SPORTS AND ENTERTAINMENT MARKETING UNIT ONE MARKETING AND SPORTS & ENTERTAINMENT • Chapter 1—World of Marketing • Basic principles of Marketing • Demographics • Marketing Mix • Chapter 2—Connections and Contrasts • History and Background • Legal issues • Business risks FUNCTIONS OF MARKETING Unit 1: Promotion, Product/Service Management, Distribution, Selling, Pricing, Marketing Information Management Chapter 1 World of Marketing • The Importance of Sports and Entertainment Marketing – – – – Two most profitable industries in U. S. Billions of dollars spent each year Main export of U. S. Vendors compete for share of market Why is it important? • With so many businesses competing for attention, an organized marketing plan with strategies that target specific consumers is essential. • This is the foundation of sports and entertainmentmarketing. Marketing Defined • The process of developing, promoting, and distributing products, or goods and services, to satisfy customers’ needs and wants. MARKETING DEFINED • GOODS—TANGIBLES • SERVICES--INTANGIBLES MARKETING PROCESS • Developing— – study consumers to determine what they want – design products to satisfy wants and needs MARKETING PROCESS • PROMOTIONAL— – Educate consumers – Create interest and desire – Make a sale – Create an image for a company and its products – Newspapers, magazines, radio, TV, direct mail Internet advertising MARKETING PROCESS • DISTRIBUTION— – – – – Means of getting the product into the consumers hands Buying and selling Sell directly to the customer Intermediaries--wholesalers Marketing Concept • The idea that organizations need to satisfy their customers while also trying to reach their organizations’ goals • Focus on customers’ needs and wants MARKET • Identify the customer • Have the desire and ability to buy a product MARKET • NEEDS • WANTS MARKET • TARGET MARKET – a specific group of consumers that an organization selects as the focus of its marketing plan – makes developing marketing plan easier to accomplish MASS MARKETING vs. MARKET IDENTIFICATION • More common in 1950’s • One key message directed to everyone • More sophisticated • Availability of information and computer technology • Market research companies • DEMOGRAPHICS – Statistics that describe a population in terms of personal characteristics – Age, income, occupation, gender, ethnic background, educational levels MARKETING MIX • 4 P’s MARKETING MIX • PRODUCT • Involve the goods, services, or ideas used to satisfy consumer needs • Designing, naming, and packaging a product MARKETING MIX • PRICE • • • • • Exchange process between customer and seller How much should be charged? How much does it cost to make? Expenses related to marketing What is the consumer willing to pay? MARKETING MIX • PLACE • Make the product available to the customer. • How and where does target market shop? • Channel of distribution—path a product takes from producer to consumer MARKETING MIX • PROMOTION • Communicated to the consumer • Advertising, sales promotion, publicity, personal selling • Selection of media as well as message to be delivered • What items in this topic are similar to what we have already studied? • What words are new?