Paper Example on Ticket Pricing of a Sport Organization

Introduction

Ticket pricing is inevitable in the sports industry for any sporting activity that aims at maximizing on its revenue and minimizing on tax fee. Dynamic pricing is becoming more prevalent, and many sports executives have embraced this kind of pricing model. The sports industry has grown extremely competitive, and every league needs to explore all ways to ensure that they make realize maximum revenue. The sports management should be in a position to know the kind of pricing that is easily acceptable to the fans, for instance, many fans would prefer real-time pricing ticket since this allows them to plan their various schedule and manage time appropriately.

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Technology in ticket pricing is continuously advancing each day and making it possible to manage the pricing process logistically .customers and fans now have the opportunity to choose from the existing varieties of ticketing forms, for instance, the fan can purchase season's tickets thus securing price certainties due to the real-time pricing. When a consumer decides to use dynamic pricing, it is effortless for them to get significant savings on low demand sports or games (Gosh et al, 2004). However, the pricing ticket is relatively an expensive and complicated process. Ticket pricing sometimes involves educating the fans and those in charge of ticketing. The process is also faced with the several technical challenges at specific points. The technology has contributed significantly to the ticket pricing. For instance, back then, it could take days to have prices change, but currently, millions of tickets can be changed just by clicking a button.

Sometimes it becomes quite challenging to convince the fans that ticketing would be relatively cheaper and more convenient and efficient. But those who have embraced find it more convenient since you will not have to queue by the stadia gate to pay for a game.

Sports direct international limited is one of the sports organizations that has embraced the dynamic ticket pricing. The pricing depends significantly on the seasons. Since the technology has taken a significant role in the whole process, many fans can fill in their details online and pay for the ticket online (Ferguson et al,1991). The sports direct international limited has tried to facilitate the dynamic form of ticketing by offering a waiver for those who get their tickets online. The sports organisation use marketing management strategy to help roll out the product out on the market for the potential customers. The marketing mix as a pricing strategy can be applied efficiently.

In analyzing the pricing by the sports direct can be analyzed by comparing its pricing strategy with that of other sports organisations like the Underwater sports America. The strategy can be analyzed by use of various measurements, for instance, relating the amount paid by the customer and the value of satisfaction they derive from the sports service. The organisation applies ordering cost and inventory and inventory policy in determining a relatively fair discount. Sports Direct employs this strategy to come up with relative pricing that can attract the fans to purchase tickets of a particular league or game. The sports organization sometimes uses the Retail pricing strategy, and this method has enhanced the retention of the customers' loyalty. By using the retail pricing strategy, the sports Direct uses different prices on different stores depending on the location and ensuring that the pricing is relevant as far as the people within a particular region is concerned.

Pricing strategy is also commonly used by the sports organisation as the fan are willing to pay even more for a game that they feel is interesting or entertaining. This strategy is mainly applied on the service that attracts more purchase of the tickets by hiking the price after a given period, and this will have found when the customers are now addicted to the service or a particular game(Godley and Ashby,2015). This method helps in setting pricing objectives without necessarily being sensitive to the charges put in place. Long-term pricing is preferable to short-term pricing. Moreover, the sports Direct can also focus on the internet marketing platform to advance on the consumer subdivision as well.

Sports Direct also uses vertical line strategy which helps to set the pricing based on the th3e quality of service, for example, when a match is to be between two teams which have a lot of fans, then ticket prices are likely to be higher.

Summary

Ticket pricing is a very complicated process and a more trending activity in the sports industry thus it is very crucial for any league that focuses on maximizing the profits and revenue. Many sports organisations have come up to professionally deal with the ticketing issue and assist the sports industries in ticket pricing. However, the customer or fans' satisfaction has to be the priority, and their expectation met .customers' loyalty is considered to be very substantial for any sports to gain a steady profit. The sports venues are currently pricing tickets based on various factors like the day of the week, weather, quality of the league and the region. Many sports organisation are having their cards online and charged differing depending on the rating.

References

Goodley, S., & Ashby, J. (2015). Revealed: how Sports Direct effectively pays below the Minimum Wage. The Guardian.

Ferguson, D. G., Stewart, K. G., Jones, J. C. H., & Le Dressay, A. (1991). The pricing of sports events: do teams maximize profit?. The Journal of Industrial Economics, 297-310.

Ghosh, P., Roy, N., Das, S. K., & Basu, K. (2004, April). A game theory based pricing strategy for job allocation in mobile grids. In Parallel and Distributed Processing Symposium, 2004. Proceedings. 18th International (p. 82). IEEE.