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CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

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Page 1: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

CHAPTER 4

RESEARCH TOOLS FOR UNDERSTANDING SPORTS

CONSUMERS

Page 2: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

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?

Page 3: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

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

Page 4: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Abbreviated Research Proposal

• PROBLEM STATEMENT• RESEARCH OBJECTIVES• METHODOLOGY

– Sample– Procedures

• DATA COLLECTION INSTRUMENT

Page 5: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

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

Page 6: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

CHAPTER 5

UNDERSTANDING PARTICIPANTS AS

CONSUMERS

Page 7: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

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?

Page 8: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Most Popular Sports

2628

31363638

474951

80

0 20 40 60 80

Basketball

Aerobic Ex

Billiards

Biking

Fishing

Bowling

Swimming

Ex w Equip

Camping

Walking

Millions ofPeopleParticipating atleast once a year

Page 9: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Participant Consumption Behavior

Actions performed when searching for, participating in,

and evaluating the sports activities that consumers feel

will satisfy their needs and desires.

Page 10: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Model of Participant Consumption Behavior

Page 11: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Decision-Making Process

• Problem Recognition• Information Search• Alternative Evaluation• Participate• Post-Participation Evaluation

Page 12: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Psychological Factors

• Personality• Perception• Attitudes• Motivation• Learning

Page 13: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Maslow’s Hierarchy of Needs

Page 14: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Model of Attitude Formation

Page 15: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

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

Page 16: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Sociological Factors

• Culture• Reference Groups• Family• Social Class

Page 17: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Model of Consumer Socialization

Page 18: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

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

Page 20: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

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

Page 21: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

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

Page 22: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Model of SportscapeStadium Access

Facility AestheticsScoreboard Quality

Seating Comfort

Pleasure

Desire to StayRepatronage

Layout AccessibilitySpace Allocation Signage

Perceived Crowding

FactorsAffective Response

Behaviors

Page 23: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

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

Page 24: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

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

Page 25: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

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

Page 26: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

CHAPTER 7

SEGMENTATION, TARGETING, AND POSITIONING

Page 27: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Segmentation - Grouping consumers together with common

needs

Segmentation Bases:• Demographic• Geographic• Psychographic• Benefits• Geodemographic• Behavioral

Page 28: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Segmentation – Modern Family Life Cycle

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Targeting - Evaluating the various segments and selecting the one(s) that promises the best ROMISuccessful Targets Must (Be):• Sizable• Measurable• Reachable• Demonstrate Behavioral Variation

Page 30: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Positioning - Finding a way to fix your product in the minds of

consumersPerceptual Mapping

extremeconservative

high price

low price

Page 31: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

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

Page 32: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Perceptual Map for Sports

Page 33: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

CHAPTER 8

SPORTS PRODUCT CONCEPTS

Page 34: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

CHAPTER 7

SEGMENTATION, TARGETING, AND POSITIONING

Page 35: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Segmentation - Grouping consumers together with common

needs

Segmentation Bases:• Demographic• Geographic• Psychographic• Benefits• Geodemographic• Behavioral

Page 36: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Segmentation – Modern Family Life Cycle

Page 37: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Targeting - Evaluating the various segments and selecting the one(s) that promises the best ROMISuccessful Targets Must (Be):• Sizable• Measurable• Reachable• Demonstrate Behavioral Variation

Page 38: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Positioning - Finding a way to fix your product in the minds of

consumersPerceptual Mapping

extremeconservative

high price

low price

Page 39: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

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

Page 40: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Perceptual Map for Sports

Page 41: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

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.

Page 42: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

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

Page 43: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

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

Page 44: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Product Characteristics

Branding

Product Design

Product Quality

Total Produc

t

Page 45: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

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

Page 46: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

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

Page 47: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Branding Process

Brand Awareness

Brand Image

Brand Equity

Brand Loyalty

Page 48: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Model of Brand Equity

Page 49: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

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)

Page 50: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Sports Product Quality

• Quality of Services• Quality of Goods

Page 51: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

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

Page 53: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

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

Page 54: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Quality of Goods Dimensions

• Performance• Features• Conformity to Specifications• Reliability• Durability• Serviceability• Aesthetic Design

Page 55: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Product Design - Aesthetics, Style and Function of the Product

RELATIONSHIP AMONG PRODUCT DESIGN, TECHNOLOGY, AND PRODUCT QUALITY

Technological Environment

Product Quality

Product Design

Page 56: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

CHAPTER 9

MANAGING SPORTS PRODUCTS

Page 57: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

New Sports Products From the Perspective of the

Organization• New-to-the-World Products• New Product Category Entries• Product Line Extensions• Product Improvements• Repositionings

Page 58: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

New Sports Products From the Perspective of the

Consumer• Discontinuous Innovations• Dynamically Continuous Innovations• Continuous Innovations

Page 59: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

New Product Development Process

• Idea generation• Screening• Business analysis/Concept testing• Development• Test marketing • Commercialization

Page 60: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

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

Page 61: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

New Product Screening ChecklistMarketing 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

Page 62: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Total Industry Sales

Product Life CycleINTRO GROWTH MATURITY DECLINE

TIME

$$

Awareness

Differentiate

Maintain

Eliminate or Extend

Page 63: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Selected Product Life Cycle Patterns

Page 64: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

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

Page 65: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Diffusion of Innovations

Types of Adopters• Innovators• Early Adopters• Early Majority• Late Majority• Laggards

Page 66: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Model of the Rate of Diffusion

Page 67: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

CHAPTER 10

PROMOTION CONCEPTS

Page 68: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Promotional Concepts

• COMMUNICATION - Process of establishing a “oneness” between the sender and receiver

• PROMOTION MANAGEMENT - Focus on the promotional element of the marketing mix

Page 69: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Promotion Mix Elements

• Sales Promotions • Public or Community Relations• Sponsorship• Personal Selling• Advertising

Page 70: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Communications ProcessSource

Receiver

Decoding

Medium

Encoding

Message

Feedback Noise

Page 71: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

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

Page 74: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

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.

