The Growth of Sports Marketing
Question:
Highlight the unique characteristics of sports fans as consumers and identify and discuss the implications for sports marketing. As a final personal statement comment on yourself as a consumer of one particular sport.
As argued by Dionisio, Leal & Moutinho (2008) sports marketing is considered as a “special case” in marketing which means that there are both practical and theoretical dimension of marketing specific to sports marketing. As estimated by Fetchko, Roy and Clow (2016) the sports market is worth $700bn and is growing at a rate which is more than global GDP. The consumers of sports who are mostly sports fans have very different characteristics than that of usual consumer and therefore the approach which is taken in relation to sports marketing should also be different from the traditional marketing approaches. Marketing of sports would not be able to yield results if the behavior of the sports fans who are the ultimate consumers is not appropriately understood. Sports fans are loyal towards their particular brands as compared to other forms of products and services. The purpose of this report is to determine the unique characteristics possessed by sports fans in form of consumer. The report also analyzed the implication of such characteristics on sports marketing through discussing the various components of marketing in the light of the characteristics of sport fans.
Where a person a sports fan he or she is going to possess unique characteristics as compared to other consumers. For instance where a consumer is loyal to a particular coffee brand (A) he or she is likely to have coffee from the same brand. However the preference of the consumer may change when Brand (A) is not available and he can select between similar brands such as brand (B) or Brand (C). In addition even where Brand A is available and brand B or C provide coffee at discounted prices the consumer will selected these brand over brand A as he is going to get the same product at a less price. However the situation is not the same when it comes to sports fans who act as a consumer in sports market. Firstly it has to be determined that what characteristics are possessed by sports fans. It has been stated by Stewart Smith and Nicholson (2003) that there are five types of sports fans who can be classified into temporary fans, local fans, devoted fans, fanatical fans and dysfunctional fans. The classification has been done on the level of commitment these fans provide to team. Temporary fans have the least possible commitment towards the team and on the other hand the team is a major part of a dysfunctional fans life. Fans have been classified by Fullerton (2010) into three types firstly those consumers who are connected to the team through products features, secondly those who are connected to the team through product benefits and lastly those who are connected to the team via attitudes. As argued by Bühlerc and Nufer (2014) If a person is identified as a sports fan in relation to a particular college or professional cricket team, even where the team is losing he or she is going to:
- Purchase the licensed merchandise of the team such as caps, mugs and jerseys in order to promote the team.
- Follow the movements of the individual players of the team and the team as a whole both on and off the field through the use of mobile and computer news application and the official websites and pages of the team.
- Pay or donate for a permanent seat license so that they are able to purchase seasoned tickets.
- Travel outside the local market to witness the games of the team within and outside the local town.
- Provide support to tax based initiatives to fund for new stadium or arena for the team
- Devoting substantial personal time watching, discussing and attending the events of the team with other devoted fans of same or a different team
- Provides support to the league and competition in which the team participates
Unique Characteristics of Sports Fans as Consumers
While consumers of most goods and services perceive and evaluate value from an economic perception (which soap is the best buy), the sports fans perceive and evaluate value form an emotional perspective. The sport fans have Psychological identification in relation to teams and individuals which is much stronger than mere loyalty of normal consumers. In relation to promotion and media where in case of products and services the owner has to pay the expenses in case of sports marketing the media, fans and sponsors pay towards the promotion of the team. The Distribution channel in relation to product and services are static and more site-limited and on the other hand in sports marketing it is much more flexible and mobile. The normal consumers pay for goods and services and on the other hand the sports fans pay for a right to purchase sports products and tickets.
Where the characteristics of consumers in the sports industry is different from that in the products and service industries the marketing strategies in relation to sports also have to be different or else it would not be advantageous for the sports organizations. The unique characteristics of sports fans have already been discussed above. These characteristics have to be applied to the components of marketing in order to determine their implications on sports marketing. The sports organization have to ensure that their team is functioning well and is able to create different types of fans discussed above specially fanatics who would themselves market the team on its behalf. The team must direct its infrastructure towards establishing a strong fan base in order to ensure that they can effectively carry out sports marketing (Kelley 2015).
