Sports Product

1
Sports Product

• HSS 3000/5263
• Sport Marketing
• Brian Turner

2
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

3
What is the sport product?

• Goods
• Services

4
What is the sport product?

• Tangibility
• Standardization/consistency
• Perishability
• Separability

5
Branding

• name, design, symbol, or any combination that a
  sports organization uses to help differentiate
  its products from the competition

6
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

7
Branding

• Brand mark or logo

8
Branding Process

• Brand awareness
• Brand image
• Brand equity

9
Branding Process

• Brand Loyalty

10
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.

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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.

12
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.

13
What makes licensing work?

• Intangibility of sport
• Support/involvement with a team
• Brand awareness

14
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

15
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

16
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

17
Licensed-Product Revenues

• Retail Sales of Licensed
• Sport Products in the US
• 1990 -
• 1995 -
• 1996 -

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Approach of ProfessionalSport Leagues

• NFL
• MLB
• NHL
• NBA

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Collegiate Licensing

• Up to the 1970s, manufacturers did not pay
  royalties
• Significant revenues began in the late 1980s

20
Quality

• Service quality
• SERQUAL
• TEAMQUAL

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Quality

• Product quality
• Performance
• Features
• Reliability
• Conformance
• Durability
• Serviceability
• Aesthetics
• Perceived quality

22
New Sports Products

• New products from organizational perspective
• New to the world
• New product category entries
• Product line extensions
• Product improvements
• Repositionings

23
New Sports Products

• New products from the consumers perspective
• Discontinuous innovations
• Dynamically continuous innovations
• Continuous innovations

24
New Product Development

• Idea generation
• Idea screening
• Analysis of the concept or potential
• Development
• Test marketing
• Commercialization

25
New Product Success Factors

• Product considerations
• Trialability
• Observability
• Perceived complexity
• Relative advantage
• Compatibility

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New Product Success Factors

• Other marketing mix considerations
• Pricing
• Promotion
• Distribution
• Marketing environment considerations
• Competition
• Consumer tastes
• Demographics

27
Product Life Cycles

• Introduction
• Growth
• Maturity
• Decline

28
Product Life Cycles

• Fad
• Classic
• Seasonal