Chapter 2 Notes Sports Marketing (Evan McAdams

Benefits derived

the value people believe they receive from a product or service

Breakeven point

minimum sales required to cover all of the expenses of organizing, promoting, and running the event

Comparative advantage

the capability to produce products or services more efficiently and economically than the competition

Customer service gap

the difference between customer expectations and the service that is actually received

Economic market

all of the consumers who will purchase a product or service

Emotional purchases

when consumers spend with little thought during emotional highs or lows

Market segment

a group of consumers within a larger market who share one or more characteristics

Market share

the percentage of total sales of a product or service that a company expects to capture in relation to its competitors

Marketing concept

keeping the focus on satisfying customer needs; requires maintaining important relationships with customers

Mass marketing

an attempt to appeal to a large, general group of consumers

Opportunity cost

value of the next best alternative that you pass up when making a choice

Patronage purchases

purchases based on consumer loyalty to a particular brand or product

Productivity

rate at which companies produce goods or services in relation to the amount of materials and number of employees utilized

Rational purchases

when consumers recognize needs and wants, assess their priorities and budget, conduct research, compare alternatives, and then make purchases based on careful thought and sound reasoning

Target market

a specific group of consumers a business wants to reach

Values-based culture

a culture that communicates values through high performance and excellent customer service