Download Fundamentals of Sport Marketing

Fundamentals
of Sport Marketing
Auxiliary Materials
Chapter 1
The Sport Business Industry
Some Segments of the
Sport Business Industry
Sports tourism
 Sporting goods
 Sports apparel
 Amateur participant sports
 Professional sports
 Recreation
 High school and college athletics
 Outdoor sports
 Sport marketing firms
 Sports sponsorship industry
 Sports-governing bodies

Industry
An “industry,” as defined by Porter (1985),
is “a market in which similar or closely
related products are sold to buyers” (p.
233).
Some industries may contain only one
product (e.g., the tennis racket industry) or
a variety of products (e.g., the sporting
goods industry
Products in
the Sport Industry
Participation
 Entertainment
 Equipment and apparel
 Promotional items
 Sport facilities
 Marketing research
 Management services

Sport Defined
Sport, as used in contemporary sport
management and in relation to the sport
business industry, denoted all people,
activities, businesses, and organizations
involved in producing, facilitating,
promoting, or organizing any sport
business, activity, or experience focused
on or related to fitness, recreation, sports,
sports tourism, or leisure.
Sport Management Defined
Sport Management is the study and
practice of all people, activities,
businesses, or organizations involved in
producing, facilitating, promoting, or
organizing any sport-related business or
product.
Some examples of the types of products
offered in the sport industry:
sports as participation product
• sports as spectatorial product
(entertainment)
• equipment and apparel
• promotional merchandise
• sports facilities as sport products
• service businesses
• recreational activities
• complete management and marketing
professional services
• sport media businesses products
•
Sport Industry Defined
The sport industry is the market in which the
businesses and products offered to its buyers
are sport related and may be goods, services,
people, places, or ideas.
The sport
industry is a
BIG business!
In 1995, a study
showed the sport
business industry to be
a $152-billion dollar
industry and the 11th
largest industry in the
United States. That
represents a 242%
increase, indicating that
the industry has grown
almost 2 1⁄ 2 times
larger in 10 years.
Sport Industry Segments,
1987–88
How to Keep Up With
the Latest in the Industry
Read trade or business magazines,
journals, newsletters, and Internet sites
 Attend sport business conventions or
exhibitions
 Obtain research from sport marketing
firms
 Read local or national news publications

Factors Influencing the Growth
and Development of the Sport
Business Industry
I. People
II. Sports Activities and Events: Sports,
Recreation, Fitness, Leisure, Sports Tourism
III. Sporting Goods
IV. Facilities, Sports Medicine, and Fitness
Training
V. Commercialization and Marketing of Sport
VI. Sport Industry Professional Service
Businesses
VII. The Sport Industry, Media, and Sport Media
VII. Sport Industry Education
I. People

1. Constant Human Interest in Sports
and Recreation. People spend money
– on cost of admission to the activity,
– on items needed to participate, and
– on merchandise.

2. Increase in Sport Business Among
Diverse Market Segments
– There has been significant growth to
accommodate different populations.
II. Sports Activities and Events: Sports,
Recreation, Fitness, Leisure,
Sports Tourism
1. Constant Increase in the Number of
New and Different Sports,
Recreational, and Fitness Activities,
and Events
2. Consistent Growth in the Offering of
Traditional Sports
3. Constant Increase in the Number and
Type of Professional Level Sport,
Fitness, and Recreational Activities
4. Increase in Sports Tourism and
Adventure Travel Products
III. Sporting Goods
1. Increase in Sporting Goods and Apparel
Designed for the Diversity of Markets
and Their Demands
2. Influence of Technology on SportRelated Goods, Services, and Training
The sporting goods industry is one of the
largest segments of the sport business
industry because people must have equipment
and apparel in order to participate in most
sports activities.
