Defining the Product Offering
MKT 3865Dr. Don Roy
What is a product?
How Does a Business Grow?
Products
Ma
rke
ts
New
Ne
w
Existing
Exi
stin
g
MarketDevelopment
MarketPenetration
Diversification
ProductDevelopment
The Sports Product
Tangible Product Intangible Service
Live Experience Digital Experience
Personalities
ProductPortfolio
What are the 3 levels of a product?
Levels of a Product
Core ProductBenefits Provided
Actual ProductCharacteristics
or Attributes
Augmented Product
Value AddedFeatures
Source: Based on Gary Armstrong and Philip Kotler (2011), Marketing: An Introduction, 10th edition, Upper Saddle River, NJ: Prentice Hall.
Which of the 3 levels of a product has the greatest potential to be used to differentiate a sports product from its competition?
Why?
Augmented Product Adds Value for College Football Game Attendees
Actual Product Element
Augmented Product Element
Value Added
Parking Lot Reserved lots; Trolley service; Tailgating areas
Convenience, socialization
Seating Area Suites, club seats, chair-back seats
Exclusivity, comfort
Concessions Restaurants Quality, variety
Scoreboard HD video scoreboards Entertainment, aesthetics
Halftime Halftime contests Entertainment, involvement
Home Team Pre-game team “walk” Excitement, access
XFL: Dissecting the Product
Actual Product• Mix of NFL/non-NFL
markets• “Scramble” replaced
coin toss• No PAT kicks• “No fair catch” rule• Game winning bonus
for players
Augmented Product• On-field cameras• Coaches and locker
rooms “miked” • “He Hate Me”• Racy cheerleaders
XFL: Dissecting the Product
What are 4 influences on the adoption of an innovation by consumers?
Influences on Innovation Adoption
• Relative advantage Point of difference compared to status quo
• CompatibilityCongruent with consumers’ desires and behaviors
• ComplexityEase of learning
• TrialabilityDo incentives exist for sampling or first use?
XFL Post Mortem
• Debut season – 2001
• Last season – 2001
• Why did the XFL fail?
Using New Products to Drive Growth
1. Expand existing customer relationships
2. Attract new customers in existing markets
3. Enter new markets
Growth-by-Product Examples
LeverageExisting
RelationshipsNew
Customers /Existing Markets
Enter New Markets
