15-1 Chapter 15 Distribution Decisions and Facilities Management in Sports Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
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15-1
Chapter 15Chapter 15
Distribution Decisions Distribution Decisions
and Facilities and Facilities Management Management
in Sports Marketingin Sports Marketing
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
15-2
Distribution (Place)Distribution (Place)
• Distribution Is the Second Variable of the Traditional Marketing Mix
• It Represents Decisions Regarding the Manner in Which Sports Products are Made Available to the Sports Consumer– Spectator Sports– Participation Sports– SASS
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Spectator SportsSpectator Sports
• Live Audience – Those Spectators in Attendance at the Sports Venue
• Media-Based Audience – Those Who Witness the Event Via Some Electronic Medium
– Marketing Objective May Focus on Either or Both of the Two Types of Audiences
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Spectator Sports – Spectator Sports – the Live Audiencethe Live Audience
• Venue Issues– Event Decisions
• Where Shall Special Events be Staged?• In Which Cities Should Teams be Located?
– Stadium Decisions• Is a New Facility Needed
– Where Should the Community’s New Stadium Be?
– Single-Purpose or Multipurpose Facility?
– How Many Fans Should the Facility Seat?
– Timing Decisions• When Should a Special Event be Staged?
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Spectator Sports – Spectator Sports – the Live Audiencethe Live Audience
• Ticket Issues (Ticket Distribution Strategy)
– Traditional Box Office– Phone Orders– Authorized Ticket Retailers and Brokers– Internet– Secondary Ticket Market
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Spectator Sports – Spectator Sports – the Live Audiencethe Live Audience
• Unaffiliated Ticket Distribution
– Not Part of Marketer’s Own Strategy• Unauthorized Resellers
– Scalpers (Touts) Who Speculate
• Internet
– Bring Buyer & Seller Together (i.e. eBay)
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Spectator Sports – Spectator Sports – the Media-Based Audiencethe Media-Based Audience
• Television
– Free-to-Air (FTA) TV – Major Networks
– General Sports Networks – ESPN; Sky Sports
– Specific Sport Network – Golf Channel
– League Networks – MLB Network (Jan. 2009)
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Spectator Sports – Spectator Sports – the Media-Based Audiencethe Media-Based Audience
• Television (Continued)
– Sports Tier – NFL Sunday Ticket on DirecTV
– Team-Dedicated Networks – YES Network
– College League-Dedicated Networks – Big 10
– Pay-Per-View (PPV) – Boxing Match
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Spectator Sports – Spectator Sports – the Media-Based Audiencethe Media-Based Audience
• Concerns About PPV
– Will Prime Events Move from Free-to-Air TV to a PPV Format Exclusively?
• Super Bowl; Olympics; World Cup of Soccer
– Australia’s Antisiphoning Law• Assures FTA Availability of Key Events
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Spectator Sports – Spectator Sports – the Media-Based Audiencethe Media-Based Audience
• Radio
– AM
– FM
– Satellite• Sports Tiers
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Spectator Sports – Spectator Sports – the Media-Based Audiencethe Media-Based Audience
• Internet
– Free-to-Air Radio Stations with Web Access
– Social Networks
– Audio Streaming
– Video Streaming
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Spectator Sports – Spectator Sports – the Media-Based Audiencethe Media-Based Audience
• Mobile Communications Devices– Cell Phones Emerging as a Key One-to-One
Broadcast Medium– PDAs– iPods
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Spectator Sports – Spectator Sports – the Media-Based Audiencethe Media-Based Audience
• Smart Watches– Still a Novelty
• Movie Theaters (Cinemas)– High definition video; Dolby 5.1 audio
• Gaining Favor
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Market Development StrategiesMarket Development Strategiesfor a Spectator Sportfor a Spectator Sport
• New Target Markets
– New Demographic Group• X Games New Emphasis on Female Segment
– Broadened Geographic Coverage in Same Countries• NHL into New Warm Weather North American Markets• Super 14 Adding New Team in Western Australia
– New International Target Market• Cricket in USA; Gridiron Football in China
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Market Development StrategiesMarket Development Strategies
• Global Competition– Showcase Sport in New Locations
• NHL Players in Olympics• World Baseball Classic• NASCAR in Mexico• NBA’s “Basketball Without Borders”• Possible League Expansion (NBA in Europe?)• NFL in London (Regular season – 2 USA teams)
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Market Development StrategiesMarket Development Strategies
• Global Media
– World Cup of Soccer 2010 Shown Live on TV in Many Markets
– Internet Streaming Makes Small or Emerging Markets Accessible
– Satellite Radio
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Participation SportsParticipation Sports
• Drop in Box 15.4 Here
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SASSSASS
• Sporting Goods, Apparel, Athletic Shoes, and Sports-Related Products
• General Retailing Principles Provide the Framework for the Distribution of SASS
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SASSSASS
• Key Question Concerns the Scope of Distribution in a Given Geographic Area
– Intensive Distribution
– Selective Distribution
– Exclusive Distribution
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SASSSASS
• Role of Nonstore Retailing
• Direct Response Marketing (DRM)
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Sports-Related ProductsSports-Related Products
• Sold at the Venue
– Optimal Number of Service Outlets
– Service in Seating Area
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Facilities ManagementFacilities Management
• Complexity Exemplified by Looking at the Array of Activities Schedules for an Arena
• Drop in Box 15.5 Here
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Tasks Associated Tasks Associated with Facilities Managementwith Facilities Management
• Usage Scheduling
• Primary Tenant Lease Terms
• Rental Policy/Rate Determination for Secondary Tenant(s)
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Tasks Associated Tasks Associated with Facilities Managementwith Facilities Management
• Staff Selection and Training
• Staff Scheduling
• Box Office Management
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Tasks Associated Tasks Associated with Facilities Managementwith Facilities Management
• Maintenance Levels and Budgeting
• Risk Management
• Security
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Tasks Associated Tasks Associated with Facilities Managementwith Facilities Management
• Traffic Control and On-Site Parking
• Media Facilities
• Negotiation of Concession and Service Contracts
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Tasks Associated Tasks Associated with Facilities Managementwith Facilities Management
• Vending Considerations
• General Marketing
• Sponsorship Compliance
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Closing CapsuleClosing Capsule
• “If you build it, he will come”
• That Popular Line from the Movie Field of Dreams Does not Truly Explain Most Sports Marketing Efforts
• An Effective System Must be Implemented in an Effort to Reach Each Target Market
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Closing CapsuleClosing Capsule
• Spectator Sports
• Live Audience– Venue Issues (i.e. Capacity)– Ticket Issues (i.e. Use of Internet)
• Media-Based Audience– A Broad Array of Options
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Closing CapsuleClosing Capsule
• Market Development for Spectator Sports
• Effort to Grow the Market by Reaching New Target Markets
• Live and Media-Based Efforts
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Closing CapsuleClosing Capsule
• Technology has changed the Landscape for Distribution of the Sports Product
• There Must Be an Awareness of the Opportunities Presented by the Emergence of the Legal Secondary Ticket Market
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Closing CapsuleClosing Capsule
• Participation Sports– Different Types of Facilities– Marketers Need to Balance Supply & Demand
• SASS– Driven by General Retailing Principles
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Closing CapsuleClosing Capsule
• An Important Issue Related to Distribution Involves the Management of a Sports Facility
• There is an array of activities and decisions that comprise the job of a facility manager
• Facilities management offers a meaningful career opportunity for the aspiring sports marketing professional
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