Sport Marketing Exam Review Essay
Define the terms new media and new media marketing Media= Communication with the general public by organizations. Ex Broadcasters, print newspapers, magazines and radio stations. New Media= Communications that are generated by electronic means or through recent technological platforms. Not all forms of new technology are new media Only the technology that are capable of transmitting information to the general public are considered new media Invoice’s five standards of New Media 1. New media is represented numerically, with ones and zeros 2.
New media is modular, that is, it has individual elements that maintain their independence even when they are combined into larger objects 3. The processes involved in creating, manipulating, and assessing the media are able to be automated 4. New media is variable, or able to exist in nearly infinite versions 5. New media is increasingly able to translate into differing file formats The information can even be transmitted between technological devices to another, ex. Mobile phone to computer. 2. Define the advantages and disadvantages of new media marketing Advantages Disadvantages
New media is represented numerically, and it is modular, automated, variable and transferable to differing file formats and able to be customized. Data is accessible in real time New
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Describe how new media marketing relates to the sport marketing framework. Sport Marketing Exam Review By enjoyment and sell them extra products and services that are associated with sport. New media technology provides sport marketers with innovative ways of communicating with consumers. The approaches are far more rapid, responsive and interactive than other marketing strategies New media platforms are fast and direct and inexpensive compared to traditional techniques of sport marketing New media enables sport marketing organizations to develop messages that are personalized to key target audiences.
New media marketing is targeted and personalized interaction, which is eased on the principles of customization, modularity, sticky branding, networked communication and permission. EX Dallas Cowboys, Look it up to provide examples 4. Identify the 6 key principles of new media marketing 1 . Customization= Personalized products and targeted communication 2. Indefatigableness/variable. Responsive/scalable. High velocity. Smooth transfer 3. Sticky Branding-”compelling ideas liked to brand image 4. Networked Communication= Consumer-to-consumer interaction 5. Permission-”consumer consent. Cut through clutter.
Targeted exposure 6. Inclusively’= Cult Branding. Identity. Tribal belonging. Customization New media technology gives marketers specific information about the behaviors and preferences of their consumers. Marketing can become more specialized and nuanced towards the personal needs and choices of customers. Importance of developing customer relationships More targeted communication to the consumers Example: Nikkei allows customers to design their own customized footwear. This enables Nikkei to cater to consumers’ demands for individualized products that give them a sense of personal identity and control.
Modularity Communication can be fast, responsive, simple and flexible Important for communication to be fast so that the larger number of consumers will come into contact with it before it dies out. Responses easier to demand and ease of transfer Sticky Branding A branding image that sticks with the consumer Social networking sites are becoming increasingly useful for sport marketers. These interactively with sport organizations, players and other fans. Networked Communication The use of media to facilitate communication between consumers. Getting consumers to talk to each other.
Instead of marketers telling consumers about certain products, it is more productive get consumers to talk to each other about the products. New media platforms allow an interactive approach where marketers can organism consumers to communicate with each other. New media sports marketing trends are to be focused on marketing activities that bring consumers together, through online communities, blobs, bedposts and message boards. New media is a hub of consumer interaction and commercial activity. Provides consumers with personalized experience.
Encourages word of mouth. Is consumer to consumer marketing more effective than business to consumer marketing? Example: Viral Marketing is a part of networked communication and by using new media technologies Viral marketing is a way of any marketing message passing on from a consumer to another, like a virus. Encourages rapid communication. It is a systematic approach that aims to encourage people to share a marketing message with their personal contact network. Inclusively Sport consumers are motivated by a psychological need to feel as if they ‘belong to a group.
New media sport marketing can be conducted so that consumers feel included in virtual groups. Introduction of Online gaming for Oxbow and Plantation. Refers to the use of new media marketing to fulfill the need to ‘belong, which in turn fosters the development of identity. New media marketing can be conducted in such a way that sport consumers feel ‘included’ in virtual groups Permission Interruption marketing is such things like Internet banner advertising, where the banner appears to the consumer’s eyes without their permission and can lead to resistance towards those advertisements.
The communication of information is one way; from the marketer to the consumer. In contrast to interruption marketing, new media sports marketing is based on the idea of ‘permission. The use of new media to communicate with consumers who have given their permission to receive customized messages, usually via email, mobile and PDA devices. Usually consumers will sign up to receive these messages. Example is blue Jacking. Blue Jacking uses Bluetooth to connect to nearby consumers without their permission.
This does backfire against organizations, as some consumers will get annoyed. When using new media technology to market directly to consumers there is a trade-off between reaching consumers and respecting Summary: First sport organizations must make contact with consumers using impelling ideas to capture their attention and the features of modularity to ensure the contact is fast, flexible and smooth. Once contacted, consumers may respond to the customized offerings and engage in conversation via the networked and interactive capabilities of the platform. . Describe the 6-step process of engaging consumers with new media marketing 1. Community 2. Converts 3. Contact 4. Conversation 5. Connection 6. Content 6. Outline the five broad categories of new media technologies 1. Internet-driven platforms 2. Mobile communications 3. Upgraded conventional technologies 4. Hardware . Software Internet-driven platforms Blobs and social networking sites, email, web video, bedposts, websites, pop-ups, virtual worlds. The use of Youth, for ex: The NIL provides content for the Youth community.
