Sports Marketing & Entertainment

Marketing
The creation & maintenance of satisfying exchange
relationships
Marketing Mix
Blending the four marketing elements of product,
distribution, price & promotion
Product
What a business offers customers to satisfy needs
Distribution
The locations & methods used to make products
available to customers
Price
The amount that customers pay for products & services (value)
Promotion
Means of making customers aware of products &
encourages them to buy
Discretionary Income
The amount of money individuals have available to spend
after paying for the necessities of life & other fixed expenses, such as housing/car payments
Marketing Information Management
Gathering & using info about customers to improve business decision making
Product/Service Management
Designing, developing, maintaining, improving &
acquiring products or services for the purpose of meeting customer needs & wants
Selling
Any direct & personal communication with customers to
assess and satisfy their needs
Financing
Requires a company to budget for its own marketing
activities & to provide customers with assistance in paying for the company’s products or services
Demographics
Common characteristics of a group, such as
age/gender
Gross Impression
The number of times per advertisement, game, or show
that a product or service is associated with an athlete, team, or entertainer
Sports Marketing
Using sports to market products
Entertainment
Whatever people are willing to spend their money & spare
time viewing rather than participating in
Entertainment Marketing
Influencing how people choose to spend their time &
money on entertainment
Ratings
The number of viewers the programming attracts
Profit
The amount of money remaining from revenues after all
expenses are paid
Profit Motive
Making decisions to use resources in ways that result in
the greatest profit
Economics
The study of how goods & services are produced,
distributed, and consumed
Economic Utility
The amount of satisfaction a person receives from the
consumption of a particular product or service
What are the 4 types of Economic Utility?
Form, Time, Place, Possession
Form Utility
When the physical characteristics of a product or service
are improved
Time Utility
The result of making the product or service available when
the consumer wants it
Place Utility
Ensures that the product or service is available where the
consumer wants it
Possession Utility
Results from making the product or service available at an
affordable price
Risk
The possibility of financial gain or loss or personal injury
Risk Management
Preventing, reducing, or lessening the negative impacts of
risk by using the strategies of risk avoidance, risk insurance, risk transfer, and/or risk retention
Liable
The business is legally responsible for damages and might
have to pay for the medical costs and other losses suffered by an injured person
Natural Risk
Weather conditions that cannot be avoided, such as
tornadoes, blizzards, hurricanes, floods, droughts
Human Risk
The employees who work for an organization
Economic Risk
Business risk that can result from changes in the business
environment, such as the economy
Gain/Loss Risk
A classification of risk. There are different types of
gain/loss risk: speculative, pure, controllable,
uncontrollable, insurable, uninsurable
Controllable Risk
A loss that can be prevented or the likelihood of its
occurrence reduced
Insurable Risk
Pure risk for which the changes of loss are predictable &
the amount of the loss can be estimated
What are the strategies for risk management?
Avoidance, Insurance, Transfer, Retention
Risk Avoidance
Sports and entertainment marketers need to plan to avoid risky situations
Risk Insurance
Pays for predictable losses
Risk Transfer
Sports and entertainment marketers need to plan to avoid
Risk Retention
Business assumes the cost of uninsurable risks
Ethics
A system of deciding what is right or wrong in a reasoned
& impartial manner
Principles
The high standards of rules & guidelines in both business
and personal life
Return on Investment
The income from a venture that is distributed to investors
Forecast
A report developed to predict the expenses to be incurred
& revenues to be received from an event
Budget
A plan for how available funds will be spent
Balance Sheet
Shows the company’s assets and its liabilities at a specific
point in time
Income Statement
Shows all revenues received & all expenses incurred over
a specific period of time
Industry
A group of organizations involved in producing or handling
the same product or type of services
Industry Standards
The guidelines & goals set for different industries
Industry Norm
The average expectation within an industry
Industry Trends
A direction, general course following a tendency or style
Ghostwriter
Writer who writes a celebrity’s story in book form for a fee
Literary Agent
Person an author hires who, for a percentage of the book
sales, plans the marketing campaign & appearances
Royalty
A payment to the author of a book of 10% or more of the
price of every copy sold
Sponsorship
Underwriting an event for the purpose of gaining positive
association for a brand with the event, the participants,
and/or the attendees
Camp
Overnight, lengthy, teaching multiple skills, diverse
Clinic
Workshop, 1-2 days, works on one skill
Tourism
Traveling for pleasure
Direct Economic Impact
Total of new spending resulting from the event/attraction
Indirect Economic Impact
The portion of the money spent by visitors on local goods &
services that is in turn spent locally by employers
Niche Travel
Recreational travel/tours planned around a special interest
Ecotourism
Responsible travel to natural areas that conserves the
environment & sustains the well being of the local people
Domestic Visitors
U.S. visitors
Joint-Venture Structure
When 2 groups (including businesses and government)
share the costs and profits of a business
