The marketing mix has been one of the core elements of marketing since the mid-twentieth century (cf. Kotler and Keller, 2012). This article elaborates on the traditional components of the marketing mix — price, product, promotion, and place — in the first part. In the second part, it discusses the expansion to the 8 Ps, which includes people, physical evidence, process management, and productivity and quality. The discussion defines each component and places them in the context of the digital age, using examples from the sports business.

Introduction

Marketing can be defined as a business activity that helps “introduce and gain acceptance of new products that ease or enrich people’s lives” (Kotler and Keller, 2012, p. 4). To achieve this objective, it’s necessary to develop strategies and tactics based on a set of marketing components, commonly referred to as the marketing mix (cf. Borden, 1964). McCarthy (1960) introduced the original 4 Ps of marketing, encompassing the components of price, product, promotion, and place. Subsequently, the marketing mix has been updated and expanded in various marketing literature, which shows differences in perspective and terminology regarding its components. A significant update led to the development of the 7 Ps of the services marketing mix, adding people, physical evidence, and process management to the framework (Wilson & Gilligan, 2005). This was further extended to 8 Ps with the inclusion of productivity and quality (Lovelock et al., 2008). Figure 1 provides a visual overview of the 8 Ps in a contemporary marketing mix. The following sections will delve into each of the four traditional components, highlighting their significance in the marketing mix with examples from sports brands and discussing how to best conceptualize and apply them.

Price

Price is defined as “the monetary cost incurred by the buyer” (Fetchko et al., 2019, p. 21). It serves as an indicator of product quality and benefits. Products with higher prices are often perceived as being of higher quality compared to lower-priced products and may be less affected by competitive offers from rival brands. Consequently, the price component can positively impact brand equity (Yoo et al., 2000). Managing expectations about the perceived quality of the product or service is crucial, and this involves setting an appropriate price that “must reflect the quality of the product as well as how the product is promoted and distributed to consumers” (Shank, 2003, p. 55). Lovelock et al. (2008) observe that other service costs—such as time, mental and physical effort, and unpleasant sensory experiences like noise and odors—can be perceived as indirect costs, potentially reducing the perceived quality of the product use or service consumption experience.

In different product categories, such as sports brands, marketers need to consider distinctive pricing strategies for the various products their organization offers. One category involves setting the price for admission tickets to sporting events in stadiums or other venues, like football matches, ice hockey games, races, fights, etc. (Shank, 2003). Similarly, the cost for viewing the event through pay-per-view (PPV) or over-the-top (OTT) services must be reviewed and set. However, this requires the organization responsible for marketing to own the broadcasting rights (cf. Fetchko et al., 2019). Additionally, pricing for branded merchandise, such as jerseys and other items bearing the name of the sports team or athlete, needs careful consideration to remain competitive in the saturated sports merchandise marketplace (cf. Fetchko et al., 2019).

Another pricing category is sponsorships, which in sports can range from venue naming rights to jersey sponsorships, billboards in the stadium, and digital media co-branding (Fullerton, 2010). As mentioned earlier, all prices should reflect the perceived quality for which the customers pay, whether in a B2C or B2B context. For example, if stadium attendees feel that the admission fee to watch a football match is too high compared to the sporting experience provided, they might reconsider attending again or renewing their season ticket, if they are season ticket holders. When watching a match on PPV or OTT, if the price seems excessive relative to factors such as commentators’ expertise, ease of access, or production quality, viewers may choose not to watch another match. Similarly, merchandise requires appropriate pricing. Although strong brand equity can reduce a buyer’s concern about overspending on clothing that might elevate their self-esteem (cf. Aaker, 1991)—consider Air Jordan sneakers, New York Yankees caps, or Real Madrid jerseys—the pricing of such merchandise demands careful attention, as various lifestyle brands recognize the importance of brand equity, increasing competition (Schmitt, 1999).

In sports sponsorship, significant interest lies in the maximum possible reach offered by the sports brand, which the sponsoring company invests in (Newman et al., 2013). In the pre-Internet era, this was limited to exposure in the sports venue, brand publications for direct mailing to customers, and TV broadcasting where applicable (cf. Shank, 2003). In the digital era, extensive reach across various digital and social media channels can justify a higher price, particularly evident with athlete-influencers (Carnahan, 2020).

