Sports Marketing Exam 1- MKT 321

Corporate-Level Strategy

3 types of decisions: 1. Top managers must determine in which markets they want to compete. 2. Enhancing the performance within each of the chose markets. Top managers constantly need to monitor the mix of markets in which the organization competes. 3. Establishing investment priorities and placing organizational resources into the most attractive markets.

Marketing Exchange process

A marketing transaction in which the buyer gives something of value to the seller in return for goods or services. Several conditions must first be satisfied: There must be at least two parties Each party must have something of value to offer the other There must be a means of communication between the two or more parties Each party must be free to accept or decline the offer Each party must believe it is desirable to deal with the other(s).

Examining Marketing Goals

-Suitability: marketing goals must follow the direction of the organization and support the organization's business vision and mission. -Measurability: The marketing goals must be evaluated over a specific timeframe. -Feasibility: Marketing goals should be within the scope of what the organization can accomplish, given its resources. -Adaptability: Marketing goals must be agreed upon by all levels within the organization. Top mgt must feel that the goals are moving the organization in the desired direction; middle managers and first-line supervisors must feel the goals are achievable within the specified timeframe. -Flexibility: Marketing goals must not be too rigid, given uncontrollable or temporary situational factors. Especially true when adopting the contingency framework. -Motivating: Marketing goals must be reachable but challenging. If goals are too easy or hard, then they will not direction behavior toward their fulfillment. -Understandability: Goals should be stated in terms that are clear and simple. -Commitment: Employees within the sports marketing organization should feel that it is their responsibility to ensure goals are achieved. Managers must empower employees. -People Participation: All employees should be allowed to participate in the development of goals. -Linkage: Goals must be developed with an eye toward achieving the broader organizational objectives.

Marketing Research Process

1. Define problem or opportunity 2. Choose research design type 3. Identify data collection methods 4. Design data collection forms 5. Design the sample 6. Collecting, analyzing, and interpreting 7. Preparing the research report

Define a Problem or opportunity

1st step in marketing research process. What problem are we trying to solve (low ticket sales, declining fan base, declining sponsors etc) Researcher meets with client to gather as much information as possible to better understand the need for the research. Typical data gathered includes: Brand review/history of organization Review of past research Outline of what information the organization wants Define target audience Expectations on timing and budgets Research Objective: Describes the various types of information needed to address the problem: Rank the most desirable attributes preferred by sponsors Determine the trends in fan spending Research Proposal: Blueprint that captures all points above (Research Design and Objective)

Choosing a Research Design Type

2nd step in marketing research process. Research Design: The framework for a study that collects and analyses data (three types) Exploratory: Used when the research problem isn't clear i.e. ticket sales are down (but we don't know why) Descriptive: Used when research problem is clearer, answers who, what, where, when, and how often i.e. what are the demographics of the average fan? Casual: Used when problem is clearly defined. Examines the relationship between two variables. Is a change in the independent variable correlated to a change in another (dependent) variable) i.e. if we drop the price by $20, how many more tickets will we sale

Identifying a Data Collection Method/Technique

3rd step in marketing research process. Two types Primary Data: -Quantitative; -Qualitative (Meanings Beyond Measure) Techniques that allow interpretation of marketing phenomena without depending on numerical measurement...data is textual, visual or oral. Research objective is an understanding some phenomena in great detail and in much depth. -Types: In Depth Interviews Consumer Immersion Ethnography Focus Groups 6 - 10 people Moderator -Myths: Easy Not empirical Secondary Data gathered for the specific research question Sources of SecondaryData Government Reports Marketing Research Firms Nielsen Scarborough Standardized Sports Marketing Information Studies ESPN Sports Poll Sports Business Research Network Trade and Industry Associations NASCAR, NFL, NCAA North American Society of Sports Management Women's Sports Foundation

Sports Marketing Mix

4 Ps: Product, Price, Placement, Promotion

Design data collection forms

4th step in marketing research process. Interview Guides Surveys How to administer What questions will be asked Exact wording of questions Not ambiguous Do you work out regularly? No double barreled questions: Do you like playing and watching football? No use of technical words or jargon Do you think that the NFL has reached a state of marketing myopia? Determining Question Sequence Determine Look and Length Pretest the Questionnaire

Design the sample

5th step in marketing research process. Samples and probability cards.