Infrastructure
Water, sewer, roadways, underlying framework of a business
Globalization
International economic relationships
Piracy
Theft of copyrighted material
Marketing Concept
A business keeps the focus of satisfying customer needs
Productivity
The rate at which companies produce goods/services in
relation to the materials/number of employees utilized
Breakeven Point
The minimum attendance & sales required to cover all of
the expenses of organizing and running the event
Opportunity Cost
The value of the next best alternative that you forgo when
making a choice
Economic Market
All of the consumers who will purchase a product/service
Benefits Derived
Value people believe they receive from a product/service
Comparative Advantage
The capability to produce products/services more
efficiently & economically than the competition
Emotional Purchases
Purchases made with little thought during emotional highs
or lows
Rational Purchases
Purchases based upon careful though & sound reasoning
Patronage Purchases
Purchases based on loyalty to a particular brand/product
Maslow’s Hierarchy of Needs Pyramid
Self Actualization- to realize your potential, Self-Esteem- respect, recognition, Social- friends, love, belonging, Security- physical, safety, economic security
Primary Data
Data obtained for the first time & specifically for the
particular problem or issue being studied
External Sources
Information obtained through government reports,
trade/professional organizations, business publications,
commercial data, info services
Internal Sources
Information about customer buying habits include a
business’s own customer records, sales records,
production record, operation records
Secondary Data
Data that has already been collected for some other
purpose but is now found useful in the current study
Target Market
A specific group of consumers you want to reach
Market Segment
A group of consumers within a larger market who share
one or more characteristics
Market Share
The percentage of total sales of a product or service that a
company expects to capture in relation to its competitors
Geographic Segmentation
Divides markets into physical locations, such as Eastern,
Northern, Southern, and Western regions of the United States or the urban and rural areas of a state
Demographic Segmentation
Market segmentation that focuses on information that can
be measured: age, income, profession, gender, etc.
Psychographic Segmentation
Market segmentation that focuses on characteristics that
cannot be physically measured: values, interests, lifestyle
Behavioral Based Segmentation
Market segmentation that focuses on a customer’s attitude
toward products and service: product usage or benefits
Customer Service Gap
The difference between customer expectations and the
service that is actually received
Values Based Culture
Business culture rooted in high performance and excellent
customer service
Syndicated research
Research conducted by an independent company and
them offered for sale to everyone in an industry
Polls
Survey of people’s opinion
Engaged Customers
Repeat customers who are completely loyal to the
company’s products and services
Client-side Researchers
Staff researchers work with external research agencies
Market Research
Information is gathered that is very specifically focused on a single target market
Exploratory Research
Conducted when a business is unaware of the exact
problem
Desk Research
Reports of other completed research are used to help
define the problem
Descriptive Research
Research used when the business is aware of the problem that needs to be solved
Causal Research
Research used to determine cause-and -effect relationships when the problem is already clearly defined
Sample
A small number representative of the larger group
Price Points
The range of prices charged for a category of merchandise
Sales Managers
In charge of sales process, trains employees
Marketing Research Managers
Directs which type of marketing is done, determines which data is collected
Data Mining
The use of powerful computers to “dig up” data needed to
make decisions
Cookie
A small data file that is placed on the hard drive of a web site visitor that collects and reports data on the visitor
Click-Through Rate
Measures the effectiveness of an Internet ad by dividing the number of times an ad is clicked on by the number of times an ad is shown up
Search Engines
Internet sites like Google that help users find relevant web
sites at no cost to the user
What is the Marketing Mix?
Product, Distribution, rice, Promotion
What are the 6 core standards of marketing?
Distribution, Marketing-Information Management, Pricing, Product/Service Management, Promotion, Selling (DMSPPP)
What is the value of sports marketing to the economy?
It plays a main role in the economy, very important
Why is international marketing so challenging?
Cultural differences, government differences
What is the international role of sports and entertainment marketing?
Promote competition, not war. Also it is a place to settle differences and promote globalization and unity.
Why has the amount of sports & entertainment options increased over the last few years?
New interest, technology and ideas.
What is successful marketing strategy?
Identify customer needs and location
Provide products perceived as superior
Maintain successful customer relationships
Offer appropriate marketing mix: products, price, promotion, location
What is the purpose of marketing-information management?
Efficiency, solve problems, know the market
What are the steps of the marketing research process?
1. Discover/Define the problem
2. Analyze current conditions
3. Develop process for data for data collection
4. Collect/analyze/report data
5. Find solutions (determine) based on data
6. Implement & evaluate resolutions
What are some human factors in marketing research?
Lying, bias, the way the question is asked