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SEM2 3.04 – Employ product-mix strategies to meet customer expectations. Types of ticket-sales programs. Many factors are used to estimate ticket sales for sporting events, such as corporate sponsorships and promotional events, facility size, and past ticket sales.
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SEM2 3.04 – Employ product-mix strategies to meet customer expectations.
Types of ticket-sales programs • Many factors are used to estimate ticket sales for sporting events, such as corporate sponsorships and promotional events, facility size, and past ticket sales. • In addition, a very important aspect to consider is how well the team is performing. If the team is winning, sales tend to go up. If the team is experiencing a losing streak, the ticket sales tend to go down.
Reasons for bundling/packaging extra amenities with tickets • Bundling extra amenities with tickets involves including certain additional products along with the ticket. • For example, a ticket to an event might also provide the individual with a souvenir T-shirt and a boxed lunch. • The price for the bundle is a little more than the price of only a ticket, but people are willing to pay more to obtain the extra amenities. • The higher price of the bundle increases revenue, which is one reason why sport/event marketers often bundle amenities with tickets.
Reasons for bundling/packaging extra amenities with tickets • Product bundling is a pricing strategy in which a business packages products together and sells the package for a lower price than if the consumer were to buy each product in the package separately. • For example, a professional ice hockey team might offer a family package that includes four tickets, four meals, and four T-shirts for $89. If families were to purchase each item separately, they would pay more than $89. • Businesses use product bundling to increase income, get consumers to try a new product (e.g., ticket) that they wouldn't normally purchase, or to deplete stock for slow-moving products.
Need for pre-season booking strategy • Sport organizations often develop pre-season booking strategies to sell as many tickets as possible before the season begins. • An effective way to do this is to target current ticket holders, who are the spectators who have tickets for the season and regularly attend. These spectators are more likely than other groups to buy tickets for next season in advance.
Need for pre-season booking strategy • Preseason booking is used when a sport/event organization sells or obtains purchasing commitments from its fans/customers before a sport season begins. • For example, professional football teams (e.g., NFL) generally play games between September and January. To fill the stadium and generate revenue, teams begin selling tickets before the first game. • The teams want to make sure they do not begin selling too early or too late, so timing is an important factor. Target markets might include corporate luxury box owners, season ticket owners, and tourist groups. • Selling methods often vary by target market. For example, direct mail might be used to communicate with season ticket holders. Since luxury box owners spend more money for their seating accommodations, personal selling techniques are often more effective to communicate information about the sport product.
3.04 Activity 1 Brainstorm at least 10 ideas of extra amenities that could be bundled with tickets for a school or local event.
3.04 Activity 2 Identify a sport/event that has a web site containing its pre-season booking strategy. Recommend ways to improve the sport/event’s strategy.
