SS2104 Sport Marketing & Sponsorship AY 2024/2025 PDF

Sport Marketing & Sponsorship (SS2104) AY 2024/2025 – S1 Consumer Understanding, Strategy, Market Segmentation  Learning Objectives Understand the role of consumer involvement Explore the socialisation process in sports Understand th...

Sport Marketing & Sponsorship (SS2104) AY 2024/2025 – S1 Consumer Understanding, Strategy, Market Segmentation  Learning Objectives Understand the role of consumer involvement Explore the socialisation process in sports Understand the decision-making process Apply the steps of the strategic marketing process Conduct market segmentation and positioning  The Consumer Before any marketing strategy can be applied, you need to understand the consumer The cornerstone of marketing  Borrowing from Sociology.. Concepts 1. Involvement 2. Socialisation Agents 3. Decision Making  Consumer Involvement Level of interest, attention, and personal relevance something is to a consumer Consumers have varying levels of involvement (high vs low) – Depending on situation and/or product – Marketers need to be aware of context/situation when sending marketing messages  Consumer Involvement 3 types of involvement: Affective Behavioural Cognitive  Affective Involvement Attitudes, feelings, emotions toward something – Brand, Product, activity Consumers non-tangible appeal to aspects of sports products  Behavioural Involvement Actions consumers take concerning the sport product The act of consuming sports products – participating, spectating, purchasing  Cognitive Involvement Consumer involvement based on knowledge and information around a sport product Displayed through consumption of sports content – Stats, podcasts  Socialisation in Sport The ways individuals learn and develop behaviors, attitudes, and values related to sports. The process helps shape an individual’s identity as a fan or participant.  Agents of Socialisation Influencers in Socialisation Key Agents Include: Family: Primary influence in early development. Peers: Influence through shared experiences. Media: Broadens exposure to different sports. Culture: Embeds sports within societal norms and values.  Decision Making Difficult to establish standard process of decision-making – Many socalisation agents – Many degrees of involvement Decision making tools can facilitate this process – Good for marketers to adopt  Decision Making Process Contains 5 steps Post- Needs Information Evaluation of Purchase Purchase Recognition Search Alternatives Decision Evaluation  Needs Recognition Consumer identifies a gap between current situation and desired state – Triggers need for a sport product 2 Types of Needs: – Functional Needs (“I need a shoe to run”) – Emotional Needs (“I need to be part of a community”)  Information Search Consumers gather information about different products and services Sources can be internal and/or external – Past memories (internal), online search (external) Influenced by involvement levels  Evaluation of Alternatives Consumer compares different options to satisfy need Considers attributes + benefits of product – In comparison with other products  Purchase Decision Consumer decides which product to purchase – What shoe to buy – What sport to participate in Can be planned or impulsive – Depending on extent of previous steps  Post-Purchase Behavior Consumer reflects on purchase decision – If Positive - repeat purchases, brand loyalty – If Negative – returns, complaints, poor reviews Marketing efforts can reinforce a positive post- purchase experience Post Purchase Behaviour - Examples Theory: Kotler’s Black Box Model Depicts the relationship between external factors (stimuli in the environment), internal factors (the buyer's mind - referred to as the “black box”), and the buyer's responses (purchase or no purchase). Focuses on concept that consumers have individual beliefs – Any external factors (marketing plan etc) comes into contact with these internal factors and leads to an outcome (purchase, non-purchase)  Marketing Strategy Strategy: Creation of a unique value proposition, involving a different set of activities A good strategy involves: – Clear understanding of competitive environment – Commitment to following plan – Implementation of the plan Strategic Marketing Process (5 steps) Develop Vision, Develop Develop a Integrate the Control and Position, Strategic Goals marketing plan plan into Evaluate Purpose and Objectives broader org Implementation strategy of Plan  Step 1: Mission, Vision, Purpose Vision: Long-term aspiration of the organization, guiding future direction. Position: How the organization is perceived in the market relative to competitors. Purpose: The fundamental reason for the organization’s existence, often reflected in the mission statement.  