CHAPTER 7

SEGMENTATION, TARGETING, AND POSITIONING

Segmentation - Grouping consumers together with common

needs

Segmentation Bases:• Demographic• Geographic• Psychographic• Benefits• Geodemographic• Behavioral

Segmentation – Modern Family Life Cycle

Targeting - Evaluating the various segments and selecting the one(s) that promises the best ROMISuccessful Targets Must (Be):• Sizable• Measurable• Reachable• Demonstrate Behavioral Variation

Positioning - Finding a way to fix your product in the minds of

consumersPerceptual Mapping

extremeconservative

high price

low price

Six Attributes of Sports• Strength, speed vs. methodical, precise movements• Athletes only as participants vs. athletes +

recreational participants• Skill emphasis on impact with object vs. skill

emphasis on body movement• Practice primarily alone vs. primarily with others• A younger participant in the sport vs. wide age

range of participants• Less masculine vs. more masculine

Perceptual Map for Sports

CHAPTER 8

SPORTS PRODUCT CONCEPTS

CHAPTER 7

SEGMENTATION, TARGETING, AND POSITIONING

Segmentation - Grouping consumers together with common

needs

Segmentation Bases:• Demographic• Geographic• Psychographic• Benefits• Geodemographic• Behavioral

Segmentation – Modern Family Life Cycle

Targeting - Evaluating the various segments and selecting the one(s) that promises the best ROMISuccessful Targets Must (Be):• Sizable• Measurable• Reachable• Demonstrate Behavioral Variation

Positioning - Finding a way to fix your product in the minds of

consumersPerceptual Mapping

extremeconservative

high price

low price

Six Attributes of Sports• Strength, speed vs. methodical, precise movements• Athletes only as participants vs. athletes +

recreational participants• Skill emphasis on impact with object vs. skill

emphasis on body movement• Practice primarily alone vs. primarily with others• A younger participant in the sport vs. wide age

range of participants• Less masculine vs. more masculine

Perceptual Map for Sports

Sports Product Concepts

• Sports Product - Good, Service or Combination of the two that is designed to provide benefits to a sports spectator, participant, or sponsor.

Goods and Services as Sports Products

(The Good/Service Continuum)• Intangibility – cannot be seen, felt,

tasted• Inseparability – simultaneous

production and consumption• Heterogeneity – potential for high

variability• Perishability – cannot be inventoried or

saved

Classification Of Sports Products

• Product Mix - All the different products and services a firm offers

• Product Line - Groups of individual products that are closely related in some way

• Product Item - Any specific version of a product that can be designated as a distinct offering

Product Characteristics

Branding

Product Design

Product Quality

Total Produc

t

Branding

• Name,design, symbol, or any combination

• Broad purpose of branding is for a product to distinguish and differentiate itself from all other products

• Some great sports names include the Macon Whoopie, Louisiana Ice Gators

Brand Names

• What’s in a name?– Easy to say, generates positive feelings

and associations– Translatable into a successful logo– Consistent with rest of product lines, city,

or organization– Legally and ethically permissible

Branding Process

Brand Awareness

Brand Image

Brand Equity

Brand Loyalty

Model of Brand Equity

Licensing• Contractual agreement whereby a

company may use another company’s branding in exchange for a royalty or fee

• Booming business (e.g., NBA has 150 licenses) with $13.65 billion

• NFL (3.6) NBA (2.6) Colleges (2.0) MLB (1.9) NHL (1.2)

• CAPS (Coalition to Advance the Protection of Sports Logos)

Sports Product Quality

• Quality of Services• Quality of Goods

Nature of Service Quality

EXPECTED SERVICE LEVELS

PERCEIVED SERVICE LEVELS

Expected Service Levels

• Service Promises (ads, price)• Word-of-Mouth• Past Experience

Perceived Service Levels -Service Quality Dimensions

• Tangibles – Physical facilities, appearance of personnel, equipment

• Reliability – Ability to perform the service dependably, accurately, consistently

• Responsiveness – Willingness to provide prompt service to customers

• Assurance – Trust, knowledge, and courtesy of employees

• Empathy – Caring, individualized attention to customers

Quality of Goods Dimensions

• Performance• Features• Conformity to Specifications• Reliability• Durability• Serviceability• Aesthetic Design

