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16-1
Chapter 16Chapter 16
Product Decisions Product Decisions
in Sports Marketingin Sports Marketing
McGraw-Hill/Irwin ©2007 The McGraw-Hill Companies, All Rights Reserved
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ProductProduct
• First Variable in the Traditional Marketing Mix
• Emphasis Is the Product-Focused Domain
• Marketing of Sports Products Using Traditional Strategies
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The Product VariableThe Product Variable
• What the Marketer Is Attempting to Sell to Its Customers
• Products Can Be Tangible Goods or Intangible Services– Good – Set of Callaway Golf Clubs– Service – Access to St. Andrews Golf Course
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Basic Product ConceptsBasic Product Concepts
• Augmented Product – Basic Benefit
• Ancillary Components – Additional Benefits
• Total Product – The Augmented Product Combined with the Ancillary Components
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Product AssortmentProduct Assortment
• Array of Products Offered by the Marketer
• Periodic Assessment of the Assortment– Maintain Status Quo– Modify Existing Products in Assortment– Product Extension– Introduce New Products– Product Deletion
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Sports ProductsSports Products
• Access to Spectator Sports
• Participation Sports
• Sporting Goods, Apparel, Athletic Shoes, and Sports-Related Products
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Spectator SportsSpectator Sports
• Live Audience
• Media-Based Audience– TV– Radio– Internet
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Spectator Sports ProductSpectator Sports Product
• Product May Be Represented by:
– Access to an Event
– The Competition on the Field of Play
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Participation SportsParticipation Sports
• Organized Team Sports – Softball League
• Informal Team Sports – Pickup Soccer
• Individual Sports – Tennis, Jogging
• Other Leisure Activities – Fishing, Poker
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Reasons for ParticipationReasons for Participation
• Personal Improvement
• Appreciate the Sport
• Social Interaction
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SASSSASS
• Sporting Goods – Spalding Basketball
• Apparel – Canterbury Rugby Shirt
• Athletic Shoes – Nike Air Jordans
• Sports-Related Products – Golf Lesson
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Selling Sports ProductsSelling Sports Products
• Two Domains of the Sports Marketing Environment Matrix
• Traditional Strategies – Product-Focused
• Sponsorship Based – Sports Dominant
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Strategic Initiatives –Strategic Initiatives –Spectator SportsSpectator Sports
• Modifications to the Core Product
• Core Product Is the Game Itself – Whatever Takes Place on the Field of Play, Including the Manner in Which It Is Conducted, the Style and Strategy Employed, and the Interpretation of Understood Laws, Rules, Regulations, and Historical Precedents
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Modification of the Core ProductModification of the Core Product
• Done to Increase Appeal to Fans– Speed the Pace of Play– Increase Scoring– Enhance Competition
• Typical Core Modifications:– Changes in the Rules– Changes in Rules Enforcement by Officials
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Examples of Changes Examples of Changes to Core Productto Core Product
• NASCAR – Race for the Cup
• NHL – Sudden Death and Shootout
• NFL – Clock Stoppage
• MLB – Designated Hitter Rule
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Guidelines for Changes Guidelines for Changes to the Core Productto the Core Product
• Should Have Positive Economic Consequences
– Increased Attendance– Larger Media-Based Audiences
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Guidelines for Changes Guidelines for Changes to the Core Productto the Core Product
• Should Not be Made on the Basis of Implications for the Media
– Often Are Changed for Media, but Needs to be Positioned as an Advantage for the Fans
– NFL Changed Clock Stoppage Rules, in Part, to Speed Up the Game to Complete It in the Three Hour Window Provided by the TV Networks
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Guidelines for Changes Guidelines for Changes to the Core Productto the Core Product
• Tradition Is a Major Consideration in Changing a Sport’s Core Product
– New Leagues Often Use Rules Changes as a Way of Differentiating Their Product
– Any Changes to the Core Product Will Be Disdained by Many of the Sport’s Fans
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Guidelines for Changes Guidelines for Changes to the Core Productto the Core Product
• Core Changes Are Often Based Upon the Emergence of Competition and Its Impact on the Status Quo
