Transcript strategic sports marketing process

CHAPTER 2
CONTINGENCY FRAMEWORK
(应变框架)
FOR STRATEGIC SPORTS MARKETING
CHAPTER OBJECTIVES






Understand the contingency framework for strategic sports
marketing
Describe the strategic sports marketing process
Describe external contingencies and explain how they affect
the strategic sports marketing process
Discuss the importance of monitoring external contingencies and
environmental scanning
Describe the major internal contingencies and explain how they
affect the strategic sports marketing process
Explain and conduct a SWOT analysis
Overview of the Contingency Framework for
Strategic Sports Marketing



Foundation(目标) of any sports organization is to
design and maintain a sound（合理的） and
flexible（灵活的） strategic framework
Strategic framework that suited to the sports
industry is the contingency framework. Why?
Flexible and adaptable to changes in the
marketing environment

New York Mets Marketing Vice President, Michael
Aronin captures the essence of this idea: “ Before, I
had control of the product, I could design it the way I
wanted it to be. Here the product changes every
day and you’ve got to adapt quickly to these
changes.”
Harlem Globetrotters

The Harlem Globetrotters are an exhibition
basketball team that combines athleticism and
comedy.
Contingency approaches




The contingency framework includes three major
components:
the internal contingencies;
the external contingencies
the strategic sports marketing process.
Contingency Framework for Strategic Sports Marketing
fit
Planning
fit
1. Understanding Consumers’ Needs
EXTERNAL
CONTINGENCIES(2)
Competition
Legal/Political
Demographics(人口
统计)
Technology
Culture
Physical Environment
Economy
a. Marketing Research(3)
b. Consumers asParticipants(5)
c. Consumers as Spectators(6)
2. Market Selection Decisions(6)
a. Market Segmentation
b. Target Markets
c. Positioning
3. Marketing Mix Decisions(7-12)
a. Sports Products
b. Pricing
c. Promotion
d. Place
Implementation(13)
Control(13)
INTERNAL
CONTINGENCIES(3)
Organizational Vision
（前景）
Organizational Mission
Organizational
Objectives &
Marketing Goals
Org Strategy
Org Culture



The unexpected changes that occur over the course of
a season or event may be positive or negative.
The changes that occur may be either controllable or
uncontrollable events that impact the sports
organization.
Uncontrollable occurrences are typically in the
marketing environment and are referred to as
external contingencies, while internal contingencies are
within the control of the organization


The heart of the contingency framework is the
strategic sports marketing process, which is
defined as the process of planning, implementing,
and controlling marketing efforts to meet
organizational goals and satisfy consumers’ needs.
The strategic marketing process has three broad
sections: planning, implementation and control.
THE STRATEGIC MARKETING PROCESS
A. THE PLANNING PHASE
STEP 1: UNDERSTANDING CONSUMERS’ NEEDS
1. Marketing Research
2. Consumers as Participants
3. Consumers as Spectators
STEP 2: MARKET SELECTION DECISIONS
1. Segmentation Alternative
2. Target Markets
3. Positioning
STEP 3: MARKETING MIX
B. THE IMPLEMENTATION PHASE
C. THE CONTROL PHASE
planning phase



The planning phase has three steps.
The planning phase begins with marketing
research (Ⅰ) to examine the needs of current and
potential markets.
case of health club










Ⅱ market selection decisions
These include market segmentation, or dividing
consumers into homogeneous(相同的) groups based
on common characteristics.
The similarities among consumers are based on
demographics (e.g. age, sex, income,人口统计),
psychographics (lifestyle心理学),
geographic(where you live),
geodemographic (what people look like who live in a similar
region，区域人口统计特征 ),
benefits (what you want in the sports product),
behavior (consumption and usage patterns)..
Psychographic (e.g. ,personality and lifestyle)

Once the market is segmented, sports marketers
must select the target market(Ⅲ).
Target Market（目标市场）

Once the market is segmented, sports marketers
must select the target market. The target market is
defined as the segment that will allow an
organization to most efficiently and effectively
reach its marketing objectives.
Market Segmentation: P51




