ISBN 978-9948-15-201-9

Dubai Sports CouncilMarketing Manual

for Dubai Clubs

H.H. Sheikh Khalifa Bin Zayed Al NahyanPresident of United Arab Emirates

H.H. Sheikh Mohammad Bin Rashid Al MaktoumUAE Vice President Prime Minister and Ruler of Dubai

H.H. Sheikh Hamdan Bin MohammadBin Rashid Al Maktoum

Crown Prince of Dubai, Chairman of Dubai Sports Council

Our Vision

Creating a Unique Sports Community

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Chapter 5.Television Commercial Rights 385.1 Television Rights Future 385.2 Marketing Strategy of Television Rights 39

References 41

Table of Contents Introduction 14 DSC History 15

Dubai Sports Council Strategic Partners 17

Chapter 1. Sports Marketing 181.1 What is Sports Marketing? 181.2 The Sports Market 181.3 Marketing Strategy 191.4 Market Analysis 201.5 Market Research Techniques 211.6 Marketing Objectives 231.7 Marketing Plan 231.8 Ambush Marketing 251.9 Market Level Sponsorship Planning 25

Chapter 2. Building a Brand 262.1 What is a Brand? 262.2 Understanding Brands 262.3 Brand Equity 262.4 Brand Profile at a glance 272.5 Brand Positioning 272.6 Club and Brand Fit 272.7 Brand Level Sponsorship Planning 28

Chapter 3. Consumer Culture 293.1 What is Consumer Culture? 293.2 Consumer Identification and Loyalty 293.3 Characteristics Affecting Consumer Behavior 293.4 Types of Buying Decision Behavior 303.5 How does this apply to a club? 31

Chapter 4. Sports Sponsorship 324.1 What is Sports Sponsorship? 324.2 Reasons for engaging in Sponsorship 334.3 Creating a Sponsorship Package 344.4 Body of a Presentation 354.5 Event Classification 354.6 Case Study 36

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Introduction

“A man has two choices, either to be a follower or to show initiative, and we greatly desire to be pioneers” – H.H. Sheikh Mohammed Bin Rashid Al Maktoum, Vice President of the UAE, Prime Minister and the Ruler of Dubai.

Under the patronage of His Highness Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai, Chairman of The Executive Council and the Dubai Sports Council, it is with our greatest pleasure to present the Marketing Manual for Dubai Clubs as part of the publications of the Dubai Sports Council, in accordance with its vision to create a distinguished sporting community.

The objective of the Manual is;1. To provide and serve as a guide application for the systematic Commercial Development in Dubai

Clubs.2. Designed to assess the effectiveness and impact of services in the club.3. Provides an assessment framework proposal for strengthening the role of sports marketing in the Club.

The Manual is directed towards the growth of skills and education of staff members working in the field of sports marketing, and offers staff guidance and recommendations on how to meet the clubs’ goals, objectives and mission.

Dubai Sports Council

Dubai Sports Council

History

Dubai Sports Council [DSC] was founded on the 30th of November 2005 as per a decree issued by the UAE Vice President, Prime Minister and Ruler of Dubai, H.H. Sheikh Mohammed Bin Rashid Al Maktoum.

Vision

The Dubai Sports Council’s vision is “Creating a distinguished sporting community”.

Mission

By Investing its revenues, as well as, its capabilities DSC intends to set up an ideal sport sector to make Dubai a pioneering milestone in the field sport.

Objectives

The Dubai Sports Council’s objectives include the following;• Developing and improving sports in Dubai.• Create a comprehensive sports environment which meets the requirements of the society.• Pave the way for youth to cultivate their cultural and sporting talents; and aptitudes in a way that leads them to achieving tangible national, regional and international results.

Strategic Plan Objectives

• Polarization, developing and improving sporting calibers and cadres.• Developing, modernizing and atomizing sporting operations and services.• Increase community awareness, as well as, setting up strategic partnerships• Achieving financial independence.

Dubai Sports Council Seven Departments

• Secretary General’s Office• Corporate Communication & International Relations• Strategy & Corporate Performance• Culture & Community Affairs• Club & Sport Performance• Marketing & Sports Promotion• Corporate Resource Management

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Marketing & Sports Promotion Department

The Dubai Sports Council’s Marketing & Sports Promotion team set out to achieve the optimal investment in various areas of the sports sector; relying on commercial studies, careful research and applications in the privatization of services, sports and commercial facilities, promotion of sports through events and community activities, marketing DSC products, as well as, sports tourism by incorporating with tourist departments and agencies.

The Marketing Department & the Sports Clubs

The Dubai Sports Council was initiated to help the 8 local sports clubs of Dubai to transfer from an amateur state to a more professional level. DSC’s role was essentially to support the clubs in all the necessary elements of professionalism, whereas by; cultural, financial or technical matters and by creating international communication. The Council has been able to provide the crucial expertise the sport clubs need to reach a more professional standard, with a full understanding that clubs should not be directed by the Council but inspired by its vision. Henceforth, the Council provides the fundamental information, guidelines and contacts in order to allow for each club to proceed with their own planning and achievements.

