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CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS
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Marketing Research: Systematic process of collecting, analyzing, and interpreting data to reduce the risk in decision making What kinds of studies would need to be done in sports marketing? When should the studies be used in the context of the marketing plan? How would the marketing research studies be conducted?
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Marketing Research Process Problem/Opportunity Definition Choosing a Research Design Type Choosing a Data Collection Method Designing a Data Collection Form Choosing a Sampling Technique and Collecting Data Data Analysis Final Report Preparation
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Abbreviated Research Proposal PROBLEM STATEMENT RESEARCH OBJECTIVES METHODOLOGY –Sample –Procedures DATA COLLECTION INSTRUMENT
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Designing A Questionnaire Specify Information Requirements Determine Method of Administration Determine Content of Questions Determine Form of Response Determine Exact Wording of Questions Determine Question Sequence Pretest and Revise if Necessary
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CHAPTER 5 UNDERSTANDING PARTICIPANTS AS CONSUMERS
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Adult Sport Participant Market: General Observations Majority of American adults do not participate in many of the most common sports Numbers conflicting; Surgeon General’s Report (only 15% of adults say that they exercise regularly) Why?
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Most Popular Sports
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Participant Consumption Behavior Actions performed when searching for, participating in, and evaluating the sports activities that consumers feel will satisfy their needs and desires.
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Model of Participant Consumption Behavior
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Decision-Making Process Problem Recognition Information Search Alternative Evaluation Participate Post-Participation Evaluation
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Psychological Factors Personality Perception Attitudes Motivation Learning
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Maslow’s Hierarchy of Needs
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Model of Attitude Formation
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Why Do We Participate? Personal Improvement - Better health, sense of accomplishment, develop positive values, etc. Sport Appreciation - Enjoy the game and competition Social Facilitation - Spend time with others, feel like part of a group
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Sociological Factors Culture Reference Groups Family Social Class
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Model of Consumer Socialization
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CHAPTER 6 UNDERSTANDING SPECTATORS AS CONSUMERS
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Understanding Spectators as Consumers Examining the differences –Sometimes there is overlap, but usually treated as separate and distinct markets –Heavy Participants - More likely to be male, better educated, more minorities, and younger than spectators
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Factors Influencing Attendance Fan Motivation Factors Game Attractiveness Factors Economic Factors Competitive Factors Demographic Factors Stadium Factors Value to the Community Sports Involvement Fan Identification
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Fan Motivation Factors Self-Esteem Enhancement (BIRGing and CORFing behaviors) Diversion from everyday life Entertainment Value Eustress or Positive Stress Economic Value Aesthetic Value Need for Affiliation Family Ties
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Model of Sportscape Stadium Access Facility Aesthetics Scoreboard Quality Seating Comfort Pleasure Desire to Stay Repatronage Layout Accessibility Space Allocation Signage Perceived Crowding Factors Affective Response Behaviors
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Understanding Spectators as Consumers: What do fans value? Reasonably priced parking ($8) and tickets ($25) Adequate parking/access Reasonably priced foods Home team with a winning record Close score Home team star regarded as top 10 player Reasonably priced souvenirs Game that ends in less than three hours Wide variety of snack foods
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Sport Involvement Perceived interest and personal importance of sports to spectators Two dimensions of sport involvement: Importance of Sport and Affect (feelings) High involvement consumers attend more games, consume more sports through media such as newspapers, Internet, magazines, and are more likely to identify sponsors
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Fan Identification Related to sport involvement Defined as the personal commitment and emotional involvement customers have with a sports organization Level of fan identification: Low (social); Medium (focused); High (vested) Why do we want high identification? Higher attendance,decreased price sensitivity, decreased performance-outcome sensitivity
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CHAPTER 7 SEGMENTATION, TARGETING, AND POSITIONING
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Segmentation - Grouping consumers together with common needs Segmentation Bases: Demographic Geographic Psychographic Benefits Geodemographic Behavioral
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Segmentation – Modern Family Life Cycle
