Sports, Entertainment, Sports, Entertainment, and Recreational and Recreational

MarketingMarketing

Chapter 1 World of MarketingChapter 1 World of Marketing

Section 1.1 What is Marketing?Section 1.1 What is Marketing?

ObjectivesObjectives Define marketingDefine marketing Explain the marketing conceptExplain the marketing concept Define demographicsDefine demographics Explain the marketing mixExplain the marketing mix Explain economics and free enterpriseExplain economics and free enterprise Identify intellectual property rightsIdentify intellectual property rights Explain the different types of business Explain the different types of business

ownershipownership Explain the economic impact of sports and Explain the economic impact of sports and

entertainmententertainment

The Importance of Sports and The Importance of Sports and Entertainment MarketingEntertainment Marketing

Today more than any time in history, Today more than any time in history, the sports, and entertainment the sports, and entertainment industries have become the two most industries have become the two most profitable industries in the United profitable industries in the United States.States.

Some examples are ____________.Some examples are ____________.

Marketing DefinedMarketing Defined

Marketing is defined as the process of Marketing is defined as the process of developing, promoting, and distributing developing, promoting, and distributing products, or goods and services, to satisfy products, or goods and services, to satisfy customers’ needs and wants.customers’ needs and wants.

Goods are “tangible” products, such as Goods are “tangible” products, such as sports equipment.sports equipment.

Services are “intangible” products such as Services are “intangible” products such as sports/theater tickets, sports clinics…sports/theater tickets, sports clinics…

The Marketing ProcessThe Marketing Process

““Developing” products involves studying Developing” products involves studying consumers to determine what they want, consumers to determine what they want, and then designing the products that will and then designing the products that will satisfy their needs and wants.satisfy their needs and wants.

Needs are ___________.Needs are ___________. Wants are ___________.Wants are ___________. ““Promotional activities” help to educate Promotional activities” help to educate

consumers, create interest and desire, consumers, create interest and desire, make a sale, and create an image for the make a sale, and create an image for the company and its products.company and its products.

SlogansSlogans

Name the following companies based Name the following companies based on their slogans:on their slogans:

““Just Do It” ______________Just Do It” ______________

““I’m Loving It” ____________I’m Loving It” ____________

““The Breakfast of Champions_______The Breakfast of Champions_______

Now, name some others.Now, name some others.

DistributionDistribution

Distribution is the means of getting the Distribution is the means of getting the product into the hands of the customer.product into the hands of the customer.

Some companies sell their products Some companies sell their products directly to the customer via direct-directly to the customer via direct-marketing (direct mail, internet, phone).marketing (direct mail, internet, phone).

Others us “wholesalers” and “retailers” to Others us “wholesalers” and “retailers” to distribute their products.distribute their products.

The Marketing ConceptThe Marketing Concept

The The marketing concept marketing concept is the idea is the idea that organizations need to satisfy that organizations need to satisfy their customers while also trying to their customers while also trying to reach their organizations’ goals. reach their organizations’ goals.

To be profitable, businesses must To be profitable, businesses must focus on customers’ wants and focus on customers’ wants and needs.needs.

The MarketThe Market

A A market market consists of potential consists of potential customers with shared needs who customers with shared needs who have the desire and ability to buy a have the desire and ability to buy a product.product.

NeedsNeeds

Needs are basic necessities such as Needs are basic necessities such as food, clothing, and shelter.food, clothing, and shelter.

WantsWants

Wants are things that people desire Wants are things that people desire based on personality, experiences, or based on personality, experiences, or information about a product.information about a product.

Examples are _______________.Examples are _______________.

Target MarketTarget Market

A target market is a specific group of A target market is a specific group of consumers that an organization consumers that an organization selects as the focus of its marketing selects as the focus of its marketing plan.plan.

An example would be ___________.An example would be ___________.

DemographicsDemographics

Demographics are statistics that Demographics are statistics that describe a population in terms of describe a population in terms of personal characteristics.personal characteristics.

Demographic CategoriesDemographic Categories

AgeAge IncomeIncome OccupationOccupation GenderGender EthnicityEthnicity Educational LevelEducational Level

The Marketing MixThe Marketing Mix

The The marketing mix marketing mix is a is a combination of four basic marketing combination of four basic marketing strategies – the strategies – the 4 p’s 4 p’s – – product, product, price, place, and promotionprice, place, and promotion..

Product DecisionsProduct Decisions

Designing, naming, and packaging Designing, naming, and packaging are extremely important decisions.are extremely important decisions.

Why? _____________?Why? _____________? Examples are _____________?Examples are _____________?

Price DecisionsPrice Decisions

Price influences customers’ buying Price influences customers’ buying decisions.decisions.

The cost of making or buying a product for The cost of making or buying a product for resale is one factor in determining the resale is one factor in determining the price to charge customers.price to charge customers.

Other factors include expenses related to Other factors include expenses related to marketing the product, competition, and marketing the product, competition, and what the customer is willing to pay.what the customer is willing to pay.

Place DecisionsPlace Decisions

Place decisions involve making the Place decisions involve making the product available to the customer.product available to the customer.

