Sports Marketing Final Exam Review Mrs. Massimo

Unit 1 Introduction to Marketing Marketing: The process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals. Marketing: The process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals.

Unit 1 Introduction to Marketing The Marketing Concept: The process of developing, promoting and distributing products or goods and services to satisfy customer needs and wants The Marketing Concept: The process of developing, promoting and distributing products or goods and services to satisfy customer needs and wants Market: Consists of the potential customers with shared needs who have the desire and ability to buy a product Market: Consists of the potential customers with shared needs who have the desire and ability to buy a product The segment of the market you direct your business to The segment of the market you direct your business to

Unit 1 Introduction to Marketing Needs: Basic necessities Needs: Basic necessities Marketing Mix: Marketing Mix: All the tools or activities available to organizations that can be used in meeting the needs of a target market. All the tools or activities available to organizations that can be used in meeting the needs of a target market. Consists of FOUR ELEMENTS (4 P’s): Consists of FOUR ELEMENTS (4 P’s): A combination of the 4 principle marketing strategies A combination of the 4 principle marketing strategies Product Product Price Price Place (or Distribution) Place (or Distribution) Promotion Promotion

Unit 1 Introduction to Marketing Mass Marketing: One key message that is directed to everyone Mass Marketing: One key message that is directed to everyone Demographics: Descriptive characteristics of a market such as age, gender, race, income, occupation and educational level. Demographics: Descriptive characteristics of a market such as age, gender, race, income, occupation and educational level.

Unit 1 Introduction to Marketing The 4 P’s: The 4 P’s: Product -the good or service sold to customers (Tangible or Intangible Ex. Baseball mitt vs. pitching lessons) Product -the good or service sold to customers (Tangible or Intangible Ex. Baseball mitt vs. pitching lessons) Price- The dollar amount the producer charges the consumer Place (or Distribution)-Where the product is sold and how it gets to the consumer Promotion- Any form of advertising, publicity, personal selling or sales uses to persuade people to buy your product The 5 th P: Public Relations The 5 th P: Public Relations (Especially in Sports )- Activities designed to create a positive image for a business, product or player

Unit 1 Introduction to Marketing Consumers: the person who actually uses the product. Consumers: the person who actually uses the product. Customers: someone who is actively looking for a product and may actually purchase it. Customers: someone who is actively looking for a product and may actually purchase it.

Unit 1 Introduction to Marketing Disposable Income: Money left over after paying necessary expenses Disposable Income: Money left over after paying necessary expenses Good : Tangible (can see it, touch it, take it with you) EX. Jersey, football helmet, baseball card Good : Tangible (can see it, touch it, take it with you) EX. Jersey, football helmet, baseball card Service: Intangible (can’t see it, touch it, take it with you) Ex: Pitching lessons, Meet and greet, playoff game Service: Intangible (can’t see it, touch it, take it with you) Ex: Pitching lessons, Meet and greet, playoff game

Unit 1 Introduction to Marketing Requirements to start a new franchise: Requirements to start a new franchise: Must have approval and agreement from  The League  The Owners  The Local Government To maximize profit, cities with teams should have: To maximize profit, cities with teams should have:  Enough hotel rooms and restaurants  Other attractions for tourists  Shopping areas

Unit 1 Introduction to Marketing Target Marketing: Directing your efforts to reach the part of your market that you want to target for your business Target Marketing: Directing your efforts to reach the part of your market that you want to target for your business Secondary Target Market: Would be your 2 nd largest or 2 nd most intriguing group of people. Secondary Target Market: Would be your 2 nd largest or 2 nd most intriguing group of people.

Unit 2 Sport Consumer Behavior Geographics: These are characteristics based on where a market lives and works. Geographics: These are characteristics based on where a market lives and works. Different parts of the country have different needs and wants based on their location. Different parts of the country have different needs and wants based on their location. Demographics: Descriptive characteristics of a market such as age, gender, race, income, and educational level. Demographics: Descriptive characteristics of a market such as age, gender, race, income, and educational level. Psychographics: These are characteristics based on peoples’ values, interests, and lifestyle. Psychographics: These are characteristics based on peoples’ values, interests, and lifestyle. ALL USED TO SEGMENT A MARKET ALL USED TO SEGMENT A MARKET

Unit 2 Sport Consumer Behavior Sport Consumer: The consumer is the client that uses your product or takes advantage of your service. May play, watch or listen to sports. May read, use, purchase and or collect items related to sports Sport Consumer: The consumer is the client that uses your product or takes advantage of your service. May play, watch or listen to sports. May read, use, purchase and or collect items related to sports FANS FANS Athletes/Coaches/Officials Athletes/Coaches/Officials Sport Firms Sport Firms

Consumers involve themselves in sports in 3 ways: Affective Affective Behavioral Behavioral Cognitive Cognitive

Affective Involvement The attitude, feelings and emotions that a consumer has toward an activity or sport. The attitude, feelings and emotions that a consumer has toward an activity or sport.

