Copyright © 2014 by Sports Career Consulting, LLC

Copyright © 2014 by Sports Career Consulting, LLC

LESSON 4.1

Marketing Applications

A philosophy that a company’s success is ultimately dependent upon efficient identification of consumer needs and wants and the ability to satisfy them

The Marketing Concept



LESSON 4.1


Financial success is a direct result of an organization’s ability to effectively market its products and services

A business achieves profitability when they offer the goods and services that customers need and want at the right price

Marketers strive to identify and understand all factors that influence consumer buying decisions


Why Is Marketing Important?


LESSON 4.1


A want is simply something you would like to have

You might want a Nintendo Wii or tickets to an upcoming game, but you can survive without them

Needs vs. Wants

A need is something you have to have and that you cannot do without

For example, we need food. Without eating, we cannot survive!


LESSON 4.1


Exchange Process:

Marketing transaction in which the buyer provides something of value to the seller in return for goods and services that meet that buyer’s needs or wants

The Exchange Process

Must be at least two parties involved in process

Some means of communication must be present between all parties

Each party must be free to accept or decline offer


LESSON 4.1


Benefits of Marketing


The marketing process serves many purposes and provides numerous benefits for the consumer

The ability to add perceived value to goods and services

Making the buying process easy and convenient for consumers

Creating and maintaining reasonable prices

Offering a variety of goods and services

Increasing production

LESSON 4.2


The Marketing Mix:

The Marketing Mix:

Consists of variables controlled by marketing professionals in an effort to satisfy the target market


LESSON 4.2


Product

Price

Place

Promotion

The Marketing Mix

Involves the goods, services, or ideas used to satisfy consumer needs

Determined by what customers are willing to pay and production costs

Involves the process of making the product available to the customer

Involve how the goods or services are communicated to the consumer


How might the marketing mix apply to Wilson Sporting Good’s efforts to

maximize sales of tennis racquets?

Discussion TopicLESSON 4.2


LESSON 4.3


Target Markets

A target market refers to people with a defining set of characteristics that set them apart as a group


LESSON 4.3


Target Markets Must Be:


Sizeable: The overall size of the market

Reachable: Ability for marketers to reach consumers

Measurable: Ability to measure size, accessibility and overall purchasing power of the target market

Behavioral: Marketers seek to find similar behaviors within each respective target market

LESSON 4.3



All organizations must have an understanding of their target market to

create an effective marketing strategy that caters to their audience


LESSON 4.3



Part of Coca-Cola’s marketing strategy is to target moms. As such, the soft drink giant rolled out a comprehensive marketing campaign tied to the

2012 Olympic Games based on the knowledge that the Olympics traditionally attract more female viewers than almost any other sporting event.


LESSON 4.3


Niche Marketing offers a unique opportunity to consumers or one that has not been offered in the past

Niche Marketing

Niche Marketing:

Process of carving out a relatively tiny part of a market that has a very special need not currently being filled


LESSON 4.3


Cable television channels often seek niche audiences to appeal to specific target groups with a common set of interests, such as ESPN designing programming to appeal to sports fans

Niche Marketing


LESSON 4.3


When a business sees a competitor enjoying success with a particular niche, often times the market can become flooded with other companies exploiting the same niche or another similar niche.

Niche Marketing - Discussion


Can you think of any examples?

LESSON 4.3


Lululemon Athletica is a Canadian retailer that distributes product in Canada and the United States. The company targets its branded yoga and fitness apparel to a niche consumer of female athletes.

Niche Marketing


LESSON 4.3


Lululemon, positioned as a high-end brand, has enjoyed explosive growth in the past several years (in 2012 they were named the 7th most valuable brand in Canada. On the heels of their success,

Under Armour has introduced a new yoga line, Gap introduced its GapBodyFit line, Forever 21 began

selling active wear and both Nordstrom and Target expanded their store branded women’s sportswear offerings (even lingerie company Victoria’s Secret

now sells yoga pants).


