Chapter 7 PPT The Product is Sports & Entertainment

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Chapter 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
Sports and Entertainment Marketing
© Thomson/South-Western
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.
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children with AIDS in Africa
the plight of Haitian children
global poverty conditions
helped sponsor architectural competition to
rebuild part of New Orleans
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Lesson 7.1
The Product Mix
Goals
 Define product mix, product extension,
and product enhancement.
 List and describe the components of
the product mix.
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Terms
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product mix
product extensions
product enhancements
product line
brand
trademark
licensed brand
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WHAT IS A PRODUCT MIX?
 tangible parts
 physical features that can be seen and felt
 intangible parts
 the nonphysical service features
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 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
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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
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 Provide three examples of a product
enhancement.
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PRODUCT MIX COMPONENTS
 Product mix includes product line,
packaging, and brand development.
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Product Line
 product line
 a group of similar products with slight
variations to satisfy the different needs of
consumers
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Packaging
 Product packaging components to
consider include
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ease of use
safety
accessibility
environmental friendliness
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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
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 The five stages of brand recognition are
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nonrecognition
rejection
recognition
preference
insistence
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 What are the components of the product
mix?
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Lesson 7.2
Recruiting Athletes and
Entertainers
Goals
 Define the bottom line for sports.
 Explain the high cost of sports and
entertainment events.
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Terms
 blue-chip athletes
 NCAA
 fringe benefits
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THE BOTTOM LINE FOR
SPORTS
 blue-chip athletes
 excellent athletes
 demonstrate good character and leadership
qualities on and off the field
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 The bottom line for sports is winning.
 The bottom line for business is profit.
 Winning teams generate profit.
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NCAA Regulations
 NCAA
 a voluntary organization through which the
nation’s colleges and universities govern
their athletics programs
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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.
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 What is the bottom line for sports and
how is it related to the bottom line for
business?
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THE COST OF SUCCESS
 Success requires
 skilled coaches
 top-notch players
 popular entertainers
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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
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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.
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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.
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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.
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 Why is it important for young, talented,
and highly sought-after athletes to hire
trustworthy agents to represent them?
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Lesson 7.3
Customized Entertainment
Goals
 Define customizing.
 Describe the financial impact of Baby
Boomers on the entertainment industry.
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Terms
 customizing
 impromptu
 tiering
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CUSTOMIZING PRODUCTS
 customizing
 changing a product to fit the needs or wants
of a particular market
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 impromptu
 spontaneous and changing
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Local TV American Style
 Although local programming is less
expensive to produce, it has fallen out
of favor with major networks.
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 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.
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 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
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Public TV and Radio
 Public TV and Radio are viewer- and
listener-supported.
 programming is tailored to local audiences
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 Why is different TV programming shown
in different cities or regions of the United
States?
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MARKETING TO BABY
BOOMERS
 Baby Boomers, born between 1946 and
1964, are one of the best-known market
segments.
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Boomers Won’t Retire
 Baby Boomers have the discretionary
income to pay for the products and
services they desire.
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Segmenting the Group
 The U.S. population is aging.
 Marketers will need to focus their efforts
on this aging market.
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Entertaining the Boomers
 Baby Boomers are increasing their
movie attendance.
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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.
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 Why are Baby Boomers important to
entertainment marketers?
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Lesson 7.4
Product Marketing Strategies
Goals
 List and describe the stages of the
product life cycle.
 Explain how products are positioned in
the marketplace.
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Terms
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product life cycle
skimming price strategy
penetration price strategy
positioning
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THE PRODUCT LIFE CYCLE
 product life cycle
 introduction, growth, maturity, and decline
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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
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Growth Stage
 second part of product life cycle
 target market purchases the product
regularly
 advertising focuses on customer
satisfaction
 competition increases
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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
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The Decline Stage
 sales decrease
 alternatives include
 drop a product
 sell/license
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 discount
 regionalize
 modernize/alter
 recommit
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 What are the stages of the product life
cycle?
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POSITIONING A PRODUCT
 positioning
 used by a company to differentiate its
products or services from its competitors’
products or services
 status, price, or brand recognition
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 List three ways a product may be
positioned in the marketplace.
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PERFORMANCE INDICATORS
EVALUATED
 Communicate the goals of the state fair.
 Prepare an attractive document that incorporates
the latest desktop publishing technology.
 Create an original, appealing newsletter to
increase awareness and attendance at the state
fair.
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 Understand the comprehensive nature of
this project and its purpose.
 Select graphics and fonts that appeal to the
intended audience.
 Produce a final product that indicates a
clear thought process and an intended,
planned direction with formulation and
execution of a firm idea.
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THINK CRITICALLY
1. Why does the state fair need multiple
forms of publicity to increase
attendance?
2. What promotional item could be
included in your desktop publishing
document to help increase the
attendance at the state fair?
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3. How can the state fair measure the
effectiveness of your publication?
4. What types of graphics would be
appropriate for this publication? Why?
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