Transcript SEM Chap 04
Chapter 4 Hit a Home Run with Customers 4.1 The Marketing Concept 4.2 Discover What People Want 4.3 Target Markets 4.4 Customer Service Sports and Entertainment Marketing © Thomson/South-Western Winning Strategies 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 in an effort to obtain teen customers, Frito-Lay initiated a variety of innovative marketing techniques involving music partnerships this strategy resulted in a huge return on investment Chapter 4 Slide 2 Sports and Entertainment Marketing © Thomson/South-Western Lesson 4.1 The Marketing Concept Goals Explain the central focus of the marketing concept. Explain the reasons for increased sports and entertainment options. Chapter 4 Slide 3 Sports and Entertainment Marketing © Thomson/South-Western Terms marketing concept productivity breakeven point opportunity cost Chapter 4 Slide 4 Sports and Entertainment Marketing © Thomson/South-Western THE MARKETING CONCEPT About half of every consumer dollar spent pays for marketing costs. Satisfying customer needs is the most important aspect of marketing. marketing concept keeping the focus on the customer’s needs for a product or service Chapter 4 Slide 5 Sports and Entertainment Marketing © Thomson/South-Western Maintain Relationships Successful customer relationships are critical to the marketing concept. Customer satisfaction is the bottom line for maintaining successful marketing relationships. Chapter 4 Slide 6 Sports and Entertainment Marketing © Thomson/South-Western What is the most important aspect of marketing? Chapter 4 Slide 7 Sports and Entertainment Marketing © Thomson/South-Western INCREASED SPORTS AND ENTERTAINMENT OPTIONS Productivity U.S. citizens have more discretionary income than in the past. drives up demand for sports and entertainment Chapter 4 Slide 8 demand increases competition Sports and Entertainment Marketing © Thomson/South-Western Customer Focus productivity rate at which companies produce goods or services in relation to the amount of materials and number of employees utilized Technology has helped this greatly improved demand can be met when needed Chapter 4 Slide 9 Sports and Entertainment Marketing © Thomson/South-Western successful marketing strategy identify customer needs location provide products perceived as superior maintain successful customer relationships offer the appropriate marketing mix Chapter 4 Slide 10 product price promotion location Sports and Entertainment Marketing © Thomson/South-Western Weekend Entertainment Choices breakeven point the minimum sales and attendance required to cover all of the expenses of organizing, planning and promoting the event profit revenue earned beyond the breakeven point On-demand, Netflix, etc causing major competition for movie theaters Chapter 4 Slide 11 Sports and Entertainment Marketing © Thomson/South-Western Opportunity Cost 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. Ex. Going to a concert over a Phillies game the opportunity cost is the Phillies game Rising fuel costs cause lots of consumers to watch at home rather than attend events Chapter 4 Slide 12 Sports and Entertainment Marketing © Thomson/South-Western Explain the reasons for increased sports and entertainment options. More productivity Increased discretionary income Increased demand Increased competition lead to better options Chapter 4 Slide 13 Sports and Entertainment Marketing © Thomson/South-Western Lesson 4.2 Discover What People Want Goals Explain the importance of understanding buyer behavior when making marketing decisions. List and describe means of collecting marketing information for use in decision making. Chapter 4 Slide 14 Sports and Entertainment Marketing © Thomson/South-Western Terms economic market benefits derived comparative advantage emotional purchases rational purchases patronage purchases Chapter 4 Slide 15 Sports and Entertainment Marketing © Thomson/South-Western Consumer Spending Habits Serve as a guide for business to offer the most profitable mix of goods and services Comparative advantage the capability to produce products or services more efficiently and economically than the competition. Ex. Walmart selling items cheap they use cheap labor and bulk buying benefits derived the value people believe they receive from a product or service. Ex. Wearing Phillies gear to show support and pries. Coach, BMW Chapter 4 Slide 16 Sports and Entertainment Marketing © Thomson/South-Western UNDERSTAND BUYER BEHAVIOR economic market all of the consumers who will purchase a product or service Allows us to better satisfy customer needs and wants - Chapter 4 Slide 17 Sports and Entertainment Marketing © Thomson/South-Western Consumer Wants and Needs hierarchy of needs identifies five human areas of needs Chapter 4 Slide 18 Sports and Entertainment Marketing © Thomson/South-Western Chapter 4 Slide 19 Sports and Entertainment Marketing © Thomson/South-Western emotional purchases spending with little thought during emotional times Ex. Buying an expensive T-shirt at concert rational purchases define wants/needs to make a thought out purchase assess priorities and budget conduct research compare alternatives Ex. Buying a house or car patronage purchases based on loyalty to a particular brand or product Ex. Only wearing Eagles not Cowboys Chapter 4 Slide 20 Sports and Entertainment Marketing © Thomson/South-Western What is meant by benefits derived? Chapter 4 Slide 21 Sports and Entertainment Marketing © Thomson/South-Western GATHER INFORMATION Marketers are often involved in every step of the decision-making process. - Chapter 4 Slide 22 Sports and Entertainment Marketing © Thomson/South-Western The consumer decision-making process involves the following steps. recognize a need or a want conduct product research evaluate choices decide what to purchase evaluate the product after the purchase Chapter 4 Slide 23 Sports and Entertainment Marketing © Thomson/South-Western Information Needed for Marketing Decisions Information about consumers that is important to consider include demographics shopping behaviors how consumers spend money product and brand preferences frequency of purchases Chapter 4 Slide 24 Sports and Entertainment Marketing © Thomson/South-Western 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 Chapter 4 Slide 25 Sports and Entertainment Marketing © Thomson/South-Western Sources of Information for Businesses internal