TOP QUESTIONS MISSED IN SPORTS AND ENTERTAINMENT …



SPORTS AND ENTERTAINMENT MARKETING INFO AND HINTS

Objective 4.00 Selling = Exchange of goods & services from producers to consumers for a price. Sponsors pay a rights fee for media time to a sports & entertainment organization for the opportunity to provide broadcasts.

Data-based mktg. involves the collection of info about past, current & potential customers. One way to generate leads is through telemarketing (telephone sales) For example, sales representatives from Nike call customers who recently purchased the new Jordan shoes to offer them a second pair at a 25% discount. In some cases, consumers will call in response to a promotional campaign.

Personal selling - is a two-way communication between buyer & seller face-to-face. Buy a jersey in a company store - or method typically used to sell shoes.

B2B Business to business - sales between two business owners - GoodYear Tire making a sales presention to a Nascar team.

BUSINESS (GOOD YEAR) TO BUSINESS (NASCAR TEAM)

Direct Mail - personal and received in the U.S. P.O. mail box.

www/Internet - executed over the internet. Buying stuffed toys from

Customer - buys the product or service and the CONSUMER uses the product or service. Kennedy gave tickets to the Durham Bulls for his birthday. He took a friend with him. Kennedy is the and Brandon is the consumer.

NEED = anything necessary required to live = food = go grocery shopping

WANT = unfilled desire - Tickets to a Carolina Panthers football game

SELLING - helps customers make informed buying decisions - results in customer satisfaction and repeat business

FULL-MENU MKTG. - having products/services that virtually meet any customer's needs/wants (at Wal-mart gets new tires, eat lunch, get hair done, get nails done, etc.)

FEATURE BENEFIT SELLING - Exercise equipment will fold flat and store under the bed in an apt.

BUYING MOTIVES:

Rational - based on logical thinking - lawn seats at a concert instead of front row seats (price) or buying a pair of jeans when you can only buy one pair of pants (durability)

Emotional - based on feelings, social approval, power, love and prestige. Buying Final 4 tickets or Super Bowl tickets. It will be more than just a game - it will be an event!!!

Patronage - based on loyalty - low prices, high quality, friendly staff, great customer service, and convenience of location. (BoJangles is just around the corner or I like to shop at Dick's because the staff is so friendly - I don't care if Footlocker's is having a sale.)

Decision-making process in order to determine what to buy

A. Extensive - occurs when there is a high level of risk is perceived such as a school system evaluating what company to buy a fleet of school buses from.

B. Limited - occurs when a customer buys products he/she has before but not regularly. Carolina Little League Team decides whether to advertise in a local newspaper or rent a billboard. Also a Team Owner may be deciding whether to add another network to his/her broadcast plan.

C. Routine - Mountainview H.S. baseball coach always purchases the teams chewing gum from the local wholesale store.

Preapproach - Obtaining Product Information

Production Information: Direct experience, written publications, other people and formal training. Sales associate at Footlocker would attend Adidas clinic on the proper way to fit athletic shoes.

Informal way of gathering information is through family and friends.

Sales person could obtain product information by reading TRADE PERIODICALS.

Prospect = potential customer. Employer leads, telephone directories, trade and professional directories, commercial lists, customer referrals, and cold canvassing are examples of prospects. For ex. The Miami Heat purchases the mailing list of the top 50 Fortune 500 companies.

APPROACH = 1st encounter with the customer (like trying to get up the nerve to ask someone out for a date)

Least effective approach = Service (May I help you sir?)

Greeting Approach = Welcome to Wal-Mart

Merchandise Approach = best approach - the customer can touch the merchandise (such as selling golf shirts or CD's)

Determining the needs of customers = observing, listening, questioning

Product Demonstration

Involve the customer - can test grip of putter

Show and tell - pick the product you know the most about to demo so you don't look goofy

Make demonstration come alive - show potential season ticket holders where they would actually be sitting

Start with MEDIUM PRICED goods first. Can go up or down based on customer's reaction.

OVERCOME OBJECTIONS

Objection is a reason, concern or hesitation a customer has for not making a purchase. For example, “I really want both the sweatshirt and short sleeve shirt, but I can’t afford both.”

To handle objections, listen, acknowledge, restate, and answer the objection.