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Targeting - Evaluating the various segments and selecting the one(s) that promises the best ROMI Successful Targets Must (Be): Sizable Measurable Reachable Demonstrate Behavioral Variation
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Positioning - Finding a way to fix your product in the minds of consumers Perceptual Mapping extreme conservative high price low price
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Six Attributes of Sports Strength, speed vs. methodical, precise movements Athletes only as participants vs. athletes + recreational participants Skill emphasis on impact with object vs. skill emphasis on body movement Practice primarily alone vs. primarily with others A younger participant in the sport vs. wide age range of participants Less masculine vs. more masculine
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Perceptual Map for Sports
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CHAPTER 8 SPORTS PRODUCT CONCEPTS
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CHAPTER 7 SEGMENTATION, TARGETING, AND POSITIONING
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Segmentation - Grouping consumers together with common needs Segmentation Bases: Demographic Geographic Psychographic Benefits Geodemographic Behavioral
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Segmentation – Modern Family Life Cycle
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Targeting - Evaluating the various segments and selecting the one(s) that promises the best ROMI Successful Targets Must (Be): Sizable Measurable Reachable Demonstrate Behavioral Variation
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Positioning - Finding a way to fix your product in the minds of consumers Perceptual Mapping extreme conservative high price low price
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Six Attributes of Sports Strength, speed vs. methodical, precise movements Athletes only as participants vs. athletes + recreational participants Skill emphasis on impact with object vs. skill emphasis on body movement Practice primarily alone vs. primarily with others A younger participant in the sport vs. wide age range of participants Less masculine vs. more masculine
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Perceptual Map for Sports
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Sports Product Concepts Sports Product - Good, Service or Combination of the two that is designed to provide benefits to a sports spectator, participant, or sponsor.
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Goods and Services as Sports Products (The Good/Service Continuum) Intangibility – cannot be seen, felt, tasted Inseparability – simultaneous production and consumption Heterogeneity – potential for high variability Perishability – cannot be inventoried or saved
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Classification Of Sports Products Product Mix - All the different products and services a firm offers Product Line - Groups of individual products that are closely related in some way Product Item - Any specific version of a product that can be designated as a distinct offering
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Product Characteristics Branding Product Design Product Quality Total Product
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Branding Name,design, symbol, or any combination Broad purpose of branding is for a product to distinguish and differentiate itself from all other products Some great sports names include the Macon Whoopie, Louisiana Ice Gators
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Brand Names What’s in a name? –Easy to say, generates positive feelings and associations –Translatable into a successful logo –Consistent with rest of product lines, city, or organization –Legally and ethically permissible
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Branding Process Brand Awareness Brand Image Brand Equity Brand Loyalty
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Model of Brand Equity
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Licensing Contractual agreement whereby a company may use another company’s branding in exchange for a royalty or fee Booming business (e.g., NBA has 150 licenses) with $13.65 billion NFL (3.6) NBA (2.6) Colleges (2.0) MLB (1.9) NHL (1.2) CAPS (Coalition to Advance the Protection of Sports Logos)
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Sports Product Quality Quality of Services Quality of Goods
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Nature of Service Quality EXPECTED SERVICE LEVELS PERCEIVED SERVICE LEVELS
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Expected Service Levels Service Promises (ads, price) Word-of-Mouth Past Experience
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Perceived Service Levels - Service Quality Dimensions Tangibles – Physical facilities, appearance of personnel, equipment Reliability – Ability to perform the service dependably, accurately, consistently Responsiveness – Willingness to provide prompt service to customers Assurance – Trust, knowledge, and courtesy of employees Empathy – Caring, individualized attention to customers
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Quality of Goods Dimensions Performance Features Conformity to Specifications Reliability Durability Serviceability Aesthetic Design
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Product Design - Aesthetics, Style and Function of the Product RELATIONSHIP AMONG PRODUCT DESIGN, TECHNOLOGY, AND PRODUCT QUALITY Technological Environment Product Quality Product Design
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CHAPTER 9 MANAGING SPORTS PRODUCTS
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New Sports Products From the Perspective of the Organization New-to-the-World Products New Product Category Entries Product Line Extensions Product Improvements Repositionings
