SM Chapter 1

Simply defined, marketing is the creation and maintenance of satisfying exchange relationships. 

• True

• False

Answer explanation

A simple definition of marketing is that it is the creation and maintenance of satisfying exchange relationships. This definition describes pieces of the marketing concept. 

Success in sports and entertainment marketing depends upon evaluating events and goods to determine how well they meet customer needs.

• True

• False

Answer explanation

Sports and entertainment marketing must meet the needs of both businesses and customers when exchanging products or services.

Discretionary income is the amount individuals earn before deductions are removed from the pay.

• True

• False

Answer explanation

Discretionary income is the amount of money individuals have available to spend after paying for the necessities of life and other fixed expenses, such as housing and car payments

Selecting a good city to host the Super Bowl is an example of distribution of entertainment.

• True

• False

Answer explanation

Distribution involves the locations and methods used to make products available to customers.

It is important to create effective promotion plans that reach the largest audiences at the most cost-effective price.

• True

• False

Answer explanation

Because promotion costs are high, it is important to create effective promotion plans that reach the largest audiences at the most cost-effective price.

Any direct and personal communication with customers to assess and satisfy their needs is considered product/service management.

• True

• False

Answer explanation

Product/service management involves designing, developing, maintaining, improving, and acquiring products or services for the purpose of meeting customer needs and wants.

Consumer demand has little to no impact on prices assigned to sports and entertainment events and goods.

• True

• False

Answer explanation

Prices assigned to sports and entertainment events and goods are directly related to consumer demand.

Influencing how people choose to spend their time and money on entertainment is the purpose of entertainment marketing.

• True

• False

Answer explanation

The purpose of entertainment marketing is to influence how people choose to spend their time and money on entertainment.

Spectators of sporting events are the potential consumers of a wide array of products including apparel, food, automobiles, and athletic equipment.

• True

• False

Answer explanation

To maximize profits on the items fans purchase in association with sporting events, sports marketers research the demographics and spending habits of fans, who are usually willing to pay for team or celebrity-identified clothing or equipment.

Ambush marketing takes place when an organization is the sole sponsor of an event.

• True

• False

Answer explanation

Ambush marketing takes place when organizations participate in an event to some degree rather than sponsoring the events.