5 ps of sports marketing

Marketing definition:​ communicate and deliver value to customers in from managing customer relations ways of benefit the organization to stakeholders

● Central to Sport Marketing

What is Sports Marketing?

● Important to understand in the context of the business of sport marketing ● The sports industry is big and it's a billion-dollar industry (refer to reading)

○ One of the ways to characterize the sport industry ● What is the different kinds of products of the industry (refer to the sports industry segment model)

○ Talking about any product and services people offered to the consumers in the form of sports physical activity, recreation, health

○ First-level​: performance, production, promotion ■ Sport​ performance​ segment:​ Sport performance is offered to the consumer as

participation (spectator) products or the actual athletes

■ Sports ​production​ segment:​ all those products needed and necessary to produce or influence equality sports performance so whether they be out for outfitting

■ E.g Nike or Adidas are performance production products ■ Sports ​promotion​ segment:​ products offered as tools to promote a sport product

***Model is changing as the industry changes***

● Sports Marketing definition​:​ any experience or business enterprise focused on fitness, recreation, athletics & leisure

○ Sports consumers are fans (both spectators and/or participants) ■ Grassroots​ - an initiative for sports referees for amateurs

● Many ways you can consume sports ● Trade-in sports magazines (socially & imprint) ● Increase in leisure time ● Increase of mass media offerings looking for new content ● The sporting goods sector is growing

○ E.g. Mountain Equipment Co-op ■ Just sold to a creditor in the United States in the last 24 hours so those specialty stores

in the retail are changing

■ All moving online so that's all an important component ● Over the last 20-25 years, the NBA is a great case

○ The role of marketing has been central/pivotal to organizations doing it right and growing in a very healthy way with our consumers

○ First organizations to come early out of the gate and say “we are going to be a successful sport if we embrace our marketing which was communication, promotions, marketing

○ Refer to Mission chart on D2L

What is Sports Marketing? ​Sports Marketing is all those activities designed to meet the needs and wants of sports consumers through the exchange process. ​The exchange process​ is the time and revenue you give them in return as a sport organization

● The role of the sport consumer (fan) is changing

● Key piece of the definition of Sport Marketing ○ Being this communication function & all these activities for the consumer

■ Two major thrusts: ■ The marketing ​OF​ sports​ products & services directly to the consumers of sport ■ The marketing of other products or services ​THROUGH​ the use of sports

■ E.g If marketing for the Raptors, it also includes marketing through sports or directly to the consumer through the use of sports

■ Coca-Cola is engaged in Sports Marketing by using sports as a tool to sell their goods and services because of a ​shared consumer profile and shared consumer identified segments

■ Pizza Pizza - every time they get over a hundred points -- you get a free pizza!

○ Sports Marketing is fundamentally about selling tickets ■ Stadium naming-rights - Scotiabank Arena putting their name on the Air Canada Centre

Marketing Myopia​:​ when sports organizations concentrate on producing & selling rather than identifying & satisfying the needs of their consumers

● Only thinking about selling but not building a long-term relationship

What Makes Sports Marketing Unique?

● Many organizations will simultaneously compete & cooperate at the same time ○ E.g. Leaf's & Raptors compete with each other on the field but are within the same league ○ Team Marketing Assets - Leaf's & Raptors competed against each other for consumers by the

same property

● Experts consumers ○ E.g. Paint your face/buy clothing that supports your team is a unique consumer​ segments/profile ○ Many partnerships (will be in the same room together, having meetings about what's best

practices for the NBA marketing team but then all try to compete with each other)

● Intangible product offering ○ Similar to the media/entertainment industry (go see the product) ○ Sports marketers - responsible for the extensions of the product which is merchandising

■ E.g OVO Partnerships: good creative partnership

Sports Marketing Mix:​ 1) Place 2) Price 3) Public Relations 4) Promotion 5) Products ● different than traditional 4 P's ● person personality-driven industry (includes CSR & publicity features)

Implementing a Sports Marketing Program: The Marketing Management Process (MMP)

● Used to develop marketing plans ● Integrated into the organization's larger strategic plan(s) ● Emphasizes interdependencies at all stages (the backbone of marketing) ● A continual Feedback loop (goes horizontally) - how does that work?

○ Redefining & reassessing

The Marketing Management Process (MMP) in Sport Model

● 1st segment - tactics ○ The core area of marketing strategy

1. How we want to approach when to approach…

○ Elements in the marketing mix 1. 5 P's: PR, Product, Price, Promotion, Place

○ Feedback & evaluation 1. How to make the current plan better?

● 2nd segment - strategic components ○ 5 main steps

1. Analyze the market & organization

■ "What is our business" ■ SWOT Analysis:​ careful analysis of the strengths & weaknesses of the

organization, and the opportunities & threats in the marketplace or

beyond

■ Marketing Information Systems ■ How to get data about customers, fans, clients

2. Clarify the mission and objectives of your company

■ Constantly assess assumptions about: ■ The environment ■ Organizational mission ■ The core competencies required

3. Develop a marketing mix & plan

■ Market segmentation:​ determining key targets (niche markets) ■ How do you reach these markets effectively?

■ The escalator:​ developing your market ■ What is your target market?