IV. Facilities, Sports Medicine,
and Fitness Training
1. Increase in the Number and Type of
Sports Facilities and Events
2. Movement of Facilities From Singlepurpose to Multi-Sport and Full-Service
Facilities
3. Constant Increase in the Amount and
Types of Sports Medicine and Fitness
Training Services
V. Commercialization and
Marketing of Sport
1. Packaging of Sport as an Entertainment Product
2. Increased Marketing and Marketing Orientation in
the Sport Business Industry
3. Increased Understanding and Knowledge of
Consumers of the Sport Business Industry
4. Promotion Perfection as the Goal for Sport
Marketing Professionals
5. Growth of Corporate Sponsorship
6. Increased Endorsements
7. Growth in Importance of Licensing and
Merchandising
VI. Sport Industry Professional
Service Businesses
1. Extraordinary Growth in Service
Businesses for the Sport Industry
To match the development of the
sport industry, service businesses
have arisen to provide legal
representation, consulting, and
research, marketing, and financial
services.
VII. The Sport Industry, Media,
and Sports Media
1. Sport Industry Benefits of Mass Media
Exposure
- Exposure to TV, the radio, and the Internet has
increased popular interest in sports and the sport
industry.
2. Sports Activities and Events as a Popular
Entertainment Product
3. Constant Increase in Television and Radio
Coverage
4. Increase in the Number and Variety of
Magazines, Trade Magazines, and Academic
Journals Devoted to Sport
5. The World Wide Web
VIII. Sport Industry Education
1. Increase in Sports and Sport Business
Education for Executives, Administrators,
Athletes, and Other Personnel
Sport education is directed towards
• Participants
• Officials, coaches, trainers, producers, and
promoters of sports events
• Producers and promoters of sports events
2. Increase in Competency of Sport
Management Professionals
3. Increased Prevalence of Sport Management
as an Academic Discipline and a Career
The Organization
of the Sport Industry
Chapter 1 Questions
1. What is the sport business industry? Give
some examples.
2. Describe the size of the sport industry in
dollars.
3. What is sport management?
4. What is the North American Society for
Sport Management?
5. What are the many factors that influence
the growth and development of the sport
industry? Give examples and explain how
each factor influences the industry. Why
is it important to know this?
Learning Activities
1. Create a list of sport industry businesses,
organizations, clubs, and other enterprises in
your city or community. Categorize everything
according to the three sport industry segments
created by the Pitts, Fielding and Miller (1994)
model: sport performance, sport production,
and sport promotion.
2. For each item on your list, list the jobs within
each.
3. For each item on your list, list the sport
products offered to the consumer.
4. Write to the North American Society for Sport
Management and ask for information about the
organization.
Learning Activities (cont’d)
5. Subscribe to sport management-related journals
such as the Journal of Sport Management, Sport
Marketing Quarterly, and the Seton Hall Journal
of Sport Law. Read and summarize the studies
you find in the journals. Describe how sport
management and sport marketing professionals
can use the information.
6. With a group, create a list of 10 very different
products offered in the industry. Determine
which industry segment of the Pitts, Fielding and
Miller model each product falls into and why.
Chapter 2
Historical Eras in Sport Marketing
Hillerich & Bradsby’s Marketing Plan
In 1921, Hillerich & Bradsby Co. (H & B), producer of the
Louisville Slugger baseball bat, became the industrial
leader in baseball bat production. H & B’s market position
resulted from the implementation of a market plan. The
market plan included an analysis of external and internal
forces.
External Forces (Macromarketing)
1. Increased market size.
7. Economies of scope.
2. Market growth rate.
8. Economies of scale.
3. Industrial profitability.
4. Government policy change. 9. Buyer preferences for
differentiated products.
5. Resource availability.
10. National economy.
6. Technological change.
Hillerich & Bradsby’s Marketing Plan
(cont’d)
Internal Responses (Micromarketing)
1. Product
2. Place
3. Price
4. Promotion
A competitive marketing plan must
consider external forces that affect the
whole industry and develop internal
responses that enable the company to
get and keep customers.
Historical Eras In Sport Marketing
The Era of Origins: 1820–1880
Sport marketing micro activities existed before 1880:
• William Fuller’s tactics in promoting boxing in Charleston,
South Carolina during 1824 was the beginning.
• Michael Phelan’s promotion of billiards and billiard tables
during the 1850s and 1860s marked a significant advance
over earlier boxing promotions.
