Exam 1 Flashcards
Chapters 1-7 & guest speaker presentations
marketing mix
how a business chooses to blend price, product, distribution and promotion
product
what is it?
distribution
where and how?
price
how much?
promotion
how do we make customers aware and wanting to buy?
discretionary income (fun money)
the amount of $$ that people have left to spend after paying for necessities
demographics
shared characteristics of a group
age, marital status, gender, ethnic group etc.
when was the first admission charged?
baseball in 1858
when was the first endorsement deal?
1923
when was the first pay-per-view?
boxing in 1975
when did ESPN debut?
1979
what is the goal of sports marketing?
use the right marketing mix to meet customer needs while still generating profit
gross impression
of times per ad that a product is associated with an athlete, team or entertainer
monetary value of sports marketing
multi-billion dollar industry that affects the economy
emotional value of sports marketing
fans have emotional ties to teams
entertainment
performance that people are willing to spend time & $$ to watch
entertainment marketing
influencing how people choose to spend their time and money on entertainment
marketing concept
keep the focus on the customers by listening to their feedback and monitoring customer trends
examples of marketing strategies
monitor the competition, monitor the consumer trends, and make improvements
breakeven point
minimum $ sales amount to cover expenses
opportunity cost
the value of the next best alternative when making a decision.
the value is the benefit that you “give up” by making your choice
benefits derived
the value that people think they receive from a product or service
comparative advantage
the capability to be more effective/efficient than the competition
emotional purchase
buying with little thought during emotional highs/lows
rational purchase
buying based on wants & needs, budgets, research, and alternatives
patronage purchase
buying based on loyalty to product or brand
mass marketing advantages
reach large audience, gain wider exposure, increase sales volume, and lower marketing cost
mass marketing disadvantages
targets a massive group of consumers that may have different needs, and increased competition
geographic segmentation
divides markets into physical locations
demographic segmentation
divides market by variables that can be measured
age and income
psychographics
characteristics that can’t be measured
values & interests
behavioral-based segmentation
based on customer attitude toward products and services
customer service gap
difference between customer expectations and reality
customer service is often spread through word of mouth
values-based culture
culture that communicates values through excellent customer service
revenue stream
an activity that will produce $$
economic impact
effect produced such as jobs created or revenue generated, as a result from consumer and business decisions
loss
not enough revenue to cover expenses
economic utility
amount of satisfaction someone receives from consuming a product or service
more likely to buy higher utility products
how to improve economic utility
form, time, place, and possession
form utility
improves PHYSICAL characteristics of product/service
time utility
makes product available WHEN people want it
place utility
makes the product available WHERE consumers want it
possession utility
makes product/service AVAILABLE when people want it
bootstrapping
building company without outside assistance
capital
wealth in the form of money or property
venture capital
financing provided to start a company in return for part ownership
forecast
report that predicts expenses incurred and revenue to be earned
risk
situation involving exposure to harm or danger
natural risk
things like weather, can’t be avoided
human risk
customer dishonesty
employee theft
employee incompetence
economic risk
caused by changes in the business environment
speculative risk
investment could gain or lose
pure loss risk
no chance of gain
controllable risk
can be prevented or reduced
uncontrollable risk
cannot be prevented
insurable risk
chance of loss is predictable, and the $ amount can be estimated
uninsurable risk
chance that loss will occur, and the $ amount cannot be estimated
strategies to avoid risk
careful planning, attention to detail, and adherence to legal regulations
liable
legal responsibility for damages and medical bills of the injured person/object
risk transfer
either transfer to company (insurance), or transfer to customer (waivers)
what kind of loss cannot be recovered through insurance?
retained loss
contingency planning
preparation for unexpected emergency
ESA
Event Safety Alliance is a non-profit that promotes event safety
risk assessment
step by step process that involves identifying and preparing for risks with a trained staff
risk assessment process
identify hazards
determine who they might affect
evaluate risk management options
implement best option
review to see if adjustments are necessary
ethics
system for deciding between right and wrong in a reasoned matter
ethical dilemma
choice between two equal moral principles
joint venture
agreement between two or more companies to work together on a project
piracy
theft of copyrighted material
major problem in Chinese film industry
censorship
altering or editing media that is considered objectionable
differentiation
customizing product to appeal to different markets
box office
income from ticket sales
niche travel
traveling planned around a special interest
ecotourism
responsible travel that conserves the environment and wellbeing of local people
MIS
Marketing-Information System
procedures and methods used to store info that businesses need to make decisions about how to please customers
Marketing research
provides solutions to marketing problems through the use of scientific problem solving
syndicated research
conducted by independent company and then offered for sale to businesses in the industry
client-side researchers
in house staff researchers that also work with external agencies
analytics
process of using computer programming to organize data into meaningful patterns
algorithm
instructions on how to sort data
data mining
uses tech to “dig up” data
CLV
customer lifetime value is estimated profit a company will earn from a customer
cohort
group of people that share certain characteristics
generally behaves in a certain way
trademark
legal protection of words and symbols used by a company
licensed brand
well known name or symbol established by a company and sold for use by others to promote products
