Oasis and Ticketmaster Should Have Remembered the 7 Ps of Marketing

The Oasis reunion tour announced recently has been eagerly awaited by millions of fans and offered a perfect opportunity for marketers to capitalise on a key moment in music history. However, the situation quickly received media attention, largely due to the dynamic pricing model used by Ticketmaster, providing critical lessons for marketers across industries. 

Dynamic pricing is a model used in many industries. It involves the price of a product or service being adjusted in real-time based on demand, supply, and other external factors. In theory, it’s an effective way to maximise revenue, especially in sectors like travel and hospitality, where prices rise as availability decreases. However, as seen with the Oasis reunion tour, applying this model to live music - a sector driven by emotional connections and intense fan loyalty - can create significant challenges. 

With the dynamic pricing model being chosen for the Oasis tour general sale on the morning of Saturday August 31st, ticket prices surged as demand skyrocketed. Fans who had been queuing in the online system were met with significantly increased prices midway through the sales process. The result of which was ticket prices that many perceived as extortionate, along with wait times in queues that stretched for hours. 

The situation led to accusations that the band and Ticketmaster were exploiting the demand, resulting in widespread criticism, and even drawing the attention of regulators. What should have been a celebration of one of the UK’s most iconic bands quickly turned into a public relations issue, with fans expressing their anger on social media and questioning the fairness of the pricing strategy.

From a marketing perspective, the fallout from this incident highlights the importance of strategically utilising the 7 Ps of marketing. While dynamic pricing may seem like an attractive way to increase revenue, it can backfire if it alienates the very audience it is meant to serve. In having the capability to understand the nuances of consumer behaviour, and the potential risks associated with pricing strategies, long term relationships can be prioritised over short-term gains. 

The criticism presents a reminder that while data-driven pricing strategies can offer significant benefits, they need to be implemented with a deep understanding of the customer base and the full context in which they are applied. The live music industry requires a more nuanced approach than other industries where dynamic pricing is common.

What’s more, this incident highlights the need for transparency and communication in pricing strategies. Consumers are more informed and empowered than ever before and, understandably, they expect to be treated fairly. When prices surge without clear justification, a loss of trust is created - a valuable currency in today’s competitive market. Marketers need to ensure that their pricing models are not only fair, but also perceived to be fair by their consumers.

Looking ahead, it’s likely that we’ll see a re-evaluation of dynamic pricing strategies, with the government talking of potential regulation on dynamic pricing models. This would be particularly helpful in sectors where consumer loyalty and emotional engagement are paramount - such as the live music industry. Marketers will need to strike a careful balance between maximising revenue and maintaining strong, positive relationships with their customers. After all, are we not the customers’ champion?