question

Separability

answer

of product and consumption

question

Heterogeneity

answer

Products are mass produced and events always different

question

Intangibility

answer

you can touch products cannot touch events

question

Perishability

answer

products can be kept events can not

question

- All sports depend on human performance

answer

by the players, fans, and marketers

question

- The sport product is inconsistent from consumption to consumption

answer

o Uncertainty- the consumer is in control of the final experience

question

- The sport experience includes:

answer

o Venue/atmosphere o Equipment/Apparel o Music/Entertainment o Concessions/Food o Pre-/Post-game activities

question

- The marketer typically has little control over the core product and consequently must focus efforts on product extensions

answer

o In sport marketing, winning can never be the only thing

question

Key issues in Sport Product Strategy

answer

- Differentiation - Product development - Product position - Brands - Product and brand cycles

question

Differentiation

answer

- Marketers must consider their consumers and their competitors simultaneously o Product must be distinct and attractive - How can we make our product distinct from competitors? o What do we offer that they do not? o Consider the core and extended elements of the sport product

question

Product Development

answer

- Marketing is a process o Marketers must continuously develop the product- they may need to delete, revise, or add elements that make up the product benefits • Generate ideas • Screen/implement ideas (analyze, develop, market test, etc.)

question

- 5 Perceptual issues in Product development

answer

o Relative advantage of the new product over old preferences o Complexity or difficulty in adoption and use o Compatibility With consumer values o Divisibility into smaller trial portions o Communicability of benefits

question

Product Position

answer

- The elements of a sport product contribute to a consumer's image of the product - When all elements of the product provide the same message, the image is clear and distinct - Positioning occurs at all levels of sport, in all sports

question

- Five images to consider:

answer

o Trademark imagery • Mark or logo of an organization o Product imagery • Apparel, team performance o Associative imagery • Associations with the product (e.g., Nike & top athletes) o User imagery • Fans/consumers of a particular product (e.g., NY Yankees fans' image of Bostonians) o Usage imagery • Frequency of use, high-tech, etc.

question

Brands and Branding

answer

- Branding is both means and an end to product differentiation o Brand building never ends - Brands can be communicated through names, marks, logos, images, associations, etc. - Brand equity- the added value of a product from its brand o Brand recognition/awareness o Brand associations

question

How do we distribute the sport product?

answer

- At the facility o It's location, layout, and image - Other distribution channels o Retail distribution (merchandise & apparel) o Ticket Sales

question

- It's all about location

answer

- But also... o Surrounding area o Artifacts o History/memories o Ideologies o Experiences o Aesthetics

question

- Important place considerations:

answer

o Accessibility o Design o Layout o Amenities o Personnel

question

Accessibility

answer

- What factors contribute to individuals' willingness to travel to an event? o Demographics o Duration/frequency of the event o Emotional commitment o Perception of quality o Parking o Surrounding area

question

Design and layout

answer

- Ease of access, exit, and internal movement to minimize length of lines anywhere - Access and sight lines for consumers with physical disabilities - Location/design/number of food services, bars, concessions, restrooms - Flexibility vs. dedicated usage - Aesthetics

question

Amenities

answer

- Connectivity (wireless) - Screens/displays - Sound systems - Upscale food & drink - What else?

question

Promotion is...

answer

- The vehicle (s) by which marketers convey information about sport products - Promotion is a communication tool

question

- What functions do promotions serve?

answer

o Inform (create awareness) o Persuade (encourage action) o Remind o Position a product in the mind of consumers

question

Inform

answer

- Associated with the introductory phase of the product life cycle - Do not take awareness for granted - Important objective for targeting new consumers - Also important for product changes and product (or brand) extensions

question

Persuade

answer

- Attempts to convince a consumer to purchase a product, encourage action - Informing- informational strategy o Provide factual, relevant information - Persuading- transformational strategy o Associate consumption with consumer motives/satisfaction of consumer need (and/or wants)

question

Remind

answer

- Remind consumers of product availability and product benefits - Maintain top-of-mind awareness - The objective of reminding is retention - May use informational or transformational strategy

question

Position

answer

- Establish image and associations in mind of consumers - This goes beyond informing. It is about establishing specific associations - What associations do we make with certain brands?

