Product Decisions in Sports Marketing Chapter 7 Product

Product Decisions in Sports Marketing Chapter 7

Product l First Variable in the Traditional Marketing Mix l Our Primary Focus is now Directed towards the Product-Based Domain Ø Marketing Strategies of Sports Products Using Traditional

The Product Variable l What the Marketer Is Attempting to Sell to Its Customers Ø Products Can Be Tangible Goods or Intangible Services (or an Idea) ü ü ü Good – Burton Snowboard Service – Lift Ticket for Whistler Ski Resort Idea – Play 60

Basic Product Concepts l Augmented Product – Basic Benefit l Ancillary Components – Additional Benefits l Total Product – The Augmented Product Combined with the Ancillary Components

Product Assortment l Array of Products Offered by the Marketer l Periodic Assessment of the Assortment ü ü ü Maintain Status Quo Modify Existing Products in the Assortment Product Extension Introduce New Products Product Deletion

Sports Products l Spectator Sports l Participation Sports l SASS – (Sporting Goods, Apparel, Athletic Shoes, and Sports -Related Products)

Spectator Sports l Live Audience l Media-Based Audience ü ü TV Radio Internet Mobile Technology

Spectator Sports Product l Product ü Access ü The May Be Represented by: to an Event (Tickets) Competition on the Field of Play ü Access to the Event via an Electronic Medium

Participation Sports l Organized Team Sports – Softball League l Informal Team Sports – Pickup Soccer l Individual Sports – Tennis, Jogging l Other Leisure Activities – Fishing, Poker

3 Key Reasons for Participation l Personal Improvement l Appreciation l Social of the Sport Interaction

SASS l Sporting Goods – Spalding Basketball l Apparel – Canterbury Rugby Shirt l Athletic Shoes – Nike Le. Bron X ($270) l Sports-Related Products – Golf Lesson

Selling Sports Products l Represents Two Domains of the Sports Marketing Environment Matrix ü Traditional Strategies �Product-Based ü Sports-Sponsorship Based �Sports-Based

Strategic Initiatives – the Core Product for Spectator Sports The 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

Modification of the Core Product l Done ü ü ü to Increase Appeal to Fans Speed the Pace of Play Increase Scoring Enhance Competition l Typical ü ü Core Modifications Changes in the Rules Changes in Enforcement of Rules by Officials

Examples of Changes to the Core Product l NASCAR – Race for the Cup - point system l NHL – 3 -on-3 Overtime and Shootout l NFL – Enforcing Helmet-to-Helmet rules l MLB – Using Instant Replay for Most Calls l NCAA Men’s Basketball – Shortened Shot Clock

Considerations for Changes to the Core Product (1) l Should Have Positive Economic Consequences ü Increased ü Larger Attendance Media-Based Audiences

Considerations for Changes to the Core Product (2) l Should Not be Made on the Basis of Implications for the Media Ø Often Are Changed for Media, but Need to be Positioned as Advantages for the Fans ü 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

Considerations for Changes to the Core Product (3) l Tradition Is a Major Consideration in Changing (or not Changing) a Sport’s Core Product Ø New Leagues Often Use Rule Changes as a Way of Differentiating Their Product Ø Any Changes to the Core Product Will Be Disdained by Many of the Sport’s Fans

Considerations for Changes to the Core Product (4) l Changes to the Core Product are Often Based Upon the Emergence of Competition and Its Impact on the Status Quo Ø When New Rules for New Competitions are Embraced, the Original Product May Be Modified to Suit Fan Preferences NBA Adopted the ABA’s 3 -Point Shot Rule ü NFL Adopted the USFL’s 2 -Point Conversion ü

Considerations for Changes to the Core Product (5) l Core Alterations Will Not Overcome Poor Quality Ø Poor ü XFL § Products Will Not Sell Was Viewed as Poorly Played Football; It Failed in Less than 2 Seasons Despite Innovative Changes to the Core Product

Considerations for Changes to the Core Product (6) l Instead of Changing the Core Product, Consider Changing the Peripheral Product ü The Peripheral Product Represents the Elements Surrounding the Game or Event Over Which the Organization Can Exercise a Reasonable Level of Control

Peripheral Product – Examples l Alternative Entertainment at Venue ü l Incorporation of Technology ü l Carousels, Post-Event Concert or Fireworks Wi. Fi, Virtual Technology on Broadcast Premiums ü Giveaways such as bobblehead dolls, caps

Participation Sports l Two Primary Marketing Tasks Ø Attracting Ø Inducing New Participants Current Participants to Increase the Frequency with which They Choose to Participate

Outcomes from Increased Participation l Impacts Usage for Participation Facilities ü l Impacts Demand for Sporting Goods, etc. ü l Golf Courses; Health Clubs, Tennis Courts Golf Balls, Apparel, Tennis Shoes Impacts Demand for Spectator Sports ü Bowlers are more Likely to be Bowling Fans

Examples of Target Marketing in the Participation Market l Women Snowboarders; Golfers; Football (Gridiron) Players l Kids and 10 -Pin Bowling l Golf Tee Areas Based on Skill Levels l NFL’s Olive Ball in China l Rugby and Cricket in the USA

Target Marketing in the Participation Market

SASS l Sporting Goods l Apparel l Athletic Shoes l Sports-Related Products

Sporting Goods l New Target Markets Require Different Sporting Goods ü l Equipment for Female Softball Players New Participation Sports and Activities Emerge or are Introduced in New Geographic Markets ü ü American (Gridiron) Football in China Cricket in the United States

Sporting Goods l New Spectator Sports Influence Demand for Equipment for New Participants ü l NFL in Europe (NFL-E & Regular Games) Modifications and Improvements to Existing Sporting Goods Products ü Ski, Boot and Binding Designs that Enhance Both Performance and Safety

Apparel l New Styles and Designs for Different Target Markets l Updated Styles, Logos, and Colors l For Participation l For Fashion

Apparel l Demand ü New is Influenced by: Professional Team Uniforms and Logos ü Endorsements by High-Profile Athletes ü Situational Influences such as Winning Team

Athletic Shoes l No Longer Placed in a Single Overall Generic Category of “Tennis Shoes” l Originally Based on Functionality l Every Major Brand Endorsed by Athletes l Function Important – i. e. Different Treads

Athletic Shoes (cont’d) l Part of Everyday Wardrobe Today l Not Just for Athletic Endeavors l More Emphasis on Styles, Fabrics, Colors and Brands l One-to-One Marketing

Sports-Related Products (Some Examples) l Souvenirs (Logo Merchandise) l Media (Magazines, Web Site Access) l Lessons l Nonsports Products at Sports Venues (Food, Beverages, Programs, and Alternative Entertainment Options)

Closing Capsule l Sports Marketing is not Just About “Putting Butts in the Stadium Seats” l Spectator Sports is the Most Commonly Recognized Sports Product l In Selling the Spectator Sports Product, Marketers Must Consider Both the Live and the Media-Based Audiences

Closing Capsule l The Core Product Is Sometimes Altered in an Attempt to Sell the Sport l Care Should be Taken When Modifying the Core Product l Peripheral Products Can Play a Key Role in the Marketing of Spectator Sports

Closing Capsule l Other Sports Products are Important to Sports Marketers as they Seek to: ü Increase Participation ü Sell Sporting Goods ü Sell Apparel ü Sell Athletic Shoes ü Sell an Array of Sports-Related Products