The effect of sports marketing strategies on spectator’s purchase decision the case of football

..

ChungYuan Chritian University
Department of IMBA
Master Degree Dissertation

The Effect of Sports Marketing Strategies on
Spectator’s Purchase Decision: The Case of Football
運動行銷策略對於觀眾購買決策的影響：以足球為例

指導教授: 李正文博士
研 究 生: 段友慶 (Doan Huu Khanh)

中華民國 107 年 1


ACKNOWLEDGEMENT
I would like to say thanks a million for Dr Cheng-Wen Lee for her guidance and support
me during this time. I also want to say a sincerely thank Dr 林震岩 and Dr 林仲廉 for their
time and their comment to build my final dissertation better. There are no words to show my
appreciation to my department: College of Business, especially Ms April, she helped me a lot.
Finally, I am thankful to my friend, Lehang Vu. She helped me set up and solved any computer
technique for me. Thank you from the bottom of my heart for everything.

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摘要
本研究從體育營銷角度，特別是從足球市場營銷的角度出發，從兩個角度分別從
運動商業角度（使用體育營銷的商家）和非體育商業（贊助商）角度（使用體育營銷
的商家）以表明為什麼今天的企業認為體育營銷如此重要。

本研究的目的在於確定營銷在體育業務和非體育業務足球領域的作用，並著眼於
在足球領域有效和成功進行的營銷策略。更具體地說，這項研究試圖調查一些突出的
策略對觀眾的購買決定的影響。
論文的理論來源於包括書籍和文章刊物在內的各種贊助文獻。實證研究是通過
對觀眾的調查研究和問卷調查進行的。問卷是基於本研究中使用的理論和關於足球場
營銷實施如何影響贊助商的表現和客戶行為的信息，特別是觀眾。
研究結果可能表明，足球場營銷策略的實施是幫助體育企業存在，提高和創造
競爭優勢的關鍵之一。對於贊助商來說，他們不太需要不必要地冒險，因為形象好，
觀眾範圍廣，所以願意贊助不同的目標板塊。此外，這項研究也對體育事業和足球領
域的潛在讚助商具有理論和實踐意義。這項研究可能會大大有助於對足球業務，贊助
和關係營銷的現有知識。

關鍵詞：體育營銷，體育經營，非體育經營，贊助商，觀眾，消費者行為，消
費者購買決策。

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Abstract
This research looks at sport marketing and in particular marketing in football from two
perspectives: The sport business perspective (the businesses who use marketing of sport) and
the non-sport business (sponsor) perspective (the businesses who use marketing through sport)
in order to show that why businesses today consider sports marketing so important.
The purpose of this research is determined the effect of marketing in football field of
the sport business and the non-sport business and focus on their marketing strategies that they
perform effectively and successfully in football field. More specifically, the study attempted to
investigate the effects of some stand out strategies on spectator’s purchase decisions.
The theory of the thesis was collected from various sponsorship literatures that included
both books and article journals. The empirical study was conducted by survey research and
questionaire for the spectators. Questionnaires were based on the theory used in this study and

the information on the outcome how the implementation of marketing in football field affect
sponsor’s performance and customer’s behavior(s), in particular spectators.
The findings will probably show that the implementation of marketing strategies in
football field is one of the most crucial way to help sport businesses exist, improve and create
their competitive advantages. Toward the sponsor, they are not too keen on taking risks
unnecessarily and are willing to sponsor various target segments because of the good image and
a wider audience range. In additions, this study also has both theoretical and practical
implications for sport business and prospective sponsors in the field of football. The study will
probably contribute significantly to existing knowledge about the football business, sponsorship
and relationship marketing.

Keywords: sport marketing, sport business, non-sport business, sponsor,
spectator, consumer’s behavior(s), consumer’s purchase decision.

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Table of content
ACKNOWLEDGEMENT ....................................................................................................................... i

摘要 ........................................................................................................................................................ ii
Abstract ................................................................................................................................................ iii
Table of content ......................................................................................................................................iv
List of table ........................................................................................................................................... vii
Chapter 1: Introduction........................................................................................................................ 1
1.1 Background research: ................................................................................................................... 1
1.1.1 Marketing of sport ..................................................................................................................... 1
1.1.2 Marketing through sport:........................................................................................................... 2
1.1.3 Understanding Spectator Behavior: .......................................................................................... 2
1.1.3.1 Definition ............................................................................................................................... 2

