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Introduction to Sports Management – Week Five Welcome Assessment One and Two Discussion Forum Start Module Three Marketing Mix activity  Birmingham 2022 Organising Committee have postponed the start of their event by one day The Commonwealth Games will now begin on 28 July 2022 and conclude on 8 August 2022 Avoids clash with rescheduled UEFA Women’s Football Championships in England from 6 to 31 July 2022 The country is now promising five weeks of unrivalled sport in the English summer Also accommodates the World Athletics Championships, in Oregon USA, from July 15-24 The City of Birmingham will attract Athletic and Football fans from across the world.https://commonwealthgames.com.au/birmingham-2022-commonwealth-games-makes-24-hour-move-to-add-to-unrivalled-summer-of-sport/The blue and yellow “B” emblem is meant to link the venues of the sporting events to be held as part of the games.The colour palette “represents Birmingham as the youngest city in Europe”, designers said.Locations referenced in the design are Stourbridge, Cannock, Sutton Coldfield, Walsall, Wolverhampton, West Bromwich,Birmingham, Solihull, Royal Leamington Spa and Coventry.The logo is “bold and dynamic just like the region itself”, said Josie Stevens, chief marketing officer for Birmingham 2022, asorganisers held a special event in Birmingham’s Centenary Square to mark three years until the start of the games.https://www.bbc.com/news/uk-england-birmingham-49131075 Assessment Summary AssessmentAssessment TypeLengthDueWeight1Reflective Journal –My Sport Experience1000 wordsEnd of Week 4 – Sun Mar 1420%2Project Proposal for anew sport (Report)1500 wordsEnd of Week 6 – Sun Mar 2840%3Final Report for a newsport1500 wordsEnd of Week 12 – Sun May 940% Assessment 2 and 3 are linked – you need to choose create a new sport, or modify an existingsport, to attract a new market.Assessment Two – Project ProposalDevelop a proposal for a new sport, or a modified sport for a new market. This could be individual or team based. You should writefrom the perspective of the new Governing Body and outline the sport you have designed, including but not limited to: Introduction to the sport – name, brief concept, season or time of year The target market – who will play this new sport? Mission and/or Vision Statement – what is the purpose of this new sport? Goals and SMART Objectives – how will you establish this sport in the next 3-5 years? SWOT Analysis – table format with minimum of five factors in each of the four segments Risk Matrix table – potential risks and strategies to minimise them Proposed Rules including scoring and how to win Equipment and Uniforms required to play and minimise risks Proposed Competition for the first year including how many games (team sports) or events (individual sports) in the first year. Conclusion – convince the reader that this sport has a future.Assessment Two RubricYour assessment should also address the Rubric outlined in theAssessment Brief: Content, Audience and Purpose 10% Knowledge and Understanding 50% Critical reasoning, presentation and defence of an argument 30% Referencing 10%The slides from Modules 1 -3 are good references but you should alsoinclude the readings provided and websites that you find relevant fromthe sports industry.Foot Golf at Mt Pleasant Golf Club 18 hole foot-golf facility Enlarged holes and nuanced slopes Pre-season training, skill development or fun $15 to play Record score is 75 Looking to establish monthly competition Australian Championships and World Cupalready in pace A welcome addition to the program of events forthe golf facilityhttps://www.adelaidenow.com.au/sport/womens-sport/australian-cricket-legend-belinda-clark-says-its-never-been-a-better-time-for-womenssport/news-story/92469c9d3002b476508effe5e8b90749Subject Overview Module 1Module 2Module 3Module 4Module 5Module 6The Sports IndustryGovernance and RiskSport Marketing and MediaSport Tourism and EventsSport Facilities and VenuesProfessionalism and Ethics Module Three Topics1. Marketing Defined2. Target Markets3. The Sport Marketing ProcessNext Week:1. Media and Sport2. The Promotional Mix3. Media ClassificationsModule Three Readings1. Module Three Lecture Slides2. Ali, M. (2006). What is public relations? In Public relations: Creatingan IMAGE (pp. 6-9). UK: Harcourt Education.3. Cunningham, S., & Miller, T. (1994). The spectacle of sport. InContemporary Australian Television (pp. 63-89). Australia:University of New South Wales Press.4. Petley, J. (2002). Planning an advertising campaign. In Advertising(Media Wise) (pp. 18-24). UK: Hodder Wayland.5. Becoming an Ultimate Sports City – Branding and Marketing | Casestudy – Glasgow 2014Additional Readings1. Marketing Fundamentals (MKT101A)2. Sports Marketing (SPO102)Available at the Torrens Library:https://ebookcentral-proquestcom.ezproxy.laureate.net.au/lib/think/detail.action?docID=6222254Chapter Two to be discussed today.Discussion Forum – We often call people who buy our products customers or clients. Whatdo you want to be called in sport? A supporter or a fan? Or something else? Does it matter?SPO101Module 3Sport Marketing and MediaThis Module Marketing Defined Target Markets The Sport Marketing Process Media and Sport The Promotional Mix Media ClassificationsSPORT