The Sport Marketing Management Model: Theoretical Article

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SEA - Practical Application of Science

Volume III, Issue 2 (8) / 2015

Alexandru Lucian MIHAI


The Doctoral School of The Bucharest University of Economic Studies, Romania

Theoretical
THE SPORT MARKETING article
MANAGEMENT MODEL

Keywords
Marketing management strategies,
Marketing mix,
Sport company,
Sport marketing,
Sport marketing research and analysis

JEL Classification
M31

Abstract

Sport marketing involves marketing fundamentals applied in one industry, the sport business industry.
The development of sport marketing fundamentals is therefore based on basic marketing principles. The practice and
activities of sport marketing are also based on basic marketing activities, but are modified and adapted to the sport
business industry. Therefore, sport marketing is based on its primary and parent discipline - marketing.
Sport marketing is one of the most important functions of a sport business. This is because the sport
marketing activities will define the business. The growth of the sport industry is phenomenal and shows no signs of
slowing.
Also, sport marketing is a process. A process is a continuous cycle. Therefore, marketing is a function that
never ends. The sport marketing management model is an illustration of the elements and process of sport marketing.
It should serve as a guide for managing the companys marketing functions. The model illustrates the elements of
marketing, the succession of elements and functions, the process of managing, and the interdependence of the
elements
This paper presents an overview of the model, sport marketing management, each element and the process.

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opportunities for the college student, its objectives


Introduction will be detailed concerning specifically what the
The marketing of sport may appear at first to athletic department wants to achieve within a given
be similar to general marketing. However, sport period of time.
marketing does have differences to other forms of All individuals involved with a sport
marketing. For example, the sport product is often organization must be involved in the process of
highly inconsistent and unpredictable because it is writing mission and vision statements, as well as
not possible to predict the outcome of a sporting developing goals and objectives. This is to ensure
match or control the quality of play. In many other that all members of the sport organization will be
industries, the failure to guarantee the quality of a committed to carrying out the plan acting in
product would be disastrous. Another significant accordance with the organizational philosophy
difference is that few products can evoke the (Schwarz, Hunter and LaFleur, 2013).
emotional attachment and personal identification Privately owned sport facilities like
that sport commands. To be successful in sport gymnasiums and recreation centers will have profit
marketing, it is necessary to understand general as their main objective. This would also be the
marketing as well as the unique circumstances of main aim for sport equipment and apparel
sport (Smith and Stewart, 2015). manufacturers. In fact, the corporate or professional
Enterprise marketing management looks to sector of sport is interested primarily in profits.
systematically link sport marketing efforts to all Any other objectives that these organizations might
essential functions within an organization. This develop would remain subservient, or a means to
realignment seeks to put sport marketing efforts achieving a greater profit. In theory, a privately
and customer service at the center of the efforts of owned professional club may want to sign up more
the sport enterprise. Enterprise sport marketing club members, but only so that they can make more
allows the sport marketer to develop deeper money. However, most business managers
customer understanding while delivering more understand that the fastest route to profit in
personal and compelling sport marketing professional sport is to win (Smith and Stewart,
throughout the sport consumer life cycle. This is 2015).
accomplished by improving a sport organizations On the other hand, many sport organizations
ability to acquire, retain and grow customer value, will not have profit as their main objective. For
establish the corporate value proposition and brand, example, sport clubs and community-based clubs
as well as efficiently manage the strategic planning will have performance and participation objectives.
process and marketing resources including people, National sport associations and government sport
time, inventory and content (Schwarz, Hunter and agencies may also be interested in promoting
LaFleur, 2013). messages about healthy lifestyles. Generally
speaking, sport organizations that are member-
MISSION AND OBJECTIVES based are set up as non-profit organizations and
Every business exists for a purpose. Each therefore will not set profit as their main objective.
company strives to stay consistent with its purpose It is still important for them to make sure they are
in order to enhance its chances for success. The earning enough money to cover their costs, or
companys purpose may be found in its stated perhaps a little more to spend on developing new
mission. For example, an intercollegiate athletics services or buying new equipment. However, for
programs mission may be to provide athletic them, profit should be a means to an end, not their
participation opportunities for the college student. primary objective.
In another example, a city parks and recreation
departments mission might be to provide the SPORT MARKETING RESEARCH AND
means for leisure pursuit for the citys population. ANALYSIS
The company will offer products with the intention Information gained from marketing
of meeting the companys mission. The mission, research is a significant element when forming
then, is the reason it exists. All marketing activities decisions and strategies for the marketing mix.
must begin with a clear understanding of the Research will provide vital information in the four
companys mission and the companys current key areas the marketer studies: the consumer, the
situation. competitor, the company and the climate (the 4
The stated mission must be accompanied by Cs).
the companys objectives. The objectives provide This world seems small, because electronics,
specific and concrete direction whereas the mission communication systems, and transportation are
statement often may be broad and ambiguous. The phenomenal. The amount of information produced
objectives should state the exact direction that and disseminated through communication systems
management wants for the company. For example, is massive. In fact, the last decade has been labelled
whereas the mission of the college athletics the Information Era. Moreover, we are currently in
department is to provide athletic participation a time that is literally changing the entire face of

