Marketing Strategies of Different Sports Companies and Supporting Bodies in Australia - Case Study Example

Fandom: From sports spectator to true fan Name Institution Date Context and Problem/Opportunity From a consumer behavior, perspective sports supporters remain the driving force underlying all the motives and marketing strategies of different sports companies and supporting bodies in Australia. Motives that drive sports spectators have significant weight in determining whether they become true fans of the sport or remain mere spectators. Sports literature reports organizations’ marketing influencing a major part of the sports context, as well as the perception of the real game to spectators. Speaking from a sports marketers’ perspective I represent organizations that are daily striving to build up the consumers’ behavior in developing the fandom aspect in sports. The main challenge faced by a majority of the Australian sports marketing organizations involves enhancing consumers’ loyalty among sports spectators; so that they can change from being mere spectators with divided loyalty to true fans. A loyal fan will stay loyal and follow the same sport over time, hence generating more revenue for the teams compared to a spectator with divided loyalties (Van Schaik, 2014). Therefore, this report illustrates what sports organizations can do to encourage fandom among sports spectators. Literature Review While a majority of sports organizations recognize the construct of consumer loyalty, the variables and conditions that foster sports spectators’ loyalty to certain sports, the approach to the same issue still varies. Based on the context of sports consumption Oliver (1999 p.35) asserted that loyalty for a sport may differ from the loyalty the same individual has over the brand and products of the same sport. Further research into leisure setting revealed that fandom can only get created through a close interaction between an individual’s psychological commitment and their involvement in the particular sport. This relationship builds the consumers’ loyalty as well as the customer retention (Bennet & Bove, 2002 p.29). Also despite the loyalty construct gaining high recognition in the aspect of sports fandom, there exists several variables that influence the same under different sporting environments. Understanding the influence of the same has continued to become a tricky issue especially in the management of soccer spectators and fans in Australia and other European countries. Funk & James, (2001 p.132) adopted the leisure definition of involvement to examine the involvement of sports spectators and fans. Their understanding of this aspect points towards individual motivation, arousal or interest towards a certain sport or activity, but the research failed to generate a better explanation for such a stimulus. The majority of researchers even went further to research on involvement from a multidimensional perspective and found out that the need for self-expression and centrality; remain the main variables in involvement that influences consumers’ loyalty in sport. Although, involvement remains a widely utilized construct in leisure settings, its application to sports fandom has not received much attention and there still exists empirical research limitations. Iwasaki and Havitz’s (2004 p.48)) theoretical model further suggests that the limitations exist in the relationship between involvement, commitment and consumer loyalty in the context of sports fans (Van Schaik, 2014). In view of psychological commitment, researchers have also suggested that commitment to a specific sports team reflects highly on the sports fan attitude (Funk & James, 2001 p.146). According to Heere and Dickson (2008 p.229) current marketing research into the sports fandom revealed that attitudinal loyalty and psychological commitment play a very significant role in influencing the loyalty of sports spectators to becoming longtime fans. Heere and Dickson (2008 p. 230) further differentiated commitment from attitudinal loyalty by defining attitudinal loyalty as the interaction between negative external changes in a spectator’s environment and the internal psychological connection of that individual. For instance, the change in sporting environment may negatively influence the consumer’s behavior based on attitude change. The spectator would less likely want to remain loyal to a team that plays overseas than their home team. On the other hand, the behavioral loyalty of spectators primarily defines their behavior patterns towards the sport or team. This loyalty usually gets influenced by the habituation subsystem that describes how sports fandom becomes integrated into the routines and lifestyles of different spectators; hence influencing consumers sports loyalty. According to studies, there exist roles and habit patterns that interweave to create the daily lifestyle of individuals and groups of fans. These behavioral patterns and lifestyle choices make up the individual consumer behavior for each sports spectator. Based on the occupational sports fandom study researchers have acknowledged that passionate or loyal supporters usually have their lifestyle tightly wrapped and aligned around their favorite teams and sporting clubs. For example, they will wear attires that support their favorite teams or clubs and will even do so regardless of their success or loss. Similarly, Humphries and Smith, (2006 p.338) suggested that the consumer’s behavior is centrally based on the consumer’s sporting activities aligned to their personal lifestyle. The same lifestyle eventually influences their level of attachment to a team or sport. Despite consumers’ lifestyle being acknowledged as a key potential marketing segment variable, (Zaichkowsky, 1985 p.350), the basic elements that make up one’s lifestyle like habits and individual roles remain unexploited. Theory/Model/Framework In view of the theory of motivation, drive and arousal motivation theories play a major role in the influence of consumer behavior; in this case influencing how spectators become lifetime fans in sports. Looking at children development when they are going through their skill development stages, children tend to process the need to become lifetime fans at just the age of 8 or 9 years. The motivational theory explanation behind this influence points out that usually kids get attached to particular sports because of the drive to become