16-1 Chapter 16 Product Decisions in Sports Marketing McGraw-Hill/Irwin©2007 The McGraw-Hill Companies, All Rights Reserved
16-2 Sports Products Access to Spectator Sports Participation Sports Sporting Goods, Apparel, Athletic Shoes, and Sports-Related Products
16-3 Spectator Sports Live Audience Media-Based Audience –TV –Radio –Internet
16-4 Spectator Sports Product Product May Be Represented by: –Access to an Event –The Competition on the Field of Play
16-5 Participation Sports Organized Team Sports – Softball League Informal Team Sports – Pickup Soccer Individual Sports – Tennis, Jogging Other Leisure Activities – Fishing, Poker
16-6 Reasons for Participation Personal Improvement Appreciate the Sport Social Interaction
16-7SASS Sporting Goods – Spalding Basketball Apparel – Canterbury Rugby Shirt Athletic Shoes – Nike Air Jordans Sports-Related Products – Golf Lesson
16-8 Selling Sports Products Two Domains of the Sports Marketing Environment Matrix Traditional Strategies – Product-Focused Sponsorship Based – Sports Dominant
16-9 Strategic Initiatives – Spectator Sports Modifications to the Core Product Core Product Is the Game Itself – Whatever Takes Place on the Field of Play, Including the Manner in Which It Is Conducted, the Style and Strategy Employed, and the Interpretation of Understood Laws, Rules, Regulations, and Historical Precedents
16-10 Modification of the Core Product Done to Increase Appeal to Fans –Speed the Pace of Play –Increase Scoring –Enhance Competition Typical Core Modifications: –Changes in the Rules –Changes in Rules Enforcement by Officials
16-11 Examples of Changes to Core Product NASCAR – Race for the Cup NHL – Sudden Death and Shootout NFL – Clock Stoppage MLB – Designated Hitter Rule
16-12 Guidelines for Changes to the Core Product Should Have Positive Economic Consequences –Increased Attendance –Larger Media-Based Audiences
16-13 Guidelines for Changes to the Core Product Should Not be Made on the Basis of Implications for the Media –Often Are Changed for Media, but Needs to be Positioned as an Advantage for the Fans –NFL Changed Clock Stoppage Rules, in Part, to Speed Up the Game to Complete It in the Three Hour Window Provided by the TV Networks
16-14 Guidelines for Changes to the Core Product Tradition Is a Major Consideration in Changing a Sport’s Core Product –New Leagues Often Use Rules Changes as a Way of Differentiating Their Product –Any Changes to the Core Product Will Be Disdained by Many of the Sport’s Fans
16-15 Guidelines for Changes to the Core Product Core Changes Are Often Based Upon the Emergence of Competition and Its Impact on the Status Quo –When New Rules for New Competitions Are Embraced, the Original Product May Be Modified to Suit Fan Preferences NBA Adopted ABA’s 3-Point Shot Rule NFL Adopted WFL’s 2-Point Conversion
16-16 Guidelines for Changes to the Core Product Core Alterations Will Not Overcome Poor Quality –Poor Products Will Not Sell –XFL Was Viewed as Poorly Played Football; Failed in Less Than 2 Seasons Despite Innovative Changes in Rules
16-17 Guidelines for Changes to the Core Product Instead of Changing the Core Product, Consider Changes to the Peripheral Product The Peripheral Product Represents the Elements Surrounding the Game or Event Over Which the Organization Can Exercise a Reasonable Level of Control
16-18 Peripheral Product Alternative Entertainment at Venue –Carousels, Post-Event Concert or Fireworks Incorporation of Technology –WiFi, Virtual Technology on Broadcast Premiums –Giveaways such as bobblehead dolls, caps
16-19 Participation Sports Attracting New Participants Inducing Current Participants to Increase the Frequency with which They Choose to Participate
16-20 Increased Participation Impacts Usage for Participation Facilities –Golf Courses; Health Clubs, Tennis Courts Impacts Demand for Sporting Goods, etc. –Golf Balls, Apparel, Tennis Shoes Impacts Demand for Spectator Sports –Bowlers Are more Likely to be Bowling Fans
16-21 Target Marketing in the Participation Market Women Golfers Kids and 10-Pin Bowling Golf Tee Areas Based on Skill Levels NFL’s Olive Ball in China Rugby and Cricket in the USA
16-22 Target Marketing in the Participation Market
16-23SASS Sporting Goods, Apparel, Athletic Shoes, and Sports-Related Products
16-24 Sporting Goods New Target Markets Require Different Sporting Goods –Equipment for Female Softball Players New Participation Sports and Activities Emerge or Are Introduced in New Geographic Markets –American Football in China
16-25 Sporting Goods New Spectator Sports Influence Demand for Equipment for New Participants –NFL Europe in Germany, Scotland, and the Netherlands Modifications and Improvements to Existing Sporting Goods Products –Ski, Boot and Binding Designs that Enhance Both Performance and Safety
16-26Apparel For Participation For Fashion New Styles and Designs for Different Target Markets Updated Styles, Logos and Colors
16-27Apparel Demand Influenced by: –New Professional Team Uniforms and Logos –Endorsements by High-Profile Athletes –Situational Influences such as winning team
16-28 Athletic Shoes No Longer Placed in a Single Overall Category of “Tennis Shoes” Originally Based on Functionality Every Brand Endorsed by Athletes Function Important – Different Treads
16-29 Athletic Shoes Part of Everyday Wardrobe Today Not Just for Athletic Endeavors More Emphasis on Styles, Fabrics, Colors and Brands
16-30 Sports-Related Products (Some Examples) Souvenirs (Logo Merchandise) Media (Dedicated TV, Magazines, Web Site Access) Nonsports Products at Sports Venues (Food, Beverages, Programs, and Alternative Entertainment Options)
16-31 Closing Capsule Sports Marketing Is Not Just About Putting Fans in the Stadium Seats Spectator Sports Is the Most Commonly Recognized Sports Product In Selling the Spectator Sports Product, Marketers Must Consider Both the Live and the Media-Based Audiences
16-32 Closing Capsule The Core Product Is Sometimes Altered in an Attempt to Sell the Sport Care Should be Taken When Modifying the Core Product Peripheral Products Can Play an Important Role in the Marketing of Sports
16-33 Closing Capsule Other Sports Products Are Important to Sports Marketers as They Seek to: –Increase Participation –Sell apparel –Sell Sporting Goods –Sell Athletic Shoes –Sell an Array of Sports-Related Products