Aux Fundamentals

Fundamentals of Sport Marketing

Auxiliary MaterialsAuxiliary Materials

Chapter 1Chapter 1

The Sport Business IndustryThe Sport Business Industry

Some Segments of the Sport Business Industry

Sports tourism Sporting goods Sports apparel Amateur participant sports Professional sports Recreation High school and college athletics Outdoor sports Sport marketing firms Sports sponsorship industry Sports-governing bodies

Products in the Sport Industry

Participation Entertainment Equipment and apparel Promotional items Sport facilities Marketing research Management services

Sport Defined

Sport, as used in contemporary sport management and in relation to the sport business industry, denoted all people, activities, businesses, and organizations involved in producing, facilitating, promoting, or organizing any sport business, activity, or experience focused on or related to fitness, recreation, sports, sports tourism, or leisure.

Sport Management Defined

Sport Management is the study and practice of all people, activities, businesses, or organizations involved in producing, facilitating, promoting, or organizing any sport-related business or product.

Sport Industry Defined

The sport industry is the market in which the businesses and products offered to its buyers are sport related and may be goods, services, people, places, or ideas.

Some Sport Industry Some Sport Industry ResearchResearch

How to Keep Up With the Latest in the Industry

Read trade or business magazines, journals, newsletters, and Internet sites

Attend sport business conventions or exhibitions

Obtain research from sport marketing firms

Read local or national news publications

The Sport Industry Segment Model

Chapter 1 QuestionsChapter 1 Questions

1. What is the sport business industry? Give some examples.

2. Describe the size of the sport industry in dollars.

3. What is sport management?


4. What is the North American Society for Sport Management?

5 What are the many factors that influence the growth and development of the sport industry? Give examples and explain how each factor influences the industry. Why is it important to know this?

Chapter 2Chapter 2

Historical Eras in Sport Marketing

Marketing Era ModelsMarketing Era Models


1. What is the sport business industry? Give some examples.

2. Describe the size of the sport industry in dollars.

3. What is sport management?4. What is the North American Society for

Sport Management?5. What are the many factors that influence

the growth and development of the sport industry? Give examples and explain how each factor influences the industry. Why is it important to know this?

Learning ActivitiesLearning Activities

1. Create a list of sport industry businesses, organizations, clubs, and other enterprises in your city or community. Categorize everything according to the three sport industry segments created by the Pitts, Fielding and Miller (1994) model: sport performance, sport production, and sport promotion.


2. For each item on your list, list the jobs within each.


3. For each item on your list, list the sport products offered to the consumer.

4. Write to the North American Society for Sport Management and ask for information about the organization.



5. Subscribe to sport management-related journals such as the Journal of Sport Management, Sport Marketing Quarterly, and the Seton Hall Journal of Sport Law. Read and summarize the studies you find in the journals. Describe how sport management and sport marketing professionals can use the information.


6. With a group, create a list of 10 very different products offered in the industry. Determine which industry segment of the Pitts, Fielding and Miller model each product falls into and why.

Sporting Goods Industry 1899–1905 (N = 516)

Chapter 2 QuestionsChapter 2 Questions1. Identify three ways in which sport marketers

contributed to a growing sport market between 1820 and 1880.

2. What problems did Fuller encounter when attempting to market boxing in the early 1820s?

3. Were advertisements used to market the game of baseball in the 1860s significantly different from the modern advertisements used to market baseball?


4. List 10 characteristics associated with the Era of Institutionalized Development and elaborate on their significance.

5. By what year did most all medium and large sporting goods companies have their own sales force?

6. During what stage of the product life cycle does the sporting goods industry occupy between 1880 and 1920? Defend your answer.


