Presentation on theme: "What Is Marketing? Simple Definition:"— Presentation transcript:
1 What Is Marketing? Simple Definition: Marketing is managing profitable customer relationships.How? By accomplishing the following:Attracting NEW customers by promising superior value.KEEPING and GROWING current customers by delivering satisfaction.
2 7 Functions of Marketing The set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market
3 7 Key Marketing Functions- study these for quiz tomorrow Product/service managementDistributionSellingMarketing-information managementFinancingPricingPromotion
4 7 Functions of Marketing Defined Pricing- Assigning a value to products and services on the basis of supply and demandTickets to the Super Bowl are very expensive because demand is high.Distribution- Determining how best to get products and services to consumersEA Sports sells their video games in GAMESTOP stores, because they know their target consumers shop at those stores for video games and entertainmentPromotion- Communicating information about products and services to consumers. The effort to inform, persuade, or remind potential customers of your good(s) or service(s).“When the 76ers Score 90, You Win at Papa John's!" Yes! Even if they lose, you win! "All season long the day after the 76ers score 90 or more points you get 50% OFF your regular menu price online order."
5 7 Functions of Marketing Defined Financing- Creating a budget for a company’s marketing plan & providing customers with flexibility in purchasing company products or servicesLike many professional sports franchises, the NHL’s Carolina Hurricanes offer payment plans for their customers purchasing ticket packagesSelling- Communicating with consumers to assess and fill their needs, as well as anticipating future needsMany professional sports teams utilize a call center to generate ticket sales
6 7 Functions of Marketing Defined Marketing information-management- Gathering and using information about customers to improve business decision making.After a stay at a luxury hotel, you fill out a form rating the service and accommodations.Product and service management- Designing, developing, maintaining, improving, and acquiring products or services so they meet customer needsOne of Nike’s product management efforts includes the “Nike Kids Field Tester Program” in which selected applicants will wear Nike shoes for typically 4-8 weeks.
7 Needs, Wants, and Demands A state of felt deprivation including physical, social, and individual needs.Name some specific examples of each need type.
8 Needs, Wants, and Demands Types of Needs:Physical:Food, clothing, shelter, safetySocial:Belonging, affectionIndividual:Self-expression, learning, knowledge
9 Needs, Wants, and Demands Form that a human need takes, as shaped by culture and individual personality.Preferences for brands are wants.
10 Needs and wants are fulfilled through a marketing offer. Marketing OffersSome combination of products, services, information, or experiences offered to a market to satisfy a need or want.Needs and wants are fulfilled through a marketing offer.AIRPLANE ACTIVITY
11 Markets What is a Market? A market is the prospective customers a business wants to serve and the location of those customers.
12 Markets There are 2 types of Markets The Consumer Market Consumer markets are the markets for products and services bought by individuals for their own or family use.The Industrial (Business) MarketIndustrial markets involve the sale of goods between businesses. These are goods that are not aimed directly at consumers
13 What is Exchanged Products – physical merchandise offered for sale Services - work done by one person or group that benefits another
14 The Marketing MixThe set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market.
15 The Marketing Mix (aka: the 4 P’s) This transforms the marketing strategy into action.The 4 P’s:ProductPricePromotionPlace(distribution)ProductPriceBuyer NeedsPlacePromotion
17 Marketing Management Demand Management Demarketing Finding & increasing demandAlso changing or reducing demand, such as in demarketing.DemarketingIn case of excess demand, this is done to temporarily or permanently reducing the number of customers or shifting their demand.EX: When the government tries to reduce smoking of tobacco products, it adds more tax to the products.
18 Demarketing Marketing in Action Demarketing is often used to reduce the number of customers by discouraging undesirable behaviors.Is this ad effective?Visit the Office of National Drug Control Policy ad gallery.
19 Customer EquityCustomer equity is the total combined customer lifetime values of all the company’s customers.
20 The Mission Statement A statement of the organization’s purpose. What it wants to accomplish in the larger environment.Should be market oriented and defined in terms of customer needs.
21 Market-Oriented Mission Statements Should address the following questions:What is our business?Who is our customer?What do consumers value?What should our business be?Mission statement must also be:Realistic.Specific.One that fits the market environment.Based on distinctive competencies.Motivating.
