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17-1 Chapter 17 Chapter 17 Distribution Decisions Distribution Decisions in Sports Marketing in Sports Marketing McGraw-Hill/Irwin ©2007 The McGraw-Hill Companies, All Rights Reserved
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17-1 Chapter 17 Distribution Decisions in Sports Marketing McGraw-Hill/Irwin©2007 The McGraw-Hill Companies, All Rights Reserved.

Dec 21, 2015

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Page 1: 17-1 Chapter 17 Distribution Decisions in Sports Marketing McGraw-Hill/Irwin©2007 The McGraw-Hill Companies, All Rights Reserved.

17-1

Chapter 17Chapter 17

Distribution Decisions Distribution Decisions

in Sports Marketingin Sports Marketing

McGraw-Hill/Irwin ©2007 The McGraw-Hill Companies, All Rights Reserved

Page 2: 17-1 Chapter 17 Distribution Decisions in Sports Marketing McGraw-Hill/Irwin©2007 The McGraw-Hill Companies, All Rights Reserved.

17-2

Distribution (Place)Distribution (Place)

• Distribution Is the Second Variable of the Traditional Marketing Mix

• Represents Decisions Regarding the Manner in Which Sports Products Are Made Available to the Sports Consumer

Page 3: 17-1 Chapter 17 Distribution Decisions in Sports Marketing McGraw-Hill/Irwin©2007 The McGraw-Hill Companies, All Rights Reserved.

17-3

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: 17-1 Chapter 17 Distribution Decisions in Sports Marketing McGraw-Hill/Irwin©2007 The McGraw-Hill Companies, All Rights Reserved.

17-4

Spectator Sports – Spectator Sports – Live AudienceLive Audience

• Venue Issues

– Where Shall Special Events be Staged?– In Which Cities Should Teams be Located?– 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?

– When Should the Event be Staged?

Page 5: 17-1 Chapter 17 Distribution Decisions in Sports Marketing McGraw-Hill/Irwin©2007 The McGraw-Hill Companies, All Rights Reserved.

17-5

Spectator Sports – Spectator Sports – Live AudienceLive Audience

• Ticket Issues (Ticket Distribution Strategy)

– Traditional Box Office– Phone Orders– Authorized Ticket Retailers and Brokers– Internet

Page 6: 17-1 Chapter 17 Distribution Decisions in Sports Marketing McGraw-Hill/Irwin©2007 The McGraw-Hill Companies, All Rights Reserved.

17-6

Spectator Sports – Spectator Sports – Live AudienceLive Audience

• Unaffiliated Ticket Distribution

• Not Part of Marketer’s Own Strategy– Unauthorized Resellers

• Scalpers Who Speculate

– Internet Agencies• Bring Buyer & Seller Together (i.e. eBay)

Page 7: 17-1 Chapter 17 Distribution Decisions in Sports Marketing McGraw-Hill/Irwin©2007 The McGraw-Hill Companies, All Rights Reserved.

17-7

Spectator Sports – Spectator Sports – Media-Based AudienceMedia-Based Audience

• Television

– Free-to-Air TV – Major Networks

– General Sports Networks – ESPN; SkySports

– Specific Sport Network – Golf Channel

Page 8: 17-1 Chapter 17 Distribution Decisions in Sports Marketing McGraw-Hill/Irwin©2007 The McGraw-Hill Companies, All Rights Reserved.

17-8

Spectator Sports – Spectator Sports – Media-Based AudienceMedia-Based Audience

• Television (Continued)

– Sports Tier – NFL Sunday Ticket on DirecTV

– Team-Dedicated Networks – YES Network

– Pay-Per-View (PPV) – Boxing Match

Page 9: 17-1 Chapter 17 Distribution Decisions in Sports Marketing McGraw-Hill/Irwin©2007 The McGraw-Hill Companies, All Rights Reserved.

17-9

Spectator Sports – Spectator Sports – Media-Based AudienceMedia-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 Free Availability of Key Events

Page 10: 17-1 Chapter 17 Distribution Decisions in Sports Marketing McGraw-Hill/Irwin©2007 The McGraw-Hill Companies, All Rights Reserved.

