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1 The Product Is Sports and Entertainment 7.1 The Product Mix 7.2 Recruiting Athletes & Entertainers 7.3 Customized Entertainment 7.4 Product Marketing Strategies Chapter 7
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The Product Is Sports and Entertainment
7.1 The Product Mix 7.2 Recruiting Athletes &
Entertainers 7.3 Customized Entertainment
7.4 Product Marketing Strategies
Chapter 7
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Introduction Product Mix in Sports Marketing
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Winning Strategies
Brad Pitt has used his fame to draw attention to those in need.– children with AIDS in Africa– the plight of Haitian children– global poverty conditions– helped sponsor architectural competition
to rebuild part of New Orleans
Fame and Fortune Used to Benefit Those in Real Need
Lesson 7.1
The Product Mix Goals Define product mix, product
extension, and product enhancement.
List and describe the components of the product mix.
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WHAT IS A PRODUCT MIX?
tangible parts– physical features that can be seen and
felt– i.e. Soft Red Blanket
intangible parts– nonphysical service features– i.e. Pedicure
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Tangible & Intangible The sport product is a complex package
of the tangible and intangible as well as the experience.
E.g. GOLF Tangible Elements of the Golf Product:
1. Little dimpled balls2. Oversized ‘metal’ woods that are in
different ways, standardized Intangible Elements
1. Golf club membership
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Product Mix– the total assorted features associated with the
product product line - various products offered under the
brand product packaging brand name
Product Extensions– items added to a product to make it more
attractive to the target market guarantees warranties instructional CDs
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The marketer has little control over the core product, and consequently must focus efforts on product extensions.
E.g. Real Madrid of Spain’s La Liga fashioned a strategy that leveraged the core product (soccer games) to generate product extensions. The team broke world “transfer” (purchase price) records in buying the contracts of star players (e.g. Beckham). Although Real Madrid was confident that it was going to win games, it was more confident that it would expand its global sales of merchandise and sponsorships. Even though the stars stumbled (failing to win a major trophy in 2004), strategy worked.
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Basic vs. Enhanced Product product enhancements
– features added to the basic product that satisfy additional needs and wants with the same purchase
– add value to the product and may increase the purchase price
– It is important to give customers options so that products can be matched to their budgets and individual needs.
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Basic: Automobile Enhancements: Heated Leather Seats,
Sun Roof, Bose Sound System, Upgraded Engine
Basic: Athletic Shoe Enhancements: Air-cushioned Soles, Lightweight
Fabric
Basic: Stadium Seating Enhancements: Air-conditioned Suites
Provide three examples of a product enhancement.
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PRODUCT MIX COMPONENTS
In an attempt to satisfy customers, marketers must make many decisions about their product and Product mix.
Product Mix– the total assorted features associated with the
product product line product packaging brand name
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#1 ~ Product Line product line
– a group of similar products with slight variations to satisfy the different needs of consumers
– Coca-Cola (Soft Drink Product Line) Classic, Diet, Caffeine-Free, Cherry, Coke
Zero, etc. Variations in sizes Variations in packaging
See Book Page 174 for further examples.
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#2 ~ Packaging Product packaging components to
consider include– ease of use– safety– accessibility– environmentally friendly
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Why are the shoes yellow and black?
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#3 ~ Brand
brand– the name, symbol, word, design, or combination
of these elements that identifies a product, service, or company
– represents the company’s reputation of quality, reliability, and status in the marketplace
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#3 ~ Brand trademark
– the legal protection of words and symbols used by a company
– makes it illegal for other companies to use the brand name.
licensed brand– a well-known name and/or symbol
established by one company and sold for use by another company
– Disney: sells licenses to use their characters on toys and clothing. They then receive a % of the sales from the merchandise bearing their name.
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5 stages of brand recognition
non-recognition
unable to identify brand- consumers don’t know or trust the brand yet
rejection will not purchase that brand- poor quality, recalls for safety, too pricey
recognition know brand, but has little influence
preferencebrand is valuable to consumer- will purchase brand if readily available but may purchase another brand if it is not.
insistencemust have this brand- rejects all other even if their preferred is not available
Page 175
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Brand Recognition
GOOGLEGoogle has successfully made its brand, a household name. If you want to search for something on the internet, instead of saying, “Search it”, we now say, “Google it”.
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Product Mix: – total assorted features associated w/ the
productproduct lineproduct packagingbrand name
What are the components of the product mix?
