Unit 2 Putting the Customer First 22 Discover What People Want

Discover What People Want The Essential Question: Why must sports and entertainment venues conduct research to keep repeat customers? Student Learning Objectives: Explain the importance of understanding buyer behavior when making marketing decisions List and describe means of collecting marketing information for use in decision making

Key Vocabulary Terms Economic Market Benefits Derived Comparative Advantage Emotional Purchases Rational Purchases Patronage Purchases

Opening Act Sports Organizations get quality corporate sponsors by evaluating the potential benefits of a partnership. Just like the relationship between the sports organization and its players, the relationship between the sports organization and its corporate sponsors must be mutually beneficial for long term survival. Work with a partner. Assume you are a part of a sports organization in need of a sponsor. Discuss how you would research possible sponsors. What information would you need to ensure a mutually beneficial relationship? Start looking at philosophy and mission statements to match them to the team or association’s philosophy.

Opening Act. Cont. Let’s look at a few sponsors mission statements. How does it align with our goals?

Understanding Buyer Behavior The economic market includes all of the consumers who will purchase a product or service. What will customers want & How much are they willing to pay. What are their spending & buying habits

Consumer Spending Habits The price for a ticket is dependent upon the degree of interest and the importance of the event—playoffs, Super Bowl Actual Athletes Rivalry Benefits Derived—value people believe they receive from a product or service. Comparative advantage—lower production costs than the competition—passing the savings onto the customer. Create a graph of comparative advantage

Comparative Advantage http://www.investopedia.com/terms/c/comparativeadvantage.asp

Comparative Advantage Exercise Research 3 competing products and a comparative advantage for each one such as a lower price, unique design, added features, etc.

Comparative Advantage Exercise If a business has a comparative advantage, how does it affect the customer? The idea means that companies that are able to produce more goods efficiently should be able to pass the savings to the consumer by selling the products at a lower cost.

Consumer Wants and Needs Consumer vs. Customer Consumer is a person that purchase that is for personal use. A Customer could be a consumer but can also be an organization or business whom is purchasing large quantities of goods for resale, business operations, or as part of the production of another product.

Setting a price With a partner discuss what price fans are willing to pay for the sweatshirt, where it could be distributed/sold, and what a good promotional strategy is.

Abraham Maslow’s Hierarchy of Needs You are going to divide into 5 groups. Each group is responsible for define the level of need, according to Maslow's model list needs belonging to that level describing how those needs are met Creating a collage that illustrates the need. http://www.fotor.com/ http://www.getloupe.com/create https://www.photovisi.com/ A spokesperson from each group can show and explain the collage to the class

Abraham Maslow’s Hierarchy of Needs Self- Actualization Self-Esteem Safety and Security Basic—Physiological Social—Loving and Belonging SelfActualization Realizing your personal potential Esteem Respect and recognition from others and feelings of adequacy Social The desire for friends, family, and love Security Physical safety and economic security Physiological Food, sleep, water, shelter, air

Step 5 is about realizing yourself potential in achieving your goals

Your shopping decisions When are you most likely to go shopping? When you are happy or sad? When you want something? Why do stores offer credit cards as a form of payment. Credit cards can lead to discounts and enables consumers to purchase more now, increasing emotional or impulse purchases.

Discover What People Want Buying Motives Emotional Rational Patronage purchases—brand, product, retail store

Time Out- Poster Rotating Activity Poster 1- What do you think the consumer decision making process is? Think about your own personal experiences. Poster 2- What Information is needed for Marketing Decisions? Poster 3: What are the sources of information for a business?

What is the consumer Decision making process? Recognize a need or want Conduct research on the products that meet that need Evaluate the choices Make the purchase Post-purchase evaluation Cognitive dissonance- the state of having inconsistent thoughts, beliefs, or attitudes, especially as relating to behavioral decisions and attitude change.

What Information is needed for Marketing Decisions? Demographics Shopping Behaviors Frequency of purchases Government regulations and laws Ethical Issues Economic conditions Flow of information due to technology

Information Sources Internal sources—information inside the business/organization. Sales, customer, production, operation records are just a few examples. External sources—info outside the bus/organization. Government Trade Associations Public & Private information sources

Data Collection Types Primary data—information collected for the first time and specifically for the purpose of the research. Customer survey Observation Samples and simulations Secondary sources—data already collected Government Stats