7044 version 3
28-Jun-16
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FITNESS INDUSTRY MANAGEMENT
Manage the marketing of fitness
services and products
level:
5
credit:
5
planned review date:
December 2002
sub-field:
Fitness
purpose:
People credited with this unit standard are able to: apply
principles of marketing, promotion and public relations, and
client retention to the fitness industry; apply knowledge of the
fitness industry to the development of fitness services and
products; select fitness marketing messages and channels;
develop and assess fitness advertising concepts; analyse
marketing expenditure and performance; and price fitness
services and products.
entry information:
Prerequisite: Unit 7039, Identify components and analyse
structure of the fitness industry, or demonstrate equivalent
knowledge and skills.
accreditation option:
Evaluation of documentation and visit by NZQA and industry.
moderation option:
A centrally established and directed national moderation
system has been set up by the Sport, Fitness and Recreation
Industry Training Organisation - Fitness Advisory Group.
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FITNESS INDUSTRY MANAGEMENT
Manage the marketing of fitness
services and products
special notes:
1
Competence in this unit standard may be demonstrated
in simulated situations related to an existing fitness
and/or recreation facility or enterprise. If this unit
standard is being assessed in an on-job situation then
the references to simulated situations may be
considered redundant except in respect of emergency
procedures.
2
Competence in this unit standard requires knowledge
of provisions of the Fair Trading Act 1986 (FTA) and
the Consumer Guarantees Act 1993 (CGA) relating to
the advertising, marketing and selling of fitness industry
products and services.
Elements and Performance Criteria
element 1
Apply principles of marketing, promotion and public relations, and client retention to the
fitness industry.
performance criteria
1.1
Marketing terminology is interpreted through description of key terms within
context.
Range:
key terms include - needs, wants, demands, utility, market,
advertising, selling, marketing, promotion, public relations, market
research, segmentation, service and product features, service and
product benefits, marketing mix, marketing channels.
 New Zealand Qualifications Authority 2016
7044 version 3
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FITNESS INDUSTRY MANAGEMENT
Manage the marketing of fitness
services and products
1.2
Application of marketing principles to a fitness enterprise generates marketing
objectives within FTA and CGA guidelines.
1.3
Application of marketing principles to a fitness enterprise generates a plan to
meet client retention objectives of the enterprise.
Range:
1.4
Application of marketing principles to a fitness enterprise generates a plan to
meet promotional objectives of the enterprise.
Range:
1.5
measuring client satisfaction, meeting expressed client needs,
increasing retention rates.
identify opportunities (co-promotion, sponsorship, event planning,
internal, external), schedule events, identify resources required,
identify desired outcomes.
Application of marketing principles to a fitness enterprise generates a plan to
meet public relations objectives of the enterprise.
Range:
identify opportunities, identify resources required, identify staff
training needs.
 New Zealand Qualifications Authority 2016
7044 version 3
28-Jun-16
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FITNESS INDUSTRY MANAGEMENT
Manage the marketing of fitness
services and products
element 2
Apply knowledge of the fitness industry to the development of fitness services and products.
performance criteria
2.1
Availability of information on the fitness industry internationally is analysed in
terms of channels and sources.
Range:
2.2
periodicals, videos, conferences, visitors, consultants.
In a simulated situation, a market need is identified and a fitness service or
product developed to match the need and ability to pay of the target client
market.
Range:
defined client population, defined market need, defined fitness
service or product, development costing, staff training requirements,
marketing requirements, pricing, delivery channels, funding
possibilities.
 New Zealand Qualifications Authority 2016
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28-Jun-16
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FITNESS INDUSTRY MANAGEMENT
Manage the marketing of fitness
services and products
element 3
Select fitness marketing messages and channels.
Range:
defined aspects - product, target market, geographical area, budget, enterprise
goals.
performance criteria
3.1
Cost and benefit categories for individuals, groups with special needs and the
nation are identified in terms of fitness participation.
