SPMT 483 – Chemistry Flashcard

Sport Product
. Any bundle or combination of qualities, processes, and capabilities that a buyer expects will satisfy wants and needs
. inconsistent
. the game is only part of the ensemble
. little control over the game
Core Elements
. game form (rules and techniques)
. players
. equitment
. venue
Things that enhance the experience
. coaches
. tickets
. luxury boxes
. programs
. video screens
. music
. memorabillia
. mascots
Game Form
. most changes in rules and techniques are centered around attempts to gain a competitive advantage
. special features that may make a sport product attractive to certain customers
. individul moves
Star Power
. a presence that transcends the actual playing
. extended beyond the event
. star talent can make or break the league
. sponsor are keys to broad product extension
Equipment
. needed to compete
. tangible
. enhances experience
. demonstrates affilitation
. separates players from nonplayers
Venue
. place of distribution
. teams and francjoses are closely alligned with venue.
. memories created
. communities created
. provides revenue streams during and outside game days
Personnel
. point of contact for customer
. Disney’s guest-centered policy
Organization
. all elements of the product are under one umbrella
Sport Product Strategy
. differentiation
. product development
. product position
. brands and branding
Differentiation
. markets and venues
. star appeal
. tv
. season of play

. ex: WNBA v. ABL

Product Development
. generation of ideas
. screening and implementation of ideas
Product Innovations
. relative advantage of new product over old preferences
. complexity or difficulty in adoption and use
. compatibility with consumer values
. divisibility into smaller trial portions
. communicability of benefits
Positioning
. how customers located proposed and present brands in the market
. defines the market that will be targeted
. assists sport manager in understanding how customers see their market
. based on that information, the marketer can maintain position or attempt to reposition the product
Potential Attributes
. excitement level
. price
. proximity to action
. level of performance
. authenticity
. affiliation
. socalization
Brand Equity
. name recognition and awareness
. strong mental or emotional associations
. percevied name branding
. strong customer loyalty
. NIKE
Life Cycle
. introduction
. growth
. maturity
. decline
Brand
. name, logo, symbols
. provide point of differentiation from the other sport products
. starting point in the brand management process: name, logo, marks, colors
Brand Equity
. set of assets and liabilities linked to a brand, its name and symbol that add to or subtract from the value provided by a product or service to a firm and its customers
Benefits of Brand Equity
. less drastic revenue declines when team loses
. ability to charge price premiums
. more corporate interest
. licensing and merchandising opportunities
Developing Brand Equity
. creation of awareness about the brand
. creation of brand image
Brand Equity Equation
brand assets- brand liablities
Associations Formed based on benefits of consumption
. nostagic
. social
. identification with a team
. identificiation with a city
brand association formation for sponsors
. enhance or reinforce the brand associations with their company
. the image can help create strong, unqiue, and favorable associations for the brand
Brand association formation for agencies
. clients they represent
. people who work for them
. area of specialization
Brand Ass. for Health Clubs
. services and equipment provided
. staff
. size and quality of facility
. cost
. amentities
. crowd size
Tipping Point Theory’s Impact on Throwback Licensed Products
1. Contagiousness
2. Stickiness
3. Rapidity of change due to one big moment
Contagiousness
efforts of a handful of exceptional people
Stickiness
how people identify and remember information
Licensed Products
. items of clothing or products bear the name or logo of a popular team
. industry is huge
#1 Texas (2. Alabama 3. Florida)
#19 Texas A&M
Clothing
. clothing styles are a transmitted code that can impact meanings of:
.identity
. gender
. status
. sexuality
Licensed Product Relationships
. The Licensees vs. the Licensors
Licenees
. maufacturers of licensed products
. Nike, Reebok
Licenees
. maufacturers of licensed products
. Nike, Reebok
Licensors
. licensees pay the licensors for the right to make products bearing team names and school names
. sporgs transfer the right use of their names, marks, and logos to other companies so that these companies may use them in producing products for sale
Trademark
. any word, name, symbol, or device or combo
. adopted and used by a maufacturer or merchant to identitfy his goods and distinguish them from those maufactuered of sold by others
. have to apply for the mark – basis for filing
Industry Structure
. pro. league licensing
. collegiate licensing: CLC
. licensing programs of other sporgs
. international licensing
. licensing in pro individual and tour sports
In House Source
. keep all revenue
. do not have the expertise
. difficulties in reinforcement
Out House Source
. give a % of royalties to licensing agent
. gain expertise
. have an enforcement arm
Branded Merchandise
. those products bearing the name of the clothing manufacturer
. sppealing to the youth market
. fashion over function
Brand Identity
. measures of meaning, prestige, and social standing in consumer society
. teams establish valued perceptions through redesign of their uniforms, marks, and logos
Rebranding
changing to communicate different message
Cross- Licensing
. relationship between two licensors that benefit both
electronics and technology
modern tech. leads to new opportunities
Trading Cards
. Topps was preeminent card maker until 1981
. market flooded after antitrust ruling
. memorbillia inside, special sets, high-end card sets
Pricing
. the exchange value of a good or service and the value of an item in the market place
. MOST manipulated part of marketing
. easily changed
. effective tool
. highly visible
Core Issues of Pricing
. cost
. value
. objectives
. satisfaction= benfit- cost
. cost is the most visible and coompelling part
Cost vs. Price
price of a ticket does not represent the real cost of attendance :
.travel
.parking
.concessions
Potential Pricing Objectives
. efficient use of resources
. fairness
. maximum participation opportunities
. positive user attitudes and image
. maximum product exposure and distribution
. profits
. survival
Standard Appraches to Pricing
. production costs
. market conditions
. competitors prices
. organizational objectives
. product or event frequency
. brand strength
Break- Even Analysis
. fixed cost: stadium rental, taxes, office equipment
. variable cost: wages, material cost, concession stands

