CONTINGENCY FRAMEWORK (应变框架) FOR STRATEGIC SPORTS MARKETING CHAPTER 2 CONTINGENCY FRAMEWORK (应变框架) FOR STRATEGIC SPORTS MARKETING

CHAPTER OBJECTIVES Understand the contingency framework for strategic sports marketing Describe the strategic sports marketing process Describe external contingencies and explain how they affect the strategic sports marketing process Discuss the importance of monitoring external contingencies and environmental scanning Describe the major internal contingencies and explain how they affect the strategic sports marketing process Explain and conduct a SWOT analysis

Overview of the Contingency Framework for Strategic Sports Marketing Foundation(目标) of any sports organization is to design and maintain a sound（合理的） and flexible（灵活的） strategic framework Strategic framework that suited to the sports industry is the contingency framework. Why? Flexible and adaptable to changes in the marketing environment

New York Mets Marketing Vice President, Michael Aronin captures the essence of this idea: “ Before, I had control of the product, I could design it the way I wanted it to be. Here the product changes every day and you’ve got to adapt quickly to these changes.”

Harlem Globetrotters The Harlem Globetrotters are an exhibition basketball team that combines athleticism and comedy.

Contingency approaches The contingency framework includes three major components: the internal contingencies; the external contingencies the strategic sports marketing process.

Contingency Framework for Strategic Sports Marketing Planning 1. Understanding Consumers’ Needs a. Marketing Research(3) b. Consumers asParticipants(5) c. Consumers as Spectators(6) 2. Market Selection Decisions(6) a. Market Segmentation b. Target Markets c. Positioning 3. Marketing Mix Decisions(7-12) a. Sports Products b. Pricing c. Promotion d. Place Implementation(13) Control(13) fit fit EXTERNAL CONTINGENCIES(2) Competition Legal/Political Demographics(人口统计) Technology Culture Physical Environment Economy INTERNAL CONTINGENCIES(3) Organizational Vision（前景） Organizational Mission Organizational Objectives & Marketing Goals Org Strategy Org Culture

The unexpected changes that occur over the course of a season or event may be positive or negative. The changes that occur may be either controllable or uncontrollable events that impact the sports organization. Uncontrollable occurrences are typically in the marketing environment and are referred to as external contingencies, while internal contingencies are within the control of the organization

The heart of the contingency framework is the strategic sports marketing process, which is defined as the process of planning, implementing, and controlling marketing efforts to meet organizational goals and satisfy consumers’ needs. The strategic marketing process has three broad sections: planning, implementation and control.

THE STRATEGIC MARKETING PROCESS A. THE PLANNING PHASE STEP 1: UNDERSTANDING CONSUMERS’ NEEDS 1. Marketing Research 2. Consumers as Participants 3. Consumers as Spectators STEP 2: MARKET SELECTION DECISIONS 1. Segmentation Alternative 2. Target Markets 3. Positioning STEP 3: MARKETING MIX B. THE IMPLEMENTATION PHASE C. THE CONTROL PHASE

planning phase The planning phase has three steps. The planning phase begins with marketing research (Ⅰ) to examine the needs of current and potential markets. case of health club

Ⅱ market selection decisions These include market segmentation, or dividing consumers into homogeneous(相同的) groups based on common characteristics. The similarities among consumers are based on demographics (e.g. age, sex, income,人口统计), psychographics (lifestyle心理学), geographic(where you live), geodemographic (what people look like who live in a similar region，区域人口统计特征 ), benefits (what you want in the sports product), behavior (consumption and usage patterns).. Psychographic (e.g. ,personality and lifestyle)

Once the market is segmented, sports marketers must select the target market(Ⅲ).

Target Market（目标市场） Once the market is segmented, sports marketers must select the target market. The target market is defined as the segment that will allow an organization to most efficiently and effectively reach its marketing objectives.

Market Segmentation: P51 S izeable 大小适当(large enough in terms of the number of consumers) M easurable 可测量(characteristics of the market are easily identifiable, such as gender or geographic region) A ccesible （reachable） 可接近(must have a means of accessing the consumers) I dentifiable （demonstrate）可鉴别(consumers within a market must share common needs, whereas consumers outside the target market behave differently) Runner Market

Position The final market selection decision is positioning. Positioning refers to fixing the sports product in the minds of the target market(在目标市场中确定体育 产品). In other words, how do we want our target market to perceive(察觉) our sports product? What benefits do we want to sell? the case of NBA

Exercise: How is the health and fitness industry segmented, in general Exercise: How is the health and fitness industry segmented, in general? Describe the segmentation, targets, and positioning of health and fitness clubs.

Implementation P58 Organizing 组织 Functional Organization ——carry out by specialized departments 功能型组织 Turbulent environment——flexibility Organization 弹性组织 Leadership and Interaction领导和互动 Resource Acquisition and Allocation 资源的获取与分配 Coordination and Timing of Activities 活动的协调和时间选择 Information Management 信息管理

Leadership and Interaction

Implementation Implementation or the success of implementing plans is based on: how the sports organization is organized, how leaders communicate and motivate the employees, the marketing and financial resources available, and information management.

Control Phase p60 The control phase is the process of measuring results, comparing the results to the marketing objectives and revising(校正) objectives based on the evaluation of the objectives.

Control Phase Sales Analysis Profitability Analysis year-on-year basis ration Sales increase 17% compared with the same period of last year. link relative ratio Sales decrease 17% compared with last month. Customer Satisfaction Marketing Audit

Sample of Marketing Audit （营销审计） Questions p63 ⅠMarket Orientation 1.Has the firm established a marketing orientation? That is, has the firm identified the benefits that particular customers seek and developed programs based on this input? 2.Is the firm’s main goal to maximize customer satisfication or to get as many customers as possible? Ⅲ Target market strategies 1.Are the members of each product’s target markets homogeneous （均匀的）or heterogeneous with respect to geographic, socio-demographic, and behavioral characteristics? 2.Is the size of each market segment sufficiently large or important to develop a unique marketing mix for it? 3.Are the market segments measurable and accessible? That is, are the market segments accessible to distribution and communication efforts?

