Business Marketing - Chaffey College€¦ · U.S. Department of Education’s Integrated Postsecondary Education Data System (IPEDS). All comparison institutions included in this

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Business Marketing

April 2014 Needs Assessment

Prepared by Danielle Pearson Date: April 18, 2014

Business Marketing

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Scope Data compiled in this report covers San Bernardino, Riverside, Orange, and Los Angeles Counties. Data were drawn from external sources, including the Employment Development Department’s California Labor Market Information and the U.S. Department of Education’s Integrated Postsecondary Education Data System (IPEDS), as well as Chaffey College’s Colleague Administrative database. Data Sources and Calculations Educational Program Data TOP Code Program of Study 0509.00 Marketing and Distribution

The Taxonomy of Programs (TOP) is a standardized system used at the state level to classify programs and courses that are intended to achieve the same outcome at California Community Colleges. CIP Code Program of Study

52.1801 Sales, Distribution, and Marketing Operations, General The Classification of Instructional Programs (CIP) is a standardized coding system used at the federal level to facilitate accurate tracking, assessment, and reporting of fields of study and program completion at educational institutions throughout the country. This report draws on the Sales, Distribution, and Marketing Operations, General CIP code, which maps to the Marketing and Distribution TOP code, to compare Chaffey College to other institutions and examine employment trends. Completions Data Degree and certificate data regarding students at Chaffey College were collected from the Colleague Administrative database. Degree and certificate data for all comparison schools were collected from the U.S. Department of Education’s Integrated Postsecondary Education Data System (IPEDS). All comparison institutions included in this report are postsecondary and have provided data to IPEDS. IPEDS defines postsecondary education as a formal program designed primarily for students beyond high school age. These include academic, vocational, and continuing professional education, and exclude avocational and adult basic education programs. Occupational Data SOC Code Occupational Title

13.1022 Wholesale and Retail Buyers, Except Farm Products

13.1023 Purchasing Agents, Except Wholesale, Retail, and Farm Products

41.2031 Retail Salespersons

41.4012 Sales Representatives, Wholesale and Manufacturing, Except Technical and Scientific Products

41.9041 Telemarketers The Standard Occupational Classification (SOC) system is used by federal statistical agencies to classify workers into occupational categories. The General Sales, Distribution, and Marketing Operations CIP code was mapped to the SOC codes listed in the table above using the crosswalk described in the paragraph below.

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Educational Program to Occupation Crosswalk The TOP-CIP-SOC Crosswalk (Employment Development Department, 2007) was used in this report to map TOP codes to CIP and SOC codes. This crosswalk allows the user to estimate labor market demand for California Community College program completers using SOC-based projections from the California Labor Market Information Division. Industry Data The North American Industry Classification System (NAICS) is used by federal statistical agencies to classify business establishments for the purpose of conducting and reporting research on the U.S. business economy. The Standard Occupation Classification codes are mapped to industry data by the California Labor Market Information Division. Industry information is used to observe trends across the industries that employ the occupations identified above.

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Introduction and Contents Contents Background Information 5 Regional Job Outlook 10 Largest and Fastest Growing Industry Employers 14 Regional Graduation Summary 19 Sample Program 21 Enrollment and Completion in a Similar Program at Chaffey College 22 Purpose and Goals Chaffey College currently offers a 15 unit Non-transcripted Certificate in Business Administration/Marketing. According to the 2013-14 College Catalog, this certificate “prepares students for marketing and management training positions that require a working knowledge of marketing, advertising, and sales.” A Marketing A.S. Degree is being proposed; the Associate in Science in Business with a concentration in Marketing is designed for the student seeking a career in marketing upon completion of the Associate Degree. This degree/concentration may also be appropriate for students planning to transfer to a four-year institution other than a California State University. The purpose of this report is to integrate and analyze data from multiple sources to determine labor market needs for the addition of a Marketing degree at Chaffey College. The report describes the regional job outlook and compares it to the number of recent graduates at other regional institutions.

