1. SPORTS PRODUCT CONCEPTS
CHAPTER 8
SPORTS PRODUCT CONCEPTS

2. Sports Product Concepts
Sports Product - Good, Service or Combination of the two that is designed to provide benefits to a sports spectator, participant, or sponsor.

3. Goods and Services as Sports Products (The Good/Service Continuum)
Intangibility – cannot be seen, felt, tasted
Inseparability – simultaneous production and consumption
Heterogeneity – potential for high variability
Perishability – cannot be inventoried or saved

4. Classification Of Sports Products
Product Mix - All the different products and services a firm offers
Product Line - Groups of individual products that are closely related in some way
Product Item - Any specific version of a product that can be designated as a distinct offering

5. Product Characteristics
Branding
Total Product
Product Quality
Product Design

6. Branding Name,design, symbol, or any combination
Broad purpose of branding is for a product to distinguish and differentiate itself from all other products
Some great sports names include the Macon Whoopie, Louisiana Ice Gators

7. Brand Names What’s in a name?
Easy to say, generates positive feelings and associations
Translatable into a successful logo
Consistent with rest of product lines, city, or organization
Legally and ethically permissible

8. Branding Process Brand Awareness Brand Image Brand Equity
Brand Loyalty

9. Model of Brand Equity

10. Licensing
Contractual agreement whereby a company may use another company’s branding in exchange for a royalty or fee
Booming business (e.g., NBA has 150 licenses) with $13.65 billion
NFL (3.6) NBA (2.6) Colleges (2.0) MLB (1.9) NHL (1.2)
CAPS (Coalition to Advance the Protection of Sports Logos)

11. Sports Product Quality
Quality of Services
Quality of Goods

12. PERCEIVED SERVICE LEVELS
Nature of Service Quality
EXPECTED SERVICE LEVELS
PERCEIVED SERVICE LEVELS

13. Expected Service Levels
Service Promises (ads, price)
Word-of-Mouth
Past Experience

14. Perceived Service Levels - Service Quality Dimensions
Tangibles – Physical facilities, appearance of personnel, equipment
Reliability – Ability to perform the service dependably, accurately, consistently
Responsiveness – Willingness to provide prompt service to customers
Assurance – Trust, knowledge, and courtesy of employees
Empathy – Caring, individualized attention to customers

15. Quality of Goods Dimensions
Performance
Features
Conformity to Specifications
Reliability
Durability
Serviceability
Aesthetic Design

16. Technological Environment
Product Design - Aesthetics, Style and Function of the Product RELATIONSHIP AMONG PRODUCT DESIGN, TECHNOLOGY, AND PRODUCT QUALITY
Technological Environment
Product Design
Product Quality

17. CHAPTER 9 Marketing Entertainment
9.1 Customized Entertainment
9.2 Entertainment Technology and Marketing
9.3 World Entertainment Marketing

18. LESSON 9.1 Customized Entertainment
GOALS
Explain customizing entertainment products for a market segment.
Describe customized entertainment marketing for Baby Boomers.

19. Customizing Products
Market segment—a group of people who have the ability and the desire to purchase a specific product
Customizing—changing a product to fit the needs or wants of a particular market

20. Local TV American Style
Number of viewers
Cost

21. Children’s Programming
Locally produced programs
Advertising

22. Sports Programming Regional broadcast
Cable, satellite, and pay-per-view
Cost of programming
Tiering—certain sports programs outside the basic cable package would incur extra costs for the viewers who choose them

23. Public TV and Radio Viewer- and listener-supported
Non-profit organizations
Created locally and tailored to the viewers or listeners

24. Marketing to Baby Boomers
Generation born between 1946 and 1964
76 million people
Boomers won’t retire
Work beyond normal retirement age
Remain active
Discretionary income
Segmenting the group

25. Entertaining the Boomers
Attendance at movies
Movie reviews
Movie stars of similar age

26. Understanding All Parts of the Group
Diverse in opinion
Marketing message must be fine-tuned
Major target of entertainment marketing through 2020

27. LESSON 9.2 Entertainment Technology and Marketing
GOALS
Explain the economic utility of entertainment.
Discuss the impact of technology on entertainment.

