1.1 Marketing BasicsObjectives • You will be able to describe the basic concepts of marketing. • You will be able to describe the seven key marketing functions.
What Is Marketing? Marketing is planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. The American Marketing Association Marketing is the creation and management of satisfying exchange relationships.
Marketing Mix • The Marketing Mix describes how a business blends the four marketing elements of Product, Distribution, Price, and Promotion.
Product – What a business offers a customer to satisfy needs. Distribution – Involves the location and methods used to make products available to customers. Price – The amount that customers pay for products. Promotion – This describes ways to encourage customers to purchase products and increase customer satisfaction. The Marketing Mix
Satisfying Customer Needs The most important aspect of marketing is satisfying the customer. Customer needs should be the primary focus during the planning, production, distribution, and promotion of a product or service. 1. Identify customer needs 2. Develop products that customers consider better than other choices 3. You must be able to operate a business profitably
Please Don’t Forget My Pizza Party Saturday • Please-Promotion • Don’t-Distribution • Forget-Finance • My-Marketing Information Management • Pizza-Product/Service Management • Party-Pricing • Saturday-Selling
Product / Service Management The designing, developing, maintaining, improving, and acquiring products or services so they meet customer needs. **Fisher Price tests new toy ideas with both children and parents to make sure children will play with them and parents will buy them.
Distribution Determining the best way to get a a company’s products or services to the customer. **Television manufacturers like Sony sell their products through electronic retailers like Circuit City.
Selling Direct and personal communication with customers to asses and satisfy their needs. Selling also includes anticipating the customer’s future needs. **Today selling also includes items purchased over the internet with no personal communication. **Loretta Lynn and her husband traveling to sell radio stations on her single “Honky Tonk Girl”
Marketing Information Management Gathering and using information about customers to improve business decision making. **Domino’s used marketing research to adapt to a new market in Japan. Smaller pizza’s to be eaten as snacks Non traditional toppings corn / tuna
Financing This requires a company to not only a.) budget for their own marketing activities b.) but to provide the customer with assistance in paying for the product. *General Motors offers loans to customers through its GMAC Division.
Pricing The process of establishing and communicating the value or cost of goods and services to customers. **Prices to professional sports events and concerts are often very expensive because the demand for them is very high.
Promotion The use of advertising to communicate a products, services, or images to the customer to achieve a desired outcome. **Coupons on the back of tickets promote products or services and entice fans into trying the products or services shown.
Think Critically Think of 3 recent sports or entertainment purchases you have made. Identify how each purchase involved the seven marketing functions.
1.2 Sports MarketingObjectives • Define sports marketing. • Understand the importance of target markets. • Identify sports marketing strategies.
What Is Sports Marketing? • Sports Marketing is using SPORTS to market products or services. • Spectators of sporting events are the potential consumers of a wide array of products. EX. Apparel, Athletic Equipment Food
Target Market • A target market is a specific group of people you want reach. • To promote & sell products, a company must know the needs & wants of the target market.
Market Segmentation • Is a way of analyzing a market by specific characteristics to create a target market. • These characteristics include geographics, demographics, psychographics and product benefits.
Geographics • Consideration is given to where the consumer lives. • Examples include… • Beach related items are marketed to beach towns and cities on the coast • Sweet tea traditionally was marketed in South because it orginated there
How To Find A Target MarketA Company Must First…. • Identify the customer. • Learn specific information (Demographics) about the customer such as • Age ranges in the group • Marital status • Gender • Educational level • Attitudes and beliefs • Income (especially disposable income)
Psychographics • Include characteristics such as attitudes, opinions lifestyles. • Examples include… • Marketing new sports or recreational equipment to those who believe exercise is important to their life style
Product Benefits • This means the marketer studies consumers’ behaviors, needs and wants regarding specific product benefits to consumers. • Examples include.. • Hearing aide to the elderly
Disposable Income DEFINITION: Income that can be freely spent. ~Income left over after all obligations have been met.
Spending Habits of Fans • Important to research spending habits of fans to maximize profits on items that are purchased at sporting events. • The price that fans are willing to pay for a ticket depends upon: • Interest of the target market • The national importance of the event • The popularity of the participating athletes • The rivalry associated with the contest • Fans also pay for: • team clothing or equipment • food • travel expenses to and from a game
Did You Know…… In 1998, a family of 4 could expect to pay $115.00 on average to attend a major league baseball game. This price included tickets, parking, hot dogs and drinks, programs, and souvenir caps. The highest cost was for the New York Yankees: $148.56. The lowest cost was for the Cincinnati Reds: $89.97.
Marketing Strategies1. Sports Logos on Clothing • Show fan loyalty • Increase the value of the clothing in the eyes of the fan • Some Consumers feel more successful themselves if they can purchase and wear clothing with logos • Endorsements make money for professional athletes and professional and college teams.
