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 Marketing1.Marketing Information Management2.Product/Service Management3.Financing4.Pricing5.Promotion6.Selling7.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. Promotion innovations

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.

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?