Lesson 2.4
Primary Marketing Functions
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© 2016 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.4
Primary Functions of Marketing
 Pricing
 Distribution
 Promotion
 Financing
 Selling
 Information-Management
 Product and Service Management
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© 2016 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.4
Primary Functions of Marketing
Pricing: Assigning a value to products and services
Price is determined on the basis of supply and demand
Tickets to the Super Bowl are very expensive because
demand is high.
At Super Bowl 50 at Levi's Stadium, a hot dog cost $8
($6.25 during the regular season) and a bottle of water was
$7 ($5.75 in the regular season) while souvenirs and
merchandise prices reportedly doubled (via fox
sports.com).
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© 2016 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.4
Primary Functions of Marketing
Pricing: Assigning a value to products and services
The New Orleans Pelicans
reduced ticket prices by 10%
forthe 2014-15 NBA season in an
effort to attract more fans to the
stadium, resulting in a 19%
increase in ticket sales for the
season.
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© 2016 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.4
Primary Functions of Marketing
Pricing: Assigning a value to products and services
Despite the fact that Disney
announced ticket price
increases at both Disneyland
and Disney World while
eliminating many of the
traditional discounts given to
local residents, the majority of
Disney parks enjoyed
attendance increases.
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© 2016 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.4
Primary Functions of Marketing
When demand fluctuates as frequently
as it does in the ticketing world,
companies must implement strategies
to help identify the best price points to
match demand.
This is why many organizations are
moving toward a “dynamic pricing”
structure where games in higher
demand cost more than the same ticket
for a game with lower demand…
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© 2016 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.4
Primary Functions of Marketing
Pricing: Assigning a value to products and services
The secondary and broker markets have a large
impact on ticket pricing and availability. According to
CBS, at the 2016 Indianapolis 500, general admission
seats originally sold for $40 and then were resold for
upwards of $140, while seats initially priced between
$50 and $230 were resold for $180-$860.
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© 2016 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.4
Primary Functions of Marketing
Pricing: Assigning a value to products and services
Tickets to the 2016 Wimbledon Final sold out just 27
minutes after going on sale online. Event officials
anticipated a high demand for tickets and raised prices
accordingly, yet The Guardian reported that over
111,000 fans were waiting in an online queue when
only 22,000 total tickets were available. As a result,
tickets being resold on the secondary market
commanded outrageous prices, starting at over $3,000
with the most expensive selling for nearly $25,000.
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© 2016 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.4
Primary Functions of Marketing
Distribution: Determining how best to get products
and services to consumers
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
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© 2016 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.4
Primary Functions of Marketing
On Demand and streaming services have become
prevalent options for consumers in today’s
marketplace
In 2015, the NBA announced
it would begin offering
individual, out-of-market
games for $6.99 available
either via streaming on
smartphones, tablets, and
PCs, or by tuning in from any
cable / satellite provider that
currently carries NBA's League
Pass subscription package.
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© 2016 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.4
Primary Functions of Marketing
On Demand and streaming services have become
prevalent options for consumers in today’s
marketplace
NCAA March Madness Live was
available to stream on a record
12 different platforms in 2016,
including Amazon Fire TV, Roku
players and Roku TVs, Apple TV,
Amazon Fire tablets, iOS and
Android mobile devices,
Windows handsets, Web
browsers, and the Apple Watch.
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© 2016 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.4
Primary Functions of Marketing
On Demand and streaming services have become
prevalent options for consumers in today’s
marketplace
In 2016, Apple TV
partnered with and
launched Sling TV on
their platform to give
users increased and
improved access to
stream live sports.
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© 2016 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.4
Primary Functions of Marketing
On Demand and streaming services have become
prevalent options for consumers in today’s
marketplace
Twitter live-streamed Wimbledon
in 2016, then signed a one-year
$10 million deal with the NFL to
stream ten Thursday night
games during the 2016 season
while also coming to terms with
the NBA for an exclusive live
programming agreement.
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© 2016 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.4
Primary Functions of Marketing
Sports and entertainment companies must
determine which distribution strategies will
help to maximize sales, whether that is mass
distribution in as many outlets as possible or
partnerships with individual retailers to
create exclusivity and drive demand.
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© 2016 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.4
Primary Functions of Marketing
According to the Sports Business Journal, in 2015, a
sports performance beverage brand aiming to compete
with Gatorade (called Glukos) elected to pursue a
distribution strategy that focused on special retail
stores in several specific categories: sporting goods,
running, outdoors, cycling, golf and vitamin retailers
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© 2016 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.4
Primary Functions of Marketing
Retail chain Sports Authority
provided an excellent distribution
channel for Under Armor to sell
its products. San Francisco Gate
reported that when Sports
Authority filed for bankruptcy in
2016 (and announced it would be
closing all its stores),Under
Armour executives were forced to
cut the company’ s sales
forecasts by nearly $5 billion.
Subsequently its stock quickly dropped by almost 4% the next day
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© 2016 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.4
Primary Functions of Marketing
To promote last year’s release of his album Magna
Carta Holy Grail, Jay-Z inked an exclusive (and
lucrative) partnership with Samsung to provide free
copies of the album to one million Samsung cell phone
and tablet owners before it was available for sale.
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© 2016 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.4
Primary Functions of Marketing
In 2016, Billboard reported that Lady Gaga
and Elton John partnered with Macy's to create
a new line of products focused on the theme
'Love Bravery' - products were sold exclusively
at Macy's, with portions of the proceeds going
to charity.
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© 2016 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.4
Primary Functions of Marketing
In 2015, on the heels of the launch of Apple’s new
streaming service, rap artist Dr. Dre released one of
the most highly anticipated albums in history
exclusively on the Apple Music platform.
According to Billboard, the album sold nearly 300,000 units in its
first week and cumulative sales have already reached over 500,000.
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© 2016 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.4
Primary Functions of Marketing
Exclusive distribution doesn’t always guarantee
success however, illustrated by the disappointing
sales of Sears’ “Kardashian Kollection”
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© 2016 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.4
Primary Functions of Marketing
Promotion: Communicating information about
products and services to consumers
One of the Cincinnati Reds’
most popular season-long
promotions involves a free
pizza giveaway from local
pizza chain LaRosa’s every
time Reds pitchers strike out
at least 11 batters in a home
game.
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© 2016 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.4
Primary Functions of Marketing
Promotion: Communicating information about
products and services to consumers
According to bizjournals.com,
LaRosa’ s gave away an average
of $900,000 worth of pizza the last
in three years as a result of the
promotion but has only given away
$62,000 in pies halfway through
the 2016 baseball season (which
isn’ t necessarily a good thing for
the company)
Copyright
© 2016 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.4
Primary Functions of Marketing
Promotion: Communicating information about
products and services to consumers
Short-term promotions are often
created in an effort to drive immediate
sales. In conjunction with Pepsi’ s
2016 emoji marketing campaign, the
New York Yankees offered a simple
twist on one of the oldest promotions
in sports by giving away Yankees’
caps featuring a PepsiMoji logo to the
first 18,000 fans to the ballpark.
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© 2016 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.4
Primary Functions of Marketing
Promotion: Communicating information about
products and services to consumers
Pepsi also rolled out team-branded
emoji packaging in certain markets as
part of their PepsiMoji campaign (like
the Marlins and Dolphins in Miami).
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© 2016 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.4
Primary Functions of Marketing
Financing activities could include:
 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
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© 2016 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.4
Primary Functions of Marketing
In 2016, Nike confirmed long term
revenue projections of $50 billion by
2020, up from $32 billion today.
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© 2016 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.4
Primary Functions of Marketing
Budgets and projections/forecasts are never an
exact science.
The 2015 release of the film Jupiter Ascending was
forecast by some analysts to gross $200-220 million has
made just $56 million domestically (as of July 2015), not
good news for the studio after budgeting a reported
$180 million to produce and market the movie
Copyright
© 2016 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.4
Primary Functions of Marketing
The US Army chose to end it NASCAR sponsorship
after the Air National Guard spent $650,000 to
sponsor a NASCAR Sprint Cup race that resulted in
just 439 recruitment leads, none of which ended up
joining the Army.
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© 2016 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.4
Primary Functions of Marketing
Like many professional sports
franchises, MLB’s Washington
Nationals offer payment plans for
customers purchasing ticket packages.
According to the team’s website, the
Nats’ “Grand Slam E-Z Payment Plan
allows season ticket holders to pay a
fraction of the total cost of their
tickets in easy monthly payments.
This is available for either Full, Half, or
Partial Season Ticket Plans.”
Copyright
© 2016 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.4
Copyright
© 2016 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.4
Primary Functions of Marketing
Selling: Communicating with consumers to assess and
fill their needs, as well as anticipating future needs

