Distribution Decisions and Facilities Management in Sports Marketing Chapter 8

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

Spectator Sports Live Audience – Those Spectators in Attendance at the Sports Venue Media-Based Audience – Those Fans Who Witness the Event Via Some Electronic Medium Marketing Objectives May Focus on Either or Both of the Two Types of Audiences Make certain students can differentiate between media-based audience and the media!

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 Community’s New Stadium Be? Single-Purpose or Multipurpose Facility? How Many Fans Should the Facility Seat? Is a Temporary Facility Needed to Fill a Void? Timing Decisions When Should a Special Event be Staged? Should Flexible Scheduling be Used?

Spectator Sports – the Live Audience Ticket Issues (Ticket Distribution Strategy) Traditional Box Office Phone Orders Authorized Ticket Retailers and Brokers Secondary Ticket Market Sometimes Used by Team/Event Organizer Authorized vendors include Ticketmaster, Ticketec (New Zealand), etc. The secondary ticket market (i.e. Stub Hub) has exploded in importance.

Spectator Sports – the Live Audience Mobile & Electronic Ticketing Elimination of Paper Tickets Fee for Paper Tickets Digital Medium for Storing/Providing Ticket Information Credit card, student ID, drivers license, smart phone Seat Locator Printed at Venue Cleveland Cavaliers’ Flash Seats leading way; technology used by other events and even university functions that require ticket for admission – theatrical production, graduation, athletic event are examples.

Spectator Sports – the Live Audience Unaffiliated Ticket Distribution Not Part of Marketer’s Own Strategy Unauthorized Resellers Scalpers (Touts) Who Speculate Internet Bring Buyer & Seller Together (i.e. Craigslist) This reference to the Internet does not include official ticketing agencies who are contractually allowed to sell the tickets – e.g. Ticketmaster.

Spectator Sports – the Media-Based Audience Television Free-to-Air (FTA) TV – Major Networks General Sports Networks – ESPN; Sky Sports Specific Sport Network – Fox Soccer Channel Pro League Networks – MLB; NHL Networks

Spectator Sports – the Media-Based Audience Television (Continued) College League Networks – SEC Sports Tier – NFL Sunday Ticket on DirecTV Team-Dedicated Networks – YES Network College Team-Dedicated Networks – Longhorn Network Pay-Per-View (PPV) – Boxing Match YES Network is associated with the New York Yankees. University Networks have begun to emerge – University of Texas’ Longhorn Network is an example – http://www.businessweek.com/bwdaily/dnflash/content/nov2008/db2008117_998978.htm

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 Australia’s Antisiphoning Law Assures FTA Availability of Key Events European Union (EU) allows for designation of “crown jewels” to be available on FTA TV – like Australia’s antisiphoning law.

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

Spectator Sports – the Media-Based Audience Internet Free-to-Air Radio Stations with Web Access Social Networks Audio Streaming Video Streaming Some of these media are used for unauthorized distribution – for example, YouTube has been used by individuals who posted NFL video.

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

Spectator Sports – the Media-Based Audience Smart Watches Still a Novelty Movie Theaters (Cinemas) High definition video; Dolby 5.1 audio Gaining Favor Finally Smart Watches make a splash……. MSU-Duke NCAA Game was shown free at local Cinema in 2015

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 Rugby Added Another Team in Australia (Melbourne) New International Target Market Cricket in USA; Gridiron Football in China Super Rugby Added Its First Team in Argentina Super 15 Rugby discussed in text is now officially branded as “Super Rugby” with no number attached. This accommodated recent expansions into two new countries – Japan and Argentina. As of 2016, the league features 18 teams in five countries.

Market Development Strategies Global Competition Showcase Sport in New Locations NHL Players in Olympics World Baseball Classic NASCAR in Mexico NBA’s “Basketball Without Borders” Possible League Expansion (NBA in Europe?) NFL in London (Regular season – now 3 Games)

Market Development Strategies Global Media World Cup of Soccer 2014 Shown Live on TV in Many Markets (over 200) Internet Streaming Makes Small or Emerging Markets Accessible Satellite Radio

Participation Sports

SASS Sporting Goods, Apparel, Athletic Shoes, and Sports-Related Products General Retailing Principles Provide the Framework for the Distribution of SASS Stores Sports Venues – D Store at Comerica Park General Retailers – Wal-Mart Non-Store Retailing START+++++

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

SASS Role of Nonstore Retailing Direct Response Marketing (DRM)

Sports-Related Products Sold at the Venue Optimal Number of Service Outlets One Service Point for Each 120 – 150 Fans in Attendance Service in Seating Area Not all sports-related products are sold at a spectator sports venue…

Facilities Management

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

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

Tasks Associated with Facilities Management Maintenance Levels and Budgeting Risk Management Security

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

Tasks Associated with Facilities Management Vending Considerations General Marketing Sponsorship Compliance

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

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

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

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

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

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 Set of Tasks for a Facility Manager Facilities Management Offers a Meaningful Career Opportunity for Aspiring Sports Marketing Professionals