Sport Management ERASMUS Complete

Sport Management Sport Organizations Attila Kajos Assistant Lecturer

Institute of Physical Education and Sport Sciences

Course Objectives

Basic Management Knowledge The environment of an Organization

Influencing factors

Structural attributes

Structural forms

Before Strategy (PEST and SWOT analysis)

Strategy

Case study

Sport Management Sport management elements and its environment. The three

sectors of sport.

Sport and Government. The role of state in sport development (state and the three sectors). Reason and effect of state intervention.

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Course Objectives

Managing Sport Organizations

The sports clubs environment. Sport and non-profit sector.

Professional sport. Media, Sponsorship, Player management (With case study).

The role of Strategy in Sport

Tasks of a sport manager

Case study

Sport Marketing

Sport as a Complex Product

Creating the Marketing Strategy (STP)

Creating the Marketing Mix (7P)

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Used material (References)

Hoye R., Smith A., Westerbeek H., Stewart B., Nicholson M. (2006): Sport Management Principles and Applications. Butterworth-Heineman (Elsevier), Oxford

Beech, C., Chadwick S. (2004): The Business of Sport Management. Prentice Hall Financial Times, Pearson education

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Introduction to Management

Organization

Organization

A social unit of people, systematically structured and managed to meet a need or to pursue collective goals on a continuing basis.

Organizations

Institutes

Clubs (amateur/profressional)

Firms

Multinational companies

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Management

To Manage means all the activities and tasks undertaken by one or more

persons for the purpose of planning and controlling the activities of others in order to achieve an objective or complete an activity that could not be achieved by the others acting independently. (Koontz et al. 1980)

Managemenet contains Planning

Organizing

Staffing

Directing/Leading

Controlling/Monitoring

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All managers carry out the functions of planning, organizing, staffing, leading, and controlling, although the time spent in each function will differ and the skills required by managers at different organizational levels vary.

Still, all managers are engaged in getting things done through people. ... The managerial activities, grouped into the managerial functions of planning, organizing, staffing, leading, and controlling, are carried out by all managers, but the practices and methods must be adapted to the particular tasks, enterprises, and situation. (Weichrich, 1993)

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Types of management

Strategig Management

Operations Management

Human Resource Management

Marketing Management

Financial Management

Information Technology Management (MIS)

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The factors influencing the organization I.

1. Macro-Environmental Factors (PEST/STEP) 1. Political environment

2. Economic environment

3. Technological envoronment

4. Social environment

2. Inner Factors 1. Size

2. Information technology

3. History

4. Terms of employees

5. Geographic dispersion

6. Resources

7. Rate of cooperation

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The factors influencing the organization II.

3. The characteristics of the members

1. Professionalism

2. Leadership knowledge

3. Authority

4. General directing and planning objectives

5. The capability of coping with conflicts

6. Tha ability and willingnes to communicate

7. Tha ability and willingnes to cooperate

8. Role flexibility

9. Motivational and interest structure

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The factors influencing the organization III.

4. The characteristics of the main functions

1. Diversity

2. Verticality

3. Complexity

4. Durability

5. Freshness

5. Strategy

6. The current Organizational Structure

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The interaction of the factors

I. Macro-economical factors

II. Inner Factors IV. The

characteristics of the main functions

III. Characteristics of the Org.

V. Strategy VI. The current Org. Structure

New Organizational Structure, Operational- and Behavioral forms

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Environmental attributes

1. Political environment

Political environment can be analysed as all the Government measures that can affect directlyor indirectly the development of a company's business and may influence negatively or positively on their performance.

Some political Factors

Taxation Policy

Trade regulations

Governmental stability

Unemployment Policy

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2. Technological environment

Characteristics

The frequency of new scientific results

The practical adaptation of such technology

The predictability of the development

The complexity of the technology

Complex

Simple

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3. Economical Environment

Most important characteristics Volatility

Dynamic

Static

Complexity Simple

Easy to forecast

Stabil plans available

Task are easy to set

Specialized items

Formalized, strict rules

Strict hierarchy (autocratic)

Complex Uncertain environment

Decentralized decision making (democratic)

Particpative

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4. Socio-cultural environment

The characteristics of The labour market The consumers

Sex Age Income Education level

Expectation of society from the business Cultural behavior Religiousness Attitude towards work Hofstedes dimensions

Power distance Uncertanity avoidence Indidualism/collectivism Masculanity/Feminity Long-Term Orientation

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II. Inner Factors

Size and its compositives

No. of employees

Assets

Annual Revenue

Annual Income

Division of labour inside the organization

Size and alignment

The structure used

Centralizing or decentralizing

The information and communication tools used

The question of size and configuration

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History

Establishing cicumstances

The organizations connections to a single person or some persons

The age of the organization

The most important episodes in the life of the organization Changes in the product line

Changes in prices

Changes in profile

Most important innovations

Changes in the leadership/ownership

Structural and/or managerial changes

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Geographic dispersion

Nuber of locations (shops, factories, plants, etc.)

The geographic positions of these locations

The distance between the locations

The differences between nations and regions

Differences of city and rural; capital and country (especially in countries like Hungary, Belarus, Denmark, Sweden, Norway, etc.)

Distribution and transportation cost and availability

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Structural attributes of an Organization

Attributes

1. Division of labour

2. Division of competences

1. Span of control

2. Hierarchy of Authority

3. Line vs. Staff

3. Coordinational tools

4. Configuration

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Dividing the original working into smaller specialized pieces, untill last process

Defining and arranging these task to individuals (everyone has to know his/her job in the organization)

This is one of the basics, when structuring the organizaton

Department establishing is mainly done through these principles

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Main dividing factors

Functions

Material (Products / Product lines)

Regional

We differentiate two types

One dimensional organization It is only divided by one of the above factors

Two or more dimensional organization Divided by two or more from the above mentioned factors.

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Span of control

A wide span of control: a large number of employees reporting,

A narrow span of control: a small number employees reporting

The appropriate span of control depends on the experience, knowledge and skills of the employees and the nature of the task.

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Line vs. Staff

Line positions are those in which people are involved in producing the main goods or service or make decisions relating to the production of the main business.

Staff positions These are positions in which people make recommendations to others but are not directly involved in the production of the good or service

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Categories

Line

Staff

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Line vs. Staff

Line Staff

Pros

Hierarchy and competencies and responsibilities are clear and certain. The connections are easy to overview and simple. The hierarchy avoids the fraud from outside.

Large scale of specialization through the division of functions. The instruction and informational ways are direct. Its a creative and open environment, where productive conflicts may occure.

Cons

Much of the time from the higher manageent is used for coordination tasks. The process of instructions and informations can be very slow and roundabout, with a deep horizontal structure. It can cause personal dependence between manager and staff.

The distinction of competencies and responsibilities can be hard in the view of the entire organization. The conflicts can easlily became personal.

