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What Is Marketing?
Economics of Marketing
2
Chapter Objectives
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.
3
The Importance of Sports and
Entertainment Marketing
The sports and entertainment industries have
become two of the most profitable industries in the
United States.
4
Marketing Defined
Because of competition, an
organized marketing plan
is essential.
Marketing:
Goods are tangible items,
such as sports equipment.
Services are intangible
products, such as theater
tickets.
5
Marketing Defined
Successful organizations
follow a marketing
concept.
marketing concept:
The first step in creating a
marketing concept involves
identifying the market.
Market:
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Marketing Defined
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:
Wants:
target market:
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Marketing Defined
The United States census
provides useful information
about the demographics
of our nation.
Demographics:
Businesses use
demographic information to
develop their marketing
plans.
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The Marketing Mix
Marketers use a tool to
develop strategies called
the marketing mix.
To be effective, all 4 Ps in a
marketing plan must focus
on the target market.
marketing mix a
combination of four basic
strategies known as
____________________
P___________________
P___________________
P___________________
P___________________
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The Marketing Mix
Marketing mix strategies
involve product, price,
place, and promotion
decisions.
channel of distribution:
Place decisions include
determining a channel of
distribution.
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The Marketing Mix—The Four Ps
P
Decisions
involve the goods, services, or ideas used to
satisfy consumer needs.
P
Decisions
involve the exchange process between the
customer and the seller.
P
Decisions
involve making the product available to the
customer.
P
Decisions
involve how the goods or services are
communicated to the consumer.
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Buzz Power
“Word-of-mouth ramped up to warp
Operating an e-tail business
andefinition
electronicofchannel—the
speed” ison
one
Internet buzz,
Web—can be costly,says
due BusinessWeek.
to design, delivery,
returns,
and
It’s the
marketing
operating expenses.
by-product of e-mail, instant messaging,
boards,
and chat
rooms.
Though Many largerbulletin
dot-com
companies
crashed
in the
The
influence
buzz is
soHarris
powerful
that researchers
monitor
1990’s,
smallofstores
like
Cyclery
of West Newton,
consumer
opinionsactually
online. increase
Positive buzz
increase
Massachusetts,
salescan
using
a basicprofits
Web
forsite.
products,
TV, music,
and
fashion,rides
and in on
Today,books,
a thirdfilms,
of Harris’s
bicycle
business
the Web popularity
to get hard-to-find
parts
personalWith
service.
determine
of athletes
andand
celebrities.
public
resistance to banner ads and pop-ups, a little buzz “zooms”
Describe
a long
way. an e-business’s home page to your class after
viewing one through marketingseries.glencoe.com.
12
Discuss with a partner
1.
Define marketing and the marketing
concept.
2.
Explain the concept of a market.
3.
What is the marketing mix and what is its
relationship to a target market?
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Economic Basics
The economics of
marketing sports and
entertainment have a great
impact globally as well as
locally.
Economics:
A measure of economic
growth is the gross
domestic product (GDP).
GDP:
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Economic Basics
Profit allows companies to
stay in business.
As with most businesses,
there is a financial risk
involved with sports and
entertainment events.
Profit:
Competition:
Competition is the basis of
the free enterprise system.
15
Property Ownership and
Intellectual Property Rights
Inherent in the free
enterprise system is the right
to own property and start a
business.
Copyright:
Intellectual property rights
are protected by the
following:
Copyrights
Patents
Trademarks
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Types of Business
Ownership
Types of business ownership include:
S
P
C
S
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Economic Impact
Locations 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.
18
Discuss with a partner
1.
Explain the concept of economics.
2.
What are three characteristics of a free
enterprise system?
3.
What is the economic impact of sports and
entertainment events on a community?
19
Discuss with a partner
1. Define and give an example of the term
marketing.
2. Explain the marketing concept.
3. Describe the concept of demographics.
4. Explain the marketing mix.
continued
20
Discuss with a partner
5. Explain the concept of economics.
6. Name four types of business ownership.
7. Define intellectual property rights.
continued
21
Checking Concepts
Critical Thinking
8. Describe how sports and entertainment
impact national and local economies.
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End of