The commercialization of baseball began with the
charging of an admission fee for a series of all-star
matches between New York and Brooklyn played at
the Fashion Course in 1858 (Goldstein, 1989).
The Era of Institutionalized
Development: 1880–1920
• During the period of Institutionalized Development,
sport products were branded and trademarked.
• Distribution activities and initiatives changed
between 1880 and 1920. Producer-owned “branch
houses,” begun in the 1860s by companies like
Brunswick, became widespread after 1900 as
companies took over wholesale and retail functions
in order to circumvent antitrust laws and control
distribution.
• After 1880, sporting goods manufacturers and sport
promoters began to develop the relationships
between product quality and price and market
segmentation and sales.
The Era of Institutionalized
Development: 1880–1920 (cont’d)
• Promotional activities expanded in volume and intensity between
1880 and 1920 and became more highly organized.
• Market growth in terms of increased population was tremendous
between 1880 and 1920.
• Population expansion and concentration were accompanied by a
significant increase in discretionary money.
The Era of Institutionalized
Development: 1880–1920 (cont’d)
Improvements in the standard of living and
an increase in spending money made sport
increasingly available among Americans.
The Era of Institutionalized
Development: 1880–1920 (cont’d)
• The revolution in distribution made possible by the
railroad was also influenced by the telegraph and
the telephone.
• Technological changes influenced the production of
certain kinds of sporting goods.
• The advent of the 10-cent magazine between 1885
and 1905 added another external force for sport
marketers to use and contend with.
• The increased production capacity of
manufacturers, the revolution in distribution and
communication, and the revolution in advertising
made economies of scale possible and necessary
The Era of Institutionalized
Development: 1880–1920 (cont’d)
• Economies of Scale: The decrease in unit
manufacturing cost that is due to mass
production.
• Economies of Scope: an economic theory
stating that the average total cost of production
decreases as a result of increasing the number of
different goods produced.
Economies of scope became common after the creation of
Thomas E. Wilson Company in 1913.
Extremes Within the Industry: 1899–1905
Sporting Goods Industry
1899–1905 (N = 516)
The Era of Refinement and
Formalization: 1920–1990
• Increased popularity and diversification of sport
interests have increased market size.
• Industry profitability has fluctuated through turbulent
periods.
• Government policies have also influenced sport
marketing.
• Technological changes have influenced both how and
from what materials sporting goods are made.
• Economies of scale have been made possible by new
materials and new manufacturing techniques, new
and more economic forms of transportation, and new
and more effective forms of communication
Chapter 2 Questions
1. Identify three ways in which sport
marketers contributed to a growing sport
market between 1820 and 1880.
2. What problems did Fuller encounter when
attempting to market boxing in the early
1820s?
3. Were advertisements used to market the
game of baseball in the 1860s
significantly different from the modern
advertisements used to market baseball?
Chapter 2 Questions (cont’d)
4. List 10 characteristics associated with the
Era of Institutionalized Development and
elaborate on their significance.
5. By what year did most all medium and
large sporting goods companies have
their own sales force?
6. During what stage of the product life
cycle does the sporting goods industry
occupy between 1880 and 1920? Defend
your answer.
Chapter 2 Questions (cont’d)
7. Elaborate on the contribution the railroad,
telegraph, and telephone provided to
sport marketing.
8. Elaborate on the impact of technology
during the Era of Institutional
Development.
9. How does a competitor’s advertising help
to sell sport? Elaborate.
10. Elaborate on how both economies of
scale and economies of scope can
facilitate marketing efforts.
Chapter 2 Questions (cont’d)
11. How did vertical integration facilitate
Spalding’s marketing efforts?
12. Identify the five reasons attributed to
Spalding’s success in the 1920s. Why
were these factors important to
Spalding’s success?
13. Spalding has a significant learning curve
advantage. Explain.
Chapter 3
The Global Market
for the Sport Industry
The Four Steps in the
US Customs Process
1.
2.
3.
4.
Filing of the appropriate entry documents
Inspection and classification of the goods
Preliminary declaration of value
Final determination of duty and payment
The easiest and least complicated avenue
available for entering international markets
is exporting.
International Economics and Finance
Managers should look for banking institutions that
can
1. Move money from banks in one country to banks in
another through wire transfer.
