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

3

Introduction

Future of the sport? How will it change?

“Understanding the change

of physical activity phenomena”

4

5

The Past and Present

6

The Past and Present

1920 1939

7

The Past and Present

1955 1955-1963

8

Interactive TV & Sports

9

Interactive 3D TV & KINECT

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to view video

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Background of Sport Marketing

The Evolution of Physical Activity Phenomena

Government-driven School-driven Market-driven

10

1ST Wave: School-driven era

The evolution of physical activity phenomena

11

The change of physical activity phenomena and academic perspective

12

Jean-Jacques Rousseau

1ST Wave: School-driven era

The change of physical activity phenomena and academic perspective

Pedagogical

13

2nd Wave: Government-driven era

The evolution of physical activity phenomena

14

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to view video

2nd Wave: Government-driven era

Pedagogical

Philosophical

Historical

Sociological

Physiological

Biomechanical

Psychological

The change of physical activity phenomena and academic perspective

15

1992 The End of Cold War

The evolution of physical activity phenomena

16

Socialism VS. Capitalism

3rd Wave: Market-driven era

The evolution of physical activity phenomena

17

3rd Wave: Market-driven era

The change of physical activity phenomena and academic perspective

Pedagogical

Philosophical

Historical

Sociological

Physiological

Biomechanical

Psychological

18

19

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

21

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

24

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

26

What is sport?

27

World Star Craft Champion

Yo Hwan Lim

28

Click images

to view video

29

Click “video” icons to watch videos

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Traditional Definition of Sport

Big Muscle Activity

Competition

Rule

Organization

33

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