What Is Marketing?

2. What Is Marketing? Economics of Marketing 2

3. 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

4. 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

5. Marketing Defined Because of competition, an organized marketing plan is essential. marketingthe process of developing, promoting, and distributing products, or goods and services, to satisfy customers’ needs and wants Goods are tangible items, such as sports equipment. Services are intangible products, such as theater tickets. 5

6. Marketing Defined Successful organizations follow a marketing concept. marketing conceptidea that organizations need to satisfy their customers while also trying to reach their organizations’ goals The first step in creating a marketing concept involves identifying the market. marketpotential customers with shared needs who have the desire and ability to buy a product 6

7. Marketing Defined Organizations spend lots of money to learn about their customers needs and wants. needsa lack of basic necessities such as food, clothing, or shelter wantsthings that people desire based on personality, experiences, or information about a product Having a clear picture about the target market makes developing a marketing plan easier to accomplish. target marketspecific group of consumers that an organization selects as the focus of its marketing plan 7

8. Marketing Defined The United States census provides useful information about the demographicsof our nation. demographicsstatistics that describe population in terms of personal characteristics Businesses use demographic information to develop their marketing plans. 8

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

10. The Marketing Mix Marketing mix strategies involve product, price, place, and promotion decisions. channel of distributionpath a product takes from the producer to the consumer Place decisions include determining a channel of distribution. 10

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

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. For more information on sports and entertainment marketing, go to marketingseries.glencoe.com. Buzz Power “Word-of-mouth ramped up to warp speed” is one definition of Internet buzz, says BusinessWeek. It’s the marketing by-product of e-mail, instant messaging, bulletin boards, and chat rooms. 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. 12