What Is Marketing? Economics of Marketing 2

Chapter Objectives Define marketing. Explain the marketing concept. Define demographics. Explain the marketing mix. Explain economics and free enterprise. Identify intellectual property rights. Explain the different types of business ownership. Explain the economic impact of sports and entertainment. 3

The Importance of Sports and Entertainment Marketing The sports and entertainment industries have become two of the most profitable industries in the United States. 4

Marketing Defined marketing Because of competition, an organized marketing plan is essential. Marketing: 5 Goods are tangible items, such as sports equipment. Services are intangible products, such as theater tickets.

Marketing Defined marketing concept Successful organizations follow a marketing concept. marketing concept: 6 market The first step in creating a marketing concept involves identifying the market. Market:

Marketing Defined needs wants Organizations spend lots of money to learn about their customers needs and wants. 7 target market Having a clear picture about the target market makes developing a marketing plan easier to accomplish. target market: Needs: Wants:

Marketing Defined demographics The United States census provides useful information about the demographics of our nation. 8 Demographics: Businesses use demographic information to develop their marketing plans.

The Marketing Mix marketing mix Marketers use a tool to develop strategies called the marketing mix. 9 marketing mix a combination of four basic strategies known as ____________________ P___________________ P___________________ P___________________ P___________________ To be effective, all 4 Ps in a marketing plan must focus on the target market.

The Marketing Mix Marketing mix strategies involve product, price, place, and promotion decisions. 10 channel of distribution: channel of distribution Place decisions include determining a channel of distribution.

P P P P The Marketing Mix—The Four Ps 11 involve the goods, services, or ideas used to satisfy consumer needs. P Decisions involve the exchange process between the customer and the seller. P Decisions involve making the product available to the customer. P Decisions involve how the goods or services are communicated to the consumer. P Decisions

Operating an e-tail business on an electronic channel—the Web—can be costly, due to design, delivery, returns, and operating expenses. Though Many larger dot-com companies crashed in the 1990’s, small stores like Harris Cyclery of West Newton, Massachusetts, actually increase sales using a basic Web site. Today, a third of Harris’s bicycle business rides in on the Web to get hard-to-find parts and personal service. Describe an e-business’s home page to your class after viewing one through marketingseries.glencoe.com.marketingseries.glencoe.com Buzz Power 12 The influence of buzz is so powerful that researchers monitor consumer opinions online. Positive buzz can increase profits for products, books, films, TV, music, and fashion, and determine popularity of athletes and celebrities. With public resistance to banner ads and pop-ups, a little buzz “zooms” a long way. “Word-of-mouth ramped up to warp speed” is one definition of Internet buzz, says BusinessWeek. It’s the marketing by-product of , instant messaging, bulletin boards, and chat rooms.

Discuss with a partner Define marketing and the marketing concept. Explain the concept of a market. What is the marketing mix and what is its relationship to a target market?

Economic Basics economics The economics of marketing sports and entertainment have a great impact globally as well as locally. 14 Economics: GDP A measure of economic growth is the gross domestic product (GDP). GDP:

Economic Basics Profit Profit allows companies to stay in business. 15 Profit: Competition: As with most businesses, there is a financial risk involved with sports and entertainment events. Competition Competition is the basis of the free enterprise system.

Property Ownership and Intellectual Property Rights Inherent in the free enterprise system is the right to own property and start a business. 16 Intellectual property rights are protected by the following: Copyrights Copyright: Patents Trademarks

Types of Business Ownership Types of business ownership include: 17 S P C S

Locations benefit economically from sports and/or entertainment events and marketing. On a local level, sporting events and entertainment venues economically impact areas in which they operate because they draw audiences. Hosting the Olympics has a huge economic impact on a region before, during, and after the event. 18 Economic Impact

Discuss with a partner Explain the concept of economics. What are three characteristics of a free enterprise system? What is the economic impact of sports and entertainment events on a community?

Define and give an example of the term marketing. 20 Explain the marketing concept. Describe the concept of demographics. Explain the marketing mix. Discuss with a partner continued

Explain the concept of economics. 21 Name four types of business ownership. Define intellectual property rights. Discuss with a partner continued

Describe how sports and entertainment impact national and local economies. 22 Critical Thinking Checking Concepts 8.

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