Sports Product Concepts Final Exam

Chapter 8 Sports Product Concepts Multiple Choice Sports products, in general, tend to be more _____. goods oriented ideas oriented services oriented marketing oriented none of the above Answer: c Page: 218-219 Difficulty: Easy If a team won every game, this would best exemplify _____. tangibility perishability standardization separability none of the above Answer: c Page: 219 Difficulty: Medium Which of the following is the sports marketer’s best defense/strategy to combat the intangible nature of sports? Highlight the competition. Discuss the great ushers and stadium personnel. Highlight the stadium factors or sportscape. Discuss the great athletes on the team, none of the above Answer: c Page: 219 Difficulty: Medium When the athletic shoe chain, Athlete’s Foot, demonstrates the quality of good (Reebok) compared to the quality of service (sale associate), this would be an example of _____. perishability separability tangibility standardization both a and c Answer: b Page: 220 Difficulty: Medium An example of a sports product would be _____. baseball cards Martina Hingis (tennis player) WNBA Ricky Martin (NASCAR driver) all of the above Answer: e Page: 220-228 Difficulty: Medium The total assortment of product lines that a sport organization (Nike, Reebok, Wilson) sells is the _____. product characteristics product brand product mix product trademark product line Answer: c Page: 221 Difficulty: Medium The _____ interact(s) with each other to produce the total product and include(s) branding, quality, and design. product mix product line product trademark product characteristics none of the above Answer: d Page: 223 Difficulty: Medium Branding is used to _____. differentiate a brand from its competitors increase tangibility avoid trademark infringement increase trademark blending protect players from getting lost in the dark Answer: a Page: 225 Difficulty: Easy According to the text, a brand mark can also be known as the _____ or _____. logo; logotype product; service mix; line model; trend none of the above Answer: a Page: 225 Difficulty: Medium Which of the following is the best team nickname, given the guidelines discussed in the text? Cleveland Indians San Jose Blue Jackets St. Louis Blues Macon Whoopee None of the above Answer: c Page: 226-227 Difficulty: Medium A(n) _____ identifies that a sports organization has legally registered its brand or brand mark and thus prevents others from using it. prototype sport product image trademark both a and b Answer: d Page: 227 Difficulty: Medium _____ is the value that the brand contributes to a product in the sport market place. Brand equity Brand image Brand awareness Branding loyalty None of the above Answer: a Page: 228 Difficulty: Medium Licensing allows one company to use the _____ of another. stadium trademark marketing manager service reliability both a and b Answer: b Page: 235 Difficulty: Easy Which of the following is NOT a dimension of service quality? tangibles responsiveness empathy durability assurance Answer: d Page: 240 Difficulty: Easy Product design for sports products includes _____. aesthetics, style, and functionality aesthetics, style, and color style, functionality, and usefulness aesthetics, usefulness, and color none of the above Answer: a Page: 243 Difficulty: Medium True/False A sports service is usually defined as a tangible, physical product. Answer: False Page: 218 Difficulty: Easy According to the sport goods-services continuum, a pure good would be a basketball, football, or golf equipment and a pure service would be a football game or golf tournament. Answer: True Page: 218 Difficulty: Easy When Nike advertised it’s F.I.T. apparel, it not only highlighted the comfort of the product, but also the way the apparel made you feel (“ready to take on the challenges of wild and wicked workouts”). This advertisement referred only to the tangible benefits of the product. Answer: False Page: 219 Difficulty: Medium According to the text, the sport product characteristics include branding, quality, and design. Answer: True Page: 223 Difficulty: Easy Branding is a name, design, symbol, or any combination that a sport organization uses to help differentiate its products from its competitors. Answer: True Page: 225 Difficulty: Easy The first step in the sport branding process is brand image. Answer: False Page: 228 Difficulty: Medium Brand loyalty is one of the most important concepts for the sport marketers because it refers to repeat purchases of one brand over others. Answer: True Page: 233 Difficulty: Easy Licensing is a contractual agreement whereby a sport organization may use another sport organization’s trademark in exchange for a royalty fee. Answer: True Page: 235 Difficulty: Medium The 2003 retail sales of licensed sports products for the four major professional sports leagues and college and universities were in the multi-millions of dollars. Answer: False Page: 236 Difficulty: Medium From the sports marketing perspective, the consumer’s perception of product quality is of primary importance. Answer: True Page: 240 Difficulty: Medium Essay List and discuss the three characteristics of the sport product. Suggested Answer: Branding—a name, design, symbol, or any combination that a sport organization uses to separate itself from competitors. Under branding, you will have: a name (Nike Air Jordan, Florida Gators, Atlanta Hawks), mark or logo (Nike Swoosh), a trademark (legal register to prevent others from using name or logo), the branding process (awareness, image, equity, loyalty), and also licensing (letting others use your brand for a royalty fee). Quality—two different types: 1) Product Quality is based on how well the product conforms to specifications that it was designed for, and whether the consumer views the product as worthwhile. 2) Service Quality is usually explained in the positive and negative views of the sport consumer (TEAMQUAL). Design—the aesthetics (physical surroundings, atmosphere), style (way the product or athlete/team/sport performs), and function (what the product is designed for and how it accomplishes this). Page: 223-243 Difficulty: Challenging List and describe the four steps in the branding process for a sport product. Suggested Answer: Brand awareness—refers to making the consumer in the target market recognize your product. Brand image—refers to the consumers’ beliefs about the sport product. Brand equity—refers to the value the brand contributes to the sport product in the marketplace. Brand loyalty—refers to the consistent preference or repeat purchase of one brand over others. Page: 228-233 Difficulty: Medium List and describe the five dimensions of TEAMQUAL. Suggested Answer: Reliability—ability to perform promised services dependably and accurately Assurance—knowledge and courtesy of employees and their ability to convey trust and confidence Empathy—the caring, individualized attention provided by the sport organizations for its customer. Responsiveness—willingness to help customers and provide prompt service. Tangibles—appearance of equipment, personnel, materials, and venue. Page: 239-240 Difficulty: Medium Describe how TEAMQUAL would be useful to an expansion franchise of a AA minor league baseball team. Suggested Answer: The five dimensions that would be used are: Reliability—The franchise needs to make the public aware that they stand behind their agreements. If the team promises to make up rain days or refund money, then they do it; if the team makes agreements with sponsors that there will be five address announcements at the game, then they make the announcements. Assurance—The employees for the