Chapter 4 Sports Products

Objectives Define the sports consumer. Explain market segmentation. Identify sports products. Explain the differences between sports goods and services. Differentiate between the product line and the product mix. Explain the economic impact of sports marketing.

Section 4.1 The Consumer and Sports Products

The Sports Consumer A consumer is someone who uses an actual product. A sports consumer is a person who may play, officiate, watch, or listen to sports, or read, use, purchase, and/or collect items related to sports.

Consumer Decisions Consumer decisions can be classified in two categories: 1) the consumer’s environmental factors, and 2) the consumers individual factors. Environmental factors that influence a consumer’s involvement in sports can include family and friends; society’s attitudes and values; cultural differences related to class, race, and gender; climate and region; and marketing influences such as commercials. Individual factors might include self-concept/self-image. An example is if a female views herself as an athlete, she may be inclined to play soccer, softball, or other sports. NFL research shows that 60% of fans say they became fans by the age of 11.

Sports Consumers and Market Segmentation Market segmentation is a way of analyzing a market by specific characteristics to create a target market. These characteristics include geographics, demographics, psychographics, and product benefits. Geographics are where consumers live. Demographics are statistics that describe a population in terms of gender, race, religion, and earnings. Psychographics are attitudes or opinions the consumer has toward recreational activities. Marketers also study consumers’ behaviors, needs, and wants.

Sports Products Sports Products are goods, services, ideas, or a combination related to sports that provide satisfaction to the consumer. An example is _________________. Why? How has NASCAR done an excellent job of marketing its sports products?

Types of Sports Products Products can be goods or services.

4 Types of Sports Products 1) Sporting Events – these events are the core product of sports – games, events, that include athletes and arenas. 2) Sports Information – this sports product involves news, statistics, schedules, and stories. Television, radio, online, and print media provide sports information. 3) Sports Training – this product is usually a service such as instruction through fitness centers, sports camps, and lessons. 4) Sporting Goods – these products usually include a wide range of goods, such as equipment, licensed merchandise, collectibles, and memorabilia, as well as apparel and accessories.

Sports Goods “Tangible products” are physical goods that offer benefits to the consumer. Skateboards, balls, and exercise equipment are tangible products.

Quality of Goods Questions Does the product conform to design specifications in the manufacturing process? How well does the product perform its function in the opinion of the consumer?

Quality Dimensions of Goods 1) Performance 2) Features 3) Conformity to Specs. 4) Reliability 5) Serviceability 6) Aesthetic Design

Sports Services Sports services are “intangible products.” Examples are: tennis lessons, personal training, and sports camps.

Quality of Service Reliability – the ability to perform promised services dependably and accurately. Assurance – knowledge and courtesy of employees and their ability to convey trust and confidence. Empathy – the caring, individualized attention provided by the professional sports franchise for its customers. Responsiveness – willingness to help customers and provide prompt service. Tangibles – appearance of equipment, personnel materials, and venue.

Sports Product Classifications Product Line – a group of closely related products manufactured and/or sold by a company. An example is __________. Product Mix – the total assortment of products that a company makes and/or sells. Ex.: Wilson Sporting Goods “product mix” includes equipment in tennis, baseball, basketball, football, hockey, and softball. Another example of product mix is __________.

Sports Product and Extensions The “Sporting Event” includes “core elements,” and “extensions.” Core Elements – players and arena. Extensions – tickets, programs, statistics, music, videos, mascots, apparel, and equipment. Explain the correlation - _____________.

Ripple Effects The main sporting event is just one type of sports product that generates more sports products, or product extensions.

Section 4.2 Economic Impact of Sports Marketing

Economic Effects What are the economic effects of purchasing a sports product? Identify all economic facets of this scenario – going to a professional sporting event (i.e. tickets, transportation, food, souvenirs…).

A Day at the Ballpark Opportunity Cost – each decision a consumer makes involves an opportunity cost, which is the loss of the opportunity passed up in order to receive something in exchange. Infrastructure – the physical development of an area including the major public systems, services, and facilities of a country or region needed to make a location function.

Sports Franchise Sports Franchise – an agreement or contract for a sports organization to sell a parent company’s good or service within a given area. Ex.: Orlando Magic Some owners, with league permission have moved their franchises. Examples are: 1) Baltimore Colt moving to Indianapolis, 2) Cleveland Browns (original team) moving to Baltimore (Baltimore Ravens).

Critical Thinking Assignment (100 Total Points) Scenario: Your favorite sports franchise is leaving town and going to another city. Write a one page opinion paper regarding the following: 1) your/the fans personal feelings about your team leaving, 2) the economic impact it will have on your city, 3) what should be done (new team)? 4) Infrastructure (is a new stadium necessary)? How is the money generated?

Economic and Marketing Challenges A profitable business is one that makes money. Sports marketing helps businesses make money as consumers have fun. Sports marketers face challenges. Ex.: Explain the marketing challenges faced by – 1) L.A. Lakers 2) L.A. Clippers What are the differences? Why?

Oral Group Presentation (100 Total Points/20 Points Each) Choose two sports teams (one that is well marketed, another that is not). List 10 positive attributes about the well marketed team. List 10 challenges for the not so well marketed team. Explain how the “lesser marketed” team will overcome these challenges. Persuasive oral presentation of how to better market the lesser team.

Assignment – Types of Sports Products (100 Total Points/5 Points Each) Partner Activity List 20 types of sports products, and identify if they are a good or service.

Checking Concepts/Critical Thinking/Cross-Curriculum Skills 1) Describe how a marketer views a sports consumer. 2) Name the four characteristics that need to be considered when analyzing the market segment of sports consumers. 3) Describe what happens when the correct sports consumer is targeted by a sports marketing plan. 4) Identify the sports product. 5) Explain how sports goods and sports services differ. 6) Compare a product line and product mix. 7) Define grassroots marketing. 8) Explain five dimensions of service quality and how they apply to a sports team. 9) Identify/list characteristics of a team mascot. 10) Jason has $100 to go to a game. He has 4 friends that want to go with him. Individual tickets are $25 each. He can get a group discount of 20%. Will all 5 of them be able to go? How much will it cost Jason?

Types of Sports Products