SPORTS &
ENTERTAINMENT
MARKETING
Unit 1 Basic Principles of Marketing
THE EXCHANGE PROCESS
 Exchange Process- process of exchanging one item of value for another.
 Barter- trade one item of value for another.
 Monetary system- system of using money or paper currency
PERCEIVED VALUE VS REAL VALUE
 Perceived Value- how valuable someone thinks a product or service is; this type of
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value exists only in the person’s mind.
Marketing- the term marketing refers to a set of tactics used to increase the
perceived value of a product or service in the minds of consumers.
Types of utility
Form Utility- value a consumer sees in a final product.
Time Utility- how useful an item is at a certain time.
Place Utility- Certain items are more useful in certain places and are perceived as
more valuable. For example, there is a much greater demand for snow shovels in the
Northern states than in the Southern states because of the frequency of snow in
these places. Therefore, snow shovels have greater value in this part of the country.
Possession Utility- Possession utility refers to the value a buyer perceives in owning
a product. For example, a person who has to haul things back and forth frequently
may see more value in owning a pickup truck rather than borrowing or renting one
than someone who rarely has to haul items.
PERCEIVED VALUE VS REAL VALUE CONT
 Image Utility- Image utility is the imagined usefulness an item may have
for a person's self-worth, popularity, or confidence. For instance, a
trendy, name-brand pair of jeans will cost more than an off-brand pair
because of their perceived image utility.
 Target Market- The group of people most likely to value their products.
MARKET RESEARCH
 Market research is the gathering and analysis of data related to the
demand, competition, and consumers (i.e., target market) of a product
or service.
 Have you ever received a survey in the mail from a company? This is a
type of market research. Companies have a lot to gain by finding out
more about their target market. After all, the more they know about
you, the better they can market their products to you.
 Brands- Contrary to popular belief, a brand is more than just a company
name or logo. It is a promise that the company makes to the consumer
about the experience they can expect from the company's products or
services. Many a marketing guru will tell you that a brand is a company's
most important asset. Therefore, everything about a company right
down to its colors, spokesperson, promotions, messaging, and the like
must complement and work toward building the brand.
7 STEPS TO CREATING A MARKETING PLAN
1.
Determining the utility/utilities of the product
2.
Determining the current and projected demand for the product
3.
Identifying any existing competitors
4.
Using market research to determine an ideal price point for the
product
5.
Determining the target market for their product
6.
Using market research to develop a brand promise
7.
Creating plans for promotional strategies to attract and keep
consumers
INTERNET MARKETING
 The following is a list of some of the most common components of an
Internet marketing campaign:
 A website
 A social media presence
 Email marketing
 Content Marketing
 Search Engine Optimization (SEO)
TEXT QUESTIONS & DISCUSSIONS
 Please make sure to refer to the Text Questions and Discussions to
help prepare yourself for the quizzes.