Chapter 7

advertisement
Chapter 7
The Product Is Sports
and Entertainment
7.1 The Product Mix
7.2 Recruiting Athletes and
Entertainers
7.3 Customized Entertainment
7.4 Product Marketing Strategies
Sports and Entertainment Marketing
© Thomson/South-Western
Winning Strategies
Fame and Fortune Used to Benefit Those
in Real Need
 Brad Pitt has used his fame to draw
attention to those in need.




children with AIDS in Africa
the plight of Haitian children
global poverty conditions
helped sponsor architectural competition to
rebuild part of New Orleans
Chapter 7
Slide 2
Sports and Entertainment Marketing
© Thomson/South-Western
Lesson 7.1
The Product Mix
Goals
 Define product mix, product extension,
and product enhancement.
 List and describe the components of
the product mix.
Chapter 7
Slide 3
Sports and Entertainment Marketing
© Thomson/South-Western
Terms







product mix
product extensions
product enhancements
product line
brand
trademark
licensed brand
Chapter 7
Slide 4
Sports and Entertainment Marketing
© Thomson/South-Western
WHAT IS A PRODUCT MIX?
 tangible parts
 physical features that can be seen and felt
 intangible parts
 the nonphysical service features
Chapter 7
Slide 5
Sports and Entertainment Marketing
© Thomson/South-Western
 product mix
 the total assorted features associated with the
product
 brand name
 various products offered under the brand
 product packaging
 product extensions
 items added to a product to make it more
attractive to the target market
 guarantees
 warranties
 instructional CDs
Chapter 7
Slide 6
Sports and Entertainment Marketing
© Thomson/South-Western
Basic vs. Enhanced Product
 product enhancements
 features added to the basic product that
satisfy additional needs and wants with the
same purchase
 add value to the product and may increase
the purchase price
Chapter 7
Slide 7
Sports and Entertainment Marketing
© Thomson/South-Western
 Provide three examples of a product
enhancement.
Chapter 7
Slide 8
Sports and Entertainment Marketing
© Thomson/South-Western
PRODUCT MIX COMPONENTS
 Product mix includes product line,
packaging, and brand development.
Chapter 7
Slide 9
Sports and Entertainment Marketing
© Thomson/South-Western
Product Line
 product line
 a group of similar products with slight
variations to satisfy the different needs of
consumers
Chapter 7
Slide 10
Sports and Entertainment Marketing
© Thomson/South-Western
Packaging
 Product packaging components to
consider include




Chapter 7
Slide 11
ease of use
safety
accessibility
environmental friendliness
Sports and Entertainment Marketing
© Thomson/South-Western
Brand
 brand
 the name, symbol, word, design, or combination of
these elements that identifies a product, service, or
company
 trademark
 the legal protection of words and symbols used by
a company
 licensed brand
 a well-known name and/or symbol established by
one company and sold for use by another
company
Chapter 7
Slide 12
Sports and Entertainment Marketing
© Thomson/South-Western
 The five stages of brand recognition are





