Download - MKTG 4320 Sport Marketing
MKTG 4320Sport Marketing
STP, Research, Pricing
How do sport marketers help sport product succeed economically?
Product Development
Segmentation
Positioning
Targeting
Strategic Differentiation:
Market Segmentation
Divides a heterogeneous group into smaller homogenous segments
Groups have similar wants and similar responses
Ex.: The “women’s market”
What do you do when you are: NASCAR NFL team NHL team MLS team
NASCAR
Allstate "Girls Day Out II"
Number of titles: 21. Currently in print: 1 million
NFL
Football 101 Raven’s “Club Purple”
Other Initiatives:
MLB: Mother’s Day community outreach with Charity Component (e.g., Fight Breast Cancer).
MLS: Put features of their players in women’s magazine (education about players and game). Team level efforts include ads targeting “moms”.
NHL with Reebok launch line of women’s apparel.
Why do sport marketers care about product’s position on product-space map?
Where do sport consumers see you, based on important attributes?
Product Position
How the product is positioned in consumers’ minds
Positioning for Media, Sponsors, Spectators: The US Open Series
The Role of Research in
Sport Marketing
You need to:
Appreciate marketing information system
Understand research methods
Recognize available internal and external data sources
Marketing Research
Basic data are essential to good decision making
Key is ongoing and systematic research
Challenge is taking data collected, analyzing it, and making sense of it
A marketing information system (MIS) is integral
Marketing Information System (MIS)
Can range from index cards to a fully integrated database
Complexity depends on:
Size, geographic dispersion of market
Availability of data
Budget
Organization leadership
What question should sport marketers ask? Why?
Information From MIS
Who consumes our product?Who decides on the purchase?Who consumes our competitors’ products?
What products compete with ours?What products complement ours?What are the key benefits sought by consumers?
When do consumers buy?
How do consumers consume our product?
Information From MIS
Size of market
General Market Data
Market demographics
Purchase behaviors
Spectatorship or participation level
Future trends
Information From MIS
Contact names and numbers of all consumers
Product usage behavior (e.g., frequency)
Individual Consumer Data
Method of payment
Market’s chosen media
Pattern of consumption
Information From MIS
Competitor
An organization offering similar products
Usually located within 30-minute drive
Competitor Data
Visit competitors to gather data
Hire “mystery shoppers”
Data Sources for MIS
Internal—within-organization information
External—information from outside the organization
Internal MIS Data Sources
Sales records
Inquiries
Communications of praise/complaint
External MIS Data Sources
Census reports
State agencies
Secondary Sources
Public libraries
Chambers of commerce
Trade associations
Professional research services
Trade and scholarly press
External MIS Data Sources
Communicate with target market
Primary Sources
Importance of primary research
Initiate data-based marketing efforts
Types of Primary Market Research in Sport
Observation
Focus groups
Surveys and questionnaires
On-site, mail, telephone, computerized, Internet
Personal interviews
Panels of experts
Mystery shoppers
You were just hired as assistant marketing director for the Toronto Argonauts. During the first meeting you impress your boss by saying that what you guys need is to enter the 21st century with a sleek customer database. Your boss asks:
What information do you want in there?
What will you do with it?
Team work: What do you do with a customer database?
Pricing Strategies
The Basics of PricingWhat needs to be priced?
Tickets
Memberships
Signage
Apparel
Concessions
Price according to location, image, and time (why time?).
The Basics of Pricing
Easily changed
Effective with elastic demand
Highly visible
Important to consumers
Core Issues
Fan Cost Index (FCI)
Cost From Consumer’s Perspective
Fan Cost Index (FCI)
Reported annually
Includes all price elements for professional event
4 average-priced tickets
2 beers (small)
4 sodas (small)
4 hot dogs
2 game programs
2 game caps
Parking
Example: NHL
“The Toronto Maple Leafs have the most expensive tickets at $76.15 (USD)* and the priciest FCI at $411.30. The Montreal Canadiens are second in both categories at $64.26 and $361.25, respectively. Fellow Original Six teams, the Boston Bruins and New York Rangers, are third and fourth in FCI rankings at $352.60 and $348.84.”
Team Marketing Report 2009
Value and Price
High price not necessarily detrimental
Price often associated with perceived quality
Product value includes more than winning:
convenience, aesthetics, cleanliness, availability, durability
Standard Approaches to Pricing
Production costs
Market conditions (supply and demand)
Competitor’s price
Product and event frequency
What the Market Will Bear
What could be the result of an incorrect decision?
Can you give an example?
If hunches are wrong, results can be costly
Would any particular group be more sensitive to price change? Why?
Special Pricing Factors to Consider
Pricing based on user group
Corporate season-ticket holder
User Segmentation
Single-ticket purchasers
Special groups
Student packages
Unbundling
Special Pricing Factors to Consider
Time—bundled packages
Prime vs. non-prime time
Time and Place Smoothing
Price scales in venue
Key factors—proximity, line of sight, and demand
Note the Escalator!
Price hikes threaten to push consumers off escalator
Emphasize other features of the product