Collecting and Analyzing the Data

6th step in marketing research process. Qual: -Data assembly: Field notes, interview notes -Data reduction: Organizing and structuring of qualitative data; coding data: breaking down qualitative data to discrete chunks and attaching a label to those chunks of data -data display: Summarizing and presenting the structure that is seen in collected qualitative data Quan: Independent sample t-test: Used when means need to be compared that are not from independent samples Paired sample t-test: Used when means need to be compared that are from independent samples Regression: Predicts or explains a casual relationship between variables

Preparing and Presenting the Report

7th and final step of marketing research process. Concise statement of the research objectives Explanation of research design Summary of major findings Conclusion with recommendations

Environmental Scanning

A firm's attempt to continually acquire information on events occurring outside the organization so it can identify and interpret potential trends.

Sports Product

A good, a service, or any combination of the two that is designed to provide benefits to a sports spectator, participant or sponsor.

Contingency Strategy

A marketing plan that has been developed as the blue print of marketers approach to avoid impending crisis. It asked the questions: What do I do when the unthinkable becomes the unquestionable? Sports marketers need to be prepared for either positive or negative changes in the environment. If all marketing plans should be flexible why is this any different? Traditional marketing plans are normally altered or changed based on: A competitors actions A new trend or advancement in technology Increase or decline in the market place (new markets, surplus of material, increased demand) THINGS WE SHOULD BE ABLE TO FORECASTED TO SOME DEGREE The Manufactures and Machines as well as the products themselves are very different

Licensing

A practice whereby a sports marketer contracts with other companies to use a brand name, logo, symbol or characters.

Responsiveness

Acting on the information gathered to make market decisions such as designing new products and services and developing promotions that appeal to consumers.

Participant Consumption Behavior

Actions performed when searching for, participating in, and evaluating the sports activities that consumers feel will satisfy their needs and desires.

Sports

An event in which participants show a high level of athletic skill in their attempts to compete with themselves, others, animals and/or the laws of nature in a format where there is a set objective of winning and a clearly defined winner. _____ differentiates from games in the sense that success requires both physical and mental dominance and an internal desire to win, whereas games rely more on mental abilities or chance.

Intelligence Generation

Analyzing and anticipating consumer demand, monitoring the external environment, and coordinating use of marketing.

Competition

Any organization or body that is serving a similar consumer. Direct ______: Between sellers or similar products and services (High school Basket Ball vs. the NBA in Indiana) Indirect ______: Between sellers that compete for the same share of a consumers disposable income Substitute Products: Programs or products that consumers may choose to use to substitute your product: (Watching a game on TV instead of attending)

Agents

Are intermediaries whose primary responsibility is leveraging athletes' worth or determining their bargaining power. Another important intermediary in bringing the athlete to the consumer.

Sports Equipment Manufacturers

Are responsible for producing and sometimes marketing sports equipment used by consumers who are participating in sports at all different levels of competition.

Customers

Corporations, individuals, and media (both with and without sponsorship agreements) that leverage sports equities to attract that sports' consumer. (Target selling sports video games)

Professional Sports

Commonly classified by minor league or major league status.

Environmental Contingencies

Competition Technology Cultural/Social Trends Physical Environment Regulatory/Legal/Political Demographic Trends Economy

Simplified Model of the Consumer-Supplier Relationship

Consumers (spectators, participants, corporate or business) -> Products (events, sporting goods, personal training for sport, sports info) -> Producers and Intermediaries (Ownership, sanction bodies, sponsors, media, agents, equipment manufactures)

Participants

Consumers being active in a variety of sports at a variety of competitive levels. (Organized vs. unorganized)

Spectators

Consumers who derive their benefit from the observation of the event.

