Fundamentals of Sport Marketing Auxiliary Materials Chapter 1

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Fundamentals of Sport Marketing Auxiliary Materials

Fundamentals of Sport Marketing Auxiliary Materials

Chapter 1 The Sport Business Industry

Chapter 1 The Sport Business Industry

Some Segments of the Sport Business Industry n n n Sports tourism Sporting goods

Some Segments of the Sport Business Industry n n n Sports tourism Sporting goods Sports apparel Amateur participant sports Professional sports Recreation High school and college athletics Outdoor sports Sport marketing firms Sports sponsorship industry Sports-governing bodies

Industry An “industry, ” as defined by Porter (1985), is “a market in which

Industry An “industry, ” as defined by Porter (1985), is “a market in which similar or closely related products are sold to buyers” (p. 233). Some industries may contain only one product (e. g. , the tennis racket industry) or a variety of products (e. g. , the sporting goods industry

Products in the Sport Industry n Participation n Entertainment n Equipment and apparel n

Products in the Sport Industry n Participation n Entertainment n Equipment and apparel n Promotional items n Sport facilities n Marketing research n Management services

Sport Defined Sport, as used in contemporary sport management and in relation to the

Sport Defined Sport, as used in contemporary sport management and in relation to the sport business industry, denoted all people, activities, businesses, and organizations involved in producing, facilitating, promoting, or organizing any sport business, activity, or experience focused on or related to fitness, recreation, sports tourism, or leisure.

Sport Management Defined Sport Management is the study and practice of all people, activities,

Sport Management Defined Sport Management is the study and practice of all people, activities, businesses, or organizations involved in producing, facilitating, promoting, or organizing any sport-related business or product.

Some examples of the types of products offered in the sport industry: • sports

Some examples of the types of products offered in the sport industry: • sports as participation product • sports as spectatorial product (entertainment) • equipment and apparel • promotional merchandise • sports facilities as sport products • service businesses • recreational activities • complete management and marketing professional services • sport media businesses products

Sport Industry Defined The sport industry is the market in which the businesses and

Sport Industry Defined The sport industry is the market in which the businesses and products offered to its buyers are sport related and may be goods, services, people, places, or ideas.

The sport industry is a BIG business! In 1995, a study showed the sport

The sport industry is a BIG business! In 1995, a study showed the sport business industry to be a $152 -billion dollar industry and the 11 th largest industry in the United States. That represents a 242% increase, indicating that the industry has grown almost 2 1⁄ 2 times larger in 10 years.

Sport Industry Segments, 1987– 88

Sport Industry Segments, 1987– 88

How to Keep Up With the Latest in the Industry n Read trade or

How to Keep Up With the Latest in the Industry n Read trade or business magazines, journals, newsletters, and Internet sites n Attend sport business conventions or exhibitions n Obtain research from sport marketing firms n Read local or national news publications

Factors Influencing the Growth and Development of the Sport Business Industry I. People II.

Factors Influencing the Growth and Development of the Sport Business Industry I. People II. Sports Activities and Events: Sports, Recreation, Fitness, Leisure, Sports Tourism III. Sporting Goods IV. Facilities, Sports Medicine, and Fitness Training V. Commercialization and Marketing of Sport VI. Sport Industry Professional Service Businesses VII. The Sport Industry, Media, and Sport Media VII. Sport Industry Education

I. People n 1. Constant Human Interest in Sports and Recreation. People spend money

I. People n 1. Constant Human Interest in Sports and Recreation. People spend money – on cost of admission to the activity, – on items needed to participate, and – on merchandise. n 2. Increase in Sport Business Among Diverse Market Segments – There has been significant growth to accommodate different populations.

II. Sports Activities and Events: Sports, Recreation, Fitness, Leisure, Sports Tourism 1. Constant Increase

II. Sports Activities and Events: Sports, Recreation, Fitness, Leisure, Sports Tourism 1. Constant Increase in the Number of New and Different Sports, Recreational, and Fitness Activities, and Events 2. Consistent Growth in the Offering of Traditional Sports 3. Constant Increase in the Number and Type of Professional Level Sport, Fitness, and Recreational Activities 4. Increase in Sports Tourism and Adventure Travel Products

III. Sporting Goods 1. Increase in Sporting Goods and Apparel Designed for the Diversity

III. Sporting Goods 1. Increase in Sporting Goods and Apparel Designed for the Diversity of Markets and Their Demands 2. Influence of Technology on Sport. Related Goods, Services, and Training The sporting goods industry is one of the largest segments of the sport business industry because people must have equipment and apparel in order to participate in most sports activities.

