Chapter 1 The Special Nature of Sport Marketing 1 The Special Nature of Sport Marketing C H A P T E...
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Transcript of Chapter 1 The Special Nature of Sport Marketing 1 The Special Nature of Sport Marketing C H A P T E...
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Chapter 1 The Special Nature of Sport Marketing
1
The Special Nature of The Special Nature of Sport MarketingSport Marketing
C H A P T E R
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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?
(continued)
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Key Ingredients of a Successful Sport Branding Effort (continued)
Media interest:
Are members of the media captivated in some way by the influence of a brand?
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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.
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Weathering Recessions
• 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.
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Competitive Marketplace
• Leisure spending on spectator sports has decreased in the United States.
• Expansion of sport entertainment and participation options creates greater marketplace competition.
(continued)
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Competitive Marketplace (continued)
Maintaining market share can be difficult for sport products.
Popularity of some sports, such as action sports, is plateauing or declining.
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Sport Marketing Defined
• 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.
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Two Major Thrusts of Sport Marketing
1. The marketing of sport products to the sport consumer
2. The marketing of sport and nonsport products through sport
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Marketing Myopia• Focus on producing and selling goods and
services rather than on identifying and satisfying the needs and wants of consumers and their markets
• Belief that winning absolves all other sins
• Confusion between promotions and marketing
• Ignorance of competition inside and outside sport
(continued)
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Marketing Myopia (continued)
• 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 research
• Poor sales and service
• Arrogance and laziness
• Failure to adapt to industry, market, and consumer change
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Change in the Sport Marketing Profession
• Sport marketing pioneers paving the way
– Bill Veeck,
– Tex Rickard,
– Mark McCormack,
– Don Canham,
– David Stern
– Assignment: Each panel group will report on selected name given by instructor.
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Uniqueness of Sport Marketing
Sport product
Sport marketplace
Sport finance
Sport promotion
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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.
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Figure 1.1
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Why Sport Product Is Unique
• (continued)An intangible, ephemeral, experiential, and subjective nature
Strong personal and emotional identification
Simultaneous production and consumption
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Why Sport Product Is Unique (continued)
• Dependence on social facilitation
• Inconsistency and unpredictability
• Core product beyond marketers’ control
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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.
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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.
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Why Sport Promotion Is Unique• . Widespread
media exposure is a double-edged sword.
• Media and sponsors emphasize celebrities
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THE NATURE OF THE SPORT MARKETING