2 Sports and Entertainment Marketing Class Mr Sherpinsky

2 Sports and Entertainment Marketing Class Mr. Sherpinsky Council Rock School District Putting The Customer First 4 e

Section 2. 1 Essential Question What is the marketing concept for sports and entertainment events? Goals Explain the central focus of the marketing concept. the reasons for increased sports and entertainment options.

Winning Strategies Making an Impact after a 12 Year Absence Think critically page 33 Question: Why is the entertainment industry turning to social media to kick off marketing campaigns? Question: What can be learned from the marketing campaign used for “The Muppets. ”

Key Terms Marketing concept Productivity Breakeven point Opportunity cost

Opening Act 2. 1 Cooperative Learning Think of a cross promotional campaign you’ve seen. Who was the target?

The Marketing Concept Marketing is an important business function. You are the major part of the process ▪ A business that focuses on addressing customer needs is following the marketing concept

The Marketing Concept Marketing accounts for about half of every dollar you spend. Marketing costs include product development, packaging, advertising, and sales expenses

The Marketing Concept MOST important aspect of Marketing is The satisfying customer needs. When a business focuses on the customer’s need it is said to be following the Marketing Concept.

Maintain Relationships Successful customer relationships are critical to the marketing concept. Customers are unique. Know who you are dealing with. Customer satisfaction is the bottom line for successful marketing relationships.

Customer Focus productivity rate at which companies produce goods or services in relation to the amount of materials and number of employees utilized

Customer Focus Productivity: Needs can be met faster than ever before This means satisfying relationships are paramount! Developing products that exceed user expectation results in repeat users Earning profits

Weekend Entertainment Choices Numerous Choices Every weekend there are numerous entertainment choices for consumer dollars Sports vs. Entertainment Options Tournaments and housing Movies vs. Netflix, Redbox, Hulu Satellite vs. cable Pay-for-view vs. HD TV

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

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.

Video: Opportunity Cost Business POV Student POV

Opportunity Cost: Worksheet Fixed and Variable Cost Analysis Worksheet Three GUYS PIZZA Emporium Review Concepts ▪ Answer Questions ▪ Calculate Costs (fixed & variable) ▪ Calculate Breakeven Point ▪ Fixed Cost/Contribution Margin= BE Point in Units ▪ Contribution Margin = Sale Price – Variable cost ▪ Contribution Margin means Profit

Opportunity Cost: Worksheet Fixed and Variable Cost Analysis Worksheet EAGLES Stadium Ice Cream Vendor Review Concept ▪ Answer Questions ▪ Calculate Costs (fixed & variable) ▪ Calculate Breakeven Point ▪ Fixed Cost/Contribution Margin=BE Point in Units ▪ Contribution Margin = Sale Price – Variable cost ▪ Contribution Margin means Profit

Encore 2. 1: Page 38 On a piece of paper Answer Questions 1 -4 on page 38 ▪ Be complete!

Lesson 2. 2 Discover What People Want Essential Question: �Why must sports and entertainment venues conduct research to keep repeat customers? 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.

Terms economic market benefits derived comparative advantage emotional purchases rational purchases patronage purchases

Opening Act 2. 2, Page 39 Cooperative Learning Partners: ▪ You need a Sponsor? ▪ Where would you look? ▪ How would you connect your mission with their interests, drive, and money? ▪ What would you say specifically?

Understand Buyer Behavior economic market all of the consumers who will purchase a product or service

Consumer Spending Habits benefits derived the value people believe they receive from a product or service

Consumer Spending Habits ncomparative advantage the capability to produce products or services more efficiently and economically than the competition

Consumer Wants and Needs hierarchy of needs identifies five human areas of needs

Consumer Wants and Needs

Buyer Motives nemotional purchases spending with little thought during emotional times

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

Buyer Motives n patronage purchases based on loyalty to a particular brand or product

Potential Buyers Online Stores: Data Measurements ▪ Shopping cart abandoners ▪ People who start to make an online purchase, but leave the website without completing their purchases Can be seen as lost sales Generally provides an opportunity Reminder emails lead to more sales

What is meant by benefits derived? The value that people believe they receive from buying a product or service

Think Critically! What forms of entertainment will continue to grow due to an increase in fuel costs and other current trends? Online, On-Demand, and other Home Media forms of entertainment

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

Gather Information n The decision-making process involves the following steps. recognize a need or a want conduct product research evaluate choices decide what to purchase evaluate the product after the purchase

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

Information Needed for Marketing Decisions n The business environment impacts consumer spending as follows: economic uncertainty reduces consumer spending marketplace competition provides consumers with choices technological advances have impacted how consumers research and buy products

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

Types of Information for Businesses n primary data obtained for the first time and specifically for the particular problem or issue being studied n secondary data information previously collected for another purpose but is now found useful in the current study

Types of Information for Businesses n primary data and secondary data

Explain the difference between primary and secondary data.