The Dubai Sports Council also works personally with the following eight local clubs under its umbrella in a bid to encourage the communities of Dubai to interact socially & educate through sports;

Dubai Sports Council’s Strategic Partners

We would like to extend our sincerest thanks to all the Strategic Partners that have helped to promote DSC’s vision of Dubai as a distinct Sports Community, enhance the already prominent Sports culture in the country, to give the people an opportunity to exploit their hobbies and talents and to promote popular culture of sports and evaluate public interest for different activities;

Sports Clubs

Strategic Partners

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Chapter1: Sports Marketing

1.1 What is Sports Marketing?

Sports Marketing is a form of marketing in which brands use mainstream or alternative sports and the figures associated with these sports to connect with both a broad and/or targeted group of consumers. Countless companies and/or brands have used sport marketing to build positive brand awareness, support retail and sales promotions and gain an overall advantage in their market. Common examples of sport marketing include athlete endorsements, testimonials, event marketing and stadium advertising.

In other words, Sports Marketing is a form of marketing that refers to the specific application of marketing principles and process to sports products, such as teams and leagues and the marketing of non-sports products, such as cigarettes and razors, through the association of sports.

Sports marketing companies such as IMG and Octagon utilize these principles and processes for mainstream or alternative sports and figures associated with these sports to connect with both a broad and targeted group of consumers to market a product.

1.2 The Sports Market

The market is formed by the fans needs, wants and desires. A fans needs are as basic as physical needs such as; food, clothing, warmth and safety, social belongingness and affection and individual needs for knowledge and self-expression; not created by the market but by basic human make-up. Wants are in the form of human needs as they are shaped by culture and individual personality. Human demands that are backed by the buying power are the wants that become the demands. Discussing terms of business, studying past clubs reports, investigating emerging trends and special circumstances and marketing surveys are all excellent ways to evaluate the market and answer question like:

1. Who are your competitors?2. What are they doing? 3. What is the size of the market?

By identifying such answers one can begin to identify the marketing segmentation, marketing segment and target market, which in turn simplifies the task of contacting and communicating with potential sponsors and fans or customers.

Broadly defined, marketing is a social and managerial process by which individuals and organizations obtain what they need and want through creating and exchanging value with others. Thus marketing not only consists of selling and advertising but also of sponsorship and of providing services to and for fans or customers.

The above model shows how to understand fans, create consumer values and build strong fan relationships. In the final step, clubs reap the rewards of creating superior customer value. By creating this value for fans, clubs in turn receive values in the form of sales, profits and long-term customer equity. This in turn

ties up with identifying consumer behavior , preferences and also the culture one portrays. We will look at understanding consumer culture a little later.

1.3 Marketing Strategy

Furthermore, these questions lead to determining a marketing segmentation or identification [the process of dividing a market into distinct groups of fans who have different needs, characteristics or behaviors who might require separate services ,products or marketing programs], a market segment [a group of fans who respond in a similar way to a given set of marketing efforts] and lastly to the target group [the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.

A strategic plan defines a club’s overall objectives and mission. Therefore, a marketing strategy is the marketing logic by which a club hopes to create its fan value and achieve these profitable relationships. Upon determining the marketing strategy, a sports club can then begin to identify its market segments and target groups and thus move from random or fragmented marketing to focused marketing efforts.

Designing Customer driven marketing strategies

The strategic plan defines the club’s overall mission and objectives. Marketing role and activities are shown below in the diagram, which summarizes the major activities involved in managing fan-driven marketing strategies and the marketing mix.

The goal is to create value fans and build strong and profitable customer relationships. The club decides which fan it will serve [segmentation and targeting] and how it will serve them [differentiation and positioning]. After identifying the total market, it further divides it into smaller segments, selects the most promising segments, and focuses on serving and satisfying fans in these segments. To find the best marketing strategy and mix, the club must engage in marketing analysis, planning, implementation and control.

Understand the market place &

customers neeeds & wants

Design a customer-driven

marketing strategy

Build profitable relationships and create customer

delight

Capture value from customers

to create profits & customer equity

Construct an integrated marketing

program that delivers superior

value

Create value for customers and build customerrelationships

Capture value fromcustomers in return

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Managing the marketing process requires the four marketing management functions shown in the next diagram: analysis, planning, implementation, and control. The club first develops club-wide strategic plans then translates them into marketing and other plans for each division, product, and brand. Through implementation, the club turns the plans into actions. Control consists of measuring and evaluating the results of marketing activities and taking corrective action where needed. Lastly, marketing analysis provides information and evaluations needed for all the other marketing activities.

