IDC4UM Exam Study Guide PDF

IDC4UM Exam Study Guide PLEASE BRING: PENCIL & CALCULATOR! Exam Breakdown: ​ 15 True/False questions – concepts & terms ​ 25 Multiple Choice questions – concepts & terms ​ 12 Matching questions – terms/definitions ​ 2 Short Answer o​ Economics of S&E events o​ R...

IDC4UM Exam Study Guide PLEASE BRING: PENCIL & CALCULATOR! Exam Breakdown: ​ 15 True/False questions – concepts & terms ​ 25 Multiple Choice questions – concepts & terms ​ 12 Matching questions – terms/definitions ​ 2 Short Answer o​ Economics of S&E events o​ Rebranding ​ 4 Business Scenario short answer questions – reflect and apply knowledge of concepts to different scenarios o​ Marketing of/through sports o​ International/Global Marketing o​ Promotion (AIDA, advertising goals, appeals) o​ Price elasticity o​ Pricing calculations ▪​ These formulas will be provided: ​ Gross Profit = Selling Price – Variable Costs ​ Break Even Point = Fixed Costs ÷ Gross Profit ​ Markup = Selling Price - Cost Price ​ Percentage Markup on Cost = (Markup ÷ Cost of Product) × 100 ​ Profit Margin = (Markup ÷ Selling Price) × 100 Unit 1 What is Sports Marketing ​ What is sports marketing Sports marketing is all the marketing activities designed to satisfy the needs and wants of sports consumers. It focuses not only on the sport, but all the activities that revolve around a sporting event such as planning, promotion, financing, and sponsorship. ​ 2 major components (marketing of sports/ marketing through sports) Marketing through sports: This strategy is when marketers will use sports, entertainment, and celebrities to help boost their brand (endorsements). Within this domain, there are 2 strategies used by marketers. Traditional which is when a company puts forth an effort to incorporate sports into its marketing campaign/ marketing mix. Examples could be Sony - advertisements that show consumers watching sports on one of their high-definition TVs. Venue naming rights: this is based on the marketers ability to have their name attached to a facility Licensing: This is a contract that allows marketers to use trademark / brand names. Marketing of Sports: This piller is broken down into 3 categories Access to spectator sports events: This is basically the selling of tickets to games, concerts, events, etc. (Critical for financial success). The delivery of sports broadcasts to the media-based audience (local, regional, national, international, global)- the larger the event  IDC4UM Exam Study Guide the more opportunities for marketers (non-sports based product and more money can be made The provision of a venue for participation sports: Consumers enjoy their leisure time more than ever before and everyone wants a piece of the pie. Sports compete with sports and entertainment with entertainment. Sporting Goods, Apparel, Athletic shoes and sports- related products: This consists of products used in participation in sports as well as keepsakes, replicas, venue related purchase/ souvenirs. ​ Sports-based sponsorships Sports-Based Sponsorships: There are 3 major forms of sponsorship that are used most often Traditional sponsorships: an official relationship between marketer and sports property ​ 3 important factors (N.G.T) New Opportunities: New sports offer new opportunities to appeal to customers. The Paris Olympic in 2024 are planning to include four new sports: surfing, skateboarding, sport climbing, and breaking (break dancing) Gross Impression: The number of times per advertisement, game, or show that a product or service is associated (seen, spoken) with an athlete, team or entertainer. Everytime time you see a company logo on a TV show, in a scene in a movie, in an athlete's hand you take a mental image. Timing: Fans want products and services that are linked to winners, not losers. Winning trends for sports, athletes and teams must be monitored to determine when is the best time for a company to associate itself with an athlete or team. Certain sports or games can be “in” or “out” at any given time - example viewership for Golf was down when Tiger was not playing. ​ Goods vs. Services Goods: Are tangible products (ex. sports equipment) vs. Services: Are intangible products (ex. concert tickets) ​ Marketing Mix (4Ps of Marketing) Product: The physical product or service offered to the customer. This includes design, name, packaging, warranty, and service. Price: The amount of money a customer is willing to pay for the product. Pricing decisions should take into account profit margins and the pricing response of competitors. Place: Where the product will be available: includes logistics, location and channels of distribution as the means for getting the products to market. Examples are websites, retail stores, outlets, broker, etc Promotion: Relates to communicating and selling the products to potential consumers. Promotion involves advertising, displays, personal selling, public relations, etc. ​ Target market 3 main characteristics Demographics which consist of age, gender, income, and family life cycle is a series of stages that is determined by a combination of marital status and the absence or presence of children, and culture.  