1. 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

2. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 2 Lesson 4.1 The Marketing Concept Goals Explain the central focus of the marketing concept. Explain the reasons for increased sports and entertainment options.

3. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 3 Terms marketing concept productivity breakeven point opportunity cost

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

5. 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.

6. Sports and Entertainment Marketing © Thomson/South-Western Maintain Relationships High competition in sports and entertainment industry Marketing strategies must include: Excellent customer service Appropriate prices (affordable & willing to pay) High quality events Chapter 4 Slide 6

7. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 7 What is the most important aspect of marketing?

8. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 8 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

9. Sports and Entertainment Marketing © Thomson/South-Western Increased Demand for Sports & Entertainment Events To continue to meet customer demands marketers must 1.Keep up with current trends 2.Monitor competition 3.Make improvements Chapter 4 Slide 9

10. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 10 Customer Focus productivity rate at which companies produce goods or services in relation to the amount of materials and number of employees utilized

11. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 11 1. identify customer needs location 2. provide products perceived as superior 3. maintain successful customer relationships 4. offer the appropriate marketing mix product price promotion place Steps to a successful marketing strategy

12. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 12 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

13. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 13 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.

14. Sports and Entertainment Marketing © Thomson/South-Western Opportunity Costs Many American’s are opting to stay at home due to: Rising fuel costs Traffic jams Limited time to relax (busy lifestyles) On-line forms of entertainment will grow due to these factors (and convenience) Chapter 4 Slide 14

15. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 15 Explain the reasons for increased sports and entertainment options.

16. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 16 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.

17. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 17 Terms economic market benefits derived comparative advantage emotional purchases rational purchases patronage purchases

18. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 18 UNDERSTAND BUYER BEHAVIOR economic market all of the consumers who will purchase a product or service

19. Sports and Entertainment Marketing © Thomson/South-Western UNDERSTAND BUYER BEHAVIOR 2 major goals of marketing 1.Determine what customers want 2.How much customers are willing to pay To achieve these goals marketers must understand Actions of consumers Spending habits Buying motives Chapter 4 Slide 19

20. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 20 Consumer Spending Habits benefits derived the value people believe they receive from a product or service Benefits derived in college sports may include: Enjoyment of watching the game Feeling of pride wearing team sweatshirt

21. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 21 the capability to produce products or services more efficiently and economically than the competition When a company can do this, they can pass off savings to it’s customers in the form of lower prices comparative advantage

22. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 22 Consumer Wants and Needs Abraham Maslow ‘hierarchy of needs’ identifies five human areas of needs Frequently referenced by markers when studying human behavior in relation to customer needs and wants

23. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 23

24. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 24 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 BUYING MOTIVES

25. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 25 based on loyalty to a particular brand or product Ex: Mrs. Shipley will only buy Nike Basketball sneakers patronage purchases BUYING MOTIVES

26. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 26 What is meant by benefits derived?

27. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 27 GATHER INFORMATION Marketers are often involved in every step of the decision-making process.

28. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 28 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.

29. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 29 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

30. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 30 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:

31. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 31 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

32. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 32 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

33. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 33 Explain the difference between primary and secondary data.

34. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 34 Lesson 4.3 Target Markets Goals Define target market and market segment. Describe how businesses use market segmentation.

35. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 35 Terms target market market segment market share

36. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 36 DETERMINE THE TARGET MARKET target market specific group of consumers you want to reach

37. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 37 Focus Marketing Efforts market segment a group of consumers within a larger market who share one or more characteristics Consumers belong to multiple market segments. Marketers must identify the market segment to which they want to sell.

38. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 38 Meet Target Market Needs Market segmentation data can improve business decision making. number of potential customers customer income level level of interest in product or service

39. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 39 What is a target market? Provide an example of a company’s target market.

40. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 40 MARKET SEGMENTATION Markets may be segmented in many ways. 1. geographic location 2. demographics 3. psychographics 4. benefits derived 5. product usage Behavioral Based

41. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 41 Geographic Segmentation divides markets into physical locations

42. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 42 Demographic Segmentation information that can be measured age income profession gender education marital status household size

43. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 43 Psychographics Segmentation characteristics that cannot be physically measured values interests lifestyle choices

44. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 44 Behavioral-Based Segmentation behavioral-based segmentation focuses on a customer’s attitude toward products and services product usage what products you use and how often product benefits the positive experiences or associations people derive from using a product or service

45. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 45 Capture a Market Share market share percentage of total sales of a product or service that a company expects to capture in relation to its competitors

46. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 46 List and describe four types of market segmentation.

47. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 47 Lesson 4.4 Customer Service Goals Explain the importance of outstanding customer service. Explain what it means to establish a service culture.

48. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 48 Terms customer service gap values-based culture

49. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 49 OUTSTANDING SERVICE EQUALS SUCCESS Business success depends on excellent customer service. Customer relationships should continue after the sale of goods and services.

50. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 50 A Track Record for Great Customer Service customer service gap the difference between customer expectations and the services actually received Customers are likely to tell at least 10 people about their poor customer service experiences.

51. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 51 Training Programs That Make an Impact Individuals hired for customer service positions should have a positive attitude and look forward to meeting the public. Proper employee training in proactive, efficient and courteous customer service is critical to providing a pleasant experience for customers.

52. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 52 Why is outstanding customer service critical to a business in a highly competitive marketplace?

53. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 53 CREATING A SERVICE CULTURE Gallery Furniture has effective customer service principles. They are: Demonstrate a values-based culture that is rooted in high performance and excellent customer service.

54. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 54 Passion results in energy. Demonstrate pride in every sale. Remember the value of long-term positive relationships. Follow the “FAST” (Focus, Action, Search, Tenacity) strategy.

55. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 55 How May I Help You? “It’s not my department” should be replaced with “How may I help you?” mystery guest hired by an outside firm to have an individual assess the performance of a business feedback on the individual’s experience as a customer is provided to the hiring business

56. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 56 Explain what it means to have a values- based culture.

57. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 57 PERFORMANCE INDICATORS EVALUATED Communicate ideas clearly to the judge (potential investor). Analyze all relevant data for proposing a new celebrity-theme restaurant.

58. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 58 Interpret demographics and financial data for a proposed business. Understand consumer demand and the existing competition. Demonstrate critical thinking and problem- solving skills necessary to propose and operate a successful business.

59. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 59 THINK CRITICALLY 1.Why is a business plan necessary for a popular celebrity who wants to open a restaurant in a city where he or she is well liked? 2.Give three examples of successful celebrity-theme restaurants and what makes them popular.

60. Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 60 4.What advantage does a professional athlete have over an average citizen when opening a restaurant? 3.What would be a good grand opening event to attract the maximum amount of attention to the new restaurant?