END OF UNIT 3
Download
Report
Transcript END OF UNIT 3
Specialised & Cause Related
Marketing (SCM812S)
UNIT 3
SPORTS & EVENTS MARKETING
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
1
Unit Objectives
At the end of this unit you should be able to:
define sports and event marketing
discuss the nature and scope of sports and event
marketing
apply the marketing mix to sports and event marketing
analyse the special consideration for sports marketing
outline and discuss with examples the different kinds of
event marketing
explain sports and event marketing in the Namibian
context
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
2
Introduction
We all have one sport that we love and follow. It could be soccer,
netball, tennis, rugby or even basketball. Sport plays an important social
and economic role in virtually every country of the world. Some might
argue that sports and event marketing are a “special case” of
marketing, meaning there are theoretical and practical dimensions of
marketing peculiar to sports and event marketing.
For instance, courses are offered in services marketing, international
marketing, business-to-business marketing and the like because the
applications of marketing to these particular contexts require
adaptation specific or special to each case. Following this logic, we
should accordingly treat sports and event marketing as special cases to
study because its processes do not function or generalise well for other
goods and services.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins &
Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015
3
What is Sport Marketing?
According to Fuse marketing (2013), Sports Marketing is
a form of marketing in which brands use mainstream or
alternative sports to connect with both a broad and/or
targeted group of consumers. Countless companies
and/or brands have used sports marketing to build
positive brand awareness, support retail and sales
promotions and gain an overall advantage in their
market. Common examples of sports marketing include
athlete endorsements, event marketing and in-stadium
advertising.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
4
According to Beech & Chadwick (2007) sports marketing is
a subdivision of marketing which focuses both on the
promotion of sports events and teams as well as the
promotion of other products and services through
sporting events and sports teams. It is a service in which
the element promoted can be a physical product or a
brand name. The goal is to provide the client with
strategies to promote the sport or to promote something
other than sport through sports. Sports marketing is also
designed to meet the needs and wants of the consumer
through exchange processes.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
5
Nature and Scope of Sports
Marketing
Sports marketing include the commoditisation/trading of sport and
sport-related transactions. Sports marketing, essentially, is the
business of sports. And sports business is big business. Sport
marketing is divided into three categories/classes.
The first is the advertising of sport and sports associations such as
the Olympics, English Football league (which is well watched in
Namibia), and the Namibia Premier Leagues (NPL). The second
concerns the use of sporting events, sporting teams and individual
athletes to promote various products.
The third is the promotion of sport to the public in order to
increase participation. In the first case, the promotion is directly
related to sports. In the second case, the products can but do not
have to be directly related to sports.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
6
Three Categories/Classes of Sports
Marketing
When the promotion is about sports in general, the use
of this kind of strategy is called “Marketing of Sports”.
When the promotion is not about the sports but sports
events, athletes, teams or leagues are used to promote
different products, the marketing strategy is
denominated “Marketing through sports”. When the
promotion is about increasing participation amongst
the public it is called "Grassroots Sports Marketing".
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
7
Channels used in sport marketing
To promote the products or services, the companies and associations use
different channels such as sponsorships of teams or athletes, television
or radio advertisement during the different broadcast sports events and
celebrations, and/or advertisement on sporting venues. “Street
marketing of sport” which considers sport marketing through billboards
on the street and also through urban elements (street lighters and
sidewalks, etc.) to help promote and gain publicity during major
worldwide sporting events such as the Football World Cup, the Olympic
Games, the Super Bowl or the Winter Olympic Games.
One element that sport marketing takes advantage of is that athletes
tend to be brand loyal and fans tend to be loyal to their favourite athletes
and teams. This can be recognised through the contracts players and
athletes sign with sports companies in which they get paid to wear or use
their products in each game or sporting event. By doing
so, the players and athletes and also their fans develop a loyalty to the
products for a longer time.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
8
Role-players/Sectors in Sport
Marketing
Sports Marketing is made up of six distinct role players or
sectors namely: rights holders, broadcasters, facilities and
venues, promoters, buyers and sponsors, and agents and
athletes.