Class Activity: Census. Gov Complete Census Worksheet for Market Information Tell me something I want to now about where you live! ▪ EXTRA CREDIT: Name a business that can benefit from your demographics of the place where you live…

Class Discussions: What kinds of business can use the www. census. gov data? Children related business Restaurants-Food related vendors Senior Living assisted home Income level products ▪ Wal-Mart? ▪ Tiffany’s? ▪ Car dealerships?

Encore 2. 2: Page 45 On a piece of paper Answer Questions 1 -4 on page 45 Be complete!

Lesson 2. 3 Target Markets Essential Question: �How do target markets and market segments affect a business’s marketing efforts? Goals Define target market and market segment. Describe how businesses use market segmentation.

Terms target market segment market share mass marketing

Opening Act 2. 3, Page 46 Cooperative Learning Partners: ▪ College Sport programs? Think of a successful merchandise sales operation… ▪ What sport(s) at this university have contributed to sales? ▪ Do you think the logo or mascot for your chosen school has an effect on the popularity of their merchandise?

DETERMINE THE TARGET MARKET target market specific group of consumers you want to reach

Focus Marketing Efforts market segment a group of consumers within a larger market who share one or more characteristics consumers can belong to multiple market segments. marketers must identify the market segment to which they want to sell.

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

Mass Market Mass Market: An attempt to appeal to a large, general group of consumers Different from market segmentation Whole focus, not specific piece or segment Often used when research and analysis is too costly or time consuming

What is a target market? Provide an example of a company using target marketing

Market Segmentation Markets may be segmented in many ways. 1. 2. 3. 4. geographic location demographics psychographics behavior

Geographic Segmentation divides markets into physical locations North vs. South East vs. West Urban vs. Rural Commonly used in travel and tourism

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

Demographic Segmentation

Psychographics Segmentation characteristics measured that cannot be physically values interests lifestyle choices Sports fans buy clothing with favorite team logo

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

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

List and describe four (4) types of market segmentation.

List and describe four (4) types of market segmentation. Geographic Demographic Psychographic Behavioral-based

Lesson 2. 4 Customer Service Goals Explain the importance of outstanding customer service. Explain what it means to establish a service culture.

Terms customer service gap values-based culture

Opening Act: Bad Customer Service, page 52 Describe the last time you had a bad customer service experience What happened? ▪ What do you do about it?

Video: Bad Customer Service King Burger

Outstanding Service Equals Success Business success depends on excellent customer service. Customer relationships should continue after the sale of goods and services.

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.

Training Programs 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.

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

Demonstrate values-based Communicates value through high performance and excellent customer service Passion results in energy Interests in what U Do Passion energizes people Demonstrate pride We help people! Value long-term relationships

Creating a Service Culture ZAPPOS. com Online shoe store has effective customer service principles. They are: Demonstrate a values-based culture that is rooted in high performance and excellent customer service.

Creating a Service Culture Follow the “FAST” q (Focus, Action, Search, Tenacity) strategy. Ø Passion results in energy. Ø Demonstrate pride in every sale. Ø Remember the value of long-term positive relationships.

How May I Help You? Common error: Saying “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

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

Take a Bow Challenge, pg. 56 Adidas: End of Section Question: ▪ What role do you think marketing played in the success of Adidas?

Review: Encore Challenge: Page 57 - 1 -4 Questions Due at end of class!

Chapter Challenges: page 58 Complete End of Chapter: ▪ End of Section Questions 1 -16 ▪ Review concepts: 17 -23 ▪ Make Connections: 29 -32

Questions? ? ?

Review: Encore QUIA EXAM is Monday! Be ready! Notes Allowed!