Introduction to Sport Marketing 2015 PDF

Downloaded by [University of California, San Diego] at 06:11 11 June 2017  Introduction to Sport Marketing Downloaded by [University of California,...

Downloaded by [University of California, San Diego] at 06:11 11 June 2017  Introduction to Sport Marketing Downloaded by [University of California, San Diego] at 06:11 11 June 2017 Introduction to Sport Marketing is an accessible and engaging introduction to key concepts and best practice in sport marketing. Aimed at students with little or no prior knowledge of marketing, the book outlines a step-by-step framework for effective sport marketing, from conducting market analysis and developing a strategy, through to detailed planning and implementation. The book has a wider scope than other sport marketing textbooks, recognising that students are just as likely to have to employ their marketing skills in community sport or the not-for-profit sector as in professional sport, and therefore represents the most realistic and useful sport marketing text currently available. Now in a fully revised and updated second edition, the book has expanded coverage of digital and social media, product innovation, services and relationship marketing, and key contemporary issues such as social responsibility and sustainability. It features a much wider range of international cases and examples, covering North America, Europe, and the vibrant and rapidly developing sport markets in Asia-Pacific, the Middle East and Latin America. Every chapter includes a range of useful features to help the reader to engage with fundamental principles and applied practice, such as problem-solving exercises and review questions. Introduction to Sport Marketing is an essential textbook for any degree- level sport marketing course. Aaron C.T. Smith is a Professor in the Graduate School of Business and Law at Royal Melbourne Institute of Technology (RMIT) University, Australia. Aaron has research interests in the management of psychological, organisational and policy change in business, sport, health, religion and society, and has authored fifteen books and consulted to more than 100 clients concerning these issues. Aaron’s qualifications include two doctorates, the first in management and the second in cognitive science. Bob Stewart is director of the sport management and policy research program at Victoria University, Australia. Bob is one of Australia’s most experienced sport studies scholars, and has taught a range of sport management subjects at both undergraduate and postgraduate level, including sport finance, sport policy, sport strategy, sport organisation performance, sport economics and sport and globalisation. Bob has also written widely on the commercial evolution of sport, and his theories of hyper-commercialisation and post-modernisation in sport are used as templates for the analysis of the sport–business nexus.  Sport Management Series Series Editor: Russell Hoye, La Trobe University, Australia This Sport Management Series has been providing a range of texts for core subjects in undergraduate sport business and management courses around the world for more than 10 years. These textbooks are considered essential resources for academics, students and managers seeking an international perspective on the management of the complex world of sport. Downloaded by [University of California, San Diego] at 06:11 11 June 2017 Many millions of people around the globe are employed in sport organisations in areas as diverse as event management, broadcasting, venue management, marketing, professional sport, community and collegiate sport, and coaching as well as in allied industries such as sporting equipment manufacturing, sporting footwear and apparel, and retail. At the elite level, sport has moved from being an amateur pastime to one of the world’s most significant industries. The growth and professionalisation of sport has driven changes in the consumption and production of sport and in the management of sporting organisations at all levels. Managing sport organisations at the start of the twenty-first century involves the application of techniques and strategies evident in leading business, government and non- profit organisations. This series explains these concepts and applies them to the diverse global sport industry. To support their use by academics, each text is supported by current case studies, targeted study questions, further reading lists, links to relevant web-based resources, and supplementary online materials such as case study questions and classroom presentation aids. Also available in this series: Sport Management Principles and applications (Fourth edition) Russell Hoye, Aaron C.T. Smith, Matthew Nicholson, Bob Stewart Sport and Policy Barrie Houlihan, Chris Auld, Matthew Nicholson, Russell Hoye Sports Economics Paul Downward, Alistair Dawson, Trudo Dejonghe Sport and the Media Matthew Nicholson Sport Governance Russell Hoye, Graham Cuskelly Sport Funding and Finance (Second edition) Bob Stewart Managing People in Sport Organizations A strategic human resource management perspective (Second edition) Tracy Taylor, Alison Doherty and Peter McGraw Introduction to Sport Marketing (Second edition) Aaron C.T. Smith and Bob Stewart  Introduction to Sport Marketing Downloaded by [University of California, San Diego] at 06:11 11 June 2017 SECOND EDITION Aaron C.T. Smith and Bob Stewart  First published 2015 by Routledge 2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN and by Routledge 711 Third Avenue, New York, NY 10017 Routledge is an imprint of the Taylor & Francis Group, an informa business © 2015 A. Smith and B. Stewart The right of A. Smith and B. Stewart to be identified as the authors Downloaded by [University of California, San Diego] at 06:11 11 June 2017 of this work has been asserted in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging in Publication Data Smith, Aaron, 1972– Introduction to sport marketing/Aaron C.T. Smith and Bob Stewart. – Second edition. pages cm. – (Sport Management Series) Includes bibliographical references and index. 