Introduction to Sport
Marketing
Lecture 6: Sport Products
Lecture 6. Overview
Define the term sport product.
Outline the key characteristics of sport products.
Explain the sport product continuum.
Define the term product augmentation, and
describe augmentation strategies.
Identify the process of new product development.
Explain the concept of the product life-cycle.
Describe the process of building a sport brand.
Product - the first element of the marketing mix
What is a Sport Product?
A good:
a physical item; can be held and touched
sport shoes, equipment, memorabilia, apparel
A service
intangible; not physical objects
an experience such as fitness and recreation opportunities,
entertainment, physiotherapy, or coaching
An idea
ideas can form the core of some sport products
the idea behind a gym membership could be weight loss or
fitness
sport stimulates consumers to feel (emotional response) and
to believe certain things (thinking response)
A combination
most sport products are a mixture of tangible and intangible
elements
Differences between goods and services
There are four important differences:
1. Tangibility
2. Consistency
3. Perishability
4. Seperability
Tangibility
Goods are tangible, physical objects
Goods can be taken away and used later
Goods can be used repeatedly
Services are intangible
Services cannot be taken home to keep
Services are experienced for a period rather than
owned
Consistency
How reliable the quality of the product is from one time
that it is purchased and used to the next
Goods are usually highly consistent
Sport services have more variable quality
Service quality changes depending on who is delivering it
and what the conditions are (e.g. weather)
Variation in the quality of sport competition can be good
Sport marketers should focus their attention on the quality
of those parts of the service that they have some control
over, like prices, food, beverages, and the venue
Perishability
Whether a sport product can be stored and used
at another time.
Sporting goods (like clothing and equipment) are
not perishable.
Services cannot be stored.
Unsold tickets cannot be stored to sell them at
another time.
Separability
Whether the creation or manufacture of a sport
product happens at the same time that it is
consumed.
Sporting goods are made prior to their use.

their manufacture and consumption are separated
Sport services are made and consumed at the
same time.

live sport is created at the same time that it is
consumed by fans.
Principle 6.1: Sport goods may be differentiated from
services on the basis of four factors: tangibility,
consistency, perishability and separability.
Tangibility

whether the product is a physical object that can
be held and touched
Consistency

how reliable the quality is from one time to the
next
Perishability

whether the product can be stored and used at
another time
Separability

whether the creation/manufacture happens at the
same time that it is consumed
Combining tangible and intangible elements
Most sport products are a mixture of tangible and
intangible elements.
Many physical products have a service or idea
element.
Many services are sold together with something
tangible to take away.
In many instances, a sport consumer buys a
mixture of goods, services, benefits and ideas.
Principle 6.2: A sport product is the complete package
of benefits presented to a sport consumer in the
form of physical goods, services and ideas, or a
combination of these in order to produce a sport
experience.
Many sport products have both tangible and
intangible elements.
However, some sport products are mainly
tangible and some are mainly intangible.

sport equipment is mainly tangible
Participating in sport is mainly intangible
The Sport Product Continuum
Many sport products have both tangible and
intangible elements.
However, some sport products are mainly
tangible and some are mainly intangible.

sport equipment is mainly tangible
participating in sport is mainly intangible
The Sport Product Continuum shows that
products can be defined along a continuum (or a
scale).
The Sport Product Continuum
Shows that products can be defined along a
scale.
The Sport Product Continuum
Mainly tangible products
depend on their physical elements
take away the physical object and the product is gone
problem: more difficult to differentiate
Mainly intangible products
depend on the intangible service element
take away the service/staff and the product is gone
problem: few reminders of product after use
A mixture of tangible and intangible
e.g. a sport event
intangible elements include the match
tangible elements include food, beverages and
merchandise
fans are usually looking for all of these elements
Working with the Sport Product Continuum
A pivotal tactic in sport marketing is to try to
move products away from either of the extremes
of the continuum.
Try to create a mixture of tangible and intangible
elements.
Try to add tangible elements to services as
reminders.
Try to add intangible benefits to goods to
differentiate them.
Tool 6.1: Sport Product Continuum. The Sport Product
Continuum is a useful tool to help show that
products can be defined along a continuum (or a
scale).
The scale shows mainly tangible products on one
end, mainly intangible products on the other, and
a mixture of the two in the middle.
Key Variables of the Sport Product
The sport product is a complete package of these
elements:
Core Benefit
The main advantage the consumer gets from using the
product.
the main benefit of a sport car is transportation
the main benefit of a t-shirt is covering for the body
It is easy to underestimate the importance of the core
benefit.
But the core benefit does not meet the needs of sport
customers, then it is unlikely to be successful.
It is important to understand the main need that the
consumer has, or the primary benefit that they get from
using the product.
Do not add frills to a product if it does not meet the basic
needs of consumers in the first place.
Actual Product
The features of the product

the features of a t-shirt include colour, size, fabric
and pattern
The features of the product can make it stand out
against competition.
If the core benefit is something that people want,
then developing the right features will mould it
even more to consumers’ needs.
Augmented Product
‘Augmented’ means improved or increased.
Any extras or extensions that are added to the
actual features of the product.

