1. Lesson 2.4 Primary Marketing Functions Copyright © 2014 by Sports Career Consulting, LLC

2. LESSON 2.4 What is SEM?  Pricing  Distribution  Promotion  Financing  Selling  Information-Management  Product and Service Management Primary Functions of Marketing Copyright © 2014 by Sports Career Consulting, LLC

3. LESSON 2.4 What is SEM? Pricing: Assigning a value to products and services Copyright © 2014 by Sports Career Consulting, LLC Price is determined on the basis of supply and demand Tickets to the Super Bowl are very expensive because demand is high. In 2013, the New York Jets chose to lower the prices on about 5,000 seats combined for season ticket holders in the 300-level and in the club seating areas (in some cases dropping prices from $700 to $255 for season tickets) at MetLife Stadium based on the supply and demand that impacted the previous year's sales in those areas Primary Functions of Marketing

4. LESSON 2.4 What is SEM? Pricing: Assigning a value to products and services Copyright © 2014 by Sports Career Consulting, LLC Despite the fact that Disney announced ticket price increases at both Disneyland and Disney World while eliminating many of the traditional discounts given to local residents, the majority of Disney parks enjoyed attendance increases. Tickets for the 2014 men's ice hockey gold medal game at the Sochi Olympics were unavailable within a half hour of going on sale online. Customers were able to buy a maximum of four tickets, with prices ranging from $233 and $1,132. Primary Functions of Marketing

5. LESSON 2.4 What is SEM? Primary Functions of Marketing When demand fluctuates as frequently as it does in the ticketing world, companies must implement strategies to help identify the best price points to match demand. This is why many organizations are moving toward a “dynamic pricing” structure where games in higher demand cost more than the same ticket for a game with lower demand… Copyright © 2014 by Sports Career Consulting, LLC

6. LESSON 2.4 What is SEM? Primary Functions of Marketing Distribution: Determining how best to get products and services to consumers EA Sports sells their video game products at Target and Best Buy stores, knowing that consumers shop at those stores for video games and entertainment Copyright © 2014 by Sports Career Consulting, LLC

7. LESSON 2.4 What is SEM? Primary Functions of Marketing On Demand and streaming services have become prevalent options for consumers in today’s marketplace Copyright © 2014 by Sports Career Consulting, LLC As Apple tries to hold on to market share, they are constantly adding new streaming content for their Apple TV product (such as HBO Go, ESPN) to appeal to a broader base of customers

8. LESSON 2.4 What is SEM? Primary Functions of Marketing Sports and entertainment companies must determine which distribution strategies will help to maximize sales, whether that is mass distribution in as many outlets as possible or partnerships with individual retailers to create exclusivity and drive demand. Copyright © 2014 by Sports Career Consulting, LLC

9. LESSON 2.4 What is SEM? Primary Functions of Marketing Taylor Swift’s album release Red received a boost because the album was available at several nontraditional retail outlets, including Starbucks, Target, Papa John’s Pizza and Walgreens, selling over 1.2 million copies in its first week Copyright © 2014 by Sports Career Consulting, LLC

10. LESSON 2.4 What is SEM? Primary Functions of Marketing Copyright © 2014 by Sports Career Consulting, LLC To promote last year’s release of his album Magna Carta Holy Grail, Jay-Z inked an exclusive (and lucrative) partnership with Samsung to provide free copies of the album to one million Samsung cell phone and tablet owners before it was available for sale.

11. LESSON 2.4 What is SEM? Primary Functions of Marketing Copyright © 2014 by Sports Career Consulting, LLC Exclusive distribution doesn’t always guarantee success however, illustrated by the disappointing sales of Sears’ “Kardashian Kollection”

12. LESSON 2.4 What is SEM? Primary Functions of Marketing Promotion: Communicating information about products and services to consumers GameFly, Inc., an online video game rental subscription service, announced a national summer-long promotion with Six Flags last summer, in which the online video game rental company offered Six Flags guests extended “free” trials of their subscription service as well as providing one million gift cards available for giveaway at toll booth exits at each park Copyright © 2014 by Sports Career Consulting, LLC

13. LESSON 2.4 What is SEM? Primary Functions of Marketing Financing activities could include:  Creating a budget for a company’s marketing plan  Analyzing the cost effectiveness of existing or past marketing efforts  Providing customers with flexibility in purchasing company products or services Copyright © 2014 by Sports Career Consulting, LLC

14. LESSON 2.4 What is SEM? Primary Functions of Marketing In July of 2014, Under Armour bumped its annual forecast for sales for the second time, citing "increased confidence" in its footwear and international businesses. Copyright © 2014 by Sports Career Consulting, LLC

