Copyright © 2014 by Sports Career Consulting, LLC Lesson 5.1 – What is the Marketing Plan?

LESSON 5.1 The Marketing Plan What is the Marketing Plan? Marketing Plan: A written document that provides direction for the marketing activities for a specific period of time Copyright © 2014 by Sports Career Consulting, LLC It is a critical planning tool for any business, regardless of industry

LESSON 5.1 The Marketing Plan Copyright © 2014 by Sports Career Consulting, LLC  Provides direction for the organization by defining goals and strategies  It communicates the goals, objectives, and strategies of a company to its employees Marketing Plan What is the Marketing Plan?

LESSON 5.1 The Marketing Plan Copyright © 2014 by Sports Career Consulting, LLC The Marketing Plan Some marketing plans are prepared to be included as part of a complete business plan with the goal of obtaining financing from outside investors or bank for a new venture

LESSON 5.1 The Marketing Plan Complexity and Time Frame  The complexity of the plan is determined by the size and type of the organization  The plan is also influenced by the organization’s goals and objectives Copyright © 2014 by Sports Career Consulting, LLC What is the Marketing Plan?

LESSON 5.1 The Marketing Plan Complexity and Time Frame  The time period covered by the plan also varies with organization size and type  A minor league sports franchise will probably create a short term plan while a major league team will create a long term plan Copyright © 2014 by Sports Career Consulting, LLC What is the Marketing Plan?

LESSON 5.1 The Marketing Plan Understanding the Market  The product  The consumer  The economy  Target markets  Existing market distribution channels  Buying trends  Competitor performance Copyright © 2014 by Sports Career Consulting, LLC What is the Marketing Plan?

LESSON 5.1 The Marketing Plan Copyright © 2014 by Sports Career Consulting, LLC Competition refers to a rivalry between two or more businesses selling products or services to the same customers or markets What is the Marketing Plan?

LESSON 5.1 The Marketing Plan What is the Marketing Plan? Copyright © 2014 by Sports Career Consulting, LLC When two or more businesses sell the same goods or service, they are competing for the same consumers. Competition impacts price points, product features and marketing strategies because businesses are fighting for an edge that will persuade consumers to choose their products or services over those of competitors.

LESSON 5.1 The Marketing Plan Copyright © 2014 by Sports Career Consulting, LLC Market share is a key indicator of how well one company is performing against competitors within the marketplace What is the Marketing Plan?

LESSON 5.1 The Marketing Plan Copyright © 2014 by Sports Career Consulting, LLC Market Share For example, Pandora has a the majority of market share among brands competing in streaming music service market with much discussion in 2014 as to how Apple’s acquisition of Beats music will influence competition for users in the United States. Pandora (31%) iHeartRadio (9%) iTunes radio (8%) Spotify (6%) Google Play (3%)

LESSON 5.1 The Marketing Plan Copyright © 2014 by Sports Career Consulting, LLC A monopoly occurs when there is no competition in the marketplace What is the Marketing Plan?

LESSON 5.1 The Marketing Plan What is the Marketing Plan? Copyright © 2014 by Sports Career Consulting, LLC During the 2011 NBA lockout, the National Basketball Association filed suit in a U.S. District Court in Manhattan seeking a ruling that the lockout does not violate antitrust laws while lawyers representing the NBA Players Association have argued they regard the league as a monopoly because players have no viable alternatives for basketball employment in the United States other than playing in the NBA

LESSON 5.1 The Marketing Plan What is the Marketing Plan? Copyright © 2014 by Sports Career Consulting, LLC In 1984, the U.S. Supreme Court ushered in the modern era of escalating media rights fees when it declared the NCAA's control of football television rights to be an illegal monopoly. Today, schools that 30 years ago received less than $1 million a year from television can generate $20 million or more a year in revenue from the sale of television rights.

LESSON 5.1 The Marketing Plan What is the Marketing Plan? Copyright © 2014 by Sports Career Consulting, LLC A lawsuit alleged that EA Sports had "engaged in unlawful and anti-competitive agreements that nearly doubled the price of its popular game, Madden NFL, drove competition out of the market and prevented new competitors from entering." The company settled in 2012 for $27 million but only with respect to their NCAA and Arena football licensing agreements, not its Madden franchise.

