SPORTS MARKETING: CHAPTER 1
What is Marketing?
- The Planning and executing of the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives
- Or the creation and maintenance of satisfying exchange relationships
§ Creation – Product Development
§ Maintenance – Marketing continues as long as business
§ Satisfaction – Must meet needs of both business and customers
§ Exchange – When people both give and receive something of value
Marketing Mix – How a business blends the four marketing elements (4 P’s)
- PRODUCT – What a Business offers customers (ie: athletic shoes, video rental)
- PLACE - (Distribution)- Locations and methods to make it available
- PRICE – Amount a customer pays
- PROMOTION – Ways to encourage customers to purchase products. Includes advertising, publicity, personal selling and public relations.
The Number one aspect of marketing:
“SATISFYING CUSTOMER NEEDS”
This is accomplished by 3 activities
1. Identify customer needs
2. Develop products that customers consider better than other choices
3. Operate a business profitably7 Key Marketing Functions
- PRODUCT SERVICE MANAGEMENT – Designing, developing, maintaining, improving, and acquiring products or services so they meet customer needs.
- DISTRIBUTION – The best way to get product or service to the customer (ie: retail stores, internet) (seasonality)
- SELLING – Direct and personal communication with customers to assess and satisfy their needs current and future. (ie: Promo tours, internet)
- MARKETING INFO MANAGEMENT – Gathering and using information about customers to improve business decision making. (ie: surveys, polls)
§ Dominos – Small pizzas in Japan as snacks with Tuna and Corn Topping
- FINANCING – Budgeting for marketing activities and provide customers with alternate ways in paying for a product. (ie: credit cards, layaway)
- PRICING – The process of establishing and communicating the value or cost of goods and services to customers. What are people willing to pay?
- PROMOTION – Using advertising and other forms of communicating information and ideas to achieve a desired outcome. (ie: naming of stadiums, bowl games)
Four Types of Marketing
a. Funding a Fan’s (consumer) interest and planning a product or service that will interest the spectator (consumer) enough to purchase or participate in them.
b. Using Sports to market products
a. How to market a product.
b. Use entertainment to attract attention to other products.
c. Whatever people are willing to spend their money and spare time viewing, rather than participating
i. Sports are games of athletic skill
ii. Entertainments are movies, circus, theatre, games
Determine the characteristics of the audience and plan the service or product around them and promote the product.
- Biggest Influence – TV, Radio, Internet, Billboards
a. Renewing your body or mind with play or amusing activities.
b. Travel, tourism, amateur sports (not school sports)
i. Theme parks, Leagues
i. Needs – physical – food, clothing, affection, knowledge
ii. Wants – Shaped by culture and society
iii. Demands – Backed by buying power
FIRST STEP – Determine Target Market
- Target Marketing – a Specific group of people you want to reach.
o Find a target market through demographics
o Demographics – Identifying the customer through measureable information
§ Marital Status
§ Disposable Income (Spending what is left)
§ Educational Level
o Use promotion to stay 2 steps ahead
o Be Creative
o Attract the attention of the target group
o Timing – Based on success and popularity
§ Ie: Vick, Lebron
- Logos – Clear message, catchy symbol and colors
- New Sports (x games, arena football, WNBA)
- New Lines – Air Jordan
- New Companies – New era
- Gross Impression – the number of times per advertisement game, show that a product is associated
With an athlete, team entertainer
o Logos on projects
o Motorola and Cingular Headsets
o Reeces Pieces vs. M&M’s - ET