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3. Coordination

Meanings

The act of state of coordinating or of being coordinated

Proper order of relationship

Harmonious combination or interaction, as of functions or parts

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Coordinational tools Type of coordinational tool Koordincis eszkz

Structural

Hierarchiy (vertical coordintion) AdHoc and regulal commitees,

teams, projects Product managers and matrix type

solutions

Technocratic

Rules, Regulations, Procedures Plans, Programmes, Guides Blueprints, financial plans, general

budget, etc.

Person orientated

Conflict solving Manager recruitment Organizational structure Organizational Culture Training Etc. 31

4. Configuration

The organizational structure derived from the previously mentioned

The materialization of the organization

Characteristics

Depth (the number of vertical hierarchy levels)

Width (the number of horizontal levels)

Size (the number of staff under a certain manager)

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Structures

Functional structure

Requirements Static environment, narrow product-line

Characteristics Strict hierarchy, regulation, centralization, mainly vertical

coordination,

Advantages Efficiency, easier communication

Disadvantages Isolation of units, Egoist units, coordinational problems

Manufacturing Sales R & D Accounting &

Finance

CEO

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Divisional structures

Product Structure

Market structure

Manufaacturing Sales

Soup

Division

Manufacturing Sales

Nuts

Division

CEO

Sales Customer

Service

Corporate

Customers

Sales Customer

Service

Individual

Customers

CEO

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Divisional structures

Geographic Structure

Sales Customer

Service

West

Sales Customer

Service

East

CEO

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Divisional structure

Characteristics Wide range of heterogeneous products, product lines,

dynamic environment

Decentralized by primer functions/products/geographicly and centralized inside the dimensions

Horizontal coordination between groups is not typical

Coordinating with mainly technocratic tools

Advantages Strategic and Operative tasks are easy to separte

Strong market orientation, Low horizontal coordination costs

Disadvantages Division egism, Harder integration of strategic and

operative goals, duplication of effort, paralell functions

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Matrix structure

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Matrix structure

Characteristics Dynamic and heterogeneous environment, complex and risky

tasks, developed communication skills

Not strictly regulated

Two dimension working together on the problem in the point of intersection

The managers of the dimensions must have the same competences

Mainly personal orientated coordination is used

Advantages Adaptivity, Innovative, Higher performance

Disatvantages The delimination of competencies is hard, Rivalry of managers,

Overlaboured groups, Decision avoidance, Responsibility avoidance and devolution, Needs good skills from the staff

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Before Strategy making - PEST and SWOT analysis

PEST analysis

Political trends Political, legal and regulatory issues affecting the comany

Identifying political trends, rules, etc.

Economic trends Macroeconmic (Prosperity,Recession,Depression,Recovery)

Smaller trends (Change in income,

Cultural and Social trends Values, beliefs, tradition of a given society (field of

operation)

Demography (population, age, free time spending, etc.)

Technology trends On and off-market technology innovation and technology

acceptance

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Micro Environment

Co

mp

etit

ors

G

en

eral

Pu

blic

Suppliers

Company Distributors

Customers Consumers Audience

The core of the Straregy

Value net

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Competitor analisys

1. Identify

The level of competition (direct, indirect)

2. Recognition and Evaluation

Monitoring system

Strategy, goals, strong and weak points, reactions, etc.

3. Competitive strategy

The group of competitors

Positioning

Unique selling proposition (USP)

Other competitive advantages

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SWOT analysis

Whai is it?

A scan of the internal and external environment

an important part of the strategic planning process.

It is used by

Management

Marketing

Finance

Logistics

etc.

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Process of SWOT

Choosing the Environmental characteristics

Analyzing the external (macro-and micro) environmnet

Analyzing the inner (organizational) environment

Comparing the factors Acting possibilities

Environmental Opoortunities

Environmental Threats

Organizational Strengts

Organizational Weaknesses

-Choosing the decisive alternatives -Comparing analyss -Decision making 44

Strenghts

A firm's strengths are its resources and capabilities that can be used as a basis for developing a competitive advantage.

Examples

patents

strong brand names

good reputation among customers

cost advantages from proprietary know-how

exclusive access to high grade natural resources

favorable access to distribution networks

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Weaknesses

The absence of certain strengths may be viewed as a weakness.

Examples

lack of patent protection

a weak brand name

poor reputation among customers

high cost structure

lack of access to the best natural resources

lack of access to key distribution channels

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Opportunities

The external environmental analysis may reveal certain new opportunities for profit and growth.

Examples

an unfulfilled customer need

arrival of new technologies

loosening of regulations

removal of international trade barriers

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Threats

Changes in the external environmental also may present threats to the firm.

Examples

shifts in consumer tastes away from the firm's products

emergence of substitute products

new regulations

increased trade barriers

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The SWOT matrix (type 1)

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SWOT matrix (type 2)

S-O strategies pursue opportunities that are a good fit to the company's strengths.

W-O strategies overcome weaknesses to pursue opportunities.

S-T strategies identify ways that the firm can use its strengths to reduce its vulnerability to external threats.

W-T strategies establish a defensive plan to prevent the firm's weaknesses from making it highly susceptible to external threats.

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Strategy

Strategy

Strategy is

the determination of the basic long-term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals (Chandler, 1962)

Strategic management

analyzes the major initiatives taken by a company's top management on behalf of owners, involving resources and performance in external and internal environments. (Nag et al., 2007)

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Strategic management (Chaffe, 1985)

Involves adapting the organization to its business environment

is fluid and complex. Change creates novel combinations of circumstances requiring unstructured non-repetitive responses.

affects the entire organization by providing direction.

involves both strategy formation (content) and also strategy implementation (process).

is partially planned and partially unplanned.

is done at several levels: overall corporate strategy, and individual business strategies

involves both conceptual and analytical thought processes

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Strategic Management by Lamb (1984)

Strategic management is an ongoing process that evaluates and controls the business and the industries in which the company is involved;

Assesses its competitors and sets goals and strategies to meet all existing and potential competitors;

and then reassesses each strategy annually or quarterly [i.e. regularly] to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment, or a new social, financial, or political environment.

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How to choose the strategy?

The basis of competition (Porter, 1998)

Differentiation (higher price for few)

Cost (low price for all)

Segmentation (Niche strategy)

Main characteristics (Johnson et al., 2008)

Suitability

Feasibility

Acceptability

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Hierarchical definition of Strategy

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Vision (Shank, 2005)

A long term road map of where the organization is headed. It creates organizational purpose and identity.

A well writen vision is necessary for the effective leadership of an organization.

The vision should address the following

Where does the organization plan go from here?

What business do we want to be in?

What customer needs do we want to satisfy?

What capabilities are required for the future?

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Mission

The key question of the mission

What is the main mission and goal of the organization (an abstract value: creating

What are the main (core) values of our organizations?

What behavioral norms it follows?

What sort of political and social role it tries to fulfill?

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The mission statement in the USA (Shank, 2005)

The mission is a written statement about the organizations present situation. Its purpose is to inform the stakeholders (e.g. owners, consumers, suppliers, etc.) about the direction of the organization.

The key question of the mission statement

What business are we currently in?

Who are our current customers?

What is the scope of our market?

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Strategy

Types of strategies

Corporate strategy (the overall strategy of the company stated in the mission and vision)

Business strategy (strategy of a single firm or product line/product, etc.)