28. Entertainment Economics
Economic utility—the amount of satisfaction a person receives from the consumption of a particular product or service

29. Types of Utility
Form utility—when the physical characteristics of a product or service are improved
Time utility—the result of making the movie available when the viewer wants it
Place utility—ensures that the movie is available where the viewer wants it
Possession utility—results from making the movie available at an affordable price

30. Utilities on Broadway
Broadway productions taken on the road and produced in many major cities
Economic utility is improved when people are able to choose from multiple forms of the same entertainment

31. Techno-Vision Through a child’s eyes Speed is the key
Early adoption of new technologies
Innovative
Speed is the key
Speed depends on bandwidth
Bandwidth—the technical term for the capacity of communication channels
Personalized television in the future

32. More about the Internet
Access to information on practically every subject
You must have an Internet Service Provider (ISP)
Entertainment distribution

33. Technology
The Internet
TV and the Internet

34. Cookies, Anyone?
Clickstream data—collected at each mouse-click within a web site
Cookie—a small data file placed on the hard drive of the web site visitor

35. Consumer Privacy Concerns about how personal information is used
Information gathered from children
Credit card information
Entertainment industry
Collecting data to protect copyrights

36. Movies or Toy Commercials?
Blurring the line between movies and commercials
Merchandising plans in place in advance of upcoming films

37. LESSON 9.3 World Entertainment Marketing
GOALS
Discuss the economics of global marketing entertainment.
Describe global distribution of entertainment.

38. Global Marketing Research Technology and distribution Culture
Economic development
Economic conditions
Technology and distribution

39. Global Challenges Government policy
Interest in developing national entertainment industry
Interest in protecting culture
Tariffs

40. Global Distribution Disney in Europe Elvis in Israel
Country all over the world
International music
International showcase
International sports

41. Disney in Europe
Disney merchandise can be purchased throughout the world

42. Elvis in Israel
Israelis gather at the Elvis Inn
Appeal of an icon

43. Country All Over the World
American country music is popular all over the world
Kumamoto Country Gold Festival

44. International Music
Eurovision Song Contest pop music competition

45. International Showcase
Cannes International Film Festival
Jury reviews films for the Cannes Awards

46. International Sports NFL Europe League
Television coverage expanding both in Europe and the United States

47. CHAPTER 10 Recreation Marketing
10.1 Recreational Sports
10.2 Travel and Tourism
10.3 Resorts and Theme Parks
10.4 Recreation Marketing Careers

48. LESSON 10.1 Recreational Sports
GOALS
Explain marketing strategies based on changing demographics.
Apply market information to recreational events.

49. Fitness and Fun Facilities versus wilderness
Recreational space for local residents
Environmental impact
Must balance needs
Managing customer information
Customer database
Product planning and promotion

50. Is Fitness a Trend? Changing demographics Senior Olympics
Participation of youngsters

51. Event Marketing Sponsorship The future is here Inline skating
Mountain biking
Snowboarding

52. Snowboard Madness Sport continues to grow Indoor snowboard facilities
Marketers looking for new areas

53. LESSON 10.2 Travel and Tourism
GOALS
Explain the importance of the travel and tourism industry to sports and entertainment marketing.
Describe how technology has changed travel marketing.

54. Road Trip Travel and tourism supporting business
Traveling to sporting events

55. The Products
Transportation
Accommodations
Meals
Other attractions

56. Travel Technology Online tickets sales and reservations
e-tickets—electronic tickets

57. Lean Times for Travel Agencies
Traditional ticket distribution channel until recently
Newer channel is direct sales through web sites

58. Price Versus Convenience
Online travel service
Priceline.com

59. Small World The business traveler The tourist
Major source of profit for the travel industry
Airline member-only clubs
The tourist
Self-indulgence travel
Cultural travel
Activity tours
Reality tours

60. Ecotourism
Ecotourism—responsible travel to natural areas that conserves the environment and sustains the well-being of local people
Fast-growing segment of travel industry

61. LESSON 10.3 Resorts and Theme Parks
GOALS
Understand the importance of partnerships between airlines and recreation destinations.
Discuss the popularity of halls of fame as destinations.
Explain the marketing strategies of theme parks and resorts.

