Kin 3801 Fall 2022 Mid-Term Review PDF

KIN 3801 FALL 2022 Mid-Term Review  An intangible, ephemeral, experiential, and subjective nature Strong personal and emotional Why identification Simultaneous production and Sport consumption Product Dependence on social facilitati...

KIN 3801 FALL 2022 Mid-Term Review  An intangible, ephemeral, experiential, and subjective nature Strong personal and emotional Why identification Simultaneous production and Sport consumption Product Dependence on social facilitation Is Unique Inconsistency and unpredictability Core product beyond marketers’ control Two Major Components of Sport Marketing 1. Marketing of sport – what sport orgs do 2. Marketing through sport – what sponsors and partners do Key distinction between sport consumers and sport consumption - sponsors are sport consumers but do not engage in sport consumption Marketing and Sales are closely related but separate processes. Marketing – focused on data-driven decisions to drive sales by incorporating sales tactics into the overall marketing strategy Sales – focused on service, development of interpersonal relationships, sales training, collecting and using data Retention of customers is key – Better ROI to grow relationships than establish new relationships CRM – customer relationship management – used to refer to the process or the tools used to track and compile customer contact/demo info, purchase history, complaints, concerns, or any other archivable contact with organization i. “Monday Morning Many Sport Consumers Believe Quarterback” They Are Experts ii. They also think they know how to run the business  Marketing Myopia Symptoms Lack of Belief that Confusion Ignorance of research to winning between competition support sales absolves all promotions inside and strategy other sins and marketing outside sport Failure to adapt to Poor-quality Poor sales and Arrogance and industry, research service laziness market, and consumer change  Sport is inherently pure and good. And that goodness is The Great transferred to Sport Myth those that participate in or consumer sport. The 5 P’s of the Sport Marketing Mix Product Price Place Promotion Public Relations Strategic Planning Step 1: Analyze the market and what capacity your organization has to meet needs Step 2: Develop Goals (Big Picture) and Objectives (Details steps and quantifiable targets) Step 3: Develop a Ticket Marketing, Sales, and Services Plan Step 4: Integrate the Marketing Plan into a broader, strategic resource allocation Step 5: Control and evaluated the implementation of the plan Affective Involvemen THE ATTITUDES, DEVELOPED t FEELINGS, AND EMOTIONS THAT A THROUGH ACTIVITIES LIKE CONSUMER HAS PEP RALLIES, TOWARD AN TAILGATING, OR ACTIVITY EVEN WATCHING CERTAIN ADVERTISEMENTS  The hands-on doing Behavioral Participation in the sport itself or activities like Involvemen watching, listening, and cheering, either in the venue or through media t consumption Often involves purchasing  The acquisition of information and knowledge about a sport Cognitive Involvemen Usually through means t such as media accounts, interviews with coaches and players, or discussions with other fans  Marketing Mix – the 5 P’s External Economic – macro or micro economic Factors that factors like unemployment, inflation, or the National Business cycle Influence Technological Political – social justice, boycotts, Consumer patriotism Behavior Cultural – preferences based on culture, usually defined by geography Demographic Situation  Consumer Characteristics Beliefs and Attitudes Values Internal Knowledge Motives Factors that a.Achievement and self- esteem Influence b.Craft and personal development Consumer c.Health and Fitness d.Fun and Festival – Behavior surrounding activities of a sport event like tailgating e.Eros – physical attraction f. Affiliation or community – socialization through sport consumption g.Attraction to risk or gambling h.Entertainment and escape  Decision-making Process 1.Problem Solving – Internal consumer has a need Factors that or want that can be Influence met 2.Information Search Consumer 3.Alternate Evaluation Behavior 4.Purchase – what are (con’t) the opportunity costs? 5.Post-Purchase Evaluation – customer satisfaction Syndicated Data Data that have been collected, organized, and repackaged for consumption Several sources of such data U.S. Census Demographic profiling (data provided by syndicated research companies) Audience measurement (e.g., Nielsen or Arbitron) Broadcast exposure (e.g., Joyce Julius or Repucom) Quantitative Research Surveying is the most common method to collect quantitative data: Digital (online) Intercepts Telephone Direct mail Quantitative survey instruments include Likert Scales (ex.: rate 1 to 5) or feeling thermometers (ex.: rate 1 to 100) that quantify abstract data Qualitative research uses anything but numerical values as the data unit (usually words)  These are the most popular and easiest form of surveying. Can be conducted in-house (DIY). Digital Consumers can become (Online) inundated with survey requests. Sport organizations must have Surveys email addresses of respondents. Response rates can be low. Can collect quantitative or qualitative data (or a mix of the two)  Intercepts target consumers in a specific location, such as those attending a sport venue. Tips for effective intercept data collection Intercepts Employ objective, unbiased staff in unbranded attire. Employ an adequate number of interviewers. Keep the questionnaire short. Have the staff use a sampling scheme. Performing the Right Research Many sport organizations undervalue or do not commit adequate resources to market research efforts. Identify the business objective at hand. Let the objective define methodology, never