The Special Nature of Sport Marketing

Sport in Our Life How has sport marketing grown? How does sport marketing affect consumers? How does sport marketing affect you?

Sport Marketing Consists of all activities designed to meet the needs and wants of sport consumers through exchange processes

Two Major Thrusts Marketing sport products and services directly to sport consumers Marketing other consumer and industrial products/services through sport promotion

Marketing Myopia A lack of foresight in marketing ventures What does this mean?

Symptoms of Market Myopia in Sport Tendency to focus on producing and selling rather than identifying needs and satisfying customers Belief that winning  sales “But no matter how disappointing the club's recent performance, its fans aren't likely to jump ship. "Real Madrid is special," says club member Beneyto. "No member is going to abandon the team just because it doesn't win." Confusing marketing with promotions

Marketing Myopia’s Effect on Sport Slow growth of professional marketing staff Misunderstanding your product Misunderstanding your competition Misunderstanding demand

The Uniqueness of Sport Product Market Promotion

Sport Product Elements of the Product Playful competition Separation from normal space and time Regulation by rules Physical prowess and training Special facilities and equipment

Sport Product as Service Intangible and subjectively perceived Socially dependent Inconsistent and unpredictable Core product beyond marketer’s control Simultaneously produced and consumed (in live event situations)

Sport Market Sport organizations compete and cooperate Consumers consider themselves experts Consumer demand fluctuates widely Sport has universal appeal Sport pervades all elements of life

Sport Promotion Businesses want to associate with sport—why? Free publicity—how?

Strategic Marketing Management in Sport: An Overview

Implementing a Sport Marketing Program Long-term direction for company/brand Revealed in a marketing plan Sport Strategy Shorter-term actions implementing the strategy Tactics

The Strategic Marketing Plan Situation analysis Clarification of mission and objectives Developing the marketing mix Integrating plan into organization’s strategy Controlling and evaluating

How can sport marketers better understand their environment?

Strategic Step 1: Analyze Market and Organization Organizational S trengths Organizational W eaknesses SWOT Analysis Helps organization understand itself and its environment Environmental O pportunities Environmental T hreats

Strategic Step 2: Clarify Mission, Goals, and Objectives Not a sales objective Should be measurable Should provide direction

Strategic Step 3: Develop a Marketing Plan Demographic Geomarket Determine Market Segment(s) Psychographic Product usage rate Product benefits

Escalator concept Represents consumer movement to higher levels of involvement Concept vital to sport marketers Develop the Segment(s) Strategic Step 3: Develop a Marketing Plan

Get product’s image in consumers’ minds Involves research, development, and promotions Product Positioning Strategic Step 3: Develop a Marketing Plan

The Five Ps of Sport Marketing Product Price Place Promotion Publicity/Public relations

Anticipate personnel or organizational structure needs and changes Blend marketing mix to build packages valued by consumers Strategic Step 4: Strategic Resource Allocation

Satisfaction—continued attendance Benefits—food quality, facility access Continually evaluate and adjust Costs—lost time, dealing with unruly fans Strategic Step 5: Control and Evaluate Consumer Satisfaction = Product Benefits – Costs