chapter 4 sports products. the consumer and sports products a sports consumer- is a person who may...

Chapter 4Chapter 4

Sports ProductsSports Products

The Consumer and Sports The Consumer and Sports ProductsProducts

A A Sports Consumer-Sports Consumer- is a person who is a person who may play, officiate, watch, or listen to may play, officiate, watch, or listen to sports, or read, use, purchase, and or sports, or read, use, purchase, and or collect items related to sports.collect items related to sports.

The goal of planning marketing strategies The goal of planning marketing strategies is to encourage the consumer to act as a is to encourage the consumer to act as a customer and purchase tickets or customer and purchase tickets or merchandise– and this is the job of sports merchandise– and this is the job of sports marketing personnel.marketing personnel.

Consumer DecisionsConsumer Decisions

Many factors come to play that affect a Many factors come to play that affect a consumer’s decision to spend money or to consumer’s decision to spend money or to participate in sports. These factors fall into two participate in sports. These factors fall into two categories; categories; Environmental and IndividualEnvironmental and Individual..

Environmental FactorsEnvironmental Factors- that influence a - that influence a consumer’s involvement in sports can include consumer’s involvement in sports can include family and friends; society’s attitudes and family and friends; society’s attitudes and values; cultural differences related to class, race values; cultural differences related to class, race and gender; climate and region; and of course, and gender; climate and region; and of course, marketing influences such as commercials.marketing influences such as commercials.


Individual Factors-Individual Factors- that affect a that affect a consumer’s involvement in sports include:consumer’s involvement in sports include:1.1.Self concept or self imageSelf concept or self image. If a person . If a person see themselves as an athlete, they will see themselves as an athlete, they will likely be involved in sports. likely be involved in sports. 2.Another factor relates to 2.Another factor relates to self-self-development or stage of life.development or stage of life. The average The average age of a person when he or she becomes age of a person when he or she becomes a fan is at the age of 11.a fan is at the age of 11.


3.The 3.The physical characteristicsphysical characteristics related to related to the ability to play a sport is another the ability to play a sport is another individual factorindividual factor

4. The fourth individual factor is 4. The fourth individual factor is learned learned characteristicscharacteristics regarding the ability to regarding the ability to learn athletic skills, and motivation and learn athletic skills, and motivation and attitude.attitude.


With all of these factors that influence the With all of these factors that influence the sports consumer, sports marketers must sports consumer, sports marketers must consider a combination of these factors to consider a combination of these factors to make a effective decisions about make a effective decisions about marketing plans.marketing plans.

Sports Consumers and Sports Consumers and Market SegmentationMarket Segmentation

Market Segmentation-Market Segmentation- is a way of is a way of analyzing a market by specific analyzing a market by specific characteristics to create a target market. characteristics to create a target market. These characteristics include geographics, These characteristics include geographics, demographics, pyschographics, and demographics, pyschographics, and product benefits.product benefits.

1. 1. GeographicsGeographics- Is studying where people - Is studying where people live.live.


2.2.DemographicsDemographics- are statistics that - are statistics that describe a population in terms of personal describe a population in terms of personal characteristics such as gender, race, characteristics such as gender, race, religion, and earnings.religion, and earnings.3.3.Pyschographics-Pyschographics- include include characteristics that are easier to change, characteristics that are easier to change, such as attitudes, or opinions the such as attitudes, or opinions the consumer has toward recreational consumer has toward recreational activities.activities.


4. Sports marketers also study consumers’ 4. Sports marketers also study consumers’ behaviors, needs and wants regarding behaviors, needs and wants regarding specific specific product benefitsproduct benefits to consumers. to consumers.

The market segmentation of the sports The market segmentation of the sports consumer market is constantly changing. consumer market is constantly changing. Sports marketers must constantly check Sports marketers must constantly check current current consumer approval ratings.consumer approval ratings.


