advanced theory and practice in sport marketing - Marshalls University

ETHICS IN SPORT RETAIL MANAGEMENT: SELLING SPORT
PRODUCTS MANUFACTURED BY CHILD LABOR – Continued
The CEO wants to hear their options from a marketing standpoint as far as
potentially being able to control the damage:
1. Assume that the CEO chooses to change manufacturers, and that the
anticipated consumer backlash will be negative. How would you market
the products and the company in a positive light in spite of the ethical
issues present?
2. Would you have a problem marketing products, services, and an organization
that is engaged in an ethically questionable practice of selling
items manufactured by child labor in third-world countries? Why or
why not?”
METHODS OF PLANNING A SPORT
RETAIL MIX
To plan a sport retail strategy mix, one of three methodologies is used: the
Sport Retail Life Cycle; Scrambled Sport Merchandising; and the Wheel of
Sport Retailing.
Sport Retail Life Cycle
This concept is similar to the product life cycle. The first stage is the development
stage, which determines the best techniques for entering the new sport
retail organization into the marketplace. Inclusive of this stage is the initial
maintenance of the sport retail operation in an environment of controlled costs,
limited but quality human resources, and selective product and service offering
that the sport consumer desires. The goal is to provide optimal conditions for
future growth and development of the business.
During the introduction stage of the sport retail life cycle, the goal is to find a
niche in the marketplace and build a customer base. At this point the doors are
open and the need is to attract customers. Therefore, advertising costs are often
high to increase customer awareness. At the same time, sales are low in the
beginning – at least until the sport retail outlet is accepted by the general public.
As a result, the introductory stage is a time of negative profit at the beginning.
The goal of the growth stage is for sales and profits to increase as the business
becomes more established. During this time, a sport retail firm expands
their operations regionally, nationally, and perhaps even internationally. In
turn, new retail firms enter the marketplace striving to take a percentage of the
market. To remain in a strong market position, the costs of business to the sport
retail firm often increase. The result is a negative effect to profit, either because
288 ADVANCED THEORY AND PRACTICE IN SPORT MARKETING