17-10

Spectator Sports – Spectator Sports – Media-Based AudienceMedia-Based Audience

• Radio

– AM

– FM

– Satellite• Sports Tiers

Page 11: 17-1 Chapter 17 Distribution Decisions in Sports Marketing McGraw-Hill/Irwin©2007 The McGraw-Hill Companies, All Rights Reserved.

17-11

Spectator Sports – Spectator Sports – Media-Based AudienceMedia-Based Audience

• Internet

– Free-to-Air Radio Stations with Web Access

– Audio Streaming

– Video Streaming

Page 12: 17-1 Chapter 17 Distribution Decisions in Sports Marketing McGraw-Hill/Irwin©2007 The McGraw-Hill Companies, All Rights Reserved.

17-12

Spectator Sports – Spectator Sports – Media-Based AudienceMedia-Based Audience

• Cellular Phones– Emerging One-to-One Broadcast Medium

• Smart Watches– Still a Novelty

Page 13: 17-1 Chapter 17 Distribution Decisions in Sports Marketing McGraw-Hill/Irwin©2007 The McGraw-Hill Companies, All Rights Reserved.

17-13

Market Development StrategiesMarket Development Strategies

• New Target Markets for a Spectator Sport

• New Demographic Group– X Games New Emphasis on Female Segment

• New International Target Market– Cricket in USA; Gridiron Football in China

Page 14: 17-1 Chapter 17 Distribution Decisions in Sports Marketing McGraw-Hill/Irwin©2007 The McGraw-Hill Companies, All Rights Reserved.

17-14

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”

Page 15: 17-1 Chapter 17 Distribution Decisions in Sports Marketing McGraw-Hill/Irwin©2007 The McGraw-Hill Companies, All Rights Reserved.

17-15

Market Development StrategiesMarket Development Strategies

• Global Media

– World Cup of Soccer 2006 Shown Live on TV in Many Markets

– Internet Streaming Makes Small or Emerging Markets Accessible

– Satellite Radio

Page 16: 17-1 Chapter 17 Distribution Decisions in Sports Marketing McGraw-Hill/Irwin©2007 The McGraw-Hill Companies, All Rights Reserved.

17-16

Participation SportsParticipation Sports

Page 17: 17-1 Chapter 17 Distribution Decisions in Sports Marketing McGraw-Hill/Irwin©2007 The McGraw-Hill Companies, All Rights Reserved.

17-17

SASSSASS

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

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

Page 18: 17-1 Chapter 17 Distribution Decisions in Sports Marketing McGraw-Hill/Irwin©2007 The McGraw-Hill Companies, All Rights Reserved.

17-18

SASSSASS

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

– Intensive Distribution

– Selective Distribution

– Exclusive Distribution

Page 19: 17-1 Chapter 17 Distribution Decisions in Sports Marketing McGraw-Hill/Irwin©2007 The McGraw-Hill Companies, All Rights Reserved.

17-19

SASSSASS

• Role of Nonstore Retailing

• Direct Response Marketing (DRM)

Page 20: 17-1 Chapter 17 Distribution Decisions in Sports Marketing McGraw-Hill/Irwin©2007 The McGraw-Hill Companies, All Rights Reserved.

17-20

Sports-Related ProductsSports-Related Products

• Sold at the Venue

– Optimal Number of Service Outlets

– Service in Seating Area

Page 21: 17-1 Chapter 17 Distribution Decisions in Sports Marketing McGraw-Hill/Irwin©2007 The McGraw-Hill Companies, All Rights Reserved.

17-21

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 22: 17-1 Chapter 17 Distribution Decisions in Sports Marketing McGraw-Hill/Irwin©2007 The McGraw-Hill Companies, All Rights Reserved.

17-22

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 23: 17-1 Chapter 17 Distribution Decisions in Sports Marketing McGraw-Hill/Irwin©2007 The McGraw-Hill Companies, All Rights Reserved.

17-23

Closing CapsuleClosing Capsule

• Market Development for Spectator Sports

• Effort to Grow the Market by Reaching New Target Markets

• Live and Media-Based Efforts

Page 24: 17-1 Chapter 17 Distribution Decisions in Sports Marketing McGraw-Hill/Irwin©2007 The McGraw-Hill Companies, All Rights Reserved.

17-24

Closing CapsuleClosing Capsule

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

• SASS– Driven by General Retailing Principles