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Relationship Marketing:Current and Future Impact in Sports Business
By: Michael Coe
Phone: (209) 479-1578
Email: [email protected], [email protected]
Agenda Inspiration for research Industry Statistics/Trends The spectator as the consumer
Fan motives Applying Kelman’s approach to attitude change to
the sport industry Relationship marketing/Creating long term fan
commitments Academic research and real life applications
Consumer is the Arbiter of Quality If brand is a tangible good,
Consumer evaluates brand on how well brand performs as expected/promised through MKTG communications
With service brands, Consumers must almost always rely primarily on
the service EXPERIENCE and how it was DELIVERED to decide on quality
(Little, 2009)
(Little, 2009)
Sports Industry Overview Major League Baseball (MLB) Revenue
$6.8 Billion National Football League (NFL) Revenue
$7.8 Billion Estimated Size of Sports Industry in U.S.
$414 Billion Annual Company Spending on Sports Advertising
$27.3 Billion
(Plunkett Reseaerch, Ltd., 2010)
Sports Marketing Domains Two dimensions within sports marketing
industry: Marketing of sports products Marketing through sports
Type of product sold & level of integration create four strategic domains for marketing Theme, alignment, product, & sports based
Focus on marketing sports product Author does not include relationship marketing as a
focus (Fullerton et al., 2008)
Industry Forecast From Leaders Emotional spend as important as financial
Highlights fact that relationships in sport are key Experience for fans at events of utmost importance
Preparation & commitment to fan leads to success during good and bad times
Effectively managed social media will aid in development of fan relationships Open communication to build fan trust Open to opinions and feedback
(Kadlecek, 2010)
Spectators as Consumers Traditional marketing approach criticized for
not including interaction and relationship aspect of marketing
Considering spectators as consumers has given new importance to relationship marketing theory Four P’s not applicable to all settings
Relationship marketing being called upon as new marketing paradigm Attracting, maintaining, & enhancing
(De Burca et al., 1995)
Fan Interaction & Relationship Formation Studies in sociology and psychology show ways
spectators interact/form relationships Identification with teams/heroes, expertise in stories/stats,
mock arguments/administration Nature of sport allows consumer to consume/interact
long after game is over Relationship marketing allows interaction dynamics
to be captured Sport spectators have strong desire for continuous service
Building relationships provides great dynamics for this
(De Burca et al., 1995)
Motivational Profiles of Sport Fans Research indicates that the motivation of fans
of aggressive sports are similar NHL, NFL, NBA, MLB, & Fights
Group affiliation scores are very high in this target Shows that Relationship Marketing can be
beneficial because relationships are wanted by these fans
(Wann et al., 2008)
Applying Kelman’s Functional Approach to Attitude Change Relationship marketing attempts to direct
attitudes Understanding the psychology behind
attitudes makes it easier to change them Consumers fall into one of three motivational
levels Compliance Identification Internalization
(Bee et al., 2006)
Compliance Most superficial level of social influence Consumers purchase/take part in activity in
order to gain or avoid social rewards May avoid wearing/supporting losing teams to
avoid embarrassment Fan loyalty programs designed to lure fans to
ballpark and counteract this Once external reward is removed, relationship
ends
(Bee et al., 2006)
Identification Tendency for sport spectators to bask in
reflected glory (BIRG) Self-esteem function
Perceived overlap of someone’s own self-image and the success of a team/player
At this stage, fan is more likely to maintain and create a successful relationship
(Bee et al., 2006)
Internalization When an individual’s behavior is influenced
through shared values Enduring & Long-term Fan relationships are result of strongly held
beliefs that are congruent with team/player Teams should try and match the values of
target consumers with those of organization Result = more intense fan behavior
(Bee et al., 2006)
Influencing Fan Loyalty Loyalty viewed as a
developmental process Research shows precursors to
becoming a loyal fan include: Involvement Fan attraction Psychological commitment
Organizations increasing effort to promote participation and education in sport
Anaheim Ducks The Rinks(Bee et al., 2010)
(Anaheim Ducks News, 2009)
Customers/Fans for Life CRM should not be used in sports the same way it is
used in other business sectors CRM first used to handle season ticket sales
Failed in making significant impact CRM in sports should include:
Web sites, e-commerce, online ticketing, player/team contact points, COMMUNICATION
All about the fan experience/personalization Regardless of results on playing surface
(Weinberger, 2004)
Post-Strike NHL’s Use of CRM All sport franchises should use
CRM to be proactive Communication with fans saved NHL
Two way relationship Provide as many customer touch
points as possible to receive fan feedback and info
Used CRM to customize email campaigns, special offers, & promos
(Beasty, 2005)
Role of Social Responsibility in Sport Industry Organizations have power to impact/influence
quality of life for: Employees Customers Shareholders Community members
CSR goes a long way in shaping perception Concept of social entrepreneurship important Growing in business and popularity sports
organizations are often seen and associated not just with the sport, but with the community
(Ratten et al., 2010)
Cause-Related Marketing in Sport Sports organizations attempt to associate themselves
with good causes Both charitable and valuable to business Strategic potential not yet thoroughly examined in a
sports scenario Can provide competitive advantages:
Improving consumer’s attitudes toward team Repurchase intent Team/organization reputation New customer acquisition
(Kim et al., 2010)
Cause-Related Marketing Impact Consumers pass through psychological stages
before reaching purchase decision Study showed that cause-related marketing
was not the sole cause of re-attendance Instead, a primary factor in creating a positive
attitude toward the organization No linkage was found in regards to fans
perception of altruistic or monetary motives Implies that this strategy has appeal to fans
(Kim et al., 2010)
Cause-Related Marketing Implementation Cause-related marketing gaining relevance as a
tool to switch behaviors of consumer segments Proper implementation & execution can lead
to: Increased consumption patterns Increased loyalty
Sport properties must be thorough in implementation Must know consumer interest and support of cause
(Irwin et al., 2010)
Fan Commitment Research Fan’s overall satisfaction and perceived
communication effectiveness = Trust & commitment with sport property
Level of commitment to sport organization can influence the effectiveness of cause-related marketing
Overall, building a trusting relationship with fans will make lucrative sponsorships more enticing for other companies
(Hong, 2005)
From CRM to FRM (Fan Relationship Management) CRM = mixture of transaction and relationship
marketing ‘Fan Relationship Management’ aims to learn from
both successes and failures of CRM In the sports context, special characteristics of the
sport/fans must be considered Can’t effectively implement CRM or relationship
strategies unless considered A simple ticket sales mindset to marketing sports
franchises comes at the cost of relationship building & long term success
(Adamson et al., 2006)
FRM Means Commitment to Fan Primary attributes of relationship marketing
Dialogue, trust, & mutual respect Shared ideals, mutual benefit, and a
commitment to continue the relationship Commitment to customers/fans needs to take
higher priority than short term profits CRM and RM should be strong held beliefs
that are held throughout the organization Service experience key for all fans
(Adamson et al., 2006)
The Role of Emotion and Camaraderie Move beyond selling focus, Move towards the
ethos of learning and growing together Sports clubs need to segment fan base
Fans differ in value to the organization Loyalty Psychological and physical needs from team
Casual fans and fanatics have different needs Casual fans could transition to greater
involvement(Adamson et al., 2006)
A Team & Fan Based Approach Don’t allow relationship management to be
stolen by a single department Technology not the sole solution A customer focus is
Concentrate on people issues Communicate with staff constantly Communicate changes with customers/fans
(Adamson et al., 2006)
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