1. Primary Marketing Functions
Lesson 2.4
Primary Marketing Functions
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2. Primary Functions of Marketing
LESSON 2.4
What is SEM?
Primary Functions of Marketing
Pricing
Distribution
Promotion
Financing
Selling
Information-Management
Product and Service Management
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3. Primary Functions of Marketing
LESSON 2.4
What is SEM?
Primary Functions of Marketing
Pricing: Assigning a value to products and services
Price is determined on the basis of supply and demand
Tickets to the Super Bowl are very expensive because demand is high.
In 2013, the New York Jets chose to lower the prices on about 5,000 seats combined for season ticket holders in the 300-level and in the club seating areas (in some cases dropping prices from $700 to $255 for season tickets) at MetLife Stadium based on the supply and demand that impacted the previous year's sales in those areas
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4. Primary Functions of Marketing
LESSON 2.4
What is SEM?
Primary Functions of Marketing
Pricing: Assigning a value to products and services
Despite the fact that Disney announced ticket price increases at both Disneyland and Disney World while eliminating many of the traditional discounts given to local residents, the majority of Disney parks enjoyed attendance increases.
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. Customers were able to buy a maximum of four tickets, with prices ranging from $233 and $1,132.
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5. Primary Functions of Marketing
LESSON 2.4
What is SEM?
Primary Functions of Marketing
When demand fluctuates as frequently as it does in the ticketing world, companies must implement strategies to help identify the best price points to match demand.
This is why many organizations are moving toward a “dynamic pricing” structure where games in higher demand cost more than the same ticket for a game with lower demand…
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6. Primary Functions of Marketing
LESSON 2.4
What is SEM?
Primary Functions of Marketing
Distribution: Determining how best to get products and services to consumers
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
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7. Primary Functions of Marketing
LESSON 2.4
What is SEM?
Primary Functions of Marketing
On Demand and streaming services have become prevalent options for consumers in today’s marketplace
In 2015, the NBA announced it would begin offering individual, out-of-market games for $6.99 available either via streaming on smartphones, tablets, and PCs, or by tuning in from any cable / satellite provider that currently carries NBA's League Pass subscription package
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8. Primary Functions of Marketing
LESSON 2.4
What is SEM?
Primary Functions of Marketing
Sports and entertainment companies must determine which distribution strategies will help to maximize sales, whether that is mass distribution in as many outlets as possible or partnerships with individual retailers to create exclusivity and drive demand.
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9. Primary Functions of Marketing
LESSON 2.4
What is SEM?
Primary Functions of Marketing
According to the Sports Business Journal, in 2015, a sports performance beverage brand aiming to compete with Gatorade (called Glukos) elected to pursue a distribution strategy that focused on special retail stores in several specific categories: sporting goods, running, outdoors, cycling, golf and vitamin retailers
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10. Primary Functions of Marketing
LESSON 2.4
What is SEM?
Primary Functions of Marketing
To promote last year’s release of his album Magna Carta Holy Grail, Jay-Z inked an exclusive (and lucrative) partnership with Samsung to provide free copies of the album to one million Samsung cell phone and tablet owners before it was available for sale.
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11. Primary Functions of Marketing
LESSON 2.4
What is SEM?
Primary Functions of Marketing
In 2015, on the heels of the launch of Apple’s new streaming service, rap artist Dr. Dre released one of the most highly anticipated albums in history exclusively on the Apple Music platform
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12. Primary Functions of Marketing
LESSON 2.4
What is SEM?
Primary Functions of Marketing
Exclusive distribution doesn’t always guarantee success however, illustrated by the disappointing sales of Sears’ “Kardashian Kollection”
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13. Primary Functions of Marketing
LESSON 2.4
What is SEM?
Primary Functions of Marketing
Promotion: Communicating information about products and services to consumers
GameFly, Inc., an online video game rental subscription service, announced a national summer-long promotion with Six Flags last summer, in which the online video game rental company offered Six Flags guests extended “free” trials of their subscription service as well as providing one million gift cards available for giveaway at toll booth exits at each park
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14. Primary Functions of Marketing
LESSON 2.4
What is SEM?
Primary Functions of Marketing
Financing activities could include:
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
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15. Primary Functions of Marketing
LESSON 2.4
What is SEM?
Primary Functions of Marketing
In July of 2015, Under Armour bumped its annual forecast for sales for the second time, citing "increased confidence" in its footwear and international businesses.
