Monday, March 26, 2012

Ch. 18 - Sales Promotion and Personal Sales


In order to discuss ESPN and Sales Promotion and Personal Sales we must "read between the lines" as they used to say in fourth grade.  We've all gotten the point that ESPN is a sports broadcasting network, and while yes ESPN is a brand name to be marketed, it falls short on sales.  So between the lines we go.

As discussed in the global marketing chapter, ESPN's prime product is their mobile product line.  A little refresher, ESPN had launched apps to keep every sports fan up to date on their favorite team / sport up to the very last second.  As well as being a top of the line "fantasy sports" provider.  How does this all tie into Sales Promotion and Personal Sales?!?  Well the biggest thing for ESPN is media awareness seeing how they're ratings are the main source of income because they get to charge more for advertisements on their network.  What also helps is if their mobile apps are widely used, retailers will pay to advertise there as well.

With all that being said, ESPN doesn't promote sales much because its more of a close door deal with retailers to promote via ESPN.  However, in order to have 97% media awareness they must promote a little.  I'm sure any sports fan watching professional games or even just ESPN for highlights has seen examples of ESPN's use of consumer sales promotion targeting their ultimate consumer for their mobile apps.  Which in turn works as a double winner for the brand known as ESPN!

As far as Personal Sales, ESPN plays the opposite roll as they do for Sales Promotion.  If you go here you can see ESPN's shop.  They do offer regular sporting goods and ESPN gear but their primary products sold are player and league attire from all major US professional sport leagues.  They even go as far as having a "Hot Zone" for players who seem to be the hottest at the moment.  Coming back to my point, ESPN itself does NOT have the rights to privately sell these items.  However, they obtain the right to personal sell them.  Upon researching I couldn't figure out if ESPN receives any push money or if they just personally sale these leagues products as a trade allowance.

Tricky huh?  ESPN isn't much of a retailer therefore there isn't any need for Sales Promotion or Personal Sales; however, they are indeed a business and a brand name therefore they will follow the number one rule, make money!

Monday, March 12, 2012

Ch. 15 - Retailing

Ok, so retailing.  To better discuss retailing we must first explain what retailing entails.  By the book, retailing is all the activities directly related to the sale of services and goods to the ultimate consumer for personal, nonbusiness use.  Basically, retailing is the art of hustling!  My company for this blog is ESPN, being that ESPN is a sports news broadcaster, I didn't have the option to visit and ESPN retailer.  So I went with option B, which was to go to any retailer and write about my experience.  Luckily for me, I was in the market for a new computer.  Allowing me to share with you my experience of shopping at an Apple retail outlet!  Arguably, one of the best retailers out there.  With that being said, this was a destination store because I, the consumer, purposely planned to visit Apple.

APPLE!  Where to begin.  First, I'd like to share a moment of silence for the mastermind Steve Jobs, may you rest in peace and watch from above as your company slowly takes over the world...

Ok, were back.  As soon as you walk in, you are blown away by the technology that Apple has to offer.  So blown away, you don't even recognize the little cute girl in a blue employee t-shirt greeting you and asking if she can help you.  The atmosphere screamed come in and play with my toys!  A prime example of product offering, because the variety of products Apple has to offer for the consumer.

Moving on, after the atmosphere took me away, the cute girl in the blue shirt brought me back.  I told her I was here with the intentions of purchasing a MacBook Air.  She brought me over to one of their iPads and had me type my name in and told me to wait while an assistant would come get me.

Not 30 seconds later, Sabastian from Poland, rocking the Apple blue employee shirt came and shook my hand.  A brief FYI, when I shop, I've already done my research and I'm on my mission to get in and get out.  I'm a firm believer in getting in and getting out!

Back to the experience.  Now I have my own personal Apple assistant in my quest for a laptop.  I immediately inform Sabastian I'm in the market for an Apple MacBook Air, 13 inches.  He puts a request in his little iPhone the Apple employees carry to have the MacBook Air brought out to us.  While waiting the full 2 minutes for my laptop to come from the back I asked Sabastian what the difference was between the MacBook Pro and the MacBook Air.  For the most part, its just the size, the Air is slimmer and has a slightly better battery life says Sabastian.  While the Pro is your more typical laptop but has more power for more programs.  I'm still dead set on the Air.