2. Handle export financing through personnel in their internal
department.
3. Arrange for collections and payments in various
currencies.
4. Process foreign currency through exchange conversion at
the lowest possible rate.
5. Issue and process letters of credit to guarantee payments
and collections from clients.
International Economics and Finance
(cont’d)
To avoid a common sport marketer’s nightmare,
don’t take foreign currency in payment for an
account and consider using countertrade
agreements.
Tuller (1991) recommends the following guidelines
for using the global banking system:
1. The education process—Get up to speed in
internal finance as soon as possible. Take a college
course in international finance. Spend some time
with the head of the international department of a
regional bank.
Tuller’s Guidelines (cont’d)
2. Read, read, read—The fastest way to learn about
global banking and develop global financial
mentality is to read everything available on the
subject.
3. Choosing a commercial bank—Determine which
local bank has an international department.
Interview the department manager.
4. Experiment—Open a foreign bank account.
Transfer small amounts back and forth.
Incorporate exchange rate variances in
forecasts—even if you have to use fictitious
entries.
5. Conquer the “big boy” syndrome—The more a
person investigates global banking the more one
realizes it is not just for the “big boys.” (p. 221)
Trade Regulations
Trade regulations often affect sports organizations:
• In 1994, the United States, Mexico, and Canada
entered into the North American Free Trade Agreement
(NAFTA), which reduced and eliminated many
previously imposed tariffs.
• Free-trade agreements also affect sport-related
corporations in terms of liability costs, discouraging
them from relocating to foreign countries for cheaper
labor.
• The formation and liberalization that took place with
the European Union (EU) in 1992 also brought many
challenges and opportunities in sport.
Trade Regulations (cont’d)
Concerns for sport organizations:
• the free movement of labor
- Both the Single Europe Act of 1986 and
Article 48 of the 1957 Treaty of Rome stated
that residents of member States have the
right to work and live in other member States
and that a free movement of goods, services,
persons, and capital must be ensured.
• sports equipment
-e.g., safety codes differ between countries
International Marketing Structure
•
The structure of international marketing in
contrast to that of domestic sport enterprises
contains more similarities than differences.
•
Probably the most difficult aspect of foreign
trade is customs. If you are dealing in sports
goods and products, successfully negotiating
the customs system is key to your success.
•
Another difference in international marketing is
that in many countries, government owned
business can compete with privately held
companies.
The Global Sports Structure
•
A precursor to involvement in international sport
management is a thorough understanding of the global
sport environment.
•
Each specific sport is governed by an international
federation for that sport.
•
These federations work very closely with the IOC in staging
the Olympics, but have as their main purpose setting rules
and regulations for their sports and conducting the world
championships in their sport on a yearly basis.
Global Market Selection and
Identification
Japan and Asia
•
With the endless debate over Japan’s high tariffs,
complex system of distribution and sales, and
governmental reluctance to encourage foreign business
activity, sport marketers have not generally been
successful.
•
Asia, as a geographic and social region, is extremely
diverse. Social and political conditions affecting sport
vary considerably from predominantly Muslim nations
such as Malaysia to the socialist ideology in the People’s
Republic of China.
Eastern and Western Europe
•
The dynamic changes with the formation of the
European Union have in some ways helped sport
marketers and in other ways hindered their success.
•
Eastern Europe, on the other hand, may provide more
opportunities. With pent-up consumer demand and a
reduction of government controls, sport purchasing
and sponsorship avenues may proliferate. However,
some of the problems that sport marketers will
encounter include the lack of hard currency and
unstable governments.
The Caribbean and Central and South America
Sport marketers can take advantage of special
conditions in the Caribbean, including tax breaks and
the reduction of import duties. Why?
• In
1983 the US government passed a law that
made trade with the Caribbean nations both more
accessible and more lucrative: the Caribbean
Basin Initiative (CBI).
Central America has many free trade possibilities,
and manufacturing potential exists in the sports
goods industry. However, sport marketers are
encouraged to evaluate each opportunity on an
individual basis to decide if such decisions are
ethical.
