Teaching note

Team power3: Building the Market for a multisport organization

Brianna Smith *

The University of Texas at Austin, Sport Management Program, 1 University Station, D3700, Austin, TX78712, United States

1. Teaching note and overview for use in class

The case uses TP3, a multisport organization, to help students understand sport marketing strategies that can be utilizedto generate revenue. Sara, the Event and Membership Director of TP3 grapples with potential strategies and tactics to buildrevenue via events and memberships. Event issues include: (a) developing a schedule of events (i.e., an event portfolio), (b)deciding on event product and services redesign, (c) positioning TP3 to better differentiate TP3 events from the competitionand (d) designing better marketing communications and promotions to grow event participation. Membership issuesinclude: (a) increasing TP3 team and club membership, (b) developing products and services to meet the needs of team andclub members and (c) designing more effective marketing communications and promotions. In the case, Sara introduces anumber of potential strategies, which requires students to both evaluate existing options and to think creatively aboutalternative solutions.

The case is written from the perspective of the event/club director and lays out her analysis of the problem and possiblesolutions. The case is based on an existing organisation, however, the names given to the events director (Sara Smythe), theteam founder/head coach (Tom Zandt), and the organisation (TP3) are all pseudonyms. At first glance, the decisions of theteam founder may seem unrealistic. They are, however, based in fact. Like many sport entrepreneurs, Zandt lacks thebusiness training to adequately develop TP3. Instead, he founded the club out of a passion for the sport. Although difficult tobelieve this organisation functions in this manner, the case presents data and authentic considerations facing theorganisation. The setting for this organisation is in central Texas, USA. However, the issues faced by the organisation aregeneral enough that the case is relevant to any geographic location. For more information on the context of multisportevents, clubs and participation in Central Texas, students can be directed to the Internet. Alternatively, students can bedirected to explore multisport organisations and events in their own region.

The case requires students to consider standard marketing concepts and techniques such as product design, positioning,promotions and marketing communications. However, the application of these techniques can be strengthened by applyingknowledge of general factors important to event leveraging, as well as adult and youth sport participation. The followingsections highlight potential teaching points for each.

1.1. Leveraging the event

There is value in having students consider specific marketing applications that are raised in the case, particularly socialand subcultural leveraging of the events (Green & Chalip, 1998). When sport events are planned, attention is primarily givento preparations for the competition. There is such a demand to maximise the event’s economic impact that the social impactcreated by the event is often overlooked. It is thought that social camaraderie can attract event participants and encouragespending (Chalip, 2006). By creating a sense of celebration and sociability to be shared by those with common interests, anoccasion for rejoicing is provided to the participants (Chalip, 2006). It has been demonstrated that competitors seekopportunities to share and affirm their identities with others (Green & Chalip, 1998). Realizing the appeal to eventparticipants, some event organisers have begun to augment the event by providing other activities that engender fun andexcitement (Green, 2001). In the current case, Sara recognizes that the competition is providing social activities and a festiveatmosphere that is attractive to participants and grapples with the idea of adding this aspect to TP3 events.

Sport Management Review 12 (2009) 110–112

* Tel.: +1 512 232 5451; fax: +1 512 471 8914.

E-mail address: Brianna.smith@mail.utexas.edu.

Contents lists available at ScienceDirect

Sport Management Review

journal homepage: www.e lsev ier .com/ locate /smr

1441-3523/$ – see front matter . Published by Elsevier Ltd.

doi:10.1016/j.smr.2008.12.006

1.2. Adult sport participation

Many sport organizations face declining participation numbers and the challenge of increasing membership. Unlike othertraditional organised sports, the sport of triathlon has seen a steady growth in participation over the last two years (SGMA,2008). Increasing club and team membership should concern sport managers because triathlon is an individualised sportthat does not require club or team membership for success. So why would someone want to join a club when they areperfectly capable of training alone. In order to recruit new members, managers should consider the value membership offersthe individual athlete. Of importance to sport managers is the level of commitment the participant has to the sport as this hasshown to increase participation (Casper, Gray, & Babkes-Stellino, 2007). Research has suggested that personal investment,involvement opportunities, and social support can improve sport participation (Casper et al., 2007; Vail, 2007). Triathlon,and other multisport events, requires a large personal investment in equipment, registration fees, and time spent training.While athletes that are involved in triathlon have invested in the equipment and racing fees, training and racing alone offerslittle social support or involvement opportunities. Understanding what attracts adult participants, and keeps themcommitted, can help the sport manager better recruit and retain members. In the current case, Sara realises that the currentproducts and services might not be adequate for TP3 members. She wrestles with the issues of creating new products andservices and how to market them to current and potential members in order to increase participation.

1.3. Youth sport participation

While the club membership is available to youth athletes, the goal of TP3 is to build a competitive, developmental team.There are two main objectives that Sara and the TP3 team are trying to reach: to increase the number of participants and toimprove the quality of performance. What Sara must first consider is how the athletes get involved in the sport. Stevenson(1990) found that while athletes are introduced to their sport by a significant other, the decision to enter the sport isinfluenced by the new relationships and role identities the sport provides. The opportunities to participate has beendemonstrated to induce participation (Braddock, Sokol-Katz, Greene, & Basinger-Fleischman, 2005), while modified youthsport programs that are designed to emphasize skills rather than competition have shown more enjoyment and satisfactionby youth (Green, 1997; Hill and Green, 2008). However research has suggested the degree to which the youth participantreceives benefits of sport participation depends on the methods of program implementation (McCormack & Chalip, 1988).The opportunities for skill development and participation in an individual sport like triathlon provide all youth a chance totrain and compete. Since triathlon is an individual sport, no children are left out of training or racing and all are provided theopportunities to improve their skills in each sport.

