Unit 4 Marketing Applications Copyright 2010 by Sports

UNIT 4 OBJECTIVES Marketing Applications 1) Explain the marketing concept 2) Identify the components of the marketing mix 3) Understand the target market 4) Identify the five bases of segmentation 5) Illustrate the concept of positioning Copyright © 2010 by Sports Career Consulting, LLC

UNIT 4 OBJECTIVES Marketing Applications 6) Differentiate between customer and consumer 7) Explain the importance of market research 8) Identify specific forms of advertising and explain why businesses choose to advertise 9) Understand the concept of digital marketing Copyright © 2010 by Sports Career Consulting, LLC

Lesson 4. 1 – The Basic Marketing Concept Copyright © 2010 by Sports Career

Marketing Applications UNIT 4 The Marketing Concept A philosophy that a company’s success is ultimately dependent upon efficient identification of consumer needs and wants and the ability to satisfy them Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 The Marketing Concept Why Is Marketing Important? Ø Financial success is a direct result of an organization’s ability to effectively market its products and services Ø A business achieves profitability when they offer the goods and services that customers need and want at the right price Ø Marketers strive to identify and understand all factors that influence consumer buying decisions Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Needs vs. Wants A need is something you have to have and that you cannot do without For example, we need food. Without eating, we cannot survive! Copyright A want is simply something you would like to have You might want a Nintendo Wii or tickets to an upcoming game, but you can survive without them © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 The Exchange Process Ø Must be at least two parties involved in process Ø Some means of communication must be present between all parties Ø Each party must be free to accept or decline offer Copyright Exchange Process: Marketing transaction in which the buyer provides something of value to the seller in return for goods and services that meet that buyer’s needs or wants © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Benefits of Marketing The marketing process serves many purposes and provides numerous benefits for the consumer Ø The ability to add perceived value to goods and services Ø Making the buying process easy and convenient for consumers Ø Creating and maintaining reasonable prices Ø Offering a variety of goods and services Ø Increasing production Copyright © 2010 by Sports Career Consulting, LLC

Lesson 4. 2 – The Marketing Mix Copyright © 2010 by Sports Career Consulting,

Marketing Applications UNIT 4 The Marketing Mix: Consists of variables controlled by marketing professionals

Marketing Applications UNIT 4 The Marketing Mix Product Involves the goods, services, or ideas used to satisfy consumer needs Price Determined by what customers are willing to pay and production costs Place Involves the process of making the product available to the customer Promotion Involve how the goods or services are communicated to the consumer Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Discussion Topic How might the marketing mix apply to Wilson Sporting Good’s efforts to maximize sales of tennis racquets?

Lesson 4. 3 – Target Markets Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Target Markets A target market refers to people with a

Marketing Applications UNIT 4 Target Markets Must Be: Sizeable: The overall size of the market Reachable: Ability for marketers to reach consumers Measurable: Ability to measure size, accessibility and overall purchasing power of the target market Behavioral: Marketers seek to find similar behaviors within each respective target market Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 The Marketing Concept Target Market Influences Ø Diversity of consumer needs and wants Ø Organization size Ø Attributes of company products and/or services Ø Size and strength of competitors Ø Sales volume required for profitability Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Niche Marketing: Niche Marketing offers a unique opportunity to consumers or one that has not been offered in the past Copyright Process of carving out a relatively tiny part of a market that has a very special need not currently being filled © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Niche Marketing Cable television channels often seek niche audiences to appeal to specific target groups with a common set of interests, such as ESPN designing programming to appeal to sports fans Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Niche Marketing - Discussion Magazines seek niche audiences to appeal to a specific target group that has a common set of interests, such as Sports Illustrated launching a sports-specific magazine to appeal to sports fans Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Niche Marketing - Discussion When a business sees a competitor enjoying success with a particular niche, often times the market can become flooded with other companies exploiting the same niche or another similar niche. How has that affected Sports Illustrated since it first launched the magazine in 1954? Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Niche Marketing - Discussion Has the niche audience of sports fans spawned additional niche opportunities for Sports Illustrated? Offer specific examples to support your answers. Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Niche Marketing - Discussion Copyright © 2010 by Sports Career

Marketing Applications UNIT 4 Niche Marketing Lululemon Athletica is a Canadian retailer that distributes product in Canada and the United States. The company targets its branded yoga and fitness apparel to a niche consumer of female athletes. Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Niche Marketing Sports Illustrated captured a lucrative niche market with the annual Swimsuit Issue. What started in 1964 as a five page supplement in February has grown into a multi-billion dollar specialty issue which has impact in fashion, travel, product placement and many additional marketing tie-ins. Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Niche Marketing In 2009, over $45. 5 billion was spent on pets according to an American Pet Products Association survey. In 2010, Disney announced plans to open the Best Friends Pet Resort, a 50, 000 square foot (half of it outdoors) posh facility that will features a not only boarding but also bedtime stories and a water park for dogs. Disney is counting on the pet boarding niche to help them carve out a lucrative slice of revenue from the booming pet industry market. Copyright © 2010 by Sports Career Consulting, LLC