Several years ago the golf market included Several years ago the golf market included mostly men, ages 30-60, with incomes of mostly men, ages 30-60, with incomes of $50,000 to $175,000 per year. But with the $50,000 to $175,000 per year. But with the emergence of Tiger Woods and how he was emergence of Tiger Woods and how he was marketed, a new consumer market of teenagers marketed, a new consumer market of teenagers developed for golf. Thus the marketing segment developed for golf. Thus the marketing segment shifted for golf, and the PGA gained new shifted for golf, and the PGA gained new sponsors who sell to this market. sponsors who sell to this market.

Nike, Wheaties, Upper Deck, Accenture, Buick Nike, Wheaties, Upper Deck, Accenture, Buick and Coca-Cola are all sponsors for Tiger Woods.and Coca-Cola are all sponsors for Tiger Woods.


Sports products are goods, services, ideas, or a Sports products are goods, services, ideas, or a combination of those things related to sports that combination of those things related to sports that provide satisfaction to the consumer. provide satisfaction to the consumer.

The product of sports give consumers The product of sports give consumers entertainment, social outlets, or even entertainment, social outlets, or even achievement. For example, the product of a achievement. For example, the product of a monster truck race can include music, and monster truck race can include music, and celebrity appearances to entertain spectators.celebrity appearances to entertain spectators.


Besides sports products in the form of Besides sports products in the form of goods and services, sports products can goods and services, sports products can also be athletes. The athlete who also be athletes. The athlete who demonstrates more than one skill, is demonstrates more than one skill, is considered a valuable “product” by the considered a valuable “product” by the team that contracts the athlete.team that contracts the athlete.


Many people are involved in marketing a sports Many people are involved in marketing a sports product: Owners, sponsors, communication product: Owners, sponsors, communication firms, city governments, taxpayers, and firms, city governments, taxpayers, and consumers. consumers.

NASCAR needs owners for the cars, sponsors NASCAR needs owners for the cars, sponsors on the car, promotion on TV and radio, permits on the car, promotion on TV and radio, permits from city governments to run the race, owners from city governments to run the race, owners must also convince taxpayers that the race will must also convince taxpayers that the race will benefit the local economy, and fans in the benefit the local economy, and fans in the stands to create revenue from the race.stands to create revenue from the race.

Types of Sports ProductsTypes of Sports Products

Sport products can be actual goods or Sport products can be actual goods or services. services. 1. 1. Sporting Events-Sporting Events- Games, events and Games, events and competitions on all levels make up this competitions on all levels make up this segment.segment.2. 2. Sports Information-Sports Information- Involves the news, Involves the news, statistics, schedules, and stories. TV, statistics, schedules, and stories. TV, radio, online, and print media provide radio, online, and print media provide sports informationsports information


3. 3. Sports Training-Sports Training- This product is This product is usually a service such as instruction that is usually a service such as instruction that is provided through fitness centers, sport provided through fitness centers, sport camps, and lessons.camps, and lessons.4. 4. Sporting Goods-Sporting Goods- These products These products usually include a wide range of goods, usually include a wide range of goods, such as equipment, licensed merchandise, such as equipment, licensed merchandise, collectibles, and memorabilia, as well as collectibles, and memorabilia, as well as apparel and accessories.apparel and accessories.


Sports Goods-Sports Goods- are defined as actual are defined as actual tangible products such as a skateboard, tangible products such as a skateboard, basketball and baseball bats. These are basketball and baseball bats. These are available at local sporting good stores available at local sporting good stores around the country.around the country.5. There are other sports products that can 5. There are other sports products that can also include also include servicesservices such as buying a such as buying a hot dog at your seat in the stadium. hot dog at your seat in the stadium. Vendors are the service for the product.Vendors are the service for the product.


Quality Of Goods-Quality Of Goods- is an important aspect is an important aspect of sporting goods.of sporting goods.

Two basic questions have to be answered Two basic questions have to be answered when judging the quality of manufactured when judging the quality of manufactured products.products.

1. Does the product conform to design 1. Does the product conform to design specifications in the manufacturing specifications in the manufacturing process?process?


2. How well does the product perform its function 2. How well does the product perform its function in the opinion of the consumers, or end users, of in the opinion of the consumers, or end users, of the goods.the goods.