IDC4UM Exam Study Guide Psychographics which consist of lifestyle/ values. These are characteristics that are easier to change, such as attitudes or opinions a consumer has towards activities, The most common characteristics for this are religious beliefs, tastes in music, lifestyle, attitudes towards health, and personality traits. Geographics consist of the country/ city. ​ Needs vs. Wants Needs: A lack of necessities such as food, clothing, or shelter. vs. Wants: People desire things based on personality, experiences, or information about a product. ​ Value Equation Total benefits—total Costs = Value. The following formula determines an item's value based on its benefits and retail value. ​ 2Cs of Marketing Customer: The person who makes the buying decisions Competition: Any other product that satisfies a consumer's needs or wants. ​ Product placement marketing technique in which a product or service is showcased in some form of media. Sports Consumers ​ Consumers vs. Participants Consumers can either observe (spectators) or participate in the activity. Participants: People who take part in sports or entertainment ​ Participant influences Internal Influences - personality, motivation, ability to learn, personal attitudes. External Influences - culture, social class, family, friends ​ Motivations Intrinsic Motivation: Desire to satisfy natural needs or interests. Extrinsic Motivation: External rewards (e.g., prizes, recognition). Amotivation: No clear influence driving involvement ​ Levels of involvement (fan categories) Casual: may go to a game or show to support a friend. Maybe you even live streamed the event, so you would not have to pay for the price of a ticket. Corporate: a client meeting may take place in order to build a relationship. The client hosting the meeting may purchase a box, or very desirable seats at an event. Crazed: a very passionate fan, who makes low-cost choices to show support. Core: a very passionate fan, who attends every game, and owns apparel and/or other products that represent the sports team or entertainer.  IDC4UM Exam Study Guide Consumer Segmentation, Targeting and Positioning (STP Model) The STP Model: Segmentation, Targeting, and Positioning Segmentation- what is it, types of fans, what is the point of a segment-by-segment analysis? Segmentation: involves the target market being broken down into homogenous/similar reachable groups. Players - People who have played the sport, watch the sport and are invested in the skills. Patriots - view sports as a means of establishing community and national pride, follow “their” team, heavily involved, social needs. Appreciators - know the skill needed for the game and appreciate it, drawn in by the talent, admire hard work, teamwork and achievement, witness excellence. Socialites - a way to interact with friends, social circle determines the types of events, they may know the rules of the game, other entertainment factors, may not know the final score when the game is finished. Friends - moral support for someone they know, relationship-based, have an understanding but little to no involvement Voyeurs - not sports fans, they are fans of an attractive participant! Fans for the wrong reasons. Segment-by-segment analysis 1. Who Are they? 2. What Do they want/need? 3. When do they want/need it? 4. Where Do they get it? 5. Why Do they want/need it? 6. How Do they go about getting it? The importance of this analysis is that it helps come up with an overall view of your market, which will be important with the future of your products, and helps towards improving these segments. Positioning- what is it and what do you need to look for?  IDC4UM Exam Study Guide Positioning is finding a place in the minds of your target market, and where you can fit your product. Something to look out for is a Hole in the Market where a niche or a particular segment whose needs/wants have not been met yet. Positioning perceptual map What is a target market? How are they picked? A target market is a specific group of people which the product/service is aimed and designed towards. Target Market is picked based on demographics such as age, sex, race, etc. Niche: A specialized segment of the market for a specific kind of product/service. 