Precision Marketing. Chapter 3. Opening thought on careers in team sports marketing….
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“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 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:
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.
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.
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.
See example at: www.teamsportsmarketing.com/mavsgear.asp
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)
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