22 GOOD Mission Statements NIKE: To bring inspiration and innovation to every athlete in the world.Microsoft: Our mission is enable people and businesses throughout the world to realize their full potential by creating technology that transforms the way people work, play, and communicate.
23 BAD MISSION STATEMENT What is wrong Apple's mission statement? Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad.It is pretty lame. It's not a mission statement so much as a list of product lines.
24 Apple changed it to….Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings.
25 Marketing Management: Analysis Once you have a market for your product, you need to conduct a SWOT analysis.StrengthsWeaknessesOpportunitiesThreats
26 SWOT AnalysisA technique that evaluates a company’s internal strengths and weaknesses and external opportunities and threats
27 Strengths In SWOT, strengths and weaknesses are internal factors. For example: A strength could be:Your specialty/expertise.A new, innovative product or service.Location of your business.Quality processes and procedures.Any other aspect of your business that adds value to your product or service.
28 Weaknesses A weakness could be: Lack of expertise. Undifferentiated products or services (i.e. in relation to your competitors).Location of your business.Poor quality goods or services.Damaged reputation.
29 Opportunities In SWOT, opportunities and threats are external factors. For example: An opportunity could be:A developing market such as the Internet.Mergers, joint ventures or strategic alliances.Moving into new market segments that offer improved profits.A new international market.A market vacated by an ineffective competitor.
30 Threats A threat could be: A new competitor in your home market. Price wars with competitors.A competitor has a new, innovative product or service.Competitors have superior access to channels of distribution.Taxation is introduced on your product or service.Economic Downturns
33 What is a Product? Products are Tangible: Something you can touch EX: jerseys, hats, skateboardsAll Products generated by the main sporting event are called product extensionsServices, sports training, sports event, golf lessons ARE NOT Tangible (can’t touch/feel them)
34 The Fan’s Role in Sports Fan = “Fanatic”Someone who is interested, involved and engaged in the event.Football, Basketball, Baseball, GolfChess, Darts, Shuffleboard, CurlingFan is the reason for Sports MarketingIS the power behind success of sportsIS the economic forceSHAPES the game with attention
35 Sports ConsumersConsumers exchange money for a “wanted” good or service.Sports Consumers exchange in different ways:Spectators as ConsumersBenefit by watching gameExchange for tickets and entertainmentParticipants as ConsumersBenefit by playing or event participatingExchange for equipment and participation
36 Sports Attraction Why Do We Participate? Personal Improvement - Better HealthSense of AccomplishmentDevelop Positive Values, etc.Sport AppreciationEnjoy the game and competitionFan Identification with the TeamSocial FacilitationSpend time with others, feel part of a group24
37 SPORTSCAPE Why is attending a game better than watching on TV? THE EXPERIENCE!The use of the venue to make attendance to a game “more than just a game”All of these factors and many more shape the Fan’s perception of the event and his or her role in that event5960
38 Elements of Sportscape AestheticsMusicColorsSmellsLightingMotionParkingSeat ComfortSeat AccessSponsor MarketingIn-Game EntertainmentSignageReplay ScreensCheerleadersDrinks/FoodAbility to bond w/ friends/family5658
39 What do Fans value when attending a game? Ticket PricesToday the “average fan” is being priced out.Adequate Parking/AccessReasonably Priced FoodsWide Variety Of Snack FoodsHome Team With A Winning RecordClose ScoreHome Team Star Regarded As Top 10 PlayerReasonably Priced SouvenirsGame That Ends In Less Than Three Hours
40 TicketsFrequency Escalator: A marketing tool that examines the attendance levels of fans (goal = increase commitment)What are the different types of ticket packages available to fans?Flex Tickets: Jump between parks (Disney)Group Tickets: Group tickets are a reserved block of tickets for a specific game or eventSeason Tickets: Provides consumers with tickets to every home game for a particular sport or full access to an entire event for a set priceSeason Ticket Equivalents: Refers to the sum of all of the various ticket packages sold converted to one measurable number (how many group & single = a season package)If the Yankees sell 400 new quarter season packages, 800 new half season packages and 2,000 new full season packages in the off season, they would have sold 2,500 season ticket equivalents.Ticket Package: A sales approach that involves grouping together a select number of games, often times at a discounted price
41 GOAL: To understand how market segmentation works Market Segmentation: The process of dividing a larger market into smaller parts.Grouping consumers together based on common needs, interests, behaviors, etc.What are the benefits if doing this?Separating consumers makes measurement and promotions easier to manage- WHY?Fans are typically segmented in to smaller markets by teams- WHY?