7. Elaborate on the contribution the railroad, telegraph, and telephone provided to sport marketing.

8. Elaborate on the impact of technology during the Era of Institutional Development.

9. How does a competitor’s advertising help to sell sport? Elaborate.

10. Elaborate on how both economies of scale and economies of scope can facilitate marketing efforts.


11. How did vertical integration facilitate Spalding’s marketing efforts?

12. Identify the five reasons attributed to Spalding’s success in the 1920s. Why were these factors important to Spalding’s success?

13. Spalding has a significant learning curve advantage. Explain.

Chapter 3Chapter 3

The Global Marketfor the Sport Industry

The Four Steps in the US Customs Process

1. Filing of the appropriate entry documents

2. Inspection and classification of the goods

3. Preliminary declaration of value4. Final determination of duty and

payment


1. Diagram the relationship of the International Olympic Committee to a specific International Federation. Include a discussion of how each functions with the United States Olympic Committee and a national governing body in the United States.

2. What are the keys to successful banking in international sport marketing?


3. How does marketing a sport product internationally differ from marketing the same product in the United States?


1. Investigate opening a Swiss bank account. It could be a lot of fun and a great conversation topic among friends.


2. How would you handle the following situation? You had just completed a consulting project negotiating sponsorship deals for the Lithuanian National Basketball team and were due to be paid $10,000 in US dollars. At the last minute, you were informed that they could pay you only in the local currency. What is that currency? How much of it would you get? Would you accept payment in that form, and if not, what would be an alternative?

Chapter 4Chapter 4

Sport Marketing TheorySport Marketing Theory

Sport Marketing Defined

The process of designing and implementing activities for the production, pricing, promotion, and distribution of a sport or sport business product to satisfy the needs or desires of consumers and to achieve the company’s objectives.

Marketing DefinedMarketing Defined

Marketing is the study of people and what they buy, how much they will pay, where they want to purchase a product, and how they are affected by promotional tactics and messages.

Two Concepts of Sport Marketing

Contemporary Contemporary Sport Marketing TheorySport Marketing Theory

Sport Marketing Sport Marketing Management ModelManagement Model

Four Cs for the Four Cs for the Sport Business to StudySport Business to Study

Consumer Competition Company Climate

Promotional Methods Direct-mail advertising Radio and television advertising Local newspaper or nationally

circulated Magazine advertising Billboards advertising Special limited-time sales Special financing

Promotional Methods

Special customer services Use of specific colors on a product or

its package Use of a concert in conjunction with a

sporting event Offering a variety of product

packages at various prices Product giveaways during an event


1. What is theory?

2. What is marketing?

3. What is sport marketing?

4. What is sport marketing theory? What fields of study serve as the foundation of sport marketing fundamentals and theory? What are some of the areas of research in sport marketing?


5. What is the sport marketing management model? What are the components of the model? Define and describe each one.

6. What are the research journals for the field of sport marketing?

7. What are the different climates within which a sport business exists? Describe each one and how it affects the business.


1. (a) Select a list of people who work in the sport industry in different types of sport businesses across the United States. Interview them about sport marketing at their company. Ask them what their theory of sport marketing is. (b) Now do the same with college professors of sport marketing. Interview them about teaching sport marketing. Ask them what their theory of sport marketing is. (c) Compare and analyze your results. Give a presentation in class.


2. Go to the university library and check out textbooks in marketing. Look for the definitions, fundamentals, and theory of marketing. Compare these to the definition, fundamentals, and theory of sport marketing in this book. Analyze your results. Give a presentation in class.


3. Take this book to some people who work in the industry. Ask them to look at the sport marketing management model and to tell you if it matches the marketing activities they perform (or someone performs) in the company. Compile their answers. Give a presentation in class.

Chapter 5Chapter 5

Sport Marketing Research

Sport Marketing Research Defined

The process of planning, collecting, and analyzing data to (1) gain relevant information needed or solves a problem to inform decision in the sport business; and, (2) to enhance the body of knowledge in sport marketing as a field of study.

Marketing Opportunity Defined

A chance for a sport company to capitalize on something that will most likely be positive for the company.

