If you ask questions like that you won't get good answers.

"Demand profits" - not how it works
If you make bad business decisions then you lose, when you lose the people not making those bad decisions survive.

a & b in situation one and two aren't mutually exclusive.

You seem to forget or be unaware that schools already spend a lot of time on marketing themselves anyway, it's important.

Schools also heavily market themselves on grades, curriculum, facilities, etc.