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New Sports Products From the Perspective of the Consumer Discontinuous Innovations Dynamically Continuous Innovations Continuous Innovations
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New Product Development Process Idea generation Screening Business analysis/Concept testing Development Test marketing Commercialization
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New Product Screening Checklist General Characteristics of New Product/Service Profit potential Existing and potential competition Size of overall market Level of investment Level of risk
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New Product Screening Checklist Marketing Characteristics of New Product/Service Fit with marketing capabilities Effect on existing products and services Appeal to current consumer markets Existence of differential advantage Impact on image Production Characteristics of New Product/Service Fit with production capabilities Ability to produce at competitive prices Availability of labor and material resources
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Total Industry Sales Product Life Cycle INTROGROWTHMATURITYDECLINE TIME $$ Awareness Differentiate Maintain Eliminate or Extend
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Selected Product Life Cycle Patterns
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Diffusion of Innovations – Rate at which new sports products spread throughout the marketplace Factors influencing the rate of diffusion: New product characteristics Perceived newness of the innovation Nature of the communication network
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Diffusion of Innovations Types of Adopters Innovators Early Adopters Early Majority Late Majority Laggards
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Model of the Rate of Diffusion
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CHAPTER 10 PROMOTION CONCEPTS
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Promotional Concepts COMMUNICATION - Process of establishing a “oneness” between the sender and receiver PROMOTION MANAGEMENT - Focus on the promotional element of the marketing mix
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Promotion Mix Elements Sales Promotions Public or Community Relations Sponsorship Personal Selling Advertising
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Communications Process Source Receiver Decoding Medium Encoding Message Feedback Noise
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Promotion Planning Target market considerations Promotional objectives Establishing promotional budgets Choosing an integrated promotional mix
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Target Market Considerations Push strategy Pull strategy
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Promotional Objectives - The Hierarchy of Effects Unawareness Awareness Knowledge Liking Preference Conviction Action
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Promotional Budgets Arbitrary allocation Competitive parity Percentage of sales Objective and task method
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Integrating the Promotional Mix Integrated Marketing Communications - Concept by which a sports organization carefully integrates and coordinates its many promotional mix elements to deliver a unified message about the organization and its products.
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CHAPTER 11 PROMOTION MIX ELEMENTS
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Building An Advertising Strategy MARKETING STRATEGY AD OBJECTIVES BUDGETING CREATIVE DECISIONS MEDIA STRATEGIES AD EVALUATION
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Ad Objectives ( awareness, inform, change attitudes, purchase) INDIRECT OBJECTIVES - ENHANCE CORPORATE IMAGE DIRECT OBJECTIVES - STIMULATE DEMAND FOR THE SPORTS PRODUCT
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Ad Budgeting ALL YOU CAN AFFORD COMPETITIVE PARITY PERCENTAGE OF SALES OBJECTIVE AND TASK
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Creative Strategies IDENTIFYING THE BENEFITS OF THE SPORTS PRODUCT DESIGNING THE AD APPEAL DEVELOPING THE AD EXECUTION
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Designing The Ad Appeal Health Appeals Emotional Appeals Fear Appeals Sex Appeals Pleasure or Fun Appeals
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Designing The Ad Execution One- or Two-Sided Messages Comparative Message Slice-of-Life or Lifestyle Message Scientific Message Testimonials
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Media Strategy SPECIFY THE MEDIA OBJECTIVES (REACH, FREQUENCY, CONTINUITY) SELECTING THE MEDIA VEHICLES
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Personal Selling: The Strategic Selling Process Buying Influences Red Flags Response Modes Win-Results The Sales Funnel Ideal Customers
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Sales Promotions Premiums Contests and Sweepstakes Sampling Point-of-Purchase Displays Coupons
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Public Relations Publicity (news releases, press conferences) Participation in Community Events Producing Written Materials (press guides) Lobbying
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CHAPTER 12 SPONSORSHIP PROGRAMS
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Sponsorship Investing in a sports entity to support overall organizational objectives and marketing goals IEG estimates in North America $11.19 billion spent on sponsorship and of this $7.69 billion will be spent on sports Not unlike other forms of communication, sponsors must fight the clutter and find the perfect match
