A. Product

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The bridge that closes the gap between customers and producers

What is Marketing?

• 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

Inputs

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

Outputs

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

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

The Marketing Mix

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.”

Contingency Framework for

Strategic Sport Marketing Process

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

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 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

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