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The Basics of Marketing: Understanding the Marketing Mix

Explore the fundamentals of marketing including the impact of advertising, celebrity endorsements, and the essential components of the marketing mix. Learn how businesses create and maintain satisfying exchange relationships through product development, distribution, pricing, and promotion.

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The Basics of Marketing: Understanding the Marketing Mix

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  1. Chapter 1 Marketing Basics Take out pen/pencil

  2. Marketing • How many of you think ads effect your decisions of what to buy?

  3. Marketing • Wayne’s World • Talladega Nights

  4. Think about it… • Working in groups of 2 or 3, identify 4 advertising campaigns that feature celebrities or athletes. • Discuss how these campaigns have affected your thinking about the product • If you were in the market for the product, would you buy the celebrity-endorsed brands? Why or why not?

  5. What is Marketing? • Marketing– the creation and maintenance of satisfying exchange relationships. • Creation—product development • Maintenance—must continue as long as the business operates • Satisfaction—meet the needs of the business and customers • Exchange relationship—when people both give and receive something of value

  6. Marketing Mix • Describes how a business blends the four marketing elements of product, distribution (place), price, and promotion. • Used to be called the “4 P’s of Marketing”

  7. Marketing Mix • Product is what a business offers customers to satisfy needs • Examples—goods like athletic shoes or a service like video rentals or entertainment (e.g., comedian) • Distribution—involves the locations and methods used to make products available to customers • Examples—retail stores, internet, shipped by UPS

  8. Marketing Mix • Price—the amount that customers pay for products • Promotion—describes ways to make customers aware of products, encourage them to buy, and increase customer satisfaction • Advertising, publicity, personal selling, & public relations

  9. Marketing Mix Examples • Sports Industry – Super Bowl • Product? • Distribution? • Promotion? • Price? • Entertainment Industry – State Fair • Product? • Distribution? • Promotion? • Price?

  10. Friday 1/9 • Please get your Marketing Mix graphic organizer out from yesterday • Please grab a Marketing Mix review sheet from the front

  11. Marketing Mix Review • Describe the Marketing Mix • What are examples of the Marketing Mix for the Nebraska State Fair?

  12. Core Standards of Marketing • Distribution—Determining the best way to get a company’s products or services to customers. • Sony sells through Best Buy • Apple Store • Marketing-Information Management—Gathering and using information about customers to improve business decision making • Domino’s made small pizza for Japan and had toppings like corn and tuna.

  13. Core Standards of Marketing • Pricing—Establishing and communicating the value or cost of goods and services to customers • Directly related to consumer demand in SEM (supply and demand – have to understand Economics!) • Product/Service Management—designing, developing, maintaining, improving, and acquiring products or services so they meet customer needs and wants • Fisher Price testing new toy ideas with children and parents

  14. Core Standards of Marketing • Promotion—advertising and other forms of communication to distribute information about products, services, images, and ideas to achieve a desired outcome. • Coupons on backs of tickets, Husker Basketball 70 points for a Runza

  15. Core Standards of Marketing • Selling—any direct and personal communication with customers to assess and satisfy their needs and wants • Also involves thinking of future needs • Example—musicians or comedians traveling and visiting radio stations to sell songs and/or promote shows, coaches doing radio/TV shows • Can also include purchases made through the internet with no face-to-face communication whatsoever

  16. Core Standards of Marketing • Financing—not only budget for its own marketing activities, but also to provide customers with assistance in paying for the company’s products or services • GMAC financing, payment options • NOTE: financing is not one of the 6 core standards of marketing, it is closely related! **Everything you learn about marketing will involve at least one of these standards!**

  17. Class Activity • How did the Core Standards of Marketing go into the sale/purchase of this sweatshirt? • Description • There’s nothing better than seeing your Cornhuskers dominating on the gridiron! You make it a point to go to every home game without hesitation. But when the temperature begins to dip, you need a little extra Nebraska spirit to keep you warm. This Turf fleece pullover hoodie is all you need to get through those bitter cold games. This hoodie features the school name in a tackle twill felt applique with an embroidered team name and logo on the chest, as well as an embroidered logo on the hood. Stay comfy this winter while you root for your Cornhuskers in this hoodie! • 80% Cotton/20% Polyester • Contrast color side panels • Front pouch pocket • Heavyweight hoodie suitable for cold temperatures • Hood with shoelace drawstring • Imported • Officially licensed collegiate product • Quality embroidery • Rib-knit cuffs & waist • Tackle twill felt applique • Team colors and logo

