Diversity opinions
  and attitude among faculty members

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THE HIGHER EDUCATION ENVIRONMENT
Digest of Education Statistic, 1994
Financial Pressure
Political Pressure

• Higher Learning in 1993-1994 3,632 institutions
• Number of students enrolled gt14 million
• Annual spending 175 billion/ year
• Percentage of US High School graduates going to
  college was expected to continue growing

• Prevented significant increases in tuition and
  fees and forced institutions to control their
  costs

• Funding was most severe
• Reducing enrollments
• Increasing student tuition and fees

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THE HIGHER EDUCATION ENVIRONMENT
Intermittent students
More Mobile students
Older students
Students from nonmainstream racial, ethic, and
language background
Special Instructional Needs (Non traditional
students)
Part time students
The fastest-growing segment of the undergraduate
student population
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THE HIGHER EDUCATION ENVIRONMENT
Institutions offered Remedial Instruction
88 Failure rate in a sequence of courses
40 Churning ? Enrollments in entry level
courses to double/triple
Slow to accept new technology ? Funding
constraint Fear the technology ? diminish the
need for the instructor institution model
The mainstreaming of technology in society was
placing increasing demands on institutions to
promote and teach practical applications of
computers
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Educational Technology Corporationcrossing the
chasm
Technology Marketing - Study Case

• COMPANY BACKGROUND

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COMPANY BACKGROUND
March 1992
Ben Yarborough
Peter Robbins
Vice President of K-12
Jostens Learning Corporation
Educational Software Dev at Apple
Communication Computing Corporation
Dean of Graduate School of Edu University of
California
McKinsey Company
Mediated Learning ? To provide cost-effective,
individualized instruction through a new academic
concept
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COMPANY BACKGROUND
Jostens Learning Corporation
Establishing strategic alliances
Accel Partners
Microsoft
Exclusive realtionships with technology companies
TeleCommunications Inc.
Position the company as the leading developer of
interactive multimedia Learning systems
Kleiner Perkins Caufield Byers
Another venture capital firm
VISION
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COMPANY BACKGROUND

• Build partnerships with leading academic
  institutions
• Develop Library of interactive multimedia
  courseware in high-demand subject areas

NearTerm Goal

• Become the leading supplier of interactive
  instructional materials for higher education

LongTerm Goal
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EDUCATIONAL TECHNOLOGY CORPORATION
LOCATION
Mointain View, California
EMPLOYEE
60 people (Feb, 1996
ETC describe itself creative collaborative of
faculty, researchers, designers, multimedia
developers, and computer scientists
SALES REPRESENTATIVES
California, Texas, Florida, Illinois, and New York
YEAR 1995

• 100 instructors 4,000 students used the
  Interactive Mathematics
• Basic English Composition product was in
  development
• Plans for courses in other subject areas

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Educational Technology Corporationcrossing the
chasm
Technology Marketing - Study Case

• products

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Mediated Learning Model
PRODUCTS (1)
Instructors
Text
Learners
Interactive Multimedia (Instructions and
Assessment)
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PRODUCTS (2)
Mediated Learning Product
Hardware
IBM and Macintosh Compatible PCs
Software
Learning, networking, and enabling feedbacks
Notebooks
150 pages, problems and reviews
Price
100-150/student, including system setup,
training, 1 year license fee, and technical
support.
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PRODUCTS (3)
Interactive Mathematics

• An interactive multimedia software that provides
  trainings, problems, quizzes, and further
  instruction in Algebra, such as Linear and
  Non-Linear Equations and Inequalities, Exponents,
  Functions, Graphics, etc.

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Partner Supports
PRODUCTS (4)

• TECHNICAL SUPPORT
• Planning installation
• Installation
• Ongoing supports

• CONTINUOUS IMPROVEMENT
• Feedback from faculties and students
• Company research and development

• FACULTY SUPPORT
• Implementation planning
• Initial orientation preparation
• Ongoing support

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Educational Technology Corporationcrossing the
chasm
Technology Marketing - Study Case

• Educational technology industry

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EDUCATIONAL TECHNOLOGY INDUSTRY
1993 227.5 million 1994 522.2
million (Up 88) 1995-now Slow growth

• Direct
• Textbook publishers
• Multimedia interactive products
• providers

• Indirect
• Satellite systems
• Television distance learning program
• Online learning

• Enter different market rather than K-12 (Higher
  education)
• Take the advantages of the first-mover advantage
• Claim to be the earliest to enter the market

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Educational Technology Corporationcrossing the
chasm
Technology Marketing - Study Case

• Sales process

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DECISION MAKING FOR TECHNOLOGY IN EDUCATIONAL
INSTITUTIONS
PRESIDENT
PUBLIC
PARTNER INSTITUTIONS
BUDGET COMMITTEE
TECHNOLOGY COMMITTEE
CURRICULUM COMMITTEE
DEPARTMENT HEAD
FACULTY
STUDENT
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BEHAVIORAL CHARACTERISTIC OF FACULTY
Three Main Segment of Faculty
Happy with the status quo
PAINSTAKING BUILT, SLOW
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ETC SALES EFFORTS
INTRODUCTORY COMMUNICATIONS
REQUEST TO IMPLEMENT ETC
DO NOT ACCEPT
ETC co-founder, Ben Yarborough will make initial
contact with institutions president by
leveraging his academic credentials to lend
credibility to ETC and its product
YES
NO