The MacBook Air arrives.  I asked Sabastian about programs and he filled me in without hesitation.  At this point I'm interested if I can stump him with something he doesn't know the answer for.  I got him!  I asked him why I couldn't switch my Apple ID from one email to the next.  So he walks over to another Apple employee and he shoves the answer out like it was nothing.  I was completely impressed with the knowledge Apple's employees obtain about their products.

Now, I'm almost ready to checkout, when Sabastian say's, "Mr. Keller, would you be interested in buying an external CD player because the MacBook Air doesn't have one internally due to the size of the device."  WOW, hang on a second, you mean theres no internal CD player?  This is an immediate turn off and he says this is why we at Apple sit the customer down and explain EVERYTHING to insure all customers have the best product to suit their needs.  I've been hustled!

Now, I've changed my mind and go with the MacBook Pro.  Surprisingly, I was calm and not irritated at all.  At this point in more stores, I'm fed up and just walk out.  Once again, the atmosphere was remarkable.

To sum, it all up, I purchased the MacBook Pro, which was another awesome experience.  Remember the iPhone I talked about earlier that the Apple employees have?  Well he takes my credit card, swipes the card under the iPhone and, BAM, I've paid for my purchase.  No lines, no hassle, no receipt(receipt was emailed to me!!!!).  So quick and painless I hardly even realized I had just spent nearly 1,500 bucks!

Lastly, after I had completed my purchase, Sabastian walked me over to another table where we opened my laptop and set it up.  This was extremely awesome because all the required stuff you must do prior to playing with your new laptop was done, and done properly by an Apple expert, who I know completely trust.  So as I get home, I bust out the laptop and fire away.

All in all, my experience with Apple's retailer in Menlo Park Mall in New Jersey was hands down remarkable.  Their employees where knowledgeable, their atmosphere was modern yet inviting.  Evaluating Apple through the Retailing Mix with the six P's goes as following.

Product - Apple's products cover all needs and wants a consumer requires.  Not to mention the innovative products that completely redefined technology, which makes people believe they need these products.

Place - Apple is good at putting their stores where their huge target market resides, however, I had to drive 30 miles to get to the closest Apple store.  My assessment, more stores couldn't hurt.

Promotion - It's Apple.  Enough said.

Price - Yes, their prices are fairly high.  However, the durability and reliability allows the fairly high price to go unnoticed.

Presentation - Excellent.  Apple's layout, modern with sense of organization of products.  The atmosphere, welcome and inviting.  And soothing, where in the past I would have gotten irritated and walked away, I was come and decided to stay.

Personnel - Excellent.  Apple's employee's swarmed the store with their bright blue shirts, yet weren't invasive or rude.  While, everyone of the Apple employees I spoke with, had knowledge beyond belief of their products that Apple had to offer.


If you haven't experienced shopping at an Apple retailer yet, it is one shopping experience you won't get any where else other than Apple.

Monday, March 5, 2012

Ch. 6 - Consumer Decision Making

For marketers to even exist in a world where they don't know all the information on or about their market is like a blind man shopping for contacts.  Absolutely useless.  Even more so, it is critical to understand the consumer and the consumer behavior.  If you can predict how the consumer makes their decisions, game over, YOU WON!  For a company such as ESPN, consumer behavior isn't about purchasing decisions.  Its more about how the consumer uses their services.  ESPN being one of the primary sports broadcasting networks, their service would be to report sports news.

With that being said, the consumer decision making process is a useful tool.  Some parts of the process can be applied to ESPN and their consumers decision making process; yet given the type of service ESPN, the decision making process doesn't apply as it would for most consumer behavior.

The consumer decision making process starts with; need recognition.  Need recognition hands down is the most applicable part of the decision making process for ESPN to understand consumer behavior.  The consumer might not NEED to watch ESPN to catch up on their sports but a majority of ESPN's consumers desire or WANT to.  This behavior is triggered for most consumers by an external stimuli.(Best example of an external stimuli for those of you who don't read the marketing chapters is; someone saying "Did you see Lebron's dunk last night?" and it urges the other to go watch his dunk, via ESPN).

As far as the next couple parts for the consumer decision making process; information search, evaluation of alternatives, purchase decision and purchase evaluate, they could apply in minor and randoms ways.  However, for the most part, ESPN's consumers display, routine response behavior.  They frequently get their sports news from ESPN, especially because ESPN has a media awareness of 97%.  While most watch ESPN for the dependability and ease of making the decision of  "where to get my sports fix!" 