1. Sports – Marketing. I. Stewart, Bob, 1946– II. Title. GV716.S56 2015 796.0688 – dc23 2014029402 ISBN: 978-1-138-02295-9 (hbk) ISBN: 978-1-138-02296-6 (pbk) ISBN: 978-1-315-77676-7 (ebk) Typeset in Berling and Futura by Florence Production Limited, Stoodleigh, Devon, UK  Contents Downloaded by [University of California, San Diego] at 06:11 11 June 2017 List of figures vii List of tables ix List of abbreviations xi 1 Sport marketing introduction 1 2 Sport markets 15 3 Sport consumers 34 4 Sport marketing opportunities 55 5 Sport marketing strategy 86 6 Sport products and branding 109 7 Sport pricing 137 8 Sport distribution 160 9 Sport promotion 178 10 Sport sponsorship 199 11 Sport services 233 12 Sport digital marketing and social media 257 13 Sport marketing implementation and control 284 Appendix 305 Index 319 Downloaded by [University of California, San Diego] at 06:11 11 June 2017 This page intentionally left blank  Figures Downloaded by [University of California, San Diego] at 06:11 11 June 2017 1.1 The structure of sport marketing 9 1.2 The Sport Marketing Framework 11 2.1 Value chain of the sport industry 17 4.1 Identify sport marketing opportunities 56 4.2 External environments of a sport organisation 62 4.3 The macro external environment 62 4.4 The sport industry (micro) external environment 67 4.5 Types of competitors 69 4.6 Five forces driving sport industry competition 71 4.7 Applications of market research 77 5.1 Develop a sport marketing strategy 87 5.2 Develop sport marketing positioning 93 5.3 Categories for segmenting sport consumers 96 5.4 Sport marketing segmentation approaches 99 6.1 Plan the marketing mix 110 6.2 The sport product continuum 113 6.3 Key variables of the sport product 115 6.4 Steps of new product development 119 6.5 Product life cycle stages 125 6.6 Building a sport brand 129 7.1 The Sport Marketing Framework 139 7.2 The strategic pricing process 142 7.3 Demand for a product 145 7.4 Supply for a product 146 7.5 Market equilibrium 147 8.1 The Sport Marketing Framework 162 8.2 Direct distribution channel 164 8.3 Indirect distribution channel A 164 8.4 Indirect distribution channel B 165 9.1 The Sport Marketing Framework 179 9.2 Promotion planning process 190 9.3 The hierarchy of effects 194 10.1 The Sport Marketing Framework 201 10.2 Sponsorship affinity 208  viii Figures 10.3 Sponsorship evaluation 216 11.1 Sport services and the Sport Marketing Framework 235 11.2 Sport service quality 243 11.3 Six-step process of CRM 246 12.1 Digital sport marketing 261 12.2 Digital sport marketing process 268 12.3 Digital sport marketing technologies 269 13.1 The Sport Marketing Framework 286 13.2 Sport marketing implementation tools 287 Downloaded by [University of California, San Diego] at 06:11 11 June 2017 13.3 The control process 291  Tables Downloaded by [University of California, San Diego] at 06:11 11 June 2017 3.1 Sport fan categories 46 4.1 SWOT guidelines 60 4.2 Dimensions of a competitor analysis 70 4.3 Product-Market Expansion Grid 81 5.1 The four main categories of sport marketing objectives 90 5.2 Examples of performance measures 92 5.3 Segmentation examples 98 5.4 Positioning tactics 103 5.5 Marketing mix composition 105 6.1 Marketing strategies at each stage of the product life cycle 127 6.2 Image variables and the marketing mix 130 6.3 Five elements of sport service quality 132 6.4 Eight elements of sporting goods quality 132 6.5 Licensing sport brands 133 7.1 Summary of pricing tactics 157 8.1 Types of sport retailers 166 8.2 Distribution issues for sporting products 166 8.3 Features and characteristics of sport facilities 170 9.1 Promotional techniques 186 9.2 Promotional goals 189 10.1 Major sponsorship objectives for sponsors 205 10.2 Major sponsorship objectives for sport properties 206 10.3 Key sections of sponsorship proposal 211 10.4 Sport sponsorship rights 212 10.5 Examples of performance measures 217 10.6 Evaluation tools 218 10.7 Measuring media exposure 220 10.8 Measuring consumer awareness 221 10.9 Measuring consumer attitudes 222 10.10 Measuring sales effects 224 11.1 Five elements of sport service quality 242 11.2 Five states of satisfaction 249 12.1 Summary of digital sport marketing principles 267  x Tables 13.1 Team knowledge and skills 290 13.2 Performance measures and required information 293 13.3 Professional code of conduct for sport marketers 296 Downloaded by [University of California, San Diego] at 06:11 11 June 2017  Abbreviations Downloaded by [University of California, San Diego] at 06:11 11 June 2017 ABS Australian Bureau of Statistics