Together, these sectors comprise the world of sports
marketing. Marketing makes up just one section of the larger
business of sports. As the industry continues to grow, more
and more employment opportunities arise at the
professional, semi-pro, college and amateur levels.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
9
Rights holders
Rights holders are the big organisations that control
events and competitions. This includes entities like the
NFA in Namibia, Sports Commission, Athletic Union,
FIFA and others. Sporting events cannot be televised
without the express permission of the rights holders.
These organisations are also responsible for setting
league standards and policies and monitoring that all
teams and athletes act and play according to the
stipulations they set forth.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
10
Broadcasters
Broadcasters are cable and network television channels,
including the Namibia Broadcasting Corporation (NBC).
They make bids to the rights holders for the right to air
events. This bidding war drives the cost to run sporting
events up. In turn, advertisers pay big money to
broadcast companies for slots during the game to run
ads. The profit from advertising during popular sporting
events is significant and serves as the justification for
the exorbitant fees paid to the rights holders by the
broadcast companies.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
11
Facilities and venues
facilities and venues are where the sporting events take place.
All kinds of transactions take place within the venue. Money is
changing hands everywhere. In fact, it can get really
complicated. Teams have leases with facilities that legal bind
particular teams to a given arena or stadium, making it difficult
for teams to switch cities or states. In most cases, the city or
state pays to build a sporting venue because of the amount of
potential revenue that can be made. (Sometimes a team will
partner with the city to meet costs. Very rarely does a team pay
for the entire cost of the venue). Through ticket sales,
concessions and souvenirs, teams and facility owners make a
hefty profit. All of this creates jobs and prestige for the region.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
12
Promoters
Promoters often create awareness and then promote
their own events. Promoters are probably most visible
in the world of boxing, wrestling and martial arts. They
negotiate with venue owners and agents to stage an
event. The participants then compete for a spot, being
it advertising, catering spot, etc.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
13
Buyers and sponsors
Buyers and sponsors are advertisers. They pay huge
amounts of money to prominently feature their brand
during events. This may come in the form of television
commercials (by far the largest category in this section),
radio ads, venue ads and individual athlete sponsorship.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
14
Agents and athletes
At the professional level, athletes perform their craft for
outrageous salaries. These salaries are made possible by the
fees advertisers are willing to pay. These salaries are
negotiated by an athlete’s agent. Agents are usually
attorneys who are able to negotiate salaries, signing
bonuses, compensation packages, endorsements and other
fees for their clients, in exchange for a percentage. Agents
who represent many clients in their given sport often have
leverage and can negotiate maximum fees for players while
they are in their prime.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
15
Reflection
What about the Namibian Sports Marketing Industry?
Who are the major players?
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
16
Applying The Marketing Mix to
Sports Marketing
Like other forms of marketing, sports marketing also
uses and follows the traditional four "Ps” of general
marketing being product, price, promotion and place.
However, another four "Ps" are added to sport
marketing, relating to the fact sports are considered to
be a service. The additional 4 P’s are: planning,
packaging, positioning and perception. The addition of
the four extra elements is called the "sport marketing
mix.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
17
Differences between goods/services
Marketing and Sports Marketing which may
influence the application of the marketing mix
Compared to typical goods and services marketing,
sports marketing differ in at least ten respects. For
instance note how individual purchasers are referred to
in goods/services vs. sports marketing :
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
18
Differences…
Fanatics: According to Wakefield (2007) a central point of
differentiation between sports marketing and traditional
goods/services marketing is how we view individual
purchasers. One typically refers to customers when the
subject is goods and services. Sports teams and players have
fans. Dictionary.com defines a customer as:
“One that buys goods or services.” A fan is “An ardent
devotee; an enthusiast.” A fanatic is “a person marked or
motivated by an extreme, unreasoning enthusiasm, as for a
cause.”
