Marketing Channels and Distribution Decisions In the Sport Industry

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3.02 -

• Marketing Channels and Distribution Decisions In
  the Sport Industry

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Distribution Defined

• Distribution is the process of getting the
  product to the consumer.
• A Distribution system is the methods and channels
  used in delivering products from producer to
  consumer.
• An Intermediary is an individual or organization
  through which products move from producer to
  consumer.

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Product Types

• Sports activities are participation products such
  as participation in basketball, bowling, scuba,
  hiking, sky diving, running, weight training,
  sailing, water skiing, golf, and snow-boarding.
• The activities are offeredpackagedto the
  consumer in a number of ways such as leagues,
  tournaments, championships, races, meets,
  regattas, outings, and adventure travel packages.

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Sport Business Goods

• Sport Business Services The cleaning, repair,
  and maintenance of sports equipment alone makes
  up an important part of the sport service
  industry.
• Sports Entertainment The development of sports
  as an entertainment product is a fast-growing
  segment of the sport business industry.
• Sport Media Some examples of sport media are
  sports magazines (print), electronic sports
  businesses (Web-based businesses), and industry
  trade magazines. The consumers of these can be
  either end or business consumers.

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Distribution of Products

• Tangible products are physical objects. Most are
  manufactured in mass quantities at a factory and
  must be moveddistributedto a place of
  purchaseretailer or wholesaler. For example,
  running shoes are manufactured in a factory and
  must be moved to a retailer to be sold.
• Intangible products are not physical objects and
  include products such as services, places, and
  ideas.
• Shelf Life amount of time that a product can
  remain in a good and consumable condition after
  being manufactured.

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Time, Place, and Possession UtilityThrough
Distribution
Time utility is getting the product to the
consumer when the consumer wants it. Place
utility is getting the product to the consumer
where the consumer wants it. Possession utility
is creating possession of the product for the
consumer.
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The Distribution System

• Types of Distribution Intermediaries

Wholesalera company that buys goods in large
quantities specifically to resell to retailers or
final consumers (Peter and Donnelly, 1993).
Retailera company that buys goods to resell to
consumers (Peter and Donnelly, 1993).
E-taileran electronic retail store.
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The Distribution System (contd)
Types of Distribution Intermediaries
Agenta person or a company who moves
products (facilitates the sale) by taking orders
for a buyer and placing the order with the
producer (Boone and Kurtz, 1992). Mail ordera
company that buys direct from a manufacturer or
producer and offersthe products through a catalog
or electronic system (Cravens and Woodruff,
1986). Distributora wholesale intermediary
(Peter and Donnelly, 1993).
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Complex Distribution System in the Sport Industry
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The Distribution System (contd)
Selection of a Distribution System The
considerations of the consumer should be the
deciding factor in the selection of a
distribution system. A company should study
what the competitors are doing before making any
sort of business decision. Exclusivity drives
up demand, which in turn drives up prices.
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3.02 Questions

• 1. What is distribution?
• 2. Describe the different kinds of distribution
  in the sport industry.
• 3. What are distribution intermediaries? Give
  some examples.
• 4. What is a distribution system? Give some
  examples of systems in the sport industry.

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Questions (contd)

• 5. What are the factors that affect the selection
  of a distribution system?
• 6. What is distribution intensity? Why is it
  linked to promotion and positioning the product?
  Give some examples of each type.
• 7. What are some examples of different types of
  products found in the sport business industry?
  Develop what you think would be some appropriate
  distribution channels for these products.

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Learning Activities

• 1. List some sport products offered in your city
  or community. Create a distribution system for
  each. Research the real costs of your systems.
  Give a presentation in class.

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The cable network that televises college
basketball games throughout the country is
__________ the sportsproduct.A.
distributingB. franchisingC. publicizingD.
sponsoring
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Rhonda is making a presentation to the chamber of
commerce of a large city in anticipation of
building a sportscomplex. What is the primary
element of distribution that she should discuss
with them?A. AmenitiesB. RevenuesC.
ParkingD. Facility
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Expanded bandwidth is changing the face of
in-home entertainment byA. eliminating the need
for cable hookups.B. allowing for delivery of
the Internet through television sets.C.
improving fiber optics cable and electrical
lines.D. creating high-definition television.
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Which of the following is a place decision that
must be made in sports and entertainment
marketingA. Should direct mail be sent to
last season's ticket holders?B. Will local or
national media be used?C. How will fans obtain
the schedule of events?D. Where will ticket
outlets be found?