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 like a vote because the purchase equals a decision of approval. 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. market segmentation a way of analyzing a market by specific characteristics to create a target market Geographics Demographics Psychographics Product benefits Constantly shifting 6

Sports Products Sports products provide the consumer with satisfaction, entertainment, sociability, and achievement. sports products the goods, services, ideas, or a combination of those things related to sports that provide satisfaction to a consumer People who share in the process of marketing sports products include owners, sponsors, communication firms, city governments, taxpayers, and consumers. 7

Types of Sports Products The following sports products can be classified as goods or services, or both: tangible products physical goods that offer benefits to the consumer Sporting events Sports information Sports training Sporting goods Tangible products 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. 11

How is a purchase by the sports consumer similar to a vote? 1. What are four characteristics needed to analyze the market segmentation of sports consumers? How is a purchase by the sports consumer similar to a vote? Define product mix. 2. Quick Check Answers geographics, demographics, psychographics, and product benefits The purchase equals a decision of approval by the consumer. It is the total assortment of products that a sports organization makes or sells. 3. 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. 13

Economic Effects Each decision the consumer makes involves an opportunity cost. 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 As the economy grows, then more infrastructure is needed to support an athletic event. 14

$ Economic Impact of Sports Sporting Event Sporting Event Ticket Agent Parking Garage City Pride Sporting Event Food and Merchandise Infrastructure Sanitation Taxes The Internet 15

“The Sunshine State” Orlando, Florida, is the home of an NBA sports franchise called the Orlando Magic. 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 By selling Orlando Magic T-shirts, caps, and other items, investors were able to convince residents to make $100 deposits on season-ticket reservations. 16

Economic and Marketing Challenges The economic and marketing challenges of the Women’s National Basketball Association are different than those of the National Basketball Association. Media perception of the WNBA is a major challenge, despite the fact that the WNBA attracts millions of spectators and viewers around the world. 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 National Basketball Association has come a long way in a few years since April 1996 when it was first formed. Operating an e-tail business on an electronic channel—the Web—can be costly, due to design, delivery, returns, and operating expenses. Though Many larger dot-com companies crashed in the 1990’s, small stores like Harris Cyclery of West Newton, Massachusetts, actually increase sales using a basic Web site. Today, a third of Harris’s bicycle business rides in on the Web to get hard-to-find parts and personal service. Describe an e-business’s home page to your class after viewing one through marketingseries.glencoe.com. By 2001, WNBA games had been seen by 60 million fans in 167 countries. Fostering this global audience, the WNBA.com Web site provides many services for its followers: draft notices, player information, news, statistics, standings, game schedules, highlights, a virtual box office, fantasy games, and even an e-tail store. For more information on sports and entertainment marketing, go to marketingseries.glencoe.com. 19

What is opportunity cost? Give an example. 1. What is opportunity cost? Give an example. List six functions of an infrastructure of a community. Why is grassroots marketing an important part of sports marketing? 2. Quick Check Answers It is the loss of the opportunity that is passed up in order to receive something in exchange.  Examples will vary. power and water supplies, public transportation, telecommunications, roads, and schools The grassroots marketing concept helps build community support for a team and can benefit the local economy. 3. 20

Checking Concepts 1. Describe how a marketer views a sports consumer. geographics, demographics, psychographics, and product benefits 2. A sports consumer is a person who may play, officiate, watch, or listen to sports, or read, use, purchase 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. 1. Name the four characteristics that need to be considered when analyzing the market segment of sports consumers. 2. Checking Concepts Answers A sports consumer is a person who may play, officiate, watch, or listen to sports, or read, use, purchase 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. geographics, demographics, psychographics, and product benefits continued 21

Checking Concepts Describe what happens when the correct sport consumer is targeted by a sports-marketing plan. 3. The good, service, idea, or combination of those things related to sports that provides satisfaction to a consumer. 4. In sports, services are produced by the players and consumed by the spectators simultaneously; there is no formal channel of distribution. Tangible goods must be produced by a manufacturer and sent to a retailer to sell to the consumer. 5. Targeting the appropriate market maximizes sales; also, it will ultimately benefit the consumer, the athlete, the team, the owner, and the local economy. 3. 4. Identify the sports product. Checking Concepts Answers Targeting the appropriate market maximizes sales; also, it will ultimately benefit the consumer, the athlete, the team, the owner, and the economy. The good, service, idea, or combination of those things related to sports that provides satisfaction to a consumer. In sports, services are produced by the players and consumed by the spectators simultaneously; there is no formal channel of distribution. Tangible goods must be produced by a manufacturer and sent to a retailer to sell to the consumer. Explain how sports goods and sports services differ. 5. continued 22

Checking Concepts Critical Thinking 6. Compare a product line and product mix. A product line is a group of closely related products manufactured and/or sold by a company, while a product mix is the total assortment of products that a sports organization makes and/or sells. 6. The five dimensions of quality include: reliability—perform promised services; assurance—knowledge and courtesy of employees and their ability to convey trust and confidence; empathy—caring, individualized attention for customers; responsiveness—willingness to help customers and provide prompt service; and tangibles—appearance of equipment, materials, and venue. 8. It is marketing activity on a local community level. 7. Define grassroots marketing. 7. Critical Thinking Checking Concepts Answers A product line is a group of closely related products manufactured and/or sold by a company, while a product mix is the total assortment of products that a sports organization makes and/or sells. It is marketing on a local community level. The five dimensions of quality include: reliability—perform promised services; assurance—knowledge and courtesy of employees and their ability to convey trust and confidence; empathy—caring, individualized attention for customers; responsiveness—willingness to help customers and provide prompt service; and tangibles—appearance of equipment, materials, and venue. 8. Explain five dimensions of service quality and how they apply to a sports team. 23

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