Title: Unit 1. Sport Marketing Speaker: Yong Chae Rheec122).pdfTechnology Leisure Education 20 ......
Transcript of Title: Unit 1. Sport Marketing Speaker: Yong Chae Rheec122).pdfTechnology Leisure Education 20 ......
Title: Unit 1. Sport Marketing
Speaker: Yong Chae Rhee
online.wsu.edu
Prof. Yong Chae Rhee
Class Objectives
Understanding the background of sport marketing
Concept of Sport
Concept of Marketing
Concept of sport marketing
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Introduction
Future of the sport? How will it change?
“Understanding the change
of physical activity phenomena”
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The Past and Present
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The Past and Present
1920 1939
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The Past and Present
1955 1955-1963
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Interactive TV & Sports
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Interactive 3D TV & KINECT
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Background of Sport Marketing
The Evolution of Physical Activity Phenomena
Government-driven School-driven Market-driven
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1ST Wave: School-driven era
The evolution of physical activity phenomena
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The change of physical activity phenomena and academic perspective
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Jean-Jacques Rousseau
1ST Wave: School-driven era
The change of physical activity phenomena and academic perspective
Pedagogical
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2nd Wave: Government-driven era
The evolution of physical activity phenomena
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2nd Wave: Government-driven era
Pedagogical
Philosophical
Historical
Sociological
Physiological
Biomechanical
Psychological
The change of physical activity phenomena and academic perspective
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1992 The End of Cold War
The evolution of physical activity phenomena
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Socialism VS. Capitalism
3rd Wave: Market-driven era
The evolution of physical activity phenomena
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3rd Wave: Market-driven era
The change of physical activity phenomena and academic perspective
Pedagogical
Philosophical
Historical
Sociological
Physiological
Biomechanical
Psychological
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The change of physical activity phenomena and academic perspective
Sport Pedagogy
Exer. Phys. Biom.
Sport Psy. Mot. L & C
Sport Soc. Phil. Hist.
Sport Management
The 1st wave:
School-driven
The 2nd wave:
Government-driven
The 3rd wave:
Market-driven
Physical
Activity
Industry
Culture Health
Technology
Leisure
Education
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• England Olympic Science Media Corporation
• Commercialization
• Globalization, Information
• Media & Sponsors
• Amateurism & Professionalism merged
• Spread of the market principle into the sport world
• Competition A matter of survival
Changes in sport world
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Industrialization
• Marketing defined
• Marketing is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large (AMA, 2009).
• Sport Marketing…
A whole process by which individuals’ or organizations’ needs and wants for
sport are satisfied through creating, offering, exchanging sport-derived
products (goods, services) with others.
• Shank (2008)
• …the specific application of marketing principles and processes to sports products and to
the marketing of non-sport products through association with sport.
• Marketing of sport
• WPS promoting their own sport
• Satisfy consumers’ interests in doing a sport activity or watching a sport activity
• http://www.youtube.com/watch?v=CHYm55PN2_k
• Marketing through sport
• Puma promoting themselves though WPS
• Attempting to reach consumers through an association with sport
• http://www.youtube.com/watch?v=GDetM412vck
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Kosteniuk Kobayashi
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World Food Fighting Champion World Chess Champion
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Traditional Definition of Sport
Big Muscle Activity
Competition
Rule
Organization
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What is sport?
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World Star Craft Champion
Yo Hwan Lim
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Traditional Definition of Sport
Big Muscle Activity
Competition
Rule
Organization
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What is sport?
Socially and ethically accepted physical activity,
the instrumental goal of which is physical achievement.
• Industry Size
• According to Sport Business Journal, overall sport industry generate over $( ) a year.
• 200 billion
• Attendance
• Four major league sports attracted over ( ) spectators in the previous season.
• 132 million
• MLB: 73 million, NBA: 21 million, NHL: 21 million, NFL: 17 million.
• Media Coverage
• Super Bowl 2009 (Arizona VS Pittsburgh) was viewed by
( ) viewers.
• 98.5 million viewer
• Employment
• There are ( ) of sports-related jobs.
• 4.5 million
• Sport is “major” industry.
• Distinct features of sport marketing appear in the following five
domains.
• The Sport Product
• The Sport Market
• Sport Finance
• Sport Promotion
• The Sport Consumers: Fans and Team Identification
• Uniqueness of Product
• An intangible, ephemeral, experiential, and subjective nature
• Mavericks VS Lakers
• Simultaneous production and consumption
• You can not sell tickets for last night’s game
• Core product beyond marketers’ control
• Marketers focus more on additional product (e.g., Promotional events).
• Inconsistency and unpredictability
• Wining, Injuries, Weather, Momentum.
• Who’s going to win?
• http://espn.go.com/nba/schedule
• Simultaneous competition and cooperation. •Pepsi & Coke •Yankees and Red Sox
• Expert Mentality •Blogs, Message Boards, Talk Radio
• Demand tends to fluctuate widely. •Offseason
• Sport has an almost universal appeal and pervades all elements of life
• Team identification refers…
• to the extend to which a fan feels psychologically connected to a team”
• “I am a Coug”
• What other product do people claim to be a part of?
• Identification and allegiance are indicative of ________
__________________.
• Sport consumption behaviors.
• It is difficult to price the individual sport product unit by traditional way to allocate fixed and operating costs.
• The price of the sport product itself is invariably quite small in comparison to the total cost paid
• Travel, parking, hotdogs, drinks, and merchandise.
• Indirect revenues are frequently greater than direct operating revenues.
• 90% of NCAA’s total revenues for 2009-2010 came from television and marketing rights fees
• Promotion
• Free media exposure
• But, the widespread media exposure is a double-edged sword.
• Hard to control
• Laziness, arrogance, and amnesia toward fans?
Need
Want
Demand
•What is a consumer “need?”
•A state of felt deprivation of some basic satisfaction;
elements inherent to our human condition.
•We require certain elements just because of the way
we are put together.
•What is a consumer “want?”
•Desire for a specific satisfier of the fundamental
needs
•Need food - want pizza
•Need transportation - want a Lexus
•What is a consumer “demand?”
•Desire for a specific satisfier backed by an ability and
willingness to buy
•Want becomes a demand when you have the
ability/resources to purchase what you desire.
• Marketers do not “create” needs. • Needs are pre-existing.
• Marketers try to ____________ wants/desires.
• Influence and meet
• What needs/desires do consumers have?
Sport Consumers
What needs consumers seeks to satisfy by consuming sports?
Participants Spectators/Fans
Social
Self-esteem
Self-actualization
Adventure
Freedom
Community
• Social
• Self-esteem
• Self-actualization
• Community
• Expression