Introduction to Sport Marketing. Lecture 4: Sport Marketing Opportunities
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1 Introduction to Sport Marketing Lecture 4: Sport Marketing Opportunities
2 Lecture 4. Overview Identify the key activities required to identify sport marketing opportunities. Explain the elements and purpose of a SWOT analysis. Conduct a macro and micro environmental analysis. Describe the process and importance of a competitor analysis. Identify some of the introductory issues associated with market research, including its application and importance to identifying marketing opportunities.
3 Principle 4.1: The Sport Marketing Framework describes the four stages of sport marketing.
4 Stage 1. Identifying Sport Marketing Opportunities
5 Stage 1. Identifying Sport Marketing Opportunities Important to conduct preliminary research and analysis in order to make sensible marketing decisions What opportunities exist in the marketplace What competitors are doing What a sport organization is good at doing What consumers actually want Three forms of analysis: 1. Analysis of internal and external environments 2. Analysis of the market and consumers 3. Analysis of the organization These three forms of analysis are conducted at approximately the same time
6 Analyse Internal and External Environments
7 Analyse Internal and External Environments The internal environment refers to the unique circumstances of the sport organization for which the plan is being developed The external environment refers to the marketplace in which a sport organization operates Tools used for analysis 1. SWOT analysis (with external environment analysis) 2. Competitor analysis (including the Five Forces analysis)
8 Principle 4.2: The first step in identifying sport marketing opportunities is to analyse the internal and external environment using the tools of SWOT analysis and competitor analysis. SWOT: strengths, weaknesses, opportunities, threats Examines the strategic position of an organization from the inside (strengths and weaknesses) and the outside (opportunities and threats) Look for no more than five factors under each of the four headings
9 SWOT Guidelines Strengths resources (e.g. financial, staff, volunteers) skills (e.g. talents of management, staff and volunteers) advantages (compared with competitors) Weaknesses lack of resources (e.g. financial, staff, volunteers) lack of skills (e.g. amongst management, staff and volunteers) disadvantages (compared with competitors) Opportunities favourable situations in the external environment weaknesses of competitors Threats unfavourable situations in the external environment unfavourable trends in leisure and entertainment
10 External Environments of a Sport Organization The SWOT analysis should consider each of these environments
11 The Macro External Environment The SWOT analysis should consider the macro external environment
12 The Sport Industry (Micro) External Environment The SWOT analysis should consider micro external environment
13 Tool 4.1. SWOT and External Environment Analysis: A SWOT analysis examines the strategic position of an organization from the inside (strengths and weaknesses) and the outside (opportunities and threats). The OT part of the analysis should include an assessment of the macro (broad), and micro (sport industry) external environments. The macro external environment is made up of the political, economic, legal, technological, social and physical environments. The micro (sport industry) environment is made up of Media, Finance, Staff and Members, Commercial, Government and Leagues, and Public groups.
14 Competitor Analysis: Types of Competitors In addition to the SWOT, the second way to analyse the internal and external environments is through a competitor analysis
15 Dimensions of a Competitor Analysis Dimension Geographic Scope Mission and Vision Objectives Market Share and Position Strategy Resources Target Market Marketing Mix Approach Description What region or location do they operate in? Is there geographical overlap? Do they intend to maintain their current market position? Do they have a vision to change their situation? What are their ambitions for the future? Their short to medium term goals. Are they a small player, a medium player or a virtual monopolist? What methods are they using to gain an advantage over their competition? Amount and availability. Who are their products and services marketed to? The products and services they offer, the promotions, pricing and distribution strategies they use.
