Sports sales and sponsorship (PDFs to help with the questions)
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Ch3.pptxSport Consumer Incentivization
Chapter 3
Incentives
Depend on consumption motives
Items of perceived value that add to offer
Overcome indifference or resistance
Later stage of buying/communication process
Price based incentives
Discounting core product damaging
Contingency based
Consumer action (provide info, prior purchase, etc) prior to price reduction
Attract infrequent customers
8% increase in attendance (top 10, 2004)
“cherry pickers” – only attend with promotion
MLB
14% increase, 2% watering down effect, more is better, weekdays (vs. high attendance – max total entertainment value)
Incentives continued
Rule changes, star players (consumption incentive)
Place based incentives
26 fundamental motives for sport consumption
Primary motives
Achievement
Ordinary runners (sense of accomplishment)
Perfect attendance
Vicarious achievement (enhance self esteem through success of athlete)
Sponsors – increased sales volume, exposure
Craft
Developing or observing physical skill
Winning record – highest predictor of attendance/sponsorship
Uncontrollable
Focus on opponent skill (novelty)
Primary Motives Continued
Affiliation/community
Consumer to consumer affiliation
Intragroup
Group related incentives (party packs)
Transgroup
Affiliation among strangers
Supporting a common team
Viewership incentives (restaurants/bars)
Intergroup
Rivalry games (increase attendance 25-30%0
Maximize with pranks, wagers
Local derbies
Consumer to organization affiliation
Minority consumers (need to identify)
Sponsorship for favorable affiliation (image transference)
Affiliate with cosponsors
Extend product market
Affiliate with special cause
Bond employees and customers
Affiliate with idealized past
Parent –child ticket program
Health/fitness
Inspire participation
Sponsorship to increase employee health and morale
Fun/festival
Limited interest in core product
Consumption experience
techtainment
Implementation
Objective
Increase sales, usage, block competitor…
Reward loyal customers first (goodwill)
New market development
Link objective to incentive (p. 57)
Inclusiveness
Value added (as many as possible)
Targeted audience (exclusive)
Recipient
Sales staff, suppliers, consumers
Direction
Positive/negative (reward/punishment)
Amount
Ineffective vs. wastefull
Just noticeable difference (amount offered based on consumer financial situation)
Time of payment
Immediate vs. mail in