1.4 Marketing Analysis

1. SWOT ANALYSISA sports marketer should conduct a SWOT analysis, by which he evaluates the club’s overall

• [S] Strengths - internal capabilities and resources,

• [W] Weakness - internal limitations and negative situational factors that may interfere with the club’s performance,

• [O] Opportunities – are favorable factors or trends in the external environment that the company may be able to exploit to its advantage and

• [T] Threats - are unfavorable external factors or trends that may present challenges to performance.

The goal is to match the club’s strengths to attractive opportunities in the environment, while eliminating or overcoming the weaknesses and minimizing the threats. These are internal factors which every club must undertake to effectively formulate, communicate and implement any plan or strategy.

Club Environment

The Club’s Microenvironment

Marketing success requires building relationships with other club departments such as; other clubs, suppliers, customer and marketing intermediaries to ensure club’s value delivery network and customer value, satisfaction and loyalty.

The Club’s Macro environment

A macro environment is the external factors that shape opportunities and pose threats to the club.

2. PEST ANALYSIS

Economic Factors

The club needs to consider the state of a trading economy in the short and long-terms. This is especially true when planning for sports marketing.

Socio-cultural Factors

The social and cultural influences on business vary from country to country. It is very important that such factors are considered. Factors include:• What is the dominant religion? • What are attitudes to foreign products and services? • Does language impact upon the diffusion of products onto markets? • How much time do consumers have for leisure? • What are the roles of men and women within society? • How long are the population living? Are the older generations wealthy? • Does the population have a strong/weak opinion on green issues?

Technological Factors

Technology is vital for competitive advantage, and is a major driver of globalization. Consider the following points:

• Does technology allow for products and services to be made more cheaply and to a better standard of quality?

• Do the technologies offer consumers and businesses more innovative products and services such as Internet banking, new generation mobile telephones, etc?

• How is distribution changed by new technologies e.g. books via the Internet, flight tickets, auctions, etc?

• Does technology offer companies a new way to communicate with consumers e.g. banners, Customer Relationship Management (CRM), etc?

1.5 Market Research Techniques

A simple definition of market research is ‘keeping those who provide goods and services in touch with the needs and wants of those who buy the goods and services.’ Market research involves collecting, recording and making sense of all the available information which will help a business unit to understand its market. Market research sets out to answer the following questions:

* Who makes up the target audience?* What do they want?* When do they need it?* Where does it sell best?* How can it be taken to them?* Why do they want/need it?* What are our competitors doing?* How is our market changing?

Market research helps firms to plan ahead rather than to guess ahead In business, demand is always changing and therefore it is essential to know how things are changing. Market research requires a special form of skill and therefore market research companies are often employed because they have the necessary experience and also because market research takes up a lot of time.

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Methods used in marketing researchData gathering involves collecting as much information as possible about the market, usually before any further steps are taken. It relies on desk research and field research. Data is divided into primary and secondary categories. Primary data are collected in the field. Secondary data are gathered from all the material that is at present available on the subject, and is always studied first when doing desk research.

Desk researchThis method involves the search for secondary data, whether published or unpublished. A good place to begin is with a company’s records of items such as production, sales, marketing, finance and other data. Other sources of secondary data are government publications on the Internet such as the government’s Expenditure and Food Survey showing what typical households spend their money on, and Social Trends outlining changes in social patterns in this country. Commercial research organizations such as Mintel also provide market research reports, many of, which are accessible on the Internet.

Field researchIt involves the search for primary information.

Sampling/sample surveys It is the most common way to gather field data. It involves taking a census of a small sector of the population which represents all of a particular group, e.g. married working women in Bristol aged 30-45 are taken to represent all urban, married working women in the United Kingdom. Convenience sampling is taking information from any group, which happens to be handy - walking down a high street for example. Judgment sampling is slightly more refined: the interviewer would select high street respondents on the basis of whether or not they appear to belong to a particular segment or the population - say, middle-class business people. Quota sampling deals with specific types of respondents - e.g. female students studying the social sciences.

QuestionnairesThis is the most popular method of extracting information from people. They are usually conducted by post, telephone or in person. Questionnaires are easy to administer and easy for respondents to deal with. They simplify the analysis of results, and can provide surprisingly detailed information. A useful way of delivering a questionnaire is on-line. One way of doing this is to ask the public to fill in a questionnaire, which then enables them to register for access to a website. However, questionnaires are easy to ‘cheat’ on and a market research agency will ensure that ‘control questions’ has been built in to check that the questionnaire has been filed in a suitable fashion.

Postal questionnairesThese are easy to administer but unfortunately they yield a poor response. They are rarely used on their own: more often they are used to support a programme of telephone or personal interviews. Benefits include relatively low cost, no interviewer bias, and reaching people who are otherwise inaccessible.

Telephone interviewsThese are ideal when specific information is required quickly. However, in the modern age many consumers are reluctant to ‘waste’ their time on answering questions on the telephone. As the questioner has little evidence of who they are speaking to it is easy to get false information.

Personal interviewsIn a structured interview, the interviewer has to follow a set pattern of questions and responses (e.g. ticking boxes). In semi-structured interviews the order and wording of the questions are laid out in an interview guide but the response is open ended, and the interviewee is allowed to reply in his or her own words. Unstructured interviews are what they sound like - certain topics are covered in a relaxed fashion.

Quantitative market researchRelates to methods such as questionnaires, which can be used to gather a lot of information, but which often use fairly closed responses.

Qualitative market researchRelates to more intensive methods involving small samples such as a focus group who come together to discuss their feelings about a particular product.

1.6 Marketing Objectives

The objective is the starting point of the marketing plan. Once environmental analyses (such as SWOT and PEST have been conducted, their results will stream line the objectives. Objectives should seek to answer the question ‘Where do we want to go?”.

All objectives should be SMART i.e. Specific, Measurable, Achievable, Realistic, and Timed.

• Specific - Be precise about what you are going to achieve.• Measurable - Quantify your objectives.• Achievable - Are you attempting too much?• Realistic - Do you have the resources to make the objective happen (men, money, machines,

materials, and minutes)?• Timed - State when you will achieve the objective (within a month? By February 2018?)

1.7 Marketing Plan

Marketing is the process of developing and implementing a plan to identify, anticipate and satisfy consumer demand, in such a way as to make a profit. The two main elements of this plan are market research to identify and anticipate customer requirements and the planning of an appropriate marketing mix to meet these requirements. Market research involves gathering and recording information about consumers, market, product, and the competition in an organized way. The information is then analyzed and used to inform marketing decisions. There are three main ways of gathering information for market research:

1. From internal information already held by an organisation, e.g. details of existing customers and their spending habits.

2. External primary information - i.e. information collected at first hand by interviewing customers and potential customers to get their views about a company, products and services.

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3. External secondary information - using published sources of information e.g. those produced by marketing organizations about products, markets and brands.

Marketing planning can then be used:

1. To assess how well the organisation is doing in its markets.2. To identify current strengths and weaknesses in these markets.3. To establish marketing objectives to be achieved in these markets.4. To establish a marketing mix for each market designed to achieve organizational objectives.

Through strategic planning, the club decides what it wants to do with each unit of revenue stream. For further clarification please revert to the diagram that follows.

Thus a marketing plan would be composed with the following sections;1. Executive Summary – presents a brief summary of the main goals and recommendations of the plan for management review.2. Current marketing Situation –

a. A market description that defines the market and major segments, then reviews customer needs & factors in the marketing environment that may affect customer purchasing.

b. A product review that shows sales, prices and gross margin competitors.

3. Threats and Opportunities Analysis – Assesses major threats and opportunities that the product might face.

4. Objectives and Issues – Consists of the objectives the club’s would like to attain during the plan’s term and discuss its key issues that will affect their attainment. For example, if the goal is to achieve a 15% market share, this section looks at how this goal might be achieved.

5. Marketing Strategy – Outlines the broad marketing logic and the specifics of target markets, positioning, and marketing expenditure levels. How will the club create value for customers in order to capture vale from customers in return?

6. Action Programs – This indicates how marketing strategies will be turned into specific action programs that answer questions like; What will be done? When will it be done? Who will do it?

7. Budgets – This outlines the projected profit and loss statement. It shows expected revenues [forecasted number of units sold and the average net price] and expected costs [of production, distribution and marketing]. The difference is the projected profit.

8. Controls – outlines the control that would be used to monitor the progress and allow higher management to review implementation results and spot products that are not meeting their goals.

1.8 Ambush Marketing

Ambush marketing occurs when “another company, often a competitor, intrudes upon public attention surrounding an event, thereby deflecting attention towards themselves and away from the sponsor”. This “intrusion” may create or contribute to consumer confusion over the real sponsor and can reduce the benefits the actual sponsor might otherwise have realized. Critics of ambushing argue that is transfers the benefits of sponsorship to non-sponsors, who become the real beneficiaries of the event. E.g. In 1990 Coca Cola became the official sponsor of the Football World Cup but Pepsi was sponsoring the strong Brazilian side. Although irritating to Coca Cola, Pepsi’s behavior was not illegal as the sponsorships it entered into were all legally available to it.

1.9 Marketing Level Sponsorship Planning

Sponsorship objectives, strategies and objectives are often established within the framework of a firms marketing communication program. That is, sponsorship is viewed as a tool for achieving marketing communication objectives. However, the role of sponsorship in a club’s strategy should be defined early in the strategic marketing planning process. If sponsorships are managed as a resource, they should figure prominently in a club’s overall marketing strategy and not merely a communication tool employed as part of the marketing mix. After conducting the environmental scan both internal and external, the club that posses sponsorship resources should identify them as strengths.