A primary point of differentiation between traditional goods and services marketing and sports marketing is how individual purchasers are viewed. In the sports industry the consumers are fans who are driven through emotional forces and on the other hand in the product and services sector the consumers are driven by only economic forces such as quality, quantity and price. The focus of normal GSM is therefore upon enhancing customer satisfaction. In the same way sports teams also look to satisfy the customers however both satisfactions are different. The effect of customer satisfaction which also generates delight in the sports industry is much more long term as compared to those in the normal GS Industries. Therefore when it comes to sports marketing the sports teams do not have to create customers rather they have to create fanatics who are emotionally attached to the team and whether the team performs good or nor they would always be following a team. Dealing with them as customers is a wrong approach in relation to sports marketing (Lee, 2014).
Consumers have their loyalty towards services and goods and on the other hand fans are indentified through individuals’, organizations and teams. There is a significant different approach in relation to marketing of product and services and sports marketing in terms of identification and loyalty. Unlike regular marketing sports fans as consumers are not loyal towards teams they identify the team through reacting towards events which takes place towards the team of player as if the event occurred to themselves. A fan must therefore be made to feel like they are a part of the team in relation to sports marketing. The higher is the fan identification in relation to the team the more they indulge in the process of promoting the team or individual player.
Types of Sports Fans and Their Commitment Level
The manufacturers and dealer of goods and services have to ensure that their brand is properly placed in the market through the process of paying for advertisement and promotion. On the other hand sports organizations, teams and players are provided with direct and indirect financial support in relation to advertise and promote themselves. Fans promote the organization through purchasing and wearing the merchandise of the team. Team and individuals are promoted directly by sponsors who pay for media and promotion for such teams. The situation that sports events are broadcasted itself distinguishes sports marketing from traditional marketing. Media is paid by the manufacturers of goods and services to broadcast or promote their products and services and to the contrary media pays the sports team to gain a right to broadcast their events. The biggest payers to these sports association are sports channels such as ESPN and Starsports. The revenue generated from media has to be utilized by the sports teams towards enhancing the quality of sports which is one of the essential elements of building a stronger fan base.
Specific geographic outlets are designated services and goods. Where a consumer wants to purchase a product from brand A, he has to buy such products from outlets or franchises of the brand. This means that the distribution channel in traditional marketing is usually static which only changes when sports closes or opens. On the other hand sports teams and events is a form of a road show which moves from city to city, location to location, nationally and globally. The transitory and experimental nature of sports event takes place through electronic form of distribution. This means that sporting events are eligible to be broadcasted through mediated distribution such as online videos. The EPL , for instance is broadcasted in every country through online videos, sports channels and live commentary on mobile media. Thus when it comes to distribution channels sports marketing has a very wide range of option the channels are flexible and non static (Stewart, 2014).
With respect to the distribution channel and nature of events sports like baseball, basketball, tennis and cricket are actually global products. This provides sports marketing a peculiar advantage as they do not have to make any alteration and or changes to the marketing mix in order to attain cross cultural acceptance. On the other hand when it comes to the marketing mix of goods and services they have to be adapted typically to the local market. Even products and services which are cited as global products such as McDonalds and Coca-Cola they are not actually global products when it comes to sports. These products have to change their packaging or ingredients in different countries. For instance MacDonald does not sell beef products in India. However when it comes to sports the content remains the same for all cultures.
Where price is a major factor of differentiation when it comes to products and services it does not play a major role when it comes to sports goods. The consumers in sports are not too bothered about the price-quality relationship as they are more concerned about emotional utility. In addition consumers of sports products also indulge in the payment of two part price. This means that they pay basic fee along with an additional user fee. For instance in order to purchase tickets they pay a subscription so that they get preference towards purchasing the tickets. Thus price is not a significant component in sports marketing as compared to regular marketing (Mullin, Hardy & Sutton, 2014).
