Chapter 8 Marketing the Facility and Events

Chapter Objectives 1.Clearly understand the elements of a marketing plan 2.Recognize the importance of a well- developed marketing strategy and plan 3.Develop an integrated marketing communications plan 4.Realize the importance of knowing and building a relationship with the consumer 5.Identify how the unique marketing elements can influence an event

Introduction Organizations, including sport events and facilities, need customers to survive. To attract and retain those customers while building demand for a brand, an organization must: Develop a brand that will stick in the mind of the consumer Create awareness about the products and/or services offered Generate a perception in the mind of the consumer that leads to brand equity and loyalty Differentiate the organization and products/services from the competitor

The Uniqueness of Sport Marketing Sport is even more unique than other business fields and industries for a number of reasons as denoted by Mullin, Hardy, and Sutton (2007): – Sport is consumed as it is produced. – Sport is intangible. – Sport is emotional, subjective, and heterogeneous. – Sport is inconsistent and unpredictable. – The core product is uncontrollable. – Sport organizations compete and cooperate simultaneously.

Feasibility To develop a strong marketing strategy and formulate a plan, a facility and/or event must determine what is feasible. A feasibility study provides information for event directors to: – Provide quality information to support decision- making – Identify reasons not to proceed (such as risk, cost, lack of resources, etc.) – Develop a strong marketing strategy and plan, if the event is a “go” – Help establish a vision, mission, and concept for the event – Assist in securing funding or other support

Feasibility Assessments Assessment of market characteristics, geographical location factors, and analysis of financial aspects Breakeven analysis SWOT analysis

Developing the Marketing Strategy and Plan Mission statement: the purpose of the organization (or event) Vision statement: what the organization would like to achieve or accomplish Event goals and objectives Potential product extensions

Segmentation Categorizing consumers into smaller clusters or groups identified by certain characteristics – Demographics: categorize consumers based on age, gender, ethnicity, education, income, socio- economic status, profession, geographic location, religion, type of sport played, and other such identifiers – Psychographics: categorize based on the consumers’ interests, beliefs, and attitudes – Media preference and use – Purchasing behavior

Building the Relationship Customer profile: a description of the customer or set of customer based on their demographic, psychographic, media preferences, and purchasing behavior The profile gives you: – Information needed to further develop relationships – Information needed to further increase spending with existing customers – Uses information gathered from current consumers to attract new customers

Building the Relationship (cont.) In order to build a relationship, organizations require a means to maintain vital information on customers. Data-based marketing (DBM) software: a comprehensive system that captures critical information to enable direct marketing strategies. Customer Relationship Management (CRM) systems provide deeper background information including key relationships, birthdays, and anniversaries, among other info.

Positioning Understanding customer needs and delivering a product that is perceived as more valuable and distinctly different. Differentiating: positioning the product by highlighting the important attributes and benefits. To stand out in a highly cluttered sport marketplace, organizations use a number of strategies.

Price There are a number of philosophies on what constitutes a fair price. Price must cover the cover the cost of the product and the return to the producer to compensate for the risk incurred. Customers equate price to value and quality. Price versus cost.

Place Place refers to: – The location of the sport product (e.g., stadium, park) – Where the product is distributed (e.g., online event registration, event admission sales on-site at the venue) – The geographical location of the target market (e.g., international, national, local) – Other channels that might be relevant to the sport product (e.g., media distribution, availability of the product by season, broadcast)

Promotion Promotion is the most visible aspect of the marketing plan and, in fact, many confuse the two terms Marketing versus promotion Promotional mix is used to: – Communicate the desired message and image about the product – Create awareness and educate the consumer – Persuade the consumer to buy the product

Communicating the Message An emerging way to harness the synergy across various marketing tactics to achieve marketing outcomes is known as integrated marketing communication (IMC). IMC uses a consistent delivery strategy that brand positioning, personality, and key messaging are delivered synergistically across every element of communication.

Digital Marketing Guerrilla and viral marketing tactics have grown in an effort to creatively capture new audiences through innovation and surprise. The objective of guerrilla marketing is to gain large effects at low expenses. Viral marketing uses social networks to increase brand awareness through self-replicating processes.