com/the-text/the-fan/why
1. Iden tify with an d follow th e beh avior of th e team an d in dividual players on th at team,
on an d off th e field (via www.espn .com, team websites, n ewspapers, television , radio,
wireless, etc.).
2. Purch ase licen sed merch an dise (jerseys, automobile paraph ern alia, caps, mug s, etc.)
promotin g th e team.
3. Don ate or pay for perman en t seat-licen ses (PSLs) in order to buy season tickets.
4. Travel to see g ames of th at team outside th e local market.
5. Support tax-based in itiatives to pay for a n ew aren a or stadium for th e team.
6. Be a supporter of th e con feren ce or leag ue in wh ich th e team plays.
7. Devote sig n ifican t social time atten din g , watch in g an d discussin g th e team with
oth ers devoted to th e same or oth er teams.
Curren t GSM focuses primarily upon creatin g customer satisfaction . Satisfaction occurs
wh en expectation s are met or exceeded. Satisfied customers mean th ree th in g s to th e
compan y.[3] First, satisfied customers in crease th e value of th e firm to sh areh olders.
Secon d, satisfied customers assure th e firm of future cash flow. Th ird, satisfied customers
reduce th e variability in future cash flow.
As with GSM, sports teams seek to satisfy customers. We would expect, h owever, th at
fan atics of a team or bran d are more th an satisfied. Fan s experien ce pleasure an d
satisfaction with successful teams. But, th ey also experien ce feelin g s of delig h t or
excitemen t deeply reson atin g with in th e iden tity of th e in dividual fan , such th at th e effects
are likely to be lon g term.[4] Delig ht is a combin ation of pleasure an d arousal with an
elemen t of surprise th at is frequen tly experien ced in th e sports world. Furth er, fan atics are
resilien t in th e face of service failure (viz., th e team loses), wh en delig h t an d excitemen t may
turn to distress an d g loom. Sports teams develop a faith ful fan atical followin g primarily
due to h ig h levels of iden tification , wh ich is th e secon d poin t of differen tiation between
GSM an d sports marketin g .
T op 10 Differ ences Between Goods/Ser vices Mar keting and Spor ts Mar keting
2. Identification
Con sumers are loyal to g oods an d services wh ile fan s identify with teams, org an ization s,
an d in dividuals. Loyalty is th e repeat purch asin g of a g ood or service by a con sumer. A
loyal customer is sen sitive to differen ces in bran ds an d prefers a bran d or set of bran ds
over oth ers. Identification is wh en an in dividual reacts to even ts th at occur to th e team or
player as if th e even ts h appen ed to h im or h er. A h ig h ly iden tified fan will describe on e’s
self to oth ers in terms of bein g a team fan , perh aps to th e poin t th at th e fan feels like s/h e
is part of th e team. Fan s are certain ly loyal to th e team in terms of repeat purch ases, but fan
iden tification is a deeper psych olog ical affiliation th at is a basis for a fan determin in g h is
self-esteem an d self-worth . Ch apter 1 deals more specifically with h ow teams an d players
can build fan iden tification . Because of h ig h fan iden tification , fan s passion ately seek ways
to promote th e team to oth ers.
Th e reven ue g en erated from TV con tracts is th e prin ciple differen tiatin g factor between th e
h ealth iest sports leag ues (NFL, NBA, MLB, NASCAR) an d th e less h ealth y (NHL, MLS, an d
WNBA). Th e proliferation of broadcast an d oth er media outlets for sports also poin ts to
th e fact th at th e distribution for sports is in creasin g ly electron ic an d n ot limited to static
location s.
Th e experien tial an d tran sitory n ature of sportin g even ts (as well as oth er competitive
broadcast even ts such as “Survivor”) len ds itself to electron ic forms of distribution . Th at is,
sports an d en tertain men t are suitable for mediated distribution th roug h broadcast an d
on lin e video. Th e NFL, for example, is broadcast in 231 coun tries across 24 time zon es for
upwards of 200,000 h ours of prog rammin g in 32 lan g uag es.[5] Similarly, cable an d
in tern et broadcast systems h ave developed n ew distribution ch an n els such as NBA.TV,
blurrin g th e lin es between tradition al broadcasts an d on lin e services th at make th e
product available an ytime, an ywh ere.