Lesson 7.2
Recruiting Athletes and Entertainers
Goals Define the bottom line for sports. Explain the high cost of sports and
entertainment events.
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THE BOTTOM LINE FOR SPORTS
blue-chip athletes– excellent athletes– demonstrate good character and
leadership qualities on and off the field
The bottom line for sports is winning.
The bottom line for business is profit.
Winning teams generate profit.
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NCAA Regulations
NCAA– National Collegiate Athletic Association– a voluntary organization through which the
nation’s colleges /universities govern their athletic programs
– Over 1,250 institutions, conferences, organizations
– Committed to the best interests, education & athletic participation of the student athletes
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NCAA Regulations Recruitment Violations:
– paying recruits bribes, – giving incentives recruit families, – altering transcripts
NCAA Punishments:– Limiting scholarships offered– prohibiting post-season play– suspending players – forfeiting games– and even shutting down entire programs.
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Compensation for Athletes? Athletes receive scholarships and
grants for their college education.
After signing with an agent, a college athlete can no longer participate in college sports.
In some states, proposals have been brought to the legislature to pay college athletes.
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The bottom line for sports is winning.
The bottom line for business is profit.
Winning teams generate profit.
What is the bottom line for sports and how is it related to the bottom line for business?
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THE COST OF SUCCESS Success requires
– skilled coaches– top-notch players– popular entertainers
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Attracting and Keeping Coaches
The best coaches can command annual salaries in excess of $1 million.– Success = large bonuses, salary
increases, etc.
fringe benefits– incentives received in addition to base
salary~ Medical Insurance ~ Endorsements~ Company Cars ~ Radio Shows~ Paid Travel ~ Extra Income Opps
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Attracting and Keeping Star Athletes
Competition for top athletes is fierce. Recruiters compete w/ professional & college
teams.
Recruiters need a well refined sales and marketing effort to attract talent to their schools. (Personal Selling, Financing, & Marketing Info Management)
Convincing while upholding honesty & integrity.
Economic Concept– Supply for Top Athletes Limited– Demand for them is High.
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Getting a Top Athlete for NY Jets
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The Price for Top Musicians and Other Entertainers
Popular performers can attract large enough crowds to make an event profitable.
Requires legal contracts and large budgets.
Popular celebrities help increase the advertising revenue of their TV shows.
Requires larger salaries for more popular stars
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Marketing Women’s Sports
Women’s sports are seriously neglected
U.S. Women’s Soccer Team won the World Cup in 1991 and barely made the news.
They received more exposure in 1999 due to their continued success since 1991.
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Why do Women’s Sports Get Less Attention?
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Marketing Women’s Sports
Relative to male counterparts, women athletes receive far less pay.
More money and exposure of the male sports means more fans. Fan support = profit.
Creative marketers may develop new products to appeal to females who are relatively new sports fans.
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Why is it important for young, talented, and highly sought-after athletes to hire trustworthy agents to represent them?
Unscrupulous (crooked) agents and recruiters may take unfair advantage of poorly informed athletes. They need trustworthy agents who will look out for their best interests and negotiate a fair deal.
Lesson 7.3
Customized Entertainment
Goals Define customizing. Describe the financial impact of Baby
Boomers on the entertainment industry.
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CUSTOMIZING PRODUCTS
customizing– changing a product to fit the needs or
wants of a particular market
impromptu – spontaneous and changing– Example: comedian altering their act
based on audience reaction and participation
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Local TV American Style Product planning for the majority of
national network TV shows take place in L.A.– Expensive and require large audiences to
attract advertisers to cover the production costs.
Local programming is less expensive to produce, but has fallen out of favor with major networks.– Does not attract enough viewers to
draw in advertisers.
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– Used to be produced locally and developed specifically for the children in that area.
– Had large impact on children, so parents requested that hosts not endorse products.
– So, advertisers lost interest in sponsoring locally produced children’s shows.
Children’s Programming
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– Sports broadcasted local until Cable changed the distribution system drastically. National Broadcast, Pay-Per-Views, etc.
– Excessive salaries of sports figures have helped drive up the costs of television coverage of sporting events.
tiering– specific sports programs will be offered
outside the basic cable or satellite package
– consumers choose their level of service/channels
Sports Programming
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Public TV and Radio Public TV and Radio are viewer- and
listener-supported.