1.1.3.2 Marketing Implication............................................................................................................ 3
1.2 Problem Statement: ...................................................................................................................... 4
1.3 Research question ........................................................................................................................ 4
1.4 Significance of this study ............................................................................................................. 4
Chapter 2: Literatures Review: ........................................................................................................... 5
2.1. Sport marketing ........................................................................................................................... 5
2.2 Football Marketing:...................................................................................................................... 6
2.2.1 Sport business (who do marketing of sport).............................................................................. 6
2.2.2 Non-sport business (who do marketing through sport): ............................................................ 7
2.4 Sport Marketing Strategy - Marketing Mix ............................................................................... 12
2.4.1 Sport Product: ......................................................................................................................... 13
2.4.2 Sport Pricing: .......................................................................................................................... 14
2.4.3 Sport Place .............................................................................................................................. 14
2.4.4 Sport Promotion ...................................................................................................................... 15
2.2.5 Typical example - The marketing mix of Manchester United Football Club ......................... 16
Chapter 3: Data and Methodology: ................................................................................................... 18
3.1 Research Hypotheses and Research Model:............................................................................... 18
3.2 Data Size and Sampling: ............................................................................................................ 20
3.3. Questionnaire and data collection ............................................................................................. 21
3.4. Control Variables ...................................................................................................................... 21
Chapter 4: Results ............................................................................................................................... 22
4.1. Statistical data and results ......................................................................................................... 22

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4.1.1 Frequencies Data ..................................................................................................................... 22
4.1.2. Reliability& Validity Test ...................................................................................................... 24
4.1.2.1. Reliability ............................................................................................................................ 24
4.1.2.2. Validity Test ........................................................................................................................ 24

4.1.3. Correlation Analysis............................................................................................................... 26
4.2. Regression Analysis .................................................................................................................. 28
4.2.1. Hypothesis Test ...................................................................................................................... 28
Chapter 5: Discussion ......................................................................................................................... 34
5.1. Discussion and Limitation......................................................................................................... 34
5.1.1. Discussion .............................................................................................................................. 34
5.1.2. Limitations and further research ............................................................................................ 34
5.2. Implication relating to sport and non-sport business ................................................................ 34
5.3. Suggestions ............................................................................................................................... 35
Reference .............................................................................................................................................. 36
Appendix A: Survey Questionnaire ..................................................................................................... 38

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List of Figure

Figure 2. 1 Evolution of Real Madrid Revenue ..............................................................7
Figure 2. 2 The Sport Marketing Framework ................................................................11
Figure 2. 3 Marketing Mix Model .................................................................................13
Figure 2. 4 Sportscape Model ........................................................................................15
Figure 3. 1 The Research Framework ...........................................................................18

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List of table

Table 4. 1 Demographic Data ........................................................................................... 22
Table 4. 2 Showed the reliability of the variables ........................................................... 24

Table 4.3 Showed the Validity of the variables .............................................................. 25
Table 4. 3 Mean, Standard Deviation and Correlation Coefficient of Variable ............ 26
Table 4. 5 Linear Regression of Model 2 ........................................................................ 30
Table 4. 6 Linear Regression of Model 3 ........................................................................ 31
Table 4. 7 Linear Regression of Model 4 ........................................................................ 32

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Chapter 1: Introduction
1.1 Background research:
There is a hobby or free time activity for most people, they call “sport”. Nowadays, it is
also strongly considered that sport is also a business (Chadwick, 2008). This study was
emphasized on the football industry – a king sport industry. It now is an international business;
international professional competitions are held, players are transferred all over the world and
the Europa League finals and FIFA World Cup finals are top media events with television
broadcasting all over the world. Variety of people also suppose that football is the most popular
sport globally (Richelieu, Lopez & Desbordes, 2008). And despite of the economic unstable
recently there has been a steadily increase in European football sales, indicating the
uninterrupted loyalty of the supporters and the undeniable attraction of football to the sponsors
and broadcasters. That proves Sport Marketing is probably one of the good solution for sport
business as well as non-sport business in any circumstance.
Aaron Smith (2012) argued that: Sport marketing is the application of marketing concepts
to sport products and services, and the marketing of non-sport products through an association
to sport. There are two main characteristics of Sport marketing. Firstly, it is the implementation
of common marketing methods for sports-related products and services. Secondly, doing the
marketing of other consumer and industrial products or services through sport. As usual,
fulfilling the needs and wants of consumers is usually a main task of marketing, not except sport
marketing. Every business always focusses on their consumer behavior and satisfaction in order
to create new Marketing strategies to affect them. It achieves this by supplying sport services

and sport-related products to consumers. However, a strengthen aspect that sport marketing is
different with conventional marketing is it has the ability to encourage the consumption of nonsport products and services by association. It is important to understand that sport marketing
means the marketing of sport as well as the use of sport as a tool to market other products and
services.
1.1.1 Marketing of sport
Aaron Smith (2012) mentioned in his book that Sport marketing including the marketing
of sport and marketing through sport. The former one directly to sport consumers could include
sporting equipment (In football, it is football shoes, shin guards, ball, socks, jersey, etc.);
professional competitions (In football, it is the matches of Divisions in the world, final UEFA
Champion League, Europe League, etc.); sport events (In football, it is World Cup,
CONCACAF, EURO, CAN, etc.). And another simple example is the team advertising,
designing a publicity stunt to promote an athlete, selling season tickets, and developing licensed
apparel for sale.

