15-1 Chapter 15 Distribution Decisions and Facilities Management in Sports Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

15-2 Distribution (Place) Distribution Is the Second Variable of the Traditional Marketing Mix It Represents Decisions Regarding the Manner in Which Sports Products are Made Available to the Sports Consumer –Spectator Sports –Participation Sports –SASS

15-3 Spectator Sports Live Audience – Those Spectators in Attendance at the Sports Venue Media-Based Audience – Those Who Witness the Event Via Some Electronic Medium –Marketing Objective May Focus on Either or Both of the Two Types of Audiences

15-4 Spectator Sports – the Live Audience Venue Issues –Event Decisions Where Shall Special Events be Staged? In Which Cities Should Teams be Located? –Stadium Decisions Is a New Facility Needed –Where Should the Communitys New Stadium Be? –Single-Purpose or Multipurpose Facility? –How Many Fans Should the Facility Seat? –Timing Decisions When Should a Special Event be Staged?

15-5 Spectator Sports – the Live Audience Ticket Issues (Ticket Distribution Strategy) –Traditional Box Office –Phone Orders –Authorized Ticket Retailers and Brokers –Internet –Secondary Ticket Market

15-6 Spectator Sports – the Live Audience Unaffiliated Ticket Distribution –Not Part of Marketers Own Strategy Unauthorized Resellers –Scalpers (Touts) Who Speculate Internet –Bring Buyer & Seller Together (i.e. eBay)

15-7 Spectator Sports – the Media-Based Audience Television –Free-to-Air (FTA) TV – Major Networks –General Sports Networks – ESPN; Sky Sports –Specific Sport Network – Golf Channel –League Networks – MLB Network (Jan. 2009)

15-8 Spectator Sports – the Media-Based Audience Television (Continued) –Sports Tier – NFL Sunday Ticket on DirecTV –Team-Dedicated Networks – YES Network –College League-Dedicated Networks – Big 10 –Pay-Per-View (PPV) – Boxing Match

15-9 Spectator Sports – the Media-Based Audience Concerns About PPV –Will Prime Events Move from Free-to-Air TV to a PPV Format Exclusively? Super Bowl; Olympics; World Cup of Soccer –Australias Antisiphoning Law Assures FTA Availability of Key Events

15-10 Spectator Sports – the Media-Based Audience Radio –AM –FM –Satellite Sports Tiers

15-11 Spectator Sports – the Media-Based Audience Internet –Free-to-Air Radio Stations with Web Access –Social Networks –Audio Streaming –Video Streaming

15-12 Spectator Sports – the Media-Based Audience Mobile Communications Devices –Cell Phones Emerging as a Key One-to-One Broadcast Medium –PDAs –iPods

15-13 Spectator Sports – the Media-Based Audience Smart Watches –Still a Novelty Movie Theaters (Cinemas) –High definition video; Dolby 5.1 audio Gaining Favor

15-14 Market Development Strategies for a Spectator Sport New Target Markets –New Demographic Group X Games New Emphasis on Female Segment –Broadened Geographic Coverage in Same Countries NHL into New Warm Weather North American Markets Super 14 Adding New Team in Western Australia –New International Target Market Cricket in USA; Gridiron Football in China

15-15 Market Development Strategies Global Competition –Showcase Sport in New Locations NHL Players in Olympics World Baseball Classic NASCAR in Mexico NBAs Basketball Without Borders Possible League Expansion (NBA in Europe?) NFL in London (Regular season – 2 USA teams)

15-16 Market Development Strategies Global Media –World Cup of Soccer 2010 Shown Live on TV in Many Markets –Internet Streaming Makes Small or Emerging Markets Accessible –Satellite Radio

15-17 Participation Sports Drop in Box 15.4 Here

15-18SASS Sporting Goods, Apparel, Athletic Shoes, and Sports-Related Products General Retailing Principles Provide the Framework for the Distribution of SASS

15-19SASS Key Question Concerns the Scope of Distribution in a Given Geographic Area –Intensive Distribution –Selective Distribution –Exclusive Distribution

15-20SASS Role of Nonstore Retailing Direct Response Marketing (DRM)

15-21 Sports-Related Products Sold at the Venue –Optimal Number of Service Outlets –Service in Seating Area

15-22 Facilities Management Complexity Exemplified by Looking at the Array of Activities Schedules for an Arena Drop in Box 15.5 Here

15-23 Tasks Associated with Facilities Management Usage Scheduling Primary Tenant Lease Terms Rental Policy/Rate Determination for Secondary Tenant(s)

15-24 Tasks Associated with Facilities Management Staff Selection and Training Staff Scheduling Box Office Management

15-25 Tasks Associated with Facilities Management Maintenance Levels and Budgeting Risk Management Security

15-26 Tasks Associated with Facilities Management Traffic Control and On-Site Parking Media Facilities Negotiation of Concession and Service Contracts

15-27 Tasks Associated with Facilities Management Vending Considerations General Marketing Sponsorship Compliance

15-28 Closing Capsule If you build it, he will come That Popular Line from the Movie Field of Dreams Does not Truly Explain Most Sports Marketing Efforts An Effective System Must be Implemented in an Effort to Reach Each Target Market

15-29 Closing Capsule Spectator Sports Live Audience –Venue Issues (i.e. Capacity) –Ticket Issues (i.e. Use of Internet) Media-Based Audience –A Broad Array of Options

15-30 Closing Capsule Market Development for Spectator Sports Effort to Grow the Market by Reaching New Target Markets Live and Media-Based Efforts

15-31 Closing Capsule Technology has changed the Landscape for Distribution of the Sports Product There Must Be an Awareness of the Opportunities Presented by the Emergence of the Legal Secondary Ticket Market

15-32 Closing Capsule Participation Sports –Different Types of Facilities –Marketers Need to Balance Supply & Demand SASS –Driven by General Retailing Principles

15-33 Closing Capsule An Important Issue Related to Distribution Involves the Management of a Sports Facility There is an array of activities and decisions that comprise the job of a facility manager Facilities management offers a meaningful career opportunity for the aspiring sports marketing professional