Check seating chart– no need to log on to computers today Chapter 1 Marketing Basics Take out pen Check seating chart– no need to log on to computers today

Marketing How many of you think ads effect your decisions of what to buy? Give me some examples

What is Marketing? Marketing– the creation and maintenance of satisfying exchange relationships. Creation—product development Maintenance—must continue as long as the business operates Satisfaction—meet the needs of the business and customers Exchange relationship—when people both give and receive something of value

Marketing Mix (put on graphic organizer Product is what a business offers customers to satisfy needs Examples—athletic shoes or a service like video rentals Distribution—involves the locations and methods used to make products available to customers Examples—retail stores, internet, shipped by UPS

Marketing Mix Price—the amount that customers pay for products Promotion—describes ways to encourage customers to purchase products and increase customer satisfaction Advertising, publicity, personal selling, & public relations

Key Marketing Functions—(Put on back of your graphic organizer) Product/Service Management—designing, developing, maintaining, improving, and acquiring products or services so they meet customer needs. Examples—Fisher Prices testing new toy ideas with children and parents. Distribution—The best way to get a company’s products or services to customers. Sony sells through Best Buy or Sears, etc.

Marketing FUNCTIONS Selling—direct and personal communications with customers to assess and satisfy their needs. Also involves thinking of future needs Example—musician traveling and visiting radio stations to sell songs Marketing-Information Management—gathering and using info. About customers to improve business decision making. Domino’s made small pizza for Japan and had toppings like corn and tuna.

Marketing FUNCTIONS Financing—not only budget for its own marketing activities, but also to provide customers with assistance in paying for the company’s products or services GMAC financing Pricing—establishing and communicating the value or cost of goods and services to customers. Supply & Demand at sporting events

Marketing FUNCTIONS Promotion—advertising and other forms of communicating info about products, services, images, and ideas to achieve a desired outcome. Coupons on backs of tickets Everything you learn about marketing will involve at least one of these functions.

Group Activity With your “sports merchandise”— Tell how the 7 key marketing functions went into this sale (or the purchase) Ideas for some of you on price—what could you have sold it for “then”, and what could you sell it for “now”.

Example -- Program Product/Service Mgmt – Updating with current information – relevant things fans are interests Distribution – at games (collector’s ones sold on line); Near gates/doors Selling – Booths, vendors going around stands Marketing-Information Mgmt – focus groups to see what interests fans Financing -- not applicable to this product Pricing -- $5 - $15 depending on the event Promotion – push sales on the ‘big screen’.

Today Review: Activity What are the 4 parts of the Marketing Mix? On paper or computer

Create a Flyer about your product Individually Must include aspects of all parts of the Marketing Mix Product Price Distribution Promotion I’ll show an example

Do you recognize the following promotional messages? “Can you hear me now?” “Buy it. Sell it. Love it.” “Live in your world, play in ours.” “Just do it.” “I’m lovin’ it.” “The happiest place on earth.” Verizon Wireless eBay Sony Playstation Nike McDonald’s Disneyland

Example-Puck Hat

Key Marketing Functions Product/Service Management Distribution Selling Marketing-Information Management Financing Pricing Promotion

Welcome back! Hope you had a great weekend  You’ll need a notebook (or paper) today Sports Marketing Target Markets Gross Impressions Time, if needed, to finish flyers and turn in to DocuShare

What is SPORTS MARKETING? Sports Marketing—using sports to market products. Wide array of products (food, apparel, equipment, automobiles)

DETERMINE THE TARGET MARKET TARGET MARKET—A specific group of people you want to reach Demographics—information about customers Age range, marital status, gender, educational level, attitudes, beliefs, income Disposable Income--$$ that can be spent freely Other reasons people buy items—past experience, referral by a friend, identification with an attitude Marketing-Information Managment

Male Shows/Products Advertised Razors Alcohol ESPN Phone Cars Video Games Sports Equip. Sports Drinks Shoes Muscle Enhancements Axe Body Spray

Spending Habit of Fans Why is it important to know this? Maximize profits Example—Price people will spend on a ticket depends on: Interest of the target market National importance of the event Popularity of the participating athletes Rivalry associated with the contest Example—fans are willing to pay for team (or celebrity) identified clothing or expenses (as well as food and travel to & from a game)

Turning in to Docushare

Couple slides of notes (3-4?) Video (gross impressions) Logo Project

MARKETING STRATEGIES Sports Logos—Why do people wear them? Show fan loyalty Value of merchandise is increased in the eyes of the buyer Some feel more successful themselves if they wear an endorsed product

Marketing Strategy: GROSS IMPRESSION --The number of times per advertisement, game, or show that a product or service is associated with an athlete, team, or entertainer. Backs of shoes Scene in a movie License-plate holder on a car Media mentioning a player, team or product (example Heisman Trophy) YOUR BRAIN RECORDS THAT IMAGE

Gross Impressions Fox logo NFC Championship Logo Vikings – verbal http://www.nfl.com/videos/nfl-game-highlights/09000d5d815f3f2b/NFL-GameDay-Vikings-vs-Saints-highlights Gross Impressions Fox logo NFC Championship Logo Vikings – verbal Saints – verbal Locations?

TIMING Popularity is based almost completely on continued winning. Fans want to be associated with winning

ASSIGNMENT Design a new logo for a major sporting goods manufacturer. Explain what the logo represents and why it will be successful. It can NOT resemble current logos.