ABSTRACT

Higher education institutions, like any business institution, should satisfy their clients (students) for them to survive in the higher education service business market. As a service business, higher education institutions also need to follow marketing principles in their attempt to attract potential students. We investigated the effect of marketing mix dimension on internal and external marketing in universities. The research used primary data from a questionnaire survey of 526 students in West Java Province, Indonesia, and then drew conclusions by a structural equation model (SEM) analysis. The research findings revealed that place, product, price and promotion have a positive effect on external marketing. Whereas physical evidence, people and processes have positive, significant effects on internal marketing. There was also positive, significant correlation between external marketing and internal marketing. The research findings were hopefully beneficial for higher education management, to be made as guidance in implementing their marketing strategy. Higher education leaders may apply the external marketing policy to attract potential student interest and the internal marketing policy to improve the quality of their service and internal marketing. The study delivered a broader picture of the application of marketing mix model on universities. In addition, the discussion presented the implication of the offered theory and practice, the research limitation, and the direction of future researchers.