Nor’easter is a new baseball team which is about to make Springfield Massachusetts its home. The city have a moderate to low household income but the boom in the financial and healthcare sector is giving hope to the city.
The owner of the team wants the team to earn its revenue and at least break even in the first year. For the price decision to be made, the marketing director, Larry Buckigham prepared a survey but the response rate is minimal which can result in a loss for the organization if a major percentage of the correspondence decide not to show up for the game.
The marketing director can increase its marketing and advertising activities to increase awareness in the city. Once enough responses are generated, the marketing director can fix the price and if the price yields the result the owner wants, the team can kick off by selling their tickets.
The first part of this analysis specifies on what factor Nor’easters should take into consideration before establishing a price policy like understanding the pricing objective, determining the demand etc and it also analyze a ticket pricing plan for the Nor’easter first season.
Price is a very important element in any organization. It is the amount a company demands to be paid for its product or services offered and customers or consumers view price as what is been exchanged for the benefits derived from using an organization’s service or product. (MBA Knowledge Base).
An organization must set price when new product is been introduced to the market, introducing existing product into new distribution channel or new geographic market (Kotler and Keller, 2009 pg 212) Nor’eassters must take some factors into consideration before setting ticket prices :
Understanding the pricing Objectives- As said by Kotler and Keller (2009) that an organization can have any of five objectives through pricing which are maximum current profit, survival, maximum market skimming, maximum...