Year 12 Business Studies
SPORT MARKETING1REVISION CASE STUDY
NOTE: This activity is designed to stimulate students' thoughts and discussions
in applying marketing concepts to a case study. It should be completed in relation
to your favourite sport.
What is sport marketing?
With the professionalism of sport increasing to the stage where players are on
million dollar contracts and events are promoted and managed with heavy
involvement of the media, sport, as we have traditionally known it, has become a
business.
Sport marketing is defined by Shilbury, Quick and Westerbeek in Strategic Sport
Marketing (1998, Allen & Unwin). They state: "Sport marketing is a social and
managerial process by which the sport manager seeks to obtain what sporting
organisations need and want through creating and exchanging products and value
with others." The authors go on to discuss marketing "of" sport (that is, letting
people know about the sport or events), and marketing "through" sport (that is,
using sport as the vehicle for marketing products through their association with
the sport).
1. Exercise
Consider the Olympic Games, NRL or Australian Cricket Board
How are the sports marketed?
What sponsorship involvement is there?
What products are associated with the Olympic Games, Rugby League and
Cricket?
How important is media coverage of the sport?
How have games been modified to attract spectators, sponsors and money?
A Situational Analysis
Source
http://www.hsc.csu.edu.au/business_studies/marketing/marketing/marketing.html
#revision
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2. Exercise
Should sport be considered as a "product" or a "service"? What is the "product or
service"? How has it changed over the last few years?
What is the impact of competition Ð this includes competition amongst different
sports as well as the level of competition within the sport (e.g. standard of games
or competitiveness of the teams/athletes)?
How are consumers targeted? What needs and wants are involved? What might
the target markets be?
Complete a SWOT analysis for your favourite sport. Consider competition, costs,
facilities, demographics, media involvement and sponsorship.
Goals And Objectives
Remember that objectives must be SMART. That is:
Specific
Measurable
Achievable
Realistic
Time limited
3. Exercise
What would be the overall goal of your team, athlete or sport for the "season"?
What specific marketing goals or objectives could be developed? Consider media
coverage, spectator attendance, increasing revenue, promotions, licensed
products, pricing structures (e.g. for admission or membership) and ticketing.
What is the impact of the product life cycle?
What is the "break-even point"?
List any other objectives you can think of.
Target Markets
4. Exercise
Outline the demographics relevant to your sport, team or athlete.
What geographic factors need to be considered?
Think critically about the psychographic (The use of demographics to study and
measure attitudes, values, lifestyles, and opinions, as for marketing purposes) of
participants and spectators. Who are you really trying to attract as a participant,
spectators or consumers of licensed products? Is consumer behaviour on a repeat
or spontaneous basis?
Identify the target markets for your sport, team or athlete.
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The Marketing Mix
The product has already been established in the exercises above. Work through
the exercises below on the "other Ps".
Price
5. Exercise
What pricing strategies could you use?
What are your pricing goals? Is there market sensitivity to price? Do you want to
maximise income or attendances?
Are there any constraints on pricing: laws, regulations, ethical issues?
Consider how the prices for tickets to the Olympic Games were set. Were they
high because of demand or were there factors such as the uniqueness or time
dependency (once the Games were over, you wouldn't be able see them again)?
Place
6. Exercise
Describe the sport facility required for your sport.
What are the tangible and intangible benefits of your facility? Consider seating,
view, toilets, food and drink outlets, service, access etc.
Promotions
This section covers a large range of areas and issues. They have been grouped
together to aid your investigations.
7. Exercise
Positioning strategies
How is your "brand" (that is, sport, team or athlete) perceived by the consumers
or target market?
Are there any benefits of direct and indirect consumption of your sport? (e.g. if
you follow Rugby League, your team may not be playing in the "match of the day"
but you may choose to watch the game on TV; will you be influenced by the
marketing strategies of your "competition"?)
Advertising
What are the common avenues used for advertising your product?
How effective are they?
How do sponsors advertise their product?
What is "venue advertising"? Watch a major sporting event on TV and analyse the
advertising, sponsorship recognition and general signage. Are advertisers getting
value for their investment?
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How much would it cost to run a 30-second commercial during the NRL Grand
Final?
Publicity and public relations
Is it important that your product gets free media coverage e.g. in the pages of a
newspaper or on TV?
When do sports have to go into "public relations" mode?
Personal selling
How do sports utilise athletes and sponsorship to promote the product?
Sales promotion
Identify some promotional activities that you could conduct at the venue. These
may include give-away items (e.g. hats, drinks), competitions and tickets to future
games.
Sponsorship and promotional licensing
These are the 2 large areas for sport.
What is the role of sponsorship in your sport?
How do teams and athletes service their sponsors?
Can you name the major sponsors for the Olympic Games, Tennis Australia, the
Wallabies or the Kangaroos?
What items can be sold with logos?
How can you build consumer loyalty through selling licensed products?
Budget
8. Exercise
Imagine that you are the financial adviser to your sport. Develop an imaginary
budget to cover your marketing expenses. Include items like player salaries, gate
receipts, sponsorship, revenue from sales, and the cost of advertising, promotions
etc.
Marketing controls
9. Exercise
List the 3 types of organisational controls.
Devise some controls that you could use to ascertain the success of your
marketing program. Consider on-field success, attendance, participation,
sponsorship, customer surveys, market research etc.
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