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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.
 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
 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
 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

 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
 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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