Africa
Sports activities in North Africa are, in line with
traditional Muslim view, predominantly male and
rooted in tradition. For American sport managers to
conduct business here demands an understanding of
the culture and the emphasis on sport.
West Africa is entering an era in which sport market
development is possible. Of specific importance will
be sport equipment and supplies as well as sport
services in coaching and sport management.
In South Africa, enough wealth exists for any
multinational corporation to flourish.
International Sport
Marketing Personnel
It is imperative that personnel be educated for
cultural sensitivity prior to their involvement in
international affairs.
Review and understand the following issues about your
host nation before traveling and dealing with international
executives.
• Touching
• Relationships between males and females
• Drinking
• Gifts
• Time and schedules
• Business etiquette
Specifics of International Sport Marketing
The expansion of professional and amateur sports
internationally has been well recognized in the sportmarketing arena. One of the first sport organizations to
recognize the global demand for its product was the NBA.
The sport of soccer (football, in the international
community) is the most popular sport on television across
the globe, and many US companies, like Nike and Adidas,
have been very successful with their sponsorships.
It is important to remember that the United States has an
aging population, yet in much of the developing world,
the population is considerably younger and becoming
even younger.
Trends for the Future
Companies that can communicate
their concern for global problems
through the delivery of the sport
products and services will be more
highly valued than will those who
ignore this social component.
Chapter 3 Questions
1. Diagram the relationship of the International
Olympic Committee to a specific International
Federation. Include a discussion of how each
functions with the United States Olympic
Committee and a national governing body in the
United States.
2. What are the keys to successful banking in
international sport marketing?
3. How does marketing a sport product
internationally differ from marketing the same
product in the United States?
Learning Activities
1. Investigate opening a Swiss bank account. It
could be a lot of fun and a great conversation
topic among friends.
2. How would you handle the following situation?
You had just completed a consulting project
negotiating sponsorship deals for the Lithuanian
National Basketball team and were due to be paid
$10,000 in US dollars. At the last minute, you
were informed that they could pay you only in the
local currency. What is that currency? How much
of it would you get? Would you accept payment in
that form, and if not, what would be an
alternative?
Chapter 4
Sport Marketing Theory
Sport Marketing Defined

The process of designing and
implementing activities for the production,
pricing, promotion, and distribution of a
sport or sport business product to satisfy
the needs or desires of consumers and to
achieve the company’s objectives.
Marketing Defined

Marketing is the study of people and what
they buy, how much they will pay, where
they want to purchase a product, and how
they are affected by promotional tactics
and messages.

The sport marketer must be able to
recognize and analyze a business’s
environments, determine their effects, and
make strategic decisions that will enhance
the success of the sport business.
Marketing Defined (cont’d)
The marketing orientation, or concept, is a
philosophy concerning the way a company should
be managed. It consists of three requirements
(Cravens and Woodruff, 1983):
1. Examine people’s needs and wants as the basis
of deciding what the business (or economy)
will do.
2. Select the best way to meet the consumer’s
needs that are targeted by the firm.
3. Achieve the organization’s performance
objectives by meeting the consumers’
needs satisfactorily.
Sport Marketing Fundamentals &
Theory
The two different concepts of sport
marketing being used today.
Applying Sport Sociology
Yiannakis suggests that sport sociology could make
significant contributions to sport marketing and management
in the following ways:
1. Conceptualization, design, and implementation of good
market research;
2. Instrument development;
3. Interpretation of the findings by grounding both a priori
and post hoc explanations in existing knowledge bases;
4. Advertising effectiveness by providing essential
information bases, especially in the area of lifestyle
characteristics;
5. Development of a general marketing information base
(target market characteristics);
6. Exploration and identification of new markets; and
7. Introduction of social science orientation to the enterprise.
Contemporary Sport Marketing Theory
Sport Marketing Management Model
The Sport Company’s Mission and Objectives
Understanding the company’s mission and its
current status enables the sport marketer to
make key decisions and formulate strategies.
Sport Marketing Research and Analysis
An MIS, or Marketing Information System,
enables businesses to handle vast amounts
of information by collecting, storing, and
retrieving it.
