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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