S izeable 大小适当(large enough in terms of the number of
consumers)
M easurable 可测量(characteristics of the market are easily
identifiable, such as gender or geographic region)
A ccesible （reachable） 可接近(must have a means of
accessing the consumers)
I dentifiable （demonstrate）可鉴别(consumers within a
market must share common needs, whereas consumers outside
the target market behave differently)


Runner Market
Position




The final market selection decision is positioning.
Positioning refers to fixing the sports product in the
minds of the target market(在目标市场中确定体育
产品).
In other words, how do we want our target market to
perceive(察觉) our sports product? What benefits
do we want to sell?
the case of NBA

Exercise: How is the health and fitness industry
segmented, in general? Describe the segmentation,
targets, and positioning of health and fitness clubs.
Implementation
P58

Organizing 组织
Functional Organization ——carry out by specialized departments
功能型组织
Turbulent environment——flexibility Organization 弹性组织

Leadership and Interaction领导和互动








Resource Acquisition and Allocation
资源的获取与分配
Coordination and Timing of Activities
活动的协调和时间选择
Information Management
信息管理
Leadership and Interaction
Implementation


Implementation or the success of implementing plans
is based on:
how the sports organization is organized, how
leaders communicate and motivate the employees,
the marketing and financial resources available,
and information management.
Control Phase

p60
The control phase is the process of measuring results,
comparing the results to the marketing objectives
and revising(校正) objectives based on the
evaluation of the objectives.
Control Phase








Sales Analysis
Profitability Analysis
year-on-year basis ration
Sales increase 17% compared with the same
period of last year.
link relative ratio
Sales decrease 17% compared with last month.
Customer Satisfaction
Marketing Audit
Sample of Marketing Audit （营销审计） Questions p63
• ⅠMarket Orientation
• 1.Has the firm established a marketing orientation? That is, has the firm
identified the benefits that particular customers seek and developed
programs based on this input?
• 2.Is the firm’s main goal to maximize customer satisfication or to get as
many customers as possible?
• Ⅲ Target market strategies
• 1.Are the members of each product’s target markets homogeneous （均
匀的）or heterogeneous with respect to geographic, socio-demographic,
and behavioral characteristics?
• 2.Is the size of each market segment sufficiently large or important to
develop a unique marketing mix for it?
• 3.Are the market segments measurable and accessible? That is, are the
market segments accessible to distribution and communication efforts?
EXTERNAL
CONTINGENCIES

The external contingencies, or uncontrollable factors,
which influence the strategic marketing process,
include: competition, regulatory and political issues,
demographic trends, technology, sociocultural issues
and the physical environment.
internal contingencies

The internal contingencies, which also impact
strategic marketing decisions, include: vision and
mission of the organization, marketing goals and
organizational objectives, organizational culture
and organizational design issues.
Environmental Contingencies







Competition
Technology
Cultural/Social Trends
Physical Environment
Regulatory/Legal/Political
Demographic Trends
Economy
he Nature of Competition
http://video.sina.com.cn/p/sports/k/v/20
13-03-10/132762148007.html



Direct competition
Substitute (替代）
products
Indirect competition
PESTEL ANALYSIS MODEL
Political（Women）
 Economy （Prosperity/
Recession/Depression/
Recovery）

Social Trends / Cultural
（US Tennis Culture）



Technology（Internet/
TV）
Environment （Climate）
Legislative（transfer）
Internal Contingencies

Organizational Vision

Organizational Mission

Organizational Objectives & Marketing Goals

Organizational Strategy

Organizational Culture







Organizational Vision
The vision has been described as a long-term road map of
where the organization is headed.
The vision should address the following:
What business the organization plan to go from here?
What business do we want to be in?
What customer needs do we want to satisfy?
What capabilities are required for the future?
Organizational Mission


The mission, however, is a written statement
about the organization’s present situation and the
direction of the organization (what business we
are in and who we serve).
The Green Bay Packers’ mission is to be a
dominating force in professional football’s
competitive arena(P92)
 On the field, the Packers will continually strive to
present their fans with the highest level of
performance quality available
 In their operating activities and relations with the
NFL, the Packers will also continually strive for
excellence in the quality of work performed
 Overall, the Packers will commit themselves to
doing their part in representing the state of
Wisconsin with competitiveness, respect, and
dignity





These mission statements address several
key questions:
What business are we currently in?
Who are our current customers?
What is the scope of our market?
How do we currently meet the needs of our customers?