nonrecognition
rejection
recognition
preference
insistence
Chapter 7
Slide 13
Sports and Entertainment Marketing
© Thomson/South-Western
 What are the components of the product
mix?
Chapter 7
Slide 14
Sports and Entertainment Marketing
© Thomson/South-Western
Lesson 7.2
Recruiting Athletes and
Entertainers
Goals
 Define the bottom line for sports.
 Explain the high cost of sports and
entertainment events.
Chapter 7
Slide 15
Sports and Entertainment Marketing
© Thomson/South-Western
Terms
 blue-chip athletes
 NCAA
 fringe benefits
Chapter 7
Slide 16
Sports and Entertainment Marketing
© Thomson/South-Western
THE BOTTOM LINE FOR
SPORTS
 blue-chip athletes
 excellent athletes
 demonstrate good character and leadership
qualities on and off the field
Chapter 7
Slide 17
Sports and Entertainment Marketing
© Thomson/South-Western
 The bottom line for sports is winning.
 The bottom line for business is profit.
 Winning teams generate profit.
Chapter 7
Slide 18
Sports and Entertainment Marketing
© Thomson/South-Western
NCAA Regulations
 NCAA
 a voluntary organization through which the
nation’s colleges and universities govern
their athletics programs
Chapter 7
Slide 19
Sports and Entertainment Marketing
© Thomson/South-Western
Compensation for Athletes?
 Athletes receive scholarships and
grants for their college education.
 After signing with an agent, a college
athlete can no longer participate in
college sports.
 In some states, proposals have been
brought to the legislature to pay college
athletes.
Chapter 7
Slide 20
Sports and Entertainment Marketing
© Thomson/South-Western
 What is the bottom line for sports and
how is it related to the bottom line for
business?
Chapter 7
Slide 21
Sports and Entertainment Marketing
© Thomson/South-Western
THE COST OF SUCCESS
 Success requires
 skilled coaches
 top-notch players
 popular entertainers
Chapter 7
Slide 22
Sports and Entertainment Marketing
© Thomson/South-Western
Attracting and Keeping
Coaches
 The best coaches can command
annual salaries in excess of $1 million.
 fringe benefits
 incentives received in addition to base
salary
Chapter 7
Slide 23
Sports and Entertainment Marketing
© Thomson/South-Western
Attracting and Keeping Star
Athletes
 Competition for top athletes is fierce.
 Recruiters compete with professional
teams as well as with other colleges.
 Recruiters need a well refined sales
and marketing effort to attract talent to
their schools.
Chapter 7
Slide 24
Sports and Entertainment Marketing
© Thomson/South-Western
The Price for Top Musicians
and Other Entertainers
 Popular performers can attract large
enough crowds to make an event
profitable.
 Popular celebrities help increase the
advertising revenue of their television
shows.
Chapter 7
Slide 25
Sports and Entertainment Marketing
© Thomson/South-Western
Marketing Women’s Sports
 In recent years, women’s sports have
grown in popularity.
 Relative to male counterparts, women
receive far less pay.
 Creative marketers may develop new
products to appeal to females who are
relatively new sports fans.
Chapter 7
Slide 26
Sports and Entertainment Marketing
© Thomson/South-Western
 Why is it important for young, talented,
and highly sought-after athletes to hire
trustworthy agents to represent them?
Chapter 7
Slide 27
Sports and Entertainment Marketing
© Thomson/South-Western
Lesson 7.3
Customized Entertainment
Goals
 Define customizing.
 Describe the financial impact of Baby
Boomers on the entertainment industry.
Chapter 7
Slide 28
Sports and Entertainment Marketing
© Thomson/South-Western
Terms
 customizing
 impromptu
 tiering
Chapter 7
Slide 29
Sports and Entertainment Marketing
© Thomson/South-Western
CUSTOMIZING PRODUCTS
 customizing
 changing a product to fit the needs or wants
of a particular market
Chapter 7
Slide 30
Sports and Entertainment Marketing
© Thomson/South-Western
 impromptu
 spontaneous and changing
Chapter 7
Slide 31
Sports and Entertainment Marketing
© Thomson/South-Western
Local TV American Style
 Although local programming is less
expensive to produce, it has fallen out
of favor with major networks.
Chapter 7
Slide 32
Sports and Entertainment Marketing
© Thomson/South-Western
 Children’s Programming
 Because hosts of locally produced TV
shows had such a large impact on
children, parents requested that hosts not
endorse products.
 Advertisers lost interest in sponsoring locally
produced children’s shows.
Chapter 7
Slide 33
Sports and Entertainment Marketing
© Thomson/South-Western
 Sports Programming
 Excessive salaries of sports figures have
helped drive up the costs of television
coverage of sporting events.
 tiering
 specific sports programs will be offered
outside the basic cable or satellite package
Chapter 7
Slide 34
Sports and Entertainment Marketing
© Thomson/South-Western
Public TV and Radio
 Public TV and Radio are viewer- and
listener-supported.
 programming is tailored to local audiences
Chapter 7
Slide 35
Sports and Entertainment Marketing
© Thomson/South-Western
 Why is different TV programming shown
in different cities or regions of the United
States?
Chapter 7
Slide 36
Sports and Entertainment Marketing
© Thomson/South-Western
MARKETING TO BABY
BOOMERS
 Baby Boomers, born between 1946 and
1964, are one of the best-known market
segments.
Chapter 7
Slide 37
Sports and Entertainment Marketing
© Thomson/South-Western
Boomers Won’t Retire
 Baby Boomers have the discretionary
income to pay for the products and
services they desire.
Chapter 7
Slide 38
Sports and Entertainment Marketing
© Thomson/South-Western
Segmenting the Group
 The U.S. population is aging.
 Marketers will need to focus their efforts
on this aging market.
Chapter 7
Slide 39
Sports and Entertainment Marketing
© Thomson/South-Western
Entertaining the Boomers
 Baby Boomers are increasing their
movie attendance.
Chapter 7
Slide 40
Sports and Entertainment Marketing
© Thomson/South-Western
Understanding All Parts of the
Group
 Through 2002, Baby Boomers will
continue to be a major target of
entertainment marketing.
 As the Boomer group is so large,
marketing messages need to be
developed for specific subgroups of
Boomers.
Chapter 7
Slide 41
Sports and Entertainment Marketing
© Thomson/South-Western
 Why are Baby Boomers important to
entertainment marketers?
Chapter 7
Slide 42
Sports and Entertainment Marketing
© Thomson/South-Western
Lesson 7.4
Product Marketing Strategies
Goals
 List and describe the stages of the
product life cycle.
 Explain how products are positioned in
the marketplace.
Chapter 7
Slide 43
Sports and Entertainment Marketing
© Thomson/South-Western
Terms




