sports marketing notes

7/27/2019 Sports Marketing Notes

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Factors influencing event attendance

Motivational factors (Motivation Scale for Sport Consumption)

1. Knowledge2. Aesthetics3. Drama4. Escape5. Family6. Physical Attraction7. Physical Skills (Aesthetics)8. Group Affiliation (Socialization)9. Vicarious Achievement

General fan motivational factors affecting the level of sport spectator involvement with two aspectsof sport spectator behavior (socio-psychological and behavioral involvements):

Perceived value from various product benefitso Defined as the perceived difference between all the benefits and all the costs of

consumptiono When perceived values of various product benefits exceeds consumers' expectations

in their consumption evaluation process, will affect future decision to attend eventagain favourably. (Overall game experience)

Fan identificationo the personal commitment and psychological affiliation fans have with a sports team or

athleteo participants attended games to be loyal fans that consistently support their favourite

teams or players rather than to simply experience a sporting event Involvement opportunity (Most significant)

o Refers to a variety of fan services provided by the sport organization to enhancespectator involvement

stadium accessibility, convenient transportation to venue, convenient gametimes, facility aesthetics, information availability on game schedule and ticketprice, direct interaction with fans through the team website

o Creating or providing various involvement opportunities help organisers facilitate astrong affiliation with fans and hence spectatorship.

Establishing fan clubs, creating newsletters Reference groups (Social interaction with significant others)

o Defined as individuals who influence the information, attitudes, and behaviors of other group members

sharing experiencessocial interactionsenhancing the image of sport products

o Reference groups influence spectators to attend the games (rely on personalrecommendations, visible information, and self-image from reference groups to informtheir decisions to attend games.)

Socio-psychological involvementSpectators' psychological attachment to sporting events is an essential predictor of spectator behavior -> allows marketers to identify the pattern of sport consumer behaviour associatedwith the different levels of motivation.

o Psychological involvement represents emotional responses that spectatorsexperience during the sporting events or are associated with their team in general.


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(May not attend event in person, may not be an active long-term spectator, may notdisplay enthusiastic cheering)

o Self- esteem enhancement (Fans feel an athletes/teams victory is their own victory)

Behavioural involvement

However, behavioural aspect of spectators also plays a significant role in sport spectator involvement because a person must participate in sport events in a direct or indirect way tobecome a sport event consumer.

o Considered displays of positive support for the team. (Purchase tickets, searching for information about the team or player, reading sport-related magazines, talking aboutteam/event to significant others)

o Should be included and measured to predict sport spectator behaviour

Application:- The ideal sport fans are those who have both high psychological and behavioural involvement(Decreased price sensitivity, decreased performance/outcome sensitivity)

- To improve the level of sport spectator involvement for fans who have intense socio-psychologicalinvolvement rather than behavioural involvement, marketers need to provide convenient andextensive involvement opportunities for their consumers.

- Creating an image and devising them that provide their fans and spectators a means of beingaffiliated and identifying with the team and sporting event.


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Segmentation of Fan Market

1. Player

- More likely to enjoy watching others compete in that sport (contribute to spectatorship)

- Understand the skills required of the athletes that they watch. Seek information about their chosensport, teams, athletes

- Invest considerable time and money in sports in general, fav sport in particular

2. Patriots

- View sports as a means of establishing community and national pride (fufills social needs)

3. Appreciators

- Admire the skills of athletes

- Drawn by the talent and by the aesthetic qualities exhibited in the sport

- Not necessarily who wins or loses, rather it is the opportunity to witness excellence

4. Socialites

- Sports provide one way in which they can interact with their friends (satisfies their social needs)

- Decisions as to which events to attend are significantly influenced by an indivs reference groups.

- The alternative entertainment or activities at the venue rather than the sport itself that attracts thesefans

5. Friends

- Provide support to friends and family members who are participants in the event

- DIFF from socialites: not social interaction with their friends that is important

- These fans may have a basic understanding of the sport, but there is little or no involvement beyondthe effort to follow the exploits of those who are close to them.

6. Voyeurs

- Most impt aspect: Sex appeal

- Not the sport that they find exciting, but the physical attractiveness of the participants.

