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CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS.

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Presentation on theme: "CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS."— Presentation transcript:

1 CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

2 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?

3 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

4 Abbreviated Research Proposal PROBLEM STATEMENT RESEARCH OBJECTIVES METHODOLOGY –Sample –Procedures DATA COLLECTION INSTRUMENT

5 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

6 CHAPTER 5 UNDERSTANDING PARTICIPANTS AS CONSUMERS

7 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?

8 Most Popular Sports

9 Participant Consumption Behavior Actions performed when searching for, participating in, and evaluating the sports activities that consumers feel will satisfy their needs and desires.

10 Model of Participant Consumption Behavior

11 Decision-Making Process Problem Recognition Information Search Alternative Evaluation Participate Post-Participation Evaluation

12 Psychological Factors Personality Perception Attitudes Motivation Learning

13 Maslow’s Hierarchy of Needs

14 Model of Attitude Formation

15 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

16 Sociological Factors Culture Reference Groups Family Social Class

17 Model of Consumer Socialization

18 CHAPTER 6 UNDERSTANDING SPECTATORS AS CONSUMERS

19 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

20 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

21 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

22 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

23 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

24 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

25 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

26 CHAPTER 7 SEGMENTATION, TARGETING, AND POSITIONING

27 Segmentation - Grouping consumers together with common needs Segmentation Bases: Demographic Geographic Psychographic Benefits Geodemographic Behavioral

28 Segmentation – Modern Family Life Cycle

29 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

30 Positioning - Finding a way to fix your product in the minds of consumers Perceptual Mapping extreme conservative high price low price

31 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

32 Perceptual Map for Sports

33 CHAPTER 8 SPORTS PRODUCT CONCEPTS

34 CHAPTER 7 SEGMENTATION, TARGETING, AND POSITIONING

35 Segmentation - Grouping consumers together with common needs Segmentation Bases: Demographic Geographic Psychographic Benefits Geodemographic Behavioral

36 Segmentation – Modern Family Life Cycle

37 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

38 Positioning - Finding a way to fix your product in the minds of consumers Perceptual Mapping extreme conservative high price low price

39 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

40 Perceptual Map for Sports

41 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.

42 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

43 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

44 Product Characteristics Branding Product Design Product Quality Total Product

45 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

46 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

47 Branding Process Brand Awareness Brand Image Brand Equity Brand Loyalty

48 Model of Brand Equity

49 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)

50 Sports Product Quality Quality of Services Quality of Goods

51 Nature of Service Quality EXPECTED SERVICE LEVELS PERCEIVED SERVICE LEVELS

52 Expected Service Levels Service Promises (ads, price) Word-of-Mouth Past Experience

53 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

54 Quality of Goods Dimensions Performance Features Conformity to Specifications Reliability Durability Serviceability Aesthetic Design

55 Product Design - Aesthetics, Style and Function of the Product RELATIONSHIP AMONG PRODUCT DESIGN, TECHNOLOGY, AND PRODUCT QUALITY Technological Environment Product Quality Product Design

56 CHAPTER 9 MANAGING SPORTS PRODUCTS

57 New Sports Products From the Perspective of the Organization New-to-the-World Products New Product Category Entries Product Line Extensions Product Improvements Repositionings

58 New Sports Products From the Perspective of the Consumer Discontinuous Innovations Dynamically Continuous Innovations Continuous Innovations

59 New Product Development Process Idea generation Screening Business analysis/Concept testing Development Test marketing Commercialization

60 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

61 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

62 Total Industry Sales Product Life Cycle INTROGROWTHMATURITYDECLINE TIME $$ Awareness Differentiate Maintain Eliminate or Extend

63 Selected Product Life Cycle Patterns

64 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

65 Diffusion of Innovations Types of Adopters Innovators Early Adopters Early Majority Late Majority Laggards

66 Model of the Rate of Diffusion

67 CHAPTER 10 PROMOTION CONCEPTS

68 Promotional Concepts COMMUNICATION - Process of establishing a “oneness” between the sender and receiver PROMOTION MANAGEMENT - Focus on the promotional element of the marketing mix

69 Promotion Mix Elements Sales Promotions Public or Community Relations Sponsorship Personal Selling Advertising

70 Communications Process Source Receiver Decoding Medium Encoding Message Feedback Noise

71 Promotion Planning Target market considerations Promotional objectives Establishing promotional budgets Choosing an integrated promotional mix

72 Target Market Considerations Push strategy Pull strategy

73 Promotional Objectives - The Hierarchy of Effects Unawareness Awareness Knowledge Liking Preference Conviction Action

74 Promotional Budgets Arbitrary allocation Competitive parity Percentage of sales Objective and task method

75 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.