IV. Facilities, Sports Medicine, and Fitness Training 1. Increase in the Number and Type

IV. Facilities, Sports Medicine, and Fitness Training 1. Increase in the Number and Type of Sports Facilities and Events 2. Movement of Facilities From Singlepurpose to Multi-Sport and Full-Service Facilities 3. Constant Increase in the Amount and Types of Sports Medicine and Fitness Training Services

V. Commercialization and Marketing of Sport 1. Packaging of Sport as an Entertainment Product

V. Commercialization and Marketing of Sport 1. Packaging of Sport as an Entertainment Product 2. Increased Marketing and Marketing Orientation in the Sport Business Industry 3. Increased Understanding and Knowledge of Consumers of the Sport Business Industry 4. Promotion Perfection as the Goal for Sport Marketing Professionals 5. Growth of Corporate Sponsorship 6. Increased Endorsements 7. Growth in Importance of Licensing and Merchandising

VI. Sport Industry Professional Service Businesses 1. Extraordinary Growth in Service Businesses for the

VI. Sport Industry Professional Service Businesses 1. Extraordinary Growth in Service Businesses for the Sport Industry To match the development of the sport industry, service businesses have arisen to provide legal representation, consulting, and research, marketing, and financial services.

VII. The Sport Industry, Media, and Sports Media 1. Sport Industry Benefits of Mass

VII. The Sport Industry, Media, and Sports Media 1. Sport Industry Benefits of Mass Media Exposure - Exposure to TV, the radio, and the Internet has increased popular interest in sports and the sport industry. 2. Sports Activities and Events as a Popular Entertainment Product 3. Constant Increase in Television and Radio Coverage 4. Increase in the Number and Variety of Magazines, Trade Magazines, and Academic Journals Devoted to Sport 5. The World Wide Web

VIII. Sport Industry Education 1. Increase in Sports and Sport Business Education for Executives,

VIII. Sport Industry Education 1. Increase in Sports and Sport Business Education for Executives, Administrators, Athletes, and Other Personnel Sport education is directed towards • Participants • Officials, coaches, trainers, producers, and promoters of sports events • Producers and promoters of sports events 2. Increase in Competency of Sport Management Professionals 3. Increased Prevalence of Sport Management as an Academic Discipline and a Career

The Organization of the Sport Industry

The Organization of the Sport Industry

Chapter 1 Questions 1. What is the sport business industry? Give some examples. 2.

Chapter 1 Questions 1. What is the sport business industry? Give some examples. 2. Describe the size of the sport industry in dollars. 3. What is sport management? 4. What is the North American Society for Sport Management? 5. What are the many factors that influence the growth and development of the sport industry? Give examples and explain how each factor influences the industry. Why is it important to know this?

Learning Activities 1. Create a list of sport industry businesses, organizations, clubs, and other

Learning Activities 1. Create a list of sport industry businesses, organizations, clubs, and other enterprises in your city or community. Categorize everything according to the three sport industry segments created by the Pitts, Fielding and Miller (1994) model: sport performance, sport production, and sport promotion. 2. For each item on your list, list the jobs within each. 3. For each item on your list, list the sport products offered to the consumer. 4. Write to the North American Society for Sport Management and ask for information about the organization.

Learning Activities (cont’d) 5. Subscribe to sport management-related journals such as the Journal of

Learning Activities (cont’d) 5. Subscribe to sport management-related journals such as the Journal of Sport Management, Sport Marketing Quarterly, and the Seton Hall Journal of Sport Law. Read and summarize the studies you find in the journals. Describe how sport management and sport marketing professionals can use the information. 6. With a group, create a list of 10 very different products offered in the industry. Determine which industry segment of the Pitts, Fielding and Miller model each product falls into and why.