Three perspectives of pricing

Prices are determined based on three perspectives: the customer-based perspective, which considers ‘What will the market bear?’; the competitor-based approach, asking ‘What do competitors charge?’; and the cost-based viewpoint, inquiring ‘What margin should we make?’ (Cram, 2008). Figure 2 illustrates the dynamics of pricing: The potential price range begins at the floor price, determined by the company’s production costs for the product or service, and extends to the ceiling price, defined by the customers’ purchasing ability. The perceived appropriateness of the price for the offered product or service depends on the brand’s marketing influence on consumers. This includes the brand’s effectiveness in demonstrating and communicating the value received from purchasing it and the extent to which the brand and its products are seen as superior to competitors.

In researching the impact of the price component on perceived quality of a product or service, a questionnaire might include items such as: “The price of X is high.”; “The price of X (focal brand) is low. (reverse-coded)”; “X is expensive.” (Yoo et al., 2000).

Pricing should be determined by balancing the following questions: ‘How much are our customers willing and able to pay, how much more or less than our competitors should we charge, and what margins should we make?’ (Cram, 2008). Although some sports fans are highly devoted and less sensitive to price regarding a favoured sports brand or club (Stewart et al., 2003), there exists a threshold beyond which they may be unwilling or unable to spend on experiencing that sports product. For instance, if the stadium experience—including tickets, travel to the venue, and incidental expenses like food and drinks—becomes prohibitively expensive, some customer segments may no longer afford or choose to pay for it (cf. Taylor, 2020). Reevaluating the desired (or necessary) margins above the product’s base cost helps define a more appropriate price. Comparing one’s prices with those of competitors can offer insights into market tolerance. If higher margins and therefore higher prices are sought, the additional value expected from consuming the product should be clearly communicated (Yoo et al., 2000). For example, if a branded sweater is priced significantly higher than competitors’ products, the features justifying this higher price, such as local production sourcing, a portion of revenue donated to charity, or superior material quality, should be explicitly conveyed. Lastly, soliciting customer and fan feedback on whether they perceive the prices of various products as high, low, or reasonable for the quality provided can offer crucial insights for adjusting either the price or the product quality.

Product

Mullins et al. (2016) define the product component in the marketing mix as “anything that satisfies a want or need through use, consumption, or acquisition” and elaborate that “products include objects (TVs, radios, cars), services (medical, educational), places (New York, Moscow), people (Barack Obama and other politicians everywhere), activities (entering a contest or visiting a weight- loss clinic), and ideas (have you hugged your kids today?)” (p. 9/3). In the broader process of creating a product or service, a key task for marketing managers is to “select the features of both the core product (either a good or service) and the bundle of supplementary service elements surrounding it, with reference to the benefits desired by customers and how well competing products perform” (Lovelock et al., 2008, p. 1/20). In the context of the digital age, Dominici (2009), referencing Yudelson (1999), suggests that the product element in the contemporary marketing mix should be redefined as “all the benefits through time that the user obtains from the exchange” (p. 19), aligning with the previous definition. Kotler and Keller (2012) state that a great product is central to a great brand and emphasize that “to achieve market leadership, firms must offer products and services of superior quality that provide unsurpassed customer value” (p. 325). To achieve this goal, they propose a hierarchical organization of five product levels based on benefits and customer value (see Figure 3).

Level 1: Core benefit. What are the fundamental benefits customers buy into? A sports fan may buy entertainment, excitement, relaxation, or a reason to spend time with friends or family to escape day-to-day life for a couple of hours. The company should see itself as the provider of such a benefits.

Level 2: Basic product. Based upon the defined core benefits, the company designs the product or service. For example, in order for a sports club (i.e. football, basketball, ice hockey, etc.) to offer entertainment, a team needs to be assembled, a stadium or venue built or rented, games need to be organised and communicated, staff and helpers employed, and games held. 

Level 3: Expected product. Potential customers in the targeted audience expect certain conditions and attributes from the product. For example, the broadcast of a football match on TV or online streaming platform should be stable and without technical issues (e.g. buffering, time-lag, etc.), should be a multi-camera production, include professional and competent commentators, possibly pre- and post-match interviews or commentaries, etc. 

Level 4: Augmented product.