team are knowledgeable in the area in which they are hired, so if an employee is hired to deal with the public in the area of security, they should have a working knowledge in this area. Empathy and Responsiveness—Employees for the team are people oriented, ready to deal with any problem that arises. New franchises will have problems, but knowing how to deal with these problems and in a timely fashion will ensure a favorable view of the team. Tangibles—Related to physical facilities; the sport fan wants to see professional facilities, and the idea of these facilities are sometimes high. The facilities and personnel appearance will improve the public’s ideas of return visits. Page: 239-240 Difficulty: Medium Describe how the branding process would be used for a newly formed team in the National Basketball Association. Suggested Answer: The first step is brand awareness—getting the consumers in the target market to know that there is a new basketball team in the area. This could be done in a number of ways through the media. Image—the consumers’ idea about professional basketball is generally set from the success of the NBA. The sport fans for basketball will expect a certain level of play. Equity is determined by the value of the brand. The NBA has an extremely high value level with the general sport fan in the U.S. Loyalty is very important for sport marketing. There are certain teams in the NBA that have a very strong fan base, but for a new team it will be at least 3-7 years before they can start to measure how loyal a fan base they have. Page: 228-233 Difficulty: Medium Chapter 9 Managing Sports Products Multiple Choice Brand new sports innovations, such as the first time two-man beach volleyball, or the advent of women’s boxing, all represent _____. new-to-the-world sports product new category entry addition to a product line product improvement none of the above Answer: b Page: 250 Difficulty: Medium The purchase of the LA Dodgers by the Fox Network can be described as a(n) _____. new-to-the-world product new category entry addition to a product line product improvement both a and b Answer: b Page: 251 Difficulty: Medium According to the text, sports products, such as bowling and billiards, are trying to _____ themselves as “yuppie sports activities” by creating trendy and up-scale environments for sports. develop position reposition create none of the above Answer: c Page: 253 Difficulty: Medium The creation of a large pool of ideas for potential new products is the primary goal of _____. idea generation idea screening concept development prototype development concept screening Answer: a Page: 257 Difficulty: Easy Potential customers are first exposed to a firm’s potential new products during ______. market testing business analysis concept development idea screening none of the above Answer: c Page: 257-259 Difficulty: Medium Product prototypes and marketing strategy can be evaluated in simulated or actual market situations through the use of _____. test marketing commercialization concept development concept testing both c and d Answer: a Page: 260 Difficulty: Easy The introduction (new sports product) process begins with _____. evaluation interest awareness adoption marketing Answer: c Page: 263 Difficulty: Medium Nike has just introduced a new product. To encourage successful adoption, the firm must first _____. make sure the consumer is satisfied motivate the consumer to try the product emphasize product advantages communicate the availability of the new product none of the above Answer: d Page: 263 Difficulty: Challenging The market becomes saturated during the latter part of the _____ stage. introduction growth maturity expansion both c and d Answer: b Page: 264 Difficulty: Medium NASCAR today is in the _____ stage. introduction expansion decline maturity growth Answer: d Page: 264 Difficulty: Easy With any new sport product, sales are usually slow at first, but with the onset of the _____ stage, sales will start to increase. maturity growth expansion introduction decline Answer: b Page: 264 Difficulty: Medium When a sports product starts the _____ stage, marketing goals must be made with regard to what to do with a failing product. growth maturity introduction decline expansion Answer: d Page: 267 Difficulty: Medium The _____ life cycle is found in most sports where the sales of sports products rise and fall with the opening and closing of that sport. classic seasonal expansion introduction none of the above Answer: b Page: 269 Difficulty: Medium According to the text, the rate at which new sports products spread throughout the marketplace is referred to as the _____. growth stage introduction stage maturity stage decline stage diffusion of innovation Answer: e Page: 272 Difficulty: Medium Those consumers most willing to adopt new sports products are called _____. laggards buyers innovators adopters thinkers Answer: c Page: 272 Difficulty: Easy True/False Sports products that are new to an organization, but not to the world, are referred to as new product category entries. Answer: True Page: 251 Difficulty: Easy Product line extensions are current products that have been modified. Answer: False Page: 251 Difficulty: Easy According to the text, dynamically continuous innovations are new sports products that represent changes and improvements but do not strikingly change buying and usage patterns. Answer: True Page: 254 Difficulty: Medium When sports organizations develop new products by using a systematic approach, this is referred to as the new product development process. Answer: True Page: 256 Difficulty: Medium The first phase of the new sports product development process is idea screening. Answer: False Page: 257 Difficulty: Medium Test marketing allows the sports organization to determine consumer response to the product, and also provides information that may direct the entire marketing process. Answer: True Page: 260 Difficulty: Medium The final stage of the new sports product development is commercialization, or introduction. Answer: True Page: 260 Difficulty: Easy From the time a sports product begins the new product development process to the time it is taken off the market, it passes through a series of stages known as the seasonal life cycle. Answer: False Page: 262 Difficulty: Medium The primary marketing objective at the conceptual stage is to maintain whatever advantages were captured in growth and offer a greater number of promotions to encourage repeat purchases. Answer: False Page: 264 Difficulty: Medium The groups of consumers (adopters) that follow the innovators are known as the early adopters. Answer: True Page: 273 Difficulty: Medium Essay List and describe the six stages of the new product development process. Suggested Answer: Idea Generation—all ideas for new products are considered and come from many sources, such as employees, product development teams, salespeople, and consumers. Idea Screening—all new product ideas are evaluated and while the poor ones are eliminated, the good ones are considered to see if they fit with the organizational goals. Analysis of the Concept—the organization begins to analyze potential new products in terms of how they will fit with existing products and how consumers respond to these new products. Developing the Sports Product—based on the conceptual stage, the design of the product begins so as to move the product to the testing stage. During this stage, a prototype is developed so as to get the product to the consumers for testing. Test Marketing—this stage allows the sports organization to determine consumer response to the product. There are three types of test marketing that