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chapter

10

Marketing and Sales

10

Marketing and Sales

chapter

Marketing Concepts

• Marketing examines the process of getting potential customers to purchase a product or service.

• Key principles to remember:– Customers are an asset that become more valuable

over time.– Quality can be a competitive strategy for your sport

business.– All businesses are service businesses.

Four Ps of Marketing• Product• Place• Price• Promotion• Some use 5th to 11th Ps:

– Publicity – People – Position– Payback– Policy– Partnerships– Professional connections

Product

• A product is what the business has to offer to its prospective customers, users, clients, or constituents. A product can be a good, service, or idea.

• What is unique about the sport product that helps sell it?– Perishable– Unique– Passion– Friendships

Place

• Place refers to where the product or service is sold or distributed.

• Place also refers to how the product reaches customers, how quickly it reaches them, and in what condition the product will be in when it finally reaches the customers.

Price

• How much does it cost?• How does the cost compare to cost of similar

products?• Price refers to the amount of cash or items

given in exchange to conclude a transaction.• Price is always on trial in every marketplace

since price can be considered too high or too low at different times. If a ticket price is too high, people might not purchase a ticket. Furthermore, if a ticket is too cheap, then the customers might perceive the ticket as lacking value.

Promotion

• How is the product sold?• Promotion refers to the process of

informing people about the product, price, or place. Three primary vehicles are used to promote a service or product:– Advertising – Publicity– Personal selling

The Marketing Process

• Customer identification• Research• Selling experience

Research

• Market segmentation: Can or will they buy the product?

• Demographics• Psychographics• Benefit segmentation• Geodemographics

Selling Experience

• Steak: primary focus• Sizzle: ancillary benefits such as between

innings or halftime events or giveaways such as Beanie Babies, bobble heads, and thunder sticks

Marketing New Facilities

• Attracting anchor tenants• Attracting shows or events• Developing strong relationships: This is a

small industry so your reputation is very important

Sales

• Identify what you have to sell– Tickets– Luxury seating or boxes– Concessions– Sponsorship– Naming rights– Pouring rights

• Establish a price: Supply and demand

Numerous Sponsorship Opportunities Sold at a Ballpark

Summary

• The sport industry relies on marketing to generate revenue. Whether through publicity, advertising, or personal selling, sport facilities need to position their product to attract potential customers.

• Through conducting in-depth research and identifying what customers want, a facility can sell their steak and sizzle.

Discussion Questions and Activities

• What are the products offered at a stadium or arena?

• How would you go about selling tickets to a less popular event?

• Develop a sample survey to help determine what your customers want.

• Develop a marketing plan to help generate at least five sellouts for a local sport organization. Be as specific as possible.