Sports Marketing Ch’s 1, 2, 4, 5

Agent
Intermediary whose primary responsibility is leveraging athletes worth or determining their bargaining power
Amateur Sporting Event
Sporting competition for athletes who do not receive compensation for playing the sport (College & Prep athletics)
Benefits
The goods or services consumers derive from a product
Exchange
a marketing transaction in which the buyer gives something of value to the seller in return for goods and services
Goods
Tangible, physical products that offer benefits to consumers
Licensing
a contractual agreement whereby a company may use another company’s trademark in exchange for a royalty or fee; also, a practice whereby a sports marketer contracts with other companies to use a brand name, logo, symbol, or characters
Marketing Myopia
the practice of defining a business in terms of goods and services rather than in terms of the benefits sought by customers
Marketing Orientation
understanding consumers’ wantes and needs and providing a product that meets those needs while achieving the organization’s objectives
Organized Sporting Events
sporting competitions that are sanctioned and controlled by an authority such as a league, association, or sanctioning body
Participants
those who take part in a sport
Personal Training
products that are produced to benefit participants in sports at all levels, including fitness centers, health services, sports camps, and instructions
Professional Sports
sporting competitions in which athletes receive compensation, commonly classified as major or minor league status
Producers and Intermediaries
the manufacturers of sports products or the organizations that perform some function in the marketing of sports products

ex. sports labor, sanctioning bodies, sponsors, media, agents, equipment manufacturers

Services
intangible, nonphysical products that offer benefits to customers
Simplified Model of the Consumer-Supplier Relationship
A model of the sports industry consisting of three major elements:
1) Consumers
2) Products
3) Producers/Intermediaries
Spectators
consumers who derive benefit from observing a sporting event
Sport
a physical activity or entertainment
Sporting Event
the primary product of the sports industry – the competition
Sporting Goods
tangible products that are manufactured, distributed, and marketed within the sports industry

Four segments = equipment, transportation, apparel, and footware

Sports Equipment Manufacturers
responsible for producing and sometimes marketing the sports equipment used by consumers
Sports Information
News, statistics, schedules, and stories about sports

ex. newspapers, internet, magazines, radio, etc.

Sports Marketing
applying marketing principles and processes to sports products and nonsports products associated with sports
Sports Marketing Mix
the coordinated set of product and service strategies, pricing decisions, and distribution issues that sports organizations use to meet marketing objectives and satisfy consumers’ needs
Sports Product
a good, a service, or any combination of the two designed to provide benefits to a sports spectator, participant, or sponsor
Sports Product Map
the intersection of the dimensions of goods-services and body-mind
Sports Sponsorship
exchanging money or product for the right to associate a name or product with a sporting event
Strategic Sports Marketing Process
the process of planning, implementing, and controlling marketing efforts to meet organizational goals and satisfy consumers’ needs
Unorganized Sports
The sporting activities people engage in that are not sanctioned or controlled by some external authority
Competition
the attempt all organizations make to serve similar customers; also, a threat that is thought to be reduced by sponsorship

external contingency

Competency Framework for Strategic Sports Marketing
A model predicting and strategically aligning the marketing process with with internal and external contingencies
Control Phase
the phase of the strategic sports marketing process of evaluating the response to plans to determine their effectiveness. Includes sales analysis, profitability analysis, customer satisfaction, and marketing audit
Cultural Values
widely held beliefs that affirm what is desirable by members of a society
Culture
the set of learned values, beliefs, language, traditions, and symbols shared by members of a society and passed down from generation to generation

internal contingency

Demographic Environment
population trends such as total number of consumers, age, ethnic background, geographic dispersion, and so on
Direct Competition
competition between sellers producing similar products and services
Economic Activity
the flow of goods and services between producers and consumers
Environmental Scanning
a firm’s attempt to continually acquire information on events occurring outside the organization so it can identify and interpret potential trends.
External Contingencies
all influences outside the organization that can affect its strategic marketing process

ex. competition, legal/political, demographics, technology, culture, physical environment, economy

Goal
a short term purpose that is measurable and challenging, yet attainable and time specific
Implementation Phase
phase of the strategic sports marketing process of deciding who will carry out the plans, when the plans will be executing, and how the plans will be executed
Indirect Competition
sports marketers’ competition with all other forms of entertainment for the consumers’ dollar
Internal Contingencies
all influences within the organization that can affect its strategic marketing process

Vision, Mission, Objectives & Goals, strategy, and culture.