question

Repositioning a brand

answer

- There all sorts of reasons that we might want to reposition our brand

question

Promotion Mix

answer

- Advertising - Sales - Personal Selling - Public relations - Direct marketing

question

Advertising

answer

- Any paid form of non-personal presentation and promotion of ideas, goods, or services - Includes broadcast, print, internet, outdoor, and other forms

question

Advertising Advantages

answer

o To reach mass audience o To repeat a message o To reflect seller's popularity o To build up a long-term image

question

Advertising Disadvantages

answer

o Only a one-way communication o Can be very costly (e.g., TV)

question

Sales

answer

- What is sales promotion? o Short term incentives to encourage the purchase or sale of a product or service - Includes discounts, coupons, displays, and demonstrations

question

Sales Advantages

answer

o To attract consumer attention o To offer strong incentives o To invite quick response

question

Sales Disadvantages

answer

o Effects are often short lived o Not as effective as ad or personal selling in building long run brand preference and customer relationships

question

Personal Selling

answer

- What is personal selling? o Personal presentation by the firm's sales force for the purpose of making sales and building customer relationship - Includes sales presentations, trade shows, and incentive programs

question

Personal Selling Advantages

answer

o To convey more and complex information to the target audience o To increase the chances of developing a long-term relationship by solving customer's problems

question

Personal Selling Disadvantages

answer

o To require a longer-term commitment but size of a sales force harder to change o The company's most expensive promotion tool

question

Public Relations

answer

- Building good relations with the company's various publics by... o Obtaining favorable publicity o Building up a good corporate reputation and image o Handling or heading off unfavorable rumors, stories, and events - Includes press releases, sponsorships, special events, and web pages

question

Public Relations advantages

answer

o To seem more real and believable o To dramatize the company or product o The message gets to consumers as news rather than as ads

question

Public Relations Disadvantages

answer

o Never controlled by the public relations department whether a message is delivered, interesting, and important or not

question

Direct Marketing

answer

Direct connections with carefully targeted individual consumers to... Acquire an immediate response Retain lasting customer relationships Includes direct mail, catalogs, telephone, kiosks, the Internet, mobile marketing, and more.

question

Direct Marketing Advantages

answer

Messages can be immediate and customized to appeal to specific consumers Messages can be altered depending on the consumer's response Building one-to-one relationships

question

Direct Marketing Disadvantages

answer

To face growing invasion-of-privacy concerns [The internet security issues] Unwanted junk mail, spam, pop-under ads

question

Promotional objectives

answer

- The goal of promotion in particular is to move target consumers through the buying process - It all starts with understanding customer needs and wants

question

Dynamic Pricing

answer

- Pricing the sport product is often based on the marketer's sense of consumer demand- for certain seat, for certain times of day, for certain privileges.

question

Fixed Pricing

answer

- What if we fixed our prices? Everyone pays the same price for every seat, no matter where it is. What if we did the same for concessions too?

question

Sport Pricing

answer

- Sport Marketers need to consider... o What strategy would you implement to set the right price? o What factors would you consider when making your pricing decision? o Will the financial benefit of increasing prices offset the negative fan relations

question

Sport pricing concepts

answer

- What is the Price? o Price is a statement of value for a sport product o The sum of the values that customer exchange for the benefits of having or using the sport good or service o The price paid by the consumer is a function of the value placed on the sport product

question

The Basics of Pricing

answer

- Price is critical element in the marketing mix because... o It is the only element that produces revenues; all other elements represent costs o It is the one of the most flexible marketing mix elements; it can be readily changed and easily communicated o It has a direct impact on a company's bottom line (i.e., the overall profit)

question

Core Issues

answer

- Cost vs. Price o A range of prices for the real cost of attendance might be paid based on certain values (e.g., seat) o The price of a ticket does not represent the real "COST" of attendance o The obvious point is that sport marketers must appreciate total cost from the consumer's perspective - If the company prices the product below its costs, the company's profits will suffer - Price Floor= no profit below this price - Fan cost Index (FCI) by TEAM MARKETING REPORT o It measures the real price of attending a game

