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 objectives.”
• Real Definition:
“The delivery of customer satisfaction at a profit.”
“Develop and maintain profitable relationships”
The Marketing Process
•
•
•
Business Environmental
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
Analytic Tools:
• Research
• Situational Analysis
• SWOT
Consumer
The Group(s) being targeted
-Segmentation
-Needs & Wants
-Benefits
-Awareness
-Behaviour
Marketing Objectives & Strategy:
The goals and plans for how to achieve
Marketing Objectives & Strategy
Marketing Mix Elements
Product Pricing Place Promotion
- Product types
- Product tangibility
- Product lifecycle
- New product development
- Price Elasticity (Sensitivity)
- Pricing strategies
(lifecycle/product type)
- Pricing policies
- Types of distribution
- Distribution strategies
(consumer & business)
Analytic Tools:
• Research
• Balance & Gaps Assessment
• Measurement, Monitoring & Evaluation
- Types of promotion
- Promotional strategies
(consumer & business)
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 Industry
Full service sport marketing agencies
Professional sport clubs / leagues
Amateur sport governing bodies
Sporting good & apparel manufacturers
Municipal parks and recreation
University Athletics
The Industry
The Players:
The Absolutes for Marketing Activities
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
Give
Customer
Organization
Get
The Industry Environment
Socio-Cultural
Technological
Competitive
Economic
Political/Legal
Develop a short list for each
KINE 2380 – INTRODUCTION TO SPORT ADMINISTRATION
Marketing Mix Elements
Pricing Place Product Promotion
- 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 Sport Product
Sport Products = Bundle of Benefits
Benefits for who?
1. Spectators / Users
2. Participants
3. Corporate Sponsors
KINE 2380 – INTRODUCTION TO SPORT ADMINISTRATION
The Sport Product
Canadian Sporting Events
KINE 2380 – INTRODUCTION TO SPORT ADMINISTRATION
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
The Promotional Mix:
How do we communicate our product benefits to consumers?
Advertising Media Relations
Sales Promotions
Sponsorship
Personal Selling
Public Relations
Community
Relations
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.”
External (O/T)
•Competition
•Legal/political
•Demographics
•Technology
•Culture
•Physical environment
•Economy
Strategic Sports Marketing
Planning
• Understanding
Consumers Needs,
Wants, Demands
•
Market Selection
•
Marketing Mix
• Implementation
• Control
Internal (S/W)
•Vision
•Mission
•Objectives
•Marketing goals
•Strategy
•Culture
Fit Fit
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 Geographic Geodemographic
Benefits Behavioural Psychographic
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 Measurable Reachable
Behavioural
Variation
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
GLOBAL
INTERNATIONAL
NATIONAL
REGIONAL
LOCAL
Event Sponsorship
The Sports Event Pyramid
GLOBAL
INTERNATIONAL
NATIONAL
REGIONAL
LOCAL
World Cup; Olympic Games
Wimbledon; Commonwealth
Games
Grey Cup; Super Bowl
Boston Marathon
FAN 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