Regional Definitions Inland Empire includes the Riverside-San Bernardino-Ontario Metropolitan Statistical Area (MSA) Los Angeles County includes the Los Angeles-Long Beach-Glendale Metropolitan Division Orange County includes the Santa Ana-Anaheim-Irvine Metropolitan Division Key Terms and Concepts Replacement Jobs: Replacement jobs refer to the number of job openings due to workers leaving an occupation. Annual Openings: Annual openings are calculated by adding the number of new jobs to the number of replacement jobs, divided by the number of years in the projection period. Projections: Projections of employment are calculated by the Employment Development Department and are based on a mathematical formula that includes historical employment and economic indicators along with national, state, and local trends. Occupation: Jobs are grouped into occupations using the federal Standard Occupational Classification (SOC) system. Industry: Occupations are grouped into industries using the North American Industry Classification System (NAICS). Wages: Hourly wages are reported in percentiles and averages. The 25th percentile is a useful proxy of entry-level wages and the 75th percentile of experienced-level wages.

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Background Information

1 California Community Colleges, Chancellor’s Office, Taxonomy of Programs, Sixth Edition (Corrected Version). 2 O*Net Online: http://www.onetonline.org/find/

Marketing and Distribution

Marketing and Distribution programs in California Community Colleges teach marketing functions and tasks that facilitate the flow of goods and services to customers and/or ultimate consumers.1 The following five occupational categories provide employment opportunities for completers of Marketing and Distribution programs. The descriptions of job duties are provided by the Occupational Information Network.2

Wholesale and Retail Buyers, Except Farm Products2

Wholesale and Retail Buyers, Except Farm Products, buy merchandise or commodities, other than farm products, for resale to consumers at the wholesale or retail level, including both durable and nondurable goods. They analyze past buying trends, sales records, price, and quality of merchandise to determine value and yield. They select, order, and authorize payment for merchandise according to contractual agreements. They also may conduct meetings with sales personnel and introduce new products. This job description includes assistant wholesale and retail buyers of nonfarm products. Related job titles: Buyer, Trader, Merchandiser, Procurement Specialist, Category Manager, Merchandise Manager, Product Manager, Purchasing Manager Typical Tasks

♦ Use computers to organize and locate inventory, and operate spreadsheet and word processing software.

♦ Negotiate prices, discount terms, and transportation arrangements for merchandise. ♦ Manage the department for which they buy. ♦ Confer with sales and purchasing personnel to obtain information about customer

needs and preferences. ♦ Examine, select, order, and purchase at the most favorable price merchandise

consistent with quality, quantity, specification requirements, and other factors. ♦ Monitor and analyze sales records, trends, or economic conditions to anticipate

consumer buying patterns and determine what the company will sell and how much inventory is needed.

♦ Set or recommend mark-up rates, mark-down rates, and selling prices for merchandise.

♦ Authorize payment of invoices or return of merchandise. ♦ Interview and work closely with vendors to obtain and develop desired products. ♦ Conduct staff meetings with sales personnel to introduce new merchandise.

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Purchasing Agents, Except Wholesale, Retail, and Farm Products2

Purchasing Agents, Except Wholesale, Retail, and Farm Products, purchase machinery, equipment, tools, parts, supplies, or services necessary for the operation of an establishment. They also purchase raw or semi-finished materials for manufacturing. Related job titles: Buyer, Purchasing Agent, Procurement Specialist, Purchasing Manager, Purchasing Administrator Typical Tasks

♦ Prepare purchase orders, solicit bid proposals, and review requisitions for goods and services.

♦ Purchas the highest quality merchandise at the lowest possible price and in correct amounts.

♦ Monitor and follow applicable laws and regulations. ♦ Research and evaluate suppliers based on price, quality, selection, service, support,

availability, reliability, production and distribution capabilities, and the supplier’s reputation and history.