The Li Ning Corporate Mission & Vision Statements
and Core Values
李宁集团公司使命、愿景和核心价值观

Mission（使命）


Through sports, we inspire in people the desire and power to
make breakthroughs
我们以体育激发人们突破的渴望和力量！

Focus on creating professional sports product

Enrich ourselves by the integration of sports into everyday life

Strive for higher-standard breakthroughs

Vision（愿景）

The world’s leading brand in the sports goods industry

Our interim objective before 2008: fortify our globalization competitiveness
in the China market

By 2018: become one of the world’s top five brands.

Derive 20% up of company revenues from international markets


Become a management company of sports brands, utilizing different brands
to cater to different consumers and regions
Become a leader in marketing two or more mainstream sports categories









Core Values（核心价值观）
Our core values stem from athleticism and passion for the
mission
我们的核心价值观源于对运动的崇尚和对事业的激情!
The attraction of sports comes not simply from sports as such,
but more from its underlying spirit. We value sports, but even
more athletic spirit.
Integrity 诚信
Professionalism 专业
Passion 激情
Breakthroughs 突破
Trust 信任
ORGANIZATIONAL OBJECTIVES vs.
MARKETING GOALS




Organizational Objectives - Signposts along the road
which help an organization focus on its long-range
purpose stated in the mission statement
Typically include both financial and strategic
dimensions
Examples of financial include: growth in revenues and
growth in profits
Examples of strategic include: enhance corporate
image and increase customer satisfaction
Relationship Between Levels of Strategy

Corporate Level Strategy

Deflation

Expansion/Merge


Related business
Unrelated diversification


Business Level Strategy
Four approaches to gaining
the competitive advantage.

Low cost leadership

Differentiation（区别、分化）


Market niche（市场定位） based on
lower cost
Market niche based on differentiation

Functional level Strategy
• 组织内部各个部门
• 如：Marketing, Personnel, Operation, Coaches
• Operation level Strategy
• 如： Price, product, promotion, place
SWOT Analysis


Internal Strengths and Weaknesses
a. Resource Capabilities（功能）
b. Marketing Mix Considerations
External Opportunities and Threats

SWOT分析
ＳＷＯＴ分析的主要目的在于对企业的综合情况
进行客观公正的评价，以识别各种优势、劣势、
机会和威胁因素，有利于开拓思路，正确地制定
企业战略。
ＳＷＯＴ分析是把企业内外环境所形成的机会
（Opportunities），风险（Threats），优势
（Strengths）,劣势（Weaknesses）四个方面的情
况，结合起来进行分析，以寻找制定适应合本企
业实际情况的经营战略和策略的方法。下表列出
的是在SWOT分析中一般所需要考虑的因素。
Homework：


Choose a sports related company and do a
SWOT analysis.
We will choose 5 homework to discuss next
week.
Key terms and concepts














Contingency framework for strategic sports marketing
战略性体育营销的应变框架
Contingency strategy
不确定性战略
Control phase
控制阶段
External contingencies
外部不确定性
Implementation phase
执行阶段
Internal contingencies
内部不确定性
Market segmentation
市场细分
Market selection decisions 市场选择决策
Market mix decisions
市场组合决策
Positioning
定位
Strategic sports marketing process
战略性体育营销过程
Target marketing
目标营销
Key terms and concepts












Competition
Cultural values
Culture
Demographic environment
Direct competition
Economic activity
Environmental scanning
Goal
Indirect competition
Macroeconomic elements
Marketing environment
microeconomic elements
Objectives
Organization culture
Organization strategies
Out-of-market technology
Physical environment
Political, legal, and regulatory environment
Strategic windows
Technology
Vision