What is Marketing? Economics of Marketing

 Define the following: (20 minutes) ◦ Marketing ◦ Marketing concept ◦ Market ◦ Needs ◦ Wants ◦ Target market ◦ Demographics ◦ Marketing mix ◦ Channel of distribution

 Two of the most profitable industries in the US ◦ Billions each year spent (recreation/products)  International  Great competition ◦ Need a marketing plan to be competitive

 Marketing-the process of developing, promoting and distributing products, or goods and services ◦ Goods ◦ Services

 Develop products ◦ Study consumers to determine needs/wants ◦ Design product to satisfy these  Promoting activities ◦ Educate consumers ◦ Create interest and desire ◦ Make a sale ◦ Create an image for a company/products  Distribution ◦ Getting the product into hands of customer ◦ Buying and selling  Ex: Direct mail, telephone solicitation, the Internet

 Marketing concept-the idea that organizations need to satisfy their customers while also trying to reach their organizations’ goals. ◦ To be profitable they must focus on customers’ needs and wants

 Market-potential customers with sahred needs who have the desire and ability to buy a product  Needs-basic necessities (food, clothing, shelter)  Wants-things desired  Target market-a specific group of consumers that an organization selects as the focus of its marketing plan

 Mass-promote products to everyone the same (1950s)  Market identification-market to specific groups ◦ More sophisticated b/c of availability of info and computer technology ◦ Market-research firms-do research for companies for a fee ◦ Demographics-statistics that describe a population in terms of personal characteristics

 Product  Price  Place  Promotion

 The goods, servcies, or ideas used to satisfy consumer needs  Designing-consider what consumer needs and wants  Naming-must be relevant  Packaging-appropriate (bright colors, design, material-won’t spoil, etc.)

 Consider cost  Expenses related to marketing the product  Competition  What consumer is willing to pay

 Making the product available to the consumer  Where does the target market shop? ◦ Retail stores, Internet, infomercials, etc.  Channel of distribution-the path a product takes from the producer to the consumer ◦ Many companies use a combination ◦ Ex: Nike-Internet, Retail stores (Nike and others)

 How the goods/services are communicated to the consumer  Advertising, sales promotion, publicity, and personal selling  Ex: Nike-How do they promote?

 Define marketing and the marketing concept.  Explain the concept of a market.  What is the marketing mix and what is its relationship to a target market?

 Marketing plan determines profits ◦ Impacts communities, cities and countries ◦ Sports marketing plans impacts the global market  Economics-study of the choices and decisions that affect making, distributing, and using goods/services ◦ Made due to ltd resources-unlimited needs/wants  GDP  Decisions made based on what consumers are buying  Free enterprise system-profit, risk, competition

 Tangible (building) or intangible (idea for script for film)  Copyrights-legal protection of creator’s intellectual property ◦ Books, films, video games, music ◦ Get permission, pay royalty fees  Patents-protect owners of patented products from others using, making, importing, selling, or offering them for sale ◦ Nike driver golf club, various styles of golf balls Titleist  Trademarks-Protection from use of words, names, symbols, sounds or colors that distinguish goods and services ◦ MGM Lion, the names Coke, Reebok, Disney

 Sole Proprietorship-one owner  Patnership- 2 or more owners  Corporation- Business entity separate from owner  Subchapter S Corporation-same as corp. but taxed like a partnership

 One owner ◦ Easy to start and end ◦ All decisions are made by you ◦ All profits are yours ◦ Lack of startup or expansion finances  ◦ Time required of the one owner  ◦ Unlimited Liability 

 2 or more owners ◦ Shared financial investment ◦ Shared responsibility ◦ Shared expertise ◦ Ability to expand ◦ Unlimited liabiilty  ◦ Difficulty in withdrawing  ◦ The death of a partner dissolves the partnership  ◦ Disagreement possibility among partners  ◦ Shared profits   Limited partnership-a silent partner ◦ One partner has to assume unlimited liability

 Business entity that can conduct business and enter into contracts apart from its owner(s)  Must be chartered (provide info to the state on plans of operation)  To be a corporate charter you must include the following info: ◦ Name, # of shareholders, type of business, products, selling location, members of the board of directors  Owners R “stockholders”/ “shareholders”  Can sell stock to generate money  Ability to generate capital investment  Limited liability for owners  Can hire experts to run the company  Ability to expand  Ease of which owners can join and leave  Complex structure   Higher tax rate, double taxation (co. and shareholders)   Increased govt regulation 

 Same as a corp. but taxed like a partnership  Restrictions that apply: ◦ No more than 35 shareholders ◦ No more than 80% of revenue can come from foreign sources

 Host locations all benefit economically from sports and/or enterntainment ◦ Disney World in Orlando, Olympics in Athens, Greece, Broadway plays in New York  Affects ◦ Increase in workers, bridge tolls, transportation, parking fees, restaurants, local tourists places (Disney), hotels, car rental, malls, improvements in roads, beautification of area, new hotels, restaurants, profits that are reinvested into the economy ◦ Local and High School Events  Marketing efforts at events

 What affects do high school sports have on the economy?  What affects to local events have on the economy?  What affects do the Olympics have on the economy?