Strategic Sport Marketing Management

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Strategic Sport Marketing Management
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Strategic Sport Marketing Management

• Position the organization or product relative to
  the competition within the marketplace
• Develop a vision and mission
• Conduct a SWOT analysis
• Develop a data-based information system
• Establish strategic goals
• Develop a comprehensive marketing plan
• Integrate the marketing plans with resource
  allocation
• Implement and evaluate the marketing plan

SWOT analysis of strengths, weaknesses,
opportunities, and threats
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Contingency Framework for Strategic Sport
Marketing

• Internal contingencies
• Organizational vision
• Organizational mission
• Organizational goals and objectives
• Organizational strategies
• Organizational culture

• External contingencies
• Competitiondirect substitute indirect
• Legal and political
• Technology
• Cultural and social trends
• Physical environment
• Demographics
• Economy

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Strategic Sports Marketing Process

• Planning
• Market research
• Market segmentation, target and niche markets,
  and positioning (and repositioning)
• Marketing mixproduct price place promotions

http//www.cstv.com/auto_pdf/p_hotos/s_chools/kan/
genrel/auto_pdf/06-strategic-plan
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Strategic Sports Marketing Process

• Implementing
• Communication
• Staffing and skills
• Coordination
• Budgetingresource acquisition and allocation
• Creativity
• Motivating and rewarding
• Marketing information systems and information
  management

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Strategic Sports Marketing Process

• Controlling
• Measuring results
• Financial and profitability analysis
• Customer satisfaction
• Marketing audit

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Making Marketing Resource Allocations

• Rationalitylinked with the probability of
  gaining the highest returns at the least cost is
  the highest rated by marketers, especially when
  resources are limited.
• Distributive justicefairness will be used as
  basis.
• Powerthe external and internal influence of
  others will impact decisions (often based on fans
  and their support for traditional mens programs
  and mens revenue-producing teams).

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Key Findings
Implications

• Marketers are primarily concerned with maximizing
  returns rather than being fair.
• When resources are scarce, marketers are likely
  to focus on accruing the highest value for the
  lowest cost. Marketers are more likely to be fair
  when distributing non-monetary resources.
• Marketers are less likely to distribute marketing
  resources to programs that have not delivered in
  the past.
• The influence of powerful stakeholders tends to
  shift more resources into mens sports over
  womens sports.
• Marketers will seek the highest returns
  regardless of the sports gender composition.

• Rationality was the highest rated form.
• Scarcity of resources influenced the exchange
  norm used to distribute resources.
• Prior results influenced the exchange norm
  utilized to distribute resources.
• Power relationships predicted which sports
  received resources.
• Rationality did not predict which sports received
  resources.

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Marketing Resource Allocations

• Mens sports receive more monetary and
  non-monetary marketing resources than do womens
  sports.
• High-profile sports receive more monetary and
  non-monetary marketing resources than do low
  profile sports.
• When resources are scarce, sport marketers use
  rationality to justify providing more resources
  to mens sports that have been successful in the
  past.
• Sport marketers use fairness to justify providing
  more resources to mens or womens sports that
  have been successful in the past.
• When resources are abundant, sport marketers use
  distributive justice to justify providing more
  resources to womens sports.
• Sport marketers use power to justify giving more
  resources to mens sports.
• Sport marketers are less likely to invest
  marketing resources in programs that have not
  delivered in the past.

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• Assume you are the Marketing Director of a NCAA
  Division I institution which sponsors 10 mens
  teams (football basketball baseball golf
  tennis cross country indoor track outdoor
  track swimming wrestling) and 11 womens teams
  (volleyball soccer basketball softball golf
  tennis cross country indoor track outdoor
  track swimming rowing). You have a budget of
  100,000 to allocate for marketing among these
  sports. To assist you in making your allocation
  decisions, please assume the following
• Football and mens basketball are the most
  popular sports and the only revenue-producing
  sports.
• For the past five years, over 50 of the
  marketing budget has been allocated to football
  and mens basketball with the goal to sell out
  the stadium and the arena for home games.
• Baseball and womens basketball are the only
  teams that have won conference championships
  within the past three years. The other teams have
  won between 40-60 of their competitions.
• Each team in the past has received at least a
  base budget of 2,000 for marketing even though
  no measureable results in increased attendance
  has been achieved at mens and womens golf,
  mens and womens tennis, mens and womens cross
  country, indoor track, and outdoor track, mens
  and womens swimming, wrestling, volleyball,
  soccer, softball, and rowing.
• The institution does not fully comply with Title
  IX of the Education Amendments of 1972 in that it
  allocates 46 of its grants-in-aid, 42 of its
  operating budget, and 37 of its recruiting
  budget to womens sports. The undergraduate
  enrollment is 52 female.
• Develop a marketing resource allocation for
  monetary and non-monetary resources for the
  upcoming year based on ? and justify your
  allocations.

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Competitive Forces and Profit

• Threat of new competitorsthe fight for market
  share drives prices down and decreases
  profitability
• Intensity of rivalry among existing competitors
  leads to price cutting, increased advertising
  costs, and increased customer services
• Threat of substitute products is hard to identify
  because is more than sports
• Bargaining power of buyers lowers profits by
  requiring higher quality or more services
• Bargaining power of suppliers squeezes out
  profits through cost increases

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Starter Corporations (firsts)

• Bought the rights to use the logos, marks, and
  colors of professional and collegiate teams
• Emphasized authentic apparel like worn by players
  (in contrast to official apparel)
• Placed the Starter logo on the outside of
  merchandise along with the teams logo or mark
  (double branding)
• Used satin, instead of cheaper fabrics

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The Demise of Starter

• Threat of new competitors as due to too many
  licensees in too many stores
• Intensity of rivalry among existing competitors,
  especially companies like Nike and Reebok with
  huge resources
• Threat of substitute products saturated the
  market
• Bargaining power of buyers increased due to store
  closings and consolidation
• Bargaining power of suppliers increased due to
  higher licensing and royalty fees
• Was highly dependent on the professional leagues
  as its core competency but, it became a stagnant
  core
• Also, tried own retail stores, international
  expansion, and non-team sports

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Strategic Wheel of Service Performance

• Market orientation includes customer orientation,
  competitor orientation, and inter-function
  coordination
• Strategic flexibility includes intent and
  capabilities for providing superior customer
  service
• Competitive advantage includes doing the expected
  in customer service but also doing more by
  knowing what the customer wants and values
• Service performance includes customer retention
  and satisfaction

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Customer Relationship Marketing

• Defined as to establish, develop, and maintain
  successful relational exchanges.
• The focus must be on the customer (retention is
  more important than capture).
• Companies spend 80 on attracting new customers
  and only 20 on services existing customers.
• Most customers leave or stop making purchases due
  to service-related reasons.
• Companies lose 10-30 of customers each year
  (lose on average 50 over 5 years).
• A former customer is more likely to return than
  is a person who has never purchased.
• Increasing customer retention by 5 can increase
  lifetime profits from an average customer by
  25-100.