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Chapter 14Chapter 14

Product Decisions Product Decisions

in Sports Marketingin Sports Marketing

Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill/Irwin

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ProductProduct

• First Variable in the Traditional Marketing Mix

• Emphasis is now on the Product-Focused Domain– Marketing of Sports Products Using

Traditional Strategies

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The Product VariableThe Product Variable

• What the Marketer Is Attempting to Sell to Its Customers

• Products Can Be Tangible Goods or Intangible Services– Good – Burton Snowboard– Service – Lift Ticket for Whistler Ski Resort

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Basic Product ConceptsBasic Product Concepts

• Augmented Product – Basic Benefit

• Ancillary Components – Additional Benefits

• Total Product – The Augmented Product Combined with the Ancillary Components

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Product AssortmentProduct Assortment

• Array of Products Offered by the Marketer

• Periodic Assessment of the Assortment– Maintain Status Quo– Modify Existing Products in Assortment– Product Extension– Introduce New Products– Product Deletion

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Sports ProductsSports Products

• Access to Spectator Sports

• Participation Sports

• Sporting Goods, Apparel, Athletic Shoes,

and Sports-Related Products (SASS)

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Spectator SportsSpectator Sports

• Live Audience

• Media-Based Audience– TV– Radio– Internet– Mobile Technology

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Spectator Sports ProductSpectator Sports Product

• Product May Be Represented by:

– Access to an Event

– The Competition on the Field of Play

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Participation SportsParticipation Sports

• Organized Team Sports – Softball League

• Informal Team Sports – Pickup Soccer

• Individual Sports – Tennis, Jogging

• Other Leisure Activities – Fishing, Poker

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Key Reasons for ParticipationKey Reasons for Participation

• Personal Improvement

• Appreciation of the Sport

• Social Interaction

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SASSSASS

• Sporting Goods – Spalding Basketball

• Apparel – Canterbury Rugby Shirt

• Athletic Shoes – Nike Air Jordans

• Sports-Related Products – Golf Lesson

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Selling Sports ProductsSelling Sports Products

• Two Domains of the Sports Marketing Environment Matrix

• Traditional Strategies – Product-Focused

• Sponsorship Based – Sports Dominant

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Strategic Initiatives – the CoreStrategic Initiatives – the CoreProduct for Spectator SportsProduct for Spectator Sports

The 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

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Modification of the Core ProductModification 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

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Examples of Changes Examples of Changes to Core Productto Core Product

• NASCAR – Race for the Cup

• NHL – Sudden Death and Shootout

• NFL – Clock Stoppage

• MLB – Using Instant Replay for Some Calls

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Guidelines for Changes Guidelines for Changes to the Core Product to the Core Product

• Should Have Positive Economic Consequences

– Increased Attendance– Larger Media-Based Audiences

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Guidelines for Changes Guidelines for Changes to the Core Productto the Core Product

• Should Not be Made on the Basis of Implications for the Media

– Often Are Changed for Media, but Need to be Positioned as Advantages 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

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Guidelines for Changes Guidelines for Changes to the Core Productto 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

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Guidelines for Changes Guidelines for Changes to the Core Productto 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 the ABA’s 3-Point Shot Rule• NFL Adopted the USFL’s 2-Point Conversion

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Guidelines for Changes Guidelines for Changes to the Core Productto 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 to the Core Product

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Guidelines for Changes Guidelines for Changes to the Core Productto 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

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Peripheral ProductPeripheral 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

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Participation SportsParticipation Sports

• Two Primary Marketing Tasks

– Attracting New Participants

– Inducing Current Participants to Increase the Frequency with which They Choose to Participate

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Outcomes from Outcomes from Increased ParticipationIncreased 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

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Examples of Target Marketing Examples of Target Marketing in the Participation Marketin 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

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Target Marketing Target Marketing in the Participation Marketin the Participation Market

• Drop in Figure 14.3 Here

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SASSSASS

• Sporting Goods

• Apparel

• Athletic Shoes

• Sports-Related Products

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Sporting GoodsSporting 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

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Sporting GoodsSporting Goods

• New Spectator Sports Influence Demand for Equipment for New Participants– NFL in Europe

• Modifications and Improvements to Existing Sporting Goods Products– Ski, Boot and Binding Designs that Enhance

Both Performance and Safety

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ApparelApparel

• For Participation

• For Fashion

• New Styles and Designs for Different Target Markets

• Updated Styles, Logos, and Colors

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ApparelApparel

• Demand is Influenced by:

– New Professional Team Uniforms and Logos– Endorsements by High-Profile Athletes– Situational Influences such as Winning Team

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Athletic ShoesAthletic Shoes

• No Longer Placed in a Single Overall Generic Category of “Tennis Shoes”

• Originally Based on Functionality

• Every Major Brand Endorsed by Athletes

• Function Important – i.e. Different Treads

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Athletic Shoes (cont’d)Athletic Shoes (cont’d)

• Part of Everyday Wardrobe Today

• Not Just for Athletic Endeavors

• More Emphasis on Styles, Fabrics, Colors and Brands

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Sports-Related ProductsSports-Related Products(Some Examples)(Some Examples)

• Souvenirs (Logo Merchandise)

• Media (Dedicated TV, Magazines, Web Site Access)

• Nonsports Products at Sports Venues (Food, Beverages, Programs, and Alternative Entertainment Options)

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Closing CapsuleClosing 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

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Closing CapsuleClosing 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 a Key Role in the Marketing of Spectator Sports

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Closing CapsuleClosing 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