The Product Is Sports and Entertainment

1. 7 The Product Is Sports and Entertainment 7.1 The Product Mix 7.2 Recruiting Athletes and Entertainers 7.3 Customized Entertainment 7.4 Product Marketing Strategies

2. Winning Strategies Fame and Fortune Used to Benefit Those in Real Need • Brad Pitt has used his fame to draw attention to those in need. • children with AIDS in Africa • the plight of Haitian children • global poverty conditions • helped sponsor architectural competition to rebuild part of New Orleans Chapter 7

3. Lesson 7.1The Product Mix Goals • Define product mix, product extension, and product enhancement. • List and describe the components of the product mix. Chapter 7

4. Terms • product mix • product extensions • product enhancements • product line • brand • trademark • licensed brand Chapter 7

5. WHAT IS A PRODUCT MIX? • tangible parts • physical features that can be seen and felt • intangible parts • the nonphysical service features Chapter 7

6. product mix • the total assorted features associated with the product • brand name • various products offered under the brand • product packaging • product extensions • items added to a product to make it more attractive to the target market • guarantees • warranties • instructional CDs Chapter 7

7. Basic vs. Enhanced Product • product enhancements • features added to the basic product that satisfy additional needs and wants with the same purchase • add value to the product and may increase the purchase price Chapter 7

8. Provide three examples of a product enhancement. Chapter 7

9. PRODUCT MIX COMPONENTS • Product mix includes product line, packaging, and brand development. Chapter 7

10. Product Line • product line • a group of similar products with slight variations to satisfy the different needs of consumers Chapter 7

11. Packaging • Product packaging components to consider include • ease of use • safety • accessibility • environmental friendliness Chapter 7

12. Brand • brand • the name, symbol, word, design, or combination of these elements that identifies a product, service, or company • trademark • the legal protection of words and symbols used by a company • licensed brand • a well-known name and/or symbol established by one company and sold for use by another company Chapter 7

13. The five stages of brand recognition are • nonrecognition • rejection • recognition • preference • insistence Chapter 7

14. What are the components of the product mix? Chapter 7

15. Lesson 7.2Recruiting Athletes and Entertainers Goals • Define the bottom line for sports. • Explain the high cost of sports and entertainment events. Chapter 7

16. Terms • blue-chip athletes • NCAA • fringe benefits Chapter 7

17. THE BOTTOM LINE FOR SPORTS • blue-chip athletes • excellent athletes • demonstrate good character and leadership qualities on and off the field Chapter 7

18. The bottom line for sports is winning. • The bottom line for business is profit. • Winning teams generate profit. Chapter 7

19. NCAA Regulations • NCAA • a voluntary organization through which the nation’s colleges and universities govern their athletics programs Chapter 7

20. Compensation for Athletes? • Athletes receive scholarships and grants for their college education. • After signing with an agent, a college athlete can no longer participate in college sports. • In some states, proposals have been brought to the legislature to pay college athletes. Chapter 7

21. What is the bottom line for sports and how is it related to the bottom line for business? Chapter 7

22. THE COST OF SUCCESS • Success requires • skilled coaches • top-notch players • popular entertainers Chapter 7

23. Attracting and Keeping Coaches • The best coaches can command annual salaries in excess of $1 million. • fringe benefits • incentives received in addition to base salary Chapter 7

24. Attracting and Keeping Star Athletes • Competition for top athletes is fierce. • Recruiters compete with professional teams as well as with other colleges. • Recruiters need a well refined sales and marketing effort to attract talent to their schools. Chapter 7

25. The Price for Top Musicians and Other Entertainers • Popular performers can attract large enough crowds to make an event profitable. • Popular celebrities help increase the advertising revenue of their television shows. Chapter 7

26. Marketing Women’s Sports • In recent years, women’s sports have grown in popularity. • Relative to male counterparts, women receive far less pay. • Creative marketers may develop new products to appeal to females who are relatively new sports fans. Chapter 7

27. Why is it important for young, talented, and highly sought-after athletes to hire trustworthy agents to represent them? Chapter 7

28. Lesson 7.3Customized Entertainment Goals • Define customizing. • Describe the financial impact of Baby Boomers on the entertainment industry. Chapter 7

29. Terms • customizing • impromptu • tiering Chapter 7

30. CUSTOMIZING PRODUCTS • customizing • changing a product to fit the needs or wants of a particular market Chapter 7

31. impromptu • spontaneous and changing Chapter 7

32. Local TV American Style • Although local programming is less expensive to produce, it has fallen out of favor with major networks. Chapter 7

33. Children’s Programming • Because hosts of locally produced TV shows had such a large impact on children, parents requested that hosts not endorse products. • Advertisers lost interest in sponsoring locally produced children’s shows. Chapter 7

34. Sports Programming • Excessive salaries of sports figures have helped drive up the costs of television coverage of sporting events. • tiering • specific sports programs will be offered outside the basic cable or satellite package Chapter 7

35. Public TV and Radio • Public TV and Radio are viewer- and listener-supported. • programming is tailored to local audiences Chapter 7

36. Why is different TV programming shown in different cities or regions of the United States? Chapter 7

37. MARKETING TO BABY BOOMERS • Baby Boomers, born between 1946 and 1964, are one of the best-known market segments. Chapter 7

38. Boomers Won’t Retire • Baby Boomers have the discretionary income to pay for the products and services they desire. Chapter 7

39. Segmenting the Group • The U.S. population is aging. • Marketers will need to focus their efforts on this aging market. Chapter 7

40. Entertaining the Boomers • Baby Boomers are increasing their movie attendance. Chapter 7

41. Understanding All Parts of the Group • Through 2002, Baby Boomers will continue to be a major target of entertainment marketing. • As the Boomer group is so large, marketing messages need to be developed for specific subgroups of Boomers. Chapter 7

42. Why are Baby Boomers important to entertainment marketers? Chapter 7

43. Lesson 7.4Product Marketing Strategies Goals • List and describe the stages of the product life cycle. • Explain how products are positioned in the marketplace. Chapter 7

44. Terms • product life cycle • skimming price strategy • penetration price strategy • positioning Chapter 7

45. THE PRODUCT LIFE CYCLE • product life cycle • introduction, growth, maturity, and decline Chapter 7

46. Introduction Stage • introduction stage • product is a novelty • only one brand of product is available • skimming price strategy • introduces new products at a very high price • penetration price strategy • uses low pricing to help capture a large market share early Chapter 7

47. Growth Stage • second part of product life cycle • target market purchases the product regularly • advertising focuses on customer satisfaction • competition increases Chapter 7

48. The Maturity Stage • third stage of product life cycle • sales are level or slowing down • marketing costs increase • sales prices often offered to hold off competition Chapter 7

49. The Decline Stage • sales decrease • alternatives include • drop a product • sell/license Chapter 7

50. discount • regionalize • modernize/alter • recommit Chapter 7