Final answer:
For increasing ticket sales, the band should analyze the price elasticity of demand. If demand is elastic, selling more tickets at a lower price may increase revenue. Additionally, employing strategies like discounts, bundling, and targeted marketing can help in achieving revenue targets.
Step-by-step explanation:
To determine strategies that would increase ticket sales, one must understand the concept of price elasticity of demand. Total revenue is calculated by multiplying the ticket price by the quantity of tickets sold. Given fixed costs, to maximize revenue, the band should consider if their demand is elastic and, if it is, they might generate more revenue by selling more tickets at a lower price. Conversely, if demand is inelastic, raising ticket prices could increase total revenue even though fewer tickets may be sold.
When analyzing whether to raise ticket prices, the band should also consider alternative strategies to increase sales, such as early bird discounts, volume discounts, bundling with merchandise or other experiences, loyalty programs, dynamic pricing strategies, and targeted marketing campaigns. By effectively leveraging these strategies, the band can aim to fill more seats, potentially at a variety of price points, to meet or surpass their revenue goals.