Functional strategy Marketing strategy

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Traditional Strategy Goals

Value creation and Value sharing

Building strong leadership ans good motivation

Revenue growth

Optimalizing the Value Chain

New Product Innovation

Contracting (eg. with Suppliers, distributors, etc.)

Quality of the product

Branding issues

Customer engagement

Globalization (wider range of operation)

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Tactics

Are the smaller, and mid term components of the Strategic Goals

It gives us the answer to How?

Eg. Strategic Goal - Increase revenue

Increase productivity

Increase marketing/advertising activity

Give some reduction for regular/big customers

Increase effectiveness (with managerial tools eg. Motivation)

Etc.

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Operations and Actions

The exact process of the decided tactics

Sale of 50% until 09.30. to 10.05.

Buy 2, get one free

Increase the bonus if the production rises with 10%

Find a better supplier for a component

Sign a contract with somebody, etc.

Short term issues

Relatively urgent issues

Need to do issues

Etc.

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Robin Hood case study questions

1. What was the original mission and vision of Robin Hood and the Marrymen?

2. Identify Robins main problems. 1. Make a brief PEST analysis 2. Make a brief SWOT analysis

3. With the help of the environment scanning, identify the main strategic and operational problems. Which ones are the most immediate ones?

4. What strategic options does Robin Hood have? Eg. Killing the Sheriff, Accepting the barons offer, etc.

5. What operations and actions plans do you recommend to Robin?

6. How should Robin implement the recommended plan, and what steps will need to be taken, to make the recommended strategy work?

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Sport Management II.

Class Objectives

Sport Management

Sport management elements and its environment. The three sectors of sport.

Sport and Government. The role of state in sport development (state and the three sectors). Reason and effect of state intervention.

Tasks of a sport manager

Managing Sport Organizations

The sports clubs environment. Sport and non-profit sector.

Professional sport. Media, Sponsorship, Player management.

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What is sport management?

It involves the application of techniques and strategies evident in the majority of modern business, government and nonprofit organizations.

Sport managers engage in strategic planning,

manage large numbers of human resources,

deal with broadcasting contracts

manage the welfare of elite athletes who sometimes earn 100 times the average working wage,

and workwithin highly integrated global networks of international sports federations, national sport organizations, government agencies, media corporations, sponsors and community organizations.

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Unique features of Sport (Stewart and Smith, 1999)

Phenomenon of people developing irrational passions for sporting teams, competitions, or athletes. Sport managers must learn to harness these passions by

appealing to peoples desire to buy tickets for events, become a member of a club, donate time to help run a voluntary association, or purchase sporting merchandise.

Differences in evaluation of performance Profit vs. Sport succes Sport managers need to be cognizant of these multiple

organizational outcomes, while at the same time be responsible financial managers.

Clubs and teams need the opposition to remain in business, so they must cooperate to share revenues and playing talent, and regulate themselves to ensure the uncertainty in the outcome of games between them

Which produces an anti-competitive behaviour.

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The sport product, when it takes the form of a game or contest, is also of variable quality. The variable quality of sport therefore makes it hard to

guarantee quality in the marketplace relative to providers of other consumer products.

Sport also enjoys a high degree of product or brand loyalty, with fans unlikely to switch sporting codes because of a poor match result, or the standard of officiating.

Sport engenders unique behaviours in people, such as emulating their sporting heroes in play, wearing the uniform of their favourite player, or purchasing the products that celebrity sports people endorse. This vicarious identification with the skills, abilities, and

lifestyles of sports people can be used by sport managers and allied industries to influence the purchasing decisions of individuals who follow sport

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Sport fans also exhibit a high degree of optimism, at times insisting that their team, despite a string of bad losses, is only a week, game or lucky break away from winning the next championship.

Sporting organizations are relatively reluctant to adopt new technologies unless they are related to sports science, where on-field performance improvements are possible.

Limited supply

In other industries, organizations can increase production to meet demand, but in sport, clubs are limited by season length and the number of scheduled games

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Sport management environmental issues

Globalisation

Media

Aside from actually attending the events live at a stadium, fans can view these events through free to air and pay or cable television;

listen to them on radio and the internet;

read about game analyses, their favourite players and teams through newspapers and magazines;

receive progress scores, commentary or vision on their mobile phones;

and sign up for special deals and information through online subscriptions using their email address.

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Sport management environmental issues

Political environment Most governments view sport as a vehicle for nationalism,

economic development, or social development.

As such, they see it as within their purview to enact policies and legislation to support, control or regulate the activities of sport organizations.

Most governments support elite training institutes to assist in developing athletes for national and international competition, provide funding to national sporting organizations, support sport organizations to bid for major events, and facilitate the building of major stadiums.

Governments also regulate the activities of sport organizations through legislation or licensing in areas such as industrial relations, anti-discrimination, taxation and corporate governance.

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Lets speak about

The economic environmnet of sport

The Socio-cultural environment of sport

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The three sectors of sport

State or public sector

includes national, state/provincial, regional and local governments, and specialist agencies that develop sport policy, provide funding to other sectors, and support specialist roles such as elite athlete development or drug control.

Nonprofit or voluntary sector

Community based clubs, governing associations and international sport organizations that provide competition and participation opportunities, regulate and manage sporting codes, and organize major championship events.

Professional or commercial sport organizations

Professional leagues and their member teams, as well as allied organizations such as sporting apparel and equipment manufacturers, media companies, major stadia operators and event managers.

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The three sectors of sport

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Connections between sectors

Public and Non-profit the State is intimately involved in providing funding to

nonprofit sport organizations for sport development and elite athlete programmes

in return nonprofit sport organizations provide the general community with sporting opportunities and as well as developing athletes, coaches, officials and administrators to sustain sporting participation.

Public and Professional The State is involved in commercial sport, supporting the

building of major stadia and other sporting venues to provide spaces for professional sport to be played, providing a regulatory and legal framework for professional sport to take place and supporting manufacturing and event organizations to do business.

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Connections between sectors

Non-profit and professional sectors

The non-profit sport sector supports professional sport by providing playing talent for leagues, as well as developing the coaches, officials and administrators to facilitate elite competitions.

In return, the professional sport sector markets sport for spectators and participants and in some cases provides substantial funds from TV broadcast rights revenue.

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Sport Management issues

1. Strategic management in Sport involves the analysis of an organizations position in the

competitive environment, the determination of its direction and goals, the selection of an appropriate strategy and the leveraging of its distinctive assets.

In case of sport organizations it may largely depend the quality of their strategic decisions.

In In a competitive market, sport managers must drive their own futures by undertaking meaningful market analyses, establishing a clear direction and crafting strategy that matches opportunities.

An understanding of strategic management principles and how these can be applied in the specific industry context of sport are essential for future sport managers

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Sport Management Issues

2. Organizational Structure Is important because it defines where staff and volunteers

fit in with each other in terms of work tasks, decision-making procedures, the need for collaboration, levels of responsibility and reporting mechanisms.

