Sports Marketing
What is sports marketing?
Numerous describe marketing as the use of advertising, publicity and personal selling techniques to make others aware of a product and stimulate sales. However, this term is much more comprehensive than this narrow interpretation. Briefly, marketing means to be focused on satisfying the needs of customers or consumers. In other words, sport marketing is focused on meeting the needs of sport customers or consumers, including people involved in playing sport, watching or listening to sport programmes, buying merchandise, collecting memorabilia, buying sporting goods like clothing and shoes, or even surfing a sport-related website to find out the latest about their favourite team, player or event.
Primarily, It is important to clarify the terms consumers and customers as they are used frequently in this article.
Sport consumer is someone who generally uses sport products or services.
A sport customer is someone who pays for the use of a specific product or service.
It is legitimate to use the terms interchangeably to refer to those people who use and pay for sport products and services.
Marketing is more than promotion, advertising or personal selling. Satisfying the needs of consumers requires more than just adding together a slick advertisement or offering a temporary discount. For example, marketing involves making decisions about what different groups of consumers may need or want: the most effective way of selling a product or service, the best way of making the product or service available, the idea behind a product or service, the unique features of a product or service, and ultimately, its price.
Marketing needs a process where a variety of issues are considered in order to maximise the probability that a customer is satisfied by the product or service it consumes. These issues can be combined in order to construct a definition of marketing.
Marketing:
Marketing is generally described as the process of planning and implementing activities that are designed to meet the needs or desires of customers. Marketing pays attention to the development of a product, its pricing, promotion and distribution. It aims to create an exchange, where the customer gives up something (usually money), for a product or service that is of equal or greater value.
A simpler definition of marketing was provided by Smith and Taylor (2004, p. 5), who wrote ‘Marketing is selling goods that don’t come back to people who do’. If products ‘don’t come back’, it means that customers’ needs have been satisfied and they do not want to return what they purchased in order to secure a refund. Therefore marketing leads to satisfied customers who will continue to use the same product in the future. Marketing aims to entice people to try products or services and then keep them as long-term customers.
Sport marketing:
Sport marketing is the application of marketing concepts to sport products and services, and the marketing of non-sport products through an association to sport. Hence, sports marketing posses two crucial features. Firstly; the adoption of the general marketing concepts to sports related products and services. Secondly, the marketing of other industrial products and servies through sports. It is important to understand that sport marketing means the marketing of sport as well as the use of sport as a tool to market other products and services.
The two angles of sport marketing
Sport marketing entails the marketing of sport and marketing through sport. For example, the marketing of sport products and services directly to sport consumers could include sporting equipment, professional competitions, sport events and local clubs. Other simple examples include team advertising, designing a publicity stunt to promote an athlete, selling season tickets, and developing licensed apparel for sale.
In the other hand, marketing through sport is manifested in marketing of non sport product through an association to sport. Some examples could include a professional athlete endorsing a breakfast cereal or a corporation sponsoring a sport event..
Sport marketing as a philosophy, a process, principles and tools
While thinking about what sport marketing encompasses, it is helpful to understand that it is a hierarchical concept. At the most fundamental level, sport marketing embraces a general philosophy or a set of beliefs about how to go about marketing. A marketing philosophy is about putting the needs and wants of the customer at the centre of all decisions. It is important to add that the needs of the customer must complement the goals of the enterprise. Marketing philosophy is concerned with creating a win-win situation for both the organisation and sport consumers, but it recognises that no one will win if consumers’ needs are not met. This sport marketing philosophy is adopted in this text, and is used as a basic assumption throughout.
At a second level, sport marketing may be considered a process. It is a process because it involves a series of activities and steps. For example, sport marketing involves research, analysis, planning, development, implementation and evaluation. These processes are a common property of sport marketing and feature as the structural framework around which this text is written.
Thirdly, Marketing in sports may be illustrated as a set of principles as it adopts various ideas and concepts providing specific guidance to those undertaking marketing activities. Those principles entails clear guidances as to how the processes of sport marketing can be used in practice.
Finally, at the most operational level, sport marketing principles can be implemented with the aid of tools, which are analytical devices and specific activities used in day-to-day practice.
The four levels are represented in the following figure:
The sport industry
It is easy to get caught in the trap of thinking narrowly about what the sport industry comprises. To understand what the sport industry is, it is necessary to first discuss what an industry is. The term industry can be defined as a market where similar, or closely related, products and services are offered to consumers. Industries are often categorised according to the types of products and services they offer. The result is that there can be a wide range of organisations involved in an industry, including commercial or corporate entities, non-profit organisations, associations, manufacturers, wholesalers, retailers, government agencies and small businesses. From a sport marketing perspective it is useful to remember that in a single industry the products and services that are produced satisfy similar consumer needs and wants. As a result, the sport industry includes all the suppliers of products and services that satisfy the needs of sport consumers. The important point is that the sport industry is a marketplace where consumers can acquire products and services that are associated with sport in some way.
on first impressions the sport industry may appear to be little more than sport venues. . While this is a good start, there are many other organisations which are part of the sport industry. Some examples include:
Government departments of sport and recreation, at state or county and federal or national level.
