Transcript chapter - Human Kinetics

chapter
17
Coordinating and
Controlling the
Marketing Mix
Objectives
• To be able to compare and contrast the interaction
and impact of the five Ps on one another
• To understand how organizational structure, job
descriptions, and staff training affect organizational
control of the marketing function
• To understand the need for control in achieving
marketing effectiveness and to recognize some
standard benchmarks of marketing performance in
sport
Cross-Impacts Among the Five Ps
• Each element of the marketing mix can be
addressed individually.
• Yet clearly these elements have a
simultaneous cross-impact on the
consumer.
• This impact can be assessed with the use of
a cross-impact matrix (see figure 17.1).
Product and Price
• Impact of product and price is truly the impact of
price on product.
• Price
– is the most visible and most readily communicable variable of
the marketing mix.
– influences perceptions of quality and value.
– directly affects the product image.
• More often than not, consumers are balancing
product and price in their minds as they consider
purchasing a sport product.
The Cross-impact Matrix
Product and Place
• Sport consumers develop perceptions of
the place in which an event occurs, namely,
a facility image.
• Big-league products demand big-league
places.
Product and Promotion
• Products define appropriate formats and
media for promotions.
• Use the right promotional medium for the
right product.
• Product may be excellent, but not known if
not promoted or not promoted properly.
Product and Public Relations
• Public relations has an obvious effect on
product image and position.
• Sport marketers do not have control of what
the media’s message will be as they do with
advertising.
• Perceptions are difficult to change even
with proactive public relation strategies
(e.g., Nike).
Impact of Price and Place
There are two major impacts of price and place:
• Sport consumers expect to pay higher
prices for better facilities.
• Consumers tend to pay more for
convenience (which is a benefit).
Price and Promotion
• The price of a product dictates the media for
advertising the product.
– The price determines the profit margin on the
product, hence the promotional budget and in turn
the media choice.
– The price of a product reflects not only its nature and
cost but also the market to which the product is
targeted.
• In both cost-plus and market-based pricing,
the price reflects the target market's
demographics and its media choices.
Price and Public Relations
• Pricing strategies can have a strong effect
on public relations, for better or worse.
• Universities, teams, athletes, sport
products, and nonsport products tied to
sport all face the same challenges.
Place and Promotion
• The sport facility image is a strong one, and
it directly influences the product image.
• A sport marketer can promote a stadium as
the place to be. This is evident with high
attendance at new facilities.
• Promoting an old, dilapidated facility is an
uphill battle.
• A sport marketer can promote aspects of
the venue as well.
Place and Public Relations
• A new facility has implications for all the
other Ps. A new seat configuration requires
a rescaling of ticket prices, which must be
done with care for the overall franchise
image.
• Proactive public relations leading up to the
opening is an effective strategy to keep
publics informed and positive.
Promotion and Public Relations
• The impact of a favorable or unfavorable
public relations image cannot be
underestimated.
• The public relations image can totally
negate immense promotional efforts.
• Exercising good judgment and taste in
promotion will prevent negative public
relations.
Controlling the Marketing Function
A comprehensive marketing control plan can
• ensure the creation and delivery of products
that satisfy consumer wants and needs,
• nurture and preserve the credibility of the
image that consumers hold of both the
product and the organization, and
• set a clear direction for all units and
personnel.
Elements of an Effective Marketing
Control System
• Mission statements and objectives that have
been established in light of current market
position as compared with desired position
• An organizational structure that marshals
resources to meet objectives
• Employee performance standards and criteria
that logically link performance to objectives
• Methods to adjust strategy, structure, and
personnel in light of performance
Performance Measures for the
Marketing Units
• The number of favorable stories the public
relations staff should nurture in print or
electronic media
• Improved results in consumer satisfaction
surveys
• The amount of revenue to be generated
through various ticket packages, licensing
agreements, or television contracts
• Relative increases in television or radio ratings
compared to those of competitors (e.g.,
regional professional teams)
Screening Promotions Against
Objectives
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Is it fun?
Is it feasible?
Is it affordable?
Will it add to the fan experience?
Will it be a $2 bill (i.e., unwanted or
avoided)?
• Is the timing right?
• Is it suffering from the 8-ball syndrome
(dead in the corner)?
(continued)
Screening Promotions Against
Objectives (continued)
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Has the remainder of the staff approved?
Is it marketable?
Will we have to apologize tomorrow?
Will it promote the team or sponsor positively?
Will it pass the “family test”?
What will happen if we don't seize the moment?
And last of all, when in doubt, WWVD (what
would Veeck do?)