Behavioral Involvement Includes hands-on activities such as going to a game and rooting for a team or actively participating in a sport. Includes hands-on activities such as going to a game and rooting for a team or actively participating in a sport. Requires large expenditures on sports and sport activities. Requires large expenditures on sports and sport activities. These fans are committed to sports and they are a major part of their lifestyle These fans are committed to sports and they are a major part of their lifestyle

Cognitive Involvement The acquisition of information and knowledge about a sport. The acquisition of information and knowledge about a sport. Magazines, newspapers, internet blogs, game programs, radio, and TV are ways that the cognitive fan can keep up with and learn about a particular sport or the players. Magazines, newspapers, internet blogs, game programs, radio, and TV are ways that the cognitive fan can keep up with and learn about a particular sport or the players.

Unit 2 Sport Consumer Behavior Individual Factors: Individual Factors: SELF CONCEPT SELF CONCEPT STAGE IN THE FAMILY LIFE CYCLE STAGE IN THE FAMILY LIFE CYCLE PHYSICAL CHARACTERISTICS PHYSICAL CHARACTERISTICS MOTIVATION MOTIVATION ATTITUDES ATTITUDES LEARNING OF A SPORT LEARNING OF A SPORT PERCEPTION PERCEPTION

Unit 2 Sport Consumer Behavior External Factors: Environmental Factors Including External Factors: Environmental Factors Including SIGNIFICANT OTHERS-family and friends (as you get older peers have a larger impact) SIGNIFICANT OTHERS-family and friends (as you get older peers have a larger impact) CULTURAL NORMS AND VALUES CULTURAL NORMS AND VALUES CLASS, RACE, GENDER RELATIONS CLASS, RACE, GENDER RELATIONS (Title IX) Present day 1 in 3 girls participate CLIMATIC AND GEOGRAPHIC CONDITIONS CLIMATIC AND GEOGRAPHIC CONDITIONS MARKET BEHAVIOR OF SPORT FIRMS AND ORGANIZATIONS MARKET BEHAVIOR OF SPORT FIRMS AND ORGANIZATIONS

Marketing Research Market Research: Market Research: The systematic gathering, recording and analyzing of data about problems relating to the marketing of goods and services Market Segmentation: Analyzing your market and dividing it into sections based on specific characteristics to create a target market

The Sport Product Product: Physical item –tangible Product: Physical item –tangible Ex. Baseball bat Ex. Baseball bat Sport Service: Consumed at the time of purchase –intangible Sport Service: Consumed at the time of purchase –intangible Ex. Hitting lessons, sport event The core is the event experience composed of four components: Game Type Game Type Players Players Equipment Equipment Venue Venue

The Sport Product Opportunity Cost: The loss of an opportunity that is given up in order to receive something in exchange Opportunity Cost: The loss of an opportunity that is given up in order to receive something in exchange Ex. Go to a game – give up time that could be spent working or studying, give up money that could be saved or spent on something else Ex. Go to a game – give up time that could be spent working or studying, give up money that could be saved or spent on something else

The Sport Product Product Item Product Item One single item: a hockey stick, a golf club Product Line Group of closely related products made/sold by a company Product Line Group of closely related products made/sold by a company Multiple items: Nike’s line of running shoes, Under Armour’s line of cold weather gear

The Sport Product Product Development Process Product Development Process Product Development includes six basic steps: 1)Generation of Ideas - brainstorming 2)Screening of Ideas –feasibility (reality check) 3)Market and Business Analysis –financial aspects of making product, where and how to distribute 4)Development of Product – prototype (first model of the product) 5)Market Testing – offer product for sale to a small group 6)Commercialization--mass production and distribution

The Sport Product Brand: Overall image built using Brand: Overall image built using Name, words, symbols, design that identifies an organization and it’s products Name, words, symbols, design that identifies an organization and it’s products Trademark: Legally identifies a registered brand Trademark: Legally identifies a registered brand

The Sport Product Customizing: Altering a product to fit the particular needs of your customer Customizing: Altering a product to fit the particular needs of your customer Ticket packages, design your own shoes Value: Customers personal satisfaction with product/service/event May depend upon -Convenience -Aesthetics (how it looks) -Cleanliness, comfort, security -Availability-Durability