  18. Class Activity • How did the core marketing standards go into the sell/purchase of Mrs. Crabtree’s shoes?

  19. Group Activity • With your “sports merchandise”— • Tell how the core marketing standards went into this sale (or the purchase) • Ideas for some of you on price—what could you have sold it for “then”, and what could you sell it for “now”.

  20. Do you recognize the following promotional messages? • “Can you hear me now?” • “Buy it. Sell it. Love it.” • “Live in your world, play in ours.” • “Just do it.” • “I’m lovin’ it.” • “The happiest place on earth.” Verizon Wireless eBay Sony Playstation Nike McDonald’s Disneyland

  21. Example-Puck Hat

  22. Assignment: • On a separate sheet of paper: • Think of three recent sports or entertainment purchases you have made. Identify how each purchase involved the seven key marketing functions.

  23. Product/Service Management Distribution Selling Marketing-Information Management Financing Pricing Promotion Core Standards of Marketing

  24. It’s Monday  • You’ll need a notebook (or paper) today • Sports Marketing • Target Markets • Gross Impressions

  25. What is SPORTS MARKETING? • Sports Marketing—using sports to market products. • Wide array of products (food, apparel, equipment, automobiles)

  26. DETERMINE THE TARGET MARKET • TARGET MARKET—A specific group of people you want to reach • Demographics—information about customers • Age range, marital status, gender, educational level, attitudes, beliefs, income • Disposable Income--$$ that can be spent freely • Other reasons people buy items—past experience, referral by a friend, identification with an attitude

  27. Razors Alcohol ESPN Phone Cars Video Games Sports Equip. Sports Drinks Shoes Muscle Enhancements Axe Body Spray Male Shows/Products Advertised

  28. Remind me to read announcements!!!!! Finish these Notes (3 slides)—sooooo, take out your notes Creative “logo” project Current Events…. Steve Irwin “Crocodile Hunter” was killed yesterday by a stingray Who beat Andre Agassi in his last tennis match of his career? What football player was shot 3 times this weekend? Tuesday Benjamin Becker (German) Chargers Linebacker Steve Foley

  29. Spending Habit of Fans • Why is it important to know this? • Maximize profits • Example—Price people will spend on a ticket depends on: • Interest of the target market • National importance of the event (ex. –National title game) • Popularity of the participating athletes (ex.- Heat v. Thunder) • Rivalry associated with the contest (ex.-NU v. Texas) • Example—fans are willing to pay for team (or celebrity) identified clothing or expenses (as well as food and travel to & from a game)

  30. MARKETING STRATEGIES • Sports Logos—Why do people wear them? • Show fan loyalty • Value of merchandise is increased in the eyes of the buyer • Some feel more successful themselves if they wear an endorsed product

  31. Marketing Strategy:GROSS IMPRESSION • --The number of times per advertisement, game, or show that a product or service is associated with an athlete, team, or entertainer. • Backs of shoes • Scene in a movie (Talladega Nights) • License-plate holder on a car • Media mentioning a player, team or product (example Heisman Trophy) • Fiesta Bowl (Tostitos) • YOUR BRAIN RECORDS THAT IMAGE

  32. TIMING • Popularity is based almost completely on continued winning. • Fans want to be associated with winning • 15 minutes of fame • Katherine Webb • Reality shows

  33. ASSIGNMENT • Design a new logo for a major sporting goods manufacturer. • Explain what the logo represents and why it will be successful. • It can NOT resemble current logos.

  34. HOMEWORK • Watch a college or professional sporting event on TV. Select a sports brand represented in this presentation and keep track of how manygross impressions were made during the telecast. • YOU ONLY NEED TO WATCH ½ THE GAME

  35. LIFE WITHOUT JORDAN • Wall Street Journal page 15

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