1. 3.06 Employ product-mix strategies to meet customer expectations
SEM II

2. Examples of Merchandising Opportunities for Sports/Events
Licensed sale of merchandise such as apparel and other souvenirs
Signage at the sport/event promoting the sponsor
Stationary signage – does not move
Rotating signage – toggles between advertisers
Virtual signage – appears only on television

3. Risks Associated with Merchandising Opportunities
Logo abuse and counterfeit merchandise
Damage to the event’s reputation, especially if an advertised sponsor goes encountered legal difficulties or declares bankruptcy
Damage to the advertised sponsor’s reputation, especially if the sport/event goes poorly

4. Advantages of Using Branded Merchandise
Development of profitable new product lines
Greater exposure to the market
Enhanced sales
Positive attributes associated with the sport/event
Development of universally identifiable brands (e.g., Nike Swoosh)
Positive attributes of the sports entity transferred to the sponsor
Licensee and/or sponsor attains better brand recognition
Less time and money required to build high levels of brand equity
Higher prices for “official” branded merchandise

5. Disadvantages of Using Branded Merchandise
Possible loss of control over the brand
Expense required to seek out counterfeit merchandise

6. Sources of Merchandising Ideas
Identifying the target audience
Knowing what products have sold well in the past
Identifying target audience’s lifestyle:
Needs-driven consumers: Farthest removed from mainstream culture, unaware of events, seeking only the bare necessities
Outer-directed consumers: Affected by others around them
Belongers: Traditional, conservative, conforming, sentimental, and nostalgic
Emulators: Upwardly mobile, status conscious and competitive
Achievers: Materialistic, self-reliant, geared toward success, driven to preserve their status quo and comfortable lifestyle, likely to purchase high-end merchandise as status symbols

7. Factors Affecting the Choice of Merchandising Options
Planning: Merchandise to be sold in the future must be bought now
Analysis: Customers’ needs must be correctly identified to determine their needs, wants and desires
Acquisition: Who will produce the products
Control: Quality control is necessary as the product will reflect upon the company whose name and logo appear on it

9. Imagine that you are the assistant to the marketing director of your favorite team or performer Create a master list of the goods and services for the event that you could provide the marketing director. Create a visual explaining why you think these good and services are a good fit and what your sales expectations are.