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With regard to football field, it is the main strategy of sport businesses (sport organization)
such as:
- The providing sport products business: Adidas, Puma, Nike, Under Amor, New
Balance, etc.
- The professional football club: Manchester United (England), Borussia Dortmund
(Germany), Juventus (Italia), etc.
1.1.2 Marketing through sport:
In contrast, marketing through sport happens when a non-sport product is promoted and
sold through an connection to sport. Some examples could include setting up the advertising
sign board on the pitch, a celebrity athlete endorsing for a brand, a corporation sponsoring a
sport event, or even an sport event could be witnessed a monopoly right of a company to provide
their products for all. (Aaron Smith – 2012)
Concerning football field, the non-sport business (the sponsors) who do the marketing

through sport such as: Car brand Chevrolet is a kit sponsor of Manchester United football club,
Beer brand Budweiser is the golden sponsor of World Cup Korea 2002, Cristiano Ronaldo –
the most famous player in the world is an endorsement of Coca-Cola, KFC, Tag Heuer, Konami,
etc.
1.1.3 Understanding Spectator Behavior:
1.1.3.1 Definition
Aaron Smith – 2012 said that: There are variety of sport consumer definition, most of
which swing around identifying different kinds of sport products or services. However, before
getting this definition, the important point to make is clarify a difference between sport
consumers and sport stakeholders. When a person buys a sport or sport-related product or
service directly (like using cash to buy a ticket to a game) or indirect way (like purchasing a
television or upgrading internet package in order to enjoy sport as an entertainment solution).
In the other hand a stakeholder is an individual or group who have an interest in a sport product
or service. For example, the government and corporate sponsors are stakeholders in that they
have an interest in sport products and services, but they are not consumers. Sport consumers
are the end users. Sport consumers may be spectators, participants, and business sponsors.
However, in this study we only discuss about one kind of consumers that is spectators and
their behavior. Figure 1.1 showed all aspect of them.

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Figure 1 1 Spectator Categories

Based on the figure 1.1, marketers can easily to classify and target their consumer
appropriate with their products, their strategies, their capability as well. For instance, the sport
business (Nike, Puma, Adidas, professional football club, etc.) should focus on Passionate
partisan, Reclusive partisan or even Champ follower. The non-sport business like drink or fast
food brand can concentrate on Aficionado and Theatergoer.
1.1.3.2 Marketing Implication

Sport marketer speaking, these categories highlight the different segments of the sport
fan market. Especially, it consolidates the importance of supporting the passionate partisan and
the aficionado. However, the obviously point here is the motivations of partisans and
aficionados are kind of different. The theatregoer, champ follower and reclusive partisan also
demonstrate their potential for increased attendances. In each case, to generate greater
frequency of attendance, the provision of suitable incentives may be used more. The theatregoer
would be attracted to comfortable seating arrangements, promotion of ticket, event before the
match, the readily food and drink, and closing contest, whereas the reclusive partisan and champ

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followers would concentrate on the games that their teams had a good opportunity of winning
and were in the championship race but their loyalty is unstable.
In case of passionate partisans, it would be essential to have many stunning words to
describe their loyalty, their emotion depend on their team performance, they always beside their
team in any circumstance. A big gap between them and champ as well as reclusive partisans
mean the strategies apply for each are also different.
As usual, every marketer is met with the risks and hard task, not excluding sport
marketer. It is ensuring that the sport product provides for good watching conditions, a balanced
competition, uncertainty of game and seasonal outcome, and the loyalty depend on what kind
of spectator are consumer. While a sport competition changes the structure of (like new
recruiting laws, the relocation of teams or the merger of clubs) are likely to reduce the loyalty
of supporters, it must be considered against the attraction that such changes have for the other
spectator categories, particularly the champ as well as reclusive partisans.
1.2

Problem Statement:
The general problem was to determine How effectiveness the implementation marketing

strategies in football impact on spectator’s behavior(s) nowadays and how potential football
marketing to sport business and non-sport business in the future.
1.3

Research question
- How do the implementation football marketing strategies have positive effect on

spectator’s behavior, specifically in spectator’s purchase decision?
- Why do some non-sport businesses can get impressive achievement of using marketing
through sport?
- How potential is sport marketing, in particular football marketing in the future?
1.4

Significance of this study
Sport is more and more advanced mean it will probably also become a potential

economic sector, especially in the football industry. Nowadays, not only sports businesses but
non-sports businesses also want to concentrate on investing huge amounts of money on football
marketing because of its effectiveness. This study indicates an overall view about positive effect
of marketing strategies in football and the benefits that it brings to businesses. Further research
needs to be conducted in order to better understand the belief, and other factors influencing on
spectator’s purchase decision. Since it further reinforces the success of businesses that have
been implementing this kind of marketing and inspire the entrepreneurs learn and market
through football.