External Contingencies

Defined as all influences outside the organization that can affect the organization's strategic marketing process. Include factors such as: competition, regulatory and political issues, demographic trends, technology, culture and values, and the physical environment.

Sports Marketing Mix

Defined as the coordinated set of elements that sports organizations use to meet their marketing objectives and satisfy consumer's needs.

Marketing Myopia

Described as the practice of defining a business in terms of goods and services rather than in terms of the benefits sought by customers.

Types of Marketing Research

Descriptive: Gathering and presenting factual statements Exploratory/Diagnostic: Explaining a phenomena Casual/Predictive: "How are variables related? What if?" Basic marketing research Conducted without a specific decision in mind that usually does not address the needs of a specific organization. Attempts to expand the limits of marketing knowledge in general. Not aimed at solving a pragmatic problem. Further understanding endorsements effect on consumers Understanding the effect of color in stores

Control Phase (THE STRATEGIC MARKETING PROCESS)

Evaluation of the response to the plans to determine their effectiveness. Sales Analysis Profitability Analysis Customer Satisfaction Marketing Audit

Understanding Spectators as Consumers

Examining the differences Sometimes there is between consumers as specters and participants: Just because a consumer watches an event does not mean they will participate in it. There are not only differences in spectator and participants but differences between spectators at different levels of the same sport College vs. Pro Football and basketball Examining the differences Heavy Participants - More likely to be male, better educated, more minorities, and younger than spectators

Types of Decisions

Extensive Problem Solving Customer travels through all steps of the problem solving process Habitual Problem Solving Problem solving occurs with only a limited internal search Tracy jogs every morning, when she wakes up she automatically determines to jog again today Limited Problem Solving Normally includes internal search and a limited external search Joe is asked at the last minute if he can join the guys in sales at this weekend's golf tournament Andrew is asked if he would like to register to run in the communities 5K Race for the Cure

Situational Factors

Factors within a particular time and place that influence sports participation: Physical Surroundings: Weather and physical aspects of the environment Snowing Surfing Social Surroundings: Who we are with may have a positive or negative impact on participation decisions Time: Lack of leisure time reduces participation in sports Task Definition: Special occasion or situational reason may dictate participation as well as level of preparation/spending Softball at a company picnic Scuba diving on vacation

Factors Influencing Attendance

Fan Motivation Factors Game Attractiveness Factors Economic Factors Competitive Factors Demographic Factors Stadium Factors Value to the Community Sports Involvement Fan Identification

Nonprobability Sampling

Has three commonly used sampling techniques: Convenience sampling: (aka accidental sampling) sample units are chosen based on the convenience of the researcher. Ex: Research project could be conducted to asses fans attitudes toward high school soccer in a large metro area. Questionnaires could be handed out to fans attending Friday night games at three different schools Individuals are easy to reach but may not be representative of the population of interest. Judgement Sample: participants chosen subjectively and based on the judgment of the researcher best serve the purpose of the study. Quota sampling: Units are chosen on the basis of some control characteristics or characteristics of interest to the researcher.

Social Learning

Ideas formed via witnessing how others are rewarded or punished We may choose to participate based on watching friends, family or heroes and how their behavior is rewarded or punished. This observation, to a large extent, dictates what sports we choose to participate in at an early age. Watching older siblings or sports heroes like LeBron James play basketball may influence others to participate in that sport

Sports Product Map

Illustrates the multidimensional nature of sports products using two dimensions: goods-services and body-mind.

Services

Intangible, nonphysical products. (sporting event or ice skating lesson)

Final Report

Last step in marketing research process. Intended for top mgt of the sports organization. Guidelines: Know your audience, be through but not overwhelming, carefully interpret the findings.

