The Consumer and Sports Products

2. The Consumer and Sports Products Economic Impact of Sports Marketing 2

3. Chapter Objectives • Define the sports consumer. • Explain market segmentation. • Identify sports products. • Explain the differences between sports goods and services. • Differentiate between the product line and product mix. • Explain the economic impact of sports marketing. 3

4. The Sports Consumer A purchase by the sports consumer, as a customer, is a decision of approval in an extremely competitive market. sports consumera person who may play, officiate, watch, or listen to sports, or read, use, purchase, predict, and/or collect items related to sports 4

5. The Sports Consumer The two categories that affect the sports consumer’s decision to spend money on or participate in sports are: • Environmental factors • Family, friends • Society’s attitudes and values • Cultural differences • Climate and region • Marketing influences • Individual factors • Self-concept or self-image • Physical characteristics • Learned characteristics • Motivation and attitude 5

6. Constantly shifting Sports Consumers and Market Segmentation Understanding market segmentationof the sports consumer market is important in order to sell products and services. market segmentationa way of analyzing a market by specific characteristics to create a target market (Start video at 2:15) • Geographics • Demographics • Psychographics • Product benefits 6

7. Sports Products Sports products provide the consumer with satisfaction, entertainment, sociability, and achievement. sports productsthe goods, services, ideas, or a combination of those things related to sports that provide satisfaction to a consumer People who share in the process of marketing sports products include owners, sponsors, communication firms, city governments, taxpayers, and consumers. 7

8. Types of Sports Products The following sports products can be classified as goods or services, or both: tangible productsphysical goods that offer benefits to the consumer Figure 4.1 • Sporting events • Sports information • Sports training • Sporting goods • Tangible products =touch 8

9. Types of Sports Products In contrast with sports products, sports services are intangible products. intangible productsnon-physical services such as tennis lessons, personal training, and sports camp • Ten areas of service quality are: • Tangibles • Reliability • Responsiveness • Competence • Courtesy • Credibility • Security • Access • Communication • Understanding 9

10. Types of Sports Products Sports businesses or organizations that offer a variety of products classify their products by product line and product mix. product linea group of closely related products manufactured and/or sold by a company product mixthe total assortment of products that a company makes and/or sells 10

11. Sports Products and Product Extensions Sports products differ from typical consumer products because sports products have the ability to generate a greater variety of product extensions. Super Bowl- Game is the core product Product extensions can include: programs, collectibles, videos, apparel, related TV programs, statistics and highlights, etc 11

12. What are four characteristics needed to analyze the market segmentation of sports consumers? How is a purchase by the sports consumer similar to a vote? Define product mix. 1. 2. 3. 12

13. Economic Effects From the moment the consumer inquires about a ticket to a sporting event, there is an impact on the economy. The local economy improves as a result of money spent at sporting events. Byron Nelson New Sports Franchises 13

14. Economic Effects Each decision the consumer makes involves an opportunity cost. opportunity costthe loss of the opportunity that is passed up in order to receive something in exchange infrastructurethe physical development of an area, including the major public systems, services, and facilities of a country or region needed to make a location function As the economy grows, then more infrastructureis needed to support an athletic event. 14

15. $ $ $ $ $ $ $ $ Economic Impact of Sports Ticket Agent Sporting Event ParkingGarage City Pride Sporting Event Food and Merchandise Infrastructure Sanitation Taxes The Internet 15

16. “The Sunshine State” Orlando, Florida, is the home of an NBA sportsfranchise called the Orlando Magic. sports franchisean agreement or contract for a sports organization to sell a parent company’s (i.e., a national sports league) good or service within a given area By selling Orlando Magic T-shirts, caps, and other items, investors were able to convince residents to make $100 deposits on season-ticket reservations. 16

17. Economic and Marketing Challenges • The economic and marketing challenges of the Women’s National Basketball Association are different than those of the NBA. • Media perception and target markets of the WNBA is different, • Teams must use different marketing activities and sponsors. 17

18. Grassroots Marketing Efforts To gain support, teams such as the Sparks are heavily involved in grassroots marketing. grassroots marketingmarketing activity on a local community level 18

19. By 2001, WNBA games had been seen by 60 million fans in 167 countries. Fostering this global audience, the WNBA.com Web site provides many services for its followers: draft notices, player information, news, statistics, standings, game schedules, highlights, a virtual box office, fantasy games, and even an e-tail store. For more information on sports and entertainment marketing, go to marketingseries.glencoe.com. Got Game—and More The Women’s National Basketball Association has come a long way in a few years since April 1996 when it was first formed. Operating an e-tail business on an electronic channel—the Web—can be costly, due to design, delivery, returns, and operating expenses. Though Many larger dot-com companies crashed in the 1990’s, small stores like Harris Cyclery of West Newton, Massachusetts, actually increase sales using a basic Web site. Today, a third of Harris’s bicycle business rides in on the Web to get hard-to-find parts and personal service. Describe an e-business’s home page to your class after viewing one through marketingseries.glencoe.com. 19

20. What is opportunity cost? Give an example. List six functions of an infrastructure of a community. Why is grassroots marketing an important part of sports marketing? 1. 2. 3. 20

21. 1. 2. A sports consumer is a person who may play, officiate, watch, or listen to sports, or read, use, purchase and/or collect items related to sports. The sports consumer is the target of the sports marketer because the consumer as a customer makes purchases. geographics, demographics, psychographics, and product benefits Checking Concepts 1. Describe how a marketer views a sports consumer. 2. Name the four characteristics that need to be considered when analyzing the market segment of sports consumers. continued 21

22. 3. 4. 5. Targeting the appropriate market maximizes sales; also, it will ultimately benefit the consumer, the athlete, the team, the owner, and the local economy. The good, service, idea, or combination of those things related to sports that provides satisfaction to a consumer. In sports, services are produced by the players and consumed by the spectators simultaneously; there is no formal channel of distribution. Tangible goods must be produced by a manufacturer and sent to a retailer to sell to the consumer. Checking Concepts 3. Describe what happens when the correct sport consumer is targeted by a sports-marketing plan. Identify the sports product. 4. Explain how sports goods and sports services differ. 5. continued 22

23. 6. 7. 8. A product line is a group of closely related products manufactured and/or sold by a company, while a product mix is the total assortment of products that a sports organization makes and/or sells. It is marketing activity on a local community level. The five dimensions of quality include: reliability—perform promised services; assurance—knowledge and courtesy of employees and their ability to convey trust and confidence; empathy—caring, individualized attention for customers; responsiveness—willingness to help customers and provide prompt service; and tangibles—appearance of equipment, materials, and venue. Checking Concepts 6. Explain five dimensions of service quality and how they apply to a sports team. Compare a product line and product mix. 7. Define grassroots marketing. Critical Thinking 8. 23

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