Finding the right structure for a sport organization involves balancing the need to formalize procedures while fostering innovation and creativity, and ensuring adequate control of employee and volunteer activities without unduly affecting peoples motivation and attitudes to work.

In the complex world of sport, clarifying reporting and communication lines between multiple groups of internal and external stakeholders while trying to reduce unnecessary and costly layers of management, is also an important aspect of managing an organizations structure.

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3. Human resource management

is essentially about ensuring an effective and satisfied workforce

Successful sport leagues, clubs, associations, retailers and venues rely on good human resources, both on and off the field.

Human resource management cannot be divorced from other key management tools, such as strategic planning or managing organizational culture and structure, and is a further element that students of sport management need to understand to be effective practitioners.

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4. Leadership

Managers at the helm of sport organizations need to be able to influence others to follow their visions,

empower individuals to feel part of a team working for a common goal

be adept at working with leaders of other sport organizations to forge alliances, deal with conflicts or coordinate common business or development projects.

having leaders who are able to collaborate effectively with other organizations to run a professional league, work with governing bodies of sport, and coordinate the efforts of government agencies, international and national sport organizations, and other groups to deliver large scale sport events.

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5. Organizational Culture

consists of the assumptions, norms and values held by individuals and groups within an organization, which impact upon the activities and goals in the workplace and in many ways influence how employees work.

is related to organizational performance, excellence, employee commitment, cooperation, efficiency, job performance and decision-making.

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6. Governance Organizational governance involves the

exercise of decision-making power within organizations and provides the system by which the elements of organizations are

controlled and directed.

Governance is a particularly important element of managing sport organizations, many of whom are controlled by elected groups of volunteers, as it deals with issues of policy and direction for the enhancement of organizational performance rather than day-to-day operational management decision-making.

Appropriate governance systems help ensure that elected decision-makers and paid staff seek to deliver outcomes for the benefit of the organization and its members and that the means used to attain these outcomes are effectively monitored.

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7. Performance management

Sport organizations have applied business principles to marketing their products, planning their operations, managing their human resource and other aspects of organizational activity.

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The role of state in sport development

The State (government)

Is the component of the society

Its role depends on the type of the society (democracy vs. Dictatorial state)

Social orders

State and its apparatus to govern members of society by establishing a bureaucracy that

enforces an array of rules and regulations

Mobilize resources through its taxing powers, and use them to establish an economic and cultural infrastructure that allows commerce and the arts to flourish

The Market

Civil society informal, non-market relationships that are mainly situated around

households, neighbourhoods and local communities.

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Four Sectors

Nonprofit public sector

Driven by the state

Profit-based commercial sector

Driven by the market

Informal sector

Driven by civil society

Voluntary sector

driven by aspects of all three social orders

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The four sectors

Sport can fit into any of the four sectors depending

on first, the traditions and values that underpin the sport experience

second, the scale of resources that each sector can command.

What about Portugal?

In which sector sport is dominant in your country?

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State may have enormous influence over the structure and practice of sport in one set of political conditions, it can just as easily have minimal influence over sport in some other situation.

Where the State is passive with respect to sport development, there may be a flourishing sport system in one or more of the other sectors, depending on how highly sport is valued in each sector.

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Why the State invests in Sport

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Sport as a public good

Public goods are those goods where one persons consumption does not prevent another persons consumption of the same good.

Example a decision to visit a beach, or identify with a winning team

or athlete, will not prevent others from doing the same. Indeed, the experience may be enhanced by others being in proximity.

Public goods are also goods where, in their purest form, no one can be prevented from consuming the good.

Public goods can provide substantial benefits throughout the whole of society, and are usually not rationed through high prices

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Regulation and controll

Regulation of sport occurs on five levels:

1. The formulation of the rules of the game;

2. The application of immediate sanctions during the course of the game should a breach of the rules occur;

3. Disciplinary proceedings performed by administrative bodies who punish those who contravene the rules and provide an opportunity for review of decisions;

4. Intervention by State or Federal Governments when a participants behaviour infringes the criminal law or a civil action is brought.

5. International committees such as the International Olympic Committee or the Court of Arbitrationfor Sport are used to resolve disputes.

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Nonprofit sport

Goals of organizations in the nonprofit sector

to develop communities

meet the needs of identifiable and discrete groups in those communities

work for the benefit of public good rather than wealth creation for individuals

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Nonprofit sector and sport

The International Classification of Nonprofit Organizations (ICNPO) classification (1) sports including amateur sport, training, fitness and

sport facilities and sport competition and events;

(2) recreation and social clubs such as country clubs, playground associations, touring clubs and leisure clubs; and

(3) service clubs such as Lions, Rotary, Kiwanis and Apex clubs.

organizations that operate on a nonprofit basis in sport including professional service organizations, industry lobby groups, sport event organizations and sport governing bodies.

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Some large, nonprofit governing organizations

International Olympic Committee (IOC)

FIFA

UEFA

IAAF

Federao Portuguesa de Futebol (FPF)

Federao de Andebol de Portugal (FAP)

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Governing bodies

Sport clubs compete against other clubs in competition structures provided by regional or state/provincial sporting organizations.

State-based teams compete in competitions facilitated by national sporting organizations, and nations compete in leagues or events provided by international federations of sport (e.g. UEFA or FIFA)

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Governing bodies

Mission Promote sports at all levels in a given territory and sport

discipline.

Goal the management,

administration

and development for a sport on a global,

national,

state/provincial,

or regional level.

Main activity Govern one or more sport disciplines.

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Example

The Portuguese Football Federation

Organises the Segunda Diviso and Taa da Liga (The Primeira Liga Liga ZON Sagres - , Liga de Honra - Liga Orangina and Taa da Liga BWIN Cup - is organized by LPFP /Liga Portuguesa de Futebol Profissional/

Taa de Portugal

Supertaa Cndido de Oliveira

Youth levels

Womens football

Beach Soccer

Futsal

National football teams (both men and women)

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Sport governing organizations

volunteer-based

do not operate as top down power hierarchies, with clubs always abiding by regional directives, or national governing bodies agreeing with international policy initiatives

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Build up of a nonprofit sport club

Administrators who fill roles as elected or appointed committee members have the

responsibility for the overall guidance, direction and supervision of the organization.

Roles

Conducting long-term planning for the future of the club

Developing policy and procedures for club activities

Managing external relations with other sport organizations, local governments or sponsors

Managing financial resources and legal issues on behalf of the club

Carrying out recommendations put forward by members

Communicating to members on current issues or developments

Evaluating the performance of officials, employees (if any), and other service providers

Ensuring adequate records are kept for future transfer of responsibilities to new committee members

Acting as role models for other club members 106

Build up of a nonprofit sport club

Coaches

working in the sport club system may be unpaid or paid, depending on the nature of the sport and the resources of individual clubs.

Role

developing athletes skills and knowledge, in helping them learn tactics for success,

and enjoy their sport.

Coaches also act as Important role models for players and athletes

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Other roles in nonprofit sector

Officials those people who act as referees, umpires, judges, scorers

or timekeepers to officiate over games or events.