Monday, February 27, 2012

Ch. 5 - Developing a Global Vision

ESPN is establishing a global vision through many means.  ESPN's newest service they're trying to push hard to their target market is "watch ESPN app".  Of course, ESPN's primary market is domestic in America; however, ESPN is pushing for global recognition via a Nokia app.  ESPN's mission statement is to serve sports fans wherever they are consuming sports.  Therefore, in order to successfully fulfill their statement they must extend their service worldwide.  Their new Nokia App which is supposed to launch in 2012, will be available in 190 countries.  With the ESPN Hub, sport fans can access sports news, scores and stats from their mobile devices.  Also the app will include ESPN analysis and video clips for select sports and uses the device's GPS to find local sports information and can be personalized for users to set their favorite sports and teams.  For ESPN, growing their business, especially their mobile business is a priority, and will allow ESPN to create a bigger global market.
This is a video from Lauren Johnson, ESPN's editorial assistant on Mobile Marketing about the launch of their Nokia app.


Lauren Johnson on ESPN's Nokia app


More about ESPN's international mobile market is:


  • Available in English, Spanish, Portuguese, French, Italian, German and Japanese on every major mobile operating system. 
  • ESPN Mobile offers content via: mobile web, mobile messaging, mobile operator deck and applications on smart phones including iPhone, iPad, RIM, Android and Nokia.

ESPN's global business in a nutshell:


Since 1998, ESPN's global vision has grown to:

  • (12) HD services, from 0
  • (1) 3D network, from 0
  • (48) international television networks, from 20
  • (13) international SportsCenter editions, from 0
  • (18) websites, from 1
  • (7,000) employees worldwide, from 1,900

In a whole, ESPN in my opinion has a good grasp on their global vision.  However, that's never enough.  ESPN continues to be innovative and push the envelope for their global market, with such ideas as their new Nokia app, ESPN seems to be fulfilling their mission statement, worldwide!

Friday, February 17, 2012

Market Environment - LIN, LIN, LIN no matter what!

All we do is Lin, Lin, Lin no matter what...
ESPN is currently selling the LIN-SANITY hard.  The Asian-American demographic is growing more and more with anticipation of Lin's next game.  ESPN's target audience being young males ages 18-49.  While ESPN has incredible success reaching their targeted market, specifically in the New York region due to the New York Giants winning Superbowl 46 in a remarkable 6 game winning streak in the playoffs.  However, now theres Jeremy Lin with the New York Knicks leading the Knicks on a winning streak, first in forever.  Jeremy Lin of the Asian-American demographic is the spark the Knicks have been missing in the point guard position.  ESPN is cover the Lin-Sanity hard in a effort to reach a new target market before now, wasn't a popular or easily reached demographic.  While playing ever update about Jeremy Lin, more and more Asian-Americans, male and female, continue to watch the Lin-Sanity hype.  This is a great example of ESPN's smart use of the market environment by adapting and reacting to positive change in the market, especially with a hard to reach demographic as Asian-Americans, in sports.




You best believe I'm all about LIN-SANITY.  I'll be tuning in to follow the Knicks and the LINANTOR!  Before this, I wouldn't even watch the Knicks.  Even more proof that this new Jeremy Lin hype is reaching ESPN's target market with a fury.  Who knows, the Knicks might win a championship, to top off a great year for New York City!

Thursday, February 16, 2012

Ch. 4 - The Market Environment

ESPN's best market environment currently is ESPN New York. The target market for ESPN is to zero in on young men, primarily men from 18 to 49. ESPN has been growing considerably fast among all it's viewers especially young men. The demographics of young men (18-49) is the toughest demographic to reach but it's what makes ESPN's sweet spot. ESPN does so well with their targeted market that other companies such as, Rolling Rock, Audi and Nextel are just a few of the consistent advertisers using ESPN for newer forms of rich media which allows them to effectively deliver their brands message to their core audience. Like I've stated before, ESPN's media awareness is 97% thus making ESPN, ESPN2, ESPN Deportes and ESPN.com an extremely effective platform for other struggling companies to reach the tough 18-49 year old men demographic. ESPN's ability to promote to sport affiliations has been exceptional which allows ESPN to provide extensive reach to the male demographic.

