Chapter 4

Hit a Home Run with

Customers
4.1 The Marketing Concept
4.2 Discover What People Want
4.3 Target Markets
4.4 Customer Service

Sports and Entertainment Marketing

© Thomson/South-Western
Winning Strategies
Frito-Lay Reaches Teens
 U.S. teenagers spend $175 billion annually
 teens are trendsetters and early adopters
 teens offer a potential lifetime of purchasing for
the products they start to use when they are
young
 in an effort to obtain teen customers, Frito-Lay
initiated a variety of innovative marketing
techniques involving music partnerships
 this strategy resulted in a huge return on investment

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Lesson 4.1

The Marketing Concept

Goals
 Explain the central focus of the
marketing concept.
 Explain the reasons for increased
sports and entertainment options.

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Terms
 marketing concept
 productivity
 breakeven point
 opportunity cost

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THE MARKETING CONCEPT
 About half of every consumer dollar
spent pays for marketing costs.
 Satisfying customer needs is the most
important aspect of marketing.
 marketing concept
 keeping the focus on the customer’s needs
for a product or service

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Maintain Relationships
 Successful customer relationships are
critical to the marketing concept.
 Customer satisfaction is the bottom line
for maintaining successful marketing
relationships.

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 What is the most important aspect of
marketing?

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INCREASED SPORTS AND
ENTERTAINMENT OPTIONS
 U.S. citizens have more discretionary
income than in the past.
 drives up demand for sports and
entertainment
 increases competition

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Customer Focus
 productivity
 rate at which companies produce goods or
services in relation to the amount of
materials and number of employees utilized

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 successful marketing strategy
 identify customer
 needs
 location
 provide products perceived as superior
 maintain successful customer relationships
 offer the appropriate marketing mix
 product
 price
 promotion
 location

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Weekend Entertainment
Choices
 breakeven point
 the minimum sales and attendance
required to cover all of the expenses of
organizing, planning and promoting the
event
 profit
 revenue earned beyond the breakeven
point
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Opportunity Cost
 opportunity cost
 the value of the next best alternative that
you forgo when making a choice
 The value is measured in terms of the
benefits that you are giving up.

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 Explain the reasons for increased sports
and entertainment options.

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Lesson 4.2

Discover What People Want

Goals
 Explain the importance of understanding
buyer behavior when making marketing
decisions.
 List and describe means of collecting
marketing information for use in decision
making.
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Terms
 economic market
 benefits derived
 comparative advantage
 emotional purchases
 rational purchases
 patronage purchases

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UNDERSTAND BUYER
BEHAVIOR
 economic market
 all of the consumers who will purchase a
product or service

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Consumer Spending Habits
 benefits derived
 the value people believe they receive from
a product or service

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 comparative advantage
 the capability to produce products or
services more efficiently and economically
than the competition

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Consumer Wants and Needs
 hierarchy of needs
 identifies five human areas of needs

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Chapter 4 Sports and Entertainment Marketing
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 emotional purchases
 spending with little thought during emotional
times
 rational purchases
 define wants and needs
 assess priorities and budget
 conduct research
 compare alternatives
 make a well thought out purchase

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 patronage purchases
 based on loyalty to a particular brand or
product

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 What is meant by benefits derived?

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GATHER INFORMATION
 Marketers are often involved in every
step of the decision-making process.

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 The decision-making process involves
the following steps.
 recognize a need or a want
 conduct product research
 evaluate choices
 decide what to purchase
 evaluate the product after the purchase

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Information Needed for
Marketing Decisions
 Information about consumers that is
important to consider include
 demographics
 shopping behaviors
 how consumers spend money
 product and brand preferences
 frequency of purchases

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 The business environment impacts
consumer spending as follows:
 economic uncertainty reduces consumer
spending
 marketplace competition provides
consumers with choices
 technological advances have impacted
how consumers research and buy
products

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Sources of Information for
Businesses
 internal sources
 a business’s own customer records, sales
records, production records, and operation
records
 external sources
 government reports, trade and
professional organizations, business
publications, commercial data, and
information services
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 primary data
 obtained for the first time and specifically
for the particular problem or issue being
studied
 secondary data
 information previously collected for
another purpose but is now found useful in
the current study

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 Explain the difference between primary
and secondary data.