All sports provide a structured training and accreditation scheme for officials in much the same way as coaches to develop their skills and experience at local, state/provincial, national or international levels.

General volunteers Some roles

Fundraising

Managing

Other minor work (lawn mowing, sewing, washing the jerseys, etc.)

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Challanges for nonprofit sport

the dependence on volunteers to sustain the sports system

the increasing litigious nature of society and the associated increase in costs of insurance for nonprofit sport organizations

trend away from participating in traditional sports

significant capacity problems

additional complexity of the governance and management requirements of these organizations

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Professional sport

Which is the oldest football team in your country

Established in 1876

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Development of a sport as business (Beech&Chadwick 2004)

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The process

Foundation The sport emerges through ancient folk tradition

(e.g.soccer)

Codification (Revolutionary) Codification may take place as a formalisation of practice

(e.g. cricket), as the outcome of an organisational breakaway (e.g. rugby league) or through the need to define the game at the time of invention (e.g. snooker).

Stratification (Evolutionary) As a sport grows, the body responsible for codification sets

up or administers through merger a variety of leagues, typically with an element of promotion and relegation, and normally characterised by a regional dimension, especially at lower levels. In this phase, the sport remains amateur

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The process

Professionalisation As a sport gains a popular appeal, the willingness of spectators

to pay to watch, and the willingness of investors to support clubs, for altruistic reasons as well as commercial ones, allow the payment of players.

Initially payment is in terms of expenses. This may extend to payment for loss of earnings.

Post-professionalisation During this phase, a senior game which is professionalised

typically sits alongside an amateur junior game.

Commercialisation As the sport develops an overtly business context,external

organisations see the opportunity of using the sport for their own purposes, typically marketing in the forms of sponsorship involving governing bodies, leagues and clubs and endorsement involving players.

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Example English football (case study)

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Example English Football (case study)

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Professional sport

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The Worlds most Valuable Soccer teams (Forbes, 2011)

1. Manchester United 1,864,000,000 USD (2%)

2. Real Madrid 1,451,000,000 USD (10%)

3. Arsenal 1,192,000,000 USD (1%)

4. Bayern Munich 1,048,000,000 USD (6%)

5. Barcelona 975,000,000 USD (-2%)

6. AC Milan 838,000,000 USD (5%)

7. Chelsea 658,000,000 USD (2%)

8. Juventus 628,000,000 USD (-4%)

9. Liverpool 552,000,000 USD (-33%)

10. Internazionale 441,000,000 USD (7%)

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The highest paid soccer players (Forbes, 2012)

1. David Beckham 46,000,000 USD (Adidas)

2. Cristiano Ronaldo 42,000,000 USD (Nike)

3. Lionel Messi 39,000,000 USD (Adidas,Lays)

4. Wayne Rooney 24,000,000 USD (Coca-Cola)

5. Kaka 21,000,000 USD (EA Sports)

6. John Terry 18,000,000 USD

Yaya Toure 18,000,000 USD

8. Fernando Torres 17,000,000 USD

9. Frank Lampard 16,000,000 USD

10. Steven Gerrard 16,000,000 USD

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Highest salary in 2011

1. Ronaldo 12,000,000 2. Leo Messi 10,500,000 3. Fernando Torres 10,000,000 4. Yaya Tour 10,000,000 5. Wayne Rooney 9,500,000 6. Kaka 9,000,000 7. Zlatan 9,000,000 8. Adebayor 8,500,000 9. Tevez 8,000,000 10. Etoo 8,000,000 11. Ribery 8,000,000 12. Terry (high def) 7,500,000 15. Xavi-Iniesta-Villa-Dani Alves 7,000,000 26. Cassilas-Cech-Buffon-Valdes 6,000,000 36. Frederic Kanout 6,000,000 37. Patrick Vieira 5,500,000 38. Kevin Kuranyi 5,500,000 40. Arjen Robben 5,500,000 43. zil-Kedhira-Ronaldinho 5,000,000

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Largest sport contracts

Player Sport Lenght Contract Value

Averge /year Averge/ game

1. Alex Rodriguez Baseball 10 years 275 M 27,5 M 169,7 K

2. Albert Pujols Baseball 10 years 240 M 24 M 148 K

3. Joey Votto Baseball 10 years 225 M 22,5 M 138 K

4-8 Baseball 8-10 y 180-225 M

9. C. Ronaldo Soccer 10 years 170 M 17 M 400 K

10-13 Baseball 20 M

14. Kimi Raikkonen F1 3 years (Ferrari)

153 M 51 M 2,9 M

17. Leo Messi 8 years 148,8 M 18,6 M 500 K

20. Kobe Bryant Basketball 7 years 136,4 M 19,5 M 237 K

22. Calvin Johnson Am. Footb 8 years 132 M 16,5 M 1 M

29. M. Schumacher F1 4 years 124 M 31 M 1,9 M

30. A. Ovechkin Ice Hockey 13 years 124 M 9,5 M 116 K

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Jobs in professional sport

Media management

Broadcasting

Media coverage contracts

Public Relations

Sponsorship management

Funding

Players sponsorship

Teams sponsorship

Leagues sponsorship

Events sponsorship

Buildings sponsorship (Emirates Stadium, Allianz Arena, etc.)

Player Management

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Broadcasting Revenue of the Olympics

1960 Rome 1,200,000 USD

1964 Tokyo 1,600,000 USD

1968 Mexico City 9,800,000 USD

1972 Munich 17,800,000 USD

1976 Monreal 34,900,000 USD

1980 Los Angeles 286,900,000 USD

1988 Seoul 402,600,000 USD

1992 Barcelona 636,100,000 USD

1996 Atlanta 898,300,000 USD

2000 Sydney 1,331,600,000 USD

2004 Athens 1,494,000,000 USD

2008 Beijing 1,739,000,000 USD 124

Sponsorship revenues

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Sport Management 3.

Course Objective


Leadership

Organizational Culture

Performance Management

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HRM

in business or sport organizations, is essenessentially about first, finding the right person for the right job at the right time,

and second, ensuring an appropriately trained and satisfied workforce.

Successful sport leagues, clubs, associations, retailers and venues all rely on good human resources, both on and off the field to get their jobs done.

Conversely, organizations with staff who lack motivation, are ill-suited to their work, under-paid or under-valued will struggle to perform.

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HRM

is a central feature of an organizations planning system.

It cannot be divorced from other key management tools, such as strategic planning, financial planning or managing organizational culture and structure.

can both drive organizational success, and is a consequence of good management and planning.

It involves a process of continual planning and evaluation and is best viewed as part of a cycle in which an organization aims to meet its strategic goals.

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HRM

For professional sport organizations

successful human resource management is equated with profitability, long-term growth and success (on and off the court, diamond and rink).

Better behaved athletes mean greater profitability and overall success for professional sport teams and franchises.

For not-for-profit sport organizations

successful human resource management is usually not always about bottom line financial performance.

It can also encompass a range of strategies and outcomes depending on the organizational context.

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Essentials of HRM

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1. Human Resource Planning

Is essentially about assessing and forecasting the staffing needs of the organization and is often referred to as the most important phase for effective human resource management.