– Mission: entertain and educate audience– Usually non-profits financed through
grants, corporate donations and listener contributions
– programming is tailored to local audiences– know their audiences & work to please
them
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Why is different TV programming shown in different cities or regions of the United States?
– Programming is customized for the audience.– San Fran Giants (West) vs. Boston Red Sox
(East)– 49ers (West) vs. Eagles (East)
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Who are the Baby Boomers?• Baby boomers are a huge group of Americans who have
affected the nation’s social, political, and economic life from the day they were born. • The birthrate in this country jumped after World War II and
stayed high up until the mid-1960s, directly related to both the hordes of soldiers, sailors, and marines returning from their service in World War II, and a booming economy that encouraged family-making and children. • The result was a very large number of children born between
1946 and 1964 who have had an impact on society at each stage of their lives. Now, as boomers have reached at least the 50-year mark and as the oldest have moved past age 65, boomers will continue to have a dramatic effect on many aspects of American life in the years to come.
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MARKETING TO BABY BOOMERS
Baby Boomers, born between 1946 and 1964, are one of the best-known market segments. (over 76 million)
What are they buying???– 1946: Baby Formula and Clothing– 2012: Leisure/Retirement activities
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Boomers Won’t Retire Baby Boomers are softening the line
between career and retirement
– Many will work beyond retirement age– Enjoy recreational activities and
entertainment– And have the discretionary income to pay
for the products and services they desire.
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Segmenting the Group The U.S. population is aging. Marketers will need to focus their
efforts on this aging market. Customer preferences Spending habits Incomes Occupations Area of residence
Census ~ Average Age
1994 – 342000 – 35.52035 – 39.1
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Entertaining the Boomers Baby Boomers are finding more time
to “Go Out” & increased their movie attendance.– Reel Source – attendance tracker
company– Baby Boomers = 1/3 of movie
attendance
– Movie Producers noticed! Filling niche for Baby Boomers’ tastes Use actors in their age range to increase
popularity
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Understanding All Parts of the Group
Through 2002, Baby Boomers will continue to be a major target of entertainment marketing.
As the Boomer group is so large, marketing messages need to be developed for specific subgroups of Boomers.
Fine-tuned for each age group HUGE potential customer base
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Why are Baby Boomers important to entertainment marketers?
– Baby Boomers are important because there are so many of them and they have a large amount of disposable income to spend.
Lesson 7.4
Product Marketing Strategies Goals List and describe the stages of the
product life cycle. Explain how products are
positioned in the marketplace.
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THE PRODUCT LIFE CYCLE product life cycle (Described over next 4
slides…) introduction growth maturity decline
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Introduction Stage– product is a novelty, only one of it’s kind– only one brand of product is available
skimming price strategy– introduces new products at a very high
price quality & uniqueness justify high price higher profits encourages more competition
penetration price strategy– uses low pricing to help capture a large
market share early Establish a customer base Lower prices discourage the competition
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Growth Stage Sales of a product and profits increase
Target market knows of and purchases the product regularly
Advertising focuses on customer satisfaction
Competition increases (alternate products)
Products modified/improved to maintain customer loyal
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The Maturity Stage Sales are level or slowing down
Target market already purchased product
Marketing costs increase, more promotions due to more competition
Commercials mention/mimic competitors
Sale prices offered to hold off competition
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The Decline Stage(Pages 190-191)
sales decrease may no longer generate enough
revenue to justify marketing costs
alternatives include:– drop a product– sell/license– discount
– regionalize– modernize/alter– recommit
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Decline Stage Options– drop product: cut company losses, cut
completely
– sell/license:minimize losses, sell or license to another
company
– discount: reduce prices to sell remains faster
– regionalize: commit to geographical location where
product is most popular and profitable
– modernize/alter: “NEW” and/or “Improved”
– recommit: a new purpose found for the product
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What are the stages of the product life cycle?
IntroductionGrowthMaturityDecline
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Product Life Cycle Examples
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POSITIONING A PRODUCT positioning
– used by a company to differentiate its products or services from its competitors’ products or services status, price, brand recognition & other
factors
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POSITIONING A PRODUCT Positioning Example
– Honda: safe family car Commercial focuses on family use, safety
awards
– BMW: luxury sports car Commercial focuses on looking fast,
expensive
–Both provide means of transportation.–Both positioned very differently
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–Status–Price–Brand
recognition
–Quality–Features –Benefits
List three ways a product may be positioned in the marketplace.
