Objective 4.01

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CONTENT/TEACHING OUTLINE

COMPETENCY: 4.00 Develop customer service skills needed in the sports andentertainment industry.

OBJECTIVE: 4.01 Explain the importance and types of selling.

Sports and Entertainment Marketing ISummer 2003

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A. Explain selling.

1. Selling is the exchange of goods and services from producers to consumers for aprice.a. Businesses and sponsors might purchase incentives, media time, naming

rights, pre-/post-game entertainment, signage, tickets (group or season), andproducts designed for the corporations target market.

b. Fans might purchase food and beverages, merchandise, pre-/post-gameentertainment, and tickets (group or season).

c. Sales of sponsored products should increase as a result of advertising at anevent.

d. Sponsors pay a rights fee for media time to a sports or entertainmentorganization for the opportunity to provide broadcasts.

2. Data-based marketing involves the collection of information about past, current,and potential consumers. In sports marketing, a database is needed to generateleads or sources of new customers. One common way to generate leads isthrough telemarketing. Telemarketing is communicating with customers via thetelephone. For example, sales representatives from Nike call customers whorecently purchased the new Jordan shoes to offer them a second pair at a 25%discount. In some cases, consumers will call in response to a promotionalcampaign.

3. Personal selling is a two-way communication between a representative of thecompany and the customer. For example, a sales associate at the CarolinaHurricanes team store, The Eye, selling an authentic team jersey to a fan.

4. B2B (business to business) selling takes place in a manufacturers orwholesalers showroom (inside sales) or a customers place of business (outsidesales). For example, GoodYear Tire Corporation making a sales presentation atHendrick MotorSports.

5. Direct mail is personal and received in the mailbox. Direct mail is used to initiatethe sales process. For example, the Carolina Panthers mail informationintroducing their new Fan Rewardsprogram.

6. www/Internet selling is selling executed using the Internet. For example, aMonsters, Inc. fan purchasing the DVD, or a customer purchasing stuffed toysfrom www.disney.com.

B. Recognize the importance of selling.1. Customer vs. consumer.

a. The customer is the person who buys the product or service.b. The consumer is the person who uses the product or service.c. As an example, the gift Mary selected for her husbands 40th birthday was

season tickets to the Carolina Hurricanes. Mary purchased two tickets so herhusband could take a friend. Mary is the customer, while her husband andhis friend are the consumers.

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2. Need vs. want.

a. A need is anything necessary or required to live. For example, we all needfood to survive.

b. A want is an unfulfilled desire. For example, tickets to a Carolina Panthersfootball game.

c. It is crucial that sports and entertainment businesses help customersrecognize the value of the products.

3. Selling helps customers make informed buying decisions, which results incustomer satisfaction and repeat business.

4. Full-menu marketing is having products or services that meet virtually anycustomers needs and/or wants.

C. Explain feature-benefit selling.1. Product features are the basic, physical, and extended characteristics of an item.

For example, purchasing front row seats at the Emmy Awards.2. Feature-benefit selling is matching the characteristics of a product to a

customers needs and wants. For example, a company leases a suite at theEmmy Awards to host their preferred clientele.

3. Customer benefits are the advantages or personal satisfaction a customer willget from a good or service. For example, the benefit of being on the front row atthe Emmy Awards results in better viewing of the awards and presentations.

D. Discuss customer buying motives and decision making.

1. Buying motives are the motives for customers to purchase a product.a. Rational motives are based on conscious, logical thinking and decision

making. Product dependability, time or monetary savings, quality, and priceare rational motives for buying or purchasing a product or service. Forexample, a mother purchases lawn seats for a Britney Spears concert insteadof the more expensive stadium seats.

b. Emotional motives are based on feelings. Social approval, recognition,power, love, and prestige are emotional motives for buying or purchasing aproduct. For example, a parent camping out overnight to get front row seatsto the JayZ concert for her daughters 13th birthday.

c. Patronage motives are based on loyalty. Low prices, high quality, friendly

staff, great customer service, merchandise assortment, and/or convenience oflocation are patronage motives for buying or purchasing a product. Forexample, Alyssa only purchases her sons cross country shoes at the Run forYour Life athletic shoe store because of their excellent customer service andclose proximity to her home.

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2. Customers go through a decision-making process in order to determine whatproducts they will buy.a. Extensive decision-making occurs when there is a high level of perceived risk,

a product or service is very expensive or has a high value to the customer. Acustomer will conduct research and evaluate product alternatives beforemaking a decision. For example, the Buffalo Bills equipment managerdecides whether equipment should be purchased from All-star Athletics orWinners Incorporated.

b. Limited decision making occurs when a customer buys products that he orshe has purchased before but not regularly. The Carolina Little League Teamdecides whether to advertise in the local paper this season or continue with

the same billboard ad they had last year.c. Routine decision making occurs when little information is needed about the

product being purchased. For example, the Mountainview High Schoolbaseball coach always purchases the teams chewing gum from the localwholesale store.

E. Identify the activities taking place during the preapproach.1. Product information.

a. Knowing how to use and care for a product is essential when educatingconsumers and demonstrating a product. For example, demonstrating to acustomer the proper way to oil a baseball glove.

b. Four sources of product information are direct experience, writtenpublications, other people, and formal training. For example, Debbi is a salesassociate for Foot Locker. She attends an Adidas clinic on the proper way tofit children for shoes.

2. Reviewing current trade periodicals is crucial to staying abreast of current trendsand industry information. For example, the sales manager for the CarolinaHurricanes subscribes to Street & Smiths SportsBusiness Journal.

3. Sources and methods of prospecting. A prospect is a potential customer.Employer leads, telephone directories, trade and professional directories,commercial lists, customer referrals and cold canvassing are examples ofprospects. For example, the Miami Heat purchases the mailing list of the top 50

Fortune 500 companies.

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Resources Teacher NotesPrinted References:Marketing Essentials, 3rded., pp. 208-225.Sports and Entertainment Marketing, pp. 21, 54-116.Marketing, pp. 7, 22, 150-151, 455, 466-473.

Suggested Activities: Select three sports and entertainment products

and/or services and prepare a list of twofeatures and benefits for each product/service.

Select an advertisement for a product of yourchoice related to the sports or entertainmentindustry. Identify the features and benefits ofthe product included in the ad. Attached theadvertisement to your work.

Have students review current trade periodicals,select an article and write a review of itscontents. Also, have students answer why it isimportant to stay abreast of current trends andproducts and services available.

Have students write two examples of each typeof buying motive for the sports or entertainmentindustry (rational, emotional, patronage).

In teams of two, have students brainstormexamples of the decision-making process(extensive, limited, routine). Select students topresent their examples to the class.

In one or two paragraphs, have studentsdescribe their best or worst experience with asalesperson. Randomly select students to readtheir experiences.

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Resources, cont.. Teacher NotesSuggested Activities: Have class discussion on how a salesperson

can have an impact on the buying experience.

Bring in an unusual item to class. Ask for twovolunteers. Have one student try to sell theitem without product information. Give thesecond student the same item with productinformation notes you have created and have

them try to sell it. Discuss the importance ofhaving and knowing product information.

There is a 4.00 project at the end of thiscompetency.

Websites:

Other Resources:4.01 PowerPoint Presentation

Objective 4.01

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