Sports+Marketing+Ch. +5+Vocabulary+Updated+March+2024.docxa

Sports & Entertainment Marketing Chapter 5

Section 5.1- Vocabulary

  • Consumer Goods goods purchased and used by the ultimate consumer for personal use.

    • If you buy the product that you buy from the company and you keep them for yourself.

      • If you buy cleats and you keep them fro yourself to use them.

    • Products can be classified as consumer goods or business goods.

  • Business Goods goods purchased by organization for use in their operations.

  • Business goods is buying products to resell them.

    • If I buy cleats and then resell them. Business good.

  • Point of Difference a unique product characteristic or benefit that sets it apart from a competitor.

    • Products need to have a point of difference.

Steps in New Product Development:

  1. SWOT Analysis

    1. Strength, Weaknesses, Opportunities, Threats

    2. Video:

      1. Strengths of your product, what their bringing to the table.

      2. Weaknesses: things that your product may have of a negative affect.

      3. Opportunities: Take advantage of opportunities.

      4. Threats: Things you need to prepare for.

        1. Knowing what your wrongs are.

  2. Idea Generation

  3. Screening + Evaluation

    1. Focus groups:

      1. A panel of six to ten consume her who discuss opinions about a topic under the guidance of a moderator.

  4. Business Analysis

    1. Financial

  5. Development

    1. Prototypes

    2. Money saving and testing to make sure it actually works.

  6. Test Marketing

  7. Commercialization

    1. Commercialization: process that involves producing and marketing a new product.

Product Life Cycle:

  1. Introduction: tell people about your product. Focusing on customer awareness and getting the customer to try the product.

  2. Growth: increased demand for the product.

  3. Maturity: your profit margin is starting to shrink. Things are slowing down for your product.

  4. Decline: things are not looking good. There’s not a lot of interest in the product. Sales and things are going down.

Not all products fit the life-cycle pattern.

Three ways to manage the product life cycle are:

  • Modify: the product

  • Marketing: the product

  • Repositioning the products: repositioning changing a product’s image in relation to a competitor.

Fenty Beauty:

Introduction:

Fenty beauty by Rihanna was created for all women of all shades, personalities, attitudes, cultures, and races. This is really big in the makeup world because there are many women out there from different shades, and its hard to find the right one, or in general the right makeup product that works for you. Fenty beauty was first launched on September 8, 2017. It was popular for its board inclusivity across various skin tones.

Growth:

From continued to create amazing color shades for all women out there (50 shades and more). Fenty Beauty continued to grow as a whole makeup brand, continuing to product launch makeup palettes, mascara and my all time fave lipgloss and lipsticks. And continues to grow with also coming out with skincare products for all types of skincare needed for all women out there.

So overall I think Fenty Beauty is still in their growth phase, cause there still releasing products that are appealing and relevant to their target market which is all women out there who are starting to learn about there skin and what works best for them.

  • Repositioning
    Changing a products image in relation to a competitor's image.

  • Modifying the product

  • Marketing the product

Section 5.2- Vocabulary

  • Price the value placed on goods or services being exchange.

  • Price is importing t in a business because it helps determine a company’s profit or loss.

  • Price plays a significant role in the marketing mix.

  • Prestige Pricing pricing based on consumer perception.

  • High pricing.

  • Consumers think there really worth it to pay a lot of money for.

  • Odd-even Pricing pricing goods with either an odd numbers or even numbers to match a product’s image.

  • $99.99 – deal/bargain

  • $100.00 even numbers – quality

  • Target Pricing pricing goods according to what the customer is willing to pay.

Other pricing considerations include:

  • Demand

  • Cost

    • Markup

    • Cost plus pricing

  • Markup difference between the ratio or wholesale price and the cost of an item.

  • Cost-plus Pricing pricing products by calculating all cost and expenses and adding desired profit.

  • Non-price Competition competition between businesses based on quality, service, and relationships.

Pricing objectives and strategies include:

  • Profit objective

  • Market share objective

  • Special pricing: price lining, bundle pricing, loss-eager pricing, yield-management pricing

  • Market shares the percentage of the total sales of all companies that sell the same type of product.

  • Price Lining selling all goods in a product line at specific price points.

  • Bundle Pricing selling several items as a package for a set price.

  • Loss-leader Pricing pricing an item at cost or below cost to draw customers into the store.

  • Yield-Management Pricing pricing items at different prices to maximize revenue when limited capacity is involved.

Manufacturers will offer discount in the following situations:

  • Buying in large quantities

  • Buying prior to the buying season

Allowances are reductions taken from the quoted price. One type of allowance is a trade in.

  • Price Fixing an illegal practice whereby competitors conspire to set the same price.

    • The Sherman anti-trust act prohibits pricing fixing and predatory pricing.

    • Price discrimination was originally prohibited by the Clayton Act and later by the Robinson-Pathan Act.