Marketing Strategies2. New Sports Produce New Opportunities • Offer new opportunities for endorsements and marketing. • Arena football founded in 1989 • WNBA (Women’s National Basketball Association)
Marketing Strategies3. Gross Impression Gross Impression is the number of times per advertisement, game, or show that a product or service is associated with an athlete, team, or entertainer. Often the message is is a very subtle one. Advertisers hope you will remember when it is time to make a purchase.
Marketing Strategies 4. Timing • Popularity based on continued winning. • Loosing streaks can cost more than points in a game. • Timing is extremely important when marketing sporting goods. • Fans want to identify with winners. • Trends need to be monitored for time to change. • Success sparks rivalry
Think Critically • Design a new logo for a major sporting goods manufacturer. Explain what the logo represents and why it will be successful. This logo cannot resemble current logos. • Watch a college or professional sporting event on television. Select a sports brand represented and keep track of how many gross impressions were made during the telecast.
1.3 Entertainment Marketing Objectives • Understand why marketing must relate to the specific audience. • Relate advances in entertainment technology to changes in distribution. • Recognize the power of television as a marketing tool.
Entertainment Marketing There are two ways to look at Entertainment Marketing • Entertainment must be looked at as a product to be marketed. • Marketing should be looked at in light of the way it uses entertainment to attract attention to other products
What Is Entertainment Entertainment is whatever people are willing to spend their money and spare time viewing rather than participating in. This includes Sports and the Arts, and can be viewed in person or in broadcast or recorded form. Sports are games of athletic skill. Entertainment can be movies, the theater, the circus, or even traditional athletic contests.
Just A Little History…… • At the beginning of the 20th century the performing arts represented a major form of entertainment. This included the live theater, the ballet, the opera, and concerts. • Marketing was limited to posters and word of mouth. • In order to enjoy professional entertainment people had to travel and travel was sometimes slow and tedious. • In 1888 Louis LePrince made the first moving pictures in Britain.
In 1895 the Lumiere brothers were the first to present a projected movie to paying customers in a café in Paris. • The first movie with sound was The Jazz Singer which opened in the United States in 1927. • Mickey Mouse arrived in 1928 in Walt Disney’s Steamboat Willie • 10 years later Snow White and the Seven Dwarfs became the first full length animated film.
July 1955 Disney opened Disneyland in Anaheim California. • With the opening of Disneyland a totally new form of entertainment was born – the theme park! • Once started technologies of all sorts changed marketing, advertising, and distribution forever. • A current trend is to name sports arenas for corporate sponsors.
The marketing of entertainment is evolving faster and faster with daily changes in technology. Products that were innovative yesterday are out-of-date today. Information managers and promoters must be creative and forward thinking in order to anticipate the wants of the buying public.
Television and Marketing • Television provided sports and entertainment marketers with a wide-open distribution channel into the billfolds of consumers. The market grew quickly and continues to advance throughout much of the world. • In October 1945, more than 25,000 people came to Gimble’s Department Store to see the first demonstration of TV. • Nine television stations and fewer than 7,000 working TV sets existed in the United States at the end of World War II.
Television’s Increasing Influence • The pricing of television commercial time is tied to the number of viewers the programming attracts. • 9 TV stations in 1945 grew to 98 stations by 1949. • In 1996 there were more than 223 million TV sets with many homes having at least 2. • Advertisers spent almost 42.5 billion in 1996.
In 1945 The American Association of Advertising encouraged the start of television advertising. • Television changed the marketing of entertainment in a profound way. TV advertising hooked the imagination of the consumer. • In 1946 the Gillette Company staged the first television sports spectacular – a heavy weight boxing match. There was an estimated audience of 150,000 on 5,000 sets!
1.4 Recreation MarketingObjectives • Apply the marketing mix to recreation marketing • Describe marketing for the traveland tourism consumer.
Recreational Sports Recreational sports marketers entice people away from home-based entertainment. Golf, tennis, bowling, hiking, snow skiing, snow boarding, and biking are a few of the more popular recreational sports activities.
Recreation – can be defined as renewing or rejuvenating your body or mind with play or amusing activity. • Recreational Activities – are those activities involved in travel, tourism, and amateur sports that are not associated with educational institutions. • Participation in recreational activities usually requires the purchase of a combination of products and services. • Participation also requires a time commitment.
Marketing costs must be included in the financing of a recreational sports facility. • Professional sports marketers work to increase interest in related recreational sports. • Exciting professional sports figures can increase interest in recreational sports and can also help increase sales of related merchandise. For example Tiger Woods and his success in golf.
Travel and Tourism • World wide the travel industry employs 130 million people and is the world’s largest industry. • Tourism is generally considered traveling for pleasure whether the travel is independent or tour-based. • Tourism includes vacations, honeymoons, conventions, and family visits. • A major function of the travel industry is data mining- this function is the collection of data about which people travel, where they travel, and when they travel.
Niche Travel Recreational travel or tours planned around a special interest. Niche travel can be designed for a group of music enthusiasts traveling through Europe. The marketing mix in niche travel is critical to the success of the business. Planning the right tour, promoting and distributing it to the right customer, pricing it to attract the customer, and making a profit, all require marketing information.