3 strategies to target the market Undifferentiated strategy: Sending the same promotional message to everyone. Example - Promoting the city as a historical destination by placing ads in widely read newspapers Concentrated Strategy: Designing a promotional message that communicates the benefits desired by a single specific segment. Example - Promoting the city as historic by targeting elderly members of historical societies by placing ads in their newsletters. Differentiated strategy: Designing more than one promotional message, with each communicating different benefits. Example - In addition to targeting the elderly, you could also target families by communicating a promotional message about the importance of children learning history Economics ​ Opportunity cost What someone gives up in order to receive something in exchange Example- Choice A: Work 8 hours at your job ($320) Choice B:Spent the day watching a baseball game ($300)  IDC4UM Exam Study Guide ​ Grassroots marketing Marketing, events and reaching out to the public at the local community level ​ Components of Economic Impacts First is the direct spending by consumers involved which includes: -Revenues from ticket sales and merchandise purchased at the event venue -Public Transportation cost; gasoline if travelling by vehicle -Accommodations if coming from out of town -Money spent in food establishments in or around the location of the game - Other entertainment expenditures Second is the adjustment that reflects the initial expenditure that supports the economic activity:i.e.-employees, service providers, and taxes have to be paid before profits can be counted Profit = (Total Revenue –Total Expenses)–The Money employees get paid with, will then be used in local restaurants, in public transportation, to purchase tickets for sporting events Each dollar is spent more than o nce (multiplier effect) Visualizing ​ Aggregate Economic Impact This measures the overall economic impact of the sports industry on a large economy such as a province or country. The main issue is to accurately define the sports industry Three sectors need to be considered:Sports entertainment,Sports products, Sports support organizations It has been specified at the gross domestic sports product (GDSP) Similar to a country’s GDP (the total value of goods and services produced in one year) For example, if the American GDP was 13.84 trillion and 2% of that ($277 billion) would represent the portion estimated to be devoted to the sports industry ​ Supply & Demand Supply is the amount of a specific good or service that's available in the market. Demand is the amount of the good or service that customers want to buy Unit 2 Product -​ Product Life Cycles (traditional, fad, niche, trend, seasonal) o​ Know what happens at each stage Traditional Product Life Cycle Stages: Introduction, Growth, Maturity, Decline, Decision Point Alternative Life Cycles: Fad (short-lived popularity), Niche (targets small markets), Seasonal (fluctuates based on time of year). -​ Product item Specific model or version of a product (e.g., specific Air Jordans).  IDC4UM Exam Study Guide -​ Product line Entire category of a specific product (e.g., Nike athletic shoes). -​ Point of difference distinctive feature setting a product apart from competitors (e.g., a World Series-winning team has a unique appeal). -​ 3 levels of a product Core Product: The fundamental need/want being fulfilled. Actual Product: The tangible or intangible item (e.g., concert tickets). Augmented Product: Additional services/benefits (e.g., exclusive meet-and-greets at an event). -​ Consumer good Consumer Good: Purchased for personal use. -​ Business good Business Good: Purchased for operational use (e.g., a company buying sports event tickets as incentives) -​ Tangible vs Intangible Tangible: Physical items (e.g., merchandise). Intangible: Services or experiences (e.g., streaming rights). -​ 3 types of sports products Spectator Sports: Products around watching sports events. Participation Sports: Products encouraging active participation. (Items/services are used to encourage new players and encourage more participation) Sporting Goods: Equipment, apparel, and related products. (Encompasses equipment, souvenirs, publications, lessons and other products sold at event venues) -​ Steps in New Product Development Steps include SWOT Analysis, Idea Generation, Screening/Evaluation, Business Analysis, Development, Test Marketing, and Commercialization -​ SWOT Analysis Evaluate strengths, weaknesses, opportunities, and threats in the context of new product development Price -​ Elastic vs. inelastic Elastic: Demand changes significantly with price (e.g., luxury goods). Inelastic: Demand is stable despite price changes (e.g., necessity goods). -​ Factors that influence price Includes cost, competition, demand, consumer perceptions, and legal considerations.  