•What is Marketing?•Economics of Marketing

Define the following: (20 minutes)◦ Marketing◦ Marketing concept◦ Market◦ Needs◦ Wants◦ Target market◦ Demographics◦ Marketing mix◦ Channel of distribution

Two of the most profitable industries in the US◦ Billions each year spent (recreation/products)

International Great competition

◦ Need a marketing plan to be competitive

Marketing-the process of developing, promoting and distributing products, or goods and services◦ Goods◦ Services

Develop products◦ Study consumers to determine needs/wants◦ Design product to satisfy these

Promoting activities◦ Educate consumers◦ Create interest and desire◦ Make a sale◦ Create an image for a company/products

Distribution◦ Getting the product into hands of customer◦ Buying and selling

Ex: Direct mail, telephone solicitation, the Internet

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

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

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

Product Price Place Promotion

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.)

Consider cost Expenses related to marketing the product Competition What consumer is willing to pay

Making the product available to the consumer

Where does the target market shop?◦ Retail stores, Internet, infomercials, etc.

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)

How the goods/services are communicated to the consumer

Advertising, sales promotion, publicity, and personal selling

Ex: Nike-How do they promote?

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?

Marketing plan determines profits◦ Impacts communities, cities and countries◦ Sports marketing plans impacts the global market

Economics-study of the choices and decisions that affect making, distributing, and using goods/services◦ Made due to ltd resources-unlimited needs/wants

GDP Decisions made based on what consumers are

buying Free enterprise system-profit, risk, competition

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

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

Trademarks-Protection from use of words, names, symbols, sounds or colors that distinguish goods and services◦ MGM Lion, the names Coke, Reebok, Disney

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

One owner◦ 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

2 or more owners◦ 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

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

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

Host locations all benefit economically from sports and/or enterntainment◦ Disney World in Orlando, Olympics in Athens,

Greece, Broadway plays in New York 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 Marketing efforts at events

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?