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Chapter 1. Marketing Basics. What is Marketing?. Creation & maintenance of satisfying exchange relationships. Creation suggests product development Maintenance indicates marketing continues as long as the business operates

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chapter 1

Chapter 1

Marketing Basics

what is marketing
What is Marketing?
  • Creation & maintenance of satisfying exchange relationships.
    • Creation suggests product development
    • Maintenance indicates marketing continues as long as the business operates
    • Satisfaction implies marketing must meet the needs of both the business & customers
sports entertainment marketing
Sports & Entertainment Marketing
  • Huge industry offering numerous products and services.
  • People must choose which sports & entertainment activities/events they will enjoy with their limited time and resources.
  • Marketers must assess consumer demand, the competition, and financial valuation of goods and services.


Athletes and entertainers play a prominent role in marketing by endorsing products and services. Former NFL player Brett Favre endorses Snapper riding lawnmowers, and comedian David Spade is associated with Capital One’s ‘What’s in your wallet?” campaign. People like to be identified with celebrities and sports stars. Product endorsements by famous people are good marketing strategies.

Work with a group. Identify four advertising campaigns that feature celebrities or athletes. Discuss how the campaigns have affected your thinking about the products. If you were in the market for products, would you buy the celebrity endorsed brands? Why or why not?

related articles
Related Articles
  • Celebrity Endorsement Ads
  • Nike re-signs Vick to endorsement deal
  • Nike endorsement deals
  • Celebrity deals gone wrong
related articles1
Related Articles
  • Do Celebrity Endorsements Really Work?
  • In Search of the Next Great Celebrity Brand Ambassador
  • NBA Finals: The Good, The Bad, The Ugly Marketing
collage project
Collage Project
  • Research and create a list of 5 athletes/entertainment celebrities and the products/brands that they endorse.
  • Design a collage on poster board or on the computer that shows the 5 celebrities and the products they endorse.
collage project1
Collage Project
  • Collage needs to include a combination of at least 5 celebrities from the sports and entertainment industries. (10 pts.)
  • Identify at least two products/services that each celebrity endorses. (20 pts.)
  • Write a brief paragraph describing what effect you think these celebrity endorsements on the sales of these products. (25 pts.)
the marketing mix
The Marketing Mix
  • Describes how a business blends the 4 marketing elements of…
    • Product
    • Distribution
    • Price
    • Promotion
marketing mix considerations
Marketing Mix Considerations
  • Individuals have many entertainment options for their discretionary income.
    • The amount of money individuals have available to spend after paying for necessities.
  • What a business offers customers to satisfy needs.
    • Product offerings for sports and entertainment marketing must be constantly evaluated & updated.
    • Too much of a product might = price mark downs
    • Too little of a product might = lost sales
  • Amount customers pay for products.
    • Influences consumer decisions.
    • Businesses must offer products/services they need and want at prices customers are willing to pay AND cover costs and earn a profit.
      • Championship teams will increase consumer demand and ticket prices.
  • Involves locations and methods used to make products available to customers.
    • Involves transporting or delivering goods to final customers.
    • Ex: Athletic uniforms arriving by UPS.
    • Turf for a football field arriving by a semi truck.
  • Involves planning the location of events.
    • Ex: A 3-day outdoor music concert event must be held in a location near customer base and other business such as hotels and restaurants.
  • Describes ways to make customers aware of products and encourage them to buy.
    • Essential to inform prospective customers about sports & entertainment events and products
    • Ex: TV commercials, newspaper ads, special offers on ticket stubs
    • Requires creativity AND can be costly
super bowl
  • Billion $ event that results in large sums of money from sponsorships and ticket sales.
  • What is the PRODUCT?
  • What is the PRICE?
  • How is DISTRIBUTION involved?
  • How is it PROMOTED?
super bowl1
    • Game matching best AFC & NFC teams
  • PRICE?
    • Actual is $400-600. Some pay more.
    • Selecting a city that is easily accessible for fans.
    • Near airport, major highways, nearby accommodations
    • Ticket sales (NFL offices, Ticketmaster, Internet)
    • TV commercials, Sports magazines
state fair
  • What is the PRODUCT?
  • What is the PRICE?
  • How is DISTRIBUTION involved?
  • How is it PROMOTED?
state fair1
    • livestock shows, exhibits, carnivals, wide array of musical & other entertainment
  • PRICE?
    • Admission (must be sensitive to demand).
    • Location of fair and outlets where people can buy tickets
    • TV commercials, radio ads, newspaper ads
time out

