Download A. Product

The bridge that
closes the gap
between
customers and
producers
What is Marketing?
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•
Formal Definition:
– “The process of planning and executing the
conception (product), pricing, promotion, and
distribution of ideas, goods, and services to create
exchanges the satisfy individual and organizational
AMA
objectives.”
Real Definition:
“The delivery of customer satisfaction at a profit.”
“Develop and maintain profitable relationships”
The Marketing Process
•
•
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Inputs
Business
Environmental
Internal Strengths and Weaknesses
-Corporate Structure, Assets
-Personnel
-Sustainable competitive advantages
-Market share, position, performance
External Opportunities and Threats
-Competitive
-Economic
-Socio-Cultural
-Legal Political
-Technical
Analytic Tools:
• Research
• Situational Analysis
• SWOT
Marketing Objectives & Strategy:
The goals and plans for how to achieve
Consumer
The Group(s) being targeted
-Segmentation
-Needs & Wants
-Benefits
-Awareness
-Behaviour
Outputs
Marketing Objectives & Strategy
Marketing Mix Elements
Product
Pricing
Place
Promotion
- Product types
- Product tangibility
- Product lifecycle
- New product development
- Price Elasticity (Sensitivity)
- Pricing strategies
(lifecycle/product type)
- Pricing policies
- Types of distribution
- Distribution strategies
(consumer & business)
- Types of promotion
- Promotional strategies
(consumer & business)
Analytic Tools:
• Research
• Balance & Gaps Assessment
• Measurement, Monitoring & Evaluation
Sport Marketing is defined as
“The process of designing and
implementing activities for the production,
pricing, promotion and distribution of a
sport product or sport business product to
satisfy the needs or desires of consumer
and to achieve the company’s objectives.”
The process of marketing
products is exclusive to
profit-making businesses.
The Industry
 Full service sport marketing agencies
 Professional sport clubs / leagues
 Amateur sport governing bodies
 Sporting good & apparel manufacturers
 Municipal parks and recreation
 University Athletics
The Industry
The Players:
The Absolutes for Marketing Activities
Sport Marketing Activities Must:
Be based on a win-win relationship
Allow you to get your organization’s
message out
Allow you to generate revenue
Allow you to identify & address the
customer’s needs
Give
Customer
Organization
Get
The Industry Environment
Socio-Cultural
Technological
Competitive
Economic
Political/Legal
Develop a short list
for each
KINE 2380 – INTRODUCTION TO SPORT ADMINISTRATION
The Marketing Mix
Marketing Mix Elements
Product
- Product types
- Product tangibility
- Product lifecycle
- New product
development
Pricing
- Price Sensitivity
- Pricing strategies
(lifecycle/product
type)
- Pricing policies
Place
- Location
- Distribution
strategies (consumer
& business)
Promotion
- Types of promotion
- Promotional
strategies (consumer
& business)
The Sport Product
 Sport Products = Bundle of Benefits
 Benefits for who?
1. Spectators / Users
2. Participants
3. Corporate Sponsors
KINE 2380 – INTRODUCTION TO SPORT ADMINISTRATION
The Sport Product
Canadian Sporting Events
KINE 2380 – INTRODUCTION TO SPORT ADMINISTRATION
The Sport Product
Athletes = Global power brands
The Sport Product
Sports Facilities = World-class entertainment centres
The Sport Product
Sporting good brands
What makes the Sport Product unique?
1. Aspects of the sport product are intangible
2. Sport is subjective and heterogeneous
3. Sport is inconsistent and unpredictable
4. Sport is perishable
5. Sport evokes an emotional response
Sport Promotions
The Promotional Mix:
How do we communicate our product benefits to
consumers?
 Advertising
 Media Relations
 Sales Promotions
 Public Relations
 Sponsorship
 Community
 Personal Selling
Relations
Advertising
“Advertising is any promotional technique
involving paid non-personal communication
used by an identified sponsor to persuade or
inform a large number of people about a
Product.”
Sales Promotions
“Sales Promotions are a promotional technique
involving one-time direct inducements to
buyers (such as coupons, sales displays &
contests) to purchase a product.”
Sponsorship
“Sponsorship is an indirect way of gaining
financial support by helping businesses sell
their products or services in exchange for their
support (financial or in-kind).”
Why would companies be interested in
sponsoring your organization or event?
Personal Selling
“Personal Selling is a promotional technique
involving the use of person-to-person
communication to sell products.”
Media Relations
“The activities involved in working with the
media to generate media coverage for a
product, service, or organization. This includes
establishing contact with members of the
media, providing PR materials, and being
available to answer any questions the media
