What Is Marketing?What Is Marketing?

Economics of MarketingEconomics 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 marketingmarketing plan is essential.

marketing the process of developing, promoting, and distributing products, or goods and services, to satisfy customers’ needs and wants

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Goods are tangible items, such as sports equipment. Services are intangible products, such as theater tickets.

Marketing Defined

Successful organizations follow a marketing marketing conceptconcept.

marketing concept idea that organizations need to satisfy their customers while also trying to reach their organizations’ goals

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The first step in creating a marketing concept involves identifying the marketmarket.

market potential customers with shared needs who have the desire and ability to buy a product

Marketing Defined

Organizations spend lots of money to learn about their customers needsneeds and wantswants.

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Having a clear picture about the target markettarget market makes developing a marketing plan easier to accomplish.

target market specific group of consumers that an organization selects as the focus of its marketing plan

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

Marketing Defined

The United States census provides useful information about the demographicsdemographics of our nation.

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demographics statistics that describe population in terms of personal characteristics

Businesses use demographic information to develop their marketing plans.

The Marketing Mix

Marketers use a tool to develop strategies called the marketing mixmarketing mix.

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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.

The Marketing Mix

Marketing mix strategies involve product, price, place, and promotion decisions.

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channel of distribution path a product takes from the producer to the consumer

Place decisions include determining a channel of channel of distributiondistribution.

P

P

P

P

The Marketing Mix—The Four Ps

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involve the goods, services, or ideas used to satisfy consumer needs.

ProductDecisions

involve the exchange process between the customer and the seller.

PriceDecisions

involve making the product available to the customer.

PlaceDecisions

involve how the goods or services are communicated to the consumer.

PromotionDecisions

Operating an e-tail business on an electronic channel—the Web—can be costly, due to design, delivery, returns, and operating expenses.

Though Many larger dot-com companies crashed in the 1990’s, small stores like Harris Cyclery of West Newton, Massachusetts, actually increase sales using a basic Web site. Today, a third of Harris’s bicycle business rides in on the Web to get hard-to-find parts and personal service.

Describe an e-business’s home page to your class after viewing one through marketingseries.glencoe.com.

Buzz Power

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The influence of buzz is so powerful that researchers monitor consumer opinions online. Positive buzz can increase profits for products, books, films, TV, music, and fashion, and determine popularity of athletes and celebrities. With public resistance to banner ads and pop-ups, a little buzz “zooms” a long way.

For more information on sports and entertainment marketing, go to marketingseries.glencoe.com.

“Word-of-mouth ramped up to warp speed” is one definition of Internet buzz, says BusinessWeek. It’s the marketing by-product of e-mail, instant messaging, bulletin boards, and chat rooms.