Sports and Entertainment Unit 2 Using sports to reach the customer
The Marketing Concept Keeping a business’ focus on satisfying customer needs Half of every dollar spent pays for marketing costs Relationship marketing: listening to customers and carefully monitoring the latest consumer trends. Customer satisfaction is the bottom line for marketing relationships. Question: How does Mizzou develop a relationship with its fan base? For Mizzou fansFor Mizzou fans Productivity(rate at which companies produce goods in relation to the amount of materials and number of employees) doesn’t matter if you aren’t producing what customers want
Increased options A higher standard of living in the US has resulted in more discretionary income(income left over after paying for necessities like food, clothing and shelter) This has caused an increased demand for sports and entertainment events as well as related merchandise. Statistics
Economic issues Breakeven point-minimum number of sales/attendance required to cover all expenses for organizing, promoting, and running the event. Opportunity cost-Value of the next best alternative that you forgo when making a choice, or the benefits you are giving up. ◦ People look at convenience, pleasure, dollar cost, and opportunity cost when deciding to attend an event. Comparative advantage-the capability to produce products of services more effectively and economically than the competition
Buyer behavior Economic market-all consumers who will purchase a product of service ◦ Goals of marketing Determine what consumers want Determine how much they will pay Spending habits ◦ Price paid determined by: Degree of interest Popularity of athletes or celebrities Rivalry Benefits derived (value people believe they receive)
Consumer Wants/Needs and Maslow Hierarchy of Needs ◦ Lowest-physiological needs- food, water, sleep, shelter ◦ Security needs-physical and economic security ◦ Social needs-desire for friends family and love ◦ Self-esteem needs-gain recognition and respect from others, feeling competent ◦ Self-Actualization needs- realization of one’s full potential and self-fulfillment The challenge is to design a marketing campaign because different people are at different levels
Buying motives Emotional purchases-spend with little thought during emotional highs and lows. ◦ When your team is winning you are emotionally influenced to pay higher prices for tickets and merchandise ◦ Think of a recent emotional purchase you have made. Rational motive-when individuals recognize needs and wants, assess their priorities and budget, conduct research and compare alternatives. ◦ A runner shops around for the shoes that provide the best fit, support, flexibility, and durability. ◦ Think of a recent rational purchase you have made Patronage purchases-based on loyalty to a particular brand or product ◦ Reinforced by endorsements by favorite athletes or positive experience with the brand. ◦ Think of a recent patronage purchase you have made
Target markets Specific group of customers you want to reach. Major League baseball Market segment-group of customers within a larger market who share one or more characteristics ◦ Segmentation by: Geographics-physical location Demographics-age, gender, marital status, education/income, ehtnicity Psychographics-values, interests, and lifestyle choices Behavioral based-two ways Product usage Benefits derived
Market Share Percentage of total sales of a product or service that a company expects to capture in relationship to its competitors Marketshare for smartphones
Customer Service Customer service gap-difference between customer expectations and service actually received. Creating a service culture ◦ Demonstrate a values based culture that is rooted in high performance and excellent customer service ◦ Follow FAST(focus, action, search tenacity) ◦ Passion results in energy ◦ Demonstrate pride in every sale ◦ Remember the value of long-term positive relationships Ten best and worst companies in customer service Ten best and worst companies in customer service