1. 18-1 Chapter 18 Relationship Marketing in the Business of Sports Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

2. 18-2 Two Broad Marketing Objectives Attracting New Customers Retaining Existing Customers –Customer Acquisition Can Be Costly –Customer Retention Deemed Superior

3. 18-3 Customer Retention Basic Premise of Relationship Marketing Seeking Long-Term Association Cost of Customer Acquisition Estimated to be 6 Times that of the Cost of Taking the Steps Required to Keep an Existing Customer Satisfied

4. 18-4 Relationship Marketing An Integrated Effort to Identify, Maintain, and Build a Network with Individual Consumers and to Continuously Strengthen the Network for the Mutual Benefit of Both Parties through Interactive, Individualized and Value-Added Contracts Over a Long Period of Time Focus on Lifetime Customer Value (LCV)

5. 18-5 Benefits for the Sports Marketer Customer Loyalty Facilitates Resolution of Complaints Sense of Belonging – Not Just a Buyer

6. 18-6 Benefits for the Marketer of a Spectator Sports Product Drop in Box 18.2 Here

7. 18-7 Six Components of Relationship Marketing Mutually Beneficial –Win-Win Partnership; Buyer & Seller Benefit Trust –Feeling that the Other Party Will be Honest Empathy –Understand Each Other’s Situation

8. 18-8 Six Components of Relationship Marketing Communications –Interactive and Responsive Bonding –Strong Unified Commitment Viewed by the Participants as a Partnership Continuity –Seek to Maintain a Long-Term Association

9. 18-9 Fan Bonding as Measured by Relative Relationship Strength Fan Bonding as Measured by Relative Relationship Strength The Core Relationship –Usage Length of Relationship Intensity of the Commitment Frequency of Contact –Fan Identification Emotional Involvement Personal Commitment Loyalty

10. 18-10 Fan Bonding as Measured by Relative Relationship Strength The Expanded Relationship –Responsiveness to Product Merchandising Purchase of logo Merchandise –Propensity to Engage in Word-of-Mouth Advertising Talk About Recent Results Talk About Future Competitions Talk About Acquisition of New Players

11. 18-11 Twelve Applications of Relationship Marketing in Sports Drop in Box 18.4 Here

12. 18-12 Clubs (1) Spectator Sports – Fan Club –New Zealand Cricket Fraternity Participation Sports – Club for Players –PGA Tour Partners Club SASS – Club for Users of Particular Brand –Storm Chasers (Storm Bowling Balls)

13. 18-13 Serial Marketing (2) Spectator Sports – Giveaways –Require Regular Attendance for Complete Set Drop in Figure 18.2 Here

14. 18-14 Frequency Incentives (3) Spectator Sports – Frequent Attendance –English Rugby Football Union Smart Card Participation Sports – Frequent Play –10-Pin Bowling: Play 6 Games; Get 1 Free

15. 18-15 Affinity Marketing Programs (4) Spectator Sports – Credit Card That Benefits Both the Sports Property and the Fan –MBNA NASCAR RacePoints Visa Credit Card Participation Sports – Lifestyle-Based Credit Card –Ducks Unlimited MasterCard Credit Card SASS – Credit Card User Accrues “Points” –Bass Pro Shops Outdoor Rewards Visa Credit Card

16. 18-16 Affinity Marketing Programs Drop in Figure 18.3 Here

17. 18-17 Routine Periodic Communications (One-Way) (5) Traditional Print Media or E-Mail Spectator Sports – Contacting Fans –Newsletter, Schedule, Promotions Participation Sports – Contacting Participants –e-mail Asking Marathon Runners to Register Online SASS – Magazines –Callaway Golf Magazine

18. 18-18 Callaway Golf – Communications with Known Buyers Drop in Figure 18.4 Here

19. 18-19 Interactive Opportunities (6) Spectator Sports – Internet Chat Room –Dialog between Fans and Player Participation Sports – Real Time Results –Boston Marathon Participant Tracking SASS – Information and e-products –adidas.com downloads and store locatoradidas.com

20. 18-20 Gifts (7) Spectator Sports – Recognize Relationship –NFL Team’s Holiday Ornament for Season Ticket Buyers Participation Sports – Encourage Return –Golf Tournament that Provides Gift Pack for Players SASS – Reward for Past Use –Bowling Ball Company that Gives Special-Edition Ball to Recognize Perfect Game by Bowler Using Its Brand

21. 18-21 Fan Appreciation Activities (8) Spectator Sport Based –Player Clinics –Autograph Sessions –Celebrations of Team Achievements

22. 18-22 Contests (9) Spectator Sports – Win Tickets –Future Game or Cross-Marketed Event Participation Sports – –Register On-Line; Chance to Waive Fees SASS – Win Products –Titleist.com: Win Year’s Supply of Golf BallsTitleist.com

23. 18-23 Logo Merchandise (10) Spectator Sports – Peripheral Product –Premiums that Incorporate Team Logo Participation Sports – Reward Performance –Bowler Receives Logo Jacket for 300 Game SASS – Support Core Product –Storm Bowling Balls Sell Shirts, Towels, etc.

24. 18-24 Direct Access/ Personal Representative (11) Spectator Sports – Ticket Representative –Assigned to Handle Season Ticket Accounts –Addresses Exchanges –Resolves Complaints –Addresses Renewal –Provides Constant Point of Contact Over Time

25. 18-25 Recognition (12) Spectator Sports – PA Announcement –Birthday of a Season Ticket Holder Participation Sports – Acknowledgement –Tournament Web Site Identifies Bowlers Who Attain a Noteworthy Mark in Continuous Participation SASS – Identification on Website –Recognize Achievers Who Used the Marketer’s Product in a Noteworthy Performance

26. 18-26 Example in Spectator Sports: NASCAR Apartment Building by Lowe’s Speedway NASCAR Thunder Store NASCAR Café NASCAR Amusement Centers NASCAR Simulators Daytona USA Theme Park Pit Stop Challenge Simulate Role of Race Announcer

27. 18-27 Example in SASS: Reebok Focus on Female Runner Target Market Focus on Smaller Retailers Emphasize Running Roots in Promotions Sponsor US Olympic Track & Field Team Grass Roots Sponsor of Running Events Newsletter Sent to Known Runners Seek Input from Retailers

28. 18-28 Evaluating the Effectiveness of a Relationship Marketing Program Track Sales Monitor Complaints Customer Satisfaction Surveys

29. 18-29 Evaluating the Effectiveness of a Relationship Marketing Program Monitor Internet Chat Rooms and Bulletin Boards (Buzz Manager) Calculate Click-Through Rate (CTR) for Internet-Based Relationship Marketing Initiatives Customer Relationship Management (CRM) Software (data mining)

30. 18-30 Recovery Marketing When Things Go Bad, How Do We Get the Customers to Come Back? Formula 1 Racing in USA After 14 of the 20 Cars Entered Refused to Race because of Safety Concerns about Tires NHL After a Cancelled Season

31. 18-31 Five Steps for Recovery Marketing Drop in Box 18.7 Here

32. 18-32 Recovery Marketing by the NHL Lost 2004-05 Season Due to CBA Issues Drop in Table 18.1 Here

33. 18-33 Closing Capsule Relationship Marketing Is All About Customer Retention Key Issues Are Customer Satisfaction and Problem Resolution Relationship Marketing Encompasses All Elements of a Marketing Strategy

34. 18-34 Closing Capsule Win-Win Environment Focus Is on Lifetime Customer Value – In Other Words, a Long-Term Relationship Despite Best Efforts, Things Go Wrong Need to Understand Recovery Marketing