Product Design - Aesthetics, Style and Function of the Product

RELATIONSHIP AMONG PRODUCT DESIGN, TECHNOLOGY, AND PRODUCT QUALITY

Technological Environment

Product Quality

Product Design

CHAPTER 9

MANAGING SPORTS PRODUCTS

New Sports Products From the Perspective of the

Organization• New-to-the-World Products• New Product Category Entries• Product Line Extensions• Product Improvements• Repositionings

New Sports Products From the Perspective of the

Consumer• Discontinuous Innovations• Dynamically Continuous Innovations• Continuous Innovations

New Product Development Process

• Idea generation• Screening• Business analysis/Concept testing• Development• Test marketing • Commercialization

New Product Screening Checklist

General Characteristics of New Product/Service

• Profit potential • Existing and potential competition• Size of overall market• Level of investment• Level of risk

New Product Screening ChecklistMarketing Characteristics of New Product/Service• Fit with marketing capabilities• Effect on existing products and services• Appeal to current consumer markets• Existence of differential advantage• Impact on image

Production Characteristics of New Product/Service• Fit with production capabilities• Ability to produce at competitive prices• Availability of labor and material resources

Total Industry Sales

Product Life CycleINTRO GROWTH MATURITY DECLINE

TIME

$$

Awareness

Differentiate

Maintain

Eliminate or Extend

Selected Product Life Cycle Patterns

Diffusion of Innovations – Rate at which new sports products spread throughout the marketplace

Factors influencing the rate of diffusion:

• New product characteristics• Perceived newness of the

innovation• Nature of the communication

network

Diffusion of Innovations

Types of Adopters• Innovators• Early Adopters• Early Majority• Late Majority• Laggards

Model of the Rate of Diffusion

CHAPTER 10

PROMOTION CONCEPTS

Promotional Concepts

• COMMUNICATION - Process of establishing a “oneness” between the sender and receiver

• PROMOTION MANAGEMENT - Focus on the promotional element of the marketing mix

Promotion Mix Elements

• Sales Promotions • Public or Community Relations• Sponsorship• Personal Selling• Advertising

Communications ProcessSource

Receiver

Decoding

Medium

Encoding

Message

Feedback Noise

Promotion Planning

• Target market considerations• Promotional objectives• Establishing promotional budgets• Choosing an integrated

promotional mix

Target Market Considerations

• Push strategy• Pull strategy

Promotional Objectives - The Hierarchy of Effects• Unawareness• Awareness• Knowledge• Liking• Preference• Conviction• Action

Promotional Budgets

• Arbitrary allocation• Competitive parity• Percentage of sales• Objective and task method

Integrating the Promotional Mix

• Integrated Marketing Communications - Concept by which a sports organization carefully integrates and coordinates its many promotional mix elements to deliver a unified message about the organization and its products.

CHAPTER 11

PROMOTION MIX ELEMENTS

Building An Advertising Strategy

MARKETING STRATEGY

AD OBJECTIVES

BUDGETING

CREATIVE DECISIONS

MEDIA STRATEGIES

AD EVALUATION

Ad Objectives(awareness, inform, change attitudes,

purchase)

• INDIRECT OBJECTIVES - ENHANCE CORPORATE IMAGE

• DIRECT OBJECTIVES - STIMULATE DEMAND FOR THE SPORTS PRODUCT

Ad Budgeting

• ALL YOU CAN AFFORD• COMPETITIVE PARITY• PERCENTAGE OF SALES• OBJECTIVE AND TASK

Creative Strategies

• IDENTIFYING THE BENEFITS OF THE SPORTS PRODUCT

• DESIGNING THE AD APPEAL• DEVELOPING THE AD EXECUTION

Designing The Ad Appeal

• Health Appeals• Emotional Appeals• Fear Appeals• Sex Appeals• Pleasure or Fun Appeals

Designing The Ad Execution

• One- or Two-Sided Messages• Comparative Message• Slice-of-Life or Lifestyle Message• Scientific Message• Testimonials

Media Strategy

• SPECIFY THE MEDIA OBJECTIVES (REACH, FREQUENCY, CONTINUITY)

• SELECTING THE MEDIA VEHICLES

Personal Selling: The Strategic Selling

Process• Buying Influences• Red Flags• Response Modes• Win-Results• The Sales Funnel• Ideal Customers

Sales Promotions

• Premiums• Contests and Sweepstakes• Sampling• Point-of-Purchase Displays• Coupons

Public Relations

• Publicity (news releases, press conferences)