Chapter 2 Historical Eras in Sport Marketing

Chapter 2 Historical Eras in Sport Marketing

Hillerich & Bradsby’s Marketing Plan In 1921, Hillerich & Bradsby Co. (H & B),

Hillerich & Bradsby’s Marketing Plan In 1921, Hillerich & Bradsby Co. (H & B), producer of the Louisville Slugger baseball bat, became the industrial leader in baseball bat production. H & B’s market position resulted from the implementation of a market plan. The market plan included an analysis of external and internal forces. External Forces (Macromarketing) 1. Increased market size. 7. Economies of scope. 2. Market growth rate. 8. Economies of scale. 3. Industrial profitability. 4. Government policy change. 9. Buyer preferences for differentiated products. 5. Resource availability. 10. National economy. 6. Technological change.

Hillerich & Bradsby’s Marketing Plan (cont’d) Internal Responses (Micromarketing) 1. Product 2. Place 3.

Hillerich & Bradsby’s Marketing Plan (cont’d) Internal Responses (Micromarketing) 1. Product 2. Place 3. Price 4. Promotion A competitive marketing plan must consider external forces that affect the whole industry and develop internal responses that enable the company to get and keep customers.

Historical Eras In Sport Marketing

Historical Eras In Sport Marketing

The Era of Origins: 1820– 1880 Sport marketing micro activities existed before 1880: •

The Era of Origins: 1820– 1880 Sport marketing micro activities existed before 1880: • William Fuller’s tactics in promoting boxing in Charleston, South Carolina during 1824 was the beginning. • Michael Phelan’s promotion of billiards and billiard tables during the 1850 s and 1860 s marked a significant advance over earlier boxing promotions. The commercialization of baseball began with the charging of an admission fee for a series of all-star matches between New York and Brooklyn played at the Fashion Course in 1858 (Goldstein, 1989).

The Era of Institutionalized Development: 1880– 1920 • During the period of Institutionalized Development,

The Era of Institutionalized Development: 1880– 1920 • During the period of Institutionalized Development, sport products were branded and trademarked. • Distribution activities and initiatives changed between 1880 and 1920. Producer-owned “branch houses, ” begun in the 1860 s by companies like Brunswick, became widespread after 1900 as companies took over wholesale and retail functions in order to circumvent antitrust laws and control distribution. • After 1880, sporting goods manufacturers and sport promoters began to develop the relationships between product quality and price and market segmentation and sales.

The Era of Institutionalized Development: 1880– 1920 (cont’d) • Promotional activities expanded in volume

The Era of Institutionalized Development: 1880– 1920 (cont’d) • Promotional activities expanded in volume and intensity between 1880 and 1920 and became more highly organized. • Market growth in terms of increased population was tremendous between 1880 and 1920. • Population expansion and concentration were accompanied by a significant increase in discretionary money.

The Era of Institutionalized Development: 1880– 1920 (cont’d) Improvements in the standard of living

The Era of Institutionalized Development: 1880– 1920 (cont’d) Improvements in the standard of living and an increase in spending money made sport increasingly available among Americans.

The Era of Institutionalized Development: 1880– 1920 (cont’d) • The revolution in distribution made

The Era of Institutionalized Development: 1880– 1920 (cont’d) • The revolution in distribution made possible by the railroad was also influenced by the telegraph and the telephone. • Technological changes influenced the production of certain kinds of sporting goods. • The advent of the 10 -cent magazine between 1885 and 1905 added another external force for sport marketers to use and contend with. • The increased production capacity of manufacturers, the revolution in distribution and communication, and the revolution in advertising made economies of scale possible and necessary

The Era of Institutionalized Development: 1880– 1920 (cont’d) • Economies of Scale: The decrease

The Era of Institutionalized Development: 1880– 1920 (cont’d) • Economies of Scale: The decrease in unit manufacturing cost that is due to mass production. • Economies of Scope: an economic theory stating that the average total cost of production decreases as a result of increasing the number of different goods produced. Economies of scope became common after the creation of Thomas E. Wilson Company in 1913.

Extremes Within the Industry: 1899– 1905

Extremes Within the Industry: 1899– 1905

Sporting Goods Industry 1899– 1905 (N = 516)

Sporting Goods Industry 1899– 1905 (N = 516)

The Era of Refinement and Formalization: 1920– 1990 • Increased popularity and diversification of

The Era of Refinement and Formalization: 1920– 1990 • Increased popularity and diversification of sport interests have increased market size. • Industry profitability has fluctuated through turbulent periods. • Government policies have also influenced sport marketing. • Technological changes have influenced both how and from what materials sporting goods are made. • Economies of scale have been made possible by new materials and new manufacturing techniques, new and more economic forms of transportation, and new and more effective forms of communication

Chapter 2 Questions 1. Identify three ways in which sport marketers contributed to a

Chapter 2 Questions 1. Identify three ways in which sport marketers contributed to a growing sport market between 1820 and 1880. 2. What problems did Fuller encounter when attempting to market boxing in the early 1820 s? 3. Were advertisements used to market the game of baseball in the 1860 s significantly different from the modern advertisements used to market baseball?