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16. Primary Functions of Marketing
LESSON 2.4
What is SEM?
Primary Functions of Marketing
Budgets and projections/forecasts are never an exact science.
The 2015 release of the film Jupiter Ascending was forecast by some analysts to gross $ million has made just $56 million domestically (as of July 2015), not good news for the studio after budgeting a reported $180 million to produce and market the movie
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17. Primary Functions of Marketing
LESSON 2.4
What is SEM?
Primary Functions of Marketing
The US Army chose to end it NASCAR sponsorship after the Air National Guard spent $650,000 to sponsor a 2010 NASCAR Sprint Cup race that resulted in just 439 recruitment leads, none of which ended up joining the Army
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18. Primary Functions of Marketing
LESSON 2.4
What is SEM?
Primary Functions of Marketing
Like many professional sports franchises, MLB’s Washington Nationals offer payment plans for customers purchasing ticket packages. According to the team’s website, the Nats’ “Grand Slam E-Z Payment Plan allows season ticket holders to pay a fraction of the total cost of their tickets in easy monthly payments. This is available for either Full, Half, or Partial Season Ticket Plans.”
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19. LESSON 2.4
What is SEM?
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20. Primary Functions of Marketing
LESSON 2.4
What is SEM?
Primary Functions of Marketing
Selling: Communicating with consumers to assess and
fill their needs, as well as anticipating future needs
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
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21. Primary Functions of Marketing
LESSON 2.4
What is SEM?
Primary Functions of Marketing
Many professional sports teams utilize a call center to revenue generated by ticket sales
A call center is a physical location where calls are placed, or received, in high volume for the purpose of sales, marketing, customer service; typically through the use of telemarketers
Call centers employ a staff to perform telemarketing activity with the goal of selling ticket packages over the telephone
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22. Primary Functions of Marketing
LESSON 2.4
What is SEM?
Primary Functions of Marketing
The University of Minnesota athletics department outsourced their ticket sales operation to a third party organization (Aspire Group) to help boost ticket sales for Gopher athletic events.
Aspire deployed a full-time sales staff to work in Minneapolis on the effort.
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23. Primary Functions of Marketing
LESSON 2.4
What is SEM?
Primary Functions of Marketing
The University of Texas also contracted The Aspire Group to manage the program’s athletic ticket sales and service, a program that generates more than $40 million in ticket revenue each year according to the Sports Business Journal.
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24. Primary Functions of Marketing
LESSON 2.4
What is SEM?
Primary Functions of Marketing
Marketing Information-Management: Gathering and using information about customers to improve business decision making
Professional sports teams began offering smaller ticket packages (half-season, quarter-season, five-game packages) after determining through customer research that full season ticket plans were often too costly and/or time consuming for many fans to purchase
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25. Primary Functions of Marketing
LESSON 2.4
What is SEM?
Primary Functions of Marketing
As visitors pass through the turnstiles at Disneyland in California, guests are randomly selected to answer interview questions from friendly staff members equipped with hand held data recording devices. This provides Disney management with up to date information about park guests, such as where they are from, how many are in their group, and how many times they have visited the theme park in the past.
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26. Product/Service Management:
LESSON 2.4
What is SEM?
Primary Functions of Marketing
Product/Service Management:
Designing, developing, maintaining, improving, and acquiring products or services so they meet customer needs
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27. Primary Functions of Marketing
LESSON 2.4
What is SEM?
Primary Functions of Marketing
One of Nike’s product management efforts includes the “Nike Field Tester Program” in which selected applicants will wear Nike shoes for typically 4-8 weeks. Testers keep a daily written account of information relating to the product. Also, 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.
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28. Primary Functions of Marketing
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)
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29. Primary Functions of Marketing
LESSON 2.4
What is SEM?
Primary Functions of Marketing
In 2015, Major League Baseball made a tweak to its annual “Home Run Derby” event by adding a clock, an adjustment to the product that left fans very pleased with the results
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30. LESSON 2.4 REVIEW (ANSWERS)
What is SEM?
1) Describe the seven functions of marketing
1- Pricing
2- Distribution
3- Promotion
4- Financing
5- Selling
6- Marketing information-management
7- Product and service management
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31. Blank Slide Available for Teacher Edits
LESSON 2.4
What is SEM?
Blank Slide Available for Teacher Edits
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