The media, including print, television, cable, satellite and the Internet.
Education, such as universities and private providers, which teach sport management.
Researchers who study the sport market or consumers, as well as exercise physiology and sport medicine.
The transport and construction sectors which contribute to the building of venues.
Corporations and private enterprises which contribute to sport through sponsorship.
Volunteers who support sport clubs and associations.
Sport can stimulate an emotional response in its consumers of the kind rarely elicited by other products. Imagine bank customers buying memorabilia to show allegiance with their bank, or consumers identifying so strongly with their car insurance company that they get a tattoo with its logo. We know that some sport followers are so passionate about players, teams and the sport itself that their interest borders on obsession. This addiction provides the emotional glue that binds fans to teams, and maintains loyalty even in the face of on-field failure.
Commercial businesses may have many goals, but their main purpose is to maximise profits. However, a large annual profit might not seem like a success to a sport club if they finished the season at the bottom of the ladder. Sport club members and fans judge performance on the basis of trophies.
A sport club may bankrupt itself by paying high salaries for players and coaches in an effort to secure a championship. On the other hand, they may succeed financially but not perform on the field of play.
In most business settings it is desirable to put competitors out of business. Naturally, fewer competitors mean more available customers. However, this is not always the case in sport. In fact, sport organisations that compete in leagues actually rely on the health of their competitors for their own success. For example, fans are often more attracted to a game where there is a close contest, and the winner is unknown in advance. Dominating a league or competition can be self-defeating, because the interest of fans can fade.
Teams and clubs depend on the continued on-field and off-field success of their opponents. If a league is divided into two groups, one group of wealthy and high performing teams and another group of poor and low performing teams, this will ultimately damage all the clubs involved and the competition in general. In practice, clubs must cooperate with their rivals in order to deliver what their consumers want. Sport organisations need their opposition to remain successful, and may cooperate to share revenues and trade player talent to maintain competitive balance. In most industries, businesses would not be allowed to cooperate in this way; it is considered anti-competitive, or cartel behaviour, and there are often laws that prohibit it. But in sport, cartel arrangements are common. For example, clubs may share revenue, prevent other clubs from entering the market, collectively fix prices and generally limit the amount of competition.
Commercial businesses aim for predictability and certainty, especially when it comes to product quality. But predictability and certainty are not always valued in the sporting world. The sport experience is better when it is unpredictable, and sport organisations actually depend on that unpredictability in order to be attractive. When the results of games cannot be predicted, attendances at sporting contests are likely to be higher, as are the profits of leagues. However, the lack of predictability also leads to significant variability in the quality of sporting performances. Many factors can contribute to the variability of the sport product, including the weather, player injuries, the venue, the quality of the opponents, the closeness of the scores and even the size of the crowd.
Loyalty to sport products and brands is strong due to the emotional attachments that sport consumers develop for their favourite teams, events, players and equipment. In fact, sport fans often see their team as an extension of themselves; it becomes part of their self-identity. When sport consumers passionately support a particular kind of sport, a specific competition or a specific team (or brand), there is low cross elasticity of demand.
Some sport consumers identify so strongly with their sporting heroes that they seek to emulate them. Supporters may wear the same club ‘uniforms’, colours and sport clothing brands as their heroes. Many businesses such as sport equipment and clothing manufacturers have recognised the power of sporting identification, and regularly market their products through successful athletes. Of course, sport identification is the driving power behind sport sponsorship. By seeking an association with sport, sponsors try to claim some of the loyalty that fans possess for sports, teams and players.
Sport consumers:
Sport consumers can come in many forms including spectators, participants, serious fans and business sponsors. There is no simple formula to describe how and why sport consumers behave as they do. For example, some sport fans may use teams and players to help them construct a sense of self, but others may only follow sport to fill in their spare time with a pleasurable form of entertainment. Sport consumers can be remarkably loyal, but they can also be fickle and critical. The best starting point is to identify the different kinds of sport consumers, and in doing so, highlight which have motives in need of further exploration.
A sport consumer is an individual who purchases sporting goods, uses sport services, participates or volunteers in sport and/or follows sport as a spectator or fan.
Sport consumer motives:
Sport marketers need to appreciate the many reasons why consumers are motivated to buy sport-related products and services. Without this knowledge it is more difficult to tailor products to consumers’ needs. The more that is understood about sport consumers, the easier it is to approach them with enticing marketing.
