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Explore the interaction and impact of the five Ps on one another in sport marketing. Understand the importance of organizational control and the need for performance benchmarks.
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chapter17 Coordinating and Controlling the Marketing Mix
Objectives • To be able to compare and contrast the interaction and impact of the five Ps on one another • To understand how organizational structure, job descriptions, and staff training affect organizational control of the marketing function • To understand the need for control in achieving marketing effectiveness and to recognize some standard benchmarks of marketing performance in sport
Cross-Impacts Among the Five Ps • Each element of the marketing mix can be addressed individually. • Yet clearly these elements have a simultaneous cross-impact on the consumer. • This impact can be assessed with the use of a cross-impact matrix (see figure 17.1).
Product and Price • Impact of product and price is truly the impact of price on product. • Price • is the most visible and most readily communicable variable of the marketing mix. • influences perceptions of quality and value. • directly affects the product image. • More often than not, consumers are balancing product and price in their minds as they consider purchasing a sport product.
Product and Place • Sport consumers develop perceptions of the place in which an event occurs, namely, a facility image. • Big-league products demand big-league places.
Product and Promotion • Products define appropriate formats and media for promotions. • Use the right promotional medium for the right product. • Product may be excellent, but not known if not promoted or not promoted properly.
Product and Public Relations • Public relations has an obvious effect on product image and position. • Sport marketers do not have control of what the media’s message will be as they do with advertising. • Perceptions are difficult to change even with proactive public relation strategies (e.g., Nike).
Impact of Price and Place • Sport consumers expect to pay higher prices for better facilities. • Consumers tend to pay more for convenience (which is a benefit). There are two major impacts of price and place:
Price and Promotion • The price of a product dictates the media for advertising the product. • The price determines the profit margin on the product, hence the promotional budget and in turn the media choice. • The price of a product reflects not only its nature and cost but also the market to which the product is targeted. • In both cost-plus and market-based pricing, the price reflects the target market's demographics and its media choices.
Price and Public Relations • Pricing strategies can have a strong effect on public relations, for better or worse. • Universities, teams, athletes, sport products, and nonsport products tied to sport all face the same challenges.
Place and Promotion • The sport facility image is a strong one, and it directly influences the product image. • A sport marketer can promote a stadium as the place to be. This is evident with high attendance at new facilities. • Promoting an old, dilapidated facility is an uphill battle. • A sport marketer can promote aspects of the venue as well.
Place and Public Relations • A new facility has implications for all the other Ps. A new seat configuration requires a rescaling of ticket prices, which must be done with care for the overall franchise image. • Proactive public relations leading up to the opening is an effective strategy to keep publics informed and positive.
Promotion and Public Relations • The impact of a favorable or unfavorable public relations image cannot be underestimated. • The public relations image can totally negate immense promotional efforts. • Exercising good judgment and taste in promotion will prevent negative public relations.
Controlling the Marketing Function A comprehensive marketing control plan can • ensure the creation and delivery of products that satisfy consumer wants and needs, • nurture and preserve the credibility of the image that consumers hold of both the product and the organization, and • set a clear direction for all units and personnel.
Elements of an Effective Marketing Control System • Mission statements and objectives that have been established in light of current market position as compared with desired position • An organizational structure that marshals resources to meet objectives • Employee performance standards and criteria that logically link performance to objectives • Methods to adjust strategy, structure, and personnel in light of performance
Performance Measures for the Marketing Units • The number of favorable stories the public relations staff should nurture in print or electronic media • Improved results in consumer satisfaction surveys • The amount of revenue to be generated through various ticket packages, licensing agreements, or television contracts • Relative increases in television or radio ratings compared to those of competitors (e.g., regional professional teams)
Screening Promotions Against Objectives • Isit fun? • Is it feasible? • Is it affordable? • Will it add to the fan experience? • Will it be a $2 bill (i.e., unwanted or avoided)? • Is the timing right? • Is it suffering from the 8-ball syndrome (dead in the corner)? (continued)
Screening Promotions Against Objectives (continued) • Has the remainder of the staff approved? • Is it marketable? • Will we have to apologize tomorrow? • Will it promote the team or sponsor positively? • Will it pass the “family test”? • What will happen if we don't seize the moment? • And last of all, when in doubt, WWVD (what would Veeck do?)