question

- FCI price elements

answer

o Two adult average price tickets o Two child average price tickets o Four small soft drinks o Two small beers o Four hot dogs o Two programs o Parking o Two least-expensive adult-size caps

question

Perceived benefits minus total cost = value satisfaction

answer

- Each consumer's perception of value is based on his or her own unique set of experiences with the sport product - If customers perceive that a product's price is greater than its value, they won't buy it

question

- Price Ceiling-

answer

no demand above this price

question

- Customer Value-Based Pricing

answer

o Setting price based on consumers' perceptions of value rather than on the seller's cost

question

Cost-Based Pricing

answer

- Setting price based on the costs for producing, distributing, and selling the product plus a fair rate of return for its efforts and risk

question

- Internal factors of pricing

answer

o Product o Promotion o Distribution o Cost o Organization objectives

question

- External Factors of pricing

answer

o Consumer demand o Competition o Legal o Economy o Technology

question

- Pricing objectives

answer

o Sport marketers must also consider their organization's objectives when setting product prices • Profit • Survival against competitors • Maximum product exposure and distribution • Positive user attitudes or image - No matter what the state of the economy, companies should sell value, not price

question

What is public relations?

answer

- "... a strategic communication process that involves identifying, establishing, and maintaining mutually beneficial relationships between a sports organization and the various publics on which its success or failure depends." - Anticipating, analyzing and interpreting public opinion, attitudes and issues that might impact, for good or ill, the operations and plans of the organizations - Counseling management at all levels in the organization with regard to policy decisions, courses of action and communication, taking into account their public ramifications and the organization's social or citizenship responsibilities - Researching, conducting and evaluating, on a continuing basis, programs of action and communication to achieve the informed public understanding necessary to the success of an organization's aims - Planning and implementing the organization's efforts to influence or change public policy

question

Why is it important?

answer

- What do the various publics think about the sport organization? - What is going on that may influence what the various publics think about the sport organization? - What can be done that may influence what the various publics think about the sport organization

question

- Media Relations:

answer

Involve formulating and shaping favorable opinion through the mass media o News (press) releases o Interviews o Media guides o Blogs/Tweets - Proactive- shape/formulate - Reactive- respond - Interactive- work with

question

Community Relations

answer

Activities which benefit a community and its members, which in turn may foster community support, loyalty, and goodwill - Corporate Social Responsibility (CSR) o Corporate citizenship o Corporate philanthropy

question

Perception is reality

answer

- If our consumers think something about us, it does not matter if we think it is true or not - Consumer's perception is what matters, because their decision to engage us depends on what they think - We can control the images we send out, but what is reflected back (reputation)

question

The "old-new" concept

answer

- Relationship marketing is not a new concept - Earning customer's favor and loyalty by satisfying their needs and wants o "As merchant, you'd better have a friend in every town" - Relationship marketing did not enter the literature until the 1980's - What is surprising is that (1) researchers and businessmen have concentrated far more on how to attract customers to products and services than on how to retain those customers, (2) there is almost no published research on the retention of service customers, and (3) consumer evaluation of products or services has rarely been used as a criterion or index of organizational achievements

question

Retaining customers

answer

- Phrase "relationship marketing" first appeared in work by Berry o Attracting, maintaining, and - in multi-service organizations - enhancing customer relationships - Why are we not trying to hold onto the customers that we already have?

question

The leaky bucket

answer

- Businesses spend a lot of money (and other resources) trying to attract new customers - Known as the "leaky bucket" phenomenon - When you expend all your resources on attracting new customers, there are none left to keep your existing ones happy!