may be conducted—standardized test markets, controlled test markets, and simulated test markets. Commercialization—this is the last stage, and at this point, the decision has been made to launch the product into production and distribution. Page: 256-260 Difficulty: Challenging Define the product life cycle and discuss some of the major objectives at each stage of the life cycle. Suggested Answer: From the moment a product begins the new development process to the time it is taken off the market, there are four stages: Introduction—during this stage, the marketing goal is to generate awareness and to stimulate consumers to be willing to try the new product and to distribute the product to selected target markets. Growth—sales are expected to increase and the marketing goal is to build consumer preference for your product. During this stage, differentiation occurs by making minor changes or modifications to the product or service. Maturity—product sales begin to stabilize and the level of competition increases. The primary marketing objective is to maintain the advantages that were in the growth stage and offer promotions to encourage repeat purchases. Decline—the product begins to lose sales steadily and a decision has to be made; to delete the product (completely shut down), to harvest (milking) the organization by retaining the product but offering little to no marketing support; or to maintain the product at its current level of marketing in hopes that competitors will withdraw from the market that is already in decline. Page: 262-267 Difficulty: Medium You are a current sales/marketing executive for AND ONE athletic shoe company. The company has seen tremendous growth with their basketball shoe product line, and now you want to branch out into other athletic shoe ware. Choose a major U.S. sport (football, baseball, basketball) and apply the new product development process. Suggested Answer: Student will choose a football, baseball, or basketball shoe and go through the six-step new product development process—idea generation, idea screening, analysis of the concept, develop the product, test market the product, and commercialize (introduce) and distribute the product. Page: 256-260 Difficulty: Challenging Under the Model of the Rate of Diffusion in the text, list the three factors that influence the new sports product. Suggested Answer: New Product Characteristics. Trialability—can consumers try your product? Observability—can consumers see the benefits of your product? Perceived complexity—does the product appear to be difficult to use or understand? Relative advantage—does the product seem better than existing ones? Compatabilty—is the product consistent with consumers’ values or beliefs? Perceived Newness of Innovation. Discontinuous—this represents the most innovative or original new products. Dynamically continuous—new products that represent changes and improvements but don’t change the buying or usage patterns. Represent ongoing commonplace change such as the minor alteration of a product or the introduction of an imitation product. Rate of Acceptance of Sport Innovation—the way the information is shared about the new product—mass media (television, print, radio, Internet) and word of mouth. Page: 272 Difficulty: Medium List and describe the four types of adopters. Suggested Answer: Innovators—the consumers that are first to adopt a new sport product as it enters the marketplace. Early Adopters—perceived as the most important group to sport marketers, characterized by high social status, carry high degrees of opinion of the product, and influence the word-of-mouth market. Early Majority—above average in social status, and is heavily influence by innovators and early adopters. Laggards—oriented toward the past and tend to be very traditional in sport product purchases; prices must be reduced and promotions encouraged for trial of the product. Page: 273 Difficulty: Medium Chapter 10 Promotion Concepts Multiple Choice The promotion mix is composed of all the following EXCEPT _____. advertising sales promotion propaganda public or community relations sponsorship Answer: c Page: 277 Difficulty: Medium Which of the following forms of promotion is typically intended to produce immediate sales? publicity advertising sales promotion direct marketing both a and b Answer: c Page: 277 Difficulty: Medium The process of establishing shared meanings, exchanging ideas, or passing information between a source and a sender is at the heart of _____. advertising communication personal selling direct marketing publicity Answer: b Page: 278 Difficulty: Medium The Lexus car company has just produced a series of commercials to be aired during the NCAA March Madness men’s basketball tournament. The firm would be considered to be the _____ for those messages. presenter source channel encoder receiver Answer: d Page: 281 Difficulty: Challenging According to the text, decisions on which _____ to choose depend largely on the overall promotional objective. decoding encoding medium personal selling advertising Answer: c Page: 284 Difficulty: Medium The intended target of any basic marketing communication is called the _____. sender channel media receiver encoder Answer: d Page: 284 Difficulty: Easy Distractions or distortions during the communications process that prevents the message from being effectively communicated are called _____. noise interruptions “glitches” static none of the above Answer: a Page: 286 Difficulty: Challenging Promotion planning begins with _____. a situation analysis target market considerations communication process analysis budget development financial acquirement Answer: b Page: 287 Difficulty: Medium The emphasis is on convincing channel members to move the product through the channel to the ultimate consumer in a(n) _____ strategy. pull implicit push explicit both b and d Answer: c Page: 287 Difficulty: Medium An advertiser’s influence on consumers is typically explained through use of the _____ model. basic communication advertising alert hierarchy of effects message percentage none of the above Answer: c Page: 288 Difficulty: Medium In which of the following budgeting approaches can the previous year’s sales most strongly influence the current year’s advertising budget? all-you-can-afford percentage of sales competitive parity zero-base budgeting none of the above Answer: b Page: 291 Difficulty: Medium The NBA Denver Nuggets set their promotion budget to equal the percentage allocated by other companies in its industry. The firm is employing the _____ approach. competitive parity percentage of sales percentage of forecasted sales zero-base all-you-can-afford Answer: a Page: 291 Difficulty: Challenging Which of the following promotional budgeting approaches is the most difficult to implement? objective and task competitive parity percentage of sales all-you-can-afford percentage of forecasted sales Answer: a Page: 291 Difficulty: Medium Major League Baseball seeks to ensure that its advertising message is consistent with the message of its personal selling and sales promotional efforts. This emphasis upon consistency is most consistent with the concept of _____. integrated marketing communications target advertising direct market communications sales promotion targeting mega-marketing communications Answer: a Page: 292 Difficulty: Challenging The coordinated use of television, print ads, videos, billboards, direct mail, and other media is called a(n) ______. systematic promotion punch cooperative marketing effort integrated marketing communications program global marketing campaign both b and d Answer: c Page: 292 Difficulty: Medium