Chapter 2 Questions (cont’d) 4. List 10 characteristics associated with the Era of Institutionalized

Chapter 2 Questions (cont’d) 4. List 10 characteristics associated with the Era of Institutionalized Development and elaborate on their significance. 5. By what year did most all medium and large sporting goods companies have their own sales force? 6. During what stage of the product life cycle does the sporting goods industry occupy between 1880 and 1920? Defend your answer.

Chapter 2 Questions (cont’d) 7. Elaborate on the contribution the railroad, telegraph, and telephone

Chapter 2 Questions (cont’d) 7. Elaborate on the contribution the railroad, telegraph, and telephone provided to sport marketing. 8. Elaborate on the impact of technology during the Era of Institutional Development. 9. How does a competitor’s advertising help to sell sport? Elaborate. 10. Elaborate on how both economies of scale and economies of scope can facilitate marketing efforts.

Chapter 2 Questions (cont’d) 11. How did vertical integration facilitate Spalding’s marketing efforts? 12.

Chapter 2 Questions (cont’d) 11. How did vertical integration facilitate Spalding’s marketing efforts? 12. Identify the five reasons attributed to Spalding’s success in the 1920 s. Why were these factors important to Spalding’s success? 13. Spalding has a significant learning curve advantage. Explain.

Chapter 3 The Global Market for the Sport Industry

Chapter 3 The Global Market for the Sport Industry

The Four Steps in the US Customs Process 1. 2. 3. 4. Filing of

The Four Steps in the US Customs Process 1. 2. 3. 4. Filing of the appropriate entry documents Inspection and classification of the goods Preliminary declaration of value Final determination of duty and payment The easiest and least complicated avenue available for entering international markets is exporting.

International Economics and Finance Managers should look for banking institutions that can 1. Move

International Economics and Finance Managers should look for banking institutions that can 1. Move money from banks in one country to banks in another through wire transfer. 2. Handle export financing through personnel in their internal department. 3. Arrange for collections and payments in various currencies. 4. Process foreign currency through exchange conversion at the lowest possible rate. 5. Issue and process letters of credit to guarantee payments and collections from clients.

International Economics and Finance (cont’d) To avoid a common sport marketer’s nightmare, don’t take

International Economics and Finance (cont’d) To avoid a common sport marketer’s nightmare, don’t take foreign currency in payment for an account and consider using countertrade agreements. Tuller (1991) recommends the following guidelines for using the global banking system: 1. The education process—Get up to speed in internal finance as soon as possible. Take a college course in international finance. Spend some time with the head of the international department of a regional bank.

Tuller’s Guidelines (cont’d) 2. Read, read—The fastest way to learn about global banking and

Tuller’s Guidelines (cont’d) 2. Read, read—The fastest way to learn about global banking and develop global financial mentality is to read everything available on the subject. 3. Choosing a commercial bank—Determine which local bank has an international department. Interview the department manager. 4. Experiment—Open a foreign bank account. Transfer small amounts back and forth. Incorporate exchange rate variances in forecasts —even if you have to use fictitious entries. 5. Conquer the “big boy” syndrome—The more a person investigates global banking the more one realizes it is not just for the “big boys. ” (p. 221)

Trade Regulations Trade regulations often affect sports organizations: • In 1994, the United States,

Trade Regulations Trade regulations often affect sports organizations: • In 1994, the United States, Mexico, and Canada entered into the North American Free Trade Agreement (NAFTA), which reduced and eliminated many previously imposed tariffs. • Free-trade agreements also affect sport-related corporations in terms of liability costs, discouraging them from relocating to foreign countries for cheaper labor. • The formation and liberalization that took place with the European Union (EU) in 1992 also brought many challenges and opportunities in sport.

