Sport Marketing

Sport Marketing - Total Fan Experience & Sports...

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Unformatted text preview: Total Fan Experience & Sports Marketing Sport Marketing "The specific application of marketing principles and processes to sport products; and to the marketing of nonsports products through association with sport." Shank (Ex: Selling games tickets or athletic shoes (sports products) vs. product endorsement by athletes Jordan/Air Nike sneakers; McNabb/Chunky Soup; Tiger/Buick cars) Sports Marketing Definition "The process of designing and implementing activities for the production, pricing, promotion and distribution of a sport product or sport business product to satisfy the needs or desires of consumers and to achieve the company's objectives." Pitts & Stotlar Sport Marketing Effective sports marketing involves a thorough understanding of the consumer and providing a sports product that meets the consumers' need, while achieving the organization's goals. [FANS FIRST] Sport Marketing Characteristics Sport is perishable. As events play out, and live drama unfolds, this is what consumers crave. Most people don't want to watch a televised event that has already been played (Olympic coverage). That's why sports marketing for many organizations focuses on advance ticket sales in an effort to counteract a team's poor performance. Sports Marketing Characteristics Emotional attachment is significant to marketers because brand loyalty sells tickets, licensed products, etc. What other products display such heightened emotional or psychological attachment as sport? Sports Marketing Characteristics Understanding these characteristics helps marketers make decisions in packaging, promoting and delivering products that influence a consumer's experiences and perceptions. What changes or modifications will need to be made in how the product is packaged, promoted and delivered in the future? ('12 SU FB team) Sports Marketing A sports marketing plan is a comprehensive framework for identifying and achieving an organization's marketing goals and objectives. Strategic Sports Marketing Process Process of planning, implementing, controlling marketing efforts to meet organizational goals and consumers' needs. Sports MarketingEvaluating Needs To be effective, sport administrators and marketing executives must anticipate consumer demand and needs. This is a complex and often challenging "moving target," based on sociological, economic and personal factors. Sports MarketingEvaluating Needs 1. What motivates consumers to purchased tickets, equipment, etc.? 2. How is the sports product or service perceived? 3. How did the consumer learn about the products or service? 4. How or why did the consumer choose certain products over others? Target families with youngsters. They are your FUTURE. Even if youngsters move away once they graduate high school or college, you continue to capture the middleaged adults who got into the habit of attending games with their children and support your program. Next Generation of Fans Sports Marketing Marketers must determine how to position the product or service to a specific group of consumers through audience segmentation, targeting, and positioning. These decision include: 1. How to group consumers together based on common needs; 2. Who to direct marketing efforts toward; 3. How the sport product needs to be perceived in the marketplace. Market Segmentation The needs and interests of sports fans vary greatly. The concept of mass marketing and treating all consumers the same is a recipe for failure. To be effective, marketers must have a complete understanding of the unique needs of groups of consumers. Market Segmentation Segmentation is the process of identifying groups of consumers based on their common needs. Which groups offer the greatest sales opportunities for the organization? Market Segmentation There are seven common classifications of market segmentation; 1. Demographic (age, gender, ethnicity) 2. Socioeconomic (income, education, occupation) 3. Psychographic ( lifestyle, personality, activities, interests, opinions) Demographics allow marketers to know who buys; psychographics allow marketers to understand why they buy. Market Segmentation 4. Geographic (city, county, region, physical climate skiing or sailing) 5. Behavioral (frequency of purchase, size of purchase(s), consumer loyalty 6. Benefits (consumer needs, product features desired) Why does a consumer buy a product or service? What problem of the consumer is solved by purchasing the product or service? ["fir, comfort, feel"; titanium golf clubs; highperformance product Market Segmentation 7. Geodemographic (zip codes, telephone area codes) People who live in close proximity are also likely to share the same lifestyle and demographic composition. 8. Geodemographics allows marketers to identify characteristics of broad segments of the population into census blocks such as city streets or neighbors within large metropolitan areas. Targeting Target marketing is selecting groups of consumers or segments that will allow an organization to most efficiently and effectively attain its marketing goals. Is each potential target market sizable? Easily reached? Measurable? Does it exhibit behavioral variation such as similar lifestyles and attitudes? Positioning After segmenting and selecting a target audience, sports marketers must properly position their sporting events, athletes, teams, etc. Positioning involves fixing your sports entity in the minds of consumers in the target market. This is based solely on the perceptions of the target market and how they think and feel about the product. Positioning The same sport may be positioned differently to distinct target markets. For example, golf could be marketed to different target groups based on age (youth and seniors); skill (handicap levels); level of interest (aspirers, casual, Planning Phase The final aspect is the PLANNING phase offer the products that are promoted, priced, and distributed in ways that appeal to the targeted consumers. Harlem Globetrotters Globetrotters marketing strategy that result in 20% increase in attendance Act grew stale at the same time the new, hip NBA (Jordan, Rodman, Barkley) experiencing unparallel popularity. Unveiled new, updated music and comedy into its act Added a team mascot Recruited better players Added an additional touring team Beefed up scouting Unveiled new corporate sponsors (Reebok) Used Walt Disney World field house as training complex Developed licensing program Sold merchandise on the web Opened retail