The Consumer and Sports Products Economic Impact of Sports Marketing 1.

The Consumer and Sports Products

Economic Impact of Sports Marketing

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Chapter Objectives

Define the sports consumer.

Explain market segmentation.

Identify sports products.

Explain the differences between sports goods and services.

Differentiate between the product line and product mix.

Explain the economic impact of sports marketing.

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The Sports Consumer

A purchase by the sports consumer, as a customer, is like a vote because the purchase equals a decision of approval.

sports consumer:

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The Sports Consumer

The two categories that affect the sports consumer’s decision to spend money on or participate in sports are:

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Environmental factors– Family, friends– Society’s _______________– Cultural differences– Climate and ___________– Marketing influences

Individual factors– Self-concept or self-image– ____________ characteristics– Learned characteristics– Motivation and ____________

Sports Consumers and Market Segmentation

Understanding market segmentation of the sports consumer market is important in order to sell products and services.

market segmentation:

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Geographics

Demographics

Psychographics

Product benefits

Constantly ________

Sports Products

Sports products provide the consumer with satisfaction, entertainment, sociability, and achievement.

sports products:

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People who share in the process of marketing sports products include owners, sponsors, communication firms, city governments, taxpayers, and consumers.

Types of Sports Products

The following sports products can be classified as goods or services, or both:

tangible products:

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Sporting events

Sports __________

Sports training

Sporting goods– Tangible products

Types of Sports Products

In contrast with sports products, sports services are intangible products.

intangible products:

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Ten areas of service quality are:Tangibles

_____________

Responsiveness

_____________

Courtesy

Credibility

Security

____________

Communication

Understanding

Types of Sports Products

Sports businesses or organizations that offer a variety of products classify their products by product line and product mix.

product line:

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product mix:

Sports Products and Product Extensions

Sports products differ from typical consumer products because sports products have the ability to generate a ___________variety of product ________________.

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What are four characteristics needed to analyze the market segmentation of sports consumers?

How is a purchase by the sports consumer similar to a vote?

Define product mix.

1.

2.

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Economic Effects

From the moment the consumer inquires about a ticket to a sporting event, there is an impact on the economy.

The local economy improves as a result of money spent at sporting events.

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Economic Effects

Each decision the consumer makes involves an opportunity cost.

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opportunity cost:

As the economy grows, then more infrastructure is needed to support an athletic event.

Infrastructure:

SportingEvent

$$

$

$

$

$

$

$

Economic Impact of Sports

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_________________

TicketAgent

ParkingGarage

Food andMerchandise

Sanitation

The Internet

Taxes

Infrastructure

City Pride

“The Sunshine State”

Orlando, Florida, is the home of an NBA sports franchise called the Orlando Magic.

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sports franchise:

By selling Orlando Magic T-shirts, caps, and other items, investors were able to convince residents to make $100 deposits on season-ticket reservations.

Economic and Marketing Challenges

The economic and marketing challenges of the ______________ National Basketball Association are different than those of the National Basketball Association.

Media _______________ of the WNBA is a major challenge, despite the fact that the WNBA attracts millions of spectators and viewers around the world.

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Grassroots Marketing Efforts

To gain support, teams such as the Sparks are heavily involved in grassroots marketing.

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grassroots marketing:

Operating an e-tail business on an electronic channel—the Web—can be costly, due to design, delivery, returns, and operating expenses.

Though Many larger dot-com companies crashed in the 1990’s, small stores like Harris Cyclery of West Newton, Massachusetts, actually increase sales using a basic Web site. Today, a third of Harris’s bicycle business rides in on the Web to get hard-to-find parts and personal service.

Describe an e-business’s home page to your class after viewing one through marketingseries.glencoe.com.

Got Game—and More

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By 2001, WNBA games had been seen by 60 million fans in 167 countries. Fostering this global audience, the ________.com Web site provides many services for its followers: draft notices, player information, news, statistics, standings, game schedules, highlights, a virtual box office, fantasy games, and even an e-tail store.

For more information on sports and entertainment marketing, go to marketingseries.glencoe.com.

The Women’s National Basketball Association has come a long way in a few years since April ______ when it was first formed.

What is opportunity cost? Give an example.

List six functions of an infrastructure of a community.

Why is grassroots marketing an important part of sports marketing?

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2.

3.

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Describe how a marketer views a sports consumer.

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Name the four characteristics that need to be considered when analyzing the market segment of sports consumers.

Checking Concepts

continued

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2.

Describe what happens when the correct sport consumer is targeted by a sports-marketing plan.

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Identify the sports product.

Explain how sports goods and sports services differ.

Checking Concepts

continued

3.

4.

5.

Explain five dimensions of service quality and how they apply to a sports team.

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Compare a product line and product mix.

Define grassroots marketing.

Checking Concepts

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8.