Sports Marketing

1051 Words3 Pages

The price that we pay is the value that we associate to any product, whether it is a good or service. It is the compensation given to a person or authority to purchase an object or service. The greater the value associated to the product, the greater the price.

The pricing process is dependent upon factors which can be categorized as internal and external factors. The internal factors include the factors that are within the control of the organization or the producer, whereas the external factors are influenced by the market or factors which are beyond the control of the producer.

Internal Factors

The internal factors are inclusive of the marketing mix of the organization and the organizational goals. The product itself is a huge influencer of the price. If the product offers a huge number of features, then the price is likely to be high. If a sports event offers a large amount of entertainment to the public then the price is likely to be high. The promotion part is very much linked to price as the seller usually promotes its product on the basis of pricing. Several products advertising campaigns are based on the price discounts being offered, for example selling the sports merchandise at half price will be advertised a lot in the shops.

The distribution of the product determines the pricing policy because if the seller decides to sell the product at exclusive stores then the price is likely to be high. The costs of production also affects the pricing as the higher the costs, the greater its price. The organizational goal is also a major influential factor for pricing. If the organization strives for profit maximization, then the price will be set high. However, if the aim of the seller is to survive then the price will be set...

... middle of paper ...

... the ticket prices are set very high and the organizers use the pricing strategy of prestige pricing to indicate that the event will be a spectacle itself. In another case, the organizers implement the price skimming strategy for matches featuring big time rivals. Matches between Real Madrid and Barcelona are charged very high to attract the best of the spectators. Therefore, the right pricing strategy depends upon the type of event or good being presented.

Bibliography

Allen, S. (n.d.). About.com Entrepreneurs. Retrieved from Pricing Methods: http://entrepreneurs.about.com/od/salesmarketing/a/pricingstrategy_2.htm

Kotler, P. (n.d.). Pricing Strategies. In P. Kotler, Principles of Marketing. Pearson Higher Education.

Marketing-Teacher. (n.d.). MarketingTeacher.com. Retrieved from Pricing Strategies: http://marketingteacher.com/lesson-store/lesson-pricing.html

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