Monday, January 16, 2006

Promotion Concepts and Jim Barren

Today our guest speaker, Jim Barren, formerly worked with Event Coordinators to market sports programs such as the 1982 Superbowl in Pontiac, Michigan. He informed us of the 8 steps to promoting a sports venue.
  1. Find why the venue was built. (Mission / Goals / Themes)
  2. Find out the basic features. (Features)
  3. Find the positives about the venue. (PRO's)
  4. Define the potential consumers. (Target Market)
  5. Find the negative aspects of the venue. (CON's)
  6. Analyze the competition. (Competitive Analysis)
  7. Develop a marketing plan. (Plan)
  8. Solve who will use the venue.
  • It's important that the operations department upholds the quality that the marketing and sales department have promoted in order to be succesful.
  • Marketing Campaigns and Budgets are also equally important.
  • Give incentives back to dissatisfied clients.
  • Private Managment aka Outsourcing.
  • Involve those who have a "vested" intrest. (Investors and Owners)
Chapter 10: Promotion Concepts

Promotion occurs in all forms of communication. Sports are a general topic and are frequently marketed by word of mouth in the general population. Large scale TV ads also promote sports. Everyone likes them becase they are unpredictable and always new.

Promotions Mix
Advertising, Personal Skills, Sponsorships, Sales Promotions, Public Relations.


Communication to Consumers Diagram

v--------------FEEDBACK / BEHAVOIR --------------v
Source -> Encoding -> Message -> Medium -> Decoding -> Reciever
^----------NOISE---------^


Wednesday, December 07, 2005

Day Three: Contingency Framework, Internal and External

Contingency Framework surrounding Sports Marketing includes internal and external influences. The main purpose of knowing of the Contingency Framework is to be able to be flexible and adaptable to the changing variables in the environment surrounding sports marketing. We learn to always prepare for the expected and the unexpected.

By taking into consideration Internal Contingencies, such as Organizational Goals, Organizational strategy, Organizational Vision, Organizational Mission and Organizational Culture, a marketing strategy can be developed to coincide within the Internal Contingencies. If the marketing strategy contradicts any of them, there may be issues with fulfilling the goals of a marketing strategy.

External Contingencies, such as Competition, Technology, Culture/Social trends, Physical environment, Legal Issues, Economy Trends and Demographic Trends, will also affect the marketing strategy success. To ensure a marketing strategy is as efficient and successful as possible, we should use environment Scanning to keep current on issues that may affect our market and industry as well as other factors that we must be aware of. For example, when planning a major sports event, it wouldn't make much sense to have it air on television the night of a presidential election, since most people will be distracted from that and the turnout would most likely be pretty low. Another example would be that paying attention to demographic changes are important as we have seen fitness clubs such as LA Fitness and Lifetime Fitness become so successful as the "Baby Boomers" are coming to an age where their children are out their homes and many are divorcing, soon to re-enter the dating scene. These fitness clubs realize that and took the opportunity to capitalize on the popular shift in relationship status and amount of daters in the world. Everyone wants to look their best on a first date right? So that's why we have seen gyms regaining popularity.

Tuesday, December 06, 2005

Sports Marketing: A Survey-And-Fix Approach

Sports Marketing: A Survey-And-Fix Approach

Funk, B., Mahony, D. & Ridinger L. (2002) Characterizing Consumer Motivation as Individual Difference Factors: Augmenting the Sport Interest Inventory to Explain Level of Spectator Support : The Sports Marketing Quarterly, Vol 11, No. 1. p. 33 (10 pgs).

Purpose
The purpose of Characterizing Consumer Motivation as Individual Difference Factors: Augmenting the Sport Interest Inventory to Explain Level of Spectator Support is to reveal the results from a survey conducted during the Women’s World Cup in 1999. The article assess the motivations that brought people to that sporting event and connect it to the consumer behaviors that cause consumers to engage in sporting activities, in this case, Women’s soccer. The article also explains the 12 driving factors for spectators to engage in a sporting activity and evaluates which are most prominent in Women’s soccer.

Question
The main questions the article asks are “What are the factors that motivate consumers to attend a sporting event?”, “How do they connect to the behaviors that actually cause a person to attend a sporting event?” and “What can leagues and organizations do, knowing what drives fans to their games and events?”.

Information
There are motivational factors for fans to engage in sporting activities can be characterized into five major characteristics: sport interest, team interest, vicarious achievement, role modeling and entertainment value.

In the past decade, Women’s sports participants have increased dramatically. There has also been an increase of Women’s sports spectators. The media coverage of Women’s sporting events has climbed steadily. More and more Women’s sporting events are becoming more popular events to attend and/or participate in. In 1999, The Women’s World Cup (WWC) was the high point that sparked not only media attention, but inspired a few to explore the reasons for Women’s sports large jump in fan attention. To do this authors of this article have discussed the factors that motivate fans to engage in Women’s sporting events.

Having a better understanding of the leading motivational factors of people that have made Women’s sports become more popular and profitable, will help ensure the success of future Women’s sports and, more broadly, sports in general.

There are two fundamental objectives to research consumer behavior when dealing with the motivation to engage in sports. First is to understand how motives and behaviors relate to one another. Second, to develop a list of the specific motives that influence a person to act on attending/participating in a sporting event.

Sports Illustrated surveyed 504 people at the World Cup by random choice. The results came back as 61% women, average mean age of 31 years and most had no history of attending sporting events in the past, but their favorite sport was soccer and on average the fans had played in organized soccer for 7 years. The fans also had a strong knowledge about soccer and the rules of the game.

