Transcript Information From MIS

MKTG 4320
Sport Marketing
STP, Research, Pricing
Product Development
How do sport marketers help sport product
succeed economically?
Strategic Differentiation:
Segmentation
Targeting
Positioning
Market Segmentation
Divides a heterogeneous group into smaller
homogenous segments
Groups have similar wants and similar
responses
Ex.: The “women’s market”
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What do you do when you are:
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NASCAR
NFL team
NHL team
MLS team
NASCAR
Number of titles: 21. Currently in
print: 1 million
Allstate "Girls Day Out II"
NFL
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Football 101
Raven’s “Club Purple”
Other Initiatives:
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MLB: Mother’s Day community outreach with
Charity Component (e.g., Fight Breast
Cancer).
MLS: Put features of their players in women’s
magazine (education about players and
game). Team level efforts include ads
targeting “moms”.
NHL with Reebok launch line of women’s
apparel.
Product Position
How the product is positioned in consumers’
minds
Why do sport marketers care about
product’s position on product-space map?
Where do sport consumers see you, based
on important attributes?
Positioning for Media, Sponsors,
Spectators: The US Open Series
The Role of
Research in
Sport Marketing
You need to:
Appreciate marketing information system
Understand research methods
Recognize available internal and external data
sources
Marketing Research
Basic data are essential to good decision making
Key is ongoing and systematic research
Challenge is taking data collected, analyzing it,
and making sense of it
A marketing information system (MIS) is integral
Marketing Information System
(MIS)
Can range from index cards to a fully integrated
database
Complexity depends on:
Size, geographic dispersion of market
Availability of data
Budget
Organization leadership
Information From MIS
What question should sport marketers ask?
Why?
Who consumes our product?
Who decides on the purchase?
Who consumes our competitors’ products?
What products compete with ours?
What products complement ours?
What are the key benefits sought by consumers?
When do consumers buy?
How do consumers consume our product?
Information From MIS
General Market Data
Size of market
Market demographics
Purchase behaviors
Spectatorship or participation level
Future trends
Information From MIS
Individual Consumer Data
Contact names and numbers of all consumers
Product usage behavior (e.g., frequency)
Method of payment
Market’s chosen media
Pattern of consumption
Information From MIS
Competitor Data
Competitor
An organization offering similar products
Usually located within 30-minute drive
Visit competitors to gather data
Hire “mystery shoppers”
Data Sources for MIS
Internal—within-organization information
External—information from outside the
organization
Internal MIS Data Sources
Sales records
Inquiries
Communications of praise/complaint
External MIS Data Sources
Secondary Sources
Census reports
State agencies
Public libraries
Chambers of commerce
Trade associations
Professional research services
Trade and scholarly press
External MIS Data Sources
Primary Sources
Importance of primary research
Communicate with target market
Initiate data-based marketing efforts
Types of Primary Market Research
in Sport
Observation
Focus groups
Personal interviews
Panels of experts
Mystery shoppers
Surveys and questionnaires
On-site, mail, telephone, computerized, Internet
Team work: What do you do with a
customer database?
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You were just hired as assistant marketing
director for the Toronto Argonauts. During the
first meeting you impress your boss by saying
that what you guys need is to enter the 21st
century with a sleek customer database. Your
boss asks:
What information do you want in there?
What will you do with it?
Pricing
Strategies
The Basics of Pricing
What needs to be priced?
Tickets
Memberships
Signage
Apparel
Concessions
Price according to location, image, and time
(why time?).
The Basics of Pricing
Easily changed
Effective with elastic demand
Highly visible
Important to consumers
Core Issues
Cost From Consumer’s Perspective
Fan Cost Index (FCI)
Fan Cost Index (FCI)
Reported annually
Includes all price elements for professional event
4 average-priced tickets
2 beers (small)
4 sodas (small)
4 hot dogs
2 game programs
2 game caps
Parking
Example: NHL
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“The Toronto Maple Leafs have the most
expensive tickets at $76.15 (USD)* and the
priciest FCI at $411.30. The Montreal
Canadiens are second in both categories at
$64.26 and $361.25, respectively. Fellow
Original Six teams, the Boston Bruins and
New York Rangers, are third and fourth in FCI
rankings at $352.60 and $348.84.”
Team Marketing Report 2009
Value and Price
High price not necessarily detrimental
Price often associated with perceived quality
Product value includes more than winning:
convenience, aesthetics, cleanliness,
availability, durability
Standard Approaches to Pricing
Production costs
Market conditions (supply and demand)
Competitor’s price
Product and event frequency
What the Market Will Bear
If hunches are wrong, results can be costly
What could be the result of an incorrect
decision?
Can you give an example?
Special Pricing Factors
to Consider
User Segmentation
Pricing based on user group
Corporate season-ticket holder
Single-ticket purchasers
Special groups
Student packages
Unbundling
Would any particular group be more
sensitive to price change? Why?
Special Pricing Factors
to Consider
Time and Place Smoothing
Time—bundled packages
Prime vs. non-prime time
Price scales in venue
Key factors—proximity, line of sight, and
demand
Note the Escalator!
Price hikes threaten to push consumers off
escalator
Emphasize other features of the product