Lesson 4.6
Understanding the Sports & Entertainment Consumer
A. Customer vs. Consumer
1.
The customer is the individual who buys the product or service
2. The consumer is the individual who uses the product or service
a.
Let’s say Frito Lay invests in four club seats at Jacobs Field in Cleveland for their customer
service and sales staff to entertain clients and prospective clients at Major League Baseball games. Frito
Lay is the customer while their staff members and their clients are the consumers.
3. The customer can also be the consumer
a.
John Smith buys four tickets to take his family to see the Yankees play the Red Sox. Because he
bought the tickets, he is considered a customer. Because he used the tickets with his family, he is also
the consumer.
B. Who is the sports and entertainment business consumer?
1.
Marketers sell sports and entertainment participation
a.
It could be participation by event attendance or physical participation in the event itself
2.
Marketers target those consumers with free time, discretionary income, and a desire to be
entertained
C. Who are the sports consumers?
1.
Sports consumers are people who may play, officiate, watch, or listen to sports, or read, use,
purchase, and/or collect items related to sports 32
2.
Could also include: 33
a.
Manufacturers
b.
Resellers
c.
Sports governing bodies
d.
Institutions
e.
Media sports enterprises
D. Sports consumers participate in the exchange process in two ways 34
1. Spectators as consumers
a.
Benefit by watching the event or game
b.
Exchange for tickets and entertainment
2. Participants as consumers
a.
Benefit by playing, competing, or participating in the event
b.
Exchange for equipment and/or participation
Lesson 4.7
Market Research
A. Market research
1.
Market research is the process of systematically collecting, recording, analyzing, and presenting
data related to marketing goods and services 35
a.
Market research provides an opportunity for companies to get to know their customers 36
b.
Marketing research gathers information pertaining to: 37
i.
Consumers
ii.
Competition
iii.
Company
iv.
Culture/climate
2. The information gathered through marketing research is used to: 38
a.
Form links between consumers and companies
b.
Identify and define marketing opportunities and potential challenges
c.
Generate, refine, evaluate and monitor marketing activities
d.
Analyze and understand the company, its industry and its competition
B. Steps in the research process
1. Identify the problem, concern or additional desired information to be gathered
2. Select and design research
a.
Primary research is the original research conducted for a specific marketing situation
i.
Surveys
ii.
Direct mail
iii.
Telephone
iv.
Interviews
v.
Focus groups
1.
In 2010, the Green Bay Packers held several focus groups with
select season
ticket holders to discuss new seating ideas for a
possible Lambeau Field expansion.
According to an article
featured in the Green Bay Post Gazette, focus groups and
surveys are an annual part of the Packers’ effort to meet fan
expectations and better
the game day experience. 39
b.
Conduct secondary research
i.
data)
Secondary research is published data that has been collected for some other purpose (collect
1.
Census reports
2.
Demographic analyses
3.
Trade associations
4.
State agencies
5.
Commercial research firms
c.
Collecting data
i.
A census is a method used for obtaining statistical information that counts every member of a
population
1.
With the 2010 Census results expected to show an increase in the U.S. Hispanic population,
Soccer United Marketing officials also expect to see an increase in the future costs associated with
sponsorship of the Mexican national team 40
ii.
A sample is a method for accumulating statistical information that is only
obtained from a subset of a population
3. Report and analyze
a.
Qualitative research data 41
i.
Typically involves large numbers of respondents, typically 100 or more,
and yields results that are representative of the total population
b.
Quantitative research data 41
i.
Generally gathered in the form of focus groups (groups of six to ten
respondents who carry on a group discussion which is led by a
trained moderator)
ii.
Another common form of qualitative research is in-depth one-on-one or
two-on-one interviews
4. Communicate results of research
C. Examples of market research applications
1. Emerging industry trends
a.
According to a 2008 Nielsen study, gross sales increased by more than 65% for
films exhibited in 3-D (versus traditional film only) as a result of higher prices and
increased attendance 42
b.
According to slashfilm.com, at least 5,000 3-D systems were expected to be in place by 2009
while DreamWorks Animation’s Jeffrey Katzenberg reportedly suggested there will be 12 to 18 3D
feature films by 2010 43
c.
In 2009, the first-ever 3-D advertisement debuted on U.S. movie screens, for
Skittles candy
from Wrigley, and was scheduled to run in the 10 biggest U.S. markets for five weeks on 762 new,
specially-converted 3-D screens 44
d.
In 2009, ESPN announced plans to offer a limited screening of the highly
anticipated
matchup between USC and Ohio State University in 3D during the
2009 college football season.
The announcement came after more than two years of testing and research. 45
i.
“The results of this research will enable ESPN to quantify what it takes to
produce, transmit and enable the 3D experience for our fans," Anthony
Bailey,
vice president of emerging technologies for ESPN, said in a
statement. 45
2.
Additional market research applications explore many additional topics in sports and
entertainment
a.
Sport participation
b.
Violence in sports
c.
Advertising
d.
Media outlets
e.
Viewer and listener ratings
f.
Financing