Niche Marketing

LESSON 4.3


When Lululemon was forced to recall product in 2013 because they were see through when stretched, Under Armour (who has been targeting women as a key demographic for several years), responded by featuring the tag line "We've Got You Covered” on its Facebook page in an effort to drive customers to its site


Niche Marketing

Click here for a story on dailyfinance.com to see how other competitors (including Nike, a new player in the yoga field) have responded

LESSON 4.3


As the running category continues to gain steam (sales of running shoes were up 14% in the last year), brands

like Vibram and their “five finger shoes”, Fila with skeletoes, and Adidas with adiPURE (among others) have

carved a niche with “minimalist” running shoes, designed to create a “barefoot” jogging experience while

still providing protection for the feet

Niche Marketing


LESSON 4.3



LESSON 4.3


However, not all niche markets last. For the first quarter of 2013, sales were of the minimalist shoe were down 10% while motion control shoes were up 25% (another niche in the running category). Said Matt Powell in an interview on runnersworld.com, "It appears this fad is

pretty much over."

Niche Marketing


Market Segmentation the process of

identifying groups of consumers based

on their common needs


LESSON 4.4


LESSON 4.4


Market Segmentation

Understand consumer groups

Determine target markets

Develop positioning strategies

Customize products and marketing strategies


Helps Companies To:

LESSON 4.4


Five Bases for Market Segmentation

1) Demographic 2) Product

3) Psychographic 4) Benefits

5) Geographic


LESSON 4.4


CONSUMER

Demographic Psychographic Geographic

Benefits Product


LESSON 4.4



Demographic Segmentation:

Focuses on information that can be measured

Age

Income

Occupation

Gender

Education


LESSON 4.4



Demographic Segmentation

i.According to knowledgebase.com, the biggest demographic for the artist Shakira is 20-year old womeni.According to knowledgebase.com, the biggest demographic for the artist Shakira is 20-year old women

According to knowledgebase.com, the biggest demographic for the artist Shakira is 20-year old women

LESSON 4.4


Since 2000, the number of NASCAR fans earning $100,000 or more has doubled from 7% to 16% of its fan base, and those with incomes of $50,000 or more has risen from 35% to 48%



LESSON 4.4


According to league data, the average household income for NHL fans is $104,000, highest of the four major sports with Major League Baseball ($96,200), the NBA ($96,000), and the NFL ($94,500)



LESSON 4.4


According to a report from Leichtman Research Group, 69% of households in the U.S. have at least one high definition television set, up from 17% in 2006



LESSON 4.4


A survey by CNBC has found that half of all American households own at least one Apple device, and the average Apple-buying household has a total of three



LESSON 4.4


Target retail stores understand that 60% of their shoppers are women, likely playing a significant role in their decision to sponsor the 2014 ASAP Women’s Surfing Event In Maui



LESSON 4.4




40% of the fan base earns $46-75k per year

42% of the fan base has an Undergraduate Degree

91% of the fan base has a major credit card

69% of the fan base owns their own home

Triple A baseball posts its demographic information online for prospective sponsors to review

LESSON 4.4



Product Usage Segmentation:

Reflects what products consumers use, how often they use them, and why

Sports season ticket holders

Theatre group ticket coordinators


LESSON 4.4



Psychographic Segmentation:

Grouping consumers based on personality traits and lifestyle

Sports Fans

Music Lovers

Individuals who enjoy attending live events


LESSON 4.4



Benefits Segmentation:

Refers to a perceived value consumers receive from the product or service

Season ticket holders enjoy additional “perks” such as exclusive invitations to pre-game chalk talks with the team’s coaches


LESSON 4.4



Geographic Segmentation:

Dividing of markets into physical locations

North, South, East and West Regions of the United States

Urban and Rural areas of a particular state

Important to Sports Marketers Because:

Sports consumers are characteristically loyal to particular regions when making buying decisions


LESSON 4.4


Because many segments may be valid in helping marketers make decisions, marketers often choose to use several segments

Ultimately, a decision is made based on what best fits the organization’s target market


Selecting multiple segments

LESSON 4.5


Positioning

Fixing company products in the Minds of Consumers

All about “perception”

Relative to competitor products

Positioning:

The fixing your sports or entertainment entity in the minds of consumers in the target market


LESSON 4.5


Positioning


Sports drinks (Gatorade as a performance beverage)

Movie studios (Pixar as a leader in animated films)

Entertainers (Will Ferrell as a comedic actor)

LESSON 4.5


Positioning


Positioning is About Perception

Puma’s “Calling All Troublemakers” spot launched in 2014 (part of the brand’s new “Forever Faster” campaign) encourages fans to be more daring and push boundaries to achieve “danger, risk and potential fugitive status” in an effort to differentiate itself from Nike, Adidas and Under Armour as it continues its efforts to gain credibility and position itself as a legitimate performance apparel brand