Unit 5 Sport Pricing Pricing Pricing The central equation for sport pricing in all situations is: Satisfaction=Benefit-Cost The dollar amount the producer charges the consumer. Profit= (Price - Producer Cost)

Unit 5 Sport Pricing Price Skimming: Pricing a product high to see what you can get out of the market Price Skimming: Pricing a product high to see what you can get out of the market (skim off the top) Penetration Pricing: Pricing a product low in order to quickly generate demand Begin by offering low prices to establish a fan base, then slowly increase your prices Penetration Pricing: Pricing a product low in order to quickly generate demand Begin by offering low prices to establish a fan base, then slowly increase your prices Demand Oriented: Pricing goods according to what the customer is willing to pay Demand Oriented: Pricing goods according to what the customer is willing to pay

Unit 5 Sport Pricing Cost Based: Cost Based: Base your prices on your own costs, then determine the profit you desire. then determine the profit you desire. Market Pricing (Going Rate): Market Pricing (Going Rate): Base your prices on what your competitiors are charging  Peak –Load Basing your prices on seasonal demands seasonal demands

Purchasing The marketing function of purchasing involves: The marketing function of purchasing involves: Reviewing inventory Reviewing inventory Purchasing items needed to re-stock Purchasing items needed to re-stock

Unit 6 Sport Promotion To create awareness, inform and influence Internet, TV and Radio are technological advances that have helped to create a multi-billion dollar marketing/advertising industry Internet, TV and Radio are technological advances that have helped to create a multi-billion dollar marketing/advertising industry The Promotional Mix is any combination of advertising, publicity, sales promotion and personal selling The Promotional Mix is any combination of advertising, publicity, sales promotion and personal selling

Unit 6 Sport Promotion Endorsements: Celebrity/Athlete approved support of a product Endorsements: Celebrity/Athlete approved support of a product Wheaties, Campbell’s soup Public Relations: The 5 th P Public Relations: The 5 th P (Especially in Sports )- Activities designed to create a positive image for a business, product or player

Unit 6 Sport Promotion Cross Promotion: Customers of one product or service are targeted with a promotion for a related product Ex. NFL Super Bowl cross promotion Pepsi Competition: The Struggle between companies for customers

Unit 6 Sport Promotion Sales Promotions: Sales Promotions: There are two General Types of Promotions: Price-Oriented Price-Oriented Non Price-Oriented Non Price-Oriented Non Price-Oriented: Non Price-Oriented: Includes special events, giveaway items, and other tangible incentives Includes special events, giveaway items, and other tangible incentives Price-oriented Price-oriented Involves discounting, or making other price-related manipulations. (2 for 1) Involves discounting, or making other price-related manipulations. (2 for 1) Ex. Offering coupons for discounted price on product/service/event Ex. Offering coupons for discounted price on product/service/event

Unit 6 Sport Promotion Publicity: FREE Publicity: FREE Any form of unpaid advertising. Any form of unpaid advertising. Usually some sort of free advertising from a neutral third party. Purpose: Purpose: To draw attention to an event or program. Examples: Examples: Press conference, press release Press conference, press release articles in the local newspaper articles in the local newspaper coverage on TV or radio coverage on TV or radio

Unit 6 Sport Promotion Advertising: Any PAID form of non personal presentation and promotion of ideas, goods, or services by an identified sponsor Advertising: Any PAID form of non personal presentation and promotion of ideas, goods, or services by an identified sponsor Communicate information about attributes and benefits Communicate information about attributes and benefits Develop or change an image Develop or change an image Associate a brand with feelings and emotions Associate a brand with feelings and emotions Precipitate behavior Precipitate behavior

Sport Marketing Matching clients and sponsors Matching clients and sponsors Planning and overseeing marketing projects Planning and overseeing marketing projects Working with the media Working with the media

1. HEAVY USER: includes season ticket holders or luxury box attendees. Goal is to keep them happy. Goal is to keep them happy. 2. MEDIUM USER: attend 10-30% of a team’s home games. May have a partial plan. Goal is to get them to realize they can take the next step. Goal is to get them to realize they can take the next step. 3. LIGHT USER: no established attendance pattern. Attend based on opponent or availability or give away. Goal is to inform them of partial plans or group plans. Goal is to inform them of partial plans or group plans. 4. NON CONSUMER: (non aware, aware, media types) Goal is to inform Goal is to inform