Sport Marketing Exam #1

Marketing

the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large

Sport Marketing

the use of marketing for creating, communicating, delivering, and exchanging sports experiences that have value for customers, clients, partners, and society

affinity advantage

sports brands naturally build a deep emotional connection and loyalty with their customers that traditional goods and services struggle to achieve

positioning challenge

sports organizations provide entertainment instead of strictly athletic competition

experienced-based relationships

marketing moves past the tangible things are focuses on emotional connections with fans

value

a customer’s judgement of the benefits received from consumption of a product compared to the sacrifices required to acquire that product

Options to increase value

increase benefits and reduce sacrifices

Relationship marketing

the process of developing and nurturing long-term relationships with an organizations customers

Marketing’s influence

comes from a close proximity to customers

Marketing decisions

target mark, positioning, product, price, place, promotion

external factors on marketing

competition, economy, public policy, sociocultural trends, technology

Monopoly era (1900-1950)

infancy of the sport industry in the US

occurred primarily through newspaper and radio

Television Era (1950-1990)

TV’s became commonplace for households and sports became valuable entertainment content for TV networks

Highlight Era (1990 - 2010)

The web became accessible to more people and people could watch segments on demand

Experience Era (2010-today)

all aspects of consuming sports, from engaging with sports as a spectator or participant to interactions with corporate sponsors linked to sports properties, have the potential to be developed into an experience

Business-Driven Growth Factors

growth of sport media

increased interest in sports sponsorships

desire to build global brands

inclusion in economic development planning

Customer-Driven Growth Factors

Increased emphasis on leisure activities

introduction of new sports

increased interest in women’s sports

increased interest in personal wellness

Sport Marketing 5 Ps

People, Promotion, Platform, Profits, Positioning

Potisitioning

understanding customers

• establish value and mission

• conduct market analysis

• set marketing objectives

• select target markets

Platform

responding to customers

bundle of benefits

• brand relationships

• product

• place or distribution

Promotion

communication that is engaging

the voice of the brand

sponsorships

profits

creating customer value and satisfaction

price

performance measurement

people

service culture

quality of interactions

front-line employees

outsourcing

sports marketing professionals

utilitarian consumption motives

based on a customer’s desire to achieve some functional benefit from using a good or service

hedonic consumption motives

based on a desire to have a sensory experience that elicits pleasure, fun, or excitement

Sports Consumption motives

social, psychological, personal

Social Motives

family, group affiliation

psychological motives

self-esteem, escape

personal motives

aesthetic, entertainment, sensory stimulation, economic

cognitive involvement

the personal relevance of a sports object’s functional performance

affective involvement

the personal relevance a sport object holds based on its ability to allow a person to express his or her ideal self-image to the world

low-involvement fan segments

not avid fans whose lives revolve around that team or sport

situation-based identification

fans follow a team or individual because of a special event or circumstances that create heightened interest or attention

geography-based identification

fan identification occurs due to one’s proximity to a team, whether it is where they live presently or where they may have lived previously

high-involvement fan segment

fans have more enduring identification with a sports object

emotion based identification

fans who identify with a team win or lose. they are less likely to stop being a fan or reduce consumption if change occurs in performance or personnel

self-concept identification

fans identify with a team because it impacts how one perceives himself or herself and how others view that person

Paths to identification

star power, family, socialization, community, participation

star power

players, coaches, organization executives, or facilities that are heroes to many fans, recognized by other people, and are highly recognized in the community

family

may be the strongest influence

fans become fans because the rest of their family is

fathers have the greatest impact

often starts at an early age

socialization

decision to follow a team can be inspired by other fans

people desire to be part of a group

community

people becomes fans because they are because of the community they are based in or live near

can attract low-involvement individuals

participation

people become fans of the sport they played

they have greater knowledge of the sport

direct consumption

one makes the decision to attend a live sporting event

indirect consumption

watching games on tv, listening to a broadcast, viewing it on the internet, or reading stories but not at the physical venue