True/False According to the text, communication is the process of establishing a commonness of thought between the sender and the encoder. Answer: False Page: 278 Difficulty: Medium According to the text, in sports marketing the sender or source is usually a star athlete. Answer: True Page: 279 Difficulty: Medium Credibility is the source’s (athletes, teams, leagues) perceived expertise and trustworthiness. Answer: True Page: 280 Difficulty: Easy The element in the sports communication process that develops the exact content of words and symbols to be transmitted to the receiver is the message. Answer: True Page: 282 Difficulty: Medium According to the text, a one-sided message only states the positive features of the sports product, whereas a two-sided message includes both the benefits and weaknesses of the product. Answer: True Page: 283 Difficulty: Medium Encoding, performed by the receiver, is the interpretation of the message sent by the source through the channel. Answer: False Page: 284 Difficulty: Easy The target audience for a push strategy is not channel intermediaries but the ultimate consumer. Answer: False Page: 287 Difficulty: Medium The broad sports promotional objectives are to inform, persuade, and remind the consumer, but the ultimate promotional objective is to induce the consumer to action. Answer: True Page: 288 Difficulty: Challenging In practice, promotional budgeting is an active and scientific process by which the sports marketer determines the amount spent based on maximizing the monies available. Answer: False Page: 290 Difficulty: Medium If the Tampa Bay Lightning made $10 million during the 2003-2004 season, and then budgeted $500 thousand for promotions in the 2004-2005 this would be an example of percentage of sales promotional budgeting. Answer: True Page: 291 Difficulty: Medium Essay List and describe the promotion mix elements. Suggested Answer: Advertising—a form of one-way mass communication (TV, radio, print) about a product, service, or idea, paid for by an identified sponsor. Personal Selling—an interactive form of interpersonal (seller to buyer) communication designed to build customer relationships and produce sales or sports products, services, or ideas. Sales Promotion—short-term incentives usually designed to stimulate immediate demand for sports products or services. Public or Community Relations—evaluation of public attitudes, identification of areas within the organization in which the sports population may be interested, and building of a good ‘image’ in the community. Sponsorship—investing in a sports entity (athletic, league, team, event, and so on) to support overall organization objectives, marketing goals, and more specific promotional objectives. Page: 277 Difficulty: Medium List and discuss the elements of the communication process. Suggested Answer: Sender of Source—where the message originates and in sport marketing is usually a star athlete and should have credibility (expertise and trustworthiness). Encoding—translating the sender’s thoughts or ideas in the message, must have effort to make sure the receiver understands and comprehends. Message—refers to the content of the words and symbols transmitted to the receiver; can be one sided or two sided, one sided translates positive features, two sided translates both benefits and weaknesses. Message can have an emotional appeal, which is used as an attempt to make the customer feel a certain way about the product versus a rational appeal to help the customer arrive at a careful analytical decision. Comparative message is used to compare one sport product to a competitive product. Medium—refers to the channel through which the message travels from the sender to the receiver. Channels can be personal selling, television, radio, billboards, newspapers, magazines, athlete’s uniforms, and the Internet. Decoding—refers to the receiver interpreting the message from the source about the product. Receiver (audience)—the object of the source’s message should be a well-defined target audience. Noise—this refers to the interference of the message to the receiver; can be the wrong media or too much competition, or the message can be stopped by ambush marketing. Page: 279-284 Difficulty: Challenging Define ambush marketing, and discuss how it relates to the communication process. Suggested Answer: Ambush marketing is where organizations attempt to confuse consumers and try to make them believe that they are the official affiliated with a sporting event. This process comes into play at the noise element of the communication process and is used to gain an equal footing with an official sponsor of the sporting event; some in the marketing industry believe it to be unethical. Page: 286 Difficulty: Easy List and describe the two basic strategies of the target market consideration step in promotional planning. Suggested Answer: Push strategy—emphasis on having the channel intermediaries “push” the sports products through the channel of distribution to the final customer. A manufacturer might direct initial promotional efforts to a wholesaler who then promotes the sport product to the retailer and the retailer promotes the product to the final user. The objective is to get as much of the product into the warehouse or store. This strategy generally ignores the customer. The promotion mix element that is most prevalent is personal selling (salesperson of the manufacturer to wholesaler or retailer). Pull strategy—the target audience is the customer. The broad objective is to stimulate demand of the sport product, and with this, the retailers are forced to stock their shelves with the product. This is the more common of the two strategies. Page: 287 Difficulty: Medium List the four types of information that must be available to begin to measure return on investment (ROI) for integrated communications. Suggested Answer: Identification of Specific Customers—specific households, including information on the composition of those households to make inferences. Customer Valuation—placing a value on each household based on either annual purchases or lifetime purchases. Track Message Delivery—understanding what media consumers or households use to make their purchase decisions, and how a household receives information and messages over time. Consumer Response—to establish the best ROI, behavioral responses are captured; consumer responses such as attitudes, feelings, and memory are deemed unimportant and purchases, inquiries, and related behaviors are evaluated. Page: 293 Difficulty: Medium Chapter 11 Promotion Mix Elements Multiple Choice Which of the following types of advertising is primarily aimed at stimulating action or purchase? corporate advocacy advertising direct-objectives advertising cooperative advertising corporate image advertising public service advertising Answer: b Page: 299 Difficulty: Easy Advertisers use color, sexual images, attractive celebrity endorsers, and humor as ways to increase _____. consumer attention message exposure media industry awards selective comprehension novelty attention Answer: a Page: 301-302 Difficulty: Medium Typically, creative strategy emphasizes_____. entertainment novelty the product’s competitive advantage or benefits media selection none of the above Answer: c Page: 301 Difficulty: Medium “What is said” and “how it is said” are goals in _____. determining advertising budgets competitive interference efforts implicit communications designing creative strategy message exposure Answer: d Page: 301 Difficulty: Medium The _____ should answer the appeal that the advertiser is trying to target. advertising execution message exposure