For example, if a sports franchise raises the price For example, if a sports franchise raises the price of a season ticket, it may lose the loyalty of the of a season ticket, it may lose the loyalty of the average fan. However, the franchise might find average fan. However, the franchise might find another target market that is willing to spend another target market that is willing to spend more money for higher-quality goods such as more money for higher-quality goods such as luxury box seats. (See page 80 for luxury box seats. (See page 80 for characteristics of quality goods).characteristics of quality goods).

Sports ServicesSports Services

A sports service is an intangible product A sports service is an intangible product that can’t be held or touched.that can’t be held or touched.

Tennis LessonsTennis LessonsGolf LessonsGolf LessonsPersonal TrainingPersonal TrainingSports CampsSports CampsThe experience of attending a game in The experience of attending a game in

terms of parking, seating, and well terms of parking, seating, and well designed interior of the stadium.designed interior of the stadium.

Quality of ServiceQuality of Service Reliability-Reliability- The ability to perform promised The ability to perform promised

services dependably and accuratelyservices dependably and accurately Assurance-Assurance- Knowledge and courtesy of Knowledge and courtesy of

employees and their ability to convey trust and employees and their ability to convey trust and confidence.confidence.

Empathy-Empathy- The caring, individualized attention The caring, individualized attention provided by the sports franchise for its provided by the sports franchise for its customers. customers.

Responsiveness-Responsiveness- Willingness to help Willingness to help customers and provide prompt service.customers and provide prompt service.

Tangibles-Tangibles- Appearance of equipment, Appearance of equipment, personnel materials, and the venue or stadium.personnel materials, and the venue or stadium.

Sports Product ClassificationsSports Product Classifications

Sports businesses organize their products Sports businesses organize their products by by product lineproduct line and and product mix.product mix.

A product line-A product line- is defined as a group of is defined as a group of closely related products manufactured and closely related products manufactured and or sold by a company. These products or sold by a company. These products satisfy a class of needs and may be used satisfy a class of needs and may be used together, sold to the same customer together, sold to the same customer group, sold through the same type of group, sold through the same type of outlets, or have the same price range. outlets, or have the same price range.


A Product Mix-A Product Mix- is the total assortment of is the total assortment of products that a company makes and or products that a company makes and or sells. Take Wilson Sporting Goods for sells. Take Wilson Sporting Goods for example, they sell balls, rackets, gloves, example, they sell balls, rackets, gloves, bats, shoes, visors, uniforms, etc, etc.bats, shoes, visors, uniforms, etc, etc.

Another example is North Penn’s lunches. Another example is North Penn’s lunches. Everything they sell on a daily basis is Everything they sell on a daily basis is their product mix. their product mix.


Many companies may specialize in a few Many companies may specialize in a few product keeping their product mix small in product keeping their product mix small in nature, while other companies such as nature, while other companies such as Nike is large and extensive.Nike is large and extensive.

Sports Product and ExtensionsSports Product and Extensions

Sports businesses and organizations, like Sports businesses and organizations, like any other business, want to offer whatever any other business, want to offer whatever products will sell. However, sports products will sell. However, sports products differ from typical consumer products differ from typical consumer products because sports products have products because sports products have the ability to generate a greater variety of the ability to generate a greater variety of related products or product extensionsrelated products or product extensions. . See page 83 for an example. See page 83 for an example.

Sports Product and ExtensionsSports Product and Extensions

The Super Bowl is the main or core The Super Bowl is the main or core product while the tickets, programs, product while the tickets, programs, videos, statistics in the news, related TV videos, statistics in the news, related TV programs, and T-shirts are all product programs, and T-shirts are all product extensions.extensions.

Section 4-2Section 4-2Economic Impact of Sports Economic Impact of Sports

MarketingMarketingEconomic Effects-Economic Effects-

Buying tickets, employing ticket takers, Buying tickets, employing ticket takers, parking attendants, concession stands, parking attendants, concession stands, security, players on the team, public security, players on the team, public transportation, souvenir stands, customer transportation, souvenir stands, customer service, Radio and TV announcers, service, Radio and TV announcers, commercials, etc , etc.commercials, etc , etc.