Providing daily highlights and off ice footage. The NFG has negotiated revenue sharing partnerships with Youth, which allows them to show advertisements in conjunction with the video content Mobile Communications Bluetooth, mobile phones, Pads, wireless, SMS, multimedia messaging service. Can be used to distribute information using either a push or pull strategy Push= Sending unsolicited communications to consumers, through SMS for ex. Pull-”providing free information, such as game updates and news headlines that the customer has given permission to receive.
Mobile phone coupons means that sporting leagues, events and retailers can offer exclusive promotions to consumers who have given their permission to receive regular deals. SMS Success factors Content should be short and eye catching Timing should minimize risk of annoying consumers Customization means the more targeted to the consumers the message is, the more permission, which minimizes spam problem for consumers. Mobile communications re increasingly capable of delivering personalized content and even streaming broadcasts.
Ex: BBC sport now provide their website content via all mobile technologies which allows consumers to access the stories about their favorite sports any time and anywhere. Upgraded conventional technologies Technological advances that have been made with devices such as televisions, radios and video recorders. Digital television broadcasts Tivoli to record live programming Increased interactivity and customization Ex, BBC used an upgraded TV platform to provide interactive Olympic coverage during the Athens 2004 Olympic games.
More than 6 million digital TV viewers in the I-J tuned into BBC by using the ‘red button’ on their remote. This allowed them to access an interactive portal. Provided over 2000 hours of extra and exclusive television footage. Digital data can enhance the sport watching experience by: Offers increased flexibility so that events may be watched over the Internet, as the Internet increases in productivity people will be able to watch a sporting event on the run through their favorite device.
The viewer can select certain camera angles or replays when they want. Can be employed to create new statistics associated with the event. Enable real time interaction such as gaming. Hardware New technology has already produced prototype pocket PC’s with processing power to access and replay almost every sporting moment ever broadcasted. A partnership between Apple pod and Nikkei enable communication between pod Anna and Nikkei running shoes.
The feature enable workout based voice feedback, which provides progress reports on time, distance and pace. Software Enables the physical equipment to operate. Virtual reality software is a way that promises to dramatically change the way spectators view sport in the future. Way for sport enterprises to improve their venues, particularly if they are a genuinely international property Also pivotal in the Nikkei + pod sport kit. There is software that provides a network communication with other runners worldwide.
Even challenge other runners to compete in virtual races Future possibilities and dangers best bet for finding a stable niche. Development of state of the art cameras. With athletes wearing lenses with these cameras on them, people can see the player angle from their TV and also have a choice of angles and replays. Dangers: Sport organizations must have the right tools to ensure that their relationships they ultimate with fans bridge the gap between commerce and community. Careful management of customer input into products and services.
Section 3: Sport Marketing Opportunities 1 . Identify the key marketing activities required to identify sport marketing opportunities The sport-marketing framework Identify Sport Marketing opportunities Analysis of conditions in the external marketplace Competitors activities Technology Legal restrictions Economic climate Analysis of conditions in the internal marketplace Strengths Weaknesses SOOT analysts Competitor analysis Analysis of sport organization’s unique position
Mission, vision, objectives, performance measures and stakeholders Analysis of the market and its consumers via market research Develop a sport marketing strategy Making key decisions about the strategic direction of the sport marketing program Establish the strategy within boundaries of both objectives and performance measures. Determining the specific tactics How it will distinguish the sport product or service in the market Who it will be targeted towards What marketing mix decisions will be employed to implement the strategy Plan the sport marketing mix Putting plan into action 2. Conduct a macro and micro environmental analysis
Macro environmental analysis Political environment Government influence can be relevant in attracting major events to cities. Economic environment The big picture Describe the economy on a national level Provide a broad picture of economic issues that might affect a sport organization. When consumer spending is higher, consumers are more likely to spend money on sport In recession they are not likely to spend money on sport Microeconomic Detailed picture at the organizational or consumer level Consumer income levels. Influence the way they spend money on a sport product or service. Spend money from their discretionary income.
Left over money after paying out all of life’s necessities Legal environment Legislation passed by government Regulations set by sport associations and national and international sporting bodies. Governments set laws which regulate how and when broadcaster can cover sport events. Example, pm kick-off on Saturdays The International Olympic committee sets rules for how the Olympic competitions should be run. Anti-doping agency sets regulations regarding the types of substances that athletes can take. Also the punishments if those rules are broken Technological environment Email has revolutionized communication.
Medical technology has improved sport medicine techniques. Web streaming has made sport accessible from almost everywhere in the world. Social environment Culture of a region and social trends and demographics. Different cultures and cultural trends can have an influence on whether sport is a valued activity. Example; Cricket is popular in England, Australia, New Zealand, India, South Africa and the West Indies. It is however common for sport consumers from other countries to report that the game is too slow and boring. Physical environment Unique geographical features of a region, such as the weather and built facilities available.