Analysis

PlanningDevelop Strategic Plans Implementation

Carry out the plans

ControlMeasure results

Evaluate results

Take corrective action

Develop MarketingPlans

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Chapter 2: Building a Brand

2.1 What is a Brand?

A brand may be defined as a name, symbol, design, logo or some combination of them that is intended to identify a seller’s (or group of sellers) goods or services, and to differentiate those goods and services from those of the competitors. Branding is especially important when consumers are faced with making a choice among competing brands in a given product category. Interestingly, brands extend beyond just products and services. People and organizations may also be viewed as brands. One such example is Micheal Jordan, whose “brand” influence on ticket purchases, product merchandising, television revenues, Nike products, and value as a product endorser was estimated to exceed US 10$ billion in 1998. Similarly organizations such as New York Yankees and Manchester United can also represent valued brands to sports consumers. Sponsored events are yet another unique type of branded product.

2.2 Understanding Brands Brands are perceptual entities or mental structures that ultimately reside in the minds of consumers. All the bits of information (e.g. facts, beliefs, perceptions) held in memory that are linked to a specific brand are referred to as brand associations. Brand associations include product-related attributes (e.g. physical composition of the product or service requirements) and no-product-related attributes (e.g. price, user imagery); experiential, symbolic or functional benefits associated with using the product or service, and attitudes related to the overall evaluation of the brand. The sum total of brands association held in the memory constitutes the brand’s image.

Marketers seek to create strong, favorable and unique brand associations in the minds of consumers in order to distinguish their brands from competitors and, by doing so, enhance brand equity. Brand Equity refers to the “assets and liabilities linked to a brand, its name and symbol that add to the firm’s consumers”. Seeing it more narrowly from the consumers stand point, brand equity reflects “the differential effect of brand knowledge on consumer response to the marketing of the brand”

Fans understand brands in one of the three ways: direct experience, information about the brand provided through the organization/club-directed marketing communications efforts, other commercial sources, or word-of-mouth;

2.3 Brand Equity

To a large extent, brand equity relies on the knowledge structures created in consumers’ memories by the marketer’s communications efforts. A variety of communications options exist, including advertising, trade promotions, publicity and public relations and event marketing and sponsorship etc. Secondary associations arising from the sponsorship of the sporting event/club can be leveraged so as to enhance global brand equity. Sponsorships refers to “a cash and/or in kind fee paid to a property/club in return for access to the

exploitable commercial potential associated with the property. Sponsorship allows the company to tap into consumer’s passion for the property and provides an opportunity for them to interact with the brand in the context of that passion. Sponsorship is conceived here a marketing platform in which a company’s decision to associate a brand with the property is supported by brand advertising, PR etc. Sponsorship should begin with objectives and end with objectives. That is, sponsorship is a marketing investment driven by corporate objectives.

2.4 Brand Profile at a glance

2.5 Brand Positioning

Intense competition in the region can create unprecedented need to differentiate a club brand from the other. A key branding strategy designed to create this differentiation is known as brand positioning. It is an attempt to create for the brand a unique place in the minds and heart of a consumer. When a brand is effectively positioned it provides direction for a firm’s marketing strategies, meaning that the marketing mix decisions should be made with the goal of reinforcing the desired brand position. Effective positioning of a brand via sponsorship can influence consumers’ beliefs about a brand and its superiority to competitors. E.g. If Shell Oil is good enough to help Michael Schumacher win seven Formula One Driver Championships; certainly it is good enough to put in my vehicle.

2.6 Club and Brand Fit

Fit, or congruence between objects, is an often-studied phenomenon in the marketing literature. Past research has examined fit in such context as a brand and a proposed brand extension, celebrity endorsers and the endorsed goods and even a brands country of production or origin. E.g. Arsenal Football Club an Emirates Airlines. In a study conducted examining the fit in a sponsorship context it was found that the image

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transfer between the event/club and sponsoring brand was enhanced when respondents perceived either a functional (brand is used in the event) or image based (abstract perception) similarly to exist between image and brand. Other studies found that a positive relationship between degree of fit and respondents interest in the sponsor, attitude towards the sponsor and intension to use the sponsored product. Still other studies found a degree of similarity in the personality of the brand and sport.

2.7 Brand Level Sponsorship Planning

Once marketing objectives have been established, the next step in the strategic marketing planning process is the formulation of a marketing mix that outlines the strategies that will be employed at the brand level in pursuit of a firm’s marketing objectives. Often, it is this stage that sponsorships first come under consideration. Sponsorships draw the attention of many managers as they evaluate the promotion element of the marketing mix. Expenditures for sponsorships in the past decade have grown at rates faster than expenditures for mass media advertising and sales promotion. A primary reason for this trend is that sponsorships avoid media clutter and offer an environment in which a brand can communicate with its target market and distinguish itself from the competitors. A key brand building benefit offered by sponsorship that can we leveraged within the framework of a firm or brand’s marketing strategy is the articulation of brand position.

Chapter 3: Consumer Culture

3.1 What is Consumer Culture?

A culture may be understood as a pattern of beliefs, values, meanings and customs shared by a group of people, often existing at an implicit or taken-for-granted level. Consumer culture suggests that consumption - the act of buying goods or services - is a cultural activity, one imbued with meaning and driven not just by practical or economic factors. Mapping and exploring the business implications of these cultural meanings is one of the principal functions of qualitative market research.