IDC4UM Exam Study Guide -​ Strategies and techniques- cost orientated, demand orientated and competition orientated, skimming and penetration, etc. Cost-Oriented Pricing: Set by production costs plus profit margin. Demand-Oriented Pricing: Based on consumer willingness to pay. Competition-Oriented Pricing: Adjust prices based on competitors (skimming and penetration strategies). Psychological Pricing: Creating perceived value (e.g., odd-even pricing, prestige pricing). -​ Profit a financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something. -​ Calculations Gross Profit = Selling Price – Variable Cost Break Even Point = Fixed Costs ÷ Gross Profit Markup = Selling Price - Cost Price Percentage Markup on Cost = (Markup ÷ Cost of Product) × 100 Profit Margin = (Markup ÷ Selling Price) × 100 Place -​ Marketers strategies for spectator sports (live and media), participation market and sporting goods Live Audience: Attract fans for an engaging event atmosphere and revenue from ticket sales, concessions, and merchandise. Venue decisions consider stadium location, capacity, and timing of events based on fan convenience (season, day of the week, time of day). Ticket distribution through box offices, authorized retailers, and digital methods​(Place PPT). Media-Based Fans: Use TV (free-to-air, pay-per-view, team-dedicated networks), radio, internet streaming, and mobile apps to reach a larger audience. Digital and mobile channels allow for expanded reach, enhancing fan engagement and media rights value​(Place PPT). -​ Distribution strategies Intensive Distribution: Broad availability across multiple retail outlets for widespread exposure. Selective Distribution: Limited availability to create a prestigious image (higher quality, higher price). Exclusive Distribution: Available only through a single outlet, typically for high-end or customized items. Non-Store Retailing: Internet, TV, catalogs, and other channels that don’t involve a physical retail location​(Place PPT)  IDC4UM Exam Study Guide -​ Channels of distribution Direct: The producer sells directly to the consumer (e.g., dentists, some restaurants). Indirect: Uses intermediaries (e.g., wholesalers and retailers) to reach consumers. Specialty Channels: Non-store channels like vending machines, online sales, and telemarketing​(Place PPT). Promotion -​ 4 types of promotion Publicity: Non-paid media exposure, e.g., TV news coverage or magazine features on events. Advertising: Paid methods to promote a brand and raise awareness, especially useful for mass-marketed products​(Promotion PPT)​(AIDA advertisements). Personal Selling: One-on-one interactions, often through salespeople, that create interest and build customer relationships​(AIDA advertisements). Sales Promotion: Short-term incentives like coupons, samples, and contests to encourage purchases​(Promotion PPT)​(AIDA advertisements). -​ Goals of advertising Brand Awareness: Repetition to establish brand familiarity and recognition. Brand Trial: Encouraging first-time users, often through samples or discounts. Brand Preference: Building loyalty by showing value over competitors, sometimes with celebrity endorsements. Brand Reminder: Keeping the brand in consumers' minds through ads on traditional media. Brand Repositioning: Adjusting the brand’s image to appeal to a new target market​(Promotion PPT). -​ A.I.D.A and examine ads using A.I.D.A Attention: Capture the audience’s focus, often using shock factors or unique placements. Interest: Keep their attention by highlighting benefits or creating a need. Desire: Use problem-solution formats to make the audience want the product. Action: Drive immediate response, like visiting a website or store​(AIDA advertisements). -​ 4 types of appeals Biological: Appeals to basic needs, such as health and safety (e.g., pharmaceutical ads). Emotional: Appeals to feelings, creating bonds with consumers (e.g., love or adventure). Rational: Appeals to logical factors like savings or quality (e.g., cost-effectiveness). Social: Appeals to societal standards and norms, often with a focus on solving social problems​(Promotion PPT)​(AIDA advertisements). -​ Communication process Sender: The organization creating the message. Encoding: Crafting the message with words and visuals. Medium: The channel through which the message is delivered, e.g., TV or social media. Decoding: The interpretation of the message by the audience. Receiver: The target audience for the ad. Feedback: Assessing the ad’s impact on sales or awareness​(Promotion PPT).  