Psychological motives: Sport can fulfill a number of emotional and intellectual needs for the sport consumer. For example, sport can be stimulating, can help to release stress, can be an escape and can provide entertainment and visual pleasure. In other words, sport can stimulate positive feelings and thoughts for the sport consumer.
Stimulation: Sport can be a stimulating, psychologically energising activity. It generates excitement and even anxiety, both of which can encourage the body to produce adrenaline.
Escape: The stimulation provided by sport can provide consumers with an escape from the ordinary routine of everyday life. sport gives spectators an acceptable place to shout, scream and sing or dance, where their normal work or family roles might not. Sport can also provide a release and a distraction from a stressful lifestyle. For many fans, sport watching is the ultimate ‘escape experience’.
Aesthetic (visual) pleasure: watching sport offers aesthetic (or visual) pleasure to fans. Sport fans are often prepared to pay to witness excellence, such as skillful play or memorable moments.
Drama and entertainment: Through watching an engaging contest, fans can be part of a theatrical experience. The scale of many sporting venues, the sight of thousands of fans in club colours and the use of lively half-time entertainment all enhance sport’s dramatic qualities. UFC is a great example for this.
Belonging and group affiliation: Sport consumers may feel a need to belong to a group. They may also be motivated to develop a sense of identity that is connected to the group, or to identify with something bigger than themselves.
Family and social interaction: Sporting events and activities provide an opportunity for families and friends to spend time together in an organised and pleasurable way. A sport experience can help sport fans fulfill family needs, or to spend time with friends.
Develop a strategic marketing direction
There are two steps involved in developing a strategic marketing direction. First, marketing objectives need to be developed. Second, performance measures need to be assigned to these objectives. Both are outlined in the following sections.
Marketing objectives:
Marketing objectives represent a guide through all of the coming stages of the marketing framework. They should offer a clear direction to follow when it comes to conceiving the rest of the marketing plan. This means that the importance of marketing objectives cannot be underestimated. It is critical to think about marketing objectives carefully, and to document them clearly. They should provide everyone in a sport organisation with a clear direction so that all marketing activities are carried out in line with predetermined goals.
These are four broad categories of marketing objectives.
Participation:
To increase the number of members in a club.
To increase the number of clubs in a sport or competition.
To increase the number of consumers using a service.
To improve spectator levels at a competition or event.
To expand the number of club administrators or officials.
To expand the number of volunteers involved.
To increase the volume or frequency of consumer use of the product or service
Performance:
To increase market share
To increase the range of products or services on offer to consumers
To improve customer satisfaction and service quality.
Promotion:
To promote a health and well-being message.
To improve the public ‘image’ of the organisation.
To increase customer awareness of the product/service
Profit :
To increase product or service sales.
To increase profit margins.
To acquire new sponsorship or grant.
To increase annual profit or surplus (or decrease expenses or deficit).
To increase the amount that sales revenue exceeds costs.
To improve the ratio of cost to revenue.
Performance measures:
Once objectives have been set, it is important to add performance measures. The word measure refers to a way of estimating, calculating or assessing whether an objective has been achieved. It usually involves finding a way to quantify or put a number to an objective. For example, imagine that one organisational objective is ‘to increase profit’. A possible performance measure would nominate the amount of the increase and the time period in which it is to be accomplished, say $10 000 in one year. This performance measure has added a quantity to the objective, and has also made it easy to determine whether it has been reached or not.
Conclusion
This article has explored sport marketing over four levels. The most fundamental level describes the philosophy of sport marketing. to satisfy the needs of sport consumers. One of the features that makes sport marketing unique is the range and diversity of sport consumers’ needs. Not only can sport products be offered in the form of goods and services, but sport itself can be both the target of marketing and a vehicle for marketing. Furthermore, sport consumers may be involved personally in the delivery of sport products, such as with sporting competitions, or may be passive recipients of an experience, such as spectators at a sporting contest. At the next level, we find the process of sport marketing where this text has reviewed and explained the four stages of the Sport Marketing Framework. Stage one requires the identification of sport marketing opportunities. This is achieved through the assessment of the internal and external environment, the sport organisation, and the sport market and its consumers. After this information has been collected and analysed, it is possible to undertake stage two of the Sport Marketing Framework, and develop a sport marketing strategy. To construct a sport marketing strategy, sport marketers must make a series of decisions about the direction of the marketing programme, culminating in the formulation of marketing objectives and performance measures. At the third and fourth levels of sport marketing are principles and tools, respectively. The principles of sport marketing represent the general rules and guidelines of good practice, while the tools of sport marketing are techniques that can be used to execute the principles.
Reference:
Smith, A., (2008). Introduction To Sports Business Management. Oxford,UK: Elsevier Ltd.