product life cycle
skimming price strategy
penetration price strategy
positioning
Chapter 7
Slide 44
Sports and Entertainment Marketing
© Thomson/South-Western
THE PRODUCT LIFE CYCLE
 product life cycle
 introduction, growth, maturity, and decline
Chapter 7
Slide 45
Sports and Entertainment Marketing
© Thomson/South-Western
Introduction Stage
 introduction stage
 product is a novelty
 only one brand of product is available
 skimming price strategy
 introduces new products at a very high price
 penetration price strategy
 uses low pricing to help capture a large
market share early
Chapter 7
Slide 46
Sports and Entertainment Marketing
© Thomson/South-Western
Growth Stage
 second part of product life cycle
 target market purchases the product
regularly
 advertising focuses on customer
satisfaction
 competition increases
Chapter 7
Slide 47
Sports and Entertainment Marketing
© Thomson/South-Western
The Maturity Stage
 third stage of product life cycle
 sales are level or slowing down
 marketing costs increase
 sales prices often offered to hold off
competition
Chapter 7
Slide 48
Sports and Entertainment Marketing
© Thomson/South-Western
The Decline Stage
 sales decrease
 alternatives include
 drop a product
 sell/license
Chapter 7
Slide 49
Sports and Entertainment Marketing
© Thomson/South-Western
 discount
 regionalize
 modernize/alter
 recommit
Chapter 7
Slide 50
Sports and Entertainment Marketing
© Thomson/South-Western
 What are the stages of the product life
cycle?
Chapter 7
Slide 51
Sports and Entertainment Marketing
© Thomson/South-Western
POSITIONING A PRODUCT
 positioning
 used by a company to differentiate its
products or services from its competitors’
products or services
 status, price, or brand recognition
Chapter 7
Slide 52
Sports and Entertainment Marketing
© Thomson/South-Western
 List three ways a product may be
positioned in the marketplace.
Chapter 7
Slide 53
Sports and Entertainment Marketing
© Thomson/South-Western
PERFORMANCE INDICATORS
EVALUATED
 Communicate the goals of the state fair.
 Prepare an attractive document that incorporates
the latest desktop publishing technology.
 Create an original, appealing newsletter to
increase awareness and attendance at the state
fair.
Chapter 7
Slide 54
Sports and Entertainment Marketing
© Thomson/South-Western
 Understand the comprehensive nature of
this project and its purpose.
 Select graphics and fonts that appeal to the
intended audience.
 Produce a final product that indicates a
clear thought process and an intended,
planned direction with formulation and
execution of a firm idea.
Chapter 7
Slide 55
Sports and Entertainment Marketing
© Thomson/South-Western
THINK CRITICALLY
1. Why does the state fair need multiple
forms of publicity to increase
attendance?
2. What promotional item could be
included in your desktop publishing
document to help increase the
attendance at the state fair?
Chapter 7
Slide 56
Sports and Entertainment Marketing
© Thomson/South-Western
3. How can the state fair measure the
effectiveness of your publication?
4. What types of graphics would be
appropriate for this publication? Why?
Chapter 7
Slide 57
Sports and Entertainment Marketing
© Thomson/South-Western
Download