♦ Negotiate, renegotiate, and administer contracts with suppliers, vendors, and other representatives.

♦ Analyze price proposals, financial reports, and other data and information to determine reasonable prices.

♦ Maintain and review computerized or manual records of items purchased, costs, deliveries, product performance, and inventories.

♦ Write and review product specifications, maintaining a working technical knowledge of the goods or services to be purchased.

♦ Formulate policies and procedures for bid proposals and procurement of goods and services.

♦ Evaluate and monitor contract performance to ensure compliance with contractual obligations and to determine need for changes.

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Retail Salespersons2

Retail Salespersons sell merchandise, such as furniture, motor vehicles, appliances, or apparel to consumers. Related job titles: Sales Associate, Sales Consultant, Sales Clerk, Sales Person, Customer Assistant, Clerk, Sales Representative, Design Consultant, Salesman, Bridal Consultant Typical Tasks

♦ Greet customers and ascertain what each customer wants or needs. ♦ Describe merchandise and explain use, operation, and care of merchandise to

customers. ♦ Recommend, select, and help locate or obtain merchandise based on customer needs

and desires. ♦ Compute sales prices, total purchases, and receive and process cash or credit

payment. ♦ Answer questions regarding the store and its merchandise. ♦ Prepare sales slips or sales contracts. ♦ Maintain knowledge of current sales and promotions, policies regarding payment and

exchanges, and security practices. ♦ Maintain records related to sales. ♦ Demonstrate use or operation of merchandise. ♦ Place special orders or call other stores to find desired items.

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Sales Representatives, Wholesale and Manufacturing, Except Technical and Scientific Products2

Sales Representatives, Wholesale and Manufacturing, Except Technical and Scientific Products, sell goods for wholesalers or manufacturers to businesses or groups of individuals. This work requires substantial knowledge of items sold. Related job titles: Account Executive, Account Manager, Outside Sales, Outside Sales Representative, Sales, Sales Consultant, Sales Director, Sales Rep, Sales Representative, Salesman Typical Tasks

♦ Contact regular and prospective customers to demonstrate products, explain product features, and solicit orders.

♦ Recommend products to customers, based on customers’ needs and interests. ♦ Answer customers’ questions about products, prices, availability, product uses, and

credit terms. ♦ Estimate or quote prices, credit or contract terms, warranties, and delivery dates. ♦ Consult with clients after sales or contract signings to resolve problems and to

provide ongoing support. ♦ Provide customers with product samples and catalogs. ♦ Identify prospective customers by using business directories, following leads from

existing clients, participating in organizations and clubs, and attending trade shows and conferences.

♦ Prepare drawings, estimates, and bids that meet specific customer needs. ♦ Monitor market conditions, product innovations, and competitors’ products, prices,

and sales. ♦ Perform administrative duties, such as preparing sales budgets and reports, keeping

sales records, and filing expense account reports.

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Telemarketers2

Telemarketers solicit donations or orders for goods or services over the telephone. Related job titles: Telemarketer, Telephone Sales Representative (TSR), Telesales Representative, Telephone Service Representative (TSR), Telemarketing Sales Representative, Telesales Specialist Typical Tasks

♦ Deliver prepared sales talks, reading from scripts that describe products or services, to persuade potential customers to purchase a product or service or to make a donation.

♦ Contact businesses or private individuals be telephone to solicit sales for goods or services, or to request donations for charitable causes.

♦ Explain products or services and prices, and answer questions from customers. ♦ Obtain customer information such as name, address, and payment method, and enter

orders into computers. ♦ Record names, addresses, purchases, and reactions of prospects contacted. ♦ Adjust sales scripts to better target the needs and interests of specific individuals. ♦ Obtain names and telephone numbers of potential customers from sources such as

telephone directories, magazine reply cards, and lists purchased from other organizations.

♦ Answer telephone calls from potential customers who have been solicited through advertisements.

♦ Telephone or write letters to respond to correspondence from customers or to follow up initial sales contacts.