Macroeconomic Elements
the big picture, such as the national income
Market Selection Decisions
decisions made to segment markets, choose targeted consumers, and position the sports product against the competition. These decisions that dictate the direction of the marketing mix
Marketing Environment
the competitive forces to be assessed in the strategic sports marketing process
Marketing Mix
integrating sports products, pricing, promotion, and place to meet identified sport consumer needs
Microeconomic Elements
smaller elements of the big picture, such as consumer income level
Objectives
the long range purposes of the organization that are not quantified or limited to a time period

internal contingency

Organizational Culture
the shared values and assumptions of organizational members that shape an identity and establish preferred behaviors
Organizational Strategies
the means by which the organization achieves its objectives and marketing goals
Physical Environment
natural resources and other characteristics of the natural world that have an impact on sports marketing

external contingency

Planning Phase
phase of the strategic sports marketing process of understanding sports consumers through marketing research and identifying their wants and needs

Includes market selection decisions, segmentation, positioning, marketing mix decision (4 P’s)

Political, Legal, and Regulatory Environment
legal and political issues that affect sports and sports marketing

external contingencies

Strategic Windows
Limited periods of time during which the characteristics of a market and the competencies of a firm fit together and reduce the risks of a market opportunity
Technology
a rapidly changing environmental influence on sports marketing; it can have an indirect or direct influence on pricing decisions

external contingency

Vision
an organization’s long term road map that creates its purpose and identity

internal contingency

Affective component
the part of attitude based on feelings or emotional reactions
antecedent states
temporary physiological and mood states that a sports consumer brings to the participant situation
attitudes
learned thoughts, feelings, and behaviors toward a given object
Behavioral Component
the part of attitude based on actions
behavioral learning
concerned with how various stimuli elicit certain responses (feelings or behaviors) within an individual
cognitive component
the part of attitude concerned with beliefs
cognitive dissonance
experiencing doubts or anxiety about the wisdom of a decision
cognitive learning
concerned with the ability to solve problems and use observation as a form of learning
consumer socialization
learning the skills, knowledge, and attitudes necessary to be a consumer
culture
the set of learned values, beliefs language, traditions, and symbols shared by members of a society and passed down from generation to generation