IDC4UM Exam Study Guide Unit 3 Terms ​ Brand A brand is a name, word (s), symbol, or design that identifies an organization and its products. ​ Brand Identity brand name and logo/slogan ​ Branding Branding is the process of creating a brand image that engages customers' minds and hearts. Businesses want to associate their brands with popular sports, star athletes, and famous entertainment celebrities since doing so will encourage customers to transfer their emotional attachment from the athlete to the brand. ​ Trademark legal name of a company. A trademark legally identifies ownership of a registered brand or trade name. ​ Soundmark A trademark identified by a sound that is associated with a company ​ Motionmark A trademark identified by a specific movement associated with a company ​ Manufactured Brands Owned by the producer of the product, the producer responsible for marketing the brand. Can be marketed using the following strategies Multi-product branding: the name manufacturer uses one name for all its products. Includes Brand Extension (using the existing brand name for an improved or new product in the product line). Multi-branding: Each product in a product line has a distinctive name. This strategy is used for products that target different consumers and or to prevent competitors from taking market share. Co-branding: combines one or more brands to increase customer loyalty and sales for each product Re-Branding: Changing a brand name, logo, or image of a product or company ​ Intermediary Brands Carries a name developed by the wholesaler or retailer, and acts as a link between manufacturers and consumers. Sell manufacturer products under their private labels. ​ Brand personality :involves associating human traits to a brand the type of person a brand represents, develops over time. Differentiates the brand and helps build brand value or equity.  IDC4UM Exam Study Guide ​ Moral Clause allows marketers to terminate an endorsement contract with a celebrity who behaves in ways that are deemed unacceptable and potentially damaging to the reputation of the marketer. ​ Licensee does not own the properties- they are granted permission to use them for specific marketing activities. They are the company or individual paying for the rights to use the licensor’s name or property ​ Licensor is the owner of the properties that are designated in the contract. They are the company or individual granting the license ​ Licensing Agreement Refers to an agreement that gives a company the right to use another’s brand name, patent, or other intellectual property for a royalty or fee. Components making up a licensing agreement: Licensor (trademark owner), Licensee (authorized user), Expiration date, Product range for licensing, Geographic scope, Exclusivity Criteria to license: Quality, Marketability, Liability, Appropriateness to the company’s goals and mission, Company stability ​ Benefits of licensing Licensors get a royalty fee on top of any sales revenue from the licensed merchandise low risk increased brand awareness ​ Royalty A percentage of the revenue given to the licensors from the sales of licensed merchandise (usually 9%) ​ Infringement the unauthorized (without permission) use of the identification mark, logo, or brand name of another seller. ​ Sponsorship a relationship between a marketer and a property in which the marketer pays a cash or in-kind fee in return for access to the exploitable commercial potential associated with the property (Ex. Coca-Cola and the Olympics) Advantages of Sponsorships:Credibility, Image, Prestige, Internal morale, Sales opportunities Access to a live audience ​ Re-branding Changing a brand name, logo, or image of a product or company  IDC4UM Exam Study Guide ​ Advertising Advertising :any paid, non-personal communication through various media about a business firm, not-for-profit, product, or idea by a sponsor identified in a message that is intended to inform or persuade members of a particular audience Emphasizes mass media techniques for the delivery of standard messages (TV, radio, magazines, newspaper, etc.): Persuasive messages, Standardization, The guaranteed number of consumers reached, Evaluation ​ Endorsement a person’s public expression of approval or support for a product or service. A celebrity endorsement is a credible or well-known person’s endorsement. It is not considered an endorsement when advertising fears an unidentified person reviewing the product or store. Branding ​ Why is branding so important? helps identity a brand, and what to expect from it ​ 7 types of logos ( Monogram logos (or lettermarks): Consist of