Sports Marketing Chapters 1, 2, 3

sports marketing
the specific application of marketing principles and processes to sport products and to the marketing of non sports products through association with the sport
sport
a source of diversion or a physical activity engaged in for pleasure
an important way sport differs from another common entertainment
spontaneous entertainment; uncontrolled by the participant and hard to determine
marketing myopia
the practice of defining a business in terms of goods and services rather than in terms of the benefits sought by consumers
marketing orientation
understanding the consumer and providing a sports product that meets the consumers’ needs while achieving the organizations objectives
what 3 distinct types of consumers does the sports industry exist to satisfy?
1. spectators
2. participants
3. sponsors
2 broad ways consumers can become spectators
1. in person
2. via the media
spectators
consumers who derive their benefit from the observation of the event
two broad classifications of sports participants
those that participate in organized sports and those that participate in unorganized sports
types of organized/unorganized sports participants
amateur (youth recreational instructional/elite, schools, intercollegiate)
professional (minor/secondary, major)
sports sponsorships
the consumer (in most cases a business) is exchanging money or a product for the right to associate its name or product with a sporting event
sports product
a good, service, or any combination of the two that is designed to provide benefits to a sports spectator, participant, or sponsor
4 categories of sports products
1. sporting events
2. sporting goods
3. sports training
4. sports information
mind-body continuum
the notion that some sports products benefit consumers’ minds, while other products act on the consumers bodies (body to mind, goods to service)
producers and intermediaries
represents the manufacturers of sports products or the organizations that perform some function in the marketing of sports products
sports marketing mix
the coordinated set of elements that sports organizations use to meet their marketing objectives and satisfy consumer needs (sports product, place, price, promotion)
strategic sports marketing process
process of planning, implementing, and controlling marketing efforts to meet organizational goals and satisfy customers’ needs
2 ways sports marketing anticipate demand
1. conducting market research for information about the consumer
2. monitoring the external environment
how do sports differ from games?
success in sports requires both physical and mental dominance and an internal desire to win, whereas games relay more on mental abilities or chance
what are sports:
hiking, competitive dance, exercise (sports industry), quidditch, lawn mower racing, tough mudder, competitive cheerleading, NASCAR and camping
not a sport:
non competitive cheerleading and dance, video game playing, poker
examples of non sports products
milk, security systems, beer, etc.
structure of the sports industry:
Consumers: spectators, participants

Customers: corporations or business, sponsors, media

Products: events, sporting goods, personal training of sports, sports information, player appearances

Manufactures and machines: owners, sanctioning bodies, corporations or business, agents, equipment manufactures, special interest groups, athletes/players

participant
consumers that derive a benefit from physically participating in an organized or unorganized amateur sport at some level of frequency
customers
corporations, individuals, ad media (both with and without sponsorship agreements) that leverage a sport’s equities to attract that sports’ consumer
sports goods
tangible, physical goods that offer a benefit to the consumer
sports services
intangible, non physical products
sports product map
the mind-body and goods-services continuum
what must those in sports marketing be prepared to face
continually changing environment; the unexpected
contingency framework
framework that is suited to the sports industry because it is flexible and adaptable to positive and negative changes in the marketing environment
why was a marketing plan developed
to avoid impending crisis
what question does the marketing plan ask
what do i do when the unthinkable becomes the unquestionable
systems perspective
assumes an organization does not operate in isolation but interacts with other systems
what does the contingency approach suggest
that no one marketing strategy is more effective than another
external contingency factors
factors outside the organization’s control
internal contingency factors
factors considered to be controllable from the organizations perspective
what is the essence of the contingency approach
trying to predict the strategically align the strategic marketing process with the internal and external contingencies; fit or just fit
SWOT analysis with contingency framework
external contingencies (strengths and weaknesses) and internal contingencies (opportunities and threats)
the three primary components of the contingency process
planning, implementation, and control
steps of the planning phase
step 1: understanding consumers’ needs
step 2: market selection decisions
step 3: organizing
steps of the control phase
sales analysis
profitability analysis
customer satisfaction
marketing audit
segmentation
grouping consumer based on commonalities (demographics, geographics, etc.)
target markets
defining what segments will best satisfy your marketing goals
positioning
how do you fix the sport/product in the minds of the consumer
Environmental Contingencies
competition
technology
cultural/social trends
physical environment
regulatory/legal/political
demographic trends
economy
competition
any organization or body that is serving a similar consumer
direct competition
between sellers of similar products and services
substitute products
programs or products that consumers may choose to use to substitute your product
indirect competition
between sellers that compete for the same share of a consumers disposable income
is it possible for products to switch between competing directly and indirectly at times?
yes
what has changed the way sports marketers communicate information to fan/consumers?
technology
cultural and social trends
shared values, beliefs, languages, symbols, and traditions passed on from generation to generation
what do physical environments define?
sports marketing
what do geographical locations define?
the popular sporting event of that location
is it important for sports marketers to understand political and legal landscapes?
yes, politicians are involved in promoting and deterring passage of stadium tax issues
Gross National Product
measurement of the flow of goods and services between producers and consumers. Directly tied to the four stages of the business cycle
four stages of the business cycle
prosperity, recession, depression, recovery
what does the cycle influence?
unemployment, inflation, and consumers willingness to spend
Micro economy
smaller elements that contribute to the economy such as consumer’s income level or industry specific variables
internal contingencies
organizational vision
organizational mission
organizational objectives & marketing goals
organizational strategy
organizational culture
vision statement
the long term road map of where the organization is headed
organizational mission
written statement about the organization’s present situation and the direction of the organization
organizational objectives
signposts along the road which help and organization focus on its long-range purpose stated in the mission statement
financial dimensions of organizational objectives
growth in revenues ROI and growth in profits
strategic dimensions of organizational objectives include
enhance corporate image and increase customer satisfaction
marketing objectives must be:
measurable, realistic, and challenging