1.4. Specific applications to the case

This case requires students to consider how the problems Sara faces are interrelated and to develop strategies thatencapsulate all aspects of TP3. Instructors can begin by having students consider individual aspects of the case to increaseevent participation or club and team membership then, have them examine ways to cross-market events and memberships.By doing this, students learn to cross-market products and services from other areas of the organisation to drive participantnumbers and generate more revenue. The majority of marketing texts typically provide information for marketing forentertainment sport. There is little attention given to sport participation and even less focus on cross leveraging. The value ofthis case is that it introduces the challenges of marketing sport participation in the context of events and club and teammembership.

The case and accompanying questions require students to interpret and incorporate information from both quantitative(tables and figures) and qualitative sources (narrative). A number of issues that are presented in the case can be addressed atthe discretion of the instructor based on which concepts are currently being discussed in class. The case is suitable for bothundergraduate and graduate students. Students should understand basic marketing concepts, including the components ofthe marketing mix. The case gives students the chance to consider the theoretical and practical challenges faced by an eventcompany and club. The following section contains assignments, targeted questions to assist students with the assignment,and suggestions for teaching.

1.5. Additional issues

Sara is facing a serious financial problem that students must consider as they develop strategies and tactics to generaterevenue for TP3. As the financial statement shows, TP3 received $20,000 in sponsorships, $12,000 in private donations, andover $2,000 from Tom’s credit card. Sara proposes that TP3 focus on other revenue streams because she does not believe TP3is attractive to sponsors. This gap in revenue is something the students need to consider as they develop their tactics. Ofcourse, sponsorships and donations are an option, but information has not been provided to the student within the context ofthis case. It is likely that students will first land on sponsorship as the best way to generate revenue. However, the intentionof this case is to have students think more deeply about other revenue generation strategies, specifically, membership andevent strategies. Therefore, it is best to have them focus on the participation issues rather than sponsorships. Theorganisation is just too small to warrant any significant sponsor support at this point in time.

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The following questions can be discussed in class or given as a written assignment, based on the needs of the course.

1.6. Questions

1. What is the key issue facing TP3? What are the marketing challenges? What are possible solutions to these problems?Identify possible solutions from the case. Identify other possible revenue solutions.

2. Evaluate each possible solution. Which would you choose to enhance? Why should TP3 implement these solutions? Howshould TP3 implement them? Are they necessary? Are they feasible? Are they appropriately priced? Will they besufficient? Explain.

3. Which would you reduce or eliminate? Why should TP3 reduce or eliminate these things you suggest? How do yourecommend they reduce/eliminate them? Explain.

4. Identify potential synergies among revenue generating solutions (i.e. How can the club, team, events, and camps besynergised so that each supports the marketing of the other?) How can these solutions work together? How can theybenefit one another? Are there any added costs? Which (if any) are justified? Why?

5. Develop a tactical plan to cross-leverage or integrate these solutions.6. What are the key challenges to cross-leveraging? How might you overcome these challenges? What changes might be

necessary at TP3 to overcome these challenges?

1.7. Activity

In groups, pairs, or individually, ask students to think through the issues facing TP3. Students should be encouraged todevelop innovative and creative ways to generate revenue for the company within the limited budget and context of thiscase. They should begin to consider what marketing strategies and tactics they would use to help TP3. You may wish to havethem consider all possible solutions or choose to focus them on specific concepts. Students can also take the informationderived from the questions and begin to develop a marketing plan for TP3. While a full-fledged marketing plan would requiremore data than are presented in this case, students can use the case to develop a preliminary plan.

References

Braddock, J. H., Sokol-Katz, J., Greene, A., & Basinger-Fleischman, L. (2005). Uneven playing fields: State variations in boys’ and girls’ access to and participation inhigh school interscholastic sports. Sociological Spectrum, 25, 231–250.

Casper, J. M., Gray, D. P., & Babkes-Stellino, M. (2007). A sport commitment model perspective on adult tennis players’ participation frequency and purchaseintention. Sport Management Review, 10, 253–278.

Chalip, L. (2006). Towards social leverage of sport events. Journal of Sport and Tourism, 11(2), 109–127.Green, B. C. (2001). Leveraging subculture and identity to promote sport events. Sport Management Review, 4, 1–19.Green, B. C., & Chalip, L. (1998). Sport tourism as the celebration of subculture. Annals of Tourism Research, 25, 275–291.Green, B. C. (1997). Action research in youth soccer: Assessing the acceptability of an alternative program. Journal of Sport Management, 11, 29–44.Hill, B. B., & Green, B. C. (2008). Give the bench the boot! Using Manning Theory to design youth-sport programs Journal of Sport Management, 22, 184–204.McCormack, J. B., & Chalip, L. (1988). Sport as socialization: A critique of methodological premises. Social Science Journal, 25, 83–92.Sporting Goods Manufacturing Association, (2008). 2008 Sports and Fitness Participation Report. Retrieved on July 5, 2008, from http://www.sgma.com/

associations/5119/files/topline08.pdf.Stevenson, C. (1990). The athletic career: Some contingencies of sport specialization. Journal of Sport Behavior, 13, 103–109.Vail, S. E. (2007). Community development and sport participation. Journal of Sport Management, 21, 571–596.

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