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University of Phoenix
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  University of Phoenix
University of Phoenix
classy?
by Abram D. Sauer
April 27, 2009

The University of Phoenix (UPX)—often derided by higher-education traditionalists—is the largest private university in the United States. Best known for its online class format and reaching out to adults with real lives and real jobs, does this brand’s progressiveness in curriculum delivery translate to the brand’s main website?

 
Founded in 1976, the university’s original intention was to offer an alternative to the conventional university system by providing non-conventional students an opportunity to complete or attain an advanced degree. While this approach to post-secondary education may be obvious and common now, it was revolutionary just 40 years ago. UPX (once known as UoP) was also a pioneer in offering online classes, starting in earnest in the early 1990s. The school does have physical campus locations in most states, including satellite centers in Mexico, Puerto Rico, Chile, Canada and the Netherlands. But today the bread and butter for the school, and for its shareholders (NASDAQ: APOL), is its online curriculum and campus, offering continuing adult education, associate, bachelor’s, master’s and doctoral degrees.

Regardless of which side of the elbow-patched-jacket debate one might be on (affected? classic?), the emergence of the online university is either one of higher learning’s greatest democratizing forces or a move toward devalued culture and decreased expectations. A physical campus takes decades to build and becomes part of the undeniable character of a university. But a website can be built in a year and be relatively the same as any other school’s online campus. In this regard, UPX website is no exception.

The UPX site, however, looks more professional than a range of its peers. At first glance, Phoenix.edu looks as reputable as the sites for the University of Florida, the University of Oregon or the University of California-Berkeley . And one could argue the UPX site looks even more reputable than Harvard’s or Yale’s (the latter of which looks as if the school opted for its web-hosting provider’s most basic site-builder package).

All the areas of interest and inquiry one might expect to find on a university website are here, including information on degree programs, admissions, financial aid and “satisfied customer” testimonials. In simple design, UXP wins the initial battle to come across as reputable not because it does an exceptional job but simply because it looks comparable to its counterparts.

This last point is important from UPX’s standpoint. If the school’s website stands out too much then the school might be perceived as different. And UPX’s goal is not to position itself as better than other universities; it is to show that its product, an education, is in no way different from those offered at any of these other, more renowned, bricks-and-mortar schools. So, you see, the only difference is that UPX is online and more convenient.

This sales pitch—the sales pitch—is at the core of the UPX “business” model. A private, shareholder-controlled university, the school has a reputation for its hyper-aggressive marketing. Indeed, a university with no physical campus faces few challenges regarding housing, transportation, etc., and so can expand at will. But not many universities have a dedicated Consumer Affairs complaint page, and if they do it’s likely not as long as UPX’s. (Harvard has all of one entry.)

In a fundamental way, universities and colleges represent the simplest, most concise examples of exactly what a “brand” is and how brand value is created. The strategic value of a university and college brand is especially reliant on, and vulnerable to, the give-and-take relationship between the brand owner (the school) and the consumer (potential students and/or employers of alumni).

As with many brands, this valuation relationship is self-reinforcing: Yale’s reputation for high education attracts the best and the brightest, which in turn reinforces Yale’s brand, which in turn attracts the best and the brightest and so on and so forth. But it is important to remember that a good portion of a school’s brand value is a result of the perceived brand of that school by many who will never go there. A school cannot just hire the best professors and then announce that it is a legitimate competitor to Yale; it must convince people, rightfully or not, that it is indeed a competitor of Yale. This requirement of building up a brand is another reason schools are excellent models of brand building through investment over a long period of time, which ultimately results in the steady increase of brand value and a return on that expanding brand value.

 
 
University of Phoenix One paradox facing the UPX brand is the school’s business model. While most universities increase value by limiting admissions (creating scarcity), UPX’s maximum velocity recruitment model, while great for profitability, may not be so great for brand strength. Such efforts can dilute the brand heavily. In 2007 UPX reportedly spent more for online ads in the US than any single advertiser, a statistic that any regular web surfer does not doubt. For an online university promising a convenient education, it is this consistent banner ad bombardment—this insistency—that probably does the most to undermine the perceived quality of that brand of education.

In the end, the University of Phoenix brand will likely benefit most from the sheer number of degree holders it produces—tens of thousands more a year than competitors. More alumni means the more the brand will have to be taken seriously. As UPX-degreed professionals rise through the ranks, and in some cases come to take over positions with hiring responsibilities, the more the university’s reputation may be reinforced.

Yet the utilitarianism of the UPX model creates a weak alumni base. After all, how many University of Phoenix decals adorn the back windows of cars?

UPX is clearly not a conventional school with a manicured campus, science building and football stadium, but it does have a website—a digital campus—that both represents and serves the school well. Even Harvard had to begin somewhere.

 

Abram D. Sauer has written about brands and branding trends since 2001. Visit www.abesauer.com for more of his work on branding and product placement.

*Due to the constantly changing environment of websites, some reviews may no longer reflect the current website for this brand.
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University of Phoenix - classy?
 
 For those wanting to learn more about how higher education is marketed on the web, I've posted an archive of online ads from:Kaplan University-http://adverlicio.us/topic/kaplan_universityUniversity of Phoenix-http://adverlicio.us/university_phoenixand others-http://adverlicio.us/industry/education 
adverlicious, http://adverlicio.us - April 27, 2009
 
 Abram, thanks for your article. I don't think I saw the words proprietary school in the story. That is the type of school by which UPX is defined. The first word, proprietary is not always a good one to be associated with, especially when you are in the higher education category. As a result UPX is often criticized for its lack of authenticity. 
Rex Whisman, Chief Brand Strategist, BrandED Consultants Group - April 27, 2009
 
 Interesting, and IMHO, spot on. U of Phoenix is certainly rankling old-school academics and maybe even edu branding guys like Rex Whisman - see his comment above - who wish to preserve the snootiness of academia. But things are changing as online schools obviously appeal to a growing number of students, particularly working adults who have no need for the social aspects and related high costs of a traditional physical campus school. Yes, UPX is criticized for a lot of things, Rex, some of which are even justified. But it should be commended for the disruption it has caused in the mature, myopic world of old-boy, pipe smoking, bow-tie wearing academia. As management guru and long time educator Peter Drucker said in Forbes some years back, colleges and universities as we know them won't exist in 20 years. Drucker's prediction was, obviously now, quite prescient. 
Joseph Schmoke, Founder, University Consultants LLC - April 28, 2009
 
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