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Sports and Entertainment
Unit 2
Using sports to reach the customer
The Marketing Concept
Keeping a business’ focus on satisfying customer
Half of every dollar spent pays for marketing costs
Relationship marketing: listening to customers and
carefully monitoring the latest consumer trends.
Customer satisfaction is the bottom line for
marketing relationships.
Question: How does Mizzou develop a relationship
with its fan base? For Mizzou fans
Productivity(rate at which companies produce goods
in relation to the amount of materials and number of
employees) doesn’t matter if you aren’t producing
what customers want
Increased options
A higher standard of living in the US has
resulted in more discretionary
income(income left over after paying for
necessities like food, clothing and shelter)
 This has caused an increased demand for
sports and entertainment events as well
as related merchandise.
 Statistics
Economic issues
Breakeven point-minimum number of
sales/attendance required to cover all expenses
for organizing, promoting, and running the event.
 Opportunity cost-Value of the next best
alternative that you forgo when making a choice,
or the benefits you are giving up.
◦ People look at convenience, pleasure, dollar cost, and
opportunity cost when deciding to attend an event.
Comparative advantage-the capability to produce
products of services more effectively and
economically than the competition
Buyer behavior
Economic market-all consumers who will
purchase a product of service
◦ Goals of marketing
 Determine what consumers want
 Determine how much they will pay
Spending habits
◦ Price paid determined by:
Degree of interest
Popularity of athletes or celebrities
Benefits derived (value people believe they receive)
Consumer Wants/Needs and
Hierarchy of Needs
◦ Lowest-physiological needsfood, water, sleep, shelter
◦ Security needs-physical and
economic security
◦ Social needs-desire for friends
family and love
◦ Self-esteem needs-gain
recognition and respect from
others, feeling competent
◦ Self-Actualization needsrealization of one’s full potential
and self-fulfillment
The challenge is to design a
marketing campaign because
different people are at
different levels
Buying motives
Emotional purchases-spend with little thought during
emotional highs and lows.
◦ When your team is winning you are emotionally influenced to
pay higher prices for tickets and merchandise
◦ Think of a recent emotional purchase you have made.
Rational motive-when individuals recognize needs and wants,
assess their priorities and budget, conduct research and
compare alternatives.
◦ A runner shops around for the shoes that provide the best fit,
support, flexibility, and durability.
◦ Think of a recent rational purchase you have made
Patronage purchases-based on loyalty to a particular brand
or product
◦ Reinforced by endorsements by favorite athletes or positive
experience with the brand.
◦ Think of a recent patronage purchase you have made
Target markets
Specific group of customers you want to reach.
 Major League baseball
 Market segment-group of customers within a
larger market who share one or more
◦ Segmentation by:
 Geographics-physical location
 Demographics-age, gender, marital status, education/income,
 Psychographics-values, interests, and lifestyle choices
 Behavioral based-two ways
 Product usage
 Benefits derived
Market Share
Percentage of total sales of a product or
service that a company expects to
capture in relationship to its competitors
 Marketshare for smartphones
Customer Service
Customer service gap-difference between
customer expectations and service actually
 Creating a service culture
◦ Demonstrate a values based culture that is rooted in
high performance and excellent customer service
◦ Follow FAST(focus, action, search tenacity)
◦ Passion results in energy
◦ Demonstrate pride in every sale
◦ Remember the value of long-term positive
Ten best and worst companies in customer