Marketing and the 4P’s Sports and Entertainment Marketing Sports & Entertainment Industries • Today, more than any other time in history, are the two most profitable industries in the U.S. • Fans spend billions of dollars each year on recreation • Reaches around the globe as well • Entertainment is a main export of the U.S. What is Marketing? If you know: • • • • • • • • • • • • Nike: “Just Do It” Wheaties: “Breakfast of Champions” Under Armour: “Protect this house” Lowes: “Lets build something together” Butterfinger: “Nobody better lay a finger on my butterfinger” Apple: “There’s an app for that” You have been exposed to marketing. Marketing Defined: The process of developing, promoting, and distributing products, or goods/services, to satisfy customers’ needs and wants. • To sum it up – Marketing is the creation and maintenance of satisfying exchange relationships. • Marketing is an “umbrella” term • Current marketing practices focus on customers and maintaining a close relationship with them Marketing Mix pg 10 • Describes how a business “blends” the four marketing elements. • The 4 P’s • Product • Place (Distribution) • Price • Promotion Marketing Mix • Product—what a business offers customers to satisfy needs • (Place) Distribution—the locations and methods used to make products available to customers • Price—the amount that customers pay for products • Promotion—ways to encourage customers to purchase products and increase customer satisfaction Product • Goods • Tangible items - have monetary value and satisfy your needs & wants (can touch them) • Examples: sports equipment, TV, clothing, candy. • Services • Intangible items - have monetary value and satisfy your needs & wants (can’t touch them) • Examples: tickets, banks, dry cleaners, amusement parks. Place (Distribution) • Involves the locations and methods used to make products available to customers. • Channel of distribution- path a product takes from the producer to the consumer • New Holland Apparel Place (cont’d) • Where do you buy a pair of sneakers or a theater ticket? • Internet? • Retail Store? • Theater? • Telephone Solicitation? • Wholesaler? • Retailer? Price • Amount that customers pay for products/services. • Approximately 50% of an item’s price is for the marketing costs! • Did you know? – On average, stores raise the price around 50% more than what they paid for it? Promotion Buy 2, get 1 free!! • ways to encourage customers to purchase products/services. • increase customer satisfaction. • includes: advertising, publicity, personal selling, and public relations Our product will make you better at everything! What are some forms of Promotion? • Newspaper • Magazine • Radio • Television • Direct Mail • Internet Advertising Satisfying Customer Needs • MOST important aspect of marketing! • Must perform the following: • Identify customer needs • Develop products/services that customers consider better than other choices • Operate business profitably Sports products pg. 78 • Sports products- goods, services, ideas or a combo of those related to sports that provide satisfaction to a consumer • Get into groups of three • Imagine you are marketing a new sports product – a fresh, new young athlete drafted into the pros • Plan a market strategy for selling this “product” Trivia Time! • What does ESPN stand for? • Entertainment and Sports Network Types of Sports Products • Unlike typical consumer products, sports products include a broader range of products. • Unique to sports are products that can be classified as goods or services, or both: • Sporting events- this is where it all starts. Athletes and the arenas get the ball rolling • Sports information- Involves news, stats, schedules and stories. Where do you find all this info? Types of Sports Products • Sports training- Service such as instruction that is provided through fitness centers, sport camps, and lessons • Sporting goods- Wide range of goods, such as licensed merchandise, collectibles, apparel and accessories. Product Line vs Product Mix • Businesses classify their products by “product line” and “product mix” • Product line- a group of closely related products manufactured and/or sold by a company • What products are sold in the product line by Adidas below: Product Line vs Product Mix • Product mix- the total assortment of products that a company makes and/or sells • What Adidas products does Dick’s Sporting Goods sell? • Boom. That’s product mix