Page 76: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

CHAPTER 11

PROMOTION MIX ELEMENTS

Page 77: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Building An Advertising Strategy

MARKETING STRATEGY

AD OBJECTIVES

BUDGETING

CREATIVE DECISIONS

MEDIA STRATEGIES

AD EVALUATION

Page 78: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Ad Objectives(awareness, inform, change attitudes,

purchase)

• INDIRECT OBJECTIVES - ENHANCE CORPORATE IMAGE

• DIRECT OBJECTIVES - STIMULATE DEMAND FOR THE SPORTS PRODUCT

Page 79: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Ad Budgeting

• ALL YOU CAN AFFORD• COMPETITIVE PARITY• PERCENTAGE OF SALES• OBJECTIVE AND TASK

Page 80: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Creative Strategies

• IDENTIFYING THE BENEFITS OF THE SPORTS PRODUCT

• DESIGNING THE AD APPEAL• DEVELOPING THE AD EXECUTION

Page 81: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Designing The Ad Appeal

• Health Appeals• Emotional Appeals• Fear Appeals• Sex Appeals• Pleasure or Fun Appeals

Page 82: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Designing The Ad Execution

• One- or Two-Sided Messages• Comparative Message• Slice-of-Life or Lifestyle Message• Scientific Message• Testimonials

Page 83: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Media Strategy

• SPECIFY THE MEDIA OBJECTIVES (REACH, FREQUENCY, CONTINUITY)

• SELECTING THE MEDIA VEHICLES

Page 84: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Personal Selling: The Strategic Selling

Process• Buying Influences• Red Flags• Response Modes• Win-Results• The Sales Funnel• Ideal Customers

Page 85: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Sales Promotions

• Premiums• Contests and Sweepstakes• Sampling• Point-of-Purchase Displays• Coupons

Page 86: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Public Relations

• Publicity (news releases, press conferences)

• Participation in Community Events• Producing Written Materials (press

guides)• Lobbying

Page 87: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

CHAPTER 12

SPONSORSHIP PROGRAMS

Page 88: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

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

Page 89: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

The Sponsorship ProcessSponsorshipObjective

s

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

Page 91: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

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

Page 92: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Sponsorship Acquisition Model

Page 93: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

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)

Page 94: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

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)

Page 95: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

CHAPTER 13

DISTRIBUTION CONCEPTS

Page 96: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

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

Page 97: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Sports Distribution Issues

• Sports Retailing• Stadium as “Place”• Sports Media

Page 98: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Sports Retailing Mix

• Products• Pricing• Distribution• Promotion

Page 99: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Retail Image/Store Personality

• Factors include (in general):– atmospherics– location– employees/sales personnel– clientele– merchandise assortment– promotional activities

Page 100: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Stadium as “Place”

• New Sports Venues• Ticket Distribution Issues

Page 101: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

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

Page 102: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

CHAPTER 14

PRICING CONCEPTS

Page 103: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

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

Page 104: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Internal and External Determinants of Pricing

Page 105: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

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

Page 106: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Estimating Consumer Demand

• Consumer Tastes• Availability of Substitute Sports

Products• Consumer Income

Page 107: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Price Elasticity of Demand

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Consumer Pricing Evaluation Process

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CHAPTER 15

PRICING STRATEGIES

Page 110: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Pricing Strategies

• Differential Pricing Strategies• New Sports Product Pricing

Strategies• Psychological Pricing Strategies• Product Mix Pricing Strategies• Cost-Based Pricing Strategies

Page 111: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Differential Pricing

• Second Market Discounting

Page 112: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

New Sports Product Pricing

• Penetration Pricing• Price Skimming

Page 113: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Psychological Pricing

• Prestige Pricing• Referent Pricing• Odd-Even Pricing• Traditional Pricing

Page 114: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Product-Mix Pricing

• Bundle Pricing• Captive Pricing• Two-Part Pricing

Page 115: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Cost-Based Pricing

• Cost-Plus Pricing• Target Profit Pricing• Break-Even Pricing

Page 116: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Price Adjustments

• Price Reductions and Price Increases• Price Discounts

Page 117: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

CHAPTER 16

IMPLEMENTING AND CONTROLLING THE STRATEGIC SPORTS

MARKETING PROCESS

Page 118: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

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

Page 119: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Implementation Phase

Page 120: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Strategic Control Issues

• Planning Assumptions Control• Process Control• Contingency Control

Page 121: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

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

Page 122: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

Process Control

• Monitoring Strategic Thrusts• Milestone Review• Financial Analysis

Page 123: CHAPTER 4 RESEARCH TOOLS FOR UNDERSTANDING SPORTS CONSUMERS

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