Marketing Problem Defined

Occurs when something is not quite right.

Marketing Threat Defined

Occurs when something will most likely have a negative effect on the sport company.

Questions for Questions for the Sport Marketerthe Sport Marketer

Basic Process for Sport Basic Process for Sport Marketing Research DesignMarketing Research Design

Primary Sources Defined

Those sources from which information is gathered directly.

Secondary Sources Defined

Sources that contain information that someone else compiled and reported, published, or collected.


1. What is sport marketing research? Why is it important?

2. What are the purposes of sport marketing research?

3. List and describe some types of sport marketing research.


4. What are the sources of information? Give examples of each.

5. What are the primary areas of sport marketing research? Give examples of each.


1. Interview people in a variety of sport businesses, organizations, or other enterprises in your city or community and ask them what kind of marketing research they conduct and why.


2. Identify at least 10 different places you could obtain existing information in your city or community. Go to the places and research the types of information available at these places. Create a notebook of these resources and save this material for the future.


3. With a group of other students, and with the supervision of your instructor, develop a research study to determine sponsorship recognition (see appendix F). Conduct the study during a local sports event. Analyze the results and present your analysis to the class.


4. See appendix F. With the supervision of your instructor, design a study using one of the examples of surveys, conduct the study, analyze the results, determine how the information can be used by the sport business, and share the results with the class and the business.

Chapter 6Chapter 6

Segmentation, Targeting, andPositioning in Sport Business

Segmentation Defined

The first step toward understanding consumer groups, determining target markets, and informing marketing mix and positioning strategies.

Sport Consumer Market Segmentation

Defined The division of total markets into

relatively homogeneous segments.

Sport Industry Segmentation Defined

The division of the sport industry into relatively homogeneous segments.

Important Segmentation Criteria

Identifiability: segments must be identifiable and measurable.

Substantiality: segments must be of a size large enough to justify marketing mix attention.

Accessibility: segments must be reachable with the customized marketing mix.

Responsiveness: segments must respond to a marketing mix customized to that segment.

Bases for Segmentation

Sport Business Consumers

Manufacturers Resellers Sports Governing Bodies Institutions Media Sports Enterprises

A Simple Positioning Process

Step 1—Identify the target market’s product attribute preferences

Step 2—Identify current positioning strategy

Step 3—Analyze current position and the market’s preferred product attributes

Step 4—Determine a positioning strategy


1. Describe how the population of your country has changed over the last 25 years and how it is going to change in the next 25 years. How will this affect the sport business industry?

2. What types of marketing strategies are sport businesses using more often for emerging markets? Describe each one and how they work.

3. What are segmentation, sport consumer market segmentation, and sport industry segmentation?


4. What are bases for segmentation? Describe how they are used.

5. What is target marketing? Describe how to determine one or more target markets for a sport business.

6. What is positioning? Describe how to develop a positioning strategy for a product and a consumer market.


1. Using students in your class, conduct a study of demographics, psychographics, and other segmentation bases and variables using sporting goods as a basis. What did you learn about the class? How could this information be used if your company is a sporting goods retail company?

Learning ActivitiesLearning Activities2. Write down a sports product that you

purchased recently, one that is sold by more than one company. Create two columns, one labeled “My Buy” and the other “Didn’t Buy.” In the “My Buy” column, create a list of all of the reasons you bought the product. In the “Didn’t Buy” column, list of all of the reasons you didn’t buy the product from other companies. On another sheet, list all the information that helped you decide on your purchase (family, friends, advertising).


2. (cont.) Write down all the things the people told you or that you remember from the advertising. Now compare all your notes and see if there is a relationship between any of them. Why do you think you found a relationship between, for example, the reasons you bought the product from a specific company and the company’s advertising for that product?


3. With a group, determine a way to segment the sport industry. First, determine a reason for segmenting the industry, such as pretending that your group is a television broadcasting company that focuses on extreme sports events. Develop bases for segmentation. Determine an appropriate marketing mix strategy for your company.