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
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© 2016 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.4
Primary Functions of Marketing

Many professional sports teams utilize a call center
to revenue generated by ticket sales

A call center is a physical location where calls are
placed, or received, in high volume for the purpose
of sales, marketing, customer service; typically
through the use of telemarketers

Call centers employ a staff to perform
telemarketing activity with the goal of selling
ticket packages over the telephone
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© 2016 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.4
Primary Functions of Marketing
The University of Minnesota athletics department
outsourced their ticket sales operation to a third party
organization (Aspire Group) to help boost ticket sales for
Gopher athletic events.
Aspire deployed a full-time sales staff to work in
Minneapolis on the effort.
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© 2016 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.4
Primary Functions of Marketing
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) after determining through
customer research that full season ticket plans
were often too costly and/or time consuming for
many fans to purchase
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© 2016 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.4
Primary Functions of Marketing
As visitors pass through the turnstiles at Disneyland in
California, guests are randomly selected to answer
interview questions from friendly staff members
equipped with hand held data recording devices. This
provides Disney management with up to date
information about park guests, such as where they
are from, how many are in their group, and how many
times they have visited the theme park in the past.
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© 2016 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.4
Primary Functions of Marketing
Product/Service Management:
Designing, developing, maintaining,
improving, and acquiring products or
services so they meet customer needs
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© 2016 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.4
Primary Functions of Marketing
In an attempt to strengthen their position in the
U.S. market and attract top creative talent, Adidas
opened a design studio in Brooklyn in 2016
BrooklynFarm houses elite designers and
developers but also encourages collaboration with
music, film and technology personnel
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© 2016 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.4
Primary Functions of Marketing
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)
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© 2016 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.4
Primary Functions of Marketing
In 2015, Major League Baseball made a tweak to its
annual “Home Run Derby” event by adding a clock,
an adjustment to the product that left fans very
pleased with the results
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© 2016 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.4
Primary Functions of Marketing
In an effort to appeal to more families, the
Atlanta Falcons took the unconventional
approach of lowering concessions prices at their
new stadium by introducing $2 hot dogs and
sodas (less than half what most stadiums
charge) as well as a handful of other low cost
items for the 2016-17 NFL season.
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© 2016 by Sports Career Consulting, LLC
LESSON 2.4 REVIEW (ANSWERS)
What is SEM?
1) Describe the seven functions of marketing
1- Pricing
2- Distribution
3- Promotion
4- Financing
5- Selling
6- Marketing information-management
7- Product and service management
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© 2016 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.4
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© 2016 by Sports Career Consulting, LLC