♦ Maintain records of contacts, accounts, and orders.

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Regional Job Outlook Projected Regional Job Outlook The table below displays 2010 employment estimates and 2020 projections for occupations in the state of California, Inland Empire, Los Angeles County, and Orange County related to Marketing and Distribution programs. The most overall growth is expected for Sales Representatives, while the most modest growth expected is among Purchasing Agents.

Source: Labor Market Information Division, Employment Development Department, Occupation Profile, on the Internet at: http://www.labormarketinfo.edd.ca.gov/ (visited April 22, 2014).

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Estimated 2010 Jobs

Total Projected 2020 Jobs

Projected Growth (%)

Ave. Annual New Job Openings

Ave. Annual Replacement Job Openings

Ave. Annual Total Job Openings

Wholesale and Retail Buyers, Except Farm Products

State of California 15,900 18,600 2,700 (17.0%) 270 410 680

Inland Empire 850 1,020 170 (20.0%) 17 21 38 Los Angeles County 5,000 5,760 760 (15.2%) 76 126 202

Orange County 1,660 1,820 160 (9.6%) 16 42 58

Purchasing Agents, Except Wholesale, Retail, and Farm Products

State of California 32,000 34,500 2,500 (7.8%) 250 870 1,120

Inland Empire 1,870 2,060 190 (10.2%) 19 50 69

Los Angeles County 9,110 9,560 450 (4.9%) 45 244 289

Orange County 3,510 3,630 130 (3.7%) 13 93 106

Retail Salespersons

State of California 436,900 540,500 103,600 (23.7%) 10,360 12,840 23,200

Inland Empire 42,760 53,630 10,870 (25.4%) 1,870 472 2,342

Los Angeles County 114,910 139,500 24,560 (21.4%) 2,456 3,376 5,832

Orange County 43,870 51,870 8,000 (18.2%) 800 1,289 2,089

Sales Representatives, Wholesale and Manufacturing, Except Technical and Scientific Products

State of California 129,400 158,200 28,800 (22.3%) 2,880 3,040 5,920

Inland Empire 9,230 11,310 2,080 (22.5%) 208 217 425

Los Angeles County 42,090 50,200 8,110 (19.3%) 811 991 1,802

Orange County 14,710 15,950 1,240 (8.4%) 124 346 470

Telemarketers

State of California 20,500 22,900 2,400 (11.7%) 240 440 680

Inland Empire 1,410 1,520 110 (7.8%) 11 30 41

Los Angeles County 6,990 7,600 610 (8.7%) 61 149 210

Orange County 2,750 2,850 110 (4.0%) 11 58 69

http://www.labormarketinfo.edd.ca.gov/

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Projected Regional Job Growth The graphs below display the projected growth of Marketing and Distribution jobs from 2010 to 2020. Orange County is showing the slowest growth in terms of all five occupations. The Inland Empire is seeking growth at equal or slightly higher rates than at the state level for all occupations but Telemarketers.

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Regional Hourly Wages This table displays the first quarter 2013 hourly wage statistics of individuals employed in Marketing and Distribution occupations, by region. Wages for Purchasing Agents and Sales Representatives were higher than for Retail Salespersons and Telemarketers. Additionally, wages for workers in Orange County tended to be highest among the three regions, while wages in the Inland Empire tended to be the lowest.

Mean Hourly Rate 25th Percentile Median Hourly Rate 75th Percentile


State of California $26.77 $18.15 $24.35 $32.35

Inland Empire $26.61 $16.09 $23.16 $30.39 Los Angeles County $25.73 $16.78 $22.89 $31.33

Orange County $29.62 $21.43 $28.06 $35.17

Purchasing Agents, Except Wholesale, Retail, and Farm Products


Inland Empire $27.59 $20.87 $25.66 $32.19

Los Angeles County $31.19 $22.32 $29.55 $38.50

Orange County $31.86 $22.49 $30.42 $39.02

Retail Salespersons


Inland Empire $11.99 $9.04 $10.12 $12.69


Orange County $13.60 $9.13 $10.83 $14.30

Sales Representatives, Wholesale and Manufacturing, Except Technical and Scientific Products


