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