SPMT 5370 Exam 1 Study Guide (Ch 1-7) | Questions and Answers

SPMT 5370 Exam 1 Study Guide (Ch 1-7) | Questions and Answers Who was involved in the first form of Sport Marketing Honus Wagner Who was Honus Wagner First athlete that was paid to let his name be used on a product Globally, sport is a __________________ __________________ industry Multibillion Dollar What are the primary revenue sources - Media Rights - Gate Revenues - Sponsorships - Merchandising What is an example of media rights? NFL's broadcast deals with ESPN What is an example of gate revenues? MLB Franchise What is an example of sponsorships? Nike and Michael Jordan What is an example of merchandising? Hats, Apparel, and Equipment What are the two major components of Sport Marketing? Marketing of Sport Marketing through Sport ______________________________________: the event or product itself (games, tickets, merchandise, equipment) Marketing of Sport _____________________________________: using partnerships and promotions with sport properties to market non-sport products (DraftKings, beer companies, car dealerships) Marketing through Sport What are the key distinctions between sport consumers and sport consumption? Sponsors are sport consumers but do not engage in sport consumption. What are Sport Consumers? The people (fans, participants, viewers) What is Sport Consumption? The ways people engage with and through (Playing - Real or Virtual) (Watching - Live or On-TV) What is Marketing Myopia (In Sport)? Lack of foresight by marketers to meet the needs and wants of consumers Does Marketing Myopia focus on short-term or long-term growth? Short-Term True or False - Sport Marketers must establish a vision True In the long-term What are the 8 symptoms of Marketing Myopia? - Lack of research to support sales strategy - Belief that winning absolves all sins - Confusion between promotions and marketing - Ignorance of competition (inside & outside sport) - Poor quality research - Poor sales and service - Arrogance and Laziness - Failure to adapt What is a sport product? any bundle/combination of qualities, processes, and capabilities (goods, services, or ideas) that a sport consumer expects will deliver satisfaction What are the characteristics of the sport product? 1. Care benefits 2. Generic sport form 3. Specific sport form 4. Marketing mix What are care benefits? The reason why consumers engage Core = the basic needs / wants that sport satisfies for consumers) What is the generic sport form? What sport is at an essence Generic Form = universal characteristics that make something a sport What is specific sport form? Which sport is chosen Specific Form = the actual sport/activity a consumer selects to satisfy their needs and wants What is the marketing mix? How the sport product is delivered/marketed What are the 5 P's in the Marketing Mix? Product, Place, Promotion, Public Relations, Price What is product in the marketing mix? the actual sport event/experience and related goods and services What is place in the marketing mix? Where the sport is played/consumed What is promotion in the marketing mix? Where communication tools are used to inform and attract consumers What is public relations in the marketing mix? Managing brand image, community relations, and goodwill What is the price in the marketing mix? Cost to consumers Why is the sport product unique? - Intangible, ephemeral, experiential, and subjective - Strong personal and emotional identification - Produced and consumed simultaneously - Dependent on social facilitation - Inconsistent and unpredictable - A core product beyond marketers' control Why is sport marketing considered unique? - Many sport organizations simultaneously compete and cooperate - Consumers often consider themselves experts - Demand fluctuates widely - Sport has a universal appeal that pervades all elements of life Why is the financing of sport unique? - The price of the sport product itself is small compared to the total cost paid by the consumer - Indirect revenues (like TV rights) are often greater than direct operating revenues Why is sport promotion considered unique? - Widespread media exposure acts as a double-edged sword → it creates massive visibility but also increases scrutiny of athletes, teams, and organizations. - Media and sponsors tend to emphasize celebrity athletes. Why are marketing-minded leaders important in today's sports organizations? Marketing-minded leaders are needed because sports organizations face high competition for fans' attention, entertainment dollars, and media coverage. Leaders with marketing vision can create strategies to attract and retain fans while building sustainable revenue streams What are the two main components of a strong sport marketing management strategy? - Strategy → The big-picture concepts that guide direction (e.g., building brand identity, growing fan base, expanding into new markets) - Tactics → The specific details of the plan that put the strategy into action (e.g., social media campaigns, ticket promotions, sponsorship activations) What is the Marketing Planning Process (MPP) in sport? The MPP is the framework used to build a marketing plan. It must integrate with the organization's overall strategic vision and ensures all actions align with long-term goals What are the five steps of the Marketing Planning Process? 