AEG Anschutz Entertainment Group AMA American Marketing Association B2C business-to-consumer C2C consumer-to-consumer CEP customer experiential pathway CSF critical success factor EPL English Premier League ESPN Entertainment and Sports Programming Network FA Football Association FIA Fédération International de l’Automobile FIFA Fédération International de Football Association IOC International Olympic Committee MCFC Manchester City Football Club MLB Major League Baseball MMS multimedia messaging service NFL National Football League PWC PricewaterhouseCoopers SIT Sequential incident technique SMS short message service VE Volleyball England VNZ Volleyball New Zealand WADA World Anti-Doping Agency Downloaded by [University of California, San Diego] at 06:11 11 June 2017 This page intentionally left blank  CHAPTER 1 Sport marketing introduction Downloaded by [University of California, San Diego] at 06:11 11 June 2017 LEARNING OUTCOMES At the end of this chapter, readers should be able to: explain what the terms ‘marketing’ and ‘sport marketing’ mean describe how sport marketing can be represented by a philosophy, a process, a set of principles, and a suite of tools understand the relationship between the philosophy, processes, principles, and tools of sport marketing identify the two different ‘angles’ of sport marketing explain the difference between selling and marketing identify the components of the Sport Marketing Framework. OVERVIEW A sound knowledge of sport marketing enables sport professionals to successfully position their sport, association, league, team, players, venue, or event so that it can secure a competitive edge. This chapter begins by discussing the concept of sport marketing, before explaining how its principles and tools can be applied to the marketing of sport organisations both professional and amateur. That is, sport leagues, governing bodies, players/athletes, sporting equipment and merchandise suppliers, and anyone running sport events. It also makes the distinction between two types of sport marketing. The first type involves the marketing of sport itself, while the second ‘type’ involves the use of sport to market some other, sometimes non-sport, products. It also introduces the basic marketing concepts, and outlines the ‘Sport Marketing Framework’ that will be used to guide the structure and content of the remaining chapters in this book.  2 Sport marketing introduction WHAT IS MARKETING? The beginning of marketing Marketing as a business concept is quite young. There were a few references to the marketing of household products in the late nineteenth century, but it did not really emerge as a serious business issue until the early part of the twentieth century. It all started with the initiatives of Frederick Winslow Taylor, who later became known as the father of scientific management as the result of his now famous publication Principles of Scientific Downloaded by [University of California, San Diego] at 06:11 11 June 2017 Management in 1911. Taylor was the first industrialist to examine the production of material goods from a scientific perspective using tools such as time and motion studies. One of Taylor’s most cited studies involved the shovelling of coal, where he determined the most efficient way of undertaking physical labour and manual tasks. His maxim that the principal object of management should be to secure the maximum prosperity for the employer, coupled with the maximum prosperity for each employee, provided a catalyst for other business theorists and practitioners to move further down the production and distribution chain, and see how salesmanship and retailing could also become better organised and more efficient. W. Hoyt, in his 1913 publication, Scientific Sales Management, explained how sales management could be made more productive, and most of the ideas he outlined revolved around the ‘Taylorist’ principle of standardisation. This involved breaking down sales jobs into their component parts, and discovering ‘new tools’ to secure more customers and consequently increase sales volume. Sales management techniques could, for example, be made more effective if sales territories and travel routes were rationalised, and the salesperson’s ‘sales talk’ could be placed within a standardised framework. Advertising was also made subject to standardisation. The major philosophical shift in the idea of selling came when industrial societies became more affluent, more competitive, and more geographically spread out during the 1940s and 1950s. This forced business to develop closer relations with buyers and clients, which in turn made business realise that it was not enough to produce a quality product at a reasonable price. In fact, it was equally essential to deliver products that customers actually wanted. Henry Ford may have gotten away with producing his best-selling T-model Ford in one colour only (black) in 1908, but in modern societies this was no longer possible. The modernisation of society led to a marketing revolution that destroyed the view that production, and the accompanying salesmanship, would create its own demand. Customers, and the desire to meet their diverse and often complex needs, became the focal point of business. Today the term ‘marketing’ has universal currency, although it still tends to be used in a variety