76 CHAPTER 11 PROMOTION MIX ELEMENTS

77 Building An Advertising Strategy MARKETING STRATEGY AD OBJECTIVES BUDGETING CREATIVE DECISIONS MEDIA STRATEGIES AD EVALUATION

78 Ad Objectives ( awareness, inform, change attitudes, purchase) INDIRECT OBJECTIVES - ENHANCE CORPORATE IMAGE DIRECT OBJECTIVES - STIMULATE DEMAND FOR THE SPORTS PRODUCT

79 Ad Budgeting ALL YOU CAN AFFORD COMPETITIVE PARITY PERCENTAGE OF SALES OBJECTIVE AND TASK

80 Creative Strategies IDENTIFYING THE BENEFITS OF THE SPORTS PRODUCT DESIGNING THE AD APPEAL DEVELOPING THE AD EXECUTION

81 Designing The Ad Appeal Health Appeals Emotional Appeals Fear Appeals Sex Appeals Pleasure or Fun Appeals

82 Designing The Ad Execution One- or Two-Sided Messages Comparative Message Slice-of-Life or Lifestyle Message Scientific Message Testimonials

83 Media Strategy SPECIFY THE MEDIA OBJECTIVES (REACH, FREQUENCY, CONTINUITY) SELECTING THE MEDIA VEHICLES

84 Personal Selling: The Strategic Selling Process Buying Influences Red Flags Response Modes Win-Results The Sales Funnel Ideal Customers

85 Sales Promotions Premiums Contests and Sweepstakes Sampling Point-of-Purchase Displays Coupons

86 Public Relations Publicity (news releases, press conferences) Participation in Community Events Producing Written Materials (press guides) Lobbying

87 CHAPTER 12 SPONSORSHIP PROGRAMS

88 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

89 The Sponsorship Process SponsorshipO bjectives Sponsorship Budget Sponsorship Acquisition Implementing and Evaluating the Sponsorship

90 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

91 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

92 Sponsorship Acquisition Model

93 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)

94 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)

95 CHAPTER 13 DISTRIBUTION CONCEPTS

96 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

97 Sports Distribution Issues Sports Retailing Stadium as “Place” Sports Media

98 Sports Retailing Mix Products Pricing Distribution Promotion

99 Retail Image/Store Personality Factors include (in general): –atmospherics –location –employees/sales personnel –clientele –merchandise assortment –promotional activities

100 Stadium as “Place” New Sports Venues Ticket Distribution Issues

101 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

102 CHAPTER 14 PRICING CONCEPTS

103 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

104 Internal and External Determinants of Pricing

105 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

106 Estimating Consumer Demand Consumer Tastes Availability of Substitute Sports Products Consumer Income

107 Price Elasticity of Demand

108 Consumer Pricing Evaluation Process

109 CHAPTER 15 PRICING STRATEGIES

110 Pricing Strategies Differential Pricing Strategies New Sports Product Pricing Strategies Psychological Pricing Strategies Product Mix Pricing Strategies Cost-Based Pricing Strategies

111 Differential Pricing Second Market Discounting

112 New Sports Product Pricing Penetration Pricing Price Skimming

113 Psychological Pricing Prestige Pricing Referent Pricing Odd-Even Pricing Traditional Pricing

114 Product-Mix Pricing Bundle Pricing Captive Pricing Two-Part Pricing

115 Cost-Based Pricing Cost-Plus Pricing Target Profit Pricing Break-Even Pricing

116 Price Adjustments Price Reductions and Price Increases Price Discounts

117 CHAPTER 16 IMPLEMENTING AND CONTROLLING THE STRATEGIC SPORTS MARKETING PROCESS

118 Implementation Issues Communications Staffing and Skills Coordination Rewards Information Creativity Budgeting

119 Implementation Phase

120 Strategic Control Issues Planning Assumptions Control Process Control Contingency Control

121 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

122 Process Control Monitoring Strategic Thrusts Milestone Review Financial Analysis

123 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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