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
19
Cont’d…
Current goods and services marketing focuses primarily upon
creating customer satisfaction. Satisfaction occurs when
expectations are met or exceeded. Satisfied customers mean
three things to the company.
First, satisfied customers increase the value of the firm to
shareholders.
Second, satisfied customers assure the firm of future cash
flow.
Third, satisfied customers reduce the variability in future
cash flow.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
20
Cont’d…
As with goods and services marketing, sports teams seek to satisfy
customers. We would expect, however, that fanatics of a team or brand are
more than satisfied. Fans experience pleasure and satisfaction with
successful teams. But, they also experience feelings of delight or
excitement deeply resonating within the identity of the individual fan, such
that the effects are likely to be long term.
Delight is a combination of pleasure and arousal with an element of
surprise that is frequently experienced in the sports world. Further, fanatics
are resilient in the face of service failure (i.e the team loses), when delight
and excitement may turn to distress and gloom. Sports teams develop a
faithful fanatical following primarily due to high levels of identification,
which is the second point of differentiation between goods and service
marketing and sports marketing.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
21
Identification
Consumers are loyal to goods and services while fans identify with
teams, organisations, and individuals. Loyalty is the repeat purchasing
of a good or service by a consumer. A loyal customer is sensitive to
differences in brands and prefers a brand or set of brands over others.
Identification is when an individual reacts to events that occur to the
team or player as if the events happened to him or her. A highly
identified fan will describe one’s self to others in terms of being a
team fan, perhaps to the point that the fan feels like s/he is part of the
team. Fans are certainly loyal to the team in terms of repeat
purchases, but fan identification is a deeper psychological affiliation
that is a basis for a fan determining self-esteem and self-worth.
Because of high fan identification, fans passionately seek ways to
promote the team to others.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
22
Promotion and media
The manufacturer and/or retailer of goods and services pays
for the development and placement of brand advertising and
promotions. In contrast, sports teams, organisations, and
individuals (players, drivers, and artists) receive indirect and
direct financial support to advertise and promote
themselves. Fans indirectly promote by buying and wearing
or displaying licensed merchandise. Sponsors directly
promote the team and individuals, paying for the advertising
and media to do so. Similarly, radio and TV broadcasts of
sporting events are “brought to you by” the sponsors. Much
of the actual product, particularly in terms of revenue, is in
the broadcast of the games or event.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
23
Cont’d…
The fact that sports and entertainment are broadcast, in and of itself,
differentiates from other goods and services. Typical goods and services find
it difficult to entertain using its product as the star of a broadcast, although
more than a few have created infomercials to entertain.
the point is sports are different because others pay for the team’s
advertising, promotion and broadcast—in a way typical goods and services
find difficult to achieve. Goods and services marketers typically pay for media
to broadcast or to print advertising and promotional information while the
media pays sports teams for the right to broadcast or print team and event
information.
In contrast, no network is bidding hundreds of millions, let alone billions, of
dollars to broadcast goods and services. The revenue generated from TV
contracts is the principle differentiating factor between the healthiest sports
leagues (NPL, Namibia Basketball League, Namibia Rugby Union (NRU), etc)
and the less healthy ( Namibia Hockey, etc). The proliferation of broadcast
and other media outlets for sports also points to the fact that the distribution
for sports is increasingly electronic and not limited to static locations.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
24
Reflection
Why do city, region and state officials want to attract
sports organisations? Why are they, and their taxpayers,
willing to pass laws and regulations to pay for these
facilities?
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
25
Channel: Static vs. Mobile 4
distribution
According to Wakefield (2007) goods and services designate
specific geographic outlets. Customers purchasing from
Samsung buy products at a local Samsung store or order
products to be shipped from a Samsung’s distribution centre.
