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Distribution Concepts

Distribution Concepts. Ability of consumers to gain access to products in a timely and convenient fashion Moving product from producer to consumer via the various channels of distribution. Sports Distribution Issues. Sports Retailing Stadium as “Place” Sports Media. Sports Retailing Mix.

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Distribution Concepts

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  1. Distribution Concepts • Ability of consumers to gain access to products in a timely and convenient fashion • Moving product from producer to consumer via the various channels of distribution

  2. Sports Distribution Issues • Sports Retailing • Stadium as “Place” • Sports Media

  3. Sports Retailing Mix • Products • Pricing • Distribution • Promotion

  4. Retail Image/Store Personality • Factors include (in general): • atmospherics • location • employees/sales personnel • clientele • merchandise assortment • promotional activities

  5. Stadium as “Place” • New Sports Venues • Ticket Distribution Issues

  6. Sports Media as Distribution • Delivering the Sports Product to Consumers Via Media • Rising Cost of Media Rights • Media as a Portion of the Revenue Mix • New Trends in Sports Media

  7. Pricing Concepts • Price is a Statement of Value • Value = Perceived Benefits Price of Sports Product • Essence of pricing is the exchange process - An attempt to quantify the value of what is being exchanged

  8. Internal Product Promotion Distribution Cost Organizational Objectives External Consumer Demand Competition Legal Economy Technology Internal and External Determinants of Pricing

  9. RELATIONSHIP OF PRICE TO SOME OTHER MARKETING MIX ELEMENTS • Related to product life cycle • Communicates something about the product • Promotion geared towards information about price • Product lines with different prices attract different segments of consumers

  10. Estimating Consumer Demand • Consumer Tastes • Availability of Substitute Sports Products • Consumer Income

  11. Pricing Strategies • Differential Pricing Strategies • New Sports Product Pricing Strategies • Psychological Pricing Strategies • Product Mix Pricing Strategies • Cost-Based Pricing Strategies

  12. Differential Pricing • Second Market Discounting

  13. New Sports Product Pricing • Penetration Pricing • Price Skimming

  14. Psychological Pricing • Prestige Pricing • Referent Pricing • Odd-Even Pricing • Traditional Pricing

  15. Product-Mix Pricing • Bundle Pricing • Captive Pricing • Two-Part Pricing

  16. Cost-Based Pricing • Cost-Plus Pricing • Target Profit Pricing • Break-Even Pricing

  17. Price Adjustments • Price Reductions and Price Increases • Price Discounts

  18. Implementation Issues • Communications • Staffing Staffing and Skills • Coordination • Rewards • Information • Creativity • Budgeting

  19. Strategic Control Issues • Planning Assumptions Control • Process Control • Contingency Control

  20. Planning Assumptions Control • “Are the premises or assumptions used to develop this marketing plan still valid?” • Examine the external environmental factors and the sports industry factors

  21. Process Control • Monitoring Strategic Thrusts • Milestone Review • Financial Analysis

  22. Contingency Control • “How can we protect our marketing strategy from unexpected events or crises that could affect our ability to pursue the chosen strategic direction?” • Developing a Crisis Plan

  23. Growth of Sports Industry • The sports industry generates estimates of 213 to 350 billion dollars per year in revenues. As ESPN founder Bill Rasmussen points out, “The games are better, and well the athletes are just amazing and it all happens 24 hours a day. America’s sports fans are insatiable.” • Attendance is increasing: • The NFL experienced a record number of fans in the 1999 season (15,710,970) • The NBA 1999-2000 season also produced a small increase (1%) for the NBA • MLB reached 20 million fans faster than any other year in history and attendance increased again (3%) • NHL continues to grow in attendance and popularity. Tracing average attendance over the past few years, regular season numbers have increased from 14, 749 (‘93-’94) to 16,359 (‘99-’00) • NASCAR had 11 million people attend its events in 1999 • Sports Sponsorship Spending Exceeds $1 Billion Dollar Mark • New Leagues (AF2, XFL, WPFL, WSA, WNHL)

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