• Participation in Community Events• Producing Written Materials (press

guides)• Lobbying

CHAPTER 12

SPONSORSHIP PROGRAMS

Sponsorship• Investing in a sports entity to support

overall organizational objectives and marketing goals

• IEG estimates in North America $11.19 billion spent on sponsorship and of this $7.69 billion will be spent on sports

• Not unlike other forms of communication, sponsors must fight the clutter and find the perfect match

The Sponsorship ProcessSponsorshipObjective

s

Sponsorship Budget

Sponsorship

Acquisition

Implementing and Evaluating the Sponsorship

Sponsorship Objectives

• Direct – Sales Increases

• Indirect– Awareness– Competition (ambush marketing—planned effort

to associate themselves with an event – I Love LA)– Reaching Target Markets (allows us to reach

consumers where they live and play)– Relationship Building– Image Building

Sponsorship Budgeting

• Sample costs of sponsorship– Corporate Box at the United Center $220,000– Title sponsor of Tot Trot $7500– Official Supplier for MLB $10 million– Premier League sponsor $15 million

• Initial costs, but there is maintenance and leveraging

Sponsorship Acquisition Model

Sponsorship Acquisition

• 1) Determine Scope of the Sponsorship (sports event pyramid with global, international, national, regional, and local events)

• 2) Determine the athletic platform (entity and level of competition)

Sponsorship Implementation and

Evaluation• Number of mentions in popular

media• Media equivalencies • Sales figures (pre and post)• Attitude change (pre and post)• Number of distributors (pre and post)

CHAPTER 13

DISTRIBUTION CONCEPTS

Distribution Concepts

• Ability of consumers to gain access to products in a timely and convenient fashion

• Moving product from producer to consumer via the various channels of distribution

Sports Distribution Issues

• Sports Retailing• Stadium as “Place”• Sports Media

Sports Retailing Mix

• Products• Pricing• Distribution• Promotion

Retail Image/Store Personality

• Factors include (in general):– atmospherics– location– employees/sales personnel– clientele– merchandise assortment– promotional activities

Stadium as “Place”

• New Sports Venues• Ticket Distribution Issues

Sports Media as Distribution

• Delivering the Sports Product to Consumers Via Media

• Rising Cost of Media Rights• Media as a Portion of the Revenue

Mix• New Trends in Sports Media

CHAPTER 14

PRICING CONCEPTS

Pricing Concepts

• Price is a Statement of Value• Value = Perceived Benefits

Price of Sports Product• Essence of pricing is the exchange

process - An attempt to quantify the value of what is being exchanged

Internal and External Determinants of Pricing

RELATIONSHIP OF PRICE TO SOME OTHER MARKETING MIX ELEMENTS

• Related to product life cycle• Communicates something about the

product• Promotion geared towards information

about price• Product lines with different prices attract

different segments of consumers

Estimating Consumer Demand

• Consumer Tastes• Availability of Substitute Sports

Products• Consumer Income

Price Elasticity of Demand

Consumer Pricing Evaluation Process

CHAPTER 15

PRICING STRATEGIES

Pricing Strategies

• Differential Pricing Strategies• New Sports Product Pricing

Strategies• Psychological Pricing Strategies• Product Mix Pricing Strategies• Cost-Based Pricing Strategies

Differential Pricing

• Second Market Discounting

New Sports Product Pricing

• Penetration Pricing• Price Skimming

Psychological Pricing

• Prestige Pricing• Referent Pricing• Odd-Even Pricing• Traditional Pricing

Product-Mix Pricing

• Bundle Pricing• Captive Pricing• Two-Part Pricing

Cost-Based Pricing

• Cost-Plus Pricing• Target Profit Pricing• Break-Even Pricing

Price Adjustments

• Price Reductions and Price Increases• Price Discounts

CHAPTER 16

IMPLEMENTING AND CONTROLLING THE STRATEGIC SPORTS

MARKETING PROCESS

Implementation Issues • Communications• Staffing and Skills• Coordination• Rewards• Information• Creativity• Budgeting

Implementation Phase

Strategic Control Issues

• Planning Assumptions Control• Process Control• Contingency Control

Planning Assumptions Control

• “Are the premises or assumptions used to develop this marketing plan still valid?”

• Examine the external environmental factors and the sports industry factors

Process Control

• Monitoring Strategic Thrusts• Milestone Review• Financial Analysis

Contingency Control

• “How can we protect our marketing strategy from unexpected events or crises that could affect our ability to pursue the chosen strategic direction?”

• Developing a Crisis Plan