Williamson Pricing Strategy

It is evident that hosting the Olympics games is no walk in the park. The countries trusted with this task have to spend billions to make the games a reality. Some people believe that the countries, even after spending billions of dollars benefit from the games, while others believe that the money can be spent elsewhere more efficiently. To reach a conclusion, one must study all of the different impacts in all of the different sectors the games have.

Another aspect the company needs to take into consideration is about the company’s positioning. The company needs to take into consideration how customers perceive brand and related services to be sure they won’t go toward competitors offer even if they offer higher prices that Olympic does.

Athletics Supreme’s sportswear prices are affordable when compared to higher priced competitors like Walmart Stores and Dick’s Sporting Goods with a pricing strategy designed and employed to offer competition to its rival companies. The company does not compromise on its quality craftsmanhip while still offering low prices because it is confident of its loyal consumers. The company’s pricing methodology is flexible and depends generally on the economic trends that might influence buyer behavior in targeted segments focusing on total customer satisfaction as a way of encouraging brand loyalty in a highly competitive

“For a promotion to be successful, it must be profitable. And to be profitable, it must enhance some, if not all, of the following goals: 1. Paid attendance, 2. Corporate tie-ins, 3. Sponsor value, and 4. Media coverage” (Helitzer 317). Promotions must increase the number of people at the event, or paid attendance, it also must enhance corporate tie-ins, which are signs or give-a-ways at the stadium. Sponsor value, or the value perceived by the sponsor must also be enhanced along with media coverage. Media coverage is enhanced by sending the local or national media sources bulletins about the events or by having press conferences. A strategy that a sports marketer must use is to stagger the promotional gimmicks throughout the event. If one staggers the promotion, then the audience is always aware of the event and looking out for the promotions.

Sports teams are switching to a variable-pricing strategy for tickets so that they can get a higher profit on games with record attendance numbers. They feel the need to do so because the marginal costs, such as construction payment and players’ salaries, did not equal to the marginal revenue, since attendance was severely dropping. To pay for the marginal cost, the sports team needed to capitalize on things that they were sure of, like increasing attendances to games between major sporting rivals.

The more a sport becomes commercialized, the higher the cost of participating for the athlete. One example would be that there are entry fees established to help raise monies that will be awarded to the winner and the sponsoring company.

A. Explain what type of market structure is presented in the movie. Explain the types of strategies Joe Fox and Kathleen Kelly use to compete and maintain market power. Differentiate between pricing and non-pricing strategies (use Chapter 7 in Stengel’s textbook). You can expand and talk about potential strategies in the bookselling business even if they were not explicitly addressed in the movie.

In order to avoid the venues underutilized, which should be more commercial development, such as hotel, exhibitions, conferences, office and other functions, enhance the value of the venues. To build more temporary venues before the Olympic Games, it can be removed after the game. Many sites should be reserved for large-scale commercial services, rather than just been sport game grounds. Finally, the host city should pay

The Marketing Mix is the name given to the elements which are the key components which a marketing plan should be based upon. Typically in Marketing literature there are four elements: price, place, promotion and product, however this is now sometimes expanded to incorporate another 3 elements: people, physical evidence and process. Pricing policy is clearly very important to the marketing mix and is affected by variables such as firm’s objectives, the nature of competition, demand and firm costs. Firms operate pricing in different ways according to their marketing strategy and the industry in which they participate; an example of pricing methods will be shown and evaluated further in the

Prices for a good or service is determined by supply and demand. For tickets to sporting events, there are a set number of tickets which means the quantity is limited and set long before the season starts. The supply curve is perfectly inelastic at the stadium’s capacity. This means that the marginal cost is close to zero until the stadium’s capacity is reached. Depending on where this quantity lies relative to the demand curve determines whether the team will decide to sell out or have empty seats. If the team maximizes profits by not selling out, then the team will decide to have empty

After implementing their dynamic pricing model to change from setting uniform ticket prices to individual pricing levels for each game throughout the year, the complexity of concepts that were involved in their processes increased. One concept directly related to what we have studied in the text is multiple-regression analysis which is represented by the dynamic pricing model that the team put into place to increase revenue. The team took three factors that they felt were the most influential in ticket sales trends and implemented them into this analysis to determine their pricing for each seat in the arena for each game. Those factors; opponent strength, day of week, time of year are somewhat subjective on a team by team basis. Nearly all of the teams in the NBA have more trouble selling weeknight games versus weekend, so that is definitely a key factor in pricing as they can lower prices in some sections on weeknights and raise them in others on the weekends. Time of the year is a factor multiple ways, weather outside, competitiveness of play, and other factors that may attract fans in the area. Obviously, the Magic will sell more tickets late in the season if they are playing good and going to the playoffs. The opponent strength is an important factor as well, if the Magic were to sell out a home game it is

Sports economist believe ticket prices are too low because economist believe the reasoning behind lower ticket prices was due to “The accumulated empirical evidence that reveals hat low prices for professional sports are a deliberate strategy of team owners” (Porter & Thomas, 2010, p. 701). Furthermore, lower ticket prices was intentionally and knowingly done as part of a strategy of the team owners. Likewise, the team owners purposely priced the tickets lower where demand was inelastic and excess demand existed. Many believed this was evidence that the owners priced the tickets lower to influence the political outcome. Furthermore, these tickets were being sold at unbefitting profit maximizing prices.

The greater the demand of a product, the greater the associated value, and hence greater will be price. Price is also dependent upon the supply of a product, the lower the supply, the higher the price. The price of a product is also dependent upon the state of the overall economic conditions. At the time of the recent recession, the ticket prices of matches and merchandise were set at a comparatively lower level than at the time of a boom. (Kotler)

As is known, pricing is one of the most important steps for business plan which needs good research, calculations and formulations. There are different pricing strategies to put into effect due to the market and product conditions, such as premium pricing, penetration pricing, economy pricing, price skimming(Voice Marketing, 2012). These four pricing strategies are main pricing policies. They form the bases for the exercise. However there are other important approaches to pricing. These pricing strategies are: Psychological pricing, product line

Price, which is one of the most important elements of the marketing mix, can be difficult to get right. Pricing too high, or low, can negatively impact on customer satisfaction and revenue. Adopting a pricing strategy is necessary to achieve desired sales objectives (Chan & Wong 2005).