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Chapter 2: Literatures Review:
This section introduces the literature on sport marketing and on football as well as

sponsorship, sport product, non-sport product, consumer’s behavior, in particular spectator case
and finally summarize what research has been done in the area of (professional) football
marketing.
2.1. Sport marketing
The more sport improves, the more effective and diversified in sport marketing. It’s
undeniable that sport nowadays is a reservoir of potential benefits because of its popular,
especially football. We also have numerous books and articles research about this. With the
2008 Summer Olympics fast approaching, Du Wei, the Vice Chairman of the Institute of
Beijing Olympic Economy, recently stated in comments directed to Chinese companies that
"sports marketing has become one of the most effective of all marketing strategies"
(Anonymous, 2006).
Fullerton and Merz highlight the work of Mullin, Hardy, and Sutton (2000) who define
sports marketing as "consisting of all activities designed to meet the needs and wants of sports
consumers through exchange processes." There are two major directions that has developed of
Sport marketing. The first one is determined as the marketing of sport products and services
directly to consumers of sport, while the second element considers to the marketing of other
products or services through the usage of sports promotions. There were three basic principles
of sports marketing that founded by them: the nature of its concentration, the nature of the
product being marketed (whether it is sports-related or non-sports), and the level of integration
of sports within marketing the strategy, which can revolve around traditional techniques or
collaboration with the sponsor. For example, the British soccer star David Beckham as having
a ‘phenomenal' influence in this regard. He played a crucial role in the success of many famous
brands in their Marketing plan such as:
- About the sport business (who has been selling the sport products): Adidas
- About the non-sport business (who has been selling the products through sport): Pepsi,
Castrol, Breitling Swiss Watches, H&M, Samsung, Armani..v..v..
Obviously, the celebrities’ endorsement strategy always is the one of best choices of
Marketers.
David Shilbury Shayne Quick and Hans Westerbeek

(2009)

released

the

book

“Strategic Sport Marketing” They integrating consumer interest in sports with traditional
marketing theory, this book presents a strategic sports marketing model intended to meet
diverse markets of participants, sponsors, and spectators. Detailed examples including case
studies and opinion writings from international sports and media illustrate the unique features

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of sports marketing. It triggers the sports administrators will benefit from the discussions of
sponsorship and the role of services theory.
2.2 Football Marketing:
2.2.1 Sport business (who do marketing of sport)
We have been having a bunch of people who crazy in football, a good potential market
not only for sport business but it also brings a variety of opportunities for non-sport business to
implement Marketing plan successfully. Football is a multi-billion-dollars global industry
driven by the marketing of its products. Consumer retention targets place an increased emphasis
on organizations to develop their relationships with fans and consumers. The emergence of
digital platforms has provided football organizations with the tools to reach a range of
stakeholders on a local and global scale. Consequently, elite and lower league clubs require
increased expertise to apply online and offline tools such as websites, social media, advertising
and direct mail to increase their brand communications. When they did it, the other sport
business (e.g. Nike, Adidas, Kappa, Puma, Under Amor…) or non-sport business automatically

make a collaboration. As can be seen from the fact, implementation football Marketing can
create a big profit for both. A number of studies also support this idea. Forcadell noted about
the success of Real Madrid FC - the best football club in Spain at this time. Florentino Pérez,
the Real Madrid’s President did the restructuring and professionalization of the organization in
the three management areas—sporting, marketing, and corporate-economic-financial. He not
only wants to create a best football club in the world but he also wants to make Real Madrid
become a successful sport organization.
With regard to the club’s marketing strategy, Promoting the exploitation of its brand is
the Real Madrid’s priority task, transcending its supporters into customers of its products and
services. They highlight that the brand is “its best asset, and so it has become the club’s best
guarantee for the future.” They got into the emerging soccer markets such as: south-east Asia
(China, Japan, and South Korea), the Arab world, and India. Soccer players’ image rights in the
big advertising contract and then signing of strategic alliances to collaborate with leading firms
in different sectors are some of their direction with football marketing strategies. This create
for them huge opportunities and power via collaboration with strong brand around the world.
Their success appeared in this following result:

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Figure 2. 1 Evolution of Real Madrid Revenue