Aggregate Participation Market

1. Excitement-seeking competitors

- Inclined to engage in risky activities

- Mostly male, young, single

- View their actions as a competition against others or they may see it as a personal challenge toaccomplish something few others can do.


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2. Getaway actives

- Vacation-prone

- Primary motivation is social objectives (Fun with friends, family)

3. Fitness-driven

- Primary motivation is personal improvement

4. Health-conscious sociable

- Motivated by both personal improvement and opportunities for socialization

- Activities not as stressful as those undertaken by the more-active segments

5. Unstressed and unmotivated

Sport Specific Segmentation

1. Different levels of playing ability2. Different motives for playing3. Different attitudes towards practice4. Different frequency of play

Segment the market

Target markets are selected from the array of identifiable market segments

1. Sizablea. Number of people, purchasing power b. Niche market can be promising

2. Reachable (Accessibility of group)3. Measurable

A corresponding marketing mix is developed for each selected target market (Market segmentation and theresultant differentiated marketing strategy to provide a better fit for each consumer)

- Using traditionalstrategies to integratesports in order to createa sports overlay to sell

non-sports products andreach ones targetmarket effectively.

Traditional: adidas and FIFAWorld CupVenue naming rights:Reebok Stadium

Endorsement: Tiger Woods& Nike Golf Licensing: New Balance &Melbourne Football Club

Sponsorship of a sports entityto sell non-sports productTraditional: Coca-cola andOlympicsVenue naming rights: Citibank &MLB stadium

Property naming rights: OCBCCycle Singapore 2012Endorsement: McDonalds &Yaoming

Target market: NBA

targeting ChinesefansProduct: New modelof jogging shoesPromotion:Newspaper adregarding ticketsDistributionPrice


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Mainstream strategies

Target Market Pricing Decisions

o Hotels providing discounts for athletes or fans during sporting events

Producto Hospitality package featuring tickets to a sports event (to sell hotel rooms)

Placeo Marketer selling its goods and services at a sports venueo Marketer selling its non-sports products at a retail store specializing in sports goods

Promotiono Advertisingo Personal selling

Businesses providing tickets for a sports event to clients or prospectso Sales promotion

Free sample (distributed outside a sports venue)Contests (chance to win sports event tickets)Point-of-sale display (Signage that features a sports theme at a supermarket)

o PR/PublicityDissemination of positive publicity through the media

Aligning with sport for a charitable cause Press release regarding marketers support of a local athlete

o EXCLUDES SPONSORSHIP (not based upon any official sponsorship-based relationshipwith a sports entity)

o Emerging promotional strategiesProduct placement, Virtual advertising

Sponsorship

- Should have a synergistic effect on marketers promotional efforts (Fits with promotional mix)

- Investing in a sports property to support overall organisational objectives, marketing goals andpromotional strategies

- Marketer pays cash or in-kind fee in return for access to the exploitable commercial potentialassociated with the property.

- Sponsor and sponsee have strategic links (VISA credit card and FIFA have similar target markets)

Advantages:

Credibility (likely to think that the product does indeed have merit, otherwise the marketer wouldnt use it)

Improves imageo By sponsoring the Volvo Ocean Race, the automaker believes its association with a

sport and an event that both appeal to an upscale market will further enhance its ownimage

o Yachting conveys an image of safety and new technology, which is consistent withthe image that Volvo seeks to nurture

Prestigeo Associate with elite events/athletes (that provide an aura of exclusivity) to enhance

their own prestigeo May not seek to achieve an acceptable return on their sponsorship investment


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o Rather seek relationships that consumers will look upon in a favourable way Internal Morale

o Employees given the opportunity to become involved with a sponsored property(Attend the event, engage in the entertainment of their companys clients in ahospitality facility that is provided by the sponsored event -> Entertainment

opportunity)o Instil a sense of pride within the employees that they are associated with a company

that is associated with a popular sport/athlete/event. Sales opportunities

o Create greater awarenesso Reach new target markets (Sell the product at the event venue, property may

become a potential customer ->Philips Electronics providing new TV monitors atsports venues)

Access to live audience (enhance consumer receptivity to the sponsors message)

Advertising is Superior Sponsorship is Superior Persuasive Message CredibilityDelivers standardized message ImageCan guarantee reach PrestigeEasier to evaluate its effectiveness Internal moraleViews as a stand-alone promotional tool