might have.”
Public Relations
“Public Relations is a promotional technique
that involves non-paid communication about a
product or company and is outside the control
of the company.”
Community Relations
“A company’s interactions and programs within
the locality or community it operates, with
emphasis on disseminating company
information to foster trust in the company's
activities.”
Contingency Framework for
Strategic Sport Marketing Process
Strategic Sports Marketing
Planning
External (O/T)
Internal (S/W)
•Understanding
Consumers Needs,
Wants, Demands
•Competition
•Legal/political
•Demographics
•Technology
•Culture
•Physical
environment
•Economy
•Vision
•Mission
•Objectives
•Marketing goals
•Strategy
•Culture
•Market Selection
•Marketing Mix
•Implementation
•Control
Fit
Fit
Approaches to Marketing Planning
The Planning Phase
Step 1: Understanding Consumers’ (individual
or corporate) Needs
 Understand sport consumers’ attitudes
 Understand sport consumers’ purchasing
behaviours
 Who purchases our sport product?
 Consumer profiles
 Why do consumers purchase our product? (Needs, Wants
and Demands)
The Planning Phase
Step 2: Market Selection Decisions
A. Segmentation
B. Target Marketing
C. Positioning
Choose your target market & position your
sport product to that distinct market segment.
The Planning Phase
A. Segmentation
 Segmentation = grouping consumers based on common needs
 Consumer markets can be segmented based on the following:
Demographics
Geographic
Geodemographic
Benefits
Behavioural
Psychographic
The Planning Phase
B. Target Marketing
 Target marketing = choosing the market segment around which to
build your sport marketing process
 Target markets must be:
Sizable
Reachable
Behavioural
Variation
Measurable
The Planning Phase
C. Positioning
 Positioning = fixing the sport product in the mind of the target
market
 How does your target market perceive your product or service?
The Planning Phase
The Marketing Mix
A. Product choices determine basic design of
the product offered
B. Price choices determine how much
consumers pay for product
C. Promotion choices determine the
visibility and image of the product to
consumers
D. Place choices determine where and
when the product is available to
consumers
The Implementation Phase
Step 1: Organizing
 What organizational structure will best carry out
the marketing process?
 Grouping of marketing activities into designated
organizational units
 Allocating resources to organizational units
The Implementation Phase
Step 2: Leadership & Interaction
 Effective communication of the sport marketing
process within and outside the organization
 Sell your sport marketing plan internally
 Sell your sport product in the market place
The Implementation Phase
Step 3: Resource Acquisition & Allocation
 Human resources
 Financial resources
 Technological resources
The Implementation Phase
Step 4: Coordinating & Timing of Activities
 Stick to your marketing plan & established timelines
 Ability to adapt and be flexible to changes internal &
external changes
The Implementation Phase
Step 5: Information Management
 Economy
 Consumer demand
 Supply
 Distribution channels
 Market place & competitor activity
The Control Phase
Measuring results
Comparing results to
marketing objectives
Modifying plan to achieve
desired results
The Control Phase
Measuring results:
 Sales Analysis
 Profitability Analysis
 Customer Satisfaction
 Marketing Audits
The Control Phase
Sales Analysis
 Current sales V forecasted sales
 Current sales V past sales
 Current sales V industry sales / competitor sales
 Unit volume OR dollar volume OR market share
The Control Phase
Profitability Analysis
 Profit = (Revenues earned) – (Costs incurred)
 The amount of money earned after expenses
 Profit Margin = Profit / Revenue
 The ratio of profits to revenues
The Control Phase
Customer Satisfaction
 Communicating & listening to your consumers’ wants and
needs
 Methods:
 Consumer surveys
 Consumer hotlines / websites
 Consumer observations
 Comment / complaint cards
The Control Phase
Marketing Audits

Systematic and holistic appraisal of the sport marketing process
and relevant marketing activities
 Performed by an independent
 Review all components of the sport marketing process:

Marketing orientation / objectives
 Target markets
 Products & services
 Four P’s
Event Sponsorship
The Sports Event Pyramid
GLOBAL
INTERNATIONAL
NATIONAL
REGIONAL
LOCAL
Event Sponsorship
The Sports Event Pyramid
GLOBAL
World Cup; Olympic Games
INTERNATIONAL
Wimbledon; Commonwealth
Games
NATIONAL
Grey Cup; Super Bowl
REGIONAL
Boston Marathon
LOCAL
FAN 590 Hockey Tournament
Event Sponsorship
The Event Sponsorship Acquisition Model
1.
Fan attendance / demographic profile of fans at the event
2.
Cost / cost per number of people reached
3.
Length of contract
4.
Media coverage
5.
Communications Inventory Offering
6.
Sponsorship benefits