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Unit 4 SEM

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Sports & Entertainment Marketing
Unit Four Outline, 5th Edition
Unit 4:
Marketing Applications
OVERVIEW
Unit four begins to integrate basic marketing principles with the sports and entertainment industry
and explores the dichotomy of the term “sports and entertainment marketing” by defining the roots of
the phrase.
Students will be introduced to the components comprising the marketing mix as well as basic
marketing concepts. Students will investigate the importance of target markets, segmentation and
positioning strategies. In addition, they will learn the importance of market research and its
correlation with advertising.
OBJECTIVES
1)
2)
3)
4)
5)
6)
7)
8)
9)
Explain the marketing concept
Identify the components of the marketing mix
Define target market
Identify the five bases of segmentation
Illustrate the concept of positioning
Differentiate between customer and consumer
Explain the importance of market research
Identify specific forms of advertising and explain why businesses advertise
Understand the concept of digital marketing
LESSONS
Lesson 4.1
Lesson 4.2
Lesson 4.3
Lesson 4.4
Lesson 4.5
Lesson 4.6
Lesson 4.7
Lesson 4.8
Lesson 4.9
The Basic Marketing Concept
The Marketing Mix
Target Markets
Market Segmentation
Positioning
Understanding the Sports & Entertainment Consumer
Market Research
Advertising
Digital Marketing
KEY TERMS
Advertising
Market Segmentation
Niche Marketing
Demographics
Marketing Concept
Social Media
Copyright © 2010 by Sports Career Consulting, LLC
Exchange Process
Marketing Mix
Target Market
1
Lesson 4.1
Basic Marketing Concept
Define Marketing Concept
Marketing concept is the idea that a company’s ability to sell its products and services depends
upon the identification of consumer needs and wants & a successful determination of how best
to satisfy them.
Why Are Marketing Activities so Important to Business?
1. Financial success is a direct result of a company’s ability to effectively market its products
and services.
2. A business achieves profitability when they offer the goods and services that
Customers need & want at the right price.
3. Marketers strive to identify & understand all factors that influence consumer buying decisions.
Needs vs. Wants
A need is something a consumer must have & cannot live without. For example, without food or
water you would not be able to live. A want is something a consumer would like to have but is
not a basic necessity. For example you might want a New Computer or tickets to New York Jets
(The Best Team by The Way) game, but you can survive without them.
Exchange Process
The exchange process is a marketing transaction in which the buyer provides something of
value to the seller in return for goods and services that meet that buyer’s needs or wants.
The Exchange Process Has Three Requirements
1. There must be at least two parties involved.
2. Some means of communication must be present between all parties, and typically a desire
must be present to engage in a partnership with the other party.
3. Each party must be free to accept or decline
How Can The Marketing Process Benefit Consumers?
The marketing process serves many purposes and provides numerous benefits for the
Consumer.
1. The ability to add perceived value to goods and services
2. Making the buying process easy and convenient for consumers
3. Creating and maintaining reasonable prices
4. Offering a variety of goods and services
5. Increasing production
Copyright © 2010 by Sports Career Consulting, LLC
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Lesson 4.2
The Marketing Mix
The Four P’s of Marketing (Marketing Mix)
Define Marketing Mix
Marketing mix consists of variables controlled by marketing professionals in an effort to satisfy
the target market.
What Are the Four P’s of Marketing?
Product
1. Goods, services, or ideas used to satisfy consumer needs
2. Designed & produced on the basis of consumer needs and wants
Price
1. Determined by what customers are willing to pay and production costs.
Place
1. The process of making the product available to the customer.
2. Marketers must identify where consumers shop to make these decisions.
3. Careful consideration is given to determining the distribution channels that will offer the
best opportunity to maximize sales.
Promotion
1. Information related to products or services are communicated to the consumer.
2. Marketers determine which promotional methods will be most effective
Copyright © 2010 by Sports Career Consulting, LLC
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Lesson 4.3
Target Markets
Before we examine target markets, we must first understand what determines a market
1. The group of potential consumers who share common needs and wants.
2. That consumer group must have the ability and willingness to buy the product.
3. Businesses strive to meet the needs and wants of those consumers.
Define Target Market
A target market refers to people with a defining set of characteristics that set them apart as a
group.
The target is a specific group of consumers with a defining set of characteristics.
This market shares one or more similar and identifiable needs or wants.
Considerations When Evaluating a Target Market:
Sizeable
1.
The size of the market.
2.
Market can have too many or too few consumers.
Reachable
1.
Ability for marketers to reach consumers.
2.
Marketer must have a means for communicating with target group of consumers.
Measurable & Identifiable
1.