Exceeding customers’ expectations can be achieved by enhancing the product or service with additional functional and emotional value beyond the basic and expected offerings. This approach allows companies to stand out from their competitors and enhance their market performance. Essentially, the perceived value by customers is shaped by design aspects such as visual appeal, functionality, and emotional engagement, which encompass elements like visual design, usability, relational aspects, and personal expression. These factors significantly influence the intention to purchase (Kim et al., 2017). To illustrate, a football match broadcast should captivate viewers with visually appealing branding elements, including logos, colours, transitions, music, and diverse camera angles. It should feature multiple commentators and employ multi-camera production techniques. Additionally, the broadcast should offer a variety of features like slow-motion replays and interactive elements, such as dedicated hashtags for second-screen interactions and detailed game statistics. Importantly, it should emotionally engage viewers through consistent and compelling storytelling about the brand or its athletes.

Level 5: Potential product. After having considered the four previous levels, the potentially final product or service can be produced. At this level, the company seeks to satisfy its customers’ needs (and more) and distinguish itself from competitors. For example, DAZN, a sports broadcaster, aims to offer more additional content on football (or other sports) games than Netflix and position itself as a more focused and knowledgeable sports platform. This could elevate their brand and attract more vested sports viewers. 

For the sports realm, Shank (2003) defines the product as “a good, service, or any combination of the two that is designed to provide benefits to a sports spectator, participant, or sponsor”, for which benefits can be intangible or tangible (p. 54-55). It is important to note the inclusion of the ‘sponsor’ target audience, emphasising both the business-to-business (B2B) and business-to-customer (B2C) relationships. This addition highlights that perceived benefits can be either tangible or intangible.

Promotion and integrated marketing communications

Marketing campaigns depend on effective promotion and communication to achieve their goals, which include delivering information about products and the brand, persuading target audiences of the product’s benefits, and motivating potential customers to take action (Lovelock et al., 2008). The purpose of messages delivered through what was traditionally known as the promotional mix is to guide potential customers throughout their customer journey, aiming to achieve specific objectives at each stage (Mullins et al., 2016). The advent of the digital age has significantly altered the channels and opportunities within the promotional mix, leading to what is now commonly referred to as the ‘integrated marketing communications mix’ (IMC mix) (cf. Batra and Keller, 2016). There isn’t a single established IMC mix; rather, there exists a variety of different mixes. In the article «The integrated marketing communications mix in the digital age: Defining the promotional channels with examples of Paris Saint-Germain» on this blog, a contemporary IMC mix is proposed based on recent literature. This mix is illustrated in Figure 4, and the article provides an in-depth discussion of the marketing and communication channels within the IMC mix.

Batra and Keller (2016) propose the following eight objectives along the customer-journey, which the IMC mix aims to achieve: 

Create awareness and salience. Brands need to ensure their target audiences are aware of the products and services they offer. This can be achieved by maintaining a prominent presence across influential channels such as advertising, direct marketing, personal selling, websites and search engines, and possibly through sponsorship at events (Batra and Keller, 2016). For instance, an online sports streaming platform like DAZN could promote an event like The Super Bowl, the annual championship game of the National Football League (NFL), by advertising on third-party websites and social media platforms with display ads or sponsored posts. They could also send targeted emails through their CRM system or use banners at events sponsored by DAZN to communicate the NFL broadcast. Personal selling might not be directly relevant in this example, but it can be influential in other contexts. For example, if a consumer is undecided about which sneaker to buy and asks for advice on Twitter, Nike could respond to such a post and explain why a specific sneaker might be the right choice for that person.

Convey detailed information. Holistic brand experiences should include an educational component, enabling consumers to learn about the brand and make informed decisions about purchasing its products or services (Pine and Gilmore, 1999). This principle also applies in an online environment, where information can be shared through a brand’s website or newsletter. McCarville and Stinson (2014) observe that consumers feel more comfortable with a brand when they find or receive value-adding information. Therefore, brands should streamline the flow of information about their products and services. It is crucial to create a well-organised and easy-to-navigate virtual experience that offers visually appealing and value-adding content, highlighting the purpose of the website or newsletter (Palmer, 2002; Ryan, 2016). For instance, a football club like Manchester City FC might provide extensive details about a new jersey on their online shop, including size, price, stock, product description, delivery options, return policies, and payment methods. The same approach can be applied through other suitable channels, with necessary adaptations to the mode of delivery.

