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Factors influencing event attendance

Motivational factors (Motivation Scale for Sport Consumption) 1. 2. 3. 4. 5. 6. 7. 8. 9. Knowledge Aesthetics Drama Escape Family Physical Attraction Physical Skills (Aesthetics) Group Affiliation (Socialization) Vicarious Achievement

General fan motivational factors affecting the level of sport spectator involvement with two aspects of sport spectator behavior (socio-psychological and behavioral involvements): Perceived value from various product benefits o Defined as the perceived difference between all the benefits and all the costs of consumption o When perceived values of various product benefits exceeds consumers' expectations in their consumption evaluation process, will affect future decision to attend event again favourably. (Overall game experience) Fan identification o the personal commitment and psychological affiliation fans have with a sports team or athlete o participants attended games to be loyal fans that consistently support their favourite teams or players rather than to simply experience a sporting event Involvement opportunity (Most significant) o Refers to a variety of fan services provided by the sport organization to enhance spectator involvement stadium accessibility, convenient transportation to venue, convenient game times, facility aesthetics, information availability on game schedule and ticket price, direct interaction with fans through the team website o Creating or providing various involvement opportunities help organisers facilitate a strong affiliation with fans and hence spectatorship. Establishing fan clubs, creating newsletters Reference groups (Social interaction with significant others) o Defined as individuals who influence the information, attitudes, and behaviors of other group members sharing experiences social interactions enhancing the image of sport products o Reference groups influence spectators to attend the games (rely on personal recommendations, visible information, and self-image from reference groups to inform their decisions to attend games.)

Socio-psychological involvement Spectators' psychological attachment to sporting events is an essential predictor of spectator behavior -> allows marketers to identify the pattern of sport consumer behaviour associated with the different levels of motivation. o Psychological involvement represents emotional responses that spectators experience during the sporting events or are associated with their team in general.

(May not attend event in person, may not be an active long-term spectator, may not display enthusiastic cheering) Self-esteem enhancement (Fans feel an athletes/teams victory is their own victory)

Behavioural involvement However, behavioural aspect of spectators also plays a significant role in sport spectator involvement because a person must participate in sport events in a direct or indirect way to become a sport event consumer. o Considered displays of positive support for the team. (Purchase tickets, searching for information about the team or player, reading sport-related magazines, talking about team/event to significant others) o Should be included and measured to predict sport spectator behaviour Application: - The ideal sport fans are those who have both high psychological and behavioural involvement (Decreased price sensitivity, decreased performance/outcome sensitivity) - To improve the level of sport spectator involvement for fans who have intense socio-psychological involvement rather than behavioural involvement, marketers need to provide convenient and extensive involvement opportunities for their consumers. - Creating an image and devising them that provide their fans and spectators a means of being affiliated and identifying with the team and sporting event.

Segmentation of Fan Market


1. Player - More likely to enjoy watching others compete in that sport (contribute to spectatorship) - Understand the skills required of the athletes that they watch. Seek information about their chosen sport, teams, athletes - Invest considerable time and money in sports in general, fav sport in particular 2. Patriots - View sports as a means of establishing community and national pride (fufills social needs) 3. Appreciators - Admire the skills of athletes - Drawn by the talent and by the aesthetic qualities exhibited in the sport - Not necessarily who wins or loses, rather it is the opportunity to witness excellence 4. Socialites - Sports provide one way in which they can interact with their friends (satisfies their social needs) - Decisions as to which events to attend are significantly influenced by an indivs reference groups. - The alternative entertainment or activities at the venue rather than the sport itself that attracts these fans 5. Friends - Provide support to friends and family members who are participants in the event - DIFF from socialites: not social interaction with their friends that is important - These fans may have a basic understanding of the sport, but there is little or no involvement beyond the effort to follow the exploits of those who are close to them. 6. Voyeurs - Most impt aspect: Sex appeal - Not the sport that they find exciting, but the physical attractiveness of the participants.

Aggregate Participation Market


1. Excitement-seeking competitors - Inclined to engage in risky activities - Mostly male, young, single - View their actions as a competition against others or they may see it as a personal challenge to accomplish something few others can do.