Trade Regulations (cont’d) Concerns for sport organizations: • the free movement of labor -

Trade Regulations (cont’d) Concerns for sport organizations: • the free movement of labor - Both the Single Europe Act of 1986 and Article 48 of the 1957 Treaty of Rome stated that residents of member States have the right to work and live in other member States and that a free movement of goods, services, persons, and capital must be ensured. • sports equipment -e. g. , safety codes differ between countries

International Marketing Structure • The structure of international marketing in contrast to that of

International Marketing Structure • The structure of international marketing in contrast to that of domestic sport enterprises contains more similarities than differences. • Probably the most difficult aspect of foreign trade is customs. If you are dealing in sports goods and products, successfully negotiating the customs system is key to your success. • Another difference in international marketing is that in many countries, government owned business can compete with privately held companies.

The Global Sports Structure • A precursor to involvement in international sport management is

The Global Sports Structure • A precursor to involvement in international sport management is a thorough understanding of the global sport environment. • Each specific sport is governed by an international federation for that sport. • These federations work very closely with the IOC in staging the Olympics, but have as their main purpose setting rules and regulations for their sports and conducting the world championships in their sport on a yearly basis.

Global Market Selection and Identification Japan and Asia • With the endless debate over

Global Market Selection and Identification Japan and Asia • With the endless debate over Japan’s high tariffs, complex system of distribution and sales, and governmental reluctance to encourage foreign business activity, sport marketers have not generally been successful. • Asia, as a geographic and social region, is extremely diverse. Social and political conditions affecting sport vary considerably from predominantly Muslim nations such as Malaysia to the socialist ideology in the People’s Republic of China.

Eastern and Western Europe • The dynamic changes with the formation of the European

Eastern and Western Europe • The dynamic changes with the formation of the European Union have in some ways helped sport marketers and in other ways hindered their success. • Eastern Europe, on the other hand, may provide more opportunities. With pent-up consumer demand a reduction of government controls, sport purchasing and sponsorship avenues may proliferate. However, some of the problems that sport marketers will encounter include the lack of hard currency and unstable governments.

The Caribbean and Central and South America Sport marketers can take advantage of special

The Caribbean and Central and South America Sport marketers can take advantage of special conditions in the Caribbean, including tax breaks and the reduction of import duties. Why? • In 1983 the US government passed a law that made trade with the Caribbean nations both more accessible and more lucrative: the Caribbean Basin Initiative (CBI). Central America has many free trade possibilities, and manufacturing potential exists in the sports goods industry. However, sport marketers are encouraged to evaluate each opportunity on an individual basis to decide if such decisions are ethical.

Africa Sports activities in North Africa are, in line with traditional Muslim view, predominantly

Africa Sports activities in North Africa are, in line with traditional Muslim view, predominantly male and rooted in tradition. For American sport managers to conduct business here demands an understanding of the culture and the emphasis on sport. West Africa is entering an era in which sport market development is possible. Of specific importance will be sport equipment and supplies as well as sport services in coaching and sport management. In South Africa, enough wealth exists for any multinational corporation to flourish.

International Sport Marketing Personnel It is imperative that personnel be educated for cultural sensitivity

International Sport Marketing Personnel It is imperative that personnel be educated for cultural sensitivity prior to their involvement in international affairs. Review and understand the following issues about your host nation before traveling and dealing with international executives. • Touching • Relationships between males and females • Drinking • Gifts • Time and schedules • Business etiquette

Specifics of International Sport Marketing The expansion of professional and amateur sports internationally has

Specifics of International Sport Marketing The expansion of professional and amateur sports internationally has been well recognized in the sportmarketing arena. One of the first sport organizations to recognize the global demand for its product was the NBA. The sport of soccer (football, in the international community) is the most popular sport on television across the globe, and many US companies, like Nike and Adidas, have been very successful with their sponsorships. It is important to remember that the United States has an aging population, yet in much of the developing world, the population is considerably younger and becoming even younger.

Trends for the Future Companies that can communicate their concern for global problems through

Trends for the Future Companies that can communicate their concern for global problems through the delivery of the sport products and services will be more highly valued than will those who ignore this social component.

Chapter 3 Questions 1. Diagram the relationship of the International Olympic Committee to a

Chapter 3 Questions 1. Diagram the relationship of the International Olympic Committee to a specific International Federation. Include a discussion of how each functions with the United States Olympic Committee and a national governing body in the United States. 2. What are the keys to successful banking in international sport marketing? 3. How does marketing a sport product internationally differ from marketing the same product in the United States?

