Notes on Understanding the External Marketing Environment- Chapter 3 – Flashcards

- any characteristics, developments, or trends that occur outside of an organization that could potentially impact it - these characteristics are BEYOND the control of the organization - Managers need to make decisions with these characteristics in mind - the External Marketing Environment is constantly changing

1) Competition 2) Economy 3) Technology 4) Political, Legal, Regulatory 5) Sociocultural

- anything that stand in the way of your brand and the consumer - anything that your customer could be doing instead of going to your organization's event - Three Types of Competition: 1) *Brand Competition*--> competition that has similar customers (Ex: MLB Team vs. College Baseball Team) 2) *Category Competition*--> competition that provides similar forms of entertainment (Ex: MILB Game vs. Water Park) 3) *Generic Competition*--> competition that acts as any other way the customer could be spending their money instead of going to the game (Ex: MLB Game vs. Paying Bills)

- an assessment of current market trends will help to yield insight as to how economic conditions may affect a sports organization - Economic Trends are beyond the control of the organization, but if these trends are ignored, the poor marketing decisions will be made - an evaluation of Current Consumer Spending will help an organization decide how it wants to price its offerings

- Technology could be used by sports organization as new ways to conduct old business - Technology in Sports can Add Value to the consumer experience - Ex: Cashless concessions, Paperless Tickets - the challenge for marketers is to figure out which technological advancements have the greatest potential to affect their business in a positive manner

- Sports Organizations are under the control of: *Industry Regulations=* rules set up by organizations or sanctioning bodies that oversee a particular sport *Governmental Regulations=* Legal rules set up by the Federal Government that oversees the actions taken by teams in sports or the management of teams

- changes in the characteristics and behaviors of people over time will have an impact of average consumption of sports - changes in trends will impact consumer behavior, and thus will impact the marketing tactics used by Sports Marketers *- Six Current Sociodemographic Trends* **because of these changes, you want to *market towards these groups* to make your marketing expenditures as efficient as possible

1) Aging Population (older ppl have more time to consume sports) 2) Greater Ethnic Diversity 3) Increased Buying Power of Women 4) Geographic Growth Rates of US Regions 5) Decreased Leisure Time 6) Interest in Social Responsibility

*Strategic Plan=* a plan that leads to tactical decisions about what an organization is going to offer and to whom it will offer it - there are Five Steps in the Strategic Planning Process

1) Determine Values and Mission 2) Conduct Situational Analysis (SWOT Analysis) 3) Set Goals and Objectives 4) Gather Information to Manage the Marketing Environment (Primary Data and Secondary Data) 5) Develop a Strategic Plan