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15-1
Chapter 15Chapter 15
Distribution Decisions Distribution Decisions
and Facilities and Facilities Management Management
• 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
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
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?
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
15-6
Spectator Sports – Spectator Sports – the Live Audiencethe Live Audience
• Unaffiliated Ticket Distribution
– Not Part of Marketer’s Own Strategy• Unauthorized Resellers
• Movie Theaters (Cinemas)– High definition video; Dolby 5.1 audio
• Gaining Favor
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
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)
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
15-17
Participation SportsParticipation Sports
• Drop in Box 15.4 Here
15-18
SASSSASS
• Sporting Goods, Apparel, Athletic Shoes, and Sports-Related Products
• General Retailing Principles Provide the Framework for the Distribution of SASS
15-19
SASSSASS
• Key Question Concerns the Scope of Distribution in a Given Geographic Area
– Intensive Distribution
– Selective Distribution
– Exclusive Distribution
15-20
SASSSASS
• Role of Nonstore Retailing
• Direct Response Marketing (DRM)
15-21
Sports-Related ProductsSports-Related Products
• Sold at the Venue
– Optimal Number of Service Outlets
– Service in Seating Area
15-22
Facilities ManagementFacilities Management
• Complexity Exemplified by Looking at the Array of Activities Schedules for an Arena
• Drop in Box 15.5 Here
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)
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Tasks Associated Tasks Associated with Facilities Managementwith Facilities Management
• Staff Selection and Training
• Staff Scheduling
• Box Office Management
15-25
Tasks Associated Tasks Associated with Facilities Managementwith Facilities Management
• Maintenance Levels and Budgeting
• Risk Management
• Security
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
15-27
Tasks Associated Tasks Associated with Facilities Managementwith Facilities Management
• Vending Considerations
• General Marketing
• Sponsorship Compliance
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
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
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
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
15-32
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