62. Traveling to Destinations
Short-haul destinations
Low seasons
Getting there is half the fun
Resorts and theme parks depend on airlines to bring customers to them
Partnerships to coordinate efforts
Resort tech
Online sales strategies
Direct sales of tickets and hotel rooms

63. Halls of Fame Travel destination Sports and non-sports interests
A hall is not always a hall
No specifications for the site of a hall of fame
Must attract visitors
Promotion by word of mouth
A complete destination

64. Resorts and Theme Parks
Popular tourist destinations
Theme parks are family-oriented
Resorts aimed at adults
Children have a major influence on choice of destination

65. Theme Park Central
Disney is the world leader in the theme park industry
Tiering for premium services
Creating an attraction requires customizing

66. It’s Not Orlando Amusement parks in China
Inadequate or inaccurate marketing information about potential customers

67. LESSON 10.4 Recreation Marketing Careers
GOALS
Describe careers in recreation marketing.
Develop a recreation marketing career plan.

68. Building a Career Planning the trip What’s out there?
Wide selection of career paths
Research jobs and what they require
What’s out there?
Marketing positions in every firm in the recreation business
Searching for jobs using the Internet
Research national travel agencies

69. Getting Ready What’s school got to do with it?
Education requirements
Tech Prep program
How About the Real Thing?
Internships
Part-time work
Job shadowing —spending active work time with someone in a certain job or career

70. People Skills Are Critical
Manage your behavior
Adopt appropriate behavior for success

71. Recreation Marketing Careers
Recreation marketers needed to develop and execute the seven marketing functions
Communication and presentation skills
Most positions require a bachelor’s degree
Salary and perks

72. CHAPTER 11 Marketing Plans
11.1 Advertising
11.2 Marketing Research
11.3 Develop a Marketing Plan
11.4 The Bottom Line

73. GOALS Explain the steps in the advertising process.
LESSON 11.1 Advertising
GOALS
Explain the steps in the advertising process.
Understand the importance of measuring advertising effectiveness.

74. Advertising
Advertising—paid, non-personal communication between an identified sponsor and a potential customer about a product or service

75. Step By Step Set measurable advertising goal
Develop the advertising budget
Create an advertising theme
Choose the advertising media
Create the advertisement
Develop an advertising schedule
Measure the effectiveness of the advertisement

76. The Goal Determine a specific measurable goal Ad effectiveness
Brand recognition—the number of people who recognize the brand name of a product

77. The Budget Marginal analysis Percent of sales Bartering
Fixed sum per unit
Payout planning
Competitive parity

78. The Theme
Tag line—theme of an ad
Conveys the main message of the ad

79. The Media Print Broadcast/cable The Internet
Media strategy—choosing the media that will bring the most effective advertising message to the targeted consumer
Reach—information about which targeted demographic segments are most likely to be reached

80. The Advertisement Copy Art
Wear out—when an ad loses its effectiveness due to overexposure or poor message quality

81. The Schedule Cost-effective media Concentration strategy of scheduling
Dominance strategy

82. The Effectiveness Response rate
Ad effectiveness helps to shape and improve a business’s future media strategy

83. Pulling It All Together
Dominance strategy
Running the show
Shows “pitched” to advertisers
Primetime advertising
Expected audience ratings

84. LESSON 11.2 Marketing Research
GOALS
Define the purposes of marketing research.
Understand the human element in marketing research.

85. Researching the Market
New marketing medium
1940—television
Early 21st century—Internet
Mass market—broad categories of people

86. Marketing Information
Marketing research—the process of determining what customers want
Define the problem
Analyze current conditions
Develop the process
Collect, organize, and analyze the data
Determine a solution to the problem
Evaluate the results from the changes

87. Data Mining Data mining—digging up data needed to make decisions
Nielsen Media Research
Sample—an estimate of how many people watch a TV show

88. School’s Out School holiday and weekends U.S. youth ages 8–21
52 million
Annual income of $211 billion
Harris Interactive YouthPulse
E-commerce

89. Who Is Asking? Specialized marketing research Custom research
Syndicated research
What’s in it for me?

90. Worldwide Data Global market continues to grow
Culture of potential new customers
Marketing information must be used to shape its product for new customers

91. Careers in Marketing Research
Collect data
Track sales
Monitor advertising spending

92. LESSON 11.3 Develop a Marketing Plan
GOALS
Explain the purpose of a marketing plan.
Describe the components of a strategic marketing plan.