In the planning phase an organization must assess

whether current staffing needs will be adequate to meet future demand (or alternately, whether fewer staff will be required),

whether staff turnover is predictable and can be accommodated

whether the ratios of paid, full-time, part-time, casual and volunteer staff are appropriate or adequate

whether there are annual or cyclical fluctuations in staffing that need to be met and managed

whether specific capabilities will be required in the future that the organization is currently lacking.

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Job analysis

Job content (primary and implied tasks)

Requirements (skills, competencies, qualifications and experience)

Context (reporting relationships and job characteristics)

Job description

a document that covers the job content and context

Job specification

a document that covers the job requirements, especially skills and knowledge base

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Job design principles job simplification

intended to increase the specialization of employees, thereby increasing efficiency and productivity.

can be viewed as a positive management tool, particularly when it comes to evaluating the performance of an individual employee.

job rotation partly a remedy to the boredom and dissatisfaction that can result

from simplification. involves workers swapping jobs on a periodic basis, in order to keep

fresh and stimulated, although clearly a sport organization will only have a finite range of jobs through which employees can rotate.

Job enlargement the process by which employees are encouraged to enlarge their work

and add tasks, even if they are simplified and specialized. The benefit of this approach is a happier workforce, but the downside is the perception of overwork.

job enrichment refers to the structuring of the job so that it maximizes employee

motivation and involvement. 135

2. Recruitment

Refers to the process by which an organization tries to find the person most suited to the job that has been designed.

The greater the pool of applicants, the greater the chance the organization will find a suitable candidate.

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3. Selection

Selection and screening is the process condensing the candidates that applied for the position during the recruitment phase to a short-list.

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4. Orientation

This phase of human resource management is important, as

a good quality orientation and induction programme can make an employee feel both welcome and empowered,

but a poor programme, or no programme can make a new employee feel as if they have travelled to a foreign country, in which they cant speak the language, dont know where to go and cant read any of the signs. In short, being in a new organization can be a daunting and frightening experience.

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5. Training and Development

is at the heart of an organization that seeks continual growth and improvement.

Sport organizations that do not engage in systematic training and development programmes are destined to operate far below their optimum, not only because they will fall behind in current trends, practices and skills, but because they will not see themselves as learning organizations.

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A process through which new and existing employees learn the skills required for them to be effective in their jobs.

these skills could be associated with learning how to operate automated turnstiles at a professional sport arena (training for the novice employee),

or learning how to creatively brand the organizations in order to compete in a hostile marketplace (training for the experienced existing employee).

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Dresslers five-step training and development process for sport organizations 1. needs analysis

the organization identifies the necessary skills for its employees, analyses the current skills base and develops specific training objectives.

2. developing the actual training programme Most sport organizations, as previously noted, are too small to have

sophisticated human resource management departments that have the skill and experience to design, develop and implement sophisticated training programmes.

3. Validation optional step in which the organization is able to validate that the

training programme that has been developed or contracted satisfies the needs analysis.

4. implementation of the programme staff are trained (this could be anything from a one day short course,

through to a two year Masters programme).

5. Evaluation Successful or unsuccesful 141

6. Performance appraisal

It must be approached carefully by sport organizations and human resource managers within an organization must seek to develop a collaborative process in which the employee, as well as the manager, feels empowered.

Appraisal process within sport organization

Athletes and coaches are constantly rated on their performance. In basketball the number of points, rebounds, assists, turnovers, steals, fouls and blocked shots are recorded meticulously.

From year to year, goals are set for athletes and their ability to meet targets in key performance indicators can result in an extended contract with improved conditions.

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6. Performance appraisal

Not meeting the targets can mean a player in a sport like baseball has to return to the minor leagues, to return to form or to see out their playing days.

For coaches, performance appraisal is often based on one statistic alone, the win-loss record.

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7-8. Rewards and retention

Once a sport organization has

planned for,

recruited,

selected,

Orientated

trained

and appraised its staff

it makes good sense that it would try to retain them.

Retaining good quality staff, whether they are in a paid or volunteer capacity, means that the organization will be better off financially and strategically.

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HRM

The first six phases of the human resource management process all contribute to retaining staff.

Poor orientation, training and performance appraisal programmes in particular can all have a negative impact on staff retention.

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Leadership

Leadership

getting things done through people

exercising power in order to influence others

envisioning a bright future and taking others by the hand towards it

leaders are made, they are not born; and they are made just like anything else has been made in this country by hard effort. And thats the price that we all have to pay to achieve that goal, or any goal (Westerbeek & Smith, 2005)

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Leadership is:

goal oriented;

about influencing others

about empowering others

about seeing the big picture

about needing others

about strength of character

skilfully influencing and enabling others towards the attainment of aspirational goals

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is principally founded upon the ability to establish direction;

Align people

to motivate

and inspire

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Leadership challenges in sport organizations

Small community based sport clubs and regionally based sport associations

Can small clubs survive or should they consider merging or relocating?

How can we retain our younger members and our most valued volunteers?

How can we attract new resources to the club in order to pay for professional services?

How can we maintain the culture of the club?

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National sporting organizations

Are we a national or international sport or in other words, what is our marketplace?

What is best for our sport: a focus on elite; on mass participation; or an equal balance between the two?

How can we better deliver our sport through the regional and local associations and clubs? (this is a systems question)

How can we change our systems of governance to be better prepared for radical (short term) changes in the sport market?

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International federations and professional sport

Are we in the business of sport or are we simply competing for peoples leisure time?

How much control do we need to exercise in terms of our chain of distribution? For example, do we need to own our sporting facilities and broadcast centres rather than contracting with other owners?

How will the market for sport, entertainment and leisure develop over the next decade? Where do we need to be placed in order to become and remain major players in those markets?

Who will be the leaders for the sport of the future?

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Organizational culture

Organizational culture

Culture tends to be inflexible and resistant to easy or rapid change.

Culture is shaped by an organizations circumstances, its history and its members.

Culture is learned and shared by members of an organization and is reflected in common understandings and beliefs.

Culture is often covert; the deep values and beliefs causing behaviour can be hidden from organizational members making them difficult to identify.

Culture is manifested in a variety of ways that affect the performance of an organization and its members.

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Sport organizational culture

Sport organizational culture is a collection of fundamental values, beliefs and attitudes that are common to members of a sport organization, and which subsequently set the behavioural standards or norms for all members.

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The importance of culture to sport organizations

In many countries sport has for some time been regarded as a particularly important social institution.

Sporting heroes are often national heroes

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different types of sport organizations will possess different kinds of cultures.

professional clubs and major national leagues are more likely to emphasize dispassionate business values,

while smaller, not-for-profit associations are more likely to value participation and fun.

Sports organizations are increasingly compelled to join the commercial world, and are under great pressure to adopt the operational and structural characteristics of business enterprises.

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Culture is important to sport organizations because a better understanding of it can help to bring about change.

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Sub-cultures and sport

Professional players, for example, have a different cultural attitude from some amateurs and spectators.