Learning Activities 1. Investigate opening a Swiss bank account. It could be a lot

Learning Activities 1. Investigate opening a Swiss bank account. It could be a lot of fun and a great conversation topic among friends. 2. How would you handle the following situation? You had just completed a consulting project negotiating sponsorship deals for the Lithuanian National Basketball team and were due to be paid $10, 000 in US dollars. At the last minute, you were informed that they could pay you only in the local currency. What is that currency? How much of it would you get? Would you accept payment in that form, and if not, what would be an alternative?

Chapter 4 Sport Marketing Theory

Chapter 4 Sport Marketing Theory

Sport Marketing Defined n The process of designing and implementing activities for the production,

Sport Marketing Defined n The process of designing and implementing activities for the production, pricing, promotion, and distribution of a sport or sport business product to satisfy the needs or desires of consumers and to achieve the company’s objectives.

Marketing Defined n Marketing is the study of people and what they buy, how

Marketing Defined n Marketing is the study of people and what they buy, how much they will pay, where they want to purchase a product, and how they are affected by promotional tactics and messages. n The sport marketer must be able to recognize and analyze a business’s environments, determine their effects, and make strategic decisions that will enhance the success of the sport business.

Marketing Defined (cont’d) The marketing orientation, or concept, is a philosophy concerning the way

Marketing Defined (cont’d) The marketing orientation, or concept, is a philosophy concerning the way a company should be managed. It consists of three requirements (Cravens and Woodruff, 1983): 1. Examine people’s needs and wants as the basis of deciding what the business (or economy) will do. 2. Select the best way to meet the consumer’s needs that are targeted by the firm. 3. Achieve the organization’s performance objectives by meeting the consumers’ needs satisfactorily.

Sport Marketing Fundamentals & Theory The two different concepts of sport marketing being used

Sport Marketing Fundamentals & Theory The two different concepts of sport marketing being used today.

Applying Sport Sociology Yiannakis suggests that sport sociology could make significant contributions to sport

Applying Sport Sociology Yiannakis suggests that sport sociology could make significant contributions to sport marketing and management in the following ways: 1. Conceptualization, design, and implementation of good market research; 2. Instrument development; 3. Interpretation of the findings by grounding both a priori and post hoc explanations in existing knowledge bases; 4. Advertising effectiveness by providing essential information bases, especially in the area of lifestyle characteristics; 5. Development of a general marketing information base (target market characteristics); 6. Exploration and identification of new markets; and 7. Introduction of social science orientation to the enterprise.

Contemporary Sport Marketing Theory

Contemporary Sport Marketing Theory

Sport Marketing Management Model

Sport Marketing Management Model

The Sport Company’s Mission and Objectives Understanding the company’s mission and its current status

The Sport Company’s Mission and Objectives Understanding the company’s mission and its current status enables the sport marketer to make key decisions and formulate strategies. Sport Marketing Research and Analysis An MIS, or Marketing Information System, enables businesses to handle vast amounts of information by collecting, storing, and retrieving it.

Four Cs for the Sport Business to Study n Consumer n Competition n Company

Four Cs for the Sport Business to Study n Consumer n Competition n Company n Climate

The Four Cs: Consumer, Competitor, Company, and Climate Knowledge of your consumers will guide

The Four Cs: Consumer, Competitor, Company, and Climate Knowledge of your consumers will guide you and your sport business in making important decisions about product, price, distribution, and promotion.

The climate and its factors that affect sport marketing strategies

The climate and its factors that affect sport marketing strategies

Climate Sport businesses must be aware of the climate in which they operate. For

Climate Sport businesses must be aware of the climate in which they operate. For example, the corporate practice of establishing plants in foreign countries to take advantage of the relatively low wages has faced heavy criticism by Americans who object to exporting American jobs and to condoning poor and inhumane working conditions in underdeveloped countries. Business practices should not be undertaken without considering their potential effects on other aspects of the business.

Segmenting, Targeting, and Positioning Segmenting, also called segmentation, is differentiating groups of consumers based

Segmenting, Targeting, and Positioning Segmenting, also called segmentation, is differentiating groups of consumers based on unique characteristics. Targeting, also called target marketing, is the selection of consumer segments (also called target markets) for which selective marketing-mix strategies are developed. Positioning is the way a company uses its marketing mix to influence the consumer’s perception of a product.

