Sports & Entertainment Marketing I
4.07 Develop a foundational knowledge of PRICING to understand
its role in marketing
Factors Affecting Pricing
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Market __________________ = how much of a product customers will buy at a certain
price
Market _____________________ (Target Market)
Smoothing = dividing product into different ________________
o Time
o Place
Responding to ______________________________
PRICE ELASTICITY
1. Measures how sensitive customers are to ___________________________________.
2. INELASTIC DEMAND
o Price changes have ________________________ impact on sales
3. ELASTIC DEMAND
o Small price changes have ________________________ impact on sales
TWO TYPES OF PRICING STRATEGIES
1. ________________________: Setting prices lower than competition
 Used to ___________________________________or to encourage maximum
participation
2. __________________________: Setting prices higher than the competition
 Used to keep new competition out of market or _____________ “high class”
Pricing Issues
Cost
Value
Objectives
Different Pricing Objectives
Company Focused
Competitor Focused
Customer Focused
Ticket Pricing Strategies
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Scaling the House – pricing tickets __________________ based on location of seats or
time of purchase.
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Yield Management Pricing - __________ revenue with venues with limited capacity.