question

Emergence of Relationship Marketing

answer

- Businesses began to realize that it is more expensive to continually attract new customers that it is to retain your existing ones - Described as a paradigm shift - Paradigm is a way of looking at something - Moving away from traditional views of looking at marketing -> seeing relationships as valuable

question

Benefits of Relationship Marketing

answer

- There are benefits of relationship marketing for both the organization, and for consumers - Benefits to the organization o Reduce costs o Create consumer loyalty o Get feedback from consumers - Benefits to the consumer o Continuity of service • We want to be loyal • Organizations/companies have to give us a reason o Chance to give feedback o Influence future service provision

question

Prosumers vs. Consumers

answer

- Relationships allow consumers to give feedback, and organizations to use feedback - If our consumers only use our service once, we never really know what they think - Consumers: Those who consume products (passive consumption) - Prosumers: Blending of "Producer" and "consumer" roles - i.e., consumers have a hand in designing services

question

Prosumers vs. consumers

answer

- Modern consumption often characterized as presumption, but.... o It is a great leap to presume that the availability of digital networked technologies turns everyone into active participants - Not everyone is a prosumer, some people still consume passively

question

Prosumers study

answer

- Study of participants in a running organization for African American women - Do people's behaviors on the organization's website social media platforms (Facebook and Twitter) affect their perceptions of membership value? o Prosumption: Posting on social media (creation of user-generated content) o Consumption: Reading/viewing others' user-generated content (passive consumption) o Non-consumption: Not engaging at all with the organization's social media platforms

question

Prosumers study

answer

- Interactions can form relationships - Prosumption creates value... o .... For prosumers: member-to-member interactions and member-to-organization interactions create value o For consumers: Passive consumption creates more value than non-consumption - Social media is a good way for sports organizations to build relationships with consumers, and help them to build relationships with each other

question

Where does service value come form?

answer

- Remember, value is "what I get for what I give" o Value= Perceived benefits + Perceived sacrifice - Prosumption generates value for both the organization and the consumer o Consumer has influence on the way products are designed and/or delivered o Organizations get feedback to help design/deliver products that consumers want

question

Co-creation of value

answer

- The value that is created is the result of a process of value co-creation - Value is created by both parties (i.e., the organization and the consumer) - Value is also created for both parties

question

Value-creating interactions

answer

- Through interactions with our consumers, we... o ... find out what they think about us o ... find out why they like us, and why they don't like us o ... find out what they want o ... find out how to give them what they want

question

Creating loyalty through social exchange

answer

- Social exchange theory states that reciprocity is a key part of exchange - When somebody does something for somebody, it creates and "obligation" to reciprocate - These obligations are not mandatory, but are grounded in different norms: o Reciprocity as interdependent exchanges o Reciprocity as a folk belief o Reciprocity as a norm and an individual orientation

question

Reciprocity as independent exchanges

answer

- An actor can have at least three different postures to another person (i.e., and exchange partner) o Independence: outcomes are based solely on that person's effort (s) o Dependence: outcomes are based solely on the other person's effort (s) o Interdependence: outcomes are based on the efforts of both parties - For reciprocity, something has to be given, and something has to be returned

question

Reciprocity as a folk belief

answer

- Reciprocity as a folk belief involves the cultural expectation that people will get what they deserve: o A sense that, over time, all exchanges reach a fair equilibrium o Those who are unhelpful will be punished o Those who are helpful will receive help in the future - In other words, everything works out in the end

question

Reciprocity as a norm

answer

- Reciprocity as a norm, or a cultural mandate - This is similar to reciprocity as a folk belief, but with one key difference... - Whereas the folk belief represents a set of assumptions about behavior, the cultural mandate refers to the idea that people ought to reciprocate - If people do not do what they ought to, they will be punished

question

Relationship quality

answer

- What makes a relationship? - Five dimensions of relationship quality: o Trust o Commitment o Intimacy o Reciprocity o Self-connection

question

- Trust

answer

One party's belief that its needs will be fulfilled by actions undertaken by the other party

question

- Commitment

answer

An exchange partner believing that an ongoing relationship with another is so important as to warrant maximum efforts at maintaining it

question

- Intimacy

answer

The degree of familiarity, openness, and emotional closeness of exchange partners

question

- Self-connection

answer

The extent to which an exchange partner sees their values and/or beliefs reflected in the other

question

The Schmitter

answer

Kaiser Top Cheese Special sauce Grilled Salami More cheese Tomatoes Fried onions Steak Even more cheese Kaiser bottom

SPM 4304 ex 2 – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards