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  • Sports products or non sports products, integration concerns the involvment with a sports entity and level of in some form of sponsorship. Marketing of sport included spectator sport, apparel, ect and participation…level of integration traditional and sponsorship based. Traditional does not include relationship marketing but author says its all encompassing
  • Social media offer huge level of connectivity creating stronger ties to brand/team. Helps there voice be heard/be a part of active fan community. Inclusion and comradery
  • Not explained well and limited role in traditional marketing mix. Four p’s built for consumer goods context and directly to all aspects of mktg has damaged marketing in the sense that it fails to capture the interaction and relationship aspects of marketing process. 4 P’s to limited in scope. Consumer is to passive. Can be seen as manipulative
  • Types of interaction show not a passive consumer
  • Use crm to contact fans directly. Loyal fans/customers can feel betrayed from a product/league. Use crm for more than ticket holder databases and email distribution. Use it to build honeset relationships and customize communications. Offers are well targeted and relevant to individual segment of the fan base
  • Not just about attendance or profits. Fundamentally responsible to act in manner that positively contributes to communities in which they exist. Social entrepreneurship involves increasing social and environment positive impacts. Goes a long way to building great relationships with the community surrounding your team. Further discussed in other research. Direct connection to environment and community. Growing concern over social issues means that support of these issues could increase social standing within community
  • Thorough and systematic reasearch/approach both the benefactor and beneficiary must have a lot of knowledge regarding consumer interest and support of cause. Cause related marketing relationships based on inadequate information and a lack of planned objectives and goals related to both parties as well as the consumer could make an inefficient relationship and could have a negative effect for both parties.
  • More casual fans may look to service delivery more as mentioned in my inspiration article. Employees in stadium and phone contacts, food quality, facilities ect. may be more important to them than die hards. Experience should be at a premium for them all
  • As mentioned previously, emotion is a big unique factor in sports. Capitalize on it. Fanatics for sport/team. Those who are fanatics of sport and live in area/attend games regularly could turn to behaviorally loyal to the team with focused relationship building strategies. Fans have dreams hopes and desires for team. Fans can bask in reflected glory as mentioned earlier. Fans feel as if it is there club, and want active input into club or have recognition for there loyalty
  • Staff is biggest customer touch point and management and them must be on the same page. Similar to the proposed model in the team approach. This will avoid confusion. Highly involved and committed fan base. Are not indifferent when it comes to changes and want involvement. CRM isn’t enough. Culture of organization must change as well

Solo mp presentation Solo mp presentation Presentation Transcript

  • Relationship Marketing: Current and Future Impact in Sports Business By: Michael Coe Phone: (209) 479-1578 Email: [email_address] , Aerofuel@mail.fresnostate.edu
  • Agenda
    • Inspiration for research
    • Industry Statistics/Trends
    • The spectator as the consumer
      • Fan motives
    • Applying Kelman’s approach to attitude change to the sport industry
    • Relationship marketing/Creating long term fan commitments
      • Academic research and real life applications
  • Consumer is the Arbiter of Quality
    • If brand is a tangible good,
      • Consumer evaluates brand on how well brand performs as expected/promised through MKTG communications
    • With service brands,
      • Consumers must almost always rely primarily on the service EXPERIENCE and how it was DELIVERED to decide on quality
    (Little, 2009)
  • (Little, 2009)
  • Sports Industry Overview
    • Major League Baseball (MLB) Revenue
      • $6.8 Billion
    • National Football League (NFL) Revenue
      • $7.8 Billion
    • Estimated Size of Sports Industry in U.S.
