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What is marketing


'a process by which individuals and groups obtain what they need and want through ... characteristics, intangibility, inseparability, variability and perishability ... – PowerPoint PPT presentation

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Title: What is marketing

What is marketing?
  • Marketing is about customers
  • How to find them
  • How to satisfy them
  • How to keep them

What is marketing?
  • According to Kotler (1994, p.6) marketing is
  • "a process by which individuals and groups obtain
    what they need and want through creating,
    offering and exchanging products and value with
    each offer".

Marketing as a process
  • Starts by identifying the needs of the customer
  • As customers have different wants, effective
    marketing will require targeting or segmenting
    the total market
  • The organisation has to decide what its
    objectives are and who are its best target
  • This generally requires research and planning

Marketing as a process
  • McCarthy (1981) suggests organisations must
    decide what to offer those targeted customers
  • This offer involves four key elements of the
    marketing mix
  • Product what to offer
  • Price how much to charge
  • Promotion how to tell people
  • Place how or where people can buy it
  • The four P's need to be examined with the
    customer's needs and values in mind

Marketing as a process
  • In recent years three other Ps have been added
    to the marketing mix
  • Physical evidence visual / tangible clues i.e.
    design and construction of a facility
  • Process convergence of the marketing
    operations (improved service quality)
  • People plan and deliver the service  

The sport marketing mix
  • Product
  • Price
  • Promotion
  • Place
  • Physical evidence
  • Process
  • People

The sport marketing mix
  • Product
  • Intangible
  • Simultaneously produced and consumed
  • Perishable
  • Inconsistent and unpredictable
  • Wide appeal

The sport marketing mix
  • Price
  • Can be difficult to asses
  • Price may not reflect the true costs
  • Indirect revenues
  • Non-profit vs. for profit

The sport marketing mix
  • Place
  • Ease of purchase
  • Right location
  • Accessibility crucial

The sport marketing mix
  • Promotion
  • Mass media impact
  • Visibility
  • Corporate association
  • Communicate benefits

The sport marketing mix
  • Physical evidence
  • Visual aspects
  • Design features
  • Construction
  • Facility quality
  • Aesthetic appeal

The sport marketing mix
  • Process
  • Marketing operations converging
  • Service quality
  • Reliance on staff training

The sport marketing mix
  • People
  • Plan and deliver service
  • Higher levels of education
  • Market intelligence
  • Staff at the coalface

Marketing as a philosophy
  • Whole organisations need to be aware of the
    fundamental elements of marketing and not only
    the marketing departments
  • If one part of an organisation is sloppy in its
    operations either internally or externally, this
    will impact on the total delivery of a business
    or service

Marketing as a philosophy
  • According to Drucker (1954) marketing is too
    important just to be left to the marketing
  • "It is the whole business seen from the viewpoint
    of the end-user, the customer"

Marketing as a philosophy
  • To achieve this, internal marketing is needed.
    The benefits of company policy need to be sold to
    those implementing them.

Marketing as relationship management
  • It is much easier to keep existing customers than
    to find others to replace them.
  • According to Gronoss (1989, p. 52) the definition
    of marketing needs to emphasise the importance of
    building relationships
  • Marketing is to establish, develop and
    commercialise long term customer relationships so
    that the objectives of the parties are met. This
    is done by a mutual exchange and keeping of

Marketing as relationship management
  • Quality customer relationships are developed
    through the staff who have direct contact with

Marketing and competitive advantage
  • To be successful in the face of all competition,
    the marketer must offer something distinctive
  • According to Porter (1980) there are basically
    three ways of gaining a competitive advantage
  • Lower pricing
  • Differentiation (offering a better product than
    your rivals)
  • Focus (serving particular groups or segments of
    the customers better than your competitors)

Marketing and competitive advantage
  • Brand image can also be added to the above list
  • Promotional methods and the way a service is
    presented visually can make a product or service
    seem distinctive even though there are few real
    differences from the competition

The marketing approach then
  • Is to see the business from the customer's
    viewpoint, and
  • To get the whole organisation working together to
    develop relationships with the customer based on

Marketing services
  • Trust can be even more critical in marketing
    services because there can be less tangible
    evidence for the customer to examine

Marketing services
  • The service is inseparable from the moment of
  • Customers pay fees on the promise of receiving an
  • Whether that promise is kept can depend on the
    quality of interaction with staff
  • A friendly welcome or a long wait in a queue can
    impact on the total perception of an organisation

Marketing services
  • The quality of the product can therefore be
    variable and is not entirely under the control of
    the marketer
  • An outdoor sporting event for example is very
    vulnerable to the weather

Marketing services
  • The difference is that services are even more
  • The tickets for today's event cannot be stored
    for another day

Marketing services
  • According to Kotler (1994) the above
    characteristics, intangibility, inseparability,
    variability and perishability are common to most
  • In the sport and leisure industry services are
    competing for the customer's spare time and
    disposable income

Marketing services
  • The skill in marketing services lies
  • In creating value
  • In packaging and promoting the experience so that
    the customer feels compelled to buy/join it, and
  • To make the customer interested in your product
    and not your competitors

  • What are some of the unique characteristics of
    marketing sport?

Unique characteristics of marketing sport
  • Consumer involvement
  • Unpredictability
  • Competition and cooperation
  • Sponsorship
  • Publicity
  • Distribution

Consumer involvement
  • Experts
  • Disadvantages?
  • Advantages?
  • Universal
  • Identification

  • Results are unpredictable
  • Attractive aspect of sport
  • However can be problematic for the sport marketer
  • Difficult to guarantee quality of contest
  • Contrast with the marketing of other services

  • Interpretation gratification varies
  • Follow the sport, club and contest
  • Challenge is customer satisfaction
  • Challenge is repeat business

Competition and cooperation
  • Unusual situation
  • Compete and enhance
  • Politics

  • Reliance
  • Easily gained
  • Strategic
  • Spin

  • Sports economy
  • Unique medium
  • Branding
  • Loyalty

  • Venues
  • Transport
  • Integrated component
  • Produced, consumed delivered
  • Distribution via broadcast technology

Importance of marketing in sport management
  • Key role
  • Administration to management (ACB WSC)
  • Increase possible revenue streams
  • Modification of product (20/20, Qantas Skins)
  • Competitive advantage through marketing
  • Normal acquisition strategies not a common option

Importance of marketing in sport management
  • Promote and nurture new markets
  • Customer is seen as central to ongoing
    organisational survival
  • Sustain growth through new revenue
  • Building quality relationships with key
    stakeholders e.g. Broadcasters, Radio, Print,
    Public, Government, International Sporting
    Federations, Athletes etc.

Importance of marketing in sport management
  • Ethical behaviour
  • Commercial pressures
  • Tension of generating revenue vs. organising sport

Sport marketing defined
  • Marketing of sport
  • Marketing through sport

Sport marketing defined
  • "Sport marketing is a social and managerial
    process by which the sport manager seeks to
    obtain what sporting organisations need and want
    through creating and exchanging products and
    value with others." (Shilbury et al, 2003, p. 12)

  • Think of sports or sporting organisations that
    market themselves well. What are some of the key
    factors behind this success?
  • Think of sports that have struggled to market
    themselves, what the key reasons for this
  • How important is tradition, culture, power,
    gender and the media when analysing the success
    or failure of some sports?
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