1. Unit 2 Putting the Customer First
22 Discover What People Want

2. Discover What People Want The Essential Question: Why must sports and entertainment venues conduct research to keep repeat customers?
Student Learning Objectives:
Explain the importance of understanding buyer behavior when making marketing decisions
List and describe means of collecting marketing information for use in decision making

3. Key Vocabulary Terms Economic Market Benefits Derived
Comparative Advantage
Emotional Purchases
Rational Purchases
Patronage Purchases

4. Opening Act
Sports Organizations get quality corporate sponsors by evaluating the potential benefits of a partnership. Just like the relationship between the sports organization and its players, the relationship between the sports organization and its corporate sponsors must be mutually beneficial for long term survival.
Work with a partner. Assume you are a part of a sports organization in need of a sponsor. Discuss how you would research possible sponsors. What information would you need to ensure a mutually beneficial relationship?
Start looking at philosophy and mission statements to match them to the team or association’s philosophy.

5. Opening Act. Cont.
Let’s look at a few sponsors mission statements. How does it align with our goals?

6. Understanding Buyer Behavior
The economic market includes all of the consumers who will purchase a product or service.
What will customers want &
How much are they willing to pay.
What are their spending & buying habits

7. Consumer Spending Habits
The price for a ticket is dependent upon the degree of interest and the importance of the event—playoffs, Super Bowl
Actual Athletes
Rivalry
Benefits Derived—value people believe they receive from a product or service.
Comparative advantage—lower production costs than the competition—passing the savings onto the customer.
Create a graph of comparative advantage

8. Comparative Advantage

9. Comparative Advantage Exercise
Research 3 competing products and a comparative advantage for each one such as a lower price, unique design, added features, etc.

10. Comparative Advantage Exercise
If a business has a comparative advantage, how does it affect the customer?
The idea means that companies that are able to produce more goods efficiently should be able to pass the savings to the consumer by selling the products at a lower cost.

11. Consumer Wants and Needs
Consumer vs. Customer
Consumer is a person that purchase that is for personal use.
A Customer could be a consumer but can also be an organization or business whom is purchasing large quantities of goods for resale, business operations, or as part of the production of another product.

12. Setting a price
With a partner discuss what price fans are willing to pay for the sweatshirt, where it could be distributed/sold, and what a good promotional strategy is.

13. Abraham Maslow’s Hierarchy of Needs
You are going to divide into 5 groups. Each group is responsible for
define the level of need, according to Maslow's model
list needs belonging to that level
describing how those needs are met
Creating a collage that illustrates the need.
A spokesperson from each group can show and explain the collage to the class

14. Abraham Maslow’s Hierarchy of Needs
Self-
Actualization
Self-Esteem
Safety and Security
Basic—Physiological
Social—Loving and Belonging
SelfActualization
Realizing your personal potential
Esteem
Respect and recognition from others and feelings of adequacy
Social
The desire for friends, family, and love
Security
Physical safety and economic security
Physiological
Food, sleep, water, shelter, air

15. Step 5 is about realizing yourself potential in achieving your goals

16. Your shopping decisions
When are you most likely to go shopping? When you are happy or sad? When you want something?
Why do stores offer credit cards as a form of payment.
Credit cards can lead to discounts and enables consumers to purchase more now, increasing emotional or impulse purchases.

17. Discover What People Want
Buying Motives
Emotional
Rational
Patronage purchases—brand, product, retail store

18. Time Out- Poster Rotating Activity
Poster 1- What do you think the consumer decision making process is? Think about your own personal experiences.
Poster 2- What Information is needed for Marketing Decisions?
Poster 3: What are the sources of information for a business?

19. What is the consumer Decision making process?
Recognize a need or want
Conduct research on the products that meet that need
Evaluate the choices
Make the purchase
Post-purchase evaluation
Cognitive dissonance- the state of having inconsistent thoughts, beliefs, or attitudes, especially as relating to behavioral decisions and attitude change.

20. What Information is needed for Marketing Decisions?
Demographics
Shopping Behaviors
Frequency of purchases
Government regulations and laws
Ethical Issues
Economic conditions
Flow of information due to technology

21. Information Sources
Internal sources—information inside the business/organization.
Sales, customer, production, operation records are just a few examples.
External sources—info outside the bus/organization.
Government
Trade Associations
Public & Private information sources

22. Data Collection Types
Primary data—information collected for the first time and specifically for the purpose of the research.
Customer survey
Observation
Samples and simulations
Secondary sources—data already collected
Government Stats