15. LESSON 2.4 What is SEM? Primary Functions of Marketing Budgets and projections/forecasts are never an exact science. The 2013 summer release of the film Star Trek Into Darkness was forecast to break the $100 million barrier but made just $84 million, not good news for the studio after budgeting a reported $200 million to produce the movie. Copyright © 2014 by Sports Career Consulting, LLC

16. LESSON 2.4 What is SEM? Primary Functions of Marketing The US Army chose to end it NASCAR sponsorship after the Air National Guard spent $650,000 to sponsor a 2010 NASCAR Sprint Cup race that resulted in just 439 recruitment leads, none of which ended up joining the Army Copyright © 2014 by Sports Career Consulting, LLC

17. LESSON 2.4 What is SEM? Primary Functions of Marketing Like many professional sports franchises, MLB’s Washington Nationals offer payment plans for customers purchasing ticket packages. According to the team’s website, the Nats’ “Grand Slam E-Z Payment Plan allows season ticket holders to pay a fraction of the total cost of their tickets in easy monthly payments. This is available for either Full, Half, or Partial Season Ticket Plans.” Copyright © 2014 by Sports Career Consulting, LLC

18. LESSON 2.4 What is SEM? Copyright © 2014 by Sports Career Consulting, LLC

19. LESSON 2.4 What is SEM? Primary Functions of Marketing  Cultivating prospective buyers (or leads) in a market segment  Conveying the features, advantages and benefits of a product or service to the prospective buyer  Closing the sale Copyright © 2014 by Sports Career Consulting, LLC Selling: Communicating with consumers to assess and fill their needs, as well as anticipating future needs

20. LESSON 2.4 What is SEM? Primary Functions of Marketing  Many professional sports teams utilize a call center to revenue generated by ticket sales  A call center is a physical location where calls are placed, or received, in high volume for the purpose of sales, marketing, customer service; typically through the use of telemarketers  Call centers employ a staff to perform telemarketing activity with the goal of selling ticket packages over the telephone Copyright © 2014 by Sports Career Consulting, LLC

21. LESSON 2.4 What is SEM? Primary Functions of Marketing The University of Minnesota athletics department outsourced their ticket sales operation to a third party organization (Aspire Group) to help boost ticket sales for Gopher athletic events. Aspire deployed a full-time sales staff to work in Minneapolis on the effort. Copyright © 2014 by Sports Career Consulting, LLC

22. LESSON 2.4 What is SEM? Primary Functions of Marketing Copyright © 2014 by Sports Career Consulting, LLC In 2014, The University of Texas also contracted The Aspire Group to manage the program’s athletic ticket sales and service, a program that generates more than $40 million in ticket revenue each year according to the Sports Business Journal.

23. LESSON 2.4 What is SEM? Primary Functions of Marketing Marketing Information-Management: Gathering and using information about customers to improve business decision making Copyright © 2014 by Sports Career Consulting, LLC Professional sports teams began offering smaller ticket packages (half-season, quarter-season, five-game packages) after determining through customer research that full season ticket plans were often too costly and/or time consuming for many fans to purchase

24. LESSON 2.4 What is SEM? Primary Functions of Marketing As visitors pass through the turnstiles at Disneyland in California, guests are randomly selected to answer interview questions from friendly staff members equipped with hand held data recording devices. This provides Disney management with up to date information about park guests, such as where they are from, how many are in their group, and how many times they have visited the theme park in the past. Copyright © 2014 by Sports Career Consulting, LLC

25. Primary Functions of Marketing Product/Service Management: Designing, developing, maintaining, improving, and acquiring products or services so they meet customer needs Copyright © 2014 by Sports Career Consulting, LLC LESSON 2.4 What is SEM?

26. LESSON 2.4 What is SEM? Primary Functions of Marketing One of Nike’s product management efforts includes the “Nike Field Tester Program” in which selected applicants will wear Nike shoes for typically 4-8 weeks. Testers keep a daily written account of information relating to the product. Also, testers are required log the number of hours the shoes were worn each day, the surfaces shoes were worn on, observations regarding the shoe’s fit, performance and durability. Copyright © 2014 by Sports Career Consulting, LLC

27. LESSON 2.4 What is SEM? Primary Functions of Marketing Executives from professional sports teams are always working to improve their product, recognizing the importance of fielding a competitive team to meet the demands of consumers (fans) Copyright © 2014 by Sports Career Consulting, LLC

28. LESSON 2.4 What is SEM? Following in the footsteps of the popular “app” ecosystem which allows anyone to create games for mobile devices, Microsoft announced that the release of its Xbox One gaming console would allow developers to create their own games Copyright © 2014 by Sports Career Consulting, LLC Primary Functions of Marketing

29. What is SEM? LESSON 2.4 REVIEW (ANSWERS) 1) Describe the seven functions of marketing Copyright © 2014 by Sports Career Consulting, LLC 1- Pricing 2- Distribution 3- Promotion 4- Financing 5- Selling 6- Marketing information-management 7- Product and service management