LESSON 4.5


Positioning


Positioning is About Perception

To drive the campaign and assist in their positioning effort, Puma partnered with athletes with “bad boy” reputations like Olympic champion Usain Bolt and soccer player Mario Balotelli

LESSON 4.5


Positioning


Wheaties cereal has positioned itself as a brand affiliated with athletic performance and its slogan, “the breakfast of champions”, has

remained since the brand’s introduction in 1924

LESSON 4.5


Positioning


With sales declining, General Mills (parent company of the Wheaties brand) introduced a new spin off product aimed to take advantage of consumer perceptions of the Wheaties brand. General Mills developed three formulations of the cereal (dubbed Wheaties Fuel) with the help of a sports nutritionist and five world class athletes: the NFL's Peyton Manning, the NBA's Kevin Garnett, gold medal-winning decathlete Bryan Clay, the MLB's Albert Pujols, and triathlete Hunter Kemper.

LESSON 4.5


High (variable one)

Low (variable one)

Low (variable two)

High (variable two)

Product A

Product B

Product C

Product D

http://www.marketingteacher.com/Lessons/lesson_positioning.htm


Positioning Map:

Products or services are grouped together on a positioning mapwhere they are compared and contrasted in relation to one another

LESSON 4.5


High Price

Client Entertaining

Lower level seats for Disney on Ice

Luxury suite at an NFL game

“Cheap Seats” at a minor league baseball game

Night at the movies

Family Fun

Low Price

Club seats at an NBA game


Ticket Sales PositioningMap

LESSON 4.5


High Price

Top Row Corners

Mid/Upper Level Sidelines

Upper Level Seats

Low Price

Lower Level End Zones

Courtside Seats

Lower Level Seats


LESSON 4.5


Positioning Strategy


Identify all possible competitive advantages

1) Products, services, channels, people or image can be sources of differentiation

2) Organizations often position their products relative to competitor Weaknesses (5-hour energy)

LESSON 4.5




Choose the right competitive advantage

1) How many differences to promote?

2) Unique selling proposition (5-hour energy)

LESSON 4.5


Positioning


5-hour Energy Drink focuses on its small packaging size and claims to provide a long lasting energy boost without the “usual jitters associated with energy drinks.” These purported features are intended to provide the competitive advantage necessary for distinguishing this energy drink from the many competitors on the market.

Click here to view the latest endorsement from legendary pro athlete, Bo Jackson

LESSON 4.5




Positioning errors to avoid

1) Which differences to promote?

2) Are the differences legitimate?

LESSON 4.5


Positioning


Despite positioning their product in a highly successful manner, the makers of 5-hour energy were hit with a lawsuit in 2014 citing deceptive advertising charges

LESSON 4.5


Product Differentiation

Product Differentiation:

Refers to a positioning strategy that some firms use to distinguish their products from those of competitors


Kentwool (a 168-year-old company known for selling upscale niche clothing) recently introduced a $25 pair of golf socks to the marketplace, positioning the product as “performance” apparel for the golf aficionado

LESSON 4.5


In an interview with CNBC’s Darren Rovell, Kentwool CEO Mark Kent explains: "Ninety-five percent of all socks are fashion based. Five percent are performance based. We basically set out to put ourselves in the top one percentile of that five percent to make the highest performing sock in any market segment. So to differentiate yourself you have to become in layman's terms the Ferrari of the market, you have to be the fastest car on the street or the best performing sock in the marketplace."


LESSON 4.5


A private golf course may be suffering slumping membership sales.

Management may choose to open up the course to the public, which will ultimately require a well planned re-positioning strategy

Re-Positioning

Re-Positioning:

A marketer’s plan for changing consumers’ perceptions of a brand in comparison to competing brands


LESSON 4.5


Re-positioning involves identifying who the new target market is and a strategy for creating awareness and demand within that market

Part of the re-positioning effort in this case would require sending a message to the target market that the club is affordable by public standards

Re-Positioning


LESSON 4.5


Slogan might be “Enjoy the benefits of a private club at public course rates!”

Re-Positioning


LESSON 4.5


The average age of a Major League Baseball fan is 44 years old, but the 18-24 age demographic is the target audience most sponsors and advertisers try to reach. To help reposition the brand as a product that would attract a younger demographic, MLB has focused on developing their “Fan Cave” program through integration of new, hip technology, a trendy location and relationships with unlikely partners like MTV2.

Re-Positioning


LESSON 4.8


Advertising:

Any paid, non-personal form of communication by an identified company promoting goods and services.

