The Marketing Concept

1. 4 Sports and Entertainment Marketing Class – Mr. Sherpinsky Council Rock School District The Marketing Concept

2. Winning Strategies Frito-Lay Reaches Teens • U.S. teenagers spend $175 billion annually • Teens are trendsetters and early adopters • Teens offer a potential lifetime of purchasing for the products they start to use when they are young • To obtain teen customers, Frito-Lay initiated a variety of innovative marketing techniques involving music partnerships • This strategy resulted in a huge return on investment

3. Section 4.1 Goals • Explain the central focus of the marketing concept. • Explain the reasons for increased sports and entertainment options.

4. Key Terms • Marketing concept • Productivity • Breakeven point • Opportunity cost

5. Warm-up Think of a product that you like. What can be done to make that product better!

6. The Marketing Concept • Marketing is an important business function. • You are a major part of the process • A business that focuses on addressing customer needs is following the marketing concept

7. The Marketing Concept • Keeping the focus on the customer’s needs for a product or service

8. Maintain Relationships • Successful customer relationships are critical to the marketing concept. • Customers are unique. Know who you are dealing with. • Customer satisfaction is the bottom line for successful marketing relationships.

9. Mr. Plow Complete the Handout by end of class!

10. Customer Satisfaction The Bottom Line……. • How to beat the competition….. • Is there a place that you buy from regularly? Why? • Do you buy the product no matter what the cost?

11. Video: Consumer Satisfaction

12. What is the most important aspect of marketing?

13. Increased Sports & Entertainment Options • U.S. citizens have more discretionary income than in the past. • Derived from an increase in the standard of living • drives up demand for sports and entertainment • increases competition • more options in marketplace

14. Customer Focus • productivity • rate at which companies produce goods or services in relation to the amount of materials and number of employees utilized

15. Customer Focus • successful marketing strategy • identify customer • needs • location • provide products perceived as superior • maintain successful customer relationships • offer the appropriate marketing mix • product • price • promotion • place (location)

16. 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

17. 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.

18. Video: Opportunity Cost

19. Opportunity Cost: Worksheet • Fixed and Variable Cost Analysis Worksheet

20. Class Activity: Encore • Complete pages 96, problems 1, 2, 3, 4

21. Explain the reasons for increased sports and entertainment options.

22. Lesson 4.2Discover 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.

23. Terms • economic market • benefits derived • comparative advantage • emotional purchases • rational purchases • patronage purchases

24. Understand Buyer Behavior • economic market • all of the consumers who will purchase a product or service

25. Consumer Spending Habits • benefits derived • the value people believe they receive from a product or service

26. Consumer Spending Habits • comparative advantage • the capability to produce products or services more efficiently and economically than the competition

27. Consumer Wants and Needs • hierarchy of needs • identifies five human areas of needs

28. Consumer Wants and Needs

29. Buyer Motives • emotional purchases • spending with little thought during emotional times

30. Buyer Motives • rational purchases • define wants and needs • assess priorities and budget • conduct research • compare alternatives • make a well thought out purchase

31. Buyer Motives • patronage purchases • based on loyalty to a particular brand or product

32. What is meant by benefits derived? The value that people believe they receive from buying a product or service

33. Think Critically! What forms of entertainment will continue to grow due to an increase in fuel costs and other current trends? Online and other forms of home entertainment

34. Gather Information • Marketers are often involved in every step of the decision-making process.

35. Generation Research Research at least 6 different groups: Baby Boomers, Generation X, etc…

36. Gather Information • The decision-making process involves the following steps. • recognize a need or a want • conduct product research • evaluate choices • decide what to purchase • evaluate the product after the purchase

37. 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

38. Information Needed for Marketing Decisions • The business environment impacts consumer spending as follows: • economic uncertainty reduces consumer spending • marketplace competition provides consumers with choices • technological advances have impacted how consumers research and buy products

39. 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

40. Types of Information for Businesses • primary data • obtained for the first time and specifically for the particular problem or issue being studied • information previously collected for another purpose but is now found useful in the current study • secondary data

41. Types of Information for Businesses • primary data and secondary data

42. Explain the difference between primary and secondary data.

43. Class Activity: Census.Gov • Complete Census Worksheet for Market Information

44. Lesson 4.3Target Markets Goals • Define target market and market segment. • Describe how businesses use market segmentation.

45. Terms • target market • market segment • market share

46. DETERMINE THE TARGET MARKET • target market • specific group of consumers you want to reach

47. Focus Marketing Efforts • market segment • a group of consumers within a larger market who share one or more characteristics • consumers can belong to multiple market segments. • marketers must identify the market segment to which they want to sell.

48. 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 • Location of potential customers

49. What is a target market? Provide an example of a company’s target market.

50. Market Segmentation • Markets may be segmented in many ways. • geographic location • demographics • psychographics • behavior