The distribution channel for Samsung is relatively static,
changing only when stores open or close. Sporting events
and teams, on the other hand, are basically traveling road
shows, moving from location to location, city to city,
nationally and globally. The experiential and transitory nature
of sporting events (as well as other competitive broadcast
events such as “ Survival, Idols”) lends itself to electronic
forms of distribution.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
26
Cont’d…
That is, sports and entertainment are suitable for
mediated distribution through broadcast and online
video. The English Premier League, for example, is
broadcast in 231 countries across 24 time zones for
upwards of 200,000 hours of programming in 32
languages. Similarly, cable and internet broadcast
systems have developed new distribution channels such
as NBA.TV, blurring the lines between traditional
broadcasts and online services that make the product
available anytime, anywhere.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
27
Product: Adapted vs. Global
Wakefield (2007) is of opinion that due to the nature of the
events and the distribution channels, sports such as soccer,
basketball, baseball, tennis, golf and motor sports are truly
global products needing little translation or alteration of the
marketing mix to gain acceptance across cultures. The
marketing mix (product, place, promotion, pricing) for typical
goods and services are typically adapted to local markets.
Compared to most sports, frequently cited “global” products
such as Coke and McDonald’s are not actually standardised
global products. Coke alters its packaging, name and syrup
content in foreign countries.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
28
Cont’d…
McDonald’s offers beer in German restaurants and
cooks its hamburgers rare in France. In contrast, the
content or product of the English Premier League,
Formula1 Racing, Olympics, or the Soccer World Cup
remains the same throughout the world. In a sense,
given its electronic broadcasts, the distribution is
standardised around the world. Obviously, the
promotion (e.g., language) and pricing (e.g., costs of
cable) aspects of the marketing mix may be adjusted to
regional markets.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
29
Pricing: Two-part pricing
Customers typically pay one price for a given product or service. When
you go to a grocery store, you select your favourite grocery items and
pay the prices marked on the items. You are not required to pay
admission to the store so you can shop. However, some exceptions
exist resembling fan loyalty—and even fanaticism—in customer
products. People pay an annual fee to shop at the Windhoek Show.
Some people we know actually get very excited about being able to
shop at these places. Such organisations are the exception to the rule—
and add evidence to the premise that the most successful marketers
are those emulating sports marketers. Professional sports and major
college sports fans frequently pay a two-part tariff (or price).
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
30
While some services with relatively inelastic demand
(electricity, utilities, etc.) use a two-part pricing system (basic
fee + additional user fees) due to monopoly power, even
sports organisations operating in competitive entertainment
markets frequently charge two prices. Fans paying the initial
fee are then given the opportunity to purchase tickets.
Another aspect of two-part pricing in sports is the event
itself. Fans pay for a ticket to enter the event (initial
payment) and then purchase other products (food, drink,
souvenirs) after entering. Thus price-setting in most sports
settings must consider various forms of price bundling.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
31
Cont’d…
Season tickets are offered at a bundled price for the entire
season. Offering tickets with a hot dog and soft drink for a
single price is another example of price bundling in that it
combines the prices of what would normally be two-part
pricing. Price bundling is common among services (e.g.,
vacation package of flight, hotel, and ground transportation;
cable TV packages), so this aspect doesn’t by itself
differentiate the marketing of goods/services vs. sports.
Yet, it is common practice in all sports marketing contexts,
but is not common to all goods/services contexts.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
32
Facilities: Taxpayers vs. Corporate
support
Team Sports Marketing (2014) outlines that although the
subject of much public policy debate, sports team owners often
do not pay for their own facilities. For instance, a new
automobile assembly plant may be able to acquire favourable
tax status and property in Windhoek, but will still pay for
building their own facilities.
In contrast, the majority of NPL owners’ facilities are largely or
entirely paid by taxpayers. In addition, naming rights by
sponsors add additional revenue to the team. Even when
owners invest private dollars into the facility, the reason isn’t
necessarily because public monies are unavailable. In these
cases, owners invest in order to control revenue available only if
they own the facility.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
33
Competition: Cooperative (monopoly) vs.