emotional appeal entertainment value none of the above Answer: a Page: 303 Difficulty: Medium The sponsored product is directly pitted against rivals on specific points under _____ advertising. subjective cooperative comparative direct both a and b Answer: c Page: 304 Difficulty: Easy The Tampa Bay Lightning is preparing an advertising campaign in which it will contrast its products with those of named competitors on a point-by-point basis. The team is employing _____. misleading advertising unethical business practices comparative advertising a push strategy none of the above Answer: c Page: 304 Difficulty: Medium _____ show(s) a “common” athlete or consumer in a common, everyday situation where the consumer might be using the advertised sports or non-sports product. Slice-of-life advertisements Comparative advertising Scientific advertisements Non-specific advertisements Subjective advertising Answer: a Page: 305 Difficulty: Medium Source credibility refers to _____. power expertise and trustworthiness attractiveness exposure rate the repetition factor Answer: b Page: 306 Difficulty: Easy _____ addresses two basic questions about the channel (medium) of communication. Comparative advertising Slice-of-life advertising Scientific advertising Media strategy Promotional strategy Answer: d Page: 309 Difficulty: Challenging Which of the following media is probably best for presenting complex or factual information? television radio magazines outdoor advertising Internet Answer: c Page: 310 Difficulty: Medium The number of times a person or household is exposed to a communication vehicle is called _____. reach frequency exposed rate the repetition factor the novelty factor Answer: b Page: 315 Difficulty: Easy The following are all media scheduling alternatives EXCEPT _____ schedule. continuous flighting pulsing seasonal All of the above are media scheduling alternatives. Answer: e Page: 316 Difficulty: Medium Which of the following is NOT considered a role that influences the buying process? economic buying role user buying role professional buying role technical buying role coach’s role Answer: c Page: 318 Difficulty: Medium All of the following are common sales promotion tools EXCEPT _____. rebates coupons buy one get one free contests publicity releases Answer: e Page: 320-325 Difficulty: Medium True/False Advertising is one tool of the sport marketer, but it has its limitations, especially in the area of visibility. Answer: False Page: 298 Difficulty: Medium When the NBA uses advertising such as “I Love this Game,” they are trying to enhance their image. This is an example of indirect objectives in promotional advertising. Answer: True Page: 300 Difficulty: Medium According to the text, the sport marketer should remember that advertising budgeting should ideally stem from the objectives the advertising is attempting to achieve. Answer: True Page: 301 Difficulty: Challenging Today’s sport marketer should be aware of emotional appeals in advertising. This type of advertising is not an effective way of conveying the benefits for health or pleasure. Answer: False Page: 302 Difficulty: Medium Pleasure or fun appeals are designed for those target audiences that participate in sports or watch sports for fun, social interaction, or enjoyment. Answer: True Page: 303 Difficulty: Easy A one-sided message conveys both the positive and negative benefits of a sports product or service. Answer: False Page: 304 Difficulty: Medium Reach refers to the number of people exposed to an advertisement in a given medium. Answer: True Page: 315 Difficulty: Easy When the sport marketer is considering an advertisement schedule, seasonal scheduling is the most prevalent because most sports, like running or jogging, are seasonal. Answer: False Page: 316 Difficulty: Challenging Baseball cards, NASCAR model car replicas, water bottles, hats, refrigerator magnets, and posters are items that can be given away with the sports product or at events and are known as premiums. Answer: True Page: 321 Difficulty: Medium Sampling is the element of the promotional mix that identifies, establishes, and maintains mutually beneficial relationships between the sports organizations and the various publics on which its success or failure depends. Answer: False Page: 324 Difficulty: Medium Essay List and describe the two categories of advertising objectives. Suggested Answer: Direct advertising—this is used to elicit a behavioral response from the target audience. This response may be purchasing tickets to a sporting event (game, tournament, etc.), buying a certain sporting good, or involvement in some type of athletic event. Indirect advertising—this is used to establish pre-behavioral responses by the consumer. This is accomplished by increasing awareness, enhancing image, improving attitudes, or educating the consumer. This type of advertising should lead to direct behavioral responses. Page: 299-300 Difficulty: Easy Define the creative process, and list the three desired outcomes. Suggested Answer: The creative process is generating the ideas or the concepts for the advertisement. The desired outcomes are (1) identifying benefits of the sports products, (2) designing the advertising appeal—what to say, and (3) developing the advertising execution—how to say it. Page: 301 Difficulty: Easy List and describe the five types of advertising appeals for sport marketing. Suggested Answer: Health appeals—markets to the concern of the value that society places on a desired lifestyle, is becoming more prevalent in advertising; an important consideration in this type of advertising is demographic profiling. Emotional appeals—such humor, sex, pleasure, and drama are associated with athletic competition and are used in sports marketing promotions. This is exploited with the emotional attachment that consumers develop for sports products; recognizing this strong emotional component, sport marketers use it to their advantage. 3. Fear appeals—this is an emotional appeal but it is used to communicate negative consequences if the sport product or service is not used or is used improperly. 4. Sex appeals—these advertisements rely on the adage that “sex sells”; these are used for products that are sexually related such as perfumes and clothing; but are also used to sell other products (Sports Illustrated, Swimsuit Ed.). and even league and types of sports, women’s beach volleyball with Gabrielle Reece and women’s tennis with Anna Kournakova. 5. Pleasure and Fun appeals—these target audiences participate in sports or watch sports for fun, social interaction, or enjoyment. These types of advertisements stress the positive relationships that can develop with family members, friends, or business associates by attending games or participating in sports. Page: 301-303 Difficulty: Medium According to the text, there are four guidelines for using sports celebrities as endorsers. List two of these guidelines. Suggested Answer: 1. Advertisements using athlete endorsers who appear during contests or events in which the athlete is participating are less effective. 