Because of increased competition for scarce resources, marketing has become an important activity of many nonprofit organizations. Higher education institutions, as one of these nonprofit organizations, provide us with excellent examples of this trend (Hayes, 1991). The marketing of higher education has received a tremendous amount of emphasis and attention. Distance education (DE) has become an accepted form of education and has been gaining widespread popularity in recent years. Marketing concept has been gaining importance in distance education sector throughout the world. The factors responsible for this are self-support policies, increasing competitiveness in the marketplace, rising customer expectations, widening access to education etc (Gupta, 2005). More than 70 countries are offering educational programmes through distance education all over the world today (Sudalaimuthu, Visited 3rd March, 2005, http://www.ignou.ac.in/Theme-1/S.%20Sudalaimuthu.htm). Because of flexibility, convenience and opportunity, distance education is becoming so popular, profitable and vital. By 2005, 90% of American universities will offer at least one course online. Currently about 3 million Americans are distance education students (Gonzales, 2002). In this paper, I will discuss the following questions: What is the brief history and changing environment of distance education? Which marketing communication tools are used in DE institutions? What benefits does marketing communications provide to DE institutions? (Contains 2 tables.)