Chapter 2 Strategic Marketing Management

Objectives To identify the key stakeholders in sport marketing Identify who creates the brand perception To know the core elements of market analysis, product concept, and product position To know the distinctions among the six Ps of sport marketing: product, price, place, people, promotion, and public relations (continued)

Marketing Management Strategy Marketing-minded leaders are needed in today’s sport organizations. Strong marketing management strategy requires both strategy (big-picture concepts) and tactics (the details of the plan).

Marketing Planning Process MPP builds a marketing plan but must also integrate with an organization’s overall strategic vision. The planning process comprises five steps. See figure 2.1.

Step 1: Develop Vision, Position, and Purpose Core vision and ideology. Sport organizations must determine or establish core values and ideology before moving forward with strategic marketing efforts. Strategic planning is the process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities (continued)

EXAMPLES Amazon.com We sell books, videos, CDs, toys, consumer electronics and other products online We make the Internet buying experience fast, easy, and enjoyable— we’re the place where you can find and discover anything you want to buy online Disney We run theme parks We create fantasies—a place where dreams come true and America still works the way it’s supposed to Nike We sell athletic shoes and apparel We bring inspiration and innovation to every athlete* in the world (* if you have a body, you are an athlete)

Step 1: Develop Vision, Position, and Purpose (continued) SWOT Analysis Sport organizations must systematically gather and collect data about their consumers, often through DBM and CRM systems. Sport organizations must scan their internal (strengths and weaknesses) and external (opportunities and threats) environments before moving forward with strategic marketing efforts. SWOT analysis will assist sport organizations in analyzing market trends and fads. (continued)

SWOT

Step 1: Develop Vision, Position, and Purpose (continued) After SWOT Analysis Following SWOT analysis, sport organizations must reevaluate their strategies and potentially change direction to ensure alignment between their planning and the environment.

S.W.O.T. ASSIGNMENT Assignment: Student will take a sports company or an Athletic Department and conduct a SWOT analysis and be prepared to discuss and turn in.

Step 2: Develop Strategic Goals and Objectives The development and reassessment of goals and objectives should emanate from ongoing analysis. Clarifying goals and objectives is what sets the manager apart from the caretaker.

Setting Company Objectives and Goals BUSINESS OBJECTIVES MARKET GOALS Build profitable customer relationships Invest in research Improve profits Increase market share Create local partnerships Increase promotion

Step 3: a.Develop a Ticket Marketing, Sales, and Service Plan Tickets and spectator attendance are the trunk of the sport business money tree. Marketing of sport organizations should revolve around generating revenue. At this stage in the planning process, sport marketers must segment the market and determine key targets. (continued)

Step 3: b. Develop a Marketing Mix Plan The escalator concept. Sport marketers are wise to invest more resources in retaining current customers (and growing their affinity) than in attracting new fans. See figure 2.2. (continued)

Recognized and Use of the Five Ps of Marketing The six Ps of (sport) marketing: Product Price Promotion People Public Relations Place

Marketing mix is the set of controllable tactical marketing tools— product, price, place, and promotion—that the firm blends to produce the response it wants in the target market

PRICING Pricing Strategy Importance of: knowing the market elasticity keeping an eye on rivals

PROMOTION Strategies to make the consumer aware of the existence of a product or service NOT just advertising Activity: Student Board

PLACE The means by which products and services get from producer to consumer and where they can be accessed by the consumer The more places to buy the product and the easier it is made to buy it, the better for the business

The Six P’s of Marketing: ASSIGNMENT: The Six P’s of Marketing: Using the six P’s of marketing, students will: Identify a product. Proceed in outlining the plan using the 6 P’s. Be prepared to discuss your plans. Be prepared to turn in your assignment.

Dr. Hamilton’s Example: Book Signing Harriet Kimbro-Hamilton ’75 Book Signing in Nashville on October 24 Dr. Harriet Kimbro-Hamilton, Associate Professor, Sport Administration, will hold a book signing on Saturday, October 24th at 2:00 p.m. The event will take place at Robert Churchwell Museum Magnet School located at 1625 D.B. Todd Boulevard, Nashville, Tennessee. Copies of her book, Daddy’s Scrapbook: Henry Kimbro of the Negro Baseball League, A Daughter’s Perspective will be available for purchase for $14.95 (check or cash). The book is also available on Amazon.

USE OF THE MEDIA FOR PROMOTION

HUNTSVILLE, ALABAMA WITH AAMU AND CHURCH FAMILY A BOOK SIGNING IN HUNTSVILLE, ALABAMA WITH AAMU AND CHURCH FAMILY

www.amazon.com Pricing of the book: $14.95 People: Baseball Fans Negro League Baseball Fans Afro-American History Family, Friends, Fisk University, AAMU, Stillman College, and TSU. Baltimore Orioles and the city of Baltimore, Maryland Negro League Museum in Kansas City, Kansas

BOOK SIGNING WITH SIBLINGS

NEGRO LEAGUE EXHIBIT AND PHOTO OP WITH SKIP NIPPER (baseball author)

People People represent the business: The image they present can be important First contact often human – what is the lasting image they provide to the customer? Extent of training and knowledge of the product/service Mission statement – how relevant? Do staff represent the desired culture of the business?

Processes How do people consume services? What processes do they have to go through to acquire the services? Where do they find the availability of the service? Contact Reminders Registration Subscription Form filling Degree of technology

Product Methods used to improve/differentiate the product and increase sales or target sales more effectively to gain a competitive advantage e.g. Extension strategies Specialised versions New editions Improvements – real or otherwise! Changed packaging Technology, etc.

PUBLIC RELATION Page 315 It is the function of communicating an organization’s message externally. 1. What are the (7) attributes a PR professional must have? 2. What are the (9) skills a PR professional should practice?

Step 4: Integrate the Marketing Plan Into a Broader, Strategic Resource Allocation The marketer must ensure that senior executives will support the plan. Structure follows strategy. Coordinate the five Ps with broad support from the entire organization, top to bottom. Blend the five Ps to build packages valued by the customer.

Step 5: Control and Evaluate Implementation of the Plan Analysis, evaluation, and control should be everyday events. Consumer satisfaction = product benefits − costs.

Consumer satisfaction = product benefits − costs Consumer satisfaction = product benefits − costs. What are the indicators of consumer satisfaction? Evaluation of : LAV ROO ROI ___________________________ IMPORTANT FACTORS FROM THE PANEL: PERCEPTION EMPLOYEE ENGAGEMENT CUSTOMER EXPERIENCE

Other Issues to Consider: Ethical Principles: Florida State University and the Seminoles (class read bottom of page 50-51. Social Responsibilities: a. labor laws b. sport laws c. criminal laws