Inland Empire $29.92 $18.88 $25.56 $36.27


Orange County $32.18 $18.54 $27.65 $40.85

Telemarketers


Inland Empire $13.48 $9.02 $10.58 $15.04


Orange County $15.81 $9.89 $13.69 $17.77



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Largest and Fastest Growing Industry Employers

Largest California Industry Employers of Marketing and Distribution Workers The graphs below display the 2010 staffing patterns of the industries employing the largest numbers of individuals in each Marketing and Distribution occupation across California. The largest industry employing Wholesale and Retail Buyers is Management of Companies and Enterprises (~25%). The largest industry employing Purchasing Agents is the Federal Government (~19%). The largest industry employing Retail Salespersons is Clothing Stores (~62%). The largest industry employing Sales Representatives is Electronic Markets and Agents/Brokers (~32%). The largest industry employing Telemarketers is Business Support Services (~53%).

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Source: Labor Market Information Division, Employment Development Department, Staffing Patterns, on the Internet at: http://www.labormarketinfo.edd.ca.gov/iomatrix/staffing-patterns1.asp (visited April 22, 2014). Change Over Time of the Largest Industry Employers of International Business and Trade Workers The graphs below display the projections of staffing changes from 2010-2020 within the largest industries that employ each Marketing and Distribution Occupation across California. The data indicate that the industries employing Purchasing Agents show mixed growth and decline. However, jobs with industries employing Wholesale and Retail Buyers, Retail Salespersons, Sales Representatives, and Telemarketers are largely expected to grow.

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Source: Labor Market Information Division, Employment Development Department, Staffing Patterns, on the Internet at: http://www.labormarketinfo.edd.ca.gov/iomatrix/staffing-patterns1.asp (visited April 22, 2014).

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Regional Graduation Summary Education and Training The five difference occupations associated with a Marketing and Distribution program differ in terms of education and training. Employers of Wholesale and Retail Buyers and Purchasing Agents are usually looking for candidates with a Bachelor’s degree. Employers of Retail Salespersons and Telemarketers usually expect an employee to be able to do the job after short-term on-the-job training. Employers of Sales Representatives typically expect an employee to be able to do the job after moderate-term on-the-job training (1-12 months).1 Regional Completers in Marketing and Distribution Programs The table below displays the number of program completers in the 2012-13 academic year at regional institutions offering an associate’s degree or certificate in a business field related to Marketing and Distribution, including Sales, Distribution, and Marketing Operations, General and Marketing/Marketing Management/General. Excluded were less directly relevant programs, such as Tourism and Travel Services Marketing Operations. There are 30 regional institutions offering degrees and/or certificates below the baccalaureate level. Everest College – Ontario Metro produces the most program completers, followed by El Camino Community College District.

Institution Name Award Level

< 1 year Certificate 1 to < 2 year Certificate

Associate’s Degree

2 to < 4 year Certificate

Allied American University -- -- -- 3

College of the Canyons 3 0 11 --

Cypress College 10 -- 7 --

East Los Angeles College -- -- 1 --

El Camino College – Compton Center 0 -- 0 --

El Camino Community College Dist. 14 1 9 --

Everest College – LA Wilshire -- -- 9 --

Everest College – Ontario Metro -- -- 44 --

Everest College – Reseda -- -- 2 --

Everest College – San Bernardino -- -- 14 --

Fullerton College 2 -- 1 --

Glendale Community College 0 -- 0 --

Long Beach City College -- 3 4 --

Los Angeles City College -- 1 3 --

Los Angeles Mission College -- -- 1 --

Los Angeles Pierce College 0 -- 2 --

Los Angeles Trade Technical College -- 1 1 --

Los Angeles Valley College -- -- 0 --

Moreno Valley College -- 1 -- --

1 Labor Market Information Division, Employment Development Department, Occupation Profile, on the Internet at: http://www.labormarketinfo.edd.ca.gov/ (visited April 22, 2014).