Sponsors must spend considerably moremoney on other promotional effortsdesigned to support its sponsorship

Sales opportunities

Access to live audiences

Sponsorship Objectives

Drive saleso Through better market penetration and growth in market shareo Establish a sustainable competitive advantage (SCA) over others by virtue of its

relationship with a sponsored propertyo Fans of particular events/athletes recognize their sponsors, express a preference for

their products over those of their competitiono Shape consumer attitudes in such a way so as to achieve a competitive advantageo Overcome advertising restrictions (tobacco products)o Cut through advertising clutter

Improve imageo

Attaining positive public relationsSponsoring events for which there are strong emotional ties within the market(Nikes sponsorship of the Brazilian national soccer team)

Capitalize on fans pride and patriotism to create a positive image for itself o Seek sponsorship opportunities that enhance the companys community involvement

and portray is as a good corporate citizenSponsorship of a local amateur sports team or facility

Create greater awarenesso Increase visibility in the marketplace.o Create awareness of a new product (Coca- colas new energy drink burn entered

Formula 1 racing with a sponsorship deal with the Lotus F1 team) Provide hospitality opportunities Enhance employee morale


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Sponsorship Components

Category exclusivityo Prohibits the simultaneous participation of direct competitors in opposing sponsorship

roles.o Goes beyond sponsorship designation (competitors not even able to purchase time

for TV advertising) Signage

o Reinforce the fact that it is officially associated with the evento Number of signs provided, location of signs

Granting of distribution rights for their products at the event venueo Sell their products at the venue (No competitors products can be sold)

Hospitality areas Complimentary advertising

o Printed event program, free TC spots Free tickets, rights to purchase additional tickets Link to sponsees website Right to use event trademarks and logos Right of first refusal

o An agreement that allows a current sponsor the opportunity to assess the newsponsorship program and either accept or reject it before the event solicits sponsors

Leveraging : efforts to support ones sponsorship with additional strategic initiatives (event -orientedadvertising)

Leveraging techniqueso

Use theme-based advertisingCreate advertisements that reflect the character of the event/athlete beingsponsoredIntensify the relationship between sponsor and sponsee such that consumersrecognize the sponsor and are more favourably predisposed to purchase itsproducts

o Advertise during the broadcast of the sponsored event, event programo Incorporate the sponsees logos on packaging and in promotional effortso Provide purchasers of sponsors product to purchase tickets at a discounted price o Engage in cross-promotions with co-sponsors

Ambush marketing: Non-sponsors trying to create the misperception among consumers that theyare associated with a property/event.

Why ambush:

High costs of rights feesIt worksConsumers not offended by ambushersAttitudes within the industry changing (evolving from parasitic to appropriate)Category exclusivity may prevent company from being an official sponsor


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Piracy vs Ambush Marketing

Illegal activitieso Infringements of intellectual property rights (unauthorized use of an events

trademarks in advertisements, sale of counterfeit merchandise)o An overt claim to be officially related to a property

Ambush marketing legal

Ambush Marketing Strategies

1. Sponsor media coverage of the eventOrganisers do not control the broadcast, have no influence as to which companiesare allowed to advertise during the eventHence, ambushers can purchase time to deliver their advertisements during thebroadcast of the eventAmbushers do not reach the live audience, they reach the media-based audience

2. Sponsor subcategoriesAmbushing up

i. Involved with an official sponsorship of some lower level but uses techniquesdesigned to create the false impression that it is involved with the event atsome higher level of sponsorship

ii. No need for the marketer to be targeting a direct competitor 3. Make a sponsorship- related contribution to the players pool

Players salaries may be supplemented by contributions from which the contributor may be acknowledged via logos on uniforms or recognition in TV interviews. (Speedoand Michael Phelps)

4. Purchase advertising time during rebroadcast

5. Engage in advertising to coincide with the timing of the event

When should ambush marketing be considered?