of ways. Some think of marketing as the use of advertising, publicity and personal selling techniques to make others aware of a product, or to attract more consumers to buy it. That is, it’s all about making a sale. However, marketing is now far more comprehensive than this narrow and mechanistic interpretation. Put simply, and in the most general of ways, marketing is all about satisfying the needs of customers and consumers. In the case of sport marketing, it is about meeting the needs of sport customers and sport consumers. These customers and consumers include people who play sport, but it goes much further than this. It also includes people who watch or listen to sport programmes, buy merchandise, collect memorabilia, purchase sports goods such as clothing  Sport marketing introduction 3 and shoes, and additionally ‘surf’ sport-related websites to find out the latest gossip surrounding their favourite team, player or event. Readers may have already noted that the terms ‘consumer’ and ‘customer’ have been used to describe those people who buy sports products. A sport consumer is someone who generally uses sport products or services. A sport customer is someone who pays for the use of a specific product or service. In the light of the very slight difference in meaning, it is legitimate to use the terms interchangeably to refer to those people who use and pay for sport products and services. Downloaded by [University of California, San Diego] at 06:11 11 June 2017 Chapter principle 1.1: Marketing is more than promotion, advertising, personal selling or sales gimmicks. Satisfying the needs of consumers obviously involves more than just putting together a slick advertisement or offering a temporary discount. For example, marketing involves making decisions about what different groups of consumers may need or want: the most effective way of selling a product or service, the best way of making the product or service available, the idea behind a product or service, the unique features of a product or service, and ultimately, its price. Marketing demands a process where a range of issues are considered in order to maximise the likelihood that a customer will first of all be attracted to the product, will second, make the decision to buy it, and third, be satisfied by the product or service once it has been consumed and used. These processes can then be combined in order to construct a workable definition of marketing. The marketing process Marketing is generally described as the process of planning and implementing activities that are designed to meet the needs or desires of customers. Marketing pays attention to the development of a product, its pricing, promotion and distribution. It aims to create an exchange, where the customer gives up something (usually money), for a product or service they believe is of equal or greater value. Although the term ‘product’ directly refers to tangible items, it is quite common to use it to represent the entire offering to consumers including services. Thus, it is conventional to speak of the ‘sport product’ in a global sense as a representative term for all offerings associated with sport, whether in physical form, such as sport equipment, or as a service, such as entertainment. Marketing aims to not only entice people to try products or services, but also keep them as long-term customers. Chapter principle 1.2: Marketing aims to create an exchange where the customer gives up something for a product or service. What is sport marketing? Sport marketing is a relatively new phenomenon. In the 1940s and 1950s most sport was not heavily commercialised, and was thus seen as an activity people just ‘did’. Sport was taken for granted, and the attitudes young people had about sport were usually shaped by tradition, family values, and peer-group influence. Tennis, for instance, was for the most part a middle class activity that attracted both males and females. It had no body  4 Sport marketing introduction contact, and thus was not a sport most working class males got excited about. These highly energised young people wanted a bit more rough-and-tumble in their leisure time practices, and hence football was their preferred pursuit. On the other hand tennis had a strong connection to women who wanted something athletic and moderately vigorous, but not heavily masculinised. There was, if you like, a type of natural selection operating, where people gravitated to the sport on the basis of its structure, stereotypical image, and aesthetics. No marketing or heavy sales pitch was needed to motivate people to join tennis clubs. It just happened. The proximity of clubs also played a part in driving demand. Tennis clubs were everywhere in Australia, they had a relatively strong presence in New Zealand, Downloaded by [University of California, San Diego] at 06:11 11 June 2017 but were far more dispersed in Britain and the United States. The game’s social status also had a role to play in shaping demand. In Britain and the USA it had a slightly snobbish image, and it was played mostly within the confines of private clubs. In Australia, on the other hand, tennis clubs were spread across the nation, and every small country town had its own public tennis court. It came as no surprise to find that not only was tennis one of Australia’s most popular