Sports Product

1
Sports Product

• HSS 5263
• Sport Marketing
• Brian Turner

2
What is the sport product?

• a good, a service, or any combination of the
  two that is designed to provide benefits to a
  sports spectator, participant, or sponsor

3
What is the sport product?

• Goods
• Services

Pure Goods
Pure Services
4
What is the sport product?

• Tangibility
• Standardization/consistency
• Perishability
• Separability

5
Branding

• name, design, symbol, or any combination that a
  sports organization uses to help differentiate
  its products from the competition

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Branding

• Brand names
• Guidelines
• Positive, distinctive, generate positive feelings
  and associations, be easy to remember, and easy
  to pronounce
• Translatable to a dynamite attitude-oriented logo
• Imply the benefits the sports product delivers
• Consistent with the image of the rest of the
  product lines, organization, and/or city
• Legally and ethically permissible

7
Branding

• Brand mark or logo
• Trademarks
• Identify that a sports organization has legally
  registered its brand name and/or brand mark and
  thus prevents others from using it

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Branding Process

• Brand awareness
• Brand image
• Brand equity

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Branding Process

• Brand Loyalty

10
What is a licensed product?

• not manufactured by leagues, teams, or
  schools, but rather by independent companies
  under an agreement with a sport entity.
• Licensing
• a contractual method of developing and
  exploiting intellectual property by transferring
  the rights of use to third parties without
  transfer of ownership.

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What makes licensing work?

• Licensee advantages
• Positive association with the sports entity
• Greater levels of brand awareness
• Save time/money in building brand equity
• Receive initial distribution with retailers
• Expanded and improved shelf space
• May be able to charge higher prices
• Licensee disadvantages
• Athlete, league, or sport may fall into disfavor
• Success depends on success of team
• Styles change quickly

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What makes licensing work?

• Licensor advantages
• Expansion into new markets
• Generate awareness of the sports entity
• Increase its brand equity
• Very little risk
• Licensee disadvantages
• May lose some control over the elements of the
  marketing mix

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How does licensing work?

• Licensees pay an initial, one-time licensing fee
• They take on production issues and assume risk by
  manufacturing product
• They then pay a royalty for the use of specific
  trademarks on specific products

14
Licensed-Product Revenues

• Retail Sales of Licensed
• Sport Products in the US
• 1990 - 5.3 Billion
• 1995 - 10.4 Billion
• 1996 - 13.8 Billion

15
Approach of ProfessionalSport Leagues

• NFL
• MLB
• NHL
• NBA

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Collegiate Licensing

• Up to the 1970s, manufacturers did not pay
  royalties
• Significant revenues began in the late 1980s

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Quality

• Service quality
• SERQUAL
• Reliability, assurance, empathy, responsiveness,
  tangibles
• TEAMQUAL

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Quality

• Product quality
• Performance
• Features
• Reliability
• Conformance
• Durability
• Serviceability
• Aesthetics
• Perceived quality

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New Sports Products

• New products from organizational perspective

20
New Sports Products

• New products from the consumers perspective

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New Product Development

• Idea generation
• Idea screening
• Analysis of the concept or potential
• Development
• Test marketing
• Commercialization

22
New Product Success Factors

• Product considerations
• Other marketing mix considerations
• Marketing environment considerations

23
Product Life Cycles

• Introduction
• Growth
• Maturity
• Decline

24
Product Life Cycles

• Fad
• Classic
• Seasonal