3.02 - Marketing Channels and Distribution Decisions In the Sport Industry Distribution Defined Distribution is the ____________________________________________________________________. A Distribution system is the ____________________________________________________________ _____________________________________________________________ from producer to consumer. An Intermediary is an ___________________________________________________________________ ___________________________________________________________________________________ Product Types Sports activities _______________________________________________________________________, bowling, scuba, hiking, ______________________________________, running, ___________________________, sailing, water skiing, __________________, and snow-boarding. The __________________________________________________—to the consumer ________________ such as ____________________, ________________________, ______________________, races, meets, __________________________, outings, and _________________________________________. Sport Business Goods • Sport Business Services: The ____________________________________________________ alone makes up an important part of the sport service industry. • Sports Entertainment: The development of sports as an ____________________________________ _______________________________________of the sport business industry. • Sport Media: Some examples of sport media are _________________________ (print), electronic sports businesses (Web-based businesses), and ___________________________________. The consumers of these can be either end or business consumers. Distribution of Products Tangible products are _____________________________________________. Most are _________________________________________________ at a factory and must be moved— _______________________________—to a ____________________________—________________. For example, running shoes are manufactured in a factory and must be moved to a retailer to be sold. Intangible products are _________________________________________________________________. Shelf Life: amount of ____________________________________________________________________ condition after being manufactured. Time, Place, and Possession Utility Through Distribution Time utility is __________________________________________________________________ Place utility is __________________________________________________________________ it. Possession utility is ___________________________________ of the product for the consumer. The Distribution System Types of Distribution Intermediaries Wholesaler—a company that _____________________________________ specifically ______________ to __________________________________________ (Peter and Donnelly, 1993). • Retailer—a company that _________________________________________________ (Peter and Donnelly, 1993). • E-tailer—an _________________________________________________________________. Agent—a __________________ or a _________________ who “__________________” ________________ (facilitates the sale) by ______________________________ and _____________________________ with the ____________________ (Boone and Kurtz, 1992). • Mail order—a _________________________________________________________ or producer and ______________ ________________________________ through a ________________ or electronic system (Cravens and Woodruff, 1986). • Distributor—a ______________________________________ (Peter and Donnelly, 1993). Complex Distribution System in the Sport Industry The Distribution System (cont’d) Selection of a Distribution System: The ______________________________________________________ in the selection of a distribution system. • A company should _____________________________________________ before making any sort of business decision. • Exclusivity _______________________________________, which in turn ____________________________________. 3.02 Questions 1. What is distribution? 2. Describe the different kinds of distribution in the sport industry. 3. What are distribution intermediaries? Give some examples. 4. What is a distribution system? Give some examples of systems in the sport industry. 5. What are the factors that affect the selection of a distribution system? 6. What is distribution intensity? Why is it linked to promotion and positioning the product? Give some examples of each type. 7. What are some examples of different types of products found in the sport business industry? Develop what you think would be some appropriate distribution channels for these products. Learning Activities 1. List some sport products offered in your city or community. Create a distribution system for each. Research the real costs of your systems. Give a presentation in class. The cable network that televises college basketball games throughout the country is __________ the sports product. A. distributing B. franchising C. publicizing D. sponsoring Rhonda is making a presentation to the chamber of commerce of a large city in anticipation of building a sports complex. What is the primary element of distribution that she should discuss with them? A. Amenities B. Revenues C. Parking D. Facility Expanded bandwidth is changing the face of in-home entertainment by A. eliminating the need for cable hookups. B. allowing for delivery of the Internet through television sets. C. improving fiber optics cable and electrical lines. D. creating high-definition television. Which of the following is a place decision that must be made in sports and entertainment marketing: A. Should direct mail be sent to last season's ticket holders? B. Will local or national media be used? C. How will fans obtain the schedule of events? D. Where will ticket outlets be found?