Sport Marketing Mix Strategies The 4 Ps of Marketing Product Price Place Promotion The

Sport Marketing Mix Strategies The 4 Ps of Marketing Product Price Place Promotion The sport business must study the consumer and the competition in order to move its product into line with current trends, wants, and needs.

Promotional Methods n Direct-mail advertising n Radio and television advertising n Local newspaper or

Promotional Methods n Direct-mail advertising n Radio and television advertising n Local newspaper or nationally circulated n Magazine advertising n Billboards advertising n Special limited-time sales n Special financing A marketer’s message should grab people’s attention, educate or convey a message, and entice people to purchase.

Promotional Methods n Special customer services n Use of specific colors on a product

Promotional Methods n Special customer services n Use of specific colors on a product or its package n Use of a concert in conjunction with a sporting event n Offering a variety of product packages at various prices n Product giveaways during an event

Chapter 4 Questions 1. What is theory? 2. What is marketing? 3. What is

Chapter 4 Questions 1. What is theory? 2. What is marketing? 3. What is sport marketing? 4. What is sport marketing theory? What fields of study serve as the foundation of sport marketing fundamentals and theory? What are some of the areas of research in sport marketing?

Chapter 4 Questions (cont’d) 5. What is the sport marketing management model? What are

Chapter 4 Questions (cont’d) 5. What is the sport marketing management model? What are the components of the model? Define and describe each one. 6. What are the research journals for the field of sport marketing? 7. What are the different climates within which a sport business exists? Describe each one and how it affects the business.

Learning Activities 1. (a) Select a list of people who work in the sport

Learning Activities 1. (a) Select a list of people who work in the sport industry in different types of sport businesses across the United States. Interview them about sport marketing at their company. Ask them what their theory of sport marketing is. (b) Now do the same with college professors of sport marketing. Interview them about teaching sport marketing. Ask them what their theory of sport marketing is. (c) Compare and analyze your results. Give a presentation in class.

Learning Activities (cont’d) 2. Go to the university library and check out textbooks in

Learning Activities (cont’d) 2. Go to the university library and check out textbooks in marketing. Look for the definitions, fundamentals, and theory of marketing. Compare these to the definition, fundamentals, and theory of sport marketing in this book. Analyze your results. Give a presentation in class. 3. Take this book to some people who work in the industry. Ask them to look at the sport marketing management model and to tell you if it matches the marketing activities they perform (or someone performs) in the company. Compile their answers. Give a presentation in class.

Chapter 5 Sport Marketing Research

Chapter 5 Sport Marketing Research

Sport Marketing Research Defined The process of planning, collecting, and analyzing data to (1)

Sport Marketing Research Defined The process of planning, collecting, and analyzing data to (1) gain relevant information needed or solves a problem to inform decision in the sport business; and, (2) to enhance the body of knowledge in sport marketing as a field of study.

Sport Marketing Research Continuum

Sport Marketing Research Continuum

Purposes of Sport Marketing Research The American Marketing Association’s (AMA) definition of marketing states

Purposes of Sport Marketing Research The American Marketing Association’s (AMA) definition of marketing states that marketing research links the consumer, customer, and public to the marketer through information—information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process. Marketing research specifies the information required to address these issues; designs the methods for collecting information; manages and implements the data collection process; analyzes the results; and communicates the findings and their implications. (“New Marketing, ” 1987, p. 1).

To Form a Link Between the Consumer in the Sport Industry and the Sport

To Form a Link Between the Consumer in the Sport Industry and the Sport Company One way to use the increased availability of media to the consumer is to create a media package that offers a variety of ways to access the information and then cross-promote and sell all the parts. The company must know and understand what the consumer needs or desires in order to create products that will meet those needs and desires. To know the consumer requires research and constant monitoring. To do this research, the company must have contact with the consumer.

To Identify and Define Marketing Opportunities, Problems, and Threats A marketing opportunity is a

To Identify and Define Marketing Opportunities, Problems, and Threats A marketing opportunity is a chance for a sport company to capitalize on something that will most likely be positive for the company. A marketing problem occurs when something is not quite right in the company. A marketing threat occurs when something will most likely have a negative effect on the sport company.

