Transcript Sports Product HSS 3000/5263 Sport Marketing Brian Turner

Sports Product
HSS 3000/5263
Sport Marketing
Brian Turner
What is the sport product?
• “… a good, a service, or any combination of
the two that is designed to provide benefits
to a sports spectator, participant, or
sponsor”
What is the sport product?
• Goods
• Services
What is the sport product?
•
•
•
•
Tangibility
Standardization/consistency
Perishability
Separability
Branding
• “…name, design, symbol, or any
combination that a sports organization uses
to help differentiate its products from the
competition”
Branding
• Brand names
– Element of the brand that can be vocalized
– Guidelines
• Positive, distinctive, generate positive feelings and
associations, be easy to remember, and easy to
pronounce
• Translatable to a dynamite attitude-oriented logo
• Imply the benefits the sports product delivers
• Consistent with the image of the rest of the product
lines, organization, and/or city
• Legally and ethically permissible
Branding
• Brand mark or logo
Branding Process
• Brand awareness
• Brand image
• Brand equity
Branding Process
• Brand Loyalty
What is a licensed product?
• “… not manufactured by leagues, teams, or
schools, but rather by independent
companies under an agreement with a sport
entity.”
• Licensing
– “…a contractual method of developing and
exploiting intellectual property by transferring
the rights of use to third parties without transfer
of ownership.”
What is a licensed product?
• Trademark
– “… any word, name, symbol, or device or
combination thereof adopted and used by a
manufacturer or merchant to identify his goods
and distinguish them from those manufactured
or sold by others.”
What is a licensed product?
• Trademark infringement
– “… the reproduction, counterfeiting, copying,
or imitation in commerce of a registered mark.”
– Bars companies that do not pay for the right to
use these trademarks from manufacturing
products bearing those marks.
What makes licensing work?
• Intangibility of sport
• Support/involvement with a team
• Brand awareness
What makes licensing work?
• Licensee advantages
–
–
–
–
–
–
Positive association with the sports entity
Greater levels of brand awareness
Save time/money in building brand equity
Receive initial distribution with retailers
Expanded and improved shelf space
May be able to charge higher prices
• Licensee disadvantages
– Athlete, league, or sport may fall into disfavor
– Success depends on success of team
– Styles change quickly
What makes licensing work?
• Licensor advantages
–
–
–
–
Expansion into new markets
Generate awareness of the sports entity
Increase its brand equity
Very little risk
• Licensee disadvantages
– May lose some control over the elements of the
marketing mix
How does licensing work?
• Licensees pay an initial, one-time licensing
fee
• They take on production issues and assume
risk by manufacturing product
• They then pay a royalty for the use of
specific trademarks on specific products
Licensed-Product Revenues
Retail Sales of Licensed
Sport Products in the US
• 1990 • 1995 • 1996 -
Approach of Professional
Sport Leagues
•
•
•
•
NFL
MLB
NHL
NBA
Collegiate Licensing
• Up to the 1970s, manufacturers did not pay
royalties
• Significant revenues began in the late 1980s
Quality
• Service quality
– SERQUAL
– TEAMQUAL
Quality
• Product quality
–
–
–
–
–
–
–
–
Performance
Features
Reliability
Conformance
Durability
Serviceability
Aesthetics
Perceived quality
New Sports Products
• New products from organizational
perspective
–
–
–
–
–
New to the world
New product category entries
Product line extensions
Product improvements
Repositionings
New Sports Products
• New products from the consumer’s
perspective
– Discontinuous innovations
– Dynamically continuous innovations
– Continuous innovations
New Product Development
•
•
•
•
•
•
Idea generation
Idea screening
Analysis of the concept or potential
Development
Test marketing
Commercialization
New Product Success Factors
• Product considerations
–
–
–
–
–
Trialability
Observability
Perceived complexity
Relative advantage
Compatibility
New Product Success Factors
• Other marketing mix considerations
– Pricing
– Promotion
– Distribution
• Marketing environment considerations
– Competition
– Consumer tastes
– Demographics
Product Life Cycles
•
•
•
•
Introduction
Growth
Maturity
Decline
Product Life Cycles
• Fad
• Classic
• Seasonal