The only apparent consistency in sporting culture is the pursuit of competition, the love of winning, and the ability to summon strong emotional responses in both victory and defeat.

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Case: A Cultural map of Ferrari Formula One

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Performance management

Sport and performance

Sport is consumed by strong emotional attachments that are linked to the past through nostalgia and tradition.

Romantic visions, emotion and passion can override commercial logic and economic rationality.

Predictability and certainty, which are goals to be aimed for in the commercial world, particularly with respect to product quality, are not always valued in the sporting world.

Sport is not driven by the need to optimize profit in the ways that large commercial businesses are.

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Models to choose from

Profit maximization model

A club is simply a firm in a perfectly competitive product market and that profit is the single driving motivational force.

Utility maximization model

The rivalry between clubs, and their desire to win as many matches as possible.

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Systematic approach to Perf.Man.

Identifying strengths and weaknesses

Revealing the ways in which overall organizational performance can be improved.

Deciding where scarce resources should be allocated in order to achieve the best possible outcome.

In short the use of some sort of performance management model is crucial to the long-term success of sport organizations.

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Strategic perspective

We should initially focus our attention on what the organization wants to achieve.

Performance management system should be linked to an organizations vision, goals and objectives.

Main question

What is the main goal of the organization? Profit

Winning games

Promotion

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Building a performance management model for professional teams

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Building a performance management model for professional teams

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Input Output approach to Perf. Man.

This involves looking at things like quality, quantity, efficiency, costbenefit ratios, and employee productivity.

This approach provides a checklist of essential performance dimensions that need to be addressed.

It ensures that no one measure is dominant, and also provides for measures that not only focus on internal processes, but also look at the organizations relationships with key suppliers and customers.

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Balanced and multi-dimensional approach to Perf. Man.

The aim to a performance measurement system that balances

external and easily quantifiable measures like market share and return on investment

against internal and more ephemeral factors like administrative processes and staff development.

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Dimensions

Financial Perspective financial measures are nevertheless a fundamental starting

point for evaluating the economic sustainability of an organization.

They can range from total sales, operating income and net cash flow, to return on assets, debt to equity ratio and net profit.

This dimension answers the question how do we look to shareholders?

Customer Perspective identifying the customer and market segments in which the

business will compete and to develop measures that will indicate how well the

organization competes in these segments. These measures will include total sales in each segment, market

share, customer acquisition, customer retention, and customer satisfaction.

This dimension addresses the question how do customers see us?

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Dimensions

Internal-Business-Process Perspective This requires management to identify the critical internal

processes in which the organization must excel in order to secure a competitive advantage.

This dimension addresses the question what must we excel at?

Learning and Growth Perspective crucial to the long-term success of organizations

In a turbulent business environment there is an ever-increasing likelihood that the technologies and processes required to sustain a market advantage and competitive edge may race ahead of the technical and managerial and processes.

In order to close this gap organizations will have to invest in re-skilling employees, enhancing information technology and systems, and aligning organizational procedures and routines

This dimension addresses the question can we continue to improve and create value?

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Costs and benefits of a Perf. Man. system

Planning and implementing a performance management system can be costly, since it involves a lot of time-intensive analysis of an organizations processes

and activities.

It can also become a bureaucratic nightmare since it can produce hundreds of microscopic statements about the way things

should be done, and how they must be measured.

At the same time, a well thought out performance management system can provide a number of long-term benefits. it makes sure that the core activities of an organization are directly linked

to its primary aims and goals. it can motivate employees by setting targets which are rewarded when

they are attained. it ensures greater accountability by clearly identifying not only what is to

be achieved, but also who is responsible for making it happen it completes the management cycle by making sure processes are

monitored, and outcomes are measured against some sort of minimum performance standard.

it forces management to come up with a quantifiable measure of its key outputs, and eliminate ambiguous aims and nebulous objectives.

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Case

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A performance management model appropriate for sport (a 9 point model)

1. Wins, awards, and successes. 2. Financial sustainability. 3. Market distribution, or the extent to which a sport

league, association or club is able to facilitate the consumption of its particular sporting practice.

4. Market size and share. 5. Customer satisfaction 6. Internal procedures and processes. (e.g. recruitment,

retention and motivation of members) 7. Product improvement 8. Staff development and learning 9. The economic, social and environmental impact that a

sport league, association or club has on its surrounding community.

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Case

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Sport Marketing

Marketing Orientation

Successful marketing programmes are market driven. In other words, you must find out what your stakeholders want from their sport and respond to those needs.

To be market driven means developing client information surveys, including client information in planning and decision making, investigating the competition and developing market strategies.

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Benefits of being market driven are:

having an innovative and responsive organisation

keeping up with the competition

retaining full membership numbers

having a high level of involvement and loyalty by the consumers or members as a result of you listening and responding to their needs.

Challenges from being market driven are:

the time and commitment it takes to find out what consumers and members want.

the result sometimes clashes with what you think they should want

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The 4 (5) Ps of Sport Marketing

Product

Price

Promotion

Place (distribution)

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The sport product

189

Sport product

A good, a service or any combination of the two that is designed to provide benefits to a

Sports spectator

Participant

Sponsor

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Simplified Model of the Consumer-Supplier Relationship in the Sports Industry

191

The sports marketing exchange process

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Types of sport products

CORE

Sport Events

Sporting goods

Hardgoods:

equipment, accessories

Softgoods: apparel, clothes & footwear

Collectibles and Memorabilia

Sports training & services

Fitness and Health Services

Sports Camps and Instruction

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Types of sport products

PERIPHERAL

Athletes

Arenas / stadia

Sports information TV, Newspapers, Internet, Magazines,Radio, etc.

ESPN

Sport betting ($100 b /year ?) $12b online sport betting

Sport video games / online sport Fantasy leagues

Towards digital sports ? Online informations + games +gambling

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Price

Pricing sport effectively is difficult and complex.

Consumers make decisions about whether to buy the sport based on perceived value, comparison with other competitive products, what friends think of it, whether it is unique or a copy, and other factors.

Players, coaches and officials also have to consider the cost of their sport against the benefits of being involved.

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Factors

Like any business, sport has production costs what it takes to put the sport package together. Consider all of these factors when determining a pricing formula or pricing policy.

Market research has found that price does not generally have a major influence on the decision of the passionate consumer to attend a fixture. But pricing must be in line with the pricing of other similar events.

Consumers also equate price with value: discounted or free products can be equated with little or no value, so run the danger of cheapening the product. Consider this whenever applying a pricing formula, particularly if you are thinking about offering freebies as incentives.

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Factors

Players, coaches and officials will weigh up the benefits of being involved against the cost.

Look at this from their point of view, and think about what is in it for them rather than what is in it for your sport/organisation. There are many competing leisure activities for the active participant nowadays, so consider how cost might negatively affect their involvement in your sport

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Promotion

Promotion is often seen as the exciting part of the marketing mix but can be confused with marketing itself.

This occurs because promotion is the most visible part of the process.

Promotion is often wrongly portrayed as being advertising only.

The main aim of promotion is to inform those you are targeting and to encourage involvement in the sport.

