Transcript Chapter 17 - NMSU College of Business

Chapter 17
Distribution Decisions
in Sports Marketing
McGraw-Hill/Irwin
17-1
©2007 The McGraw-Hill Companies, All Rights Reserved
Distribution (Place)
• Distribution Is the Second Variable of the
Traditional Marketing Mix
• Represents Decisions Regarding the
Manner in Which Sports Products Are
Made Available to the Sports Consumer
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Spectator Sports
• Live Audience – Those Spectators in
Attendance at the Sports Venue
• Media-Based Audience – Those Who
Witness the Event Via Some Electronic
Medium
• Marketing Objective May Focus on Either
or Both of the Two Types of Audiences
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Spectator Sports –
Live Audience
• Venue Issues
– Where Shall Special Events be Staged?
– In Which Cities Should Teams be Located?
– Is a New Facility Needed
• Where Should the Community’s New Stadium Be?
• Single-Purpose or Multipurpose Facility?
• How Many Fans Should the Facility Seat?
– When Should the Event be Staged?
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Spectator Sports –
Live Audience
• Ticket Issues (Ticket Distribution Strategy)
– Traditional Box Office
– Phone Orders
– Authorized Ticket Retailers and Brokers
– Internet
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Spectator Sports –
Live Audience
• Unaffiliated Ticket Distribution
• Not Part of Marketer’s Own Strategy
– Unauthorized Resellers
• Scalpers Who Speculate
– Internet Agencies
• Bring Buyer & Seller Together (i.e. eBay)
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Spectator Sports –
Media-Based Audience
• Television
– Free-to-Air TV – Major Networks
– General Sports Networks – ESPN; SkySports
– Specific Sport Network – Golf Channel
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Spectator Sports –
Media-Based Audience
• Television (Continued)
– Sports Tier – NFL Sunday Ticket on DirecTV
– Team-Dedicated Networks – YES Network
– Pay-Per-View (PPV) – Boxing Match
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Spectator Sports –
Media-Based Audience
• Concerns About PPV
– Will Prime Events Move from Free-to-Air TV
to a PPV Format Exclusively?
• Super Bowl; Olympics; World Cup of Soccer
– Australia’s Antisiphoning Law
• Assures Free Availability of Key Events
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Spectator Sports –
Media-Based Audience
• Radio
– AM
– FM
– Satellite
• Sports Tiers
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Spectator Sports –
Media-Based Audience
• Internet
– Free-to-Air Radio Stations with Web Access
– Audio Streaming
– Video Streaming
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Spectator Sports –
Media-Based Audience
• Cellular Phones
– Emerging One-to-One Broadcast Medium
• Smart Watches
– Still a Novelty
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Market Development Strategies
• New Target Markets for a Spectator Sport
• New Demographic Group
– X Games New Emphasis on Female Segment
• New International Target Market
– Cricket in USA; Gridiron Football in China
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Market Development Strategies
• Global Competition
– Showcase Sport in New Locations
– NHL Players in Olympics
– World Baseball Classic
– NASCAR in Mexico
– NBA’s “Basketball Without Borders”
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Market Development Strategies
• Global Media
– World Cup of Soccer 2006 Shown Live on TV
in Many Markets
– Internet Streaming Makes Small or Emerging
Markets Accessible
– Satellite Radio
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Participation Sports
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SASS
• Sporting Goods, Apparel, Athletic Shoes,
and Sports-Related Products
• General Retailing Principles Provide the
Framework for the Distribution of SASS
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SASS
• Key Question Concerns the Scope of
Distribution in a Given Geographic Area
– Intensive Distribution
– Selective Distribution
– Exclusive Distribution
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SASS
• Role of Nonstore Retailing
• Direct Response Marketing (DRM)
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Sports-Related Products
• Sold at the Venue
– Optimal Number of Service Outlets
– Service in Seating Area
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Closing Capsule
• “If you build it, he will come”
• That Popular Line from the Movie “Field of
Dreams” Does not Truly Explain Most
Sports Marketing Efforts
• An Effective System Must be Implemented
in an Effort to Reach Each Target Market
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Closing Capsule
• Spectator Sports
• Live Audience
– Venue Issues (i.e. Capacity)
– Ticket Issues (i.e. Use of Internet)
• Media-Based Audience
– A Broad Array of Options
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Closing Capsule
• Market Development for Spectator Sports
• Effort to Grow the Market by Reaching
New Target Markets
• Live and Media-Based Efforts
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Closing Capsule
• Participation Sports
– Different Types of Facilities
– Marketers Need to Balance Supply & Demand
• SASS
– Driven by General Retailing Principles
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