Lesson 4. 4 – Market Segmentation Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Market Segmentation the process of identifying groups of consumers based

Marketing Applications UNIT 4 Market Segmentation Helps Companies To: Ø Understand consumer groups Ø Determine target markets Ø Develop positioning strategies Ø Customize products and marketing strategies Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Five Bases for Market Segmentation 1) Demographic 2) Product 3)

Marketing Applications UNIT 4 Demographic Psychographic Geographic CONSUMER Benefits Product Copyright © 2010 by

Marketing Applications UNIT 4 Five Bases for Market Segmentation Ø Age Demographic Segmentation: Ø Income Ø Occupation Ø Gender Focuses on information that can be measured Ø Education Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Demographic Segmentation The 8 -13 age group (often referred to as the “tween” market) has provided a powerful demographic for entertainment products for a long time. When pop superstars like Hannah Montana get older, a new pop sensation rises to meet the demand for a new tween idol that appeals to this demographic. Justin Beiber certainly appears poised to fill that role as the 16 year old’s popularity is reaching new heights as evidenced by the 4 million people following him on Twitter, his 8 million friends on Facebook and the nearly 250 million views of his music video on You. Tube. Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Demographic Segmentation Since 2000, the number of NASCAR fans earning $100, 000 or more has doubled from 7% to 16% of its fan base, and those with incomes of $50, 000 or more has risen from 35% to 48% Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Demographic Segmentation According to a study released in August of 2010 from the Cable & Telecommunications Association for Marketing, 65% of American homes reported owning an HDTV Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Demographic Segmentation In 2009, Scarborough Research released demographic figures relating to fans of the Indy. Car, suggesting 29% of the fan base were “blue collar”, while 37% were “white collar” Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Demographic Segmentation The Twilight film franchise has created an unusual gender-based demographic. While the primary market is female, the surprise is that the films have appealed to a wide swath of ages in the gender. Overall, 95% of the audience is female, and 45% were 25 or older-which means that a film with teenage characters is almost as popular with adult females as with teens and tweens. In marketing terms, this is a huge success in having the product traverse all ages of the gender being targeted. Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Demographic Segmentation Triple A baseball posts its demographic information online for prospective sponsors to review Ø 40% of the fan base earns $46 -75 k per year Ø 42% of the fan base has an Undergraduate Degree Ø 91% of the fan base has a major credit card Ø 69% of the fan base owns their own home Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Five Bases for Market Segmentation Product Usage Segmentation: Ø Sports season ticket holders Ø Theatre group ticket coordinators Copyright Reflects what products consumers use, how often they use them, and why © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Five Bases for Market Segmentation Ø Sports Fans Psychographic Segmentation: Ø Music Lovers Ø Individuals who enjoy attending live events Copyright Grouping consumers based on personality traits and lifestyle © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Five Bases for Market Segmentation Season ticket holders enjoy additional “perks” such as exclusive invitations to pre-game chalk talks with the team’s coaches Copyright Benefits Segmentation: Refers to a perceived value consumers receive from the product or service © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Five Bases for Market Segmentation Ø North, South, East and West Regions of the United States Ø Urban and Rural areas of a particular state Geographic Segmentation: Dividing of markets into physical locations Important to Sports Marketers Because: Sports consumers are characteristically loyal to particular regions when making buying decisions Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Selecting multiple segments Because many segments may be valid in helping marketers make decisions, marketers often choose to use several segments Ultimately, a decision is made based on what best fits the organization’s target market Copyright © 2010 by Sports Career Consulting, LLC

