The Consumer and Sports Products
Economic Impact of Sports Marketing
2
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.
3
The Sports Consumer
A purchase by the sports
consumer, as a customer,
is a decision of approval in
an extremely competitive
market.
sports consumer a
person who may play,
officiate, watch, or listen
to sports, or read, use,
purchase, predict,
and/or collect items
related to sports
4
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 attitudes and values
Cultural differences
Climate and region
Marketing influences
Individual factors
–
–
–
–
Self-concept or self-image
Physical characteristics
Learned characteristics
Motivation and attitude
5
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
a way of analyzing a
market by specific
characteristics to create
a target market
(Start video at 2:15)
Constantly shifting
6
Sports Products
Sports products provide
the consumer with
satisfaction, entertainment,
sociability, and achievement.
People who share in the
process of marketing sports
products include owners,
sponsors, communication
firms, city governments,
taxpayers, and consumers.
sports products the
goods, services, ideas,
or a combination of
those things related to
sports that provide
satisfaction to a
consumer
7
Types of Sports Products
The following sports
products can be classified as
goods or services, or both:
Sporting events
Sports information
Sports training
Sporting goods
– Tangible products
=touch
tangible products
physical goods that offer
benefits to the consumer
Figure 4.1
8
Types of Sports Products
In contrast with sports
products, sports services are
intangible products.
intangible products
non-physical services
such as tennis lessons,
personal training, and
sports camp
Ten areas of service quality are:
Tangibles
Reliability
Responsiveness
Competence
Courtesy
Credibility
Security
Access
Communication
Understanding
9
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 a group of
closely related products
manufactured and/or
sold by a company
product mix the total
assortment of products
that a company makes
and/or sells
10
Sports Products and
Product Extensions
Sports products differ from typical consumer
products because sports products have the ability
to generate a greater variety of product extensions.
Super Bowl- Game is the core product
Product extensions can include: programs,
collectibles, videos, apparel, related TV programs,
statistics and highlights, etc
11
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.
12
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.
Byron Nelson
New Sports Franchises
13
Economic Effects
Each decision the
consumer makes involves
an opportunity cost.
As the economy grows,
then more infrastructure
is needed to support an
athletic event.
opportunity cost the
loss of the opportunity
that is passed up in order
to receive something in
exchange
infrastructure the
physical development of
an area, including the
major public systems,
services, and facilities of
a country or region
needed to make a
location function
14
Economic Impact of Sports
Ticket
Agent
$
Parking
Garage
$
Food and
Merchandise
$
$
City Pride
Sporting
Sporting
Event
Event
$
$
Infrastructure
$
Sanitation
Taxes
$
The Internet
15
“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 an
agreement or contract for
a sports organization to
sell a parent company’s
(i.e., a national sports
league) good or service
within a given area
16
Economic and Marketing
Challenges
The economic and marketing challenges of the
Women’s National Basketball Association are
different than those of the NBA.
Media perception and target markets of the WNBA
is different,
– Teams must use different marketing activities and
sponsors.
17
Grassroots Marketing
Efforts
To gain support, teams
such as the Sparks are
heavily involved in
grassroots marketing.
grassroots marketing
marketing activity on a
local community level
18
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 1996 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
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countries.
global
audience,
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actually
increase
using
basic Web
WNBA.com
Web site
provides
manysales
services
fora its
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.
19
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?
20
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
sports consumer is
1. A
2.
geographics,
a
person who may
demographics,
play,
officiate, watch,
psychographics,
or listen to sports, or
and
product
read, use, purchase
benefits
and/or collect items
related to sports. The
sports consumer is
the target of the sports
marketer because the
consumer as a
customer makes
purchases.
21
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
In sports,
services
are
3. The
4.
5.
Targeting
good,
the
service,
produced
appropriate
idea,
or by the
market
players
and sales;
maximizes
combination
of
consumed by the
also,
those
itthings
will related
spectators
ultimately
to
sports that
benefit
simultaneously;
there
the
provides
the
is noconsumer,
formal channel
athlete,
satisfaction
the team,
to a
of distribution.
Tangible
goods
the owner,
consumer.
andmust
the
be
produced
by a
local
economy.
manufacturer and sent
to a retailer to sell to
the consumer.
22
Checking Concepts
6. Compare a product line
and product mix.
7. Define grassroots
marketing.
Critical Thinking
8. Explain five dimensions
of service quality and
how they apply to a
sports team.
The
five dimensions
of
6. A
7.
8.
It is
product
marketing
line
is
a
quality include:
group
activity
ofonclosely
a local
reliability—perform
promised
services;
related
community
products
level.
assurance—knowledge
manufactured
and courtesy of
employees
and
their
and/or
sold
by
a
ability to convey trust
company,
while a
and confidence;
empathy—caring,
product
mix is the
individualized attention
totalforassortment
of
customers;
responsiveness—
products
that a
willingness to help
sports
organization
customers
and provide
prompt
service; and
makes
and/or
sells.
tangibles—appearance
of equipment, materials,
and venue.
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