sports, but also that Australia produced most of the world’s most successful players at this time. Today things are completely different. National governing bodies for tennis operate in a majority of nations around the world, and in every case are fighting for the hearts and minds of every young person with an interest in sports. What is more, they are competing against scores of national governing bodies for a range of other sports. Every national governing body for sport now has a modified games unit, schools support unit, a player development unit, a promotions unit, a marketing unit, a media unit, and a partnership and sponsorship unit. Each unit is expected to use appropriate marketing strategies to attract more junior players, get more parents involved as volunteers, keep everyone in the game for longer, build up the public image of the game, attract more spectators to the big events, get a lucrative sponsorship deal, and, in a best case scenario, secure a massive broadcast rights agreement. Every sporting body around the world now recognises that its ‘product’ can only grow if it is underpinned by a professionally run marketing campaign. INTERACTIVE CASE Have a look at the following two websites: www.volleyballengland.org www.volleyballnz.org.nz The first website contains information on Volleyball England (VE), the governing body for volleyball across England. The second website does the same thing for Volleyball New Zealand (VNZ), which controls the organisation and operation of volleyball for both its north island and its south island. The websites are quite different. They not only look different but they are also delivering different messages. These differences raise a few questions:  Sport marketing introduction 5 Questions 1 From a marketing perspective which homepage is the most impressive and most watchable? 2 Can you explain what makes one homepage more attractive than the other? 3 What marketing messages are you picking up from the VE website? 4 How do the VE website messages differ from messages contained in the VNZ website? 5 What is the marketing significance of the ‘kiwi volleyball’ section? Downloaded by [University of California, San Diego] at 06:11 11 June 2017 6 What could be done to improve the ‘game marketing’ strategies of each website? Points of interest Websites are a powerful marketing tool for national sporting bodies. Their role is to grow and develop the game, so it makes sense for them to make their marketing campaigns as strategic and focused as possible. However, there are many ways of going about this process. Volleyball is a case in point. The first thing to note is that volleyball comes in different shapes and sizes. There is, in fact, a range of volleyball products, with each product having a special appeal to different parts, or segments, of the population. The second thing to note is that sport consumers have a broad spread of needs and wants, and it is often impossible for a single product to meet all these needs simultaneously. MULTIDIMENSIONAL NATURE OF SPORT MARKETING The above discussion suggests that sport marketing is multidimensional. First, it involves the application of marketing concepts to sport products and services, and second, it involves the marketing of non-sport products through an association to sport. Sport marketing therefore has two key features, which we will subsequently refer to as ‘angles’. The first angle is the application of general marketing practices to sport-related products and services. The second angle is the marketing of other consumer and industrial products or services through sport. Like any form of marketing, sport marketing seeks to fulfil the needs and wants of consumers. It achieves this by providing sport services and sport-related products to consumers. However, sport marketing is unlike conventional marketing in that it also has the ability to encourage the consumption of non-sport products and services by association. It is thus important to understand that sport marketing means both the marketing of sport itself, and the use of sport as a tool to market other products and services. These two angles of sport marketing are central to understanding the full range of ways in which sport is managed from a marketing perspective. However, this is not the full  6 Sport marketing introduction story, since the previous dual-angle discussion tends to emphasise the selling part of sport marketing. This is a far too simplistic approach to the sport marketing issue. Before any transaction can occur, a lengthy strategic analysis must be performed in order to determine what sport consumers want, why they want it, and how these wants can be best delivered to them. As a result, sport marketing should also be seen as the collection of planning and implementation activities associated with the delivery of a sport product or service. Prior to any sales, a sport product or service must hold a place in the mind of a consumer. In practice, this demands that a consumer is aware of the sport product Downloaded by [University of California, San Diego] at 06:11 11 June 2017 or service and has responded to it in some – hopefully positive – way. The process of cultivating such a response is known as branding, and when a sport brand has grasped a firm place in consumers’ minds, then it is said that it is positioned. The