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Segmentation, Targeting, and the Marketing Mix

Objectives 1

Describe the role of marketing in creating satisfying exchanges

Explain the role of advertising in communicating a product’s utility

Identify the various methods advertisers use to segment and aggregate consumer and
business markets

Objectives_2

Discuss how target marketing affects the firm’s advertising strategy

Describe the elements of the marketing mix and the role of advertising in the mix

Explain the purpose and importance of branding

Marketing and Exchange
The purpose of marketing is to create exchanges that satisfy the perceived needs and wants of
individuals and organizations
Consumer Needs & Product Utility
Utility is the product’s ability to satisfy both functional needs and symbolic wants

Market Segmentation

Identifying groups of people with similarities

One or more groups become target market

Hardee’s Thickburger campaign targets young men

Geographic Segmentation

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Extending the Product Life Cycle .

Marketing Communications Factors important for advertising success – Strong primary demand – Chance for product differentiation – Hidden qualities of high importance to consumers – Opportunity to use strong emotional appeals – Substantial sums available to support advertising .

The Economics Of Sport and Leisure Content • Sport and Leisure industries • Demand and supply analysis of leisure events • Income elasticity of demand and leisure activities • Monopolies in the leisure sector • Exchange rates and the travel industry Sport and Leisure Industries • The sport and leisure industries covers the following: – Holidays and travel – Film industry – TV – Theatre – Sports Demand and Supply Analysis Of Leisure Events • Demand and supply interact resulting in an equilibrium price for leisure events • Generally the higher the price of the product / event the less is demanded • The demand curve shows an inverse relationship between price and quantity demanded • If price changes then you would move along the demand curve to calculate any change in quantity demanded Shifts in the demand curve for leisure events • • • Shifts in the demand curve for leisure events can be caused by: – Prices of other goods – either substitutes (other leisure events) or compliments – Incomes – Tastes and fashions – Consumer expectations – Advertising – Population level and structure These factors can enable the demand curve to shift to the: – Left (less demanded at each price) – Right (more demanded at each price) For example fashion and tastes could change meaning rugby becomes more popular so the demand for rugby increases shifting the demand curve out .

g. the cinema they are likely to be more inelastic than more expensive activities such as holidays Monopolies in the leisure sector • Monopolies are examples of market failure • In some sectors of the leisure industry there tend to be large companies that dominate the market .• The current performance of British teams and individuals influences the demand for sporting events if British teams / individuals are doing well demand is likely to be higher Supply of leisure events • The supply curve shows the relationship between price and quantity demanded • The supply curve generally slopes upwards at higher prices more is supplied • There is a positive relationship between price and quantity supplied Shifts in Supply Curve • The following factors can cause a shift in supply: – Profitability of other goods / services – Technology – Costs of production / supply – Natural shocks – Social factors – Expectations of producers Demand and Supply Curve and leisure events • The demand of leisure activities has increased in the UK as peoples incomes have risen • Changes in tastes / fashions and technology have also helped fuel the increase in demand • Since the 1960’s people have been spending more time and more money on leisure activities Income elasticity of demand and leisure activities • Income elasticity of demand measures how responsive quantity demanded is to a change in income • Generally for leisure activities demand is elastic so when income increases demand increases by a greater proportion • This is because leisure activities are seen as luxuries Income elasticity and leisure activities • Elasticity of specific activities is influenced by the following factors: – Number of substitutes – many leisure activities have lots of substitutes – if the price of going to the cinema increases people may rent films or go bowling instead – The % of income spent on the product – if leisure activities are relatively cheap e.

• This is apparent in the travel industry where travel agents are dominated by Thomas cook and airtours in the UK • Cinemas also tend to be dominated by large companies such as the Odeon. vue and UCI Monopolies in the leisure centre • The markets tend to be more like oligopolies in nature • This means that the firms often set prices which leaves the consumer with less choice Exchange rates and the travel industry • Exchange rates influence the demand for holidays • If the £ is strong then the relative cost of going on holiday is lower and therefore demand for holidays is likely to increase • The exchange rate between the £ and other currencies will influence the demand for holidays to different countries • Recently the $ has depreciated in value against the £ therefore holidays to the USA are cheaper and there has been an increase in demand for these .

• Flexible hours • It's fun! Where else do you get paid to ensure people have a great time? . Tourism and Hospitality in the spotlight • Widest possible choice of career and lifestyle. • One of the UK's fastest-growing industries.Why work in the Leisure Industry? • Olympics putting UK Leisure. • Room to move up or across sectors and industries.

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Level 2 .Fitness Instructor – Qualifications/Experience etc • Must be qualified or start as an assistant and complete work based qualifications (also Apprenticeships in some Local areas) • Nationally recognised level 2 qualification giving entry on the Register of Exercise Professionals e.g.

£12.000 per year • May rise to from around £14. childcare vouchers.000 to over £20. need a Criminal Records Bureau (CRB) clearance Fitness Instructor – Average Salary’ • Starting salaries: £10 .000 • On the job training plus chance to gain qualifications. discounts. • Freelance instructors can earn between £10 and £20 per hour .Certificate in Fitness Instructing • A first-aid certificate which includes CPR • May need lifeguard qualifications • Public liability insurance • If work with children or vulnerable groups. performance related pay. REPS registration paid etc.