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2.03 Product Mix
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Merchandising opportunities for sports/events
Clothing Toys Collectibles
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Risks associated with merchandising opportunities
Poor attendance Poor team support Team W/L record Poor year by player Player gets released/traded
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Pros/Cons of using “branded” merchandise
Increase revenue potential Increase brand awareness Increase brand equity Cons Manufacturing quality issues Loss of complete control over brand Possible overproduction of merchandise
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Identify sources of merchandising ideas
Team Merchandising partners Competition (Direct & Indirect) Fans
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Factors affecting the choice of merchandising options
Type of team/event Cost/price Time to market Appropriateness of product
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Determining merchandising opportunities
Type of team/event Popularity of team/event Event facility (indoor/outdoor) Potential partners
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Factors affecting goods and services required for an event
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Goods and services needed for an event
Event goals Event projections (attendance, media) Checklist Participants Fans Employees Sponsors Other
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determine how many goods and services are needed for an event
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Calculate number of goods and services needed for an event
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Bundling/packaging extra amenities with tickets
Increase demand that is normally low Reach fans with different preferences (concessions vs. game experience) Ex: ticket with all-you-can-eat option
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Why not to bundle/package extra amenities with tickets
Higher profits with a la carte prices Ensure access to games for all customers
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Identify effective bundling/packaging ideas
Season tickets Ticket packages Ticket and food Ticket and merchandise
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Describe considerations when bundling/packaging extra amenities with tickets
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Identify agencies/businesses to package with
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Demonstrate procedures for bundling/packaging extra amenities with tickets
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Pre-season booking strategy
Start selling prior to start of season Factor into overall sales goals Take advantage of excitement over new players/coaches
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Describe advantages/disadvantages of pre-season booking strategies
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Info needed to develop a pre-season booking strategy
Sales forecast Revenue goals New (players/coaches/stadium) Season schedule
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Describe factors to negotiate when developing a pre-season booking strategy
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Demonstrate procedures for developing a pre-season booking strategy
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Types of ticket-sales programs
Season tickets Luxury suites/club seating Packaged tickets Single-game tickets Secondary tickets
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The need for a ticket-sales program
Sales goals Season tickets Luxury suites/club seating Daily capacity
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Discuss considerations in developing a ticket-sales program.
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Describe security issues associated with ticket-sales programs.
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Using technology for ticket-sales programs
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Demonstrate procedures for developing a ticket-sales program
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Offering hospitality options
Relationship marketing Value-added for sponsors Reward for employees
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Examples of hospitality options
Party for sponsors/participants Hospitality suite/tent Post-game access to players
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Discuss the impact that the type of event has on the choice of hospitality options
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Considerations in selecting hospitality options
Type of event Number of sponsors Transportation Security
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Demonstrate procedures for selecting hospitality options.
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