Transcript The Marketing Concept - Council Rock School District

Sports and Entertainment Marketing Class – Mr. Sherpinsky
Council Rock School District
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
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 This strategy resulted in a huge return on
investment
Goals
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Explain the central
focus of the marketing
concept.
Explain the reasons for
increased sports and
entertainment options.
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Marketing concept
Productivity
Breakeven point
Opportunity cost
Think of a product that you like. What can be
done to make that product better!
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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
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Keeping the
focus on the
customer’s
needs for a
product or
service
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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.
Complete the Handout by end of class!
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?
 What is the most important
aspect of marketing?
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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
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productivity
 rate at which companies
produce goods or services in
relation to the amount of
materials and number of
employees utilized
 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)
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breakeven point
 the minimum sales and attendance
required to cover all of the expenses
of organizing, planning and
promoting the event
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profit
 revenue earned beyond the
breakeven point
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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.
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Fixed and Variable Cost Analysis Worksheet
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Complete pages 96, problems 1, 2, 3, 4
Explain the reasons for
increased sports and
entertainment options.
Goals
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Explain the importance of
understanding buyer
behavior when making
marketing decisions.
List and describe means
of collecting marketing
information for use in
decision making.
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economic market
benefits derived
comparative advantage
emotional purchases
rational purchases
patronage purchases
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economic market
 all of the consumers
who will purchase a
product or service
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 benefits derived
 the value people believe they receive from a
product or service
comparative advantage
 the capability to produce products or services
more efficiently and economically than the
competition
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hierarchy of needs
 identifies five human
areas of needs
 emotional
purchases
 spending with little
thought during
emotional times
 rational purchases
 define wants and needs
 assess priorities and budget
 conduct research
 compare alternatives
 make a well thought out purchase
 patronage purchases
 based on loyalty to a particular brand or product
What is meant by benefits derived?
The value that people believe they
receive from buying a product or
service
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
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Marketers are often involved in every step
of the decision-making process.
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Research at least 6 different groups:
Baby Boomers, Generation X, etc…
 The decision-making process involves
the following steps.
 recognize a need or a
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want
conduct product research
evaluate choices
decide what to purchase
evaluate the product
after the purchase
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Information about consumers that is
important to consider include:
 demographics
 shopping behaviors
 how consumers spend money
 product and brand preferences
 frequency of purchases
 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
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internal sources
 a business’s own customer records, sales records,
production records, and operation records
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external sources
 government reports, trade and professional
organizations, business publications, commercial
data, and information services
 primary data
 obtained for the first time and
specifically for the particular
problem or issue being studied
 secondary data
 information previously collected
for another purpose but is now
found useful in the current study
 primary data and secondary data
Explain the difference between
primary and secondary data.
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Complete Census Worksheet for Market
Information
Goals
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Define target market
and market segment.
Describe how
businesses use
market
segmentation.
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target market
market segment
market share
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target market
 specific group of consumers you want to reach
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market segment
 a group of consumers within a
larger market who share one or
more characteristics
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consumers can belong to
multiple market segments.
 marketers must identify the
market segment to which they
want to sell.
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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
What is a target market?
Provide an example of a
company’s target market.
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Markets may be segmented in many ways.
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geographic location
demographics
psychographics
behavior
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divides markets into physical locations
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information that can be measured
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age
income
profession
gender
education
marital status
household size
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characteristics that cannot be physically
measured
 values
 interests
 lifestyle choices
behavioral-based segmentation
 focuses on a customer’s attitude toward
products and services
 product usage
 what products you use and how often
 product benefits
 the positive experiences or associations people
derive from using a product or service
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market share
 percentage of total sales of
a product or service that a
company expects to
capture in relation to its
competitors
List and describe four (4) types of
market segmentation.
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Complete page 107, problems 1, 2, 3, 4
List and describe four (4) types of
market segmentation.
Geographic
Demographic
Psychographic
Behavioral-based
Goals
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Explain the importance
of outstanding customer
service.
Explain what it means to
establish a service
culture.
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customer service gap
values-based culture
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Describe the last time you
had a bad customer service
experience
 What happened?
▪ What do you do about it?
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Business success depends on excellent
customer service.
Customer relationships should continue
after the sale of goods and services.
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Customer service gap
 the difference between customer
expectations and the services
actually received
 Customers are likely to tell at
least 10 people about their poor
customer service experiences.
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Individuals hired for customer
service positions should have a
positive attitude and look
forward to meeting the public.
 Proper employee training in
proactive, efficient and courteous
customer service is critical to
providing a pleasant experience
for customers.
Why is outstanding customer
service critical to a business in a
highly competitive marketplace?
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Gallery Furniture has effective customer
service principles. They are:
 Demonstrate a values-based culture that is
rooted in high performance and excellent
customer service.
■ Follow the “FAST”
• (Focus, Action, Search, Tenacity)
strategy.
■Passion results in energy.
■ Demonstrate pride in every sale.
■ Remember the value of long-term positive
relationships.
Common error: Saying “It’s not my
department” should be replaced
with “How may I help you?”
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mystery guest
 Hired by an outside firm to have an
individual assess the performance of
a business
▪ Feedback on the individual’s experience
as a customer is provided to the hiring
business
Explain what it means to have a
values-based culture.
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Complete the worksheet
Use www.thehersheycompany.com to
answer the questions.
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Take Chapter 4 Assessment Challenge
 Problems 1-13
 Think Critically 14- 24