Download Explain Marketing

Sports and Entertainment
Marketing
2.01
Explain the
concept of
marketing.
Marketing
The process of developing,
promoting, pricing and distributing
products in order to satisfy
customers’ needs and wants.
Marketing involves all the activities
necessary in getting a product from
the producer to the consumer.
Marketing Concept
Businesses become successful by
directing all of their efforts to
satisfying the needs and wants of the
customers.
Businesses make a profit by offering
the goods and services that the
consumer wants.
Recognizes the importance of the
consumer in the buying process.
The Seven Functions of
Marketing
1.Marketing Information
Management
2.Product/Service Management
3.Financing
4.Pricing
5.Promotion
6.Selling
7.Distribution
Marketing-Information
Management
Obtaining information needed
to make sound business
decisions. Example: Taste tests
and surveys.
Product/Service Management
Concepts and
procedures
necessary to
obtain, develop,
maintain, and
improve a product
or service mix in
response to
market
opportunities.
A. Risk Management:
preventing or
reducing business
loss.
B. Purchasing:
Buying goods and
services for use in
the day-to-day about
where a product is
sold.
Financing
Obtaining money needed to finance
the operation of a business. This
includes bank loans and offering
credit to customers.
Pricing
Determining a value to charge for
goods and services. It is important
to consider competition and what
consumers are willing and able to
pay.
Promotion
Communication used to inform or
remind people about a business’s
products. Promotion also involves
persuading customers to purchase a
product.
Your AD here!
Selling
Determining customer needs and
wants through planned, personalized
communication intended to influence
purchase decisions and ensure
satisfaction.
Distribution
The transporting, storing and handling
of goods on their way from the
manufacturer to the consumer. This
includes the decisions about where
to sell a product.
Activity 1
Select a sport or entertainment
product or service.
– (Refer to 1.02 Notes if you need help
finding a product or service)
– On your sheet of paper:
List your product/service at the top
List the seven marketing functions
(previously discussed) as they relate to
YOUR product/service.
Activity 1 Example
Literacy Industry – Oprah’s Book Club
1.Marketing Information Management
– Survey members to see what books they would
like to see on my list or survey to see what my
members think of certain books on the list.
2.Product/Service Management
– Offering books available online (digital books) to
keep up with consumer demand. Anything to
reduce risk (loss) or that goes into the production
of the good or service offered.
3.Financing
– Allowing customers to purchase books
online/catalog by using a credit card. Don’t
necessarily need a loan to keep this business
going because it is self-supportive.
Activity 1 Example (continued…)
4.Pricing
– Charge competitive prices for the books and reasonable
prices for shipping and handling.
5.Promotion
– Promote the book club and the books on my show
(OPRAH) – once a week promote a certain book.
Promote in my magazine “O” and on my television
channel “Oxygen”.
6.Selling
– Sell items online and through a catalog. If the customer
wishes, they may call and talk to a sales representative
(especially if they need more help).
7.Distribution
– Items will be sold online and through a catalog. The
items that are featured in my book club will be stocked
in a warehouse and shipped out from there to the
customer’s shipping address.
The Four P’s of Marketing
The marketing mix, known
as the four P’s, is a
combination of decisions a
business must make in
order to best reach its
target market
PRODUCT
The goods and services a business
will offer to its customers
– A. Choice of product: Will the business
offer a variety of products?
– B. Packaging: Does the packaging
protect the product and provide
necessary information about the
product?
PRODUCT continued . . .
– C. Level of quality: What level of
quality will the business ensure?
– D. Brand name: What brand name
products will the business offer?
– E. Warranty: Will the business offer a
warranty to its customers to ensure
satisfaction?
PRICE
The amount a business charges
customers for their products
– A. Price setting. Price will be set based
on product demand, cost, and
competitors’ actions.
– B. Terms. Will the company only
accept cash? Will the company extend
credit? What type of credit will the
company extend?
PRICE continued . . .
– Discounts. Will the business offer
discounts to employees? Locals? Will
the business discount merchandise at
certain times of the year?
PLACE (distribution)
Making products available at the
right time and location.
– A. Channels of Distribution: the path a
product takes to get from the producer
to the consumer
– B. What specific stores will offer the
products? (wholesaler, retailer,
department, discount, etc.)
PLACE continued . . .
– C. What method of transportation will
be used to get the product from the
producer to the consumer? (truck,
train, place, boat, pipeline)
– D. How will inventory be handled and
controlled? (methods- physical,
storing, checking, or receiving)
PROMOTION
Informing, reminding, and
persuading customers of the goods
and services available to them.
– A. What will the message be?
– B. When will the message be delivered?
PROMOTION continued . . .
– C. Where will the message be delivered?
– D. What inducements will be used to
encourage customers to purchase the
product?
– E. How will the message be delivered?
Activity 2
You are to go online and find a product or service
that is related to sports or entertainment.
Answer the questions pertaining to Product,
Place, Price and Promotion to the BEST of your
ability as they apply to your product or service.
– The questions can be found on the 8 previous slides.
– You may be able to find some answers online about your
product.
You may work with a partner to answer these
questions.
– Work quietly and stay on-task or this can become an
individual assignment.
If you can remember the 4 P’s…
1.
2.
3.
4.
The 4 P’s of
Marketing
Product
Place
Price
Promotion
Then all you need
to add to that list is
1.
2.
3.
4.
5.
6.
7.
The 7 Marketing
Functions
Product/Service
Management
Distribution (Place)
Price
Promotion
Financing
Selling
Marketing
Information
Management
And you will know the 7 Functions!!!
Review
Concepts and procedures necessary
to obtain, develop, maintain, and
improve a product or service mix in
response to market opportunities is
part of ____________________.
The element of the marketing mix
that includes decisions about
warranties, packaging and the level
of quality is the _______________.
Review
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