Lesson 4. 5 – Positioning Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Positioning Ø Fixing company products in the Minds of Consumers Ø All about “perception” Ø Relative to competitor products Copyright Positioning: The fixing your sports or entertainment entity in the minds of consumers in the target market © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Positioning is important to all sports and entertainment products Sports leagues (NFL vs. Arena Football League) Sports teams (The Los Angeles Lakers in the 1980’s as “Showtime”) Sporting goods (Under Armour as comfortable performance apparel) Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Positioning is important to all sports and entertainment products Sports drinks (Gatorade as a performance beverage) Movie studios (Pixar as a leader in animated films) Entertainers (Sylvester Stallone, Arnold Schwarzenegger and Bruce Willis and as iconic action film stars) Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Positioning is important to all sports and entertainment products Entertainment products (DVD vs. Blu-Ray) Facilities and venues (Premium seating vs. general seating) Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Positioning is About Perception Nintendo effectively positioned Wii as more userfriendly and interactive than its competitors (Xbox, Playstation 3) and has been perceived as not only the “in” product by consumers but also a healthier alternative to traditional video games from a fitness perspective Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Positioning is About Perception Overall worldwide sales of video game consoles in as of April 2010: Nintendo Wii 71 million Microsoft X-Box 360 40 million Sony Playstation 3 36 million Copyright © 2008 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Positioning As of May 2010, Nintendo sold 1. 1 million copies of the game Wii Sports Resort worldwide, helped in large part by bundling it with a new “Motion. Plus” accessory (designed to improve the precision of the interactive controllers) while the American Heart Association (AHA) endorsed the Wii to encourage sedentary people to take the first step toward fitness (the AHA heart logo adorns the console itself along with two of its more active games, Wii Fit Plus and Wii Sports Resort Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Positioning Wheaties cereal has positioned itself as a brand affiliated with athletic performance and its slogan, “the breakfast of champions”, has remained since the brand’s introduction in 1924 Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Positioning With sales declining (the NY Times reported market share had slipped by nearly 14% in 2009), General Mills (parent company of the Wheaties brand) introduced a new spin off product aimed to take advantage of consumer perceptions of the Wheaties brand. General Mills developed three formulations of the cereal (dubbed Wheaties Fuel) with the help of a sports nutritionist and five world class athletes: the NFL's Peyton Manning, the NBA's Kevin Garnett, gold medal-winning decathlete Bryan Clay, the MLB's Albert Pujols, and triathlete Hunter Kemper. Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 High (variable one) Positioning Map: Product B Product A High (variable two) Low (variable two) Product D Products or services are grouped together on a positioning map where they are compared and contrasted in relation to one another Product C Low (variable one) http: //www. marketingteacher. com/Lessons/lesson_positioning. htm Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Positioning Under Armour, maker of sports performance apparel, introduced a new product (a two piece body “suit”) to consumers in the summer of 2009; a product that Under Armour has positioned as a unique product (dubbed “recovery wear”) not being offered by competitors Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Positioning Discussion How might a sports and entertainment marketing company utilize a positioning map to help determine a ticket sales strategy? Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Ticket Sales Positioning Map High Price Luxury suite at an NFL game Lower level seats for Disney on Ice Client Entertaining Family Fun Club seats at an NBA game “Cheap Seats” at a minor league baseball game Night at the movies Low Price Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 High Price Courtside Seats Lower Level End Zones Lower Level Seats Upper Level Seats Mid/Upper Level Sidelines Top Row Corners Low Price Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Positioning Strategy Identify all possible competitive advantages 1) Products, services, channels, people or image can be sources of differentiation 2) Organizations often position their products relative to competitor Weaknesses (5 -hour energy) Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Positioning Strategy Choose the right competitive advantage 1) How many differences to promote? 2) Unique selling proposition (5 -hour energy) Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Positioning 5 -hour Energy Drink focuses on its small packaging size and claims to provide a long lasting energy boost without the “usual jitters associated with energy drinks. ” These purported features are intended to provide the competitive advantage necessary for distinguishing this energy drink from the many competitors on the market. Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Positioning Strategy Positioning errors to avoid 1) Which differences to

Marketing Applications UNIT 4 Positioning Vitamin. Water advertises a certain healthy advantage to drinking their products. In 2009, Coca-Cola (parent company of the Vitamin Water brand) was sued by the Center for Science in the Public Interest over alleged deceptive marketing practices. Those practices include using buzzwords like “triple antioxidants” on the product’s packaging. Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Product Differentiation: Consider the Power. Bar energy bar introductory strategy for differentiating its product Copyright Refers to a positioning strategy that some firms use to distinguish their products from those of competitors © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Power Bar has enjoyed success because it has clearly differentiated its product from traditional candy bars It has positioned itself in the minds of consumers as a nutritional supplement that enhances athletic performance and as an energy booster At the time of Power. Bar’s introduction to the market, carbo-loading meals were common and popular practice among athletes. Power. Bar’s success has influenced a shift in that trend. Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Re-Positioning A private golf course may be suffering slumping membership sales. Management may choose to open up the course to the public, which will ultimately require a well planned re-positioning strategy Copyright Re-Positioning: A marketer’s plan for changing consumers’ perceptions of a brand in comparison to competing brands © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Re-Positioning Ø Re-positioning involves identifying who the new target market is and a strategy for creating awareness and demand within that market Ø Part of the re-positioning effort in this case would require sending a message to the target market that the club is affordable by public standards Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Re-Positioning Slogan might be “Enjoy the benefits of a private

Lesson 4. 6 – Understanding the Sports & Entertainment Consumer Copyright © 2010 by

Marketing Applications UNIT 4 Customer vs. Consumer The customer is the individual who buys the product or service For example, Frito Lay may choose to purchase four club seats at Jacobs Field in Cleveland for their sales staff to entertain clients at Major League Baseball games. Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Customer vs. Consumer The consumer is the individual who uses the product or service Frito Lay is the customer while their staff members and their clients are the consumers. Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Customer vs. Consumer The customer can also be the consumer: If John Smith buys four tickets to take his family to see the Yankees play the Red Sox, he is the customer because he bought the tickets. Because he used the tickets with his family, he is also the consumer. Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 The Sports and Entertainment Consumer Ø Marketers sell sports and entertainment participation Ø They target consumers with free time, discretionary income and a desire to be entertained Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Sports Consumers Could Also Include: Ø Manufacturers Ø Resellers Ø Sports Governing Bodies Ø Institutions Ø Media Sports Enterprises Copyright Sports Consumers: People who may play, officiate, watch, or listen to sports, or read, use, purchase, and/or collect items related to sports © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Sports Consumers Sports consumer participation in exchange process Spectators as Consumers Ø Benefit by watching the event or game Ø Exchange for tickets and entertainment Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Sports Consumers Sports consumer participation in exchange process Participants as Consumers Ø Benefit by playing, competing or participating in the event Ø Exchange for equipment and/or participation Copyright © 2010 by Sports Career Consulting, LLC

