Chapter 8 Sales and Service

8

Sales and ServiceSales and Service

C H A P T E R

Objectives

• To define what sales is and what sales is not

• To provide an overview of the various sales methodologies used in sport business

• To analyze pricing techniques and strategies as they relate to the sport industry

(continued)

Sales

• The revenue-producing element of the marketing process

• The process of moving goods and services from the product producers into the hands of those who will benefit most from their use

• Involves the application of persuasive skills

• May be supported by print, audio, or video messages designed to promote the product or its brand as essential, the best, or desirable

Factors That Cause Customersto Perform or Fail to Perform

• Quality

• Quantity

• Time

• Cost

Traits of a Good Salesperson

• Belief in the product

• Belief in yourself

• Seeing many people (sales call volume)

• Timing

• Listening to the customer (but realizing that what the customer wants is not necessarily what she is telling you)

• A sense of humor

(continued)

Traits of a Good Salesperson (continued)

• Knocking on old doors

• Asking everyone to buy

• Following up after the sale with the same aggressiveness you demonstrated before the sale

• Common sense

What Is a Good Sales-Oriented Organizational Structure?

• The reporting structure in an organization

• The relationships between departments that are integral in the sales process

• The organizational style or philosophy with regard to producing support materials used in the sales process

(continued)

What Is a Good Sales-Oriented Organizational Structure? (continued)

• The sales developmental process within the department

• Determining the composition of the sales force and the compensation mix for the sales staff

Figure 8.3

Developing and Managinga Sales Department

• Properly train the sales staff.

• The sales staff must have the resources they need to accomplish the established goals.

• Identify the strengths and weaknesses of the sales team or its individual members.

(continued)

Developing and Managinga Sales Department (continued)

• Complement the various personalities and styles of individual members to benefit the team as a whole.

• Initiate an attractive incentive structure to motivate the salesperson to achieve his or her individual goals.

What Do Sport Teams Sell?

• Naming rights

• Electronic inventory

• Signage inventory

• Print inventory

(continued)

What Do Sport Teams Sell? (continued)

• Assets related to ticket sales

• Tickets and hospitality inventory

• Promotions inventory

• Community programs

• Miscellaneous

Direct Data-Based Sport Marketing and Sales

• Database marketing involves the collection of information about past consumers, current consumers, and potential consumers (see chapter 4).

• Sources for ticket database leads include the following:

(continued)

Direct Data-Based Sport Marketing and Sales (continued)

– Current season-ticket holders– Co-account holders (share season tickets)– Corporate– Partial-plan holders– Groups– Advance-ticket purchasers– Phone sales– Outlet ticket sales– Day-of-game walk-up– Sweepstakes or contest entries– Electronic media opt-ins (continued)

Direct Data-Based Sport Marketing and Sales (continued)

• Sport organizations should attempt to collect contact data from every customer who touches the product.

• Sport marketers must manage the database and should test or measure the responsiveness of customers to certain database sales strategies.

– Lead scoring

Most Commonly UsedSales Strategies

• Telemarketing

• Direct mail

• Personal selling

Characteristics of Direct Mail

• Direct mail is targeted.

• It is personal.

• It is measurable.

• It is testable.

• It is flexible.

Developing the Direct-Mail Offer

• Differentiating the product to be offered from other products offered

• Offering options or variations of the product to fit the price considerations and abilities of the marketplace

• Providing an attractive range of benefits or exclusivity

(continued)

Developing the Direct-Mail Offer (continued)

• Using discounts, sales, refunds, coupons, premium items, and other incentives to enhance the perceived value of the offer

• Offering flexible payment or deferred payment terms

• Offering a money-back guarantee

E-Mail Marketing

• Many of the principles of direct-mail marketing can be applied to e-mail marketing.

• E-mail and mobile marketing can be precisely targeted and can show great ROI if used well.

Direct Mail Can Be More Than an Offer

• Good sport marketers use direct-mail marketing for more than soliciting product.

