Date post: | 30-Dec-2015 |
Category: |
Documents |
Upload: | emil-harper |
View: | 225 times |
Download: | 1 times |
The Consumer and Sports ProductsThe Consumer and Sports Products
Economic Impact of Sports MarketingEconomic Impact of Sports Marketing
2
Section 4.1 – The Consumer and Section 4.1 – The Consumer and Sports Products - ObjectivesSports Products - Objectives
Define the sports consumerExplain market segmentationIdentify sports productsExplain the differences between sports goods and servicesDifferentiate between the product line and product mix
3
Section 4.1 – The Consumer Section 4.1 – The Consumer and Sports Productsand Sports Products
The Sports ConsumerThe Sports ConsumerSports Consumers are the target of sports marketing, because the consumer makes purchases and helps sports organizations make a profit– 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
A purchase by a sports consumer shows support in a product and encourages growth of the productThe job of sports marketing personnel is to plan marketing strategies which encourage the sports consumer to act as a customer and purchase tickets or merchandise 4
Section 4.1 – The Consumer Section 4.1 – The Consumer and Sports Productsand Sports Products
Consumer DecisionsConsumer DecisionsThe two categories that affect the sports consumer’s decision to
spend money on or participate in sports are:
Sports marketers must consider a combination of these factors to make effective decisions about marketing plans 5
Environmental factors:– Family, friends– Society’s attitudes and
values– Cultural differences– Climate and region– Marketing influences
Individual factors:– Self-concept or self-image– Physical characteristics– Learned characteristics– Motivation and attitude
Section 4.1 – The Consumer Section 4.1 – The Consumer and Sports Productsand Sports Products
Sports Consumers and Market SegmentationSports Consumers and Market SegmentationUnderstanding market segmentation of the sports consumer market is important in order to sell products and services– Market Segmentation is a way of analyzing a market by
specific characteristics to create a target market– Characteristics include:
• Geographics – where consumers live• Demographics – personal characteristics• Psychographics - easy to change characteristics (attitudes &
opinions)• Product Benefits – consumers’ behaviors, needs, and wants
– Constantly shifting based on consumer interests 6
Section 4.1 – The Consumer Section 4.1 – The Consumer and Sports Productsand Sports Products
Sports ProductsSports ProductsSports products provide the consumer with satisfaction, entertainment, sociability, and achievement– Sports Products are goods, services, ideas, or
a combination of those things related to sports that provide satisfaction to the consumer
– Sports products can also be athletes
People who share in the process of marketing sports products include owners, sponsors, communication firms, city governments, taxpayers, and consumers 7
Section 4.1 – The Consumer Section 4.1 – The Consumer and Sports Productsand Sports Products
Types of Sports ProductsTypes of Sports ProductsThe following sports products can be classified as goods or services, or both:– Sporting event – core product of sports. Include athletes and
arenas where the events take place.– Sports information – News, statistics, schedules, and stories. Can
be any form of media– Sports training – service such as instructions that is provided
through fitness centers, sport camps, and lessons– Sporting goods – Wide range of products. Equipment, licensed
merchandise, collectibles, apparel, accessories, etc.
8
Section 4.1 – The Consumer Section 4.1 – The Consumer and Sports Productsand Sports Products
Types of Sports ProductsTypes of Sports Products – cont. – cont.Difference between goods and services regarding planning and implementing the sports marketing process– Services, like events, are produced and consumed simultaneously and
has no formal channel of distribution– Tangible goods must be produced by a manufacturer and sent to a
retailer to sell to customer. This channel of distribution requires careful planning and managing
– Tangible products are physical goods that offer benefits to the consumer
– Consumers purchase these products at stores or retail outlets– Goods purchased at a sporting event can also include the service of
selling the product
Section 4.1 – The Consumer Section 4.1 – The Consumer and Sports Productsand Sports Products
Quality of GoodsQuality of GoodsTwo basic questions to ask about characteristics of goods, when judging the quality of manufactured products:– Does the product conform to design specifications in the
manufacturing process?– How well does the product perform it function in the opinion of
the consumers, or end users, of the goods?
