20-1
Chapter 20Chapter 20
Relationship MarketingRelationship Marketing
In the Business of SportsIn the Business of Sports
McGraw-Hill/Irwin ©2007 The McGraw-Hill Companies, All Rights Reserved
20-2
Two Broad Marketing ObjectivesTwo Broad Marketing Objectives
• Attracting New Customers
• Retaining Existing Customers
– Customer Acquisition Can Be Costly
– Customer Retention Deemed Superior
20-3
Customer RetentionCustomer Retention
• Basic Premise of Relationship Marketing
• Seeking Long-Term Association
• Cost of Customer Acquisition Estimated to be 6 Times the Cost of Taking the Steps Required to Keep an Existing Customer Satisfied
20-4
Relationship MarketingRelationship Marketing
• An Integrated Effort to Identify, Maintain, and Build a Network with Individual Consumers and to Continuously Strengthen the Network for the Mutual Benefit of Both Parties through Interactive, Individualized and Value-Added Contracts Over a Long Period of Time
• Focus on Lifetime Customer Value (LCV)
20-5
Benefits for the Sports MarketerBenefits for the Sports Marketer
• Customer Loyalty
• Facilitates Resolution of Fans’ Complaints
• Sense of Belonging– BIRGing – We Won– CORFing – We Lost, But We Were Robbed
20-6
Benefits for the Sports MarketerBenefits for the Sports Marketer
20-7
Components of Components of Relationship MarketingRelationship Marketing
• Mutually Beneficial – Win-Win Partnership; Buyer & Seller Benefit
• Trust– Feeling that the Other Party Will be Honest
• Empathy– Understand Each Other’s Situation
20-8
Components of Components of Relationship MarketingRelationship Marketing
• Communications– Interactive and Responsive
• Bonding– Strong Unified Commitment Viewed by the
Participants as a Partnership
• Continuity– Seek a Long-Term Association
20-9
A Look at Fan BondingA Look at Fan Bonding
• The Core Relationship– Usage
• Length of Relationship• Intensity of the Commitment• Frequency of Contact
– Fan Identification• Emotional Involvement• Personal Commitment• Loyalty
20-10
A Look at Fan BondingA Look at Fan Bonding
• The Expanded Relationship– Responsiveness to Product Merchandising
• Purchase of logo Merchandise
– Propensity to Engage in Word-of-Mouth Advertising
• Talk About recent Results• Talk About Future Competitions
20-11
Applications of Relationship Applications of Relationship Marketing in SportsMarketing in Sports
20-12
ClubsClubs
• Spectator Sports – Fan Club– New Zealand Cricket Fraternity
• Participation Sports – Club for Players– PGA Tour Partners Club
• SASS – Club for Users of Particular Brand– Storm Chasers (Storm Bowling Balls)
20-13
Serial MarketingSerial Marketing
• Spectator Sports – Giveaways– Require Regular
Attendance for Complete Set
20-14
Frequency IncentivesFrequency Incentives
• Spectator Sports – Frequent Attendance– English Rugby Football Union Smart Card
• Participation Sports – Frequent Play– 10-Pin Bowling: Play 6 Games; Get 1 Free
20-15
Affinity Marketing ProgramsAffinity Marketing Programs
• Spectator Sports – Credit Card That Benefits Both the Sports Property and the Fan– MBNA NASCAR RacePoints Visa Credit Card
• Participation Sports – Lifestyle-Based Credit Card– Ducks Unlimited MasterCard Credit Card
• SASS – Credit Card Use Accrues “Points”– Bass Pro Shops Outdoor Rewards Visa Credit Card
20-16
Affinity Marketing ProgramsAffinity Marketing Programs
20-17
Routine Periodic Communications Routine Periodic Communications (One-Way)(One-Way)
• Traditional Print Media or E-Mail
• Spectator Sports – Contacting Fans– Newsletter, Schedule, Promotions
• Participation Sports – Contacting Participants– E-Mail Seeking Runners for Upcoming Marathon
• SASS – Magazines– Callaway Golf Magazine
20-18
Interactive OpportunitiesInteractive Opportunities