MARKETINGMarketing Defined“A social and managerial process by which individuals andgroups obtain what they need and want through creatingand exchanging products and value with others”(Kotler et al, 2006, p. 7).The sport marketer must identify the needs and wants ofthe consumer, and determine how they can satisfy theseneeds and wants through the exchange process.Kotler et al (2006, p. 10) identified the process of exchangeas the “act of obtaining a desired object from someone byoffering something in return”.Kotler, P., Adam, S., Brown, L. and Armstrong, G. (2006) Principles of Marketing: 3rd Edition, Pearson: Sydney.Needs and WantsWhat needs and wants are sport consumers seeking? Physical Activity Health and Fitness Fun Competition Entertainment Social Interaction Sense of Belonging Sense of IdentityPeople choose to consume their sport in different ways andwill therefore have different needs and wants. Some peopleplay sport for fun and some play sport competitively. Somepeople decide to buy tickets to the games (spectators) whileothers choose to watch from home (viewers).Multiple MarketsSport organisations therefore have multiple markets to satisfyand they have realised that, to remain competitive, they needto invest in marketing as a process to grow the sport.The professionalisation of sport since the 1980’s has seensport shift from ‘kitchen table administration’, where volunteerswere administering amateur sport, to full-time professionalmanagement including the creation of large marketing teams.Sport organisations traditionally had an internal perspective,focused on the operations and technical aspects of their sport,and are now expected to adopt an external perspective,focused on raising the profile of the sport and maximising therevenue opportunities that become available.Shilbury, D., Westerbeek, H., Quick, S., Funk, D. and Karg, A. (2014)Strategic Sport Marketing: 4th Edition, Allen & Unwin: Sydney.Target MarketsThe marketing process is the same for all industries includingsport, and the same process applies to sport participants, sportspectators and sport viewers.It would be easy to group these people together and refer tothem as ‘sport consumers’ or ‘sport fans’ but they havedifferent needs and wants, and so we need to segment themarket to satisfy these needs and wants.The marketing process allows us to explore the broader marketand then segment this market into target groups, and we thencreate marketing strategies and campaigns for each targetmarket.Target Market ExampleWhen the Gold Coast were awarded the 2018Commonwealth Games they identified four target markets: Families in Queensland Interstate Tourists International Tourists Sports FansThe organising committee deliberately scheduled the event in the Aprilschool holidays to ensure Families in Queensland could experience theevent, and Interstate Tourists could travel to the Gold Coast.International Tourists, looking for an overseas holiday, and SportsFans, who are motivated by sport, were also important targets, but themajority of ticket sales needed to come from the first two target markets.The Sport Marketing ProcessShilbury et al (2014) have created a sport marketing processthat mirrors other processes from the marketing literature.Marketing is not new but it continues to evolve as new ideas,new theories and new technologies are embraced by industryas they search for answers to meet the needs and wants of achanging community.The strategic sport-marketing planning process (SSMPP)is discussed in detail in another subject – SPO102 SportsMarketing – and only a brief summary is provided in thissubject. The SSMPP includes three stages and eight stepsas outlined on the following page:Strategic Sport-MarketingPlanning ProcessShilbury, D., Westerbeek, H., Quick, S., Funk, D. and Karg, A. (2014)Strategic Sport Marketing: 4th Edition, Allen & Unwin: Sydney.Step 1: Analyse External EnvironmentStep One involves: Analysing the external environmental factors, using thePESTEL framework (or similar) Analysing the forces that drive competition within theindustry, using Porter’s Competitive Forces Model Identifying the publics (or stakeholders) to which the sportis responsible – these stakeholders also have needs andwants to be addressed.The factors and forces that are external to the organisationwill impact the marketing strategy adopted by the organisationand the success of that strategy.PESTEL FrameworkTo understand the external environmental factors that impacton the organisation we consider the PESTEL framework:POLITICAL ECONOMICAL SOCIAL TECHNOLOGICAL ENVIRONMENTAL LEGALhttps://www.business-to-you.com/scanning-the-environment-pestel-analysis/Porter’s Competitive Forces ModelTo understand the industry in which they compete MichaelPorter (1985) outlined five forces that managers shouldreview when examining competition within that industry.Shilbury et al (2014) adapted this model for the sports industry:Force 1 – Intensity of competition within the industry (current sports)Force 2 – Bargaining power of buyers (consumers/sponsors)Force 3 – Threat of substitute products (other sports/leisure pursuits)Force 4 – Bargaining power of suppliers (participants/athletes)Force 5 – Threat of new entrants (new sports or teams)Porter’s Five Forces ModelShilbury, D., Westerbeek, H., Quick, S., Funk, D. and Karg, A. (2014)Strategic