3.06 Employ product-mix strategies to meet customer expectations SEM II

Examples of Merchandising Opportunities for Sports/Events Licensed sale of merchandise such as apparel and other souvenirs Signage at the sport/event promoting the sponsor Stationary signage – does not move Rotating signage – toggles between advertisers Virtual signage – appears only on television

Risks Associated with Merchandising Opportunities Logo abuse and counterfeit merchandise Damage to the event’s reputation, especially if an advertised sponsor goes encountered legal difficulties or declares bankruptcy Damage to the advertised sponsor’s reputation, especially if the sport/event goes poorly

Advantages of Using Branded Merchandise Development of profitable new product lines Greater exposure to the market Enhanced sales Positive attributes associated with the sport/event Development of universally identifiable brands (e.g., Nike Swoosh) Positive attributes of the sports entity transferred to the sponsor Licensee and/or sponsor attains better brand recognition Less time and money required to build high levels of brand equity Higher prices for “official” branded merchandise

Disadvantages of Using Branded Merchandise Possible loss of control over the brand Expense required to seek out counterfeit merchandise

Sources of Merchandising Ideas Identifying the target audience Knowing what products have sold well in the past Identifying target audience’s lifestyle: Needs-driven consumers: Farthest removed from mainstream culture, unaware of events, seeking only the bare necessities Outer-directed consumers: Affected by others around them Belongers: Traditional, conservative, conforming, sentimental, and nostalgic Emulators: Upwardly mobile, status conscious and competitive Achievers: Materialistic, self-reliant, geared toward success, driven to preserve their status quo and comfortable lifestyle, likely to purchase high-end merchandise as status symbols

Factors Affecting the Choice of Merchandising Options Planning: Merchandise to be sold in the future must be bought now Analysis: Customers’ needs must be correctly identified to determine their needs, wants and desires Acquisition: Who will produce the products Control: Quality control is necessary as the product will reflect upon the company whose name and logo appear on it

Imagine that you are the assistant to the marketing director of your favorite team or performer Create a master list of the goods and services for the event that you could provide the marketing director. Create a visual explaining why you think these good and services are a good fit and what your sales expectations are.