Description
Position the organization or product relative to the competition within the marketplace
Strategic Sport
Marketing
Management
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
Contingency Framework for
Strategic Sport Marketing
Internal
contingencies
Organizational
vision
Organizational
mission
Organizational
goals and
objectives
Organizational
strategies
Organizational
culture
External
contingencies
Competition—
direct; substitute;
indirect
Legal and political
Technology
Cultural and social
trends
Physical
environment
Demographics
Economy
Strategic Sports Marketing Process
Planning
Market research
Market segmentation, target and
niche markets, and positioning (and
repositioning)
Marketing mix—product; price;
place; promotions
http://www.cstv.com/auto_pdf/p_hotos/s_chools/kan/genrel/a
uto_pdf/06-strategic-plan
Strategic Sports Marketing Process
Implementing
Communication
Staffing and skills
Coordination
Budgeting—resource acquisition
and allocation
Creativity
Motivating and rewarding
Marketing information systems and
information management
Strategic Sports Marketing Process
Controlling
Measuring results
Financial and profitability analysis
Customer satisfaction
Marketing audit
Making Marketing Resource
Allocations
Rationality—linked with the
probability of gaining the highest
returns at the least cost; is the highest
rated by marketers, especially when
resources are limited.
Distributive justice—fairness will be
used as basis.
Power—the external and internal
influence of others will impact
decisions (often based on fans and
their support for traditional men’s
programs and men’s revenue-
producing teams).
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.
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 men’s sports over
women’s sports.
Marketers will seek the highest
returns regardless of the sport’s
gender composition.
Key Findings Implications
Marketing Resource Allocations
Men’s sports receive more monetary and non-
monetary marketing resources than do women’s
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
men’s sports that have been successful in the past.
Sport marketers use fairness to justify providing
more resources to men’s or women’s sports that
have been successful in the past.
When resources are abundant, sport marketers use
distributive justice to justify providing more
resources to women’s sports.
Sport marketers use power to justify giving more
resources to men’s sports.
Sport marketers are less likely to invest marketing
resources in programs that have not delivered in the
past.
Assume you are the Marketing Director of a NCAA Division I institution which
sponsors 10 men’s teams (football; basketball; baseball; golf; tennis; cross
country; indoor track; outdoor track; swimming; wrestling) and 11 women’s
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 men’s 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 men’s basketball with the goal to sell out the
stadium and the arena for home games.
Baseball and women’s 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 men’s and women’s golf, men’s and women’s
tennis, men’s and women’s cross country, indoor track, and outdoor track,
men’s and women’s 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 women’s 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.
Competitive Forces and Profit
Threat of new competitors—the 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
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 team’s
logo or mark (double branding)
Used satin, instead of cheaper fabrics
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
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
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%.
doc_634280209.ppt
Position the organization or product relative to the competition within the marketplace
Strategic Sport
Marketing
Management
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
Contingency Framework for
Strategic Sport Marketing
Internal
contingencies
Organizational
vision
Organizational
mission
Organizational
goals and
objectives
Organizational
strategies
Organizational
culture
External
contingencies
Competition—
direct; substitute;
indirect
Legal and political
Technology
Cultural and social
trends
Physical
environment
Demographics
Economy
Strategic Sports Marketing Process
Planning
Market research
Market segmentation, target and
niche markets, and positioning (and
repositioning)
Marketing mix—product; price;
place; promotions
http://www.cstv.com/auto_pdf/p_hotos/s_chools/kan/genrel/a
uto_pdf/06-strategic-plan
Strategic Sports Marketing Process
Implementing
Communication
Staffing and skills
Coordination
Budgeting—resource acquisition
and allocation
Creativity
Motivating and rewarding
Marketing information systems and
information management
Strategic Sports Marketing Process
Controlling
Measuring results
Financial and profitability analysis
Customer satisfaction
Marketing audit
Making Marketing Resource
Allocations
Rationality—linked with the
probability of gaining the highest
returns at the least cost; is the highest
rated by marketers, especially when
resources are limited.
Distributive justice—fairness will be
used as basis.
Power—the external and internal
influence of others will impact
decisions (often based on fans and
their support for traditional men’s
programs and men’s revenue-
producing teams).
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.
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 men’s sports over
women’s sports.
Marketers will seek the highest
returns regardless of the sport’s
gender composition.
Key Findings Implications
Marketing Resource Allocations
Men’s sports receive more monetary and non-
monetary marketing resources than do women’s
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
men’s sports that have been successful in the past.
Sport marketers use fairness to justify providing
more resources to men’s or women’s sports that
have been successful in the past.
When resources are abundant, sport marketers use
distributive justice to justify providing more
resources to women’s sports.
Sport marketers use power to justify giving more
resources to men’s sports.
Sport marketers are less likely to invest marketing
resources in programs that have not delivered in the
past.
Assume you are the Marketing Director of a NCAA Division I institution which
sponsors 10 men’s teams (football; basketball; baseball; golf; tennis; cross
country; indoor track; outdoor track; swimming; wrestling) and 11 women’s
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 men’s 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 men’s basketball with the goal to sell out the
stadium and the arena for home games.
Baseball and women’s 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 men’s and women’s golf, men’s and women’s
tennis, men’s and women’s cross country, indoor track, and outdoor track,
men’s and women’s 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 women’s 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.
Competitive Forces and Profit
Threat of new competitors—the 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
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 team’s
logo or mark (double branding)
Used satin, instead of cheaper fabrics
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
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
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%.
doc_634280209.ppt