Individual (monopolistic)
According to Team Sports Marketing (2014) branded goods
and services have traditionally not cooperated in their
marketing efforts. At the wholesale level and in some highly
competitive retail markets, goods and services may engage in
co-branding or cooperative strategic alliances in order to
offset or balance competitive weaknesses and strengths.
As a rule, however, goods and services marketers do not
cooperate in cross-promotions and work in-league with each
other on a permanent basis as do sports. Admittedly, this is
an area in which some sports organisations do better than
others. For example, professional leagues are found to
negotiate and promote for the benefit of the league and its
members.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
34
Cont’d
Fans of the teams are also ardent supporters of the
league and enjoy following other team members or
players in addition to their favourites. The nature of
sports leagues, particularly at the professional level, has
evolved to the point where the leagues operate as
monopolies, controlling entry and exit into the industry.
For instance, for both practical and legal purposes,
Namibia Premier League is a monopoly. The league
continues to be exempt from competition laws. While
other companies are restricted and scrutinised by the
Competition Commission.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
35
Exchange: Economic vs. Social
Team Sports Marketing (2014) found that customers pay an
economic price for the goods or services that they purchase while
fans make a social investment in the transaction. Customers
typically give up monetary value in exchange (what one gives up
for what one gets) for the good or service, although time and
search effort may also be expended.
In most cases, however, only limited social exchange occurs. When
you go out with friends to eat dinner on Friday night, you may be
largely motivated by social reasons to go to a particular restaurant
and consume certain food and beverages. In the same venue,
however, individual and groups of customers may at the same time
purchase a meal where social exchange accounts for little or no
part of the encounter. In either case, the exchange with the
restaurant is still premised upon the purchase of the meal.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
36
Cont’d…
Clearly, the more that the restaurant can do to make the purchase based
more on the experience, the more they are practicing what is common to
sports marketers. In sports, attendance is nearly always (98-99% of the
time) with at least one other person. The sports fan pays a price for the
right to enjoy an emotional experience with others. The fan goes to the
game to be with others to share the experience in this social exchange.
More broadly speaking, unlike most other retail settings, large crowds
have positive psychological effects.
No line at the grocery check-out will make most shoppers happy, but no
line to see a ballgame or a concert is a definite cue to a fan that either this
is a lousy event or the fan has arrived at the stadium on the wrong date.
The excitement of the competition and the aura of the star power of the
players on the team are such that the experience is best enjoyed in the
presence of others.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
37
Contractual power: Owners vs.
Employees
Finally, the size and power of the manufacturer or retailer of
goods and services affords the owner contractual leverage
over its employees in most goods/services contexts. Salaries,
benefits and tenure are largely controlled by the owners.
Employees have mobility, but are rarely able to singlehandedly affect the outcome of the firm by making
contractual demands. Employees (i.e., players) of sports
teams, however, are more likely to possess contractual
power over employers. Contract concessions, renegotiations
and arbitrations generally favour players (Team Sports
Marketing, 2014).
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
38
Special Consideration in sports
Marketing
If a customer is a loyal Nandos customer, it can be
predicted that he or she will likely continue to buy at
Nandos store. A loyal Nandos customer may, however,
switch to similar fried/grilled chicken (Chicken Inn,
Hungry Lion or KFC) or buy fried chicken at another
store if appropriately discounted. You won’t see many
KFC or Nandos’ customers wearing shirts with its brand
name emblazoned across the chest. Nor are you aware
of many, who of their own free will, frequently visit the
website of KFC or Nandos.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
39
Cont’d…
The consumer’s purchase of KFC or Nandos is primarily an economic
decision based upon the perceived value of what one gets (fried
chicken) for what one pays (e.g., N$30.00 for Streetwise 2 or
Quarter Chicken). The taste of the individual also plays an important
role. On the other hand if an individual is a fan of a professional or
university sports team, even a losing team, we can predict the fan
will likely:
Identify with and follow the behaviour of the team and individual
players on that team, on and off the field, team websites,
newspapers, television, radio, wireless, etc.
