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Developing a pricing strategy

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.

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Developing a pricing strategy

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  1. Developing a pricing strategy DR DAVID HALTON, UWE

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

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

  4. 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

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

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

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

  8. 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

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

  10. 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

  11. 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

  12. 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

  13. Market evaluation • markets where full time student numbers might 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)

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

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

  16. 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

  17. Thank you

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