lesson 2.4 primary marketing functions copyright © 2014 by sports career consulting, llc

Lesson 2.4

Primary Marketing Functions

Copyright © 2014 by Sports Career Consulting, LLC

LESSON 2.4

What is SEM?

Pricing

Distribution

Promotion

Financing

Selling

Information-Management

Product and Service Management

Primary Functions of Marketing


LESSON 2.4

What is SEM?

1. Pricing: Assigning a value to products and services


--Price is determined on the basis of supply & demand

Examples:Tickets to the Super Bowl are very expensive because demand is high. In 2013, the New York Jets lowered season ticket prices because of low demand(in some cases dropping prices from $700 to $255)


LESSON 2.4

What is SEM?


Examples:Disney prices went up, no discounts to residents…the majority of Disney parks enjoyed attendance

increases.Was this wise of Disney?

Tickets for the 2014 men's ice hockey gold medal game at the Sochi Olympics were unavailable within a half hour of going on sale online. -Max purchase of 4 tickets ($233 and $1,132 per ticket).

High or Low demand?

LESSON 2.4

What is SEM?

Companies must implement strategies to help identify the best price points to match demand.

Solution=“dynamic pricing” structure -higher demand games cost more-lower demand games cost less


LESSON 2.4

What is SEM?


2. Distribution: Determining how best to get products and services to consumers

Examples:EA Sports sells their video game products at Target and Best Buy stores, knowing that consumers shop at those stores for video games and entertainment


LESSON 2.4

What is SEM?

On Demand and streaming services have become prevalent options for consumers in today’s marketplace


As Apple tries to hold on to market share, they are constantly adding new streaming content for their Apple TV product (such as HBO Go, ESPN) to appeal to a broader base of customers

LESSON 2.4

What is SEM?

Strategy?

Whatever will make most $$$--mass distribution in as many outlets as possible? --partnerships with individual retailers to create exclusivity and drive demand?


LESSON 2.4

What is SEM?

Mass Distribution Example:

Taylor Swift’s album release Red -available at nontraditional retail outlets-Starbucks, Target, Papa John’s Pizza and Walgreens

-Sold over 1.2 million copies in its first week


LESSON 2.4

What is SEM?


Example of Exclusivity:-Jay-Z inked an exclusive (and lucrative) partnership with Samsung -Magna Carta Holy Grail album release-provided free copies of the album to 1 million Samsung cell phone and tablet owners before it was available for sale.

LESSON 2.4

What is SEM?


-Exclusive distribution doesn’t always guarantee success however

-Sears’ “Kardashian Kollection”

LESSON 2.4

What is SEM?


3. Promotion: Communicating information about products and services to consumers

-GameFly, Inc., an online video game rental subscription service-National summer-long promotion with Six Flags last summer-Six Flags guests given “free” trials of their subscription -Provided 1 million gift cards available for giveaway at toll booth exits at each park


LESSON 2.4

What is SEM?

Primary Functions of Marketing4. Financing – money matters

Examples:

Creating a budget for a company’s marketing plan

Analyzing the cost effectiveness of existing or past marketing efforts

Providing customers with flexibility in purchasing company products or services


LESSON 2.4

What is SEM?

In July of 2014, Under Armour bumped its annual forecast for sales for the

second time, citing "increased confidence" in

its footwear and international businesses.


LESSON 2.4

What is SEM?

Budgets and projections/forecasts are never an exact science.

The 2013 summer release of the film Star Trek Into Darkness

-production budget= $200 million-forecast= $100+ million barrier -actual= $84 million


LESSON 2.4

What is SEM?

The US Army ended it’s NASCAR sponsorship after the Air National Guard spent $650,000 to sponsor a 2010 NASCAR Sprint Cup race

Result = 439 recruitment leads, none of which ended up joining the Army


LESSON 2.4

What is SEM?


LESSON 2.4

What is SEM?

Cultivating prospective buyers (or leads) in a market segment

Conveying the features, advantages and benefits of a product or service to the prospective buyer

Closing the sale


5. Selling: Communicating with consumers to assess and fill their needs, as well as anticipating future needs


LESSON 2.4

What is SEM?

6. Marketing Information-Management: Gathering and using information about customers to improve business decision making


Professional sports teams began offering smaller ticket packages (half-season, quarter-season, five-game packages)

-customer research based-full season ticket plans were often too costly and/or time consuming for many fans


LESSON 2.4

What is SEM?

As visitors pass through the turnstiles at Disneyland in California, guests are randomly selected to answer interview questions

Questions asked:-where they are from-how many are in their group-how many times they have visited the theme park in the past.

Who cares?



7. Product/Service Management:

Designing, developing, maintaining, improving, and acquiring products or

services so they meet customer needs


LESSON 2.4

What is SEM?

LESSON 2.4

What is SEM?

“Nike Field Tester Program” -selected applicants wore Nike shoes for typically 4-8 weeks-Testers keep a daily written account of information relating to the product-Testers are required log the number of hours the shoes were worn each day, the surfaces shoes were worn on, observations regarding the shoe’s fit, performance and durability.

… and they got free shoes


LESSON 2.4

What is SEM?


Executives from professional sports teams are always working to improve their product, recognizing the

importance of fielding a competitive team to meet the demands of consumers (fans)


LESSON 2.4

What is SEM?

Following the App trend…

Microsoft announced that the release of its Xbox One

gaming console would allow developers to create their

own games



lesson 2.4 primary marketing functions copyright © 2014 by sports career consulting, llc

Documents

sports career consulting

services copyright

llc examples

ea sports

entertainment copyright

week copyright

low demand

llc example of exclusivity