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Sports promotion methods

advertising (print, television, radio, internet)s Ponsorship direct marketing special deals special packages involving other goods and services pre-match entertainment Media corporate boxes merchandising (caps, key rings, collectibles, posters, clothing, etc.) game programmes meet-the-players days exhibition games old-timer days autographed photos Competitions coaching clinics.

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Place

Place relates to where and how consumers buy the product (also called the distribution function.) How do your target market get tickets or get involved in the sport?

Your sports place concerns the facility (location, layout, access, and amenities), rather than the physical channels of marketing (wholesales and retailers) which is primarily the sport spectator marketing are.a

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Public Relations

Public relations help determine the position of your sport: it is a long-term means of building the desired image for your sport or organisation.

Public relations play a crucial role in the way your sport is received by consumers.

Building good relationships with the media are vital in public relations.

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Marketing Strategy

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1. Analyse the Market

Study the environment and your position in it.

Understanding consumer behaviour is fundamental to marketing.

Sports consumption is complicated watching and participating are often intertwined.

Success will come from wide consultation, and from meeting the needs of your stakeholders: Do you understand the needs of those you want to serve/attract?

Start by knowing what stakeholders value and consider important.

Then communicate how you are going to meet their needs.

Dont tell them things that you believe should be important.

The first step in defining your market is answering this question:

To whom do we have to market our sport and our strengths?

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Identify and describe the stakeholder

1.What general information do you have about your stakeholders?

2.What current information do you have on New Zealanders who participate in or follow your particular sport?

3.Who has access to this information and what is it used for? 4.What are the gaps in stakeholder information that you think

need tobe filled? 5.What do your stakeholders need or want from your

organisation? 6.How have the wants of your stakeholders changed since

your organisation or sport began? 7.What reasons have been given for stakeholders leaving or

not participating? 8.Who are your potential stakeholders? Who wants or needs

the service, but not in the way in which it is available today? 9.How many of your stakeholders also have an interest in

another leisure or sporting activity? 204

Analyse your current Marketing Mix

Product What is your core business? What are the range of products and services you offer? How often is the range of products reviewed and by what

means? How regularly do you monitor/evaluate the quality of these

products and services?

Price What is the cost of your sport, including membership? How does this cost compare to other sports or alternative non-

sport or leisure activities? How have you arrived at these prices? (For example, historical,

market rates ability to pay?) What ideas or practises/policies have you regarding a graduated

pricing system for spectators? Are there different rates for different participant segments? Are there benefits for volunteers, such as free entry to big

events?

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Analyse your current Marketing Mix

Promotion

For each part of your sport list the ways in which they are currently promoted to the various stakeholders?

Have these strategies been developed as part of an integrated promotional plan, or on a more arbitrary basis?

How often are these promotional methods evaluated and adjusted as a consequence?

Does the promotion change if the on-field performance does not match the promotional material?

Place

Are there any barriers to access?

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2. Segment the Market

Segmentation means being aware of the different groups you are going to interact with and targeting the groups you want to serve.

When you have different market segments, you go after them differently, developing a different marketing strategy for each group.

You should develop and maintain a membership database for your information.

Sport takes in a wide market and consumer demographics can be as broad as the general public.

Making sense of this for your sport and subsequently doing some effective market segmentation is important.

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Example

A public swimming pool is a good example to illustrate market segmentation. The different users of a swimming pool are:

sauna and spa users

fitness programme participants

team sport membersc

ompetitive swimmers

Children

parents with children

social clubs

Learners

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3. Analysing the Competition

Competition may come from other sports and the many other leisure opportunities on offer.

There are benefits to be gained from analysing the competition and, increasingly, from sports working together more effectively.

These benefits include: Improving the quality of your service.

Picking up on new popular trends/innovations.

Avoiding duplication of services if the market cannot sustain it.

Staging co-operative events with other agencies pooling resources, running events together.

Pricing policies.

Identifying your strengths and limitations in comparison with others

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4. Put together a plan

Developing policies, practises and programmes targeted at satisfying consumers and gaining their loyalty is essential for sport.

Consider carefully the information you have gathered, particularly the wants of stakeholders.

Take time over this it is tempting to assume that information gathered confirms what is already being done (when it is not), or that it is not so important (when it is!).

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Process for developing a marketing plan

A) Developing Goals Responding to market demand with new goals and strategies

must fit into the mission and strategic plan of your organisation.

It should also fit the environment in which your organisation works.

Your marketing goals will show how you intend to stand out. Develop marketing goals by: Identifying how we put ourselves across to the stakeholder we

want to attract.

Identifying our uniqueness or competitive advantage/s.

Cultivating strengths and articulating them meaningfully to the market.

Identifying needs which are not being satisfied.

Respecting stakeholder values and satisfactions, rather than reflecting the executives or organisations own views and egos

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b. Identifying Objectives

Develop targets or results that focus on specific market segments, andaim to reach the objective you have identified. These should be SMART:

Specific

Measurable

Attainable

Realistic

Time framed

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c) Planning for Action

Illustrate how the objectives will be achieved.

What marketing strategies will be applied to reach these objectives?

Consider resources, skills, time and priorities necessary to achieve the objectives. Who has to do what, when and with what results?

What tools do they need?

What resources are required to meet the goals?

How will progress be measured?

There is not much value in trying to attract different market segments with the same approach. It is better to think widely while considering the implications on resources and time.

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5. Monitor and Evaluate

Developing ways to measure your progress is essential in judging the success of marketing strategies. Consider these points:

How are you doing in relation to your timetable?

Set in place feedback mechanisms is everyone doing what was planned, how do they let you know?

Link the targets to clear and measurable outcomes which have been set at the planning stage.

Were the targets met or exceeded?

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Developing Evaluation Processes

Consider the examples you developed for the action plan.

Plan an evaluation process for these based on the following table

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Sponsorship

Corporate supporters (also known as sponsors) need to be encouraged or convinced to buy or join up in the same way as other stakeholders.

Asking for sponsorship is not enough; you have to offer something in return.

The benefits that sponsors are looking for will be different from those sought by other stakeholders.

Members seek immediate service such as competitions and social activities.

Sponsors, however, will want to use the sport to promote its product to the market the sports organisation appeals to.

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Sponsorship

Promotions should be pitched at highlighting the commercial value to a sponsor: the more a sports organisation can attract an appropriate market, the more attractive they will be to a corporate sponsor.

Sports sponsorship is the support of a sport, organisation, event or competition by an outside body or person for the benefit of both parties.

Additional funds, or a wider market, are the obvious benefits to the sports body.

The benefit to the sponsor is often less tangible.

The sporting body usually makes the sponsorship approach, not the potential sponsor.

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Sponsorship

To establish what you could offer a potential sponsor, consider the following:

Name

Image

Goodwill

Personality

symbols/logos

Synergy

Audiences

a market

heroes

218

Sponsorship

Consider also the tangible benefits:

direct sales exclusive selling rights

special offers to members

image building naming rights

political benefit opportunity to entertain business or government clients

media coverage indirect advertising

product demonstration at events

219

Documents

Sport Management ERASMUS Complete