3.2 Consumer Identification and Loyalty

Sociologically, sport teams are groups to which individuals relate. It can also be a groups as “one that is psychologically significant for the members to which they relate themselves subjectively for social comparison and the acquisition of norms and values…which influences their attitudes and behaviors.” A spectator is said to be highly identified with a team when they perceive a “connectedness” to the team and feel that the team’s successes and failures are also his or her own successes and failures. As such, team identification is a more specific instance of organizational identification.

Naturally, there are large variations in the extent to which individuals identify teams. Spectators falling on different points of the identification spectrum also act differently to the team. Low identified fans are likely attracted to the team for entertainment value and opportunity for social interaction. These fans have little emotional or financial commitment to the team. In contrast, highly identified fans display long term loyalty to the team and support the team through both their time and financial commitments. In general, one’ sense of self is enhanced by membership in the group with positive elements and by rejecting membership in the group with negatively perceived elements. As such, self-esteem maintenance serves as a motivation for highly identified to actively discriminate between in and out-group members.

3.3 Characteristics Affecting a Fan/Consumer Behavior

Cultural factors are the most basic cause of a person’s wants and behavior, thus it is a set of basic values, perceptions, wants and behaviors learned by a member of society from family and other important institutions. Clubs must be aware of such trends, especially in a multicultural environment, as it leads to the creation of new products that might be wanted by the fans. You need to have a different approach if you want to extend your fan base to A subculture is a smaller group of people that share the same value systems based on common life experiences and situations including; nationalities, religions and racial groups. These subcultures are important to markets as it allows them to target specific segments of the market. e.g. A group of friends supporting opposite teams watching a match together. The common passion there is the sports and the support for each ones team.

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3.4 Types of Buying Decision Behavior

Types of buyers differ from product to product the diagram below shows the four different types of fan behaviors, based on the degree of consumer involvement and differences among brands.

1. Complex Buying Behavior – situations characterized by high involvement of the consumer in a purchase and significant perceived differences among brands.

2. Dissonance-reducing buying Behavior – is a situation characterized by a high involvement of the consumer with a few perceived differences amongst the brands.

3. Variety-Seeking Buying Behavior – is a situation characterized by a low consumer involvement with a significant perceived difference between the brands.

4. Habitual Buying Behavior – is a situation characterized by a low consumer involvement with few differences between the brands.

3.5 How does this apply to a club?

We have already established above how fans/consumers perceive a club as brand. In the case of Michael Jordan mentioned above his name is not only synonymous with Chicago Bulls (Basketball team) but also with Nike and Air Jordans. So the different products associated with a club are very important in influencing their buying behavior. Products need to be carefully developed whether it a match day ticket (visually appealing) or a club credit card (e.g. Manchester United Credit Card) to cater to fans. The buying patterns above extend not only to the club but also their various sponsors as the fans have a higher regard for them as it is one of the sponsors. The right sponsor association with a club can drive sales and merchandise to great levels if taken seriously. Marketer’s need to factor all these things, if they want to effectively establish their clubs in the market.

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Chapter 4: Sports Sponsorship

4.1 What is Sports Sponsorship

Sponsorship is a financial or in-kind support/service of an activity to reach a specified business goal. However, sponsorship [a qualitative medium] which promotes the sponsee, should not be confused with advertising [a quantitative medium], as it often is! Sponsorship offers significant opportunities for distinct marketing and competitive advantages, further showing support of the event. Sponsoring opportunities include; international lounge or VIP room, press rooms and shuttle buses. Moreover, sponsorship allows you to reach a specific target niche market without delay, thus having a dramatic influence on customer relations.

Sponsor on the whole has changed dramatically since the 1980s, with new forms of technology and communication channels from one stationed television to cable TVs, from billboard signage to the internet. The world is changing and marketers have to rapidly adapt too!

Due to these new channels problems have arisen creating more difficulty in reaching a global audience (customer) such as,

1. The division of audience into smaller groups due to a wide spectrum of media outlets known as audience fragmentation.

2. Information overload – a state of having too much information to make a decision or remain informed of a topic.

3. A perceived lack of time that does not enable one to come across such marketing.

4.2 Reasons for Engaging in Sponsorship

Sponsorship offers the possibility of achieving several goals through –

1. Enhancing image/shaping consumer attitudes – Using sponsorship that enables you to appeal to your market is likely to shape buying attitudes and help generate a positive reaction.

2. Driving sales – Allows for sponsors to showcase their product attributes.

3. Creating positive publicity/heightening visibility – Creating positive publicity helps create a heightened visibility of products and/or services.

4. Differentiating from competitors –Allows your club to stand out from others and allows for smaller clubs a platform of opportunity to compete with the more dominant in the field.

5. Helping with good “Corporate Citizen” role – This is a powerful tool for sponsorship as this enables the community to view the club as a good Samaritan and goodwill.