Lesson 4. 7 – Market Research Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Market Research Ø Creates an opportunity for companies to get to know their customers Ø Provides relevant information needed or solves a problem to inform decision in the sport business Ø Enhances the body of knowledge in sport marketing as a field of study Copyright Market research: The process of systematically collecting, recording, analyzing, and presenting data related to marketing goods and services © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Market Research Marketing research gathers information on: Ø Consumers Ø

Marketing Applications UNIT 4 Market Research This information is then used to: Ø Form links between consumers & company Ø Identify and define marketing opportunities, problems, strengths & threats Ø Generate, refine, evaluate and monitor marketing activities Ø Analyze and understand the company, its industry and its competition Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Market Research Steps in the Research Process 1) Identify the problem, concern or additional desired information to be gathered 2) Select and design research 3) Report and analyze 4) Communicate results of research Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Market Research In 2010, the Green Bay Packers held several focus groups with select season ticket holders to discuss new seating ideas for a possible Lambeau Field expansion. According to an article featured in the Green Bay Post Gazette, focus groups and surveys are an annual part of the Packers’ effort to meet fan expectations and better the game day experience. Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Market Research Ø Surveys Primary research: Ø Direct Mail The original research conducted for a specific marketing situation Ø Telephone Ø Interviews Ø Focus Groups Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Market Research Ø Census Reports Ø Demographic Analyses Secondary research: Published data that have been collected for some other purpose Ø Trade Associations Ø State Agencies Ø Commercial Research Firms Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Market Research Sample: Census: A method used for accumulating statistical information that is only obtained from a subset of a population A method used for obtaining statistical information that counts every member of a population Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Market Research With the 2010 Census results expected to show an increase in the U. S. Hispanic population, Soccer United Marketing officials also expect to see an increase in the future costs associated with sponsorship of the Mexican national team Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Market Research Quantitative Research Data: Generally gathered in the form of focus groups (groups of six to ten respondents who carry on a group discussion which is led by a trained moderator) or in-depth one-on-one or two-onone interviews Copyright Qualitative Research Data: Typically involves large numbers of respondents, typically 100 or more, and yields results that are representative of the total population © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Market Research According to a 2008 Nielsen study, gross sales increased by more than 65% for films exhibited in 3 -D (versus traditional film only) as a result of higher prices and increased attendance Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Market Research According to slashfilm. com, at least 5, 000 3 -D systems were expected to be in place by 2009 while Dream. Works Animation’s Jeffrey Katzenberg reportedly expects there to be 12 to 18 3 D feature films by 2010 Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 In 2009, the first-ever 3 -D advertisement debuted on U. S. movie screens, for Skittles candy from Wrigley, and was scheduled to run in the 10 biggest U. S. markets for five weeks on 762 new, speciallyconverted 3 -D screens Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 In 2009, ESPN announced plans to offer a limited screening of the highly anticipated matchup between USC and Ohio State University in 3 D during the 2009 college football season. The announcement came after more than two years of testing and research. “The results of this research will enable ESPN to quantify what it takes to produce, transmit and enable the 3 D experience for our fans, " Anthony Bailey, vice president of emerging technologies for ESPN, said in a statement. Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Additional market research applications explore many additional topics in sports and entertainment Ø Sport participation Ø Violence in sports Ø Advertising Ø Media outlets Ø Viewer and listener ratings Ø Financing Copyright © 2010 by Sports Career Consulting, LLC