To Generate, Refine, Evaluate, and Monitor Marketing Actions Marketing actions include such actions as

To Generate, Refine, Evaluate, and Monitor Marketing Actions Marketing actions include such actions as determining the company’s products and all of their characteristics, determining pricing strategies, developing promotional methods, and deciding on distribution.

To Market: A New Era in Sponsorship Marketing It is no secret that the

To Market: A New Era in Sponsorship Marketing It is no secret that the average spectator of many professional sports is being squeezed out of the prime seating areas of the sports venue. But who would have predicted that spectators would cease to be the prime target of sponsorship advertising? A growing trend in some professional sports, where sponsorship is a form of advertising, is business-to-business sponsors (Owens, 1999).

To Monitor Marketing Performance Every sport business must determine if its marketing efforts are

To Monitor Marketing Performance Every sport business must determine if its marketing efforts are performing according to the established goals. The sport marketing professional can use brand-awareness research tools to determine if consumers are aware of and recognize the company’s brand.

To Improve Understanding of Marketing as a Process 9 Studies on Sport Sponsorship Consumer

To Improve Understanding of Marketing as a Process 9 Studies on Sport Sponsorship Consumer classification data and sponsorship effect that were measured in the nine papers. 1. Sponsored property consumer profile 2. Exposure • amount of exposure 3. Effects on consumer • on awareness • on image/attitude towards the company • on behavior 4. Multimedia effects

To Analyze and Understand the Sport Company, Its Industry, and Its Competition Try to

To Analyze and Understand the Sport Company, Its Industry, and Its Competition Try to answer the following questions by analyzing the information from the various positions: • If you are a sporting goods retailer, how would you view this information in relation to your specific business? • If you are a soccer ball manufacturer’s sales representative, how do you think this information would affect your product and company? • If you work for a computer company and you are head of a team to seek sports activities events for sponsorship possibilities, how would you use this information?

Questions for the Sport Marketer

Questions for the Sport Marketer

Basic Process for Sport Marketing Research Design

Basic Process for Sport Marketing Research Design

A Basic Process for Designing Research (cont’d) Step 1: Define the Objective or Problem

A Basic Process for Designing Research (cont’d) Step 1: Define the Objective or Problem Step 2: Locate Existing Relevant Data Determine the Kind of Information Needed: Primary sources are those sources from which information is gathered directly. Secondary sources are sources that contain information that someone else compiled and reported, published, or collected.

A Basic Process for Designing Research (cont’d) Step 3: Determine the Research Design •

A Basic Process for Designing Research (cont’d) Step 3: Determine the Research Design • Reliability is a measure of the level of consistency of the • • method. Validity is a measure of the level of correctness of the method. Types of research: basic, applied, survey, observation, scientific A random sample is a way to select the members of a sample so that every member of the population has an equal chance of being selected. A convenience sample comes from using respondents who are convenient, or readily available/accessible to the researcher.

A Basic Process for Designing Research (cont’d) Step 4: Conduct the Study Step 5:

A Basic Process for Designing Research (cont’d) Step 4: Conduct the Study Step 5: Analyze the Data Make use of fresh perspectives by asking for input on the data you collect from other people in the business. Step 6: Determine How to Use the New Knowledge

Chapter 5 Questions 1. What is sport marketing research? Why is it important? 2.

Chapter 5 Questions 1. What is sport marketing research? Why is it important? 2. What are the purposes of sport marketing research? 3. List and describe some types of sport marketing research. 4. What are the sources of information? Give examples of each. 5. What are the primary areas of sport marketing research? Give examples of each.

Learning Activities 1. Interview people in a variety of sport businesses, organizations, or other

Learning Activities 1. Interview people in a variety of sport businesses, organizations, or other enterprises in your city or community and ask them what kind of marketing research they conduct and why. 2. Identify at least 10 different places you could obtain existing information in your city or community. Go to the places and research the types of information available at these places. Create a notebook of these resources and save this material for the future.

Learning Activities (cont’d) 3. With a group of other students, and with the supervision

Learning Activities (cont’d) 3. With a group of other students, and with the supervision of your instructor, develop a research study to determine sponsorship recognition (see appendix F). Conduct the study during a local sports event. Analyze the results and present your analysis to the class. 4. See appendix F. With the supervision of your instructor, design a study using one of the examples of surveys, conduct the study, analyze the results, determine how the information can be used by the sport business, and share the results with the class and the business.