Sport Marketing: 4th Edition, Allen & Unwin: Sydney.Identifying Publics/StakeholdersThe identification of publics or stakeholders begins with theanalysis of the industry – they are critical groups who haveneeds to be addressed and influence the sport:Shilbury, D., Westerbeek, H., Quick, S., Funk, D. and Karg, A. (2014)Strategic Sport Marketing: 4th Edition, Allen & Unwin: Sydney.Step 2: Analyse OrganisationIn Module One the importance of Mission, Vision, Goals andSMART Objectives were discussed – they set the strategicdirection for the organisation.Step 2 allows the Manager to reflect on this information andconsider any new information from Step 1, the externalenvironment.The Manager may need to refine goals or objectives, orcomplete another SWOT Analysis. The Manager needs to feelconfident that they have the internal capabilities to developand deliver the marketing strategy, and make sure that themarketing strategy is consistent with the organisation’s strategy.Step 3: Market Research and MISStep 3 is one of the most important steps in the process –making sure market research is conducted so that theorganisation understands the marketplace, and can makeinformed decisions on what markets to target.Market research requires data to be collected from consumersand other stakeholders via surveys, interviews, focus groupsand other means. Data is stored on the MIS – ManagementInformation System – and can be divided into the following: Demographics:Psychographics:Behavioural:age, gender, suburb, education, nationalitypersonality, values, attitudes, opinionsconsumer behaviour, usage, loyalty Step 3: Market Research and MISShilbury et al (2014) suggest six questions to ask as astarting point to build a consumer profile: Who are the consumers in the marketplace? What do they purchase? Why do they choose a particular product? When do they consume it? Where do they consume it? How is the product used by the consumer?Organisations need to determine which data is beneficialand contributes to their decision-making.Step 4: Determine Marketing Mission andObjectivesThe strategic plan for the organisation is usually long term andlooks 3-5 years into the future. The marketing mission andobjectives focus on a shorter time period. Some sports willmodify their marketing strategies every year to capitalise on thenew season and the opportunity it presents.Other sports may change their strategies in-season, in responseto an external factor or a competitor or a new opportunity. SportMarketers need to be careful not to react to poor media or pooron-field performance. Any new marketing initiative shouldfollow steps 1-3 and a new marketing mission and objectivesshould be developed to focus on the outcome.Step 4: Determine Marketing Mission andObjectivesShilbury et al (2014) suggest that every organisation islooking for a competitive advantage over their rivals, andthey need to develop a range of products to achieve this.These products can be goods or services:Goods: material items that are tangible (seen or touched)Services: benefits provided by other persons, intangibleIt is the mix of goods and service – the product range – thatmakes some sports more appealing than others.Step 4: Determine Marketing Mission andObjectivesThere are various tools that can be used by the manager atthis stage in the planning process to determine the successof their products and the next step that they should take.These tools will be explored in SPO102 and include: The Product Life Cycle – a graph based on sales overtime to determine where the product is at in its life cycle –introduction, growth, maturity, decline. The Ansoff Matrix – a matrix that identifies four strategicoptions for organisations based on existing products andmarkets, or creation of new products and markets.The Product Life Cyclehttps://wholesalesuiteplugin.com/product-life-cycle/The Ansoff MatrixCreated by Igor Ansoff (1957). Refer to:https://blog.oxfordcollegeofmarketing.com/2016/08/01/using-ansoff-matrix-develop-marketing-strategy/ANSOFF Matrix – Product and Market Expansion 1. Market Penetration Test Cricket One Day Cricket3. Product Development Women’s Cricket2. Market Development Night Test Matches4. Diversification T20 Cricket Beach Cricket?Existing ProductsNew Products Existing MarketsNew MarketsStep 5: Determine Marketing StrategyIn Step 5 we focus on the product that we think will satisfyour marketing mission and objectives, and ideally generateawareness or revenue (or both) for the sport.A product is anything that is offered to a market that satisfiesa want or need. A product can be a good (tangible) or aservice (intangible) and the role of the marketer is to sell ordistribute that product to the people who need or want it.To achieve this we determine the marketing mix – a mix ofvariables that positions the product in the marketplace.The Marketing MixThe traditional marketing mix – the four P’s – focused onthe selling of goods: ProductIdentifying the good and its benefitsPlaceDistribution of the good at the right time/placePriceSetting a price that reflects consumer valuePromotionCommunicating the good to the targe market A common way to remember this was ‘get the right productin the right place at the right price with the right promotion’.The Marketing MixGoods are still popular but consumers are now looking