6. Enhancing business, consumer & VIP relations – This type of sponsorship is attractive to most commercial clubs as it allows for the opportunity to meet and greet with key, high-profile, potential customers and build solid fruitful relationships with outside companies.

Sponsors are like your customers and should be treated as such, thus the club should always remain in control of the sporting aspects of the event but permitting the sponsor to have influence elsewhere within the event. The more opportunities for participation the club can offer to the sponsor, the easier it is to sell his support and considered for a long-term project.

To ensure long-term success of sponsoring arrangements, major and minor sponsors must be matched to appropriately sized events. Sponsors should receive maximum exposure for their budget whilst the club’s sponsoring income is optimized.

Size of Event Type of SponsoringSmall event One sponsorEvent series Major sponsor for entire event series and

other sponsors for each individual event, or a number of sponsors for the series and a major sponsor for each event

Large international event Various levels of sponsorship

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The distinction between sponsors and official suppliers should be made clear to participating sponsors. A sponsor should pay 5-10 times more than an official supplier and places financial resources at your disposal or covers expenses incurred by the event or in the course of its preparation, whereas an official supplier offers mainly goods or services, usually free of charge or sells to third parties during the event, with a portion of the proceeds paid to you.

Sponsorships as a services allows for the following sources of revenue for your club;

Possible sponsors include the following categories;

4.3 Creating a Sponsorship Package

The key to creating a successful sponsorship package is good preparation. The presentation should include information about the activities of your sponsor, as well as, a presentation of the ideals and objectives of the club.

4.4 Body of a Presentation

1. The introduction should take approximately 20% of the total presentation time thus, the important that should be focused on is the requirements of the club and the advantages the club can offer the sponsor.

2. The main body of the presentation is 70% and should outline specific selling points for the club. In this section the club should being with selling the benefits to the sponsor [research should be made to understand what the sponsor’s needs are to ensure selling the benefits runs more smoothly]. Supporting your argument with details, facts and figures [provide any market research results about effectiveness of sponsoring and the success of organizations that have previously sponsored your event].

3. The conclusion should form 10% of the presentation and consists of a repetition of the main selling arguments, leaving your strongest for last.

Sponsors are always interested in seeing their benefits and a return on their investment thus to show optimal benefits including in the following areas;

1. Company marketing2. Company advertizing visible on [surrounding] the event area3. Inclusion of company name in media4. Direct selling5. Corporate entertainment

After the event however, most sponsors should be informed about the success of the sponsoring effort and this a full report should be given within 30 days at the end of each event. This shows the sponsor that your club is attentive and takes care of them and hopefully lead to future sponsorships for more of your events.The report should include some of the following;

1. Photos2. Video recordings3. Press extracts4. All printed materials with the sponsors logos

4.5 Events Classification

There are several types of events that a club can stage. As you can see to the right, there are four categories such as; Local events, Major events, Hallmark events and Global events. These events are classified in

Entry Fees Corporate hospitality

Product licensing Retail salesAdvertizing in event programs LicensesSponsoring Membership fees

Watches Airlines Clothing

Car industry Banks DrinksBusiness customer services Electronic equipment Real EstateFinancial services Oil industry Household appliancesCredit cards Car rentals HotelsInsurance Telecommunications Furniture suppliers

Your presentation should consist of the following;

Use a computer program such as; Power PointPresent your club by using 3-4 slides, with a maximum of 5 minutes to explain each slide [stud-ies have shown that the audience attention span declines after 15-20 minutes thus, any impor-tant information should be said clearly before the final slide]The font size and type should be large and clear enough to ensure legibilityPrepare copies of the presentation with enough margin space to use for notes by your audience

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Case Study:

ANS’S STRATEGIC OBJECTIVES ?

Provide a world class service for customers and stakeholders As/nzd iso qulaity standards- organisational & operational performance- data analysis & feedback- internal

& external

Deliver a world class events programme 2006 - 43 Events - 1.25 Million spectators

Optimise all revenue streams & commerical opportunities Naming rights- television rights-stadium members-sponsorship-advertising-ticketing-event hire- telephony -

the internet - corporate hospitality- catering - merchandising - tours - exhibitions - conferences:

Maximise stakeholder relationships Afl - arl - aru - stateof orging - ffa - nswcc - nswrfu - waratahs - souths - bulldogs - westtigers - speedblitz blues

- swans - sopa - nswg :

Sports promotions & event promotions Souths - bulldogs - westtigers - speedblitz blues - swans - waratahs - hiring agreement (5 - 15 years) major

concert & event promoters - hiring agreements ( 1-3 years )

ANZ’S VISION

Aim”to make the greatest things happen ! “

How ? Understanding our stakeholders needs Attracting & rewarding the best people Striving to exceed expectations Challenging the status quo Making events bigger Providing a welcoming environment for all Taking pride in everything we do Delivering the ultimate live experience

Set’s the framework for corporate & operational excellence

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Chapter 5: TV Commercial Right

5.1 TV rights future :

Clubs of five European countries head the football ‘s economics , in : ( England – Germany – Spain – Italy – France ) .