Is talking about the ability to measure size, accessibility and overall purchasing power of
the target market.
Behavioral Variation
1.
Marketers seek to find similar behaviors within each respective target market.
2.
For example, motivation of buying for the corporate season ticket holder is different than
for the individual season ticket holder.
Target Market Strategies Are Influenced by Several Factors. What Are They?
1.
Diversity of consumer needs and wants.
2.
Organization size.
3.
Attributes of company products and/or services.
4.
Size and strength of competitors.
5.
Sales volume required for profitability.
Niche Marketing
Define Niche Marketing
Niche Marketing is the process of carving out a relatively tiny part of a market that has a special
need not currently being filled.
Cable television channels often seek niche audiences to appeal to specific target groups with a
common set of interests.
Niche marketing often offers a unique opportunity to consumers or one that has not been
offered in the past.
Copyright © 2010 by Sports Career Consulting, LLC
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Lesson 4.4
Market Segmentation
Market Segmentation
Define Market Segmentation
Market segmentation is the process of identifying groups of consumers based on their common
needs.
Segmentation is the first step toward understanding consumer groups as it assists in
determining target markets, the marketing mix and developing positioning strategies.
Segmentation is important because it allows businesses to customize their marketing mix and
strategies to meet the needs of the target market.
Bases for segmentation
Demographic
What is Demographic Information?
Demographic information provides descriptive classifications of consumers.
Demographic Information Focuses on Information That Can be Measured.
1. Age
2. Income
3. Household statistics
4. Occupation
5. Gender
Product Usage
Reflects what products consumers use, how often they use them, and why they buy said
Products.
Psychographic
Grouping consumers based on personality traits & their lifestyle.
Benefits
Refers to a perceived value consumers receive from the product or service.
Geographic
Dividing of markets into physical locations
Sports consumers are characteristically loyal to particular regions when making purchase
decisions
Copyright © 2010 by Sports Career Consulting, LLC
5
Lesson 4.5
Positioning
Positioning
Define Positioning
Positioning is the fixing of a sports and entertainment entity in the minds of consumers in the
target market.
Positioning also refers to the place the product occupies in consumers relative to competing
products.
Positioning Strategy
Products or services are grouped together on a positioning map.
Products or services are compared and contrasted in relation to one another.
Marketers must determine a position that distinguishes their own products and services from
competitor products and services.
Selecting a Positioning Strategy
Identify all possible competitive advantages
Includes: Products, services, channels, people or image can be sources of differentiation
Organizations often position their products relative to competitor weaknesses.
Choose the right competitive advantage.
Positioning Errors to Avoid
1.
Which differences to promote?
2.
Are the differences legitimate?
Product Differentiation
Define Product Differentiation
Product differentiation refers to a positioning strategy that some firms use to distinguish their
products from those of competitors.
Re-positioning
Define Repositioning
Re-positioning is a marketer’s plan for changing consumers’ perceptions of a brand in
comparison to competing brands.
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Lesson 4.6
Understanding the Sports & Entertainment Consumer
Customer vs. Consumer
The customer is the individual who buys the product or service.
The consumer is the individual who uses the product or service.
The customer can also be the consumer.
Who is The Sports & Entertainment Business Consumer?
Marketers sell sports and entertainment participation.
Who are The Sports Consumers?
Sports consumers are people who may play, officiate, watch, or listen to sports, or read, use,
purchase, and/or collect items related to sports.
Could also include:
1. Manufacturers
2. Resellers
3. Sports Governing Bodies
Sports Consumers Participate in The Exchange Process in Two Ways.
Spectators as Consumers
Benefit by watching the event or game.
Exchange for tickets and entertainment.
Participants as Consumers
Benefit by playing, competing, or participating in the event.
Exchange for equipment and/or participation.
Copyright © 2010 by Sports Career Consulting, LLC
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Lesson 4.7
Market Research
Market Research
Market research is the process of systematically collecting, recording, analyzing, and presenting
data related to marketing goods and services.
Market research provides an opportunity for companies to get to know their customers.
Marketing research gathers information pertaining to:
1. Consumers
2. Competition
3. Company
4. Culture/climate
The information gathered through marketing research is used to:
1. Form links between consumers and companies
2. Identify and define marketing opportunities and potential challenges
3. Generate, refine, evaluate and monitor marketing activities
4. Analyze and understand the company, its industry and its competition
What Are The Four Steps in The Research Process?
1. Identify the problem, concern or additional desired information to be gathered.
2. Select and design research.
Primary research is the original research conducted for a specific marketing situation.
What Are Examples of Primary Research?
