Marketing instruments: Price, Place and Promotions

For today you were supposed to:◦ Finish worksheet 6◦ Finish reading the book

For next time (October 29th):◦ Finish worksheet 7

October 29: practical Stuff: organisations, taxes etc.

November 5: New Media

Marketing instruments◦ Price◦ Promotion

•Based on competition

•Based on production cost

•

Based on what the consumer wants to pay for

it

–All 3 factors are important!

Elasticity: difference in price causes change in demand

Negative elasticity is normal: higher prices, lower sales

Elastic: demand changes more than price

In-elastic: demand changes less than price

How much would you want to earn? How much do you earn at this moment? What is your minimum you need? How much do you need to live in comfort? How much do you expect to earn in the

future? Bruto modal income NL is according to CPB

in 2010 €31.930, ca. €2.660 per month. (2009 same)

This means netto per month ± € 1613,96,--

• Example: organize a concert, and give away a free cup of coffee during the intermission

• Fixed costs: • hall, piano, publicity, flowers• Variable costs: • coffee, fee per visitor imposed by management of hall• Price:• What´s the BE point?• If you know the amount of chairs, can you give the minimum

price?

Fixed costs

Price- variabel costsBreak Even Point=

What do your colleagues get for a gig? What do they get for a music lesson?

What price is expected by a consumer?◦ Concert tickets◦ Music lessons◦ CD’s

What does a consumer think when it is:◦ More expensive?◦ Less expensive?◦ Same price?

How can you use price as a marketing instrument?

Who is you target group? Where and how can you reach them? How do you want to promote yourself?

(Positioning)

◦Choose the right medium!

You will organize a concert:◦What are you going to play?◦For whom?◦Where and how can you reach them?◦How do you want to promote yourself?

◦Choose your media◦When: Timeline

Advertising Free Publicity Direct Marketing Word of Mouth Personal selling

Handboek Pers en Publiciteit Kamervraag (adressen podia):

www.kamervraag.nl www.beroepkunstenaar.nl

Waat is direct marketing?◦ Anybody of you already uses direct marketing?◦ Need for a database◦ How do you build a database?◦ Legal consequences