The_sport_market

Lesson Objectives

  • Describe the size and scope of the sport industry.

  • Identify the differences between the three sport sectors and their roles in sport marketing.

  • Explain the unique features of sport as a product.

  • Describe how the special features of sport impact upon sport marketing.

The Sport Sector

  • Industry Definition: Market offering similar products/services to consumers.

  • Composition: Comprises suppliers providing products/services to sport consumers.

  • Value Chain: Steps from supplies and raw materials to delivery and marketing of sport products/services.

Three Sectors of Sport

  • Public Sector: Funded by taxpayer money; focused on social/economic benefits of sport.

  • Non-Profit Sector: Includes amateur clubs/associations, aimed at public good, operated by volunteers.

  • Private Sector: Profit-driven; includes gyms, sports equipment, and clubs.

The Public Sector

  • Governments provide funding and facilities for sport, promoting social and health benefits.

  • Involvement includes:

    • Funding and facilities.

    • Development via training institutes.

    • Delivery of health-related programs.

    • Oversight of compliance (e.g., anti-doping).

Non-Profit Sport Sector

  • Focused on public good, facing challenges like limited funding and marketing expertise.

  • Types of Organizations:

    • Amateur sports and competitions.

    • Recreation/social clubs.

    • Service clubs for social development.

The Private Sport Sector

  • Aims for profit through various channels:

    • Fans supporting leagues through attendance and merchandise.

    • Media purchasing broadcasting rights.

    • Corporate sponsorships enhancing revenues.

Special Features of the Competitive Sport Product

  • Sport as a product can be tangible (e.g., shoes) or intangible (e.g., subscriptions).

  • Main characteristics:

    • Intangible, subjective, and variable (hard to predict outcomes).

    • Publicly consumed; influenced by social environments and group experiences.

    • Creates strong emotional connections with consumers.

    • Events are perishable, produced and consumed simultaneously.

    • Organizations compete and cooperate, affecting league dynamics.

The Sport Marketing Mix

  • Consists of 3 analytical levels: Consumer, Company, and Competition.

  • Incorporates 4P’s of marketing plus Public Relations in sports.

  • Highlights the need for harmony among consumers, companies, and competition.

The Escalation Concept

  • Defines the transition from non-consumers to heavy users:

    • Types include: uninformed, misinformed, indirect consumers, small users, average users, and big users.

Sport Marketing Plan Steps

  1. Define Goals: Involve organization members in establishing vision and objectives.

  2. Analyze Sport Product: Examine tangible aspects, support services, and events.

  3. Analyze Environment: Perform a corporate SWOT analysis.

  4. Segment and Target Consumers: Group by demographics and psychographics.

  5. Sport Product Packaging: Differentiate from competitors.

  6. Pricing Strategy: Consider skimming, penetration, and competitive pricing.

  7. Promotion: Use tools like advertising, direct selling, public relations, and sponsoring.

  8. Distribution: Determine market localization and distribution timing.

  9. Evaluation: Assess consistency of financial and marketing results with objectives.