As can be seen from figure 2.1, Real Madrid is truly a successful sport organization in the world.
Overall, this club went up gradually from the season 2000/01 to 2004/05. Indeed, there is a
slightly raising in the first period of time. Later on, from season 2001/02 to 2004/05 witnessed
a dramatically increase in all three aspects: Match day, Broadcasting, Commercial. This proved
a correct path is waiting for Real Madrid and President Floretino Perez.
2.2.2 Non-sport business (who do marketing through sport):
Non-sport business (or Sponsor) looks sports sponsorship is a marketing tool that is used
by companies to reach widely and deeply to the spectators as well as lifting their own

competition capability and then they can create a higher profit margin. Due to this, they can
easily to approach the specific target audience alongside potential customers who are reached
by penetrating through quite effectively in the promotional mix and as such, is a significant
method being used by many organizations.
Concerning this aspect, there are a number of books and articles that research it deeply.
With their own reputation, Manchester United football club attract more and more new
global sponsors every year, General Motors (Chevrolet) is not exception. This car brand signed
an amazing contract with Manchester United football club, worth over $559m over a Seven-

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Year; although their symbol was not appearing on the shirt until the 2014/2015 season it still
delivered around £12m in that year (Deloitte 2014). In addition, a big name of logistic in the
world also signed a contract to become one of the big sponsor for this club. Due to Manchester
United’s name, DHL became more competitive in their own market, expand more customer
around the world. By sticking their own name in Manchester club’s training kit, they are
automatically known by more people.
The other perfect example of the entrepreneurial potential in sport and the unique
strategies and activities undertaken by the Red Bull. They made the difference, they have
seriously made one of the most successful revolution in marketing through sport, in particular
football. They bought the football club or established a new club and created many miracles. In
2005 Red Bull made a decision was taking over SV Casino Salzburg and changed the club’s
name to FC Red Bull Salzburg, also changing the club colors and the logo, that nowadays
becoming a logo similar with the logo of the Red Bull brand. Red Bull continued to took over
Metro Stars football club in the MLS, United State in 2006, and once again completely
rebranding the franchise, changing the name (now the New York Red Bulls), team colours and
logo which once again remind everyone about Red Bull’s, totally unmistakable. Surprisingly,
Both Salzburg and New York right now are standing on top in the leagues that they are joining,
Red Bull also got an easily to approached more customer.

In 2009 Red Bull bought the SSV Markranstadt, an unnamed fifth Division team in
Leipzig in 2009. They changed the name of the club to RB Leipzig (Rasen Ball sport Leipzig),
because German football regulations do not have the name of the sponsor in front of the club
name. Red Bull's first goal was to bring the club up to the Bundesliga level in eight years, and
now they have achieved it in just over six years.
When it was first stage, the club was criticized only for Red Bull marketing. But now, RB
Leipzig is regarded as the beacon of East German football. Right in the first season, 2009-2010,
RB Leipzig dominated the league and won the fourth place. In the 2012-2013 season, they won
the Division Four championship without any defeat, thus reaching third Division. The following
season they finished second in the Bundesliga and became the first team in the league to qualify
for the promotion after only one season. It is not difficult to understand that throughout Germany,
no one can stand RB Leipzig, except for their fans. Many protests have taken place, but it seems
that Leipzig has gradually confirmed that they are the victors. As long as the football order in
Germany is not reversed, the situation is acceptable, but with Leipzig being able to use the money
to advance to the top, the Bundesliga's long-standing values may be threatened.
Arguably, Red Bull’s involvement within football clubs has, on occasion, caused rifts
between fans and teams, but their investment has been second to none. In both football and

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across all the sports Red Bull has invested in, they’ve presented teams with an investment model
that presents both support and growth.
Gorse, Chadwick and Burton, (2010) also assessed Red Bull’s self-sponsorship,
marketing and branded content have helped the Austrian fizzy drink company become
something much larger than a drink manufacturer. Ongoing with those steps, Red Bull still
rapidly grow later on without doubt.
Besides, what a mistake if this aspect is not mentioned. When sponsoring a major global
sporting event, the amount of money that is spent to have their companies name associated at
the sporting event is from £8million to £120million (Wilson 2014). Football is extremely

potential tool for every company; a billion project waiting for investors every four years with
FIFA World Cup – a biggest football event in the world or European Champions League Final
every year, such a huge opportunity to marketing their image and create profit (Colantuoni
2013).
Indeed, Dea Ryun Chang (2011) mentioned the sponsorship revenue earned by the 2002
FIFA World Cup was about $676 million. Surprisingly, this figure only came from official
sponsorship; it does not include the marketing and the sales generated from the unofficial with
the big event by non-sponsors. The notable official sponsors in Korea were KT (Korea
Telecom), Coca-Cola, Hyundai, POSCO and Adidas. Some note-worthy unofficial sponsors
were SK Telecom, Nike and Samsung. Let take a look with one stand out example, Korea
Telecom (KT), which is one of the largest telephone companies in Asia and the mother company
of KTF, a mobile communication service provider, they seemed it as an official stage to confirm
their position and name in the communication and information technology industry. It coined
the campaign slogan ‘e-World Cup’ to promote its dominant presence in broadband networks,
its pioneering CDMA mobile service track record and its expansion into digital HDTV. What
a irrefutable, they got a success with their plan.
Due to the huge benefit that enterprises can got in that event, many unofficial sponsor
implemented a “back door” strategies – ambush marketing, this is also a big risk that the official
company must face. If we can count margin profit from them, the number does not stop at $676.
Sport Marketing Framework (SMF)
“Another significant difference in the sports market is that sports products often evoke
emotion, togetherness, and individual loyalty of consumers toward the sport. That make the
value of sports goods / services is no longer appropriate with its real value (because of the
change, the increase in mental value); This is also rare in other markets. So in order to be
successful in sports marketing, especially football marketing, not only do you have to master
the basic principles and stages of marketing, you need to understand the sports environment as

9

well as the specific situations that sport can bring for sports consumers. Thus, getting and
applying the SMF is one the most important work to any sport business and non-sport business”
- The author Smith, 2012 has reviewed and explained it.
Sports Marketing structure is expressed through model diagram SMF (Figure 2.3)
Overall, the SMF includes the following 4 stages:
-

Identify Sport Marketing Opportunities

-

Develop a Sport Marketing Strategy

-

Plan the Sport Marketing Mix

-

Implement and Control the Sport Marketing Strategy

Stage 1 involves three parts. Firstly, the enterprises should perform the classical analysis
about external marketplace (such as competitors’ activities, technology, legal restrictions and
the economic climate), the internal environment of a sport organization (such as its strengths
and weaknesses) as well. Its mission, vision, objectives, performance measures and
stakeholders are going to analyze is the second part. Third is the analysis of the market and its
consumers via market research. Once stage 1 is completed, the assembled information is used
to undertake stage 2 of the sport marketing framework—Develop a Sport Marketing Strategy’.
Based on the analyses built in stage 1, stage 2 consider creating the key decisions
about the strategic direction a sport marketing program. What is crucial here is to establish

the strategy within the boundaries of both objectives and performance measures that is a
key to evaluate the success of the marketing program. Stage 2 also involves identifying the
specific tactics that will be used during the strategy, such as how to create stand out product
(differentiate) the sport product or classifying customer (segmentation), and what marketing
mix decisions (this is a term covering the elements of product, pricing strategies,
promotional strategies and distribution systems) will be employed to implement the
strategy.

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Figure 2. 2 The Sport Marketing Framework

In stage 3 of the process, the sport marketing mix is documented in detail.
The 'marketing mix' (also known as the 4Ps) is a foundation concept in marketing. The
marketing mix has been defined as the "set of marketing tools that the firm uses to pursue its
marketing objectives in the target market". Thus the marketing mix refers to four broad levels
of marketing decision, namely: product, price, promotion, and place. Yet in the sports
marketing field, in addition to the 4Ps, the sports marketing plan is supplemented by two other
sponsorships and services. Hence, there are 6 elements to implement Sports Marketing Mix
plans.
At this stage, the marketing management department must carry out a variety of tasks
according to the process and requirements included:
- Produce sports goods / services that make standing out the value of sport, distinguish
sports goods and services and non-sport goods / services, improve their quality.
- Determine the cost of services and goods and pricing for the consumer market.

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- Research consumption and distribution channels, through it to communicate with new
members.
- Promote through the different form such as: media, setting banner in the pitch, etc.,
consider the impact of the consumer.
- Finally, stage 4 involves putting the plan into action and making sure it remains on
track. The process includes:
- Establish the marketing management apparatus with obviously organizational
structure, functions and tasks for each department and each employee to carry out marketing
activities.
- Examine, evaluate and regulate sports marketing activities in the sports industry.

Marketers need to develop a system of assessment indicators, identify key assessment methods
and procedures for implementing activities, and then propose marketing adjustments.
Beside, sport marketing in this period is also concerned about the sponsorship factors
and services that are indispensable steps.
With figure 2.2, every sport marketer can clearly come up with the creative and suitable
strategies in the specific environment of the football business. This is the good basic theory for
marketer.
2.4 Sport Marketing Strategy - Marketing Mix
Sport marketing strategy refers to the conceptualization of a plan (strategic planning)
and the specification of the steps for implementing it (operational planning). The basic concept
employed in this plan involve several components. They would include the price, the place, the
type of promotion, and their relationship to the public. This is commonly related to as a
marketing mix.
Indeed, the concept of marketing mix indicates that in the market, some variables are
closely related. This means that a variable must be considered along with other controllable
marketing variables and all elements of the marketing mix need to be harmonized to increase
the likelihood of success (Kotler, 1994). Therefore, a broad mix of elements associated with a
market offering is what marketer need to consider. We start with “4Ps” to Marketing, introduced
by McCarthy (1960): Product, Price, Place and Promotion. In Sport Marketing, after a sport

organization has divided the total market into sub-groups, chosen a segment and identified a
positioning strategy for that segment, they must then develop a Marketing Mix for each
segment.