Compared to most sports, frequen tly cited “g lobal” products such as Coke an d McDon ald’s
are n ot actually stan dardized g lobal products. Coke alters its packag in g , n ame an d syrup
con ten t in foreig n coun tries. McDon ald’s offers beer in German restauran ts an d cooks its
h amburg ers rare in Fran ce. In con trast, th e con ten t or product of th e NFL, Formula1
Racin g , Olympics Down h ill Racin g , or th e NHL remain s th e same th roug h out th e world. In
a sen se, g iven its electron ic broadcasts, th e distribution is stan dardized aroun d th e world.
Obviously, th e promotion (e.g ., lan g uag e) an d pricin g (e.g ., costs of cable or PPV) aspects
of th e marketin g mix may be adjusted by g lobal markets.
6. T wo-part Pricing
Customers typically pay on e price for a g iven product or service. Wh en you g o to a g rocery
store, you select your favorite g rocery items[6] an d pay th e prices marked on th e items. You
are n ot required to pay admission to th e store so th at you can sh op. However, some
exception s exist resemblin g fan loyalty—an d even fan aticism—in customer products. For
in stan ce, people pay an an n ual fee to sh op at Sam’s Clubs or Costco. Some people we kn ow
actually g et very excited about bein g able to sh op at th ese places. Such org an ization s are
th e exception to th e rule—an d add eviden ce to th e premise th at th e most successful
marketers are th ose emulatin g sports marketers.
Profession al sports an d major colleg e sports fan s frequen tly pay a two-part tariff (or
price). Wh ile some services with relatively in elastic deman d (electricity, utilities, etc.) use a
two-par t pr icing system (basic fee + addition al user fees) due to mon opoly power, even
sports org an ization s operatin g in competitive en tertain men t markets frequen tly ch arg e
two prices. In sports, an in itial paymen t (don ation to th e un iversity, paymen t for a seat
licen se, membersh ip fees) is frequen tly n ecessary to allocate a limited in ven tory of
preferable seats. Fan s payin g th e in itial fee are th en g iven th e opportun ity to purch ase
tickets.
An oth er aspect of two-part pricin g in sports is th e even t itself. Fan s pay for a ticket to
en ter th e even t (in itial paymen t) an d th en purch ase oth er products (food, drin k,
souven irs) after en terin g . Th us price-settin g in most sports settin g s must con sider various
forms of pr ice bundling . Season tickets are offered at a bun dled price for th e en tire
season an d are de-bun dled in th e form of smaller ticket packag es or in dividual tickets.
Offerin g tickets with a h ot dog an d soft drin k for a sin g le price is an oth er example of price
bun dlin g in th at it combin es th e prices of wh at would n ormally be two-part pricin g . Price
bun dlin g is common amon g services (e.g ., vacation packag e of flig h t, h otel, an d g roun d
tran sportation ; cable TV packag es), so th is aspect doesn ’t by itself differen tiate th e
marketin g of g oods/services vs. sports. Yet, it is common practice in all sports marketin g
con texts, but is n ot common to all g oods/services con texts. In terestin g ly, fan s are typically
payin g for admission to a publicly-own ed facility, even th oug h th e bulk of th e ticket sales
proceeds g o directly to th e team own ers.
Wh y do city, coun ty an d state officials wan t to attract sports org an ization s? Wh y are th ey,
an d th eir taxpayers, willin g to pass referen dums to pay for th ese facilities? Th e case can be
made for a variety of motives (main ly political an d econ omic) for th is support. However,
from a broader sociolog ical perspective, sports teams provide a city (or state) with a social
identity th at can represen t wh o th ey are to oth ers. Th e successful state un iversity sports
team allows con stituen ts to represen t th emselves to oth ers as win n ers. Th e toug h blue-
collar ch aracter of th e Steelers over th e years symbolizes wh o Pittsburg h fan s are to th e
rest of th e coun try. Th e black un iforms, skull-an d-crossbon es, an d in timidatin g players
for th e Oaklan d Raiders, for better or worse, mostly iden tify th eir fan s. We are n ot sure
wh at th e men dressed up as h og s in dresses at Wash in g ton Redskin s g ames mean s. In
con trast, major cities th at h ave lost or are with out major leag ue sports spen d con siderable
resources search in g for an iden tity by way of allurin g sports fran ch ises.
