Coordinating and Controlling the Marketing Mix chapter 17 Coordinating and Controlling the Marketing Mix

Objectives To be able to compare and contrast the interaction and impact of the five Ps on one another To understand how organizational structure, job descriptions, and staff training affect organizational control of the marketing function To understand the need for control in achieving marketing effectiveness and to recognize some standard benchmarks of marketing performance in sport

Cross-Impacts Among the Five Ps Each element of the marketing mix can be addressed individually. Yet clearly these elements have a simultaneous cross-impact on the consumer. This impact can be assessed with the use of a cross-impact matrix (see figure 17.1).

Product and Price Impact of product and price is truly the impact of price on product. Price is the most visible and most readily communicable variable of the marketing mix. influences perceptions of quality and value. directly affects the product image. More often than not, consumers are balancing product and price in their minds as they consider purchasing a sport product.

The Cross-impact Matrix

Product and Place Sport consumers develop perceptions of the place in which an event occurs, namely, a facility image. Big-league products demand big-league places.

Product and Promotion Products define appropriate formats and media for promotions. Use the right promotional medium for the right product. Product may be excellent, but not known if not promoted or not promoted properly.

Product and Public Relations Public relations has an obvious effect on product image and position. Sport marketers do not have control of what the media’s message will be as they do with advertising. Perceptions are difficult to change even with proactive public relation strategies (e.g., Nike).

Impact of Price and Place There are two major impacts of price and place: Sport consumers expect to pay higher prices for better facilities. Consumers tend to pay more for convenience (which is a benefit).

Price and Promotion The price of a product dictates the media for advertising the product. The price determines the profit margin on the product, hence the promotional budget and in turn the media choice. The price of a product reflects not only its nature and cost but also the market to which the product is targeted. In both cost-plus and market-based pricing, the price reflects the target market's demographics and its media choices.

Price and Public Relations Pricing strategies can have a strong effect on public relations, for better or worse. Universities, teams, athletes, sport products, and nonsport products tied to sport all face the same challenges.

Place and Promotion The sport facility image is a strong one, and it directly influences the product image. A sport marketer can promote a stadium as the place to be. This is evident with high attendance at new facilities. Promoting an old, dilapidated facility is an uphill battle. A sport marketer can promote aspects of the venue as well.

Place and Public Relations A new facility has implications for all the other Ps. A new seat configuration requires a rescaling of ticket prices, which must be done with care for the overall franchise image. Proactive public relations leading up to the opening is an effective strategy to keep publics informed and positive.

Promotion and Public Relations The impact of a favorable or unfavorable public relations image cannot be underestimated. The public relations image can totally negate immense promotional efforts. Exercising good judgment and taste in promotion will prevent negative public relations.

Controlling the Marketing Function A comprehensive marketing control plan can ensure the creation and delivery of products that satisfy consumer wants and needs, nurture and preserve the credibility of the image that consumers hold of both the product and the organization, and set a clear direction for all units and personnel.

Elements of an Effective Marketing Control System Mission statements and objectives that have been established in light of current market position as compared with desired position An organizational structure that marshals resources to meet objectives Employee performance standards and criteria that logically link performance to objectives Methods to adjust strategy, structure, and personnel in light of performance

Performance Measures for the Marketing Units The number of favorable stories the public relations staff should nurture in print or electronic media Improved results in consumer satisfaction surveys The amount of revenue to be generated through various ticket packages, licensing agreements, or television contracts Relative increases in television or radio ratings compared to those of competitors (e.g., regional professional teams)

Screening Promotions Against Objectives Is it fun? Is it feasible? Is it affordable? Will it add to the fan experience? Will it be a $2 bill (i.e., unwanted or avoided)? Is the timing right? Is it suffering from the 8-ball syndrome (dead in the corner)? (continued)

Screening Promotions Against Objectives (continued) Has the remainder of the staff approved? Is it marketable? Will we have to apologize tomorrow? Will it promote the team or sponsor positively? Will it pass the “family test”? What will happen if we don't seize the moment? And last of all, when in doubt, WWVD (what would Veeck do?)