Learning

Learning is the relative permanent change in response tendencies based on experience. This psychological factor affects participants decisions. Consumers gather information and learn about participating in sports in a number of ways. Three are highlighted here: Behavioral Learning Social Learning Cognitive Learning

Cognitive Learning

Learning via problem solving or insight Karen realizes that she must eat right, exercise and use resistance training in order to reach her goal of making the gymnastics team.

Economy

Macro : Gross National Product: Measurement of the flow of goods and services between producers and consumers. Directly tied to the four stage of the business cycle: Prosperity, Recession, Depression, and Recovery. Each phase of the cycle influence variables such as unemployment, inflation, and thus consumers willingness to spend Micro: Smaller elements that contribute to the Micro Economy such as consumer's income level or industry specific variables

Planning Phase (THE STRATEGIC MARKETING PROCESS)

Most critical phase; begins with understanding the consumers of sport through marketing research and identifying consumer wants and needs. STEP 1: UNDERSTANDING CONSUMERS' NEEDS (Not just who the consumer is but where they live, what is important to them and the how, where and when to communicate with them) 1. Marketing Research a) Competitive landscape b) SWOT Analysis 2. Consumers as Participants 3. Consumers as Spectators STEP 2: MARKET SELECTION DECISIONS 1. Segmentation: Grouping consumer based on commonalities - Demographics - Geographic's - etc 2. Target Markets: Defining what segments will best satisfy your marketing goals 3. Positioning: How do you fix the sport/product in the minds of the consumer STEP 3: MARKETING MIX: The Four P's... Activities- Organizing Leadership and Interaction Resource Acquisition and Allocation Coordination and Timing of Activities Information Management

Implementation Phase (THE STRATEGIC MARKETING PROCESS)

Once planning phase is complete, plans are executed in this stage. Decisions such as who will cary out the plans, when the plans will be executed, and how the lans will be executed are addressed. The Four P's Activities phase- Organizing Leadership and Interaction Resource Acquisition and Allocation Coordination and Timing of Activities Information Management

Marketing Objectives

Organizational Objectives - Signposts along the road which help an organization focus on its long-range purpose stated in the mission statement Typically include both financial and strategic dimensions -Financial include: growth in revenues ROI and growth in profits -Strategic include: enhance corporate image and increase customer satisfaction -Must be: Measureable Realistic Challenging

Internal Contingencies

Organizational Vision Organizational Mission Organizational Objectives & Marketing Goals Organizational Strategy Organizational Culture

Manufactures and Machines of sports

Owners Sectioning Bodies Corporations or Business Agents Equipment Manufactures Special Interest Group Athletes/Players

Abbreviated Research Proposal

PROBLEM STATEMENT RESEARCH OBJECTIVES METHODOLOGY Sample Procedures DATA COLLECTION INSTRUMENT

Why Do People Participate in Sports?

Personal Improvement Better health, sense of accomplishment, develop positive values, etc. Sport Appreciation Enjoy the game and competition Social Facilitation Spend time with others, feel like part of a group

Demographics

Population Trends Size and growth of a population Age Shifts in Ethnic Groups

Decision-Making Process

Problem Recognition Information Search Alternative Evaluation Participate Post-Participation Evaluation

Sports Information

Products that provide consumers with news, statistics, schedules, and stories about sports.

Contrasting Qualitative and Quantitative

Qual- Discover ideas, exploratory general questions Observe and interpret Unstructured, free form data collection Textual, visual or oral data type Results are subjective Small samples, natural settings Exploratory designs Quan- Test hypotheses or specific questions Measure and test Structured response categories provided Numeric data Research are objective Large samples, generalizability Descriptive and causal research designs.

Understanding Spectators as Consumers: What do fans value?

Reasonably priced parking ($8) and tickets ($25) Adequate parking/access Reasonably priced foods Home team with a winning record Close score Home team star regarded as top 10 player Reasonably priced souvenirs Game that ends in less than three hours Wide variety of snack foods

Projective Techniques

Refer to any of a variety of methods that allow respondents to project their feelings, beliefs or motivations onto a relatively neutral stimulus.

