14-1 Chapter 14 Product Decisions in Sports Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

14-2Product First Variable in the Traditional Marketing Mix Emphasis is now on the Product-Focused Domain –Marketing of Sports Products Using Traditional Strategies

14-3 The Product Variable What the Marketer Is Attempting to Sell to Its Customers Products Can Be Tangible Goods or Intangible Services –Good – Burton Snowboard –Service – Lift Ticket for Whistler Ski Resort

14-4 Basic Product Concepts Augmented Product – Basic Benefit Ancillary Components – Additional Benefits Total Product – The Augmented Product Combined with the Ancillary Components

14-5 Product Assortment Array of Products Offered by the Marketer Periodic Assessment of the Assortment –Maintain Status Quo –Modify Existing Products in Assortment –Product Extension –Introduce New Products –Product Deletion

14-6 Sports Products Access to Spectator Sports Participation Sports S porting Goods, A pparel, Athletic S hoes, and S ports-Related Products (SASS)

14-7 Spectator Sports Live Audience Media-Based Audience –TV –Radio –Internet –Mobile Technology

14-8 Spectator Sports Product Product May Be Represented by: –Access to an Event –The Competition on the Field of Play

14-9 Participation Sports Organized Team Sports – Softball League Informal Team Sports – Pickup Soccer Individual Sports – Tennis, Jogging Other Leisure Activities – Fishing, Poker

14-10 Key Reasons for Participation Personal Improvement Appreciation of the Sport Social Interaction

14-11SASS S porting Goods – Spalding Basketball A pparel – Canterbury Rugby Shirt Athletic S hoes – Nike Air Jordans S ports-Related Products – Golf Lesson

14-12 Selling Sports Products Two Domains of the Sports Marketing Environment Matrix Traditional Strategies – Product-Focused Sponsorship Based – Sports Dominant

14-13 Strategic Initiatives – the Core Product for Spectator Sports The Core Product Is the Game Itself – Whatever Takes Place on the Field of Play, Including the Manner in Which It Is Conducted, the Style and Strategy Employed, and the Interpretation of Understood Laws, Rules, Regulations, and Historical Precedents

14-14 Modification of the Core Product Done to Increase Appeal to Fans –Speed the Pace of Play –Increase Scoring –Enhance Competition Typical Core Modifications: –Changes in the Rules –Changes in Rules Enforcement by Officials

14-15 Examples of Changes to Core Product NASCAR – Race for the Cup NHL – Sudden Death and Shootout NFL – Clock Stoppage MLB – Using Instant Replay for Some Calls

14-16 Guidelines for Changes to the Core Product Should Have Positive Economic Consequences –Increased Attendance –Larger Media-Based Audiences

14-17 Guidelines for Changes to the Core Product Should Not be Made on the Basis of Implications for the Media –Often Are Changed for Media, but Need to be Positioned as Advantages for the Fans –NFL Changed Clock Stoppage Rules, in Part, to Speed Up the Game to Complete it in the Three Hour Window Provided by the TV Networks

14-18 Guidelines for Changes to the Core Product Tradition Is a Major Consideration in Changing a Sports Core Product –New Leagues Often Use Rules Changes as a Way of Differentiating Their Product –Any Changes to the Core Product Will Be Disdained by Many of the Sports Fans

14-19 Guidelines for Changes to the Core Product Core Changes Are Often Based Upon the Emergence of Competition and Its Impact on the Status Quo –When New Rules for New Competitions Are Embraced, the Original Product May Be Modified to Suit Fan Preferences NBA Adopted the ABAs 3-Point Shot Rule NFL Adopted the USFLs 2-Point Conversion

14-20 Guidelines for Changes to the Core Product Core Alterations Will Not Overcome Poor Quality –Poor Products Will Not Sell –XFL Was Viewed as Poorly Played Football; Failed in Less Than 2 Seasons Despite Innovative Changes to the Core Product

14-21 Guidelines for Changes to the Core Product Instead of Changing the Core Product, Consider Changes to the Peripheral Product –The Peripheral Product Represents the Elements Surrounding the Game or Event Over Which the Organization Can Exercise a Reasonable Level of Control

14-22 Peripheral Product Alternative Entertainment at Venue –Carousels, Post-Event Concert or Fireworks Incorporation of Technology –WiFi, Virtual Technology on Broadcast Premiums –Giveaways such as bobblehead dolls, caps

14-23 Participation Sports Two Primary Marketing Tasks –Attracting New Participants –Inducing Current Participants to Increase the Frequency with which They Choose to Participate

14-24 Outcomes from Increased Participation Impacts Usage for Participation Facilities –Golf Courses; Health Clubs, Tennis Courts Impacts Demand for Sporting Goods, etc. –Golf Balls, Apparel, Tennis Shoes Impacts Demand for Spectator Sports –Bowlers are more Likely to be Bowling Fans

14-25 Examples of Target Marketing in the Participation Market Women Golfers Kids and 10-Pin Bowling Golf Tee Areas Based on Skill Levels NFLs Olive Ball in China Rugby and Cricket in the USA

14-26 Target Marketing in the Participation Market Drop in Figure 14.3 Here

14-27SASS Sporting Goods Apparel Athletic Shoes Sports-Related Products

14-28 Sporting Goods New Target Markets Require Different Sporting Goods –Equipment for Female Softball Players New Participation Sports and Activities Emerge or Are Introduced in New Geographic Markets –American Football in China

14-29 Sporting Goods New Spectator Sports Influence Demand for Equipment for New Participants –NFL in Europe Modifications and Improvements to Existing Sporting Goods Products –Ski, Boot and Binding Designs that Enhance Both Performance and Safety

14-30Apparel For Participation For Fashion New Styles and Designs for Different Target Markets Updated Styles, Logos, and Colors

14-31Apparel Demand is Influenced by: –New Professional Team Uniforms and Logos –Endorsements by High-Profile Athletes –Situational Influences such as Winning Team

14-32 Athletic Shoes No Longer Placed in a Single Overall Generic Category of Tennis Shoes Originally Based on Functionality Every Major Brand Endorsed by Athletes Function Important – i.e. Different Treads

14-33 Athletic Shoes (contd) Part of Everyday Wardrobe Today Not Just for Athletic Endeavors More Emphasis on Styles, Fabrics, Colors and Brands

14-34 Sports-Related Products (Some Examples) Souvenirs (Logo Merchandise) Media (Dedicated TV, Magazines, Web Site Access) Nonsports Products at Sports Venues (Food, Beverages, Programs, and Alternative Entertainment Options)

14-35 Closing Capsule Sports Marketing is not Just About Putting Fans in the Stadium Seats Spectator Sports is the Most Commonly Recognized Sports Product In Selling the Spectator Sports Product, Marketers Must Consider Both the Live and the Media-Based Audiences

14-36 Closing Capsule The Core Product Is Sometimes Altered in an Attempt to Sell the Sport Care Should be Taken When Modifying the Core Product Peripheral Products Can Play a Key Role in the Marketing of Spectator Sports

14-37 Closing Capsule Other Sports Products Are Important to Sports Marketers as They Seek to: –Increase Participation –Sell Apparel –Sell Sporting Goods –Sell Athletic Shoes –Sell an Array of Sports-Related Products