4. Pretend that your company is a team of the WNBA. You want to increase spectator attendance numbers for each game, but you also want to increase the number of games that many of your fans attend during a season. Develop a list of the factors that have an influence on attendance and design a study that will answer the questions you have for your fans.


5. Identify some different sport businesses such as a manufacturer and a sport facility. Identify different consumer markets for the products. Develop positioning statements for each consumer market.

Chapter 7Chapter 7

Marketing Information Systems

Integration of MISfor Sport Organizations


1. What are the essential characteristics of a well-designed marketing information system?

2. What MIS sources would be available for an intercollegiate athletic program, and how would you go about setting up an MIS?


1. Select your favorite sport and consult a copy of Simmons Market Research Bureau. See where you fit in the demographic segments presented.


2. Take a trip to your local fitness center or health club, and inquire about the types of information they have on their clients. Also look at their application form if they are uncooperative with your first request.

Chapter 8Chapter 8

The Marketing Mixand the Sport Industry

Marketing Mix Defined

The strategic combination of product, price, place, and promotion decisions and strategies.

Marketing Mix Elements

The 4 Ps Product Price Place Promotion

Chapter 9Chapter 9

The Product in the Sport Industry

Product Defined

Should be understood as a concept and must be used as an umbrella term that includes goods, services, people, places, and ideas with tangible or intangible attributes.

Four Types of Utility

Form—using raw materials to produce a product

Time—making a product available when the consumer wants it

Place—getting the product to the venues where the consumer shops

Ownership—transferring ownership or possession of a product from seller to buyer

Sport Product Defined

Any good, service, person, place, or idea with tangible or intangible attributes that satisfy consumer sport, fitness, or recreation related needs or desires.

The Product Life Cycle Stages

Three Aspects of the Product Mix

Width is the number of product lines offered.

Depth is the number of items within a line.

Consistency refers to the similarity of product lines.

Nine Ways to Offer a New Product

Stages in the New Product Stages in the New Product Development ProcessDevelopment Process


1. What is a product? What is a sport product? List examples of sport products.

2. Why do people purchase sport products?

3. Define these terms: form utility, time utility, place utility, and ownership utility. Give an example of each.

4. What is product classification?


5. What is the product life cycle? What are the stages in the product life cycle?

6. Give examples of sport products in each product life cycle.

7. Why is it important for the sport marketer to know in which stage of the product life cycle each of the sport company’s products may be categorized?

Chapter 9 QuestionsChapter 9 Questions8. What is the product mix? Why is it

important?

9. How many ways might a sport company offer a new product?

10. What is the new product development planning process? What are the stages?

11. What is product identification? Why is it important? How is it used in the sport industry?

Chapter 10Chapter 10

Pricing Strategies for the Sport Industry

Price Defined

The exchange value of a good or service.

Value Defined

The quantitative measure of the worth of a product.

Perceived Value Defined

What the consumer thinks something is worth.

Developing an Developing an Effective Pricing StrategyEffective Pricing Strategy

Elasticity of Demand—Elasticity of Demand—Relatively InelasticRelatively Inelastic

Elasticity of Demand—Elasticity of Demand—Relatively ElasticRelatively Elastic

Some Factors That Some Factors That Effect Elasticity of DemandEffect Elasticity of Demand

product necessity or luxury product substitute availability frequency of purchase proportion of income available for a specific

product economy brand loyalty competition (quantity and quality) quality of the product product specialization time frame of demand

Pricing Objectives Pricing Objectives Categorized by the 4 CsCategorized by the 4 Cs

Short-term Pricing Methods

Quantity discounts (the more you buy, the lower the price per unit)

Special sales Allowances Rebates Clearance sales Promotional sales

Chapter 10 QuestionsChapter 10 Questions1. How does the consumer perceive “price”?