Amateur sporting events

Refer to sporting competitions for athletes who do not receive compensation for playing the sport. Include recreational youth sports at the instructional and elite levels, high school sports controlled at the state level through leagues, intercollegiate sports and adult community-based recreational sports.

Organized sporting events

Refer to sporting competitions that are sanctioned and controlled by an authority such as a league, association, or sanctioning body. There are two types of participants: amateur and professional.

Fan Identification

Related to sport involvement Defined as the personal commitment and emotional involvement customers have with a sports organization Level of fan identification: Low (social); Medium (focused); High (vested) Sports marketers want to build high levels of fan identification Why do we want high identification? Higher attendance,decreased price sensitivity, decreased performance-outcome sensitivity What affects Fan Identification Winning team Value for the dollar Team and player community involvement Team and player values such as loyalty to the community, city, fan i.e. Florida Marlins won the 1997 world series, fan identification should have been high, however the owner announced that he may sell the team and trade several key players so fan affiliation was very low Level of fan identification: Low: Attend for social reasons Medium (focused): May be short term, may only be vested while the team is winning. Focus will shift if the team is having a bad year or a key player is traded High: Vested fan with long term commitment to a team, sport or player. They will recruit other fans and follow the team regardless of the outcome. Are more financially invested in being fans, will attend home an away games.

Sporting Goods

Represent tangible products that are manufactured, distributed and marketed within the sports industry.

Producers and Intermediaries

Represent the manufactures of sports products or the organizations that perform some function in the marketing of sports products.

Fan Motivation Factors

Self-Esteem Enhancement BIRGing: Basking in Reflected Glory CORFing: Cutting off Reflected Failure Diversion from everyday life Entertainment Value Eustress (Positive Stress) Economic Value (gambling) Aesthetic Value (the art of the game) Need for Affiliation (needing to belong) Family Ties

Marketing Orientation

Setting marketing goals and defining strategies to achieve business goals by concentrating on consumers and providing a sports product that meets the consumers need.

Sociological Factors

Several external factors influence individuals participation in sports: Culture: A learned set of values, beliefs, languages and traditions shared by a set of people that are passed down from generation to generation. Reference Groups: People who influence our emotions, attitudes and behaviors. Family: Family influence determines sports participation. Social Class: Homogeneous division of people in a society that share similar lifestyles and behaviors that can be categorized.

Cultural and Social Trends

Shared values, beliefs, languages, symbols, and tradition passed on from generation to generation

Intelligence Dissemination

Sharing the information gathered in the intelligence stage.

Organizational Objectives

Signposts along the road which help an organization focus on its long-range purpose stated in the mission statement. Typically include both financial and strategic dimensions: -Financial include: growth in revenues ROI and growth in profits -Strategic include: enhance corporate image and increase customer satisfaction

Designing A Questionnaire

Specify Information Requirements Determine Method of Administration Determine Content of Questions Determine Form of Response Determine Exact Wording of Questions Determine Question Sequence Pretest and Revise if Necessary

Types of Participants

Spectators who attend the event Spectators that consume the event via some medium (TV, radio, internet)

Unorganized sports

Sporting activities people engage in that are not sanctioned or controlled by some external authority.

Sport Involvement

Sports Involvement: Perceived interest and personal importance of sports to spectators (both attending or consuming via some medium) Two dimensions of sport involvement: Importance of Sport and Affect (feelings) High involvement consumers attend more games, consume more sports through media such as newspapers, Internet, magazines, and are more likely to identify sponsors

Political, legal and regulatory environment

Sports marketers must fully understand and navigate the political and ethical landscape to successfully achieve their goals Politicians are involved in promoting or deterring passage of stadium tax issues

Benefits

Sports marketers sell their products based on the ____________ the products offer to consumers. Products can be described as a bundle of _____. Examples: Monetary Ability to reach a desired audience Entertainment and emotional connections

Evaluation of Alternatives

Step 3 in decision making process. Evoke Set: The options that are given the greatest consideration Evaluation Criteria: The features and characteristics used to evaluate the evoke set Why is this important? Marketers must ensure that their product is in the evoke set ; consumers must be aware of us. Marketers must develop strategies to meet the needs of the evaluation criteria.