Lesson 4. 8 – Advertising Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Advertising Ø TV Commercials Advertising: Ø Print Advertisements Any paid, nonpersonal form of communication by an identified company promoting goods and services. Ø Direct Mail Ø Internet (banner advertising, “pop up” ads) Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Why Advertise? Ø Effective communication Ø Create awareness Ø Create / Change image Ø Associate a brand with feelings and emotion Ø Precipitate behavior Ø Establish / Maintain goodwill Ø Assist in the increase in sales Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Types of Advertising Print Media: Any written form of communication used to inform, persuade, or remind consumers about products or services offered Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Types of Advertising Outdoor Advertising: Ø Includes any outdoor signs and billboards Ø Offers a high level of visibility Ø Provides 24 -hour advertising Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Outdoor Advertising The elevator doors in the Rose Garden parking garage (home to the NBA’s Portland Trail Blazers) feature an advertisement for Cricket which prominently features Blazers star, Greg Oden Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Outdoor Advertising In 2009, the Chicago White Sox implemented an outdoor campaign that also provided great brand extension by creating “scoreboard” billboards, providing fans with score updates as they drove around Chicago’s congested traffic areas Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Types of Advertising Mass Transit Advertising: Uses public transportation, such as buses, bus stands, taxicabs, and subways to post advertising messages Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Types of Advertising Broadcast Media: Any visual and/or auditory form of communication used to inform, persuade, or remind consumers about goods or services offered Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Types of Advertising Radio Advertising: Advertisers match their target market to a radio station that segments a particular market * Has the ability to reach a wide audience Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Types of Advertising Television Advertising: Includes commercials and infomercials Is typically the most effective type of broadcast media Is traditionally the most expensive form of broadcast media Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Types of Advertising Online Media: Placement of advertising messages on the Internet World Wide Web Fastest growing advertising segment in the world The Internet was the ONLY medium expected to see an increase in advertising spending during 2009 Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Types of Advertising “Specialty” Media (or Promotional Products): Includes “everyday” items displaying a company name or logo Examples include lanyards, calendars, pens, magnets, and coffee mugs Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Types of Advertising Additional Forms of “Creative” Media: Marketers often use many other creative ways of communicating advertising messages to consumers Examples include: blimps (and other forms of aerial advertising, supermarket carts/bags, hotair balloons, and in-theater advertisements Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 In 2009, Horizon Air took aerial advertising a step further when they unveiled plans to honor four of the largest in the Pacific Northwest by painting four jets in university colors and marks. The special themed planes were created for Oregon State University, University of Oregon, University of Washington and Washington State University - at no cost to the universities. Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 In the summer of 2010, Air. Train also unveiled a custom airplane to celebrate the 40 th anniversary of the Milwaukee Brewers in their first partnership with a MLB franchise Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Advertising Mediums used in SEM Signage Printed media displayed for promotional purposes in sporting venues Endorsements Contracting a well-known celebrity athlete who uses his or her fame to help a company sell or enhance the image of the company, products, or brands” Print Media Includes posters, game/event programs, point-ofpurchase promotions and direct mail pieces Broadcast Media Includes radio, television, scoreboards and pubic address (p. a. ) systems Internet Provides a unique promotional opportunity for advertisers Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Advertising Agencies Nike contracts the Wieden & Kennedy agency to manage and oversee some of their advertising campaigns Copyright Advertising Agency: An organization that decides on and implements an advertising strategy for a customer © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Advertising Agencies Wieden + Kennedy was behind the “MVP Puppets” ad spots featuring the likenesses of Kobe Bryant and Le. Bron James which launched during the 2009 NBA Playoffs Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Advertising Agencies Fearing that a strike by writers and actors against Hollywood studios would damage the Los Angeles economy, Mayor Richard Riordan waged a city-funded public relations blitz aimed at pressuring both sides into settling. Mayor Riordan contracted Edelman Public Relations Worldwide, a PR agency, to manage the campaign. Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Why an Agency? Ø Expertise Ø Time constraints Ø “Fresh”

Marketing Applications UNIT 4 Considerations for Agency Selection Ø Does the agency have a solid marketing plan in place? Ø Does the agency have comprehensive marketing skills? Ø Can the agency determine target markets and a means to reach them? Ø Does the agency view itself as a partner of the hiring organization? Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Considerations for Agency Selection Ø Does the agency have a track record of success? Ø Has the agency worked with others in your industry? Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Additional Considerations Ø Comfort level with the representative that will be handling the account Ø Making sure all written copy is customer centered Ø Selection of an agency that views itself as a partner of the organization Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Agency Extension Creative use of in house advertising capability Ø The Red Sox, as a way to generate additional revenue, leveraged relationships in the industry and throughout the community and created a spin-off agency, the Fenway Sports Group Ø FSG was so successful that they were profitable in their first year and their client base included NASCAR, Boston College, and even the rival New York Yankees Copyright © 2010 by Sports Career Consulting, LLC