Purchase licensed merchandise (jerseys, automobile
paraphernalia, caps, mugs, etc.) promoting the team.
Donate or pay for permanent seat-licenses in order to buy season
tickets.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
40
Cont’d…
Travel to see games of that team outside the local market.
Support tax-based initiatives to pay for a new arena or stadium for
the team.
Be a supporter of the conference or league in which the team plays.
Devote significant social time attending, watching and discussing
the team with others devoted to the same or other teams
While consumers of most goods and services see value as primarily an
economic evaluation (which detergent is the best buy?), the value fans
derive from attending sporting events is likely to be more of an
emotional decision. In fact, when teams make fans focus on the price
they are paying, they are focusing on the wrong side of the brain. The
whole point is to make them fans—not consumers in the traditional
sense. Building a fan base, not a customer base, is the first
fundamental difference between sports marketing and marketing of
most goods and services(Team Sports Marketing, 2014).
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
41
WHAT IS EVENTS MARKETING?
Every business seeks to stand out from their
competition, and event marketing can help to do just
that. Whether it is hosting a small webinar, a large-scale
international tradeshow, or an executive-level private
function, event marketing needs to be an integral part
of the demand generation mix.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
42
Cont’d…
Events offer a unique opportunity for them to interact
with solution providers to get a first-hand sense of a
company’s focus, perspective, and personality. People
like to go to the Apple store because they can talk to a
human and experience the products in person, then go
online to purchase. And if most of the company’s
marketing and presence is online, hosting events
enables the company to make those connections.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
43
Defined
Business Dictionary.com defines event marketing (also
called event creation) as the activity of designing or
developing a themed activity, occasion, display, or
exhibit (such as a sporting event, music festival, fair, or
concert) to promote a product, cause, or organisation.
Sports marketing and Events marketing go hand in hand
but are not the same. Sports marketing
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
44
Cont’d…
sports marketing is a subdivision of marketing which
focuses both on the promotion of sports events and
teams as well as the promotion of other products and
services through sporting events and sports teams,
while event marketing (also called event creation) as
the activity of designing or developing a themed
activity, occasion, display, or exhibit (such as a
sporting event, music festival, fair, or concert) to
promote a product, cause, or organisation.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
45
Scope and nature of events
Event marketing is one of the fastest growing fields in
marketing and advertising today. It's everywhere you
look in today's culture although; you probably don't
readily recognise the majority of the event marketing
programs when you see them. That's because there are
many flavours to event marketing and there are no hard
rules about what exactly is and isn't event marketing.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
46
Have you been on vacation break or at a vacation hot spot and been
approached by an attractive model who wanted you tor try
something? That was an event marketing program in action. Whether
you are at the NPL games, Namibia Music Awards (NAMA), Ai//Gams
festival, the WIKA Tour, the Soccer World Cups, or just your local mall
or grocery store, there is an event marketing program there or, at the
very least, waiting for you right around the corner.
Event marketing brings the advertising to the consumer by direct
hand-to-hand sampling or interactive displays. While advertising and
major marketing programs blast millions of consumers with the same
general messages on television or mass media, event marketing
targets specific individuals or groups at gathering spots where they
hope to make quality individual impressions.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
47
An event marketing program can be a nationwide tour,
regional program, or it may be focused upon one key market.
Major cities and towns like Windhoek, Swakopmund, and
Oshakati have dozens of local marketing programs going at
any given time. Less populated regions such as Zambezi or
Kunene or smaller towns usually have fewer local programs
targeting them. National tours can follow some larger event
such as NAMA or Ongwediva Trade Fair or, they may hit a
series of events or festivals across the country that offer the
opportunity to connect with potential consumers.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
48
Kinds of events for events marketing
Events come in a variety of flavours, and can be held in
countless venues, whether online or off (Adkins, 1999).