A look at ESPN:

  • Number of subscribers = 89.5 million homes
  • Median viewer age = 38.2 years old
  • Average primetime viewers = 1,550,000 people
  • Average total-day viewers = 760,000 people
  • Average primetime 18-49(age demographic) = 680,000 people
  • Average total-day viewers 18-49(age demographic) = 419,000 people
  • Target audience = MEN 18-49

The picture below shows ESPN's 2012 Planning Guide which illustrates all the sports events/seasons ESPN will be covering.  This ties into ESPN's market environment because durning all these events, their target audience will surely be tuning in.  Therefore, you should be able to grasp how well ESPN covers any and all sports that any 18-49 year old male might be into.  Once again, a premier platform for other companies to use to reach the male 18-49 year old demographic.



I will also attach the URL to ESPN's entire 2012 planning guide, on this link you can see ESPN's 2012 planning guide for all their networks.  A full view of all the sport medians ESPN will be covering which allows them to impact their targeted market.
ESPN's 2012 Planning Guide

Monday, February 13, 2012

Ch. 3 - Ethics and Social Responsibility


Ethics are the moral principles or values that generally govern the conduct of an individual or group.  In ESPN's case ethics is a huge issue for the fact that ESPN's sole job is to report sport news.  It's difficult for ESPN because the sport broadcasters rely on humor while analyzing a play or game.  Because ESPN has such a huge variety of followers it becomes difficult to abide by everyone's moral principles or values.  Many annoucers have been critized due to some of their comments, in some cases, ESPN's hand was forced to fire some annoucers because their comment "crossed the line" and violated people's morals.  Worse off for ESPN, prior to June 2011, the company had no Code of Ethics or Code of Conduct for their employees to follow.  This stranded their employees in a trial and error "danger zone" where they're forced to discover by error.  One such incident, in June 2008, and ESPN employee, Jemele Hill, publically made a comment about the NBA finals saying "Rooting for the Celtics is like calling Hitler a victim"  You can see the ethical dilemma there. 

It is common knowledge that a written Code of Ethics establishes a guidelines or set of rules to follow, which seems to be necassary to establish boundries for comments that can or can not be said over a global broadcasting network.  Guidelines suggested to ESPN after that specific incident were the following;
  • Do not presume that what is ancient history to you is ancient history to the next person; the wound of World War II may be as fresh to others as 9/11 is to you.
  • A good generalization is hard to find, especially when applied to cultures, races, genders and nations.
  • Analogies are likely to be imperfect; extreme analogies are likely to be extremely imperfect.
To date, after countless hours of research, I still couldn't find any written Code of Conduct or Code of Ethics.  For a global empire such as ESPN to not have written guidelines is absurd!  Get with the program already ESPN!

Social responsibility is a businessman's concern for society's welfare.  Furthermore, the newest theory in social responsibility is sustainability, which is the idea that a social responsibile company will out perform their peers by focusing on the world's problems and viewing them as opportunities to build profits and help the world at the same time.  ESPN takes social responsibility to heart.  I don't need to state that ESPN makes their profit, and makes it well.  Because of their highly profitable success, it allows the company to focus more on the world's problem or current rave.  I believe we all can agree todays social ill is, Going Green!  ESPN as a company takes many steps to being green.  I'm going to paste from their website their position on sustainability and going green.



"It’s our fishing sanctuary, our local soccer pitch, our makeshift dirt bike track – but in the end, the Earth needs just as much attention as the things we enjoy in life. ESPN is proud to do its part to promote and resurrect a greener world. From our virtually waste-free, carbon neutral 2009 ESPY ceremony to our eco-friendly corporate offices, we put heart and soul into being environmentally responsible.
Here are just a few of our environmental initiatives:
  • Compostable to-go containers, cutlery & napkins in cafeteria
  • LEED compliance for all new construction & renovations
  • Recycling of light bulbs, batteries, construction debris, and used cooking oil
  • Donation or recycling of old office furniture   
  • Reduced environmental impact & energy conservation at events
  • Virtually waste-free 2008 ESPY Awards ceremony
  • Virtually waste-free & carbon-neutral 2009 ESPY Awards ceremony
  • Disney (parent company of ABC/ESPN) ranks #34 in Newsweek's Green Rankings of the S&P 500"
Here is a link to ESPN's social responsibility position:
Social Responsibility Outreach
and
Corporate Sustainability