2. Long-term relationships or associations between the product and the endorser are key—cannot be short-term or one-shot deals to be effective. Page: 308 Difficulty: Medium From the text, list the four benefits of personal selling (Table 11.5). Suggested Answer: Personal selling allows the salesperson to immediately adapt the message they are presenting based on feedback received from the target audience. Personal selling allows the salesperson to communicate more information to the target audience than other forms of promotion. Moreover, complex information can be explained by the salesperson. Personal selling greatly increases the likelihood of the target audience paying attention to the message. It is difficult for the target audience to escape the message because communication is person to person. Personal selling greatly increases the chances of developing a long-term relationship with consumers, due to the frequent person-to-person communication. Page: 317 Difficulty: Challenging Chapter 12 Sponsorship Programs Multiple Choice Investing in a sports entity to support overall organizational objectives, marketing goals, and/or promotional strategies is called _____. sales promotion advertising sponsorship personal selling image building Answer: c Page: 330 Difficulty: Easy The sponsorship process stems from the larger promotional strategy and includes all of the following EXCEPT ______. sponsorship budgeting sponsorship evaluation sponsorship design type sponsorship acquisition All of the above are part of the sponsorship process. Answer: c Page: 333 Difficulty: Medium When budgeting for sponsorship, a general rule of thumb is to be prepared to spend _____. 1-2 times the amount of the sponsorship on promoting the sponsorship 2-3 times the amount of the sponsorship on promoting the sponsorship 3-4 times the amount of the sponsorship on promoting the sponsorship 6 times the amount of the sponsorship on promoting the sponsorship No extra promotional dollars are required. Answer: b Page: 333 Difficulty: Medium According to the text, the final stage of the sports sponsorship process involves _____ and _____. implementation; segmentation implementation; evaluation evaluation; segmentation implementation; processing processing; marketing Answer: b Page: 334 Difficulty: Medium Sponsorship objectives that have a short-term impact on sales are called _____. indirect direct implied stimulant both a and b Answer: b Page: 337 Difficulty: Easy Some of the indirect sponsorship objectives include _____. awareness image building relationship building reaching new target markets all of the above Answer: d Page: 337 Difficulty: Medium One of the basic objectives of any sport sponsor is to generate _____. competition awareness image building relationships with its product none of the above Answer: b Page: 337 Difficulty: Medium Ambush marketing is an example of _____ in the communications process. encoding decoding sponsorship noise both a and b Answer: d Page: 339 Difficulty: Challenging Evidence of relationship marketing as a sponsorship objective can be seen by _____. new advertising point of sale displays in stores luxury boxes at the events implied advertising all of the above Answer: c Page: 344 Difficulty: Medium A model of how corporations select and choose sponsorship opportunities is called _____. sponsorship seeking model sponsorship acquisition model sponsorship contact model sponsorship relationship model none of the above Answer: b Page: 352 Difficulty: Easy The sports event pyramid is best described as a way to _____. categorize the scope of the sponsorship look at the sponsors objectives evaluate the sponsorship return on investment build public image for the sponsorship none of the above Answer: a Page: 353 Difficulty: Medium The World Cup is considered a(n) _____ event. international global world regional both a and c Answer: b Page: 353 Difficulty: Easy The state high school baseball championship would be best described as a _____ event. regional local national community worldwide Answer: b Page: 353 Difficulty: Easy The athletic platform can be divided on the basis of _____. athlete team league event all of the above Answer: e Page: 354 Difficulty: Easy The athletic platform most commonly associated with sports marketing is _____. team athlete event league level of competition Answer: c Page: 358 Difficulty: Medium True/False According to the text, the sponsorship program plays no part of the sport promotional strategy. Answer: False Page: 333 Difficulty: Medium Not unlike advertising objectives, sponsorship can be categorized as either direct, indirect, or neutral. Answer: False Page: 337 Difficulty: Challenging According to the text, a primary objective of sport sponsorship is to stamp out or meet any competitive threats. Answer: True Page: 337 Difficulty: Medium Ambush marketing is a planned effort by an organization to associate itself directly with an event to gain at least some of the recognition and benefits that are associated with being an official sponsor. Answer: False Page: 338 Difficulty: Challenging Relationship marketing is one of the most important issues for sports marketers in today’s competitive marketing environment. Answer: True Page: 344 Difficulty: Medium According to the text, the eventual objective for nearly all organizations involved in sponsorship programs is to increase sales. Answer: True Page: 346 Difficulty: Medium The purchase decision is at the center of the Sport Sponsorship Acquisition Model. Answer: False Page: 352 Difficulty: Medium In the Sport Sponsorship Acquisition Model, the influencers are individuals who can impact the decision-making process. Answer: True Page: 352 Difficulty: Medium According to the text, international events are at the apex of the Sports Event Pyramid. Answer: False Page: 353 Difficulty: Medium According to the text, the most commonly associated athletic platform for sport marketers is the event. Answer: True Page: 358 Difficulty: Easy Essay List and describe the sponsorship objectives. Suggested Answer: Direct sponsorship objectives—these have a short-term impact on consumption behavior and focus on increasing sales. Indirect sponsorship objectives—they lead to enhancing sales through awareness, meeting and beating competition, reaching new target markets, building relationships, and improving image. Page: 337 Difficulty: Easy List and describe the five elements of Indirect Sponsorship Objectives. Suggested Answer: Awareness—most basic objective of the sponsor is to generate recognition of its products and services, product lines, or corporate name. Competition—a primary objective of the sponsor is to meet or stamp out its competitor. Many corporations are not interested in sponsorship, but cannot afford to let their competitor get any more of an edge on sponsorship recognition. Reaching Target Markets—allows corporations to reach certain people who are attracted to sports. These sport events represent a natural forum for psychographic segmentation of consumers. Building Relationships—building long-term relationships with corporate and sport entities has become a prime objective in sponsorship, especially in professional and big time collegiate athletic community. This is done on an expensive level with prices exceeding the hundreds of thousands of dollars. Image Building—perhaps the most important reason for sponsorship of a sports entity. This is a two-way process for both the sponsor organization and the sports entity—the organization associates itself and/or its brands with the positive image generated by the unique personality of the sporting event. Page: 337-345 Difficulty: Challenging Define the concept of ambush marketing, and give a specific example within the sport marketing industry. Suggested Answer: Ambush marketing is the planned effort of an organization to associate itself indirectly with an event to gain at least some of the recognition and benefits that are associated with being an official sponsor. The text gives some examples; one is the Nike commercial of 1984 “I love LA,” before the Summer Olympics, even though Nike was not an official sponsor. Page: 338 Difficulty: Medium At the center of the Sport Sponsorship Acquisition