external contingency

decision-making process
1) problem recognition
2) information search
3) evaluation of alternatives
4) participation
5) post participation evaluation
esteem
according to Maslow, the need for recognition and status
evaluation of alternatives
considering and judging the acceptability of a range of criteria
evaluative criteria
the features and characteristics that a decision maker looks for.
evoked set
alternatives given the greatest consideration by a decision maker
experiential source
an external information source
extensive problem solving
comprehensive information search and evaluation of many alternatives on many attributes (extended problem solving)
external sources
A personal, marketing, or experiential source of information
family influence
the influence of family members on decisions
habitual problem solving
limited information search and evaluation of alternatives; a decision becomes a habit or routine. (routinized problem solving)
information search
seeking relevant information to resolve a problem
internal sources
information recalled from memory, based on previous experience
learning
a relatively permanent change in response tendency due to the effects of experience.
limited problem solving
internal and sometimes limited external information search and evaluation of a small number of alternatives on few criteria
love and belonging
according to Maslow, the social need to be a respected part of the group
marketing sources
information from advertisements, sales personnel, brochures, web sites, and so on
Maslow’s hierarchy of needs
a theory of human motivation based on classification of needs.
1) Physiological
2) Safety
3) Love/Belonging
4) Esteem
5) Self Actualization
model of participant consumption behavior
model that tries to understand how consumers arrive at their decisions
motivation
an internal force that directs behavior toward the fulfillment of needs
participant consumption behavior
actions performed when searching for, participating in, and evaluating the activities believed to satisfy needs
perceived risk
the potential threats inherent in making the wrong decision
perception
the complex process of selecting, organizing, and interpreting stimuli
personality
the set of consistent responses an individual makes to the environment
personal sources
information from friends and family
physical surroundings
the location, weather, and physical aspects of the participation environment
physiological needs
according to Maslow, the bilogical needs to eat, drink, and meet other physiological needs, such as have some level of physical activity
postparticipation evaluation
evaluation of a decision after making it and participation has begun
primary reference group
those people, such as friends and coworkers, who have frequent contact with us and have the power to influence our decisions
problem recognition
the result of a discrepancy between a desired state and an actual state important enough to activate the decision making process
psychological or internal factors
basica factors such as personality, motivation, learning, and perception that are unique to each individual and guide decision making
Reference groups
individuals who influence the information, attitudes, and behaviors of other group members
safety needs
according to Maslow, the need to be physically safe and to remain healthy
selective attention
A consumer’s focus on a specific marketing stimulus based on personal needs and attitudes
selective interpretation
consumers perceive things in ways that are consistent with their existing attitudes and values
selective retention
the tendency to remember only certain information
self actualization
according to Maslow, the individual’s need to fulfill personal life goals
situational factors
factors that may affect a consumer’s acceptable range of prices: presence or absence of time, usage situation, and social factors
social class
the homogeneous division of people in a society sharing similar values, lifestyles, and behaviors that can be hierarchically categorized
social learning
watching others and learning from their actions
socializing agents
direct and indirect influences on children
social surroundings
the effect of others on a participant during participation in an event
sociological or external factors
influences outside an individual that affect the decision making process. Culture, reference groups, family, social class
sports involvement
the perceived interest in and personal importance of sports to an individual participating in a sport
task definition
the reasons that occasion the need to participate in a sport, which affect the decision-making process
time
a situational influence on the decision making process
values
Widely held beliefs that affirm what is desirable in a culture
aesthetic value
one of Wann’s 8 basic motives for watching sport: to appreciate the beauty of the performance and the pleasure of the art form
demographic factors
variables such as population, age, gender, education, occupation, ethnic background

external contingency

diversion from everyday life
one of Wann’s 8 basic motives for watching sport: to “get away from it all”
economic factors
controllable (such as the price of tickets) and uncontrollable (such as average income) factors that affect game attendence
economic value
one of Wann’s 8 basic motives for watching sport: the potential for economic gains from gambling on sporting events
entertainment value
one of Wann’s 8 Basic motives for watching sports: sports as a form of entertainment
eustress
one of Wann’s 8 basic motives for watching sport: because it is enjoyable and exciting to the senses
facility aesthetics
the exterior and interior appearance of a stadium, which can play a role in fan satisfaction
family ties
one of Wann’s 8 basic motives for watching sport: to foster family togetherness
fan identification
the personal commitment and emotional involvement customers have with a sports organization
fan motivation factors
reasons why individuals are sports fans or sports consumers.

Self esteem enhancement, diversion from everyday life, entertainment value, eustress, economic value, aesthetic value, need for affiliation, family ties

game attractiveness
a situational factor that varies from game to game; its perceived quality based on the skill level of participants.
layout accessibility
referring to whether spectators can move freely about a stadium

(Space allocation, signage)

need for affiliation
fans need to feel connected to the community and to identify with a team
scoreboard quality
a dimension of the stadium that is sometimes seen as the focal point of the interior
seating comfort
perceived comfort of the seating and the spacing of the seats relative to each other in the stadium
self esteem enhancement
one of Wann’s 8 basic motives for watching a sport: to enhance or maintain self-esteem through associating with a winning team
signage
a factor of the sportscape that affects spectators’ enjoyment of the game experience
space allocation
a factor of the sportscape that affects spectators enjoyment of the game experience
sport involvement
the perceived interest in and personal importance of sports to an individual participating in a sport
sportscape
the physical surroundings of the stadium that affect spectators’ desire to stay at the stadium and return to the stadium to watch future games