stores Developed theme "What Sports Should Be" Internal Contingencies controllable factors within the organization that may influence the direction of the strategic sports marketing process. a. Organization's vision b. Organization's mission c. Organization's objectives and marketing goals short, measurable, time specific d. Organization's strategy how the sports organization plans on carrying out its vision, mission, objectives and goals. e. Organization's culture The vision and mission of the sports organization guide the strategic sports marketing process by addressing questions such as: What business are we in? Who are our current customers? What is the scope of our market? How do we currently meet the needs of our customers? External Contingencies uncontrollable factors a. b. c. Competition the attempt all organizations make to serve similar customers by understanding the strengths and weaknesses of market competitors Legal/Political promoting or discouraging passage of stadiums tax issues; trademark licensing Demographics observable aspects of the population, such as the total number of consumers and their composition such as age, ethnicity d. e. f. g. Technology alters ways sports are played or consumed at events. (e.g., titanium golf shafts, stadium videoboards, stadium seats equipped with computerized controls to order food. Culture shared values, beliefs, language, symbols and tradition that are passed on from generation to generation Physical Environment natural resources of a region dictates the types of sports that are watched and played, i.e. hockey in Canada, beach volleyball in CA, skiing, surfing, etc. Economy prosperity, recession, depression, recovery When sports marketers observe opportunities that match a particular strength, a strategic window is opened. A "STRATEGIC WINDOW" is a limited period of time during which the characteristics of a market and the distinctive competencies of a firm fit together and reduce the risks of seizing a particular marketing opportunity Ex: the founders of the Roller Hockey League hope to capitalize on the growing trend in inline skating. TEN P's of Sport Marketing 1. Purpose 1. Purpose the purpose of the sport marketing plan must be linked to the organization's mission and core values. This is necessary to ensure that the packaging, promotion and delivery of sport will be conducted in socially responsible ways. (NBA dress code) 2. Product Product a tangible good or service, or a tangible quality that satisfies consumers' wants or needs. Marketers must determine whether the commodity is: a. tangible good (apparel, equipment, etc.); b. game or event; or c. service (support services that are ancillary to event but necessary for its operation, i.e., game officials, athletic trainers, etc.) 3. Projecting the Market Analyzing past and current market climate to project and forecast the future market conditions to see how it may affect sport marketing practices. Internal contingencies mostly controllable factors inside an organization that affect the sport marketing climate such as coaches, players, owners, team management; and external contingencies uncontrollable factors outside of the organization such as media, corporate sponsors, government regulations, league policy changes. Utilizing a SWOT analysis of an organization Strengths history; tradition; established spectator markets; assets (star players, strong league, new stadium, etc.) Weaknesses lack of strong market presence; games too long or too slow; lack of exposure from media; too much scrutiny that can affect ticket sales and advertising and corporate sponsorship revenue. Opportunities improved marketing of star players; a new coaching staff; upgraded schedule featuring strong opponents on home schedule; rivalry games; new stadia, etc. Threats popularity of competing sports in marketplace; lack of interest among youth, women and minority ethnic groups; poor economy. 4. Position Fixing the sport product in the minds of consumers in the target market. Need to provide distinct images of the product to differentiate it from competing products. Distinctive images are created in consumers' minds on: a. b. c. d. Type of consumers that purchase the product (E.g. ESPN's XGames, NBC's Gravity Games attract Generation Xers individuals born between '65 and '76.) Design of product as well as benefits offered by product Product price Where product/event takes (i.e. arena or facility) Positioning the sport product is done through communication channels: a. TV campaign b. Radio advertisement or PSA messages c. Branding of logos, symbols & ad campaign slogans d. Musical jingles e. Press releases e. News articles f. Feature stories g. Internet visibility If a sport product is perceived by consumers as being "unique," it is well positioned to compete successfully in selected markets assuming the images are positive. Proper positioning involves establishing a special niche for product in the market. (Orange/winter) Six Distinct Markets for Positioning Sports Products Primary Markets include: a. Participants athletes, coaches & game officials b. Spectators stadium attendees, TV viewers, radio listeners, print media and Internet readers c. Volunteers social hosts at sports events, statisticians, team managers Secondary Markets include: a. Corporate sponsors use sports to target and communicate positive and distinctive images about their products to large groups of spectators b. Advertisers use sports to target and communicate their products to large groups of spectators (e.g. stadium signage, TV & R ads) c. Athletes' or coaches' endorsement of products and licensed goods use sports personalities and celebrities or distinctive symbols, logos and trademarks to have consumers perceive products as popular or prestigious 5. Players Analyzing and targeting consumers that will allow a marketing plan to be successful. This involves grouping consumers according to common characteristics through your marketing research and segmenting consumers into clusters according to their commonalities. Market Research is conducted to obtain information about sport consumers in four areas: a. Demographics Who are they? Determine age, income, occupation, location b. Psychographics What do they want? Lifestyles determine what they think c. Media Preferences Where can they be reached? Determine media choices of print and electronic media d. Purchasing Behavior What do they buy? Determine how money is spent. 