Sport Marketing KINE 2380 Introduction to Sport Administration

What is Marketing? The bridge that closes the gap between customers and producers Formal Definition: –“The process of planning and executing the conception (product), pricing, promotion, and distribution of ideas, goods, and services to create exchanges the satisfy individual and organizational objectives.” AMA Real Definition: “The delivery of customer satisfaction at a profit.” “Develop and maintain profitable relationships”

The Marketing Process

Inputs BusinessConsumerEnvironmental Analytic Tools: Research Situational Analysis SWOT Marketing Objectives & Strategy: The goals and plans for how to achieve Internal Strengths and Weaknesses -Corporate Structure, Assets -Personnel -Sustainable competitive advantages -Market share, position, performance External Opportunities and Threats -Competitive -Economic -Socio-Cultural -Legal Political -Technical The Group(s) being targeted -Segmentation -Needs & Wants -Benefits -Awareness -Behaviour

Outputs -Types of distribution -Distribution strategies (consumer & business) -Types of promotion -Promotional strategies (consumer & business) -Price Elasticity (Sensitivity) -Pricing strategies (lifecycle/product type) -Pricing policies Product PromotionPricing Marketing Mix Elements Place -Product types -Product tangibility - Product lifecycle -New product development Analytic Tools: Research Balance & Gaps Assessment Measurement, Monitoring & Evaluation Marketing Objectives & Strategy

Sport Marketing is defined as “The process of designing and implementing activities for the production, pricing, promotion and distribution of a sport product or sport business product to satisfy the needs or desires of consumer and to achieve the company’s objectives.”

The process of marketing products is exclusive to profit-making businesses.

The Industry Full service sport marketing agencies Professional sport clubs / leagues Sporting good & apparel manufacturers Municipal parks and recreation University Athletics Amateur sport governing bodies

The Industry The Players:

Sport Marketing Activities Must:  Be based on a win-win relationship  Allow you to get your organization’s message out  Allow you to generate revenue  Allow you to identify & address the customer’s needs The Absolutes for Marketing Activities Give Get Organization Customer

The Industry Environment Socio-Cultural Technological CompetitiveDevelop a short list Economicfor each Political/Legal KINE 2380 – INTRODUCTION TO SPORT ADMINISTRATION

Product PromotionPricing Marketing Mix Elements Place -Product types -Product tangibility - Product lifecycle -New product development -Price Sensitivity -Pricing strategies (lifecycle/product type) -Pricing policies -Location -Distribution strategies (consumer & business ) -Types of promotion -Promotional strategies (consumer & business) The Marketing Mix

The Sport Product Sport Products = Bundle of Benefits Benefits for who? KINE 2380 – INTRODUCTION TO SPORT ADMINISTRATION 1.Spectators / Users 2.Participants 3.Corporate Sponsors

The Sport Product KINE 2380 – INTRODUCTION TO SPORT ADMINISTRATION Canadian Sporting Events

The Sport Product Athletes = Global power brands

The Sport Product Sports Facilities = World-class entertainment centres

The Sport Product Sporting good brands

What makes the Sport Product unique? 1. Aspects of the sport product are intangible 2. Sport is subjective and heterogeneous 3. Sport is inconsistent and unpredictable 4. Sport is perishable 5. Sport evokes an emotional response

Sport Promotions Advertising Sales Promotions Sponsorship Personal Selling Media Relations Public Relations Community Relations The Promotional Mix: How do we communicate our product benefits to consumers?

Advertising “Advertising is any promotional technique involving paid non-personal communication used by an identified sponsor to persuade or inform a large number of people about a Product.”

Sales Promotions “Sales Promotions are a promotional technique involving one-time direct inducements to buyers (such as coupons, sales displays & contests) to purchase a product.”

Sponsorship “Sponsorship is an indirect way of gaining financial support by helping businesses sell their products or services in exchange for their support (financial or in-kind).” Why would companies be interested in sponsoring your organization or event?

Personal Selling “Personal Selling is a promotional technique involving the use of person-to-person communication to sell products.”

Media Relations “The activities involved in working with the media to generate media coverage for a product, service, or organization. This includes establishing contact with members of the media, providing PR materials, and being available to answer any questions the media might have.”