consequence of successful branding and the acquisition of strong market positioning is not merely a single transaction. Rather, sport marketing reflects the establishment of an ongoing relationship between a sport brand and its users. With the introduction of these three further points, it is possible to devise a simple working definition of sport marketing. Chapter principle 1.3: Sport marketing is the process of planning how a sport brand is positioned and how the delivery of its products or services are to be implemented in order to establish a relationship between a sport brand and its consumers. DIFFERENT ANGLES, DIFFERENT INTENTIONS With a working definition of sport marketing specified, it is useful to return to the idea that there are two angles to sport marketing. To repeat, the first is that sport products and services can be marketed directly to the consumer. The second is that other, non- sport products and services can be marketed through the use of sport. In other words, sport marketing involves the marketing of sport and marketing through sport. For example, the marketing of sport products and services directly to sport consumers could include sporting equipment, professional competitions, sport events and local clubs. Other simple examples include team advertising, designing a publicity stunt to promote an athlete, selling season tickets, and developing licensed apparel for sale. In contrast, marketing through sport happens when a non-sport product is marketed through an association to sport. Some examples could include a professional athlete endorsing a breakfast cereal, a financial-services business sponsoring a tennis tournament, and a beer company securing exclusive rights to provide its products at a sport venue or event. Chapter principle 1.4: Sport marketing has two angles: one is the marketing of sport products and services, while the other is marketing through sport.  Sport marketing introduction 7 INTERACTIVE CASE Have a look at the Ducati website, www.ducati.com This is an example of the marketing of sport. Questions Downloaded by [University of California, San Diego] at 06:11 11 June 2017 1 How does Ducati market its product to sport consumers? 2 What sort of sport consumers do you think would be interested in Ducati products? 3 How does Ducati emphasise that its product is a sport product? Now have a look at the Shell website, www.shell.com This is an example of marketing through sports. Go to ‘Shell Motorsport’, then select ‘Shell and Ducati’. Consider the following questions: 1 How does Shell market its motorcycle oil products to sport consumers? 2 How does the Shell association with Ducati influence sport consumer perceptions about Shell motorcycle oils? 3 What promotional techniques has Shell used to market its products? Points of interest The products offered by Ducati are not limited to motorcycles. It also sells merchandise, promotes Ducati clubs, organises the ‘Ducati Week’ for motorcycle enthusiasts, and provides sports information press releases. It encourages consumers to become enthusiastic about Ducati products. The Shell website offers many ‘products’ to the sport consumer, while also advertising its range of oils, and providing bike travel guides, bike tips, downloads, and Ducati videos. It can thus be said that while Ducati motorcycles are clearly definable sport products, the success of Shell’s motorcycle oils is dependent on the sale of more Ducati motorcycles.  8 Sport marketing introduction A PHILOSOPHY OF SPORT MARKETING While thinking about what sport marketing encompasses, it is helpful to understand that it is a hierarchical concept. That is, there are levels at which sport marketing can be considered. At the broadest level, sport marketing embraces a philosophy – a set of beliefs, if you like – about how to do marketing. It is not just marketing managers or the marketing department of a sport organisation that can think in marketing terms. A marketing philosophy is about putting the needs and wants of the customer at the centre of all decisions. It is important to add that the needs of the customer must complement the Downloaded by [University of California, San Diego] at 06:11 11 June 2017 goals of the enterprise. In business, the goal is to make a profit, but in sport organisations the most important goal is usually to win or attract attention to the sport or organisation. Marketing philosophy is concerned with creating a win–win situation for both the organisation and sport consumers, but it recognises that no one will win if consumers’ needs are not met. This sport marketing philosophy threads its way through the text. Each chapter provides a sharp reminder of the importance of understanding and targeting customers’ needs, and working out the best alignment between an organisation’s goals, the sport product’s features, and the expressed needs of consumers. Chapter principle 1.5: The philosophy of sport marketing is to deliver products that best satisfy the needs of sport consumers. At a second level, sport marketing may be considered a process. It is a process because it involves a series of activities and steps. For example, sport marketing involves research, analysis, planning, development, implementation and evaluation. These processes are a common property of sport marketing and feature as the structural