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business. A factor largely responsible for this is the new participation for a marathon event by 20 per
Internet. The marketer must achieve the ability to cent or increase membership renewals by 10 per
conduct research, obtain information, analyze the cent. The second step in the process is to develop a
results of research and the data gathered, envision research method - that is, to determine which data
uses for the information, and formulate strategic sources are needed (primary or secondary), and
decisions based on the research and information. In which methods of data collection (see below) are
addition, the marketer must have or create a system best used in the context of the research. The third
to manage the information and research. step then involves the research planning and data
Sport marketing research is a system of collection, who collects the data, when and where.
gathering and analyzing information. What types of When all data are collected, they need to be
data and how data are gathered is specifically analysed. Data analysis, as the fourth step in the
organized and determined by what question is in process, can involve the crunching of quantitative
need of answering. For example, if the companys data with the help of statistical analysis software
product isnt selling, the question becomes: Why programs or the interpretation of more qualitative
isnt this product selling?. Research is then (e.g. interviews) research data. The final step in the
designed to gather and analyze data to try to answer research process is the presentation of the findings
this question. in a report so that the research objectives are
The sport marketer will need the information achieved and the research problem is answered as
gained through research to formulate decisions and accurately as possible (Shilbury, Westerbeek,
strategies concerning every aspect of the company Quick, Funk and Karg 2014).
and its marketing plan. Marketing research usually
focuses on one problem. At the same time, broad CONSUMER, COMPETITOR, COMPANY,
databases may be established and maintained CLIMATE (the four Cs)
concerning specific aspects of the company or the Everyone in a sport business must possess
companys consumer markets and competitors. vast knowledge about many different things. These
The massive amount of information requires factors have direct and indirect influence on the
a sophisticated information management system. company that must be used or referred to when
This is usually called a marketing information making decisions and developing strategies. The
system, or MIS. The purpose of an MIS is to sport business should develop a way to constantly
collect, store and retrieve specific information. An study and analyze them. Most all of these can be
MIS can be as simple as a few index cards or as categorized into four categories: the consumer, the
complex as a state-of-the-art computer system. competitor, the company and the climate.
Some of the determining factors include the The sport marketer must constantly study and
companys capability for funding a system, the analyze existing consumers and the potential for
amount and type of information to be managed, and new consumers. This will afford the sport marketer
the ways in which the marketer will need to use the the knowledge to develop new products, change
information. existing products, set new goals, and make other
Sport organisations can no longer rely on strategic decisions for the company.
general sport market research to inform decision - Studying the competitor involves studying
making. Sport organisations can conduct their own closely related competitors and the particular
market research, engage a specialist to assist in industry of the business. The information about
questionnaire construction, data analysis or consumers must be analyzed along with
interpretation, or contract a consultant to deliver information about competitors. Every business
product-specific information. Organisational operates in a variety of environments and not in a
decisions should be based on the needs and vacuum. The sport marketer must continuously
expectations of the consumer, and the only way study and analyze the competition to gain an
they can be ascertained is to ask about them. While understanding of what competitors are doing, what
the phrase use it or lose it is a sport clich, when they are capable of doing, and how these activities
applied to market research there is not a more might impact upon your business. With this
appropriate sentiment (Shilbury, Westerbeek, information the marketer will be able to change
Quick, Funk and Karg 2014). existing strategies, if needed, and formulate new
The market research process principally strategies.
consists of five distinct phases. In order to guide The study of the company is vital to success.
the complete process, and to achieve maximum One example of a method of company study is a
results with limited resources and time, the first SWOT analysis. SWOT is an acronym for
step in the process is to clearly define the research Strengths, Weaknesses, Opportunities, and Threats.
problem and set a number of measurable Other criteria that should be considered are mission
objectives. The research problem and objectives and objectives, financial strength, production,
often are a direct derivative of the marketing product management, pricing objectives and
mission of the organisation - for example, increase strategies, distribution strategies, and promotion

