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Return to Bulletin Home - January 2009 |
A Q&A With ICEF CEO Markus Badde The year has opened on one of the most dramatic and far-reaching economic adjustments in modern history. Banks and major corporations are going under, stock exchanges are shedding value month after month, and everyone is wondering what the year will bring. As CEO of ICEF, Markus Badde has a broad perspective on world markets that is shaped by ICEF's extensive international networks. The Bulletin sat down with Markus recently to get his views on how the current economic crisis could impact the global education market. Bulletin: These are uncertain times to say the least. Would you say the current crisis is unprecedented? MB: That is a tough question. This is an historic event in the global economy, and we are all still trying to understand where the "bottom" is in this downturn. But I don't think we can say that this sort of adjustment is unprecedented. The Asian economic crisis of the late-1990s was a major challenge in education markets, especially given the degree to which Asia tends to drive overall growth in the global market. Our industry came through a very severe market adjustment during those times, and we all learned some lessons along the way. Bulletin: Some people say the education market is recession-proof. Do you agree? MB: We would all like to think that our businesses can adjust to a major economic shift like this, but I am not sure anyone is immune to the sort of sweeping recession taking shape today. Some people feel that education is such an important investment that individuals and families will continue with study plans come what may. Others believe that many people will forgo spending on education in a time of restraint, preferring to delay their studies until the economy improves. My sense is the situation is more complex. Motivations and plans for study are likely to shift under these circumstances, and some of the mechanics of the market—notably currency exchange rates—will move as well. The overarching challenge for education marketers will be to review and adapt their strategies to the changing market conditions. Bulletin: So everyone has to adapt, but what does this mean in practice for educators? MB: The competitive field of educators can be roughly segmented into two types of responses to the challenging market conditions we see today: some will cut back on their marketing efforts, others will maintain or even expand their marketing programmes. Our position is that the latter is the winning strategy. In other words, at a time when some of your competitors are becoming more conservative, we believe you can make real gains by maintaining, or even expanding, a strong footprint in your key markets. This is a time to stay close to your partners and customers. Doing so will strengthen the results you get in the short-term but will also give you a foundation to build on when the market recovers fully. In fact, this is our approach at ICEF. For example, we are launching two new major workshop events this year, in Miami and Sao Paulo, because we see the opportunities in the market. We are opening new offices in selected markets and adding staff because we are committed to helping our clients succeed. You might say, ironically, that a period of market adjustment such as we are experiencing now is often an ideal time to invest for the future. And that is just what we are doing. |
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