Four Cs for the
Sport Business to Study
Consumer
 Competition
 Company
 Climate

The Four Cs: Consumer,
Competitor, Company, and
Climate
Knowledge of your
consumers will guide
you and your sport
business in making
important decisions
about product, price,
distribution, and
promotion.
The climate and its factors that
affect sport marketing strategies
Climate
Sport businesses must be aware of the climate in
which they operate. For example, the corporate
practice of establishing plants in foreign countries
to take advantage of the relatively low wages has
faced heavy criticism by Americans who object to
exporting American jobs and to condoning poor
and inhumane working conditions in underdeveloped countries. Business practices should not
be undertaken without considering their potential
effects on other aspects of the business.
Segmenting, Targeting, and Positioning
Segmenting, also called segmentation, is
differentiating groups of consumers based on unique
characteristics.
Targeting, also called target marketing, is the
selection of consumer segments (also called target
markets) for which selective marketing-mix strategies
are developed.
Positioning is the way a company uses its marketing
mix to influence the consumer’s perception of a
product.
Sport Marketing Mix Strategies
The 4 Ps of Marketing
Product
Price
Place
Promotion
The sport business must study the consumer and
the competition in order to move its product into line
with current trends, wants, and needs.
Promotional Methods
Direct-mail advertising
 Radio and television advertising
 Local newspaper or nationally circulated
 Magazine advertising
 Billboards advertising
 Special limited-time sales
 Special financing

A marketer’s message should grab people’s
attention, educate or convey a message, and
entice people to purchase.
Promotional Methods
Special customer services
 Use of specific colors on a product or its
package
 Use of a concert in conjunction with a
sporting event
 Offering a variety of product packages at
various prices
 Product giveaways during an event

Chapter 4 Questions
1. What is theory?
2. What is marketing?
3. What is sport marketing?
4. What is sport marketing theory? What
fields of study serve as the foundation of
sport marketing fundamentals and
theory? What are some of the areas of
research in sport marketing?
Chapter 4 Questions (cont’d)
5. What is the sport marketing management
model? What are the components of the
model? Define and describe each one.
6. What are the research journals for the
field of sport marketing?
7. What are the different climates within
which a sport business exists? Describe
each one and how it affects the business.
Learning Activities
1. (a) Select a list of people who work in the
sport industry in different types of sport
businesses across the United States.
Interview them about sport marketing at
their company. Ask them what their
theory of sport marketing is.
(b) Now do the same with college
professors of sport marketing. Interview
them about teaching sport marketing.
Ask them what their theory of sport
marketing is.
(c) Compare and analyze your results.
Give a presentation in class.
Learning Activities (cont’d)
2. Go to the university library and check out
textbooks in marketing. Look for the definitions,
fundamentals, and theory of marketing. Compare
these to the definition, fundamentals, and theory
of sport marketing in this book. Analyze your
results. Give a presentation in class.
3. Take this book to some people who work in the
industry. Ask them to look at the sport marketing
management model and to tell you if it matches
the marketing activities they perform (or
someone performs) in the company. Compile their
answers. Give a presentation in class.
Chapter 5
Sport Marketing Research
Sport Marketing
Research Defined
The process of planning, collecting, and
analyzing data to
(1) gain relevant information needed or
solves a problem to inform decision in
the sport business; and,
(2) to enhance the body of knowledge in
sport marketing as a field of study.
Sport Marketing Research Continuum
Purposes of Sport Marketing Research
The American Marketing Association’s (AMA) definition of
marketing states that marketing research links the
consumer, customer, and public to the marketer through
information—information used to identify and define
marketing opportunities and problems; generate, refine,
and evaluate marketing actions; monitor marketing
performance; and improve understanding of marketing as
a process. Marketing research specifies the information
required to address these issues; designs the methods for
collecting information; manages and implements the data
collection process; analyzes the results; and
communicates the findings and their implications. (“New
Marketing,” 1987, p. 1).
To Form a Link Between the Consumer in
the Sport Industry and the Sport Company
One way to use the increased availability of media to
the consumer is to create a media package that offers a
variety of ways to access the information and then
cross-promote and sell all the parts.