93. Know Where You Are Headed
Marketing plan—a written component of the strategic plan that addresses how the company will carry out the key marketing functions
Mission statement—the identification of the nature of the business or the reasons the business exists

94. A Sense of Direction Analyze data Decide what your customers want
Delivery
Customers’ future needs
Specific needs of the firm and the products

95. Focusing on the Customer
Blockbuster
Overhauled business model and marketing strategy plan
More of what the customer wants

96. What’s The Plan?
Perishable product
Pre-sale

97. Components of a Strategic Marketing Plan
Mission
Goals
Product planning
Marketing-information management
Distribution system
Pricing
Promotional strategies
Financing
Purchasing
Risk management
Selling
People
Internal communication systems
Timelines for implementing the plan
Intervals of review and evaluation
The future

98. LESSON 11.4 The Bottom Line
GOALS
Discuss the profit motive behind sports and entertainment marketing.
Describe the types of financing related to sports and entertainment marketing.

99. Let’s Make Money!
Profit—the amount of money remaining after all costs, including salaries, advertising, utilities, and other expenditures, have been paid
Who gets the money?

100. And More Money! Challenges of physical limits
New homes for sports teams
Did we make money?

101. Challenges of Physical Limits
Limited number of seats
Sources of revenue with potential growth
Personal seat licenses
Concessions
Commercial licenses

102. New Homes for Sports Teams
Professional sports stadiums costly
Public subsidy
Higher ticket prices

103. Did We Make Money?
Forecast—predicts the cost of expenses and expected revenues from an event
Budget—provides estimates of expected expenditures and revenues
Balance sheet—shows the company’s current assets, including cash, property, and equipment, and it current liabilities, including debts owed and loans
Income statement—a record of all revenue received and all expenses incurred

104. CHAPTER 12 Legal Issues For Sports and Entertainment
12.1 Laws and Contracts
12.2 Unions
12.3 Licensing

105. LESSON 12.1 Laws and Contracts
GOALS
Explain risk management in the distribution of sports and entertainment marketing.
Describe the importance of copyright law to pricing.
Discuss the need for contracts.

106. The Law Managing risk Liable—legally responsible for damages
Risk—the possibility of financial loss or personal injury

107. Steps to Risk Management
Identify risks.
Estimate the possibility of each risk.
Determine how great the consequences are.
Determine how to control the risk.

108. Control the Risk Limit the possibility of risk through planning.
Purchase insurance that transfers the cost of the risk to the insurance company.
Transfer liability through a contract.
Cover the risk in the event budget.
Avoid offering the risky event.

109. Who Has The Rights?
Copyright laws—protect the unique work of the originator within the geographic boundaries to which the laws apply
Royalty—payment made to the owner of a copyright for the use of a copyrighted work

110. U.S. Laws
International copyright convention
Celebrity marketability

111. Legal Listening Recording Industry Association of America (RIAA)
File sharing
Apple’s iTunes Music Store

112. Federal Laws Sherman Antitrust Act (1890) Clayton Act (1914)
National Labor Relations Act (1935)
Contracts the bind
Contracts—agreements enforced by law that detail the transaction of business
Contract law

113. GOALS Analyze the public relations impact of labor laws on sports.
LESSON 12.2 Unions
GOALS
Analyze the public relations impact of labor laws on sports.
Assess the financial harm that strikes may cause to a sport.
Analyze the impact of labor unions on sports and entertainment pricing.

114. Organized Labor
Players’ associations—professional athletes organized into labor unions
Collective bargaining—a group of employees joining together as a single unit to negotiate with employers

115. Bargaining Rights Minimum and maximum salaries Grievance procedures
Contract lengths
Rules of operation
Negotiations with skilled communicators
Higher salaries
Higher percentage of revenue from the game
Increased costs passed along to the fans

116. Topping the Salary
Salary cap—a maximum amount that a team can spend on players’ salaries

117. Owners Versus Players
Lock-out
Strike

118. Picking up the Pieces Work stoppages Loss of revenue for all parties
Congress
Winning back fans

119. Labor Relations Soccer success Entertainment labor Getting along
Single-entity league
Owners are business partners
Entertainment labor
Screen Actors Guild (SAG)
American Federation of Television and Radio Artists (AFTRA)
Union power
Getting along

120. GOALS Explain licensing.
LESSON 12.3 Licensing
GOALS
Explain licensing.
Describe the financial value of licensing sports and entertainment merchandise.

