Developing a pricing strategy DR DAVID HALTON UWE

Developing a pricing strategy DR DAVID HALTON, UWE

Developing a pricing strategy • pricing policies • pricing strategies • market vs cost • price as an economic factor

The market • many and varied • new and existing products • integration of marketing throughout the HEI

Markets and HEIs • market evaluation unnecessary not for profit organisation • propositions / examples against: – HEFCE requirements – Media comment – TRAC methodology – Vision mission and corporate strategy support

Pricing and admissions • price value in non-monetary terms • decisions re point scores / entrance requirements are pricing decisions

Pricing policies Corporate strategy Financial strategy Strategic pricing policy Elements of marketing mix

Pricing policies • definition of pricing policy • UWE’s set of regulations - Appendix A

Pricing strategies • develop pricing strategies for each of the main markets HEI serves. Presupposes – main market identification – collection of data • • a) customers / customer values b) price sensitivities c) costs d) competition e) reputation f) risks g) government policies h) product life cycle stage

Pricing strategies – analyse the data to: • a) inform corporate strategy developments • b) inform pricing strategy development and hence financial strategy

UWE example • corporate plan – managed change in characterisation of UWE’s student intake – significant increase in scale of research, postgraduate and consultancy activity – extension of UWE’s international dimension • strategic priority – improve the quality of student intake; reduce exposure to UCAS clearing

UWE example • UWE’s weak characteristics – insufficiently high overall ratio of applications to places - reflects lack of sufficient ‘brand recognition and differentiation’ – heavy reliance on clearing system – disappointing quality of intake in some areas

UWE Corporate plan - some objectives • develop its brand value • improve quality of full time student intake • reduce dependence on clearing • build upon reputation for teaching quality

Market evaluation • markets where full time student numbers migh increase if ‘price offer’ increased (High price / higher value market) • markets where if the above occurs less students would be attracted (Low price / low value market)

High risk pricing strategy • possible under recruitment - reputational, financial risk • additional benefits – attacked price culture across all UWE – prompted review of admissions procedures

Pricing strategy and strategic outcome Level 1 Undergraduate Entry through UCAS Overall position statement as at 28/09/01

Presentation summary • pricing policies and pricing strategies • interpretation of corporate objectives with financial strategy and market analysis of main markets • gave an example of the adoption of a pricing strategy for those markets where analysis suggested there would be a positive response

Thank you