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strategies. Further, all of these factors can be marketing strategies. It is the target market for
compared to competitors. which a product is produced and offered, a specific
An important responsibility of the sport price is determined, where to offer the product is
business management team is to analyze the selected, and promotion strategies are formulated.
climate. Climate, also referred to as environment When positioning the product, the sport
or atmosphere, refers to the current situational marketing professional must take into account six
factors in a society that can affect the sport distinct markets for sport: three are considered
business. These include economic, social and primary markets and three are considered
cultural, political, ethical, trends, technological, secondary markets (Schwarz, Hunter and LaFleur,
community, education, corporate, and legal aspects 2013):
of society. With an analysis of each of these in Primary markets
specific relation to its effects on the sport business, Participants: athletes, coaches, and game
the sport marketer must determine how each can officials.
influence the company. Spectators: stadium attendees, television viewers,
radio listeners, and newspaper or magazine readers.
SEGMENTING THE SPORT MARKET. Volunteers: social hosts at sport events,
TARGET MARKET SELECTION. statisticians, and team managers.
POSITIONING Secondary markets
Segmenting, targeting, and positioning are Advertisers: use sports to target and communicate
essential for every sport business. Without these, their products to large groups of spectators.
the sport business puts itself in serious jeopardy of Corporate sponsors: use sports to target and
failing. Segmenting, targeting and positioning communicate positive and distinctive images about
enable the sport business to develop strategies their products to large groups of spectators.
appropriate to different sets of consumers. Athletes endorsements of products and licensed
Segmenting, also called segmentation, is products: personalities and celebrities or distinctive
differentiating groups of consumers based on symbols, logos, or trademarks encourage
unique characteristics. Through segmentation, the consumers to perceive products as popular or
company identifies and understands the common prestigious.
characteristics of the consumers in that segment
and can determine how to address their unique SPORT MARKETING MIX STRATEGIES
demands. Targeting, also called target marketing, is The marketing mix is the strategic
the selection of consumer segments (also called combination of the product, price, place, and
target markets) for which selective marketing-mix promotion elements. These elements are typically
strategies are developed. Positioning is the way a called the four Ps of marketing. Decisions and
company uses its marketing mix to influence the strategies for each are important for the marketer.
consumers perception of a product. Such moves Information for making educated decisions
may influence what the consumer thinks about the involving the four Ps comes from your marketing
products quality, value, status, convenience, and research involving primarily the four Cs -
many other factors. consumer, competitor, company, and climate. A
Market segmentation involves two parts. critical decision and one of the greatest challenges
First, the market must be divided into sub-groups for the sport business is how to strategically
based on a common feature. This can be done with combine the four Ps to best satisfy the consumer,
the help of market research. Second, the target meet company objectives, enhance market position,
segment needs to be determined because the and enhance competitive advantages.
segment(s) chosen need(s) to be substantial enough Market position, also called positioning,
to justify all the efforts associated with developing refers to the way a company uses its marketing mix
and implementing the marketing strategy. It is to influence the consumers perception of a
equally important that the segment identified is product. Such moves may influence what the
different from the general market. If the needs of consumer thinks about the products quality and
all the consumers in the total market are very what the consumer is getting for the money,
similar, it might not be necessary or profitable to features not found on another similar product,
try to break them down any further (Smith and status, convenience, and many other factors.
Stewart, 2015). The centerpiece of a marketing mix is the
The marketer must direct the company in product. The product should be understood as a
deciding which segments the company is capable concept and not simply as a singular item. A sport
of serving. The segments chosen become the product is any good, service, person, place, or idea
companys target markets. A target market is a with tangible or intangible attributes that satisfy
segment of consumers who are homogeneous and consumer sport-, fitness-, or recreation - related
who have purchasing power and the willingness to needs or desires. The consumer is looking for
buy. Target markets should be the basis for all functions and benefits. The product is the