vice versa. Plan as much as possible. Have a sense of budget before moving forward. Search out a research partner, not just a supplier. Market Segmentatio n Always based on research, not stereotypes 3 Key Characteristics of a Segment Identifiability: Can the marketer identify a segment? Accessibility: Can the marketer access the segment? Responsiveness: Will the segment be responsive to  Geography (proximity, clusters, outer rims) Age State-of- Income Being Education Segmentat Gender ion Sexual orientation Marital status and family life cycle Ethnicity  Presumes that consumers may be divided by Personality traits State-of- Lifestyle characteristics such as Mind attitudes, interests, and opinions Preferences and perceptions Segmentati on (continued)  Values and lifestyle (VALS) typology Innovators State-of- Thinkers Achievers Mind Experiencers Segmentati Believers on Strivers Makers Survivors  What does the customer want from the experience or product? Product Affiliation Benefits Achievement Status Segmentati Health on Fitness Product Usage Segmentation Sport marketers need to understand that their consumers can be segmented based on how much they use the product. Common divisions include heavy, medium, and light users. 80-20 rule: 80 percent of business comes from 20 percent of the customers. Repeat business is the key to success (e.g., season-ticket holder versus single- game attendee). (continued) Product Usage Segmentation (continued) Not all consumers consume at the same rate. Not all products are consumed the same. The level of consumption varies from sport to sport, so the relative importance of usage rates (in terms of total attendance or participation) differs from sport to sport. The levels of consumption are likely to vary from age group to age group. (continued)  The sport marketer must maintain Product opportunities for different levels of Usage Mediu consumption: Segmentati Heavy Light m on An increase in sales volume is much more likely to be generated by increased frequency or a higher consumption rate among existing users than it is from an increase in sales to first-time users. The Sport Product  Game form (rules or techniques) The Sport Players - celebrity Fan behavior – contributes to event Product: atmosphere Core Equipment and apparel – outside trends Elements Venue Personnel, process, and physical facilities  Differentiation Product Sport Product development Strategy Product position Brands and branding Major Elements of What are the 9 major elements of the a Fan’s Event fan’s event experience? Experience – a.Select and purchase tickets How fans b.Park move c.Enter arena or stadium (Ingress) through an d.Find seat event e.Use the bathroom f.Purchase food g.Purchase souvenir h.Watch the game i.Leave the arena or stadium (Egress)  Defined as “a set of assets and liabilities linked to a brand, its name and symbol, that add to or subtract from the value provided by a product or service to a firm and/or that firm’s customers.” When a sport organization is able to achieve a strong image in the consumer’s mind, it realizes brand equity. Brand Name recognition or awareness Equity Strong mental or emotional associations Perceived brand quality Strong customer loyalty Positive Brand Equity must be cultivated and can result in additional revenue. Negative Brand Equity is almost impossible to correct  The brand name and marks associated with a sport organization (such as a logo) serve to provide a point of differentiation from the other sport products that exist in the marketplace. The brand name, logos, marks, and colors of a sport organization What Is serve as a starting point in the brand management process. Branding? Sport brands trigger feelings and attitudes toward a particular sport product that have been developed through sport consumption.  Brand associations are anything linked in memory to a brand. While winning can assist in developing Brand positive brand associations among consumers, marketers should focus their Associatio energies on nurturing brand associations in advance of team performance. Sources of brand associations with teams: ns Logo, marks, nickname, and mascot Owner Players Head coaches Rivalries Entertainment package surrounding the game or event Pricing the only one of the 5 P’s that directly contributes to revenue generation Latitude of price acceptance – the range of prices a consumer is willing to pay for a product Jersey example, pg. 80 in your textbook Demand-based pricing strategies (VTP and DTP) have increased ticket revenues 5-30% for teams implementing these strategies. Fans perceive tickets on the primary market as more fairly priced despite many secondary-market vendors engaging in strategic initiatives to gain more legitimacy (Shapiro et al 2016) FCI: fan cost index – how much it costs for a family of four to attend a game Per game ticket prices roughly correlate to how many games there are in a season (More games  cheaper tickets) DTP and VTP  Variable Ticket Pricing (VTP) - changes in price based on purchase time, purchase channel, day of the game, date of the game, opponent or any other external environmental factor o Can be as simple as a mark-up on tickets purchased day of the game o Can be used in tandem with dynamic ticket pricing where VTP elements assist in define DTP baselines  Dynamic Ticket Pricing (DTP) – based on market demand, controlled by the organization o Akin to dynamic ticket pricing used by hotels and airlines o Generally requires the use of an algorithm where the price fluctuation is automatically controlled by the box office software o Could you use DTP manually? Sure, but the amount of research and man power it would take from the Ticket Operations department may off-set any financial gains.