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The Sponsorship Process SponsorshipO bjectives Sponsorship Budget Sponsorship Acquisition Implementing and Evaluating the Sponsorship
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Sponsorship Objectives Direct –Sales Increases Indirect –Awareness –Competition (ambush marketing—planned effort to associate themselves with an event – I Love LA) –Reaching Target Markets (allows us to reach consumers where they live and play) –Relationship Building –Image Building
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Sponsorship Budgeting Sample costs of sponsorship –Corporate Box at the United Center$220,000 –Title sponsor of Tot Trot $7500 –Official Supplier for MLB$10 million –Premier League sponsor$15 million Initial costs, but there is maintenance and leveraging
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Sponsorship Acquisition Model
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Sponsorship Acquisition 1) Determine Scope of the Sponsorship (sports event pyramid with global, international, national, regional, and local events) 2) Determine the athletic platform (entity and level of competition)
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Sponsorship Implementation and Evaluation Number of mentions in popular media Media equivalencies Sales figures (pre and post) Attitude change (pre and post) Number of distributors (pre and post)
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CHAPTER 13 DISTRIBUTION CONCEPTS
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Distribution Concepts Ability of consumers to gain access to products in a timely and convenient fashion Moving product from producer to consumer via the various channels of distribution
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Sports Distribution Issues Sports Retailing Stadium as “Place” Sports Media
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Sports Retailing Mix Products Pricing Distribution Promotion
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Retail Image/Store Personality Factors include (in general): –atmospherics –location –employees/sales personnel –clientele –merchandise assortment –promotional activities
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Stadium as “Place” New Sports Venues Ticket Distribution Issues
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Sports Media as Distribution Delivering the Sports Product to Consumers Via Media Rising Cost of Media Rights Media as a Portion of the Revenue Mix New Trends in Sports Media
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CHAPTER 14 PRICING CONCEPTS
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Pricing Concepts Price is a Statement of Value Value = Perceived Benefits Price of Sports Product Essence of pricing is the exchange process - An attempt to quantify the value of what is being exchanged
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Internal and External Determinants of Pricing
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RELATIONSHIP OF PRICE TO SOME OTHER MARKETING MIX ELEMENTS Related to product life cycle Communicates something about the product Promotion geared towards information about price Product lines with different prices attract different segments of consumers
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Estimating Consumer Demand Consumer Tastes Availability of Substitute Sports Products Consumer Income
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Price Elasticity of Demand
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Consumer Pricing Evaluation Process
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CHAPTER 15 PRICING STRATEGIES
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Pricing Strategies Differential Pricing Strategies New Sports Product Pricing Strategies Psychological Pricing Strategies Product Mix Pricing Strategies Cost-Based Pricing Strategies
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Differential Pricing Second Market Discounting
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New Sports Product Pricing Penetration Pricing Price Skimming
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Psychological Pricing Prestige Pricing Referent Pricing Odd-Even Pricing Traditional Pricing
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Product-Mix Pricing Bundle Pricing Captive Pricing Two-Part Pricing
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Cost-Based Pricing Cost-Plus Pricing Target Profit Pricing Break-Even Pricing
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Price Adjustments Price Reductions and Price Increases Price Discounts
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CHAPTER 16 IMPLEMENTING AND CONTROLLING THE STRATEGIC SPORTS MARKETING PROCESS
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Implementation Issues Communications Staffing and Skills Coordination Rewards Information Creativity Budgeting
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Implementation Phase
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Strategic Control Issues Planning Assumptions Control Process Control Contingency Control
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Planning Assumptions Control “Are the premises or assumptions used to develop this marketing plan still valid?” Examine the external environmental factors and the sports industry factors
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Process Control Monitoring Strategic Thrusts Milestone Review Financial Analysis
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Contingency Control “How can we protect our marketing strategy from unexpected events or crises that could affect our ability to pursue the chosen strategic direction?” Developing a Crisis Plan
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