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satisfaction agent for those. The product is choose any one or a combination of promotional
something that will satisfy something that the methods and strategies. The promotional message
consumer needs or wants. Price, place, and and strategies are put together to speak to a specific
promotion strategies are designed specifically for kind of person - a market segment. The sport
the product in order to increase the probability that marketer uses research data about the consumer
the product will sell. and the competition to create strategies and the
Price is the exchange of something for promotional message.
something - that is, one item of value for another
item of value. The price of something can have a SPORT MARKETING EVALUATION AND
tremendous effect on a consumer. The consumers CONTROL
decision to buy something can be affected by many The evaluation requires obtaining feedback
factors. Some of those factors include what the (from inside and outside the organization) about the
consumer can afford to pay, if what the consumer marketing plan. The feedback must then be
gets for the money is of value, if the consumer analyzed and evaluated. The evaluation should
thinks she or he is getting a good deal, friends focus on determining the extent to which the plan
attitudes, family influences, how the product helped the organization achieve its mission by
compares to another similar product in terms of acting in accordance with the core values of the
features and other factors, and the products organization (Schwarz, Hunter and LaFleur, 2013).
warranty and extended services. Sport marketing control is an on-going
Setting the price for a product is a very monitoring and review process that seeks to keep
important decision for the sport marketer because the strategic sport marketing plan on track during
price affects the products success, status quo for its implementation. Its basis is one of
the product, and the consumers perception toward measurement: to establish whether what it set out
the product. The decision should be based on many to achieve has been successful if it is not
factors such as knowledge of the consumer and successful, why not; and if successful, what in
what the consumer will pay, cost to the company to particular made it so. Sport marketing control is a
produce and offer the product, profit-making pro-active measure that can identify whether the
strategies of the company, the competitions prices, strategic sport marketing plan is still appropriate in
and supply and demand within the product market. the ever-changing external environment. If it is not,
Place is where and how a company gets a then corrective action is necessary to put the plan
product from its production or origination point to back on track.
a place where the targeted consumer can have Sport marketing control is dependent upon
access to it. Sport industry products include people, accurate and timely feedback on sport consumer
places, goods, services, and ideas. Goods that are reactions to the sport marketing mix. The MIS
typically manufactured in a factory must be (marketing information system) provides the
transported from the factory to the market. Some necessary data to evaluate success. This process
products such as services must be delivered to the can begin during sport marketing tactical
marketplace to the consumer in a different way. implementation (iteratively), but really should
Sports activities are very different because a sports occur at the end of the implementation phase (past
event does not exist until a person manufactures it - hoc) thus enabling the complete picture to emerge.
that is, basketball is an intangible and doesn't exist This is a feed-forward process to enable lessons
until someone plays basketball. It is a product like learnt to be included in future plans (Blakey, 2011).
a play in a theatre or a live concert by a current
famous musician that is manufactured and CONCLUSIONS
consumed simultaneously. All sport marketing activities are developed
Place, or distribution as it is also called, with specific and strategic decisions based on
requires knowledge of type of product, how best to research and information. These activities are
get that product to the consumer, or how to get the typically based on a strategic process, or model.
consumer to the product, efficient and effective The sport company must study what the
distribution channels, packaging, and other factors. consumer wants and provide it. Although this
Analysis will lead to better decisions. seems like an easy rule to follow, there are many
The marketers purpose for promotion is to functions that must be performed and receive
encourage the person to purchase the product. critical analysis and proper management in order
Therefore, the message must be developed in such for successful marketing decisions to be developed.
a way that it serves three functions: First, it gets the Complicating the task of producing what the
attention of people; second, it gets across a consumer wants is the companys capacity to
message or educates the people; and third, it tempts manufacture it, distribute it, and offer it. In
the people to purchase the product. The promotion addition, the company must consider its values and
may be any one or more of a variety of promotional objectives and decide if it can ethically offer the
methods and strategies. The sport marketer may products. Therefore, careful management of the

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marketing functions and critical analysis before REFERENCES


decision making can increase the companys
chances for success. The incorporation of a [1] Blakey, P. (2011), Sport Marketing, Learning
marketing management strategy is critical. Matters Ltd, Devon, U.K.
The concept of competition in business is the [2] Schwarz, E. C., Hunter, J. D., LaFleur, A.
idea that a sport business is competing against (2013), Advanced Theory and Practice in
another business to win the consumer. Winning in Sport Marketing. 2nd edition, Routledge,
business means staying in business at a successful Abingdon, Oxon, U.K.
level. Success is defined by the sport company and [3] Shilbury, D., Westerbeek, H., Quick, S.; Funk,
is usually measured by achieving the companys D.; Karg, A. (2014), Strategic Sport
objectives. Marketing. 4th edition, Allen and Unwin,
Crows Nest, Australia,
[4] Smith, A. C. T., Stewart, B. (2015),
Introduction to Sport Marketing. 2nd edition,
Routledge, Abingdon, Oxon, U.K.

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Appendices

Figure 1:
The Sport Marketing Management Model

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