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.