3.06 - employ product-mix strategies to meet customer expectations
DESCRIPTION
3.06 - Employ product-mix strategies to meet customer expectations. Merchandising Opportunities for Sports/Events. Merchandising opportunities for sports/events include: Licensed sale of merchandise such as apparel and other souvenirs Signage at the sport/event promoting the sponsor - PowerPoint PPT PresentationTRANSCRIPT
3.06 - Employ product-mix strategies to meet customer
expectations
Merchandising opportunities for sports/events include:
Licensed sale of merchandise such as apparel and other souvenirs
Signage at the sport/event promoting the sponsor
Stationary signage – does not move Rotating signage – toggles between advertisers Virtual signage – appears only on television
Merchandising Opportunities for Sports/Events
Logo abuse and counterfeit merchandise Damage to the event’s reputation, especially
if an advertised sponsor goes encountered legal difficulties or declares bankruptcy (e.g., Enron Field—Enron was an oil distribution company whose illegal practices led to its bankruptcy and imprisonment of some top company executives)
Damage to the advertised sponsor’s reputation, especially if the sport/event goes poorly (e.g., XFL professional indoor football league, which ended after only one season)
Risks Associated
Using Branded Merchandise
Advantages Development of profitable new product
lines Greater exposure to the market Enhanced sales Positive attributes associated with the
sport/event Development of universally identifiable
brands (e.g., Nike Swoosh) Positive attributes of the sports entity
transferred to the sponsor Licensee and/or sponsor attains better
brand recognition Less time and money required to build
high levels of brand equity Higher prices for “official” branded
merchandise
Disadvantages Possible loss of control over the
brand (e.g., licensee may produce inferior goods and offer them at a lower price, leading to a lessening of the perceived image of the sport/event)
Expense required to seek out counterfeit merchandise
Marketers generate merchandising ideas by: Identifying the target audience and selecting products based upon
its demographics Knowing what products have sold well in the past Identifying target audience’s lifestyle models to determine
appropriate products: Needs-driven consumers: Farthest removed from mainstream
culture, unaware of events, seeking only the bare necessities Outer-directed consumers: Affected by others around them
Belongers: Traditional, conservative, conforming, sentimental, and nostalgic
Emulators: Upwardly mobile, status conscious and competitive Achievers: Materialistic, self-reliant, geared toward success,
driven to preserve their status quo and comfortable lifestyle, likely to purchase high-end merchandise as status symbols
Sources of Merchandising Ideas
Factors affecting the choice of merchandising options include:
Planning: Merchandise to be sold in the future must be bought now Analysis: Customers’ needs must be correctly
identified to determine their needs, wants and desires
Acquisition: Who will produce the products Control: Quality control is necessary as the product
will reflect upon the company whose name and logo appear on it
Factors Affecting Choices