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
49
Online events
Online events connect presenters and participants
through a web-based interface. Common types of
online events include webinars, virtual events, and live
streaming events. These types of events are often less
costly than in-person events and enable you to easily
reach a geographically dispersed audience. The
convenience and savings of live events – for both
sponsors and attendees – are too significant to ignore.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
50
Physical events
Offline events require physical attendance, and
interaction takes place in person. While they often
require more investment than virtual events, offline
events allow face-to-face interactions that are essential
to building long-term business relationships. Don’t
underestimate the impact a handshake or personal
meeting can make on a prospect or customer. Examples
are tradeshows, conferences, term seminars and
breakfast, lunches and dinner events.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
51
Reasons for events
According to Marketo (2012) when considering hosting,
sponsoring, or participating in an event, a business should
identify the outcomes it wants to derive from the event and
develop a concrete plan of attack for achieving those results.
Companies choose to participate in an event for various
reasons. Small companies may want the exposure that a live
webinar can provide. A large, global company may need the
face-to-face interaction that a tradeshow affords. Whether
small or large, companies usually participate for one – or
more – of four universally compelling reasons:
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
52
Branding and awareness
Marketo (2012), states that a key reason for a business
to participate in an event is to establish and build its
brand. Event marketing allows a company to cultivate
and express its particular identity first-hand. Through
events, a company gain the perfect venue to share its
ideas, thoughts, and name in the exact manner it want
to present them. A company may choose to partake in
an event to align itself with other brands that are
participating in that event – such as complementary
solution providers – or to access a targeted
demographic. Many businesses choose events based on
the branding opportunity afforded by the event.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
53
Cont’d…
Others host events in order to create and showcase the
personality of their business. Hosting events also allow a
company to own vs. rent the attention of its prospects and
customers, which can be more cost efficient. People have an
easier time remembering experiences that
engage all of their senses, so by having a physical presence at
an event, a company reach customers in a very memorable
way. A business can also use its event to associate its brand
with specific ideas and feelings.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
54
Activity
Think about each of the following events in Namibia.
What images do you associate with them?
The NAMA
Wika
The Olympics
The Fashion Week
The Namibian Cup
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
55
Generating leads
According to Marketo (2012) another important reason
businesses choose to participate in an event is to generate
leads. And what better way to do so than to be part of an
event where your target demographic is present? The right
events allow your company to interact with a group of
prospects that already have an interest in who you are and
what you do. An event may not be the first encounter with a
prospective customer, but it can be one of the most
memorable and powerful. Using events to showcase your
solutions is important, but couple that with a strong personal
connection, a platform for conveying thought leadership, all
in a fun, informative, interactive environment, and you have a
recipe for a potentially lucrative relationship.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
56
Cont’d…
If a company is hosting an event, it may be inviting prospects
as well as current customers. The key is to invite those it
know will be interested in the chosen theme and topic of the
event. In other words, to generate quality leads from its
event, you need to determine its target audience. By carefully
segmenting its database and reaching out to the most
interested demographic, a company can attract attendees
that are prospective buyers. And by executing pre- and postevent campaigns and scheduling on-site meetings with
targeted attendees, it can return to the office with a list of
truly qualified leads.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
57
Engaging with prospects and existing
customers
Marketo (2012) also states that events offer an unparalleled
level of customer engagement, with an opportunity for
positive personal interaction that builds loyalty. Plus, every
marketer knows that companies can realise the biggest ROI
on their marketing dollars by retaining and growing existing
customers. The challenge is to gain the attention of a
company’s customers amid the distractions of daily work. At
events, a company enjoy the chance to upsell customers by
introducing them to products or services they may not know
about – or may not realise could address their needs.
Properly planned and executed events can generate a huge
amount of buzz long after the event has ended.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
58
Educating attendees
Most people attend events for one of two main purposes: to
network or to be educated. Both are powerful draws in their
own ways. If an individual is attending for educational
purposes, the information being presented is key. No matter
what type of event a company is hosting, it’s critical to impart
knowledge that the audience will value – and that sets the
company apart. By securing quality, high-profile speakers, a
company can draw a crowd. And by sharing unique insights
that are relevant to the audience, it can advance its
reputation as a thought leader in the industry and establish a
critical connection between the brand and prospective
buyers (Marketo 2012).