The money spent at the sporting event gets The money spent at the sporting event gets distributed around the local economy. distributed around the local economy.

Economic Impact of Sports Economic Impact of Sports MarketingMarketing

Tax dollars generated by all of the people Tax dollars generated by all of the people involved around the sporting event goes to involved around the sporting event goes to local governments to improve the local governments to improve the infrastructure of the roads and public infrastructure of the roads and public transportation.transportation.


Each decision a consumer makes involves Each decision a consumer makes involves an an opportunity costopportunity cost, which is the loss of , which is the loss of the opportunity that is passed up in order the opportunity that is passed up in order to receive something in exchange.to receive something in exchange.

Opportunity-cost decisions affect sports Opportunity-cost decisions affect sports marketing because the consumer decides marketing because the consumer decides to spend his or her discretionary income to to spend his or her discretionary income to have an enjoyable experience. have an enjoyable experience.


As mentioned earlier, monies coming in to As mentioned earlier, monies coming in to support a sports team goes a long way to support a sports team goes a long way to help the infrastructure. help the infrastructure.

Infrastructure is the physical development Infrastructure is the physical development of an area, including the major public of an area, including the major public systems, services, and facilities of a systems, services, and facilities of a country or region needed to make a country or region needed to make a location function. location function.


Six of the functions include: power and Six of the functions include: power and water supplies, public transportation, water supplies, public transportation, telecommunications, roads, and schools- telecommunications, roads, and schools- all which support the residents and tourists all which support the residents and tourists alike.alike.

This entire process from beginning to end, This entire process from beginning to end, contributes to the economy.contributes to the economy.


All the previous mentioned are called All the previous mentioned are called Franchises.Franchises.

A sports franchise is an agreement or A sports franchise is an agreement or contract for a sports organization to sell a contract for a sports organization to sell a parent’s company (i.e. a national sports parent’s company (i.e. a national sports league), good or service within a given league), good or service within a given area. area.

Promoters start years in advance to Promoters start years in advance to advertise a new team coming to a city.advertise a new team coming to a city.


Florida is known as the sunshine state and it is Florida is known as the sunshine state and it is the world’s number one tourist destination. Over the world’s number one tourist destination. Over thirty million people visit the state each year.thirty million people visit the state each year.

The sports economy in Florida has been growing The sports economy in Florida has been growing over the past few years with the start of the over the past few years with the start of the Tampa Bay Bucs, Football, The Marlins, Tampa Bay Bucs, Football, The Marlins, Baseball, the Orlando Magic, Basketball, The Baseball, the Orlando Magic, Basketball, The Lightning, and Panthers, Hockey.Lightning, and Panthers, Hockey.


Case study- The Orlando MagicCase study- The Orlando MagicStarted in 1989Started in 1989Four years of promoting before the 1989 Four years of promoting before the 1989

seasonseasonSold season ticketsSold season ticketsShaquille O’Neil started in 1992 and the Shaquille O’Neil started in 1992 and the

team became very competitive that year.team became very competitive that year.The team continues to bring in big revenue The team continues to bring in big revenue

to the area.to the area.


Lesser known professional teams in sports Lesser known professional teams in sports which are not the top tier sports have a which are not the top tier sports have a tough time getting media exposure. This tough time getting media exposure. This dampens their ability to draw big crowds dampens their ability to draw big crowds and increase their revenue. Some and increase their revenue. Some examples include the WNBA, and examples include the WNBA, and professional Soccer. professional Soccer.


To gain support, these teams need to start To gain support, these teams need to start at the community level and build at the community level and build promotion from there. promotion from there.

The term The term grassroots marketinggrassroots marketing refers to refers to marketing activity on a local community marketing activity on a local community level. For example, a team may help a level. For example, a team may help a community with charity and fund-raising community with charity and fund-raising events. events.

chapter 4 sports products. the consumer and sports products a sports consumer- is a person who may...

Documents

sports consumers

sports marketers

sports products

environmental factors

consumers involvement

marketing influences

marketing plans

consumers decision