Con sider wh at is sold in g ift sh ops in airports. You will always fin d jerseys, mug s, an d
oth er merch an dise th at represen t th e city to oth ers wh o pass th roug h th e area. Th e
merch an dise may feature th e licen sed log os of local g olf courses or min or leag ue teams in
Ch arleston (SC), th e Cowboys in Dallas (TX), or th e Jazz an d Olympic log os in Salt Lake
City (UT). Th e poin t is th at commun ities represen t th emselves to oth ers th roug h th eir
iden tification with a sports org an ization . In terestin g ly, visitors buy th e licen sed
merch an dise from th ese cities to represen t to oth ers th at th ey visited th ere. Th e iden tity of
th e sports org an ization offers social mean in g an d value both to th ose wh o live in th e city
an d to th ose wh o visit th e city. In an y case, th e social value of th e profession al sports team
often g oes beyon d simply th e directly relevan t econ omic value of th e team to th e
commun ity.
Oth er pro sports leag ues operate in a similar fash ion , such th at virtually an y n ew leag ue
h as n o opportun ity to compete. A clear example of th is mon opoly con trol of sports leag ues
is in th e NFL, wh ere th e city of Los An g eles h as n o NFL team, despite th e fact it is th e
secon d most populated market in th e U.S. Th e NFL’s reven ue sh arin g plan h as con tributed
to th e fact th at th e barrier to en try in th e form of an in itial fran ch ise fee in to th e LA market
for a prospective team own er exceeds $700 million (th e amoun t th e Houston Texan s paid
for en try in to th e Houston market). Obviously, a free market would h ave a pro football
team in Los An g eles. A mon opoly, in th is case, does n ot.
In summation , th e poin t h ere is th at every oth er g oods an d services marketer must abide by
federal an ti-trust laws. Profession al sports, in larg e part, do n ot. Th e log ic presen ted is
th at th e leag ues must main tain con trol for th e in teg rity of th e sport, as th ey seek to protect
th e social welfare of fan s.
In sports, atten dan ce is n early always (98-99% of th e time) with at least on e oth er person .
Th e sports fan pays a price for th e rig h t to en joy an emotion al experien ce with oth ers. Th e
fan g oes to th e g ame to be with oth ers to sh are th e experien ce in th is social exchang e.
More broadly speakin g , un like most oth er retail settin g s, larg e crowds h ave positive
psych olog ical effects. No lin e at th e g rocery ch eck-out will make most sh oppers h appy, but
n o lin e to see a ballg ame or a con cert is a defin ite cue to a fan th at eith er th is is a lousy
even t or th e fan h as arrived at th e stadium on th e wron g date. Th e excitemen t of th e
competition an d th e aura of th e star power of th e players on th e team are such th at th e
experien ce is best en joyed in th e presen ce of oth ers.
Employees (viz., players) of sports teams, h owever, are more likely to possess con tractual
power over employers. Con tract con cession s, ren eg otiation s an d arbitration s g en erally
favor players. At th e same time th at un ion membersh ip h as declin ed in man ufacturin g over
th e past four decades, un ion membersh ip in profession al sports leag ues h ave g rown
relatively stron g due to th e leverag e h eld by th e players. Con sequen tly, work stoppag es in
major sports leag ues h ave become common place in th e past decade. In 2004-05, th e NHL
sh ut-down due to th e players’ un willin g n ess to abide by own ers deman ds in its n ew labor
con tract. Similarly, MLB players forced th e can cellation of most of th e season an d th e
World Series in 1994. We await th e outcomes of th e NFL an d NBA n eg otiation s in 2011.
