Copyright © 2009 Nelson Education Ltd. All rights reserved. The Sport Product Chapter 6

Copyright © 2009 Nelson Education Ltd. All rights reserved.2 To understand what is meant by a product.To understand what is meant by a product. To appreciate the unique nature of the sport product.To appreciate the unique nature of the sport product. To become acquainted with the various product forms and the elements of product strategy.To become acquainted with the various product forms and the elements of product strategy. OBJECTIVES

Copyright © 2009 Nelson Education Ltd. All rights reserved.3 Most important element of the marketing mix.Most important element of the marketing mix. Central to any definition is assertion that product is something that satisfies a need and that it exists in more than one form – a good, service, idea, person, organization, place, or activity.Central to any definition is assertion that product is something that satisfies a need and that it exists in more than one form – a good, service, idea, person, organization, place, or activity. Tangible vs. intangibleTangible vs. intangible PRODUCT

Copyright © 2009 Nelson Education Ltd. All rights reserved.4 PRODUCT LIFECYCLE INTROGROWTHMATURITYDECLINE 0 Time Sales & Profits (Solomon, Stuart, Carson & Smith 2003)

Copyright © 2009 Nelson Education Ltd. All rights reserved.5 The Sport Product Any good, service, person, place, or idea with tangible or intangible attributes that satisfy consumer sport fitness or recreation needs or desires. SPORT PRODUCT

Copyright © 2009 Nelson Education Ltd. All rights reserved.6 The sport event is viewed as the core product and it is elements of this core that give the sports product its unique nature.The sport event is viewed as the core product and it is elements of this core that give the sports product its unique nature. Intangible and subjective.Intangible and subjective. Inconsistent and unpredictable.Inconsistent and unpredictable. Simultaneously produced and consumed.Simultaneously produced and consumed. WHY IS SPORT SPECIAL?

Copyright © 2009 Nelson Education Ltd. All rights reserved.7 Greater emphasis on product extensions than core product.Greater emphasis on product extensions than core product. Generally consumed in public and so the experience is effected by group dynamics.Generally consumed in public and so the experience is effected by group dynamics. Incomparable emotional attachment and personal identification.Incomparable emotional attachment and personal identification. Sport pervades all elements of life and enjoys an almost universal appeal.Sport pervades all elements of life and enjoys an almost universal appeal. Sport is both a consumer and industrial product.Sport is both a consumer and industrial product. WHY IS SPORT SPECIAL?

Copyright © 2009 Nelson Education Ltd. All rights reserved.8 SPORT PRODUCT FORMS events core products Primary Products leagues primary products clubs teams athletes facilities media merchandise skilled services derivative products expand support

Copyright © 2009 Nelson Education Ltd. All rights reserved.9 Brand the name, logo and other outward symbols that distinguish a product or service from others in its category. Involves:  Brand name  Brand mark  Trademark SPORT BRANDS

Copyright © 2009 Nelson Education Ltd. All rights reserved.10 Brand Equity “a set of liabilities and assets linked to a brand, its name and symbol, that add to or subtract from the value provided by a product or service to a firm and/or to that firms customers.” (Aaker, 1991) “the difference in value between a branded product and its generic equivalent.” (Shank (Shank, 2005) SPORT BRANDS

Copyright © 2009 Nelson Education Ltd. All rights reserved.11 Licensing “a contractual agreement whereby a company (licensee) may use another company's trademark in exchange for a royalty or fee. A branding strategy through licensing allows the organization to authorize the use of brand, brand name, brand mark [or] trademark in conjunction with a good, service, or promotion in return to royalties.” (Shank, 2005, 235) SPORT BRANDS

Copyright © 2009 Nelson Education Ltd. All rights reserved.12 Brand Extensions the use of an already established brand and the loan of a brand from one entity to another. Examples:  Mascots  Team publications  Sports camps and clinics  Merchandise stores  Youth leagues SPORT BRANDS

Copyright © 2009 Nelson Education Ltd. All rights reserved.13 Six keys to successful brand extensions: 1.The strength of the parent brand. 2.Perceived fit between club and extension. 3.Promotional support offered by sport organization to the extension. 4.Quality of the extension product. 5.Distribution strategy. 6.Management of the extension. SPORT BRANDS

Copyright © 2009 Nelson Education Ltd. All rights reserved.14 Since each element of the sport product is interrelated, it is easy to combine the elements to make a full entertainment or participant sport package.Since each element of the sport product is interrelated, it is easy to combine the elements to make a full entertainment or participant sport package.Examples: The day out at a baseball game.The day out at a baseball game. Full service fitness centers.Full service fitness centers. SPORT PACKAGING

Copyright © 2009 Nelson Education Ltd. All rights reserved. Questions?