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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
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.
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.