Marketers must determine how and where Marketers must determine how and where their target market shops.their target market shops.

Channel of distribution Channel of distribution is the path a is the path a product takes from the producer to the product takes from the producer to the consumer. Ex.: Nike has a website where consumer. Ex.: Nike has a website where you can purchase their products, or you can purchase their products, or consumers can go to retail stores like Foot consumers can go to retail stores like Foot Locker or Sports Authority.Locker or Sports Authority.

Promotion DecisionsPromotion Decisions

Promotion decisions involve how the Promotion decisions involve how the goods or services are communicated goods or services are communicated to the consumer. to the consumer.

Promotions may use any combination Promotions may use any combination of advertising, sales promotion, of advertising, sales promotion, publicity, and personal selling. An publicity, and personal selling. An example of each would be _______.example of each would be _______.

Section 1.2 Economics of Section 1.2 Economics of MarketingMarketing

Economic BasicsEconomic Basics

The marketing decisions and plans made The marketing decisions and plans made by sports and entertainment businesses by sports and entertainment businesses help determine profits from their products, help determine profits from their products, or goods and services.or goods and services.

Economics Economics is the study of the choices and is the study of the choices and decisions that affect making, distributing, decisions that affect making, distributing, and using goods and services. Ex.: and using goods and services. Ex.: Making a choice between buying a ticket Making a choice between buying a ticket for a sporting event, or a movie.for a sporting event, or a movie.

Gross Domestic Product (GDP)Gross Domestic Product (GDP)

GDP is the value of all goods and GDP is the value of all goods and services produced within the country.services produced within the country.

In a In a free enterprise systemfree enterprise system profit profit is a business’s motivation.is a business’s motivation.

ProfitProfit

Profit Profit is the money left after all is the money left after all costs and expenses of a business are costs and expenses of a business are paid.paid.

RiskRisk

Risk – sports and entertainment Risk – sports and entertainment companies take financial risks when companies take financial risks when holding events. Some examples of holding events. Some examples of these risks are ___________.these risks are ___________.

CompetitionCompetition

Competition is the struggle among Competition is the struggle among companies for customers.companies for customers.

Price CompetitionPrice Competition

Demand Demand is the customers’ desire to is the customers’ desire to buy products.buy products.

Supply Supply is all the products available is all the products available for sale.for sale.

Give an example of a product with Give an example of a product with high demand & low supply - _______high demand & low supply - _______

Give an example of a product with Give an example of a product with low demand & high supply - ______low demand & high supply - ______

Why?????Why?????

Non – Price CompetitionNon – Price Competition

Non price competition involves Non price competition involves factors other than price, such as factors other than price, such as quality, service, or image.quality, service, or image.

““When I was in business ….”When I was in business ….”

Property Ownership and Intellectual Property Ownership and Intellectual Property RightsProperty Rights

Property may include buildings, Property may include buildings, theaters, stadiums, and equipment theaters, stadiums, and equipment (all tangible goods), or may include (all tangible goods), or may include services (an intangible item).services (an intangible item).

Intellectual Property Rights – are Intellectual Property Rights – are intangible and are protected by intangible and are protected by patents, copyrights, patents, copyrights, and and trademarks.trademarks.

CopyrightsCopyrights

Copyright Copyright is the legal protection of is the legal protection of a creator’s intellectual property or a creator’s intellectual property or products. Books, films, video games, products. Books, films, video games, and music are copyrighted (for the and music are copyrighted (for the life of the author + 70 years).life of the author + 70 years).

Royalty – Royalty – payment for usage of payment for usage of copyrighted material.copyrighted material.

PatentsPatents

Patents Patents are granted for 20 years to are granted for 20 years to protect owners. protect owners.

The patented product cannot be used The patented product cannot be used without the inventor’s or owner’s without the inventor’s or owner’s permission.permission.

Patented inventions are protected Patented inventions are protected from others making, using, from others making, using, importing, selling, or offering for sale.importing, selling, or offering for sale.

TrademarksTrademarks

Trademarks Trademarks are words, names, are words, names, symbols, sounds, or colors that are symbols, sounds, or colors that are registered with the U.S. Patent and registered with the U.S. Patent and Trademark Office (USPTO).Trademark Office (USPTO).

Types of Business OwnershipTypes of Business Ownership

Sole ProprietorshipSole Proprietorship PartnershipPartnership CorporationCorporation Subchapter S CorporationSubchapter S Corporation

Sole ProprietorshipSole Proprietorship

Sole Proprietorship – Sole Proprietorship – one owner of one owner of a business.a business.