• Spectator Sports – Internet Chat Room– Dialog between Fans and Player
• Participation Sports – Real Time Results– Boston Marathon Participant Tracking
• SASS – Information and E-Products– adidas.com downloads and store locator
20-19
GiftsGifts
• Spectator Sports – Recognize Relationship– NFL Team’s Christmas Ornament for Season Ticket
Buyers
• Participation Sports – Encourage Return– Golf Tournament that Provides Gift Pack for Players
• SASS – Reward for Past Use– Bowling Ball Co. that Gives Special-Edition Ball to
Recognize Perfect Game by Bowler Using Its Brand
20-20
Fan Appreciation ActivitiesFan Appreciation Activities
• Spectator Sport Based
– Player Clinics
– Autograph Sessions
– Celebrations of Team Achievements
20-21
ContestsContests
• Spectator Sports – Win Tickets– Future Game or Cross-Marketed Event
• Participation Sports - – Register On-Line; Chance to Waive Fees
• SASS – Win Product– Titleist.com: Win Year’s Supply of Golf Balls
20-22
Logo MerchandiseLogo Merchandise
• Spectator Sports – Peripheral Product– Premiums that Incorporate Team Logo
• Participation Sports – Reward Performance– Bowler Receives Logo Jacket for 300 Game
• SASS – Support Core Product– Storm Bowling Balls Sell Shirts, Towels, etc.
20-23
Direct Access/Direct Access/Personal RepresentativePersonal Representative
• Spectator Sports – Ticket Representative– Assigned to Handle Season Ticket Accounts– Addresses Exchanges– Resolves Complaints– Addresses Renewal– Provides Constant Point of Contact Over Time
20-24
RecognitionRecognition
• Spectator Sports – PA Announcement– Birthday of a Season Ticket Holder
• Participation Sports – Acknowledgement – Tournament Web Site Identifies Bowlers Who Attain
a Noteworthy Mark in Continuous Participation
• SASS – Identification on Website– Recognize Achievers Who Used the Marketer’s
Product in a Noteworthy Performance
20-25
Example in Spectator Sports:Example in Spectator Sports:NASCARNASCAR
• Apartment Building by Lowe’s Speedway• NASCAR Thunder Store• NASCAR Café• NASCAR Amusement Centers• NASCAR Simulators• Daytona USA Theme Park• Pit Stop Challenge• Simulate Role of Race Announcer
20-26
Example in SASS:Example in SASS:ReebokReebok
• Focus on Female Runner Target Market• Focus on Smaller Retailers• Emphasize Running Roots in Promotions• Sponsor US Olympic Track & Field• Grass Roots Sponsorship of Running
Events• Newsletter to Known Runners• Seek Input from Retailers
20-27
Evaluating the Effectiveness of a Evaluating the Effectiveness of a Relationship Marketing ProgramRelationship Marketing Program
• Track Sales
• Monitor Complaints
• Customer Satisfaction Surveys
20-28
Evaluating the Effectiveness of a Evaluating the Effectiveness of a Relationship Marketing ProgramRelationship Marketing Program
• Monitor Internet Chat Rooms and Bulletin Boards
• Calculate Click-Through Rate for Internet-Based Relationship Marketing Initiatives
• Customer Relationship Marketing Software
20-29
Recovery MarketingRecovery Marketing
• When Things Go Bad, How Do We Get the Customers to Come Back?
• NHL After Cancelled 2004-05 Season
• Formula 1 Racing in USA After 14 of the 20 Cars Entered Refused to Race because of Safety Concerns about Tires
20-30
Five Steps for Recovery MarketingFive Steps for Recovery Marketing
20-31
Closing CapsuleClosing Capsule
• Relationship Marketing Is All About Customer Retention
• Key Issues Are Customer Satisfaction and Problem Resolution
• Relationship Marketing Encompasses All Elements of a Marketing Strategy
20-32
Closing CapsuleClosing Capsule
• Win-Win Environment
• Focus Is on Lifetime Customer Value – In Other Words, a Long Term Relationship
• Despite Best Efforts, Things Go Awry
• Need to Understand Recovery Marketing
Top Related