This document discusses relationship marketing in the sport and leisure industry. It begins by explaining the difference between transactional marketing, which focuses on individual exchanges, and relationship marketing, which aims to build long-term relationships between organizations and customers. Relationship marketing seeks to develop loyalty, brand awareness, and additional value for consumers. The document then examines the types of relationships in the sport industry, including business-to-business relationships between organizations and business-to-consumer relationships between organizations and individual customers or fans. It notes that relationships evolve over various stages and can be characterized based on the linked benefits and loyalty they provide.

1. SPO 028-1: The Sport and
Leisure Industry
Relationship Marketing

2. In This Session We Will Address…
1. The difference between transactional marketing and
relationship marketing.
2. What constitutes a relationship between organisations or
between organisations and consumers.
3. The types of relationships in the sport & leisure industry.

3. Transactional Marketing
• Traditionally sport marketing has been considered from a
transactional point of view.
• Transactional Marketing seeks to facilitate an exchange of
products and/or services for money.

4. But…
Is this the optimal way for organisations to be engaging with
consumers in the Sport & Leisure industry?
Why?

5. Relationship Marketing
Many sport organisations have adopted an approach we call
‘relationship marketing’.
“The goals of relationship marketing are to build long-term
relationships with the organisations best customers, generating
further business and ultimately profit. It is also designed to contribute
to strengthening brand awareness, increase understanding of
consumer needs, enhance loyalty and provide additional value for
consumers.”
Stavros et al (2008)

6. Relationship Marketing
• An organisation employs relationship marketing to develop its relationship with those
from outside the organisation, whether that be customers or other organisations.
• Relationship marketing's objective is to build loyalty by strengthening the
organisations relationship with its customers.
• It is based on the notion that it is not the exchanges (product for money) per se that
are the core of marketing.
• Rather, exchanges take place in ongoing relationships between parties.
• The relationship is with the brand, NOT the individual products.

7. Relationship Marketing
Organisations ultimate objective is to build a relationship with people
from ‘womb to tomb’.
(Young soccer fans often buy, or get their parents to buy, a replica
jersey as a transaction, adults often have a catalogue of experiences
with the team in question and are buying their jersey as one of many
exchanges in their relationship. The soccer club will seek to build a
relationship with the child to build loyalty.)

8. Relationship Marketing
• The understanding within organisations of the benefits of relationship marketing
have led to a paradigm shift in marketing.
• Relationships offer an opportunity for an analogous message between those in the
relationship. They both get to portray who they are through the relationship between
the two, or more, organisations.
• Relational approach suits sports organisations better than the transactional
approach because sports organisations are network based and operate in a system
formed by numerous stakeholders (those who are affected by the process and
outcome of an organisations objectives).
• The core of the system is sport itself…

9. A Network with Sport at its Centre
Local Public
Organisations
Consumers
Charities
Private
Sporting
Facilities
Sponsors
Sport
Technology
Sports
Stores
Sport
Professional
Clubs
Participants
Non-profit
Organisations
Universities
Collages
Events
Amateur
Clubs
Public
Sporting
Facilities
National Public
Organisations
Fans
Gyms
Stadia
Equipment
Manufacturers
Public
Schools
Private
Schools
Media
Apparel
Manufacturers
Professional Athletes

10. Relationship Marketing
• Issues facing sports organisations are often complex (lack of
resources, difficult to reach target markets, etc.)
• It can be difficult for an organisation working in isolation to achieve
its goals.
• Therefore sports organisations need to join forces with other
parties to optimise their impact (like the example we saw in week 1
of the Table Tennis program in Nottingham which saw numerous
organisations forming a relationship to deliver an 8 week block of
coaching).
• To build a relationship an organisation must first determine which
parties have matching or complementary goals and identify ways in
which they can work together.

11. So Relationship Marketing is…
“the process of identifying and establishing, maintaining, enhancing and
when necessary terminating relationships with customers and other
stakeholders, so that the objectives of all parties are met”
Gronroos (2004, p.101)

12. Why Terminate a Relationship?

13. Relationship Marketing
• Concept of a relationship is a series of interactions between
two parties with each interaction contributing to the evolution
of the relationship
• Each relationship has a content that obtains benefits for the
parties involved.
• Long term development of relationships contributes to the
formation of links. Relationships will illicit one or more of the
following links between members of the relationship…

14. Links Within a Relationship
Social links
One of the cornerstones of the sport system.
An organisation that helps an individual or
group of consumers socialise or form new
friends forms a social link.
Functional links
Related to the use of a product or service.
The user of a pair of running trainers forms
a functional link with the manufacturer or
distributer.
Commercial links
Based on the construction of relationships
that provide economic benefit.
A sports team and their sponsor have a
commercial link.
Emotional links
Interaction with the organisation and their
product or services produce emotions that
hopefully will be positive.
Fundamental for a sports club.

15. Marketing Relationships in Sport
Two main types of relationship are formed…
Business to Business (B to B) relationships.
Business to Consumer (B to C) relationships.

16. Business to Business Relationships

17. Business to Business Relationships

18. Business to Business Relationships

19. Business to Consumer Relationships

20. Stages of a Relationship
Sports organisations must develop relationships with their
stakeholders and these relationships constantly evolve.
This evolution involves following stages:
1.
Start: Involves creating an initial interaction.
2.
Development: Involves an increase in the frequency of
interactions, an increase in involvement and the development of
trust.
3.
Established relationship: Fewer demands are made by and on
both parties and the relationship offers much higher rewards.
4.
Decline: Consists of a gradual deterioration in the relationship.

21. Catagorising Relationships
• Relationships, whether they are B to B or B to C, can be
characterised in various ways:
o What are the linked benefits emanating from the relationship?
(Commercial, functional, social, emotional.)
o Loyalty. (Is it born of a functional need for the organisations
products/services or is it emotional?)
o The status of the parties in the relationship. The status of an
organisation or consumer to another organisation can evolve
from customer to client, and from client to partner.

22. We have addressed…
1. The difference between transactional marketing and
relationship marketing.
2. What constitutes a relationship between organisations or
between organisations and consumers.
3. The types of relationships in the sport & leisure industry.

23. For next week…
• Use today's session as a starting point for your own research into
relationship marketing (you won’t struggle to find literature on the topic!).
• Use the university library, digital library, Discover and Google Scholar to
delve deeper into the topic.
• Particularly look out for any studies referring to different types of B to C
relationships and any interesting examples of B to B relationships where
the two organisations were able to achieve objectives they mat not have
been able to without the relationship they formed.
• Investigate what is meant, in this context, by the term ‘prosumer’.

24. References
Beech, J. and Chadwick, S. (2007) The Marketing of Sport. Harlow: Prentice Hall.
Desbordes, M. and Richelieu, A. (2012) Global sport marketing: contemporary issues and
practice. New York: Routledge.
Gronoos, C. (2004) The relationship management process: communication, interaction, dialogue,
value. Journal of Business and Industrial Marketing, 19(2), pp.99-113.
Hinch, T. and Higham, J. (2004) Sport Tourism Development. Clevedon: Channel View
Publications.
Stavros, C., Pope, N. and Winzar, H. (2008) Relationship marketing in Australian professional
sport: an extension of the Shani framework. Sport Marketing Quarterly, 17(3), pp.135-145.
Stewart, B., Smith, A. and Nicholson, M. (2003) Sport consumer typologies: a critical review. Sport
Marketing Quarterly. 12(4), pp.206-216.
Torkildsen, G. (2005) Leisure and Recreation Management. New York: Routledge.
Williams, J. and Chinn, S. (2010) Meeting relationship-marketing goals through social media: a
conceptual model for sport marketers. International Journal of Sport Communication. 3, pp.422437.

25. SPO 028-1: The Sport and
Leisure Industry
Relationship Marketing