1. Surveys
2. Direct mail
3. Telephone
4. Interviews
5. Focus groups
Secondary research is published data that has been collected for some other purpose.
What Are Examples of Secondary Research?
1.
Census reports
2.
Demographic analyses
3.
Trade associations
4.
State agencies
5.
Commercial research firms
Collecting Data
A census is a method used for obtaining statistical information that counts every member of a
population.
A sample is a method for accumulating statistical information that is only obtained from a subset
of a population.
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Report And Analyze
Qualitative research data typically involves large numbers of respondents, typically 100 or more,
and yields results that are representative of the total population.
Quantitative research data is generally gathered in the form of focus groups.
Another common form of qualitative research is in-depth one-on-one or two-on-one interviews
Communicate results of research.
Copyright © 2010 by Sports Career Consulting, LLC
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Lesson 4.8
Advertising
Advertising
Define Advertising
Advertising is any paid, non-personal form of communication by an identified company
promoting goods and services.
List Five Examples of Different Advertising Formats.
1. TV commercials
2. Print advertisements
3. Direct mail
4. Internet (banner advertising, “pop up” ads)
What Role Can Advertising Play in Helping Marketers Achieve Their goals?
1. Effective communication
2. Create awareness
3. Create or change image
4. Associate a brand with feelings and emotion
5. Precipitate behavior
6. Establish and maintain positive public perceptions
7. Assist in the increase in sales
Types of Advertising
Print media
Any written form of communication used to inform, persuade, or remind consumers about
products or services offered
Outdoor advertising
Mass Transit Advertising
Uses public transportation, such as buses, bus stands, taxicabs, and subways to post
advertising messages.
Broadcast media
Any visual and/or audible form of communication used to inform, persuade, or remind
consumers about goods or services offered.
1.
Radio advertising
Advertisers match their target market to a radio station that segments a particular market
and has the ability to reach a wide audience
2. Television advertising
Includes commercials and infomercials.
Is typically the most effective type of broadcast media.
Is traditionally the most expensive form of broadcast media.
Online media
Placement of advertising messages on the Internet
i.
Banner ads, pop-ups etc.
Internet advertising is the fastest growing advertising segment in the world
i.
The Internet was the ONLY medium expected to see an increase in
advertising spending during 2009.
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Specialty media
Known more commonly as promotional products
Includes “everyday” items displaying a company name or logo
i.
Calendars
ii.
Pens
iii.
Magnets
iv.
Coffee mugs
Additional forms of media
Marketers often use many other creative ways of communicating advertising messages to
consumers
i.
Blimps
1.
Goodyear, Outback, Met One (“Snoopy One”)
ii.
Supermarket carts and grocery bags
1.
Select grocery stores in Oregon offer “eco-friendly” grocery bags
?featuring the Portland Trail Blazers logo
Advertising (Ad) And Public Relations (PR) Agencies
What is an Advertising Agency
An ad agency is an organization that decides on and implements an advertising and
marketing strategy for a customer while a PR agency is responsible for determining an
effective public relations strategy for each respective client.
Why do Companies Work With Agencies?
a.
Expertise
b.
Time constraints
c.
“Fresh” perspectives
d.
Access to athletes, celebrities, entertainers
Questions Organizations Address When Selecting an Agency.
a.
Does the agency have a solid, comprehensive marketing plan in place?
b.
Does the agency have comprehensive marketing skills?
c.
Can the agency effectively determine the target market and find a means to
reach them efficiently?
d.
Does the agency have a track record of success?
e.
Has the agency worked with others in your industry?
Copyright © 2010 by Sports Career Consulting, LLC
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Lesson 4.9
Digital Marketing
Digital Marketing
Define Digital Marketing
Digital marketing can be described as actively promoting products and services using digital
distribution channels as an alternative to the more traditional mediums such as television, print
and radio.
How Does Clutter Impact Marketers?
Marketers today must determine ways to effectively cut through the clutter if the firms they
represent are to financially thrive.
Digital Marketing Strategies
Define Marketing Strategies
Digital The Four Primary Types of Digital Marketing Strategies
1. Internet marketing
2. Mobile marketing
3. Social marketing
4. Viral marketing
The key goal for digital marketers is to focus on interactive elements, encouraging consumers to
actively participate in promotions.
Consumer-Generated Media (CGM)
CGM originates from:
1. Blogs
2. Message boards and forums
3. Public discussions (Usenet newsgroups)
4. Discussions and forums on large email portals (Yahoo!,AOL, MSN)
5. Online opinion/review sites and services/ feedback/complaint sites
TEACHER NOTES
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Copyright © 2010 by Sports Career Consulting, LLC
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