2. Discuss the concept of price.

3. List some examples of words used in place of the word price that can be found in the sport industry. Explain why these words are used.

4. What are the 4 Cs of price consideration? Discuss each and give examples.


5. Discuss the concept of the elasticity of demand.

6. List some examples of pricing objectives for sport.

7. List and describe some pricing strategies for the sport industry.


1. Identify sport businesses, organizations, or other enterprises and their products in your city or community that use these pricing strategies: going-rate pricing, demand-oriented pricing, price discrimination, seasonal pricing, short-term pricing, and product line pricing.


2. Identify in your city or community some of the sport businesses, organizations, or other enterprises that use the price titles as presented in this chapter such as licensing fee, admission, and purse.


Marketing Channels andDistribution Decisions In the Sport Industry

Distribution Defined

The process of getting the product to the consumer.

Distribution System Defined

The methods and channels used in delivering products from producer to consumer.

Intermediary Defined

An individual or organization through which products move from producer to consumer.

Shelf Life Defined

The amount of time that a product can remain in a good and consumable condition after being manufactured.

Complex Distribution System in the Sport

Industry


1. What is distribution?

2. Describe the different kinds of distribution in the sport industry.

3. What are distribution intermediaries? Give some examples.

4. What is a distribution system? Give some examples of systems in the sport industry.

Chapter 11 QuestionsChapter 11 Questions5. What are the factors that affect the

selection of a distribution system?

6. What is distribution intensity? Why is it linked to promotion and positioning the product? Give some examples of each type.

7. What are some examples of different types of products found in the sport business industry? Develop what you think would be some appropriate distribution channels for these products.


1. List some sport products offered in your city or community. Create a distribution system for each. Research the real costs of your systems. Give a presentation in class.


Promotion in the Sport Industry

Promotional Planning Model

Promotion Plans of Action Should Include

promotional objectives a budget personnel assignments promotional mix strategies a schedule with deadlines and time

lines an evaluation plan

Factors Affecting Decision on Promotional Mix

1. A different function for each method2. The company3. Stage of product life cycle4. Access to promotional methods5. Channels of distribution6. Target markets7. The competition8. Geographic dispersement of the consumer market9. The product10. Push or pull strategy11. Laws12. Sport company resources


1. What is promotion?

2. What is sport promotion?

3. Why is promotion important to the sport marketer?

4. What is the process of communication?


5. What are promotional methods? Give some examples in the sport industry.

6. What is the promotional mix?

7. What are the factors that affect decisions about the promotional mix?


8. What are legal issues affecting promotion?

9. What are ethics, and what are some ethical issues the sport marketer should use in determining promotion strategies?


1. Conduct a study of three different sport businesses, organizations, or other enterprises in your city or community. Determine the promotional methods used by each.


2. Collect print advertising of a variety of sport products from numerous sources. Conduct a study of the ads and determine the target market(s) and the promotional message.


3. What are some populations recently objecting to the use of certain promotional messages and logos? In discussion groups, discuss the reasons and the ethical responsibility of the sport marketer.


4. Visit a local media outlet (radio, television station, or newspaper) and producer or editor to talk about their relationships with sports organizations. Prepare a contact sheet for that outlet complete with the names, position titles, and phone numbers of important people.


5. Investigate an advertising purchase for an athletic program or stadium scoreboard sign and determine if it is an equitable media buy compared to other advertising outlets.


Media Relations in Sport

Good News Releases Contain:

the significance (headline) the essence (lead) the details (tail)


1. What are the essential steps in obtaining electronic (television or radio) coverage of your sport event?

2. What are some of the differences between the impact of newspaper and magazine articles that would affect sport marketing?


Contact a sport organization and obtain permission to attend a press conference. Take notes and compare them with material in the text.


2. Working with a local high school and city newspaper, attend a sport event and write a press release after the event. Contact the local newspaper and deliver your release. Go over the content with a local college Sport Information Director and discuss the quality of the release.


