Marketing Channels and Distribution Decisions In the Sport Industry 3.02 - Marketing Channels and Distribution Decisions In the Sport Industry

Distribution Defined Distribution is the process of getting the product to the consumer. A Distribution system is the methods and channels used in delivering products from producer to consumer. An Intermediary is an individual or organization through which products move from producer to consumer.

Product Types Sports activities are participation products such as participation in basketball, bowling, scuba, hiking, sky diving, running, weight training, sailing, water skiing, golf, and snow-boarding. The activities are offered—packaged—to the consumer in a number of ways such as leagues, tournaments, championships, races, meets, regattas, outings, and adventure travel packages.

Sport Business Goods • Sport Business Services: The cleaning, repair, and maintenance of sports equipment alone makes up an important part of the sport service industry. • Sports Entertainment: The development of sports as an entertainment product is a fast-growing segment of the sport business industry. • Sport Media: Some examples of sport media are sports magazines (print), electronic sports businesses (Web-based businesses), and industry trade magazines. The consumers of these can be either end or business consumers.

Distribution of Products Tangible products are physical objects. Most are manufactured in mass quantities at a factory and must be moved—distributed—to a place of purchase—retailer or wholesaler. For example, running shoes are manufactured in a factory and must be moved to a retailer to be sold. Intangible products are not physical objects and include products such as services, places, and ideas. Shelf Life: amount of time that a product can remain in a good and consumable condition after being manufactured.

Time, Place, and Possession Utility Through Distribution Time utility is getting the product to the consumer when the consumer wants it. Place utility is getting the product to the consumer where the consumer wants it. Possession utility is creating possession of the product for the consumer.

The Distribution System Types of Distribution Intermediaries • Wholesaler—a company that buys goods in large quantities specifically to resell to retailers or final consumers (Peter and Donnelly, 1993). • Retailer—a company that buys goods to resell to consumers (Peter and Donnelly, 1993). • E-tailer—an electronic retail store.

The Distribution System (cont’d) Types of Distribution Intermediaries • Agent—a person or a company who “moves” products (facilitates the sale) by taking orders for a buyer and placing the order with the producer (Boone and Kurtz, 1992). • Mail order—a company that buys direct from a manufacturer or producer and offersthe products through a catalog or electronic system (Cravens and Woodruff, 1986). • Distributor—a wholesale intermediary (Peter and Donnelly, 1993).

Complex Distribution System in the Sport Industry

The Distribution System (cont’d) • Selection of a Distribution System: The considerations of the consumer should be the deciding factor in the selection of a distribution system. • A company should study what the competitors are doing before making any sort of business decision. • Exclusivity drives up demand, which in turn drives up prices.

3.02 Questions 1. What is distribution? 2. Describe the different kinds of distribution in the sport industry. 3. What are distribution intermediaries? Give some examples. 4. What is a distribution system? Give some examples of systems in the sport industry.

Questions (cont’d) 5. What are the factors that affect the selection of a distribution system? 6. What is distribution intensity? Why is it linked to promotion and positioning the product? Give some examples of each type. 7. What are some examples of different types of products found in the sport business industry? Develop what you think would be some appropriate distribution channels for these products.

Learning Activities 1. List some sport products offered in your city or community. Create a distribution system for each. Research the real costs of your systems. Give a presentation in class.

The cable network that televises college basketball games throughout the country is __________ the sports product. A. distributing B. franchising C. publicizing D. sponsoring

Rhonda is making a presentation to the chamber of commerce of a large city in anticipation of building a sports complex. What is the primary element of distribution that she should discuss with them? A. Amenities B. Revenues C. Parking D. Facility

Expanded bandwidth is changing the face of in-home entertainment by A Expanded bandwidth is changing the face of in-home entertainment by A. eliminating the need for cable hookups. B. allowing for delivery of the Internet through television sets. C. improving fiber optics cable and electrical lines. D. creating high-definition television.

Which of the following is a place decision that must be made in sports and entertainment marketing: A. Should direct mail be sent to last season's ticket holders? B. Will local or national media be used? C. How will fans obtain the schedule of events? D. Where will ticket outlets be found?