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

The Consumer and Sports ProductsThe Consumer and Sports Products

Economic Impact of Sports MarketingEconomic Impact of Sports Marketing

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Section 4.1 – The Consumer and Section 4.1 – The Consumer and Sports Products - ObjectivesSports Products - Objectives

Define the sports consumerExplain market segmentationIdentify sports productsExplain the differences between sports goods and servicesDifferentiate between the product line and product mix

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Section 4.1 – The Consumer Section 4.1 – The Consumer and Sports Productsand Sports Products

The Sports ConsumerThe Sports ConsumerSports Consumers are the target of sports marketing, because the consumer makes purchases and helps sports organizations make a profit– Sports Consumer is a person who may play, officiate, watch,

or listen to sports, or read, use, purchase and/or collect items related to sports

A purchase by a sports consumer shows support in a product and encourages growth of the productThe job of sports marketing personnel is to plan marketing strategies which encourage the sports consumer to act as a customer and purchase tickets or merchandise 4


Consumer DecisionsConsumer DecisionsThe two categories that affect the sports consumer’s decision to

spend money on or participate in sports are:

Sports marketers must consider a combination of these factors to make effective decisions about marketing plans 5

Environmental factors:– Family, friends– Society’s attitudes and

values– Cultural differences– Climate and region– Marketing influences

Individual factors:– Self-concept or self-image– Physical characteristics– Learned characteristics– Motivation and attitude


Sports Consumers and Market SegmentationSports Consumers and Market SegmentationUnderstanding market segmentation of the sports consumer market is important in order to sell products and services– Market Segmentation is a way of analyzing a market by

specific characteristics to create a target market– Characteristics include:

• Geographics – where consumers live• Demographics – personal characteristics• Psychographics - easy to change characteristics (attitudes &

opinions)• Product Benefits – consumers’ behaviors, needs, and wants

– Constantly shifting based on consumer interests 6


Sports ProductsSports ProductsSports products provide the consumer with satisfaction, entertainment, sociability, and achievement– Sports Products are goods, services, ideas, or

a combination of those things related to sports that provide satisfaction to the consumer

– Sports products can also be athletes

People who share in the process of marketing sports products include owners, sponsors, communication firms, city governments, taxpayers, and consumers 7


Types of Sports ProductsTypes of Sports ProductsThe following sports products can be classified as goods or services, or both:– Sporting event – core product of sports. Include athletes and

arenas where the events take place.– Sports information – News, statistics, schedules, and stories. Can

be any form of media– Sports training – service such as instructions that is provided

through fitness centers, sport camps, and lessons– Sporting goods – Wide range of products. Equipment, licensed

merchandise, collectibles, apparel, accessories, etc.

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Types of Sports ProductsTypes of Sports Products – cont. – cont.Difference between goods and services regarding planning and implementing the sports marketing process– Services, like events, are produced and consumed simultaneously and

has no formal channel of distribution– Tangible goods must be produced by a manufacturer and sent to a

retailer to sell to customer. This channel of distribution requires careful planning and managing

– Tangible products are physical goods that offer benefits to the consumer

– Consumers purchase these products at stores or retail outlets– Goods purchased at a sporting event can also include the service of

selling the product


Quality of GoodsQuality of GoodsTwo basic questions to ask about characteristics of goods, when judging the quality of manufactured products:– Does the product conform to design specifications in the

manufacturing process?– How well does the product perform it function in the opinion of

the consumers, or end users, of the goods?

Consumer’s opinion or perception about the quality of the products is most important to marketing professionalsOrganizations attempt to increase quality without significantly raising prices so as not to lose customers


Sports ServicesSports ServicesIn contrast with sports products, sports services are intangible products– Intangible products are nonphysical services, such as tennis

lessons, personal training, and sports camps– May include the experience of attending a sporting event,

while stadiums(teams) advertise to sell their tangible appeal

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Organizations try identify characteristics of service quality to help market their services1980s researchers Parasuraman, Zeithaml, and Barry identified ten demensions of service quality called SERVQUAL:– tangibles, reliability,

responsiveness, competence, courtesy, credibility, security, access, communication, and understanding the customer

Researchers McDonald, Sutton, and Milne created TEAMQUAL service quality dimensions:– Reliability – perform promised

services dependably and accurately– Assurance – employees knowledge

and courtesy– Empathy – caring, individual

attention paid to pro sports customers

– Responsiveness – willingness to help customers and provide prompt service

– Tangibles - appearance

Quality of ServiceQuality of Service


Sports Product ClassificationsSports Product ClassificationsSports businesses or organizations that offer a variety of products classify their products by product line and product mix– Product line is a group of closely related products manufactured

and/or sold by a company• Satisfy a class of needs and may be used together, sold to same

customer group, sold through same type of outlets, or have same price range (ex. Nike DryFit product line)

– Product mix is the total assortment of products that a company makes and/or sells

• Companies can either specialize in one specific product mix or have a very broad product mix (ex. Wilson Sporting Goods)

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Sports Products and Product ExtensionsSports Products and Product ExtensionsSports products differ from typical consumer products because sports products have the ability to generate a greater variety of product extensions– Allows money to be made from products surrounding main

eventSports goods and services have the potential to generate income and affect the economy with one or more related products– All become the focus of marketing activities for businesses,

organizations, and consumers.14

Section 4.2 – Economic Impact of Section 4.2 – Economic Impact of Sports Marketing - ObjectivesSports Marketing - Objectives

Explain the economic impact of sports marketing Define opportunity costIdentify the impact of grassroots marketing on sports marketing

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Section 4.2 – Economic Section 4.2 – Economic Impact of Sports MarketingImpact of Sports Marketing

Economic EffectsEconomic EffectsFrom the moment the consumer inquires about a ticket to a sporting event, there is an impact on the economyThe local economy improves as a result of money spent at sporting events

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Economic EffectsEconomic Effects – cont. – cont.Each decision made at a sporting event keeps people involved in the event employed in jobs at venue– Employed individuals participate in paying taxes– Tax dollars are spent for roads, new construction, public transportation,

and police

Each decision the consumer makes involves an opportunity cost– Opportunity Cost is the loss of the opportunity that is passed up in

order to receive something in exchange– Affect sports marketing because it impacts how consumers decides to

spend his or her discretionary income17


Economic EffectsEconomic Effects – cont. – cont.Satisfied customers will have a continuous impact on not only the growth of the team, but also on the local economyAs the economy grows, the more infrastructure is needed to support the athletic event– Infrastructure is the physical development of an area, including the major

public systems, services, and facilities of a country or region needed to make a location function

• Power and Water Supplies, Public Transportation, Telecommunications, Roads, Schools

Entire process of economic growth leading to infrastructure changes, contributes to the economy

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SportingEvent

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Economic Impact of Sports

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SportingEvent

TicketAgent

ParkingGarage

Food andMerchandise

Sanitation

The Internet

Taxes

Infrastructure

City Pride


The Sunshine State Case Study Orlando, Florida, is the home of an NBA sports franchise called

the Orlando Magic– Sports franchise is an agreement or contract for a sports organization

to sell a parent company’s (i.e., a national sports league) good or service within a given area

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

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Grass Marketing EffortsGrass Marketing EffortsTo gain support from within their community, many teams get heavily involved in grassroots marketing– Grassroots marketing is marketing activities on a local

community level• Example – Helping and assisting the community with charity

and fund-raising events– Helps build a relationship between the community and the team– A positive relationship between the community and the team can

help the economy of an area– Economic success promoted by sports marketing for events and

products on a local level extend to regional or national levels21

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

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