Lesson 2.4 Primary Marketing Functions Copyright © 2014 by Sports Career Consulting, LLC

LESSON 2.4 What is SEM?  Pricing  Distribution  Promotion  Financing  Selling  Information-Management  Product and Service Management Primary Functions of Marketing Copyright © 2014 by Sports Career Consulting, LLC

LESSON 2.4 What is SEM? 1. Pricing: Assigning a value to products and services Copyright © 2014 by Sports Career Consulting, LLC --Price is determined on the basis of supply & demand Examples: Tickets to the Super Bowl are very expensive because demand is high. In 2013, the New York Jets lowered season ticket prices because of low demand (in some cases dropping prices from $700 to $255) Primary Functions of Marketing

LESSON 2.4 What is SEM? Copyright © 2014 by Sports Career Consulting, LLC Examples: Disney prices went up, no discounts to residents… the majority of Disney parks enjoyed attendance increases. Was this wise of Disney? Tickets for the 2014 men's ice hockey gold medal game at the Sochi Olympics were unavailable within a half hour of going on sale online. -Max purchase of 4 tickets ($233 and $1,132 per ticket). High or Low demand?

LESSON 2.4 What is SEM? Companies must implement strategies to help identify the best price points to match demand. Solution=“dynamic pricing” structure -higher demand games cost more -lower demand games cost less Copyright © 2014 by Sports Career Consulting, LLC

LESSON 2.4 What is SEM? Primary Functions of Marketing 2. Distribution: Determining how best to get products and services to consumers Examples: EA Sports sells their video game products at Target and Best Buy stores, knowing that consumers shop at those stores for video games and entertainment Copyright © 2014 by Sports Career Consulting, LLC

LESSON 2.4 What is SEM? On Demand and streaming services have become prevalent options for consumers in today’s marketplace Copyright © 2014 by Sports Career Consulting, LLC As Apple tries to hold on to market share, they are constantly adding new streaming content for their Apple TV product (such as HBO Go, ESPN) to appeal to a broader base of customers

LESSON 2.4 What is SEM? Strategy? Whatever will make most $$$ --mass distribution in as many outlets as possible? --partnerships with individual retailers to create exclusivity and drive demand? Copyright © 2014 by Sports Career Consulting, LLC

LESSON 2.4 What is SEM? Mass Distribution Example: Taylor Swift’s album release Red -available at nontraditional retail outlets -Starbucks, Target, Papa John’s Pizza and Walgreens -Sold over 1.2 million copies in its first week Copyright © 2014 by Sports Career Consulting, LLC

LESSON 2.4 What is SEM? Copyright © 2014 by Sports Career Consulting, LLC Example of Exclusivity: -Jay-Z inked an exclusive (and lucrative) partnership with Samsung -Magna Carta Holy Grail album release -provided free copies of the album to 1 million Samsung cell phone and tablet owners before it was available for sale.

LESSON 2.4 What is SEM? Copyright © 2014 by Sports Career Consulting, LLC -Exclusive distribution doesn’t always guarantee success however -Sears’ “Kardashian Kollection”

LESSON 2.4 What is SEM? Primary Functions of Marketing 3. Promotion: Communicating information about products and services to consumers -GameFly, Inc., an online video game rental subscription service -National summer-long promotion with Six Flags last summer -Six Flags guests given “free” trials of their subscription -Provided 1 million gift cards available for giveaway at toll booth exits at each park Copyright © 2014 by Sports Career Consulting, LLC

LESSON 2.4 What is SEM? Primary Functions of Marketing 4. Financing – money matters Examples:  Creating a budget for a company’s marketing plan  Analyzing the cost effectiveness of existing or past marketing efforts  Providing customers with flexibility in purchasing company products or services Copyright © 2014 by Sports Career Consulting, LLC

LESSON 2.4 What is SEM? In July of 2014, Under Armour bumped its annual forecast for sales for the second time, citing "increased confidence" in its footwear and international businesses. Copyright © 2014 by Sports Career Consulting, LLC

LESSON 2.4 What is SEM? Budgets and projections/forecasts are never an exact science. The 2013 summer release of the film Star Trek Into Darkness -production budget= $200 million -forecast= $100+ million barrier -actual= $84 million Copyright © 2014 by Sports Career Consulting, LLC

LESSON 2.4 What is SEM? The US Army ended it’s NASCAR sponsorship after the Air National Guard spent $650,000 to sponsor a 2010 NASCAR Sprint Cup race Result = 439 recruitment leads, none of which ended up joining the Army Copyright © 2014 by Sports Career Consulting, LLC

LESSON 2.4 What is SEM? Copyright © 2014 by Sports Career Consulting, LLC

LESSON 2.4 What is SEM?  Cultivating prospective buyers (or leads) in a market segment  Conveying the features, advantages and benefits of a product or service to the prospective buyer  Closing the sale Copyright © 2014 by Sports Career Consulting, LLC 5. Selling: Communicating with consumers to assess and fill their needs, as well as anticipating future needs Primary Functions of Marketing

LESSON 2.4 What is SEM? 6. Marketing Information-Management: Gathering and using information about customers to improve business decision making Copyright © 2014 by Sports Career Consulting, LLC Professional sports teams began offering smaller ticket packages (half-season, quarter-season, five-game packages) -customer research based -full season ticket plans were often too costly and/or time consuming for many fans Primary Functions of Marketing

LESSON 2.4 What is SEM? As visitors pass through the turnstiles at Disneyland in California, guests are randomly selected to answer interview questions Questions asked: -where they are from -how many are in their group -how many times they have visited the theme park in the past. Who cares? Copyright © 2014 by Sports Career Consulting, LLC

Primary Functions of Marketing 7. Product/Service Management: Designing, developing, maintaining, improving, and acquiring products or services so they meet customer needs Copyright © 2014 by Sports Career Consulting, LLC LESSON 2.4 What is SEM?

LESSON 2.4 What is SEM? “Nike Field Tester Program” -selected applicants wore Nike shoes for typically 4- 8 weeks -Testers keep a daily written account of information relating to the product -Testers are required log the number of hours the shoes were worn each day, the surfaces shoes were worn on, observations regarding the shoe’s fit, performance and durability. … and they got free shoes Copyright © 2014 by Sports Career Consulting, LLC

LESSON 2.4 What is SEM? Primary Functions of Marketing Executives from professional sports teams are always working to improve their product, recognizing the importance of fielding a competitive team to meet the demands of consumers (fans) Copyright © 2014 by Sports Career Consulting, LLC

LESSON 2.4 What is SEM? Following the App trend… Microsoft announced that the release of its Xbox One gaming console would allow developers to create their own games Copyright © 2014 by Sports Career Consulting, LLC Primary Functions of Marketing