Copyright © 2009 Nelson Education Ltd. All rights reserved. The Sport Product Chapter 6.

Copyright © 2009 Nelson Education Ltd. All rights reserved.

The Sport ProductThe Sport Product

Chapter 6Chapter 6

2Copyright © 2009 Nelson Education Ltd. All rights reserved.

• To understand what is meant by a product.To understand what is meant by a product.

• To appreciate the unique nature of the sport product.To appreciate the unique nature of the sport product.

• To become acquainted with the various product forms To become acquainted with the various product forms and the elements of product strategy.and the elements of product strategy.

OBJECTIVESOBJECTIVES


• Most important element of the marketing mix.Most important element of the marketing mix.

• Central to any definition is assertion that product is Central to any definition is assertion that product is something that satisfies a need and that it exists in something that satisfies a need and that it exists in more than one form – a good, service, idea, person, more than one form – a good, service, idea, person, organization, place, or activity.organization, place, or activity.

• Tangible vs. intangibleTangible vs. intangible

PRODUCTPRODUCT


PRODUCT LIFECYCLEPRODUCT LIFECYCLE

INTRO GROWTH MATURITY DECLINE

0

Time

Sales & Profits

(Solomon, Stuart, Carson & Smith 2003)


The Sport ProductThe Sport Product

Any good, service, person, place, or idea with tangible or Any good, service, person, place, or idea with tangible or intangible attributes that satisfy consumer sport fitness or intangible attributes that satisfy consumer sport fitness or recreation needs or desires. recreation needs or desires.

SPORT PRODUCTSPORT PRODUCT


• The sport event is viewed as the core product and it is The sport event is viewed as the core product and it is elements of this core that give the sports product its elements of this core that give the sports product its unique nature.unique nature.

• Intangible and subjective.Intangible and subjective.

• Inconsistent and unpredictable.Inconsistent and unpredictable.

• Simultaneously produced and consumed.Simultaneously produced and consumed.

WHY IS SPORT SPECIAL?WHY IS SPORT SPECIAL?


• Greater emphasis on product extensions than core Greater emphasis on product extensions than core product.product.

• Generally consumed in public and so the experience is Generally consumed in public and so the experience is effected by group dynamics.effected by group dynamics.

• Incomparable emotional attachment and personal Incomparable emotional attachment and personal identification.identification.

• Sport pervades all elements of life and enjoys an almost Sport pervades all elements of life and enjoys an almost universal appeal.universal appeal.

• Sport is both a consumer and industrial product.Sport is both a consumer and industrial product.

WHY IS SPORT SPECIAL?WHY IS SPORT SPECIAL?


SPORT PRODUCT FORMSSPORT PRODUCT FORMS

eventsevents

coreproducts

Primary Products

leagues

primaryproducts

clubs

teams

athletes

facilities

media

merchandise

skilled services

derivativeproducts

expand

support


BrandBrand

the name, logo and other outward symbols that distinguish a the name, logo and other outward symbols that distinguish a product or service from others in its category.product or service from others in its category.

InvolvesInvolves::

Brand nameBrand name Brand markBrand mark TrademarkTrademark

SPORT BRANDSSPORT BRANDS


Brand EquityBrand Equity

““a set of liabilities and assets linked to a brand, its name and a set of liabilities and assets linked to a brand, its name and symbol, that add to or subtract from the value provided by a symbol, that add to or subtract from the value provided by a product or service to a firm and/or to that firms customers.”product or service to a firm and/or to that firms customers.”

(Aaker, 1991)(Aaker, 1991)

““the difference in value between a branded product and its the difference in value between a branded product and its generic equivalent.”generic equivalent.”

(Shank(Shank, 2005)



LicensingLicensing

““a contractual agreement whereby a company (licensee) may use a contractual agreement whereby a company (licensee) may use another company's trademark in exchange for a royalty or fee. A another company's trademark in exchange for a royalty or fee. A branding strategy through licensing allows the organization to branding strategy through licensing allows the organization to authorize the use of brand, brand name, brand mark [or] authorize the use of brand, brand name, brand mark [or] trademark in conjunction with a good, service, or promotion in trademark in conjunction with a good, service, or promotion in return to royalties.”return to royalties.”

(Shank, 2005, 235)



BrandBrand ExtensionsExtensions

the use of an already established brand and the loan of a brand the use of an already established brand and the loan of a brand from one entity to another.from one entity to another.

Examples:Examples:

MascotsMascots Team publicationsTeam publications Sports camps and clinicsSports camps and clinics Merchandise storesMerchandise stores Youth leaguesYouth leagues



Six keys to successful brand extensionsSix keys to successful brand extensions::

1.1. The strength of the parent brand.The strength of the parent brand.

2.2. Perceived fit between club and extension.Perceived fit between club and extension.

3.3. Promotional support offered by sport organization to the Promotional support offered by sport organization to the extension.extension.

4.4. Quality of the extension product.Quality of the extension product.

5.5. Distribution strategy.Distribution strategy.

6.6. Management of the extension.Management of the extension.



• Since each element of the sport product is interrelated, it Since each element of the sport product is interrelated, it is easy to combine the elements to is easy to combine the elements to make a full make a full entertainment or participant sport package.entertainment or participant sport package.

Examples:Examples:

•The day out at a baseball game.The day out at a baseball game.•Full service fitness centers.Full service fitness centers.

SPORT PACKAGINGSPORT PACKAGING

Copyright © 2009 Nelson Education Ltd. All rights reserved. The Sport Product Chapter 6.

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