Model is a group of individuals that play a unique role (buying center composition) in the actual acquiring of the sponsorship. List and describe the roles of this group. Suggested Answer: Gatekeepers—control the flow of information to the other members of the buying center. Influencers—individuals that have information regarding the sports entity requesting the sponsorship; this information has been acquired through contacts they have in the community or industry. Decision Maker—the individual within the buying center that has the responsibility to accept or reject the proposal. Page: 352 Difficulty: Medium List and describe the five levels of the Sports Event Pyramid (from top to bottom). Suggested Answer: Global event—at the apex of the pyramid, it has the broadest coverage and is viewed extensively around the world. The Summer and Winter Olympics are the only true examples of this type of sport event. International event—the next level in the pyramid and has two distinctions—a high level of interest abroad, but not global; or truly be global in scope but have a lower level of interest. Wimbledon, European Cup Soccer, American’s Cup, and the Pan-American Games are examples of this level. National event—this level has high interest in a single country or two countries. Examples are MLB World Series, NCAA Final Four, and Super Bowl. Regional event—has a narrow geographic focus within the region. The SEC football championship game, the Big East basketball tournament, and the Boston Marathon are all examples. Local event—lowest level and has a narrow geographic focus, such as a city, county, or state segment of consumers. City baseball tournaments, school county championships, and high school state tournaments are good examples. Page: 353 Difficulty: Challenging Chapter 13 Distribution Concepts Multiple Choice The ability of consumers to gain access to sports in a timely fashion at a convenient location is the essence of (a) _____. marketing mix distribution promotion promotion mix none of the above Answer: b Page: 365 Difficulty: Medium The individuals or organizations that route the sports product to the final consumer are known as the _____. channel of distribution delivery chain channel captains distribution team distribution mix Answer: a Page: 368 Difficulty: Easy New sports delivery systems include which of the following? the Internet direct mail hand delivery interactive billboards all of the above Answer: a Page: 368 Difficulty: Easy Middlemen are more formally known as channel _____. captains distributors intermediaries blockers mixers Answer: c Page: 370 Difficulty: Medium The _____ function is the first channel function and is performed mostly by sporting goods retailers. inventory marketing communications physical distribution information direct Answer: d Page: 371 Difficulty: Medium Ordering the correct assortment of merchandise and storing merchandise is a function called _____. inventory management intermediary management physical distribution inventory distribution channel management Answer: a Page: 372 Difficulty: Easy Without the _____ function, products would not be moved from producer to consumer. marketing communications information physical distribution direct channel none of the above Answer: c Page: 372 Difficulty: Medium The Internet affords consumers with a(n) _____ channel of distribution. indirect direct single fast none of the above Answer: b Page: 372 Difficulty: Medium Nike shoes being sold in a wide variety of outlets is an example of _____ distribution. exclusive selection selective intensive channel Answer: d Page: 373 Difficulty: Challenging The total number of sports retailers in the U.S. is _____. growing shrinking staying the same expanding in size none of the above Answer: b Page: 374 Difficulty: Medium Which of the following factors influences retail image? atmospherics location size of the store clientele All the above are influences. Answer: e Page: 379 Difficulty: Medium Activities that take place before, during, and after the sale are known as _____. customer satisfaction customer delight customer service service quality all the above Answer: c Page: 381 Difficulty: Medium Purchases made outside of traditional sports outlets and usually in the home are considered _____ retailing. non-sports non-store in-home point-of-purchase none of the above Answer: b Page: 382 Difficulty: Medium One of the primary advantages of web shopping for sports marketers is _____. it is easier to promote it can sell more products highly uniform target audiences the number of audiences are restricted All of the above are advantages. Answer: c Page: 382 Difficulty: Medium According to the text, modern _____ distribution tasks include marketing the game, advertising, sales force management, sales force operations, technical support, and customer service. channel selective exclusive ticket intensive Answer: d Page: 387 Difficulty: Challenging True/False Those individuals or organizations that take part in the distribution process are referred to as channel members. Answer: True Page: 368 Difficulty: Medium Channel intermediaries are organizations or individuals that are at the beginning process of producers and consumers. Answer: False Page: 370 Difficulty: Medium According to the text, the marketing communications function involves a number of activities, such as advertising and promotion, personal selling, and public relations. Answer: True Page: 372 Difficulty: Medium Direct channels of distribution are longer in length because of the intermediaries between the producer and consumer. Answer: False Page: 372 Difficulty: Medium Exclusive distribution occurs when only one outlet is used to market products per geographic market. Answer: True Page: 373 Difficulty: Easy The most critical sports retailing distribution decision is the first-year budget. Answer: False Page: 377 Difficulty: Medium According to the text, the term that best encompasses the many facets of in-store image is atmospherics. Answer: True Page: 379 Difficulty: Medium Promotional activities a sports retailer implements can affect a store’s image. Answer: True Page: 381 Difficulty: Easy Database marketing measures customers’ buying behavior so the sports marketer is able to distinguish loyal fans from first-time purchasers. Answer: True Page: 382 Difficulty: Medium Network and cable television, radio, and the Internet can all be considered as producers in the sports distribution process. Answer: False Page: 388 Distribution: Challenging Essay List, describe, and give examples of the three degrees of market coverage for sports products. Suggested Answer: Exclusive distribution—when only one outlet is used to market the sport product per geographic market. The TV network of NBC is an exclusive distributor of the Winter and Summer Olympics. Selective distribution—refers to making sports products available in several, but selectively chosen outlets. The NFL selectively distributes its regular season games on FOX, CBS, ESPN, and ABC. Intensive distribution—refers to selling sports products in a large number of outlets. Nike athletic shoes are sold in Foot Locker, Footaction, and Niketown retail stores. Page: 373 Difficulty: Medium List and describe the five consumers for price orientation. Suggested Answer: Brand-Loyal—believe their brand is superior to others and are willing to pay a fair price even if it is slightly higher Status-Seeking—will only purchase the highest-quality, most prestigious, name brand and will pay higher prices. Higher prices are welcomed because of status associated with the price tag. Service-Seeking—willing to pay slightly higher prices if