121. Walking Billboards Reaching agreement
Licensing—giving permission to copy the logo of a league, athlete, team, entertainer, film, or TV show for a fee paid to the right holder of the image
Licensing allows unions to focus on their primary business

122. Worldwide Publicity Availability of licensed items
New opportunities in Europe

123. Getting Licensed A complete business plan
A sample of drawing of the product
The costs of production and distribution
A marketing plan
The existing distribution channels for the product

124. Easy to Apply, Hard to Obtain
Immediate recognition and honor to a product
Limited number of licenses granted

125. Keeping Current Fashions, uniforms, and team logos change
Promotional strategies
Changing logo, color, or uniform
Adding creative new items, licensees, and sales methods
Widening the marketing to the world

126. Managing Licensing License applications Selection of licensees
Minimum guarantees
Design handbook and marketing plan
New product lines and number of designs
Approval process guidelines
Design review
Accounting
Counterfeit merchandise

127. New Success Story NASCAR Nextel Cup Series Target market
ten-year agreement
36 championship-point races
23 tracks
19 states
Target market

128. Legal Protection Federal registration as a trademark—
Civil and criminal penalties for violation

129. DISTRIBUTION CONCEPTS
CHAPTER 13
DISTRIBUTION CONCEPTS

130. Distribution Concepts
Ability of consumers to gain access to products in a timely and convenient fashion
Moving product from producer to consumer via the various channels of distribution

131. Sports Distribution Issues
Sports Retailing
Stadium as “Place”
Sports Media

132. Sports Retailing Mix
Products
Pricing
Distribution
Promotion

133. Retail Image/Store Personality
Factors include (in general):
atmospherics
location
employees/sales personnel
clientele
merchandise assortment
promotional activities

134. Stadium as “Place”
New Sports Venues
Ticket Distribution Issues

135. Sports Media as Distribution
Delivering the Sports Product to Consumers Via Media
Rising Cost of Media Rights
Media as a Portion of the Revenue Mix
New Trends in Sports Media

136. CHAPTER 14
PRICING CONCEPTS

137. Pricing Concepts Price is a Statement of Value
Value = Perceived Benefits
Price of Sports Product
Essence of pricing is the exchange process - An attempt to quantify the value of what is being exchanged

138. Internal and External Determinants of Pricing

139. RELATIONSHIP OF PRICE TO SOME OTHER MARKETING MIX ELEMENTS
Related to product life cycle
Communicates something about the product
Promotion geared towards information about price
Product lines with different prices attract different segments of consumers

140. Estimating Consumer Demand
Consumer Tastes
Availability of Substitute Sports Products
Consumer Income

141. Price Elasticity of Demand

142. Consumer Pricing Evaluation Process

143. CHAPTER 15
PRICING STRATEGIES

144. Pricing Strategies Differential Pricing Strategies
New Sports Product Pricing Strategies
Psychological Pricing Strategies
Product Mix Pricing Strategies
Cost-Based Pricing Strategies

145. Differential Pricing
Second Market Discounting

146. New Sports Product Pricing
Penetration Pricing
Price Skimming

147. Psychological Pricing
Prestige Pricing
Referent Pricing
Odd-Even Pricing
Traditional Pricing

148. Product-Mix Pricing
Bundle Pricing
Captive Pricing
Two-Part Pricing

149. Cost-Based Pricing Cost-Plus Pricing Target Profit Pricing
Break-Even Pricing

150. Price Adjustments
Price Reductions and Price Increases
Price Discounts

151. IMPLEMENTING AND CONTROLLING THE STRATEGIC SPORTS MARKETING PROCESS
CHAPTER 16
IMPLEMENTING AND CONTROLLING THE STRATEGIC SPORTS MARKETING PROCESS

152. Implementation Issues
Communications
Staffing and Skills
Coordination
Rewards
Information
Creativity
Budgeting

153. Implementation Phase

154. Strategic Control Issues
Planning Assumptions Control
Process Control
Contingency Control

155. Planning Assumptions Control
“Are the premises or assumptions used to develop this marketing plan still valid?”
Examine the external environmental factors and the sports industry factors

156. Process Control Monitoring Strategic Thrusts Milestone Review
Financial Analysis

157. Contingency Control
“How can we protect our marketing strategy from unexpected events or crises that could affect our ability to pursue the chosen strategic direction?”
Developing a Crisis Plan