LESSON 5.1 The Marketing Plan What is the Marketing Plan? Copyright © 2014 by Sports Career Consulting, LLC According to the LA Times, in discussing a lawsuit brought against Time Warner by the city of Los Angeles for other alleged improprieties, “Time Warner is the company that created a monopoly in game coverage with the Dodgers that will essentially shut out broadcast watchers and DirecTV subscribers from seeing the team.”

LESSON 5.1 The Marketing Plan Copyright © 2014 by Sports Career Consulting, LLC  Direct competition occurs between sellers of similar products and services  Indirect competition occurs between sellers that compete for the same share of consumers’ discretionary income (competition for the entertainment dollar) Types of Competition What is the Marketing Plan?

LESSON 5.1 The Marketing Plan What is the Marketing Plan? Copyright © 2014 by Sports Career Consulting, LLC It is possible for some products and services to compete directly at times and indirectly at others

LESSON 5.1 The Marketing Plan What is the Marketing Plan? Substitute Products: products (or services) that consumers may choose to use rather than a particular company’s product Copyright © 2014 by Sports Career Consulting, LLC Watching games in HD on television rather than attending the game in person

Copyright © 2014 by Sports Career Consulting, LLC Lesson Components of an Effective Marketing Plan

LESSON 5.2 The Marketing Plan Key components of an effective marketing plan: 1) Mission Statement 2) Executive Summary 3) Situation or S.W.O.T. Analysis 4) Marketing Goals / Objectives 5) Market Research / Marketing Strategies 6) Implementation 7) Evaluation and Control Copyright © 2014 by Sports Career Consulting, LLC

LESSON 5.2 The Marketing Plan Key components of an effective marketing plan (could also include): 1) Table of contents 2) Problem identification statement 3) Communication and/or publicity plan Copyright © 2014 by Sports Career Consulting, LLC

LESSON 5.2 The Marketing Plan The majority of marketing strategies are founded on the basis of the mission statement content The Mission Statement Mission Statement: A written statement that captures an organization’s purpose, customer orientation and business philosophy Copyright © 2014 by Sports Career Consulting, LLC

LESSON 5.3 The Marketing Plan  What business are we currently in?  Who are our current customers?  What is the scope of our market?  How do we currently meet the needs of our customers? The Mission Statement The mission statement should address the following questions: Copyright © 2014 by Sports Career Consulting, LLC

LESSON 5.3 The Marketing Plan  Be shared with and supported by company employees  Explain why the organization exists and what it hopes to achieve The Mission Statement To be effective, the mission statement should also: Copyright © 2014 by Sports Career Consulting, LLC

LESSON 5.2 The Marketing Plan The executive summary highlights key information within the document The Executive Summary Executive Summary: Provides an overview of the complete plan Copyright © 2014 by Sports Career Consulting, LLC

LESSON 5.2 The Marketing PlanS W O T Strengths Weaknesses Opportunities Threats The Situation (S.W.O.T.) Analysis Copyright © 2014 by Sports Career Consulting, LLC

LESSON 5.2 The Marketing Plan Marketing Goals & Objectives Goals and objectives identify what the company hopes to achieve with the marketing plan and a timeline for which the plan is to be carried out Why are goals and objectives important? Copyright © 2014 by Sports Career Consulting, LLC

LESSON 5.2 The Marketing Plan Marketing Goals & Objectives Effective objectives follow the S.M.A.R.T criteria Copyright © 2014 by Sports Career Consulting, LLC Specific Measurable Action-oriented Realistic Time bound

LESSON 5.2 The Marketing Plan Implementation Copyright © 2014 by Sports Career Consulting, LLC Implementation refers to the process of putting the marketing plan into action

LESSON 5.2 The Marketing Plan Evaluation and Control Copyright © 2014 by Sports Career Consulting, LLC The evaluation phase determines whether the plan achieved the desired results The controlling process refers to the adjustments required to achieve desired results where initial efforts did not already succeed