Final Exam Review Packet Answers

1. Final Exam Review PacketAnswers

2. 4P’s of Marketing(aka….the Marketing Mix) • Product • Place (Distribution) • Price • Promotion

3. LaRosas 4P’s Breakdown Product: • Pizza, Hoagies, Lasagna, Breadsticks, Salads, Wings, etc. Place: • Dine In – physical location • Delivery – Phone In (347-1111), online/App ordering… Price: • $ amount listed on menus……..$ amount owed on your receipt • “Spaghetti A Plenty Night” • 3 4 7 Pizza Deal • Buddy Card Promotion: • LaRosa’s High School Athlete of the week • REDS Strikeout 11 ticket holders get 1 small Pizza Free

4. Four Economic Utilities • FORM • TIME • PLACE • POSSESSION

5. APPLE Economic Utilities Changes • FORM • from CD’s and records to now downloads via iTunes • TIME • don’t have to worry about CD’s being sold out and shopping at various store locations – now it is very quick and easy with no lines with immediate transfer • PLACE • don’t have to leave your house just need an electronic device with internet connection • POSSESSION • No longer have to have cash or check on hand for “face to face transaction” – now available right away with PayPal, Credit Card or Gift Card payment

6. Endorsements Advantages Disadvantages Very expensive. Endorser may want to be spokesperson or pitch for various (sometimes competing) products/services. Chance for endorser to bring negative or bad publicity to product/service they are endorsing. • Consumers typically purchase products that are endorsed by celebrities. • Viewers less likely to turn the channel when a commercial features a celebrity. • Consumers tend to believe the claims of the celebrities endorsing products/services.

7. Target Market Demographics • Age • Gender • Location • Income Level • Grade Level • Education Level • Marital Status • Family Size • Sports they participate in

8. 4 Questions Marketers Must Know/Answer • Offer what they want. • Offer when they want it. • Offer where they can get it. • Offer it at a price they can afford.

9. 2 Main Reasons Promotions Exist • to INFORM • to UPDATE …. current/potential fans and customers.

10. Sports Franchise Main Product • TICKET Selling tickets leads to other revenue streams; • Parking • Concessions • Merchandise/Apparel

11. Main Goals…. • Main goal of a business is to make a PROFIT. • earning more than you spend is a must for any business. • Main goal of Sports Franchise is WINNING. • winning draws fans in, opens up advertising and TV/Media deals……thus, leads to increase profit.

12. Revenue amount of money coming into a business. • Gross Impression is # of times an businesses image/logo/product is visible at a game or shown during a broadcast. • Macroeconomics the study of the economics of the entire society. (Large Scale) • Microeconomics the study of the relationships between individual consumers and producers. (Small Scale) • Ingress the flow of traffic moving towards or into the stadium.

13. Egress the flow of traffic moving away from or going out of the stadium. • Satellite Parking offsite parking options that sports team offer their fans. • Licensing Agreement is a contract giving the legal right to reproduce or copy the logo (image) of a league, team, athlete, or entertainer for payment based on specific terms. • Fixed Fee the agreed upon set dollar amount paid to the endorser in a licensing agreement. • Royalty the % or per unit agreed upon dollar amount per unit sold of its sales paid to the endorser in a licensing agreement.

14. Licensing Agreement Calculation 1.) • $225,000 • $262,500 • $265,500 2.) • $600,000 • $615,000 • $425,000