Unit 4:Unit 4:THE SPORT PRODUCTTHE SPORT PRODUCT

Sports MarketingSports MarketingMr. ElsesserMr. Elsesser

EXAMINING theEXAMINING the SPORTS PRODUCT: SPORTS PRODUCT:

The core sport product is intangible.The core sport product is intangible.– Ex) Entire franchise or business operationEx) Entire franchise or business operation

The sport product is inconsistent from The sport product is inconsistent from consumption to consumption.consumption to consumption.

The core game or performance is just one The core game or performance is just one element of a much larger product.element of a much larger product.

The marketer has little control over the core The marketer has little control over the core productproduct– Must focus efforts on product extensions.Must focus efforts on product extensions.

The Sport Product CoreThe Sport Product Core The core is the event experience The core is the event experience

composed of four components:composed of four components:– Game TypeGame Type– PlayersPlayers– EquipmentEquipment– VenueVenue

For sport to take place, these basic For sport to take place, these basic product elements must always be present.product elements must always be present.

SPORT PRODUCT EXTENSIONSSPORT PRODUCT EXTENSIONS 5 Extensions are built around “The Core” and are 5 Extensions are built around “The Core” and are

directly affected by sport success directly affected by sport success (winning & $$$$).(winning & $$$$).– Novelties and FantasiesNovelties and Fantasies

• Toys, cards, online fantasy games, fantasy camps, Toys, cards, online fantasy games, fantasy camps, autograph sessions.autograph sessions.

– Personnel and ProcessPersonnel and Process• Greater communication between Greater communication between

organization and fans.organization and fans.

SPORT PRODUCT EXTENSIONSSPORT PRODUCT EXTENSIONS

– Ticket and Printed MaterialTicket and Printed Material• Used as promotional and sponsorship tools. Used as promotional and sponsorship tools.

– Internet/Electronic ProductsInternet/Electronic Products• Keep fans up-to-date and involved.Keep fans up-to-date and involved.

– The OrganizationThe Organization• Sports is a business ultimately.Sports is a business ultimately.

KEY ISSUES FOR SPORTKEY ISSUES FOR SPORT PRODUCT MANAGEMENTPRODUCT MANAGEMENT

Managers and Marketers must manage sport Managers and Marketers must manage sport products very carefully in an ever-increasingly products very carefully in an ever-increasingly competitive industry.competitive industry.

They do so in generally four ways:They do so in generally four ways:1)1) Product DifferentiationProduct Differentiation2)2) Product DevelopmentProduct Development3)3) Product PositioningProduct Positioning4)4) Product BrandingProduct Branding

PRODUCT DIFFERENTIATIONPRODUCT DIFFERENTIATION The act of designing a set of meaningful The act of designing a set of meaningful

differences to distinguish the product from a differences to distinguish the product from a competitor’s product.competitor’s product.– The goal is to Establish a Competitive AdvantageThe goal is to Establish a Competitive Advantage

Marketers must use their knowledge and Marketers must use their knowledge and imagination to recognize the ways in which imagination to recognize the ways in which their products may be distinct in the their products may be distinct in the consumers’ minds.consumers’ minds.– Ex. Who do the NY Islanders really want to be?Ex. Who do the NY Islanders really want to be?

– Who are they really known as?Who are they really known as?

PRODUCT DEVELOPMENTPRODUCT DEVELOPMENT Product Development includes six basic Product Development includes six basic

steps:steps:

1)1) Generation of IdeasGeneration of Ideas2)2) Screening of IdeasScreening of Ideas3)3) Market and Business AnalysisMarket and Business Analysis4)4) Development of ProductDevelopment of Product5)5) Market TestingMarket Testing6)6) Commercialization--mass production and Commercialization--mass production and

distributiondistribution

PRODUCT POSITIONINGPRODUCT POSITIONING Focuses on how the consumer will perceive an Focuses on how the consumer will perceive an

organization’s product.organization’s product. Role of the Marketing Team:Role of the Marketing Team:

– Research and Answer such questions as:Research and Answer such questions as:• Where does our product fit in the overall marketplace?Where does our product fit in the overall marketplace?• Who is our primary target market? Who is our primary target market?

Examples:Examples:– Will hockey be successful in warm climates?Will hockey be successful in warm climates?– Will golf continue to rise in popularity after Tiger fades from our Will golf continue to rise in popularity after Tiger fades from our

minds?minds?– Will the NFL keep regular season games in Europe?Will the NFL keep regular season games in Europe?

PRODUCT BRANDINGPRODUCT BRANDING

The overall image of a product in its marketThe overall image of a product in its market::– Includes name, colors, logo, style of play, etc.Includes name, colors, logo, style of play, etc.

Example:Example:– Yankee pinstripes is a core part of the Yankee Brand.Yankee pinstripes is a core part of the Yankee Brand.– The colors The colors greengreen and and yellowyellow represent the Packers represent the Packers

Brand.Brand.

WAYS TO ESTABLISH WAYS TO ESTABLISH PRODUCT BRANDINGPRODUCT BRANDING

Product Branding for customer awareness Product Branding for customer awareness and loyalty can be established through many and loyalty can be established through many methods:methods:– Tangible Product ExtensionTangible Product Extension

• MerchandiseMerchandise– Star Players/CoachesStar Players/Coaches

• Joe Torre, Bill Parcells, Terry Francona, Joe Torre, Bill Parcells, Terry Francona, Derek Jeter– All gave their associated teams an imageAll gave their associated teams an image. .

– Distinct patents/TrademarksDistinct patents/Trademarks• Nike SwooshNike Swoosh

– History and TraditionHistory and Tradition• PGA’s Green Jacket, NYYPGA’s Green Jacket, NYY

– Festival and SpectacleFestival and Spectacle• PROMOTE, PROMOTE, PROMOTEPROMOTE, PROMOTE, PROMOTE

PRODUCT AND PRODUCT AND BRAND CYCLESBRAND CYCLES

All product go through a four stage Product All product go through a four stage Product Life Cycle:Life Cycle:– Introduction StageIntroduction Stage

• Low profit, high expenseLow profit, high expense– Growth StageGrowth Stage

• Growing profits, still great expenseGrowing profits, still great expense– Maturity StageMaturity Stage

• Leveling of profits and expenseLeveling of profits and expense– Decline StageDecline Stage

• Profits declining, decisions for produce future need to Profits declining, decisions for produce future need to made.made.

What stage of the life cycle do you think What stage of the life cycle do you think your favorite sport is in?your favorite sport is in?