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Figure 2. 3 Marketing Mix Model

Generally speaking, for each marketer, Marketing Mix Model as a basic tool that
they should understand and use it competently, especially for football marketer, they must
face with may obstacle that different with other fields. For example: the unpredictab le of
the match will probably restrict them promote the match like: “Please, come and watch the
match today because of it attraction”, they cannot know how the player play today, they
also cannot know the tactic of the club today, etc... So with deeply comprehensive about
Marketing Mix, football Marketer can easily to solve those problems.
2.4.1 Sport Product:
Applied to Sport Marketing Mihai (2013) mentioned that the centerpiece of a
marketing mix is the product. A product is anything that satisfies a need or wish and is
acquired to do so. In sport marketing aspect, there are two important concepts that sport
marketers should be considered. The first is the core product, defined as the actual game or
something related to it, over which the sport marketer has no control. The sport marketer
must be very careful not to over-promise in terms of how good the game will be or how
well specific athletes may perform.
The second concept is the importance of product extensions to the overall marketing
effort. It is easy to think of the word product as referring to a physical, manufactured item. The
term product can also refer to services, people, places, ideas and the benefits that a sport
organization offers consumers. However, in any circumstance, company must make sure they
did good products for customer such as design, packaging and even merchandise. Quality
products must ensure in high level.

Packaging the sport product is one of the most important element with sport marketer
to encourage selected target audiences to purchase it. Because consumers differ, marketers must
present the product in different ways. Packaging the core product of sport (the game or event

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itself), however, involves communicating the expectations of the product and providing
information before the point of purchase.
2.4.2 Sport Pricing:
The price of a product represents what a consumer relinquishes in exchange for a
sporting good or service. the value of a product is reflected a matching price. Price not only
remind about financial terms, but it also includes other things such as: expectation, waiting time
(e.g. waiting an authentic kit from the club that we cheer for) or social costs (e.g. being in an
aerobics class with others instead of a one-on-one instruction). Price is the factor that is most
visible and impressive, especially in sale off season. Creating a pricing strategy is integral to
the success of a sports organization because it has a significant impact on the success of the
overall sports marketing plan. In addition, prices are directly affected by external factors
including government policy, economic and political.
Determining price is the top challenge for the sport marketer. Due to complex and
unpredictable characteristic, a correctly sport pricing strategies come out is a key f or the
success of the marketing plan. Therefore, more reducing price for each kind of spectators,
more opportunities to succeed. For example, sport organizations can create a membership
card for spectator who is passionate partisan and agree to buy ticket for whole season. Sport
organizations may also change prices according to the market environment (e.g., lowering
prices during a recession or economic downturn) or the team’s performance (e.g., increasing
prices as a team’s performance dramatically improves).
In the final analysis, sport marketers must determine how the value of products affect
consumers, compared with all competing products and use that information to set an appropriate
price.

2.4.3 Sport Place
Sport Place or Sport Distribution is the crucial process of getting the sport product to
the consumer. Choosing a favorable place to distribute is a key to run an effective distribution
strategy, the marketer should have their own right place. The right place means: where the
consumer is, shops, or will travel. For instance: For football product, Place should be around
stadium or arena, the point of origin for distributing the product (ticket sales at the stadium,
sales by a toll-free telephone number, or internet), the geographic location of the target markets
(global, national, regional, state, communities, cities). Those factors related to the location of
the sport can have a positive or negative impact on the marketing plan. To ensure efficiency,
sports facilities should be easily accessible (highway systems, parking lots, walkways, ramps);
good physical appearance (well maintained and well painted); and have some safe and pleasant
surroundings (adequate public safety and security staff, attractive neighborhood). The

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Wakefield and Blodgett (1996) study found that “layout accessibility, facility aesthetics, seating
comfort, electronic equipment and displays, and facility cleanliness all have a significant
influence on how sport fans perceive the quality of the stadium. In turn, the higher this perceived
quality of the sportscape, the higher the sport fan’s satisfaction with the sportscape. If sport fans
are more satisfied, they are likely to stay in the stadium for a longer period (and spend more
money); also, they are likely to return more often”. These relationships are showed in figure
below:

Figure 2. 4 Sportscape Model

Through a reality example about sportcape, the football marketer get more
understanding about the importance of football Distribution, improving service in the “right
place” is one of the non-negotiable condition for success of any football strategies
2.4.4 Sport Promotion

