Education Market at a Glance
Market at a Glance
The education market has changed dramatically in the past year. The impact of the No Child Left Behind Act (NCLB), changes in the national and state economies, and increased participation by the nation’s 15,000 school districts in testing, assessment, technology and accountability programs have presented both unparalleled challenges and opportunities for marketers. While there have been acute funding challenges, new initiatives continue to propel the market in a positive trajectory. In fact, the education market today accounts for over 8.5% of America's GNP.
Market Trends
Major trends that are reshaping the market include a shift in spending toward "end-to-end" technology solutions that support instruction and student achievement and to sophisticated tools that are used to monitor data-driven decision making. These large-scale initiatives also create any number of lucrative vertical opportunities for marketers who target their products and services correctly. While some companies see the complex funding environment and unique organizational characteristics of the education market as daunting, insiders know that keeping their message in front of key decision makers is the key to long-term success.
The Purchasing Process
Currently, 25% of the nation's school districts account for 80% of all education purchases. These large school districts are usually well organized and maintain established purchasing hierarchies. Generally, the higher the pricepoint and the more students impacted by a product or service, the more likely a superintendent or assistant superintendent will be involved in making a final go or no-go decision. Over 90% of districts require that significant purchases, or programs directly impacting curriculum or instruction, be approved by district level personnel. Similarly, in technology acquisitions, a CIO, technology director or superintendent holds the purse strings. Significantly, however, in the areas of professional development programs and classroom enhancement tools, individual schools and teachers make their own choices.
Major Purchases and Supplemental Materials
School districts are playing a much larger role in the purchasing process of supplemental materials across all curriculum levels. In a 2007 study by MMS Education, 25% of all survey participants indicated that the district is the final decision maker in purchasing decisions, while more than half indicated that both the district and the building level are equally involved in making decisions. Purchasing decisions are often made by committees that may be made up of a curriculum director, classroom teacher, principal, lead teacher and sometimes students or parents. With the rise of teacher leadership, more and more lead teachers are initiating and participating workshops and pilot programs.
Technology
Today, in view of recent technology assessments at the Federal level, it has become necessary for administrators and technology directors to collaborate on the purchase of new technology products and services for their districts. School districts are expected to place more emphasis on purchasing technology products and services in the coming year than they have in the past. They will also turn to the Web in higher numbers than ever before for information on available products and services, including price and product samples. They will also turn to online social communities to discuss new products under consideration with other districts who might already be using these products.
Fast Facts – National K-12 Statistics
- 55.1 million K-12 students, expected to increase to 74 million by 2015
- 14,383 public school districts
- 124,110 public and private schools
- 3.6 million U.S. elementary and secondary school teachers (~10% Teacher-Leaders)
- $562 billion in K-12 expenditures
- Expenditures rose by an estimated 36% between 1995-96 and 2005-06
Source: Digest of Education Statistics 2006