EXTERNAL CONTINGENCIES The external contingencies, or uncontrollable factors, which influence the strategic marketing process, include: competition, regulatory and political issues, demographic trends, technology, sociocultural issues and the physical environment.

internal contingencies The internal contingencies, which also impact strategic marketing decisions, include: vision and mission of the organization, marketing goals and organizational objectives, organizational culture and organizational design issues.

Environmental Contingencies Competition Technology Cultural/Social Trends Physical Environment Regulatory/Legal/Political Demographic Trends Economy

The Nature of Competition http://video.sina.com.cn/p/sports/k/v/2013-03-10/132762148007.html Direct competition Substitute (替代） products Indirect competition

PESTEL ANALYSIS MODEL Political（Women） Economy （Prosperity/ Recession/Depression/ Recovery） Social Trends / Cultural （US Tennis Culture） Technology（Internet/ TV） Environment （Climate） Legislative（transfer）

Internal Contingencies Organizational Vision Organizational Mission Organizational Objectives & Marketing Goals Organizational Strategy Organizational Culture

Organizational Vision The vision has been described as a long-term road map of where the organization is headed. The vision should address the following: What business the organization plan to go from here? What business do we want to be in? What customer needs do we want to satisfy? What capabilities are required for the future?

Organizational Mission The mission, however, is a written statement about the organization’s present situation and the direction of the organization (what business we are in and who we serve). The Green Bay Packers’ mission is to be a dominating force in professional football’s competitive arena(P92) On the field, the Packers will continually strive to present their fans with the highest level of performance quality available In their operating activities and relations with the NFL, the Packers will also continually strive for excellence in the quality of work performed Overall, the Packers will commit themselves to doing their part in representing the state of Wisconsin with competitiveness, respect, and dignity

These mission statements address several key questions: What business are we currently in? Who are our current customers? What is the scope of our market? How do we currently meet the needs of our customers?

The Li Ning Corporate Mission & Vision Statements and Core Values 李宁集团公司使命、愿景和核心价值观 Mission（使命） Through sports, we inspire in people the desire and power to make breakthroughs 我们以体育激发人们突破的渴望和力量！ Focus on creating professional sports product Enrich ourselves by the integration of sports into everyday life Strive for higher-standard breakthroughs

Vision（愿景） The world’s leading brand in the sports goods industry Our interim objective before 2008: fortify our globalization competitiveness in the China market By 2018: become one of the world’s top five brands. Derive 20% up of company revenues from international markets Become a management company of sports brands, utilizing different brands to cater to different consumers and regions Become a leader in marketing two or more mainstream sports categories

Core Values（核心价值观） Our core values stem from athleticism and passion for the mission 我们的核心价值观源于对运动的崇尚和对事业的激情! The attraction of sports comes not simply from sports as such, but more from its underlying spirit. We value sports, but even more athletic spirit. Integrity 诚信 Professionalism 专业 Passion 激情 Breakthroughs 突破 Trust 信任

ORGANIZATIONAL OBJECTIVES vs. MARKETING GOALS Organizational Objectives - Signposts along the road which help an organization focus on its long-range purpose stated in the mission statement Typically include both financial and strategic dimensions Examples of financial include: growth in revenues and growth in profits Examples of strategic include: enhance corporate image and increase customer satisfaction

Relationship Between Levels of Strategy

Corporate Level Strategy Deflation Expansion/Merge Related business Unrelated diversification

Business Level Strategy Four approaches to gaining the competitive advantage. Low cost leadership Differentiation（区别、分化） Market niche（市场定位） based on lower cost Market niche based on differentiation

如：Marketing, Personnel, Operation, Coaches Functional level Strategy 组织内部各个部门 如：Marketing, Personnel, Operation, Coaches Operation level Strategy 如： Price, product, promotion, place

SWOT Analysis Internal Strengths and Weaknesses a. Resource Capabilities（功能） b. Marketing Mix Considerations External Opportunities and Threats

SWOT分析 ＳＷＯＴ分析的主要目的在于对企业的综合情况 进行客观公正的评价，以识别各种优势、劣势、 机会和威胁因素，有利于开拓思路，正确地制定 企业战略。 ＳＷＯＴ分析是把企业内外环境所形成的机会 （Opportunities），风险（Threats），优势 （Strengths）,劣势（Weaknesses）四个方面的情 况，结合起来进行分析，以寻找制定适应合本企 业实际情况的经营战略和策略的方法。下表列出 的是在SWOT分析中一般所需要考虑的因素。

Homework： Choose a sports related company and do a SWOT analysis. We will choose 5 homework to discuss next week.

Key terms and concepts Contingency framework for strategic sports marketing 战略性体育营销的应变框架 Contingency strategy 不确定性战略 Control phase 控制阶段 External contingencies 外部不确定性 Implementation phase 执行阶段 Internal contingencies 内部不确定性 Market segmentation 市场细分 Market selection decisions 市场选择决策 Market mix decisions 市场组合决策 Positioning 定位 Strategic sports marketing process 战略性体育营销过程 Target marketing 目标营销

Key terms and concepts Competition Cultural values Culture Demographic environment Direct competition Economic activity Environmental scanning Goal Indirect competition Macroeconomic elements Marketing environment microeconomic elements Objectives Organization culture Organization strategies Out-of-market technology Physical environment Political, legal, and regulatory environment Strategic windows Technology Vision