In 2006, a family of four could expect to pay an average of $352 to attend one Chicago Cubs baseball game. This price includes…

  • Four tickets
  • Parking
  • Four hot dogs
  • Four drinks
  • Two programs
  • Two souvenir caps
get a partner
Get a Partner….
  • With new technology, live cybercasts of music concerts can be heard and viewed around the world through the Internet. Movie companies are using the Internet to broadcast movie trailers and to market movie-related merchandise to consumers.
  • Think Critically: You and your partner need to visit the home pages of 3 movies that have related merchandise for sale.
    • Determine what information is collected from customers.
    • Discuss how the marketing information gathered could be used in the future to promote and sell other products.
6 core standards of marketing
  • Distribution
  • Marketing Information Management
  • Pricing
  • Product/Service Management
  • Promotion
  • Selling
  • (Financing)
core standards of marketing
  • Distribution
    • Determining the best way to get a company’s products/services to customers
    • EX: Sony sells its products through retailers like Best Buy
    • EX: (Sports) Involves selecting right location for event and making tickets available
core standards of marketing1

2. Marketing/Information Management

  • Gathering and using information about customers to improve business decision making
  • EX: Domino’s Pizza used research findings to adapts its pizza to Japanese tastes
core standards of marketing2

3. Pricing

  • Establishing and communication to customers the value of goods and services
  • EX: prices may be set high if the seller knows people will buy the high price
  • EX: Super Bowl ticket prices go through the ceiling since there are limited number of tickets and huge demand
core standards of marketing3

4. Product/Service Management

  • Designing, developing, maintaining, improving, and acquiring products for the purpose of meeting customer needs and wants
  • EX: Fisher Price tests toy ideas with children and parents to make sure kids enjoying playing with the toys
core standards of marketing4
  • Promotion
    • Using advertising and other forms of communication to distribute information about products and services, images, and ideas
    • EX: Sports fans often find coupons on the back of ticket stubs
core standards of marketing5

6. Selling

  • Direct and personal communication with customers to assess and satisfy needs and wants
  • Usually includes Internet purchases
core standards of marketing6

Extra: Financing

  • Requires the company to budget for its own marketing activities.
  • EX: A company can obtain financing from sponsors and investors
  • Sponsors spend lots of $$to be visible during sports and entertainment events
6 core standards larosa s pizza
6 CORE standards (LaRosa’s Pizza)
  • Distribution (delivery, dine in, carry out, events)
  • Marketing Information Management (what kind of toppings, what other pizza places, kind of deals/specials, other products)
  • Pricing ($6…inexpensive to encourage customers)
  • Product/Service Management (add new toppings, offer specials/deals, improve ingredients, use taste tests, use surveys)
  • Promotion (coupons on ticket stubs, commercials, specials for teachers)
  • Selling (surveys, online ordering)
what do you think
What do you think???

Think of one of your recent purchases. List and describe how the six core standards or marketing were involved with the purchase.

design an advertisement
Design an advertisement…

Design a newspaper advertisement for an upcoming concert. Incorporate all of the marketing mix elements, including product, distribution, price, and promotion.

FCA#1: Include the 4 elements of the marketing mix. (20 pts.)

FCA#2: Write a paragraph describing why you selected the specific product, distribution, price, and promotion. (10 pts.)

what is sports marketing
What is Sports Marketing?
  • Using sports to market products.
    • Marketers research demographics and spending habits of fans in order to maximize profits
      • Demographics: common characteristics of a group such as age range, marital status, gender, ethnic background, income level, and educational level
    • Price fans are willing to pay for a ticket depends on interest of market, national importance of event, the popularity of event/athletes
what is the goal
What is the GOAL?
  • Use the right marketing mix to meet customer needs while generating a profit. To be successful, marketers must consider…

1. New Opportunities: endorsement and marketing opportunities

    • Ex: Arena football (founded in 1987) – offer affordable ticket prices ($17.50); players meet fans and sign autographs after every game; work with video game creators
what is the goal1
What is the GOAL?

