Transcript Chapter 1

Chapter 14
Product Decisions
in Sports Marketing
McGraw-Hill/Irwin
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
14-1
Product
• 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 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 Concepts
• Augmented Product – Basic Benefit
• Ancillary Components – Additional Benefits
• Total Product – The Augmented Product
Combined with the Ancillary Components
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Product 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 Products
• Access to Spectator Sports
• Participation Sports
• Sporting Goods, Apparel, Athletic Shoes,
and Sports-Related Products (SASS)
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Spectator Sports
• Live Audience
• Media-Based Audience
– TV
– Radio
– Internet
– Mobile Technology
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Spectator Sports Product
• Product May Be Represented by:
– Access to an Event
– The Competition on the Field of Play
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Participation 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 Participation
• Personal Improvement
• Appreciation of the Sport
• Social Interaction
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SASS
• Sporting Goods – Spalding Basketball
• Apparel – Canterbury Rugby Shirt
• Athletic Shoes – Nike Air Jordans
• Sports-Related Products – Golf Lesson
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Selling 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 Core
Product 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 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
to 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
to the Core Product
• Should Have Positive Economic
Consequences
– Increased Attendance
– Larger Media-Based Audiences
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Guidelines for Changes
to 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
to 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
to 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
to 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
to 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 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 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
Increased 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
in 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
in the Participation Market
• Drop in Figure 14.3 Here
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SASS
• Sporting Goods
• Apparel
• Athletic Shoes
• Sports-Related Products
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Sporting 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 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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Apparel
• For Participation
• For Fashion
• New Styles and Designs for Different
Target Markets
• Updated Styles, Logos, and Colors
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Apparel
• 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 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)
• Part of Everyday Wardrobe Today
• Not Just for Athletic Endeavors
• More Emphasis on Styles, Fabrics, Colors
and Brands
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Sports-Related Products
(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 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 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 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
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