Marketing Through Endorsements and

Sponsorships

Process Model of Sport Sponsorship

Implementation


1. Describe the advantages and disadvantages of having an individual athlete as a product endorser.

2. Compare and contrast the sponsorship rights available through each level of Olympic sports: IOC, NOCs, NGBs, IFs.


1. Attend a local sport event where sponsors have signage displayed in the venue. After exiting the event, ask patrons which, if any, of the sponsors they can remember.


Using Licensing and Logosin the Sport Industry


1. What are the laws that affect licensing and trademarks?

2. What factors led to the development of organized sport licensing?


1. Investigate the origins of NFL Properties, Inc. Who was their first licensing director?


2. Develop a sport logo and determine the procedures and costs for registering that mark in your state.


3. Contact a sport organization with a registered mark(s) and request a copy of its graphic standards manual.


Web-Based Sport Marketing

Internet Defined

A global computer network—originally developed by the Defense Department—that enables users to share information. Although service providers sell access to the Internet, it is public property.

World Wide Web Defined

The system within the Internet most commonly used by consumers. It connects bodies of information through graphic interface, audio and video capabilities, and point-and-click links.

Browser Defined

A program that navigates the World Wide Web and displays pages. The browser requests a page from a server based on its Internet address. It retrieves the document from the server and displays the contents.

Cyberspace Defined

Term coined by novelist William Gibson in Neuromancer, which now refers to the whole online world of the Internet.

E-marketing Defined

Internet or web-based marketing is the pursuit of profit through the exchange process utilizing the Internet as the medium. This type of marketing is also called e-marketing.

Domain Name Defined

The base of a computer’s Internet address. For example, a computer with the fully-qualified domain name host.domain.com, host is the host name of the computer and domain.com is its domain name.

Hit Defined

A single access of a file on the world wide web.

Visit Defined

A series of transactions performed by a single user at a single web site.

Page View Defined

A unit of measure for web site usage as opposed to a hit. A page may include links to a number of included images that also must be uploaded by a web browser when viewing the HTML file. The HTML file and each of the uploaded, online graphics register as multiple hits, but only one page view.

Interactive Marketing Defined

Any interactive communication media that allows the user to request or receive delivery of information, entertainment or marketing materials, products, and/or services.

Some Benefits of Interactive Marketing

Results of marketing efforts are measurable

Ability to communicate with customers on customer-selected topics

Cost-effective means for building relationships with customers

Customer convenience provided

Some Disadvantages of Interactive Marketing

Interactive marketing is in its early development stage

Customer must access marketer in order for interactive marketing to begin

Customers do not like direct email

Spam Defined

To indiscriminately post information—often of an irrelevant or commercial nature—to multiple newsgroups or email recipients. Derived from an old Monty Python sketch, “Eggs, spam, spam, spam, bacon, and spam.”

E-commerce Defined

Buying and selling goods or services via the Internet or other electronic means. Also referred to as Internet commerce or web-based commerce.

Chapter 16 QuestionsChapter 16 Questions1. What is the difference between the

Internet and the world wide web?

2. Why should sport organizations seriously consider developing a site on the world wide web if they have not done so already?

3. How have sport marketers used the web to market their product thus far?


4. What must a sport marketer consider when developing a website for his or her sport organization?

5. Describe interactive marketing. What are some of its unique features?

6. Will the web alter traditional sport marketing theory, and if so, how?


1. Visit five official sport sites on the web and compare the features offered on each site. What do you like about the sites? What do you dislike? Do you feel that each of the sites is an effective marketing tool for the organization’s creating them?


2. Contact an organization with a site on the web (possibly your school’s athletic department). Ask the organization why they created the website and what they hope to accomplish through their site’s operation.


3. Conduct a class study and see how many people have purchased a product or products online. How many of these were sport products? For those that have not purchased a product online, why have they not done so? Do they plan to do so in the future?