2. Getaway actives - Vacation-prone - Primary motivation is social objectives (Fun with friends, family) 3. Fitness-driven - Primary motivation is personal improvement 4. Health-conscious sociable - Motivated by both personal improvement and opportunities for socialization - Activities not as stressful as those undertaken by the more-active segments 5. Unstressed and unmotivated

Sport Specific Segmentation


1. 2. 3. 4. Different levels of playing ability Different motives for playing Different attitudes towards practice Different frequency of play

Segment the market Target markets are selected from the array of identifiable market segments 1. Sizable a. Number of people, purchasing power b. Niche market can be promising Reachable (Accessibility of group) Measurable

2. 3.

A corresponding marketing mix is developed for each selected target market (Market segmentation and the resultant differentiated marketing strategy to provide a better fit for each consumer) - Using traditional strategies to integrate sports in order to create a sports overlay to sell non-sports products and reach ones target market effectively.

Sponsorship of a sports entity to sell non-sports product Traditional: Coca-cola and Olympics Venue naming rights: Citibank & MLB stadium Property naming rights: OCBC Cycle Singapore 2012 Endorsement: McDonalds & Yaoming Licensing: Volvo & Volvo Ocean

Target market: NBA targeting Chinese fans Product: New model of jogging shoes Promotion: Newspaper ad regarding tickets Distribution Price Traditional: adidas and FIFA World Cup Venue naming rights: Reebok Stadium Endorsement: Tiger Woods & Nike Golf Licensing: New Balance & Melbourne Football Club

Mainstream strategies
Target Market Pricing Decisions o Hotels providing discounts for athletes or fans during sporting events Product o Hospitality package featuring tickets to a sports event (to sell hotel rooms) Place o Marketer selling its goods and services at a sports venue o Marketer selling its non-sports products at a retail store specializing in sports goods Promotion o Advertising o Personal selling Businesses providing tickets for a sports event to clients or prospects o Sales promotion Free sample (distributed outside a sports venue) Contests (chance to win sports event tickets) Point-of-sale display (Signage that features a sports theme at a supermarket) o PR/Publicity Dissemination of positive publicity through the media Aligning with sport for a charitable cause Press release regarding marketers support of a local athlete o EXCLUDES SPONSORSHIP (not based upon any official sponsorship-based relationship with a sports entity) o Emerging promotional strategies Product placement, Virtual advertising

Sponsorship
- Should have a synergistic effect on marketers promotional efforts (Fits with promotional mix) - Investing in a sports property to support overall organisational objectives, marketing goals and promotional strategies - Marketer pays cash or in-kind fee in return for access to the exploitable commercial potential associated with the property. - Sponsor and sponsee have strategic links (VISA credit card and FIFA have similar target markets) Advantages: Credibility (likely to think that the product does indeed have merit, otherwise the marketer wouldnt use it) Improves image o By sponsoring the Volvo Ocean Race, the automaker believes its association with a sport and an event that both appeal to an upscale market will further enhance its own image o Yachting conveys an image of safety and new technology, which is consistent with the image that Volvo seeks to nurture Prestige o Associate with elite events/athletes (that provide an aura of exclusivity) to enhance their own prestige o May not seek to achieve an acceptable return on their sponsorship investment

o Rather seek relationships that consumers will look upon in a favourable way Internal Morale o Employees given the opportunity to become involved with a sponsored property (Attend the event, engage in the entertainment of their companys clients in a hospitality facility that is provided by the sponsored event -> Entertainment opportunity) o Instil a sense of pride within the employees that they are associated with a company that is associated with a popular sport/athlete/event. Sales opportunities o Create greater awareness o Reach new target markets (Sell the product at the event venue, property may become a potential customer ->Philips Electronics providing new TV monitors at sports venues) Access to live audience (enhance consumer receptivity to the sponsors message)

Advertising is Superior Persuasive Message Delivers standardized message Can guarantee reach Easier to evaluate its effectiveness Views as a stand-alone promotional tool Sponsors must spend considerably more money on other promotional efforts designed to support its sponsorship