■ Product development & positioning ■ The Sports Marketing Mix (5 Ps)

■ E.g. athlete activism 4. Integrate marketing plan into broader organizational strategy (e.g. finance)

■ Coordinating the marketing effort ■ e.g. We The North Toronto - Raptors

5. Control & evaluate all elements of the plan

■ Consumer satisfaction = product benefits - cost

Frequency Escalator (CHART)

● Allows us to understand there 3 main consumers of sports marketing: ● Goal​: move fans up the escalator (from light --> heavy users)

○ Light users ○ Medium users ○ Heavy users (seasoned ticket holders)

Studies of Sport Consumer

Who is the sport consumer? + Why do people consume sport?

● Questions that sports marketers ask consumers

● Types of databases available for analysis ● Strengths & weaknesses of related issues

Frequency & scope of consumer studies

● Irregular, limited (commissioned, 1-time, demographic, consumption, attitudes) ● Irregular, broad (populations) ● Regular, limited (large scale trends, annual statistics) ● Regular, broad (national) ● Indexes (market comparisons)

Reading sport consumer studies

● Definitions (what constitutes a fan or participant) ● Methodologies (interviews, observations, data collection) ● Sampling (random, stratified)

○ Definitions: ■ Involvement & Commitment (simple awareness, interest) ■ Participation (frequent, core, expert) ■ Multiple measures

■ Most effective research on the sport consumer employs clearly defined, multiple measures of involvement & commitment

■ Consistent samples & methods ■ Representative samples

Perspectives in Sport Consumer Behavior (Why do people consume sport)

● Key factors (tell HOW and TO WHAT EXTENT people are involved with & committed to sport): ○ Socialization (process)

■ Individuals​ assimilate/​integrate​ & ​develop​ the ​skills​, ​knowledge​, ​attitudes​, & other equipment necessary to ​perform​ various ​social roles

■ 2-way interaction (involvement) between ​individual​ and ​environment ○ Involvement

■ Behavioural​: hands-on doing ■ Cognitive:​ acquisition (obtaining) of information & knowledge about a sport ■ Affective​: attitudes, feelings, & emotions that a consumer has toward an

activity

○ Commitment

■ Frequency, duration, & intensity of involvement in sport, or willingness to spend money

Consumer Behavior in Sports Model: Complex Dynamic of Sport Consumers

Environmental Factors

● Significant others ○ Parents, peers

● Cultural norms & values ○ Alternative systems

■ Ethnic & regional subcultural ● Class, race, & gender relations

○ Access to rewards & prestige, availability ● Climatic & geographic conditions ● Market behaviour of sport firms

○ Composition of the marketing mix - 5 P's ● The sports involvement/opportunity structure grid

Individual Factors (How a consumer makes sense of the sports world)

● Self-concept ○ Self-image, perceived, desired, reference

● Stages in life/family circle ● Physical characteristics

○ Real & perceived ● Learning

○ Feel-do-learn vs. Learn-feel-do ● Information perception

○ Facility, risk ● Motivation

○ Achievement, affiliation, health & fitness, fun & entertainment ● Attitude

○ DON'T​ always trigger positive behaviour: lock-in the consumer

Factors Influencing Attendance

● Fan Motivation ○ Self-enhancement ○ Diversion from everyday life ○ Entertainment value ○ Economic value ○ Aesthetic value ○ Need for affiliation ○ Family ties

● Game attractiveness

● Economic ● Competitive ● Demographic ● Stadium 'sport-scape' ● Value of sport to the community ● Sports involvement ● Fan identification

The Role Research in Sport Marketing

Market Research:

● An information based approach to marketing sport ○ Determining the type of MIS system to use depends on these factors:

■ Size & geographic dispersion of market ■ Availability of data ■ Budget ■ Organizational leadership style & vision

Characteristics of an Ideal MIS

● Centralization

● Integrated databases ● Retrieve-ability ● Multiple users & simultaneous access

Marketing Questions for Sport Organizations

Market Segmentation

Key Concept:

● Creates the bridge between managerial analysis & managerial action Defined:

● Process of dividing a large, heterogeneous market into more homogeneous groups who have similar wants, needs, or demographic profiles to better target a product

Issues to Consider when Choosing to Segment a Market

● Identifiably ○ Size & purchasing power

● Accessibility ○ Individually/collectively

● Responsiveness ○ Will the product match the wants, worthwhile Insignificance

Segment vs. Niche

● Niches arise from the sport market ● Segments are imposed on the sport market

Bases of Segmentation

● Demographics:​ state of being ○ Geographic (proximity, geo cluster, outer rims) ○ Income ○ Age ○ Gender ○ Race & ethnicity

● Psychographics:​ state of mind

○ Consumers divided by personality traits ■ Lifestyle characteristics (attitudes, interests, opinions) ■ Preferences & perceptions ■ Segments of the adult population (actualizers, achievers, believers,

experiencers, strivers, strugglers)

● Product usage ○ 80% of marketing consumption from 20% of the consumers ​(80-20 rule) ○ Not all consumers consume at the same rate ○ Levels of consumptions & usage rates vary from sport to sport, age group to age group,

reflecting life cycle pattern

○ Essential for sports marketers to maintain opportunities for consumers at each level ● Product benefits

○ Assessing benefits sought by consumers through sport consumption ○ Motivational factors include affiliation, achievement, status, health, fitness