ADVANCED THEORY AND

PRACTICE IN SPORT
MARKETING
This page intentionally left blank
 ADVANCED
THEORY AND
PRACTICE
IN SPORT
MARKETING

Eric C. Schwarz and

Jason D. Hunter

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ACKNOWLEDGMENTS,
DEDICATIONS, AND
EPIGRAPHS

Marketing is the Oxygen of Business – Neil Parmenter

hence…
Sport Marketing is the Oxygen of Sport Business!

DR. ERIC C. SCHWARZ

I would like to dedicate this book to the memory of my father, Rolf Schwarz.
His wisdom, intelligence, and strength are foundations of my being, and I hope
somewhere he is looking down and is proud of this project, of what I have
accomplished, and who I have become as a person.
I am personally indebted to my wife, Loan, whose love and support has been
unconditional during the writing of this book, and always. I could not have
completed this project without her calming influence and belief in my abilities.
I love you and thank you!!!
I would also like to acknowledge the love and support of my mother,
Charlene, who has always been there to lend a hand during times of turmoil, an
ear in times of confusion or frustration, a voice as one of my biggest support-
ers, and has always shown unconditional love to me. Thank you for everything
you have done to help me be where I am today!
In addition, I would like to show my appreciation to my best friend and co-
author of this book, Jason Hunter. We have been through a lot over the past 20
years of friendship, getting through numerous obstacles and having many suc-
cesses. I thank you for your efforts on this book and for your friendship.

v
 DR. JASON D. HUNTER

I owe thanks to Mariann, my wonderful wife, and three children, Zachary,

Morgan, and Jake. Without their time and encouragement, there would not
have been enough hours in the day to complete this project. I also would like to
thank my friend, colleague, and co-author Eric Schwarz. Eric and I have known
each other for 20 years, since back when we both received our undergraduate
degree from Plymouth State University in New Hampshire. I am very thankful
for the educational base and opportunities that Plymouth provided for me, and
for the lasting friendships that developed from there.
Finally, I owe special thanks to my parents Jay and Merrylyn Hunter. I owe
all that I am today to them. Without their love, support, and moral judgment,
I would have never seen the true benefits of education and strength of family.

We would be remiss if we did not acknowledge those people associated with

the completion and publication of this book. First, we would like to thank Dennis
McGonagle from Butterworth-Heinemann/Elsevier in Boston. We had just lost
our book contract with another company because they were sold, and Dennis
had a foresight to see the value this book could bring to the overall body of
knowledge in sport education. Thank you for believing in our concept and mak-
ing this book a reality. Next to thank would be Fran Ford from Butterworth-
Heinemann/Elsevier in Oxford. We could not have completed this book without
your input, professionalism, and overall diligence!!! You have been a breath of
fresh air after previous bad experiences with publishers, and we are forever
grateful that you were our partner in this project. Thank you. Special thanks goes
to Mani (Praba) Prabakaran from Charon Tec in India for your outstanding han-
dling of the editorial and typesetting stages of producing this book. Finally, thank
you to Julie Trinder, Stephen Pegg, and the rest of the team at Butterworth-
Heinemann/Elsevier for your assistance in making this book a reality!!!

vi AC K N OW L E D G M E N T S, D E D I C AT I O N S, A N D E P I G R A P H S
 CONTENTS

Preface xiii
Pedagogical Features xix
Critical Thinking xxi
Supplements xxiii
About the Authors xxv

PART I SPORT MARKETING: THE BASICS

1 INTRODUCTION TO SPORT MARKETING . . . . . . . . . . . . . . . 3

Chapter Outline 3
Chapter Objective 3
What Is Sport Marketing? 4
Bottom Line – What Is Sport Marketing? 13
Conclusion 14

2 MANAGING THE SPORT MARKETING MIX. . . . . . . . . . . . . . 17

Chapter Outline 17
Chapter Objectives 18
What Makes Sport Marketing Unique? 18
The Characteristics of Sport Marketing 18
The Sport Marketing Mix 22
The Escalator Concept 24
Developing a Sport Marketing Plan 26
Why the Theory and Plans Do Not Always Work 32
Conclusion 32

PART II UNDERSTANDING THE SPORT CONSUMER

3 SPORT MARKETING RESEARCH . . . . . . . . . . . . . . . . . . . . . . . 41

Chapter Outline 41
Chapter Objectives 41

vii
 What Is Sport Marketing Research? 42
Sport Marketing Research Process 42
Research Reports and Services Within Sport
Marketing Research 68
Online and Web-Based Sport Marketing Research 69
Conclusion 70

4 SPORT MARKETING INFORMATION SYSTEMS. . . . . . . . . . 74

Chapter Outline 74
Chapter Objectives 74
What Is a Sport Marketing Information System? 75
Components of a Sport Marketing Information System 75
Value of an Integrated Sport Marketing Information System 86
Conclusion 86

5 SPORT CONSUMER BEHAVIOR . . . . . . . . . . . . . . . . . . . . . . . 89

Chapter Outline 89
Chapter Objectives 90
What Is Sport Consumer Behavior? 90
Internal Factors Affecting Sport Consumers 90
External Factors Affecting Sport Consumers 98
The Marketing Concept for Sport 106
Problem Solving and Decision Making 107
Influencing the Sport Consumer 119
Diffusion and Adoption Processes 122
Conclusion 125

PART III SPORT MARKETING LOGISTICS

6 SPORT PRODUCT MANAGEMENT . . . . . . . . . . . . . . . . . . . . 133

Chapter Outline 133

Chapter Objectives 133
Elements of Sport Products and Services 134
Sport Product and Service Management 135
Ethics in Sport Product and Service Management 137
The Sport Product and Service Life Cycle 140
Positioning and Differentiation 147
Conclusion 150

7 SALES MANAGEMENT IN SPORT . . . . . . . . . . . . . . . . . . . . . 155

Chapter Outline 155
Chapter Objectives 155
What Is Sport Sales Management? 156
The Sport Sales Organization 156

viii CONTENTS
 The Sport Buying Process 161
The Sport Sales Process 162
Non-Store-Based Inventories for Sales in Sport 167
Ethics in Sales Management 170
Conclusion 172

8 PURCHASING AND SUPPLY CHAIN MANAGEMENT

IN SPORT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176
Chapter Outline 176
Chapter Objectives 176
What Are Logistics in Sport Marketing? 177
Purchasing 178
Supply Chain Management 182
Emerging Technology in Logistics: Radio Frequency
Identification 190
Conclusion 193

PART IV PROMOTIONAL ASPECTS OF SPORT

MARKETING
9 COMMUNICATION MANAGEMENT IN SPORT . . . . . . . . . . . . . . 199
Chapter Outline 199
Chapter Objectives 199
What Is Communication Management in Sport? 200
The Communication Process 201
Sport Organizational Images 202
Sport Promotions 206
Conclusion 216

10 SPORT ADVERTISING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221

Chapter Outline 221
Chapter Objectives 221
What Is Sport Advertising? 222
Advertising for Sport Teams and Sport Retail Businesses 224
Sport Advertising and Image 226
Social, Ethical, and Regulatory Aspects of Sport Advertising 227
Sport Advertising and Consumer Behavior 235
Creating Sport Advertisements and Commercials 236
Sport Advertising and Integrated Brand Promotion 236
Conclusion 237

11 SPORT SPONSORSHIP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241

Chapter Outline 241
Chapter Objectives 242
History of Sport Sponsorship 242

CONTENTS ix
 Areas of Sport Sponsorship 244
Ethical Issues in Sport Sponsorship 252
Corporate and Brand Goals for Sport Sponsorship 256
Sport Sponsorship Agreements 259
Conclusion 267

PART V SPECIALIZED CONCEPTS IN SPORT

MARKETING

12 SPORT RETAIL MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . 273

Chapter Outline 273
Chapter Objectives 274
What Is Sport Retail Management? 274
Retail Value and Relationship Building 275
Retail Strategy 281
Methods of Planning a Sport Retail Mix 288
Store-Based Sport Retail Strategy Mix 290
Targeting Customers and Gathering Information 291
Location, Location, Location 292
Organizational Structure 294
Merchandise Management 295
Getting the Message Out: Sport Retailer Communications 302
Conclusion 303

13 SPORT E-BUSINESS AND E-COMMERCE . . . . . . . . . . . . . . 307

Chapter Outline 307
Chapter Objectives 308
What Is “E”? 308
Categories of E-Business and E-Commerce in Sport Marketing 311
Digital Technologies Utilized to Manage Sport
E-Business and E-Commerce 312
Conducting Sport E-Business and E-Commerce 313
Ethics in Sport E-Business and E-Commerce 315
Sport E-Business and E-Commerce in the New Economy 319
Conclusion 328

14 INTERNATIONAL AND GLOBAL

MARKETING IN SPORT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 332
Chapter Outline 332
Chapter Objectives 333
Introduction to International and Global Sport Marketing 333
The Relationship Between Culture and the
International/Global Sport Marketplace 336
International and Global Sport Market Opportunities 343
International and Global Sport Marketing Strategies 357
Conclusion 358

x CONTENTS
 PART VI THE FUTURE OF SPORT MARKETING

15 ENTERPRISE SPORT MARKETING MANAGEMENT . . . . . 363

Chapter Outline 363
Chapter Objectives 363
Is Sport Marketing An Art or a Science? 364
Sport Brand Architecture 365
Sport Marketing As Part of the Enterprise 366
Sport Consumer Relationship Management 366
More than Just Relationships: Offering Sport
Consumer Experiences 372
Conclusion: The Future of Sport Marketing – It
Is All About You! 377

Appendix: And Now a Final Word … 382

Bibliography 385
Glossary 405
Index 429

CONTENTS xi
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 PREFACE

The field of sport marketing is infused in virtually all aspects of sport man-
agement. As such, it is inevitable that many students will be involved in some
aspect of sport marketing during their career. This book is being published with
the sport management educator and student in mind, specifically aimed at those
whose sport management program is housed in the business and/or manage-
ment department. Most sport marketing books restate concepts learned in an
introductory marketing course prior to getting into sport marketing. This is
appropriate for sport management programs housed in a department other
than business and/or management. However, for sport management programs
housed in a business and/or management division, where virtually all students
have already taken principles of marketing course, the book is simply repeti-
tive. Advanced Theory and Practice in Sport Marketing strives to go beyond the
introductory marketing course by expanding the knowledge of the student with
advanced marketing theory related to research, consumer behavior, ethics,
logistics, products, advertising, sponsorship, promotions, sales management,
e-business and e-commerce, and international and global marketing.
The other aspect of this book is the application of real-world situations into
the text. Professors talk about what goes on in the field of sport marketing
based on their limited experience. Advanced Theory and Practice in Sport
Marketing publishes what goes on in the real world of sport marketing by
having professionals in the field provide first-hand accounts of how they
entered the field of sport marketing, information about what their current job
entails, and advice to students who wish to enter the field of sport marketing.
This allows the instructor to better prepare the student for life in the sport mar-
keting profession. It is the goal of the author to have this book become a
resource that sport marketing educators, students, and professionals will utilize
as an everyday reference tool in pursuit of their goals.
The book reflects the authors’ extensive research and varied experiences in
the field of sport marketing. Dr. Schwarz has worked in and with professional,
amateur, and non-profit sport organizations, as well as from the business
aspects of sport marketing specifically related to consulting work in sport facil-
ity and event management. He has conducted and presented research in sport

xiii
marketing and experiential learning in the United States, Canada, Europe, and
Australia. In addition, from June 2006 to August 2007 he was on sabbatical
conducting research in leisure marketing and designing a postgraduate course
in Applied Sport management at the University of Ballarat in Australia.
Dr. Hunter supplements this knowledge by bringing extensive experience from
the physical education, athletics, and coaching realm, as well as being a former
owner of a sport retail firm and a sport facility.
Part I of the book serves to provide an overview of sport marketing, includ-
ing a basic review of those topics commonly covered in an introductory mar-
keting course. The remainder of this text will provide the reader a framework
understanding of sport marketing by connecting traditional marketing to sport
marketing. Each chapter will cover a specific aspect of traditional marketing
and applying it to the field of sport marketing.

RESEARCH

The reader will expand their knowledge of the concepts of market segmenta-
tion, positioning, and demand analysis, and using that knowledge to develop
basic capabilities in advertising research, competitive analysis, and strategic
outcomes assessment in sport marketing. Inclusive of this will be the develop-
ment and implementation of focus group research, survey research, and exper-
imental studies; the identification, retrieval, and analysis of secondary data; the
utilization of qualitative and quantitative research methodologies; and the
application of the research method. Inclusive of this will be a description of
research services within sport marketing research, including but not limited to
studies of customer satisfaction, economic impact, need assessment, organiza-
tional behavior, and risk assessment.

INFORMATION SYSTEMS

The reader will gain an appreciation of the use of information systems for sport
marketing goals and objectives through structure, organization, and communica-
tion. Inclusive of this will be an examination of sport consumer relationship man-
agement for both Internet and non-Internet environment using strategic database
and software marketing, with the goal of being able to identify market opportuni-
ties, develop targets, and manage and evaluate promotional efforts in sport.

CONSUMER BEHAVIOR

The reader will learn how to utilize basic cultural, personal, social, and psycho-
logical principles to explain how those factors directly affect individual purchas-
ing and consumption behavior of participants, fans, spectators, volunteers,
community and corporate partners. Additionally, there will be an examination of

xiv P R E FAC E
the various types of sport consumer studies, and how individual and environmen-
tal factors, socialization, and participation directly influence the decision making
process for sport consumption. Inclusive of this examination will be an analysis
of the expected demographic, psychographic, geographic, and behavioristic char-
acteristics of the sport consumer.

PRODUCT MANAGEMENT

The reader will learn how to distinguish, identify, and classify the various ele-
ments of sport products and services, and the stages of the sport product life
cycle. In addition, the concepts of branding, licensing, images, marks, and posi-
tioning will be identified as related to the sport product.

SALES MANAGEMENT

The reader will be presented with an overview of the strategies and tech-
niques for promoting and selling the sport product, including sales theory mod-
els, promotion theory paradigms, and promotion application in sport
marketing. Additionally, the distribution process of the sport product will be
covered, including an analysis of the distribution principles related to time,
place, and possession, as well as the process for selecting distribution systems.

PURCHASING AND SUPPLY CHAIN

MANAGEMENT

The reader will be presented with numerous logistical functions that a sport
business must manage, including inventory management, team and equipment
transportation, warehousing, order processing, and information systems. Both
network design and global logistics will be analyzed as a part of this focus.
Additionally, there will be an explanation of the importance of the integration
of these various systems, and the effects that integration has on the overall
viability of the sport industry.

PROMOTIONS AND COMMUNICATION

MANAGEMENT

The reader will learn about understand the other elements of the sport pro-
motion mix, including licensing, publicity, personal contact, incentives, and
atmospherics. The reader will know how to incorporate sport promotion activ-
ities into an integrated communications plan, how to plan an event, create pric-
ing, location, and distribution strategies, and how to cost effectively promote

P R E FAC E xv
them. Areas to be covered will include sports information, media relations,
public relations, and community relations. In addition, indirect (word-of-
mouth) and direct (sales) promotional strategies will be covered in relationship
to positioning, building brand equity, increasing credibility, and enhancing
image transfer and association.

ADVERTISING

The reader will be provided an overview of the methods for bringing public
attention to the sport product or business through print, broadcast, or elec-
tronic media. This will include a comprehensive examination of copy and
design, media planning and buying, portfolio development, video production,
broadcast advertising development, billboard/outdoor advertising develop-
ment, and graphic design. The reader will also discover how to integrate the
field of sport and the engagement of interdisciplinary thinking as it related to all
areas of communication. Special emphasis will be placed on journalism, audio-
visual communications, development communications, telecommunications,
and mass communications.

SPONSORSHIP

The reader will gain an appreciation of the significant role sponsorship

plays in the sport promotional mix. Through an explanation of the history of
sport sponsorship, the reader will gain an understanding of the various areas of
sport sponsorship, including governing body sponsorship, team sponsorship,
athlete sponsorship, broadcast sponsorship, facility sponsorship, and event
sponsorship. Through the articulation of corporate and brand goals, the reader
will also learn about the various criteria for sponsorship, and how they are uti-
lized in choosing the companies to partner with, developing sponsorship pack-
ages, and engaging in sponsorship negotiations.

RETAIL MANAGEMENT

The reader will gain an understanding of sport retailing and sport retail man-
agement through a presentation of various retail strategies and a strategic
approach to retailing in the sport field. Inclusive of this chapter will be the con-
cepts of strategic retail management; the factors and skills associated with situ-
ation analysis; the manners to target customers and gathering information;
concepts associated with choosing a retail location; the concepts related to
managing a retail business; the concepts related to merchandise management
and pricing; the various ways of communicating with the customer; and inte-
grating and controlling all aspects of the retail strategy.

xvi P R E FAC E
 E-BUSINESS AND E-COMMERCE

The reader will gain an understanding that in the 21st century, e-business and
e-commerce have become staples within the field of sport marketing.
Information will be offered regarding the factors that drive modern business
through digital technologies. Inclusive of this will be concepts of managing dig-
ital enterprises via the Internet, the World Wide Web, and Intranets, including
C2B and B2B, as well as potential future technologies. In addition, how sport
businesses utilize electronic means to overcome barriers of geographic bound-
aries to market, produce, and deliver services will be covered.

INTERNATIONALIZATION
AND GLOBALIZATION

The reader will gain an appreciation of the ever-growing internationalization

and globalization of marketing in and through sport. This will be accomplished
through an examination of the implementation of policies, procedures, and
strategies within the parameters set forth by cultural, economic, political, and
legal constraints of various worldwide markets.

ENTERPRISE MARKETING MANAGEMENT

The reader will gain an appreciation for this growing aspect of sport market-
ing. Though effective and efficient sport marketing is increasingly important
due to tough competition and growing global opportunities, it has long been an
island in most sport organizations, disconnected from core business processes
and reliant on customized information technology that hampers communica-
tion and collaboration with other departments. This chapter will tie the topics
from previous chapters to concepts such as brand architecture, investment
measurement, and how to engineer creativity, and demonstrate how enterprise
marketing management and customer relationship management work together
to produce optimal sport marketing efforts by sport entities.

P R E FAC E xvii
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 PEDAGOGICAL
FEATURES

Advanced Theory and Practice in Sport Marketing enhances learning with

the following pedagogical devices:

■ Each chapter opens with a Chapter Outline and a list of Chapter Objectives.
■ Illustrations, photos, and charts throughout the text that clarify text material
and enhance learning.
■ Key terms appear alphabetically at the end of the book in the Glossary.
■ Each chapter will have at least one case study embedded within the chapter
to enhance critical thinking as related to real-world concepts associated with
the text material. Suggested discussion topics associated with each case study
allow the learner to apply theoretical knowledge to the scenarios.
■ At the end of each chapter, there is a real-world case written by professionals
from the field of sport marketing. These experts are from academia, profes-
sional sports leagues and teams, amateur sport organizations, and corporate
sport. The information they provide will provide the learner with knowledge
of how the individual entered the specific area of sport marketing, about the
real world of sport marketing, and advice of what the learner can do to
better prepare themselves for entry into the specified area of sport marketing.
■ A comprehensive Conclusion at the end of each chapter that reviews the
Chapter Objectives and pertinent information from the chapter.
■ A Test Bank that includes Multiple Choice Review Questions and Discussion
Questions to allow students to check their comprehension of the chapter’s
main concepts.

xix
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 CRITICAL THINKING

One of the most important skills for students to develop through their college
and university years is critical thinking. This mental process of analyzing and
evaluating information is used across all disciplines, and serves as a process for
reflecting on the information provided, examining facts to understand reason-
ing, and forming conclusions and plans for action.
The authors of this book have provided a series of opportunities for students
to enhance their critical thinking skills while also verifying their understanding
of the materials presented in this text. For each chapter, there are 10 multiple
choice questions that provide students the opportunity to verify their compre-
hension of the chapter’s main concepts. To supplement that verification, there
are also four discussion questions. These questions, which can be used as essay
topics or in-class discussion issues by instructors, are based on the information
provided in the chapter, the research available in the specific aspect of sport
marketing, and the education and experiences of the authors.
In addition, each chapter has a minimum of one case study focusing either on
the ethical or global nature of the specific sport marketing topics. These cases
are a collection of “real-world” situations modified with a sport marketing
twist to provide the student with the maximum opportunity to analyze, evalu-
ate, and ponder possible solutions to the ethical or global situation. Suggested
discussion topics associated with each case study will help the student focus
their efforts on key theoretical aspects from the chapter, and apply that knowl-
edge to deal with the specific scenario.
This text provides a unique opportunity for critical thinking in association
with sport marketing in the corporate or professional setting. “From Theory to
Practice” cases appear at the end of each chapter, written by professionals in
the field of sport marketing. They provide information about how the individ-
ual entered the specific area of sport marketing, the professional world of sport
marketing, and advice of what the learner can do to become better prepared for
entry into the specified area of sport marketing.

xxi
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 SUPPLEMENTS

Advanced Theory and Practice in Sport Marketing provides the instructor

with the following teaching aids:

■ PowerPoint presentations for each chapter.

■ An electronic test bank.
■ Suggested discussion questions associated with the case studies embedded in
each chapter.

xxiii
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 ABOUT THE
AUTHORS

DR. ERIC C. SCHWARZ

Dr. Schwarz has been a member of the faculty within the Division of Business
and Management at Daniel Webster College since 2000. Currently holding the
rank of Associate Professor, he serves as the Program Coordinator, and is the
faculty advisory for the Daniel Webster College Society for Sport Management.
During the 2006–2007 school year, he took a sabbatical leave to serve as a
Visiting Senior Lecturer and Researcher at the University of Ballarat in
Australia. His responsibilities included teaching classes, conducting research in
leisure and professional sport marketing, and developing a postgraduate pro-
gram in Applied Sport Management.
Dr. Schwarz received a B.S. degree in Physical Education from Plymouth
State University in 1991; a M.Ed. in Administration and Supervision from
Salisbury University in 1992; and an Ed.D in Sport Management from the
United States Sports Academy in 1998.
Prior to coming to Daniel Webster College, Dr. Schwarz had worked with a
variety of sport-related organizations in high school athletics, college athletics,
and campus recreation programming. He also owned his own summer camp,
clinic, and coaching training business.
Since coming to Daniel Webster College, in addition to his teaching and
administrative responsibilities, he has been focused on research, consulting, and
experiential learning. Dr. Schwarz has presented on various topics in sport mar-
keting and experiential learning at conferences in the United States (SMA,
EBEA), Canada (NASSM), Europe (EASM), and Australia (SMAANZ).
Dr. Schwarz has been most active with the Sport Marketing Association, where
he has been a regular presenter, and has had two articles published in the confer-
ence book of papers. In addition, a group of his undergraduate students finished
in first place in the undergraduate poster competition at the 2004 conference in
Memphis, and won the case study competition in 2005 in Arizona.

xxv
 Dr. Schwarz has been involved with numerous consulting projects, including
being an independent consultant in facility management and marketing for
three sport facilities in New Hampshire, the development of a new retail man-
agement plan for a minor league baseball team in New Hampshire, and an eco-
nomic impact analysis for a Senior PGA Tour event in Massachusetts. Dr.
Schwarz also serves as an expert witness in Physical Education and Sport
Management for a lawyer in New Hampshire.
The importance of experiential learning for both students and professors is
critical in the fields of sport marketing and management. The student gains
practical experience that allows them to apply the theory learned in the class-
room in a real-world setting. It allows the professor to understand the most
current practices in the field, thus allowing them to provide the most current
information to students. Dr. Schwarz lives that philosophy through his work
with various organizations. Some of the events include the Boston Marathon,
the NHL All-Star Game FanFest, the NBA Jam Session FanFest, and NASCAR
at New Hampshire International Speedway.
Dr. Schwarz currently lives in Merrimack, New Hampshire with his wife
Loan.

DR. JASON D. HUNTER

Dr. Hunter is a 1990 graduate of Plymouth State University with a B.S. in

Physical Education; earned his Masters Degree in 1993 from the United States
Sports Academy in Sports Management; and in 2005 completed a Ph.D. in
Educational Administration from Madison University.
Dr. Hunter has dedicated his life to teaching and coaching at the collegiate
level. At Plymouth State University, he served as the director of recreation,
assistant baseball and women’s soccer coach, and head women’s softball coach.
He also supervised the recreation component of a new 9 million dollar campus
recreation and student union building. Co-owner of D&M Sports, a sporting
goods retail store, Dr. Hunter joined his love and knowledge for sports to pro-
viding quality sporting goods equipment to the community.
In 1997, Dr. Hunter became the head coach of baseball and women’s soccer
at New England College, where he also served as an assistant athletic director
and faculty member. In 2000, he relocated to Illinois to become the head men’s
and women’s soccer coach and faculty member at North Central College. In
2003, he moved to the College of DuPage to become a faculty member in phys-
ical education and the women’s soccer coach. Dr. Hunter recently has been
granted tenure in this position. In addition, he has been selected as Coach of the
Year five times and Adidas Central Coach of the Year in 2005.
Dr. Hunter is developing a Sports Management Program at College of
DuPage and also serves as a senator for the faculty association. He has also pre-
sented at regional, national, and international conferences.
Dr. Hunter is the father of three wonderful children, Zachary, Morgan, and
Jake and the husband to Mariann Hunter, the love of his life. They reside in
Montgomery, Illinois.

xxvi ABOUT THE AUTHORS

 I
SPORT MARKETING:
THE BASICS
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 INTRODUCTION
TO SPORT
MARKETING
1
CHAPTER OUTLINE

What Is Sport Marketing?

Sport – Or Is It Sports?
Sport and Business
Marketing
The Consumer
The Company
The Competition
The Marketing Plan
Bottom Line – What Is Sport Marketing?
Conclusion

CHAPTER OBJECTIVE

The reader will be able to:

■ Provide an overview of sport marketing.

■ Define what sport marketing is, how it is connected to the business of sport,
and the relationship to traditional marketing.
■ An introduction to the 3 C’s of marketing analysis (consumer, company, and
competition) and STPD (segmentation, targeting, positioning, and delivery).

3
 WHAT IS SPORT MARKETING?

Prior to describing what sport marketing is, we should take a look at the
definitions of the two root words: “sport” and “marketing.”

Sport – Or Is It Sports?
First we look at the concepts of sport and sports. Sport is defined as activi-
ties, experiences, or business enterprises that center on athletics, health and
wellness, recreation, and leisure time opportunities. Some of the common mis-
conceptions about sport include (1) there needs to be a competitive situation,
(2) the offering must have a standard set of rules, and (3) participants need spe-
cialized equipment and facilities. This is true of sports, which simply refers to
individual, dual, and team sports activities such as soccer, baseball, golf, and
tennis. Sport is an all-inclusive term covering all aspects that go beyond the
playing field, including all the various operations that make the games happen.

Sport and Business

Now we look at how the concept of business ties into these previous defini-
tions. Business is defined as individuals or organizations that seek to make a

FIGURE 1.1
OVERVIEW OF THE BUSINESS WORLD

Competition Economy
M
ar
ce

ke
an

ers
ting
Fin

tom

Em
Cus

ployees

Legal and
regulatory
forces

Information O wn e r s
technology

M ana t
ge men

Social responsibility
and ethics

Source: Ferrell, O.C. and G. Hirt (2003). Business: A Changing World, 4th ed., p. 5.
New York: McGraw-Hill.

4 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
profit by providing products and services that satisfy the needs, wants, and
desires of the consumer. The business world, as documented in Figure 1.1,
covers a wide variety of aspects. The internal factors include the primary busi-
ness activities of management, marketing, and finance, which are centered on
business owners, employees, and customers. The external factors include com-
petition, the economy, information technology, legal and regulatory forces, and
social responsibility and ethics.
The definition of business and the internal and external factors in the busi-
ness world are mirrored in the profession of sport management and administra-
tion. With regard to whether sport administration or sport management is
more appropriate, it seems as though more programs as business utilize the
term management over administration; however, there is no significant differ-
ence between the meanings of the two terms when it comes to the field of sport.
The only difference tends to be curricular based, and will vary from institution
to institution. Therefore, when looking at this field, the major of sport manage-
ment, and in some cases sport administration, is of greater interest to business
educators. This is defended by the following definition of sport management:
the collection of skills related to the planning, organizing, directing, control-
ling, budgeting, leading, and evaluation of an organization or department
whose primary product or service is related to sport and its related functions.

Marketing
Now that we have a definition of sport, as well as a basis for its relationship
to the business world, what is marketing? There is often confusion on what
marketing truly is. Marketing is often defined by its components, such as adver-
tising, sales, promotions, product management, pricing, publicity, etc. These
components do not define what marketing is – they act to enhance the applica-
tion of marketing elements.
When many people think of marketing, they are really thinking of marketing
tactics. People associate marketing with tactics, including the television commer-
cials we see while watching sporting events, the between play promotions during
live sporting events, and the information published in newspapers or broadcast
on a newscast. But tactics in marketing are similar to the tactics of sport. They
are very important, but useless without having a sound basis of knowledge.
While this knowledge is a sound basis for the understanding of marketing,
the true definition of marketing is simply the functions involved in the transfer
of goods and services from the producer to the consumer. The focal point of
these functions are in three specific areas known as the 3 C’s of marketing
analysis: the consumer, the company itself, and the competition.

The Consumer
Who is the consumer? Is it the shopper who visits stores, either in person or
via an online capability, in search of merchandise or bargains? Is it the buyer
who knows what they want and makes the purchase? How about the customer

I N T R O D U C T I O N T O S P O RT M A R K E T I N G 5
who repeatedly purchases a commodity or service? It is these three and much
more. By definition, a consumer is an individual or organization that purchases
or obtains goods and services for direct use or ownership. As marketing profes-
sionals, we strive to please all of these consumers to maximize sales of products
and services, and hence maximize profit. But how do we reach these consumers?

Segmentation
Segmentation is the concept of dividing a large, diverse group with multiple
attributes into smaller groups with distinctive characteristics. These distinctive
groups have similar needs and desires, and hence will respond to marketing
efforts in similar manners. The concept of segmentation is basic to all market-
ing efforts, as the goal of segmentation is to identify the market.
One of the biggest challenges for marketing professionals is to determine the
appropriate segment to market. Some of the major factors utilized to choose a
segment includes:

■ What is the size of the segmented market?

■ What is the purchasing power of the segmented market?
■ How can the marketer be sure that the product is what the consumer wants?
■ Is it worth marketing the product to the chosen segment?
■ What tactics should be used to attract the segment to purchase the sport
product?

To answer these questions, marketers utilize the four bases of segmentation:

the consumer’s state of being, the consumer’s state of mind, product usage by
consumers, and product benefits as perceived by consumers.
The consumer’s state of being is the concept of belonging to a specified class
or group. In marketing, the major states of being include location, age, income
level, gender, race and ethnicity, and sexual orientation. Geographic location is
utilized to determine the spread of population as related to the distribution and
usage of a product. Age helps to differentiate the needs and interests of con-
sumers, as they differ throughout the lifespan. Income levels help the marketer
determine probable standard of living of the demographic, which in turn influ-
ences the manner in which a product is marketed. An example of this would be
that a teenage inner-city basketball player who plays at the Rucker from Harlem
will be marketed to differently as compared to the suburban soccer mom, and in
comparison to the 10-year-old alternative sports fan who is influenced by any-
thing related to skateboarding and BMX bikes. As marketing becoming more
global in nature, understanding the intricacies of various race and ethnic mar-
kets is integral to marketing success. In addition, marketing based on sexual ori-
entation is an emerging market; however, there is still some controversy as to
whether this should be viewed as a separate and distinct market.
The consumer’s state of mind deals with the individual cognitive processes
involved in marketing. Among the most prevalent concerns to marketers are
individual personality traits, lifestyle changes that are evident throughout the
lifespan, and the individual preferences and perceptions of consumers, which
are wide and varied.

6 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
 Product usage by consumers deals with the consumption rates by the various
market segments. Central to this concept is the Pareto Principle, otherwise
known as the 80/20 rule. The Pareto Principle is generally applied to vendors or
customers in a retail setting. This rule assumes that 20% of the customers gen-
erate 80% of the sales, or that 80% of merchandise comes from 20% of the
vendors.
Product benefits as perceived by consumers go beyond the consumer’s
state of mind to look specifically at the assessment by the consumer as to the
advantages the products provided to them. The consumer will always ask
the question “What is in it for me?” By understanding the consumer’s view-
point, it allows marketers to (1) describe the products more efficiently and
effectively in marketing collateral, (2) better prepare salespeople as to how to
sell products, and (3) provide evidence as to how to better differentiate
products.

Targeting
In the marketing world, we strive or aim for satisfying our desired market
through the concepts of exchange and relationships. The purpose of targeting
is to find the best way to get a product’s image into the minds of consumers, and
hence entice the consumer to purchase the product. The research and develop-
ment processes described earlier are utilized at this stage to enter the product
into the market. This is accomplished through a detailed analysis of the market-
ing mix, otherwise known as the 4 P’s of marketing: product, price, place, and
promotion (see Figure 1.2). The product may be tangible (goods) or intangible
(services), and decisions are made based on concepts such as branding, func-
tionality, and quality. Price is the amount of money or goods asked for in

FIGURE 1.2
THE MARKETING MIX

Product Price

Target
market

Place Promotion

Source: www.netmba.com/marketing/mix.

I N T R O D U C T I O N T O S P O RT M A R K E T I N G 7
exchange for something else. Place deals with the methods of distributing the
product to consumers. Promotion represents how information about the prod-
uct is communicated to customers, with a goal of receiving positive response
from the consumer, and results in product sales.
Note: Later in this chapter, we will elaborate on this concept, and show how
in the realm of sport, the elements of marketing are expanded to the 5 P’s of
sport marketing by moving publicity/public relations out of the category of
promotion, since it is such a large factor in the marketing of sport.

Positioning
Positioning is how a company seeks to influence the perceptions of potential
and current customers about the image of the company and its products and serv-
ices. This is accomplished by applying the 4 P’s of marketing with the goal of
strategically placing the product or service firmly in the mind of the consumer. We
often talk in society about the concept of “making a good first impression.” In
positioning, the goal is to get the consumer’s mind to react to the implementation
of the marketing mix in a positive manner. By creating this knowledge, consumers
will develop an impression that is often difficult to change. Hence, if the marketer
can send a message that is consistent with what the consumer already believes
(the consumer’s perceptions); the product will become easier to sell. An example
would be a Detroit Red Wings advertising campaign concentrating on Detroit
being known as Hockeytown. Hockey consumers are already aware of this fact,
and the marketers can play off of this knowledge.
One of the best ways to position a product in the consumer’s mind is to be
first on the scene. People want who they perceive is first in the market, or the
best in the market. This concept of being number one often can overcome other
shortcomings of products.
However, not all products can be first on the market, or number one in the
market. So how do you position these other products so the consumer will buy?
This is most often accomplished by claiming a unique position in the market.
Through applying the marketing mix, the marketer will strive to carve this
uniqueness into the mind of the consumer, so that they feel they are getting
something different and worthwhile for their hard earned money. In general,
when there is a clear market leader, it is often extremely difficult to knock off
the king of the mountain. By not challenging the market leader head-on, a com-
pany can increase their market share through marketing their uniqueness as
compared to that industry leader. To market their uniqueness, marketers look
to cater to the specific benefits of the product. In order to do this, often the
product must be sold at a low price, as people when viewing new products will
value low initial price more than quality.

Delivering
Delivery is the concept of producing or achieving what is desired or expected
by the consumer. Through the concepts of segmentation, targeting, and posi-
tioning, a framework is created to allow the industry to utilize marketing to
deliver an awareness of products to potential consumers. The previous con-
cepts are the development phase and the start of the implementation phase of

8 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
the marketing concept. Delivery is the completion of the implementation phase,
and the start of the management aspect, where the creative and process aspects
of the marketing discipline are applied.
The remainder of this book will focus on the delivery of the marketing concept.
Understanding the consumer is central to the ability to engage in marketing.
Marketers must know how consumers behave, their motivations, their percep-
tions and preferences. Marketers must have an awareness of their attitudes, their
knowledge, and their emotions. Also, marketers must have the ability to seg-
ment the market, analyze the target market, position the product, and deliver it
to consumers.

The Company
What do we need to know about the company itself? The framework for this
is the SWOT analysis, which looks at the internal strengths, internal weaknesses,
external opportunities, and external threats of the organization (Figure 1.3).
For starters, the framework of understanding is in the first two parts of a
SWOT analysis: internal strengths and internal weaknesses. The strengths of a
company are its resources and capabilities that can be used to develop a com-
petitive advantage. A competitive advantage is where a company sustains prof-
its above the average for the specific industry. Competitive advantage is usually
looked at in two ways: cost advantage (when a company can deliver the same
benefits as competitors at a lower cost) and differentiation advantage (when
a company can deliver benefits that exceed those of other products in the spe-
cific industry). By understanding these concepts, a marketer can gain a better
understanding of the company itself. In addition, the marketing professional

FIGURE 1.3
THE COMPANY AND SWOT

I N T R O D U C T I O N T O S P O RT M A R K E T I N G 9
can implement a more effective and efficient marketing effort by maintaining or
improving on strengths, while seeking ways to improve on and eliminate weak-
nesses. Examples would include having limited time, staff, or funding.

The Competition
Finally, what do we need to know about the competition? The framework of
competition is in the last two parts of a SWOT analysis: external opportunities
and external threats. By evaluating opportunities and threats, a company can eval-
uate their current status in the market, and determine which direction the com-
pany should be heading. This is most often guided by an organizational mission,
through an evaluation of organizational and management options, and outlining
the goods and/or services to be marketed. The opportunities are the marketplace
openings that exist because others have not entered or capitalized on that part of
the marketplace. Threats are those environmental factors that can negatively
affect the marketing of a product if the company does not react to them.

The Marketing Plan

All of the previous information is then compiled into a marketing plan. A mar-
keting plan starts with primary and secondary market research. It is very danger-
ous to start a marketing plan without appropriate research by assuming what the
intended market wants and needs. Primary market research is gathering your
own data through observation, surveys, interviews, and focus groups. Secondary
market research uses published information including industry profiles, trade
periodicals, and demographic profiles to determine the scope of your market.
The next part of the marketing plan focuses on economics. The key factors
when identifying the economy of your market includes the following:

■ What is the total size of the market?

■ What percent share of the market do you intend to capture?
■ What is the current demand within the market?
■ What are the current and future trends of the market?
■ Is there growth potential within the market?
■ What are the barriers to entering the market, and how will the company over-
come those barriers?
■ How could changes in industry itself, the economy, technology, and govern-
mental regulations affect your company and force changes in your marketing
efforts?

The following section should describe the product(s) and/or service(s) to be

marketed. Three key concepts that should be articulated in the plan for each
product or service should be: (1) a description of the most important features of
the product/service, with particular consideration given to what differentiates it
from other products/services; (2) a description of the benefits, specifically consid-
ering what the product/service will do for the consumer; and (3) a description of

10 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
the post-sale services (warranties, service contracts, delivery options, consumer
support, and refund policies).
Now we need to detail the demographics of our customers. For individuals,
we consider such items as age, gender, race/ethnicity, location, income level,
social class, occupation, and education. For business consumers we consider
the industry, location, size, and preferences.
Next we detail the competition. It is important to remember in this section to
list all competitors (indirect and direct), and differentiate the level of competi-
tiveness – whether they compete across the board, or only in certain product
areas. In this section, there must also be a comparison of how your product(s) or
service(s) will compare with the competition. This competitive analysis will help
determine your competitive advantages and disadvantages, and provide data to
help determine the best way to market your products within the industry.
After this information has been compiled, a niche can be defined. A niche is
a special area of demand for a product or service. On a large scale, companies
such as Nike and Reebok design and market athletic shoes for each different
sport, and often with specialized models based on specific athletes. On a more
direct scale, a niche marketing scheme would be offering specialized golf prod-
ucts such as customized club, designer balls and tees, and associated golf gadget
to subscribers of Golf Magazine. These niches are then used to develop the
marketing strategy. Inclusive of this strategy development are the elements of
the marketing mix, including:

■ The method for setting prices and associated pricing strategies (price).
■ The distribution channels to be utilized to sell products and services (place).
■ The method for getting information to potential consumers (promotion).

Now that a description of the products, services, customers, markets, and

strategy has been completed, the final element of the marketing plan is a sales
forecast. Usually this is completed in two ways. First, a “best-case scenario,”
should provide a realistic expectation of sales. Second, a “worst-case scenario,”
should provide the minimum expectation of sales irrespective of what happens.

INTRODUCTION TO ETHICAL DECISION MAKING

IN SPORT MARKETING

Funding for Boys and Girls Club

The local Boys and Girls Club has struggled for years to raise enough
funds to support its programs and services. Support from public and private
financial sources has significantly declined, resulting in a decrease in avail-
able budgetary money by 23% over the last 2 years. The local economy is
stagnant, especially since many of the major employers have laid off employ-
ees during the last 5 years. The General Manager of the Boys and Girls Club
Continued

I N T R O D U C T I O N T O S P O RT M A R K E T I N G 11
 INTRODUCTION TO ETHICAL DECISION MAKING
IN SPORT MARKETING – Continued

is a salaried employee of the organization, and has worries that if things do

not turn around, that the Boys and Girls Club may have to either reduce pro-
gramming or close down.
One day, the General Manager was approached by a new Board member
with a novel fundraising idea. This Board member is a local attorney in pri-
vate practice, and also represents the local sports arena. The Board member
suggested that he could encourage the concessions manager at the arena to
donate to the Club part of its proceeds on the sale of beer at six upcoming
sports events. Convinced by previous sales figures that the revenues gener-
ated would more than cover costs, he thought the Club could pay the conces-
sionaire for the arena a fee of $3000 for the first night and $2000 for each
of the remaining nights in exchange for the beer service concession.
Therefore, for these six evenings, the Club would pay the concessionaire at
the arena a total of $13,000 for the privilege of running the concession stand.
The concessionaire would guarantee that the Club would net at least $500
each night.
The General Manager discussed the idea with the Chairman of the Club’s
Board of Directors, and at a subsequent Board meeting the idea was approved.
One week after the last of the six events, the Club received $16,000 in cash
(their $13,000 investment plus $3000 in net profit).
At the next Board meeting, a proposal was presented that encouraged the
Club enter into a much more formal relationship with the concessionaire at
the arena. Several clauses of the contract were discussed, including:

■ The Boys and Girls Club will apply for a Class A Liquor License to sell
malted beverages at the arena. The concessionaire will furnish the arena’s
beer services facilities, fixtures, supplies (exclusive of the malted bever-
ages), and utilities for $2800. The concessionaire will provide 19 people to
operate the concession stand at the rate of $7.85 per hour per person. All
personnel shall be supervised and controlled by the Club, and shall be
trained to dispense malted beverages.
■ During each event, the Club shall have on site at least two of its own Board
members who will supervise the concession operation.
■ The concessionaire will provide the Club with eight tickets per event for its
exclusive use. This would come out of the concessionaire’s personal allo-
cation from the arena.
■ The concessionaire will indemnify and hold the Club harmless for any
claim or cause of action whatsoever arising out of the Club’s activities pur-
suant to this agreement.
■ The concessionaire guarantees that the Club will net at least $500 per
sporting event.

12 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
 INTRODUCTION TO ETHICAL DECISION MAKING
IN SPORT MARKETING – Continued

The Club’s Board was now uniformly enthusiastic about the proposed
contract. As a result, a contract between the concessionaire and the Board of
the Boys and Girls Club was signed.

Source: Adapted from Dubinsky, J. E. (1997). Practical ethics: a case study. In Ethical
Issues in Partnerships Between Businesses and Nonprofit Organizations. Retrieved from
http://www.corcom.org/publications.htm.

Suggestion Discussion Topics

1. You are the General Manager of the Boys and Girls Club. Assume
philosophically and ethically that you do not agree with using alcohol
proceeds to sponsors the youth organization. Part of your reasoning
includes that you preach in your programming the dangers of under-
age drinking. Considering both the organizational and marketing-
based issues related to this situation, what would you do in this
situation where your Board has now agreed to use the sales of alcohol
beverages to fund programming for the Club?
2. One of the fastest growing fundraising efforts is based on the popular-
ity of Texas Hold’Em, a popular version of poker. Events take place in
towns all over the country, and a portion of the proceeds go to the spon-
soring charity for the evening. The charity is required to provide the
dealers for the evening. If they cannot find enough people, they can sign
up members of the poker organization as members of the charity, and
then they can deal in the event. The charity also needs to be present at
the end of each evening to write checks to the winners. You are the
General Manager of the Boys and Girls Club considering utilizing this
as a fundraising opportunity. What are the pros and cons of sponsoring
such an event? Is it ethical to use proceeds from gambling for youth pro-
gramming? What are the marketing implications for your organization?

BOTTOM LINE – WHAT IS SPORT MARKETING?

In conclusion, marketing is the study of the consumer, the company, and the
competition, specifically relating those areas to market segmentation, target
markets, product positioning, and delivery of the product. Then to engage in
marketing, we use the various tactics of marketing, which will be elaborated
upon throughout the remaining chapters of this text.
OK – then what is sport marketing? Based on the definition of “sport” and
“marketing,” it shows how complex both concepts are. Therefore, it is safe to
assume that combining the two concepts to get sport marketing is probably

I N T R O D U C T I O N T O S P O RT M A R K E T I N G 13
even more complex. This is very true, because sport marketing is a process of
developing and implementing activities related to the production, pricing, dis-
tribution, promotion, and publicizing of a sport product. These sport products
run the gambit, from sport drinks to sport clothing with team logos, to ticket
packages. The goal of this process is to satisfy the needs and wants of con-
sumers, achieve the goals and objectives of the company in relation to their phi-
losophy, mission, and vision, and stay ahead of the competition to maximize
your product’s and company’s potential. With this complexity come certain
characteristics that make the sport product unique.

CONCLUSION

The purpose of this chapter is to provide the reader with an overview of the
evolution of sport marketing. First we investigate what sport marketing is by
defining the root words. Sport is defined as activities, experiences, or business
enterprises that center on athletics, health and wellness, recreation, and leisure
time opportunities. The association of sport with business (individuals or
organizations that seek to make a profit by providing products and services that
satisfy the needs, wants, and desires of the consumer) helps to develop an
understanding of the field of sport management as the collection of skills
related to the planning, organizing, directing, controlling, budgeting, leading,
and evaluation of an organization or department whose primary product or
service is related to sport and its related functions. The marketing aspect of
sport focuses on the functions involved in the transfer of goods and services
from the producer to the consumer.
The focal point of these functions is in three specific areas known as the 3 C’s
of marketing analysis: the consumer, the company itself, and the competition.
The consumer is an individual or organization that purchases or obtains goods
and services for direct use or ownership. To reach sport consumers, sport mar-
keting professional go through a series of processes. Segmentation is the con-
cept of dividing a large, diverse group with multiple attributes into smaller
groups with distinctive characteristics. Targeting seeks to find the best way to
get a product’s image into the minds of consumers, and hence entice the con-
sumer to purchase the product. This is accomplished by focusing on the 4 P’s of
marketing – product, price, place, and promotion – and the evolution of pub-
licity as a 5th P. Positioning focuses on how a company seeks to influence the
perceptions of potential and current customers about the image of the company
and its products and services. Delivery is the concept of producing or achieving
what is desired or expected by the consumer.
With regard to the company and competition, the framework is centered on the
SWOT analysis. The managerial function of the company itself is most concerned
with internal strengths and weaknesses. The leadership of the company tends to
focus on the external opportunities and external threats posed by competition
and the environment. All this information is then compiled into a marketing plan,
and enhanced with primary and secondary research, economic and financial con-
sideration, and an evaluation of the products and services to be offered.

14 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
 FROM THEORY TO PRACTICE
Frank Supovitz, Senior Vice President, Events
National Football League
New York, New York

In my opinion, I have the best job in the world. Sometimes, it seems like one
of the toughest, but it is certainly the best. In my position as Senior Vice
President of Events for the National Football League, I manage a department
that is responsible for the planning and management of the Super Bowl, Pro
Bowl, and the NFL Draft, among many other programs. We work closely with
the host cities, stadiums, hotels, sponsors, broadcasters, and support venues
that are needed to successfully execute these events, sometimes many years in
advance.
Getting to this point in my career was partially a function of being in the
right place at the right time, but also about being open to the many exciting
possibilities a career can take. That did not mean taking any job that came my
way. I evaluated every opportunity to determine whether a new job might pro-
vide me with new challenges for my experience and expertise, and whether I
could imagine myself happy in a new pursuit not a year later, but 10 years later.
I grew up in Queens, and worked evenings after school as an usher at
Radio City Music Hall. That part-time job turned into a 16-year run at the
Hall, advancing through the ranks through the operations department, then
marketing, and finally to director of special events. There, I applied my expe-
rience in entertainment marketing with the knowledge of staging corporate,
sports, and civic events to projects including the halftime show for Super
Bowl XXII. From there, I worked on the US Olympic Festival, the Goodwill
Games, and other major programs, eventually ending up at the National
Hockey League in 1992. There, I was responsible for NHL All Star
Weekend, the Stanley Cup, and the NHL Draft, among many other events.
After 13 seasons in hockey, I moved from pucks to pigskin, moving to the
National Football League in 2005.
What does it take to plan a Super Bowl? Start with 3–5 years of working
with local business and governmental leaders to prepare a city to host
150,000 inbound visitors, preparing the stadium for the nation’s most
watched annual event, managing ticketing for more than 70,000 fans, con-
tracting more than 20,000 hotel rooms, hundreds of motor coaches, and tens
of thousands of parking spaces. Many elements the public never sees, such as
securing two practice facilities with the same playing surface as the stadium,
hotels for the competing teams’ accommodations and offices, and a media
center to house more than 100 radio stations and the NFL Network broad-
casting live throughout the week, as well as work space for thousands of
accredited reporters and writers. We design and construct tented or indoor
hospitality space for up to 8000 corporate guests, more than 150,000 square

Continued

I N T R O D U C T I O N T O S P O RT M A R K E T I N G 15
 FROM THEORY TO PRACTICE – Continued

feet of space for two major parties, a million square-feet home for the NFL
Experience fan festival, and banner and décor programs for city streets, the
stadium, hotels, and other event facilities. We are also concerned with the
presentation of the game on the field and scoreboard, create a 300-feet hard-
ened security perimeter around the stadium, and manage a program to cre-
dential thousands of game day workers. While this list is by no means
complete, it provides a tiny snapshot of why it takes hundreds of people and
a number of years to prepare for one game on one day.
None of it is possible without the help of our business partners, and it is
also our job to ensure that our sponsors get the best possible value from their
association. It is so much more than sponsor signage on site, an ad in the pro-
gram, or public address announcements. Each sponsor wants their product,
service, and message to rise above the clutter, targeting a specific audience,
and encouraging sampling or purchase. The trick is to involve sponsors in a
meaningful way so they feel a sense of ownership in our events. Visa, for
instance, offers special and exclusive experiences in which cardholders can
win a chance to tour the Super Bowl field before the game, watch the half-
time show from the field, or bring Gatorade to the bench (involving yet
another sponsor). General Motors is featured as a sponsor of the post-game
ceremonies during which the Super Bowl MVP wins a Cadillac. Pepsi offers
fans and visitors a concert series in the host city. Each of these partners acti-
vate their sponsorships with involving and unique experiential marketing
programs that their association with the NFL can offer because we under-
stand that our relationship is a true partnership in which both parties can
richly benefit.
The pursuit of success in your sports marketing and management career
will follow many of the same philosophies as building success on the field.
Expand your playbook by staying current with the market and learning all
you can about how this amazing business works. Keep your eyes open for
changing developments and trends that will help you punch through obsta-
cles and challenges, and be prepared to respond quickly to opportunities.
Settle for no less than excellence in everything you do. The competition for
the best positions is fierce!

16 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
 MANAGING
THE SPORT
MARKETING MIX
2
CHAPTER OUTLINE

What Makes Sport Marketing Unique?

The Characteristics of Sport Marketing
Sport Can Be a Consumer Good, a Consumer Service, a Commercial
Good, or a Commercial Service
The Principal Sport Product Is Perpetually Intangible, Subjective, and
Variable
Sport Has an Appeal that Is Extensive and Permeates All Aspects of Life
Sport Is Normally Publicly Consumed and Consumer Satisfaction Is
Directly Affected by the External Environment
The Chief Sport Product Elicits a Strong Emotional Connection
The Sport Consumer Believes that They Are the Experts When It Comes
to Knowledge of the Product
The Sport Product (in an Event Form) Is a Perishable Commodity
As With Most Demand-Based Products, the Consumer Demand for the
Main Sport Product Can Vary Greatly
Sport Organizations Concurrently Compete and Cooperate
Most of the Marketing Effort Is Not Placed on the Primary Sport Product;
It Is Placed on Product Extensions
Exposure from the Mass Media Has Resulted in a Reduced Emphasis on
Traditional Sport Marketing
The Sport Marketing Mix
The Escalator Concept
Nonconsumers
Indirect Consumers

17
 Light Users
Medium Users
Heavy Users
Developing a Sport Marketing Plan
Step 1: Identifying the Purpose of the Sport Marketing Plan
Step 2: Analyzing the Sport Product
Step 3: Forecasting the Market Climate
Step 4: Positioning the Sport Product
Step 5: Segmentation and Targeting Consumers
Step 6: Packaging the Sport Product
Step 7: Pricing the Sport Product
Step 8: Promoting the Sport Product
Step 9: Distribution (Place) of the Sport Product
Step 10: Evaluation and Feedback about the Sport Marketing Plan
Why the Theory and Plans Do Not Always Work
Conclusion

CHAPTER OBJECTIVES

The reader will be able to:

■ Understand how the sport marketing mix is implemented and managed.
■ Recognize the concepts that make sport marketing unique.
■ Expand the traditional marketing mix into the 5 P’s of sport marketing.
■ Appreciate the intricacies of the sport marketing plan.

WHAT MAKES SPORT MARKETING UNIQUE?

When we look at sport marketing and what makes it unique, we must com-
plete an in-depth analysis of those market forces that are utilized to meet the
needs and wants of the consumers, while ensuring success for the company.
What makes this different than traditional marketing? In theory, there is no dif-
ference. However in practice, there is a world of difference. The primary sport
product, and hence the market, is traditionally demand based, whereas most
generic products are marketed based on need.

THE CHARACTERISTICS OF
SPORT MARKETING

Sport Can Be a Consumer Good, a Consumer Service, a

Commercial Good, or a Commercial Service
Sport is an end product that is produced for mass consumer appeal for spec-
tators and participants. The primary sport product can be both tangible and

18 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
intangible in nature. At the same time, businesses and corporate entities use
sport as a way to reach their consumers and to sell their respective products and
services. They also utilize sport (specifically events) as a reward system for their
employees. An example of this would be having an employee night at the local
ballpark or arena to reward the employees for their hard work. An additional
reward system could be offered if the company owned a corporate suite at the
facility. The organization could reward those with the highest level of produc-
tion with the ability to watch event from the suite.

The Principal Sport Product Is Perpetually Intangible,

Subjective, and Variable
The consumer experience is constantly subjective because it is subject to vari-
ous levels of interpretation. This makes it very difficult for the sport marketer
because with so many different consumer perceptions, it becomes challenging
to guarantee the satisfaction of consumers.
Additionally, since there is no predictability of the results of sport, and there
is no guarantee of the quality of play from the participants, it again becomes
challenging for the sport marketer to guarantee the satisfaction of the consumer.

Sport Has an Appeal that Is Extensive and Permeates

All Aspects of Life
This provides the sport marketer a range of target markets, and thus requires
the sport industry to create variations of products. These variations must
represent the innumerable demographics of consumers, including age, sex,
income level, race/ethnicity, and geographic location.

Sport Is Normally Publicly Consumed and Consumer

Satisfaction Is Directly Affected by the External
Environment
The consumption of sport usually involves social interaction. According to
numerous studies conducted, there is a strong correlation between social identifi-
cation, affiliation with a team, and the decision to attend sport events. In fact, the
research shows that less than 2% of collegiate and professional sport spectators
attend events alone. As a result of this, sport marketers must create products and
activities that enhance group attendance, and hence facilitates consumer satisfaction.

The Chief Sport Product Elicits a Strong Emotional

Connection
Customers have a strong personal identification, both positive and negative,
with elements of the sport product. The sport marketing professional must be
able to market products to both sides of this affiliation.

M A N AG I N G T H E S P O RT M A R K E T I N G M I X 19
The Sport Consumer Believes that They Are the Experts
When It Comes to Knowledge of the Product
Usually the manufacturers of a product are the experts about that product.
In turn, consumers usually trust the opinion of the company producing the
product, or the industry where the product is sold. Not so in sport, where
the consumer believes they are the expert. An example of this is the concept of
the “Monday Morning Quarterback” – where fans look back on the game and
pass judgment on what the players or coaches should have done. This is inten-
sified by the number of media outlets – websites devoted to sports (especially
fantasy sports), sport radio, 24-hour sport television networks, back page
newspaper coverage, etc.

The Sport Product (in an Event Form) Is a Perishable

Commodity
In this form, there is no true inventory. The sport event is produced and con-
sumed at the same time. Therefore, the sport marketer must pre-sell the event.
To accomplish this, the sport marketing professional must “sell” anticipated
performance and projected potential.

As With Most Demand-Based Products, the

Consumer Demand for the Main Sport Product
Can Vary Greatly
With most products, we consider the economic concept of supply and demand.
The main sport product is demand based. This makes it difficult for the sport
marketer to develop strategies, as they must read the minds of consumers and
identify their needs and desires as related to the sport product.

Sport Organizations Concurrently Compete and

Cooperate
While sport organizations compete on the court or field, they cooperate away
from the competition to assure stability and existence. This challenges sport
marketing professionals to market the sport product with both in mind. A great
example of this would be the rivalry between the Boston Red Sox and the New
York Yankees. While they often compete with each other in the standings, the
field of play, and in the minds of fans, they must rely on each other for games
to take place on the field. If the Red Sox chose not to show up for a game at
Yankee Stadium, there would be no event.

20 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
Most of the Marketing Effort Is Not Placed on the
Primary Sport Product; It Is Placed on Product
Extensions
Since marketing professionals have little or no say about the primary prod-
uct, they must use product extensions to get the message about the product into
the public eye. The main example of a product extension is merchandise.
Product extensions serve as a major revenue generation for sport organizations
at all levels.

Exposure from the Mass Media Has Resulted in a

Reduced Emphasis on Traditional Sport Marketing
The oversaturation of sport in the mass media has resulted in an evolution in
the traditional method of controlling and coordinating the marketing mix. This
exposure is called publicity. The expanded public relations efforts have forced
marketers who traditionally viewed the marketing mix as the 4 P’s of market-
ing evolve their theory into the 5 P’s of sport marketing: product, price, place,
promotion, and publicity (Figure 2.1).

FIGURE 2.1
THE HEART OF THE SPORT MARKET:
THE SPORT MARKETING MIX

Consumers
Company

Competition

M A N AG I N G T H E S P O RT M A R K E T I N G M I X 21
 THE SPORT MARKETING MIX

The heart of the sport market is the sport marketing mix. Central to our
understanding of the sport marketing mix are the three areas of marketing
analysis – the consumer, the company, and the competition. These “chambers”
of the heart must be understood so that the marketing mix can be controlled,
coordinated, and implemented within the overall marketing effort. As reviewed
earlier in Chapter 1, our analysis of consumers includes segmentation, target-
ing, positioning, and delivery. For the company, we analyze internal strengths
and weaknesses, as well as competitive advantages including cost and differen-
tiation. As far as competition, we consider external opportunities such as mar-
ketplace openings, and external threats such as environmental factors.
Once we understand the components of the sport market, we can now
manipulate our efforts through the elements of the marketing mix. As discussed
earlier in the chapter, there is a significant difference in the traditional view of
the marketing mix when it comes to sport. As a rule in marketing, the market-
ing mix was always viewed as the 4 P’s of marketing. However, in sport mar-
keting, there is an expanded role that publicity/or public relations play. These
are the methods and activities utilized to establish and promote awareness with
the public by disseminating information through various media outlets. With
this expanded role of publicity, that aspect has been broken away from being
a part of promotion into its own elements. Hence, the sport marketing mix has
evolved into the 5 P’s of sport marketing: product, price, place, promotion, and
publicity.
The successful interaction of the marketing mix with the target, as well as
between the elements themselves, is crucial to a successful marketing effort. This
interaction has a direct affect on the sport marketing professional’s decision
making process. Included in this process is the realization that interactions are
not always positive in nature. How does the sport marketer deal with this?
This is where strategy comes into play. The marketing mix can only be uti-
lized if it is in conjunction with understanding the 3 C’s of competitive analysis
(the chambers of the heart of sport marketing): the consumer, the company, and
the competition. We talk about segmentation, targeting, positioning, delivery,
differentiation, marketplace openings and environmental factors – but how do
we develop a strategy that takes into account all the facts that are important,
while having a full understanding of the cross-impact of all of these factors?
Unfortunately, many in the field of sport marketing do not know how, or do not
wish to spend the time. They often make decisions based on unfounded, pre-
conceived notions, or knee-jerk reactions. However, there are a series of ques-
tions, falling into three categories, which if answered can provide the
information necessary to make more effective and efficient decisions related to
the sport marketing mix as a whole:

■ Product impact
– What is the level of impact the marketing effort will have?
– Will the product increase the return on investment?

22 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
 – Would the introduction of a broader product range increase the possible
return on investment?
■ Potential risks
– What is the probability the marketing effort will be successful?
– Is it based on a theory that success has a low or high probability of occurring?
– Are competitors likely to respond with a better option?
– What are the risks of not pursuing the marketing strategy and being left
behind?
■ Feasibility
– Is the marketing effort feasible from a technical point of view (enough
resources – space, staff, and customers)?
– Is the marketing effort feasible from a financial point of view (affordabil-
ity, cash flow and net income implications)?
– Is the marketing effort feasible from a political point of view (support from
stakeholders)?

Once these questions have been answered, the sport marketing professional
can then effectively create a value chain for the effort. Adding value is a crucial
factor in marketing a product. The goal is to identify, evaluate, and understand
the consumer’s value chain and investigate the potential impact of the organi-
zation’s value chain on the consumer. The value chain shows the amount of
value that is added during the marketing process, which in turn facilitates dif-
ferentiation. Differentiation is the concept of being creating and demonstrating
distinct and specialized characteristics of sport products and services as com-
pared to those of its competitors. In the sport market, efforts toward differen-
tiation are centered on the following:

■ Purchasing: quantity discounts, package deals.

■ Products: improve features of extensions such as merchandise.
■ Distribution: faster delivery, ease of purchasing products, increase opportu-
nities to purchase the product.
■ Marketing communication activities: public relations, media relations, com-
munity relations.
■ Sales activities: appropriate pricing of products, selling products with the fea-
tures consumers need and want.
■ Customer service activities: convey product information to customers, avail-
ability to effectively and efficiently deal with customer problems and questions.

Sport marketing differentiation strategies are doomed to fail if the product

feature is not perceived as an influencing or determining factor by the con-
sumer. This includes charging a price that consumers perceive as being too high
relative to the additional features, or that the features have not been well con-
veyed to the consumer. Basically, if there is no understanding of or attempt to
identify how consumers define value, the marketing professional cannot imple-
ment an appropriate marketing plan, and hence the goal of differentiation will
fail. This, in turn will affect the profitability of the organization, which eventu-
ally could lead to its downfall.

M A N AG I N G T H E S P O RT M A R K E T I N G M I X 23
 THE ESCALATOR CONCEPT

To stay on the cutting edge of providing value for the sport consumer, the
sport marketing professional strives to establish ways to gain new consumers
into the sport market while enticing current sport consumers to become more
involved with the sport product. Earlier with regard to product usage we talked
about the Pareto Principle, otherwise known as the 80/20 rule. The utilization
of the 80/20 rule by marketers is fundamental to the development of segments.
But how do marketers then develop the segment over time? The concept that is
essential to this development process is the escalator concept. This concept is
utilized to represent the movement of consumers to higher levels of involvement
with a specified product. This concept is diagrammed in Figure 2.2.

FIGURE 2.2
THE ESCALATOR CONCEPT

Heavy users
M
ed
iu
m
us
er
s
Li

s
gh
tu

r
se

e
rs

m
u
s
n
o
M

C
ed
ia
co
ns
um
er
s

Aware nonconsumer
Misinformed nonconsumer Indirect
Nonaware nonconsumer consumers

Source: Mullin, B. J., S. Hardy, and W. A. Sutton (1999). Sport Marketing, 2nd ed., p. 36.
Champaign, IL: Human Kinetics.

24 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
Nonconsumers
A nonconsumer is an individual who does not use a good or service. There are
three levels of nonconsumers that the sport marketing professional must attempt
to identify with. The nonaware nonconsumer is an individual who does not
know about the sport product, and therefore is not a user of the sport product.
The sport marketer strives to get this demographic aware of the product so they
might choose to become a consumer in the future. The misinformed noncon-
sumer is an individual who is aware of the sport product, but does not purchase
because based on the information they do not associate themselves with the
sport product. The aim of the sport marketing professional is to change this
image of the product in the mind of the misinformed nonconsumer by providing
information that creates an association with the sport product. The aware non-
consumer is probably the most difficult to address, because they have knowledge
of the sport product and its benefits, and have chosen not to consume the sport
product. Often, these aware nonconsumers are so knowledgeable, they can sense
when the sport marketer is trying to influence them. The sport marketer must
attempt to change perceptions about a sport product, which involves a detailed
understanding of this aware nonconsumer’s value chain. Getting this type of
nonconsumer on the bandwagon often takes a lot of effort.

Indirect Consumers
Indirect consumers in the sport market are those who utilize the sport prod-
uct from a distance through the use of intermediate or intervening opportuni-
ties. For the sport product, this may include only watching sport on television,
only being a part of a fantasy league, or only purchasing peripheral products
such as hats and shirts. The goal of the sport marketer is to entice these sport
consumers to increase their level of involvement by purchasing more peripheral
products, or more realistically, attending events in person.

Light Users
The light users are those who are actively involved as indirect consumers, but
also attend an event one or twice a year. The goal of the sport marketing pro-
fessional is to get them more involved by having them attend more events. This
is most often accomplished through ticket packages and group plans.

Medium Users
The medium user is even more involved. They probably attend as many as
half of the events related to the sport product. The sport marketers attempts to
entice this sport consumer to move to the top of the “escalator” by showing
them the benefits of having season tickets, leasing a sky box, or attending
a hallmark event (Super Bowl, All-Star Game) associated with the sport product.

M A N AG I N G T H E S P O RT M A R K E T I N G M I X 25
Heavy Users
Heavy users are sport organizations bread and butter. These are individuals
who are fully engaged in the culture of the organization at a maximum con-
sumer level. The sport marketing professional must work to maintain this level
of expectation through their efforts, continually apprising the heavy user that
they are important and receiving the maximum benefits.
The key is to strive to increase the level of involvement in the sport product
over time, while limiting having anyone fall off or go down the escalator.
However, it is important not to forget those who do reduce their involvement.
By understanding their reasons for decreasing the connection with the sport
product, sport marketers learn valuable lesson to improve of their tactics as to
work toward preventing a reoccurrence of this dip in image and involvement.
Another challenge sport marketers face is that, depending on the sport prod-
uct, individuals can fall on different part of the escalator. For example, one
individual may be a heavy user for football, but a light user of basketball, and
an aware nonconsumer for baseball. Marketing efforts not only must differ
based on the level of consumer or nonconsumer, but also must differ for each
sport product. With so many sport products on the market, the task for the
sport marketing professional is challenging and never-ending.

DEVELOPING A SPORT MARKETING PLAN

Now that we have an understanding of the different levels of sport consumers

and nonconsumers, a sport marketing plan must be developed to address their
needs and wants. Sport marketing plans are comprehensive frameworks for
identifying and achieving a sport organization’s marketing goals and objectives.
The process used in developing a sport marketing plan is a 10-step process.

Step 1: Identifying the Purpose of the Sport

Marketing Plan
All individuals involved with a sport organization must be involved in the
process of writing mission and vision statements, as well as developing goals
and objectives. This is to ensure that all members of the sport organization will
be committed to carrying out the plan acting in accordance with the organiza-
tional philosophy.

Step 2: Analyzing the Sport Product

The sport product is three-dimensional – tangible goods, intangible support
services, and the game or event itself:
1. Goods include tangible items such as clothing (e.g., shoes, licensed
apparel) and equipment (e.g., bats, balls, racquets).

26 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
 2. Intangible support services include activities or programs that are sup-
plementary to sport but necessary for its operation (e.g., game officials,
operations staff, office support).
3. The game or event itself is composed of two parts – the main product
and the product enhancements:
– The main product of the event is the actual competition taking place.
– The product enhancements are the extras during the event, such as the
mascot, music, halftime entertainment, concessions, and cheerleaders.
These serve to enhance the overall experience for the customer.

Step 3: Forecasting the Market Climate

Assessing the sport climate requires examining internal and external factors as
they affect marketing efforts. Assessing the past market climate enables managers
to identify factors associated with successful or failed marketing efforts. Forecasting
the future market climate requires reexamining the organization’s mission. This
involves the aforementioned SWOT (strengths, weaknesses, opportunities, and
threats) analysis – assessing the strengths and weaknesses of an organization or
event and the opportunities and threats faced by an organization or event.

Step 4: Positioning the Sport Product

When positioning the product, the sport marketing professional must take
into account six distinct markets for sport: three are considered primary mar-
kets and three are considered secondary markets:

■ Primary markets
– Participants: athletes, coaches, and game officials.
– Spectators: stadium attendees, television viewers, radio listeners, and
newspaper or magazine readers.
– Volunteers: social hosts at sport events, statisticians, and team managers.
■ Secondary markets
– Advertisers: use sports to target and communicate their products to large
groups of spectators.
– Corporate sponsors: use sports to target and communicate positive and
distinctive images about their products to large groups of spectators.
– Athletes’ endorsements of products and licensed products: personalities
and celebrities or distinctive symbols, logos, or trademarks encourage con-
sumers to perceive products as popular or prestigious.

Step 5: Segmentation and Targeting Consumers

This step involves grouping consumers according to common characteristics.
Segmentation is most commonly analyzed using demographics, psychographics,

M A N AG I N G T H E S P O RT M A R K E T I N G M I X 27
or based on media preferences. Demographic segmentation refers to grouping
sport consumers based on their age, gender, income, race or ethnicity, education,
and place of residence. Psychographic segmentation refers to influencing the
consumers’ attitudes, interests, and lifestyles. Market segmentation based on
media preference categorizes consumers based on their sport media preferences
(such as television, radio, Internet, magazines, or publications). This helps to
identify smaller groups to be targeted, and allows the sport marketer to develop
an effective and efficient strategy to reach the target market.

Step 6: Packaging the Sport Product

This is the way the consumer will view the sport product. Since consumers
view products in different ways, it is necessary to present the sport product
in different ways. Packaging tangible or industrial sport products involves
explaining the benefits of the products such as the strength and longevity of
metal bats, comfort and safety of helmets, or the expanded sweet spot of over-
sized tennis rackets. Packaging the core product of sport (the game or event
itself) involves communicating about the expectations of the product and pro-
viding information before the point of purchase. Another aspect of product
packaging is the manner in which product enhancements (discussed in Step 2)
are included in the overall sport experience.
Another aspect of packaging the sport product is the associated licensed mer-
chandise. For example, many sport teams and events offer goods such as hats,
T-shirts, jackets, and other apparel. They also offer non-apparel such as novelty
items and sport memorabilia that are perceived as extensions and representa-
tions of the respective teams.
Also utilized to package the sport product is sponsorship. Sponsorship
involves an agreement between a sport organization and a corporation where
the corporation pays a fee to the sport organization to acquire rights to affiliate
with the organization or an associated event for the purpose of deriving bene-
fits from the partnership. Sponsorships can help corporations increase sales,
change attitudes, heighten awareness, and build and maintain positive relation-
ships with consumers. An example of this would be the college football Bowl
Championship Series – where it is the Tostitos Fiesta Bowl, the Nokia Sugar
Bowl, the FedEx Orange Bowl, and the Rose Bowl presented by Citi.

Step 7: Pricing the Sport Product

Price is the factor that is most visible and flexible, especially as a result of
sales, discounts, rebates, and coupons. Creating a strategy for pricing is integral
to the success of the sport organization because it has a significant impact on
the success of the overall sport marketing plan.
Sport marketers must consider the 3 C’s described early in the chapter within
the “heart of sport marketing”: the company itself, the sport consumer, and the

28 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
competition. In addition, pricing is directly affected by the external factors
including government regulations, the economic climate, and politics.

Step 8: Promoting the Sport Product

Promoting sport products involves implementing a mix of activities that will
communicate the preferred image of the sport product to selected targets, edu-
cate the target audience about the sport product and its benefits, and ultimately
persuade the sport consumer to purchase the product. The following elements
compose a promotion strategy:

■ Advertising: Presenting a one-way paid message about the sport product (news-
papers, magazines, television, radio, direct mail, scoreboards, in-arena
signage, pocket schedules, game programs, posters, and outdoor advertising).
■ Community relations: Activities and programs arranged by a sport organiza-
tion to meet the interests and needs of the public and, by doing so, establish
good faith relationships with the public (youth sport clinics, athlete auto-
graph signing opportunities, and collecting food items at arenas to help peo-
ple in the community).
■ Media relations: Maintaining positive relations with networks and individu-
als in the media to obtain positive media exposure for a sport product (sched-
ule informal and formal information sessions with media representatives).
■ Personal selling: Direct face-to-face communication with individuals, groups,
or organizations to sell tickets, luxury suites or boxes, or sponsorships.
■ Promotions: Activities and inducements to encourage consumers to purchase
the sport product (giveaways, coupons, free samples, cash refunds, contests,
and raffles).
■ Public relations: A sport organization’s overall plan for communicating a
positive image about its product to the public, including implementing com-
munity and media relations activities and programs.
■ Sponsorship: Forming a partnership between sport organizations and corpo-
rate entities as a form of promotion.

Step 9: Distribution (Place) of the Sport Product

Place refers to the location of the sport product (stadium, arena), the point of
origin for distributing the product (ticket sales at the stadium, sales by a toll-
free telephone number), the geographic location of the target markets (global,
national, regional, state, communities, cities), and other channels that are
important to consider regarding whether target audiences may access the prod-
uct (such as time, day, season, or month in which a product is offered, as well
as the media distribution outlets consumers may use to receive the product
experience). Factors related to the physical location of the sport can have a
favorable or unfavorable impact on the marketing plan as well.

M A N AG I N G T H E S P O RT M A R K E T I N G M I X 29
Step 10: Evaluation and Feedback about the Sport
Marketing Plan
This evaluation requires obtaining feedback (from inside and outside the
organization) about the marketing plan. The feedback must then be analyzed
and evaluated. The evaluation should focus on determining the extent to which
the plan helped the organization achieve its mission by acting in accordance
with the core values of the organization.

MOUNTAIN DEW AND THE X GAMES

In an interview with Carolyn Sy, Marketing Analyst for PepsiCo, she dis-
cusses how the product line Mountain Dew brand is involved in sponsoring
and producing alternative sports events, and how they have benefited from
their relationship with these sports.
During the summer of 1995, the American public added two terms to its
vernacular that would become a staple to describe America’s youth for the
next decade: extreme and Mountain Dew. In the summer of 1995, ESPN
launched its first Olympics for alternative sports. The Extreme Games, later
renamed to the X Games, debuted in Providence/Newport, Rhode Island
and neither ESPN nor PepsiCo has been the same since.
The Extreme Games were born from an idea by ESPN’s Director of
Programming, Ron Semiao. Sitting in his home on his sofa one Sunday after-
noon, Semiao realized that extreme sports were emerging not only in partici-
pation, but also in a competitive nature. From this idea a phenomenon was
created. Today, that phenomenon has turned into a lucrative event that mil-
lions of television viewers watch twice a year (summer and winter). This phe-
nomenon spun from a couch side brainstorm, has not only become lucrative
for ESPN, but for its sponsors as well (ESPN.com).
No X Games sponsor has reaped more reward from the event’s success
than has Mountain Dew. Mountain Dew, the original “extreme” sponsor,
has received financial as well as brand awareness and recognition success
only paralleled by MasterCard’s sponsorship of FIFA’s World Cup. Just as
Semiao saw alternative sports as a way for ESPN to connect with the 12–24-
year-old demographic, PepsiCo did also. Pepsi had been in limbo with its
“alternative” brand of soda, Mountain Dew. The company saw these types
of sports as its opening to the youth market.
Mountain Dew became the Extreme Games’ first title sponsor, and has
stayed with ESPN as a title sponsor. Mountain Dew was there for the trans-
formation of the Extreme Games into the X Games. Mountain Dew was
there for the formation of the first Winter X Games, and was also there when
ESPN decided to take the event global. By staying on board with ESPN and

30 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
 MOUNTAIN DEW AND THE X GAMES – Continued

keeping its title sponsorship package, Mountain Dew has created brand
awareness, recognition, and loyalty with ESPN’s X Games’ demographic.
Over the past decade, Pepsi has used the success it has had with its brand-
ing effort of Mountain Dew through alternative sports, and has continued it
into a vertically integrated platform within the alternative sports industry.
Today, Mountain Dew is not only branded nationally via the X Games, but
the brand is also integrated into the alternative sports’ culture at the regional
and local level as well.
On a regional platform, Mountain Dew sponsors the Vans Triple Crown
Series. These events feature the world’s top alternative athletes participating
in premier venues throughout North America in six disciplines: skateboard-
ing, wakeboarding, BMX, freestyle motocross, surfing and snowboarding.
Sponsoring regional events allow Mountain Dew to gain a more intimate
connection with its consumers. Consumers now see Mountain Dew as not
just a title sponsor of major corporate media events, but as a company that
truly cares about the development of alternative sports and athletes.
This passion to connect with its young consumers in the alternative sports
arena is evident through Mountain Dew’s local sponsorship campaign.
Mountain Dew’s Free Flow Skatepark Tour is a grassroots level campaign
specifically aimed at the development of alternative sports and athletes. The
tour makes stops at 18 skateparks across the United States and is targeted for
the amateur alternative athlete who is looking to accelerate his/her athletic
career. At each stop, three contest winners are crowned and given the oppor-
tunity to join the Mountain Dew Free Flow Team. Mountain Dew provides
the team members with money and equipment so that they can make an
effort to progress their skateboarding abilities. It is grassroots campaigns
such as this that enables Mountain Dew to stay credible within the alterna-
tive sports industry, and maintain high brand awareness and loyalty.

Source: Adapted from Schwarz, E. C., D. Blais, and K. Detjen (2003) [Interview with
Carolyn Sy, Marketing Analyst, PepsiCo]. In the New Face of Sport Marketing: Goodbye
Michael Jordan, Hello Tony Hawk. Gainesville, FL: Presented at the Inaugural Sport
Marketing Association Conference.

Suggested Discussion Topics

1. The case discusses the successes of Mountain Dew at the local,

regional, and national level. The case also describes inviting the world’s
top alternative athletes to participate in the Vans Triple Crown Series
at various venues in North America. Assume you are the Director of
Event Marketing for Mountain Dew, and you have been asked to
determine where the best place would be to hold the Vans Triple
Crown Series outside North America. Looking at the series of questions

Continued

M A N AG I N G T H E S P O RT M A R K E T I N G M I X 31
 MOUNTAIN DEW AND THE X GAMES – Continued

discussed in the chapter about developing a strategy in congruence

with the sport marketing mix (product impact, potential risk, and fea-
sibility), explain in detail the location you would choose for this event
and the process followed for making that decision.
2. Utilizing the 10 steps for developing a sport marketing plan, create an
annotated outline for marketing this event in the location chosen.

WHY THE THEORY AND PLANS DO NOT

ALWAYS WORK

All the sport marketing plans in the world are great in theory, but they do not
always work. The major reason for this is having a lack of vision. There is a
tendency to look for instant gratification – what is going to be successful right
now. This lack of foresight in sport marketing ventures is known as a market-
ing myopia. A summary of research shows that the major reasons there is a
marketing myopia in sport are:

■ There is a tendency to produce and sell goods, rather than identify needs and
satisfy customers. This is a result of sport organizations failing to spend time
and money on quality market research, which in turn has lead to a major
shortfall in data collection and analysis.
■ There is a belief that winning equals sales, which in most cases is not true.
■ There is confusion between what marketing is and what promotions are.
■ Sport organizations tend to be shortsighted – the “I want it now” principle.
■ Since there is such an overabundance of people wishing to enter the sport
field, starting salaries are often very low. There is an effort to offset these low
salaries by including commissions, but the lack of guaranteed income scare
many quality potential marketers away.
■ With sales being driven by quotas and commissions, organizations tend to
put little emphasis on training, tactics, and sales as a strategy. If a sport mar-
keter can sell, only then will time be put in. This has created a slow growth
of professional sport marketing staff.

CONCLUSION

Sport marketing is unique for numerous reasons, but most importantly because
the primary sport product, and hence the market, is traditionally demand based,
whereas most generic products are marketed based on need. These concepts are

32 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
elaborated upon in the chapter, as well the impact of the sport marketing mix, the
escalator concept, and the elements of the sport marketing plan.
Sport marketing is unique to traditional marketing in numerous ways:

■ The sport product takes many forms including a consumer good, a consumer
service, a commercial good, or a commercial service.
■ The main sport product is perpetually intangible, subjective, and variable.
■ Sport and hence the sport product has an appeal that is wide and varied.
■ The sport product is normally publicly consumed and consumer satisfaction
is directly affected by the external environment.
■ Sport product elicits strong emotional connections.
■ Sport consumer believes that they are the experts when it comes to knowl-
edge of the product.
■ The sport product is a perishable commodity.
■ Since the sport product is demand based, the consumer demand for the main
sport product varies greatly.
■ Sport organizations concurrently compete and cooperate.
■ Sport marketing efforts focus more on product extensions than the primary
sport product.
■ Influences from mass media have resulted in a reduced emphasis on tradi-
tional sport marketing.

The oversaturation of sport in the mass media has resulted in an evolution in

the traditional method of controlling and coordinating the marketing mix. This
exposure is called publicity. The expanded public relations efforts have forced
marketers who traditionally viewed the marketing mix as the 4 P’s of market-
ing evolve their theory into the 5 P’s of sport marketing – product, price, place,
promotion, and publicity. Strategic implementation of the sport marketing mix
can only be utilized if it is in conjunction with understanding the 3 C’s of com-
petitive analysis – the consumer, the company, and the competition in terms of
product impact, potential risks, and feasibility. Ultimately this analysis seeks
to determine how to provide value to the sport consumer, and enticing them to
become more involved with the sport product. The concept that is essential to this
development process is the escalator concept. This concept is utilized to represent
the movement of consumers to higher levels of involvement with a specified
product – whether they are nonconsumers, indirect consumers, light users,
medium users, or heavy users.
Sport marketing plan must be developed and utilized to address the needs and
wants of the sport consumer. Sport marketing plans are comprehensive frame-
works for identifying and achieving a sport organization’s marketing goals and
objectives. The process used in developing a sport marketing plan is a 10-step
process:

1. Identifying the purpose of the sport marketing plan

2. Analyzing the sport product
3. Forecasting the market climate
4. Positioning the sport product

M A N AG I N G T H E S P O RT M A R K E T I N G M I X 33
 5. Segmentation and targeting consumers
6. Packaging the sport product
7. Pricing the sport product
8. Promoting the sport product
9. Distribution (place) of the sport product
10. Evaluation and feedback about the sport marketing plan

Sport marketing plans are great in theory, but they do not always work. The
major reason for this is having a lack of vision. There is a tendency to look for
instant gratification – what is going to be successful right now. This lack of
foresight in sport marketing ventures is known as a marketing myopia. Is it the
goal of the sport marketing professional to avoid these pitfalls by engaging in a
sport marketing effort that is efficient, effective, and addresses the wants and
needs of the sport consumer.

FROM THEORY TO PRACTICE

Brady Sadler, Director of Sales and Marketing
Manchester Wolves Professional Arena Football (Af2) Team
Manchester, New Hampshire

Like many young college students I was unsure of what I wanted to pur-
sue in terms of a career. I was always told that the equation for a great job
was finding something that you would love to do and then finding a way to
get someone to pay you for doing it. To this end, I was interested in politics
from the young age. My father was involved in town government and while
in Junior High I volunteered for the 1992 presidential campaign. This was of
course the year that Bill Clinton won the presidency and stopped a
Republican run that had lasted over a decade. Clinton’s campaign and pro-
motion did not resemble the past races that my elementary school history
books had taught me about. The PR for this campaign resembled a plan for
a rock star more so than a politician. They were selling the image and brand-
ing of Bill Clinton, his energy and charisma, more than his stance on particu-
lar issues. New, young, fresh and in touch with society, that was his platform.
It was truly an important period in the history of politics and an exciting
time to be involved. I may not have even known it at the time but this was
my first taste of marketing. The experience exposed me to aspects
of advertising, media, event planning, cold calling, crisis management and
a number of other skills I would later apply to my position in sports.
I stayed involved in politics in high school and held a number of positions
with my class and student council. In these positions I learned to market
myself as well as specific events that we planned. My high school also had a
state-of-the-art video editing suite. I began to learn the basics of film editing

34 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
 FROM THEORY TO PRACTICE – Continued

and assisted in producing a video year book for my senior class. We mar-
keted the sale of the video by making it known that every student in the class
would be featured along with every sports team. This helped to make it
appealing to all classes and even the teachers. Seeing the final product shown
at random parties throughout the summer made me realize how much I
enjoyed being involved with projects that entertained audiences.
My involvement was not always behind the scenes. I hosted some of our
high school programming as well as my own segment on a public access
show called Brady’s News and Views. With this experience under my belt
I decided that I would go to college for broadcast journalism. Though it was
interesting, I soon learned that I did not like the production side of the video
work as much as I liked marketing a product itself. I began taking more
marketing-based classes and soon made that the focus of my major in com-
munications. I had not totally lost sight of my interest in government and
decided to minor in Political Science.
Upon graduation I accepted an internship with the Walt Disney Company.
The College Program internship was one of the best experiences I have ever
had. While in Orlando I was taken through a number of rigorous customer
service training sessions. Mastering this skill would be something I would take
with me and continue to apply every day of my life. The program gave me a
chance to see how one of the most successful companies and brands in history
operated. The company philosophy was that there were no employees. Every
worker was considered a “cast member” and all patrons were referred to as
“guests.” Instead of working, we were told that we were putting on a “show.”
While onstage, anywhere that guests were permitted, every cast member had
their part in the show. This instilled a sense of accountability in all that were
involved. On a daily basis my part in the show required a variety of responsi-
bilities from welcoming guests, explaining safety precautions, giving tours, and
even putting guests on rides. Additional opportunities such as seminars with
company leaders and departmental shadowing programs were always avail-
able. Interns were encouraged to seek these out and I certainly did. This taught
me that an experience can really provide whatever one is willing to put into it.
I got my start in professional sports through networking. I talked with any-
one in business that would take the time to answer some questions. I went on
a few job interviews just for the sake of it and had a chance to learn
about some different companies. A month or so into this networking phase
I was introduced to the general manager of the Mohegan Wolves Arena
Football team. My father had attended a Rotary Club meeting where the
General Manager was giving a presentation and made the connection. On the
day of our first meeting I learned that the team was starting a call center dedi-
cated to tickets sales. I was offered a part time job on the spot and decided to
give it a go. During the orientation stage we learned about the sport of Arena

Continued

M A N AG I N G T H E S P O RT M A R K E T I N G M I X 35
 FROM THEORY TO PRACTICE – Continued

Football, the different ticket plans and the pricing structure. Next, to help us
prepare for anything we might encounter when calling, we role-played poten-
tial phone scenarios. The compensation plan consisted of an hourly wage,
commission and bonuses for added motivation. The sales board, displayed for
everyone to see, created a competitive atmosphere. Although the nightly 4-
hour calling shift could be extremely dull and monotonous, I developed some
great phone skills. I would later learn from a well-established business mogul
that the phone can be a businessperson’s best tool.
Week after week I was consistently atop the leader board in sales. Being
from Connecticut, I used my hometown roots to help drive sales and began
to inquire about group sales and sponsorship. These were not sales that fell
under our job description so the initiative was immediately recognized. I was
also given the opportunity to become the production assistant for the team’s
weekly television show. This was a volunteer position but I knew the experi-
ence was more valuable then any pay could have been. Before long I was
offered a full-time position as the team’s Director of Group Sales and
Marketing. I was not very excited to stay in Connecticut but I knew that the
opportunity was unique and the experience would be worth the sacrifice.
At the end of my first season in Connecticut the team was purchased by a
group of businessmen and relocated to Manchester, New Hampshire. Most
all of the staff and the local partnering organizations were not aware that
this move was going to take place until only a week or two before it was offi-
cially announced. I was given the opportunity to move along with the club or
take on a position with another team already established in the league. I
chose to move with my team because I wanted to gain the experience of
working in a completely new market. I was in for more than I could ever
imagine. I came to find out that starting a new team is very similar to running
a political campaign.
The team had to be introduced to the public, gain their respect and to win
their support. This was even more challenging because many citizens of this
new state had never even heard of Arena Football. The NFL was hugely popu-
lar, but few knew whether or not we were bringing legitimate professional
football or an unorganized and contrived product that resembled the XFL.
Our mission became proving ourselves as a sport and organization.
We began with a press conference at the team’s new arena. Opening 2
years prior, the building was already one of the busiest in the world for its
size and represented re-growth and prosperity in a city that was experiencing
a renaissance. During our first official public appearance as an organization
it was important to position ourselves with this great arena and everything it
meant to the people of the city.
On that day I was introduced to the eight local owners, all of which had
grown up in the area and become very successful in their respective businesses.
Although the team was not yet established, the ownership group had been

36 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
 FROM THEORY TO PRACTICE – Continued

laying the groundwork for sponsorship, season ticket sales, media connections,
charitable alliances and political influence all their lives. By aligning ourselves
with the ownership group we had some immediate legitimacy, though there
was a lot of work to do before we would be established. It became my job to
essentially build off of the foundation that was laid by the owners. Although
my position would require involvement in corporate sponsorships, media buy-
ing, event planning, public relations and much more, there was never a day
that ticket sales did not play a major role in what I was doing.
Tickets are the lifeline of every team. Without the fans and consistent
attendance it is impossible to operate the business. A team’s season ticket
base is its bread and butter. Year after year these fans will not only attend all
of your games, but if treated right will act as ambassadors for your organi-
zation. I would encourage anyone who is interested in a career in sports to
immediately learn about ticket sales. No matter what aspect of a front office
you are working for, there will come a time when someone will ask you a
question about tickets. A basic understanding of the process will help main-
tain the professionalism that your team will inevitably strive for. This profes-
sionalism is in essence customer service. The skills I learned during my tenure
at Disney had prepared me to deal with almost any fan problem or inquiry.
Even if I did not have the answer they were looking for or could not fix the
problem, I had been trained to make the person feel that they were extremely
important and do everything that I could to rectify the situation. This takes
good communication, planning, patience, and pride in ones organization.
Over the course of the off season it was very apparent that everything we
were doing was leading up to our first event. Having a well prepared and
properly trained staff was very important to our show. By “show” I mean the
ancillary things that go on during game days outside of the games them-
selves. For our team the goal was not to provide eight home games but to
put on eight major events. Each event began with a free outdoor pre-game
concert. Also on the plaza was a 50-feet rock climbing wall that we acquired
by partnering with a local climbing gym. Upon entrance to the arena each
fan received a great giveaway item. From bobble heads to touchdown tow-
els, these items contained the logos of companies that had paid us to distri-
bute them to fans. Once inside fans were treated to face painting, balloon
animals and a number of games and amusements on the concourse. Team
introductions consisted of pyrotechnics, a light show and 20 Harley
Davidson’s escorting a professional dance team. During the game the video
board provided additional entertainment while a blimp flew over fans drop-
ping gift certificates and coupons. After the game fans were invited onto the
field to meet the players, coaches, and dance team members for autographs
and pictures. A field goal kicking station was also set up so that fans could

Continued

M A N AG I N G T H E S P O RT M A R K E T I N G M I X 37
 FROM THEORY TO PRACTICE – Continued

experience what the players had just demonstrated. Each event offered some-
thing for everyone in the family to enjoy even if they were not a football fan.
Opening night was a momentous occasion. Although most of us had not
slept in weeks, the crew rallied and we put on a fairly good show. Luckily
many of the mistakes were behind the scenes, and there were many of them.
I began preparing a list of individual responsibilities for everyone on my
staff. They included in-depth descriptions of what was expected and when it
was to be done. When the crowd is screaming, the music is blaring and the
team is on the field, it can be very easy to get caught up and forget what one
is supposed to do. This is the most important thing that I took away from my
experience working for the team. Leave nothing to chance and provide safety
nets for your staff. If presented in the right manner, people will appreciate
and respect the attention to detail.
Note: In September 2005, Brady was hired as an Account Executive for
the marketing and public relations firm Griffin, York, and Krause. The firm
manages a number of local, national and international accounts in a variety
of areas including sport organizations, political campaigns, governmental
agencies, and multi-brand corporations.

38 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
 II
UNDERSTANDING
THE SPORT
CONSUMER
This page intentionally left blank
 SPORT MARKETING
RESEARCH

3
CHAPTER OUTLINE

What Is Sport Marketing Research?

Sport Marketing Research Process
Determining the Need for Sport Marketing Research
Defining the Problem
Establishing Sport Marketing Research Goals and Objectives
Choosing the Appropriate Research Methodology
Identifying Sources of Information
Determining Methods for Collecting Primary Data
Designing Data Collection Forms
Determining Sample Size
Examining Data and Drawing Conclusions
Research Reports and Services within Sport Marketing Research
Sample List of Sport Marketing Research Companies
Sample List of Sport Marketing Research Publications
Online and Web-Based Sport Marketing Research
Conclusion

CHAPTER OBJECTIVES

The main objective of this chapter is to expand on the concepts of market

segmentation, positioning, and demand analysis to develop basic capabilities in
advertising research, competitive analysis, and strategic outcomes assessment,

41
in sport marketing. Inclusive of this will be an analysis of the sport marketing
research process including the development and implementation of focus group
research, survey research, and experimental studies; the identification, retrieval,
and analysis of secondary data; the utilization of qualitative and quantitative
research methodologies; and the application of the research method. The chap-
ter will conclude with a description of research services within sport marketing
research, including but not limited to studies of customer satisfaction, eco-
nomic impact, need assessment, organizational behavior, and risk assessment.
Specifically, the reader will be able to:
■ Recognize the purpose and uses of sport marketing research.
■ Distinguish between the steps of the sport marketing research process,
including realizing the importance of each step and the development process
associated with those steps.
■ Know the variety of research services in sport marketing research and how to
access them.
■ Understand the difference between sport marketing research and online sport
marketing research.

WHAT IS SPORT MARKETING RESEARCH?

Sport marketing research is the collection and analysis of information about

sport consumers, market niches, and the effectiveness of sport marketing initia-
tives. This is accomplished by first identifying and defining market opportuni-
ties and threats, and then designing, implementing, managing, and evaluating
marketing actions via the marketing plan. Sport marketing research is a 10-step
process as follows:
1. Determining the need for sport marketing research
2. Defining the problem
3. Establishing sport marketing research goals and objectives
4. Choosing the appropriate research methodology
5. Identifying sources of information and determining methods for
collecting data
6. Designing data collection forms
7. Determining sample size
8. Collecting data
9. Examining data and drawing conclusions
10. Preparing and presenting the final research report

SPORT MARKETING RESEARCH PROCESS

Determining the Need for Sport Marketing Research

Research is needed for many purposes within sport marketing. In some cases,
research is conducted when there is a lack of information about what is going

42 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
on within the targeted market, and the organizations cannot make informed
decisions about their marketing efforts. In other cases, research is utilized to
examine the perceptions of sport consumers in relation to a myriad of areas
ranging from attendance at events to sponsorship and brand awareness. Sport
marketing research is even needed when there is existing information, but the
application of the information is unknown.
The purpose of sport marketing research is twofold. First, it is used to
determine if there are opportunities in the market for the sport organization
to take advantage of. This may include a lack of competition in the overall,
a market niche void of competition, or an opportunity to offer better products
or services than that of the current members of the segment. Second, it is
utilized to determine the threats to the sport organization. This involves
an evaluation of marketing performance and determining whether the mar-
keting efforts are working. If they are not, the sport marketing professional
then must modify current marketing strategies, or create new marketing
actions.
Sport marketing research ultimately will significantly decrease the uncer-
tainty in making marketing decision. Unfortunately, many sport organizations are
not willing to spend the time necessary to conduct appropriate sport marketing
research. Some of the reasons include a lack of time, funding, or resources.
However, a major reason that most sport organizations do not conduct research
is because they do not know how to in an efficient and effective manner. Those
who enter the sport marketing profession with a clear understanding of how
to manage the sport marketing research process become a significant asset to
the sport organization.
Another major problem is not being able to separate being a marketing man-
ager and a marketing researcher. In larger organizations, these may be two sep-
arate positions – the marketing manager controls the marketing resources and
efforts of the sport organization, whereas the marketing researcher investigates
the needs of the sport organization and plans for meeting those needs. However
in most sport organizations, the sport marketing manager must also conduct
the research for the organization. Therefore, it is imperative that the sport mar-
keting professional know how to separate those roles.
The role as a sport marketing researcher is to generate and ask questions, and
develop the techniques necessary to accomplish the task at hand. The sport
marketing researcher must view the organization in an unbiased manner – they
cannot let politics or emotional involvement with the organization affect their
research. If bias enters the equation, there may be invalid, unreliable data that
will prevent appropriately defining the problem or determining the most suit-
able method for solving the problem.
In general, the sport marketing researcher is conducting a cost–benefit analy-
sis to determine the loss to the organization if the problem is not addressed.
Therefore, sport marketing research is conducted when problems or changes in
the market takes place, new marketing objectives are implemented that result in
changes in marketing action, there is an opportunity to secure a competitive
advantage in the market, or there is a need to reevaluate the status of your
competition.

S P O RT M A R K E T I N G R E S E A R C H 43
Defining the Problem
Once it has been determined that there is a need to conduct sport marketing
research, the problem must be defined. This is the most important step in the
sport marketing research process. Without a clear understanding of the purpose
for the research, appropriate goals cannot be developed, actions cannot be
planned, and a solution cannot be achieved.
One of the major problems within sport marketing today is confusing symp-
toms of problems with the actual problem itself. An example of this would be
a baseball team seeing a 10% decline in ticket sales. Typical conclusions that
have been drawn include increasing the amount of advertising, offering ticket
promotions, or give rewards or incentives to customer who attend (example: $1
off French fries at McDonald’s after the game). However, has the organization
actually determined the problem? These snap decisions are typical with sport
organizations because of lack of time, money, or resources. However, if the
organization simply took stock of the situation, sat back, and completed some
basic research, they could determine the true problem and direct their market-
ing efforts accordingly.
So how do we define the problem? First there must be a full evaluation of the
sport organization, including history and culture, products and services,
strengths and weaknesses, perceived opportunities and threats, resources avail-
able, and any recent marketing strategy changes. The researcher must also
understand what the overall mission, goals, objectives, and vision for the sport
organization are. By evaluating all this information, the sport marketing
researcher can get a full understanding of the sport organization, and poten-
tially discern patterns or deviations from norms.
After assessing the organizational situation, the sport marketing researcher
then clarifies the situation in terms of indicators of change. Some of these indi-
cators include changes in sales volume, market share, profit, and complaints.
The sport market researcher cannot look at each indicator at face value only –
often they must delve into each indicator in significant detail to determine any
potential underlying causes of the problem.
As the researcher collects this information, they are evaluating all the data in
an effort to pinpoint actual problem. For every problem, there is an underlying
cause of that problem. Therefore, as the data is evaluated, indicators that are
determined not to be a cause of the problem are eliminated from consideration.
This allows the sport marketing researcher to narrow the focus and target the
most likely causes of the problem by creating a list of probable causes. These
probable causes will eventually lead to the development of the true problem
statement.
After these probable causes are determined, the sport marketing researcher
must come up with potential solutions to address these causes and hence
resolve the problem. These solutions can range from changing the price of a
product or service, improving service, modifying products, implementing new
promotions, and making changes to the channels of distribution. A caution
when making these changes – the sport marketer must ensure that the solution
does not have a negative impact on other parts of the sport organization.

44 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
Establishing Sport Marketing Research Goals
and Objectives
The aforementioned potential solutions are then articulated in terms of
research goals and objectives. Sport marketing research goals are the list of
items that need to be accomplished to rectify a problem. The objectives are the
steps that will be undertaken to accomplish each goal.
These goals and objectives formulate the backbone of the sport marketing
research plan.
Research goals and objectives must be accurate, detailed, clear, operational,
and measurable. To facilitate the development of these goals and objectives, the
sport marketer must develop constructs and operational definitions, define or cre-
ate relationships between those constructs, and identify the model(s) to be used to
conduct the research. A marketing construct is the item which is to be examined
or measured. The operational definition is how the construct will be measured.
This is usually in a question format that will be used in a specific measuring tool.
The sport marketer will then look for relationships between the constructs, which
will identify significant links between two or more constructs and help in the
development of concise outcomes. The development of these concise outcomes
will then be logically ordered and research questions developed. At this point, the
sport researcher will choose an appropriate research method to answer the
research questions.

Choosing the Appropriate Research Methodology

The research method is a plan for a study that steers the collection and analy-
sis of information gathered. There are two major sources of information in sport
marketing research. Primary data is information collected by the sport marketer
specifically for the research project. This is normally achieved through personal
contact, either by mail, telephone, email, or face-to-face. The methodologies
utilized in collecting this type of data will be discussed later in the chapter.
Secondary data is information that has been collected by another source or
for another purpose prior to the current research project, and is being evaluated
for use to solve the problem at hand.
The availability of secondary data is endless, so the sport marketer must
understand the various classifications and sources of this data.
One of the common misconceptions is that secondary can only come from
external sources from the sport organization, such as from the Internet and
research studies. While these sources are very important, some of the most vital
secondary data can be found within the sport organization. Data such as sales
records, surveys and questionnaire administered by other departments, end-of-
year reports, and program and operational evaluations can be utilized as a solid
starting point for any research effort. In addition, internal databases that col-
lect generic information for the sport organization can also be extremely valu-
able. All of this internal secondary data starts to tell a story about the sport
organization, how it works, and possible directions to take the research.

S P O RT M A R K E T I N G R E S E A R C H 45
 As noted, external sources including the Internet and research studies are
also valuable sources of secondary data. With regard to the Internet, it contin-
ues to be the fastest growing source of information not only for sport market-
ing research, but for all types of research. However, one of the cautions of using
Internet-based information is guaranteeing the reliability of the source, and
validity of the data. Almost anyone in the world can post something on the
Internet. Determining the data that is most important to your organization,
while ensuring that it is from an appropriate source is quite a challenge.
Hence this is why most researchers tend to use research studies. The sources
are usually valid and reliable, accepted on a global scale across the industry, and
are usually issued through a publisher, syndicated service, or database. Some of
the major sources of secondary data in the sport marketing field include market-
ing journals such as Sport Marketing Quarterly (www.smqonline.com), online
databases such as the Sport Business Research Network (www.sbrnet.com),
sports marketing research companies such as American Sports Data (www.
americansportsdata.com), and independent market research studies conducted
by numerous corporations and organizations around the world. Some of the
key demographic and general sources of secondary data often used in sport
marketing include the United States Census Bureau (www.census.gov), the
United State Government Printing Office (www.po.gov), the Survey of Buying
Power (www.salesandmarketing.com), and Demographics USA published by
Bill Communications. With the increasing popularity of lifetime sports and
alternative sports, the Lifestyle Market Analyst (http://www.srds.com/front
Matter/ips/lifestyle) published by SRDS has become an increasingly important
tool in understanding lifestyle marketing, customer relationship marketing
management, and consumer experience marketing management.
The type of primary or secondary data to be utilized depends on which one
of the three major methods for conducting research is utilized: exploratory,
descriptive, or causal.

Exploratory Research

Exploratory research is conducted when there is little or no information about

an opportunity or threat. This is the most difficult methods of research because it
is impossible to create a plan of action in advance, instead working with impres-
sions and assumptions based on personal experience or expertise. The gathering
of information is usually informal and unstructured. This means that the sport
marketing researcher will collect as much data as possible in order to gain as
much information about the situation as possible. As the problem becomes
clearer, the collected data is evaluated and a determination of which information
should be kept and which can be discarded is made. Eventually the problem will
become evident, and a plan of action can be created. Sport marketing profes-
sional often do not wish to engage in this type of research because of the time
needed to complete the process. They often would rather use a “best guess” sce-
nario and hope they stumble upon the right conclusion. However, quality
exploratory research can reveal significant background information, clarify prob-
lems, define concepts, generate hypotheses, and create a list of research priorities.

46 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
Descriptive Research

Descriptive research utilizes data that describes the “who, what, when, where,
and how” of a potential problem. This information is very factual and accurate,
but does not take into account the cause of the situation. Although this method
is most often used in sport marketing circles via observations and surveys, there
is still a major fear in conducting this type of research because of mathematics.
Many people have a fear of numbers and commonly misinterpret the difference
between math and statistics. Math involves the actual solving of equations,
whereas statistics is the collection, organization, and interpretation of solved
mathematical equations. If more people understood that descriptive research
involves looking at what the numbers mean rather than solving equations,
more sport marketing researchers would be willing to take more time conduct-
ing this type of research.

Causal Research

Causal research is utilizing experimentation and simulations to determine the

cause-and-effect relationship between the sport organization and the problem
at hand. This type of research is extremely complex because there is no cer-
tainty that the results are not being influenced by other variables. As a result of
this, and the need for time, money, and resources, this type of research is rarely
conducted by sport marketing professionals.

Identifying Sources of Information

The source of information will be directly affected by the type of research
design. Qualitative research involves collecting, analyzing, and interpreting
data by observing what people do, or how they answer open-ended questions.
This research tends to involve a small number of respondents that represent a
segment of the population. The respondents focus on the qualities of a sport
product or service by articulating the values and beliefs they perceive the spe-
cific brand to have. In contrast, quantitative research involves collecting, ana-
lyzing, and interpreting data collected from a larger sample via a structured
questionnaire or survey. The data is analyzed in statistical terms, and the results
produced in a numeric form. At times, both qualitative and quantitative data
will be used concurrently. This is known as pluralistic research.
The source of information to be utilized for a research study will depend on
not only the research design, but also the type of primary or secondary data
available, and the preferred method of collecting data.

Exploratory Sources of Information

Secondary Data Analysis

As implied earlier in this chapter, secondary data analysis involves using
existing data that has been collected by another source or for another purpose

S P O RT M A R K E T I N G R E S E A R C H 47
prior to the current research project. The secondary data that comes from sport
research studies are usually classified in one of four categories. Narrow-Random
studies are usually conducted by leagues, individual teams, and sponsors on an
as-needed basis to gather specific information on consumer demographics,
behaviors, attitudes, product use, and media consumption. Extensive-Random
studies are usually only performed by large corporations because of the signifi-
cant resources (money, time, and people) needed to broaden the study using a
large or national sample. As a result of this cost, these types of studies are done
on an irregular basis. Narrow-Standard studies deals with specific samples and
populations, and are conducted on a regular basis to provide a clearer view of
trends. Extensive-Standard studies are more generalized to a large or national
sample and tend to look at categories in a generic sense without consideration
for individual differences caused by culture, location, or demographic makeup.

Case Study Analyses

Case study analyses are a special type of secondary data analysis. Case stud-
ies are published accounts of situations that have occurred to a business or
industry, and can be viewed to serve as a guide to answer current research ques-
tions. This allows the sport marketer gets a first-hand view of a similar situa-
tion and sees how another organization dealt with the circumstances. It is
important, however, to use case studies with care. Even though situations may
be similar, the solutions may not be viable or appropriate for the organization.
Therefore, it is important to look at case studies and determine the relevancy to
the current research questions. The more relevant the case is to the research
being conducted, the more valid and reliable the solutions will be.

Focus Groups
Focus groups are an interview that involve 8–12 people at the same time in
the same group, and is used to evaluate products and services, or to test new
concepts. To plan for a focus group, the major objective of the meeting must be
decided on. Once the main objective is chosen, the facilitator must design a
series of questions (usually 6–8) that will serve to gain a better understanding
about the stated objective.
When planning for the session, on average four questions can be asked per
hour, as the focus group is basically a series of individual interviews. Therefore,
most focus groups last between 1.5 and 2 hours. The best place to hold focus
group sessions in a room free from distraction with good air flow and lighting,
such as a conference room. Offering refreshments during the session would be
appropriate.
It would be proper to provide an agenda prior to the meeting (1 week), and
review that agenda at the start of session. At that time, setting ground rules for
the focus group will keep the session flowing freely. Those ground rules should
help keep the group focused, the meeting moving, and bring resolution to each
question.
The make-up of the focus group should include individuals with similar char-
acteristics, but do not know each other. The focus group members should have
a willingness to be thoughtful in analyzing the questions, and to share their

48 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
responses to the questions. The focus group members should also be willing to
have the meeting recorded so the facilitator can review the meeting afterwards.
The job of the facilitator of the focus group is to welcome the members of the
group, ask the questions, ask follow-up questions that are geared to clarifying
the original answer, and ensure even participation from all members of the
focus group. It is best that the facilitator have a knowledge of the concepts
related to the objective, but should be independent from the organization to
limit bias. At the end of the focus group meeting, the facilitator should thank
everyone for their participation, and guarantee that they will receive a copy of
the report from the meeting.

Experience Surveys
Experience surveys refer to collecting information from those whom are con-
sidered to be experts in the field of interest. These experts may be a part of
a direct network, through recommendations of members of the direct network,
or from research conducted about the area related to the research questions
or objectives. These differ from traditional surveys in the fact that they are
specifically fact finding in nature; therefore, the results are not being compared
to other individuals or groups.

Projective Techniques
Projective techniques are used to allow respondents to verbalize their true
opinions or beliefs about products and services. When asked directly, respon-
dents often will not address their true attitudes or motivations due to assuming
what the interviewer wants the answer to be, feeling pressure that their attitude
or belief is not correct, or simply not wanting to have their name tied to their
response. Projective techniques, such as tests using word association, sentence
completion, or thematic perceptions can allow the respondent to answer in a
non-threatening environment. Also utilized are third person techniques, such as
role playing, allows the respondent to reply in terms of another.

Descriptive Sources of Information

Cross-Sectional Studies
Cross-sectional studies measures components from a sample within a popu-
lation at a specific point in time. Since these are one-time measurements, they
are often referred to as a snapshot of the population. The main type of cross-
sectional study utilized in sport marketing research is a survey. Surveys can
be administered in paper form or online, and are utilized to gather information
from a sample. It is expected that the sample is representative of the entire
population.

Longitudinal Studies
In contrast, longitudinal studies measures components from a sample within
a population repeatedly over a period of time. These multiple measurements
seek to show trends related to the research being conducted. Two major meth-
ods of longitudinal study are panels and market tracking studies.

S P O RT M A R K E T I N G R E S E A R C H 49
 Panels represent a group of individuals who have agreed to being involved
with market research studies at periodic intervals to measure changes over time
with a consistent sample. Panels may be continuous or discontinuous.
Continuous panels are asked the same questions repeatedly over the period,
hence tracking trends related to the specific objective. Discontinuous panels
vary the questions asked, therefore allowing the researcher to track various
related topics within a specific research area.
Market tracking studies do very much the same as panels, but without the
human interaction. These studies measure one or more variables over a period
of time using data available from other research studies.

Causal Sources of Information

Test Marketing
Most experiments in sport marketing take place in the real world. A common
phrase utilized in sport marketing to describe these field experiments is “test
marketing.” Test marketing usually involves determining the sales potential of
a new product or service, or the acceptance of a product previously entered
into the marketplace. Test marketing for sport organizations often centers on
the variability of the sport marketing mix and how changes may influence
future sales.
Test marketing can take place via normal distribution channels, but because
of the lack of time and resources, these experiments are usually outsourced to
research firms who will conduct testing in one of the three ways. Controlled
testing is where distribution of information or products will be through the
research firm’s predetermined number and type of distribution network. Electronic
testing is a limited methodology involving a panel of sport consumers carrying
a card that they present when making a purchase (or obviously their lack of
product purchase). The information is then fed into a computer and results
compiled. Simulated testing is even more limited in the fact that a small sample
of data is collected from consumers, assumptions about the specific population
made, and information about generic marketing programs collected. All
the information is then put into a theoretical model, and likely results of sales
volume and product interest are generated.

Secret Shopping/Mystery Shopping

Secret shopping (also known as mystery shopping) is a tool utilized in mar-
ket research to investigate products and services of competitors by sending indi-
viduals to act as buyers. Usually what happens is a sport organization wants to
measure the level of service offered by a competitor, or needs to collect data
about specific products. The sport marketing professional will hire individuals
to either act as shoppers or legitimately shop on behalf of the organization in
return for either payment or the opportunity to keep what they purchase. Secret
shoppers are: provided with the expected behaviors to be exhibited, questions
and/or complaints to discuss, specific purchases to be made, and data to be
recorded. Sport organizations then use this information to adjust pricing, mod-
ify services, or justify the methods already being utilized.

50 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
Determining Methods for Collecting Primary Data
As defined earlier in the chapter, primary data is information collected by the
sport market researcher specifically for the research project through personal
contact. The most basic method for collecting primary data is by observation.
While it seems very simple and basic to watch someone or something, and then
record what was seen or heard, it is easier said than done. In fact, most obser-
vations rely on recording devices ranging from tape recorders or video to the
most basic of observational recording methods – written notes. The main
importance of recording information in a tangible form is because while the
mind is one of the most comprehensive computers known to man, the complex-
ity of retrieving every detail of information on an “as-needed basis” is difficult
and often lacking necessary intricate details.
For obvious reasons, the time and resources needed to conduct observations
for all research is impossible. Therefore, other methodologies need to be utilized
to conduct the extensive marketing research needed by sport organizations.

The Survey

The most common method used is the survey. Surveys are used to collect
information from respondents about their attitude, values, opinions and beliefs
via telephone, mail, face-to-face, and online. A survey can consists of anywhere
between 5 and 500 questions, however those surveys that are concise and short,
with directed, easy-to-answer questions usually reward the researcher with a
larger amount of information that tends to be more reliable and valid.
There are a number of advantages to utilizing surveys for sport market research.
First is the ability to standardize the survey. This allows for consistency in the
measurement as all respondent will answer the same questions in the same order
and following the same scale. Second, it is easy to administer a survey. In most
cases the respondents fill out the survey without assistance from the researcher.
Surveys also allow the sport marketing researcher to gain information about
concepts that are unobservable. From a demographic interest, we can solicit
more accurate information about many topics including a person’s income
level, occupation, and distance traveled to the event. From a business stand-
point, an example would be asking a question about how many times a person
has attended a sporting event during the season. Unless we saw the person
every time they entered the facility, or we have a computer tracking program
that could accurately tell us who used a ticket, we would not know the answer.
The response to the survey questions can be used to tell us where this customer
falls on the “escalator,” and how we can more effectively market toward that
individual to entice them to make additional purchases.
The ease in which we evaluate the data received via surveys is also a great
advantage. All the data from a survey can be statistically analyzed using computer
processing programs such as Minitab and SPSS, or be evaluated by creating your
own statistical analysis format using a spreadsheet program such as Excel. These
programs offer the ability to process small and large amounts of information for
tabulations, correlations, probabilities, and numerous other statistical analyses.

S P O RT M A R K E T I N G R E S E A R C H 51
This also allows for coding of data to take into account individual, segment, and
subgroup differences.

Types of Surveys

There are three major ways to collect data – self-administered surveys, inter-
views, and computer-administered surveys. Prior to initiating the process, the
sport marketing researcher complete an analysis of (1) the time available to col-
lect and analyze data and (2) the budget available to administer the survey. The
sport marketing researcher will use this information to determine which data
collection method will provide the highest quality amount of data within the
stated constraints.

Self-administered Surveys
A self-administered survey is where an individual respondent completes the
survey on their own. This is the most commonly utilized survey method because
the cost is low, the respondent is under no pressure to complete the survey, and
there is usually no undue influence placed on the respondent by the surveyor.
However, the responses to the survey may not be totally accurate due to misun-
derstanding questions, not following directions in answering the survey, or just
not fully completing the survey because of lack of time or interest. The two
main types of self-administered surveys are mail surveys and drop-off surveys.
Mail surveys involve mailing the survey to potential respondents and encour-
aging them to fill out the questionnaire and returning it via mail. To entice respon-
dents to take the survey seriously and increase the likelihood of a response, sport
marketing researcher will often include a self-addressed, stamped envelope with
the survey. Additionally, some will put a coupon or even a one-dollar bill in the
envelope as an incentive.
Drop-off surveys are given to the respondent to fill out. Then the following
option may be offered: (1) the researcher will come back at a later time to pick
up the completed surveys; (2) a drop box will be set up for the respondent to
return the completed survey; or (3) the ability for the respondent to return the
completed survey by mail, fax, or email is provided.

Interviews
Interviews are basically person-administered surveys. The interviewer reads
the questions and then records the answers from the respondent. This can be
accomplished either in-person or via telephone. The advantages of this type
of surveying include being able to build a rapport with the respondents so they
are in a comfort zone, being able to ask follow-up or clarifying questions
instantaneously, and the ability to control quality and adapt questions and
methods throughout the process. On the other hand, since this type of survey-
ing take a longer period of time, the use of this method has significantly
decreased. The reason for this include the advent of computer technologies and
their use in surveying, the limited amount of discretionary time people have to
meet or talk, and the desire not to be bothered at home during family time to
participate in a survey. Regardless, it is important to understand the various

52 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
methods because while not as widely used, they are still important tools in the
acquisition of data.
Telemarketing is the old-fashioned telephone call to a person’s home. These
can be administered in two ways. The most common method is the central loca-
tion telephone interview. This is where a group of individuals work for a
research firm or data collection company and make standardized interview calls
to a list of individuals, businesses, or even just a series of phone number. Usually,
a supervisor keeps track of the callers by listening in to the conversation and pro-
viding instant quality control to the telemarketer following a call. When a com-
pany does not have the ability to set up a call center, another method is where
individual callers work from their home and has a list of people, business, or
phone numbers assigned to them.
Another method of interviewing takes place as a result of our need to shop.
Shopping intercept surveying occur when a researcher stops shoppers at malls,
supermarkets, outlets, and other retail establishments to get individual opinions.
Often times the shopper will be enticed with a discount or free item if they par-
ticipate in the survey. The major limitation of this survey again involves time.
Since the person you are interviewing is shopping, and often only has a set
amount of time, the survey needs to be concise, and the enticement must be of
interest to the consumer.

Computer-Administered Surveys
As mentioned earlier, with the advent of advanced computer technologies,
surveying has entered a new era. In the latest data published by the Economics
and Statistics Administration (www.esa.doc.gov):

■ The rate of growth of Internet use in the United States is currently 2 million
new Internet users per month.
■ More than half of the United States population (54%) is now online using
the Internet.
■ Approximately 2/3 of the population in the United States used computers on
a regular basis.
■ Nearly one in two people use email on a regular basis.
■ Over 1/3 of the American population (36%) use the Internet to search for
products and services.

With these types of numbers, it was inevitable that surveying via this method
would come. There are numerous advantages of computer-administered sur-
veys. The main advantage is error-free data collection with speed. In addition,
the sport marketing researcher can include pictures, videos, graphics, and other
informational data to supplement the information provided to the respondent.
The only downfall to computerized surveys is specifically for detailed surveys,
where there may be some high set-up costs.
The most commonly used computer-administered surveys are online/Internet-
based questionnaires. In some cases, individual respondents would be emailed the
survey via attachment, and they would then download the survey, reattached, and
reply. However, in most cases, respondents would go to a specific website to fill

S P O RT M A R K E T I N G R E S E A R C H 53
out the questionnaire. Sport marketing researchers would design and post the
survey via the website, and the responses would be tabulated and forwarded by
the Internet site company. Some of the most popular sites to use for surveys today
are www.surveymonkey.com; www.zoomerang.com; www.surveyshare.com; and
www.websurveyor.com.
Two other methods of computer-administered survey are computer-assisted
telephone interviews (CATI) and fully computerized interviews. CATI is where
the survey questions pop up on a computer screen, the interviewer reads the
question to the respondent, the respondent gives the answer, and the inter-
viewer enters the answer into the computer. Fully computerized interviews take
the interviewer out of the equation. The respondent sits at the computer, ques-
tions show up on the screen, and the respondent enters their answer directly
into the computer for tabulation.

SUPER BOWL MARKET RESEARCH

Claria is a pioneer and leader in behavioral marketing and personalization

technology. Claria’s proprietary behavioral marketing platform provided
consumers with relevant content and offers based on their ordinary Web
browsing and search behavior. Since its inception in 1998, Claria has served
millions of online consumers and more than 1000 advertisers. By November
1999, Claria had revolutionized the online advertising industry by introduc-
ing its contextual and behavioral relevant online advertising model. A highly
effective alternative to demographic targeting, this advertising method
resulted in unparalleled ROI for advertisers.
One of Claria’s former divisions (Feedback Research) provided full-service,
custom marketing research programs and in-depth analytics of anonymous
consumer Web usage patterns across a broad spectrum of the Internet.
Feedback Research offered a breakthrough way of communicating one-to-
one with tens of millions of consumers. Through the power of behavioral
targeting, Claria was able to gather data from hard-to-reach consumers
targeted based on their actual, not self-reported, online behavior.
Claria, through its Feedback Research division, conducted an independent,
non-sponsored research study of its user base around advertising and sponsor-
ship activities associated with the Super Bowl. The data Claria generated
was comprised of Web analytics, where it analyzed Web traffic among the
GAIN Network user base from December 1, 2003 through February 1, 2004
for all official NFL team Websites, popular football content sites (NFL.com;
Superbowl.com; ESPN NFL; Yahoo! Sports NFL; and Sportsline NFL), and
Super Bowl television advertiser sites. Search terms that were relevant to the
NFL football and the Super Bowl were also monitored. The GAIN network was
comprised of consumers who had agreed to become part by of the service,
which allowed the user to receive more advertising (pop-up and banner ads)
by choosing to download software that was supported by online advertis-
ing. Because there was a significant scale and a wide variety of applications

54 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
 SUPER BOWL MARKET RESEARCH – Continued

to choose from, GAIN users shared the same overall demographic character-
istics as ordinary Web users.
Claria analyzed Web traffic to determine trends for official NFL team
Websites, as well as popular content domains. By looking at overall traffic,
average viewer session per person, cross-traffic between sites, and the time of
day when people visited the sites, insights were generated that created a clear
understanding of how people used the Web in connection with the event.

Source: Adapted from prior content on http://www.claria.com.

Suggested Discussion Topics

1. Claria, through their Feedback Research division, was collecting primary

research to analyze Web traffic of members using the GAIN Network,
which incidentally is also owned by Claria. What would Claria have to
do to use this information collected from users in an ethical manner
for market research studies? Include in your answer what information
it can use and disclose without permission, and what information
requires permission from the user?
2. Assume that the data being used is generic in nature and does not need
approval for use by Claria. However, make an assumption that the
market research firm takes the collected data, puts it into a report, then
sells that data to advertising firms. Is this an ethical practice? Why or
why not? Support your answer with details and examples.

Designing Data Collection Forms

Regardless of the type of survey or interview to be administered, there are some
constant functions that must be considered in designing a tool to collection data.
What form should questions take? How are the results to be measured? Am
I using the best scale of measurement? Can I guarantee reliability and validity?

Response Format for Questions

There are three fundamental response formats for questions. Closed-ended

questions are when the sport marketing researcher provides specific options of
answers for the respondent. Open-ended questions have no answer options pro-
vided by the sport marketing researcher to the respondent. Scaled-response ques-
tions utilized a scale developed by the sport marketing researcher, and the answers
from the respondent are based on both their perception and the scale defined.
Closed-ended survey questions may be developed utilizing two formats:
dichotomous and multiple category. Dichotomous closed-ended questions require

S P O RT M A R K E T I N G R E S E A R C H 55
a choice of two responses, such as yes or no or (a) or (b). Multiple-category closed-
ended questions are where there are more than two response options. These types
of surveys are used most often by researchers because of the ease of administra-
tion, the limited amount of time needed to complete the survey, and the ease of
tabulating results.
Open-ended survey questions tend to take longer to answer, as it requires the
respondent to elaborate on their answers. This type of survey is also complex
to tabulate as there are often no standard answers, and extended time is often
needed to analyze the results. An unprobed format tends to be easier to tabu-
late and evaluate as the sport marketing research simply wants an exact
response from the respondent. If the survey is developed in a probing format,
the sport marketing researcher is giving the respondent a chance to elaborate
on answers. While this may provide additional information, there is no guaran-
tee that the data will be helpful to the study.
Scaled-response survey questions generally fall under two formats. If utiliz-
ing an unlabeled format, it is a numbered format where a descriptor is given to
the endpoints. An example would be “Rate the service level of the following
utilizing a scale of 1–5, where 1 is poor and 5 is excellent.” A labeled format
gives a descriptor for each level of the scale, such as:

1 ⫽outstanding 2 ⫽very good 3 ⫽average 4 ⫽need improvement

5 ⫽unacceptable

So how does a sport marketing researcher choose the proper type of question
and response format for their survey? The type of answer being looked for is the
most important feature. After that, other considerations include what has been uti-
lized in similar studies in the past; the method in which the data will be collected
(i.e., telephone, mail, email, face-to-face); past history of how respondents prefer
to answer questions; and the statistical analyses needed for reporting the findings.

Measuring Results

The way in which responses are measured provides you pertinent informa-
tion about the subject being sought by the sport marketer. It also helps to pro-
vide parameter as far as what the information shows and what it does not
show. These limitations help with the accuracy of disseminated information
and serve to focus on the most important information needed by the sport
organization. These parameters will also dictate the statistical analyses to be
used by the sport marketing researcher.
There are two major considerations to consider when planning to measure
responses. The first is the characteristics of the scale to be utilized. There are four
main characteristics – description, distance, order, and origin. Description refers
to how the scale is to be labeled. Distance represents the numeric range between
responses. Order signifies the size of the scale descriptors (more than, less than,
equal to). Origin deals with the starting point of the data. While many times the
data starting point is “0”, it is important to remember that in sport marketing

56 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
research, the zero point may be an arbitrary point based on previous data. This is
especially true in sales where commissions are not paid until reaching a certain
sales level. Assuming a salesperson must make $50,000 in sales prior to receiving
commissions; the zero point in this case is $50,000 in the mind of the salesperson.
The other consideration is the levels of measurement for the scales. In sport
marketing research, there is a hierarchy of scales based on the number of char-
acteristics evident. The most basic of scales is the nominal measurements of
scale, where the responses only used labels, and hence only have the character-
istic of description. Ordinal measurements of scale describe the data and rank
order it. Interval measurements of scale use distance as descriptors to designate
the range of responses, as well as ordering and describing the data. Ratio meas-
urements of scale show all four characteristics, including a true zero point.
In sport marketing research, there are two major scales of measurement uti-
lized for survey data. The first is the Modified Likert Scale in which respondents
are asked to indicate their degree of agreement or disagreement on a symmetric
agree–disagree scale for each of a series of statements. In sport marketing
research, the most common form is the 5-point scale as follows:

1 ⫽strongly disagree 2 ⫽disagree 3 ⫽neutral 4 ⫽agree

5 ⫽strongly agree

The second is the Lifestyle Inventory, which centers on the measurement of psy-
chographic data. This modified version of the Modified Likert Scale takes into
account the values and personality traits of people as reflected in their unique
activities, interests, and opinions toward their work, leisure time, and purchases.

The Questionnaire Development Process

Now that a framework for data collection methods has been describe, the
development of the questionnaire can begin. The starting point is to determine the
goals and objectives of the survey. The goals articulate the plan of what the sport
marketing professional wishes to find out, and the objectives are the steps within
the questionnaire that will seek to answer those questions. Once this has been
determined, a review of the data collection methods is undertaken to determine
the most appropriate form the questionnaire should take.

Designing the Questionnaire

The first step is designing a questionnaire in the development of the individual
questions. When writing a question, one of the basics is to keep questions very
specific, focusing on a single topic. Therefore, the questions should be brief, but
directed. Also, the question should have universal interpretation. This will
increase the level of reliability and validity of the responses. The best way to
ensure this is to use basic vocabulary and simple grammar that is utilized across
the majority of demographics within the population or sample.
There are also things that should be avoided when designing questions for a
survey. The biggest “no-no” is making assumptions with questions. It is the job

S P O RT M A R K E T I N G R E S E A R C H 57
of the question designer to specify the criteria that judgments are to be based on;
not allowing the respondent to assume the criteria. In addition, the questions
need to be as general as possible. Questions that are too specific or utilize an
example will direct the respondent to focus on the example instead of the broad
application of the concept being questioned.
Questions should not be beyond the scope and understanding of the respon-
dents. This includes the memory of the respondents – as most individuals
remember things in generalities instead of in specifics. If questions are not gen-
eral in nature, it may force the respondent to answer at two extremes, guess at
the response they think the surveyor wants, or exaggerate the answer so it
appears that the respondent is knowledgeable.
Three final “do not’s” when designing questions. Do not ask questions that
the respondent cannot relate to – such as asking a person which cable television
station they watch sports on, but there is no choice for those who do not have
cable. Second, avoid what is called “double-barreled” questions, where there
are two questions within one. An example would be “Were you satisfied with
the concessions and merchandise offered at the stadium?” If the answer is yes,
were they satisfied with the food offering? Food taste? Beverage variety?
Offerings in the pro shop? Service? You cannot tell from the answer to the ques-
tion, and therefore the response is useless. Finally, questions should not be lead-
ing the respondent to a specific answer. To avoid this, avoid loading the
question with statements or words that will direct the respondent into a biased
response. An example would be “How did you like your experience at
the game?” and the responses are (a) extremely well, (b) very good, (c) OK, and
(d) not too well. Since only positive answers are provide (not too well still
focuses on the positive – “well”), this is a biased and leading question (Figure 3.1).

FIGURE 3.1
QUESTION DESIGN

Do’s Do Not’s

Focus on a single topic Make assumptions with questions

Be very specific Be specific with questions
Be brief and directed Use specific example
Design questions with universal Go beyond the understanding of the
interpretation respondents
Use basic vocabulary and simple Force the respondent to guess at a
grammar response
Compel the respondent to
exaggerate their answer
Ask questions that the respondent
cannot relate to
Use “double-barreled” questions
Use leading questions

58 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
 Once all the questions are created, an initial evaluation process is started to
reword and rework questions. During this process, each question is evaluated
based on the do’s and do not’s listed above, and modified if necessary. The goal
is to ensure that the questions meet the standards set forth to decrease the
potential of generating unreliable, inaccurate, or invalid responses.

Organizing the Questionnaire

There are four steps to organizing a questionnaire: the introduction, question
sequencing, pre-coding, and the approval process. The introduction is usually
a cover letter or paragraph at the top of the questionnaire giving general informa-
tion about the study. The first item of consideration when writing the introduction
is whether the sponsor of the study, or the individual/company administering the
questionnaire, is to be identified. If they are identified, it is known as an undis-
guised survey. If they wish to remain anonymous, it is a disguised survey.
The next part of the introduction explains the purpose of the research. This
should be a brief and simple one to two sentence explanation of the study. This
is followed by one sentence explanation of how and why the respondent was
chosen for this study.
The last part of the introduction is the part that makes or breaks the research –
the request for participation in the survey. People have less discretionary time
in today’s society – what is going to make them take time out of their busy
schedule and complete your survey? The answer is incentives! Incentives can
range from money to product samples to discounts and coupons. For some,
a copy of the study when completed is desired. The goal is to match the incen-
tive to the respondents.
One other note with regard to the introduction … there will be some who will
only complete a questionnaire if they are guaranteed either anonymity or confi-
dentiality. Anonymity assures the respondent that they will not be identified in
conjunction with the data collected or the study. Confidentiality means that the
researcher knows the individual respondents, but the name of the respondent
will not be divulged, or information related to the study not attached to the indi-
vidual, without the expressed consent of the respondent.
Once the introduction is completed, the questions will be sequenced. However,
one step that is added in some questionnaires at this point is screening ques-
tions. Screening is the process by which a research can conduct a preliminary
appraisal of the potential respondent to determine their suitability for the study.
These questions are asked at the beginning of the questionnaire to eliminate
those who do not meet the necessary qualifications for the study. For example,
if this is a general questionnaire to determine perceptions of service and
quality at a particular baseball stadium, a question might be “Have you
attended a baseball game at this stadium?” If the response is no, then you
would thank the respondent for their time and move on to another potential
respondent.
Next is the sequencing of questions. Usually a questionnaire starts with
warm-up questions. These questions are usually simple, easy to answer, and
creates further interest in the study. An example of a warm-up question would
be “How often have you attended a baseball game at this stadium?” After the

S P O RT M A R K E T I N G R E S E A R C H 59
warm-ups, transitions are used to let the respondent know that the format of
the questions will be changing. For example: “For the next series of questions,
you will be asked about your views of service and quality for various areas of
the stadium.” Sometimes, skip questions will be used as a part of this section.
A skip question is where the answer to that question will affect which question
to ask next. An example would be “Have you made a purchase from any mer-
chandise booth with the stadium during this season?” If the answer is yes, they
move on with the questionnaire; if the answer is no, the respondent would be
directed to skip a series of questions about merchandising and move onto the
next section.
As a rule, easier questions are placed earlier in the questionnaire, with compli-
cated questions appearing toward the end. The reason for this is that once you
have a respondent who has investing a period of time with the survey, the likeli-
hood of them just not completing the questionnaire because of a difficult ques-
tion is very low. Therefore, the sport marketing research uses the easy questions
as a hook, and once hooked the respondent is committed. Another way to
ensure that the respondent does not quit is to inform them that they are almost
finished, as there are usually a limited number of difficult questions. An example
of a complex question would be “Rate each of the following services on a scale
from 1 to 7.”
The last section of the questionnaire is classification and demographic ques-
tions. In years past, these questions were found at the beginning of a question-
naire, but studies have shown that asking for that information up front
discourage people from completing surveys because they did not want to give
personal information. Even if it was noted on the questionnaire that the section
was optional, the perception of this information being at the front was that it
was most important to the study. Therefore, now these questions appear at the
end. The respondent has already provided the sport marketing researcher with
information and now whether they wish to provide this information or not, the
research has the data. The demographic and classification information is impor-
tant to the research in order to do additional statistical analysis on the data, so
it is important to ask questions that allow for anonymity and confidentiality
should the respondent wish for that.
The next step in the questionnaire development process is pre-coding ques-
tions. This information is utilized to help in data entry and dissemination. The
goal of pre-coding is to associate each possible response with a unique number
and/or letter. Numbers are preferred because there are more statistical analysis
programs that identify with numbers than with letters. The key is that the pre-
coding cannot interfere with the respondent answering questions by confusing
them. In fact, with the use of computer tabulation, most pre-coding is put into
the statistical software instead of on the actual survey, and as data is entered the
pre-coding will automatically be implemented.
The final step is to gain approval of the survey from the client. It is important
to remember that although the sport marketing researcher may be the expert in
the field, it is ultimately the client (i.e., the management of the sport organiza-
tion) who must approve the research tool. Often this process requires explana-
tion to the management, who may not understand the process.

60 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
Pre-testing and Revisions
After the questionnaire has been approved, the sport marketing researcher must
make sure the questionnaire works through the process of pre-testing. In this
process, the sport marketing research is actually conducting a “dry run” of the
process by testing the survey on a small, representative sample of respondents.
Usually, 5–10 respondents are used to not only answer the questions, but also ask
the sport marketing researcher questions regarding confusions or misunderstand-
ings. The sport marketing researcher will analyze these concerns and make revisions
as necessary. Once revisions are finalized, the questionnaire is ready for mass use.

Questionnaire Development of the Future

One final note about questionnaire design – this process used to take a long
period of time because of the lack of computer software available in the past.
Question design was long and tedious. Data collection was dependent on people
taking time at home or in a fast-moving environment (malls, offices, supermar-
kets). Data computation by hand took many man hours. But now with the
Internet and other computer software, questionnaires are much easier. Data
analysis through programs such as SPSS, Minitab, or most spreadsheet software
cuts the computation time down to seconds instead of hours and days.
Questionnaire development through programs such as www.surveymonkey.com;
www.zoomerang.com; www.surveyshare.com; and www.websurveyor.com has
cut down the design process significantly.

Determining Sample Size

A sample is the most basic element of sport marketing research, as it is the
factors taken from a small group that is representative of the characteristics of
an entire population. The population is the entire group that is defined as being
under study as per the research questions. Information about populations, and
hence samples, most often come from the census (www.census.gov).
A sport marketing researcher would start with a sample frame, which is a
master list of the entire population (e.g., All Los Angeles Lakers fans who have
attended at least one game at Staples Center). We then must realize that there
may be errors in the listing, such as those season ticket holders who might be a
corporation and give the tickets to various people who use them, individuals
who buy tickets for someone else, and those who paid cash for the ticket may
not even be in the database. This is known as the sample frame error – the degree
to which the sample frame does not encompass the entire population.
From there we choose a sample. For example, Los Angeles Lakers season
ticket holders. Again, there may be a sampling error, which is caused either by
the method the sample is chosen, or by the size of the sample. In the scenario
listed above, an error could be that a season ticket holder may not be a represen-
tative of a person who can only afford to go to one game per year, or that the
season ticket holder sample may not statistically be a large enough sample to
reliably and validly represent the entire Los Angeles Lakers ticket population.
However, the realization is that it is less expensive and time consuming to take a
sample instead of attempting to survey the entire population. In addition, it would

S P O RT M A R K E T I N G R E S E A R C H 61
be almost impossible, even with computer assistance, to analyze the massive
amount of data that would be generated from such a large population. Therefore,
we use one of two methods of sampling – probability and non-probability.

Probability Sampling

Probability sampling is most often used in sport marketing research when

looking at current customers. It utilizes random selection from the known pop-
ulation. There are four methods of probability sampling – simple random sam-
pling, systematic sampling, cluster sampling, and stratified sampling.
Simple random sampling is where the sport marketing researcher uses some
chance method that guarantees each member of the population has an equal
chance to be selected into the sample. The most common of these are the blind
draw method (pulling names out of a hat) and the random numbers methods
(every member of the population is given a number and a computer generates a
random list of numbers for the sample).
Systematic sampling is less time consuming than the simple random method.
Starting with a list of the entire population, each is given a number. Then a skip
interval is calculated. This skip interval represents how many names would be
skipped when selecting the sample. This is calculated by taking the entire pop-
ulation list, and dividing it by the desired sample size. For example, let us say
there are 10,000 ticket holders, and we want a sample size of 1000. The skip
interval would be 10. Therefore, every 10th name on the list would be entered
into the sample.
Cluster sampling is where the population is divided into groups, any of
which could be considered as a representative sample. Most of the time clusters
are based on demographics (geographic location, age range, sex, race). While
this is a faster method of dividing groups, there cannot be a guarantee that the
cluster is truly representative of the entire population.
Stratified sampling is utilized when there might be a large divergence in the
population that would cause a skewed distribution. This skewed distribution is
a result of extremes in the population – for example, if the majority of the pop-
ulation has an average income of $50,000 ⫾ 25% ($37,500–67,500), but a sig-
nificant percentage is making over $100,000. In this case, the population would
be separate into different strata, and a sample would be taken from each.

Non-probability Sampling

Non-probability sampling is most often used in sport marketing research

when there is no way to guarantee the representation in the sample. Therefore,
the desired population does not have a guarantee of being a part of the sample.
There are four methods of non-probability sampling – convenience sampling,
referral sampling, judgment sampling, and quota sampling.
Convenience sampling is where the sport marketing researcher goes to a
high-traffic area such as a mall or shopping center to survey potential respon-
dents. Errors occur as a result of there being no guarantee that users will be
within the population at the chosen location.

62 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
 Referral sampling is where the respondents to a survey are also asked to iden-
tify other individuals who would likely qualify to take the survey. Again this is
a biased sampling method as those who are not well known, not liked, or have
caused conflict in the eyes of the respondent will not be included.
Judgment sampling occurs when the sport marketing researcher uses either
their own opinion, or that of someone considered to be an expert, to determine
who will be a part of the sample. This is a subjective method of sampling, there-
fore beliefs, feeling, attitudes, and perception could play a significant role, and
hence may bias the sample.
Quota sampling goes a step further than judgment sampling, but also seeks
to enhance convenience sampling. This method seeks to balance the proportion
of selected respondent characteristics by setting quotas on how many individu-
als from a specific group can respond. Groups may be capped based on demo-
graphic features, product use, or service features utilized.

Examining Data and Drawing Conclusions

The goal of this section is to introduce the student to basic methods of
describing the data and being able to draw basic conclusions utilizing one of
five statistical analysis methods – descriptive, inferential, differences, associa-
tive, and predictive. All of these statistical methods are used to reduce the large
quantity of data for use in drawing conclusions for the study. The data is sum-
marized and explained in logical order, while communicating patterns of
behavior or action and generalizing the sample to an entire population. It is
recommended that individuals who wish to gain more extensive experience in
data analysis take a market research class or a probability and statistics class.

Descriptive Analysis

Descriptive statistics are used early in the analysis of data and serve as a founda-
tion for future, more detailed analysis of data. As the title states, descriptive statis-
tics uses basic data reduction and summarization to describe the respondents, the
sample, and the population. The methods utilized for descriptive analysis are
mean, median, mode, frequency distribution, range, and standard deviation – each
are defined in the chart below:

Mean The average value of a set of numbers (sum of all

responses/number of respondents).
Median The middle value of a distribution (50th percentile).
Mode The value occurring most frequently in the data.
Frequency distribution The number of times a value occurs during the study. These
distributions can be documented as individual cases
(frequency), percentages, and running totals (cumulative).
Range The distance between the lowest value and the highest value.
Standard deviation Measures the spread of values throughout the data. For a
(SD) normal curve, which is used most often, the midpoint is the
mean and the standard deviation is measured from that point.

S P O RT M A R K E T I N G R E S E A R C H 63
Inferential Analysis

Inferential statistics are used to generalize the results and draw conclusions
simply based on the population characteristics and the data collected. This
method is used to estimate values, test hypotheses, and determine significant
differences. The two main methods for completing an inferential analysis are
standard error and the null hypothesis. Standard error is used to measure the
variability in the sample distribution. This is accomplished by taking the stan-
dard deviation from the mean and dividing by the total number of respondents
(SD/N). This allows us to apply that error to determine the similarity or dissim-
ilarity of the sample based on the spread of the distribution and the associated
percentages. Also associated with the standard error are confidence intervals.
These are utilized to calculate the degree of accuracy that the researcher prefers.
Most researchers seek a 95% level of confidence in their studies.
Hypothesis testing is the articulated expectation of the sport organization,
the sport marketer, or the sport marketing researcher. There is a five-step
process to hypothesis testing as documented below:

■ Step 1: Make a statement about something that exists within the population.
The owner of an Af2 Arena Football Team states that attendance is only at 60%
capacity because the community at large is not aware of the team’s presence.
■ Step 2: Draw a probability sample and determine a sample statistic (mean is
most often used).
The sport marketing department outsources to a market research firm and
asks for a systematic sampling method to be used on residents within a 40
mile radius. At the end of the study, results show that 83% of the geographic
target is knowledgeable about the team. Additional information shows that
61% of the respondents did not attend a game for two associated reasons –
high ticket prices of arena football, and choosing to spend their discretionary
money on the minor league baseball team in town.
■ Step 3: Compare the statistic to the original statement (hypothesis).
The 60% stated by the owner does not equate to the 83% stated by the
research.
■ Step 4: Decide if the statistic supports the hypothesis.
The researched 83% does not support the owner’s original statement.
■ Step 5: If the sample does not support the hypothesis, reject it and revise.
We reject the owner’s statement and start a plan to address the reason why
40% of the arena is empty – including a review of ticket prices, and a modi-
fication of marketing and promotional efforts to address the competition.

Difference Analysis

Difference analysis is utilized when there are variations that exist between
targeted groups. This is very apparent in sport marketing research, especially
with the aforementioned escalator concept. Heavy users (season ticket holders,

64 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
luxury suite owners) will view satisfaction with sport products and services very
differently than light users (come to a game one or twice per year).
Two main statistical concepts are utilized to measure differences between
groups. The first is the t test, which assesses whether the means of the two groups
are statistically different than each other. Marketing efforts can be directed to the
two groups in a similar fashion only if the difference between the means is statis-
tically insignificant. The other test is the analysis of variance (ANOVA). ANOVA
testing is utilized when there are more than two groups being compared.

Associative Analysis

Associative statistics evaluate whether two specific variables within a study

are related. An example would be: are ticket promotions in the local newspaper
resulting in more tickets purchased. There are three main methods for evaluat-
ing association – cross-tabulations, chi-square analysis, and Pearson product
moment correlation:

Cross-tabulations Basic tabular comparison method using raw

data, frequencies, or percentages.
Chi-square Known as a “goodness of fit” test; it seeks to take
the obtained frequencies from the sample and
compare them to the statistical hypothesis.
Pearson product Also known as the correlation coefficient; creates
moment correlation a linear association between two variables.

Predictive Analysis

Predictive statistics are used mainly by sport marketing researchers in predic-

tion and forecasting of the future by evaluating previously collected data. A
variety of regression analyses are utilized to engage in predictive analysis
including bivariate regression analysis (two variables), and multiple regression
analysis (more than two variables). Regression measures a dependent variable
and its relationship to one (bivariate) or more (multiple) independent variables.

SPORT MARKETING POTENTIAL IN CHINA

This is a two part case study. This section will cover the marketing research
efforts that targets consumers’ influences and financial implications as being
a worthwhile sport marketing effort. To implement effective marketing strate-
gies in a specific country, it is pertinent to understand consumer behavior in
that country, which will be covered as the second part of the case study and
will appear in Chapter 5.
From the marketing research effort, a questionnaire was administered to
2155 mainland Chinese consumers in 10 selected cities, different economic,
social, and personal factors in the China’s environment are determined.

Continued

S P O RT M A R K E T I N G R E S E A R C H 65
 SPORT MARKETING POTENTIAL IN CHINA – Continued

Introduction

With a quarter of the world’s population and a fast growing economy,

China is rapidly turning into one of the busiest market centers in the world.
Sport marketing has the potential to emerge not only as an effective vehicle
in imitating the development of the Chinese economy; it also affects the
Chinese culture and lifestyle.
Since sport marketing in China has not been analyzed or researched, it is
appropriate to study the consumer as well as general financial implications. A
look at American success in sport marketing will be helpful. However, imple-
menting such strategies in China creates special considerations because of the
existence of cultural and economic differences between the two countries. This
study attempts to identify the proper marketing strategies in China through an
analysis of Chinese consumers’ behavior, attitudes, and buying patterns.

Methodology

The methodology used in this study consisted of exploratory research of

interviewing managers of retail outlets, secondary research of literature review,
and primary research of a total of 4000 questionnaires distributed in 10 selected
cities (Beijing, Chendu, Guangzhou, Nanjing, Qindao, Shanghai, Shenzhen,
Tianjin, Xian, and Xiamen) in China. Questionnaires were administered to a
judgmental quota sample and assigned to one of four age groups with equal
males and females.
The rate of response was 53.9%; 2155 questionnaires were returned.
The analysis of the data includes editing, coding, analyzing coded observa-
tions, and interpreting results for solutions to the research problems. Tabula-
tions and measures of central tendency were used to describe the distribution
of characteristics in the subject population. Cross-tabulation and chi-square
statistics were also used to show relationships between consumer segments.

Survey Findings

Eleven major factors affecting consumer purchasing emerged from the

questionnaire data analysis:

1. Purchasing reasons: The major reason why people purchased sport

products was “for exercise.”
2. Purchasing experience evaluation: Approximately half of the respon-
dents indicated that their purchasing experience was “positive.”
3. Income level relative to the expenses level: The Chinese consumers’
income levels range from less than $173 US per year to over $863 US

66 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
 SPORT MARKETING POTENTIAL IN CHINA – Continued

a year. The middle income level accounted for 72% of the respondents.
However, most respondents indicated they spent “less than $40 US
per year” on the purchase of sporting goods.
4. Type of sporting goods purchased: “Shoes” were the No. 1 favorite
type of sporting goods for Chinese consumers. Females tended to
purchase apparel; males were more likely to purchase all type of
sporting goods.
5. Product factors affecting purchasing: “Quality,” “style,” and “price”
were the three most important factors influencing purchasing decisions.
6. Purchasing: “Boy-and-girlfriend” had the most important influence in
the decision process. “Parents” had the least important influence.
7. Sources of information about where and how to purchase: The
major information channel for Chinese consumers was their “going
to a shopping mall” experience.
8. Influence of advertisements: Of those responding to the survey, more than
half said they either “occasionally” or “rarely” believe advertisements.
9. Brands consumers prefer: Adidas, Asics, Nike, and Reebok were
identified by the Chinese consumers.
10. Where goods purchased: Most of those surveyed purchased their sport-
ing goods from either “a sporting goods store” or “a department store.”
11. Time spent in sport activities: Almost 90% of the Chinese consumers
spent “less than 5 hours a week” participating in sport activities.
However, three meaningful findings emerged: (1) those who partici-
pated “less than 5 hours per week” in sport activities spent more money
purchasing sport products than those who participated “over 5 hours
per week” in sport activities; (2) those in the income level of “$402 to
$863 US” spent more time participating in sport activities; and (3)
young adults and “unmarried” persons spent more time per week par-
ticipating in activities than those who were “married” or elderly.

Source: Adapted from Geng, L., B. Lockhart, C. Blackmore, and R. Andrus (1996). Sport
marketing strategy: a consumer behavior case analysis in China. Multinational Business
Review 4(1): 147–154.

Suggested Discussion Topics

1. Utilizing a questionnaire for this type of research can be quite a chal-

lenge due to the spread of the 2155 mainland Chinese consumers in 10
selected cities, and the different economic, social, and personal factors
in the China’s environment. In a country of over 1 billion people with
a land mass of over 9.5 million square kilometers (3.67 million square
miles or the size of the United States) it is very difficult to determine an

Continued

S P O RT M A R K E T I N G R E S E A R C H 67
 SPORT MARKETING POTENTIAL IN CHINA – Continued

appropriate sample. Considering the sampling methods discussed in

the chapter, what methods of probability and non-probability sam-
pling could have been used for this study? Explain in detail as to
your reasoning why you belief this method could be used. Choose
the one method you would use and explain why in terms of ensuring
reliability and validity of the data collected.
2. Assume you are the Marketing Director of a sport apparel company
who wishes to enter this market. By analyzing each of the 11 factors
affecting consumer purchasing that emerged from the questionnaire
data analysis, would you move forward with entering into this mar-
ket? If yes, how would you proceed? If no, why not?

RESEARCH REPORTS AND SERVICES WITHIN

SPORT MARKETING RESEARCH

Once all the information has been compiled, the results need to be communi-
cated to the sport organization through a sport marketing research report. This
report presents factual information based on research results, recommenda-
tions from the sport marketing researcher, and conclusions about what could
happen if necessary change is not implemented. This report is then used by the
management of the sport organization as a foundation for their decision mak-
ing process. For this reason, the information presented in the sport marketing
research report must be organized, concise, accurate, and clear. Visuals, includ-
ing tables, pie charts, bar graphs, line graphs, maps, photos, and flow diagrams,
can all be used to enhance the report and simplify the message for those who
may not read it in its entirety. It would also be appropriate for the sport mar-
keting researcher or professional to include an oral presentation with the report
to highlight the most important sections.
Sport marketing research reports cover a wide range of area, including but
not limited to customer satisfaction, economic impact, needs assessment, orga-
nizational behavior, and risk assessment. There are a number of publications
and services available that focus on the field of sport marketing research,
including the following.

