Product Mix in Sports and Entertainment Unit 5: Intro to Sports and Entertainment
What is a product in Sports and Entertainment? Broaden definition of product Movie tickets Seats Athletes Teams Events
The Product Mix Product Mix includes Brand name, various products offered under the brand, and the packaging Product extensions are added to product/mix in order to entice consumers Guarantees, warranties
Basic v. Enhanced Product Basic product is the actual physical product Product enhancements are added features that satisfy additional needs and wants
Organizing Product Mix Product Lines A group of similar products offered Slight variations to satisfy consumers in diverse target market
Other Aspects… Product includes Packaging and brand Brand Must be easy to use, appealing Brand
Product Marketing Strategies
Product Positioning Marketing strategies are used in an effort to position products Position is used to differentiate products from competition Price Features/benefits Comparing competition Example: Nike positions using brand and status How? Endorsements
Product Lifecycle As products age it becomes crucial to implement strategies Stages in life cycle Introduction Growth Maturity Decline Stages are determined by sales
Product Lifecycle Introduction Product is new and a novelty Strategies during this stage typically include pricing strategies Skimming: setting prices high initially Example: DVD: 12.96 DVD: $24.96 Penetration Pricing: low prices initially to capture a large audience
Product Lifecycle Growth Sales and profits increase Characterized by: Established target market Increase in advertising Increased competition Everyone wants in on the success Modifying products to maintain growth
Product Lifecycle Maturity Sales level off Marketing costs increase due to increased use of promotions Common marketing strategies during this stage include sales—discounts
Product Lifecycle Decline Sales decrease and decisions must be made Drop the product Sell/License Discount Regionalize Modernize/Alter Recommit
Activity Select one of the following situations with your table: Six Flags over Georgia—dropping a product Massimo—licensing to Target Braves Stadium—modernizing Answer the following questions: What influenced your organization to make this decision? What aspects of the product were changed/dropped? How has this change impacted sales or expected to impact sales?
Customized Products
Customizing Entertainment In entertainment it is vitally important to cater products to target markets Once target market is identified Customize product that fit to the needs and wants of a particular market Even make it impromptu! Spontaneous change based on audience reaction
Customizing Television Majority of product planning for TV takes place in L.A. Local programming decided on a regional level and is a fraction of the cost
Local Television Choices: Children's Programming 7:00 am to 6:00 pm Arthur Sesame Street Daniel the Tiger Clifford Sports Programming Local high school sports Local votes contribute to “game of the week” News Evening Programming PBS shows Downton Abbey Paid Programming Why paid programming?
Tiering Sports Television Cost to produce and broadcast sports television has dramatically increased over the past decade Contracts Athletes Tiering has become a popular way to deal with these increased costs Tiering allows specialized options for consumers outside of basic channel options Example: ESPN