Sri Lanka, Feb. 8 -- , Marketing and Management Consultant, Chartered Marketeer, CIM U.
K.
The business of sports, is big business indeed! The Olympic Games, Football World Cups, Cricket World Cups etc., are all mega money making and spending events. So how is sports marketed and what needs to be done to maximize the ROI?
Sports as an 'Event'
Any sports game is a product that needs to be marketed, as an event. An event is something special, which is targeted at special audiences and positioned accordingly. For example, the Olympic Games are positioned as 'the greatest event on the planet.' Given the vast audiences attracted by sports events, many opportunities exist in marketing them.
Stakeholders in sports marketing
Many diverse stakeholders need to be considered:
The fans - Interested in the sport
The sponsors - Who finance the event and expect a business return
The officials - Authorities, sports governing councils/bodies
Governments - National, regional
Media - Mass media organizations
Infrastructure Providers (Suppliers) - Diverse range of suppliers
'Positioning' as a sports event
The success of a sports event, depends on how well it is 'positioned'. There are several positioning strategies available.
By user - Very popular method of positioning. Football fans, cricket fans, tennis fans etc.,
By attribute - Fast game, slow game, entertaining game, endurance game
By product class/category - Positioning not as a sports event but as something else. (e.g. T20 Cricket as an entertainment event)
In positioning a sports event, the stakeholders perspective needs to be considered.
The 'Consumers' of the sports event or simply FANS. Without fans any sport is a non-starter. In Sri Lanka, cricket and rugby are very popular sports, due to the great fan base. In the USA, it is basketball and baseball. In the UK it is football, rugby and cricket.
The fans or consumers of sports have needs and aspirations. These need to be understood and fulfilled. These needs could vary from entertainment, relaxation, seeing their favourite stars in action, socializing etc., Most sports events attract both males and females, young and old, across different income and social strata. The exception would be 'niche' sports such as golf, billiards, squash etc.,
The value proposition offered by a sports event. To market a sports event successfully, a compelling value proposition is required. In the case of the Olympic Games in London, it is all about a diverse range of sports under one roof. (It is essentially a compelling aura). With the T-20 Cricket World Cup, it is about entertainment in a short period of time. (Fever pitch excitement and entertainment). In the case of rugby, it is all about brutal strength, masculinity and excitement. (The Haka of the All Blacks).
Any sports promoter would do well to develop an exciting value proposition, in order to market the sport to diverse stakeholders, with diverse interests.
The Marketing Mix of Sports Marketing. Product - Is the sports event itself and the augmentation around it. For example in T-20 cricket, it is the match, atmosphere, music, food and drinks etc.,
Price - For the spectators/fans, price would be the amount to be paid to witness the sports event. To the sponsors, it would be the royalty fees payable. To the advertisers, it would be the pull money that needs to be spent.
The pricing strategy will depend on the nature of the sport, location, duration and the importance. For example a sports event conducted once in four years can command a higher premium, than one conducted more frequently. Place - Refers to the location of the sports event, as well as the channels of distribution. For example internet distribution is used by fans to purchase tickets.
Offline distribution channels include locations to purchase tickets, make royalty/sponsorship fees etc., The location also includes the infrastructure, vital for the success of a sports event.
For example, the Olympic Games will be held in London this year.
London is one of the most prestigious capitals in the world and a city with a great pedigree and heritage.
Infrastructure in London will include airports, sea ports, road transportation, accommodation, practice facilities, venues to name a few.
Promotion - Any sports event needs to be promoted, to build up the 'hype'. For example, the 2012 Olympics in London was promoted as early as 2010. The greater the significance of the sports event, the earlier the promotions need to commence.
Bedsides mass media advertising, social media and online advertising is carried out, together with outdoor advertising.
Advertising is supported by PR activities such as media conferences, road shows, advertorials and sponsorships.
Personal selling is also used to convince sponsors and advertisers to back the sports event.
WOM (word-of-mouth) advertising and viral marketing (on-line word-of-mouse) are the best forms of communication for sports.
Things to watch out/guard against when marketing sports events. Any sports event involves a degree of risk, both financial and non-financial. Hence, contingency plans should be drawn out to mitigate probable risks. These include shortage of funds, delays in funding, external risks such as terrorism and natural disasters, weather related developments and infrastructure limitations.
When marketing sports, partners should be carefully selected. For example a dubious sponsor can ruin the reputation of the sports event itself.
Competitor actions both direct and indirect needs to be monitored. For example, many other sports events will compete against the T-20 cricket world cup.
Sports marketing is a global business, involving many opportunities and risks. If the principles of marketing are carefully practised, the opportunities can be exploited. Professional marketing practice is badly needed today, in the sports arena, than ever before.
Published by HT Syndication with permission from Daily News Sri Lanka.
For any query with respect to this article or any other content requirement, please contact Editor at htsyndication@hindustantimes.com