sources a business’s own customer records, sales records, production records, and operation records external sources government reports, trade and professional organizations, business publications, commercial data, and information services Chapter 4 Slide 26 Sports and Entertainment Marketing © Thomson/South-Western 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 Chapter 4 Slide 27 Sports and Entertainment Marketing © Thomson/South-Western Explain the difference between primary and secondary data. Chapter 4 Slide 28 Sports and Entertainment Marketing © Thomson/South-Western Lesson 4.3 Target Markets Goals Describe the first step in marketing a product. Describe how businesses use market segmentation. Chapter 4 Slide 29 Sports and Entertainment Marketing © Thomson/South-Western Terms target market market segment market share Chapter 4 Slide 30 Sports and Entertainment Marketing © Thomson/South-Western DETERMINE THE TARGET MARKET target market specific group of consumers you want to reach First step of marketing a product - Chapter 4 Slide 31 Sports and Entertainment Marketing © Thomson/South-Western Focus Marketing Efforts market segment a group of consumers within a larger market who share one or more characteristics Consumers belong to multiple market segments. Marketers must identify the market segment to which they want to sell. Chapter 4 Slide 32 Sports and Entertainment Marketing © Thomson/South-Western Meet Target Market Needs Market segmentation data can improve business decision making. number of potential customers customer income level level of interest in product or service Chapter 4 Slide 33 Sports and Entertainment Marketing © Thomson/South-Western What is a target market? Provide an example of a company’s target market. Chapter 4 Slide 34 Sports and Entertainment Marketing © Thomson/South-Western MARKET SEGMENTATION Markets may be segmented in many ways. geographic location demographics psychographics behavior Chapter 4 Slide 35 Sports and Entertainment Marketing © Thomson/South-Western Geographic Segmentation divides markets into physical locations Ex. Customers in Philadelphia (inner city) Chapter 4 Slide 36 Sports and Entertainment Marketing © Thomson/South-Western Demographic Segmentation information that can be measured Chapter 4 Slide 37 age income profession gender education marital status household size Sports and Entertainment Marketing © Thomson/South-Western Psychographics Segmentation characteristics that cannot be physically measured values interests lifestyle choices Ex. People who like to run, vegetarians Chapter 4 Slide 38 Sports and Entertainment Marketing © Thomson/South-Western Behavioral-Based Segmentation behavioral-based segmentation focuses on a customer’s attitude toward products and services product usage what products you use and how often Ex. Promotions for customers visiting movie theaters once a month product benefits the positive experiences or associations people derive from using a product or service Ex. Promoting sporting events as family time Chapter 4 Slide 39 Sports and Entertainment Marketing © Thomson/South-Western Capture a Market Share market share percentage of total sales of a product or service that a company expects to capture in relation to its competitors Chapter 4 Slide 40 Sports and Entertainment Marketing © Thomson/South-Western List and describe four types of market segmentation. Chapter 4 Slide 41 Sports and Entertainment Marketing © Thomson/South-Western Lesson 4.4 Customer Service Goals Explain the importance of outstanding customer service. Explain what it means to establish a service culture. Chapter 4 Slide 42 Sports and Entertainment Marketing © Thomson/South-Western Terms customer service gap values-based culture Chapter 4 Slide 43 Sports and Entertainment Marketing © Thomson/South-Western OUTSTANDING SERVICE EQUALS SUCCESS Business success depends on excellent customer service. Customer relationships should continue after the sale of goods and services. Chapter 4 Slide 44 Sports and Entertainment Marketing © Thomson/South-Western A Track Record for Great Customer Service 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. Chapter 4 Slide 45 Sports and Entertainment Marketing © Thomson/South-Western Training Programs That Make an Impact 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. Chapter 4 Slide 46 Sports and Entertainment Marketing © Thomson/South-Western Why is outstanding customer service critical to a business in a highly competitive marketplace? Chapter 4 Slide 47 Sports and Entertainment Marketing © Thomson/South-Western Principles to use when Creating a Service Culture Demonstrate a values-based culture that is rooted in high performance and excellent customer service showing customers they are valued. 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. Chapter 4 Slide 48 Sports and Entertainment Marketing © Thomson/South-Western How May I Help You? “It’s not my department” should be replaced with “How may I help you?” 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 Chapter 4 Slide 49 Sports and Entertainment Marketing © Thomson/South-Western Explain what it means to have a valuesbased culture. Chapter 4 Slide 50 Sports and Entertainment Marketing © Thomson/South-Western PERFORMANCE INDICATORS EVALUATED Communicate ideas clearly to the judge (potential investor). Analyze all relevant data for proposing a new celebrity-theme restaurant. Chapter 4 Slide 51 Sports and Entertainment Marketing © Thomson/South-Western Demonstrate critical thinking and problemsolving skills necessary to propose and operate a successful business. Interpret demographics and financial data for a proposed business. Understand consumer demand and the existing competition. Chapter 4 Slide 52 Sports and Entertainment Marketing © Thomson/South-Western THINK CRITICALLY 1. Why is a business plan necessary for a popular celebrity who wants to open a restaurant in a city where he or she is well liked? 2. Give three examples of successful celebrity-theme restaurants and what makes them popular. Chapter 4 Slide 53 Sports and Entertainment Marketing © Thomson/South-Western 3. What would be a good grand opening event to attract the maximum amount of attention to the new restaurant? 4. What advantage does a professional athlete have over an average citizen when opening a restaurant? Chapter 4 Slide 54 Sports and Entertainment Marketing © Thomson/South-Western