Sports and Entertainment Marketing © Thomson/South-Western Do Now Define marketing. What is the...

Sports and Entertainment Marketing© Thomson/South-Western

Do Now

Define marketing. What is the most important aspect of

marketing?

Chapter 4Slide 1


Chapter Chapter Chapter Chapter

Hit a Home Run with Customers 4.1 The Marketing Concept 4.1 The Marketing Concept

4.2 Discover What People Want 4.2 Discover What People Want

4.3 Target Markets4.3 Target Markets

4.4 Customer Service4.4 Customer Service

4


Chapter 4Slide 3

Lesson 4.1

The Marketing Concept

Goals Explain the central focus of the

marketing concept. Explain the reasons for increased

sports and entertainment options.


Chapter 4Slide 4

THE MARKETING CONCEPT marketing concept

keeping the focus on the customer’s needs for a product or service

About half of every consumer dollar spent pays for marketing costs.

Satisfying customer needs is the most important aspect of marketing.


Chapter 4Slide 5

Maintain Relationships Successful customer relationships are

critical to the marketing concept. Customer satisfaction is the bottom line

for maintaining successful marketing relationships.


Chapter 4Slide 6

What is the most important aspect of marketing?


Chapter 4Slide 7

INCREASED SPORTS AND ENTERTAINMENT OPTIONS U.S. citizens have more discretionary

income than in the past. drives up demand for sports and

entertainment increases competition


Chapter 4Slide 8

Customer Focus

productivity rate at which companies produce goods or

services in relation to the amount of materials and number of employees utilized


Chapter 4Slide 9

identify customer needs location

provide products perceived as superior maintain successful customer relationships offer the appropriate marketing mix

product price promotion location

successful marketing strategy


Chapter 4Slide 10

Weekend Entertainment Choices breakeven point

the minimum sales and attendance required to cover all of the expenses of organizing, planning and promoting the event

profit revenue earned beyond the breakeven

point


Chapter 4Slide 11

Opportunity Cost

opportunity cost the value of the next best alternative that

you forgo when making a choice The value is measured in terms of the

benefits that you are giving up.


Chapter 4Slide 12

List expenses of a planned entertainment event along with the planned ticket prices. Create Excel spreadsheet to identify the

breakeven point in dollars & attendees. How can we ensure revenues exceed the

breakeven point?


Chapter 4Slide 13

Lesson 4.2

Discover What People Want

Goals Explain the importance of understanding

buyer behavior when making marketing decisions.

List and describe means of collecting marketing information for use in decision making.


Chapter 4Slide 14

UNDERSTAND BUYER BEHAVIOR economic market

all of the consumers who will purchase a product or service

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Chapter 4Slide 15

Consumer Spending Habits

benefits derived the value people believe they receive from

a product or service


Chapter 4Slide 16

the capability to produce products or services more efficiently and economically than the competition

comparative advantage


Chapter 4Slide 17

Consumer Wants and Needs

hierarchy of needs identifies five human areas of needs

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Chapter 4Slide 18


Chapter 4Slide 19

spending with little thought during emotional times

rational purchases define wants and needs assess priorities and budget conduct research compare alternatives make a well thought out purchase

emotional purchases


Chapter 4Slide 20

based on loyalty to a particular brand or product

patronage purchases


Chapter 4Slide 21

What is meant by benefits derived?


Chapter 4Slide 22

GATHER INFORMATION

Marketers are often involved in every step of the decision-making process.

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Chapter 4Slide 23

recognize a need or a want conduct product research evaluate choices decide what to purchase evaluate the product after the purchase

The decision-making process involves the following steps.


Chapter 4Slide 24

Information Needed for Marketing Decisions Information about consumers that is

important to consider include demographics shopping behaviors how consumers spend money product and brand preferences frequency of purchases


Chapter 4Slide 25

economic uncertainty reduces consumer spending

marketplace competition provides consumers with choices

technological advances have impacted how consumers research and buy products

The business environment impacts consumer spending as follows:


Chapter 4Slide 26

Sources of Information for Businesses internal sources

a business’s own customer records, sales records, production records, and operation records

external sources government reports, trade and

professional organizations, business publications, commercial data, and information services


Chapter 4Slide 27

obtained for the first time and specifically for the particular problem or issue being studied

secondary data information previously collected for

another purpose but is now found useful in the current study

primary data


Homework

Explain the decision-making process when buying a car in paragraph form.Be sure to include:

How did you settle on the kind of car you are going to purchase?