Sample List of Sport Marketing Research Companies

■ American Sports Data www.americansportsdata.com
■ C. Barnes and Company www.barnesreports.com
■ Beverage Marketing Corporation www.beveragemarketing.com

68 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
■ EPM Communications, Inc. www.epmcom.com
■ Football Fans Central Limited www.footballfanscensus.com
■ Forrester Research, Inc. www.forrester.com
■ Hoovers, Inc. www.hoovers.com
■ IBISWorld www.ibisworld.com
■ Key Note Publications, Ltd. www.keynote.com.uk
■ Richard K. Miller and Associates www.rkmillerinc.com
■ Mintel International Group, Ltd. www.mintel.com
■ Plunkett Research, Ltd. www.plunkettresearch.com
■ Snapdata International Group www.snapdata.com
■ SportBusiness Group, Ltd. www.sportbusiness.com
■ Sport Business Research Network www.sbrnet.com

Sample List of Sport Marketing Research Publications

■ EPM Entertainment Marketing Sourcebook
■ Plunkett’s Sports Industry Almanac
■ Spectator Sports Industry Report by Barnes Reports
■ Sports Business Market Research Yearbook by Miller and Associates
■ Sports Marketing and the Beverage Industry by the Beverage Marketing
Corporation
■ The Business of Sport Marketing by SportBusiness International Group

ONLINE AND WEB-BASED SPORT

MARKETING RESEARCH

With the expansion of electronic technologies and the Internet, online and
web-based sport marketing research has become more prevalent. The main rea-
son the online and web-based technologies are becoming the preferred method
for conducting research is because of its effectiveness (ease of use) and effi-
ciency (minimal time and resources needed). There are numerous other advan-
tages to online and web-based research, including:

■ Can be effectively utilized at all stages of the sport marketing research process.
■ Can be used for both qualitative and quantitative research.
■ Can be used to administer surveys, as well as conduct observational research
both in real time and asynchronously.
■ Allow respondents to participate in a place of their choice (home, work, Internet
café, etc.).
■ Researchers and organizations can view data in real time.
■ Researchers can provide supplemental information (videos, pictures, advertise-
ments, simulations) for respondents to view and review as a part of the research.

There are also a number of challenges with online and web-based research.
First, it is difficult to determine will full reliability and validity that the data

S P O RT M A R K E T I N G R E S E A R C H 69
collected is truly representative of the entire population. It is challenging to ver-
ify the authenticity of the person responding to the research. This is also true
for the secondary information published on the web. It is important that
researchers verify that the source of the information is reputable.
Another challenge is getting people to complete surveys via the web. Spam
(unsolicited email) and pop-up advertisements have inundated online and web-
based systems to the point of people downloading pop-up blockers, and having
unknown email go to a junk email folder for deletion.
Many of these challenges have forced sport organizations to review the way
in which they conduct research. This has resulted in more sport organizations
investing time and resources into the creation of a sport management informa-
tion system (SMIS). This structure consists of all aspect of the sport organiza-
tion (people, equipment, goal and objectives, policies and procedures, etc.)
being responsible for gathering, organizing, analyzing, evaluating, and distrib-
uting marketing information across the sport organization for the purpose
of efficient and effective decision making. The next chapter of this book will
discuss in detail the sport marketing information system.

CONCLUSION

This chapter introduces the reader to the concepts of sport marketing

research. The chapter systematically goes through the steps of the sport market-
ing research process, focusing on the importance of each step and the develop-
ment process associated with those steps.
The sport marketing research process starts with determining its need as a
result of a lack of information available about a target market. As a result of a
problem being defined, the sport marketing professional comes up with a list of
potential solutions, which are then articulated in terms of goals and objectives,
and then utilized to develop modified policies and procedures.
At this point, the sport marketing researcher must choose the appropriate
research methodology based on the type of primary and secondary data avail-
able. Research will be conducted using one of three methods: exploratory
research, descriptive research, or causal research. For each of these types of
research, there are various sources of information. Exploratory research utilizes
secondary data analysis, case study analysis, focus groups, experience surveys,
and projective techniques. Descriptive research employs cross-sectional studies
and longitudinal studies – including panels and market tracking studies. Causal
research uses experiments and test marketing to secure information.
Often, the sport marketing researcher needs to collect additional primary data,
which is secured through personal contacts via observations, self-administered
survey questionnaires, person-administered surveys (interviews), and computer-
administered surveys. The development of data collection forms, while in dif-
ferent tangible and intangible forms, are developed utilizing a similar process. The
development process starts with determining the response format for the ques-
tions – either closed-ended, open-ended, or scaled-response. Once the response

70 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
format for the questions is chosen, the sport marketing researcher must determine
how the results will be measured. There are two major considerations to consider
when planning to measure responses: the characteristics of the scale to be utilized
and the levels of measurement for the scales.
Now that the response format and measurement scale has been determined,
the survey questionnaire can be developed. Questionnaire development has
become significantly easier with the introduction of computer technologies.
Questionnaire development and data analysis software and websites have cut
the design and computation time down significantly.
Once the survey questionnaire is developed, the sport marketing researcher
must determine sample size. A sample is the most basic element of sport mar-
keting research, as it is the factors taken from a small group that is representa-
tive of the characteristics of an entire population. A sample is chosen using one
of two methods: probability sampling and non-probability sampling. Data is
then examined statistically and conclusions drawn. There are five basic statisti-
cal methods employed in sport marketing research: inferential analysis, descrip-
tive analysis, difference analysis, associative analysis, and predictive analysis.
The chapter also provides the reader with information regarding research
report and services within sport marketing research, including information on
sport marketing research companies and publications. In addition, the signifi-
cant impact of online and web-based research is covered. While this method of
research has become the preferred method for conducting research is because of
its effectiveness, efficiency, and wide range of use throughout the sport market-
ing research process, there are challenges to its reliability and validity as a result
of guaranteeing the authenticity of the person responding to the research, infor-
mation being published by non-reputable sources, and the misconception of
surveys as created by spam and pop-up advertisements.
In closing, it is important to note that with the complexity and variety of meth-
ods of research utilized in sport marketing, the conclusions drawn are conse-
quently used in a wide variety of ways. Since the specific aspects of sport
marketing varies widely, the use of collected research data will be discussed
accordingly within each future chapter.

FROM THEORY TO PRACTICE

Douglas Blais, Professor of Sport Management
Southern New Hampshire University,
Manchester, New Hampshire

I am currently a Full Professor of Sport Management in the School of

Business at Southern New Hampshire University, and have a Ph.D. in Sport
Management with a concentration in marketing from the University of
Connecticut. I have had extensive experience conducting market research for

Continued

S P O RT M A R K E T I N G R E S E A R C H 71
 FROM THEORY TO PRACTICE – Continued

a variety of sport organizations including the Boston Celtics, Manchester

Monarchs (AHL affiliate of the Los Angeles Kings), Bank of America
Championship (PGA Champions Tours), Eastern Mountain Sports,
Manchester Wolves (Arena Football 2), and the Verizon Wireless Arena.
Sport marketing research is a crucial element to the success of a sport organ-
ization. Strong marketing research provides timely information to identify
new opportunities, evaluate the current market, determine market segments,
and aid in marketing mix decisions.
The Manchester Monarchs of the American Hockey League are consis-
tently one of the top draws in the league. President Jeff Eisenberg contributes
their success to understanding the needs and wants of their fans. The
Monarchs have made a commitment to market research. The organization
has conducted extensive market research in each of its first 5 years. This
research takes on various forms including a brief fan survey conducted
every game, focus groups, in-depth fan surveys, secret shoppers, and arena
observations.
The in-depth survey has been one of the most critical elements in the orga-
nization’s research. The surveys are administered during a mid-week game,
a Friday night game, a Saturday night game, and a Sunday afternoon game,
ensuring proper sampling. An example of the survey questions are below:

■ What is your zip code?

■ What are your favorite radio stations?
■ Do you listen to the Monarchs on the radio?
■ How many games do you expect to attend this year?
■ What is the number of times you visit the Monarchs’ website?
■ Where do you obtain schedule information?
■ What starting time for the games do you prefer?
■ Who was the decision maker for attending the game?
■ Please list your three favorite promotions.

The Monarchs use this information in a variety of manners. The

Monarchs are able to give sponsors demographic information, determine
which promotions to continue or eliminate, the effectiveness of their website
to disseminate information, and the best ways to reach their target audience.
The in-depth survey allows the Monarchs to sample a large number of fans
and obtain research on a number of areas. The focus groups, while limited to
a much smaller sample, allow the Monarchs to obtain more qualitative
research. The Monarchs annually conduct focus groups with season ticket
holders, individual game attendees, and a sampling of fans with partial ticket
plans. Fans are given the opportunity to express what they like best and least
about the organization and game presentation. An example of information
obtain during a focus group was the displeasure of fans when other fans left

72 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
 FROM THEORY TO PRACTICE – Continued

their seat during play. The research indicated that this was occurring more
often in the 200 level compared with 100 (lower) level of the arena. The
Monarchs developed additional announcements incorporating clips from the
Seinfeld™ comedy show educating fans to wait for a stoppage in play before
leaving or returning to their seats. Additional ushers were placed in the 200
level to apply this policy.
The Bank of America Championship used fan surveys to answer many of
the same questions used in the Monarchs surveys. Additional research ques-
tions included:

■ How the tickets were obtained (from a sponsor, own company, gift,
promotion …).
■ The number of days attending the tournament.
■ Number of golf rounds played per year.
■ Golf Handicap.
■ Reason(s) for attending (fan of golf, meet players, business, family
outing …).
■ How they learned about the event.

The Bank of America Championship also conducted focus groups of fans

that had attended in previous years and did not attend the past year. The
focus group allowed for participants to voice their opinion as to why they
stopped attending the event.
The above research aided to tournament officials in deciding how to best
develop their marketing mix.
Students interested in conducting marketing research should:

■ Be familiar with spreadsheet software (Microsoft Excel™) and statistical

software (SPSS™).
■ Volunteer with local organizations to conduct market research. Professional
market research is expensive and many minor league and non-profit organiza-
tions cannot afford to hire a firm. Organizations such as the Special Olympics,
YMCA, Boy and Girls Club, or your local organization (i.e., Kiwanis) that
sponsors a running road race would all be interested in your services.
■ By conducting this research, you will be able design, collect, analyze, inter-
pret, and report your own findings.
■ Understand the importance of the market research process in the success
of any organization.

S P O RT M A R K E T I N G R E S E A R C H 73
 SPORT MARKETING
INFORMATION
SYSTEMS
4
CHAPTER OUTLINE

What Is a Sport Marketing Information System?

Components of a Sport Marketing Information System
Internal Reports System
Sport Marketing Intelligence System
Sport Marketing Decision Support System
Value of an Integrated Sport Marketing Information System
Conclusion

CHAPTER OBJECTIVES

The reader will be able to:

■ Recognize the purpose and uses of sport marketing information system.

■ Recognize the differences between the components of the sport marketing
information system.
■ Understand how the research system interacts with the internal reports sys-
tem, the intelligence system, and the decision support system (DSS), as well
as with each other, to implement a most efficient and effective sport market-
ing information system.

74
 WHAT IS A SPORT MARKETING
INFORMATION SYSTEM?

As stated at the end of the previous chapter, more sport organizations are
investing time and resources into the creation of a sport marketing information
system (SMIS). This structure consists of all aspect of the sport organization
(people, equipment, goal and objectives, policies and procedures, etc.) being
responsible for gathering, organizing, analyzing, evaluating, and distributing
marketing information across the sport organization for the purpose of efficient
and effective decision making.
The sport marketing research system was discussed in detail in Chapter 3, and
serves as the foundation of the studies that are undertaken for specific problems.
However, to have an efficient and effective sport marketing information system,
there needs to be interaction from three other components: the internal reports
system, the sport marketing intelligence system, and the sport marketing DSS.
The internal reports system involves information that is generated by the
internal operations of the sport organization. Internal reports include all
aspects of the accounting information system, including asset and liability man-
agement, revenue and expense operations, and administration of owner’s equity.
The sport marketing intelligence system involves the procedures and sources
that the organization utilized to obtain everyday information about develop-
ments regarding external opportunities and threats. The sport marketing deci-
sion support system, or sport marketing DSS, encompasses the primary and
secondary data previously collected by the sport organization, the tools and
techniques utilized to interpret that data, and the process by which that infor-
mation is used in the decision making process. The remainder of this chapter
will focus on these three systems.

COMPONENTS OF A SPORT MARKETING

INFORMATION SYSTEM

Internal Reports System

The internal reports system is the basic information system used by sport
marketing professionals to examine the internal operations of the sport organ-
ization. The internal reports consist of all facets of the accounting information
system, including asset and liability management, revenue and expense opera-
tions, and administration of owner’s equity. This allows the sport marketing
professional to review reports of orders, sales, costs, inventories, cash flows,
receivables, payables, and debts on an ongoing basis. This information is avail-
able quickly, because most sport organizations produce these reports of finan-
cial management on a monthly, and even weekly, basis.
Any sport organization that has been in business for any period of time has
more information available than they realize. Therefore, much of this information

S P O RT M A R K E T I N G I N F O R M AT I O N S Y S T E M S 75
often remains under-utilized because the information does not leave the depart-
ment it was created or collected by. The individuals in those various departments do
not always realize how the data could help sport marketing in their decision
making process. In addition, many sport marketing professionals fail to appreciate
how information from other areas might help them and therefore do not request it.
The internal records that are of immediate value to marketing decisions are
orders received, inventory, and sales invoices. By comparing orders received
with invoices, a sport marketing professional can establish the extent to which
the sport organization is providing an acceptable level of customer service.
Evaluating inventory records with orders received helps a sport marketer deter-
mine whether the marketing efforts are addressing the current demand pat-
terns, and if changes may need to be made. This often occurs with ticket sales
for less desirable match-ups. For example, when the New York Yankees hosts
the Boston Red Sox, there is usually not a ticket to be had. However, for other
teams such as Tampa Bay or Kansas City, there is less of a demand to pay a pre-
mium price for those games. The sport marketing professional can look at
ticket inventory levels, see which games are not selling, and design programs to
entice customer to purchase tickets and attend the games.
However, there is a lot of information that the various departmental, mana-
gerial, and administrative areas within the sport organization can provide that
would enhance the sport marketing information system. The following chart
provides a sample list of internal operations that can provide internal report
information to the sport marketing information system:

Organizational Area Information to be Provided Use of the Information

Accounting and Product pricing and costing Profitability potential by

finance Marketing and sales expenses sport product or service
Customer service Customer feedback on product Ability to review files for new
reliability and performance product or service ideas
Ability to review problems
that need to be addressed
Corporate Goals and objectives for the Measuring tool to determine
planning sport organization progress toward attaining
goals
Data processing The system for organizing data Understanding of the
capabilities of the system
Articulation of what the
system needs to provide
Human resources Background on sales and Learning curve for
marketing employees salespeople Review criteria
Performance review data for future hires
Marketing Types of new sport products Data for market analysis of
department and services with market current sport products
possibilities and services for:
Customer response to current ■ Prospects

sport products and services ■ Current customers

Strategic marketing plans

Promotional campaigns

Continued

76 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
 Organizational Area Information to be Provided Use of the Information

Merchandising/ Inventory status Forecast promotional needs to

ticketing be attached to selected inventory
Sales department Sales figures Streamline and improve methods
Feedback from customers of securing sales

Order-to-Payment Cycle

The focal point of the internal records system is order-to-payment cycle,

which includes all of the activities associated with the completion of a business
transaction. The process starts with a request for purchase. This request can
range from a merchandiser or concessionaire placing an order with a supplier,
to an individual clicking on buttons to find tickets online, to a fan placing an
order for food at the concession stand. The request for purchase is any situation
where a buyer wishes to make a purchase from a seller.
The cycle continues with the seller providing information on the price to be
paid. For the merchandiser or concessionaire, it is the receipt of an invoice. For
the sport consumer purchasing tickets online, it is the screen that tells how
much the cost will be. At the concession stand, it is the vendor telling the cus-
tomer how much it will cost for the food ordered. The order-to-payment cycle
concludes with the payment and delivery of the products.
The more efficient and effective the cycle works, the more orders can be
processed, the more sales can be transacted, and the potential for higher profit
by the sport organization is realistic. From the standpoint of the sport market-
ing professional, access to the order-to-payment is crucial. The order-to-pay-
ment cycle spans most business processes. The sport marketing professional may
need access to information from any of those processes at a given time based on
a problem at hand. Therefore, the sport marketing professional can address
market changes, opportunities, and threats more quickly. In addition, sport mar-
keters can send messages to prospects and customers that the sport organization
addresses consumer needs, wants, and desires quickly. This, in turn, has the
potential of increasing sales and the image of the sport organization.

Point-of-Sale System

As with many sport marketing functions, time is of the essence. If a demand

need is not addressed quickly, another organization will swoop in and take
advantage of the opportunity. Therefore, many sport organizations have
increased the speed in which sport marketing professional and management
can access information by moving their internal report systems to a computer-
based Intranet. Advances in technology have provided sport marketing profes-
sionals with more comprehensive information at their fingertips by providing
instant access to information about their prospects and customers through sales
information systems. These sales information computer systems for internal
reports are also known as point-of-sale (POS) systems.

S P O RT M A R K E T I N G I N F O R M AT I O N S Y S T E M S 77
 There is a variety of POS hardware that can collect information that can be ulti-
mately used by the sport marketing professional. Some examples are as follows:

Name of Hardware Variations of Hardware

Barcode scanner Hand-held, hands-free, and countertop

Barcode printer High-speed direct thermal and thermal transfer label printers
Receipt printer High-speed thermal and impact receipt printers
Credit card reader Standard
Check reader Standard
Portable age/ID verifier Identity verification via driver’s license or state-issued/
military ID
Palm pilots With integrated barcode scanner or wireless communication
Cordless scanners Long range and short range, cordless and wireless
POS keyboards With integrated credit card or check reader
POS monitors Touch screen

In addition, there are a number of software programs that take the informa-
tion collected and disseminate that data into an easy-access format. Some
examples of the software programs available include the following:

■ eClub Logic by KI Software

■ Intuit Quickbooks POS
■ Microsoft Retail Management System
■ Seta Systems Golf Club Management Software
■ TangentPOS by Venue1
■ Windward’s SportsStorePOS for Retail Sport Stores

Data Mining of Transactional Data

One of the major growth areas in sport marketing is transactional data col-
lected as a result of data mining. Data mining is the process of collecting and
analyzing data from non-traditional perspectives, categorize the data, and sum-
marize relationships. An example of this would be a baseball team using a fan
loyalty reward card to analyze buying patterns at the stadium and associated
merchandise outlets. They might discover that men who buy a ticket to the
game on average also purchase two beers, approximately $15 of food, and
spend about $10 on merchandise. It can also show what the most popular food
and merchandise items are. It could also be used to offer promotions on low-
selling items, and hence be able to move that merchandise out of inventory and
replace with other types that may increase revenue.
This concept of data mining of transactional data has served as the founda-
tion of current sport consumer relationship management programs, which will
be discussed later in Chapter 15. Two companies engaged in data mining of
transactional data for sport organizations are AIM Technologies and EDCS.
AIM Technologies focuses on collecting information about the demographics
and psychographics of fans, whereas EDCS’s Top Prospect system collects

78 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
information and translates purchases into a points system similar to
a frequently flyer program for airlines. The more the fan uses their card, the
more points they get, and the more benefits they receive. Under both programs,
sport marketing professionals are able to use the data to design promotions and
other specials through the programs.
These data mining efforts allow sport marketers to analyze and correlate hun-
dreds if not thousands different segments that were targeted differently. However,
with this mass of information, sport marketing professional can get lost in the
quantity. The key is that each transaction is not of interest; the patterns and asso-
ciations of transactions to evaluate areas where coordinated sport marketing
efforts can be utilized save time and resources for the sport organization.
The data collected can also be utilized to grade the sport customer, which is
another emerging method of sport marketing productivity. Most of the data
collected is able to be given a grade or score, and hence sport marketing profes-
sionals can evaluate the success or failure of sport marketing campaign – just as
a teacher would evaluate a research paper handed in by a student. As long as
the sport marketer has developed outcomes that can be broken down into
measurable terms, these grades can be used to more effectively and efficiently
target potential and current sport consumers.
In addition to the grading of transactional data, sport marketing profession-
als must also categorize information using RFM (recency, frequency, monetary)
analysis. RFM analysis is used to determine the most profitable customers
for the sport organization based on: (1) if the customer has purchased recently;
(2) how often the customer has made a purchase; and (3) how much the cus-
tomer spends with the sport organization. This RFM analysis serves as the
foundation for the Pareto Principle (or 80/20 rule) discussed in Chapter 1,
where 80% of a sport organization’s business comes from 20% of their cus-
tomers. The RFM analysis also provides the sport marketer with the ability to
conduct a long-term value analysis. Long-term value with regard to the sport
consumer is an evaluation of what that sport consumer is worth to the sport
organization in terms of sales and profit over a period of time. A long-term
period usually refers to a minimum of 3 years, but can be as long as a lifetime.
The internal reports system serves as a framework for the sport marketing
information system by allowing the sport marketing professional the ability to
examine the internal operations of the sport organization and improve upon
marketing efforts. Utilizing the information collected from various departments
through inputs from the order-to-payment cycle; the POS system; and data
mining, the sport marketing professional is better able to understanding the
sport organization itself, and its relationship to prospective and current cus-
tomers. However, as discussed in the introduction, this is only the second of
four components that make up the sport marketing information system.

Sport Marketing Intelligence System

The sport marketing intelligence system is a set of procedures utilized by sport
marketing professionals to secure everyday information about developments in

S P O RT M A R K E T I N G I N F O R M AT I O N S Y S T E M S 79
the marketing environment regarding external opportunities and threats. In the
last chapter, we discussed the difference between primary data and secondary
data. The same concept applies in the sport marketing intelligence system –
primary intelligence and secondary intelligence.
Primary intelligence is information collected by the sport organization
through direct contact with customers, the distribution network, competitive
analysis, and the internal sport organization itself. To enhance the collection
and dissemination of primary intelligence, sport marketing professional will
work with the sport organization in two ways. First, they can create an internal
marketing information department that is responsible for being the central
location for all data gathered from marketing research and collected via mar-
keting intelligence. The department would be accountable for providing infor-
mation throughout the sport organization to help enhance the marketing
efforts in all areas. Second, the sport marketing department can work with the
sales department to train salespeople not only to sell, but also to observe and
report on the perceptions, values, and beliefs of customers.
Sport marketing professionals can also obtaining primary intelligence by
communicating with all channel members (suppliers, manufacturers, and dis-
tributors), and work to share intelligence so that all have a detailed awareness
of each other’s activities. Having an integrated system of intelligence will
help all parties to understand roles and create a more effective and efficient
network.
Another method is to collect intelligence from competitors, especially those
who have products in direct competition with the sport organization. Being
aware of the opportunities and threats created by competition and addressing
those issues promptly is crucial to success in sport marketing. Some of the meth-
ods used to collect competitive intelligence are drive-by and on-site observations
such as secret shopping, cold calling the organization to obtain information by
asking generic questions a normal customer would, and contacting community
sources such as a chamber of commerce to secure additional information.
Secondary intelligence is information collected by the sport organization
from previous published sources such as books, trade journals, newspapers,
and reliable sources on the Internet. In addition, many sport organizations will
purchase data from syndicated sources such as those discussed in Chapter 3.
The following chart provides a sample list of external area that can provide
intelligence information to the sport marketing information system:

External Area Information to be Provided Use of the Information

Competition Products and services offered Offering comparisons

Product and service literature Technology comparisons
Opportunity analysis
Threat analysis
Customers Demographic, psychographic, Customer segmentation
and geographic profiles Customer profile analysis
Sales data Product and service sales history

Continued

80 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
 External Area Information to be Provided Use of the Information

Database and News abstracts about current Potential changes in product

Internet events, industry news, products and/or service positioning
information and services, the economy, Understanding of economic
retrieval system and market analysis impact and the influence of
current events on markets
Governmental Industry comparisons Competitive analysis
(federal, State, Competitor comparisons Market segment analysis
and local) data Demographic and geographic Organizational profiling
comparisons
Economic and financial data
Industry reports Data analysis by industry Industry growth statistics
Industry news Trend analysis
Suppliers, Market conditions Sales analysis
wholesalers, General consumer analysis Pricing changes
and distributors Promotion ideas
Segmenting and targeting
Introduction of new
products and/or services

Scanning of the Environment

Although the goal is to approach sport marketing intelligence in a deliberate

fashion as described above, much of the actual collection of intelligence is
mainly acquired through informal observations and conversations. The process
is known as scanning. In sport marketing intelligence gathering, scanning can
be undertaken in a number of ways. Formal scanning is a systematic search for
information where there is a specific goal for the intelligence gathering. The
scope of the search is narrow, but less rigorous that a full marketing research
effort. Informal scanning involves a limited, unstructured effort in collecting
data for a specific goal. This usually involves making inquiries to individuals on
an impromptu basis. An example would be a sport marketer walking around
a partially full stadium and just sitting down next to a fan and asking generic,
yet structured questions to them about their satisfaction with the experience.
Semi-focused scanning is where there is no specific intelligence being sought
or goal to attain, but a general inquiry is conducted to discover any piece of
intelligence that may become evident. With this type of scanning, the sport mar-
keting researcher usually limits where they will attempt to gather intelligence.
For example, they may ask generic questions to full season ticket holders, but
not to partial plans holders or fans that purchase single game tickets. A final
type of intelligence search is unfocused scanning, where the sport marketing
professional exposes their self to information they deem to be useful based on
what they have read, heard, or seen. Although this activity is unfocused, it is an
intentional attempt to gather intelligence. An example would be a sport mar-
keter with a minor league baseball team reads in the local newspaper an edito-
rial about a fan’s displeasure with the concessions offered at the stadium. At the
following home game, that sport marketer works their way around the facility,

S P O RT M A R K E T I N G I N F O R M AT I O N S Y S T E M S 81
standing on various concession lines and talking informally with fans. The
hope is to gather enough information to address the issues of concern with the
concession stands.