Advantages: 1) Complete control of Advantages: 1) Complete control of the business, 2) All profits belong to the business, 2) All profits belong to the ownerthe owner

Disadvantages: 1) Lack of capital Disadvantages: 1) Lack of capital resources ($), 2) Unlimited liability, resources ($), 2) Unlimited liability, 3) Owner’s time (hours worked)3) Owner’s time (hours worked)

PartnershipPartnership Partnership are where two or more people own a Partnership are where two or more people own a

business.business. Advantages: 1) Shared financial investment, 2) Advantages: 1) Shared financial investment, 2)

Shared expertiseShared expertise Disadvantages: 1) Unlimited liability, 2) Difficulty Disadvantages: 1) Unlimited liability, 2) Difficulty

in withdrawing in withdrawing ““My example __________.”My example __________.” Limited Partnership Limited Partnership – one general partner – one general partner

assumes unlimited liability, but there may be assumes unlimited liability, but there may be “silent partners.” Ex.: George Steinbrenner put “silent partners.” Ex.: George Steinbrenner put together a group of investors in 1973 to buy the together a group of investors in 1973 to buy the New York Yankees.New York Yankees.

CorporationCorporation

A A corporation corporation is a business entity is a business entity that has the ability to conduct that has the ability to conduct business and enter into contracts business and enter into contracts apart from its owner and owners.apart from its owner and owners.

A corporate charter is a license to do A corporate charter is a license to do business.business.

Elements of IncorporationElements of Incorporation

NameName Number of ShareholdersNumber of Shareholders Type of BusinessType of Business ProductsProducts Selling LocationSelling Location Members of the Board of DirectorsMembers of the Board of Directors

Subchapter S CorporationSubchapter S Corporation

Subchapter S Corporation Subchapter S Corporation – – follows gov’t regulations just like a follows gov’t regulations just like a corporation, but is taxed as a corporation, but is taxed as a partnership.partnership.

““My example…”My example…”

Economic ImpactEconomic Impact

Local Events – sports games, movies, Local Events – sports games, movies, concerts – provide jobs.concerts – provide jobs.

High School Events – generate High School Events – generate revenues for schools, and aid the revenues for schools, and aid the community.community.

AssignmentAssignment Chapter 1 World of MarketingChapter 1 World of Marketing The 4 P’s: Product, Price, Place, and PromotionThe 4 P’s: Product, Price, Place, and Promotion Choose a target market. Then create a basic Choose a target market. Then create a basic

marketing mix for a sports or entertainment marketing mix for a sports or entertainment product of your choice. Make your decisions and product of your choice. Make your decisions and write them. Add this page to your career write them. Add this page to your career portfolio.portfolio.

Target Market: ________________Target Market: ________________ 1) Sports or Entertainment 1) Sports or Entertainment

Product:______________________Product:______________________ 2) Price: _____________________2) Price: _____________________ 3) Place: _____________________3) Place: _____________________ 4) Promotion:__________________4) Promotion:__________________

Assignment – Checking ConceptsAssignment – Checking Concepts (100 points)(100 points) 1) Define “marketing” and give an example.1) Define “marketing” and give an example. 2) Explain the marketing concept.2) Explain the marketing concept. 3) Describe the concept of demographics.3) Describe the concept of demographics. 4) Explain the marketing mix.4) Explain the marketing mix. 5) Explain the concept of economics.5) Explain the concept of economics. 6) Name four types of business ownership.6) Name four types of business ownership. 7) Define Intellectual Property Rights.7) Define Intellectual Property Rights. Critical Thinking:Critical Thinking: 8) Describe how sports and entertainment affect national and local 8) Describe how sports and entertainment affect national and local

economies.economies. 9) Think of a movie or tv show that may have no promotional products. 9) Think of a movie or tv show that may have no promotional products.

What character from the show would make a good promotional toy? What character from the show would make a good promotional toy? Describe?Describe?

10) You work in an athletic shoe store. Teenagers come into the store but 10) You work in an athletic shoe store. Teenagers come into the store but do not buy. You believe the store needs to display products that teens do not buy. You believe the store needs to display products that teens prefer. What brand of shoes should you display? Why?prefer. What brand of shoes should you display? Why?

Checking Concepts/Critical Checking Concepts/Critical Thinking/Cross-Curriculum SkillsThinking/Cross-Curriculum Skills

(100 Total Points/10 Points Each)(100 Total Points/10 Points Each) 1) Define and give an example of the term marketing.1) Define and give an example of the term marketing. 2) Explain the marketing concept.2) Explain the marketing concept. 3) Describe the concept of demographics.3) Describe the concept of demographics. 4) Explain the marketing mix.4) Explain the marketing mix. 5) Explain the concept of economics.5) Explain the concept of economics. 6) Name four types of business ownership.6) Name four types of business ownership. 7) Define intellectual property rights.7) Define intellectual property rights. 8) Describe how sports and entertainment affect national and local 8) Describe how sports and entertainment affect national and local

economies.economies. 9) You work in an athletic shoe store. Teenagers come into the store but 9) You work in an athletic shoe store. Teenagers come into the store but

do not buy. You believe the store needs to display more products that do not buy. You believe the store needs to display more products that teens prefer. What brands of shoes would you choose to display? Why?teens prefer. What brands of shoes would you choose to display? Why?

10) Upon receiving your college degree in marketing, you aspire to start 10) Upon receiving your college degree in marketing, you aspire to start your own business. What business would you choose, and what would be your own business. What business would you choose, and what would be important in the preparation to open your business?important in the preparation to open your business?