      • $414 Billion
    • Annual Company Spending on Sports Advertising
      • $27.3 Billion
    (Plunkett Reseaerch, Ltd., 2010)
  • Sports Marketing Domains
    • Two dimensions within sports marketing industry:
      • Marketing of sports products
      • Marketing through sports
    • Type of product sold & level of integration create four strategic domains for marketing
      • Theme, alignment, product, & sports based
    • Focus on marketing sports product
      • Author does not include relationship marketing as a focus
    (Fullerton et al., 2008)
  • Industry Forecast From Leaders
    • Emotional spend as important as financial
      • Highlights fact that relationships in sport are key
      • Experience for fans at events of utmost importance
    • Preparation & commitment to fan leads to success during good and bad times
    • Effectively managed social media will aid in development of fan relationships
      • Open communication to build fan trust
      • Open to opinions and feedback
    (Kadlecek, 2010)
  • Spectators as Consumers
    • Traditional marketing approach criticized for not including interaction and relationship aspect of marketing
    • Considering spectators as consumers has given new importance to relationship marketing theory
      • Four P’s not applicable to all settings
    • Relationship marketing being called upon as new marketing paradigm
      • Attracting, maintaining, & enhancing
    (De Burca et al., 1995)
  • Fan Interaction & Relationship Formation
    • Studies in sociology and psychology show ways spectators interact/form relationships
      • Identification with teams/heroes, expertise in stories/stats, mock arguments/administration
    • Nature of sport allows consumer to consume/interact long after game is over
    • Relationship marketing allows interaction dynamics to be captured
      • Sport spectators have strong desire for continuous service
        • Building relationships provides great dynamics for this
    (De Burca et al., 1995)
  • Motivational Profiles of Sport Fans
    • Research indicates that the motivation of fans of aggressive sports are similar
      • NHL, NFL, NBA, MLB, & Fights
    • Group affiliation scores are very high in this target
      • Shows that Relationship Marketing can be beneficial because relationships are wanted by these fans
    (Wann et al., 2008)
  • Applying Kelman’s Functional Approach to Attitude Change
    • Relationship marketing attempts to direct attitudes
    • Understanding the psychology behind attitudes makes it easier to change them
    • Consumers fall into one of three motivational levels
      • Compliance
      • Identification
      • Internalization
    (Bee et al., 2006)
  • Compliance
    • Most superficial level of social influence
    • Consumers purchase/take part in activity in order to gain or avoid social rewards
      • May avoid wearing/supporting losing teams to avoid embarrassment
    • Fan loyalty programs designed to lure fans to ballpark and counteract this
      • Once external reward is removed, relationship ends
    (Bee et al., 2006)
  • Identification
    • Tendency for sport spectators to bask in reflected glory (BIRG)
      • Self-esteem function
    • Perceived overlap of someone’s own self-image and the success of a team/player
    • At this stage, fan is more likely to maintain and create a successful relationship
    (Bee et al., 2006)
  • Internalization
    • When an individual’s behavior is influenced through shared values
    • Enduring & Long-term
    • Fan relationships are result of strongly held beliefs that are congruent with team/player
    • Teams should try and match the values of target consumers with those of organization
      • Result = more intense fan behavior
    (Bee et al., 2006)
  • Influencing Fan Loyalty
    • Loyalty viewed as a developmental process
    • Research shows precursors to becoming a loyal fan include:
      • Involvement
      • Fan attraction
      • Psychological commitment
    • Organizations increasing effort to promote participation and education in sport
    • Anaheim Ducks The Rinks
    (Bee et al., 2010) (Anaheim Ducks News, 2009)
  • Customers/Fans for Life
    • CRM should not be used in sports the same way it is used in other business sectors
    • CRM first used to handle season ticket sales
      • Failed in making significant impact
    • CRM in sports should include:
      • Web sites, e-commerce, online ticketing, player/team contact points, COMMUNICATION
    • All about the fan experience/personalization
      • Regardless of results on playing surface
    (Weinberger, 2004)
  • Post-Strike NHL’s Use of CRM
    • All sport franchises should use CRM to be proactive
      • Communication with fans saved NHL
    • Two way relationship
    • Provide as many customer touch points as possible to receive fan feedback and info
    • Used CRM to customize email campaigns, special offers, & promos
    (Beasty, 2005)
  • Role of Social Responsibility in Sport Industry
    • Organizations have power to impact/influence quality of life for:
      • Employees
      • Customers
      • Shareholders
      • Community members
    • CSR goes a long way in shaping perception
    • Concept of social entrepreneurship important
    • Growing in business and popularity sports organizations are often seen and associated not just with the sport, but with the community
    (Ratten et al., 2010)
  • Cause-Related Marketing in Sport
    • Sports organizations attempt to associate themselves with good causes
    • Both charitable and valuable to business
    • Strategic potential not yet thoroughly examined in a sports scenario
    • Can provide competitive advantages:
      • Improving consumer’s attitudes toward team
      • Repurchase intent
      • Team/organization reputation
      • New customer acquisition
    (Kim et al., 2010)
  • Cause-Related Marketing Impact
    • Consumers pass through psychological stages before reaching purchase decision
    • Study showed that cause-related marketing was not the sole cause of re-attendance
      • Instead, a primary factor in creating a positive attitude toward the organization
    • No linkage was found in regards to fans perception of altruistic or monetary motives
      • Implies that this strategy has appeal to fans
