The Consumer and Sports Products

Economic Impact of Sports Marketing

2

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

The Sports Consumer

A purchase by the sports

consumer, as a customer,

is like a vote because the

purchase equals a decision

of approval.

sports consumer a

person who may play,

officiate, watch, or listen

to sports, or read, use,

purchase, predict,

and/or collect items

related to sports

4

The Sports Consumer

The two categories that affect the sports

consumer’s decision to spend money on or

participate in sports are:

5

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

Sports Consumers and

Market Segmentation

Understanding market

segmentation of the sports

consumer market is

important in order to sell

products and services.

market segmentation

a way of analyzing a

market by specific

characteristics to create

a target market

6

Geographics

Demographics

Psychographics

Product benefits

Constantly shifting

Sports Products

Sports products provide

the consumer with

satisfaction, entertainment,

sociability, and achievement.

sports products the

goods, services, ideas,

or a combination of

those things related to

sports that provide

satisfaction to a

consumer

7

People who share in the

process of marketing sports

products include owners,

sponsors, communication

firms, city governments,

taxpayers, and consumers.

Types of Sports Products

The following sports

products can be classified as

goods or services, or both:

tangible products

physical goods that offer

benefits to the consumer

8

Sporting events

Sports information

Sports training

Sporting goods

– Tangible products

Types of Sports Products

In contrast with sports

products, sports services are

intangible products.

intangible products

non-physical services

such as tennis lessons,

personal training, and

sports camp

9

Ten areas of service quality are:

Tangibles

Reliability

Responsiveness

Competence

Courtesy

Credibility

Security

Access

Communication

Understanding

Types of Sports Products

Sports businesses or

organizations that offer a

variety of products classify

their products by product

line and product mix.

product line a group of

closely related products

manufactured and/or

sold by a company

10

product mix the total

assortment of products

that a company makes

and/or sells

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.

11

SECTION 4.1 REVIEW

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

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.

13

Economic Effects

Each decision the

consumer makes involves

an opportunity cost.

14

opportunity cost the

loss of the opportunity

that is passed up in order

to receive something in

exchange

As the economy grows,

then more infrastructure

is needed to support an

athletic event.

infrastructure the

physical development of

an area, including the

major public systems,

services, and facilities of

a country or region

needed to make a

location function

Sporting

Event

$

$

$

$

$

$

$

$

Economic Impact of Sports

15

Sporting

Event

Ticket

Agent

Parking

Garage

Food and

Merchandise

Sanitation

The Internet

Taxes

Infrastructure

City Pride

“The Sunshine State”

Orlando, Florida, is the

home of an NBA sports

franchise called the

Orlando Magic.

16

sports franchise an

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.

Economic and Marketing

Challenges

The economic and marketing challenges of the

Women’s National Basketball Association are

different than those of the National Basketball

Association.

Media perception of the WNBA is a major

challenge, despite the fact that the WNBA attracts

millions of spectators and viewers around the world.

17

Grassroots Marketing

Efforts

To gain support, teams

such as the Sparks are

heavily involved in

grassroots marketing.

18

grassroots marketing

marketing activity on a

local community level

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.

Got Game—and More

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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.

The Women’s National Basketball

Association has come a long way in a

few years since April 1996 when it was

first formed.

SECTION 4.2 REVIEW

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

Describe how a

marketer views a sports

consumer.

21

Name the four

characteristics that need

to be considered when

analyzing the market

segment of sports

consumers.

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.

1. geographics,

demographics,

psychographics,

and product

benefits

2.

Checking Concepts

continued

1.

2.

Describe what happens when the correct sport consumer is targeted by a sports-marketing plan.

22

Identify the sports

product.

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 owner, and the

local economy.

3. The good, service,

idea, or

combination of

those things related

to sports that

provides

satisfaction to a

consumer.

4. 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.

5.

Checking Concepts

continued

3.

4.

5.

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.

6.

Explain five dimensions

of service quality and

how they apply to a

sports team. 23

Critical Thinking

Compare a product line and product mix.

Define grassroots marketing.

It is marketing

activity on a local

community level.

7. 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.

8.

Checking Concepts

6.

7.

8.

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