The Special Nature of Sport

Marketing

Sport in Our Life

How has sport marketing grown?

How does sport marketing affect consumers?

How does sport marketing affect you?

Sport Marketing

Consists of all activities designed to meet the needs and wants of sport consumers through exchange processes

Two Major Thrusts

• Marketing sport products and services directly to sport consumers

• Marketing other consumer and industrial products/services through sport promotion

Marketing Myopia

A lack of foresight in marketing ventures

What does this mean?

Symptoms of Market Myopiain Sport

Tendency to focus on producing and selling rather than identifying needs and satisfying customers

Belief that winning sales“But no matter how disappointing the club's recent performance, its fans aren't likely to jump ship. "Real Madrid is special," says club member Beneyto. "No member is going to abandon the team just because it doesn't win."

Confusing marketing with promotions

Marketing Myopia’s Effecton Sport

•Slow growth of professional marketing staff

•Misunderstanding your product

•Misunderstanding your competition

•Misunderstanding demand

The Uniqueness of Sport

Product

Market

Promotion

Sport Product

Elements of the Product

•Playful competition

•Separation from normal space and time

•Regulation by rules

•Physical prowess and training

•Special facilities and equipment

Sport Product as Service

Intangible and subjectively perceived

Socially dependent

Inconsistent and unpredictable

Core product beyond marketer’s control

Simultaneously produced and consumed (in live event situations)

Sport Market

Sport organizations compete and cooperate

Consumers consider themselves experts

Consumer demand fluctuates widely

Sport has universal appeal

Sport pervades all elements of life

Sport Promotion

Businesses want to associate with sport—why?

Free publicity—how?

Strategic Marketing Management

in Sport: An Overview

Implementing a Sport Marketing Program

Long-term direction for company/brand

Revealed in a marketing plan

Sport Strategy

Shorter-term actions implementing the strategy

Tactics

The Strategic Marketing Plan

Situation analysis

Clarification of mission and objectives

Developing the marketing mix

Integrating plan into organization’s strategy

Controlling and evaluating

How can sport marketers better understand their environment?

Strategic Step 1: Analyze Market and Organization

Organizational Strengths

Organizational Weaknesses

SWOT Analysis

Helps organization understand itself and its environment

Environmental Opportunities

Environmental Threats

Strategic Step 2: Clarify Mission,Goals, and Objectives

Not a sales objective

Should be measurable

Should provide direction

Strategic Step 3: Develop a Marketing Plan

Demographic

Geomarket

Determine Market Segment(s)

Psychographic

Product usage rate

Product benefits

Escalator concept•Represents consumer movement to higher levels of involvement•Concept vital to sport marketers

Develop the Segment(s)

Strategic Step 3: Develop a Marketing Plan

Get product’s image in consumers’ minds

Involves research, development, and promotions

Product Positioning

Strategic Step 3: Develop a Marketing Plan

The Five Ps of Sport Marketing

Product

Price

Place

Promotion

Publicity/Public relations

Anticipate personnel or organizational structure needs and changes

Blend marketing mix to build packages valued by consumers

Strategic Step 4: StrategicResource Allocation

Satisfaction—continued attendance

Benefits—food quality, facility access

Continually evaluate and adjust

Costs—lost time, dealing with unruly fans

Strategic Step 5: Control and Evaluate

Consumer Satisfaction = Product Benefits – Costs