Participation

Step 4 in decision making process. Participation: Actual purchase and involvement in the sport Marketers need to anticipate additional products and support services

Probability Sampling

Stronger of the sampling techniques. The sample is chosen from a list of elements called a sampling frame. Ex: If students at a high school define the population of interest, the sampling frame might be the student directory. The sample would then be chosen objectively from the list of elements.

Marketing Research

Systematic process of collecting, analyzing, and interpreting data to reduce the risk in decision making. Needed when: Where there is a high level of uncertainty.  When value of research information exceeds the cost of generating the information

Sports sponsorship

The consumer (in most cases a business) is exchanging money or product for the right to associate its name or product with a sporting event.

Vision Statements

The long term road map of where the organization is headed: Where the organization plans to go from here What business do we want to be in What customer needs do we plan to satisfy What capabilities are required for the future

Sporting Event

The primary product of the sports industry referring to the competition, which is needed to produce all the related products in the sports industry.

Strategic Sports Marketing Process

The process of planning, implementing, and controlling marketing efforts to meet organizational goals and satisfy consumer's needs.

Concomitant Variation

The second criterion for causality to show cause-and-effect relationships involves the extent to which the cause and the effect vary together. Ex: Advertising expenditures are increased, then season ticket sales should increase at the same rate.

Sports Marketing

The specific application of marketing principles and processes to sports products and to the marketing of nonsports products through association with sport.

Psychology of Internal Factors

There are several factors, unique to each individual, that guide participation in sports: Personality: A set of consistent responses a person makes to the environment Perception: The complex process of selecting, organizing and interpreting stimuli/data Attitudes: Learned thoughts or behaviors Motivation: Internal force that directs behavior Learning: A permanent change in response due to the effects of experience

Personal Training

These products are produced to benefit participants in sports at all levels and include fitness centers, health services, sports camps, and instruction.

Organizational Mission

Written statement about the organization's present situation and the direction of the organization (what business we are in, who we serve, and how do we server them). Ex: The Green Bay Packers' ______ is to be a dominating force in professional football's competitive arena -On the field, the Packers will continually strive to present their fans with the highest level of performance quality available. -In their operating activities and relations with the NFL, the Packers will also continually strive for excellence in the quality of work performed. -Overall, the Packers will commit themselves to doing their part in representing the state of Wisconsin with competitiveness, respect, and dignity.

Technology

_________ has changed the way sports marketers communicate information to fans/consumers: Internet View sports Purchase tickets Obtain information

contingency framework

a framework that is suited to the sports industry because it is flexible and adaptable to changes in the marketing environment

Physical Environments

define sports marketing. Geographical location defines the popular sporting event of that location

Problem Recognition

step 1 in decision making process. Awareness of a discrepancy between a desired state and an actual state that is large and important enough to activate a decision making process The desire to resolve the problem is dependent on Magnitude of the discrepancy Importance of the problem Why is this important to marketers? Marketers want to identify the actual and desired states so that we can: Profitably solves the problem In some cases to increase the value, ease or importance of the solution

Information Search

step 2 in decision making process. Participants seeks relevant information that will help resolve the problem: Internal sources: Information called upon form personal past experiences or memories External sources Personal Sources: Information provided by family or friends Marketing Sources: Advertisements Experiential Sources: Watching a game or event How much information will a consumer need? Depends on the perceived risk involved, the higher the risk factor the higher the risk Risk factors: Money Embarrassment Time Safety

Post Participation Evaluation

step 5 in decision making process. Evaluation: Did the sport product solve the problem? Cognitive Dissonance: We question our own judgment. Did the sport meet our expectations?