midterm 2 Flashcards
what is a product
good or service
differences between goods and services
seperability
heterogeneity
intangibility
perishability
what makes a sport product unique
core performance is one element of larger ensemble
what does the sport experience include
atmosphere equipment music/entertainment concession/food pre-/post-game activities
relation between the marketer and the sport product
marketer has little control over core product
focus on extensions
core elements of the sport product
apparel/equipment rules, technique venue fan behavior personnel and process
extensions of sport product
tickets, programs (printed material) memories, artifacts hybrid products the organization electronic products
key issues in sport product strategy
differentiation product development product position brands product and brand cycles
differentiation
marketers must consider consumers and competitors simultanously
product must be distinct
product develoment
marketing is a process
continous development of product
generation of ideas
screen/implementing ideas
5 perceptual issues in product development
relative advantage of new product over old preferences complexity in adoption and use compatibility with consumers values divisibility into smaller portions communicability of benefits
product position
consumer´s image of the product
contributed by elements of sport product
five images to consider in product position
trademark imagery (logo of org.) product imagery (apparel, team performance) associative imagery (association with product) user imagery (consumers of particular product) usage imagery (frequency of use, high-tech)
brands and branding
brand building never ends
can be communicated through names, logos, images, associations
brand equity
added value of a product from its brand
brand recognition
elements of marketing mix
product
price
promotion
place
dynamic pricing
based on the marketer´s sense of consumer demand for certain seat, time of day, priveledge
fixed pricing
everyone pays the same price for a product (same price for every seat)
what do sport marketers need to consider related to sport pricing
what strategy for right price
what factors influence price
will financial benefit of increasing prices offset neg. fan relation
what is price
price paid by consumer is a function of the value placed on sport product
statement of value
exchange for benefit of using product
why is price a critical element in the marketing mix
only element that produces revnue - others cost
most flexible marketing mix elements
can be readily changed and easily communicated
has direct impact on company´s bottom line (overall profit)
core issues of pricing vs. cost
price of ticket does not represent realt “COST” of attendance
sport marketers must appreciate total cost from consumer´s perspective
what happens if the company prices the product below its cost
profits will suffer
price floor
no profit below this price
Fan Cost Index (FCI)
measures real price to attending a game
examples for FCI price elements
2 adult average price tickets 2 child average price tickets four small soft drinks four hot dogs parking ...
what is consumer´s perception of value based on
own unique experiences with sport product
value satisfaction
perceived benefit - total cost
price ceiling
no demand above this price
2 forms of major pricing strategies
customer value-based pricing
cost-based pricing
customer value-based pricing
setting price based on consumers´ perceptions of value ather than on the seller´s cost
steps of customer value-based pricing
assess customer needs and value perceptions
set target price to match customer perceived value
determine costs that can be incurred
design product to deliver desired value at target price
cost-based pricing
price based on costs for production, distribution and selling + rate of return its effort
steps of cost-based pricing
design product
dtermine costs
set price based on costs
convince buyer of product´s value
what can pricing be determined by
internal and external factors
internal factor of pricing
product promotion distribution cost organization objectives
external factors
consumers demand competition legal economy technology
pricing objectives
consideration of organization´s objectives when setting product prices
factors of pricing objectives
profit
survival against competition
max product exposure and distribution
positive user atiitudes or image
how do we distribute a sport product
at the facility (location, layout, image)
other distribution channels (retail distribution, ticket sale)
hwy does mullin say the place is the most important choice a marketer need to make
often long-term range implication
harder to change
what does the place include
sport facilities surrounding areas artifacts history/memories ideologies experiences aesthertics problems
what needs to be considered related to a sport facility
accessibility design layout amenities personnell
accessibility of a sport facility
factors contibute to individuals willingness to travel to an event
aspects of accessibility of a sport facility
demographics duration/frequency of the event emotional commitment perception of quality parking surrounding area
design and layout of a sport facility
easier access, exit and intenal movement to minimize length of lines
access for consumers with physical disabilities
location/design/number of food services, bars, restrooms…
flexibility vs. dedicated usage
aesthetics
amenities (Annehmlichkeiten)
connectivity
screen/display
sound system
upscale food & drink
what is promotion
verhicle by which marketers convey info about product
communication tool
what functions do promotions serve
inform (create awareness)
persuade (encourage action)
remind
position a product in the mind of consumers
inform as part of promotion
introductory phase of product life cycle
important objective for targeting new consumers
important for product changes and extensions
what needs to be considered for informing
to no take consumer´s awareness for granted
persuade as part of promotion
convince consumer to purchase a product
two stages of persuade
informaing (informational strategy)
persuading (transformational strategy) - satisfaction of cuónsumer needs
remind
remind of product availability and benefit
maintain top of mind awareness
objective of reminding is retention
may use informational and transformational strategy
position aspect of promotion
establish image in mind of consumer
goes beyond informing
establishing specific association
repositioning a brand
has different reasons
promotion mix
advertising sales personal selling publich relations direct marketing
promotion mix advertising
any paid form of non-personal presentation and promotion of ideas goods or services
what does promotion mix advertising include
broadcast, print, internet, outdoor and other forms
advantages of promotion mix advertising
reach mass audience
repeat a message
reflect seller´s popularity
build up a long-term image
disadvantages of promotion mix advertising
only one-way communication
can be costly (TV)
what does sales promotion include
discounts
coupons
displays and demonstrations
advantages of sales promotion
attract consumer attention
offer strong incentives
invite quick response
disadvantages of sales promotion
effects often short lived
not as effective as ad or personal sellin in building long run brand preference
what does personal selling promotion include
sales presentation
trade shows
incentive programs
advantages of personal sellin promotion
convey more and complex info of the audience
increase chance of developing long-term relationships by solving problems
disadvantages of personal selling promotion
require long-term commitment but size of sales is harder to change
most expensive promotion tool
what is public relations promotion
building good relations with other companies
how does publich relations promotion work
obtaining favorable publicity
building good reputation
handling unfavorrable rumors, stories, events
advatages of public relations promotion
more real and believable
dramatize company or product
message get to consumer as news rather than as ads
disadvantages of publich relations promotion
never controlled by the public relations department weather a messafe is delivered, interesting, and important or not
what does public relations promotion include
press releases
sponsorships
speciale vents
web pages
what is direct marketing promotion
direct connection with targeted consumers
acquire an immediate response
what does direct marketing promotion include
direct mail catalogs telephone mobile marketing kiosks ...
advantages of direct marketing promotion
message can be customized to sppeal to consumer
message can be altered depending on response
building on-to-one relationships
disadvantages of direct marketing promotion
growing invadion of privacy concern
unwanted junk mail, spam
what is the goal of promotion
move consumer through buying process
what does promotion start with
understanding needs and wants
promotion chain
awareness knowledge linking preference conviction purchase
what is public relations
strategic communication process
builds benefitial relationships
what do public relations include
anticipating, analyzng and interpreting public opinion, attitudes and issues
researching, conducting and evaluating on actions and communications
planning and implementing organizations effort
what influences public relations
media relations + community relations
what does media relations involve
formpulating and shaping favorable opinion through media
subsections of media relations
proactive - shape/formulate
reactive - respond
interactive - work with
community relations
activities that benefit community, which may foster community support, loyalty and goodwill
subsection of community relations
corporate social responsibility (CSR)
corporate social responsibility (CSR)
corporate citizenship
corporate philanthropy
reputation
reciprocal of image
created by the audience
perception
what the consumer thinks about a company is what matters
company can control the image that is send out but not what it reflects back
