Transcript World of Marketing

•What
is Marketing?
•Economics of Marketing
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Define the following: (20 minutes)
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Marketing
Marketing concept
Market
Needs
Wants
Target market
Demographics
Marketing mix
Channel of distribution
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Two of the most profitable industries in the
US
◦ Billions each year spent (recreation/products)
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International
Great competition
◦ Need a marketing plan to be competitive
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Marketing-the process of developing,
promoting and distributing products, or
goods and services
◦ Goods
◦ Services
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Develop products
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Promoting activities
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Distribution
◦ Study consumers to determine needs/wants
◦ Design product to satisfy these
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Educate consumers
Create interest and desire
Make a sale
Create an image for a company/products
◦ Getting the product into hands of customer
◦ Buying and selling
 Ex: Direct mail, telephone solicitation, the Internet
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Marketing concept-the idea that
organizations need to satisfy their customers
while also trying to reach their organizations’
goals.
◦ To be profitable they must focus on customers’
needs and wants
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Market-potential customers with sahred
needs who have the desire and ability to buy
a product
Needs-basic necessities (food, clothing,
shelter)
Wants-things desired
Target market-a specific group of consumers
that an organization selects as the focus of
its marketing plan
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Mass-promote products to everyone the
same (1950s)
Market identification-market to specific
groups
◦ More sophisticated b/c of availability of info and
computer technology
◦ Market-research firms-do research for companies
for a fee
◦ Demographics-statistics that describe a population
in terms of personal characteristics
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Product
Price
Place
Promotion
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The goods, servcies, or ideas used to satisfy
consumer needs
Designing-consider what consumer needs
and wants
Naming-must be relevant
Packaging-appropriate (bright colors, design,
material-won’t spoil, etc.)
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Consider cost
Expenses related to marketing the product
Competition
What consumer is willing to pay
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Making the product available to the consumer
Where does the target market shop?
◦ Retail stores, Internet, infomercials, etc.
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Channel of distribution-the path a product
takes from the producer to the consumer
◦ Many companies use a combination
◦ Ex: Nike-Internet, Retail stores (Nike and others)
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How the goods/services are communicated to
the consumer
Advertising, sales promotion, publicity, and
personal selling
Ex: Nike-How do they promote?
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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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Marketing plan determines profits
◦ Impacts communities, cities and countries
◦ Sports marketing plans impacts the global market
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Economics-study of the choices and decisions
that affect making, distributing, and using
goods/services
◦ Made due to ltd resources-unlimited needs/wants
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GDP
Decisions made based on what consumers are
buying
Free enterprise system-profit, risk, competition
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Tangible (building) or intangible (idea for script for film)
Copyrights-legal protection of creator’s intellectual
property
◦ Books, films, video games, music
◦ Get permission, pay royalty fees
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Patents-protect owners of patented products from
others using, making, importing, selling, or offering
them for sale
◦ Nike driver golf club, various styles of golf balls Titleist
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Trademarks-Protection from use of words, names,
symbols, sounds or colors that distinguish goods and
services
◦ MGM Lion, the names Coke, Reebok, Disney
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Sole Proprietorship-one owner
Patnership- 2 or more owners
Corporation- Business entity separate from
owner
Subchapter S Corporation-same as corp. but
taxed like a partnership
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One owner
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Easy to start and end 
All decisions are made by you 
All profits are yours 
Lack of startup or expansion finances 
Time required of the one owner 
Unlimited Liability 
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2 or more owners
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Shared financial investment 
Shared responsibility 
Shared expertise 
Ability to expand 
Unlimited liabiilty 
Difficulty in withdrawing 
The death of a partner dissolves the partnership 
Disagreement possibility among partners 
Shared profits 
Limited partnership-a silent partner
◦ One partner has to assume unlimited liability
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Business entity that can conduct business and enter into contracts
apart from its owner(s)
Must be chartered (provide info to the state on plans of operation)
To be a corporate charter you must include the following info:
◦ Name, # of shareholders, type of business, products, selling
location, members of the board of directors
Owners R “stockholders”/ “shareholders”
Can sell stock to generate money
Ability to generate capital investment 
Limited liability for owners 
Can hire experts to run the company 
Ability to expand 
Ease of which owners can join and leave 
Complex structure 
Higher tax rate, double taxation (co. and shareholders) 
Increased govt regulation 
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Same as a corp. but taxed like a partnership
Restrictions that apply:
◦ No more than 35 shareholders
◦ No more than 80% of revenue can come from
foreign sources
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Host locations all benefit economically from
sports and/or enterntainment
◦ Disney World in Orlando, Olympics in Athens,
Greece, Broadway plays in New York
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Affects
◦ Increase in workers, bridge tolls, transportation,
parking fees, restaurants, local tourists places
(Disney), hotels, car rental, malls, improvements in
roads, beautification of area, new hotels,
restaurants, profits that are reinvested into the
economy
◦ Local and High School Events
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Marketing efforts at events
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What affects do high school sports have on
the economy?
What affects to local events have on the
economy?
What affects do the Olympics have on the
economy?