The company must know and understand what the
consumer needs or desires in order to create
products that will meet those needs and desires. To
know the consumer requires research and constant
monitoring. To do this research, the company must
have contact with the consumer.
To Identify and Define Marketing
Opportunities, Problems, and Threats
A marketing opportunity is a chance for a sport
company to capitalize on something that will most
likely be positive for the company.
A marketing problem occurs when something is
not quite right in the company.
A marketing threat occurs when something will
most likely have a negative effect on the sport
company.
To Generate, Refine, Evaluate, and
Monitor Marketing Actions
Marketing actions include such actions as
determining the company’s products and
all of their characteristics, determining
pricing strategies, developing promotional
methods, and deciding on distribution.
To Market: A New Era in
Sponsorship Marketing
It is no secret that the average spectator of
many professional sports is being squeezed
out of the prime seating areas of the sports
venue. But who would have predicted that
spectators would cease to be the prime
target of sponsorship advertising? A
growing trend in some professional sports,
where sponsorship is a form of advertising,
is business-to-business sponsors (Owens,
1999).
To Monitor Marketing Performance
Every sport business must determine if its
marketing efforts are performing according to
the established goals. The sport marketing
professional can use brand-awareness
research tools to determine if consumers are
aware of and recognize the company’s brand.
To Improve Understanding of
Marketing as a Process
9 Studies on Sport Sponsorship
Consumer classification data and sponsorship
effect that were measured in the nine papers.
1. Sponsored property consumer profile
2. Exposure
• amount of exposure
3. Effects on consumer
• on awareness
• on image/attitude towards the company
• on behavior
4. Multimedia effects
To Analyze and Understand the Sport
Company, Its Industry, and Its Competition
Try to answer the following questions by analyzing
the information from the various positions:
• If you are a sporting goods retailer, how
would you view this information in relation
to your specific business?
• If you are a soccer ball manufacturer’s sales
representative, how do you think this
information would affect your product and
company?
• If you work for a computer company and you
are head of a team to seek sports activities
events for sponsorship possibilities, how would
you use this information?
Questions for the Sport Marketer
Basic Process for Sport Marketing
Research Design
A Basic Process for
Designing Research (cont’d)
Step 1: Define the Objective or Problem
Step 2: Locate Existing Relevant Data
Determine the Kind of Information Needed:
Primary sources are those sources from which
information is gathered directly.
Secondary sources are sources that contain
information that someone else compiled and
reported, published, or collected.
A Basic Process for Designing Research (cont’d)
Step 3: Determine the Research Design
• Reliability is a measure of the level of consistency of the
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method.
Validity is a measure of the level of correctness of the
method.
Types of research: basic, applied, survey, observation,
scientific
A random sample is a way to select the members of a
sample so that every member of the population has an
equal chance of being selected.
A convenience sample comes from using respondents
who are convenient, or readily available/accessible to
the researcher.
A Basic Process for Designing Research
(cont’d)
Step 4: Conduct the Study
Step 5: Analyze the Data
Make use of fresh perspectives by asking for input on
the data you collect from other people in the
business.
Step 6: Determine How to Use the New
Knowledge
Chapter 5 Questions
1. What is sport marketing research? Why is it
important?
2. What are the purposes of sport marketing
research?
3. List and describe some types of sport marketing
research.
4. What are the sources of information? Give
examples of each.
5. What are the primary areas of sport marketing
research? Give examples of each.
Learning Activities
1. Interview people in a variety of sport
businesses, organizations, or other enterprises
in your city or community and ask them what
kind of marketing research they conduct and
why.
2. Identify at least 10 different places you could
obtain existing information in your city or
community. Go to the places and research the
types of information available at these places.
Create a notebook of these resources and save
this material for the future.
Learning Activities (cont’d)
3. With a group of other students, and with the
supervision of your instructor, develop a
research study to determine sponsorship
recognition (see appendix F). Conduct the study
during a local sports event. Analyze the results
and present your analysis to the class.
4. See appendix F. With the supervision of your
instructor, design a study using one of the
examples of surveys, conduct the study,
analyze the results, determine how the
information can be used by the sport business,
and share the results with the class and the
business.