framework around which this text is written. Chapter principle 1.6: The process of sport marketing is the series of steps required to find opportunities, devise a strategy, plan the tactics, and implement and evaluate a sport marketing plan. At the third level, sport marketing may be summarised as a set of principles because it adopts numerous ideas and concepts that provide specific guidance to those undertaking sport marketing activities. In each chapter, a set of sport marketing principles are highlighted in order to provide clear guidance as to how the processes of sport marketing can be used in practice. Finally, at the most operational level, sport marketing principles can be imple- mented with the aid of tools, which are devices and activities used in day-to-day practice. Direct selling is a tool, and so are price discounting, targeted advertising, and press conferences. Chapter principle 1.7: Sport marketing can be described as a philosophy (a set of values that drive the marketing function), a process (a linked series of activities), a set of principles (rules and guidelines) and tools (techniques).  Sport marketing introduction 9 To summarise, this text adopts the sport marketing philosophy that consumers’ needs are met when they match features of a product or service where the ultimate goal is to cultivate an ongoing relationship between a sport brand and consumers. The remainder of this book structures this philosophy around a sequence of sport marketing processes that reflect the organisation of the chapters. Within each chapter, sport marketing principles are presented to help steer the implementation of sport marketing processes. In addition, tools are offered as specific, recommended techniques. The four levels are represented in Figure 1.1. Downloaded by [University of California, San Diego] at 06:11 11 June 2017 Chapter principle 1.8: The principles of sport marketing provide the rules and guidelines for the implementation of the Sport Marketing Framework process, while the tools of sport marketing are specific activities designed to help execute the principles. Tools Techniques to implement the principles Principles General rules and guidelines of sport marketing Process The series of steps to complete a sport marketing plan outlined in the Sport Marketing Framework Philosophy Satisfy the needs of sport consumers Cultivate the relationship between a sport brand and its consumers FIGURE 1.1 The structure of sport marketing  10 Sport marketing introduction WHAT IS TO FOLLOW? The marketing of sport may appear at first to be similar to general marketing. However, sport marketing does have differences to other forms of marketing. For example, the sport product is often highly inconsistent and unpredictable because it is not possible to predict the outcome of a sporting match or control the quality of play. In many other industries, the failure to guarantee the quality of a product would be disastrous. Another significant difference is that few products can evoke the emotional attachment and personal identification that sport commands. To be successful in sport marketing, it is necessary Downloaded by [University of California, San Diego] at 06:11 11 June 2017 to understand general marketing as well as the unique circumstances of sport. There are two aspects of sport that are pivotal to understanding its unique circum- stances: the sport market and the sport consumer. Chapter 2 introduces the special features of sport with an emphasis on the three sectors associated with sport: the govern- ment, the not-for-profit, and the corporate sectors. Chapter 3 introduces the various types of sport consumers including those who utilise sport as a consumer product and those who actively engage in sport. The chapter will also reveal the idiosyncratic motives and behaviours of sport consumers as well as the factors that influence their behaviour. Once the sport market and the sport consumer are described, it is possible to move on to the process of sport marketing. Chapter 4 provides an overview of the four stages of the sport marketing process: (1) identify sport marketing opportunities; (2) develop a sport marketing strategy; (3) plan the marketing mix; and (4) implement and control the strategy. Figure 1.2 illustrates the Sport Marketing Framework. It is helpful because it offers a structure through which the logical sequence of sport marketing is implemented. A detailed guide to stage one is contained in Chapter 4. Stage two is provided in Chapter 5. Chapter principle 1.9: The Sport Marketing Framework provides a detailed explanation of the four stages of the sport marketing process: (1) identify sport marketing opportunities; (2) develop sport marketing strategy; (3) plan the marketing mix; and (4) implement and control the strategy. Chapter 6 explores the first elements of the sport marketing mix. It introduces the key elements of the sport product, and outlines product-related marketing strategies. Chapter 7 specifies the second element in the sport marketing mix. The chapter is structured around a step-by-step pricing approach. Chapter 8 tackles the third dimension of the sport marketing mix. It highlights the basic concepts and issues of sport distribution and pays particular attention to the centrality of the sport venue, and media and broadcasting. Chapter 9 highlights the final component of the marketing mix. The chapter identifies the purpose of promotions, reviews its key elements, and describes promotions planning. Building on the promotion of sport, Chapter 10 presents the process of locating sponsors, the nature of sponsorship associations, the management and leveraging of relationships, and the evaluation process. Chapter 11 augments the sport marketing mix by examining sport services. This chapter introduces the specific aspects of services marketing and the idiosyncrasies of the sport service. It describes the techniques of quality service and customer satisfaction management as well as customer relationship marketing.  