Book Chapter

Pricing and Funding as Revenue Sources

Kolb, Bonita M.

2013

Overview

Cultural organizations have too often thought of marketing as only involving a product and its promotion. However, to develop a sound marketing strategy, the pricing of the product must be considered. Cultural organizations are not able to price their product so as no other revenue is needed to cover their expenses. If they could, they would then be a for profit business. Since non-profit cultural organizations cannot exist on direct revenue alone, they also receive funding from additional sources. Fundraising from the public and government grants are critical sources of revenue. However, pricing theory is still important to understand because the more revenue that can be obtained directly from customers, the less time and effort will need to be put into other forms of raising revenue. The days when cultural organizations could ignore the basics of pricing theory are gone. Pricing strategy, such as differential pricing, can even be used to motivate attendance at cultural events. Therefore, an understanding of the cost, competition, and prestige approach to pricing is necessary.

• Publisher: Routledge,Taylor & Francis Group
• Subject: Sales & marketing
• ISBN: 9780415626972, 9780415626958, 0415626951, 0415626978