When a firm is doing a poor job supporting its official sponsorshipWhen there is a good fit with the target marketWhen adequate resources are availableWhen there is company wide support for the strategyWhen it does not conflict with the ambushers existing sponsorships When the ambusher is prepared for controversy

When it is aware of the legal restrictions

Protection from Ambushers

Sponsors should learn how to ambush so that it can better assess its own vulnerabilityLeverage the sponsorshipClean stadium

o Devoid of non-sponsor signageo Limit a non- sponsors ability to advertise or place signage in close proximit y to the

event venue)

Establish more control over advertisingo Resistance by broadcasters as they sell time to advertisers


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o Make a Time-buyo Restriction on the use of virtual advertising

Computer-generated imagery that appears as signs on broadcastBroadcasters could place ads for ambushers on the field of play or onstructures such as signs and scoreboards (Existing signage of a sponsor

could be supplanted by virtual signage for the ambusher)Limit the ability of teams and players to endorse brands that are not officially associated withtheir events

o Inhibit players ability to supplement their income with endorsement opportunities Educate consumers

o Publicize sponsors and express appreciation for their role in staging the eventEngage in surveillance programsLimit number of sponsors

o More sponsors lead to confusion, more confusion opens the door to effective ambushmarketing

Event could incorporate the sponsors name

Endorsement

- Special case of sponsorship (Personality sponsorship)

- MATCHING PROCESS (Celebrity needs to fit): Target market, Product, Brand

Endorsement Applications:

I use it, so should you I am an expert, and I think that you would be smart to use this product: I think its cool, so you should use it

o Does not attempt to portray the endorser as either a user of the product or an experton the product category

o Relies upon the ability of the endorser to break through the clutter of advertising intodays marketplace

o Admiration of the spokesperson transferred to the product

Factors favouring use of athletes as endorsers

More effective with sport-specific productRecognition can help cut through clutter

Meaningful recognition rates for association between athlete and brand

Factors impacting endorsement effectiveness

Endorser is a high achiever Has believability/credibility

o Why is the celebrity endorsing the product?o When Tiger Woods five -year contract with Rolex watches expired, he signed a new

contract with competitor Tag Heuer. Was it because Tag Heuer offered a morelucrative deal, not because they produced a superior watch? Switch financially

motivated?


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o If the endorsers is being cast as an expert, then are must be source credibility. (Is her truly a knowledgeable source of information?)

Is knownIs Likable/Popular Is recognizable (face and name)

Provides ease of recallo Spokesperson can be counted on to secure a place in consumers memory o When consumers see the product. Endorser will come to mindo Achievement needs to be combined with a meaningful frequency for exposing the

target market to the endorsement messageIs congruent with target marketIs physically attractive (leads to a better perception of the product, but may not lead people topurchase the product)Provides prospects for continuity

o Endorsement campaigns tend to be more effective when there is an ongoing, long-term relationship

o Does not lose market appeal

Problems with celebrity endorsements

The CriminalThe Prima Donna (difficult for the endorser to accept a secondary role, product may berelegated to secondary focus instead)The Fading Star The Lightning Rod

o Public offended by statements or positions taken by endorser. Marketer pressurizedto drop the controversial spokesperson

The Tongue-tied (Unable to make impromptu comments regarding product, reducebelievability)Ambush marketing

o Occurs when a celebritys name or likeness is used without the legal right to do so.(Piracy?)

o Attempts to convey the ideal that the celebrity endorses the productCosts (Worries that high cost will be passed along to the consumer in the form of higher prices)Misrepresentation of use

o Endorsement conflicts (athletes endorse one brand of product while the governingbody involved with the athletes sport endorses another brand)

o May seem that athlete reluctant to full embrace their sponsorsUnwholesome non-sport products being endorsed by celebrities

Overexposure (adversely affect endorsers effectiveness)

Licensing

- A value-adding process that provides revenue generating opportunities via the conveyance of theright to use another organizations intellectual properties for commercial purposes

Scope of the agreement

Specific products for which licensing rights will be granted


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Degree of exclusivityGeographic scope

Benefits for the licensor

Revenue stream No significant investment required (licensee bears the risks associated with the

manufacture, distribution and marketing of officially licensed products) Broader product assortment allows the licensor to reach market segments that might

otherwise be inaccessibleo Array of products bearing the trademarks of the licensor will include many that are

outside its core business. Licensor is able to ensure that products beyond its area of expertise are available for consumers.

