Chapter 3 Flashcards
Historical aspects of commercialization in sport:
- developments
- brand recognition
- models
Developments include:
- urbanization
- technology (railways, telegraph, electrification, vulcanization)
- leisure time
- standardization
Models ex.:
- Nelson Johnson
- John Gloy
- Slazenger
- Bancroft
- CCM
A.G. Spalding ad Brothers:
- one of the first and most successful sporting goods firms
- experiments in marketing goods and services
- first modern sport business enterprise
- decentralized
4 steps of developments leading to success:
- vertical integration
- diversification
- development of a modern management system
- promotional skills of A.G. Spalding
Historical aspects of the sport market:
- development
- segmentation
- endorsement advertising
- competition and cooperation
- increased participation and spectatorship
Bicycle craze:
- ancillary developments (fight for market share)
- distribution, promotion, and technological improvements
- manufacturing and sales
- advertising and brand equity
- competition and supply and demand
Examples from the bicycle craze:
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Key sport segments over the decades:
-
Methods of reaching market segments:
-
Use of athlete endorsements:
- H&B examples include Babe Ruth, Honus Wagner, Ty Cobb
- spalding
- bicycle manufacturers
- arms and ammo industry
Impact of WWI on sporting goods industry:
- consequences of postwar demand anticipation
- increased business competition
- increased availability of sporting goods products and outlets
- new distribution strategies
WWII’s effect on sport industry, events, and goods:
- industry growth to meet needs of participants and spectators
- integration and breaking of colour barriers in sport
- military policies and sport
- entrance and growth of women into sport
The success of Spalding & Brothers resulted from 4 interrelated developments within the firm:
- vertical integration
- diversification
- the development of a modern management system
- the promotional skills of A.G. Spalding himself
Vertical integration:
- a company’s expansion by moving forward or backward within an industry
- expansion along a product or service value chain
Horizontal integration:
when a company adds new products and services to its organizational structure
Vertical integration meant that Spalding could benefit from economics of ____ and _____.
- scale
- scope
Scale:
saving costs by increasing production
Scope:
producing 2 or more distinct goods to save money
Diversification:
the act of adding new products to the company’s product mix, thus diversifying the company’s product offerings