additional benefits, bonus extras
a t-shirt may be augmented by adding a bonus cap
The status, image or social appeal of a product
are all examples of augmentation.

a brand image can make a t-shirt more appealing
augment a product or the image of a product
Product Augmentation
Augmentation is important in highly competitive
markets.
Where products have similar core benefits and
product features, augmentation can differentiate
them.
Many manufacturers like Nike and Adidas use
athlete sponsorship to give the product an
association with success, exclusivity or style.
Principle 6.3: Sport products should be seen as a
bundle of benefits comprising the core benefits,
actual product features and the augmented product.
These product variables are interrelated and
should be manipulated as a group.
New Product Development
Sport marketers often consider new product
development.
It can be expensive and risky.
Only a small fraction of new products are
successful.
A ‘new product’ can take many forms:

a brand new offering
improved performance of an existing product
new functions added to an existing product
new way to use an existing product
a new combination of existing products
a new look or design for a product
Principle 6.4: In sport marketing, a new product can
take many forms.
the improved performance of an existing product
new functions added to an existing product
a new way to use an existing product
a combination of existing products
a new look or design for a product
Five Stages of New Product Development
New Product Opportunities
Collect new product ideas through:

market research
examining competitors and overseas companies
consulting with staff and current customers
some new ideas will have emerged in stage one of
the Sport Marketing Framework
Rank and Prioritise Opportunities
Sift through the ideas collected.
Keeping those that fit the marketing objectives.
Consider how well they fit with existing products.
Consider how they relate to current trends.
Ignore financial realism at this stage.
Select and Test New Products
Assess the remaining ideas carefully
Pilot the highest ranking options
Check feasibility with cost and financial estimates
Conduct concept testing

give potential customers a product description or
prototype and solicit their responses.
Devise Product Composition and Marketing Mix
Devise product composition:

core benefits, actual product features, and
augmented product
Design other elements of marketing mix:

in line with positioning strategy
Introduce New Product
Release it onto the market.
Tool 6.2: New Product Development. The process of new
product development involves five stages:
1)
2)
3)
4)
5)
Consider New Product Opportunities
Rank and Prioritise Opportunities
Selection and Testing of New Products
Devise Product Composition and Marketing Mix
Introduce New Product
Product Life Cycle
Sport products come and go.
Every product has a life-cycle: it is ‘born’, its
sales grow, then it may ‘die’ or be up-graded.
The term product life-cycle refers to the stages
that a product goes through from first being
introduced onto the market to its decline.
Stages of the Product Life-Cycle
Principle 6.5: The term product life-cycle refers to the
stages that a product goes through from first being
introduced onto the market to its decline.
There are four stages of the product life cycle:
1)
2)
3)
4)
introduction
growth
maturity
decline
Introduction
When a product first enters the market.
Many products fail or are changed at this stage.
Sales and usage increase slowly.
May be no profit because of development costs.
Marketing costs are usually high because of:

the need to advertise to inform consumers
the need to give consumers incentives to try
the need to give incentives to distributors
The length of time in this stage will vary greatly.

there may be a long introduction time if there are
plenty of other substitute products on the market
Growth
When the product has attracted the awareness of
the target consumers.
When there is a rush or increase in sales.
Profits usually rise quickly at this stage.
Competition also increases.
Maturity
Once the product has been on the market for a
long period.
Likely to be more competitors in the marketplace.
Producer may be forced to make changes due to
competition.
Normally the longest stage of the product lifecycle.
Profits or usage will gradually decrease.
Decline
When there is a in sales or usage as an enduring
trend.
How quickly sales drop will be different for every
product and every situation.
Eventually the product may be substantially
changed or taken off the market.
Marketing Strategies During the Life-Cycle
Different strategies should be used during
different stages of the cycle.
Marketing Strategies During the Life-Cycle
Tool 6.3: Product Life-cycle Stages. Different marketing
strategies should be employed at each stage of a
product’s life cycle.
Variations should be designed in the marketing
mix including: price, promotions, sponsorship,
distribution, and services.
Sport Branding
Branding is closely linked with positioning.
A brand is an identifying badge, often reinforced
by a name or a logo.
It helps consumers recognise a product or an
organization.
It becomes linked with consumers’ opinions and
perceptions of a sport product/organization.
Branding, segmentation and positioning
strategies should be closely related.
Brand Equity
Branding helps products to stand out.
Branding is a way to augment a product by
linking ideas to the product that make it
different.
The added value that a product possesses
because of its brand name and identity is called
brand equity.
Powerful Brands
Powerful brands have a high level of recognition
in the market, and strong associated imagery.
Principle 6.6: A sport brand is the symbolic
representation of everything that a sport
organization seeks to stand for, leading to
expectations about its value and performance.
A brand can be portrayed as an identifying badge
which triggers consumers to remember a product
or an organization.
It can be a name, a design, a symbol (or logo),
an image or a combination of these things.
Branding is one of the key strategies that
marketers use to differentiate their product.
Branding is the symbolic representation of
positioning, it associates ideas and concepts with
the product.
Brand Names
A brand name is a word, a written label, or even group of
letters and/or numbers.
It is usually be spoken rather than merely an image.
The choice of brand name will symbolise a unique idea.
Some brand names might suggest strength and confidence:
Others might suggest boldness:
If you do not agree with these connotations it means that
you hold a different brand identity in your mind.
What Makes a Good Brand Name?
It should be:

Short
Positive
Easy to remember
Easy to say
Easy to recognise
Unique
Able to be registered or trademarked
It may also:

Describe the product/product use/benefits
Translate into other languages
Building a Brand
Sport branding is more than choosing a
memorable name or appealing logo.
A brand has to be sold to consumers to elicit the
desired reaction.
Brands have to be built. There are four steps to
brand building:
Establish Brand Awareness
This is the extent to which consumers recognise
and remember a brand name.
Consumers must be aware of a brand in order to
understand its identity or image.
This is a key role of promotion.
Develop and Manage the Brand
Once awareness is achieved, it is essential to
mould consumers perceptions of the brand.
Continual efforts to remind consumers of the
brand image.
Develop and Manage Brand (continued)
Consumers perceptions can be managed through
these image variables:

brand name
product features
product quality or performance
packaging
price point
advertising
promotion
sponsorship associations
customer service
distribution channels
Develop Brand Equity
Brand equity - the added value that a sport
product holds because of its brand name.
Consumers will be more loyal if there is high
levels of brand equity.
Develop Brand Equity (continued)
The most important factor to develop equity is
perceived quality.
Five areas of service quality:

reliability, assurance, empathy, responsiveness,
and tangibles (addressed lecture 11).
Eight features of goods quality:

performance, reliability, conformity to
specifications, durability, serviceability, aesthetic
design and product warranties.
Eight Features of Goods Quality
Principle 6.8: Brand equity increases when consumers
rate products as high quality.
There are five elements of service quality:
1) reliability
2) assurance
3) empathy
4) responsiveness
5) tangibles
There are eight elements of goods quality:
1) features
2) performance
3) reliability
4) conformity to specifications
5) durability
6) serviceability
7) aesthetic design
8) product warranty
Develop Brand Loyalty
Brand loyalty - when customers choose it
repeatedly in preference to competing brands.
Loyalty is developed through:

product quality
ease of purchase (distribution)
loyalty rewards
The Power of Brand Olympic
Eight attributes most closely associated with
the Olympic Games and most important to
creating positive regard for the Games:
Being the best
Dynamic
Friendship
Eternal
Participation
Respectful
Striving
Trustworthy
Branding and Licensing
Licensing - where a sport organization allows
another party to use their brand for a fee.
The licensee produces a good, service or
promotion, and gives a percentage of sales or a
fixed fee to the owner of the brand (licensor).
Common in sporting merchandise and apparel.
Opportunities and Risks of Licensing
Principles Summary
Principle 6.1: Sport goods may be differentiated from
services on the basis of four factors: tangibility,
consistency, perishability and separability.
Principle 6.2: A sport product is the complete package of
benefits offered to a consumer in the form of physical
goods, services and ideas, or a combination of these in
order to produce a sport experience.
Principle 6.3: Sport products should be seen as a bundle
of benefits comprising the core benefits, product features
and the augmented product. These three variables are
interrelated and should be manipulated as a group.
Principle 6.4: In sport marketing, a new product can take
many forms such as the improved performance of an
existing product, new functions added to an existing
product, a new way to use an existing product, combining
existing products, or a new look or design for a product.
Principle 6.5: ‘Product life-cycle’ refers to the stages that a
product goes through from first being introduced onto the market,
through growth and maturity to decline.
Principle 6.6: A sport brand is the symbolic representation of
everything that a sport organization seeks to stand for. It can be
a name, a design, a symbol (or logo), an image or a combination
of these. Branding is a key strategies that marketers use to
position and differentiate their product.
Principle 6.7: Building a brand is a process made up of four
steps:1) establish brand awareness, 2) develop and manage a
brand image, 3) develop brand equity, and 4) develop brand
loyalty.
Principle 6.8: Brand equity increases when consumers rate
products as high quality. There are different elements of product
quality for goods compared with services. There are five elements
of service quality: 1) reliability, 2) assurance, 3) empathy, 4)
responsiveness, and 5) tangibles. There are eight elements of
goods quality, these are 1) features, 2) performance, 3)
reliability, 4) conformity to specifications, 5) durability, 6)
serviceability, 7) aesthetic design and 8) product warranty.
Tools Summary
Tool 6.1: Sport Product Continuum.
Tool 6.2: New Product Development.
Tool 6.3: Product Life-cycle Stages.