Sponsorship is Superior Credibility Image Prestige Internal morale Sales opportunities

Access to live audiences

Sponsorship Objectives Drive sales o Through better market penetration and growth in market share o Establish a sustainable competitive advantage (SCA) over others by virtue of its relationship with a sponsored property o Fans of particular events/athletes recognize their sponsors, express a preference for their products over those of their competition o Shape consumer attitudes in such a way so as to achieve a competitive advantage o Overcome advertising restrictions (tobacco products) o Cut through advertising clutter Improve image o Attaining positive public relations Sponsoring events for which there are strong emotional ties within the market (Nikes sponsorship of the Brazilian national soccer team) Capitalize on fans pride and patriotism to create a positive image for itself o Seek sponsorship opportunities that enhance the companys community involvement and portray is as a good corporate citizen Sponsorship of a local amateur sports team or facility Create greater awareness o Increase visibility in the marketplace. o Create awareness of a new product (Coca-colas new energy drink burn entered Formula 1 racing with a sponsorship deal with the Lotus F1 team) Provide hospitality opportunities Enhance employee morale

Sponsorship Components Category exclusivity o Prohibits the simultaneous participation of direct competitors in opposing sponsorship roles. o Goes beyond sponsorship designation (competitors not even able to purchase time for TV advertising) Signage o Reinforce the fact that it is officially associated with the event o Number of signs provided, location of signs Granting of distribution rights for their products at the event venue o Sell their products at the venue (No competitors products can be sold) Hospitality areas Complimentary advertising o Printed event program, free TC spots Free tickets, rights to purchase additional tickets Link to sponsees website Right to use event trademarks and logos Right of first refusal o An agreement that allows a current sponsor the opportunity to assess the new sponsorship program and either accept or reject it before the event solicits sponsors

Leveraging: efforts to support ones sponsorship with additional strategic initiatives (event -oriented advertising) Leveraging techniques o Use theme-based advertising Create advertisements that reflect the character of the event/athlete being sponsored Intensify the relationship between sponsor and sponsee such that consumers recognize the sponsor and are more favourably predisposed to purchase its products o Advertise during the broadcast of the sponsored event, event program o Incorporate the sponsees logos on packaging and in promotional efforts o Provide purchasers of sponsors product to purchase tickets at a discounted price o Engage in cross-promotions with co-sponsors

Ambush marketing: Non-sponsors trying to create the misperception among consumers that they
are associated with a property/event. Why ambush: High costs of rights fees It works Consumers not offended by ambushers Attitudes within the industry changing (evolving from parasitic to appropriate) Category exclusivity may prevent company from being an official sponsor

Piracy vs Ambush Marketing Illegal activities o Infringements of intellectual property rights (unauthorized use of an events trademarks in advertisements, sale of counterfeit merchandise) o An overt claim to be officially related to a property Ambush marketing legal

Ambush Marketing Strategies 1. Sponsor media coverage of the event Organisers do not control the broadcast, have no influence as to which companies are allowed to advertise during the event Hence, ambushers can purchase time to deliver their advertisements during the broadcast of the event Ambushers do not reach the live audience, they reach the media-based audience 2. Sponsor subcategories Ambushing up i. Involved with an official sponsorship of some lower level but uses techniques designed to create the false impression that it is involved with the event at some higher level of sponsorship ii. No need for the marketer to be targeting a direct competitor 3. Make a sponsorship-related contribution to the players pool Players salaries may be supplemented by contributions from which the contributor may be acknowledged via logos on uniforms or recognition in TV interviews. (Speedo and Michael Phelps) 4. Purchase advertising time during rebroadcast 5. Engage in advertising to coincide with the timing of the event

When should ambush marketing be considered? When a firm is doing a poor job supporting its official sponsorship When there is a good fit with the target market When adequate resources are available When there is company wide support for the strategy When it does not conflict with the ambushers existing sponsorships When the ambusher is prepared for controversy When it is aware of the legal restrictions

