Transcript Sports Marketing

MKT 420
Contemporary Issues in
Marketing
Chapter 4
Sports Marketing
Objective
Describe the characteristics of
sports marketing.
 Discuss the three roles of marketing
in sports organizations.
 Summarize the evolution and
history of sports marketing.
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Sports Marketing
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Marketing is the activity, set of institutions,
and processes for creating, communicating,
delivering, and exchanging offerings that have
value for customers, clients, partners, and
society at large (AMA, 2007).
Sports Marketing is the use of marketing for
creating, communicating, delivering, and
exchanging sports experiences that have
value for customers, clients, partners, and
society.
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Features
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Application of general marketing practices to
sport-related products and services: Sporting
equipment, sport events and local clubs, team
advertising, promoting an athlete, selling
season tickets, licensed apparel for sale.
Marketing of other consumer and industrial
products or services through sport: Professional
athlete endorsing a breakfast cereal,
sponsorship of a sport event, beer company
arranging to have exclusive rights to provide
beer at a sport venue or event.
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Dimensions
1.
2.
Marketing of Sports: Pertains to
products, services, leagues, teams,
venues, events, and individuals.
Marketing through Sports: Refers to
businesses using sports as part of their
marketing strategy to reach and engage
their target markets. Sports
sponsorship is the primary channel for
marketing through sports.
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“Sport Marketing is unlike
conventional marketing because it
also has the ability to encourage the
consumption of non-sport products
and services by association”.
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Characteristics of Sports
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Sport is paradoxical:
 Professional/amateur,
individual/collective, indoor/outdoor,
competitive/free, …
Sport is a service:
 Intangible- Except infrastructures and
accessories.
 Perishable (Instantaneous and non-storable)Destroyed as soon as its produced
 Inseparable- Co-created by spectator/ athlete,
arena/ training gymnasium
 Variability- All experiences aren’t the same.
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Sport is the only industrial product that can be
made with:
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Collaborating and competing firms (teams)
Often has uncertain result (result of the match)
Sometimes a rigid productivity (fixed quantity of
matches, of players)
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The sport
industry is a
BIG business!
Organization
of the
Sport Industry
Sports Motivation
(Consumer Behavior Aspect)
Most outcome of planned purchases
 Some impulsive
 Desire to identify with sport
 Maslow’s Hierarchy of Needs
 Understanding benefits desired
 Can be used to identify market
segments
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Maslow’s Hierarchy of
Needs
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Dr. Abraham Maslow formulated a
widely accepted theory of human
motivation. Maslow's theory identifies
five basic levels of human needs, which
rank in order of importance from lowlevel (biogenic) needs to higher-level
(psychogenic) needs.
Maslow’s hierarchy of needs theory
suggests that individuals seek to satisfy
lower-level needs before higher-level
needs emerge.
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Maslow’s Hierarchy of Needs
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Physiological Needs
 In the hierarchy-of-needs theory,
physiological needs are the first and
most basic level of human needs.
 Physiological needs are those things
that are required to sustain biological
life: food, water, air, shelter, clothing.
 These include biogenic needs.
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Safety Needs
 After first level is satisfied, safety and
security needs become the driving force
behind an individual’s behavior.
 Safety needs are concerned with much
more than physical safety. Health and
the availability of health care are
important safety concerns. Saving
account (financial reserves), medical
insurance, education for a sense of
security.
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Social Needs
 Social needs relate to such things as
need for friends, need to give and
receive love, affection, belonging, and
acceptance.
 People seek warm and satisfying human
relationships with others.
 Because of the importance of social
motives in our society, advertisers of
many product categories emphasize this
appeal in their advertisements.
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Ego (Esteem) Needs
 These are needs to feel important. Can take an
inward (internal) or outward (external)
orientation, or both.
 Inwardly-directed ego needs reflect an
individual’s need for self-acceptance, for selfesteem, achievement, and for personal
satisfaction with a job well done.
 Outwardly-directed needs relate to interaction
with other people and include the needs for
reputation, for status, and for recognition from
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others.
Need for Self-Actualization
 Need for self-actualization refers to an
individual’s desire to fulfill his or her
potential to become everything he or she
is capable of becoming.
 According to Maslow, most people do
not satisfy their ego needs sufficiently to
ever reach this level.
 People here tend to have needs such as
truth, justice, wisdom, meaning.
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Maslow’s Hierarchy and
Sports Consumption
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Basic (Physiological) & Safety (Security):
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Societies where people are starving and are without
shelter aren’t interested in sports or staying fit.
Improving health and fitness is the prime motivator for
sports participation.
Also not related to security needs.
Social:
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Spectators and participants involvement in sports is
motivated by a desire to confirm a sense of identity.
Spectating in a sporting event bring varied people
together and can affirm national unity or a sense of
community.
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Ego or Esteem:
 In sports research, self esteem is holding oneself in
high regard.
 Involvement in physical activities leads to positive
attitude about oneself.
 Achievement for sports person is in terms of success
or failure; whereas for spectators it is about basking in
the glory of victorious team.
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Self Actualization:
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It refers to a man’s desire for self-fulfillment, and
become actualized in what he is capable of.
Sports provide opportunities to exceed personal
expectations and express oneself.
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Summary and Discussions
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