Mini Analysis II

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Chapter 8 Sales and Service

8

Sales and Service

C H A P T E R

Objectives

  • To define what sales is and what sales is not
  • To provide an overview of the various sales methodologies used in sport business
  • To analyze pricing techniques and strategies as they relate to the sport industry

(continued)

Objectives (continued)

  • To examine the influence and role of the secondary market in sport sales
  • To explore the concepts of yield management and lifetime value
  • To show the importance and influence of retention and service activities as they relate to the sales process

Figure 8.1

Sales

  • The revenue-producing element of the marketing process
  • The process of moving goods and services from the product producers into the hands of those who will benefit most from their use
  • Involves the application of persuasive skills
  • May be supported by print, audio, or video messages designed to promote the product or its brand as essential, the best, or desirable

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Factors That Cause Customers
to Perform or Fail to Perform

  • Quality
  • Quantity
  • Time
  • Cost

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Traits of a Good Salesperson

  • Belief in the product
  • Belief in yourself
  • Seeing many people (sales call volume)
  • Timing
  • Listening to the customer (but realizing that what the customer wants is not necessarily what she is telling you)
  • A sense of humor

(continued)

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Traits of a Good Salesperson (continued)

  • Knocking on old doors
  • Asking everyone to buy
  • Following up after the sale with the same aggressiveness you demonstrated before the sale
  • Common sense

What Is a Good Sales-Oriented Organizational Structure?

  • The reporting structure in an organization
  • The relationships between departments that are integral in the sales process
  • The organizational style or philosophy with regard to producing support materials used in the sales process

(continued)

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What Is a Good Sales-Oriented Organizational Structure? (continued)

  • The sales developmental process within the department
  • Determining the composition of the sales force and the compensation mix for the sales staff

Figure 8.3

Developing and Managing
a Sales Department

  • Properly train the sales staff.
  • The sales staff must have the resources they need to accomplish the established goals.
  • Identify the strengths and weaknesses of the sales team or its individual members.

(continued)

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Developing and Managing
a Sales Department (continued)

  • Complement the various personalities and styles of individual members to benefit the team as a whole.
  • Initiate an attractive incentive structure to motivate the salesperson to achieve his or her individual goals.

What Do Sport Teams Sell?

  • Naming rights
  • Electronic inventory
  • Signage inventory
  • Print inventory

(continued)

What Do Sport Teams Sell? (continued)

  • Assets related to ticket sales
  • Tickets and hospitality inventory
  • Promotions inventory
  • Community programs
  • Miscellaneous

Direct Data-Based Sport
Marketing and Sales

  • Database marketing involves the collection of information about past consumers, current consumers, and potential consumers (see chapter 4).
  • Sources for ticket database leads include the following:

(continued)

Direct Data-Based Sport
Marketing and Sales (continued)

  • Current season-ticket holders
  • Co-account holders (share season tickets)
  • Corporate
  • Partial-plan holders
  • Groups
  • Advance-ticket purchasers
  • Phone sales
  • Outlet ticket sales
  • Day-of-game walk-up
  • Sweepstakes or contest entries
  • Electronic media opt-ins (continued)

Direct Data-Based Sport
Marketing and Sales (continued)

  • Sport organizations should attempt to collect contact data from every customer who touches the product.
  • Sport marketers must manage the database and should test or measure the responsiveness of customers to certain database sales strategies.
  • Lead scoring

Most Commonly Used
Sales Strategies

  • Telemarketing
  • Direct mail
  • Personal selling

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Applying the Telemarketing Process

  • Precall planning
  • Approach and positioning
  • Data gathering
  • Solution generation
  • Solution presentation
  • Close
  • Wrap-up

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Characteristics of Direct Mail

  • Direct mail is targeted.
  • It is personal.
  • It is measurable.
  • It is testable.
  • It is flexible.

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Developing the Direct-Mail Offer

  • Differentiating the product to be offered from other products offered
  • Offering options or variations of the product to fit the price considerations and abilities of the marketplace
  • Providing an attractive range of benefits or exclusivity

(continued)

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Developing the Direct-Mail Offer (continued)

  • Using discounts, sales, refunds, coupons, premium items, and other incentives to enhance the perceived value of the offer
  • Offering flexible payment or deferred payment terms
  • Offering a money-back guarantee

E-Mail Marketing

  • Many of the principles of direct-mail marketing can be applied to e-mail marketing.
  • E-mail and mobile marketing can be precisely targeted and can show great ROI if used well.

