MKTG 4320 Sport Marketing

1. MKTG 4320Sport Marketing STP, Research, Pricing

2. Product Development How do sport marketers help sport product succeed economically? Strategic Differentiation: Segmentation Targeting Positioning

3. Market Segmentation Divides a heterogeneous group into smaller homogenous segments Groups have similar wants and similar responses

4. Ex.: The “women’s market” • What do you do when you are: • NASCAR • NFL team • NHL team • MLS team

5. NASCAR Number of titles: 21. Currently in print: 1 million Allstate "Girls Day Out II"

6. NFL • Football 101 • Raven’s “Club Purple”

7. 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.

8. Product Position How the product is positioned in consumers’ minds Why do sport marketers care about product’s position on product-space map? Where do sport consumers see you, based on important attributes?

9. Positioning for Media, Sponsors, Spectators: The US Open Series

10. The Role of Research in Sport Marketing

11. You need to: Appreciate marketing information system Understand research methods Recognize available internal and external data sources

12. 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

13. 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

14. Information From MIS What question should sport marketers ask? Why? 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?

15. Information From MIS General Market Data Size of market Market demographics Purchase behaviors Spectatorship or participation level Future trends

16. Information From MIS Individual Consumer Data Contact names and numbers of all consumers Product usage behavior (e.g., frequency) Method of payment Market’s chosen media Pattern of consumption

17. Information From MIS Competitor Data Competitor An organization offering similar products Usually located within 30-minute drive Visit competitors to gather data Hire “mystery shoppers”

18. Data Sources for MIS Internal—within-organization information External—information from outside the organization

19. Internal MIS Data Sources Sales records Inquiries Communications of praise/complaint

20. External MIS Data Sources Secondary Sources Census reports State agencies Public libraries Chambers of commerce Trade associations Professional research services Trade and scholarly press

21. External MIS Data Sources Primary Sources Importance of primary research Communicate with target market Initiate data-based marketing efforts

22. Types of Primary Market Research in Sport Observation Focus groups Personal interviews Panels of experts Mystery shoppers Surveys and questionnaires On-site, mail, telephone, computerized, Internet

23. Team work: What do you do with a customer database? • 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?

24. Pricing Strategies

25. The Basics of Pricing What needs to be priced? Tickets Memberships Signage Apparel Concessions Price according to location, image, and time (why time?).

26. The Basics of Pricing Easily changed Effective with elastic demand Highly visible Important to consumers

27. Core Issues Cost From Consumer’s Perspective Fan Cost Index (FCI)

28. 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

29. 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

30. 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

31. Standard Approaches to Pricing Production costs Market conditions (supply and demand) Competitor’s price Product and event frequency

32. What the Market Will Bear If hunches are wrong, results can be costly What could be the result of an incorrect decision? Can you give an example?

33. Special Pricing Factors to Consider User Segmentation Pricing based on user group Corporate season-ticket holder Single-ticket purchasers Special groups Student packages Unbundling Would any particular group be more sensitive to price change? Why?

34. Special Pricing Factors to Consider Time and Place Smoothing Time—bundled packages Prime vs. non-prime time Price scales in venue Key factors—proximity, line of sight, and demand

35. Note the Escalator! Price hikes threaten to push consumers off escalator Emphasize other features of the product