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
59
Reflection
Recently Namibia the PoN trough the HP-GSB hosted
the first ever customer care conference. In your
opinion, what do you think are the main reasons for
hosting such an event by the organisation?
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
60
Event Planning Step-by-Step
There are many important and sometimes forgotten
elements involved in planning events. This walk-through can
serve as a basic guide as you begin to plan an event.
1.
Who, What, Where, When, Why?
Work with the members to assess the potential audience
and their needs, interests and the purpose of the event.
2.
Budget
Decide how much of your budget you can and want to spend
on the program. Think about co-sponsorship. If you cosponsor an event, it is recommended that you use a cosponsorship agreement.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
61
Cont’d…
3.
Select a date & reserve a venue
Select a date and time after checking what other events may be scheduled for
that date. Find a venue that is available on your specified date. If the ideal
venue is not available, consider changing the date. Note: if the event is
outside, reserve an alternative inside location in case of bad weather.
4.
Event Details
Set-Up- Arrange the required setup - (chairs, tables, etc.) with the correct staff
(Physical Plant, Event Services, Hotel Conference Planning, etc.) Audio/Visual
Needs- Arrange for technical support with the venue. Food- Be sure to check
the food policy/requirements before you plan for food at your event.
Draw/develop a Gantt chart and a checklist to smooth implementation.
5.
Create a publicity/awareness plan
Make sure you have all the information on whom, what, when, where, why,
and the Plan when ads will run both in print and other media. Plan where flyers
will be distributed. Arrange ticket sales if necessary
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
62
Cont’d…
6.
Examine security issues
Do you need a T-shirt security?
7.
Be attentive at the event
Assess the audience. Look for any safety issues or
risks. Are people interested and enjoying it? How many
people are there? Thank the performer/s at the
conclusion of the event.
8.
After the event
Clean up the venue to the best of your abilities.
Evaluate the program and discuss its success or
problems with your organisation.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
63
Sports and Events Marketing in Namibia
Case study writ up
Activity: Conduct a survey and present your findings
about sport and event marketing initiatives in Namibia
in the last 2 years.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
64
Insert: Sports marketing
On 25 February 2014 Bidvest Namibia handed over playing kits to all 16 teams
that qualified for the Round of 16 of the Competition proper of the Bidvest
Namibia Cup tournament. Selected players of the Namibia Women’s National
team displayed the kits and assisted in officially handing these over.
Theo Mberirua, Director: Commercial & Business Development at Bidvest
Namibia said: “When we do something at Bidvest Namibia we do it properly.
How does the saying go – go big or go home and we at Bidvest Namibia are
proud to be the sponsors of this soccer cup. In order to enhance the
experience for both players and supporters, we provide giveaways such as
branded hats and t-shirts to supporters, full kits as well as other items such as
the Man of the Match trophies, ball boy kits, referee kits, tracksuits and
additional kits for the finalists. All of these elements enhance and elevate the
game of soccer and we hope that it will be an unforgettable experience for all
parties involved – so much so that players, coaches and supporters wish to
repeat to next year.”
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
65
Cont’d…
“As the Namibia Football Association we commend our
partners at Bidvest Namibia for this initiative of allocating all
the participating teams in the Round of 16 with playing kit
and assisting in the growth of our football. Also as a gesture
of friendship and goodwill, Bidvest Namibia management
sent congratulatory letters to all the teams for advancing to
the Round of 16, as the old phrase goes, it’s the small things
that matter and attribute to the bigger picture,” concluded
Barry Rukoro, Secretary General of Namibia Football
Association.
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
66
END OF UNIT 3
SCM812S - Unit 3 - Efigenia Semente PON, Source (Adkins & Peattie,
Kottler, Lee, COLL Guide, Simataa E.) 2015
67