Transcript market chapters 1-2

Olympic Costs
China
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Builders broke ground in December for the stadium, whose latticework of
girders, dubbed the "Bird Cage"
The National Stadium, designed by Swiss architects Herzog and de Meuron,
initially was budgeted at 3 billion yuan (US$360mil).
China regards the Olympics as a matter of national prestige and say they
plan to spend US$24.2bil on new subway lines and other improvements in
Beijing.
Olympic organizers are turning to private investors to cover much of the
US$3.2bil cost of building facilities.
They say sports venues and athlete housing are to be sold off as luxury
apartments, sports clubs and other commercial facilities after the Games.
Olympic Costs
London - 2012
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On 15 March 2007 Tessa Jowell announced to the House of Commons
a budget of £3.1bn to cover building the venues and infrastructure for
the Games,…
On top of this, she announced various other costs … of £2.2bn,
security and policing costs of £600m, VAT of £800m and elite sport and
Paralympic funding of nearly £400m.
According to these figures, the total is the most expensive ever for an
Olympic Games: £9.345 billion.[7]
Marketing
• A broad term that influences four areas of
your business: Product, Place, Price, and
Promotion.
• Definition:
• The process of developing, promoting, and
distributing products, or goods and services
to satisfy costumers wants and needs.
Marketing Concept• All company policies and activities
should be aimed at satisfying the
customer.
These four areas are
influenced by a Marketing
Process, which also has four
areas:
Research & Strategy
Target
Marketing Mix.
A. Market Research
• 1. Product – Development of new products or
discover improvements for existing products.
Medtronic or Polaris
• 2. Pure – Research done without a specific
product in mind. Mail-in surveys or
questionnaires.
• 3. Applied – Studies on existing products.
Crash tests, restaurant reply cards.
A. Market Research (cont)
• 4. Market-Studies that compare all
activities involved in the exchange of
goods and services between business
and consumer.
B. Market Strategy – Tries to
answer the questions
• “What is unique about my business?”
• “What will be our market?”
C. Target Market – This
should answer:
• “Who you are going to serve?”
• “Where are my customers located?”
Market Concept uses both
Target Market and Market Mix
to answer these questions
about wants needs and the
customer
There are two (2) ways which
you can research a market.
• Both fall under the study of
DEMOGRAPHICS
1. Customer Segmentation –
• identifying and promoting to those
groups of people most likely to buy your
product.
• “ What are my customers’ age, income,
likes and dislikes?”
Geographical Segmentation –
• Specializing in serving people in a
particular geographical area.
All People
In Twin Cities
Area.
Northern
Suburbs
D. Market Mix – combining the
four P’s to satisfy the
customer.
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Product
Price
Place
Promotion
Product
• A company has to start with a product or
service designed to satisfy the wants of
that market.
• Any change in a physical feature
creates a new product. (design, color,
size, packaging)
“A wise firm sells product
benefits rather than just
products.”
Goods are symbols of status
or personal attributes.
Three categories of a “New
Product”
• Product which are unique “no existing
substitute”
• Replacements – significantly different
• Imitative – not new to the market but a
new company “me too”
Product planning
• Which products should be made and which
ones bought?
• Should you have more or fewer products?
• Does it have any new uses?
• Brand name (family name) or package label
for each product?
• How should it be styled?
• Quantities?
• Price?
Property Ownership
• Intellectual property rights are intangible
and are protected by patents, copyrights
and trademarks
Copyrights
• Legal protection of a creator’s
intellectual property.
• Books, video games, music
• Life of the author plus 70
• Need permission to use portions royalty
Patents
• Products that are protected from others
using, importing, selling, or offering
them for sale.
• Granted for 20 years
Trademarks
• Words, names, symbols, sounds or
color that distinguish a good or service
• Can be renewed over and over
Chapter 2
• History of Sports and entertainment
• Sports and entertainment marketers
have always sold participation
• In the late 1800s only the wealthy had
free time and discretionary income to
participate.
• In the late 1890s the kinetoscope was
invented
Bill Veeck
• Key figure in the development of sports
marketing
Marketing Similarities
• Sports and Entertainment are not often
physical products to be bought in a
store
• Endorsements - approval by a “star” for
other products
• Core products and ancillary products
Price similarites
• Pricing for sports and entertainment is
radically different.
• Movie theaters - don’t lower prices
• Sporting events have gone up in price
Problems - ticket scalpers, piracy
Promotion Similarities
• Product tie-in and cross-promotion
• Convergence - the overlapping of
product promotion - expands the
potential for profit
• Synergy - combined action that occurs
when products owned by one source
promote the growth of related products.
Marketing Differences
• Sport loyalty
• Entertainment not motivated by brand
“what’s hot and what’s not”
• Individual artist may successfully
maintain a loyal fan base, but
production companies have difficulty
creating that same kind of loyalty.
Revenue Streams
• Entertainment products can easily be
developed into different areas of
ancillary products.
• One sporting event doesn’t usually
produce the same amount of revenue
from merchandising and royalties.
Sponsorship
• Different than endorsement. Sponsoring
company is not lending its name or
image to a sports product - this is
endorsing