Transcript chapter - Human Kinetics

chapter
5
Data-Based
Marketing and the
Role of Research
in Sport Marketing
Objectives
• To appreciate the components and the
importance of a data-based marketing
information system and the role of
customer relationship management (CRM)
• To understand the various research
methodologies and approaches most
commonly used in sport marketing
• To recognize the internal data sources
available to sport organizations and the
most effective ways to build a database
A Data-Based Marketing Approach
• It involves the integration of all data files pertaining
to the customer base.
• It integrates those files into one database that
provides a 360-degree view of each consumer,
detailing every interaction and communication that
they have had with the sport organization.
• It facilitates contact with current, past, and
potential customers.
• This enables the sport organization to target offers
and initiate communication based on an
understanding of the targeted consumer’s history
(transactional or otherwise) with the organization.
Data-Based Management System
(DBM)
• A comprehensive system that captures
essential demographic, psychographic, and
product usage information on customers
and potential customers for the purpose of
enabling direct marketing strategies
• Characteristics of an effective DBM system:
– Centralized
– Retrievable
– Integrated (accessible to multiple users)
Customer Relation Management
(CRM) System
• CRM expands on the basic customer
demographic, psychographic, and product
usage data captured in a DBM system.
• Ideally, it captures all transactions,
inquiries, and interactions between the
customer and the organization.
Role of the Web in DBM and CRM
• DBM and CRM systems have to be fully integrated
into the entire e-marketing program of the sport
organization.
• The Web site of the team or organization has to be
– a major source of information;
– interesting and entertaining for the fans or customers of the
organization;
– a major source of information on ticket sales, plans, and
special promotions; and
– a springboard for launching sales and transactions.
• Consequently, data on all fans or customers and
prospective customers who visit the organization’s
Web site need to be captured and incorporated into
DBM and CRMs.
Elements Needed for a Solid Database and
Direct Marketing Strategy
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Identifying and using data sources
Coding the data
Collecting contact information
Using customer or fan loyalty programs
Updating and cleaning the data
Creating online and offline direct marketing
campaigns
Stakeholders: Those Who Touch the Product
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Buy or use a ticket
Watch game telecasts
Listen to games on the radio
Buy apparel, videos, and publications
Visit league or team Web site
Complete an all-star ballot
Coach or play the sport at a youth or adult league level
Buy from a league or team partner
Play in fantasy leagues
Participate in a fan loyalty program
Participate in a league or team promotion
Enter to win an online sweepstakes
Enter to win a contest at a community event
Role of Market Research
• What does the organization want to know?
• What is the best way to find it out?
• How can they use it?
General Market Data
• Size of the market
• The demographics of individuals residing or
working in the critical trading radius
• The purchase behaviors and consumption
patterns of those residing or working within
the market
• The level of spectatorship or participation in
a sport broken down by demographic
categories
• Data on future trends
Data on Past, Present, and Future
Customers
• Names, addresses, e-mail addresses, and
phone numbers of consumers
• Frequency of purchase or attendance, use
of product type and quantity of product
purchases, and dates of purchase or
attendance
• Method of payment, location where product
was purchased, and lead time
• Media used or source of awareness
• Pattern of consumption
Data on Competitors
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Price lists
Product lines
Promotional strategies
Description of services
Comparisons among all similar
organizations
Internal Data Sources
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Sales records
Inquiries
Accounting records
Letters or phone calls of praise or complaint
Web site registrations
Secondary Data Sources
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Census reports
Census-based demographic reports
State or local agencies
Public libraries
Chambers of commerce
Trade associations
Research services
Trade or scholarly publications
Primary Data Sources: Importance
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Communicate with the target market.
Assess your position in the market.
Establish a demographic profile of the audience.
Initiate data-based marketing efforts.
Benchmark and evaluate operational elements.
Gather information essential for sponsorship
renewal or solicitation of new sponsors or for
determining reaction to new concepts, products, or
services.
Types of Primary Data Collection
• Personal observation
• Focus groups
• Surveys and
questionnaires
– On-site surveys
– Mail surveys
– Telephone surveys
– Web site surveys
– E-mail surveys
• Video Interviews
• Personal interviews
(identify or not identify)
• Community intercepts
• Protocol research
• Panel of experts
• Mystery fan
• Open letter
• Integration
Common Problems
in Market Research
• Sampling: How many people should I
survey to be accurate?
• Reliability
– How dependable are my findings?
– Where should demographic questions be
placed in a survey?
• Randomness: How can I be assured of a
random population for the survey?