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What Is Marketing?
Economics of Marketing
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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.
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The Importance of Sports and Entertainment Marketing
The sports and entertainment industries have become two of the most profitable industries in the United States.
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Marketing Defined
Because of competition, an organized marketing plan is essential.
marketing the process of developing, promoting, and distributing products, or goods and services, to satisfy customers’ needs and wants
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Goods are tangible items, such as sports equipment. Services are intangible products, such as theater tickets.
Marketing Defined
Successful organizations follow a marketing concept.
marketing concept idea that organizations need to satisfy their customers while also trying to reach their organizations’ goals
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The first step in creating a marketing concept involves identifying the market.
market potential customers with shared needs who have the desire and ability to buy a product
Marketing Defined
Organizations spend lots of money to learn about their customers needs and wants.
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Having a clear picture about the target market makes developing a marketing plan easier to accomplish.
target market specific group of consumers that an organization selects as the focus of its marketing plan
needs a lack of basic necessities such as food, clothing, or shelter
wants things that people desire based on personality, experiences, or information about a product
Marketing Defined
The United States census provides useful information about the demographics of our nation.
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demographics statistics that describe population in terms of personal characteristics
Businesses use demographic information to develop their marketing plans.
The Marketing Mix
Marketers use a tool to develop strategies called the marketing mix.
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marketing mix a 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.
The Marketing Mix
Marketing mix strategies involve product, price, place, and promotion decisions.
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channel of distribution path a product takes from the producer to the consumer
Place decisions include determining a channel of distribution.
P
P
P
P
The Marketing Mix—The Four Ps
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involve the goods, services, or ideas used to satisfy consumer needs.
ProductDecisions
involve the exchange process between the customer and the seller.
PriceDecisions
involve making the product available to the customer.
PlaceDecisions
involve how the goods or services are communicated to the consumer.
PromotionDecisions
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.
Buzz Power
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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.
“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.
Define marketing and the marketing concept.
Explain the concept of a market.
What is the marketing mix and what is its relationship to a target market?
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Economic Basics
The economics of marketing sports and entertainment have a great impact globally as well as locally.
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economics the study of the choices and decisions that affect making, distributing, and using goods and services
A measure of economic growth is the gross domestic product (GDP).
GDP (gross domestic product) the value of all goods and services produced within a country
Economic Basics
Profit allows companies to stay in business.
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profit the money left after all costs and expenses of a business are paid
competition as a characteristic of free enterprise, the struggle among companies for customers
As with most businesses, there is a financial risk involved with sports and entertainment events.
Competition is the basis of the free enterprise system.
Property Ownership and Intellectual Property Rights
Inherent in the free enterprise system is the right to own property and start a business.
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Intellectual property rights are protected by the following:
Copyrights
copyright legal protection of a creator’s intellectual property or products
Patents
Trademarks
Types of Business Ownership
Types of business ownership include:
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Sole proprietorship
Partnership
Corporation
Subchapter S Corporation
Locations benefit economically from sports and/or entertainment events and marketing.
On a local level, sporting events and entertainment venues economically impact areas in which they operate because they draw audiences.
Hosting the Olympics has a huge economic impact on a region before, during, and after the event.
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Economic Impact
Explain the concept of economics.
What are three characteristics of a free enterprise system?
What is the economic impact of sports and entertainment events on a community?
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Define and give an example of the term marketing.
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Explain the marketing concept.
Describe the concept of demographics.
Marketing is the process of developing, promoting, and distributing products, or goods and services, to satisfy customer needs and wants.
1. The marketing concept states that organizations need to satisfy their customers while also trying to reach their organization’s goals.
2. Demographics are statistical characteristics that help describe people and target markets.
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Explain the marketing mix.
The marketing mix is a combination of product, price, place, and promotion decisions.
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Checking Concepts
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continued
Explain the concept of economics.
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Name four types of business ownership.
Define intellectual property rights.
Economics is the study of the choices and decisions that affect making, distributing, and using goods and services.
5. The four types of business ownership are sole proprietorship, partnership, limited partnership, and corporation.
6. Intellectual property rights are intangible and are protected by patents, copyrights, and trademarks.
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Checking Concepts
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continued
Describe how sports and entertainment impact national and local economies.
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Critical ThinkingSports and entertainment local events draw audiences. That means workers are needed for crowd control, ticket collection, concession sales, and security. These customers may also hire local people to work for them. Nationally, events that increase tourism contribute to the GDP.
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Checking Concepts
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