Marketing strategies in sports industry
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Intangibility-It is mostly applicable in marketing especially to a sports and leisure institution such as Sodexo prestige. Sodexo offers services such as hospitality. These services are not tangible. The service lacks physical existence (Barker, 2011).
Inseparability-This term is applicable since services from Sodexo are manufactured and consumed at the same time, and they cannot be separated from the customer’s experience as well as a means of production. Variability- This means the uniqueness of the services being offered in Sodexo. It is also referred as heterogeneity of services. Quality and individual performance may vary with time. Services are hard to deliver consistently. The level of quality in Sodexo is ensured through on-call support. Perishability- this implies how Sodexo cannot store its services for future use. Sodexo must ensure they provide excellent services such as service ethos, corporate hospitality and retail offers. Unlike goods, services perish (Pride & Ferrell, 2008). Lack of ownership- this implies that Sodexo customers do not obtain a tangible good to own as they obtain their services. Marketers in the sports industry need to be aware of the service associated features as they offer their products since they offer intangible service solutions that call for extended marketing contemplation beyond straight product marketing. There are traits that make goods be different from service delivery (Fyall & Ranchhod, 2009).Advertising- Advertising is a form of promotion whereby the marketer pays the selected media outlets for placing a message. Advertising is a form of crowd promotion since a solitary message can be conveyed to many people. The significance of advertising is to promote the sale of commercial goods and services (Floor & Raaij, 2011).
Personal selling-This is a face-to-face where the seller’s effort is to persuade a buyer to buy the product or services.Public relations- this is a planned promotion of goods and services to enhance institutional reputation. Public relations build up a solid rapport between an institution and its customers.
Advantages of advertising
1. A message can reach a lot of people
2. There is no need of middlemen, thus eliminating broker charges.3. The customers cannot be overcharged since the prices are already advertised.
4. It helps clients to save time.
Disadvantages or advertising
1. It will help the institution reach its target market.
2. Clients are able to give credibility regarding the institution according to its reputation.3. The cost of PR is less than other methods of promotional advertising.Sodexo must come up with an appropriate price strategy since price determines the quantity to be sold. Price strategy mostly affects the profitability of the firm, therefore, the following factors should be considered:
1. The cost of manufacturing goods and services. Sodexo should also consider other hidden costs of the business such as taxes, unpaid invoices, as well as insurance (Smith, 2012). 2. A profit. Sodexo must consider the amount of money they make above their break even.3. The market demand. Sodexo might decide to make their services more expensive if their services and products are in high demand. Conversely, if the demand is low, Sodexo have to charge low prices.
4. Industry standards. Sodexo must consider what other larger businesses are charging, and the services are offering. This will help Sodexo to fit in the market.5. The firm must consider who their clients are. The prices vary depending on the clients. Some clients are repeat clients, and others need exceptional services.
Barker, G. (2011). Sports and leisure careers. Mankato, Minn.: Amicus.
Floor, J., & Raaij, W. v. (2011). Marketing communication strategy: advertising, online marketing communication, public relations, sponsorship, sales promotion, direct-marketing communication, in-store communication, personal selling, exhibitions, integrated communication. Groningen [etc.: Noordhoff.
Fyall, A., Morgan, M., & Ranchhod, A. (2009). Marketing in Travel and Tourism. Central Lancashire: Elsevier Science.
Nine Factors to Consider When Determining Your Price – Tuts+ Business Article. (n.d.). Business Tuts+. Retrieved August 15, 2014, from http://business.tutsplus.com/articles/nine-factors-to-consider-when-determining-your-price–fsw-98
Pride, W. M., & Ferrell, O. C. (2008). Marketing (14th ed.). Boston: Houghton Mifflin Co..Smith, T. J. (2012). Pricing strategy: setting price levels, managing price discounts, & establishing price structures. Mason, Oh: South-Western Cengage Learning.
Sodexo services for the sports and leisure market. (n.d.). Sodexo. Retrieved August 15, 2014, from