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15-1 Chapter 15 Chapter 15 Distribution Decisions Distribution Decisions and Facilities and Facilities Management Management in Sports Marketing in Sports Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserve McGraw-Hill/Irwin
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15-1 Chapter 15 Distribution Decisions and Facilities Management in Sports Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

Mar 31, 2015

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Page 1: 15-1 Chapter 15 Distribution Decisions and Facilities Management in Sports Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

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

Page 2: 15-1 Chapter 15 Distribution Decisions and Facilities Management in Sports Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

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

Page 3: 15-1 Chapter 15 Distribution Decisions and Facilities Management in Sports Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

15-3

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

Page 4: 15-1 Chapter 15 Distribution Decisions and Facilities Management in Sports Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

15-4

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?

Page 5: 15-1 Chapter 15 Distribution Decisions and Facilities Management in Sports Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

15-5

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

Page 6: 15-1 Chapter 15 Distribution Decisions and Facilities Management in Sports Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

15-6

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)

Page 7: 15-1 Chapter 15 Distribution Decisions and Facilities Management in Sports Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

15-7

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)

Page 8: 15-1 Chapter 15 Distribution Decisions and Facilities Management in Sports Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

15-8

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

Page 9: 15-1 Chapter 15 Distribution Decisions and Facilities Management in Sports Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

15-9

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

Page 10: 15-1 Chapter 15 Distribution Decisions and Facilities Management in Sports Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

15-10

Spectator Sports – Spectator Sports – the Media-Based Audiencethe Media-Based Audience

• Radio

– AM

– FM

– Satellite• Sports Tiers

Page 11: 15-1 Chapter 15 Distribution Decisions and Facilities Management in Sports Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

15-11

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

Page 12: 15-1 Chapter 15 Distribution Decisions and Facilities Management in Sports Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

15-12

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

Page 13: 15-1 Chapter 15 Distribution Decisions and Facilities Management in Sports Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

15-13

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

Page 14: 15-1 Chapter 15 Distribution Decisions and Facilities Management in Sports Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

15-14

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

Page 15: 15-1 Chapter 15 Distribution Decisions and Facilities Management in Sports Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

15-15

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)

Page 16: 15-1 Chapter 15 Distribution Decisions and Facilities Management in Sports Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

15-16

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

Page 17: 15-1 Chapter 15 Distribution Decisions and Facilities Management in Sports Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

15-17

Participation SportsParticipation Sports

• Drop in Box 15.4 Here

Page 18: 15-1 Chapter 15 Distribution Decisions and Facilities Management in Sports Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

15-18

SASSSASS

• Sporting Goods, Apparel, Athletic Shoes, and Sports-Related Products

• General Retailing Principles Provide the Framework for the Distribution of SASS

Page 19: 15-1 Chapter 15 Distribution Decisions and Facilities Management in Sports Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

15-19

SASSSASS

• Key Question Concerns the Scope of Distribution in a Given Geographic Area

– Intensive Distribution

– Selective Distribution

– Exclusive Distribution

Page 20: 15-1 Chapter 15 Distribution Decisions and Facilities Management in Sports Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

15-20

SASSSASS

• Role of Nonstore Retailing

• Direct Response Marketing (DRM)

Page 21: 15-1 Chapter 15 Distribution Decisions and Facilities Management in Sports Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

15-21

Sports-Related ProductsSports-Related Products

• Sold at the Venue

– Optimal Number of Service Outlets

– Service in Seating Area

Page 22: 15-1 Chapter 15 Distribution Decisions and Facilities Management in Sports Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

15-22

Facilities ManagementFacilities Management

• Complexity Exemplified by Looking at the Array of Activities Schedules for an Arena

• Drop in Box 15.5 Here

Page 23: 15-1 Chapter 15 Distribution Decisions and Facilities Management in Sports Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

15-23

Tasks Associated Tasks Associated with Facilities Managementwith Facilities Management

• Usage Scheduling

• Primary Tenant Lease Terms

• Rental Policy/Rate Determination for Secondary Tenant(s)

Page 24: 15-1 Chapter 15 Distribution Decisions and Facilities Management in Sports Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

15-24

Tasks Associated Tasks Associated with Facilities Managementwith Facilities Management

• Staff Selection and Training

• Staff Scheduling

• Box Office Management

Page 25: 15-1 Chapter 15 Distribution Decisions and Facilities Management in Sports Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

15-25

Tasks Associated Tasks Associated with Facilities Managementwith Facilities Management

• Maintenance Levels and Budgeting

• Risk Management

• Security

Page 26: 15-1 Chapter 15 Distribution Decisions and Facilities Management in Sports Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

15-26

Tasks Associated Tasks Associated with Facilities Managementwith Facilities Management

• Traffic Control and On-Site Parking

• Media Facilities

• Negotiation of Concession and Service Contracts

Page 27: 15-1 Chapter 15 Distribution Decisions and Facilities Management in Sports Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

15-27

Tasks Associated Tasks Associated with Facilities Managementwith Facilities Management

• Vending Considerations

• General Marketing

• Sponsorship Compliance

Page 28: 15-1 Chapter 15 Distribution Decisions and Facilities Management in Sports Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

15-28

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

Page 29: 15-1 Chapter 15 Distribution Decisions and Facilities Management in Sports Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

15-29

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

Page 30: 15-1 Chapter 15 Distribution Decisions and Facilities Management in Sports Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

15-30

Closing CapsuleClosing Capsule

• Market Development for Spectator Sports

• Effort to Grow the Market by Reaching New Target Markets

• Live and Media-Based Efforts

Page 31: 15-1 Chapter 15 Distribution Decisions and Facilities Management in Sports Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

15-31

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

Page 32: 15-1 Chapter 15 Distribution Decisions and Facilities Management in Sports Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

15-32

Closing CapsuleClosing Capsule

• Participation Sports– Different Types of Facilities– Marketers Need to Balance Supply & Demand

• SASS– Driven by General Retailing Principles

Page 33: 15-1 Chapter 15 Distribution Decisions and Facilities Management in Sports Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

15-33

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