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Lesson 4.3

Target Markets
Goals
 Define target market and market
segment.
 Describe how businesses use market
segmentation.

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Terms
 target market
 market segment
 market share

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DETERMINE THE TARGET
MARKET
 target market
 specific group of consumers you want to
reach

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Focus Marketing Efforts
 market segment
 a group of consumers within a larger
market who share one or more
characteristics
 Consumers belong to multiple market
segments.
 Marketers must identify the market
segment to which they want to sell.

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Meet Target Market Needs
 Market segmentation data can improve
business decision making.
 number of potential customers
 customer income level
 level of interest in product or service

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 What is a target market? Provide an
example of a company’s target market.

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MARKET SEGMENTATION
 Markets may be segmented in many ways.
 geographic location
 demographics
 psychographics
 behavior

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Geographic Segmentation
 divides markets into physical locations

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Demographic Segmentation
 information that can be measured
 age
 income
 profession
 gender
 education
 marital status
 household size

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Psychographics Segmentation

 characteristics that cannot be physically

measured
 values
 interests
 lifestyle choices

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Behavioral-Based Segmentation
 behavioral-based segmentation
 focuses on a customer’s attitude toward products
and services
 product usage
 what products you use and how often
 product benefits
 the positive experiences or associations people
derive from using a product or service

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Capture a Market Share
 market share
 percentage of total sales of a product or
service that a company expects to capture
in relation to its competitors

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 List and describe four types of market
segmentation.

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Lesson 4.4

Customer Service
Goals
 Explain the importance of outstanding
customer service.
 Explain what it means to establish a
service culture.

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Terms
 customer service gap
 values-based culture

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OUTSTANDING SERVICE
EQUALS SUCCESS
 Business success depends on excellent
customer service.
 Customer relationships should continue
after the sale of goods and services.

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A Track Record for Great
Customer Service
 customer service gap
 the difference between customer
expectations and the services actually
received
 Customers are likely to tell at least 10
people about their poor customer
service experiences.

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Training Programs That Make
an Impact
 Individuals hired for customer service
positions should have a positive attitude
and look forward to meeting the public.
 Proper employee training in proactive,
efficient and courteous customer
service is critical to providing a pleasant
experience for customers.

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 Why is outstanding customer service
critical to a business in a highly
competitive marketplace?

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CREATING A SERVICE
CULTURE
 Gallery Furniture has effective customer
service principles. They are:
 Demonstrate a values-based culture that is
rooted in high performance and excellent
customer service.

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  Follow the “FAST” (Focus, Action, Search,
Tenacity) strategy.
 Passion results in energy.
 Demonstrate pride in every sale.
 Remember the value of long-term positive
relationships.

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How May I Help You?
 “It’s not my department” should be
replaced with “How may I help you?”
 mystery guest
 hired by an outside firm to have an
individual assess the performance of a
business
 feedback on the individual’s experience as a
customer is provided to the hiring business

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 Explain what it means to have a values-
based culture.

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PERFORMANCE INDICATORS
EVALUATED
 Communicate ideas clearly to the judge
(potential investor).
 Analyze all relevant data for proposing a
new celebrity-theme restaurant.

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 Demonstrate critical thinking and problem-
solving skills necessary to propose and
operate a successful business.
 Interpret demographics and financial data
for a proposed business.
 Understand consumer demand and the
existing competition.

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THINK CRITICALLY
1. Why is a business plan necessary for a
popular celebrity who wants to open a
restaurant in a city where he or she is
well liked?
2. Give three examples of successful
celebrity-theme restaurants and what
makes them popular.

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 3. What would be a good grand opening
event to attract the maximum amount of
attention to the new restaurant?
4. What advantage does a professional
athlete have over an average citizen
when opening a restaurant?

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