Public Relations “Public Relations is a promotional technique that involves non-paid communication about a product or company and is outside the control of the company.”

Community Relations “A company’s interactions and programs within the locality or community it operates, with emphasis on disseminating company information to foster trust in the company's activities.”

Contingency Framework for Strategic Sport Marketing Process Strategic Sports Marketing Competition Legal/political Demographics Technology Culture Physical environment Economy External (O/T) Vision Mission Objectives Marketing goals Strategy Culture Internal (S/W) Planning Understanding Consumers Needs, Wants, Demands Market Selection Marketing Mix Implementation Control Fit

Approaches to Marketing Planning

The Planning Phase Step 1: Understanding Consumers’ (individual or corporate) Needs Understand sport consumers’ attitudes Understand sport consumers’ purchasing behaviours Who purchases our sport product?  Consumer profiles  Why do consumers purchase our product? (Needs, Wants and Demands)

The Planning Phase Step 2: Market Selection Decisions A. Segmentation B. Target Marketing C. Positioning Choose your target market & position your sport product to that distinct market segment.

The Planning Phase A. Segmentation Segmentation = grouping consumers based on common needs Consumer markets can be segmented based on the following: Demographics PsychographicBehaviouralBenefits GeographicGeodemographic

The Planning Phase B. Target Marketing Target marketing = choosing the market segment around which to build your sport marketing process Target markets must be: Sizable Behavioural Variation ReachableMeasurable

The Planning Phase C. Positioning Positioning = fixing the sport product in the mind of the target market How does your target market perceive your product or service?

The Planning Phase

The Marketing Mix A. Product choices determine basic design of the product offered B. Price choices determine how much consumers pay for product C. Promotion choices determine the visibility and image of the product to consumers D. Place choices determine where and when the product is available to consumers

The Implementation Phase Step 1: Organizing What organizational structure will best carry out the marketing process? Grouping of marketing activities into designated organizational units Allocating resources to organizational units

The Implementation Phase Step 2: Leadership & Interaction Effective communication of the sport marketing process within and outside the organization Sell your sport marketing plan internally Sell your sport product in the market place

The Implementation Phase Step 3: Resource Acquisition & Allocation Human resources Financial resources Technological resources

The Implementation Phase Step 4: Coordinating & Timing of Activities Stick to your marketing plan & established timelines Ability to adapt and be flexible to changes internal & external changes

The Implementation Phase Step 5: Information Management Economy Consumer demand Supply Distribution channels Market place & competitor activity

The Control Phase Measuring results Comparing results to marketing objectives Modifying plan to achieve desired results

The Control Phase Measuring results: Sales Analysis Profitability Analysis Customer Satisfaction Marketing Audits

The Control Phase Sales Analysis Current sales V forecasted sales Current sales V past sales Current sales V industry sales / competitor sales Unit volume OR dollar volume OR market share

The Control Phase Profitability Analysis Profit = (Revenues earned) – (Costs incurred) The amount of money earned after expenses Profit Margin = Profit / Revenue The ratio of profits to revenues

The Control Phase Customer Satisfaction Communicating & listening to your consumers’ wants and needs Methods: Consumer surveys Consumer hotlines / websites Consumer observations Comment / complaint cards

The Control Phase Marketing Audits Systematic and holistic appraisal of the sport marketing process and relevant marketing activities Performed by an independent Review all components of the sport marketing process: Marketing orientation / objectives Target markets Products & services Four P’s

Event Sponsorship The Sports Event Pyramid LOCAL REGIONAL NATIONAL INTERNATIONAL GLOBAL

Event Sponsorship The Sports Event Pyramid GLOBALWorld Cup; Olympic Games INTERNATIONALWimbledon; Commonwealth Games NATIONALGrey Cup; Super Bowl REGIONALBoston Marathon LOCALFAN 590 Hockey Tournament

Event Sponsorship The Event Sponsorship Acquisition Model 1. Fan attendance / demographic profile of fans at the event 2. Cost / cost per number of people reached 3. Length of contract 4. Media coverage 5. Communications Inventory Offering 6. Sponsorship benefits