Create imagery and personality. In this context, Batra and Keller (2016) suggest that the communication channels most influential on consumers in terms of brand imagery and personality are TV (advertising) and social media. Advertising and other paid media can reach a broad audience, including those who may not be familiar with a brand (Ryan, 2016). Similarly, social media offers a wider reach than traditional media (Newman et al., 2013). One effective strategy is to focus on aesthetics and entertainment (Pine and Gilmore, 1999). For example, the #DareToZlatan advertising campaign by Nike in 2014 was built on strong aesthetics, portraying football star Zlatan Ibrahimovic as a super-athlete and providing significant entertainment value (see Bianchi, 2014).

Build trust. Brand trust is most effectively established through public relations (PR), social media, and personal selling (Batra and Keller, 2016). One objective of PR is to secure brand mentions in third-party media outlets, such as TV channels, magazines, websites, news portals, or social media. These mentions are typically perceived as unbiased and neutral, contrasting with the perception people often have when encountering an advertisement (Schwartz et al., 2013). For instance, when the French football club Paris Saint-Germain (PSG) formed a partnership with Qatar Airways (see Mereu, 2020a), it would be ideal for third-party media outlets to report on this collaboration, providing an objective and unbiased perspective. Social media also plays a significant role in building brand trust, particularly when a brand engages with its community and values the brand-customer relationship (Laroche et al., 2013). This implies that a brand like PSG should demonstrate its availability and active presence online, essentially showing that it is an engaged member of its fan community and values the social interactions and contributions of its members (Kietzmann et al., 2011).

Elicit emotions. Schmitt (1999) emphasises that marketing activities designed to stimulate sentiments should appeal “to customers’ inner feelings and emotions, with the objective of creating affective experiences that range from mildly positive moods linked to a brand (e.g., for a noninvolving, nondurable grocery brand or service or industrial product) to strong emotions of joy and pride (e.g., for a consumer durable, technology, or social marketing campaign)” (p. 61). Advertising, PR, events, and social media are the most influential on the recipients of the message (Batra and Keller, 2016). Belch and Belch (2003) assert that “emotions generated by [an advertisement] are important because they may become associated with the advertised product through classical conditioning” (p. 125). An illustrative example is Nike’s engagement with the Black Lives Matter movement, which holds significant relevance for their target audience and community (see Nike.com, 2020). Nike developed a marketing campaign with commercials (YouTube.com/Nike, 2020), ensured media coverage of the campaign (e.g. Mirzaei, 2020), had NBA athletes wearing Nike shirts with ‘Black Lives Matter’ prints at sporting events (Mauch, 2020), and extensively shared the campaign across social media to evoke emotions (see #blacklivesmatter nike).

Inspire action. After consumers progress through the stages of becoming aware of a brand, learning about its products and services, understanding the brand’s image and personality, developing trust in its legitimacy, and cultivating positive emotions towards it, the next step is to inspire specific actions (Batra and Keller, 2016). One of the most utilised and effective methods to prompt action online is direct marketing, particularly email marketing (Hudak et al., 2017). To achieve the desired conversion, logical call-to-action (CTA) elements need to be clearly defined and implemented. This process is optimally conducted by introducing a product or service through a sales pitch or message, followed by a visually distinct CTA button strategically placed within the email (Ryan, 2016; Kumar and Salo, 2016). Figure 5 displays a PSG marketing email with CTA buttons. It could be observed that the price buttons in red are more noticeable than the actual CTA button ‘j’achète’ in white.

Instil loyalty. Once a consumer purchases a brand’s product or service and becomes a customer, the marketer’s role in maintaining customer satisfaction becomes even more crucial to encourage repeat purchases, thereby fostering customer loyalty (Kotler & Keller, 2012). In this regard, it’s essential to recognise that the four dimensions of a brand experience – aesthetics, emotions, information, and engagement – significantly impact brand loyalty. Brands must, therefore, offer a complete experience based on these dimensions (Brakus et al., 2009). While these experiences are provided individually at different stages of the customer journey, a brand needs to effectively integrate (i.e., communicate) these experiences around the four dimensions and continue offering them to customers. One approach is to develop a content marketing plan, as discussed in the article «10 steps to create a content marketing plan for a football product: How to promote the Milan Derby» on this blog. A brand could create content for various online channels based on the four dimensions of brand experience. This means delivering relevant information, evoking emotions through affective storytelling, setting the mood with beautiful and intriguing visuals (i.e., photos and videos), and engaging fans in discussions about the ongoing campaign. Publishing this content according to a strategically planned calendar would enhance the meaning and significance of the story being told (Laurell & Söderman, 2018).