The leading motivation to attending the Women’s World Cup by using the surveys and linear regression was first, for the love of soccer, secondly was for the love of the team, third was the environment that the Women’s World Cup gave to its fans.

Conclusion
First conclusion made by this survey is that the players must continue to display a professional image and become role models to fans. Secondly, the league and facilities must focus on providing entertainment for all fans throughout the whole experience of attending a sporting event. Third the leagues must uphold a friendly environment, or one that gets approval from the majority of the fans. It would not make sense to have Dallas Cowboy cheerleaders at a Women’s volleyball tournament. Fourth, the league must keep ticket prices affordable. Fifth, the teams should concentrate on ‘branding’ their franchises so the fans can grow attached to the teams. Sixth, the teams should market to those who play their sport, or support concepts and ideas that the league promotes, in hopes to have them promote second-handedly. Seventh, the league does not need to focus on advertising certain players in order to increase consumer activity in their leagues. Lastly, the research shows that different market segments require different marketing strategies and that having only one strategy may only target one market segment.

Concepts
The first main concept in this article are that there are distinguishable factors that inspire and motivate fans to partake in sporting events and that they can be identified and sorted in order of importance. The second main concept as a result of the article is that fans really enjoy the whole sporting event experience and enjoy the environment that goes along with attending the sporting event; it seems to give the spectator an experience much different from watching it on television. The third main concept is that knowing what motivates fans from Women’s soccer to purchase tickets and attend the Women’s World Cup, could also be applied to other sports to help assess why consumers are engaging in their sports as well, and to bring new marketing strategies for those marketing segments.

Assumptions
The survey only included people at the Women’s World Cup, it did not take into consideration those that watched it from television, or those who may have followed the league, but could not get tickets to the game. The article is also limited to one event, rather than Women’s sports in general, or all sports as a broad subject. The article admits to being limited to the view of other sports and what motivates people to get involved.

Points of View
There are three authors of this article. First is Dan Funk, an assistant professor from University of Texas, who researches sport consumer psychology with a big focus on branding, services, issues and persons involved in sports. The second author is Daniel Mahony who is a doctorate graduate and works in the Health and Sport Science Department in the University of Louisiana. The third is Lynn Ridinger, a doctor from the ESPER Department in the Old Dominion University of Norfolk, Virginia. The three take on a scientific role to assessing the reasons that consumers attend sporting events. They also use surveyed statistics to conclude from their research.

Implications
Taking a scientific, statistical look at sports event spectators is objective, when in reality the consumer is subjective. It is hard to assess the various reasons why multitudes of consumers attend sporting events, and this article proves itself as minimal in assessing the quick-fix solution. It does offer some insight into fixing a marketing strategy to adapt to certain market segments but it leaves some undefined. If using this “survey-and-adapt” method, sports franchises and marketers can improve their marketing programs but there must be more research aside from surveys that will enhance their marketing levers.

Application
Any sports league, franchise or promoter can use surveys, as documented in this article. It will shed some light on the motivations that influences consumers to invest in sporting activities. By focusing on the sport as an entertainment value and enriching the entire experience one gets from a sporting event, they can adjust their event to supply additional entertainment activities such as bands, shows and other fun activities that keep the audience engaged. The marketers should also work on other advice given in the Conclusion section of this review for additional tips on how to best serve their supporters.

Monday, December 05, 2005

Day Two: Sports Marketing 101

What is Sport? Is NASCAR a sport? What about Poker? Spelling Bee's? Scrabble? Well according to ESPN, they are sports. All of these events can considered sports because a sport is really "a source of diversion or physical activity engaged with pleasure." That is pretty open ended, most sports are competitive, there are a winners and losers, sports keep score.

A Sport is entertainment. According to Reebok president, Robert Meers, "The market is now sports, music and fashion". More and more we can see how these entertainment means involve eachother. Each market affects eachother and the synergy of all of them bring about new means of entertainment for the consumers, the fans.

Successful sports organizations practice a marketing orientation: understanding the consumers and providing sports products that satisfy the consumers needs. For instance, the ABA Pitbulls in Florida had famous rap star Trick Daddy play a set at their minor league basketball game to attact fans. A side note: Trick Daddy also influences the fashion industry by his unique image in the hip hop community. Why do you think that the Superbowls Halftime show is so popular? Same theory.

The sports Industry is growing rapidly, and doesnt seem to be letting up. With more and more sports becoming popular and a bigger following of fans for the broad range of sports its no wonder the industry has grown to produce nearly 550 billion dollars annually. Since Sports are perpetual and each season players get stronger, faster, tougher, and more creative the games never cease to explode. ESPN's Bill Rasmussen states "The games are better, the athletes are better." It seems to be a never-ending cycle, the fans inspire the players, the players inspire the fans.

There are several categories of income drived by the sports industry: Sporting Goods, Media Coverage, Sponsorships, Gambling, Equiptment to name a good few. But what is Sports Marketing?

Sports marketing is marketing of sports. Easy enough? It's taking the 4 P's of the marketing mix and adapting them to sports. Products become a service, but the place, price and promotion all help increase demand of the consumer to engage in the sports community.

The consumers are spectators, participants and consumers. The products are events, goods, personal training and sports information. The producers are sports labor, sanctioning bodies, sponsors, retail, media, agents and equiptment manufactures.

After working in a marketing department for a major sports team I can better see how these fundaments of sports marketing come in to play. People could survive in marketing without knowlege about them, but knowing about them and keeping them on the fore-front gives one the upper hand over another who isn't aware of them. I am eager to learn more about sports marketing and the ways I can impact it in the future.