Climate and certain accessibility such as snow for snow sports and water for water sports in some countries. Golf courses need water sources to be maintained. Micro External Environment Sport industry environment is made up of: Public Media Finance Staff/members Commercial Government and leagues Competitive sport sector is the sporting shoe sector. Large number of manufactures and sellers trying to attract the same consumers to competition for several reasons Competitors may have weaknesses to be exploited. Competitors may have strengths that could represent a threat, or provide helpful lessons. Competition changes over time.
Direct competition Competition between sellers who produce similar products or services Aids and Nikkei Similar enough to substitute a product between companies Secondary competition Products meeting similar needs in a different way Going to a basketball game instead of rugby match Consumer need is entertainment rather than the experience of watching a particular sport Indirect competition Sellers who produce different products and services that either satisfy similar consumer need or encourage consumers to seek the satisfaction of different needs. Other forms of entertainment other than sport such as movies, music concerts, strangest.
Alternative ways consumers can spend their leisure time 3. Describe the process and importance of a competitor analysis Critical to assess competitor’s strategies, strengths, vulnerabilities and resources. Dimensions of this are Geographic scope Mission and vision Objectives Market share and position Strategy Resources Target market Marketing mix approach Five forces analysis that drives competition in the sport industry. Help to identify future opportunities and threats. Intensity of rivalry among industry competitors The greater rivalry comes from organizations offering similar products or services.
Rivalry between Nikkei and Aids. College football teams English football teams. Competition for media exposure, corporate sponsorship, players, and coaches/ managers. The threat of new entrants Organization that is faced with the possibility that at any time new competitors can enter their industry sector and offer substitute products. New entrants such as new sports facilities, leisure and recreation centers, events, sport apparel companies and new equipment manufactures. The greater the threat of new entrants, the higher the rivalry among industry competitors. The bargaining power of buyers
Include individuals, groups and organizations. The influence that buyers have to exert pressure on suppliers in order to reduce sport games When the bargaining power is low for media broadcasters, they may have to pay lots of money to secure their rights to broadcast an event. When the bargaining power is high, the costs of rights will be lower. The greater the bargaining power of buyers, the higher the rivalry among industry competitors. The bargaining power of suppliers When suppliers of raw materials threaten to raise the prices or withdraw their products or services, they are attempting to improve their bargaining power.
Relate to sport players, who can be thought of as suppliers of talent. Threat of strikes from pro sport players in hockey in 2004. Cancelled the season Analyses the organization Understand the purpose, aims and goals of an organization in addition to the needs of organizations stakeholders. Four tools to analyses the organization Mission statement Identifies the purpose of an organization Why an organization was set up What services and products it provides Whom they are provided Should be a single, short statement Declaration of the intentions of the organization Vision statement Vision for the future, 3-5 years.
Medium to long term goals What it wants to achieve in a given time Organizational objectives Stepping-stones along the way to the destination of goals. Targets that need to be reached to make the vision a reality Achievable stepping stones Example if a club finishes last, they cannot expect to finish top 3 the next year. Objectives for sport clubs can be, on-field performance, youth development, finances, facilities, marketing and human resources.
The objectives of an organization help sport marketers to know where exactly to target their efforts so that they align with the broader goals of the organization. Stakeholder analysis Every single person that has an interest in the organization Who is the sport marketer going to try and make happy? Cannot make every stakeholder happy Consider the bargaining power of each stakeholder in his or her affiliation with the sport organization must therefore be completed before a strategic direction can be set.
Marketing strategy can be influenced by the beliefs, values, and expectations of powerful stakeholders. 4. Identify some of the introductory issues associated with market research, including its application and importance to identifying marketing opportunities. Market research is the process of learning about the marketplace and what consumers want, assessing their desires and expectations, determining how to entice a marketing plan as expected. Five applications of market research Determine specific information about the market Who are customers and what they want?
Marketing mix 4 as Two different types of market research Quantitative Numerical information Gathered from a diverse and large sample of people Survey or questionnaire Can be sample questions that can give brief responses Should sue this method if a sport organization already knows something about its customers Example; if a sport organization already knows that there are four main reasons why their customers employ their services Qualitative Non-numerical information Words from an interviewer In depth Gathered from narrow and relatively small group consumers.
Section 3. 2 Sport Marketing Strategies The second stage of the sport marketing framework, develop a sport marketing strategy Develop a strategic marketing direction Marketing Objectives Aim or goal that a sport organization may realistically achieve as the result of its marketing strategy. Clear direction to follow Importance of marketing objectives cannot be underestimated.
Marketing activities are carried with pre determined goals Four main categories of sport marketing objectives: Participation Increase number of members in a club Increase number of consumers using a service Expand volunteers involved Performance Increase market share Improve customer satisfaction and service quality Increase range of products or services on offer to consumers Promotion Promote a health and well being message Improve the public image of the organization Increase customer awareness of the product/service Profit Increase product or service sales Increase profit margins Acquire new sponsorships or grants