FITNESS INDUSTRY MANAGEMENT Manage the marketing of fitness services and products

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1 1 of 9 level: 5 credit: 5 planned review date: December 2002 sub-field: purpose: entry information: accreditation option: moderation option: Fitness People credited with this unit standard are able to: apply principles of marketing, promotion and public relations, and client retention to the fitness industry; apply knowledge of the fitness industry to the development of fitness services and products; select fitness marketing messages and channels; develop and assess fitness advertising concepts; analyse marketing expenditure and performance; and price fitness. Prerequisite: Unit 7039, Identify components and analyse structure of the fitness industry, or demonstrate equivalent knowledge and skills. Evaluation of documentation and visit by NZQA and industry. A centrally established and directed national moderation system has been set up by the Sport, Fitness and Recreation Industry Training Organisation - Fitness Advisory Group.

2 2 of 9 special notes: 1 Competence in this unit standard may be demonstrated in simulated situations related to an existing fitness and/or recreation facility or enterprise. If this unit standard is being assessed in an on-job situation then the references to simulated situations may be considered redundant except in respect of emergency procedures. 2 Competence in this unit standard requires knowledge of provisions of the Fair Trading Act 1986 (FTA) and the Consumer Guarantees Act 1993 (CGA) relating to the advertising, marketing and selling of fitness industry products and services. Elements and Performance Criteria element 1 Apply principles of marketing, promotion and public relations, and client retention to the fitness industry. 1.1 Marketing terminology is interpreted through description of key terms within context. key terms include - needs, wants, demands, utility, market, advertising, selling, marketing, promotion, public relations, market research, segmentation, service and product features, service and product benefits, marketing mix, marketing channels.

3 3 of Application of marketing principles to a fitness enterprise generates marketing objectives within FTA and CGA guidelines. 1.3 Application of marketing principles to a fitness enterprise generates a plan to meet client retention objectives of the enterprise. measuring client satisfaction, meeting expressed client needs, increasing retention rates. 1.4 Application of marketing principles to a fitness enterprise generates a plan to meet promotional objectives of the enterprise. identify opportunities (co-promotion, sponsorship, event planning, internal, external), schedule events, identify resources required, identify desired outcomes. 1.5 Application of marketing principles to a fitness enterprise generates a plan to meet public relations objectives of the enterprise. identify opportunities, identify resources required, identify staff training needs.

4 4 of 9 element 2 Apply knowledge of the fitness industry to the development of fitness. 2.1 Availability of information on the fitness industry internationally is analysed in terms of channels and sources. periodicals, videos, conferences, visitors, consultants. 2.2 In a simulated situation, a market need is identified and a fitness service or product developed to match the need and ability to pay of the target client market. defined client population, defined market need, defined fitness service or product, development costing, staff training requirements, marketing requirements, pricing, delivery channels, funding possibilities.

5 5 of 9 element 3 Select fitness marketing messages and channels. defined aspects - product, target market, geographical area, budget, enterprise goals. 3.1 Cost and benefit categories for individuals, groups with special needs and the nation are identified in terms of fitness participation. direct costs - participation fees, clothing costs, equipment costs; indirect costs - transport costs, nutrition costs; direct benefits - health, appearance, weight management, performance, stress management, self-esteem, social, fashion and/or style; indirect benefits - reduced exposure to degenerative disease, slower aging. 3.2 Marketing messages relating to fitness enterprise participation are identified in terms of benefits for the target market. benefits - health, appearance, weight management, performance, stress management, self-esteem, social, fashion and style. 3.3 Available channels for marketing are identified in terms of access to the target market. channels - TV, radio (commercial, community), print newspaper, print magazine, flyer, direct mail (mailing list, area), poster, sponsorship, signage (permanent, seasonal, event-related), fax, telephone (contact list, area).

6 6 of Selection of messages and channels matches marketing goals of the enterprise. enterprise image (branding), target market, compatibility with existing marketing, timing, cost, response generation. element 4 Develop and assess fitness advertising concepts. defined aspects - product, target market, geographical area, budget, enterprise goals; type - graphic, voice, print. 4.1 Analysis of current advertising concepts identifies range of competition in the market. direct competition, indirect competition. 4.2 Advertising concepts developed match product and target market characteristics. product characteristics may include - type of activity, existing participants, fitness outcomes, appearance outcomes, social outcomes, pricing; target market characteristics may include - age, gender, ethnicity, family status, household type, socioeconomic status, subculture.

7 7 of Selected response assessment method is capable of generating valid and reliable information on the effects of an advertising campaign. sample procedures, survey method, question selection. element 5 Analyse marketing expenditure and performance. 5.1 Methods for recording marketing expenditure provide full and accurate records of all material expenses associated with a marketing campaign or period. 5.2 Methods for recording results selects out responses attributable to a marketing campaign or period. point of sale survey, daily sales records. 5.3 Analysis of performance provides enterprise with estimate of net financial benefit associated with a marketing campaign or period. performance indicators include - statement of income and expenditure, comparison with period preceding, comparison with parallel period in previous year, comparison with budget projections and with membership and participation goals (as applicable).

8 8 of 9 element 6 Price fitness. 6.1 Understanding of product pricing is demonstrated through identification of key principles. select pricing objectives, determine demand, estimate costs, analyse prices of competing products and services, select a pricing method, assess competitor reactions. 6.2 Application of pricing principles to a fitness service or product produces a pricing policy that meets centre requirements. select pricing objectives, determine demand, estimate costs, analyse prices of competing products and services, select a pricing method, select final price. 6.3 Procedures for evaluating pricing policy are implemented to meet centre reporting requirements. demand trends (new clients, renewing clients), revenue trends, competitor reactions.

9 9 of 9 Comments to: Sport, Fitness and Recreation Industry Training Organisation - Fitness Advisory Group Unit Standard Revision PO Box 160 WELLINGTON by December Please Note: Providers must be accredited by the Qualifications Authority before they can offer programmes of education and training assessed against unit standards. Accredited providers assessing against unit standards must engage with the moderation system that applies to those unit standards. [Please refer to relevant Plan ref: 0069]

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