chapter 5 Data-Based Marketing and the Role of Research in Sport Marketing

Congratulations. You have just been hired by the University of Nebraska Athletic Department Media and Public Relations Department making $40,000 per year. In your first staff meeting with your director, you have been given the job to find out everything you can about the people who buy and ticket and attend home football games. This information will be important in helping to determine how to spend the $2 million in the football advertising budget. You have been given one week to come up with some ideas…good luck!

Objectives To appreciate the components and the importance of a data-based marketing information system and the role of customer relationship management (CRM) To understand the various research methodologies and approaches most commonly used in sport marketing To recognize the internal data sources available to sport organizations and the most effective ways to build a database

A Data-Based Marketing Approach It involves the integration of all data files pertaining to the customer base. It integrates those files into one database that provides a 360-degree view of each consumer, detailing every interaction and communication that they have had with the sport organization. It facilitates contact with current, past, and potential customers. This enables the sport organization to target offers and initiate communication based on an understanding of the targeted consumer’s history (transactional or otherwise) with the organization.

Data-Based Management System (DBM) A comprehensive system that captures essential demographic, psychographic (feelings), and product usage information on customers and potential customers for the purpose of enabling direct marketing strategies Characteristics of an effective DBM system: –Centralized (kept in one place) –Retrievable (simple interface and ease of use) –Integrated (accessible to multiple users)

Customer Relation Management (CRM) System CRM expands on the basic customer demographic, psychographic, and product usage data captured in a DBM system. Ideally, it captures all transactions, inquiries, and interactions between the customer and the organization.

Role of the Web in DBM and CRM DBM and CRM systems have to be fully integrated into the entire e-marketing program of the sport organization. The Web site of the team or organization has to be –a major source of information; –interesting and entertaining for the fans or customers of the organization; –a major source of information on ticket sales, plans, and special promotions; and –a springboard for launching sales and transactions. Consequently, data on all fans or customers and prospective customers who visit the organization’s Web site need to be captured and incorporated into DBM and CRMs.

Elements Needed for a Solid Database and Direct Marketing Strategy Identifying and using data sources Coding the data Collecting contact information Using customer or fan loyalty programs Updating and cleaning the data Creating online and offline direct marketing campaigns

Stakeholders: Those Who Touch the Product Buy or use a ticket Watch game telecasts Listen to games on the radio Buy apparel, videos, and publications Visit league or team Web site Complete an all-star ballot Coach or play the sport at a youth or adult league level Buy from a league or team partner Play in fantasy leagues Participate in a fan loyalty program Participate in a league or team promotion Enter to win an online sweepstakes Enter to win a contest at a community event

Role of Market Research Works independently of the sports organization. Asks: What does the organization want to know? What is the best way to find it out? How can they use it?

General Market Data Size of the market The demographics of individuals residing or working in the critical trading radius The purchase behaviors and consumption patterns of those residing or working within the market The level of spectatorship or participation in a sport broken down by demographic categories Data on future trends

Data on Past, Present, and Future Customers Names, addresses, addresses, and phone numbers of consumers Frequency of purchase or attendance, use of product type and quantity of product purchases, and dates of purchase or attendance Method of payment, location where product was purchased, and lead time Media used or source of awareness Pattern of consumption

Data on Competitors (ethical) Price lists Product lines Promotional strategies Description of services Comparisons among all similar organizations

Internal Data Sources Sales records Inquiries Accounting records Letters or phone calls of praise or complaint Web site registrations

Secondary Data Sources Census reports Census-based demographic reports State or local agencies Public libraries Chambers of commerce Trade associations Research services Trade or scholarly publications

Primary Data Sources: Importance Communicate with the target market. Assess your position in the market. Establish a demographic profile of the audience. Initiate data-based marketing efforts. Benchmark and evaluate operational elements. Gather information essential for sponsorship renewal or solicitation of new sponsors or for determining reaction to new concepts, products, or services.

Types of Primary Data Collection Personal observation Focus groups Surveys and questionnaires –On-site surveys –Mail surveys –Telephone surveys –Web site surveys – surveys Video Interviews Personal interviews (identify or not identify) Community intercepts Protocol research Panel of experts Mystery fan Open letter Integration

Common Problems in Market Research Sampling: How many people should I survey to be accurate? Reliability –How dependable are my findings? –Where should demographic questions be placed in a survey? Randomness: How can I be assured of a random population for the survey?