Chapter 8 Marketing the Facility and Events Chapter Objectives 1. Clearly understand the elements of a marketing plan 2. Recognize the importance of a welldeveloped marketing strategy and plan 3. Develop an integrated marketing communications plan 4. Realize the importance of knowing and building a relationship with the consumer 5. Identify how the unique marketing elements can influence an event Introduction • Organizations, including sport events and facilities, need customers to survive. To attract and retain those customers while building demand for a brand, an organization must: • Develop a brand that will stick in the mind of the consumer • Create awareness about the products and/or services offered • Generate a perception in the mind of the consumer that leads to brand equity and loyalty • Differentiate the organization and products/services from the competitor The Uniqueness of Sport Marketing • Sport is even more unique than other business fields and industries for a number of reasons as denoted by Mullin, Hardy, and Sutton (2007): – Sport is consumed as it is produced. – Sport is intangible. – Sport is emotional, subjective, and heterogeneous. – Sport is inconsistent and unpredictable. – The core product is uncontrollable. – Sport organizations compete and cooperate simultaneously. Feasibility • To develop a strong marketing strategy and formulate a plan, a facility and/or event must determine what is feasible. • A feasibility study provides information for event directors to: – Provide quality information to support decisionmaking – Identify reasons not to proceed (such as risk, cost, lack of resources, etc.) – Develop a strong marketing strategy and plan, if the event is a “go” – Help establish a vision, mission, and concept for the event – Assist in securing funding or other support Feasibility Assessments • Assessment of market characteristics, geographical location factors, and analysis of financial aspects • Breakeven analysis • SWOT analysis Developing the Marketing Strategy and Plan • Mission statement: the purpose of the organization (or event) • Vision statement: what the organization would like to achieve or accomplish • Event goals and objectives • Potential product extensions Segmentation • Categorizing consumers into smaller clusters or groups identified by certain characteristics – Demographics: categorize consumers based on age, gender, ethnicity, education, income, socioeconomic status, profession, geographic location, religion, type of sport played, and other such identifiers – Psychographics: categorize based on the consumers’ interests, beliefs, and attitudes – Media preference and use – Purchasing behavior Building the Relationship • Customer profile: a description of the customer or set of customer based on their demographic, psychographic, media preferences, and purchasing behavior • The profile gives you: – Information needed to further develop relationships – Information needed to further increase spending with existing customers – Uses information gathered from current consumers to attract new customers Building the Relationship (cont.) • In order to build a relationship, organizations require a means to maintain vital information on customers. • Data-based marketing (DBM) software: a comprehensive system that captures critical information to enable direct marketing strategies. • Customer Relationship Management (CRM) systems provide deeper background information including key relationships, birthdays, and anniversaries, among other info. Positioning • Understanding customer needs and delivering a product that is perceived as more valuable and distinctly different. • Differentiating: positioning the product by highlighting the important attributes and benefits. • To stand out in a highly cluttered sport marketplace, organizations use a number of strategies. Price • There are a number of philosophies on what constitutes a fair price. • Price must cover the cover the cost of the product and the return to the producer to compensate for the risk incurred. • Customers equate price to value and quality. • Price versus cost. Place • Place refers to: – The location of the sport product (e.g., stadium, park) – Where the product is distributed (e.g., online event registration, event admission sales on-site at the venue) – The geographical location of the target market (e.g., international, national, local) – Other channels that might be relevant to the sport product (e.g., media distribution, availability of the product by season, broadcast) Promotion • Promotion is the most visible aspect of the marketing plan and, in fact, many confuse the two terms • Marketing versus promotion • Promotional mix is used to: – Communicate the desired message and image about the product – Create awareness and educate the consumer – Persuade the consumer to buy the product Communicating the Message • An emerging way to harness the synergy across various marketing tactics to achieve marketing outcomes is known as integrated marketing communication (IMC). • IMC uses a consistent delivery strategy that brand positioning, personality, and key messaging are delivered synergistically across every element of communication. Digital Marketing • Guerrilla and viral marketing tactics have grown in an effort to creatively capture new audiences through innovation and surprise. • The objective of guerrilla marketing is to gain large effects at low expenses. • Viral marketing uses social networks to increase brand awareness through self-replicating processes.