16 Five Forces Analysis
17 Tool 4.2. Competitor and Five Forces Analysis: When conducting a competitor analysis, be aware of the three types of competitors: immediate/direct competitors, secondary competitors and indirect competitors. The dimensions of a competitor analysis include: geographic scope; vision, mission and objectives; market share and position; strategy; resources; target market; and marketing approach. It is also advisable to conduct a Five Forces Analysis which addresses: 1) the intensity of rivalry amongst industry competitors 2) the threat of new entrants into the marketplace 3) the threat of substitute products in the marketplace 4) the bargaining power of buyers 5) the bargaining power of suppliers
18 Analyse the Organization
19 Principle 4.3: The second step in identifying sport marketing opportunities is to conduct an analysis of the organization. This requires four tools: the Mission Statement; Vision Statement; Organizational Objectives; and Stakeholder Analysis It is necessary to understand the purpose, aims and goals of the sport organization, in addition to the needs of its stakeholders. These four tools will help to identify appropriate sport marketing opportunities.
20 The four tools for organisational analysis Tool 4.3. Mission Statement: This statement reveals the purpose of an organization, why it was created, what services and products it provides, and to whom they are provided. Tool 4.4. Vision Statement: A written record of the desired achievements for an organization in the future. Tool 4.5. Organizational Objectives: A statement of the targets that must be reached in order to make the vision a reality. Tool 4.6. Stakeholder Analysis: This involves assessing the diverse agendas of all individuals, groups, and organizations that have an interest in the sport organization.
21 Analyse Market and Consumers
22 Market Research Who are the sport organization s customers? What do these customers need and want? In what manner and how often should customers be contacted? Which marketing strategies elicit the most favourable responses from customers? What responses will each type of marketing strategy elicit? What mistakes have been made? Example Genworth Financial
23 Applications of Market Research
24 Principle 4.4: The third step in identifying sport marketing opportunities involves acquiring information about the sport market and consumers through market research. Market research involves collecting two kinds of information: quantitative (numerical), and qualitative (non-numerical). Tool 4.7. Quantitative Market Research: Involves collecting numerical information through a survey or questionnaire. Should be used when the organisation already knows something about its customers and would like to refine this knowledge. Tool 4.8. Qualitative Market Research: Involves collecting non-statistical, but in-depth information through interviews and focus groups, suggestions boxes or complaint analysis.
25 Identifying sport marketing opportunities We have now looked at the three forms of analysis used to identify sport marketing opportunities But what is a sport marketing opportunity?
26 Principle 4.5: A market opportunity is a situation where a new or modified product or service can be introduced that meets an unfulfilled sport consumer need. Tool 4.9: Product-Market Expansion Grid. Provides a summary of the opportunities available for selling a particular product or service. Highlights four possibilities: 1) Market penetration (marketing the existing product to additional consumers in the target market) 2) Market development (marketing the existing product to an expanded target market) 3) Product development (marketing to the same consumers with a new version of the product or service) 4) Diversification (marketing a new product to a new target market)
27 Product-Market Expansion Grid
28 Principles Summary Principle 4.1: The Sport Marketing Framework describes the four stages of sport marketing including identifying sport marketing opportunities, developing a sport marketing strategy, planning the sport marketing mix, and implementing and controlling the sport marketing strategy. Principle 4.2: The first step in identifying sport marketing opportunities is to analyse the internal and external environment using the tools of SWOT analysis (with external environment analysis) and competitor analysis (with the Five Forces analysis). Principle 4.3: The second step in identifying sport marketing opportunities is to conduct an analysis of the organization. This requires four tools: the Mission Statement; Vision Statement; Organizational Objectives; and Stakeholder Analysis. Principle 4.4: The third step in identifying sport marketing opportunities involves acquiring information about the sport market and consumers through market research. Market research involves collecting two kinds of information: quantitative (numerical), and qualitative (non-numerical). Principle 4.5: A market opportunity is a situation where a new or modified product or service can be introduced that meets an unfulfilled sport consumer need.
29 Tools Summary Tool 4.1. SWOT and External Environment Analysis Tool 4.2. Competitor and Five Forces Analysis Tool 4.3. Mission Statement Tool 4.4. Vision Statement Tool 4.5. Organizational Objectives Tool 4.6. Stakeholder Analysis Tool 4.7: Quantitative Market Research Tool 4.8: Qualitative Market Research Tool 4.9: Product-Market Expansion Grid
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