Methods of handling objections:

Boomerang. The objection comes back to the customer as a selling point. For example, if a customer states, “I can’t believe this concert ticket is so expensive", the salesperson’s response might be, “I understand this may be the performer's last tour. If customer states they are afraid shirt will shrink, sales rep states it is preshrunk.

Question The customer is questioned in an attempt to learn more about the objections raised. For example, “WHY don’t you want to buy running shoes, especially if you are starting to get more involved in 5k events?”

Superior point. The salesperson acknowledges the objections as valid, but offsets them with other features and benefits. For example, if a customer states, “I went to a Charlotte Checkers game last week and the tickets were $10 cheaper than the Hurricanes tickets.” The salesperson’s response might be, “Yes, that would be true as the Hurricanes typically advance to the play-offs and the Checkers do not.

Denial. Provide proof and accurate information when answering objections. Best used when customer has wrong information or when the objection is in the form of a question. For example, if a customer states, “I really don’t want to pay a $150 joining fee in advance.” The salesperson’s response might be, “You don’t have to pay in advance, we can spread the joining fee over a six month period if you like.”

Demonstration. Answers objection by showing one or more features. It demonstrates the saying “Seeing is believing.” For example, customer is afraid they won't know how to use exercise equipment once they get it home. Salesman shows the customer how to operate equipment in store.

Third Party Uses a previous customer or another neutral person who can give a testimonial about the product. Salesman might say Roy Williams bought that same set of golf clubs in here last week. (If it is good enough for Roy Williams, it is good enough for me.)

CLOSING THE SALE: Obtaining a positive agreement from the customer to buy.

Customer readiness in closing = buying signals - asking questions - reaching for wallet - body language

General Rules:

1. If the customer is ready to make a buying decision, stop talking about the product.

2. When a customer is having difficulty making a buying decision, stop showing additional merchandise

3. Help a customer decide by summarizing the major features and benefits of a product(s).

4. Do not rush a customer into making a buying decision.

5. Use words that indicate ownership, such as you and your (your new shoes, your new car, etc.)

6. Use major objections that have been resolved to close the sale.

7. Use effective product demonstrations to close the sale.

8. Look for minor agreements from the customer on selling points that lead up to the close.

Specialized methods of closing the sale: On WHICH treadmill did you feel more comfortable

Standing Room Only - Next month there will be a 10% increase - best to purchase today

Direct Close - Basically salesman asks for the sale - I would be happy to write up the CATERING order for you.

Service Close - Let's talk about when you would want the new AC system installed.

SUGGESTION SELLING = Takes place after the customer has committed to original purchase. "Would you like a box of golf Balls to go with the clubs?"

RELATIONSHIP MARKETING:

Involves the strategies businesses use to stay close to their customers. Building a relationship is crucial to keeping them as a repeat customer. Ex. E-mailing a newsletter or survey - sending birthday cards in the mail. (He is such a nice guy - he remembers my birthday.)

BENEFIT SELLING - informs customers of benefits of being a season ticket holder - will receive restaurant coupons in the mail.

After-Sale activities are used to develop and nurture customer relationships and loyalty in developing on-going dialog in preparation for possible future sales. Like sending flowers after the 1st date in hopes of a second date.

CASH DRAWER: opening drawer contains the coins/currency for the day's business. If there is more $$$ in the drawer than planned, it is over. If less $$'s, it is short.

COMPLETING A SALES TRANSACTION: Multiply the # of units by the cost per unit - add item amounts, calculate sales tax and total.

TYPES OF RETAIL SALES: Cash sales = cash or checks

Debit cards look like credit cards, but the $$$'s are immediately withdrawn from your checking acct.

Credit card sales such as MasterCard and Visa. You will either pay off the account when you receive the statement or make monthly payments.

COST OF MERCHANDISE SOLD = Amt. a retailer actually pays for merchandise.

Items you may be able to negotiate on to lower the price: Cost, discounts and allowances.

Allowance - a manufacturer gives free merchandise for large orders as a means of goodwill and to encourage future purchases (buy 70 shirts - get 10 free with the order - a kid gets an allowance for free)

Gross profit = business's income minus the cost of goods sold

Net profit - what is left after all expenses have been paid by the business

Markdowns are expressed as a % of net sales and cannot be calculated until merchandise is sold.

Buying Errors = a reason for markdowns - wrong styles, colors, sizes, materials, etc. purchased

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