– When New Rules for New Competitions Are Embraced, the Original Product May Be Modified to Suit Fan Preferences
• NBA Adopted ABA’s 3-Point Shot Rule• NFL Adopted WFL’s 2-Point Conversion
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Guidelines for Changes Guidelines for Changes to the Core Productto the Core Product
• Core Alterations Will Not Overcome Poor Quality
– Poor Products Will Not Sell
– XFL Was Viewed as Poorly Played Football; Failed in Less Than 2 Seasons Despite Innovative Changes in Rules
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Guidelines for Changes Guidelines for Changes to the Core Productto the Core Product
• Instead of Changing the Core Product, Consider Changes to the Peripheral Product
• The Peripheral Product Represents the Elements Surrounding the Game or Event Over Which the Organization Can Exercise a Reasonable Level of Control
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Peripheral ProductPeripheral Product
• Alternative Entertainment at Venue– Carousels, Post-Event Concert or Fireworks
• Incorporation of Technology– WiFi, Virtual Technology on Broadcast
• Premiums– Giveaways such as bobblehead dolls, caps
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Participation SportsParticipation Sports
• Attracting New Participants
• Inducing Current Participants to Increase the Frequency with which They Choose to Participate
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Increased ParticipationIncreased Participation
• Impacts Usage for Participation Facilities– Golf Courses; Health Clubs, Tennis Courts
• Impacts Demand for Sporting Goods, etc.– Golf Balls, Apparel, Tennis Shoes
• Impacts Demand for Spectator Sports– Bowlers Are more Likely to be Bowling Fans
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Target Marketing Target Marketing in the Participation Marketin the Participation Market
• Women Golfers
• Kids and 10-Pin Bowling
• Golf Tee Areas Based on Skill Levels
• NFL’s Olive Ball in China
• Rugby and Cricket in the USA
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Target Marketing Target Marketing in the Participation Marketin the Participation Market
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SASSSASS
• Sporting Goods, Apparel, Athletic Shoes, and Sports-Related Products
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Sporting GoodsSporting Goods
• New Target Markets Require Different Sporting Goods– Equipment for Female Softball Players
• New Participation Sports and Activities Emerge or Are Introduced in New Geographic Markets– American Football in China
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Sporting GoodsSporting Goods
• New Spectator Sports Influence Demand for Equipment for New Participants– NFL Europe in Germany, Scotland, and the
Netherlands
• Modifications and Improvements to Existing Sporting Goods Products– Ski, Boot and Binding Designs that Enhance
Both Performance and Safety
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ApparelApparel
• For Participation
• For Fashion
• New Styles and Designs for Different Target Markets
• Updated Styles, Logos and Colors
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ApparelApparel
• Demand Influenced by:
– New Professional Team Uniforms and Logos– Endorsements by High-Profile Athletes– Situational Influences such as winning team
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Athletic ShoesAthletic Shoes
• No Longer Placed in a Single Overall Category of “Tennis Shoes”
• Originally Based on Functionality
• Every Brand Endorsed by Athletes
• Function Important – Different Treads
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Athletic ShoesAthletic Shoes
• Part of Everyday Wardrobe Today
• Not Just for Athletic Endeavors
• More Emphasis on Styles, Fabrics, Colors and Brands
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Sports-Related ProductsSports-Related Products(Some Examples)(Some Examples)
• Souvenirs (Logo Merchandise)
• Media (Dedicated TV, Magazines, Web Site Access)
• Nonsports Products at Sports Venues (Food, Beverages, Programs, and Alternative Entertainment Options)
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Closing CapsuleClosing Capsule
• Sports Marketing Is Not Just About Putting Fans in the Stadium Seats
• Spectator Sports Is the Most Commonly Recognized Sports Product
• In Selling the Spectator Sports Product, Marketers Must Consider Both the Live and the Media-Based Audiences
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Closing CapsuleClosing Capsule
• The Core Product Is Sometimes Altered in an Attempt to Sell the Sport
• Care Should be Taken When Modifying the Core Product
• Peripheral Products Can Play an Important Role in the Marketing of Sports
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Closing CapsuleClosing Capsule
• Other Sports Products Are Important to Sports Marketers as They Seek to:
– Increase Participation– Sell apparel– Sell Sporting Goods– Sell Athletic Shoes– Sell an Array of Sports-Related Products