Distribution Concepts

1
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

2
Sports Distribution Issues

• Sports Retailing
• Stadium as Place
• Sports Media

3
Sports Retailing Mix

• Products
• Pricing
• Distribution
• Promotion

4
Retail Image/Store Personality

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

5
Stadium as Place

• New Sports Venues
• Ticket Distribution Issues

6
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

7
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

8
Internal and External Determinants of Pricing

• Internal
• Product
• Promotion
• Distribution
• Cost
• Organizational Objectives

• External
• Consumer Demand
• Competition
• Legal
• Economy
• Technology

9

• 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

10
Estimating Consumer Demand

• Consumer Tastes
• Availability of Substitute Sports Products
• Consumer Income

11
Pricing Strategies

• Differential Pricing Strategies
• New Sports Product Pricing Strategies
• Psychological Pricing Strategies
• Product Mix Pricing Strategies
• Cost-Based Pricing Strategies

12
Differential Pricing

• Second Market Discounting

13
New Sports Product Pricing

• Penetration Pricing
• Price Skimming

14
Psychological Pricing

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

15
Product-Mix Pricing

• Bundle Pricing
• Captive Pricing
• Two-Part Pricing

16
Cost-Based Pricing

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

17
Price Adjustments

• Price Reductions and Price Increases
• Price Discounts

18
Implementation Issues

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

19
Strategic Control Issues

• Planning Assumptions Control
• Process Control
• Contingency Control

20
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

21
Process Control

• Monitoring Strategic Thrusts
• Milestone Review
• Financial Analysis

22
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

23
Growth of Sports Industry

• The sports industry generates estimates of 213 to
  350 billion dollars per year in revenues. As
  ESPN founder Bill Rasmussen points out, The
  games are better, and well the athletes are just
  amazing and it all happens 24 hours a day.
  Americas sports fans are insatiable.
• Attendance is increasing
• The NFL experienced a record number of fans in
  the 1999 season (15,710,970)
• The NBA 1999-2000 season also produced a small
  increase (1) for the NBA
• MLB reached 20 million fans faster than any other
  year in history and attendance increased again
  (3)
• NHL continues to grow in attendance and
  popularity. Tracing average attendance over the
  past few years, regular season numbers have
  increased from 14, 749 (93-94) to 16,359
  (99-00)
• NASCAR had 11 million people attend its events in
  1999
• Sports Sponsorship Spending Exceeds 1 Billion
  Dollar Mark
• New Leagues (AF2, XFL, WPFL, WSA, WNHL)