CONTENT/TEACHING OUTLINE COMPETENCY: OBJECTIVE: 2.00 2.01 Explain business foundations relevant to the sports and entertainment industry.

Explain the concept of marketing.

A. Explain marketing and the marketing concept. 1. Marketing is the process of developing, promoting, pricing and distributing products in order to satisfy customers needs and wants. Marketing involves all the activities necessary to get a product from the producer to the consumer. 2. The marketing concept states that businesses become successful by directing all of their efforts to satisfying the needs and wants of the customers. By offering the goods and services that consumers want, businesses will make a profit. The marketing concept recognizes the importance of the consumer in the buying process. B. Describe the seven marketing functions. 1. Marketing-information management is obtaining information needed to make sound business decisions. For example, the Carolina Hurricanes randomly select fans to complete survey questions about the food choices at home games. 2. Product/service management involves concepts and procedures necessary to obtain, develop, maintain, and improve a product or service mix in response to market opportunities. a. Risk management is preventing or reducing business loss. For example, the RBC Center hires security guards for events. b. Purchasing includes buying goods and services for use in day-to-day business operations. For example, a stadium purchases beverages for resale. 3. Financing is obtaining the money needed to finance the operation of a business. This includes bank loans and offering credit to customers. For example, the city of Charlotte develops a financing plan for a new basketball arena. 4. Pricing involves determining a value to charge for goods and services. It is important to consider competition and the amount consumers are willing and able to pay. For example, a retailer purchases t-shirts for $6 and sells them for $12 at a concert. 5. Promotion is communication used to inform, persuade, or remind people about a businesss products. For example, the Carolina Panthers use a t-shirt launcher to give away t-shirts at home games. 6. Selling is determining customer needs and wants and responding to those needs and wants through communication intended to influence purchase decisions and ensure satisfaction. For example, Evadale purchases an Eminem t-shirt at a concert. 7. Distribution involves the transporting, storing and handling of goods on their way from the manufacturer to the consumer. For example, unprepared foods must be transported in a refrigerated truck from the manufacturer to the venue.
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CONTENT/TEACHING OUTLINE COMPETENCY: OBJECTIVE: 2.00 2.01 Explain business foundations relevant to the sports and entertainment industry. Explain the concept of marketing.

C. Identify the four Ps of marketing. 1. The marketing mix, known as the four Ps, is a combination of decisions a business must make in order to best reach its target market. 2. The four Ps are product, price, place and promotion. 3. Products include the goods and services a business will offer to its customers. a. Choice of product will the business offer a variety of products? b. Packaging does the packaging protect the product and provide necessary information about the product? c. Level of quality what level of product quality will the business ensure? d. Brand name what brand name products will the business offer? e. Warranty will the business offer a warranty to its customers to ensure satisfaction? 4. Price is the amount a business charges customers for their products. a. Price setting price will be set based on product demand, cost, and competitors actions. b. Terms will the company only accept cash? Will the company extend credit? What type of credit will the company offer? c. Discounts will the business offer discounts to employees? Will the business discount merchandise at certain times of the year? 5. Place (distribution) is making products available at the right time and location. a. A channel of distribution is the path a product takes to get from the producer to the consumer. b. What specific stores will offer the products? For example, wholesaler, retailer, department, discount, and specialty. c. What method of transportation will be used to get the product from the producer to the consumer? For example, truck, train, plane, boat, and pipeline. d. How will inventory be handled and controlled? For example, physical, storing, checking, and receiving. 6. Promotion is informing and reminding customers of the products available to them. Promotion also involves persuading customers to purchase a product. a. What will the message be? b. When will the message be delivered? c. Where will the message be delivered? d. What inducements will be used to encourage customers to purchase the product? e. How will the message be delivered?

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CONTENT/TEACHING OUTLINE COMPETENCY: OBJECTIVE: 2.00 2.01 Explain business foundations relevant to the sports and entertainment industry. Explain the concept of marketing.

Resources Printed References: Marketing Essentials, 3rd ed., pp. 20-23. Sports and Entertainment Marketing, pp. 4-35, 73-79. Marketing, pp. 4-21. Suggested Activities: Select a sport or entertainment product or service. Describe the seven marketing functions as they relate to the product or service. Cut out a sports product. Divide the product into seven sections. Write in the name of each function, define the function and give an example of the function related to the product. There is a 2.00 project at the end of this competency. Websites:

Teacher Notes

Other Resources: 2.01 PowerPoint Presentation

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