1. Develop a strategic vision, business vision, and values 2. Set goals and objectives 3. Craft a strategy to achieve objectives 4. Align resources to implement and execute the strategy 5. Evaluate performance and adjust to maintain competitive advantage How do the 5 Ps of sport marketing interact when developing a ticket sales strategy? The 5 Ps work together to create value for fans. For example, an NBA team may: - Product: Emphasize exciting star players - Price: Offer family discount packages - Promotion: Run social media campaigns and giveaways - Place: Make tickets easy to buy online and via mobile apps - Public Relations: Highlight community involvement to strengthen trust and loyalty What is the Boston Consulting Group (BCG) Matrix in sport marketing? A strategic tool that classifies products or business units into four categories—Cash Cows, Stars, Dogs, and Question Marks—based on market growth and market share What is the Growth Strategy Matrix? A framework that shows how organizations can grow by combining existing or new products with existing or new markets What are the four growth strategies in the Growth Strategy Matrix? Market Development Diversification Market Penetration Product Development What is Market Penetration in the Growth Strategy Matrix? uses existing products in existing markets to increase market share What is Product Development in the Growth Strategy Matrix? introduces new products to existing markets What is Market Development in the Growth Strategy Matrix? takes existing products into new markets What is Diversification in the Growth Strategy Matrix? entering new markets with new products What are the stages of the Loyalty Ladder (from lowest to highest loyalty)? (Lowest to Highest) - Prospect - Customer - Client - Supporter - Advocate What are Porter's Five Forces in sport marketing? - Threat of new entrants - Bargaining power of suppliers - (CENTER) Rivalry among existing competitors - Threat of substitute products - Bargaining power of buyers What is the Product Life Cycle (PLC)? The stages a product goes through from introduction to decline, showing how sales and marketing strategies change over time What is the Segment-Target-Position Model process? - Segment → Divide customers into groups based on characteristics (age, income, lifestyle, fan type) - Target → Select the segment to focus on - Position → Align the 5 Ps (Product, Price, Promotion, Place, Public Relations) to satisfy the chosen segment How is a Unique Selling Proposition (USP) developed? - Customer Wants → What the target audience values or desires - Your Strength → What your organization does better than others - Competitor Strength → What competitors do well that could attract the same audience Who are sport consumers? Demographics → Age, sex, income Geographics → Location Psychographics → Attitudes, opinions, lifestyles Where, when, and how have consumers been exposed to a sport product? Consider all points of contact, including social media, advertising, promotions, or live events How and why did consumers become involved with the product? Identify motivations for engagement Why have consumers remained loyal, and why might some lose commitment? - Loyalty Reasons: Emotional connection, tradition, consistent positive experiences - Loss of Commitment: Poor team performance, negative experiences, competing entertainment options What is the Black Box Model in sport marketing? A framework that explains how consumers respond to marketing stimuli based on their internal characteristics and decision-making processes What are the main components of the Black Box Model? - External Factors Stimuli - Internal Factors Stimuli (Buyer's Mind) - Responses What are the external factors (stimuli) in the Black Box Model? - Marketing Mix (5 Ps): Product, Price, Place, Promotion, Public Relations - Environmental Factors: Economic, Technological, Political, Cultural, Demographic, Situational What are the internal factors (consumer characteristics) in the Black Box Model? Personal factors that affect how consumers process stimuli, including: - Beliefs and attitudes - Values and knowledge - Motives and perspectives - Lifestyle What is the Black Box in the Black Box Model? The buyer's mind where internal factors process external stimuli, leading to decisions What are the possible responses in the Black Box Model? The actions or behaviors resulting from processing stimuli, including: - Purchases: Product, brand, source, amount, method of payment - No purchase - Post-purchase evaluation What is the consumer decision-making process in the Black Box Model? The steps a consumer goes through before, during, and after purchase: - Problem recognition - Information search - Alternative evaluation - Purchase decision - Post-purchase evaluation What are the ABCs of Sport Involvement? Affective, Behavioral, Cognitive In ABCs of Sport Involvement, what is affective involvement? Emotional connection to a sport, team, or athlete In ABCs of Sport Involvement, what is behavioral involvement? Actions and behaviors related to sport In ABCs of Sport Involvement, what is cognitive involvement? Mental engagement or knowledge about a sport What is syndicated data in sport marketing? Data that have been collected, organized, and repackaged by research companies for general use by multiple organizations What are common sources of syndicated data? - US Census → Population statistics, age, income, geographic info - Demographic profiling → Data from research companies on consumer segments - Audience measurement → Nielsen or Arbitron tracking TV/radio viewership - Broadcast exposure → Joyce Julius or Repucom tracking sponsorship visibility What is demographic profiling in sport marketing? The analysis of consumer characteristics (age, sex, income, location, lifestyle) to better understand and target audiences What questions can demographic profiling answer? What groups of users visit the website? Which groups provide the most income? Where content should be placed to increase sales? How ads can be better targeted?