2. Gross Impression: the # of times per advertisement, game, or show that a product or service is associated with an athlete, team or entertainer

  • Ex: Every time you see a product or logo on the back of a pair of shoes, in a scene in a movie, or on the license plate of a car, your brain records that image.
  • Advertisers hope you will remember it when you’re ready to buy such a product.
what is the goal2
What is the GOAL?

3. Timing: Popularity of teams and sports figures is base on sustaining a winning record.

  • Fans want products/services that identify with a winner.
  • If one major athletic company has a successful marketing campaign, competitors will increase their marketing efforts. Competition must be monitored so a company’s marketing can remain unique.
the value of sports marketing
The Value of Sports Marketing
  • Multi-billion $ global industry that impact the economy.
    • Automobile industry…parents transport families to numerous sporting events
    • Restaurants, hotels, and service stations that count on business generated from these events
    • Entertainment and venues must be maintained…requires building managers, security personnel, maintenance crews, etc.
    • Athletes need trainers, handlers, personal attendants…also hire agents.
the value of sports marketing1
The Value of Sports Marketing
  • Emotional Value
    • Fans have emotional ties to their favorite teams
    • Emotions often compel fans to buy tickets and other sports related merchandise
    • People will freely spend discretionary income on sporting events that capture their hearts so marketers try to appeal to emotion
the value of sports marketing2
The Value of Sports Marketing
  • So Many Channels
    • Marketers for the hundred of TV network must consider strategies to capture the highest possible percentage of the viewing audience for the least amount of $
    • Must find right mix of programming to reach audiences, attract sponsors, and maximize profits

Bengals rated worst sports franchise

CINCINNATI - ESPN The Magazine ranked the best franchises in sports and for the second year in a row, the Cincinnati Bengals were dead last. Out of 122 teams across the MLB, NFL, NHL and NBA, the Bengals were ranked by the magazine as the worst sports franchise.

The rankings were based on team analysis that examines a team’s efficiency in spending fan money compared to its on-field performance. It also factors in feedback from more than 70,000 fans nationwide in 21 categories including the players' likeability, fan relations, affordability, stadium experience, ownership, title track (which consists of the championships won or expected to be won in a fan's lifetime) and coaching.

The Bengals ranked last in fan relations, likeability of players and title track. Peter Keating of wrote "Who Dey? Fans are asking, 'who cares?'“ It's easy to see from Cincinnati's perspective how the Bengals might fall in to such a rating: They haven't won a playoff game in 20 years, they continue to make head-scratching decisions on personnel and the starting quarterback has decided he'd rather retire than continue playing for them.

On the flip side, the Cincinnati Reds ranked 15th overall, a 28-spot improvement from last year in lieu of their 2010 playoff run and the extension of reigning NL MVP Joey Votto's contract.

The reigning Super Bowl champion Green Bay Packers took the top spot of the 122 teams examined. The Tampa Bay Lightning came in second with the New Orleans Saints, the Los Angeles Angels of Anaheim and the San Antonio Spurs rounding out the top 5.


What do you think? Are the Bengals the worst team in sports? From a marketing standpoint, what suggestions would you give the Bengals organization?

do the research
Do the research!!

Watch a college or professional sporting event on television. Select a sports brand represented in association with the event, and keep track of how many gross impressions are made during the telecast.

entertainment for sale
Entertainment for Sale
  • People have a limited amount of leisure time & money.
    • What is Entertainment?
      • Whatever people are willing to spend their money and spare time viewing rather than participating
      • Can include sports or the arts.
    • Sports: generally applied to games of athletic skill.
    • Entertainment: generally applied to movies, theater, music concerts, the circus, etc.
    • Must maintain accurate info. about customers in order to succeed in marketing to them
evolution of entertainment mktg
Evolution of Entertainment Mktg.

1888 -- 1st moving pictures in Britain

1895 -- 1st projected movie to a paying audience

1927 -- 1st movie with sound, Jazz Singer

1928 -- Mickey Mouse arrived

1955-- Disneyland opened

evolution of television
Evolution of Television

1945 – 9 TV stations; fewer than 7,000 working TV sets existed in US

1946 – NBC & the Gillette Co. staged 1st televised sports spectacular (heavyweight boxing)

1949 – # of TV stations grew to 98

related articles video
Related Articles/Video
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An unsettling new formula: Eye-rolling, finger-snapping stereotypes.

  • Sports Marketing with TrinityOne’s CEO