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Mt. San Antonio College 1 -- 1 --

Norco College -- 4 4 --

Orange Coast College 0 -- -- --

Pasadena City College -- 0 -- --

Riverside City College -- 2 3 --

Saddleback College 2 -- 3 --

Santa Ana College 5 -- 3 --

Santa Monica College -- 7 -- --

Santiago Canyon College 17 -- 4 -- The Art Institute of California – Argosy University Hollywood -- -- 18 --

The Art Institute of California – Argosy University San Diego -- -- -- 1

Total 54 20 145 4 Note: “--“ indicates that either this type of degree or certificate is not offered. Source: National Center for Education Statistics, U.S. Department of Education, Integrated Postsecondary Education Data System, on the Internet at: http://www.nces.ed.gov/collegenavigator/ (visited April 23, 2014)

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Sample Program International Business Program at Other Regional Institution College of the Canyons (COC) offers a certificate and an Associate of Science in Marketing. The table below illustrates the College of the Canyons program requirements for earning an Associate in Science Degree and Certificate of Achievement: Marketing.

COC Course COC Course Description COC Class Units Chaffey College Equivalent Course Chaffey

Class Units

BUS-100 Introduction to Business 3 BUS-10 Introduction to Business 3

BUS-110 Principles of Management 3 BUS-40 Introduction Management 3

BUS-140 Principles of Marketing 3 BUSMKT-40 Marketing Principles 3

BUS-141 Principles of Advertising 3 BUSMKT-55 Advertising 3

BUS-142 Principles of Selling 3 BUSMKT-13 Professional Selling 3

BUS-190 or BUS-192

Principles of Electronic Commerce E-Business Strategy

3 (3)

BUS-211 Business Law 3 BUS-28A Business Law I 3

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Enrollment and Completion in a Similar Program at Chaffey College

Description of Business Administration/Marketing Certificate Chaffey College currently offers a non-transcripted certificate in Business Administration/Marketing, which draws on similar knowledge as involved in Marketing and Distribution. A description of the Business Administration/Marketing certificate in the 2013-14 Course Catalog reads: “The Marketing Certificate prepares students for marketing and management training positions that require a working knowledge of marketing, advertising, and sales.” Aspects that are similar to the Marketing certificate and degree currently in place at College of the Canyons include various courses and seminars in business law, marketing principles, advertising, and selling. This program might be used as a model for the addition of a Marketing degree program at Chaffey College. Certificate and Enrollment Data for Marketing Enrollment To estimate the annual student enrollment in a Marketing degree program at Chaffey College, the enrollments of students in related courses were identified. The table below depicts the number of students at Chaffey College enrolled in courses that might be required to earn a Certificate or A.S. Degree in Marketing.

Course Course Description Academic Year

2008-2009 2009-2010 2010-2011 2011-2012 2012-2013

BUSMKT-40 Marketing Principles -- -- 167 144 154

BUSMKT-55 Advertising -- -- 95 77 74

BUSMKT-13 Professional Selling -- -- 99 87 78

BUS-28A Business Law I 703 759 761 644 635

Note: Enrollment numbers reflect all students who either enrolled after the start date, enrolled prior to the start date, or dropped after the start date. Certificate Completion The annual student completers from the 2008-09 through the 2012-13 Academic Year in the Business Administration/Marketing certificate program at Chaffey College were also identified to estimate the number of completers that might be expected in a Marketing degree program. Award Type Academic Year Total 2008-09 2009-10 2010-11 2011-12 2012-13 Certificate 5 3 5 5 6 24

Business Marketing - Chaffey College€¦ · U.S. Department of Education’s Integrated Postsecondary Education Data System (IPEDS). All comparison institutions included in this

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