1. Sports and Entertainment Marketing © Thomson/South-Western Do Now Define marketing. What is the most important aspect of marketing? Chapter 4 Slide 1

2. Sports and Entertainment Marketing © Thomson/South-Western ChapterChapter Hit a Home Run with Customers 4.1 The Marketing Concept 4.2 Discover What People Want 4.3 Target Markets 4.4 Customer Service 4

3. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 3 Lesson 4.1 The Marketing Concept Goals Explain the central focus of the marketing concept. Explain the reasons for increased sports and entertainment options.

4. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 4 THE MARKETING CONCEPT marketing concept keeping the focus on the customer’s needs for a product or service About half of every consumer dollar spent pays for marketing costs. Satisfying customer needs is the most important aspect of marketing.

5. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 5 Maintain Relationships Successful customer relationships are critical to the marketing concept. Customer satisfaction is the bottom line for maintaining successful marketing relationships.

6. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 6 What is the most important aspect of marketing?

7. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 7 INCREASED SPORTS AND ENTERTAINMENT OPTIONS U.S. citizens have more discretionary income than in the past. drives up demand for sports and entertainment increases competition

8. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 8 Customer Focus productivity rate at which companies produce goods or services in relation to the amount of materials and number of employees utilized

9. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 9 identify customer needs location provide products perceived as superior maintain successful customer relationships offer the appropriate marketing mix product price promotion location successful marketing strategy

10. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 10 Weekend Entertainment Choices breakeven point the minimum sales and attendance required to cover all of the expenses of organizing, planning and promoting the event profit revenue earned beyond the breakeven point

11. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 11 Opportunity Cost opportunity cost the value of the next best alternative that you forgo when making a choice The value is measured in terms of the benefits that you are giving up.

12. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 12 List expenses of a planned entertainment event along with the planned ticket prices. Create Excel spreadsheet to identify the breakeven point in dollars & attendees. How can we ensure revenues exceed the breakeven point?

13. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 13 Lesson 4.2 Discover What People Want Goals Explain the importance of understanding buyer behavior when making marketing decisions. List and describe means of collecting marketing information for use in decision making.

14. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 14 UNDERSTAND BUYER BEHAVIOR economic market all of the consumers who will purchase a product or service

15. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 15 Consumer Spending Habits benefits derived the value people believe they receive from a product or service

16. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 16 the capability to produce products or services more efficiently and economically than the competition comparative advantage

17. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 17 Consumer Wants and Needs hierarchy of needs identifies five human areas of needs

18. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 18

19. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 19 spending with little thought during emotional times rational purchases define wants and needs assess priorities and budget conduct research compare alternatives make a well thought out purchase emotional purchases

20. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 20 based on loyalty to a particular brand or product patronage purchases

21. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 21 What is meant by benefits derived?

22. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 22 GATHER INFORMATION Marketers are often involved in every step of the decision-making process.

23. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 23 recognize a need or a want conduct product research evaluate choices decide what to purchase evaluate the product after the purchase The decision-making process involves the following steps.

24. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 24 Information Needed for Marketing Decisions Information about consumers that is important to consider include demographics shopping behaviors how consumers spend money product and brand preferences frequency of purchases

25. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 25 economic uncertainty reduces consumer spending marketplace competition provides consumers with choices technological advances have impacted how consumers research and buy products The business environment impacts consumer spending as follows:

26. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 26 Sources of Information for Businesses internal sources a business’s own customer records, sales records, production records, and operation records external sources government reports, trade and professional organizations, business publications, commercial data, and information services

27. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 27 obtained for the first time and specifically for the particular problem or issue being studied secondary data information previously collected for another purpose but is now found useful in the current study primary data

28. Sports and Entertainment Marketing © Thomson/South-Western Homework Explain the decision-making process when buying a car in paragraph form. Be sure to include: How did you settle on the kind of car you are going to purchase? What did you take into consideration when making this decision? Chapter 4 Slide 28

29. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 29 Lesson 4.3 Target Markets Goals Define target market and market segment. Describe how businesses use market segmentation.

30. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 30 DETERMINE THE TARGET MARKET target market specific group of consumers you want to reach

31. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 31 Focus Marketing Efforts market segment a group of consumers within a larger market who share one or more characteristics Consumers belong to multiple market segments. Marketers must identify the market segment to which they want to sell.

32. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 32 Meet Target Market Needs Market segmentation data can improve business decision making. number of potential customers customer income level level of interest in product or service

33. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 33 What is a target market? Provide an example of a company’s target market.

34. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 34 MARKET SEGMENTATION Markets may be segmented in many ways. geographic location demographics psychographics behavior

35. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 35 Geographic Segmentation divides markets into physical locations

36. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 36 Demographic Segmentation information that can be measured age income profession gender education marital status household size

37. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 37 Psychographics Segmentation characteristics that cannot be physically measured values interests lifestyle choices

38. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 38 Behavioral-Based Segmentation behavioral-based segmentation focuses on a customer’s attitude toward products and services product usage what products you use and how often product benefits the positive experiences or associations people derive from using a product or service

39. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 39 Capture a Market Share market share percentage of total sales of a product or service that a company expects to capture in relation to its competitors

40. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 40 List and describe four types of market segmentation.

41. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 41 Lesson 4.4 Customer Service Goals Explain the importance of outstanding customer service. Explain what it means to establish a service culture.

42. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 42 Terms customer service gap values-based culture

43. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 43 OUTSTANDING SERVICE EQUALS SUCCESS Business success depends on excellent customer service. Customer relationships should continue after the sale of goods and services.

44. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 44 A Track Record for Great Customer Service customer service gap the difference between customer expectations and the services actually received Customers are likely to tell at least 10 people about their poor customer service experiences.

45. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 45 Training Programs That Make an Impact Individuals hired for customer service positions should have a positive attitude and look forward to meeting the public. Proper employee training in proactive, efficient and courteous customer service is critical to providing a pleasant experience for customers.

46. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 46 Why is outstanding customer service critical to a business in a highly competitive marketplace?

47. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 47 CREATING A SERVICE CULTURE Gallery Furniture has effective customer service principles. They are: Demonstrate a values-based culture that is rooted in high performance and excellent customer service.

48. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 48 Passion results in energy. Demonstrate pride in every sale. Remember the value of long-term positive relationships. Follow the “FAST” (Focus, Action, Search, Tenacity) strategy.

49. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 49 How May I Help You? “It’s not my department” should be replaced with “How may I help you?” mystery guest hired by an outside firm to have an individual assess the performance of a business feedback on the individual’s experience as a customer is provided to the hiring business

50. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 50 Explain what it means to have a values- based culture.

51. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 51 PERFORMANCE INDICATORS EVALUATED Communicate ideas clearly to the judge (potential investor). Analyze all relevant data for proposing a new celebrity-theme restaurant.

52. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 52 Interpret demographics and financial data for a proposed business. Understand consumer demand and the existing competition. Demonstrate critical thinking and problem- solving skills necessary to propose and operate a successful business.

53. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 53 THINK CRITICALLY 1.Why is a business plan necessary for a popular celebrity who wants to open a restaurant in a city where he or she is well liked? 2.Give three examples of successful celebrity-theme restaurants and what makes them popular.

54. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 54 4.What advantage does a professional athlete have over an average citizen when opening a restaurant? 3.What would be a good grand opening event to attract the maximum amount of attention to the new restaurant?