1. HSES 842 SPORT MARKETING MANAGING SPORTS PRODUCTS

2. TYPES OF NEW PRODUCTS A. New to the world products In-line skating women’s Pro hockey Arena football women’s pro soccer Sky boxes for golf snow boards Sail boards pro sand volleyball

3. B. New Product Category Entries Time Warner (Braves) Fox (Dodgers) Tribune Co. (Cubs) Disney (Angels & Mighty Ducks Golf ball with smaller dimples Liquid sole shoes In-line skates with retractable wheel

4. C. Product Line Extensions Inter-league play in baseball NIKE - new shoes, skates, swim wear, balls NFL - NBA- etc products Pro league fantasy camps

5. D. Product Improvements Air Jordan shoes Many new types of golf hybrid clubs Wilson sledge hammer tennis racket Pro teams trading players Instant replay in pro football Instant replay in college football

6. E. Repositioning of the Product/Service Changing the image of the sport - bowling and billiards moving away from the smoke filled room to a family environment Sport companies trying to fulfill the new needs of the consumers. (cell phones, now we have picture phones, etc)

7. Newness from the consumer’s perspective A. Discontinuous innovations - Sky surfing - sky tennis - balloon walking Bungee jumping Ice climbing Sometimes the lack of knowledge of the rules of these activities keep people from trying them.

8. B. Dynamically continuous innovation Shot clock in basketball 24 second play clock in football Three point shot in college basketball PK in World Cup soccer - shootout in MLS Arena football Titanium head golf clubs Aluminum bats Soft spikes on golf shoes Overtime in hockey - pro/college football

9. C. Continuous innovations Ongoing changes in golf clubs, balls, course designs, tennis racquets, etc Expansion teams in many pro and college sports The new channels of ESPN ESPN regular ESPN 2 ESPN classic ESPN college ES Poker N

10. New Product Development Process A. Idea Generation Market research using demographic information, as well as other factors Suggestions from players - sunglasses Suggestions from coaches - safety issues Pure research from university and other research labs (physiology, biomechanics, as well as technical things like materials)

11. B. Idea Screening What is the relative advantage of the new product? What is the compatibility of the new product with our existing products? How will it fit in with our image, mission, etc.? What is the perceived risk of taking on this new product? What are the economic, social, other risks we may have to deal with?

12. C. Analysis of the sport product concept or potential. Begin market analysis - in KC looking at Arena football Concept testing begins - bringing in Arena games to Kemper to see how the fans will react to this new sport in KC. Consumer evaluations of product/service Estimate sales potential of new product

13. D. Developing the Sports Product A prototype is usually developed to see what it might look like Auto manufacturers use a clay model of the new car to show consumers. Sport arenas are drawn to scale in model form to show fans what the new place might look like. We have never really seen what the addition to Allen Fieldhouse will look like.

14. E. Test Marketing This is usually the final stage of a new product’s success or failure Standardized test market - sold by normal channels Controlled test market - handled by an outside group Simulated test market - very controlled by an outside group

15. F. Commercialization Full scale production takes place

16. Critical Success Factors for New Products A. Product Considerations Trialability - can consumers try it out Observability - can we see the benefits Perceived complexity - it is hard to use Relative advantage - is this better than the old one Compatibility - will it match consumers values and beliefs.

17. B. Other Marketing Mix Considerations Pricing - does the price match the quality Promotion - are consumers aware of the new product, do they understand the benefits of this Distribution - is the product being sold in the right places and in enough places

18. C. Marketing Environment considerations Competition - are there a large number of competitors in the market? Consumer tastes - does the new product reflect a trend in society? Demographics - is the new product being marketed to a segment of the population that is growing?

19. The Product Life Cycle The different phases of the product life cycle are: Introduction Growth Maturity Decline Show the graph of the product life cycle

20. In the product life cycle, the dollar ($) invested are highest during the growth and maturity stages. At the introduction and decline stages, the dollar amounts invested are lower. Industry profits are usually the highest during the maturity phase of the cycle.

21. Ways to extend the product life cycle Develop new uses for products Develop new product features and refinements to existing products Increase the existing market Develop new markets Change the marketing mix (work with the four P’s) Link product to a trend