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The Sport Product

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A presence that transcends the actual playing (e.g. David Beckham, Tiger Woods, Michael Jordan) ... (e.g. Beckham to MLS) Sponsors are keys to broad product ... – PowerPoint PPT presentation

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Title: The Sport Product


1
  • The Sport Product

2
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

3
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)

4
The Event ExperienceThe 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)

5
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)

6
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)

7
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

8
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)

9
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

10
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

11
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.

12
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

13
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

14
Sport Product Strategy
  • Differentiation
  • Product development
  • Product position
  • Brands and branding

15
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

16
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

17
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

18
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

19
Sergio Zyman Managing the Five Images of Any
Organisation or Product
  • Trademark imagery
  • Product imagery
  • Associative imagery
  • User imagery
  • Usage imagery

20
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.

21
Potential Attributes
  • Level of excitement
  • Price
  • Proximity to action
  • Level of performance
  • Authenticity
  • Affiliation
  • Socialization

22
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

23
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?

24
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.
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