• They also use it to enhance the relationship with consumers:

(continued)

Direct Mail Can Be More Than an Offer (continued)

– Regular method of communication to keep the customer informed

– Soliciting input, opinions, and feedback through questionnaires, surveys, and chat rooms

– Showing accountability and expanding the knowledge of the consumer with an annual report

– Thank-you correspondence

– Delivering invitations to special events and opportunities

Personal Selling

• “Face-to-face selling is the art of convincing, the use of learnable techniques to close a transaction, and the application of basic rules to show a prospect or customer that you have something he or she needs.” (Breighner, 1995)

• Rules for effective personal selling include the following:

(continued)B. Breighner, Face-to-Face Selling (Indianapolis, IN: Park Avenue, 1995), x.

Personal Selling (continued)

– Use data-based marketing.

– Let it be known that you are in sales and what you are selling.

– Overcome objections and perceived barriers.

– Manage the conversation by being an effective listener.

– Employ consultative selling.

– Build around strengths of product and service.

– Match the consumer with the appropriate product.

– Follow up. (continued)

Innovative Selling Strategies

• Education can sell the fan base.

• Remember your packaging.

• Remember that fun is good.

• Couponing is not just for groceries and fast food.

• Remember the profitability and effect of group sales.

Pricing

• Price is a critical element in the marketing mix for a number of reasons.

– Prices can be readily changed.

– In certain market conditions, price is one of the most effective tools.

– Price is highly visible.

– Price is never far from the consumer’s mind.

Value

• Value is the quantitative measure of the worth of the product.

• Satisfaction = Benefit − Cost

(continued)

Value (continued)

• Price does not equal cost.

– Travel

– Parking or public transportation

– Concessions

– Souvenirs

– Service charge or handling fees

Yield Management

• Employing a variety of pricing strategies to ensure that the product, particularly tickets, can be purchased by the broadest range of potential buyers.

• Yield management includes not only pricing but also packaging of tickets to ensure the highest yield on the sale of the product.

(continued)

Yield Management (continued)

• Organizational buy-in.

• Understand the marketplace.

• Data, data, data.

• Understand the secondary market.

• Understand implications.

• Remember the fans.

Secondary Market

• Many consumers purchase tickets through secondary sources (not the team) because those sources offer a variety of prices, all usually less than those of the team, which has a higher cost of doing business.

• Some season-ticket buyers resell their tickets in the secondary market to offset costs or make money, which can be a critical factor in the decision to purchase season tickets in the first place.

Aftermarketing Defined

• Relationship after all the marketing and sales efforts have been completed, a purchase has been made, and the prospect has become a customer.

• Thus, the relationship changes to one of support and sustainability.

Customer Lifetime Value (CLTV)

• Formula that helps a marketing manager arrive at the monetary value associated with the long-term relationship of any given customer, revealing both the cost and the net worth of that relationship over time.

– Season-ticket holder should be viewed not as a $4,000 annual spend but as someone who could spend at least that amount every year for the next 20 years ($80,000).

Figure 8.6

Aftermarketing

• The more valuable the customer is, the more effort the staff must devote and expend to retain that customer.

• Many sport organizations employ retention teams to service current customers and build relationships with them.

(continued)

Aftermarketing (continued)

• The cost of acquiring new customers far outweighs the cost of retaining current ones.

• To retain customers long term, sport marketers should offer them benefits that meet their needs.

(continued)

Aftermarketing (continued)

• The integral aspects of sport consumer retention are satisfaction, utilization, and enjoyment of the product purchased.

• Sport organization should continually strive to improve the fan experience.

– Edu-selling

– Technology

(continued)

Aftermarketing (continued)

• Customer service and retention programs should encompass the following:

– Offer customized or personalized customer contact and treatment

– Conduct regular customer satisfaction surveys or audits

– Create and sponsor special events or activities for preferred customers

(continued)

Aftermarketing (continued)

– Maintain a database of current customers and defectors

– Create a website with special content and features for members

– Produce a newsletter and distribute that content on a regular basis

– Offer frequency incentive programs

(continued)

Aftermarketing (continued)

– Conduct stakeholder meetings or luncheons to gather feedback

– Create special members-only events to demonstrate and show appreciation

– Provide special access to players and other organizational assets that are not available to the public