Chapter 15
Distribution Decisions
and Facilities
Management
in Sports Marketing
McGraw-Hill/Irwin
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
15-1
Distribution (Place)
• Distribution Is the Second Variable of the
Traditional Marketing Mix
• It Represents Decisions Regarding the
Manner in Which Sports Products are
Made Available to the Sports Consumer
– Spectator Sports
– Participation Sports
– SASS
15-2
Spectator Sports
• Live Audience – Those Spectators in
Attendance at the Sports Venue
• Media-Based Audience – Those Who
Witness the Event Via Some Electronic
Medium
– Marketing Objective May Focus on Either or
Both of the Two Types of Audiences
15-3
Spectator Sports –
the Live Audience
• Venue Issues
– Event Decisions
• Where Shall Special Events be Staged?
• In Which Cities Should Teams be Located?
– Stadium Decisions
• Is a New Facility Needed
– Where Should the Community’s New Stadium Be?
– Single-Purpose or Multipurpose Facility?
– How Many Fans Should the Facility Seat?
– Timing Decisions
• When Should a Special Event be Staged?
15-4
Spectator Sports –
the Live Audience
• Ticket Issues (Ticket Distribution Strategy)
– Traditional Box Office
– Phone Orders
– Authorized Ticket Retailers and Brokers
– Internet
– Secondary Ticket Market
15-5
Spectator Sports –
the Live Audience
• Unaffiliated Ticket Distribution
– Not Part of Marketer’s Own Strategy
• Unauthorized Resellers
– Scalpers (Touts) Who Speculate
• Internet
– Bring Buyer & Seller Together (i.e. eBay)
15-6
Spectator Sports –
the Media-Based Audience
• Television
– Free-to-Air (FTA) TV – Major Networks
– General Sports Networks – ESPN; Sky Sports
– Specific Sport Network – Golf Channel
– League Networks – MLB Network (Jan. 2009)
15-7
Spectator Sports –
the Media-Based Audience
• Television (Continued)
– Sports Tier – NFL Sunday Ticket on DirecTV
– Team-Dedicated Networks – YES Network
– College League-Dedicated Networks – Big 10
– Pay-Per-View (PPV) – Boxing Match
15-8
Spectator Sports –
the Media-Based Audience
• Concerns About PPV
– Will Prime Events Move from Free-to-Air TV
to a PPV Format Exclusively?
• Super Bowl; Olympics; World Cup of Soccer
– Australia’s Antisiphoning Law
• Assures FTA Availability of Key Events
15-9
Spectator Sports –
the Media-Based Audience
• Radio
– AM
– FM
– Satellite
• Sports Tiers
15-10
Spectator Sports –
the Media-Based Audience
• Internet
– Free-to-Air Radio Stations with Web Access
– Social Networks
– Audio Streaming
– Video Streaming
15-11
Spectator Sports –
the Media-Based Audience
• Mobile Communications Devices
– Cell Phones Emerging as a Key One-to-One
Broadcast Medium
– PDAs
– iPods
15-12
Spectator Sports –
the Media-Based Audience
• Smart Watches
– Still a Novelty
• Movie Theaters (Cinemas)
– High definition video; Dolby 5.1 audio
• Gaining Favor
15-13
Market Development Strategies
for a Spectator Sport
• New Target Markets
– New Demographic Group
• X Games New Emphasis on Female Segment
– Broadened Geographic Coverage in Same Countries
• NHL into New Warm Weather North American Markets
• Super 14 Adding New Team in Western Australia
– New International Target Market
• Cricket in USA; Gridiron Football in China
15-14
Market Development Strategies
• Global Competition
– Showcase Sport in New Locations
•
•
•
•
•
•
NHL Players in Olympics
World Baseball Classic
NASCAR in Mexico
NBA’s “Basketball Without Borders”
Possible League Expansion (NBA in Europe?)
NFL in London (Regular season – 2 USA teams)
15-15
Market Development Strategies
• Global Media
– World Cup of Soccer 2010 Shown Live on TV
in Many Markets
– Internet Streaming Makes Small or Emerging
Markets Accessible
– Satellite Radio
15-16
Participation Sports
• Drop in Box 15.4 Here
15-17
SASS
• Sporting Goods, Apparel, Athletic Shoes,
and Sports-Related Products
• General Retailing Principles Provide the
Framework for the Distribution of SASS
15-18
SASS
• Key Question Concerns the Scope of
Distribution in a Given Geographic Area
– Intensive Distribution
– Selective Distribution
– Exclusive Distribution
15-19
SASS
• Role of Nonstore Retailing
• Direct Response Marketing (DRM)
15-20
Sports-Related Products
• Sold at the Venue
– Optimal Number of Service Outlets
– Service in Seating Area
15-21
Facilities Management
• Complexity Exemplified by Looking at the
Array of Activities Schedules for an Arena
• Drop in Box 15.5 Here
15-22
Tasks Associated
with Facilities Management
• Usage Scheduling
• Primary Tenant Lease Terms
• Rental Policy/Rate Determination for
Secondary Tenant(s)
15-23
Tasks Associated
with Facilities Management
• Staff Selection and Training
• Staff Scheduling
• Box Office Management
15-24
Tasks Associated
with Facilities Management
• Maintenance Levels and Budgeting
• Risk Management
• Security
15-25
Tasks Associated
with Facilities Management
• Traffic Control and On-Site Parking
• Media Facilities
• Negotiation of Concession and Service
Contracts
15-26
Tasks Associated
with Facilities Management
• Vending Considerations
• General Marketing
• Sponsorship Compliance
15-27
Closing Capsule
• “If you build it, he will come”
• That Popular Line from the Movie Field of
Dreams Does not Truly Explain Most
Sports Marketing Efforts
• An Effective System Must be Implemented
in an Effort to Reach Each Target Market
15-28
Closing Capsule
• Spectator Sports
• Live Audience
– Venue Issues (i.e. Capacity)
– Ticket Issues (i.e. Use of Internet)
• Media-Based Audience
– A Broad Array of Options
15-29
Closing Capsule
• Market Development for Spectator Sports
• Effort to Grow the Market by Reaching
New Target Markets
• Live and Media-Based Efforts
15-30
Closing Capsule
• Technology has changed the Landscape
for Distribution of the Sports Product
• There Must Be an Awareness of the
Opportunities Presented by the
Emergence of the Legal Secondary Ticket
Market
15-31
Closing Capsule
• Participation Sports
– Different Types of Facilities
– Marketers Need to Balance Supply & Demand
• SASS
– Driven by General Retailing Principles
15-32
Closing Capsule
• An Important Issue Related to Distribution
Involves the Management of a Sports Facility
• There is an array of activities and decisions that
comprise the job of a facility manager
• Facilities management offers a meaningful
career opportunity for the aspiring sports
marketing professional
15-33