The Consumer and Sports Products
Economic Impact of Sports Marketing
1
Chapter Objectives
Define the sports consumer.
Explain market segmentation.
Identify sports products.
Explain the differences between sports goods
and services.
Differentiate between the product line and
product mix.
Explain the economic impact of sports
marketing.
2
The Sports Consumer
A purchase by the sports
consumer, as a customer,
is like a vote because the
purchase equals a decision
of approval.
sports consumer:
3
The Sports Consumer
The two categories that affect the sports
consumer’s decision to spend money on or
participate in sports are:
Environmental factors
–
–
–
–
–
Family, friends
Society’s _______________
Cultural differences
Climate and ___________
Marketing influences
Individual factors
–
–
–
–
Self-concept or self-image
____________ characteristics
Learned characteristics
Motivation and ____________
4
Sports Consumers and
Market Segmentation
Understanding market
segmentation of the sports
consumer market is
important in order to sell
products and services.
Geographics
Demographics
Psychographics
Product benefits
market segmentation:
Constantly ________
5
Sports Products
Sports products provide
the consumer with
satisfaction, entertainment,
sociability, and achievement.
sports products:
People who share in the
process of marketing sports
products include owners,
sponsors, communication
firms, city governments,
taxpayers, and consumers.
6
Types of Sports Products
The following sports
products can be classified as
goods or services, or both:
tangible products:
Sporting events
Sports __________
Sports training
Sporting goods
– Tangible products
7
Types of Sports Products
In contrast with sports
products, sports services are
intangible products.
intangible products:
Ten areas of service quality are:
Tangibles
_____________
Responsiveness
_____________
Courtesy
Credibility
Security
____________
Communication
Understanding
8
Types of Sports Products
Sports businesses or
organizations that offer a
variety of products classify
their products by product
line and product mix.
product line:
product mix:
9
Sports Products and
Product Extensions
Sports products differ from typical consumer
products because sports products have the ability
to generate a ___________variety of product
________________.
10
1.
What are four characteristics needed to
analyze the market segmentation of sports
consumers?
2.
How is a purchase by the sports consumer
similar to a vote?
3.
Define product mix.
11
Economic Effects
From the moment the consumer inquires about a
ticket to a sporting event, there is an impact on the
economy.
The local economy improves as a result of money
spent at sporting events.
12
Economic Effects
Each decision the
consumer makes involves
an opportunity cost.
opportunity cost:
Infrastructure:
As the economy grows,
then more infrastructure
is needed to support an
athletic event.
13
Economic Impact of Sports
Ticket
Agent
$
Parking
Garage
$
Food and
Merchandise
$
$
City Pride
________
Sporting
_________
Event
$
$
Infrastructure
$
Sanitation
Taxes
$
The Internet
14
“The Sunshine State”
Orlando, Florida, is the
home of an NBA sports
franchise called the
Orlando Magic.
By selling Orlando Magic
T-shirts, caps, and other
items, investors were able
to convince residents to
make $100 deposits on
season-ticket reservations.
sports franchise:
15
Economic and Marketing
Challenges
The economic and marketing challenges of the
______________ National Basketball Association
are different than those of the National Basketball
Association.
Media _______________ of the WNBA is a major
challenge, despite the fact that the WNBA attracts
millions of spectators and viewers around the world.
16
Grassroots Marketing
Efforts
To gain support, teams
such as the Sparks are
heavily involved in
grassroots marketing.
grassroots marketing:
17
Got Game—and More
The Women’s
Basketball
Operating an e-tail business
on an National
electronic
channel—the
has delivery,
come a long
wayand
in a
Web—can be costly,Association
due to design,
returns,
operating expenses.few years since April ______ when it
was first formed.
Many larger
companies
crashed
the in
ByThough
2001, WNBA
gamesdot-com
had been
seen by 60
millioninfans
1990’s,
smallFostering
stores likethis
Harris
Cyclery
of West
167
countries.
global
audience,
the Newton,
Massachusetts,
actually
increasemany
salesservices
using a for
basic
________.com
Web
site provides
its Web
site. Today, a third of Harris’s bicycle business rides in on
followers:
notices,
playerparts
information,
news,service.
statistics,
the Webdraft
to get
hard-to-find
and personal
standings, game schedules, highlights, a virtual box office,
fantasy
games,
and even anhome
e-tail page
store.to your class after
Describe
an e-business’s
viewing
one throughon
marketingseries.glencoe.com.
For
more information
sports and entertainment marketing,
go to marketingseries.glencoe.com.
18
1.
What is opportunity cost? Give an example.
2.
List six functions of an infrastructure of a
community.
3.
Why is grassroots marketing an important
part of sports marketing?
19
Checking Concepts
1. Describe how a
marketer views a sports
consumer.
2. Name the four
characteristics that need
to be considered when
analyzing the market
segment of sports
consumers.
continued
20
Checking Concepts
3. Describe what happens
when the correct sport
consumer is targeted by
a sports-marketing plan.
4. Identify the sports
product.
5. Explain how sports
goods and sports
services differ.
continued
21
Checking Concepts
6. Compare a product line
and product mix.
7. Define grassroots
marketing.
8. Explain five dimensions
of service quality and
how they apply to a
sports team.
22