letters, usually brand initials. The focus is on initials, which is why the font you choses is very important so make sure your design is not only on theme with what you do but also legible when you print on business cards. Wordmarks (or logotypes): Similar to a lettermark, a wordmark or logotype is a font-based logo that focuses on a business name alone. They work well when a company has a succinct and distinct name, the name itself is catchy and memorable and when combined with strong typography the logo helps create strong brand recognition. Pictorial marks (or logo symbols): Is an icon or graphic-based logo. It’s probably the image that comes to mind when you think of the logo. It can be a tricky logo type for new companies or those without strong brand recognition to use. Abstract logo marks: a specific type of pictorial logo. Instead of being recognizable like an apple or a bird it's an abstract geometric form that represents your business. Abstract logos allow you to create something truly unique to represent your brand. The benefit is that you’re able to convey what your company does symbolically, without relying on cultural meaning and implications of a specific image.  IDC4UM Exam Study Guide Mascot: Logos that have an illustrated character. Ofsted colourful, sometimes cartoonish, and most always fun, it is a great way to create your very own brand spokesperson or spokescharacter. A mascot is simply an illustrated character that represent your company. The combination mark: a logo composed of wordmark or lettermark and a pictorial mark, abstract mark or mascot. The picture and text can be laid out side by side stacked on top of each other or integrated together to create an image. The emblem: logo consists of a font inside a symbol or an icon, think badges, seals and crests. These logos tend to have a traditional appearance about them that can make a striking impact. ​ Partial vs. Total Rebrand Partial Rebrand: When small elements, such as the logo, of a brand are tweaked Total Rebrand: When a brand attempts to erase any previous brand identity, such as their brand name. ​ Why a company would want to rebrand A rebrand usually happens when a company wants to evolve or shift to drive growth. o​ Repositioning companies reposition their business to target a completely new target market, whether it's through changes in product, price, place, or promotion o​ Expanding Companies usually refresh their brand if they are expanding into new markets, especially international markets, as they run the risk of consumers not identifying with the current logo or promotional campaigns. o​ New vision or philosophy Since the mission and vision of a company guides every decision that the company makes, when there is a shift pivoting in the mission and values, it affects branding decision Unit 4 ​ Ethics doing the right thing for the country you are doing business with ​ Morals concerned with the principles of right and wrong behavior and the goodness or badness of human character  IDC4UM Exam Study Guide ​ Values the regard that something is held to deserve; the importance, worth, or usefulness of something. ​ Ethical dilemma a problem in the decision-making process between two possible options, neither of which is absolutely acceptable from an ethical perspective. ​ CSR (Corporate Social Responsibility) o​ How sports industry can be socially responsible Sports organizations can fund a charity, repurpose sporting equipment, build a sustainable and eco-friendly stadium, recycle trash from events, help out local businesses and schools. o​ How celebrities can be socially responsible practice philanthropy (when someone unselfishly helps others and actively participates to promote the well-being of these individuals.) ​ Global marketing o​ Factors to consider with international competition Regulations (promotion restrictions/ local laws), research (consumer preferences/consumer needs), distribution (how will it be sold), pricing (covering expenses, and tariffs), design (legal standard + local taste). o​ Five Ps of International Business Product: A country’s resources determine what goods and services it produces Price: The price of a good or service varies from country to country Proximity: being close to a trading partner helps to facilitate a trade quicker Preference: Consumers often purchase foreign goods and services based on their reputation and specialization, even though similar products are produced domestically. Promotion: With the internet, satellite broadcasting, and social media, it has never been easier for businesses to promote their products internationally. promotion is what allows companies to create an international presence