Sport marketing introduction 11 1 Identify Sport Marketing Opportunities Analyse Internal and External Environments Analyse Organisation Analyse Market and Consumers Downloaded by [University of California, San Diego] at 06:11 11 June 2017 2 Develop a Sport Marketing Strategy Develop Strategic Marketing Direction Develop Sport Marketing Strategy 3 Plan the Sport Marketing Mix Product Price Place Promotion Sponsorship Services 4 Implement and Control the Sport Marketing Strategy Implementation Strategies Control Process Sport Marketing Ethics FIGURE 1.2 The Sport Marketing Framework The world of sport marketing is changing rapidly, and the way in which the marketing mix and sponsorship are deployed is subject to constant new media platforms, technologies and opportunities. Chapter 12 focuses on the current marketing context relevant to sport. This includes the key social and digital media technologies and their implications for the way in which sport consumers engage in the marketing process.  12 Sport marketing introduction Chapter 13 explains the final stage of the Sport Marketing Framework. It introduces readers to the activities associated with setting up feedback mechanisms for determining whether the implementation process is successful. Chapter 13 also summarises the key processes and principles that are addressed in the text. It concludes with a discussion of the ethical responsibilities of sport marketers. INTERACTIVE CASE Downloaded by [University of California, San Diego] at 06:11 11 June 2017 There are numerous social media platforms available for teams, events, or players. Facebook, for example, streams information, pictures and videos of the user’s current and future activities. In addition, YouTube enables fans to upload and share videos with others about their favourite player, team or organisation. Each of these social media options is well used for building relationships with fans but not nearly as instantaneous as Twitter or Instagram. As a micro-blogging service Twitter quickly links fans to their sport with a minimum of effort. It is fast becoming commonplace for fans to follow their idols or team, and spread tweets to other fans as soon as it reaches the online community. Questions A sport marketer needs to ask a number of questions before engaging through social networks. What would a social media strategy be used for? What business benefits are to be achieved? How do social media platforms meet the organisation’s business and marketing objectives? How are social media objectives measured? Try to answer these basic questions for a sport organisation of your choice. Points of interest Twitter embraces viral trends much more readily than other social media platforms. As a no-frills social networking platform, it enables many sport organisations to interact quickly. In the US, many of the major leagues use Twitter in some way to connect consumers to their brand and to teams. It serves the purpose facing all businesses, that is, to break through the information clutter efficiently. For the sport marketer the 140 character limit of Twitter compels the ‘Tweeter’ to pitch their idea succinctly and creatively. If successful it can establish stronger links to fans and they in turn, can re-tweet the message to others. The spread of information is an economical means of connecting fans and maintaining a bond to the sport brand. One prominent source (www.statisticbrain.com) reports that there are over 640 million active registered Twitter users with over 40 per cent of them accessing Twitter via their mobile phones. The annual advertising revenue in 2013 for Twitter exceeded US$400 million, making it a viable platform for sport organisations and their associated sponsors. Twitter can bring the fan closer to their idol than ever before. The most popular athlete Twitter account belongs to Portuguese footballer, Cristiano  Sport marketing introduction 13 Ronaldo with over 25 million followers. During the 2011 Fédération International de Football Association (FIFA) Women’s World Cup, many of the players started to use Twitter to communicate with fans before, during, and well after the competition’s end, generating increased interest for individual stars, such as 2011 FIFA World Cup Golden Glove winner Hope Solo. However, in 2014 Forbes Magazine claimed that only one per cent of the Twitter community are represented by celebrities, athletes or journalists who engage in breaking or sharing news of their exploits. Downloaded by [University of California, San Diego] at 06:11 11 June 2017 PRINCIPLES SUMMARY Chapter principle 1.1: Marketing is more than promotion, advertising, personal selling