What is marketing

1
What is marketing?

• Marketing is about customers
• How to find them
• How to satisfy them
• How to keep them

2
What is marketing?

• According to Kotler (1994, p.6) marketing is
• "a process by which individuals and groups obtain
  what they need and want through creating,
  offering and exchanging products and value with
  each offer".

3
Marketing as a process

• Starts by identifying the needs of the customer
• As customers have different wants, effective
  marketing will require targeting or segmenting
  the total market
• The organisation has to decide what its
  objectives are and who are its best target
  customers
• This generally requires research and planning

4
Marketing as a process

• McCarthy (1981) suggests organisations must
  decide what to offer those targeted customers
• This offer involves four key elements of the
  marketing mix
• Product what to offer
• Price how much to charge
• Promotion how to tell people
• Place how or where people can buy it
• The four P's need to be examined with the
  customer's needs and values in mind

5
Marketing as a process

• In recent years three other Ps have been added
  to the marketing mix
• Physical evidence visual / tangible clues i.e.
  design and construction of a facility
• Process convergence of the marketing
  operations (improved service quality)
• People plan and deliver the service  

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The sport marketing mix

• Product
• Price
• Promotion
• Place
• Physical evidence
• Process
• People

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The sport marketing mix

• Product
• Intangible
• Simultaneously produced and consumed
• Perishable
• Inconsistent and unpredictable
• Wide appeal

8
The sport marketing mix

• Price
• Can be difficult to asses
• Price may not reflect the true costs
• Indirect revenues
• Non-profit vs. for profit

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The sport marketing mix

• Place
• Ease of purchase
• Right location
• Accessibility crucial

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The sport marketing mix

• Promotion
• Mass media impact
• Visibility
• Corporate association
• Communicate benefits

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The sport marketing mix

• Physical evidence
• Visual aspects
• Design features
• Construction
• Facility quality
• Aesthetic appeal

12
The sport marketing mix

• Process
• Marketing operations converging
• Service quality
• Reliance on staff training

13
The sport marketing mix

• People
• Plan and deliver service
• Higher levels of education
• Market intelligence
• Staff at the coalface

14
Marketing as a philosophy

• Whole organisations need to be aware of the
  fundamental elements of marketing and not only
  the marketing departments
• If one part of an organisation is sloppy in its
  operations either internally or externally, this
  will impact on the total delivery of a business
  or service

15
Marketing as a philosophy

• According to Drucker (1954) marketing is too
  important just to be left to the marketing
  department
• "It is the whole business seen from the viewpoint
  of the end-user, the customer"

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Marketing as a philosophy

• To achieve this, internal marketing is needed.
  The benefits of company policy need to be sold to
  those implementing them.

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Marketing as relationship management

• It is much easier to keep existing customers than
  to find others to replace them.
• According to Gronoss (1989, p. 52) the definition
  of marketing needs to emphasise the importance of
  building relationships
• Marketing is to establish, develop and
  commercialise long term customer relationships so
  that the objectives of the parties are met. This
  is done by a mutual exchange and keeping of
  promises"

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Marketing as relationship management

• Quality customer relationships are developed
  through the staff who have direct contact with
  customers

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Marketing and competitive advantage

• To be successful in the face of all competition,
  the marketer must offer something distinctive
• According to Porter (1980) there are basically
  three ways of gaining a competitive advantage
• Lower pricing
• Differentiation (offering a better product than
  your rivals)
• Focus (serving particular groups or segments of
  the customers better than your competitors)

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Marketing and competitive advantage

• Brand image can also be added to the above list
• Promotional methods and the way a service is
  presented visually can make a product or service
  seem distinctive even though there are few real
  differences from the competition

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The marketing approach then

• Is to see the business from the customer's
  viewpoint, and
• To get the whole organisation working together to
  develop relationships with the customer based on
  trust

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Marketing services

• Trust can be even more critical in marketing
  services because there can be less tangible
  evidence for the customer to examine

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Marketing services

• The service is inseparable from the moment of
  consumption
• Customers pay fees on the promise of receiving an
  experience
• Whether that promise is kept can depend on the
  quality of interaction with staff
• A friendly welcome or a long wait in a queue can
  impact on the total perception of an organisation

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Marketing services

• The quality of the product can therefore be
  variable and is not entirely under the control of
  the marketer
• An outdoor sporting event for example is very
  vulnerable to the weather

25
Marketing services

• The difference is that services are even more
  perishable
• The tickets for today's event cannot be stored
  for another day

26
Marketing services

• According to Kotler (1994) the above
  characteristics, intangibility, inseparability,
  variability and perishability are common to most
  services
• In the sport and leisure industry services are
  competing for the customer's spare time and
  disposable income

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Marketing services

• The skill in marketing services lies
• In creating value
• In packaging and promoting the experience so that
  the customer feels compelled to buy/join it, and
• To make the customer interested in your product
  and not your competitors

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• What are some of the unique characteristics of
  marketing sport?

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Unique characteristics of marketing sport

• Consumer involvement
• Unpredictability
• Competition and cooperation
• Sponsorship
• Publicity
• Distribution

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Consumer involvement

• Experts
• Disadvantages?
• Advantages?
• Universal
• Identification

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Unpredictability

• Results are unpredictable
• Attractive aspect of sport
• However can be problematic for the sport marketer
• Difficult to guarantee quality of contest
• Contrast with the marketing of other services

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Unpredictability

• Interpretation gratification varies
• Follow the sport, club and contest
• Challenge is customer satisfaction
• Challenge is repeat business

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Competition and cooperation

• Unusual situation
• Compete and enhance
• Politics

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Publicity

• Reliance
• Easily gained
• Strategic
• Spin

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Sponsorship

• Sports economy
• Unique medium
• Branding
• Loyalty

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Distribution

• Venues
• Transport
• Integrated component
• Produced, consumed delivered
• Distribution via broadcast technology

37
Importance of marketing in sport management

• Key role
• Administration to management (ACB WSC)
• Increase possible revenue streams
• Modification of product (20/20, Qantas Skins)
• Competitive advantage through marketing
• Normal acquisition strategies not a common option

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Importance of marketing in sport management

• Promote and nurture new markets
• Customer is seen as central to ongoing
  organisational survival
• Sustain growth through new revenue
• Building quality relationships with key
  stakeholders e.g. Broadcasters, Radio, Print,
  Public, Government, International Sporting
  Federations, Athletes etc.

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Importance of marketing in sport management

• Ethical behaviour
• Commercial pressures
• Tension of generating revenue vs. organising sport

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Sport marketing defined

• Marketing of sport
• Marketing through sport

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Sport marketing defined

• "Sport marketing is a social and managerial
  process by which the sport manager seeks to
  obtain what sporting organisations need and want
  through creating and exchanging products and
  value with others." (Shilbury et al, 2003, p. 12)

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Questions

• Think of sports or sporting organisations that
  market themselves well. What are some of the key
  factors behind this success?
• Think of sports that have struggled to market
  themselves, what the key reasons for this
  failure?
• How important is tradition, culture, power,
  gender and the media when analysing the success
  or failure of some sports?