Transcription
The Consumer and Sports ProductsEconomic Impact of Sports Marketing2
Chapter ObjectivesDefine the sports consumer.Explain market segmentation.Identify sports products.Explain the differences between sports goodsand services.Differentiate between the product line andproduct mix.Explain the economic impact of sportsmarketing.3
The Sports ConsumerA purchase by the sportsconsumer, as a customer,is like a vote because thepurchase equals a decisionof approval.sports consumer aperson who may play,officiate, watch, or listento sports, or read, use,purchase, predict,and/or collect itemsrelated to sports4
The Sports ConsumerThe two categories that affect the sportsconsumer’s decision to spend money on orparticipate in sports are:Environmental factors–––––Family, friendsSociety’s attitudes and valuesCultural differencesClimate and regionMarketing influencesIndividual factors––––Self-concept or self-imagePhysical characteristicsLearned characteristicsMotivation and attitude5
Sports Consumers andMarket SegmentationUnderstanding marketsegmentation of the sportsconsumer market isimportant in order to sellproducts and uct benefitsmarket segmentationa way of analyzing amarket by specificcharacteristics to createa target marketConstantly shifting6
Sports ProductsSports products providethe consumer withsatisfaction, entertainment,sociability, and achievement.People who share in theprocess of marketing sportsproducts include owners,sponsors, communicationfirms, city governments,taxpayers, and consumers.sports products thegoods, services, ideas,or a combination ofthose things related tosports that providesatisfaction to aconsumer7
Types of Sports ProductsThe following sportsproducts can be classified asgoods or services, or both:tangible productsphysical goods that offerbenefits to the consumerSporting eventsSports informationSports trainingSporting goods– Tangible products8
Types of Sports ProductsIn contrast with sportsproducts, sports services areintangible products.intangible productsnon-physical servicessuch as tennis lessons,personal training, andsports campTen areas of service quality tanding9
Types of Sports ProductsSports businesses ororganizations that offer avariety of products classifytheir products by productline and product mix.product line a group ofclosely related productsmanufactured and/orsold by a companyproduct mix the totalassortment of productsthat a company makesand/or sells10
Sports Products andProduct ExtensionsSports products differ from typical consumerproducts because sports products have the abilityto generate a greater variety of product extensions.11
SECTION 4.1 REVIEW1.What are four characteristics needed toanalyze the market segmentation of sportsconsumers?2.How is a purchase by the sports consumersimilar to a vote?3.Define product mix.12
Economic EffectsFrom the moment the consumer inquires about aticket to a sporting event, there is an impact on theeconomy.The local economy improves as a result of moneyspent at sporting events.13
Economic EffectsEach decision theconsumer makes involvesan opportunity cost.As the economy grows,then more infrastructureis needed to support anathletic event.opportunity cost theloss of the opportunitythat is passed up in orderto receive something inexchangeinfrastructure thephysical development ofan area, including themajor public systems,services, and facilities ofa country or regionneeded to make alocation function14
Economic Impact of SportsTicketAgent ParkingGarage Food andMerchandise City PrideSportingSportingEventEvent Infrastructure SanitationTaxes The Internet15
“The Sunshine State”Orlando, Florida, is thehome of an NBA sportsfranchise called theOrlando Magic.By selling Orlando MagicT-shirts, caps, and otheritems, investors were ableto convince residents tomake 100 deposits onseason-ticket reservations.sports franchise anagreement or contract fora sports organization tosell a parent company’s(i.e., a national sportsleague) good or servicewithin a given area16
Economic and MarketingChallengesThe economic and marketing challenges of theWomen’s National Basketball Association aredifferent than those of the National BasketballAssociation.Media perception of the WNBA is a majorchallenge, despite the fact that the WNBA attractsmillions of spectators and viewers around the world.17
Grassroots MarketingEffortsTo gain support, teamssuch as the Sparks areheavily involved ingrassroots marketing.grassroots marketingmarketing activity on alocal community level18
Got Game—and MoreThe Women’sBasketballOperating an e-tail businesson an Nationalelectronicchannel—thehas delivery,come a longwayandin aWeb—can be costly,Associationdue to design,returns,operating expenses.few years since April 1996 when it wasfirst formed.Many largercompaniescrashedthe inByThough2001, WNBAgamesdot-comhad beenseen by 60millioninfans1990’s,smallFosteringstores likethisHarrisCycleryof West167countries.globalaudience,the Newton,Massachusetts,actuallyincreaseusingbasic WebWNBA.comWeb siteprovidesmanysalesservicesfora itssite. Today, a third of Harris’s bicycle business rides in rvice.statistics,the Webdraftto gethard-to-findand personalstandings, game schedules, highlights, a virtual box office,fantasygames,and even anhomee-tail pagestore.to your class afterDescribean e-business’sviewingone throughonmarketingseries.glencoe.com.Formore informationsports and entertainment marketing,go to marketingseries.glencoe.com.19
SECTION 4.2 REVIEW1.What is opportunity cost? Give an example.2.List six functions of an infrastructure of acommunity.3.Why is grassroots marketing an importantpart of sports marketing?20
Checking Concepts1. Describe how amarketer views a sportsconsumer.2. Name the fourcharacteristics that needto be considered whenanalyzing the marketsegment of sportsconsumers.continuedsports consumer is1. A2.geographics,aperson who maydemographics,play,officiate, watch,psychographics,or listen to sports, orandproductread, use, purchasebenefitsand/or collect itemsrelated to sports. Thesports consumer isthe target of the sportsmarketer because theconsumer as acustomer makespurchases.21
Checking Concepts3. Describe what happenswhen the correct sportconsumer is targeted bya sports-marketing plan.4. Identify the sportsproduct.5. Explain how sportsgoods and sportsservices differ.continuedIn sports,servicesare3. eidea,or by themarketplayersand sales;maximizescombinationofconsumed by thealso,thoseitthingswill relatedspectatorsultimatelytosports thatbenefitsimultaneously;theretheprovidestheis noconsumer,formal channelathlete,satisfactionthe team,to aof distribution.Tangiblegoodsthe owner,consumer.andmustthebeproducedby alocaleconomy.manufacturer and sentto a retailer to sell tothe consumer.22
Checking Concepts6. Compare a product lineand product mix.7. Define grassrootsmarketing.Critical Thinking8. Explain five dimensionsof service quality andhow they apply to asports team.Thefive dimensionsof6. A7.8.It isproductmarketinglineisaquality include:groupactivityofoncloselya cturedand courtesy ofemployeesandtheirand/orsoldbyaability to convey trustcompany,while aand confidence;empathy—caring,productmix is theindividualized ess—productsthat awillingness to helpsportsorganizationcustomersand providepromptservice; andmakesand/orsells.tangibles—appearanceof equipment, materials,and venue.23
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when the correct sport consumer is targeted by a sports-marketing plan. 22 4. Identify the sports product. 5. Explain how sports goods and sports services differ. Targeting the appropriate market maximizes sales; also, it will ultimately benefit the consumer, the athlete, the team, the own
