3510 Chapter 7 slides - edited

Slide 1: 

The Sport Product

Objectives : 

Objectives To recognize the elements of the sport product that contribute to its uniqueness in the wider marketplace of goods and services To learn the process involved in product development as well as its relation to the concept of the product life cycle To understand product positioning, product image, and product branding and their roles in successful sport marketing

The Sport Product : 

The Sport Product The sport product is any bundle or combination of qualities, processes, and capabilities that a buyer expects will satisfy wants and needs (e.g. live event, rec. tennis club tournament). It is inconsistent in nature. The game itself is only a small part of the ensemble (e.g. Super Bowl). The sport marketer has little control over it. (e.g. Toronto Blue Jays)

The Event Experience:The Core Element : 

The Event Experience:The Core Element Game form (rules or techniques) Players (e.g. stars, role players, “hot dogs”/unsung heroes, coaches, officials) Equipment and Apparel (e.g. ball, Zamboni) Venue (e.g. stadium, arena, racetrack)

Product Extensions: Those Things That Enhance the Experience : 

Product Extensions: Those Things That Enhance the Experience Coaches (e.g. Bob Knight, Isiah Thomas ) Tickets (e.g. souvenir tickets, lineups, scarcity) Luxury boxes (amenity-laden, status) Programs (information, memorabilia) Video screens (growing sophistication – larger, HD) Digital ribbons / signage (e.g. dual role: sponsorship inventory and entertainment device) Music (e.g. pre and in-game, connection with music artists and popular culture) Memorabilia (numerous, collectables industry) Mascots (entertain crowd, types, Nav Bhatia) Fan groups (e.g. Red Sox Nation)

The Game Form : 

The Game Form Rules and techniques (e.g. NFL “Feel the Power,” league competitions committees) Special features that may make a sport product especially attractive to certain consumers (e.g. mics on players) Individual moves (e.g. Kobe Bryant, Alexander Ovechkin)

Star Power : 

Star Power A presence that transcends the actual playing (e.g. David Beckham, Tiger Woods, Michael Jordan) Players, coaches and owners are extended beyond the event (e.g. Jose Mourinho, Mark Cuban, Roman Abramovich) Star talent, or its absence, can make or break entire leagues. (e.g. Beckham to MLS) Sponsors are keys to broad product extension. (e.g. NASCAR) Media training for athletes

Equipment and Apparel : 

Equipment and Apparel Needed to compete (e.g. hockey stick) Tangible connection to a game/match Enhances experience (e.g. baseball bats, football helmets, “retro” jerseys) Demonstrates affiliation (e.g. soccer scarves) Separates players from non-players Becoming increasingly high-tech (e.g. FieldTurf)

Memories, Novelties and Fantasies : 

Memories, Novelties and Fantasies Memories that revolve around historical data and artifacts are a key component to consumer commitment Teams search for hot collectibles to drive promotions and fan loyalty (e.g. bobblehead dolls) Growth of fantasy leagues (e.g. office pools) Rise of fan fests and fantasy camps (e.g. Blue Jays Fantasy Camp) Arose from: high price of games, consumers’ desire to learn, feel and do more

The Venue : 

The Venue Place for product distribution Teams and franchises are closely aligned with their venues (e.g. Fenway Park-Boston Red Sox, Lambeau Field-Green Bay Packers). Memories are created (e.g. Yankee Stadium, Maple Leaf Gardens) Communities are created (e.g. Dog Pound – Cleveland Browns Stadium) Provide significant revenue streams during and outside of game days. (e.g. event stages, conference facilities in new stadiums and arenas) Can hinder product package

Personnel and Process : 

Personnel and Process Successful marketing depends on people that process the product (e.g. ushers at Maple Leafs games) Point of contact for customer (e.g. ticket agents, gate ushers, guest services representatives, concession staff) A solid core product may be destroyed by lacklustre personnel and process performance (e.g. issues with ushers at Blue Jays games) Concept of “reciprocity” Case example: Maple Leaf Sports and Entertainment Ltd.

The Ticket and other Print and Electronic Materials : 

The Ticket and other Print and Electronic Materials Tickets used both as a promotional tool (redeemable coupons on reverse) and as source of revenue (display brand -> sponsorship inventory) Personal seat licenses (PSLs) One-time payment for right to buy season tickets for a seat(s) Programs – promotion tie-ins, can be collectables Magazines and newsletters Websites (e.g. official team site, kids-focused, etc.) DVDs (e.g. championship season, greatest moments) Video games (e.g. EA Sports) ***New technology creates new sport products***

The Organisation : 

The Organisation All elements of the product are designed to add value to the organisation Product elements combine in the consumers’ mind as representations of a particular organisation Most leagues have “properties” or “enterprises” divisions Integrated product strategies yield value through synergy – contribute to escalating franchise values

Sport Product Strategy : 

Sport Product Strategy Differentiation Product development Product position Brands and branding

Product Differentiation : 

Product Differentiation Make a product distinctive and attractive in your consumers’ minds Marketers must constantly evaluate and re-evaluate their products Forms the basis for sustainable “competitive advantage” What makes one product different from another? e.g. CFL vs. NFL

Product Development : 

Product Development Two steps: Generate ideas Screen and implement ideas Refine product concept > market and business analysis > development of product > market testing > commercialisation ***Consumers determine the success or failure of a product innovation***

Consumers’ Propensity to adopt a Product Innovation : 

Consumers’ Propensity to adopt a Product Innovation Five perceptual issues: Relative advantage of the new product over old preferences Complexity or difficulty in adoption and use Compatibility with consumer values Divisibility into smaller trial portions Communicability of benefits

Product Positioning : 

Product Positioning Elements should lead to coherent image that organisations must convey to consumers How customers perceptually locate proposed and present brands in the market. Difficult in sport industry as media images are public and beyond control of marketers Assists the sport marketer in understanding how customers see their market. Based on information, marketers can maintain position or reposition a product or category. Concept of “Law of Stickiness”

Sergio Zyman: Managing the Five Images of Any Organisation or Product : 

Sergio Zyman: Managing the Five Images of Any Organisation or Product Trademark imagery Product imagery Associative imagery User imagery Usage imagery

Perceptual Mapping : 

Perceptual Mapping Formed by asking consumers to rank certain product attributes Select two attributes of product. Place each on an axis. Pool consumers to rate product on attributes (scale of 1 to 10). Information will help determine product position in the market and conceptualize market segments.

Potential Attributes : 

Potential Attributes Level of excitement Price Proximity to action Level of performance Authenticity Affiliation Socialization

Brand Equity : 

Brand Equity Crucial concept for sport marketers Definition: added value that a product has by virtue of its brand name Brands can be created or retained in the names, marks, designs or images of any product elements (e.g. ESPN) Key components: Name recognition or awareness Strong mental or emotional associations Perceived brand quality Strong customer loyalty

Product Life Cycle : 

Product Life Cycle Four stages Introduction Growth Maturity Decline Sport products vary in the shape of their developmental and life cycles Teams and franchises have more volatile and unpredictable cycles Where are MLS, MMA in the product life cycle?

Speculations about Sport Product Life Cycles : 

Speculations about Sport Product Life Cycles Game forms that enjoy any kind of maturity seem to be resistant to decline. Teams and franchises have much more volatile and unpredictable cycles than those of their overall sports. Equipment cycles appear more technology- driven than apparel cycles. Apparel cycles blend the more stable trends in game forms with wide fluctuations in fashion.