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Precision Marketing. Chapter 3. Opening thought on careers in team sports marketing….

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Opening thought on careers in team sports marketing
Opening thought on careers in team sports marketing…

“You may not be paid much (or anything) for the opportunity to break into sports - and the real mistake is then giving the company what they are paying for. You should give them a $100,000 effort. You are trying to show that team that they can't live without you. Also, you should dress and act like you are ready to be promoted. Some of the best advice Jim Lites (President, Dallas Stars) gave me as a young man was to stop acting like the king of the single guys and start acting like a responsible man who could be trusted with more responsibility.”

Geoff Moore, Executive VP of Sales & Marketing, NHL Dallas Stars


What do you need to know in this chapter
What do you need to know in this chapter?

  • Precision Marketing vs. Mass Marketing

  • Viral Marketing

  • Market Orientation

  • How to collect demographic data

  • How to collect psychographic data

  • How to collect behavioral data

  • Importance of Life Time Value (LTV)

  • Issues in CRM implementation


1 precision marketing vs mass marketing

Precision marketingoffers customized benefits targeted to specific individuals based upon personal characteristics collected through the organization’s customer database.

What makes a good viral ad? What kinds of emails do you like to forward to others?

Consider the effectiveness of Super Bowl mass advertisements (www.superbowl-ads.com) vs. precision viral ads that direct customers online (e.g., www.subservientchicken.com).

How would you compare the effectiveness of these two channels in terms of:

Waste?

Generating attention, interest, desire, or action?

#1 Precision Marketing vs. Mass Marketing

Read more about viral ads: http://money.cnn.com/magazines/fortune/fortune_archive/2006/10/02/8387416/index.htm.


2 viral marketing

Viral marketing: “network-enhanced word-of-mouth.”

If individuals receive electronic communications with obvious personal benefits, they will spontaneously pass the information on to others.

The benefits might be economic, emotional, or social in nature.

Combining all three benefits leads to high motivation to pass the message on to others.

How could you create a viral marketing campaign for your university’s tennis, baseball or softball team to:

Generate new fans,

Enlarge attendance and purchases of current fans, and

Motivate and maintain current fan loyalty and identification.

Where would you get customer data?

What would you offer in the email that would be passed on?

How will you follow through in the campaign so that it moves fans toward higher levels of identification?

#2 Viral Marketing

In 10 minutes, one team will be selected to present.

Other teams must give one constructive critique.


3 market orientation

Market oriented organizations do three things effectively (Kohli and Jaworski 1993):

Generate customer information

Disseminate customer information, and most importantly,

Respond to customer information in a way that meets customer needs and fulfills organizational goals.

Debate Question: Should Mark Cuban give fans open access via email to communicate with him?

Split into teams (5 minutes prep time):

Pro: Why is direct communication with Cuban a good idea?

Con: Why is direct communication with Cuban a bad idea?

#3 Market-orientation

Mavs waive new uniforms after 1 game

By Bob Velin, USA TODAY

The Dallas Mavericks' original uniform design lasted 21 years. Their latest shimmery silver road duds lasted one game. After a less than positive response following the uniform's debut opening night against the Los Angeles Lakers on national TV, the Mavs have decided to put the new unis in mothballs for now. Mavs’ Owner Mark Cuban received dozens of negative emails during and after the game, leading the team to discontinue the uniforms.


4 collecting demographic info
#4 Collecting Demographic Info

  • Assume that you are gathering fan data for a team. You are responsible for developing the items that will be used on surveys and other registration materials to build their customer database. Identify the team you work for and answer the following:

  • What demographics would they want to have?

  • How exactly should these appear on the survey?

  • Where would you place these on the survey? (first, middle, last?)

  • How can this data be used by sponsors of the team in targeting their own customers? What kind of sponsors would be interested?

See example at: www.teamsportsmarketing.com/mavsgear.asp


5 collecting psychographic data
#5 Collecting Psychographic Data

  • Assume that the team is interested in learning about guests’ perceptions of:

    • The area surrounding the stadium or arena

    • The quality of the stadium/arena

    • The availability & usefulness of event information

    • Hotel packages—perhaps bundled with game tickets & parking pass

    • Public transportation

    • Prices of tickets

  • 2. How do you think fan responses might differ dependent upon their:

  • Price-sensitivity

  • Social motivation

  • Promotion-proneness

  • Variety-seeking tendencies


6 collecting behavioral data
#6 Collecting Behavioral Data

  • What kind of behavioral data might the team and sponsors want to gather that would be useful in segmenting customers?

  • Why might the team be interested in finding out what other forms of entertainment sports fans enjoy?

  • How could this database be useful for CRM & precision marketing efforts?

  • How could the team make use of loyalty cards supported by a major corporate sponsor?


7 life time value ltv

Listening to and understanding the needs of loyal season ticket holders is critical to any sports organization’s success.

Organizations need to spend as much or more effort in maintaining and keeping their current loyal fans due to the life time value (LTV) of a customer.

To understand this concept, consider how much money you spend at your favorite restaurant, hair salon, dry cleaner, or other retail/service outlet while in college.

Pick one of these and write your calculations as follows:

$_____ spent per week

X 50 weeks (you’re gone for at least two weeks) = $_______

X 4 (or 5) years = $ ________

Some NFL teams have traditionally sold out of all of their season tickets. They have not had a CRM program. Why would they want to implement a CRM program?

#7 Life Time Value (LTV)


Example of CRM Interface ticket holders is critical to any sports organization’s success.


8 issues in crm implementation

As the team kicks off a CRM program, the individual in charge of the CRM implementation often encounters problems:

Commitment: Can you get top management to fully support?

Hardwarematch: Can the team make the appropriate investments in the right software & hardware?

Healthy data: Can all sources of data be consistently categorized in the same way, avoiding duplication & errors?

Measurement expectations: Can you avoid over-selling the program as the salvation for the team’s marketing problems?

Change management: Can you deal with the natural reaction of those humans who prefer traditional marketing media—especially in this industry—when they have to change what they do to facilitate the CRM implementation?

Right people on the CRM bus: Will the organization be willing to invest to get the best people for key roles to ensure success? Or will they just try to play with the hand that has been dealt? (i.e., current personnel)

Sell & sell again: Can you continue the constant selling of the CRM program so that the organization continues to recognize its value in the success of its operations?

#8: Issues in CRM Implementation


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