Protection from Ambushers Sponsors should learn how to ambush so that it can better assess its own vulnerability Leverage the sponsorship Clean stadium o Devoid of non-sponsor signage o Limit a non-sponsors ability to advertise or place signage in close proximit y to the event venue) Establish more control over advertising o Resistance by broadcasters as they sell time to advertisers

Make a Time-buy Restriction on the use of virtual advertising Computer-generated imagery that appears as signs on broadcast Broadcasters could place ads for ambushers on the field of play or on structures such as signs and scoreboards (Existing signage of a sponsor could be supplanted by virtual signage for the ambusher) Limit the ability of teams and players to endorse brands that are not officially associated with their events o Inhibit players ability to supplement their income with endorsement opportunities Educate consumers o Publicize sponsors and express appreciation for their role in staging the event Engage in surveillance programs Limit number of sponsors o More sponsors lead to confusion, more confusion opens the door to effective ambush marketing Event could incorporate the sponsors name

o o

Endorsement
- Special case of sponsorship (Personality sponsorship) - MATCHING PROCESS (Celebrity needs to fit): Target market, Product, Brand Endorsement Applications: I use it, so should you I am an expert, and I think that you would be smart to use this product: I think its cool, so you should use it o Does not attempt to portray the endorser as either a user of the product or an expert on the product category o Relies upon the ability of the endorser to break through the clutter of advertising in todays marketplace o Admiration of the spokesperson transferred to the product

Factors favouring use of athletes as endorsers More effective with sport-specific product Recognition can help cut through clutter Meaningful recognition rates for association between athlete and brand

Factors impacting endorsement effectiveness Endorser is a high achiever Has believability/credibility o Why is the celebrity endorsing the product? o When Tiger Woods five-year contract with Rolex watches expired, he signed a new contract with competitor Tag Heuer. Was it because Tag Heuer offered a more lucrative deal, not because they produced a superior watch? Switch financially motivated?

If the endorsers is being cast as an expert, then are must be source credibility. (Is her truly a knowledgeable source of information?) Is known Is Likable/Popular Is recognizable (face and name) Provides ease of recall o Spokesperson can be counted on to secure a place in consumers memory o When consumers see the product. Endorser will come to mind o Achievement needs to be combined with a meaningful frequency for exposing the target market to the endorsement message Is congruent with target market Is physically attractive (leads to a better perception of the product, but may not lead people to purchase the product) Provides prospects for continuity o Endorsement campaigns tend to be more effective when there is an ongoing, longterm relationship o Does not lose market appeal

Problems with celebrity endorsements The Criminal The Prima Donna (difficult for the endorser to accept a secondary role, product may be relegated to secondary focus instead) The Fading Star The Lightning Rod o Public offended by statements or positions taken by endorser. Marketer pressurized to drop the controversial spokesperson The Tongue-tied (Unable to make impromptu comments regarding product, reduce believability) Ambush marketing o Occurs when a celebritys name or likeness is used without the legal right to do so. (Piracy?) o Attempts to convey the ideal that the celebrity endorses the product Costs (Worries that high cost will be passed along to the consumer in the form of higher prices) Misrepresentation of use o Endorsement conflicts (athletes endorse one brand of product while the governing body involved with the athletes sport endorses another brand) o May seem that athlete reluctant to full embrace their sponsors Unwholesome non-sport products being endorsed by celebrities Overexposure (adversely affect endorsers effectiveness)

Licensing
- A value-adding process that provides revenue generating opportunities via the conveyance of the right to use another organizations intellectual properties for commercial purposes Scope of the agreement Specific products for which licensing rights will be granted

Degree of exclusivity Geographic scope

Benefits for the licensor Revenue stream No significant investment required (licensee bears the risks associated with the manufacture, distribution and marketing of officially licensed products) Broader product assortment allows the licensor to reach market segments that might otherwise be inaccessible o Array of products bearing the trademarks of the licensor will include many that are outside its core business. Licensor is able to ensure that products beyond its area of expertise are available for consumers. Create consumer awareness and interest Opportunity to control the standards of quality for the products and array of products bearing its trademarks o Firms that seek to enter and agreement as a licensee have to seek approval from licensors first. Required to submit exact replicas of the products that they are seeking to manufacture and sell o This process allows the trademark owner to select only those that meet specific standards o Protect its image