    (Kim et al., 2010)
  • Cause-Related Marketing Implementation
    • Cause-related marketing gaining relevance as a tool to switch behaviors of consumer segments
    • Proper implementation & execution can lead to:
      • Increased consumption patterns
      • Increased loyalty
    • Sport properties must be thorough in implementation
      • Must know consumer interest and support of cause
    (Irwin et al., 2010)
  • Fan Commitment Research
    • Fan’s overall satisfaction and perceived communication effectiveness =
      • Trust & commitment with sport property
    • Level of commitment to sport organization can influence the effectiveness of cause-related marketing
    • Overall, building a trusting relationship with fans will make lucrative sponsorships more enticing for other companies
    (Hong, 2005)
  • From CRM to FRM (Fan Relationship Management)
    • CRM = mixture of transaction and relationship marketing
    • ‘ Fan Relationship Management’ aims to learn from both successes and failures of CRM
    • In the sports context, special characteristics of the sport/fans must be considered
      • Can’t effectively implement CRM or relationship strategies unless considered
      • A simple ticket sales mindset to marketing sports franchises comes at the cost of relationship building & long term success
    (Adamson et al., 2006)
  • FRM Means Commitment to Fan
    • Primary attributes of relationship marketing
      • Dialogue, trust, & mutual respect
    • Shared ideals, mutual benefit, and a commitment to continue the relationship
    • Commitment to customers/fans needs to take higher priority than short term profits
    • CRM and RM should be strong held beliefs that are held throughout the organization
      • Service experience key for all fans
    (Adamson et al., 2006)
  • The Role of Emotion and Camaraderie
    • Move beyond selling focus, Move towards the ethos of learning and growing together
    • Sports clubs need to segment fan base
      • Fans differ in value to the organization
      • Loyalty
      • Psychological and physical needs from team
    • Casual fans and fanatics have different needs
      • Casual fans could transition to greater involvement
    (Adamson et al., 2006)
  • A Team & Fan Based Approach
    • Don’t allow relationship management to be stolen by a single department
      • Technology not the sole solution
      • A customer focus is
    • Concentrate on people issues
    • Communicate with staff constantly
    • Communicate changes with customers/fans
    (Adamson et al., 2006)
  • Bibliography
    • Adamson, G., Jones, W., & Tapp, A. (2006). From CRM to FRM: Applying CRM in the football industry. Journal of Database Marketing & Customer Strategy Management, 13 (2), 156. Retrieved from
    • http://search.proquest.com/docview/233315600?accountid=10349
    • Anaheim Ducks News. (2009). Westminster ICE Added to THE RINKS. Anaheim Ducks Official Website. Retrieved from http:// ducks.nhl.com/club/news.htm?id =490588
    • Beasty, C. (2005, The post-strike NHL: Set to score: CRM. Customer Relationship Management, 9 (10), 19. Retrieved from http://search.proquest.com/docview/222788059?accountid=10349
    • Bee, C. C., & Kahle, L. R. (2006). Relationship marketing in sports: A functional approach. Sport Marketing Quarterly. 15, 102-110. Retrieved from http://business.nmsu.edu/~mhyman/M454_Articles/%28RM%29%20Bee_SMQ_2006.pdf
    • Bee, C. C., & Havitz, M. E. (2010). Exploring the relationship between involvement, fan attraction, psychological commitment and behavioural loyalty in a sports spectator context. International Journal of Sports Marketing & Sponsorship. 140-157.
    • de Burca, S., Brannick, T., & Meenaghan, T. (1995). A relationship marketing approach to spectators as consumers. Irish Journal of Management, 16 , 86. Retrieved from http://search.proquest.com/docview/207642923?accountid=10349
    • Fullerton, S., & Merz, G. R. (2008). The four domains of sports marketing: A conceptual framework. Sport Marketing Quarterly, 17 (2), 90. Retrieved from http://search.proquest.com/docview/227963714?accountid=10349
    • Hong, J. (2005). The effects of sport property relationship marketing on consumer sponsorship evaluation. ProQuest Dissertations and Theses, , n/a. Retrieved from http://search.proquest.com/docview/304994246?accountid=10349
    • Irwin, R. L., Lachowetz, T., & Clark, J. (2010). Cause-related sport marketing: Can this marketing strategy affect company decision-makers? Journal of Management and Organization, 16 (4), 550. Retrieved from http://search.proquest.com/docview/822934254?accountid=10349
    • Kadlecek, J. (2010). Industry insider: Sport marketing forecast. Sport Marketing Quarterly, 19 (1), 4. Retrieved from http://search.proquest.com/docview/228090144?accountid=10349
  • Bibliography
    • Kim, K. T., Kwak, D. H., & Kim, Y. K. (2010). The impact of cause-related marketing (CRM) in spectator sport. Journal of Management and Organization, 16 (4), 515. Retrieved from http://search.proquest.com/docview/822934212?accountid=10349
    • Little, A. B., & Little, D. W. (2009). The "home team" approach to service quality: Linking and leveraging communications between human resources, operations and marketing. Journal of Organizational Culture, Communication and Conflict, 13 (2), 57. Retrieved from http://search.proquest.com/docview/216591055?accountid=10349
    • Plunkett Research, Ltd. (2010). Sports Industry Overview. Plunkett Research, Ltd. Industry Statistics, Trends and In-depth Analysis of Top Companies. Retrieved from http://www.plunkettresearch.com/sports%20recreation%20leisure%20market%20research/industry%20statistics
    • Ratten, V., & Babiak, K. (2010). The role of social responsibility, philanthropy and entrepreneurship in the sport industry. Journal of Management and Organization, 16 (4), 482. Retrieved from http://search.proquest.com/docview/822934251?accountid=10349
    • Wann, D. L., Grieve, F. G., Zapalac, R. K., & Pease, D. G. (2008). Motivational profiles of sport fans of different sports. Sport Marketing Quarterly, 17 (1), 6. Retrieved from http://search.proquest.com/docview/227990061?accountid=10349
    • Weinberger, J. (2004). Customers for life: CRM. Customer Relationship Management, 8 (7), 32. Retrieved from http://search.proquest.com/docview/222787705?accountid=10349