What did you take into consideration when making this decision?

Chapter 4Slide 28


Chapter 4Slide 29

Lesson 4.3

Target Markets

Goals Define target market and market

segment. Describe how businesses use market

segmentation.


Chapter 4Slide 30

DETERMINE THE TARGET MARKET target market

specific group of consumers you want to reach

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Chapter 4Slide 31

Focus Marketing Efforts

market segment a group of consumers within a larger

market who share one or more characteristics

Consumers belong to multiple market segments.

Marketers must identify the market segment to which they want to sell.


Chapter 4Slide 32

Meet Target Market Needs

Market segmentation data can improve business decision making. number of potential customers customer income level level of interest in product or service


Chapter 4Slide 33

What is a target market? Provide an example of a company’s target market.


Chapter 4Slide 34

MARKET SEGMENTATION Markets may be segmented in many ways.

geographic location demographics psychographics behavior

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Chapter 4Slide 35

Geographic Segmentation

divides markets into physical locations


Chapter 4Slide 36

Demographic Segmentation

information that can be measured age income profession gender education marital status household size


Chapter 4Slide 37

Psychographics Segmentation

characteristics that cannot be physically measured values interests lifestyle choices


Chapter 4Slide 38

Behavioral-Based Segmentation

behavioral-based segmentation focuses on a customer’s attitude toward products

and services

product usage what products you use and how often

product benefits the positive experiences or associations people

derive from using a product or service


Chapter 4Slide 39

Capture a Market Share

market share percentage of total sales of a product or

service that a company expects to capture in relation to its competitors


Chapter 4Slide 40

List and describe four types of market segmentation.


Chapter 4Slide 41

Lesson 4.4

Customer Service

Goals Explain the importance of outstanding

customer service. Explain what it means to establish a

service culture.


Chapter 4Slide 42

Terms customer service gap values-based culture


Chapter 4Slide 43

OUTSTANDING SERVICE EQUALS SUCCESS Business success depends on excellent

customer service. Customer relationships should continue

after the sale of goods and services.


Chapter 4Slide 44

A Track Record for Great Customer Service customer service gap

the difference between customer expectations and the services actually received

Customers are likely to tell at least 10 people about their poor customer service experiences.


Chapter 4Slide 45

Training Programs That Make an Impact Individuals hired for customer service

positions should have a positive attitude and look forward to meeting the public.

Proper employee training in proactive, efficient and courteous customer service is critical to providing a pleasant experience for customers.


Chapter 4Slide 46

Why is outstanding customer service critical to a business in a highly competitive marketplace?


Chapter 4Slide 47

CREATING A SERVICE CULTURE Gallery Furniture has effective customer

service principles. They are: Demonstrate a values-based culture that is

rooted in high performance and excellent customer service.


Chapter 4Slide 48

Passion results in energy. Demonstrate pride in every sale. Remember the value of long-term positive

relationships.

Follow the “FAST” (Focus, Action, Search, Tenacity) strategy.


Chapter 4Slide 49

How May I Help You?

“It’s not my department” should be replaced with “How may I help you?”

mystery guest hired by an outside firm to have an

individual assess the performance of a business feedback on the individual’s experience as a

customer is provided to the hiring business


Chapter 4Slide 50

Explain what it means to have a values-based culture.


Chapter 4Slide 51

PERFORMANCE INDICATORS EVALUATED Communicate ideas clearly to the judge

(potential investor). Analyze all relevant data for proposing a

new celebrity-theme restaurant.


Chapter 4Slide 52

Interpret demographics and financial data for a proposed business.

Understand consumer demand and the existing competition.

Demonstrate critical thinking and problem-solving skills necessary to propose and operate a successful business.


Chapter 4Slide 53

THINK CRITICALLY

1. Why is a business plan necessary for a popular celebrity who wants to open a restaurant in a city where he or she is well liked?

2. Give three examples of successful celebrity-theme restaurants and what makes them popular.


Chapter 4Slide 54

4. What advantage does a professional athlete have over an average citizen when opening a restaurant?

3. What would be a good grand opening event to attract the maximum amount of attention to the new restaurant?

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