Total income 13,6 billion euros , from the following activities :1. TV Rights = 41% 2. Business investment = 39%3. Matches revenues = 13% 4. Brands of teams and players = 7% Ranking of the world ‘s richest leagues :

1. Premier League ( England ) 2,300 million euros 2. Bundesliga ( Germany ) 1,400 million euros3. Liga ( Spain ) 1,300 million euros 4. Calcio ( Italy ) 1,200 million euros 5. French League 1 million euros

Total = 7 billion euros

Price increase rate of Foreign Leagues in the Middle East since 1994 :

1- Calcio 1994 = 60000 per season X 3 seasons = 180000 dollars2- Calcio 1997 = 150000 per season X 3 seasons = 450000 dollars3- Calcio 1999 = 300000 per season X 3 seasons = 900000 dollars

Price increase rate of Foreign Leagues in the Middle East since 2003/2004 season :

1- Champions League 2003 = 6000000 per season X 3 seasons = 18000000 dollars

2- Champions League 2006 = 16000000 per season X 3 seasons = 48000000 dollars

3- Champions League 09/2010 = 86000000 per season X 3 seasons = 204000000 dollars

Factors that bring up the Middle East to a new market for TV rights: 1- Supply and demand .2- A multitude of sport networks and channels competing .3- Lack of parallel strategy in the channels .

4- Lack of attention to the profit and loss elements .5- Differences between strategies adopted by government and private or commercial channels.

How to reduce the phenomenon of the surge in prices of TV rights in the Middle East :

1- Focus of government channels on the local sports activities across the country as one of priorities and keep away from the luxuries . 2- Coordination between private or commercial competing channels in order to develop a clear strategy to enter the auction of Foreign Leagues TV rights .3- Division and distribution of TV rights among a number of sport competing channels in the event to go to auctions and joint purchasing of these rights ( Arab channels Lobby ) .

4- Integration of sport competing channels in a single network as in the case of ( Arab States Broadcasting Union ) .

5.2 Marketing Strategy of TV Rights :

1. Setting up a company emerging from the Federation of the game to undertake the responsibility of marketing the League professionally .

2. Sale of TV rights and advertising sponsorship to a major company, provided its commitment to the regulations and rules coordinating the relationship between the Federation or the Sport Council and the sport clubs .

3. Creating a percentage shared between the Federation or the Sport Council and the clubs according to their own championships, by a rate ( 20 - 80% ) .

4. Classification of League clubs into number of levels to shape the distribution of funds gained from the sale of rights .

5. Developing various activating soccer championships associated with the major championships.

6. Finding a formula or legislation to elucidate the authority of negotiation and sale granted to the four bodies :

Federation of the game . Sport Councils . Marketing companies . Clubs

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Factors on which satellites networks rely to assess the leagues and championships in the Middle East :1. FIFA ranking.2. Championships and international & continental participation . 3. Level of League technically and competitively . 4. Derbies among teams .5. Big names in coaching and international icons plus professional players .6. Fixtures ( programming season ) .

Types of privileges in TV rights :1. Terrestrial broadcasting rights .2. Encoded broadcasting rights .3. Free broadcasting rights .4. Summaries rights ( Highlights ) or goal shots only which are sold to international news agencies .5. Delayed broadcasting rights .

Basics on which TV rights of each League are assessed :1. Country census .2. Number of clubs and their classification .3. Fans attendance for each team .4. Number of home fans and club passionate .5. Advertising market size in the country and corporate position .6. Per capita income .7. Marketing equation , including the following :

Examine the market size ( advertisement , subscription). Study the feasibility of purchasing and its division according to statistical percentage average . Chart the growth rate of the index during the first three years . Take into account the financial cost of technical , logistical and productive services of transport .

Standard specifications that should accompany the selling process of TV rights :

1. Mode of TV broadcasting and technical equipments which include the following : Number of TV cameras and method of distribution. Quality of cameras used in TV broadcasting (Analogue , Digital , High Definition). Technical equipments associated the TV broadcasting . Qualified personnel to work in the TV broadcasting team.

2. Organizing the coverage of TV stations and their correspondents as well identifying the coverage areas as follows :

Before the match –Pre-match After the match – Post-match With players - Mix Zone Flash interview Play out

3. Regular production of summaries ( Highlights ) for the League’s rounds , broadcasted after the match .

4. Establishing websites dedicated specifically to the Leagues , (E.g.: www.uefa.com, www.fifa.com , www.premierleague.com , …. )

To display all matters relating to the League , including :

* Teams / Players / Coaches / Championships table / Club history , Titles and Honours / last and next round scenario / Statistics / …. Etc .

Reference

1. Dubai International Sports Conference2. U.A.E. Professional League3. Project Study on Best Commercial Investment in Dubai Clubs4. Principles of Marketing - Philip Kotler and Gary Armstrong