Lesson 4. 9 – Digital Marketing Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Digital Marketing What is Digital Marketing? Today’s consumer is more cognizant of the marketing messages all around them, leaving them more likely to tune out advertisements or other forms of marketing communication Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Digital Marketing What is Digital Marketing? Ø In the “golden age” of television, an ad on one of the big three networks could reach 70 percent of the viewing audience Ø According to Seth Godin (author of Permission Marketing) today’s consumer receives roughly one million marketing messages a year on average Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Digital Marketing Overwhelmed consumers are becoming adept at tuning out marketing messages Ø E-mail filters to block spam Ø Digital video recorders (DVRs) to skip commercials Ø Caller ID to screen telemarketers Ø Recycling direct mail pieces without opening them Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Digital Marketing Business and marketing professionals refer to this saturation as “clutter” Ø Clutter is a major problem for today’s marketer Ø The cost of selling has almost tripled over the past decade Ø Today’s consumer has a broken trust with traditional marketing means (broadcast media, print media etc. ) Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Digital Marketing How does clutter impact marketers? Ø Marketers today must determine ways to effectively cut through the clutter if the firms they represent are to financially thrive Ø Marketers in the digital marketing era must become more creative and free thinking in their approach to promoting company products and services Ø Sports, entertainment and event marketing provide an effective means for cutting through today’s marketing clutter Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Digital Marketing The National Basketball Association is working with Ti. Vo to evaluate just how DVR-proof televised basketball really is. The DVR pioneer has inked a deal with the NBA for ratings and interactive ad services. Under the agreement, Ti. Vo will provide the league with a comprehensive audience measurement reports evaluating the entire 2008 -09 NBA season as viewed by Ti. Vo subscribers. Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Digital Marketing Strategies How are marketers adjusting? Digital marketers turn to technology to help reach target consumers Ø Internet marketing Ø Mobile marketing Ø Social marketing Ø Viral marketing Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Digital Marketing Strategies How are marketers adjusting? The goal for digital marketers is to focus on interactive elements, encouraging consumers to participate in the marketing process U. S. interactive marketing spending will reach $55 billion by 2014, making up 21% of all marketing spending, according to a report issued by Forrester Research Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Interactive Strategies There are nine different singing billboards throughout Kentucky, each featuring one line of the University of Kentucky fight song. When fans pass one of the unique billboards, they are encouraged to tune the radio to a specific station to hear the UK fight song in its entirity. Also, fans that submit pictures of all nine billboards are entered to win free tickets and other prizes. The school also tied the campaign to a special website at (ukfightsong. com), which includes audio, video clips, information on the contest and social networking integration with Twitter, Facebook and You. Tube. Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Interactive Strategies EA Sports is seeing significant changes in the way people are playing their FIFA 10 soccer video game. On any given day, a reported 750, 000 Americans compete online, an indication of the changing landscape in the way consumers choose to interact with media. Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Interactive Strategies The Coca-Cola Company celebrated the lead up to the 2010 FIFA World Cup by encouraging people around the world to take part in the longest-ever online goal celebration. The digital campaign invited fans to film and upload their own goal celebrations to You. Tube where the clips were edited into a continuous loop to create a “non-stop celebration” which was viewed over 5 million times throughout the World Cup. Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Interactive Strategies Dana White, President of the Ultimate Fighting Championship (UFC), used the official Twitter account of UFC and his own personal Twitter profile to host a scavenger hunt that rewarded UFC fans with a variety of prizes. To drive awareness for upcoming fights, White provided a call-to-action to fans via Twitter, posting his location and offering up a prize to the first person who can meet him at that location. He later posted a viral video to You. Tube that showed a fan tracking him down to win free UFC gloves within just 3 minutes and 33 seconds of his post. UFC's originality and authentic approach to using Twitter has drawn an avid fan following online (White has 1, 115, 000+ followers; UFC has 139 K followers). Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Digital Marketing Strategies Internet Marketing The Internet, far more than any other medium, has given consumers a voice, a publishing platform and a forum where their collective voices can be heard, shared and researched, creating a more powerful and educated audience than ever before Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Digital Marketing Strategies Consumer-Generated Media (CGM) Also referred to as Online Consumer Word-of-Mouth or Online Consumer Buzz Copyright Encompasses the millions of consumer- generated comments, opinions and personal experiences posted in publicly available online sources on a wide range of issues, topics, products and brands © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Digital Marketing Strategies Sports and entertainment properties use the Internet for a host of marketing functions Ø Ticket sales Ø Community relations Ø Sponsorship sales Ø Player/staff fan connection (blogs, chats etc. ) Ø Merchandise sales Ø Additional revenue streams (banner advertising on team websites etc. ) Copyright Ø General promotion © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Internet Marketing The Lakewood Blue. Claws Baseball Club uses the Internet (specifically e. Bay and Craigslist) to sell available luxury suite and premium seat inventory. The team also utilizes Twitter and Facebook to stay connected with fans. Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Digital Marketing Strategies Mobile Marketing Mobile marketing refers to two different marketing means: one, a recent trend, refers to marketing on or with a mobile device (such as a mobile phone) while the other (more traditional) is meant to describe marketing “on-the-go” Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Digital Marketing Strategies Mobile marketing represents an area of massive potential growth Ø Mobile phone users in the US sent a staggering 1. 5 trillion text messages in 2009, compared to 263 billion text messages sent in 2007, with an average of five billion messages sent out per day Ø Analysts also estimate that mobile advertising (a subset activity of mobile marketing) is expected to grow to $5. 7 billion by 2014 Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Digital Marketing Strategies “Apps” Apps have recently gained a lot of popularity among consumers, particularly users of Apple’s i. Phone Copyright Apps (an abbreviation for applications) are individual software programs designed to run on the Internet, computer, phone or other electronic device typically designed to increase functionality or ease of use © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Digital Marketing Strategies In July of 2010, Apple announced that 5 billion apps had been downloaded from their online “apps” store. It has taken just two years to reach that mark. Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Digital Marketing Strategies The sports and entertainment industry has taken note of the apps trend and launched a number of sports and entertainment related apps Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Digital Marketing Strategies Lance Armstrong’s foundation (LIVESTRONG) offers a “calorie tracker” app so consumers can use their mobile devices to keep track of what they are eating to encourage healthier lifestyles Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 According to Ricardo Castro, Founder of MMA Applications, an app is now available as of July of 2009 that delivers “instructional content into the pockets of over forty million people around the world who are carrying i. Phone and i. Pod Touch devices” to help educate the general public about the sport of mixed martial arts. The videos available are high definition and provide instruction for anyone interested in learning more about the moves they’ve seen during UFC fights. Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Digital Marketing Strategies With the “Fandango” app, users can watch film trailers, find showtimes, buy tickets and get directions to theater, all from their mobile device Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Digital Marketing Strategies With apps like Zippo’s “concert lighter”, cell phones have become the new lighters for today’s concert goers (the app has been downloaded over 10 million times) Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Digital Marketing Strategies Traditional Mobile Marketing The NBA's Jam Van tour is an interactive basketball program that travels from the United States to China. The Jam Van is a 67 -foot 18 -wheeler that transforms into 8, 000 square feet of basketball and interactive “off-court” activities Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Digital Marketing Strategies Traditional Mobile Marketing In 2010, Gatorade launched a mobile “locker room” initiative in conjunction with their “G Series” rebranding campaign. The mobile campaign traveled across the nation, visiting 8 handpicked high schools where students were given a first-hand experience where they tested new G Series products and experienced a once in a lifetime opportunity. Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Digital Marketing Strategies Modern Mobile Marketing In 2010, Major League Baseball allowed fans to cast votes for their favorite players to be included in the All-Star game via text messaging. Fans were encouraged to text the word "VOTE" to a specific number to receive their ballot, then to text again with their player choice. Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Digital Marketing Strategies Modern Mobile Marketing The Atlanta Symphony continues the tradition of introducing members of the ASO to the audience with an evening-long live, on-site broadcast of the concert on large 15′x 20′ screens, which are permanently affixed on either side of the stage. The live feed will include a pre-concert show, as well as live intermission interviews of guest artists and musicians from the Orchestra, fueled by text-message questions sent by the audience the night of the concert. Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Digital Marketing Strategies Modern Mobile Marketing Viacom announced in 2009 that Intel and Pepsi will both be sponsoring the delivery of programming to mobile phones, including video content from MTV and Comedy Central. According to marketingvox. com, “mobile is being viewed by Viacom and other media companies as an entirely new, or at least not yet maximized, revenue stream. ” Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Digital Marketing Strategies Social Media Social media describes the online technologies and practices that people use to share content, opinions, insights, experiences, perspectives, media and to otherwise interact Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Digital Marketing Strategies Social media presents itself in the form of many variable applications Ø My. Space Ø You. Tube Ø Twitter Ø Digg Ø Flickr Ø Mini. Clip Ø Facebook Ø Blogger Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Digital Marketing Strategies Why is social media important to a sports or entertainment marketer? Ø In theory, social media is free Ø Allows an organization to reach a massive audience Ø Social media is still growing presenting untapped potential Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Digital Marketing Strategies Social Media Marketing A 2010 research project conducted by Catalyst Public Relations in conjunction with the Sports Business Journal revealed that 61% of MLB fans and 55% of NFL fans consider themselves bigger fans after they began following their teams through social media outlets Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Why is social media important to a sports or entertainment marketer? Ø Facebook: 500 million users Ø Linkedin: 70 Million Professionals representing every company on the Fortune 500 in over 200 countries Ø Twitter: Over 1 million registered users, new users are signing up at the rate of 300, 000 per day Ø You. Tube: 1 Billion Views Per Day (2 nd biggest search engine behind Google) Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Digital Marketing Strategies Social Media Marketing The NHL’s Los Angeles Kings used Twitter as a means for connecting with fans during the 2009 NHL Draft. Several members of the Kings front office, including General Manager Dean Lombardi, Assistant General Manager Ron Hextall and Kings legend and President of Business Operations Luc Robitaille, “tweeted” live updates provided coverage throughout the entire draft Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Digital Marketing Strategies Social Media Marketing Turner broadcasting launched a “social-viewing” option for NASCAR fans watching the Pocono 500. Viewers were encouraged to log on to Turner's companion websites using Facebook, My. Space or Twitter (or a combination of those) to chat with fellow viewers. Network research found Facebook represented, on average, 54% of social log-ins during the race. My. Space was half that at 27% and Twitter was just 10%. My. Space users talked the most, accounting for 44% of message volume despite only 27% of log-ins. Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Digital Marketing Strategies Social Media Marketing The marketing staff at Oregon State University uses information collected on the Beaver’s Facebook page from “friends” to contact them in an attempt to increase the donor base. People from 20 countries are represented on OSU’s page, 92 percent of them are younger than 44 and 58 percent are 18 -24, providing a much greater reach than traditional donor marketing campaigns. Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Digital Marketing Strategies Social Media Marketing For the 2009 -2010 season, the Boston Celtics created a customized, branded “Evite” for users of the popular evite. com website in an effort to help group leaders organize and promote a Celtics outing Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Digital Marketing Strategies Social Media Marketing Pop star Katy Perry announced via Twitter that her forthcoming album was complete by tweeting ““Cut, copy, print, moving on! That’s a wrap for Teenage Dream! So gorgeous, I really can’t wait to see what [director] Yoann Lemoine makes of it all!” Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Digital Marketing Strategies Social Media Marketing Sports Networker’s Twitter sports marketing guide analyzes the top twitter users in sports (teams like the Lakers and Real Madrid who enjoy the highest follower counts on Twitter) and offers five key steps for marketing a brand interact with fans Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Digital Marketing Strategies Social Media Marketing 1. When in Doubt, Tweet 2. Respect the Fan 3. Use the Resources You Have 4. Follow Back and Listen 5. If it isn’t Broken, Don’t Fix it Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Digital Marketing Strategies Viral Marketing Viral marketing describes any strategy that encourages individuals to pass on a marketing message to others, creating the potential for exponential growth in the message's exposure and influence Viral marketing is the digital marketer’s version of “word-of-mouth” advertising Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Digital Marketing Strategies Viral Marketing Nike wasn’t even an official World Cup sponsor, but its three-minute "Write the Future" viral video broke the record for the biggest audience in the first week of a campaign with 7. 8 million views. That record, incidentally, was set by another Nike ad: the "Earl and Tiger" ad, which debuted earlier prior to the 2010 Masters with 6. 3 million views in its first week. Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Digital Marketing Strategies Social Media Marketing Disney implemented a viral campaign which allowed site visitors to animate family and friends as part of a “What Will You Celebrate? ” Disney promotion. Users who went to the site could pick from a number of reasons to have a parade (such as birthdays, family reunions, congratulations etc. ) and create a banner to mark the event. They could then upload up to four photos to create custom characters that were integrated into the parade video. In just 4 months post-launch, the “Magical Parade” site produced more than 125, 000 parade videos. Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Digital Marketing Strategies Ultimately, this shift in marketing trends creates new opportunities for the sports and entertainment industry John Meindl, President of SPORTSBRANDEDMEDIA says on their website: “Sports, TV, movies and music each offer successful marketing models. But when sports and branded entertainment work in unison, the result can cut through the clutter of advertising messages and enable you to reach your target audience in a unique and effective way. Executives from sports and entertainment will share their insights and demonstrate how the power of sports can help you build your brand, engage your customers and sell your products. ” Copyright © 2010 by Sports Career Consulting, LLC