Dissecting Intelligence from Scanning

Regardless of the method of scanning chosen by the sport marketing profes-

sional, there is a process for scrutinizing the information that has been col-
lected. While the sport marketing researcher may be the leader of the scanning
process, it is important to utilize as many resources as possible to collect data.
In addition, it is important that all individuals involved in scanning the exter-
nal environment be open-minded and unbiased in the gathering of marketing
intelligence.
The first stage begins with an evaluation of the intelligence, and associating
that information to relevant trends. These associations are analyzed using
trend–impact analysis, which is a forecasting method that allows sport market-
ing researchers and the organization to track trends, apply the intelligence that
has been collected to those trends, and examine the impact on potential future
events that are a part of the overall organizational strategic plan. When deter-
mining whether to move forward or not, the sport marketer and the manage-
ment of the sport organization must determine how advantageous moving
forward would be; in other words, what is the probability of success? This is
determined by looking at the feasibility of the organization to make any changes
that are needed based on time and resources available. This is especially true in
the marketing area as changes could directly affect advertising, promotions, con-
sumer behavior, and methods for completing future market research.
The second stage starts when the organization agrees to move forward with
change based on the intelligence. At this point, the sport marketing professional
will work with the management of the sport organization to complete a cross-
impact analysis, which examines the relationships between outcomes. The newly
created outcomes from the previous stage (the future organizational impact) are
correlated with current organizational impacts (philosophy, mission, goals, and
vision).
Upon completion of the cross-impact analysis, the results are evaluated in
terms of the organization’s strengths and weaknesses. This third stage of enter-
ing the data into the internal part of the organization’s SWOT (strengths, weak-
nesses, opportunities, and threats) analysis, with the objective of determining
whether the changes coincide with the philosophy of the organization, requires
the creation of additional or new goals and objectives, and/or necessitate a
change to the vision for the sport organization. Changes to goals and vision may
be appropriate within any sport organization. However, changes that impact
organizational philosophy should be looks at very seriously as those changes
may significantly shift the entire value and belief system of the organization.
If change is deemed to be appropriate, the fourth stage would be twofold.
The sport marketing professional would draw up plans to evaluate the market-
ing impact of these changes. As the same time, the management of the sport

82 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
organization will look to how to best integrate the changes within all aspects of
the organizational strategic plan. The groups would then come together to
make a final decision and make one of three choices:

1. Opposition: Decide that the change is not appropriate for the sport
organization.
2. Modification: Take the necessary steps to integrate the changes across
the sport organization. This often requires the sport marketing depart-
ment to act quickly to inform relevant constituents (distribution net-
work, customers, and media) of the changes. In addition, the sport
marketing professional will need to examine how the changes affect the
current marketing mix and segments, and to what new segments the
sport organization could be opened to.
3. Relocation: The decision that takes place only in dire situations where
the sport organization must change to a different market. This type of
change is done only in extreme circumstances.

Sport Marketing Decision Support System

The sport marketing decision support system (DSS) is the fourth component of
the sport marketing information system. The sport marketing DSS assists sport
marketing professional and other decision makers within the sport organization
by taking advantage of information that is available from the various sources.
The sport marketing DSS comprises three major parts: (1) the primary and sec-
ondary data previously collected by the sport organization; (2) the approaches
and methods utilized to decipher and explain the data; and (3) the process of uti-
lizing the information in the decision making process of the sport organization.
This coordination of data, systems, tools, methods, people, and infrastructure
serve as a central clearing house for information used to make strategic decisions,
control decisions, operational decisions, and marketing decisions.
The sport marketing DSS has an effect on both the decision process and the
decision outcomes. These two components are interrelated since the outcome
depends on the result of the decision process. The outcome for any decision in
sport marketing must lead to a better performance in the marketplace by the
sport organization. To accomplish that, the decision process must involve deci-
sion makers who can identify the core decision variables that have the strongest
relationship to positive performance. This in turn will enhance the quality of
decisions that are made.
High-quality decisions are made when the change in the selected marketing
variable leads to higher profits, a stronger and more positive image, or increase
sport consumer satisfaction. To test and determine whether those changes will
work, those involved with the sport marketing DSS will run simulations by per-
forming “what-if” analyses. Each outcome is usually integrated with each rele-
vant element of the sport marketing mix to determine whether the desired effect
would take place. However, sport marketing decision makers must make sure
they understand their information-processing limitations. The human mind

S P O RT M A R K E T I N G I N F O R M AT I O N S Y S T E M S 83
is limited in their ability to process and recall information. When there is an
overabundance of information, the decision maker must spend an extensive
amount of time organizing the information instead of solving the problems.
This is especially true when there is irrelevant information included in the data.
This slows down the process, and may divert the decision maker from quickly
finding relevant data.

Key Factors of the Sport Marketing DSS

There are two factors that play an important role in the framework of the
sport marketing DSS. The first factor is the cognitive abilities of the decision
maker. Cognitive abilities refer to the perceptual and intellectual capabilities of
individuals. These abilities include comprehension, judgment, learning, mem-
ory, and reasoning. Cognition has a direct effect on the decision making style of
an individual and can be viewed from two extremes. High-analytical decision
makers break down problems into smaller parts, resulting in a set of causal
relationships. Then the decision variables are manipulated to address those
relationships with the goal of reaching decisions that will provide optimal suc-
cess for the sport organization. Low-analytical decision makers look at a prob-
lem as an absolute, and seek feasible solutions to the entire problem based only
on past experiences and previously solved problems.
The second factor is the time pressures associated with decision making. Sport
marketers realize that due to the ever-changing marketplace, acting fast is as
important as acting correctly. Hence this time pressure has a direct effect on the
ability to appropriately utilize the sport marketing DSS, since using it takes addi-
tional time and the benefits from the system focus on effectiveness rather than
efficiency. Time pressure often reduces the amount of information searching and
processing conducted by the sport marketing professional, which often results in
simplifying strategies and being more conservative with decision making.

Engaging the Sport Marketing DSS

This is the most difficult component of the sport marketing information sys-
tem to employ. Sport marketing professional tend to be highly analytical, and
as a result of the profession of marketing in general, usually have a significant
level of time pressure place upon them. As a result, many sport marketing
schemes, promotions, and activities are not successful over the long term. The
key is to expand the likelihood of long-term success. This is done by first
addressing the changing environment quickly, and then engaging the sport mar-
keting DSS to evaluate the change, make recommendations on further modifi-
cations, and implementing those recommendations within the sport marketing
environment. However, it is important to remember that whatever decision is
made, it must be able to interact with the other related sport marketing mix
efforts including product strategies, sales efforts and pricing tactics, place
distribution, and advertising and promotional plans.

84 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
 ETHICS IN SPORT INFORMATION SYSTEMS:
ALL-STAR VOTING

Now that professional sports have online All-Star voting, what would pre-
vent someone from developing a program that could cast multiple votes for
a single player or players?
For instance, in 1999 there was a gentleman who tried to cast thousands of
votes on his favorite player. In most cases, the professional organization limits
the number of votes that a single person or IP address can submit. Some of
the parameters that vote counters search for are patterns or abnormalities such
as, votes being cast too frequently from the same IP and the speed at which
these votes are cast.
What if there was a program developed that would clone other IP
addresses and cast votes at a rate that could account for human input. Most
large corporations and governments employ highly paid computer program-
mers to prevent computer espionage. A large majority of these programmers
have a hacking background.
To prevent this hacking, programmers have developed elaborate algo-
rithms that should not allow hacking to occur. However, if a human created
the algorithm, a human can find a way around it.
Why would someone spend their time trying to affect the outcome of a base-
ball or basketball roster? Herb Edelstein, a data warehouse and data mining
analyst at Two Crows Corp. in Potomac, MD., said pattern recognition is vital
to uncovering fraud.
“Discovering the difference between normal and abnormal behavior is the
basis of fraud detection,” Edelstein explained. “Systems with high transac-
tion volumes, [such as] credit-card systems and stock trading, depend on pat-
tern recognition for fraud prevention.”
With the 2006 World Cup coming to Germany, fans that have purchased
tickets needed to produce their passport in order for the ticket number and
the passport number to be linked. The purpose of this link is to ensure the
safety of the individual’s attending the games and to end the scalping of tick-
ets. Security is predicted to be the most stringent in any of athletic event in
history.

Source: Deck, S. (1999). Baseball Execs Spot All-Star Online Ballot Box Stuffing. Retrieved
from http://www.computerworld.com/news/1999/story/0,11280,36334,00.html.

Suggested Discussion Topics

1. Have information systems developed at such a fast rate that we have

sacrificed integrity for speed? Why or why not?
2. What does the future hold for security at sporting events and how will
marketing and management information systems play a role?

S P O RT M A R K E T I N G I N F O R M AT I O N S Y S T E M S 85
 VALUE OF AN INTEGRATED SPORT
MARKETING INFORMATION SYSTEM

A carefully designed sport marketing information system will produce infor-

mation that is significant and useful to the sport marketing professional for mak-
ing sport marketing decisions. It is important to understand that while the
ultimate goal of the sport marketing information system is to help the sport mar-
keting professional make better decisions in the shortest period of time possible,
management wants a system that will provide a positive return on investment.
One of the common misconceptions by management is that the cost, time, and
appearance of needing extensive resources because of the involvement of all
department and the need for a significant computer infrastructure, is not worth
it. In fact, many organizations think that the sport marketing information sys-
tem is a façade that makes the sport organization appear to be current by imple-
menting the latest marketing ideas. However, just as with any product or service
offered by the sport organization, we look at the information collected in terms
of marginal cost vs. marginal value. Marginal cost is the total cost that is
incurred based on the quantity produced. Marginal value is the worth to the
sport organization of producing one more unit of the product in comparison to
other products. Therefore, a sport marketing information system that is valuable
to a sport organization must show that the value of the information being
collected, analyzed, and used is equal to the cost of that information.

CONCLUSION

The purpose of a sport marketing information system is to collect the various

data available in one place for use in making efficient and effective sport market-
ing decisions. A sport marketing information system is a structure of interacting
people, infrastructure, and techniques to gather, sort, analyze, evaluate and distrib-
ute relevant, well-timed, accurate information for use by sport marketing profes-
sional to sport marketing plan development, implementation, and management.
The marketing research system, detailed in Chapter 3, is the process of
designing, gathering, analyzing, and reporting information that is utilized to
solve a specified sport marketing issue or problem. The other three systems are
the internal reports system, the sport marketing intelligence system, and the
sport marketing decision support system (DSS).
The internal reports system serves as a framework for the sport marketing
information system by allowing the sport marketing professional the ability to
examine the internal operations of the sport organization and improve upon
marketing efforts. Utilizing the information collected from various departments
through inputs from the order-to-payment cycle; the POS system; and data min-
ing, the sport marketing professional is better able to understanding the sport
organization itself, and its relationship to prospective and current customers.
The sport marketing intelligence system is a crucial element of the sport mar-
keting information system because it opens the door to understanding the

86 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
external environment that affects the sport organization. By using the primary
and secondary intelligence collected through the various methods of scanning,
and evaluating that data through the scanning dissemination process, the sport
marketing professional gains a better understanding of the opportunities,
threats, and trends that can affect the sport organization. In addition, this intel-
ligence is utilized to enhance the internal reports of the sport organization, and
can serve as a framework for future sport marketing research.
The sport marketing DSS assists sport marketing professional and other deci-
sion makers within the sport organization by taking advantage of information that
is available from the various sources and using that information to make strategic
decisions, control decisions, operational decisions, and marketing decisions. This
system looks at both the decision process and the decision outcomes, with the goal
of making changes in selected sport marketing that lead to higher profits, a
stronger and more positive image, or increase sport consumer satisfaction.
The key factors of the sport marketing DSS are the perceptual and intellectual
capabilities of the decision makers (cognitive abilities), and the time pressures asso-
ciated with decision making. The most difficult component of the sport marketing
information system to implement, the overall goal of this component is to make
decisions that interact with all parts of the sport organization, as well as to the
other related sport marketing mix efforts including product strategies, sales efforts
and pricing tactics, place distribution, and advertising and promotional plans.
The sport marketing information system collects data from the marketing envi-
ronment, including information from channels, competitors, customers, the econ-
omy, the law, markets, politics, and secondary research. The information is
disseminated into one of three areas: the sport marketing research system, the
internal reports system, and the sport marketing intelligence system. All that infor-
mation is then fed into the sport marketing DSS to make strategic decisions, con-
trol decisions, operational decisions, and marketing decisions. The decisions must
produce results that are valuable to a sport organization by showing that the infor-
mation being collected, analyzed, and used is equal to the cost of that information.

FROM THEORY TO PRACTICE

Dr. Mark Friederich, Vice President of Research
The Bonham Group, Denver, Colorado

I was born in Rio de Janeiro, and grew up in Germany before moving 5000
miles to attend Colorado College to earn a Bachelor’s degree. I also have earned
both a Master’s and Doctorate degree in Experimental Psychology from Brown
University. My previous positions before coming to The Bonham Group
included managing all end-user research for Qwest Dex (formerly US WEST
Direct), and as Director of Market Research for INVESCO Funds Group.
In 1998, The Bonham Group identified a need in the marketplace to com-
plement impressions-based analyses with additional quantitative and quali-
tative analyses, so we launched a market research division. It helped clients

Continued

S P O RT M A R K E T I N G I N F O R M AT I O N S Y S T E M S 87
 FROM THEORY TO PRACTICE – Continued

understand attendee attitudes, gauge the impact of a sponsorship on a corpo-

rate brand and measure purchase intent. Original clients included ESPN
Zone, adidas, and the East Coast Hockey League.
The Bonham Group Market Research Company has since done work for
many major corporations (Nationwide, New York Life), sports leagues
(NHL, LPGA, NFL), teams (San Diego Padres, Cleveland Indians), shopping
centers (Westfield Shoppingtowns), and cultural entities (B&O Railroad
Museum, National D-Day Museum).
At The Bonham Group, my main responsibilities are new product and
business development and managing all research projects. Some of the high
profile projects I have overseen have included:
■ The National Hockey League: Market research studies gauging fan atti-
tudes and avidity levels.
■ Anschutz Entertainment Group (AEG): Research designed to help AEG’s
MLS teams increase ticket sales, target fans more effectively, and obtain
insights into fan motivations and needs, particularly among Hispanic fans
of international soccer.
■ Nationwide: Research to help the insurance/financial services provider
understand and improve the impact of its title sponsorship of the PGA
developmental tour.
■ The LPGA: Fan segmentation study which provided a detailed under-
standing of fan attitudes, needs, and motivations to help the LPGA
increase TV viewers and tournament attendees.
■ Miller Brewing Company: Research designed to help Miller develop effec-
tive sports, concert, and other cultural sponsorship programs among the
general population, with a key emphasis on Hispanic sub-segments.
So how does it all work? After completion of a contract, The Bonham
Group’s market research executives, in conjunction with client representa-
tives, develop specific objectives for the study. We then devise a plan to meet
the objectives, including the formulation of appropriate methodologies.
The next step is to go into the field to conduct custom primary research
and/or conduct secondary research. After acquiring the data, the market
research staff analyses and synthesizes it, and then presents it in preliminary
form to an internal executive committee. Based on input from this committee
and key market research personnel, we develop strategies and recommenda-
tions to maximize the usefulness of the data to the client. These are tailored
specifically to the needs and objectives of the client and its industry. The data
and our conclusions are then packaged in a formal document and presented
to the client. Follow-up consultation is provided as appropriate.
We believe that reliable, “real-world” information helps corporations
maximize value and properties generate additional revenues. Sports market-
ing needs may vary and evolve over time, but a creative and innovative
approach to information analysis has ongoing and universal appeal.

88 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
 SPORT CONSUMER
BEHAVIOR

5
CHAPTER OUTLINE

What Is Sport Consumer Behavior?

Internal Factors Affecting Sport Consumers: What Makes Them Tick?
Personality of the Sport Consumer
The Learning Process of the Sport Consumer
The Process of Motivating Sport Consumers
How the Attitudes of the Sport Consumer Are Formed and Changed
The Perceptions Developed by Sport Consumers about a Sport Product
External Factors Affecting Sport Consumers: The Environment is Everything
Culture
Subculture
International and Global Interaction: Cross-Culture
Social Setting
The Marketing Concept for Sport
Who Are the Sport Consumers?
Why Do People Consume Sport?
Problem Solving and Decision Making
Problem Solving
Decision Making
Influencing the Sport Consumer
What Is Opinion Leadership?
Viral Marketing
How To Measure the Effectiveness of Opinion Leadership

89
 Diffusion and Adoption Processes
The Diffusion Process
The Adoption Process
Getting the Message Out
Conclusion

CHAPTER OBJECTIVES

The reader will be able to:

■ Utilize basic cultural, personal, social, and psychological principles to explain

how those factors directly affect individual purchasing and consumption
behavior of participants, fans, spectators, volunteers, community, and corporate
partners.
■ Examine the various types of sport consumer studies and how individual and
environmental factors, socialization, and participation directly influence the
decision making process for sport consumption.
■ Analyze the expected demographic, psychographic, geographic, and behavioris-
tic characteristics of the sport consumer.

WHAT IS SPORT CONSUMER BEHAVIOR?

Sport consumer behavior is the conduct that sport consumers display in seeking
out, ordering, buying, using, and assessing products and services that the con-
sumers expects will satisfy their needs and wants. In general, there are two
major types of consumers that sport marketers want to understand. First is the
personal consumer, who is an individual who buys goods and services for their
own use. This personal use is not always limited to individual use – it often
extends to household use, use by a family member, or use by a friend or col-
league. An example of this extension would be a family buying a set of tickets
to a game. Second is the organizational consumer, which is for profit or non-
profit business or industry entity that buys goods, services, and/or equipment
for the operations of the organization. An example of this would be a baseball
team purchasing equipment, balls, and bat for use in practices.

INTERNAL FACTORS AFFECTING SPORT

CONSUMERS: WHAT MAKES THEM TICK?

Personality of the Sport Consumer

From an individual standpoint, the sport marketer must be able to understand
numerous concepts. The first of those is the consumers’ self-concept. This
self-concept goes beyond self-image; it includes recognizing who the sport

90 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
consumer wants to be (ideal self), how the sport consumer believes they are
viewed by others (perceived self), and how the sport consumer interacts with
their reference group (reference group self). Sport marketers must also be aware
of the stage in the life cycle the target is a part of. The sport consumer changes
as they transition through life, which in turn modifies an individual’s attitudes,
values, and identities.
These concepts serve as the foundation for the individual personality.
Personality is defined as the unique and personal psychological characteristics
of an individual which reflects how they respond to their social environment.
An individual’s personality reflects their individual differences. While personality
can change, it is generally permanent and consistent.
Personality has been examined by many theorists; however, a majority of sport
consumers and consumer researchers in general tend to apply the personality
theories of Sigmund Freud to consumer behavior. It is generally held in Freudian
Theory that consumer purchases are a reflection of the personality of the con-
sumer. Freud believed that the unconscious needs or desires of people motivate
them to do something. In sport consumer behavior, that “something” is the pur-
chase of a sport product. To understand Freudian Theory, the sport marketing
professional must comprehend the three elements of the theory: the id, the super-
ego, and the ego. The id is the primary process of the unconscious mind that
focuses on gratification (such as instant gratification and release) and primitive
instinctual urges (such as sexuality and aggression). The superego is the morality
of an individual, which in turn formulates the ethical framework of individual
values, beliefs, and codes of conduct. The ego is the balancing part of the mind
between primitiveness and morality, which includes internal and external
consciousness, individual character differences, and the relationship between
emotions and actions.
The goal of the sport marketer is to arrive at an optimum stimulation level.
According to the theory of optimal stimulation level, individuals attempt to
adjust stimulation until their specific optimal level is reached. The sport mar-
keting professional must be able to determine these changes in stimulation level
as these variations will have a direct effect on the behavior of sport consumers.
There are two levels of sport consumer consumption that are directly affected
by stimulation levels. The first is materialistic sport consumer. These individuals
place a value of acquiring and showing off their accumulated sport products.
These are the “I have to have it” sport consumers who believe that possessions
equal status. Often times these materialistic sport consumers see their posses-
sions as a representation of self. Having the sport product often improves their
self image, or provides them with a higher status as viewed by their external
influences.
The second is the fixated sport consumer, otherwise known as the fanatic.
They have a strong interest in a particular sport product category and are willing
to go to extreme lengths to secure items in that category segment. These indi-
viduals are willing to spend as much discretionary time and money as necessary
to search for and purchase the specified sport product. While not all sport con-
sumers fall into these two levels, the sport marketer will often target these
demographics as they often result in the greatest return on marketing efforts.

S P O RT C O N S U M E R B E H AV I O R 91
The Learning Process of the Sport Consumer
Sport marketers must understand how the sport consumer learns. Some will
want to learn about a specific offering prior to creating an opinion, and hence
becoming involved with the sport product (learn : feel : do). An example
would be someone who is interested in rugby – researches and learns how to
play – then becomes a fan. Others will develop an attitude toward a sport prod-
uct, then consume the product, and as a result of satisfaction, learn more about
it (feel : do : learn). For example, a boy whose father is a football fan influ-
ences the boy to become a fan at an early age, and as he grows older he looks
into the team and its history.
A third manner in which the sport consumer learns is by trying a sport product,
and if satisfied learn more and develop a more detailed view of the sport product
(do : feel and learn). This is evident in the example where someone with no
prior interest in basketball participates in a pickup game with some friends, then
enjoys the game and becomes a fan.
Sport marketers also have to educate the sport consumer where to buy, how
to use, and how to continue using the sport product. This is most often accom-
plished through a process of teaching theory and providing experience to the sport
consumer about purchase and consumption behavior of sport product. This
learning process can be a result of a careful search of information (intentional)
or by accident (incidental). Regardless, sport marketing professionals must use
a number of techniques to educate the sport consumer. Through motivation
(which will be examined later in this chapter), the sport marketer strives to
influence the sport consumer toward a specific goal such as a purchase. Sport
marketers often use signals, sounds logos, and associations to motivate the sport
consumer. They also use reinforcement to entice the sport consumer to repurchase
the sport product.
To effectively teach the sport consumer, the sport marketing professional must
be aware of various learning theories – both behavioral (learning that takes
place as a result of observable responses to external stimuli) and cognitive (based
on problem solving and information processing).

Behavioral Learning Theories

Classical conditioning refers to the process of using an existing relationship

between a stimulus and response to bring about the learning of the same response
to a different stimulus. There are three strategic applications utilized by sport
marketers regarding classical conditioning. First is repetition, which increases
the connection with the sport product while at the same time preventing the sport
consumer from overlooking the sport product. This has a direct relationship to
exposure, which is a significant concern of sport marketers with regard to sport
product awareness. It is generally accepted that three exposures to an advertise-
ment is the minimum necessary for it to be effective.
The second application of classical conditioning is stimulus generation. This
is the inability of the sport consumer to differentiate between similar stimuli.

92 A DVA N C E D T H E O RY A N D P R AC T I C E I N S P O RT M A R K E T I N G
In this respect, the sport marketer utilizes numerous techniques to differentiate
the sport product through product extensions, branding, and licensing. The
final application of classical conditioning is stimulus discrimination, where the
sport consumer is able to perceive differences between sport products. This tells
the sport marketer that they have accomplished effective positioning of the
sport product.
Another behavioral learning process is operant conditioning. Sometimes also
called instrumental conditioning, this is where no automatic stimulus–response
relationship is involved, so the sport consumer must first be induced to engage
in the desired behavior and then this behavior must be reinforced. This theory
is more of a trial-and-error process when reinforcement plays a significant role
to determine customer satisfaction. The goal is to provide the sport consumer
with a favorable experience as related to the sport product in order to shape the
learning of the sport consumer, and result in repeating the behavior (i.e., repeat
purchase of the sport product).
Operant conditioning is widely utilized by sport organizations. The goal is to
equate the activity, product or service with pleasure, entertainment and enjoy-
ment. Think about your typical football game – why are there cheerleaders? How
come music is played during intermissions? Why do they put trivia questions or
other contests on the big screen? How about participatory activities such as
“Fling-A-Football,” where you get to throw a Nerf ball from you seat onto the
field and hopefully land it on a target for prizes? Why do they have short pee-
wee football games on the field during halftime? All of these are in an effort to
engage the spectator over and above the game, entice them into a positive
behavior, have them leave the facility with a feeling that they were entertained
(even if their team lost), and encourage them to repeat their purchase behavior.

Cognitive Learning Theories

Cognitive learning focuses on the information processes that are important

to the sport marketing professional. Primary in this focus is the concept of
retention, which involves the ability to recall or recognize something that has
been learned or experienced. Information is stored in the human memory either
in the order it was acquired, or based on major categories. The sport marketer
must be able to figure out how to retrieve those memories through marketing
efforts, which in turn should aid in the retention of the sport consumer.
Another concept important to cognitive learning is involvement. Involvement
was defined earlier in this chapter as creating a close connection with something.
The sport marketer seeks to stimulate the process of acquiring knowledge
about a sport product through media strategies. The strategies often are directed
toward creating a relationship between the sport consumer and the sport product
through persuasion. Marketing strategies that focus on the specific attributes of
the product are used to persuade those sport consumers who are already highly
involved with the sport product. For those who need to be persuaded to become
associated with the sport product, alternate methods involving cues such as setting
(playing in a new facility) and endorsements (equating a favorite player with a
sport product) are used.

S P O RT C O N S U M E R B E H AV I O R 93