Range:
3.2
Marketing messages relating to fitness enterprise participation are identified in
terms of benefits for the target market.
Range:
3.3
direct costs - participation fees, clothing costs, equipment costs;
indirect costs - transport costs, nutrition costs;
direct benefits - health, appearance, weight management,
performance, stress management, self-esteem, social, fashion
and/or style;
indirect benefits - reduced exposure to degenerative disease,
slower aging.
benefits - health, appearance, weight management, performance,
stress management, self-esteem, social, fashion and style.
Available channels for marketing are identified in terms of access to the target
market.
Range:
channels - TV, radio (commercial, community), print newspaper,
print magazine, flyer, direct mail (mailing list, area), poster,
sponsorship, signage (permanent, seasonal, event-related), fax,
telephone (contact list, area).
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FITNESS INDUSTRY MANAGEMENT
Manage the marketing of fitness
services and products
3.4
Selection of messages and channels matches marketing goals of the enterprise.
Range:
enterprise image (branding), target market, compatibility with
existing marketing, timing, cost, response generation.
element 4
Develop and assess fitness advertising concepts.
Range:
defined aspects - product, target market, geographical area, budget, enterprise
goals;
type - graphic, voice, print.
performance criteria
4.1
Analysis of current advertising concepts identifies range of competition in the
market.
Range:
4.2
direct competition, indirect competition.
Advertising concepts developed match product and target market characteristics.
Range:
product characteristics may include - type of activity, existing
participants, fitness outcomes, appearance outcomes, social
outcomes, pricing;
target market characteristics may include - age, gender, ethnicity,
family status, household type, socioeconomic status, subculture.
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FITNESS INDUSTRY MANAGEMENT
Manage the marketing of fitness
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4.3
Selected response assessment method is capable of generating valid and
reliable information on the effects of an advertising campaign.
Range:
sample procedures, survey method, question selection.
element 5
Analyse marketing expenditure and performance.
performance criteria
5.1
Methods for recording marketing expenditure provide full and accurate records of
all material expenses associated with a marketing campaign or period.
5.2
Methods for recording results selects out responses attributable to a marketing
campaign or period.
Range:
5.3
point of sale survey, daily sales records.
Analysis of performance provides enterprise with estimate of net financial benefit
associated with a marketing campaign or period.
Range:
performance indicators include - statement of income and
expenditure, comparison with period preceding, comparison with
parallel period in previous year, comparison with budget projections
and with membership and participation goals (as applicable).
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28-Jun-16
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FITNESS INDUSTRY MANAGEMENT
Manage the marketing of fitness
services and products
element 6
Price fitness services and products.
performance criteria
6.1
Understanding of product pricing is demonstrated through identification of key
principles.
Range:
6.2
Application of pricing principles to a fitness service or product produces a pricing
policy that meets centre requirements.
Range:
6.3
select pricing objectives, determine demand, estimate costs,
analyse prices of competing products and services, select a pricing
method, assess competitor reactions.
select pricing objectives, determine demand, estimate costs,
analyse prices of competing products and services, select a pricing
method, select final price.
Procedures for evaluating pricing policy are implemented to meet centre reporting
requirements.
Range:
demand trends (new clients, renewing clients), revenue trends,
competitor reactions.
 New Zealand Qualifications Authority 2016
7044 version 3
28-Jun-16
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FITNESS INDUSTRY MANAGEMENT
Manage the marketing of fitness
services and products
Comments to:
Sport, Fitness and Recreation Industry Training Organisation
- Fitness Advisory Group
Unit Standard Revision
PO Box 160
WELLINGTON
by December 2002.
Please Note:
Providers must be accredited by the Qualifications Authority
before they can offer programmes of education and training
assessed against unit standards.
Accredited providers assessing against unit standards must
engage with the moderation system that applies to those unit
standards. [Please refer to relevant Plan ref: 0069]
 New Zealand Qualifications Authority 2016