6. Packaging Presenting the product in the best possible manner to encourage the selected target audiences to purchase it. Consumers differ, so it necessary to present the product it different ways. Sport marketers might package a game as family entertainment and offer special family ticket plans; Or, during weeknight events, marketers might package the event as an ideal venue to make business contacts, consummate deals, etc., and offer business ticket plans catered to working professionals. Another way would be to position sport and its association with a worthwhile community service. Marketers could offer group discounts to social service agencies and charitable organizations. Another essential element of sport marketing is incorporating and packaging product extensions into the TOTAL FAN EXPEREINCE. Music, video features, giveaways, halftime entertainment, promotions all contribute to the overall packaging of a sporting event. Total Fan Experience In football, for example, tailgating and the socialization that takes place prior to or after the game is as important to some patrons as the game itself. Ditto for other sports that utilize various marketing elements to entertain fans and generate crowd excitement and enthusiasm. Packaging also includes the association with: a. b. Licensed goods and apparel Corporate sponsorship 7. Price Price value of the product and costs consumers must accept to obtain the product. Consumers determine value of a product by balancing the expected benefits of buying the product against the expected costs of the product. Price =Value Price Must determine how consumers perceive the value of the sport product compared with other competing products and determine an appropriate price. Price is the most visible element of marketing and it can also be the most flexible because of discounts, rebates and coupon offers. Four "C" Factors of Developing A Pricing Strategy a. Consumers research determines demographics, psychographics, purchasing behaviors and media preferences. b. Competitor analyze the consumer's perception of the product value compared with all competing products, and analyze the competitor's prices. c. Company analyze the costs involved with producing the products and set a minimum price to cover expenses. d. Climate analyze external factors, such as laws pertaining to pricing, government regulations, economic factors and political ramifications. PRICE MUST EQUATE TO VALUE. Overpricing can be detrimental to sales, but so can having too low a price. Consumers might equate a lower price with an inferior product. Pricing must be comparable to competing products such as other sporting events, and forms of entertainment such as theater, concerts, etc. Price can be readily changed to adapt to market conditions such as a poor economy, team performance, etc. Price can also be used to attract different audience segments such as senior citizen discounts, youth prices, student priced tickets, etc. 8. Promotion Promotion integrated communication and PR activities that either inform, persuade or motivate consumers to purchase products. Communicating product's image to selected target audiences is essential. Promoting sport products involves implementing a mix of activities that will: Promotion a. b. c. Communicate the desired image of the product to the target audience Educate and inform the target audiences about the product and its benefits Persuade the target audiences to purchase the product Advertising oneway paid messages about the sport product through mass media, stadium media (signage, game programs, etc.) Publicity nonpaid communication about a sport product in which the sponsor is usually not identified and the message reaches the public because it is newsworthy (press releases, TV & Radio PSA's) Promotional Elements Activities and Inducements promotional to encourage consumers to purchase the sport product. (Giveaways, coupons, free samples, cash refunds, contests, and Public Relations commuting a positive image about a product to the public that includes implementing community and media relations activities and programs. Media Relations maintaining networks and positive relations with "gatekeepers" in the media to obtain positive media exposure for a sport product. (Providing media releases, holding press conferences, conducting a "media day" with players and coaches.) Need to promote active involvement with the media, which will subsequently contribute to relationship building in the community. Personal Selling direct facetoface communication with individuals, groups or organizations to sell tickets, luxury suites, sponsorships or promote team. If done well, it can be highly effective because individual interaction is conducted directly with the target audience and dependent upon the mass media. Personal selling complements the other promotional activities by educating consumers about what they are experiencing and pointing out the benefits they are deriving. Sponsorship includes the partnership between sport organizations or events and corporate entities. Sponsorships often provide marketers with financial resources necessary to package, promote and deliver the events. Reasons for Sponsorship include: Establish or improve their image via association with highly visible sport events Promote their products, thereby increasing sales Display goodwill Obtain access and exposure to the events' target markets 9. Placement consumers to access or obtain the product. This includes: a. The location of the sport product (stadium); b. The point of origin for distributing the product (stadium box office, Internet or toll free telephone number); c. The geographical location of the target markets (local, state, regional, national, global); d. Other channels important to how target audiences may access the product (time of day, season or month in which product is Place distribution channels that allow Effective placement must create a system that is consumerfriendly in order to make purchases accessible, easy, quick and convenient. If consumers can't readily access event, marketing of the event will not be successful or maximize its potential. Evaluating the extent to which the marketing plan met its promise to help achieve the organization's mission. Obtain customer feedback that must be analyzed and evaluated. Evaluation should focus on determining the extent to which the plan helped the organization achieve its mission by acting in accordance with the core values of the organization. 10. Promise ...
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This note was uploaded on 01/30/2012 for the course SPM 215 taught by Professor Ryan during the Spring '08 term at Syracuse.

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