What is Marketing? Today, more than any time in history, the sports and entertainment industries have become two of the most profitable industries in the united states. Fans spend billions of dollars each year on recreation and related products and services. About half of every dollar you spend pays for marketing costs. Think about that for a moment. HALF Without marketing things would be much cheaper. However, without marketing would you know about the products available to you? Sports and entertainment marketing reaches around the globe, making it a major export for the United Stated. Because these are booming industries, vendors and salespeople, compete for a share of the customers dollars. With so many businesses competing for attention, an organized marketing plan with strategies that target specific customers is essential. This is the foundation of sports and Entertainment Marketing. So What is Marketing? Discussion Marketing costs include product development, packaging, advertising, sales expenses and wide variety of business functions.

Primary Learning Objectives Define Marketing Understand the difference between a good and a service Understand the seven functions of marketing and how they apply in Sports and Entertainment marketing

What is marketing? Marketing: all business functions involved in developing, promoting, and distributing products in order to satisfy customers’ needs and wants. Products include both Goods and Services Many people define marketing as merely advertising. Marketing is much more than that Break this definition down and discuss each part with the class

Marketing Goods are tangible products Services are intangible products Products that can be touched Includes: Sports equipment Bobble-Head Dolls T-Shirts Services are intangible products Products that can not be touched Includes: Ticket buying services Entertainment

Functions Of Marketing All the marketing activities you see daily can be classified into seven functions of marketing

Seven Functions of Marketing MIM=Marketing Information Management The seven key marketing functions are the basis of all marketing activities. You can find examples of each marketing functions on almost every business. Every time you buy a product or service, all the key marketing functions take place

Marketing Research or Marketing Information Management The process of collecting the marketing information needed to make sound business decisions. How much to charge for tickets Which products to carry Product Packaging Labeling Branding In many successful companies this is the beginning step of a products lifestyle. At this point companies try and decide the consumer demand for a product. How to package it. At what price will it sell etc. You can really see this in the Sports industry. You have to know who your customer is. Because you want to have products on hand and provide the customer experience necessary to keep them coming back. Are the people going to Hawks games the same as the people going to the Thrashers? How might this difference effect how you market each team to potential consumers.

Product Planning All the decisions a business makes in the production and sales of its goods and services. Which products (Player/movies) to carry Product Name Product Packaging (Uniforms/Stadium/Theater) Labeling Branding At this stage business if a business is adding a new product they may need to drop an old product. Think about that sweater we wanted to buy at the beginning of class. Are you buying the same style of sweater today as you did three years ago? If you are a manufacturer you have to decide if you are going to develop a different style you have to decide if it is going to replace something you make now or is this a whole new line. What colors? In this function you are deciding not only what movies to carry but what products you may sell at the game

Distribution Making decisions about where to sell your product, how to get them there, and how to store them. Includes: Marketing Channels: Retail, Online, Door to Door Methods of transportation Storage/Warehousing How is it going to ship to stores. How is a company going to get its product to consumers AND How are you going to get your product to your customers Distribution means having your product in the right place at the right time. Getting shipments of sweaters in Mar or April is after the peak selling period of October-January.

Financing Locating and securing monies needed to operate a business and develop new products. Includes decisions about customer credit and payment options. Financing requires a company not only to budget for its marketing activities, but also to provide customers with assistance in in paying for the companies products or services. It takes careful planning to make sure the product is priced to cover the costs of manufacturing an item.

Pricing Deciding how much to charge for goods and services Price Affected by: Competition Customer Costs of gathering information (Research) Costs of financing business Costs of Payroll Costs of advertising and promotion Distribution costs Level of profit How does Competition affect Price? Have students give examples How do consumers affect price> Have students give examples

Pricing What is a “reasonable price?” How does Competition affect Price? Have students give examples How do consumers affect price> Have students give examples Whatever the customer is willing to pay.

Promotion Any form of communication used to inform, persuade, or remind people about business’s products, and improve it’s public image. Advertising Public Relations Sales Promotion Personal Selling Visual Merchandising Can you name some different types of promotion? What are some successful Ad campaigns that you can think of? Can you think of an advertisement or commercial that made you not want to buy a product?

Selling Providing customers with goods and services they want to buy. Includes selling in the retail market to you, and in the industrial market where products are purchased for use in business operations. Selling includes direct and personal communication with customers to assess and satisfy their needs. Selling involves not only satisfying customers, but also anticipating their future needs. This even includes purchases over the internet. What is the purchasing experience like?

Review What is marketing? What are the seven functions of marketing Give an example of a good and a service. Marketing is all business functions involved in developing, promoting, and distributing products in order to satisfy customers’ needs and wants. Marketing Information Management (research) Distribution Selling Purchasing Pricing Product Planning Promotion