Marketing Applications UNIT 4 Blank Slide Available for Teacher Edits Copyright © 2010 by

UNIT 4 REVIEW (ANSWERS) Marketing Applications 1)Explain the marketing concept The marketing concept is the view that an organization’s ability to sell its products and services depends upon the effective identification of consumer needs and wants and a successful determination of how best to satisfy them 2)Identify the components of the marketing mix Product, price, place and promotion Copyright © 2010 by Sports Career Consulting, LLC

UNIT 4 REVIEW (ANSWERS) Marketing Applications 3)Understand the target market A target market refers to people with a defining set of characteristics that set them apart as a group 4) Identify the five bases of segmentation 1 - Demographic 2 - Product usage 3 - Psychographic 4 - Benefits 5 - Geographic Copyright © 2010 by Sports Career Consulting, LLC

UNIT 4 REVIEW (ANSWERS) Marketing Applications 5) Illustrate the concept of positioning Positioning is the fixing of a sports or entertainment entity in the minds of consumers in the target market 6) Differentiate between customer and consumer The customer is the individual who buys the product or service while the consumer is the individual who uses the product or service Copyright © 2010 by Sports Career Consulting, LLC

UNIT 4 REVIEW (ANSWERS) Marketing Applications 7) Explain the importance of market research Market research provides an opportunity for companies to get to know their customers so they can effectively cater to consumer needs and wants 8) Identify specific forms of advertising and explain why businesses choose to advertise Copyright © 2010 by Sports Career Consulting, LLC

UNIT 4 REVIEW (ANSWERS) Marketing Applications 7) Explain the importance of market research Market research provides an opportunity for companies to get to know their customers so they can effectively cater to consumer needs and wants 8) Identify specific forms of advertising and explain why businesses choose to advertise Print media, outdoor advertising, mass transit advertising, broadcast media, online media and specialty media are examples of specific forms of advertising Copyright © 2010 by Sports Career Consulting, LLC

UNIT 4 REVIEW (ANSWERS) Marketing Applications 8) Identify specific forms of advertising and explain why businesses choose to advertise Companies advertise for a number of reasons, including: Ø Ø Ø Effective communication Create awareness Create or change image Associate a brand with feelings/emotion Precipitate behavior Establish and maintain positive public Copyright © 2010 by Sports Career Consulting, LLC

UNIT 4 REVIEW (ANSWERS) Marketing Applications 9) Understand the concept of digital marketing Today’s consumer is more cognizant of the marketing messages all around them, leaving them more likely to tune out advertisements or other forms of marketing communication. Digital marketers turn to technology to help reach target consumers. Digital marketers must be creative and innovative to connect with today’s consumer and target audiences. Copyright © 2010 by Sports Career Consulting, LLC