Transcript What Is Marketing?

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.
Goods are tangible items,
such as sports equipment.
Services are intangible
products, such as theater
tickets.
marketing the process
of developing, promoting,
and distributing products,
or goods and services, to
satisfy customers’ needs
and wants
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PROMOTIONAL SLOGANS
JUST DO IT!
THE BREAKFAST OF CHAMPIONS
TAKE THE __________ CHALLENGE
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
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
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Marketing Defined
Organizations spend lots of
money to learn about their
customers needs and
wants.
Having a clear picture
about the target market
makes developing a
marketing plan easier to
accomplish.
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
target market specific
group of consumers that an
organization selects as the
focus of its marketing plan
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Marketing Defined
The United States census
provides useful information
about the demographics
of our nation.
demographics statistics
that describe population
in terms of personal
characteristics
Businesses use
demographic information to
develop their marketing
plans.
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The Marketing Mix
Marketers use a tool to
develop strategies called
the marketing mix.
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.
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The Marketing Mix
Marketing mix strategies
involve product, price,
place, and promotion
decisions.
channel of distribution
path a product takes from
the producer to the
consumer
Place decisions include
determining a channel of
distribution.
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The Marketing Mix—The Four Ps
Product
P
Decisions
involve the goods, services, or ideas used to
satisfy consumer needs.
Price
P
Decisions
involve the exchange process between the
customer and the seller.
Place
P
Decisions
involve making the product available to the
customer.
Promotion
P
Decisions
involve how the goods or services are
communicated to the consumer.
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Buzz Power
“Word-of-mouth ramped up to warp
Operating an e-tail business
andefinition
electronicofchannel—the
speed” ison
one
Internet buzz,
Web—can be costly,says
due BusinessWeek.
to design, delivery,
and
It’s returns,
the marketing
operating expenses.
by-product of e-mail, instant messaging,
boards,
and chat
rooms.
Though Many largerbulletin
dot-com
companies
crashed
in the
The
influence
buzz is
soHarris
powerful
that researchers
monitor
1990’s,
smallofstores
like
Cyclery
of West Newton,
consumer
opinionsactually
online. increase
Positive buzz
increase
Massachusetts,
salescan
using
a basicprofits
Web
forsite.
products,
TV, music,
fashion,rides
andin on
Today,books,
a third films,
of Harris’s
bicycleand
business
the Web popularity
to get hard-to-find
parts
personalWith
service.
determine
of athletes
andand
celebrities.
public
resistance to banner ads and pop-ups, a little buzz “zooms”
Describe
a long
way. an e-business’s home page to your class after
viewing one through marketingseries.glencoe.com.
For more information on sports and entertainment marketing,
go to marketingseries.glencoe.com.
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Review
1.
Define marketing and the marketing
concept.
2.
Explain the concept of a market.
3.
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.
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
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Economic Basics
Profit allows companies to
stay in business.
As with most businesses,
there is a financial risk
involved with sports and
entertainment events.
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
Competition is the basis of
the free enterprise system.
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Property Ownership and
Intellectual Property Rights
Inherent in the free
enterprise system is the right
to own property and start a
business.
copyright legal
protection of a creator’s
intellectual property or
products
Intellectual property rights
are protected by the
following:
Copyrights
Patents
Trademarks
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Types of Business
Ownership
Types of business ownership include:
Sole proprietorship
Partnership
Corporation
Subchapter S Corporation
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Economic Impact
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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SECTION 1.2 REVIEW
1.
Explain the concept of economics.
2.
What are three characteristics of a free
enterprise system?
3.
What is the economic impact of sports and
entertainment events on a community?
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Checking Concepts
1. Define and give an
example of the term
marketing.
2. Explain the marketing
concept.
3. Describe the concept of
demographics.
4. Explain the marketing
mix.
continued
1.. The
2.
3
4
Demographics
Marketing
marketing
is themix
are
process
concept
statistical
is a combination
of
states that
of
developing,
organizations
characteristics
product, price,need
that
promoting,
to
help
place,
satisfy
describe
andtheir
and
distributing
customers
people
promotion
andwhile
target
products,
also
markets.
decisions.
tryingortogoods
reach
and
theirservices,
organization’s
to
satisfy
goals. customer
needs and wants.
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Checking Concepts
5. Explain the concept of
economics.
6. Name four types of
business ownership.
5. The
6.
7.
Intellectual
Economics
four types
property
is the
of
business
rights
study of
arethe
intangible
ownership
and
choices
are protected
and
are sole
proprietorship,
by
decisions
patents,that
partnership,
copyrights,
affect making,
and
limited
partnership,
trademarks.
distributing, and
and
corporation.
using goods and
services.
7. Define intellectual
property rights.
continued
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Checking Concepts
Critical Thinking
8. Describe how sports and
entertainment impact
national and local
economies.
8. Sports 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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