Difference in Perception of Value and Evaluation between Sports Fans and Normal Consumers
Conclusion
From the above discussion it can be concluded that sports fans who are consumers possess a very different characteristic than traditional consumers. Therefore the characteristic of sports fans have to be properly understood by sports markets in order to avoid unnecessary spending and gain maximum revenue. The sports organizations and team have to build a strong customer base as the sports fans have much more than only loyalty towards the team and they are actually identified with the team. For the fans as consumers the quality of the product is hardly a factor they have an emotional bonding in relation to the product. in addition the fans do not give much significance to the price of the product as they are more concerned about the satisfaction they get in having such product in possession. The loyalty of the sports consumers are depicted through many ways and therefore no single method or model can be treated as comprehensive for sports marketing. The primary finding is that where they become fanatics they are likely to be the fan of the team or organization for a long time.
I am a big fan of mostly all kinds of sports, specifically Rugby, Cricket and Soccer. I always keep a track about the teams which I support through News feeds and their official websites. However the sports which interests me the most is soccer. Whenever I get any free time I always follow my favorite football team. I always compare my team with other teams and indulge in debates and discussion with my friend and relatives. I always take the side of my team even in situations where it does not perform well. The history of my team also motivates me in my personal life to put all efforts in everything I do.
My favorite player in football is the one and only Cristiano Ronaldo who pays for Portugal and Real Madrid. He has won Ballon d Or which is the best player in the world awards for the fifth time. I feel that I have also won the awards along with him. He puts all his efforts into the game and although he is 32 years of age he is competing with few of the best footballers in the world such as Leo Messi and Neymar Jr. He helped Real Madrid will the Champions League of the 12th time and also helped Portugal to win the prestigious Euro Cup. He was a former Manchester United Player who was transferred to real Madrid at a world record fee of £80M. On the other hand I like Manchester City which plays in the English Premier League and is now leading the points table with a huge margin. The team was also not as good in its initial days but through their effort and hard work is competing with few of the best teams like Manchester United and Arsenal.
I am a very enthusiastic collector of sports merchandise. I am always alert towards locating any new Kit or Product which has been launched by Real Madrid or Manchester City. I spend significant amount of money towards purchasing seasonal kits launched by my favorite teams. I am usually connected to my teams with applications like OneFootball and StarSports. These applications help me keep a tack of the movements of my team and player. I am notifed about the matches of my favorite teams. I also get news about other significant events such as injuries, new signings and contract extension of existing players.
I also started to like Real Madrid since Cristiano moved to the team. The team is coached by one of the greatest players of all times in football Zidane. Since he has taken charge of the team the team has been undefeated in Champions league tournament. It is also the richest club in the world according to forbes followed by Manchester United. I am searching for an original Cristiano Autograph, however I have been disappointed for many years I have not been able to gain access to it . It is my dream to witness him play in the Santiago Bernabue in the capital of Spain. I am collecting money for my dream to come true
References
Bühler, A., & Nufer, G. (Eds.). (2014). International Sports Marketing: Principles and Perspectives. Erich Schmidt Verlag GmbH & Co. KG.
Dionisio, P., Leal, C., & Moutinho, L. (2008). Fandom affiliation and tribal behaviour: a sports marketing application. Qualitative Market Research: An International Journal, 11(1), 17-39.
Fetchko, M., Roy, D. P., & Clow, K. E. (2016). Sports marketing. Routledge.
Fullerton, S. (2010). Sports marketing.
Kelley, S. W. (2015). Sports Marketing: Services Marketing 20 Years Later?. In New Meanings for Marketing in a New Millennium (pp. 265-265). Springer, Cham.
Lee, D. R. C. C. (2014). Sports Marketing in Asia. International Sports Marketing: Principles and Perspectives, 191.
Mullin, B. J., Hardy, S., & Sutton, W. (2014). Sport Marketing 4th Edition. Human Kinetics.
Shank, M. D., & Lyberger, M. R. (2014). Sports marketing: A strategic perspective. Routledge.
Stewart, B., Smith, A., & Nicholson, M. (2003). Sport consumer typologies: A critical review. Sport Marketing Quarterly, 12(4), 206-216.
Stewart, C. S. M. F. (2014). Sports Marketing in Australia. International Sports Marketing: Principles and Perspectives, 221.
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