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SC SPTE 380 - The Special Nature of Sports Marketing Chapter 1

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SPTE 380 Lecture 1Current Lecture- Chapter 1 The Special Nature of Sport Marketinga. Objectives• To understand the market forces that create the need for enlightened marketing strategies in the sport industry• To understand marketing myopia and other obstacles to successful marketing strategy• To recognize the components of the sport product and the sport industry• To recognize factors that demand a different approach to the marketing of sportb. Key Ingredients of a Successful Sport Branding Effort• Stickiness of an idea: How does brand capture fans’ imagination?• Reach of brand: How far does influence of brand extend?• Social identity: Do different segments of the population relate to the brand in a personal way• Media interest: Are members of the media captivated in some way by theinfluence of a brand? • Monetization and marketing metrics: Can marketers put a number on brand’s value or success?c. Global Marketing Strategy- Growth of North American professional sport leagues is a global phenomenon.• Building sport participation has been a key tool in marketing sport brands on the international stage.• EXAMPLE: THE NBA AND JEREMY LIN (MARKETING PARABLE). DAVID STERN, THE COMMISSIONER OF THE NBA IN 1984 USED PRODUCT RECOGNITION AND GOT NBA TELEVISED AND BROADCASTED. HE GOT PLAYERS AND COACHES TO AGREE ON SALARY CAPS AND REVENUE SHARING. [PG. 5]d. Weathering Recessions- examples: economic booms or busts [pg.6]• Sport marketing has been affected by prevailing economic conditions.• Recessions have a major effect on sport brands:• The 1990s saw fans decrease identity with major league sports.• Sport venue construction decreased during the 1990s.• Significant MLB attendance drops occurred in 2002 and 2009.• Several major corporate sponsors reduced spending in the early 2000s.- Competitive Marketplace- “small piece of the economic pie” [pg.8]These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.- Leisure spending on spectator sports has decreased in the United States.• Expansion of sport entertainment and participation options creates greater marketplace competition.• Maintaining market share can be difficult for sport products.• Popularity of some sports, such as action sports, is plateauing or declining. - Media Challenges- benefitted from media technology [pg. 10]a. The way that fans consume sport has evolved considerably, particularly with the explosion of new technology such as social media, mobile devices, and high-definition televisions.b. Popularity of newspapers is in sharp decline.c. Sport and media organizations must adapt to new means of reaching consumers.- Grassroots Stressa. EXAMPLE: [PG 11] HIGH SCHOOL ATHLETIC TIMES WERE TOUGH. ANDERSON HIGH SCHOOL CASE STUDY AND THE WIGWAM. - Shifting economy and pressure on tax revenue spending have clearly affected high school sports.- High school sport participation and spectator attendance play significant roles in sport popularity.- Sport Marketing Defineda. SPORTS MARKETING WAS COINED BY ADVERTISING AGE IN 1979 TO DESCRIBE ACTIVITIES OF CONSUMER AND INDUSTRIAL PRODUCT [PG 13]- All activities are designed to meet the wants and needs of sport consumers through an exchange process.- Sport consumers are involved in sport through playing, officiating, watching, listening, reading, and collecting.- Two Major Thrusts of Sport Marketing1. The marketing of sport products to the sport consumer2. The marketing of sport and non-sport products through sport- Marketing Myopia- NEEDS AND WANTS OF THE SPORTS CONSUMER. THEODORE LEVITT ESTABLISHED MARKETING MYOPIA [PG 13]- STANDARDS INVOLVING MARKETING MYOPIA:- Focus on producing and selling goods and services rather than on identifying and satisfying the needs and wants of consumers and their marketso Do not focus so much on closing the sale. Membership retention is key- Belief that winning absolves all other sins o Winning does not guarantee a rise in attendance- Confusion between promotions and marketing o Promotion- only one part of the marketing mix or strategy; knowing consumers wants and needs.- Ignorance of competition inside and outside sport o Notice competitive trends and use them for your advantageo Ex: The Atlanta Hawks using ads at movie theatres.- Short-sighted focus on quick-return price hikes or investments such as sponsorships rather than long-term investments in research and in relationship marketing- Poor-quality researcho Beyond the surveys and names and addresses.- Poor sales and serviceo A recent development in sports marketing in the last couple decades.- Arrogance and laziness- Failure to adapt to industry, market, and consumer change o Adaptation is vital, as well as new technology and media counterparts.VIII. Change in the Sport Marketing Profession- dates all the way back to ancient Rome. - Sport marketing pioneers paving the wayo Bill Veeck, Tex Rickard, Mark McCormack, Don Canham, David Stern- Improvements in sales training and methodology- Institutionalized sport marketing knowledge and training- Broadening diversityIX. Uniqueness of Sport Marketing- Sport product- Sport marketplace- Sport finance- Sport promotionX. Sport Product- Any bundle or combination of qualities, processes, and capabilities (goods, services, or ideas) that a sport consumer expects will deliver want satisfaction. - Sport marketers must understand why consumers make consumption decisions.- Figure 1.1XI. Why Sport Product Is Unique- An intangible, ephemeral, experiential, and subjective nature- Strong personal and emotional identification- Simultaneous production and consumption- Dependence on social facilitation- Inconsistency and unpredictability - Core product beyond marketers’ controlXII. Why Sport Marketplace Is Unique- Many sport organizations simultaneously compete and cooperate.- Demand tends to fluctuate widely.- Sport has an almost universal appeal and pervades all elements of life.XIII. Why Sport Finance Is Unique- Pricing the individual sport product unit by traditional job costing is difficult.- The price of the sport product itself is invariably quite small in comparison with the total cost paid by the consumer.- Indirect revenues are frequently greater than direct operating revenues.XIV.Why Sport Promotion Is Unique- Widespread media


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