Direct Mail Can Be More Than an Offer

  • Good sport marketers use direct-mail marketing for more than soliciting product.
  • They also use it to enhance the relationship with consumers:

(continued)

Direct Mail Can Be More Than an Offer (continued)

  • Regular method of communication to keep the customer informed
  • Soliciting input, opinions, and feedback through questionnaires, surveys, and chat rooms
  • Showing accountability and expanding the knowledge of the consumer with an annual report
  • Thank-you correspondence
  • Delivering invitations to special events and opportunities

Personal Selling

  • “Face-to-face selling is the art of convincing, the use of learnable techniques to close a transaction, and the application of basic rules to show a prospect or customer that you have something he or she needs.” (Breighner, 1995)
  • Rules for effective personal selling include the following:

(continued)

B. Breighner, Face-to-Face Selling (Indianapolis, IN: Park Avenue, 1995), x.

Personal Selling (continued)

  • Use data-based marketing.
  • Let it be known that you are in sales and what you are selling.
  • Overcome objections and perceived barriers.
  • Manage the conversation by being an effective listener.
  • Employ consultative selling.
  • Build around strengths of product and service.
  • Match the consumer with the appropriate product.
  • Follow up. (continued)

Personal Selling (continued)

  • Data-based marketing
  • Relationship marketing
  • Goal is to create a long-term and sustained relationship with the customer.
  • Benefit selling
  • Create new benefits to offset existing perceptions or assumed negatives related to the sport product or service.
  • Offer flex plans.

(continued)

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Personal Selling (continued)

  • Personal selling can be most effective when coupled with
  • sampling,
  • trial usage, and
  • open houses.

Innovative Selling Strategies

  • Education can sell the fan base.
  • Remember your packaging.
  • Remember that fun is good.
  • Couponing is not just for groceries and fast food.
  • Remember the profitability and effect of group sales.

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Pricing

  • Price is a critical element in the marketing mix for a number of reasons.
  • Prices can be readily changed.
  • In certain market conditions, price is one of the most effective tools.
  • Price is highly visible.
  • Price is never far from the consumer’s mind.

Value

  • Value is the quantitative measure of the worth of the product.
  • Satisfaction = Benefit − Cost

(continued)

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Value (continued)

  • Price does not equal cost.
  • Travel
  • Parking or public transportation
  • Concessions
  • Souvenirs
  • Service charge or handling fees

Yield Management

  • Employing a variety of pricing strategies to ensure that the product, particularly tickets, can be purchased by the broadest range of potential buyers.
  • Yield management includes not only pricing but also packaging of tickets to ensure the highest yield on the sale of the product.

(continued)

Yield Management (continued)

  • Organizational buy-in.
  • Understand the marketplace.
  • Data, data, data.
  • Understand the secondary market.
  • Understand implications.
  • Remember the fans.

Secondary Market

  • Many consumers purchase tickets through secondary sources (not the team) because those sources offer a variety of prices, all usually less than those of the team, which has a higher cost of doing business.
  • Some season-ticket buyers resell their tickets in the secondary market to offset costs or make money, which can be a critical factor in the decision to purchase season tickets in the first place.

Aftermarketing Defined

  • Relationship after all the marketing and sales efforts have been completed, a purchase has been made, and the prospect has become a customer.
  • Thus, the relationship changes to one of support and sustainability.

Customer Lifetime Value (CLTV)

  • Formula that helps a marketing manager arrive at the monetary value associated with the long-term relationship of any given customer, revealing both the cost and the net worth of that relationship over time.
  • Season-ticket holder should be viewed not as a $4,000 annual spend but as someone who could spend at least that amount every year for the next 20 years ($80,000).

Figure 8.6

Aftermarketing

  • The more valuable the customer is, the more effort the staff must devote and expend to retain that customer.
  • Many sport organizations employ retention teams to service current customers and build relationships with them.

(continued)

Aftermarketing (continued)

  • The cost of acquiring new customers far outweighs the cost of retaining current ones.
  • To retain customers long term, sport marketers should offer them benefits that meet their needs.

(continued)

Aftermarketing (continued)

  • The integral aspects of sport consumer retention are satisfaction, utilization, and enjoyment of the product purchased.
  • Sport organization should continually strive to improve the fan experience.
  • Edu-selling
  • Technology

(continued)

Aftermarketing (continued)

  • Customer service and retention programs should encompass the following:
  • Offer customized or personalized customer contact and treatment
  • Conduct regular customer satisfaction surveys or audits
  • Create and sponsor special events or activities for preferred customers

(continued)

Aftermarketing (continued)

  • Maintain a database of current customers and defectors
  • Create a website with special content and features for members
  • Produce a newsletter and distribute that content on a regular basis
  • Offer frequency incentive programs

(continued)

Aftermarketing (continued)

  • Conduct stakeholder meetings or luncheons to gather feedback
  • Create special members-only events to demonstrate and show appreciation
  • Provide special access to players and other organizational assets that are not available to the public

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