Presentation on theme: "Chapter 2 Strategic Marketing Management 2 Strategic Marketing Management C H A P T E R."— Presentation transcript:
Chapter 2 Strategic Marketing Management 2 Strategic Marketing Management C H A P T E R
Objectives To identify the key stakeholders in sport marketing Identify who creates the brand perception To know the core elements of market analysis, product concept, and product position To know the distinctions among the six Ps of sport marketing: product, price, place, people, promotion, and public relations (continued)
Marketing Management Strategy Marketing-minded leaders are needed in today’s sport organizations. Strong marketing management strategy requires both –strategy (big-picture concepts) and –tactics (the details of the plan).
Marketing Planning Process MPP builds a marketing plan but must also integrate with an organization’s overall strategic vision. The planning process comprises five steps. See figure 2.1.
EXAMPLES Amazon.comWe sell books, videos, CDs, toys, consumer electronics and other products online We make the Internet buying experience fast, easy, and enjoyable— we’re the place where you can find and discover anything you want to buy online DisneyWe run theme parksWe create fantasies—a place where dreams come true and America still works the way it’s supposed to NikeWe sell athletic shoes and apparel We bring inspiration and innovation to every athlete* in the world (* if you have a body, you are an athlete)
Step 1: Develop Vision, Position, and Purpose Core vision and ideology. Sport organizations must determine or establish core values and ideology before moving forward with strategic marketing efforts. Strategic planning is the process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities (continued)
Step 1: Develop Vision, Position, and Purpose (continued) SWOT Analysis –Sport organizations must systematically gather and collect data about their consumers, often through DBM and CRM systems. –Sport organizations must scan their internal (strengths and weaknesses) and external (opportunities and threats) environments before moving forward with strategic marketing efforts. –SWOT analysis will assist sport organizations in analyzing market trends and fads. (continued)
Step 1: Develop Vision, Position, and Purpose (continued) After SWOT Analysis –Following SWOT analysis, sport organizations must reevaluate their strategies and potentially change direction to ensure alignment between their planning and the environment.
Step 2: Develop Strategic Goals and Objectives The development and reassessment of goals and objectives should emanate from ongoing analysis. Clarifying goals and objectives is what sets the manager apart from the caretaker.
Setting Company Objectives and Goals BUSINESS OBJECTIVES Build profitable customer relationships Invest in research Improve profits MARKET GOALS Increase market share Create local partnerships Increase promotion
Step 3: a.Develop a Ticket Marketing, Sales, and Service Plan Tickets and spectator attendance are the trunk of the sport business money tree. –Marketing of sport organizations should revolve around generating revenue. At this stage in the planning process, sport marketers must segment the market and determine key targets. (continued)
Step 3: b. Develop a Marketing Mix Plan The escalator concept. Sport marketers are wise to invest more resources in retaining current customers (and growing their affinity) than in attracting new fans. See figure 2.2. (continued)
Marketing Strategy and the Marketing Mix
Recognized and Use of the Five Ps of Marketing The six Ps of (sport) marketing: –Product –Price –Promotion –People –Public Relations –Place
Marketing mix is the set of controllable tactical marketing tools— product, price, place, and promotion—that the firm blends to produce the response it wants in the target market
PRICING Pricing Strategy Importance of: ◦ knowing the market ◦ elasticity ◦ keeping an eye on rivals
PROMOTION Strategies to make the consumer aware of the existence of a product or service NOT just advertising Activity: Student Board
PLACE The means by which products and services get from producer to consumer and where they can be accessed by the consumer The more places to buy the product and the easier it is made to buy it, the better for the business
PUBLIC RELATION Page 315 It is the function of communicating an organization’s message externally. 1. What are the (7) attributes a PR professional must have? 2. What are the (9) skills a PR professional should practice?
Step 4: Integrate the Marketing Plan Into a Broader, Strategic Resource Allocation The marketer must ensure that senior executives will support the plan. Structure follows strategy. Coordinate the five Ps with broad support from the entire organization, top to bottom. Blend the five Ps to build packages valued by the customer.
Step 5: Control and Evaluate Implementation of the Plan Analysis, evaluation, and control should be everyday events. Consumer satisfaction = product benefits − costs.
Consumer satisfaction = product benefits − costs. What are the indicators of consumer satisfaction? Evaluation of : LAV ROO ROI ___________________________
Other Issues to Consider: 1.Ethical Principles: Florida State University and the Seminoles (class read bottom of page 50-51. 2.Social Responsibilities: a. labor laws b. sport laws c. criminal laws
Activity 2.1 The Marketing Planning Process (MPP) For this activity, assume you were just hired as the new director of marketing for the Tulsa Shock. The Shock is a professional basketball team based in Tulsa, Oklahoma, playing in the Women’s National Basketball Association (WNBA). As of 2012, they had never qualified for the WNBA playoffs in their years in Tulsa. The Shock does not share a city with an NBA counterpart. Instructions Briefly describe the Shock by consulting their website at http://www.wnba.com/shock/index_new.html and by reviewing other relevant web sources. http://www.wnba.com/shock/index_new.html In your new role as director of marketing, answer the following questions: 1. How can the Shock convert its threats into opportunities? 2. Using SWOT analysis, discuss the opportunities and threats that may apply to Tulsa Shock. 3. What information would you want to include when developing a Ticket Marketing Sales and Service plan (TiMSS plan) for the Tulsa Shock? Describe the types of information and explain why you would include it. 4. How can the Shock apply the escalator concept to keep ticketholders from defecting and to increase customer satisfaction?