* FC/ (selling price- VC)

Economies of Scale
efficiencies that accrue due to size
diseconomies of scale
organziation can become too large
marginal revenue
additional rev. from last unit sold
marginal cost
additional cost from last until sold
cost- plus pricing
. cost + desired profit= price
. account for cost paid, then mark up to desired level
. demands accurate FC and VC info
Capitation Pricing
. offering a price “per head”
. typically used on a group basis
. providing a group discount (creates a bulk revenue stream)
What will the market bear
. largely based on experiencenad comparisons
. mistakes can be costly
special pricing factors
. market demand
. lead time
. user segemtnation
. discounting
. smoothing
. actions of competitors
Market Demand
. the elasticity of demand= percent change in q demanded/ percent change in price
. a measure of how sensitive a market is to price change
inelastic
. occurs when a given % change in price results in a small percentage change in quantity
. increase in price will mean increase in profits
elastic
. exisits when a given percentage change in price results in a larger percentage change in quantity
. increase in price will mean decrease in profits
unitary
. when a given percent change in price results in an equal percentage change in quantity
. end result is same as before
Inelastic Demand
. an increase or decrease in price will not significantly affect demand for the product
elastic demand
. when customers buy more or less of a product when the price changes
penetration pricing
. pricing in the lower range
. beleive that you have an elastic market and lower price will increase the quanitity purchases
. goods priced below this level are perceived as cheap
Skim Pricing
. pricing high in the expected range of prices
. demand is inelastic
. luxury or prestige goods
Lead Time
the average amount of time between ticket purchase and the date of the event typically decreases as the price for the event decreases
user segmentation
. sinlge game
. miniplan
. season tickets
. group tickets
Price and Value Elements
. clear image of the venue, ticket location, and direction to venue
. clear table of discounts if part of the plan
. focus on value added
. calendar
Sales
. lifeblood of any sporg
. majority of revenue
.
media
provides the amount of coverage according tothe interest accorded the sport by the fans
sponsors
provide financial support for the sporg based on fan support
fans
their support attracts sponsors
Developing & Managing a sales dept.
. properly train the staff
. have resources to accomplish goals
. incentives for motivation
Incentives
. team goals
. individual sales staff goals
. fair commission structure
direct-data based marketing
. an interactive system of marketing that uses one or more advertising media to effect a measureable response and or transaction at any location
. collection of info. about past and current customers
sales strategies
. telemarketing
. direct mail
. personal selling
direct mail
.targeted
.personel
.measureable
.testable
.flexable
long term customer relationships
1. quality as conformance
2. customer satisfaction
3. market perceived quality vs. that of competitors
4. customer value management

(replacing a customer costs 5 times as much as an exisiting customer)

Sponsorship or Partnership
. a cash or inkind fee paid by a client to a property in return for access to the exploitable commercial potential associated with the property
. a win win situation where the clietnt and the property both benefit
Sponsorship
. the acquisition of rights to affiliate or directly associate with a product or event for the purpose of derviving benefits related to that affiliation
.
Sponsorship Categories
. names are irrelevant as long as you match the benefits with the level of the sponsorship
. do not have competing sponsors
. be aware of sponsor relationships
. do not have too many sponors
What to want from sponsors
. revenue
. cost avoidance
. activation
. commitment to the association
Activation
invest dollars beyond their sponsorship obligation
Effectiveness
. return on investment – revenue generated
. number of impressions- how many people saw or heard
Affinity marketing
an individual’s levels of cohessiveness, social bonding, identification, and conformity to the norms and standards of a particular reference group :
. credit cards
. rewards programs
. donations
Ambush/Guerilla Marketing
. a pllaned effort by a sporg to associate themselves indirectly with an event in order to gain at least some of the recognition and benefits that are associated with being an official sponsor
6 step process of sponsorships
. indentify and arrange meeting
. hold meeting
. arrange follow up meeting
. create proposal
. hold follow up meeting
. negociate final deal
Ethical Issues
. undue influence
. social responsibility
. unfair labor practices
. alcohol sponsorship

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