price led market? price led marketing? e: [email protected] m: 07903 757739

Price Led Market?Price Led Market?

Price Led Marketing?Price Led Marketing?E: [email protected]

M: 07903 757739

The Consumer’s Price/Cost matrix

More than £ price:

Financial: fees Academic: entry grade ‘currency’ Indirect: accommodation/living costs Discounts/incentives:

scholarships/bursaries Opportunity Costs

Work <> Time <> Alternatives

Price (or Value) ‘Bandwidths’Potential for differential markets to emerge

Pricing 2012

£6k £9k

£ Pricing Research

4 main Consumer market methods Concept Test Van Westendorp Brand Price Trade offs Conjoint analysis

(B2B mainly qual)

Optimal conditions: Clear framework/s and reference points Equilibrium Tangible sets of features and benefits Comparability

Little real insight to be gained from Pricing Research

Pricing Strategies

Cost Cost-plus Marginal-cost Contribution margin-

based Absorption pricing

Consumer Market-oriented Value Based Psychological

Channel Retail <> Direct/Online

Competitive/Entrepreneurial Competitive Price leadership Target pricing Limit pricing Predatory High-low pricing (ranging)

Premium Decoy Penetration Creaming or skimming Loss leader Dynamic Price discrimination

£ Pricing outlook now

Offa deadline for > £6k HEIs by mid AprilFee setting likely to be guided by:

HEI Cost Plus ... Plus, Plus, Plus Price leaders <> Followers Fear of –ve Price Position

State Politics Funding Offa NSP et al

£ Pricing 2012 ???

£6k £9k

£9k£8k

£ Price Differentials ???

Probably not significant enough for a Price Oriented Market

£ Price Impacts on Demand

Looking Forward: Uni of Leicester:

Slight but real decline at £7k; Segmentation impacts

Sutton Trust Marked Decline; Lower socio-econ groups more debt averse

Euro RSCG Heist HEPI

- 1.9% per £1k

Looking Back: BIS: from £3k base

Fees: + £1k pa >> - 4.4% demand Finance: + £1k pa >> + c. 2.5% demand

Exponential Effect ???

- 5% >>> - 20% ??

£ Price Impacts on DemandMACRO and Segment Variables

£ Price

Fundability/Payability/Deferability

Debt Aversion

Perceived Value of a Degree

£ Sponsor/Parent Support

£ Perceived Total Cost

Price <> Value ‘Bandwidths’: Demographics Attitudes Geographic catchments

Parents/Influencers

University Brand Subject area Course

Changing as information issued/assimilated

National <> HEISegment cross-mapping

… and consumer understanding and attitudes

Dig that Data

‘Hoover effect’ ....

‘Hoover effect’:Premium Brand Preference

When £ price makes little difference ...

‘Premium’ wins (other things =)

‘Value’ MarketingAspirant Consumers

‘Echelons’HEPI’s

Unmet demand?

Hard times coming

The Demographic Dip Recession: disposable income; graduate job prospects Increasing graduate debt > impacts on PG demand

Greater competition for overseas markets UK Visa controls

Drives to third leg incomes >>> more competition Declining training and R&D budgets Decline in charitable donations

ELQs Govt/HEFCE Funding packages Confusion

Hard times coming

David Willetts #1:

Funding for teaching to follow student choices Assumed average fee of £7,500. Otherwise further offsets in HEFCE grant Reconfigurations for ITT and Nursing/Health Student Visa REF et al?

Transparency: Unistats, NSS and TRAC >>>> KIS 17 points Incl contact time, costs, outcomes

Harder times comingDavid Willetts #2:

Public Sector Modernisation (White Paper to follow) Most powerful driver of reform: let new providers

(worldwide) into the system

Removal of current barriers: Allow alternative providers to access student loans and

grants system Allow external degree awarding bodies (BTEC) Encourage FEIs/Employer and award body groups Protect FEI (franchised?) interests in HE provision Review options to freeing up numbers (off the books) ‘A price that represents good value’

‘Our ambition is to make this framework as de-regulatory as we can’

‘Value’ Marketing ???

‘It’s the Economy Stupid’

Volume

Price

EQ.

New Market Conditions

Supply and Demand NOT in equilibrium NOT ‘filling places’/containing demand Mission NOT caretaking the public purse Away from managing budgets

Need to Survive and Thrive Attract/Optimise Demand to Capacity Differentiate through VALUE &/or PRICE Generate PROFITS Towards Investment and Return

Operational <> Cultural

Marketing Fitness

Market Fitness

Marketing Fitness

Maximise (Current) Position and Proposition Brand Position Benefits and Features Values Service Bursaries/Scholarships/Offa/NSP et al

‘Investigate the Product until it reveals its Truth’

Optimise and Integrate Channel Effectiveness: Advertising PR/Comms Key literature Web site <> e-marketing/comms <> e-service Conversion <> Admissions <> CRM Schools Liaison <> Widening Participation

Marketing Fitness

Portfolio Review and Development International Part-time

Market Research

Business Stream Development International Part-time Postgraduate Third Stream: Alumni and Fundraising; B2B

Competitors and Positions Identification and Analysis

Data Analysis UCAS, HESA/Heidi Brit. Council Et al

Published benchmarks League Tables Other/specific published comparators, guides etc

Positioning Aggregation of messaging/inputs for consumer perceptions

Specific Competitor Analysis Product/s Services/Resources Position/s and Proposition/s Features and Benefits

Perceptions Research

Competition <> Comparison <> Competitiveness

From intangible to more tangible ‘value’?

Partnerships/collaborations Endorsement/s Sponsorship ‘Business’ engagement Adding value to student cvs Admin Service Pastoral ‘service’ (the student life >> affinity) Academic Service Quality underpinnings/evidences Mode: student attendance ‘efficiency’

Perceived Value of a Degree

SatisfactionPreference

Marketing Function Fitness

But largely:

More effectively doing what we’re already doing

... or ... doing what we should be doing!

Corporate/BusinessRequirements and Support:

Mission, Corp. Strategy/PlanVC and SMT

Authority & Policy as required Internal Clients:Corporate

FacultyDepartmentsProf Services

Markets and Audiences:

ExternalInternal

Support/PartnerFunctions:

Engaged and supporting appropriate Marketing

needs

M&C Functions/Svcs

Relate to Clients and Markets/Audiences

Clear Delivery of Objectives, Strategies and Plans

Marketing:Leadership

AnalysisObjectivesStrategy

OperationsSystems

Market Fitness

Corporate/BusinessRequirements and Support:

Mission, Corp. Strategy/PlanVC and SMT

Authority & Policy as required

Marketing:Leadership

AnalysisObjectivesStrategy

OperationsSystems

Internal Clients:Corporate

FacultyDepartmentsProf Services

Markets and Audiences:

ExternalInternal

Support/PartnerFunctions:

Engaged and supporting appropriate Marketing

needs

M&C Functions/Svcs

Relate to Clients and Markets/Audiences

Clear Delivery of Objectives, Strategies and Plans

The Change Agenda

Market FitnessProduct MUST be on the agenda

Innovation

Portfolio relevance Content Quality <> Evidenced Credentials Mode Duration Service Cost >>> Price Value Benefit from increased empathy ??

‘Echelon’ Strategies/Tactics

Defend

Hoover tacticsDefend

Extend

Innovate

Hoover tactics

Correlations to Change/Innovation ?

Brand PreferenceCompetitive

In XXX conditions

and YYY circumstances,

I would prefer to have that brand’s product over the others that are available.

Composite Position/Strategy

Lead PropositionBrand Substance

Delivery through

Theme or

activity

Foundation in Operations

Common Features/Benefits

Delivery through

Theme or

activity

Delivery through

Theme or

activity

Delivery through

Theme or

activity

A time to Drive Change

Kotter’s first two steps:1. Establish a Sense of Urgency Research the Market Analyse the Competition Identify and discuss (potential) crises and opportunities

2. Create a Coalition Powerful and Influential group that leads Work as a team

>>> vision, empowerment, early wins, consolidation

EXTERNAL

INTERNAL

Product and Service

Iterative and Parallel development

Brand Delivery

READERS

WRITERS

Shared Beliefs and Goals

STUDENTS

Metroville University

Buckingham; BPP; Open; Birkbeck

Shared Beliefs and Goals

LECTURERS andProf. SERVICES

Good Marketing delivers in the Hard Times

What you did yesterday has put you where you are today

What you do today, needs to put you where you want to be tomorrow

Selling ... and adding value ... for today... as a component of ...Marketing for tomorrow

Price Led Market?Price Led Market?

Price Led Marketing?Price Led Marketing?E: [email protected]

M: 07903 757739

price led market? price led marketing? e: [email protected] m: 07903 757739

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