(space allocation, signage, stadium access, facility aesthetics, scoreboard quality, layout accessibility)

stadium access
issues such as availability of parking, ease of entering and exiting the parking areas, and location of parking relative to the stadium
stadium factors
variables such as newness of the stadium, stadium access, aesthetics of the stadium, seating comfort, and cleanliness of the stadium, which are all positively related to game attendence
Wann’s 8 Basic Motives for Watching Sport
1) Self Esteem Enhancement
2) Diversion from everyday life
3) entertainment value
4) eustress
5) economic value
6) aesthetic value
7) need for affiliation
8) family ties
Community Solidarity
sport enhances the image of the community, enhances community harmony, generates a sense of belonging, and helps people to feel proud
Public Behavior
sport encourages sportsmanship, reinforces positive citizenship, encourages obedience to authority, and nurtures positive morality
Pastime Ecstasy
sport provides entertainment and brings excitement
Excellence Pursuit
sport encourages achievement and success, hard work, and risk taking
Social Equity
sport increases racial and class equality and promotes gender equity
Health Awareness
sport eliminates drug abuse, encourages exercise, and promotes an active lifestyl
Individual Quality
sport promotes character building and encourages competitive traits
Business Opportunity
sport increases community commercial activities, attracts tourists, and helps community economic development
Eight Value Dimensions of Sport to the Community
1) Community Solidarity
2) Public Behavior
3) Pastime Ecstasy
4) Excellence Pursuit
5) Social Equity
6) Health Awareness
7) Individual Quality
8) Business Opportunity
Consumers of the Simplified Model of the Consumer-Supplier Relationship in the Sports Industry
Spectators, Participants, Corporations
Products of the Simplified Model of the Consumer-Supplier Relationship in the Sports Industry
Events, Sporting Goods, Personal Training, Sports Information
Sports Marketing Exchange Process
Must involve two or more people and you must exchange something of value, must have a means of communication, free to accept or decline the offer, and each believe it is desirable to deal with the other party
Contingency Framework for Strategic Sports Marketing
Made up of 3 parts:
1) Strategic Sports Marketing Process
2) Internal Contingencies
3) External Contingencies
Environmental Contingencies
Competition, Technology, Culture/Social Trends, Physical Environment, Regulatory/Legal/Political, demographic trends, economy
Conceptual Model of Consumer Behavior
Evaluates Needs/Desires, decision making, and past experience.
Decision Making Process
Problem Recognition, Information search, alternative evaluation, participate, post-participation evaluation
Internal Needs/Desires
Personality, perception, attitudes, motivation, learning
Factors Influencing Attendance
Fan motivation, game attractiveness, economic, competitive, demographic, stadium, value to the community, sports involvement, fan identification
Economic Factor
The least motivating fan factor
Entertainment
The most motivating fan factor
Trademark Violations
One major issue when discussing licensing is…
Provides a structure for the complexities of the sports industry. Entire sports industry can be labled with this model
Simplified model of the consumer supplier relationship in the sports industry
Participants can come in two forms
Unorganized & Organized
Internal Contingencies
What are the influences within the organization that affect the strategic marketing process
Segmentation Bases
Demographic, geographic, psycho-graphic, benefits, geodemographic, behavioral
Segmentation
grouping consumers together with common needs
Sizable, measureable, reachable, demonstrate behavioral varioation
Successful Targets must be
Product Characteristics
Total Product = Branding, product quality, product design
Attendance Figures, Media Coverage, Employment Figures, Global Markets
How do we measure Growth in the sports industry?
Marketing Orientation
understanding the consumer and providing a sports product that meets consumer need while achieving organizational objectives