Specialised & Cause Related Marketing (SCM812S) UNIT 3 SPORTS & EVENTS MARKETING SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 1 Unit Objectives At the end of this unit you should be able to: define sports and event marketing discuss the nature and scope of sports and event marketing apply the marketing mix to sports and event marketing analyse the special consideration for sports marketing outline and discuss with examples the different kinds of event marketing explain sports and event marketing in the Namibian context SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 2 Introduction We all have one sport that we love and follow. It could be soccer, netball, tennis, rugby or even basketball. Sport plays an important social and economic role in virtually every country of the world. Some might argue that sports and event marketing are a “special case” of marketing, meaning there are theoretical and practical dimensions of marketing peculiar to sports and event marketing. For instance, courses are offered in services marketing, international marketing, business-to-business marketing and the like because the applications of marketing to these particular contexts require adaptation specific or special to each case. Following this logic, we should accordingly treat sports and event marketing as special cases to study because its processes do not function or generalise well for other goods and services. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 3 What is Sport Marketing? According to Fuse marketing (2013), Sports Marketing is a form of marketing in which brands use mainstream or alternative sports to connect with both a broad and/or targeted group of consumers. Countless companies and/or brands have used sports marketing to build positive brand awareness, support retail and sales promotions and gain an overall advantage in their market. Common examples of sports marketing include athlete endorsements, event marketing and in-stadium advertising. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 4 According to Beech & Chadwick (2007) sports marketing is a subdivision of marketing which focuses both on the promotion of sports events and teams as well as the promotion of other products and services through sporting events and sports teams. It is a service in which the element promoted can be a physical product or a brand name. The goal is to provide the client with strategies to promote the sport or to promote something other than sport through sports. Sports marketing is also designed to meet the needs and wants of the consumer through exchange processes. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 5 Nature and Scope of Sports Marketing Sports marketing include the commoditisation/trading of sport and sport-related transactions. Sports marketing, essentially, is the business of sports. And sports business is big business. Sport marketing is divided into three categories/classes. The first is the advertising of sport and sports associations such as the Olympics, English Football league (which is well watched in Namibia), and the Namibia Premier Leagues (NPL). The second concerns the use of sporting events, sporting teams and individual athletes to promote various products. The third is the promotion of sport to the public in order to increase participation. In the first case, the promotion is directly related to sports. In the second case, the products can but do not have to be directly related to sports. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 6 Three Categories/Classes of Sports Marketing When the promotion is about sports in general, the use of this kind of strategy is called “Marketing of Sports”. When the promotion is not about the sports but sports events, athletes, teams or leagues are used to promote different products, the marketing strategy is denominated “Marketing through sports”. When the promotion is about increasing participation amongst the public it is called "Grassroots Sports Marketing". SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 7 Channels used in sport marketing To promote the products or services, the companies and associations use different channels such as sponsorships of teams or athletes, television or radio advertisement during the different broadcast sports events and celebrations, and/or advertisement on sporting venues. “Street marketing of sport” which considers sport marketing through billboards on the street and also through urban elements (street lighters and sidewalks, etc.) to help promote and gain publicity during major worldwide sporting events such as the Football World Cup, the Olympic Games, the Super Bowl or the Winter Olympic Games. One element that sport marketing takes advantage of is that athletes tend to be brand loyal and fans tend to be loyal to their favourite athletes and teams. This can be recognised through the contracts players and athletes sign with sports companies in which they get paid to wear or use their products in each game or sporting event. By doing so, the players and athletes and also their fans develop a loyalty to the products for a longer time. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 8 Role-players/Sectors in Sport Marketing Sports Marketing is made up of six distinct role players or sectors namely: rights holders, broadcasters, facilities and venues, promoters, buyers and sponsors, and agents and athletes. Together, these sectors comprise the world of sports marketing. Marketing makes up just one section of the larger business of sports. As the industry continues to grow, more and more employment opportunities arise at the professional, semi-pro, college and amateur levels. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 9 Rights holders Rights holders are the big organisations that control events and competitions. This includes entities like the NFA in Namibia, Sports Commission, Athletic Union, FIFA and others. Sporting events cannot be televised without the express permission of the rights holders. These organisations are also responsible for setting league standards and policies and monitoring that all teams and athletes act and play according to the stipulations they set forth. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 10 Broadcasters Broadcasters are cable and network television channels, including the Namibia Broadcasting Corporation (NBC). They make bids to the rights holders for the right to air events. This bidding war drives the cost to run sporting events up. In turn, advertisers pay big money to broadcast companies for slots during the game to run ads. The profit from advertising during popular sporting events is significant and serves as the justification for the exorbitant fees paid to the rights holders by the broadcast companies. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 11 Facilities and venues facilities and venues are where the sporting events take place. All kinds of transactions take place within the venue. Money is changing hands everywhere. In fact, it can get really complicated. Teams have leases with facilities that legal bind particular teams to a given arena or stadium, making it difficult for teams to switch cities or states. In most cases, the city or state pays to build a sporting venue because of the amount of potential revenue that can be made. (Sometimes a team will partner with the city to meet costs. Very rarely does a team pay for the entire cost of the venue). Through ticket sales, concessions and souvenirs, teams and facility owners make a hefty profit. All of this creates jobs and prestige for the region. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 12 Promoters Promoters often create awareness and then promote their own events. Promoters are probably most visible in the world of boxing, wrestling and martial arts. They negotiate with venue owners and agents to stage an event. The participants then compete for a spot, being it advertising, catering spot, etc. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 13 Buyers and sponsors Buyers and sponsors are advertisers. They pay huge amounts of money to prominently feature their brand during events. This may come in the form of television commercials (by far the largest category in this section), radio ads, venue ads and individual athlete sponsorship. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 14 Agents and athletes At the professional level, athletes perform their craft for outrageous salaries. These salaries are made possible by the fees advertisers are willing to pay. These salaries are negotiated by an athlete’s agent. Agents are usually attorneys who are able to negotiate salaries, signing bonuses, compensation packages, endorsements and other fees for their clients, in exchange for a percentage. Agents who represent many clients in their given sport often have leverage and can negotiate maximum fees for players while they are in their prime. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 15 Reflection What about the Namibian Sports Marketing Industry? Who are the major players? SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 16 Applying The Marketing Mix to Sports Marketing Like other forms of marketing, sports marketing also uses and follows the traditional four "Ps” of general marketing being product, price, promotion and place. However, another four "Ps" are added to sport marketing, relating to the fact sports are considered to be a service. The additional 4 P’s are: planning, packaging, positioning and perception. The addition of the four extra elements is called the "sport marketing mix. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 17 Differences between goods/services Marketing and Sports Marketing which may influence the application of the marketing mix Compared to typical goods and services marketing, sports marketing differ in at least ten respects. For instance note how individual purchasers are referred to in goods/services vs. sports marketing : SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 18 Differences… Fanatics: According to Wakefield (2007) a central point of differentiation between sports marketing and traditional goods/services marketing is how we view individual purchasers. One typically refers to customers when the subject is goods and services. Sports teams and players have fans. Dictionary.com defines a customer as: “One that buys goods or services.” A fan is “An ardent devotee; an enthusiast.” A fanatic is “a person marked or motivated by an extreme, unreasoning enthusiasm, as for a cause.” SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 19 Cont’d… Current goods and services marketing focuses primarily upon creating customer satisfaction. Satisfaction occurs when expectations are met or exceeded. Satisfied customers mean three things to the company. First, satisfied customers increase the value of the firm to shareholders. Second, satisfied customers assure the firm of future cash flow. Third, satisfied customers reduce the variability in future cash flow. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 20 Cont’d… As with goods and services marketing, sports teams seek to satisfy customers. We would expect, however, that fanatics of a team or brand are more than satisfied. Fans experience pleasure and satisfaction with successful teams. But, they also experience feelings of delight or excitement deeply resonating within the identity of the individual fan, such that the effects are likely to be long term. Delight is a combination of pleasure and arousal with an element of surprise that is frequently experienced in the sports world. Further, fanatics are resilient in the face of service failure (i.e the team loses), when delight and excitement may turn to distress and gloom. Sports teams develop a faithful fanatical following primarily due to high levels of identification, which is the second point of differentiation between goods and service marketing and sports marketing. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 21 Identification Consumers are loyal to goods and services while fans identify with teams, organisations, and individuals. Loyalty is the repeat purchasing of a good or service by a consumer. A loyal customer is sensitive to differences in brands and prefers a brand or set of brands over others. Identification is when an individual reacts to events that occur to the team or player as if the events happened to him or her. A highly identified fan will describe one’s self to others in terms of being a team fan, perhaps to the point that the fan feels like s/he is part of the team. Fans are certainly loyal to the team in terms of repeat purchases, but fan identification is a deeper psychological affiliation that is a basis for a fan determining self-esteem and self-worth. Because of high fan identification, fans passionately seek ways to promote the team to others. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 22 Promotion and media The manufacturer and/or retailer of goods and services pays for the development and placement of brand advertising and promotions. In contrast, sports teams, organisations, and individuals (players, drivers, and artists) receive indirect and direct financial support to advertise and promote themselves. Fans indirectly promote by buying and wearing or displaying licensed merchandise. Sponsors directly promote the team and individuals, paying for the advertising and media to do so. Similarly, radio and TV broadcasts of sporting events are “brought to you by” the sponsors. Much of the actual product, particularly in terms of revenue, is in the broadcast of the games or event. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 23 Cont’d… The fact that sports and entertainment are broadcast, in and of itself, differentiates from other goods and services. Typical goods and services find it difficult to entertain using its product as the star of a broadcast, although more than a few have created infomercials to entertain. the point is sports are different because others pay for the team’s advertising, promotion and broadcast—in a way typical goods and services find difficult to achieve. Goods and services marketers typically pay for media to broadcast or to print advertising and promotional information while the media pays sports teams for the right to broadcast or print team and event information. In contrast, no network is bidding hundreds of millions, let alone billions, of dollars to broadcast goods and services. The revenue generated from TV contracts is the principle differentiating factor between the healthiest sports leagues (NPL, Namibia Basketball League, Namibia Rugby Union (NRU), etc) and the less healthy ( Namibia Hockey, etc). The proliferation of broadcast and other media outlets for sports also points to the fact that the distribution for sports is increasingly electronic and not limited to static locations. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 24 Reflection Why do city, region and state officials want to attract sports organisations? Why are they, and their taxpayers, willing to pass laws and regulations to pay for these facilities? SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 25 Channel: Static vs. Mobile 4 distribution According to Wakefield (2007) goods and services designate specific geographic outlets. Customers purchasing from Samsung buy products at a local Samsung store or order products to be shipped from a Samsung’s distribution centre. The distribution channel for Samsung is relatively static, changing only when stores open or close. Sporting events and teams, on the other hand, are basically traveling road shows, moving from location to location, city to city, nationally and globally. The experiential and transitory nature of sporting events (as well as other competitive broadcast events such as “ Survival, Idols”) lends itself to electronic forms of distribution. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 26 Cont’d… That is, sports and entertainment are suitable for mediated distribution through broadcast and online video. The English Premier League, for example, is broadcast in 231 countries across 24 time zones for upwards of 200,000 hours of programming in 32 languages. Similarly, cable and internet broadcast systems have developed new distribution channels such as NBA.TV, blurring the lines between traditional broadcasts and online services that make the product available anytime, anywhere. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 27 Product: Adapted vs. Global Wakefield (2007) is of opinion that due to the nature of the events and the distribution channels, sports such as soccer, basketball, baseball, tennis, golf and motor sports are truly global products needing little translation or alteration of the marketing mix to gain acceptance across cultures. The marketing mix (product, place, promotion, pricing) for typical goods and services are typically adapted to local markets. Compared to most sports, frequently cited “global” products such as Coke and McDonald’s are not actually standardised global products. Coke alters its packaging, name and syrup content in foreign countries. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 28 Cont’d… McDonald’s offers beer in German restaurants and cooks its hamburgers rare in France. In contrast, the content or product of the English Premier League, Formula1 Racing, Olympics, or the Soccer World Cup remains the same throughout the world. In a sense, given its electronic broadcasts, the distribution is standardised around the world. Obviously, the promotion (e.g., language) and pricing (e.g., costs of cable) aspects of the marketing mix may be adjusted to regional markets. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 29 Pricing: Two-part pricing Customers typically pay one price for a given product or service. When you go to a grocery store, you select your favourite grocery items and pay the prices marked on the items. You are not required to pay admission to the store so you can shop. However, some exceptions exist resembling fan loyalty—and even fanaticism—in customer products. People pay an annual fee to shop at the Windhoek Show. Some people we know actually get very excited about being able to shop at these places. Such organisations are the exception to the rule— and add evidence to the premise that the most successful marketers are those emulating sports marketers. Professional sports and major college sports fans frequently pay a two-part tariff (or price). SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 30 While some services with relatively inelastic demand (electricity, utilities, etc.) use a two-part pricing system (basic fee + additional user fees) due to monopoly power, even sports organisations operating in competitive entertainment markets frequently charge two prices. Fans paying the initial fee are then given the opportunity to purchase tickets. Another aspect of two-part pricing in sports is the event itself. Fans pay for a ticket to enter the event (initial payment) and then purchase other products (food, drink, souvenirs) after entering. Thus price-setting in most sports settings must consider various forms of price bundling. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 31 Cont’d… Season tickets are offered at a bundled price for the entire season. Offering tickets with a hot dog and soft drink for a single price is another example of price bundling in that it combines the prices of what would normally be two-part pricing. Price bundling is common among services (e.g., vacation package of flight, hotel, and ground transportation; cable TV packages), so this aspect doesn’t by itself differentiate the marketing of goods/services vs. sports. Yet, it is common practice in all sports marketing contexts, but is not common to all goods/services contexts. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 32 Facilities: Taxpayers vs. Corporate support Team Sports Marketing (2014) outlines that although the subject of much public policy debate, sports team owners often do not pay for their own facilities. For instance, a new automobile assembly plant may be able to acquire favourable tax status and property in Windhoek, but will still pay for building their own facilities. In contrast, the majority of NPL owners’ facilities are largely or entirely paid by taxpayers. In addition, naming rights by sponsors add additional revenue to the team. Even when owners invest private dollars into the facility, the reason isn’t necessarily because public monies are unavailable. In these cases, owners invest in order to control revenue available only if they own the facility. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 33 Competition: Cooperative (monopoly) vs. Individual (monopolistic) According to Team Sports Marketing (2014) branded goods and services have traditionally not cooperated in their marketing efforts. At the wholesale level and in some highly competitive retail markets, goods and services may engage in co-branding or cooperative strategic alliances in order to offset or balance competitive weaknesses and strengths. As a rule, however, goods and services marketers do not cooperate in cross-promotions and work in-league with each other on a permanent basis as do sports. Admittedly, this is an area in which some sports organisations do better than others. For example, professional leagues are found to negotiate and promote for the benefit of the league and its members. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 34 Cont’d Fans of the teams are also ardent supporters of the league and enjoy following other team members or players in addition to their favourites. The nature of sports leagues, particularly at the professional level, has evolved to the point where the leagues operate as monopolies, controlling entry and exit into the industry. For instance, for both practical and legal purposes, Namibia Premier League is a monopoly. The league continues to be exempt from competition laws. While other companies are restricted and scrutinised by the Competition Commission. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 35 Exchange: Economic vs. Social Team Sports Marketing (2014) found that customers pay an economic price for the goods or services that they purchase while fans make a social investment in the transaction. Customers typically give up monetary value in exchange (what one gives up for what one gets) for the good or service, although time and search effort may also be expended. In most cases, however, only limited social exchange occurs. When you go out with friends to eat dinner on Friday night, you may be largely motivated by social reasons to go to a particular restaurant and consume certain food and beverages. In the same venue, however, individual and groups of customers may at the same time purchase a meal where social exchange accounts for little or no part of the encounter. In either case, the exchange with the restaurant is still premised upon the purchase of the meal. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 36 Cont’d… Clearly, the more that the restaurant can do to make the purchase based more on the experience, the more they are practicing what is common to sports marketers. In sports, attendance is nearly always (98-99% of the time) with at least one other person. The sports fan pays a price for the right to enjoy an emotional experience with others. The fan goes to the game to be with others to share the experience in this social exchange. More broadly speaking, unlike most other retail settings, large crowds have positive psychological effects. No line at the grocery check-out will make most shoppers happy, but no line to see a ballgame or a concert is a definite cue to a fan that either this is a lousy event or the fan has arrived at the stadium on the wrong date. The excitement of the competition and the aura of the star power of the players on the team are such that the experience is best enjoyed in the presence of others. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 37 Contractual power: Owners vs. Employees Finally, the size and power of the manufacturer or retailer of goods and services affords the owner contractual leverage over its employees in most goods/services contexts. Salaries, benefits and tenure are largely controlled by the owners. Employees have mobility, but are rarely able to singlehandedly affect the outcome of the firm by making contractual demands. Employees (i.e., players) of sports teams, however, are more likely to possess contractual power over employers. Contract concessions, renegotiations and arbitrations generally favour players (Team Sports Marketing, 2014). SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 38 Special Consideration in sports Marketing If a customer is a loyal Nandos customer, it can be predicted that he or she will likely continue to buy at Nandos store. A loyal Nandos customer may, however, switch to similar fried/grilled chicken (Chicken Inn, Hungry Lion or KFC) or buy fried chicken at another store if appropriately discounted. You won’t see many KFC or Nandos’ customers wearing shirts with its brand name emblazoned across the chest. Nor are you aware of many, who of their own free will, frequently visit the website of KFC or Nandos. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 39 Cont’d… The consumer’s purchase of KFC or Nandos is primarily an economic decision based upon the perceived value of what one gets (fried chicken) for what one pays (e.g., N$30.00 for Streetwise 2 or Quarter Chicken). The taste of the individual also plays an important role. On the other hand if an individual is a fan of a professional or university sports team, even a losing team, we can predict the fan will likely: Identify with and follow the behaviour of the team and individual players on that team, on and off the field, team websites, newspapers, television, radio, wireless, etc. Purchase licensed merchandise (jerseys, automobile paraphernalia, caps, mugs, etc.) promoting the team. Donate or pay for permanent seat-licenses in order to buy season tickets. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 40 Cont’d… Travel to see games of that team outside the local market. Support tax-based initiatives to pay for a new arena or stadium for the team. Be a supporter of the conference or league in which the team plays. Devote significant social time attending, watching and discussing the team with others devoted to the same or other teams While consumers of most goods and services see value as primarily an economic evaluation (which detergent is the best buy?), the value fans derive from attending sporting events is likely to be more of an emotional decision. In fact, when teams make fans focus on the price they are paying, they are focusing on the wrong side of the brain. The whole point is to make them fans—not consumers in the traditional sense. Building a fan base, not a customer base, is the first fundamental difference between sports marketing and marketing of most goods and services(Team Sports Marketing, 2014). SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 41 WHAT IS EVENTS MARKETING? Every business seeks to stand out from their competition, and event marketing can help to do just that. Whether it is hosting a small webinar, a large-scale international tradeshow, or an executive-level private function, event marketing needs to be an integral part of the demand generation mix. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 42 Cont’d… Events offer a unique opportunity for them to interact with solution providers to get a first-hand sense of a company’s focus, perspective, and personality. People like to go to the Apple store because they can talk to a human and experience the products in person, then go online to purchase. And if most of the company’s marketing and presence is online, hosting events enables the company to make those connections. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 43 Defined Business Dictionary.com defines event marketing (also called event creation) as the activity of designing or developing a themed activity, occasion, display, or exhibit (such as a sporting event, music festival, fair, or concert) to promote a product, cause, or organisation. Sports marketing and Events marketing go hand in hand but are not the same. Sports marketing SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 44 Cont’d… sports marketing is a subdivision of marketing which focuses both on the promotion of sports events and teams as well as the promotion of other products and services through sporting events and sports teams, while event marketing (also called event creation) as the activity of designing or developing a themed activity, occasion, display, or exhibit (such as a sporting event, music festival, fair, or concert) to promote a product, cause, or organisation. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 45 Scope and nature of events Event marketing is one of the fastest growing fields in marketing and advertising today. It's everywhere you look in today's culture although; you probably don't readily recognise the majority of the event marketing programs when you see them. That's because there are many flavours to event marketing and there are no hard rules about what exactly is and isn't event marketing. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 46 Have you been on vacation break or at a vacation hot spot and been approached by an attractive model who wanted you tor try something? That was an event marketing program in action. Whether you are at the NPL games, Namibia Music Awards (NAMA), Ai//Gams festival, the WIKA Tour, the Soccer World Cups, or just your local mall or grocery store, there is an event marketing program there or, at the very least, waiting for you right around the corner. Event marketing brings the advertising to the consumer by direct hand-to-hand sampling or interactive displays. While advertising and major marketing programs blast millions of consumers with the same general messages on television or mass media, event marketing targets specific individuals or groups at gathering spots where they hope to make quality individual impressions. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 47 An event marketing program can be a nationwide tour, regional program, or it may be focused upon one key market. Major cities and towns like Windhoek, Swakopmund, and Oshakati have dozens of local marketing programs going at any given time. Less populated regions such as Zambezi or Kunene or smaller towns usually have fewer local programs targeting them. National tours can follow some larger event such as NAMA or Ongwediva Trade Fair or, they may hit a series of events or festivals across the country that offer the opportunity to connect with potential consumers. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 48 Kinds of events for events marketing Events come in a variety of flavours, and can be held in countless venues, whether online or off (Adkins, 1999). SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 49 Online events Online events connect presenters and participants through a web-based interface. Common types of online events include webinars, virtual events, and live streaming events. These types of events are often less costly than in-person events and enable you to easily reach a geographically dispersed audience. The convenience and savings of live events – for both sponsors and attendees – are too significant to ignore. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 50 Physical events Offline events require physical attendance, and interaction takes place in person. While they often require more investment than virtual events, offline events allow face-to-face interactions that are essential to building long-term business relationships. Don’t underestimate the impact a handshake or personal meeting can make on a prospect or customer. Examples are tradeshows, conferences, term seminars and breakfast, lunches and dinner events. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 51 Reasons for events According to Marketo (2012) when considering hosting, sponsoring, or participating in an event, a business should identify the outcomes it wants to derive from the event and develop a concrete plan of attack for achieving those results. Companies choose to participate in an event for various reasons. Small companies may want the exposure that a live webinar can provide. A large, global company may need the face-to-face interaction that a tradeshow affords. Whether small or large, companies usually participate for one – or more – of four universally compelling reasons: SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 52 Branding and awareness Marketo (2012), states that a key reason for a business to participate in an event is to establish and build its brand. Event marketing allows a company to cultivate and express its particular identity first-hand. Through events, a company gain the perfect venue to share its ideas, thoughts, and name in the exact manner it want to present them. A company may choose to partake in an event to align itself with other brands that are participating in that event – such as complementary solution providers – or to access a targeted demographic. Many businesses choose events based on the branding opportunity afforded by the event. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 53 Cont’d… Others host events in order to create and showcase the personality of their business. Hosting events also allow a company to own vs. rent the attention of its prospects and customers, which can be more cost efficient. People have an easier time remembering experiences that engage all of their senses, so by having a physical presence at an event, a company reach customers in a very memorable way. A business can also use its event to associate its brand with specific ideas and feelings. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 54 Activity Think about each of the following events in Namibia. What images do you associate with them? The NAMA Wika The Olympics The Fashion Week The Namibian Cup SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 55 Generating leads According to Marketo (2012) another important reason businesses choose to participate in an event is to generate leads. And what better way to do so than to be part of an event where your target demographic is present? The right events allow your company to interact with a group of prospects that already have an interest in who you are and what you do. An event may not be the first encounter with a prospective customer, but it can be one of the most memorable and powerful. Using events to showcase your solutions is important, but couple that with a strong personal connection, a platform for conveying thought leadership, all in a fun, informative, interactive environment, and you have a recipe for a potentially lucrative relationship. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 56 Cont’d… If a company is hosting an event, it may be inviting prospects as well as current customers. The key is to invite those it know will be interested in the chosen theme and topic of the event. In other words, to generate quality leads from its event, you need to determine its target audience. By carefully segmenting its database and reaching out to the most interested demographic, a company can attract attendees that are prospective buyers. And by executing pre- and postevent campaigns and scheduling on-site meetings with targeted attendees, it can return to the office with a list of truly qualified leads. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 57 Engaging with prospects and existing customers Marketo (2012) also states that events offer an unparalleled level of customer engagement, with an opportunity for positive personal interaction that builds loyalty. Plus, every marketer knows that companies can realise the biggest ROI on their marketing dollars by retaining and growing existing customers. The challenge is to gain the attention of a company’s customers amid the distractions of daily work. At events, a company enjoy the chance to upsell customers by introducing them to products or services they may not know about – or may not realise could address their needs. Properly planned and executed events can generate a huge amount of buzz long after the event has ended. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 58 Educating attendees Most people attend events for one of two main purposes: to network or to be educated. Both are powerful draws in their own ways. If an individual is attending for educational purposes, the information being presented is key. No matter what type of event a company is hosting, it’s critical to impart knowledge that the audience will value – and that sets the company apart. By securing quality, high-profile speakers, a company can draw a crowd. And by sharing unique insights that are relevant to the audience, it can advance its reputation as a thought leader in the industry and establish a critical connection between the brand and prospective buyers (Marketo 2012). SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 59 Reflection Recently Namibia the PoN trough the HP-GSB hosted the first ever customer care conference. In your opinion, what do you think are the main reasons for hosting such an event by the organisation? SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 60 Event Planning Step-by-Step There are many important and sometimes forgotten elements involved in planning events. This walk-through can serve as a basic guide as you begin to plan an event. 1. Who, What, Where, When, Why? Work with the members to assess the potential audience and their needs, interests and the purpose of the event. 2. Budget Decide how much of your budget you can and want to spend on the program. Think about co-sponsorship. If you cosponsor an event, it is recommended that you use a cosponsorship agreement. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 61 Cont’d… 3. Select a date & reserve a venue Select a date and time after checking what other events may be scheduled for that date. Find a venue that is available on your specified date. If the ideal venue is not available, consider changing the date. Note: if the event is outside, reserve an alternative inside location in case of bad weather. 4. Event Details Set-Up- Arrange the required setup - (chairs, tables, etc.) with the correct staff (Physical Plant, Event Services, Hotel Conference Planning, etc.) Audio/Visual Needs- Arrange for technical support with the venue. Food- Be sure to check the food policy/requirements before you plan for food at your event. Draw/develop a Gantt chart and a checklist to smooth implementation. 5. Create a publicity/awareness plan Make sure you have all the information on whom, what, when, where, why, and the Plan when ads will run both in print and other media. Plan where flyers will be distributed. Arrange ticket sales if necessary SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 62 Cont’d… 6. Examine security issues Do you need a T-shirt security? 7. Be attentive at the event Assess the audience. Look for any safety issues or risks. Are people interested and enjoying it? How many people are there? Thank the performer/s at the conclusion of the event. 8. After the event Clean up the venue to the best of your abilities. Evaluate the program and discuss its success or problems with your organisation. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 63 Sports and Events Marketing in Namibia Case study writ up Activity: Conduct a survey and present your findings about sport and event marketing initiatives in Namibia in the last 2 years. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 64 Insert: Sports marketing On 25 February 2014 Bidvest Namibia handed over playing kits to all 16 teams that qualified for the Round of 16 of the Competition proper of the Bidvest Namibia Cup tournament. Selected players of the Namibia Women’s National team displayed the kits and assisted in officially handing these over. Theo Mberirua, Director: Commercial & Business Development at Bidvest Namibia said: “When we do something at Bidvest Namibia we do it properly. How does the saying go – go big or go home and we at Bidvest Namibia are proud to be the sponsors of this soccer cup. In order to enhance the experience for both players and supporters, we provide giveaways such as branded hats and t-shirts to supporters, full kits as well as other items such as the Man of the Match trophies, ball boy kits, referee kits, tracksuits and additional kits for the finalists. All of these elements enhance and elevate the game of soccer and we hope that it will be an unforgettable experience for all parties involved – so much so that players, coaches and supporters wish to repeat to next year.” SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 65 Cont’d… “As the Namibia Football Association we commend our partners at Bidvest Namibia for this initiative of allocating all the participating teams in the Round of 16 with playing kit and assisting in the growth of our football. Also as a gesture of friendship and goodwill, Bidvest Namibia management sent congratulatory letters to all the teams for advancing to the Round of 16, as the old phrase goes, it’s the small things that matter and attribute to the bigger picture,” concluded Barry Rukoro, Secretary General of Namibia Football Association. SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 66 END OF UNIT 3 SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015 67