Download The Marketing Mix - Mrs. Ingram`s Class Website

Sports Marketing
OMHS 2014-2015
Instructor: L. Ingram
• Section 1.1- What is Marketing?
• Section 1.2- Economics of Marketing
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Define Marketing.
Explain the marketing concept.
Define demographics.
Explain the marketing mix.
Explain economics and free enterprise.
Identify intellectual property rights.
Explain the different types of business ownership.
Explain the economic impact of sports and entertainment.
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To define marketing.
To explain the marketing concept.
To define demographics.
To explain the marketing mix.
• Who do you think would be the consumers of sports and
entertainment?
• Because of competition,
an organized marketing
plan is essential.
• Goods are tangible
items, such as sports
equipment. Services are
intangible products, such
as a theater ticket.
• Marketing is defined as
the process of
developing, promoting,
and distributing products,
or goods and services, to
satisfy customers’ needs
and wants.
• Just Do It!
• The Breakfast of
Champions
• Take the _____ Challenge
• I’m lovin’ it
• If you know each of these
company slogans, then you
have been exposed to
marketing.
• Distribution is the means of
getting the product into the
hands of the customer.
• Directly sold to customers.
• Sold by wholesalers and
retailers.
• Successful organizations
follow a marketing
concept.
• The first step in creating
a marketing concept is
identifying the market.
• Marketing Concept: the
idea that organizations
need to satisfy their
customers while trying to
reach their goals.
• Market: potential
customers with shared
needs who have the
desire and ability to buy
a product.
• Organizations spend lots
of money to learn about
their customers’ needs and
wants.
• Having a clear picture
about the target market
makes developing a
marketing plan easier to
accomplish.
• Needs: a lack of basic
necessities such as food,
clothing, or shelter.
• Wants: things that people
desire based on
personality, experiences,
or information about a
product.
• Target Market: specific
group of consumers that an
organization selects as the
focus of its marketing plan.
• Each row get together as
a group and choose one
movie that the majority
of you have seen most
recently.
• Identify the target
market that the
marketing people
probably had in mind
for this movie.
• What do you believe
were the promotion
decisions involved in
marketing this movie to
the target market?
• The United States census
provides useful
information about the
demographics of our
nation.
• Businesses use
demographic information
to develop their
marketing plans.
• Demographics: statistics
that describe population
in terms of personal
characteristics.
• Each of you belong to
more than one
demographic group.
• Example: A high school
student belongs to a
demographic group
named “high school
students.” But that same
student may be part of a
“teen-dominated families.”
See pg. 8 for examples.
• Consider the demographic
groups to which you
belong and write them
down on your paper.
• Let’s see how many
classmates might be
considered in the same
demographic groups.
• Marketers use a tool to
• Marketing Mix: a
develop strategies
combination of four basic
called the marketing mix.
strategies know as the
4P’s—product, price,
place, and promotion.
• To be effective, all 4 P’s
in a marketing plan must
focus on the target
market.
• Marketing mix strategies
involve product, price,
place, and promotion
decisions.
• Place decisions include
determining the channel
of distribution.
• Channel of Distribution:
path a product takes
from the producer to the
consumer.
Product
Decisions
• Involve the goods, services, or ideas used to
satisfy customer needs.
Price
Decisions
• Involve the exchange process between the
customer and the seller.
Place
Decisions
• Involve making the product available to the
customer.
Promotion
Decisions
• Involve how the goods or services are
communicated to the consumer.
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To explain economics and free enterprise.
To identify intellectual property rights.
To explain the different types of business ownership.
To explain economic impact of sports and entertainment.
• Why do you think the economics of marketing sports and
entertainment have global impact?
• The economics of
marketing sports and
entertainment have a
great impact globally as
well as locally.
• Economics: the study of
the choices and decisions
that affect making,
distributing, and using
goods and services.
• A measure of economic
growth is the gross
domestic product (GDP).
• GDP: (gross domestic
product) the value of all
goods and services
produced within a
country.
• Profit allows companies
to stay in business.
• As with most businesses,
there is a financial risk
involved with sports and
entertainment events.
• Competition is the basis
of the free enterprise
system.
• Profit: the money left
after all costs and
expenses of a business
are paid.
• Competition: as a
characteristic of free
enterprise, the struggle
among companies for
customers.
• Risks
• Let’s all brainstorm and
think of all the different
risks moviemakers would
have.
• How might these risks
change the way
moviemakers do business?
• Connect
• Have you ever bought a
ticket to see a performer
and paid more than the
normal price Was the show
sold out?
• Inherent in the free
enterprise system is the
right to own property
and start a business.
• Intellectual property
rights are protected by
the following:
• Copyrights
• Patents
• Trademarks
• Copyright: legal
protection of a creator’s
intellectual property or
products.
• Types of business ownership include:
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Sole Proprietorship
Partnership
Corporation
Subchapter S Corporation
• Involves only ONE owner.
• Advantages
• Ease in starting and ending a business.
• Complete control.
• All profits belong to the one owner.
• Disadvantages:
• Lack of finances to expand.
• Unlimited liability (creditors may take an owner’s personal property to
satisfy a debt)
• Time devoted to the business.
• Two or more owners of a
business.
• Advantages:
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Shared financial investment.
Shared responsibilities.
Shared expertise.
Ability to expand.
• Disadvantages
• Unlimited liability.
• Difficulty withdrawing.
• Death of a partner dissolves the
partnership.
• “Silent Partner” makes a
business a limited
partnership.
• There must be at least one
general partner who assumes
unlimited liability.
• Business entity that has the
ability to conduct business
and enter into contract apart
from its owner or owners.
• Must be chartered.
• Owners are called
stockholders.
• Advantages:
• Ability to generate capital
investment.
• Limited liability for its owners.
• Ability to expand.
• Ease of owners joining and
leaving.
• Disadvantages:
• Complex structure.
• Higher tax rate.
• Double taxation (taxes on
company and shareholder)
• Increased government
regulations.
• Must follow all the same government regulations as a
corporation, but it is taxed like a partnership.
• Restrictions to Qualify:
• No more than 35 shareholders.
• No more than 80% of it’s revenue can come from foreign sources.
• You will be divided into 4 groups. The first group will be a sole
proprietorship, second group a partnership, third group a
corporation, and the fourth group a Subchapter S Corporation.
• Each group is to determine the nature of the sports or
entertainment business and why it is well suited for that kind of
business ownership.
• List the types of jobs in each business.
• A spokesperson from each group will explain to the class how
the group has set up the jobs for that particular business.
• Location benefit economically from sports and/or entertainment
events and marketing.
• On a local level, sporting events and entertainment venues
economically impact areas in which they operate because they
draw audiences.
• Hosting the Olympics has a huge economic impact on a region
before, during, and after the event.
Hotel
Local
Merchants
Concessio
ns
Security
Services
Other
recreation
Media
EVENT
Airlines/Tr
ansportati
on
Ticket
Sales
Product
Sales
Employee
Venues
Restaurant
s
• Ticket sales to major events
like the Olympics and
world fairs are only one
source of revenue.
Everyone involved in these
events can profit before,
during, and after the
event.
• Name three businesses that
might benefit from the
Super Bowl taking place in
their community.
• Look up in the newspaper two major events soon to take place
in Birmingham or a nearby city. Make a list of the businesses
that will be most affected by these events. This will be due at
the beginning of class tomorrow.