Sports & Entertainment for Business Chapter 1 Lesson 1.1—Marketing Basics

Think about this... What goods and services do consumers demand in the world of sports and entertainment?

Commercials Think about three of your favorite commercials. Were any famous celebrities in those commercials? Why do companies spend large sums of money to have famous people endorse their products?

Marketing Concepts About ½ of every dollar you spend pays for marketing costs. Product development Packaging Advertising Sales expenses

What is Marketing? Marketing is the planning & executing the conception, pricing, promotion, & distribution of ideas, goods, & services to create exchanges that satisfy individual & organizational objectives. It is the creation & maintenance of satisfying exchange relationships.

What is Marketing? Creation Maintenance Satisfaction Exchange Product development Maintenance Marketing must continue as long as a business operates Satisfaction Marketing must meet the needs of businesses & customers when exchanging products or services Exchange People both give & receive something of value

The Marketing Mix Describes how a business blends the four marketing elements… 1. Product-what a business offers to satisfy customer needs. 2. Distribution-locations & methods used to make products available to customers. 3. Price-amount customers pay 4. Promotion-ways to encourage customers to purchase products & increase satisfaction.

Satisfying Customer Needs Customers needs should be the primary focus during the planning, production, distribution, and promotion of a product or service. 1. Identify customer needs. 2. Develop products that customers consider better than other choices. 3. Operate a business profitably

Key Marketing Functions… Seven key functions associated with marketing.

7 Marketing Functions Product/Service Management-designing, developing, maintaining, improving, & acquiring products or services so they meet customer needs. Distribution Determining the best way to get a company’s products or services to customers.

7 Marketing Functions Selling Information Management Direct & personal communication with customers to assess and satisfy their needs Anticipating future needs of customers Internet sales with no personal communication Information Management Gathering and using information about customers to improve business decision making Example: Domino’s made smaller pizzas for Japan where it is preferred as a snack rather than a meal.

7 Marketing Functions Financing Budget marketing activities, provide customers with assistance in paying for the company’s products or services Pricing Process of establishing and communicating the value of cost of goods and services to customers. Example: high demand for sporting events mean high prices charges for tickets.

7 Marketing Functions Promotion Using advertising and other forms of communicating information about products, services, images, and ideas to achieve a desired outcome. Example: coupons on the back of ticket stubs. The seven key functions are the basis of all marketing activities.

Time to Think Imagine a college sweatshirt. Describe it. What price would fans be willing to pay? Where would be the best place to distribute/sell the sweatshirt? What might be a good promotional strategy?

Thank You!!