Advertising

TV Commercials and infomercials

Print Advertisements

Direct Mail

Internet (banner ads, “pop up” ads, social media ads)

Social Media


LESSON 4.8


Effective communication

Create awareness

Create / Change image

Associate a brand with feelings and emotion

Precipitate behavior

Establish / Maintain goodwill

Assist in the increase in sales

Why Advertise?


LESSON 4.8


Types of Advertising

Print Media:

Any written form of communication used toinform, persuade, or remind consumers aboutproducts or services offered


LESSON 4.8


Outdoor Advertising:

Includes any outdoor signs and billboards

Offers a high level of visibility

Provides 24-hour advertising



LESSON 4.8



Outdoor Advertising

The elevator doors in hotels and business buildings can even be used for advertising

LESSON 4.8



Outdoor Advertising

LESSON 4.8


Mass Transit Advertising:

Uses public transportation, such as buses, bus stands, taxicabs, and subways to post advertising messages



LESSON 4.8



Mass Transit Advertising

Hops are a new single A minor league baseball team from Hillsboro, Oregon a suburb of Portland.

LESSON 4.8


Broadcast Media:

Any visual and/or auditory form of communication used to inform, persuade, or remind consumers about goods or services offered



LESSON 4.8


Radio Advertising:

Advertisers match their target market to aradio station that segments a particularmarket

* Has the ability to reach a wide audience



LESSON 4.8


Television Advertising:

Includes commercials and infomercials

Is traditionally the most expensive form ofbroadcast media



LESSON 4.8




LESSON 4.8




Honda assistant VP-advertising Tom Peyton, whose company spends more than $600 million on U.S. television advertising annually and sponsors the Honda Classic golf tournament, the Rose Bowl's Rose Parade, and the NHL's Anaheim Ducks, recently told Ad Age: "There has to be a point where the price of sports properties on TV, the price of tickets for consumers to games, is truly affecting the amount of sports we can engage in — and the type of sports we engage in.”

LESSON 4.8


Online/Digital Media:

Advertising through various digital media platforms

* Banner ads, pop-ups etc.* Digital broadcasts* Social media channels (Facebook, Twitter, etc.)* Mobile



LESSON 4.8




The $60 million in digital advertising sales earned by NBC through its online coverage of the London Games was three times what the network earned for the 2008 Games in Beijing (sales for the 2014 Winter Games in Sochi were slightly down from the 2012 Sumer Games in London to $50 million)

LESSON 4.8


Online/Digital Media



LESSON 4.8


“Specialty” Media (or Promotional Products):

Includes “everyday” items displaying a companyname or logo

Examples include lanyards, calendars, pens, magnets, and coffee mugs



LESSON 4.8


Additional Forms of “Creative” Media:

Marketers often use many other creative ways ofcommunicating advertising messages to consumers

Examples include: blimps (and other forms of aerial advertising, supermarket carts/bags, hot air balloons, and in-theater advertisements



LESSON 4.8




In addition to the light rail advertisements, Adidas and the Portland Timbers prominently featured a number of advertisements through the Portland airport to celebrate the 2014 MLS All-Star game

LESSON 4.8



In 2014, Boeing rolled out a Seattle Seahawks branded airplane, paying homage to the team’s famed “12th Man” shout out to fans. In the plane’s first flight, the aircraft carved the number “12″ in the sky over downtown Seattle

LESSON 4.8



LSU Athletics took a unique advertising as part of a basketball campaign when they teamed with adverCar (a company that pays individuals to affix advertising messages to their personal vehicles), essentially paying fans to drive their message into local neighborhoods, shopping centers and commuter routes

LESSON 4.8


Advertising Agency:

An organization that decides on and implements an advertising strategy for a customer

Advertising Agencies

Nike contracts the Wieden & Kennedy agency to manage and oversee some of their advertising campaigns


LESSON 4.8


Wieden + Kennedy won an award at the 2012 Cannes Lions festival for its advertising spot featuring Carmelo Anthony, created for the Jordan Brand



LESSON 4.8


Under mounting pressure and facing a potential lawsuit, the Washington Redskins enlisted the help of a PR professional to help make a decision as to whether the franchise should change the team nickname



LESSON 4.8


Expertise

Time constraints

Time constraints

“Fresh” perspectives

Access to athletes, celebrities, entertainers?

Why an Agency?


Documents

Copyright © 2014 by Sports Career Consulting, LLC