Chapter 6 Sports Market Research and Outlets

Objectives Define market research. Explain how businesses use market research. Identify the steps used in the research process. Explain how businesses make the place decision as part of the marketing mix. Discuss direct and indirect channels of distribution.

Case Study – A Place For Athletes After sports marketers research their customers, they make decisions about where to distribute or place their products. A player is considered a product and agents help athletes find their place in sports. (100 Total Points) Analyze and write. 1) How might an agent “distribute” an athlete’s image? 2) How would an agency’s duties change as the NBA changes? 3) What are some challenges that may come with the globalization of the NBA? 4) What are some benefits that may come with the globalization of the NBA?

Section 6.1 The Research Process

Research and the Marketing Concept Market Research – the process of systematically collecting, recording, analyzing, and presenting data related to marketing goods and services.

Steps in the Market Research Process 1) Identify the problem. 2) Conduct secondary research. 3) Select and design primary research. 4) Collect data. 5) Report and analyze data.

Identify the Problem Identifying the problem requires asking a question that research can help answer. Ex.: What can we do about the image of our basketball so that it will stand out in the market?

Conduct Secondary Research Secondary Research – published data that have been collected for some other purpose. Data – recorded facts and figures that are organized and analyzed.

Select and Design Primary Research Primary Research – original research conducted for a specific marketing situation.

3 Types of Research Methods 1) Experiment 2) Observation 3) Survey

Experiment An experimental design for research has two parts, or variables (independent and dependent). The independent variable is the variable that is being manipulated or changed. The dependent variable is the one affected by the change. Example: Changing the ticket price to a minor league baseball game (independent variable), to see if ticket sales (dependent variable) would increase is an example of experimental design.

Observation The “observation method” is a research technique that involves watching actual behavior and recording it via text, writing, audio or visual methods. Example: If you want to learn which type of sports video games appeal to kids – use observation method.

Survey Survey method involves asking questions of participants in a study.

Types of Survey Questions Types of Survey Questions Open-ended questions Close-ended questions

Open-ended Questions Open-ended questions – questions that are designed to encourage a full, meaningful answer using the person’s own knowledge and/or feelings. Example: Why is football your favorite sport? Another example open-ended question is _______________?

Closed-Ended Questions Closed-Ended Questions encourage a short or single word answer? Example: Do you like pizza? Another example closed-ended question is ________________?

Questionnaires Questionnaires are written surveys that can be administered in person, by phone, fax, mail, or online. Data can be quantified or measured, sorted, and put into analysis.

Collecting Data Collecting data may have advantages and disadvantages related to time, cost, and accuracy of what is collected.

Census Census – a study that counts everyone in the research population. Example: A youth basketball league might conduct a census of 50 players to determine which tournament they would like to play in.

Sample Sample – a number of people who are representative of a study’s population.

Data Mining Data Mining – a process of collecting data from one or more existing databases and looking for relationships among the data. Data mining is used to find out: 1) Market segmentation, 2) Customer or client profiling, 3) Fraud detection, 4) Success or failure of promotions, 5) Credit risk or acceptability.

Report and Analyze Data Qualitative Data – qualitative or subjective data is reported in paragraph form. Quantitative Data – quantitative data or objective data can be reported in graphs, charts, with analysis.

Section 6.2 Outlets – The Place Decision

Channels of Distribution Direct Channel – A direct channel of distribution is the path a product takes without the help of any intermediaries between the producer and consumer. Ex.: SRI Sports sells Astroturf brand synthetic turf directly to colleges and pro sports teams. Another example is _____________.

Direct Marketing Direct Marketing involves marketing activities to sell products directly to customers through the use of a customer database.

Telephone Sales Telephone sales are selling activities in which a live person or a recording calls a number in the database to inform the potential customer about a product or service. Telemarketing can produce immediate sales.

Print Print media was a popular way to apply direct marketing techniques. What has happened to J.C. Penney’s catalogs? Why?

Television Television makes a huge marketing impact. Infomercials are 30 minute ads. Examples are ______________.

and the Internet The internet allows us to obtain information without leaving our homes. Photos and descriptions of products can be placed in an for easy customer access.

Indirect Channels An indirect channel of distribution is the path a product takes using intermediaries, or people or services in the middle of a transaction, between the producer and consumer. An example is _____________.

Agents Agents do not take ownership of the goods they sell. They simply bring buyers and sellers together for a fee. Agents can be brick and mortar stores, online, or telephone services. Ticketmaster is an example of an agent intermediary.

Wholesalers Wholesalers Wholesalers are resellers who buy goods, store them, and sell them in smaller quantities to retailers or sports organizations.

Retailers Retailers are resellers too, but they sell their goods directly to the customer.

Multiple Channels The use of multiple channels involves more than one type of distribution channel to reach customers. For example, Nike use multiple channels, such as its own web site, and retail stores to promote and sell its own products.