forservices, or experiences, which we know are intangible. Wetherefore expand the marketing mix with four additional P’s – Physical EvidenceVisual/tangible cues of the serviceProcessThe process of service deliveryPeopleThe people responsible for service provisionPartnershipsOther partners critical to the service(eg ticketing agency, sponsors, broadcasters) Some text books still refer to 4Ps, some refer to 7Ps(excluding partnerships) but in sport the 8Ps are critical.Pride, W.M., Ferrell, O.C., Lukas, B., Shembri, S.,& Niininen, O. (2015). Marketing Principles: SecondEdition. Cengage Learning: South Melbourne, VIC.The Marketing MixThe diagram by Pride et al (2015)provides a good summary of thediscussion so far: External environmental forces External competitive forces The four traditional Ps The expanded Ps The customer in the centre – thetarget market and the mostimportant factor.Goods v ServicesThere are people who specialise in the marketing of sportinggoods – sport equipment, sport clothing, sport drinks – but thecore business for most sports is the marketing of sport services –creating experiences for people to play or watch sport.We expand the marketing mix because services are differentand, in some ways, more challenging to market:Tangibility – Goods are tangible while services are intangible.Inseparability – Goods are produced before they are consumed, while aservice is produced and consumed at the same time.Perishability – Goods can be stored in inventory while services cannot bestored for later use.Quality/Consistency – Goods have a consistency and high level of qualityassurance while the consistency and quality of services is variable.Example of Marketing Mix 8P’sExampleProductA multi-sport major event with 25 sports, 275 individual sporting events plusan extensive arts and cultural festivalPlace17 venues on the Gold Coast plus venues in Brisbane, Cairns, TownsvillePriceAffordable, family pricing, 80% of all tickets were under $80, ticketingincluded free public transportPromotionMultiple promotion and communication channels including Advertising,Digital Marketing, Personal Selling and Public RelationsPhysical EvidenceThe Torch Relay, School Education Program, Queensland and Gold CoastAmbassadors, Online Merchandise shop 12 months before the eventProcessOnline Ticketing Ballot, Payment systems, Ticket distribution, Online shop,Travel packages, Public Transport processPeopleLarge team of contract staff (1000+), Volunteer Workforce (15,000),Trainingand Induction program with Griffiths UniversityPartnershipsTourism Agencies, Accommodation providers, Public Transport providers,Food and Beverage suppliers, Corporate sponsors, Arts community Class Activity 8P’sExampleProductPlacePricePromotionPhysical EvidenceProcessPeoplePartnerships Complete a Marketing Mix for a local Athletics Club managed by volunteers.Step 6: Determine Tactics & BenchmarksOnce the marketing mix is in place the manager thinks abouttactics and benchmarks to deliver and measure the desiredresults. This additional level of planning ensures that each ofthe 8P’s is executed correctly.Tactics: are the individual actions required to influence yourmarketing objectives. For example, advertising a coachingclinic to schools may require distribution of a poster. Thetactics include poster design, finding the right image, printing.Benchmarks: these are measurements to compare yourresults with past performances and also your competitors.Another sport may attract 50 kids to a coaching clinic and youattract 75 – a great result.Step 7: Implement & CoordinateMarketing MixStep 7 is about implementing the marketing mix, andintegrating the different components, resources andpeople to ensure the strategy is executed harmoniously.This is often referred to as the moment of truth – themoment when all your planning comes to fruition and yourtarget market is about to experience the good or servicethat you have created, and form or change an impressionabout that particular good or service.This is also the moment when the target market form orchange an impression about your brand.Step 8: Control Marketing FunctionStep 8 is focused on the control process – the setting ofstandards, specifying and obtaining feedback, evaluating it,and taking corrective action.In business we know that everything we do will be measuredand evaluated, and we have already planned for that bysetting SMART objectives. The control process allows us todetermine if those objectives have been met.We evaluate the marketing mix and its execution and use thisinformation to make decisions for the future. Can themarketing mix stay the same or does it need changes? Ismore market research required?Shilbury, D., Westerbeek, H., Quick, S., Funk, D. and Karg, A. (2014)Strategic Sport Marketing: 4th Edition, Allen & Unwin: Sydney.Available from the Torrens library:https://ebookcentral-proquest-com.ezproxy.laureate.net.au/lib/think/detail.action?docID=6222254Marketing SummaryYour understanding of marketing will develop throughout yourstudy as you are exposed to more business and marketingsubjects and you complete more assessments.You are already exposed to marketing every day as consumersand being aware of this will also assist your understanding.Additional reading is encouraged and the following book isrecommended for Sports Marketing:MEDIA AND SPORT