Step 1: Mission, Vision, Purpose Vision has to align with organization strengths and market opportunities Differentiation from competitors central to purpose Mission and Vision Statements Company Mission Vision To be the best sports brand in the Through sport, we have the power to world change lives We want to be the most exciting global We inspire with outstanding football club and THE European experiences – and with the essence of basketball hub – sustainably what makes us successful succeeding in the game and in business, together with our fans To develop a vibrant football culture to enhance national life, strengthen social To excel in ASEAN and compete at the harmony and evoke the Singapore Asian stage spirit. Step 2: Develop Strategic Goals and Objectives Strategic Goals: Broad aims that provide direction for the organisation Objectives: Specific, measurable actions that achieve strategic goal E.g. Sports team goal: “Do well”, objective = top 3 finish  Step 2: Develop Strategic Goals and Objectives Objectives should be S.M.A.R.T. (Specific, Measurable, Achievable, Relevant, Time- bound). Align objectives with Step 1 of process Regularly review and adjust objectives to respond to changes in the market. Step 3: Develop a Marketing Mix Plan Strategies to promote + sell products Using the broad components of the previous steps to develop a plan – 4 P’s of Marketing  Core Areas of Marketing Mix Plan Market information systems: – Where to get data + what to do with them Market Segmentation Product Positioning  Important Framework: Consumer Escalator Model Used in sports marketing to illustrate progression of consumer engagement Marketing efforts should move consumers up escalator – Increase consumption frequency  Consumer Escalator Model Nonconsumers: Nonaware: Unaware of the product or sport. Misinformed: Has incorrect perceptions or information. Aware: Aware but not interested. Indirect Consumers (Media Consumers): Engage with the sport/product through indirect means (media) Consumers: Light Users: Engage occasionally, low frequency. Medium Users: Moderate engagement, higher frequency. Heavy Users: High engagement, regular consumption.  Consumer Escalator Model Primary Goal: Move consumers up escalator From lower levels to higher levels of engagement Easier + more effective to move existing consumers up escalator – Versus bringing new consumers into the escalator Due to: – Existing awareness – Lower acquisition costs – Incremental growth: increasing engagement leads to more sustainable growth  Step 4: Integrate Plan into broader Org strategy Integration: Ensure that the marketing plan part of the organization’s overall strategy. – Not isolated Resource Allocation: Efficiently distribute resources (budget, personnel, time) Requires communication and joint planning with other departments – Finance – Operations – Human Resources  Step 5: Control and Evaluate Implementation of the Plan Control: Establish benchmarks and key performance indicators (KPIs) to monitor progress. Evaluation: Regularly assess the effectiveness of the marketing strategies and make necessary adjustments.  Step 5: Control and Evaluate Implementation of the Plan Control: Establish benchmarks and key performance indicators (KPIs) to monitor progress. Evaluation: Regularly assess the effectiveness of the marketing strategies and make necessary adjustments. Usage of data/feedback from evaluation phase to refine and improve marketing strategies Stay agile and responsive to changes in the market  Strategic Market Analysis 1. SWOT Analysis 2. Segmenting-Targeting-Positioning 3. Unique Selling Point (USP)  SWOT Analysis A strategic planning and management technique used to identify an organisation’s position in the market Focuses the sport organization's attention to internal and external factors  SWOT Analysis Internal: Focuses on organisation strengths and weaknesses Strength: Internal attributes and resources that organisation currently has – E.g. brand reputation, strong financial backing/performance, loyal customers Weaknesses: Internal limitations and challenges – E.g. Poor market share, low manpower, financial constraints  SWOT Analysis External: Focuses on factors outside the organisations sphere of influence Opportunities: External factors that organisation can use to its advantage – Government campaigns, positive economic forces Threats: External challenges that could cause trouble for organisation – New entrants into market, government regulation changes, changes in trends Example: Image from boardmix.com  Segmenting-Targeting- Positioning (STP) A process that: 1. Identifies market Segments 2. Targets the most attractive segments 3. Positions the product / service to best counter the competition and attract consumers.  Market Segmentation How many times do you segment your target market? Demographics Psychographic Age, income, gender Lifestyle, personality Easiest to segment Product Usage Geographic Usage patterns, desired outcomes Space related segmentation e.g. High frequency users Seasons, Weather  Considerations in Segmentation Viability and growth potential Sufficient demand / Sustained demand Level of competition (of consumer) Is the product designed for competitive or leisure sport? Could influence marketing efforts Potential conflicting nature of marketing messages sent Resources and objectives of organisation Diversification in sports organisations Wide range of product lines Diversification vs Dilution?  Targeting Types of targeting: – Undifferentiated Target entire market with singular offer – Differentiated Targeting several segments with different offers – Concentrated Focusing on a single niche Examples of Targeting  Positioning Creating a unique and compelling image in the minds of the target audience. Positioning based on – Product attributes – Benefits – Competition.  Unique Selling Point (USP) Assists organisation in identifying special attributes – Separate themselves from competition Stems from identification of strengths Must be amplified after identification  Conclusion Consumer Involvement: Levels of interest and engagement with sports products. Decision-Making Process: from needs recognition to post-purchase evaluation Strategic Marketing Process: Vision, goals, objectives, and marketing plan integration. Strategic marketing analysis tools: (SWOT, STP, USP)