compensated by higher levels of service. This is important for consumers who require higher levels of information from store personnel. Convenience Customers—value the location of the store and the ease of purchasing products that this offers. They are less likely to “shop around” and thus more likely to pay above-average prices. Price-Shopping—will “shop around” for the best deal at the lowest possible price. Page: 377 Difficulty: Challenging In the text, there are five general guidelines for choosing a store location. List and describe three. Suggested Answer: Consider the types of stores that will be around yours. You would not want to start an upscale athletic store around discount stores like K-mart or Dollar General Store. Consider the number and quality of competitors in the area. Consider the cost (rent, taxes, maintenance) of the potential location. Page: 378 Difficulty: Medium Discuss the stadium as a “place” for the distribution concept in sports marketing. Suggested Answer: The game is a primary place of distribution, and as such the stadium becomes the factory or place where the product or service is consumed. In the past decade, sport facilities have seen a great boom in building, and with these new facilities, an increase in the total sport experience has been a major thrust by sport marketers. The sport stadiums are used to the utmost degree to capture all available outlets for the sports to be marketed. Page: 383 Difficulty: Medium Discuss the “sports media” as a distribution concept. Suggested Answer: Network and cable television, radio, and the Internet have been the dominant form of venue for sports games, tournaments, or events. With sports media leaders being seen as the most powerful people in sports, there seems to be no letup of sports media being the biggest and most influential distributor for sport marketing. This type of distribution is still being expanded to new geographical areas of the world, and has maintained a solid hold on existing outlets. Page: 388-390 Difficulty: Medium Chapter 14 Pricing Concepts Multiple Choice A statement of value for a sports product is (a) _____. price discount fee exchange process contract value Answer: a Page: 396 Difficulty: Easy The most central tenet in pricing is understanding the concept of _____. discounting merchandising value deals both a and d Answer: c Page: 398 Difficulty: Medium The internal factors determining the price of a sports product include all of the following EXCEPT _____. consumer demand promotion product distribution cost Answer: a Page: 401 Difficulty: Medium The external factors that determine the price of a sports product include which of the following? competition cost organizational objectives economy both a and b Answer: e Page: 401 Difficulty: Medium According to the text, the _____ component of the promotional mix that is a part of the internal factors affecting price is important in the launch of a new sports product. production technology public relations consumer demand none of the above Answer: c Page: 402 Difficulty: Challenging Exclusive distribution of a sports product is usually associated with _____. higher pricing lower prices penetration pricing discount merchandising value pricing Answer: a Page: 402 Difficulty: Challenging Most professional sports teams at the Major League level engage in _____. price competition non-price competition price wars cost-plus pricing value pricing Answer: b Page: 404 Difficulty: Medium Rent or lease on an arena for a minor league hockey franchise is considered a(n) _____ cost item. total fixed variable intermediary limited Answer: b Page: 405 Difficulty: Medium Packaging costs for a new pair of rollerblades represent a _____ cost item. total fixed variable intermediary none of the above Answer: b Page: 405 Difficulty: Challenging Most professional sports teams are LEAST concerned about what type of organization objective? income sales competition revenue promotion Answer: c Page: 409 Difficulty: Medium There are four categories of organizational objectives that influence pricing decisions. Which of the following is NOT one of those categories? income consumer sales competitive social Answer: b Page: 409 Difficulty: Medium The quantity of a sports product that consumers are willing to purchase at a given price is known as _____. consumer demand consumer price curve consumer price index consumer supply curve none of the above Answer: a Page: 410 Difficulty: Easy All of the following are ways to estimate demand EXCEPT _____. consumer income levels consumer tastes organizational objectives availability of substitute products All of the above are ways to estimate demand. Answer: c Page: 410-412 Difficulty: Challenging An average ticket price to a single NY Jets game is reduced from $65.00 to $55.00 and the number of units sold increases dramatically. The demand is considered _____. unitary inelastic appealing elastic both a and d Answer: d Page: 411 Difficulty: Medium The _____ that may affect a consumer’s acceptable range of prices include the presence or absence of time, the usage situation, and social factors. situational factors elastic demand variable cost price perception value factors Answer: a Page: 413 Difficulty: Medium True/False Internal (or environmental) factors are controlled by the sports product organization. Answer: False Page: 401 Difficulty: Medium Coupons and rebates are price discounts designed to encourage purchase of the sports product, and are another way for consumers to get money back from the original purchase. Answer: True Page: 402 Difficulty: Medium According to the text, most sports product prices are negotiable. Answer: False Page: 402 Difficulty: Easy With the sports pricing concept, costs are those factors associated with producing, promoting, and distributing the sports product. Answer: True Page: 404 Difficulty: Medium Advertising and promotional costs for a local minor league baseball team that can increase or decrease from month to month would be a good example of variable cost. Answer: True Page: 405 Difficulty: Medium According to the text, many sports organizations, particularly amateur athletic organizations, determine the pricing of their sporting events based on social concerns. Answer: True Page: 409 Difficulty: Medium Consumer demand is one of the least critical factors in determining the price of sports product. Answer: False Page: 410 Difficulty: Easy Unitary demand is defined as a situation where price changes are offset exactly by changes in demand; in other words, price and demand are perfectly related. Answer: True Page: 411 Difficulty: Easy The mob effect (or the crowd effect) describes a situation in which consumers believe it is socially desirable to attend “special” sporting events. Answer: True Page: 414 Difficulty: Easy When it comes to external factors putting constraints on sports pricing, legal issues are an area that has little effect on sport products. Answer: False Page: 416 Difficulty: Medium Essay Using the box entitled The Value of a Seat, explain what Personal Seat Licenses (PSL) are, and give the pros and cons for this type of sport ticket pricing. Suggested Answer: Personal Seat Licenses—when individuals pay for the future rights to purchase tickets at a new stadium for seats in desired locations within the stadium. This is a relatively new marketing tool to help offset new stadium building. PSL’s can be purchased and in many cases passed on to family members or can be sold by the first purchaser to others. The Pros—this has been a way of minimizing the need for public money needed to build major sport facilities, and in return fans receive something o