Create consumer awareness and interestOpportunity to control the standards of quality for the products and array of productsbearing its trademarks

o Firms that seek to enter and agreement as a licensee have to seek approval fromlicensors first. Required to submit exact replicas of the products that they are seekingto manufacture and sell

o This process allows the trademark owner to select only those that meet specificstandards

o Protect its image

Benefits for the licensee

Capitalize on the licensor s brand equity Capitalize on short-term phenomena

Capitalize on economies of scaleAttain a higher level of profit because of the new price point that is reached by virtue of theaddition of a popular logo

Strategic initiatives for sports products

Spectator sports

- Selling tickets to sports events

- Changing the core product (the game itself, whatever takes place on the field of play, including themanner in which it is conducted, the interpretation of rules and regulations)

Should have positive economic consequencesShould not be made on the basis of implications for the mediaTradition is often is the basis for resisting change

o Use dramatic changes as a way of differentiating their version of a sport from theoriginal version

o Capitalize on the strengths of a sport and implement changes that overcome itsperceived weaknesses (Increasing the intensity of action and the level of scoring)

Core changes are often based upon the emergence of competition and its impact on thestatus quo

Core alterations will not overcome poor quality on the field of play (low-quality imitation of asport)


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Instead of changing the core, consider changes to the peripheral producto Elements surrounding a game over which the organizer can exercise some

reasonable level of control (entertainment during intermission, post-game activities)

Participation sports (Product-focused)

- Efforts to increase the number of individuals who engage in sports

using a traditional marketing mixo Establishment of competitive amateur leagueso Provide trials

capitalize on the sport organizations sponsorship of entity (star athletes directly endorse thesport->sports-dominant)

SASS (Sporting goods, apparel, athletic shoes, sports-related products)

- Demand a direct outgrowth for the demand for spectator and participation sports, but not always thecase

- With the ability to communicate with individual consumers, we are now witnessing the advent of one-to-one marketing (marketer has to now customize its efforts to coincide with the characteristics of anindividual member of its target market) -> customization services

New target markets require different sporting goodsNew participation sports emerge or are introduced in new marketsParticipation ratesIntroduction of new productsModifications to existing productsNew players create opportunities

Subject to style changes (self and team) -> Emphasis on style , fabrics, brandsPart of everyday wardrobe nowNot just for athletic endeavors

Price considerations

Factors that influence price

1. Situational factorsUnusual circumstances that tend to impact consumer behaviour

Result in a consumers decision to make a purchase that he could not make under normal circumstances (unplanned)

Teams performance (Winning creates demand, affects ticket sal es for the followingseason)

Teams move to a new stadium 2. Costs3. Prices charged by competition4. If supply exceeds demand, prices tend to gravitate downwards5. Marketing objectives


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Does the organization want to covey a prestige image and target an affluent market?Does it prefer to pursue the mass market?

6. Legal considerations (Regulations restrict the price-setting flexibility)7. Fans perception of the quality of the service encounter (beliefs and attitudes towards the

product)

Some sports perceived as superior products as compared to others Willing to pay more if facilities are views in a better light (stadium exuded a fantastic

atmosphere) Fans enjoyment not just measured in terms of quality of play, but the whole match -

day experience8. Develop a pricing strategy that is consistent with the other elements of the marketing mix

General Implementation Strategies

1. Cost-plusBuyers pays all of the costs associated with a product along with a fee to the seller Development of new products (Pricing of a new stadium: Final price charged to thebuyer includes direct costs such as those incurred in the design and construction of the stadium plus a pre-determined fee that is stipulated in the contract)

2. Markup pricingStarts with the cost of an item as the base and adds a specified percentage of thecost to determine the final price

3. Promotional pricing4. Bidding5. Yield management

Used by marketers of spectator sports (attempt to fill up empty seats by offeringdiscounts or complimentary tickets. Look good on TV, pay to park and purchase a

variety of sports-related products at the venue)Goal is to match supply with demand

6. Target returnMarketer has a firm understanding of its costs and a reliable sales forecastMarketer seeks to attain a specified ROIThis approach applied to special events that have a high probability of selling out.Marketer can hence estimate its fixed and total costs and the number of fans who willpurchase tickets. By having a targeted ROI, the marketer can then determine theprice that will lead to the achievement of its profit goal

Pricing Applications for sports products

Spectator sports

1. Price tiering2. Variable pricing (establish different prices for the same service, based on timing)3. Value pricing4.

sports marketing notes

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