Download Link to SEM Obj. 4.01 Notes

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