• FIRST MEETING
• Background of the company mediated learning
• Determine the needs initiatives at the school
• Review the results of Interactive Mathematics
• Explain the pricing structure

CONVINCING?
Teams experience as educators and educational
salesperson
Schedule the meetings with vice president, deans,
department heads, committee chairs, faculty
build support
Presentations, videos, demonstrations, discussion
groups, and site visits

• SECOND MEETING
• Required at least 5 individual communications
• Usually directors needed to meet multiple
  times with educators (9 months and 25 sales
  calls in average)

• Background of mediated learning ETC,
  Interactive Mathematics result and
  operation
• The need for a new way to teach remedial subjects

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Educational Technology Corporationcrossing the
chasm
Technology Marketing - Study Case

• marketing challenges

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MARKETING CHALLENGES
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MARKETING CHALLENGES
CAMPUS A (community college)
Pass rate on 1st term higher Pass rate on 2nd
term increase 13
Pass rate were 22 percentage points higher
Campus B (urban university)
CAMPUS E (state university)
Faculty are using mediated learning to
restructure courses
Interactive Mathematics
CAMPUS C (state university)
CAMPUS D (four-year college)
Pass rate 12 points higher than non-mediated
learning section
Attendance rates were higher than in non-mediated
learning sections
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MARKETING CHALLENGES
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THE SITUATION
MARKETING CHALLENGES
Pro
Contra
Only a subset of faculty concern
Cost saving increase pass rate
Status quo of several faculty
School administrator is enthusiastic
Not willing to try unfamiliar technology
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THE DIFFICULTIES
MARKETING CHALLENGES
The fear of faculty that they will be replaced by
computer
Faculty members see everything new as adding an
extra burden
The varying formal and informal decision making
structures within each school
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MARKETING CHALLENGES
ETC needed to generate awareness of the company
and its products
ETC hired Smith Communications, a reputable
public relation firm
CURRENT
FUTURE
Began authoring press release on success
statistics and developing targeted positioning
Spread the key messages that ETC could provide
visit by sales representative directly
ETC is the best-kept secret in Silicon
Valley-and theyve been around for 4 years
Convince institutions to understand and support
innovations in learning technology
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Educational Technology Corporationcrossing the
chasm
Technology Marketing - Study Case

• discussion

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MARKET SEGMENT
CURRENT EDUCATIONAL INSTITUTIONS
CURRENT EDUCATIONAL INSTITUTIONS

• Higher education universities and colleges
• Educational institutions especially public
  institutions has bigger number of enrollment
  (based on Digest of Education Statistic 1994)

POTENTIAL PRODUCE ANOTHER PRODUCTS SUITABLE FOR
ANOTHER COURSES (ex Languages, science, etc.)
POTENTIAL PRODUCE ANOTHER PRODUCTS SUITABLE FOR
ANOTHER COURSES (ex Languages, science, etc.)

• K-12 (kindergarten up to 12th grader)
• K-14 (Kindergarten up to community college)
• Nontraditional student (part-time students, older
  students, intermittent students)

Source US department of Commerce, Population
Survey
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MARKET SEGMENT
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CHALLENGES
CONVINCE THE EDUCATIONAL INSTITUTIONS

• Not extra burdens
• Not to replace current math education teachers

MAINTAIN CURRENT ADVANTAGES

• To be the 1st that put target on post secondary
  educations
• Mediated learning model instead of bolt-on model

COSTS FOR INTRODUCTIONS AND PROMOTIONS
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INTERACTIVE MATHEMATICS
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Positioning Statement
POSITIONING STATEMENT

• Students learn how to use technology as a tool
  for processing information, visualizing and
  solving problems, exploring and testing
  conjectures, accessing data, and verifying their
  solutions. In a mathematics setting, technology
  must be an instructional tool that is integrated
  into daily teaching practices, including the
  assessment of what students know and are able to
  do.

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POSITIONING STATEMENT

• Requires the use of Interactive Mathematics
  program at 8TH AND 11TH GRADE levels to solve
  their problems

• YOUNG CHILDREN find the use of concrete materials
  to model problem situations very natural.

• OLDER STUDENTS will realize that the adults
  around them use software and computers all the
  time to solve mathematical problems and will be
  prepared to do the same.

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RECOMMENDATION TO ETC
ETC
improve marketing and publicity to support future
sales efforts to a wider variety of institutions
of higher learning
do direct observation, collection, and display of
data for the educational institution, in order to
convince the institutions so ETC can reach
broader market
To lift ETC in marketing and sales, they need to
train sales people, increase advertising, and
broaden public relation.
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CONCLUSION

• ETC has been successful in creating products to
  enable not only students but also personal
  learners to improve their knowledge
• The result has been proven by the research output
  that shows the graduation rate in the observed
  institutions is increasing significantly
• The learning model is a futuristic promising
  learning model

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THANK YOU
Technology Marketing - Study Case