Sports and Entertainment Marketing © Thomson/South-Western Do Now Define marketing. What is the most important aspect of marketing? Chapter 4 Slide 1 What are some things marketers do to keep customer satisfaction high?

Sports and Entertainment Marketing © Thomson/South-Western ChapterChapter Hit a Home Run with Customers 4.1 The Marketing Concept 4.2 Discover What People Want 4.3 Target Markets 4.4 Customer Service 4

Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 3 Lesson 4.1 The Marketing Concept Goals Explain the central focus of the marketing concept. Explain the reasons for increased sports and entertainment options.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 4 THE MARKETING CONCEPT marketing concept keeping the focus on the customer’s needs for a product or service About half of every consumer dollar spent pays for marketing costs. Satisfying customer needs is the most important aspect of marketing.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 5 Maintain Relationships Successful customer relationships are critical to the marketing concept. Customer satisfaction is the bottom line for maintaining successful marketing relationships.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 6 What is the most important aspect of marketing?

Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 7 INCREASED SPORTS AND ENTERTAINMENT OPTIONS U.S. citizens have more discretionary income than in the past. drives up demand for sports and entertainment increases competition

Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 8 Customer Focus productivity rate at which companies produce goods or services in relation to the amount of materials and number of employees utilized

Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 9 identify customer needs location provide products perceived as superior maintain successful customer relationships offer the appropriate marketing mix product price promotion location successful marketing strategy

Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 10 Weekend Entertainment Choices breakeven point the minimum sales and attendance required to cover all of the expenses of organizing, planning and promoting the event profit revenue earned beyond the breakeven point

Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 11 Opportunity Cost opportunity cost the value of the next best alternative that you forgo when making a choice The value is measured in terms of the benefits that you are giving up.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 12 List expenses of a planned entertainment event along with the planned ticket prices. Create Excel spreadsheet to identify the breakeven point in dollars & attendees. How can we ensure revenues exceed the breakeven point?

Sports and Entertainment Marketing © Thomson/South-Western DO NOW: Categorize ten recent purchases as a need or want. Chapter 4 Slide 13

Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 14 Lesson 4.2 Discover What People Want Goals Explain the importance of understanding buyer behavior when making marketing decisions. List and describe means of collecting marketing information for use in decision making.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 15 UNDERSTAND BUYER BEHAVIOR economic market all of the consumers who will purchase a product or service

Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 16 Consumer Spending Habits benefits derived the value people believe they receive from a product or service

Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 17 the capability to produce products or services more efficiently and economically than the competition comparative advantage

Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 18 Consumer Wants and Needs hierarchy of needs identifies five human areas of needs

Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 19

Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 20 spending with little thought during emotional times rational purchases define wants and needs assess priorities and budget conduct research compare alternatives make a well thought out purchase emotional purchases

Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 21 based on loyalty to a particular brand or product patronage purchases

Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 22 What is meant by benefits derived?

Sports and Entertainment Marketing © Thomson/South-Western Activity: Categorize your 10 recent purchases from the list you created yesterday with a partner as Emotional Patronage Rational Chapter 4 Slide 23

Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 24 GATHER INFORMATION Marketers are often involved in every step of the decision-making process. Help a consumer recognize a need, provide info, assist with purchase, and follow up after the sale.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 25 recognize a need or a want conduct product research evaluate choices decide what to purchase evaluate the product after the purchase The decision-making process involves the following steps.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 26 Information Needed for Marketing Decisions Information about consumers that is important to consider include demographics shopping behaviors how consumers spend money product and brand preferences frequency of purchases

Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 27 economic uncertainty reduces consumer spending marketplace competition provides consumers with choices technological advances have impacted how consumers research and buy products The business environment impacts consumer spending as follows:

Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 28 Sources of Information for Businesses internal sources a business’s own customer records, sales records, production records, and operation records external sources government reports, trade and professional organizations, business publications, commercial data, and information services

Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 29 obtained for the first time and specifically for the particular problem or issue being studied secondary data information previously collected for another purpose but is now found useful in the current study primary data

Sports and Entertainment Marketing © Thomson/South-Western Activity: 1.Explain the importance of understanding buyer behavior when making marketing decisions in your own words on the back of your 10 recent purchases – TURN IN 2.Complete 4.2 Questions document To be finished for homework if necessary Chapter 4 Slide 30

Sports and Entertainment Marketing © Thomson/South-Western Activity: Describe the process you would go through when purchasing a new car in paragraph form. You must clearly outline the steps of the decision-making process as well as the following concepts: market, benefits derived, comparative advantage, and the type of purchase. Chapter 4 Slide 31