Alth oug h th e first n in e differen ces are positive aspects of sports marketin g , th e leverag e or
power of in dividual players in major colleg e an d profession al sports h as clear n eg ative
implication s. Th e averag e fan h as difficulty in iden tifyin g with 21-year-old
multimillion aires wh o often appear un g rateful for wh at th ey h ave. Players an d coach es
willin g ly trade team alleg ian ces for more mon ey. Teams uproot overn ig h t an d move to
an oth er city. Motor sports drivers trade spon sors for more mon ey. Wh ile most fan s may
n ot blame th e teams or players for maximizin g th eir fin an cial position s, th e ultimate fact is
th at such fluctuation s erode loyalty an d iden tification . Just as bran ds lose customers wh en
th ey ch an g e advertisin g ag en cies an d campaig n s from year to year, teams lose iden tified
fan s as th ey sh ift player person n el an d team n ames in search of makin g more mon ey.
Th e followin g ch apters will offer th e n ecessary compon en ts for effective sports marketin g
strateg ies th at result in maximizin g fan iden tification .
Effective sports marketin g is primarily premised upon buildin g fan iden tification .
Customers can iden tify with a bran ded g ood or service, as wh en customers wear a
particular cloth in g bran d promin en tly displayed on th eir cloth in g . As such , it can be
arg ued th at iden tification is merely a deeper level of loyalty. However, th e best examples of
fan atical followin g s are with in th e realm of sports marketin g .
Bran ded g oods an d services emulatin g sports marketin g practices build h ig h ly iden tified
customers. Services such as eBay can g en erate fan atical support such th at users form an d
meet in clubs for social ben efits associated with bein g with fellow eBayers. Bran ded
products such as Apple can g en erate en oug h un reason in g en th usiasm amon g its fan s th at
th ey will pay a premium in order to purch ase th e n ew version of th e product before oth ers.
Th ese examples, h owever, are th e exception s provin g th e rule: Sports marketin g prin ciples
best exemplify effective marketin g .
Non sports org an ization s can ben efit from un derstan din g an d practicin g sports marketin g
prin ciples. Bran ds th at seek to build levels of iden tification like th at foun d in th e wide
world of sports can g en erate fan s th at are willin g to proudly wear th eir bran d n ames (e.g .,
Nike) an d oth erwise display un yieldin g devotion . So, wh eth er your career is in sports
marketin g or g rocery sh oppin g , th is text sh ould provide g uidan ce for excellen ce in
marketin g .
Bran ds seek alig n men t with properties own in g an active, avid fan base. Th e g oal is to
activate th e spon sorin g bran d in th e min ds of fan s so th e affin ity for th e property
tran sfers to th e bran d. Wh en th is h appen s, fan s attribute positive association s with th e
bran d, makin g it more distin ct. Based on th ese positive attributes associated with th e bran d
from th e spon sorsh ip activation process, passion ate fan s respon d positively in terms of
support beh aviors—n amely buyin g more of th e bran d.
Spon sorsh ips are larg ely sold on th e basis of relation sh ips between represen tatives of th e
property an d th e spon sor, but also rely h eavily on qualitative, strateg ic, an d quan titative
evaluation s.
Want to lear n mor e? Subscr ibe to T eam Spor ts Mar keting her e.
[1] Folg er’s h as, h owever, spon sored NASCAR drivers with th e Folg er’s n ame promin en tly
displayed on caps, sh irts an d oth er merch an dise fan s h ave worn .
[2] Fish er, Robert J. an d Kirk L. Wakefield (1998), “Factors leadin g to g roup iden tification :
A field study of win n ers an d losers,”Psychology & Marketing, 15 (Jan uary) 23-40.
[3] Gruca, Th omas S. an d Lopo L. Reg o (2005), “Customer satisfaction , cash flow, an d
sh areh older value,” Journal of Marketing, 69 (July), 115-130.
[4] See Oliver, Rich ard J., Rolan d T. Rust an d Sajeev Varki (1997), “Customer delig h t:
Foun dation s, fin din g s, an d man ag erial in sig h t,” Journal of Retailing. 73 (Fall), 311-336.
[6] Namely Pop-Tarts, Ch eese Wh iz, Cool Wh ip an d frozen pizza.