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OBJECTIVE 4.01 Explain selling. 1. Selling is the exchange of goods and services from producers to consumers for a price. a. Businesses and sponsors might purchase incentives, media time, naming rights, pre-/post-game entertainment, signage, tickets (group or season), and products designed for the corporations’ target market. b. Fans might purchase food and beverages, merchandise, pre-/post-game entertainment, and tickets (group or season). c. Sales of sponsored products should increase as a result of advertising at an event. d. Sponsors pay a rights fee for media time to a sports or entertainment organization for the opportunity to provide broadcasts. 2. Data-based marketing involves the collection of information about past, current, and potential consumers. In sports marketing, a database is needed to generate leads or sources of new customers. One common way to generate leads is through telemarketing. Telemarketing is communicating with customers via the telephone. For example, sales representatives from Nike call customers who recently purchased the new Jordan shoes to offer them a second pair at a 25% discount. In some cases, consumers will call in response to a promotional campaign. 3. Personal selling is a two-way communication between a representative of the company and the customer. For example, a sales associate at the Carolina Hurricanes team store, The Eye, selling an authentic team jersey to a fan. 4. B2B (business to business) selling takes place in a manufacturer’s or wholesaler’s showroom (inside sales) or a customer’s place of business (outside sales). For example, GoodYear Tire Corporation making a sales presentation at Hendrick MotorSports. 5. Direct mail is personal and received in the mailbox. Direct mail is used to initiate the sales process. For example, the Carolina Panthers mail information introducing their new Fan Rewards program. 6. www/Internet selling is selling executed using the Internet. For example, a Monsters, Inc. fan purchasing the DVD, or a customer purchasing stuffed toys from www.disney.com. B. Recognize the importance of selling. 1. Customer vs. consumer. a. The customer is the person who buys the product or service. b. The consumer is the person who uses the product or service. c. As an example, the gift Mary selected for her husband’s 40th birthday was season tickets to the Carolina Hurricanes. Mary purchased two tickets so her husband could take a friend. Mary is the customer, while her husband and his friend are the consumers. 2. Need vs. want. a. A need is anything necessary or required to live. For example, we all need food to survive. Sports and Entertainment Marketing I Summer 2003 55 b. A want is an unfulfilled desire. For example, tickets to a Carolina Panthers football game. c. It is crucial that sports and entertainment businesses help customers recognize the value of the products. 3. Selling helps customers make informed buying decisions, which results in customer satisfaction and repeat business. 4. Full-menu marketing is having products or services that meet virtually any customer’s needs and/or wants. C. Explain feature-benefit selling. 1. Product features are the basic, physical, and extended characteristics of an item. For example, purchasing front row seats at the Emmy Awards. 2. Feature-benefit selling is matching the characteristics of a product to a customer’s needs and wants. For example, a company leases a suite at the Emmy Awards to host their preferred clientele. 3. Customer benefits are the advantages or personal satisfaction a customer will get from a good or service. For example, the benefit of being on the front row at the Emmy Awards results in better viewing of the awards and presentations. D. Discuss customer buying motives and decision making. 1. Buying motives are the motives for customers to purchase a product. a. Rational motives are based on conscious, logical thinking and decision making. Product dependability, time or monetary savings, quality, and price are rational motives for buying or purchasing a product or service. For example, a mother purchases lawn seats for a Britney Spears concert instead of the more expensive stadium seats. b. Emotional motives are based on feelings. Social approval, recognition, power, love, and prestige are emotional motives for buying or purchasing a product. For example, a parent camping out overnight to get front row seats to the JayZ concert for her daughter’s 13th birthday. c. Patronage motives are based on loyalty. Low prices, high quality, friendly staff, great customer service, merchandise assortment, and/or convenience of location are patronage motives for buying or purchasing a product. For example, Alyssa only purchases her son’s cross country shoes at the Run for Your Life athletic shoe store because of their excellent customer service and close proximity to her home. Sports and Entertainment Marketing I Summer 2003 56 2. Customers go through a decision-making process in order to determine what products they will buy. a. Extensive decision-making occurs when there is a high level of perceived risk, a product or service is very expensive or has a high value to the customer. A customer will conduct research and evaluate product alternatives before making a decision. For example, the Buffalo Bills equipment manager decides whether equipment should be purchased from All-star Athletics or Winners Incorporated. b. Limited decision making occurs when a customer buys products that he or she has purchased before but not regularly. The Carolina Little League Team decides whether to advertise in the local paper this season or continue with the same billboard ad they had last year. c. Routine decision making occurs when little information is needed about the product being purchased. For example, the Mountainview High School baseball coach always purchases the teams chewing gum from the local wholesale store. E. Identify the activities taking place during the preapproach. 1. Product information. a. Knowing how to use and care for a product is essential when educating consumers and demonstrating a product. For example, demonstrating to a customer the proper way to oil a baseball glove. b. Four sources of product information are direct experience, written publications, other people, and formal training. For example, Debbi is a sales associate for Foot Locker. She attends an Adidas clinic on the proper way to fit children for shoes. 2. Reviewing current trade periodicals is crucial to staying abreast of current trends and industry information. For example, the sales manager for the Carolina Hurricanes subscribes to Street & Smith’s SportsBusiness Journal. 3. Sources and methods of prospecting. A prospect is a potential customer. Employer leads, telephone directories, trade and professional directories, commercial lists, customer referrals and cold canvassing are examples of prospects. For example, the Miami Heat purchases the mailing list of the top 50 Fortune 500 companies. Sports and Entertainment Marketing I Summer 2003 57