Benefits for the licensee Capitalize on the licensors brand equity Capitalize on short-term phenomena Capitalize on economies of scale Attain a higher level of profit because of the new price point that is reached by virtue of the addition of a popular logo

Strategic initiatives for sports products


Spectator sports - Selling tickets to sports events - Changing the core product (the game itself, whatever takes place on the field of play, including the manner in which it is conducted, the interpretation of rules and regulations) Should have positive economic consequences Should not be made on the basis of implications for the media Tradition is often is the basis for resisting change o Use dramatic changes as a way of differentiating their version of a sport from the original version o Capitalize on the strengths of a sport and implement changes that overcome its perceived weaknesses (Increasing the intensity of action and the level of scoring) Core changes are often based upon the emergence of competition and its impact on the status quo Core alterations will not overcome poor quality on the field of play (low-quality imitation of a sport)

Instead of changing the core, consider changes to the peripheral product o Elements surrounding a game over which the organizer can exercise some reasonable level of control (entertainment during intermission, post-game activities)

Participation sports (Product-focused) - Efforts to increase the number of individuals who engage in sports using a traditional marketing mix o Establishment of competitive amateur leagues o Provide trials capitalize on the sport organizations sponsorship of entity (star athletes directly endorse the sport->sports-dominant)

SASS (Sporting goods, apparel, athletic shoes, sports-related products) - Demand a direct outgrowth for the demand for spectator and participation sports, but not always the case - With the ability to communicate with individual consumers, we are now witnessing the advent of oneto-one marketing (marketer has to now customize its efforts to coincide with the characteristics of an individual member of its target market) -> customization services New target markets require different sporting goods New participation sports emerge or are introduced in new markets Participation rates Introduction of new products Modifications to existing products New players create opportunities Subject to style changes (self and team) -> Emphasis on style , fabrics, brands Part of everyday wardrobe now Not just for athletic endeavors

Price considerations
Factors that influence price 1. Situational factors Unusual circumstances that tend to impact consumer behaviour Result in a consumers decision to make a purchase that he could not make under normal circumstances (unplanned) Teams performance (Winning creates demand, affects ticket sales for the following season) Teams move to a new stadium 2. Costs 3. Prices charged by competition 4. If supply exceeds demand, prices tend to gravitate downwards 5. Marketing objectives

Does the organization want to covey a prestige image and target an affluent market? Does it prefer to pursue the mass market? 6. Legal considerations (Regulations restrict the price-setting flexibility) 7. Fans perception of the quality of the service encounter (beliefs and attitudes towards the product) Some sports perceived as superior products as compared to others Willing to pay more if facilities are views in a better light (stadium exuded a fantastic atmosphere) Fans enjoyment not just measured in terms of quality of play, but the whole match day experience 8. Develop a pricing strategy that is consistent with the other elements of the marketing mix

General Implementation Strategies 1. Cost-plus Buyers pays all of the costs associated with a product along with a fee to the seller Development of new products (Pricing of a new stadium: Final price charged to the buyer includes direct costs such as those incurred in the design and construction of the stadium plus a pre-determined fee that is stipulated in the contract) 2. Markup pricing Starts with the cost of an item as the base and adds a specified percentage of the cost to determine the final price 3. Promotional pricing 4. Bidding 5. Yield management Used by marketers of spectator sports (attempt to fill up empty seats by offering discounts or complimentary tickets. Look good on TV, pay to park and purchase a variety of sports-related products at the venue) Goal is to match supply with demand 6. Target return Marketer has a firm understanding of its costs and a reliable sales forecast Marketer seeks to attain a specified ROI This approach applied to special events that have a high probability of selling out. Marketer can hence estimate its fixed and total costs and the number of fans who will purchase tickets. By having a targeted ROI, the marketer can then determine the price that will lead to the achievement of its profit goal

Pricing Applications for sports products Spectator sports 1. Price tiering 2. Variable pricing (establish different prices for the same service, based on timing) 3. Value pricing

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