Influence on direct consumption

perceived options

team or sport identification

personal incentives

marketing incentives

perceived options

alternatives

multiple options

opportunity costs

future availability

financial requirements

conveniences and comfort

factors affecting perceived options

day and time of event

parking availability

weather

driving distance/time to event

availability of consumption via indirect means

team identification

means of expressing personal identity

may have greatest impact on attendance

mat be branded extension of team

very loyal segment

personal incentives

interest in sport

desire to engage in social interactions

value-added elements of event experience

types of incentives

price based

benefit based

reward based

price-basde incentive

offering a discount to entice buyers

benefit-based incentive

give event attendee added value for the price of admission

reward-based incentives

attract customers by offering them something of value in return for their attendance

physical enviornment

aesthetics

• external appearance

• scoreboard

• cleanliness

Spatial layout

• ease of entry and exit

• concourse and aisles

• seating comfort

• restrooms

• traffic flow

• concessions

Factors of an External Marketing Environment

• competition

• economy

• sociodemographic

• technology

• political, legal, regulatory

Competition

knowing who your competitors are, gaining insight into their strengths and weaknesses, and making predictions about future moves they will make

Brand competition

brands or firms that target similar customers with comparable products and prices

category competition

the brands or organizations whose offerings meet the same or similar customer needs

generic competition

any expenditure that a consumer might consider that would prevent purchase of a ticket to a sporting event

Economy

the rapidly changing and potentially volatile nature of the economy requires frequent assessment at the consumer level and the economy as a whole

consumer confidence index

Measures consumers’ beliefs about future business conditions, job market, and personal income; updated monthly

Consumer Sentiment Index

National sample of households that gauges opinions about government economic policies, personal job prospects and financial situation, and planned purchases

Consumer Price Index

Tracks monthly changes in amount consumers spend for a representative basket of goods and services

Personal Income and Outlays

Aggregate monthly estimate of personal income, disposable income, personal outlays, and personal savings

Buying Power Index

Annual estimate of local market buying power based on disposable income, retail sales, and population of market area

Reports on Business – PMI

Monthly survey of 300 business executives concerning expectations of business conditions

Retail Sales Forecast

Annual forecast of retail sales nationally based on current environment; separate reports forecast retail sales for events (e.g., Valentine’s Day, Back-to-School)

Advance Monthly Sales for Retail and Food Services

Monthly estimate of sales for different categories of retail industry and food services and drinking places

Gross Domestic Product

Quarterly estimate of output of goods and services by labor and property in U.S.

Technology

development of computers and information technology provides new ways of accomplishing tasks

ex. cashless payment systems, Wi-Fi Technology, paperless tickets

Political, Legal, and Regulation Climate

sports properties operate within boundaries imposed on them from industry regulation and government regulation

Industry regulation

sports properties are often subject to rules set by organizations or sanctioning bodies that oversee a particular sport

government regulation

government regulations are placed over sport, making expansion difficult

Sociodemographic

• aging population

• greater ethnic diversity

• increased buying power of women

• geographic changes in U.S. regions

• increased leisure time

  • demand for social responsibility

Strategic planning process

1. determine values and mission

2. conduct situation analysis

3. set goals and objectives

4. gather information

5. develop strategic plans

MAC

Match - Strength with external opportunity

Avoid - exposure to weakness or threat

Convert - weakness into strength

setting objectives

state desired outcome

financial objectives

• direct impact on revenue and profit

communication objectives

• desired outcome of marketing communications

criteria for good objectives

specific, measurable, achievable, challenging, time frame

Primary Data Methods

Surveys, focus groups, observation

Survey research

communication channel

telephone and mail

online and email

face-to-face

focus groups

typical customers or prospects (6-12)

group setting

moderator guides the conversation

tends to be more detailed

observations

observe behavior while subjects are unaware natural and in their natural enviornment

Strategic planning

• developing the brans

• defining the product

• deciding the pricing structure

• choosing optimal distribution channels

• creating most effective communications

• involves public relations, sponsorships

• delivering exciting fan experiences