Connect people. Batra and Keller (2016) observe that “High consumption satisfaction should lead to brand repurchase behavior and loyalty, but this may not, by itself, create brand advocacy” (p. 132). Therefore, it is crucial for brands to foster and encourage interactions and connections among people, particularly given that portable computing devices like smartphones and tablets allow consumers to engage with their favourite brands anytime and anywhere (Sutera, 2013). Social media on mobile devices is considered the most effective channel for achieving this objective (Newman et al., 2013). Vale and Fernandes (2018) discovered that in social media, “the need for Information, Empowerment and Brand Love mainly drive Consumption, Contribution and Creation, respectively” (p. 49). This indicates that to drive engagement, fans on social media desire relevant information, seek the ability to influence others, and require an emotional attachment to the brand.

Figure 6 concludes this section by providing an overview of the degree of influence that specific communication options, i.e., channels, can have on the desired outcome.

Place

The last of the four Ps in the traditional marketing mix is ‘place,’ often referred to as ‘distribution.’ This component addresses how the convenience of purchasing a product or service within a given distribution network affects consumer decisions (Mullins et al., 2016). Lovelock et al. (2008) note that products and services may be delivered through physical or electronic distribution channels, or a combination of both, depending on what adds the most value for the customer. Additionally, products and services could be delivered “directly to customers or through intermediary organisations, such as retail outlets owned by other companies, which receive a fee or percentage of the selling price to perform certain tasks associated with sales, service, and customer-contact” (p. 1/20). Yoo et al. (2000, p. 203) used the following three questions in their quantitative study to assess consumers’ perceptions of a product’s distribution intensity: (1) “More stores sell X, as compared to its competing brands.” (2) “The number of the stores that deal with X is more than that of its competing brands.” (3) “X is distributed through as many stores as possible.” Consequently, a sports brand with global aspirations, such as English football club Chelsea FC, would aim to (1) have their jerseys sold in more stores than their competitors, both online and offline; (2) ensure greater visibility across online and offline stores compared to their competitors; and (3) maximise visibility across a wide variety of stores online and offline to remain top-of-mind with consumers. A specific and extensive distribution network is crucial for building brand equity, as it simplifies the purchasing process by offering consumers more access to the product or service (Abril & Rodriguez-Cánovas, 2016).

In terms of place/distribution, for a digital product or service, it’s important to assess the potential ‘reach’ a brand can achieve through a specific online platform. This prompts marketers to consider, ‘How many potential customers could my brand reach on which online platform?’ (cf. Hutchins & Rowe, 2012; cf. Statista, 2020). However, it’s not just the ‘general reach’ that matters, but also the ‘relevant reach.’ This refers to the number of users a brand can reach through a digital channel who belong to the target audience as defined by demographics, geography, geodemography, psychographics, and behavior (Pickton & Broderick, 2005; Funk et al., 2016). A contemporary example is the streaming of movies, series, or sporting events.

Conclusion

The traditional marketing mix comprises the 4 Ps: price, product, promotion, and place. Marketers must evaluate how these 4 Ps influence their products and services within the broader business context (cf. Mullins et al., 2016). In summary:

• The price of a product or service should be set in alignment with what the brand’s target audience is willing and able to pay, including an appropriate margin above the floor price, which is determined by the cost of goods sold.
• The product (or service) should be based on core benefits and enhanced with both tangible and intangible features, aiming to fulfil consumers’ needs and wants while differentiating it from competitors’ offerings.
• The contemporary promotion aspect, now referred to as integrated marketing communications, aims to achieve eight specific communication objectives using various channels throughout the customer journey.
• Lastly, the place and distribution component of the marketing mix focuses on conveniently distributing a brand’s product or service through both online and offline channels. The objective is to maximise visibility and ensure that purchasing the product is as straightforward as possible for any consumer.

The next article will discuss the extension of the traditional 4 Ps of the marketing mix to include an additional 4 Ps: people, physical evidence, process management, and productivity and quality.

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