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ChapterChapterChapterChapter

The Product Is Sports

and Entertainment

7

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7.2 Recruiting Athletes and7.2 Recruiting Athletes andEntertainersEntertainers

7.3 Customized Entertainment7.3 Customized Entertainment7.4 Product Marketing Strategies7.4 Product Marketing Strategies

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Winning Strategies

Brad Pitt has used his fame to drawattention to those in need.

Fame and Fortune Used to Benefit Those

in Real Need

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Chapter 7Slide 2

children with AIDS in Africa the plight of Haitian children

global poverty conditions

helped sponsor architectural competition torebuild part of New Orleans

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Lesson 7.1

The Product Mix

Goals Define product mix, product extension,

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Chapter 7Slide 3

. List and describe the components of

the product mix.

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Terms

product mix

product extensions

product enhancements

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Chapter 7Slide 4

product line brand

trademark

licensed brand

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WHAT IS A PRODUCT MIX?

tangible parts physical features that can be seen and felt

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Chapter 7Slide 5

the nonphysical service features

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the total assorted features associated with theproduct

brand name

various products offered under the brand

product packaging

product mix

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Chapter 7Slide 6

product extensions items added to a product to make it more

attractive to the target market

guarantees

warranties

instructional CDs

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Basic vs. Enhanced Product

product enhancements features added to the basic product that

satisf additional needs and wants with the

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Chapter 7Slide 7

same purchase add value to the product and may increase

the purchase price

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Provide three examples of a productenhancement.

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Chapter 7Slide 8

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PRODUCT MIX COMPONENTS

Product mix includes product line,packaging, and brand development.

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Product Line

product line a group of similar products with slight

variations to satisf the different needs of

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Chapter 7Slide 10

consumers

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Packaging

Product packaging components toconsider include

ease of use

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Chapter 7Slide 11

safety

accessibility

environmental friendliness

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Brand brand

the name, symbol, word, design, or combination ofthese elements that identifies a product, service, orcompany

trademark

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the legal protection of words and symbols used bya company

licensed brand

a well-known name and/or symbol established byone company and sold for use by anothercompany

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nonrecognition rejection

The five stages of brand recognition are

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preference

insistence

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What are the components of the productmix?

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Lesson 7.2

Recruiting Athletes andEntertainers

Goals

Define the bottom line for sports.

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Explain the high cost of sports andentertainment events.

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Terms

blue-chip athletes

NCAA

frin e benefits

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THE BOTTOM LINE FORSPORTS

blue-chip athletes excellent athletes

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qualities on and off the field

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The bottom line for business is profit.Winning teams generate profit.

The bottom line for sports is winning.

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NCAA Regulations

NCAA a voluntary organization through which the

nation’s colle es and universities overn

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their athletics programs

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Compensation for Athletes?

Athletes receive scholarships andgrants for their college education.

After signing with an agent, a college

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athlete can no longer participate incollege sports.

In some states, proposals have been

brought to the legislature to pay collegeathletes.

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What is the bottom line for sports and

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 business?

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THE COST OF SUCCESS

Success requires skilled coaches

-

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popular entertainers

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Attracting and KeepingCoaches

The best coaches can commandannual salaries in excess of $1 million.

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incentives received in addition to basesalary

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Attracting and Keeping StarAthletes

Competition for top athletes is fierce. Recruiters compete with professional

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.

Recruiters need a well refined salesand marketing effort to attract talent to

their schools.

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The Price for Top Musiciansand Other Entertainers

Popular performers can attract largeenough crowds to make an eventrofitable.

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Popular celebrities help increase theadvertising revenue of their televisionshows.

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Marketing Women’s Sports

In recent years, women’s sports havegrown in popularity.

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,

receive far less pay.

Creative marketers may develop new

products to appeal to females who arerelatively new sports fans.

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Why is it important for young, talented,

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-trustworthy agents to represent them?

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Lesson 7.3

Customized Entertainment

Goals Define customizing.

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r yBoomers on the entertainment industry.

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Terms

customizing

impromptu

tierin

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Slide 29

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CUSTOMIZING PRODUCTS

customizing changing a product to fit the needs or wants

of a articular market

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spontaneous and changing

impromptu

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Local TV American Style

Although local programming is lessexpensive to produce, it has fallen outof favor with ma or networks.

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Because hosts of locally produced TVshows had such a large impact onchildren, parents requested that hosts not

Children’s Programming

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endorse products. Advertisers lost interest in sponsoring locally

produced children’s shows.

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Excessive salaries of sports figures havehelped drive up the costs of television

coverage of sporting events.

tiering

Sports Programming

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Chapter 7

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specific sports programs will be offeredoutside the basic cable or satellite package

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Public TV and Radio

Public TV and Radio are viewer- andlistener-supported.

ro rammin is tailored to local audiences

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Why is different TV programming shown

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n eren c es or reg ons o e n eStates?

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MARKETING TO BABYBOOMERS

Baby Boomers, born between 1946 and1964, are one of the best-known marketse ments.

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Boomers Won’t Retire

Baby Boomers have the discretionaryincome to pay for the products andservices the desire.

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Slide 38

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Entertaining the Boomers

Baby Boomers are increasing theirmovie attendance.

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Slide 40

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Understanding All Parts of theGroup

Through 2002, Baby Boomers willcontinue to be a major target ofentertainment marketin .

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Chapter 7

Slide 41

As the Boomer group is so large,marketing messages need to bedeveloped for specific subgroups ofBoomers.

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Why are Baby Boomers important to

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en er a nmen mar e ers

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Lesson 7.4

Product Marketing Strategies

Goals List and describe the stages of the

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Chapter 7

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.

Explain how products are positioned inthe marketplace.

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Terms

product life cycle

skimming price strategy

enetration rice strate

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positioning

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THE PRODUCT LIFE CYCLE

product life cycle introduction, growth, maturity, and decline

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Introduction Stage

introduction stage product is a novelty

only one brand of product is available

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Chapter 7

Slide 46

skimming price strategy introduces new products at a very high price

penetration price strategy

uses low pricing to help capture a largemarket share early

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Growth Stage

second part of product life cycle

target market purchases the product

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Chapter 7

Slide 47

advertising focuses on customersatisfaction

competition increases

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The Maturity Stage

third stage of product life cycle

sales are level or slowing down

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sales prices often offered to hold offcompetition

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The Decline Stage sales decrease

alternatives include

drop a product

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sell/license

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regionalize modernize/alter

recommit

discount

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What are the stages of the product life

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POSITIONING A PRODUCT positioning

used by a company to differentiate itsproducts or services from its competitors’

roducts or services

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Slide 52

status, price, or brand recognition

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List three ways a product may be

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.

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PERFORMANCE INDICATORS

EVALUATED Communicate the goals of the state fair.

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Chapter 7

Slide 54

repare an a rac ve ocumen a ncorpora es

the latest desktop publishing technology.

Create an original, appealing newsletter toincrease awareness and attendance at the state

fair.

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Select graphics and fonts that appeal to the

Understand the comprehensive nature of

this project and its purpose.

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Chapter 7

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u .

Produce a final product that indicates aclear thought process and an intended,planned direction with formulation andexecution of a firm idea.

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THINK CRITICALLY

1. Why does the state fair need multipleforms of publicity to increaseattendance?

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2. What promotional item could beincluded in your desktop publishingdocument to help increase the

attendance at the state fair?

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4. What types of graphics would be

3. How can the state fair measure the

effectiveness of your publication?

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Chapter 7

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appropriate for this publication? Why?