42 Specific Market Segments: DemographicGeographicPsychographicBehavioralGOAL: To understand how market segmentation works
43 DemographicsSegmentation based on measurable statistics about people. Examples?AgeMarried/SingleGenderReligionRaceNationalityIncomeWhat would the Demographic Segmentation be for the PS4?GENDERAGEMarital status29GOAL: To understand how market segmentation works
44 GeographicsSegmentation based on a physical location, Area, Region, or Climate EXAMPLES?Country (USA Football, England Soccer)State (NY Colleges vs Florida Colleges)County (Putnam vs Westchester)City (NYC vs Carmel)Region (east vs west)Climate – weatherCold weather SportsWarm weather SportsCalifornia (suntan lotion)Vermont (winter coats)30GOAL: To understand how market segmentation works
45 PsychographicsSegmentation based on Interests, Attitudes, Personality & Activities. Examples?AthleteComputer UserMini-Van DriverPersonality (outgoing, etc.)LifestyleRetired PersonMarathon RunnerCoachWhat would the Psychographic be for the PS4?LifestylePersonalityMLB the show players27GOAL: To understand how market segmentation works
46 Behavioral Segmentation Segmentation based on “Rate Of Use”- BEHAVIORSGroups individuals according to the occasions when & why they purchase, use or think of buying a product. Examples?Individual is either a User or Non-UserSeek certain BenefitsSeason Ticket HoldersDiet SodaVideo GamesCleatsMovie ticketsCar InsuranceWhat would the Behavioral Segmentation be for the PS4?Video Game users (either play games or not)28GOAL: To understand how market segmentation works
47 Behavioral, Psychographic Geographic Demographic, Psychographic SEGMENTATION REVIEW QUESTIONS ON WEBSITE Pair up & classify each of the following statements as DEMOGRAPHIC, GEOGRAPHIC, PSYCHOGRAPHIC, or BEHAVIOR SEGMENTATION. One person ask the other the odd #s and the other asks even #s. Discuss answers to see if you agree.1. 42 year-old woman2. Marathon runner3. Prefers beverages without sugar4. Grandparents with 10 grandchildren5. NY Mountains6. Prefers adventurous vacations7. NBA cheerleader8. Newly married couple9. Earns $100,000+ a year10. Received a Masters Degree11. Cayman Islands12. Cold climate13. Attends worship service every week14. Enjoys day trips15. Prefers watching television16. Purchases Progressive Car InsuranceDemographicPsychographicBehavioral, PsychographicGeographicDemographic, PsychographicPsychographic, GeographicBehavioral (all 4 too)
48 REVIEW- EXIT PASS Target Market Market segmentation Demographics A specific group of people you are trying to reach.The process of dividing a larger market into smaller parts.Statistics that describe a population.Segmenting a market based on where customers live.Dividing a market based on mental and emotional characteristics of customers.Dividing a market based on the way customers use a product or act toward a product.Target MarketMarket segmentationDemographicsGeographicPsychographicBehavioralGOAL: To understand how market segmentation works
49 Niche MarketA relatively small part of a market that has a very special need not currently being filled is a Niche Market.Not being readily served by the mainstream product or service marketers.ExamplesSports Memorabilia Collectors & TradersSport utility vehicles (SUV) Drivers desiring a vehicle with room, power and (SUV) strengthCable 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. (ESPN Deportes)31
50 Grassroots Marketing (Publicity) Grassroots marketing uses people to spread the word rather than a medium such as television or radio.getting consumers in your key markets to care so much about your product that they become your cheerleaders.It is a word of mouth campaignExamples:helping and assisting the community with charitable and fundraising events (NFL - United Way)Using Facebook or Twitter to promote products
51 Mass Marketing (Advertising) A market coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.It attempts to sell through persuasion of a product to a wide audience.Traditionally mass marketing has focused on radio, television and newspapers as the medium used to reach this broad audience.Reaching the largest audience possible = maximum exposure to the product.
52 The four types of marketing media to get to “fans” are: PrintNewspapers, magazines, direct mail, outdoor advertising, station posters, stadium signageBroadcastRadio and televisionDirect marketingMany media used to communicate directly with consumersOnline advertisingBanner advertising, company Web sites, online promotions54