REC215 Study Guide - Quiz Guide: Crisis Communication, Mystery Shopping, Customer Switching
5 Jun 2018
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REC 215: Marketing Recreation and Sport Services
Quiz #3 Study Guide
Three steps of the marketing, promotional, and communication mix model
• Step 1: Addresses permanent agency decisions related to offerings,
distribution and price (Marketing Mix).
o The marketing mix is influenced by the target market and its
characteristics
o Addresses permanent agency decisions related to:
▪ Offerings
- Consider products, programs, facilities, services &
Experiences
▪ Distribution/price
- Consider ways to reach your intended target market
▪ Price
- Consider pricing objectives (break-even, profit, etc) and
strategy (skimming, penetration, etc)
• Step 2: Establish the brand identity, collateral, and promotional events for
the agency to achieve its target market objective (Promotional Mix).
o Brand identity (logo, general positioning statement, etc.)
▪ What message do we want to deliver to our target
audience?
▪ Promotional collateral and events
• Step 3: Select the tools to directly reach the target market (Communication
Mix).
o Includes ways in which the target market will be directly reached.
▪ What “tool” are we going to use to deliver the message/identity we
established in step 2?
o Consider the behaviors/habits of the market:
▪ What do they read? What media do they consume?
▪ Where do they shop?
▪ What do they do in their leisure time? Where do they work?
▪ Where do they live?
Components of the communication mix
• Advertising
• Publicity and public relations
• Community relations
• Quality service/stewardship
• Sales promotions (incentives)
• Direct sales
• Personal selling
• Sponsorship
• Internal marketing
• Unlike the Marketing Mix, in which all components must be explicitly considered
and manipulated to serve each market, communication mix components may or
may not be used at the discretion of the marketer.
Four steps involved in preparing marketing budgets and scheduling activities
1. Determine the set of mix decisions.
2. Establish a budget to estimate all the costs associated with the planned activities.
3. Establish a timeline for completing the activities.
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4. Assign who is responsible for the actions.
Methods for evaluating operational decisions
- Keep record of passes
- Survey employees and costumers
- Track number of returned coupons
- Upon arrival, ask consumers how they heard about the agency
- Mystery shopping of staff performance
- Costumers satisfaction surveys
Strategies for estimating the financial impact of operational decisions
• A simplified revenue/cost summary has to be prepared for each objective.
• A revenue/cost summary can also be prepared by comparing the incremental
difference in consumers by marketing costs to determine the marketing cost per
new consumer.
Components of agency offerings
Products - Physical goods that are presented to the consumer.
Services - Amenities that support the primary product offering.
Facilities- Physical structures available to consumers.
Programs/events- Activities that complement products offered to consumers.
Devlivery- Impacts the experience received by consumers.
Policy/procedures - Establishing boundaries for participation.
Physical Environment- Physical attributes of the agency itself.
Categories of agency offerings
Intangible: Programs, Services, Delivery, Policies/procedures
Tangible: Product, Facility, Physical environment
Stages of the product life cycle
Introduction—growth – mature – decline
• Product unknown.
• Sales/participation is low/non existent and over time begins to emerge and grow.
• Pricing may be high to capture top of market or recover costs or low to penetrate
the market and spur consumption.
• Promotional statements are geared toward the needs of the targeted markets.
• Agencies utilize heavy advertising, promotion, and public relations tools during
this phase to introduce the offerings and induce trial and use.
Growth
• Sales/participation is growing, as competitors are as well.
• The product is becoming well known and brand recognition is emerging.
• Pricing tends to be higher as demand increases as well.
• Distribution分布systems are expanded
• Quality issues are emerging
• Agencies place continued emphasis on advertising, promotion and public
relations, but also begin to utilize other tools more moderately such as
sponsorship, personal selling, stewardship and internal marketing to build brand
loyalty.
Mature
• Sales/participation has flattened - or is slightly falling.
• Large number of competitors exist on the market.
• Agencies focus their efforts in building brand loyalty.
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• Promotional statements tend to be reminder oriented, positioning against
competitor while expanding on competitive advantages.
• Less emphasis is placed on advertising and public relations while increased focus
on personal selling, sponsorship, stewardship, community relations and internal
marketing to build and maintain loyalty exists.
Decline
• Revenues are extremely low and competitors have reduced to only the strongest
and most successful.
• Loyalty practices are the most successful tools to use as agencies prepare for
reemergence into the introduction stage.
• Three main strategies exist for reemergence:
Product modification
Expanding to new market segments
Development of new offerings
(We need to response immediately, re-event the experience, otherwise will die
Sth needs to rearrange and emerge’
Ways:
New rules, new formats, new ways of offering, new benefits and new improves
Take exact same experience offering but new targeting, different market group
Let it go, offering something completely different)
The concept of distribution
• Distribution is the way in which a leisure service agency connects to consumers
to ultimately provide a leisure service experience.
Distribution Intensity
• Intensity is concerned with the degree to which a service will be made available.
• Intensive: facilities/services are readily and widely available.
o (e.g. neighbourhood parks, Holiday Inn, Goodlife, Tim Horton's).
• Exclusive: programs offered through a single outlet.
o (e.g., professional/elite sport, programs for limited target groups).
• Selective: facilities/services are available at several outlets.
o (e.g. community centers, movie theaters, pools, tennis courts, Curves,
Marriott hotels)
o The Olympics?
Location -- Consider both distance but also
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• A good location (convenience) is very important.
• Social goals: specific social goals of an agency may dictate that certain under-
serviced areas receive priority when location decisions are made. Social goals
may also relate to safety.
• Aesthetics美学: the appeal of the facility can be enhanced (or not) by the location
and surrounding area. (E.g. noise, smells, sights).
• Practicality实用性: Is the location practical for both the provider and client?
• Consumer location: Proximity and access to clients are keys to location success.
You want to place facilities and programs where clients can gain access.
o Proximity: refers to geographic distance, the spatial separation of the client
and the program/ facility location.
o Access: refers to easy of entry, rather than distance.
Channels of Distribution
• “The set of organizations, agencies, and outlets that share the responsibilities for
making a service available and accessible to target populations
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Document Summary
Consider ways to reach your intended target market: price. Components of the communication mix: advertising, publicity and public relations, community relations, quality service/stewardship, sales promotions (incentives, direct sales, personal selling, sponsorship, unlike the marketing mix, in which all components must be explicitly considered. Internal marketing and manipulated to serve each market, communication mix components may or may not be used at the discretion of the marketer. Upon arrival, ask consumers how they heard about the agency. Products - physical goods that are presented to the consumer. Services - amenities that support the primary product offering. Programs/events- activities that complement products offered to consumers. Physical environment- physical attributes of the agency itself. Development of new offerings (we need to response immediately, re-event the experience, otherwise will die. New rules, new formats, new ways of offering, new benefits and new improves. Take exact same experience offering but new targeting, different market group.
