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Chapter 17 Distribution Decisions in Sports Marketing McGraw-Hill/Irwin 17-1 ©2007 The McGraw-Hill Companies, All Rights Reserved Distribution (Place) • Distribution Is the Second Variable of the Traditional Marketing Mix • Represents Decisions Regarding the Manner in Which Sports Products Are Made Available to the Sports Consumer 17-2 Spectator Sports • Live Audience – Those Spectators in Attendance at the Sports Venue • Media-Based Audience – Those Who Witness the Event Via Some Electronic Medium • Marketing Objective May Focus on Either or Both of the Two Types of Audiences 17-3 Spectator Sports – Live Audience • Venue Issues – Where Shall Special Events be Staged? – In Which Cities Should Teams be Located? – Is a New Facility Needed • Where Should the Community’s New Stadium Be? • Single-Purpose or Multipurpose Facility? • How Many Fans Should the Facility Seat? – When Should the Event be Staged? 17-4 Spectator Sports – Live Audience • Ticket Issues (Ticket Distribution Strategy) – Traditional Box Office – Phone Orders – Authorized Ticket Retailers and Brokers – Internet 17-5 Spectator Sports – Live Audience • Unaffiliated Ticket Distribution • Not Part of Marketer’s Own Strategy – Unauthorized Resellers • Scalpers Who Speculate – Internet Agencies • Bring Buyer & Seller Together (i.e. eBay) 17-6 Spectator Sports – Media-Based Audience • Television – Free-to-Air TV – Major Networks – General Sports Networks – ESPN; SkySports – Specific Sport Network – Golf Channel 17-7 Spectator Sports – Media-Based Audience • Television (Continued) – Sports Tier – NFL Sunday Ticket on DirecTV – Team-Dedicated Networks – YES Network – Pay-Per-View (PPV) – Boxing Match 17-8 Spectator Sports – Media-Based Audience • Concerns About PPV – Will Prime Events Move from Free-to-Air TV to a PPV Format Exclusively? • Super Bowl; Olympics; World Cup of Soccer – Australia’s Antisiphoning Law • Assures Free Availability of Key Events 17-9 Spectator Sports – Media-Based Audience • Radio – AM – FM – Satellite • Sports Tiers 17-10 Spectator Sports – Media-Based Audience • Internet – Free-to-Air Radio Stations with Web Access – Audio Streaming – Video Streaming 17-11 Spectator Sports – Media-Based Audience • Cellular Phones – Emerging One-to-One Broadcast Medium • Smart Watches – Still a Novelty 17-12 Market Development Strategies • New Target Markets for a Spectator Sport • New Demographic Group – X Games New Emphasis on Female Segment • New International Target Market – Cricket in USA; Gridiron Football in China 17-13 Market Development Strategies • Global Competition – Showcase Sport in New Locations – NHL Players in Olympics – World Baseball Classic – NASCAR in Mexico – NBA’s “Basketball Without Borders” 17-14 Market Development Strategies • Global Media – World Cup of Soccer 2006 Shown Live on TV in Many Markets – Internet Streaming Makes Small or Emerging Markets Accessible – Satellite Radio 17-15 Participation Sports 17-16 SASS • Sporting Goods, Apparel, Athletic Shoes, and Sports-Related Products • General Retailing Principles Provide the Framework for the Distribution of SASS 17-17 SASS • Key Question Concerns the Scope of Distribution in a Given Geographic Area – Intensive Distribution – Selective Distribution – Exclusive Distribution 17-18 SASS • Role of Nonstore Retailing • Direct Response Marketing (DRM) 17-19 Sports-Related Products • Sold at the Venue – Optimal Number of Service Outlets – Service in Seating Area 17-20 Closing Capsule • “If you build it, he will come” • That Popular Line from the Movie “Field of Dreams” Does not Truly Explain Most Sports Marketing Efforts • An Effective System Must be Implemented in an Effort to Reach Each Target Market 17-21 Closing Capsule • Spectator Sports • Live Audience – Venue Issues (i.e. Capacity) – Ticket Issues (i.e. Use of Internet) • Media-Based Audience – A Broad Array of Options 17-22 Closing Capsule • Market Development for Spectator Sports • Effort to Grow the Market by Reaching New Target Markets • Live and Media-Based Efforts 17-23 Closing Capsule • Participation Sports – Different Types of Facilities – Marketers Need to Balance Supply & Demand • SASS – Driven by General Retailing Principles 17-24