Promotion is the process of promoting. Promoting means raising awareness. Therefore,
a simple definition of promotion is: the process of making people aware of something. There
are various methods for attracting the attention of potential consumers. In sport marketing is
not excluding case. Sport marketers are going to try gain as much more customer’s attention as
good. They stimulate the interest and awareness of consumers, and encourage them to purchase
a sport product. Promotion is about in traducing and taking more benefit for consumers.
The purpose of promotion is to encourage consumers to develop a good view about a
sport product which is aligned to a predetermined positioning strategy, and then to stimulate
consumers to try the sport product. Promotion focus on selling the product along extra benefit
for consumers. The elements of sport promotions (also known as the sport promotional mix)
include advertising, sponsorship, public relations, licensing, personal contact, incentives, and
atmospherics. Media Advertising is one of the best solution for expanding promotion, although
the expense must be paid is high. However, Media Advertising can help marketer easily
approached to a reservoir of potential consumer. In sport marketing, advertising may include
broadcast commercials, direct mailings, facility signage, and manufactured media. Sponsorship

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refers to the relationship between a corporation and a sport organization as a tool to develop
brand image and customer loyalty as a result of the association.
“Incentives are the benefits or reduced costs that are offered to motivate a sport
consumer to purchase the specified sport product or service. Atmospherics utilizes the design
of visual communications in an environment, such as lighting, colours, music, to entice the
sport consumer’s perceptual and emotional responses to purchase the sport product or service.
There are a number of generalizations that can be made about promotion. Promotions
temporarily increase sales substantially; promotion in one product category affect sales of
brands in complementary and competitive categories; and promotions can result in increased
traffic. Most of the generalizations are true; however, it is important to understand how to utilize
these elements in order to ensure that the results are longer lasting, and lead to maintaining

current and attracting new customers” Mihai (2013) argued.
2.2.5 Typical example - The marketing mix of Manchester United Football Club
With regard to Marketing Mix, Manchester United football club is one of the most
successful sport organization in the world (Hitesh December 5, 2016).
Product: Manchester United’s products is the team itself. They sell their image, using
their reputation for worthy collaboration. The football players are excellent model and they also
are celebrities to introduce club’s products. Their products are very diversified such as:
footballer kit, soccer academy, image, etc... Manchester United has its own television channel
and as it plays at various venues, it broadcasts its matches at its own channel. A big profit also
come from here, a variety of other channels want to buy the right to broadcast Manchester
United’s match with different prices. The club also implement ecommerce with a serviceable
website and various social network pages to sell their product faster and more effective. It has
also tie-ups with other websites who have the authorization to sell the company’s products.
Place: Hitesh (2016) mentioned that: “In the early years, the Manchester United team
played its matches on a field that was located on the North Road. The crowd capacity over
there was of 12,000 spectators. In the year 1893, the club was banned to play at this ground and
then they shifted to “Bank Street Ground” that was located in Clayton. After the temporary
closure of this ground in the year1902, a ground for temporary matches was found in
“Harpurhey”. In1909, the club shifted to “Old Trafford” and until this date Manchester United
plays all its home matches at Old Trafford”. As a football team in one of the most attractive
division in the world, Manchester United play not only in their home pitch, but they also play
in many places around the world, especially around Euro. Everywhere they got, every potential
distribution places are identified. Of course, if we talk location, then UK is obviously where the

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products are sold the most. But the attire is sold worldwide and Jerseys as well as jackets of
Manchester united are very common. The red color of Manchester united is loved the most.
Price: The most premium club in Football also uses premium pricing only. Manchester

United does not stay out of this cycling rule. Its fan following is very loyal and they can pay
any amount to watch their favorite team at play. Although, the season tickets are very costly for
their games in Old Tranford, their fan still buy the ticket even buy for whole season because of
simple reason, they are a part of Manchester United club and they are truly passionate partisan.
Likewise, the pricing policies for every product and services of Manchester United are of
premium and high quality. As a team climbs higher in the league table it also results in greater
share of television revenues. The popularity of Manchester United has helped the club to
generate higher revenues in broadcasting deals.
Promotion: The biggest picture for that is the collaboration between Manchester United
and their partner. As everyone know, Manchester United is a global brand with worldwide
recognition. Besides playing football the club and its team has a lot of focus on the commercial
aspects of the game. Its commercial strategies revolve around the players and the club. The
team members are its best promotional products. With Manchester United collaboration,
every partner receive the promotion because when they want to do celebrities endorsement,
they need to deal with a super star and catch his/her fans. However, with Manchester United
club, the partner can reach to almost all of their fan, a big promotion for every partner. For
example, the intense phobia about its players like David Beckham has helped the club in
generating immense publicity. Manchester United has also engaged itself in promotional
activities jointly with other companies. In the year 1982, the club signed a deal with Sharp
Electronics, who became the Shirt sponsor of the club. It has a contract to promote the mobile
phones of Vodafone. Nowadays, we can remind so many big profit commercial contract
between Manchester United with their partner such as: Adidas, Mister Potatoes snack,
Yammar,etc…

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