Consumer’s opinion or perception about the quality of the products is most important to marketing professionalsOrganizations attempt to increase quality without significantly raising prices so as not to lose customers
Section 4.1 – The Consumer Section 4.1 – The Consumer and Sports Productsand Sports Products
Sports ServicesSports ServicesIn contrast with sports products, sports services are intangible products– Intangible products are nonphysical services, such as tennis
lessons, personal training, and sports camps– May include the experience of attending a sporting event,
while stadiums(teams) advertise to sell their tangible appeal
11
Section 4.1 – The Consumer Section 4.1 – The Consumer and Sports Productsand Sports Products
Organizations try identify characteristics of service quality to help market their services1980s researchers Parasuraman, Zeithaml, and Barry identified ten demensions of service quality called SERVQUAL:– tangibles, reliability,
responsiveness, competence, courtesy, credibility, security, access, communication, and understanding the customer
Researchers McDonald, Sutton, and Milne created TEAMQUAL service quality dimensions:– Reliability – perform promised
services dependably and accurately– Assurance – employees knowledge
and courtesy– Empathy – caring, individual
attention paid to pro sports customers
– Responsiveness – willingness to help customers and provide prompt service
– Tangibles - appearance
Quality of ServiceQuality of Service
Section 4.1 – The Consumer Section 4.1 – The Consumer and Sports Productsand Sports Products
Sports Product ClassificationsSports Product ClassificationsSports businesses or organizations that offer a variety of products classify their products by product line and product mix– Product line is a group of closely related products manufactured
and/or sold by a company• Satisfy a class of needs and may be used together, sold to same
customer group, sold through same type of outlets, or have same price range (ex. Nike DryFit product line)
– Product mix is the total assortment of products that a company makes and/or sells
• Companies can either specialize in one specific product mix or have a very broad product mix (ex. Wilson Sporting Goods)
13
Section 4.1 – The Consumer Section 4.1 – The Consumer and Sports Productsand Sports Products
Sports Products and Product ExtensionsSports Products and Product ExtensionsSports products differ from typical consumer products because sports products have the ability to generate a greater variety of product extensions– Allows money to be made from products surrounding main
eventSports goods and services have the potential to generate income and affect the economy with one or more related products– All become the focus of marketing activities for businesses,
organizations, and consumers.14
Section 4.2 – Economic Impact of Section 4.2 – Economic Impact of Sports Marketing - ObjectivesSports Marketing - Objectives
Explain the economic impact of sports marketing Define opportunity costIdentify the impact of grassroots marketing on sports marketing
15
Section 4.2 – Economic Section 4.2 – Economic Impact of Sports MarketingImpact of Sports Marketing
Economic EffectsEconomic EffectsFrom the moment the consumer inquires about a ticket to a sporting event, there is an impact on the economyThe local economy improves as a result of money spent at sporting events
16
Section 4.2 – Economic Section 4.2 – Economic Impact of Sports MarketingImpact of Sports Marketing
Economic EffectsEconomic Effects – cont. – cont.Each decision made at a sporting event keeps people involved in the event employed in jobs at venue– Employed individuals participate in paying taxes– Tax dollars are spent for roads, new construction, public transportation,
and police
Each decision the consumer makes involves an opportunity cost– Opportunity Cost is the loss of the opportunity that is passed up in
order to receive something in exchange– Affect sports marketing because it impacts how consumers decides to
spend his or her discretionary income17
Section 4.2 – Economic Section 4.2 – Economic Impact of Sports MarketingImpact of Sports Marketing
Economic EffectsEconomic Effects – cont. – cont.Satisfied customers will have a continuous impact on not only the growth of the team, but also on the local economyAs the economy grows, the more infrastructure is needed to support the athletic event– Infrastructure is 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
• Power and Water Supplies, Public Transportation, Telecommunications, Roads, Schools
Entire process of economic growth leading to infrastructure changes, contributes to the economy
18
SportingEvent
$$
$
$
$
$
$
$
Economic Impact of Sports
19
SportingEvent
TicketAgent
ParkingGarage
Food andMerchandise
Sanitation
The Internet
Taxes
Infrastructure
City Pride
Section 4.2 – Economic Section 4.2 – Economic Impact of Sports MarketingImpact of Sports Marketing
The Sunshine State Case Study Orlando, Florida, is the home of an NBA sports franchise called
the Orlando Magic– Sports franchise is an agreement or contract for a sports organization
to sell a parent company’s (i.e., a national sports league) good or service within a given area
By selling Orlando Magic T-shirts, caps, and other items, investors were able to convince residents to make $100 deposits on season-ticket reservations
20
Section 4.2 – Economic Section 4.2 – Economic Impact of Sports MarketingImpact of Sports Marketing
Grass Marketing EffortsGrass Marketing EffortsTo gain support from within their community, many teams get heavily involved in grassroots marketing– Grassroots marketing is marketing activities on a local
community level• Example – Helping and assisting the community with charity
and fund-raising events– Helps build a relationship between the community and the team– A positive relationship between the community and the team can
help the economy of an area– Economic success promoted by sports marketing for events and
products on a local level extend to regional or national levels21