a team player or manager in future (Cherry, 2013 p.1). This drive influences the child to process the need to stay loyal to a certain sport through media and personal participation; hence we end up with a child spectator becoming a loyal fan. However, some children tend to pick up such tendencies in their teenage years due to social influence; they get motivated to associate themselves with a certain team or sport because their family and friends support that team. This motivational aspect can linked to the instinct theory of motivation. Therefore, it is right to say that the drive motivation theory applies to this topic. The theory suits this topic because sports organizations can prioritize on this theory to socially facilitate interactions between socializing agents and the seven, eight and nine year’s olds in the society. This way the organizations will not only develop fans instead of spectators but will also change spectators into true fans. On the hand, research has shown that some fans find a sense of belonging and acceptance in certain sports that they do with their families and friends in their lifetime. This drive motivational theory, therefore, influences individual spectators into becoming loyal and lifetime fans for certain sports or teams. This drive theory can also apply in influencing traditional institutions and the community through breaking down, religion and family through the drive motivational theory for belonging to a sport or associating with a team. Recommendations The psychology of sports suggests that fan psychology remains primitively rooted in the era when people lived in small tribes, and warriors fought to protect their tribes; representing a sense of belonging. Today’s athletes play a similar role for a club or school in the much-advanced war style on a playing field. As the theory of instinct motivation suggests, exploiting the associative instinct of spectators will help reconnect them with their favorite athletes and teams; hence changing spectators to true and loyal fans. Sport organizations can only encourage fandom in sports through the effective implementation of the 4P’s of marketing. For instance, exploiting this associative instinct can be done through careful placing of the service offered for example, targeting fans in a more sociable environment. Place Fan Socialization is one way that organizations can use placing of a sport or sports events, hence encouraging fandom in sports. Fans not only connect to sports through sporting environments and stars; but also through communicating with each other and the social currency that sports generates. Sports events have become the supplementary events where people gather to socialize and share experiences far more than the actual game. Since social currency appeals to the deeply rooted desire of individuals belonging to a crowd, sport organizations can, exploit fan's social events; to influence mere spectators into becoming true fans (Moschis & Churchill, 1978 p. 601). This implies that placing the service in the right environment can equally encourage fandom in sports. They can do so by capitalizing on the popularity of fan-zones, viewing parties and sports bars that develop the instinct to belong to a team; through the socialization of sports fans. Product Product is no good if it does not fit and meet the needs of customers Sports fans associate themselves with a sport or game because they desire to see certain famous figures play or because they want to see a certain team winning. Therefore sports organizations can capitalize on this by giving the consumer the right service that fits their needs. For example, arranging a sporting event that brings the consumers’ favorite teams near to them meets their need of seeing such teams or their favorite players in action; hence influences spectators to become true fans. Price Price carries considerable weight in influencing consumers’ perception of a team or sport. If the value of the service or product represents good value for their money then they will want to associate themselves more with the sport or team. Consumers never mind paying a little more for something that really works for them; in terms of meeting their needs and fitting their expected desires. Therefore, sports organizations can also use the price element among the 4P’s of marketing to encourage fandom. For instance, setting realistic prices for watching tournaments or prices for certain products related to sports, teams and players may encourage mere spectators to indulge more in a sport or a team. As a result their association of their money’s worth with the sport or team will directly influence them to becoming true fans. Promotion Promoting a sport or a team through marketing an athlete would better appeal to fans who associate with that athlete than any other anonymous one. For example, fans have different expectations towards celebrity athletes than they do with their teams. The fascination with such players or athletes coupled with social media granting the fans instant access to their daily lives would suggest that the organization cares more about the fans. This gesture that applies the drive motivation theory in influencing consumers desynchronizing significantly influence sports fans loyalty to a team or sport compared to just watching for fun. Organizations can enhance this drive to belong and associate with a famous athlete through allowing forums where fans to communicate with a famous athlete; hence build the overall appeal of being a fan rather than a spectator. Therefore, a sports organization that wants to develop loyal fans and a lasting social relationship with the community of spectators ought to capitalize on the image. Through influencing the image of the chief celebrant of its community and not its celebrity, the organization would be enhancing the fandom aspect in sport. By figuring out what the entire fan population adores and associates them with a certain sport due to the figurehead, a sport organization can easily influence the spectators’ behaviors turning them into true and loyal fans instead of spectators. Additionally, fans love to lose themselves in the unpredictable drama associated with the live events around a sport. Therefore, placing the service in a medium which consumers can easily access; may go a long way in encouraging sports fandom. This is the reason why sports are now becoming most suited for second screen activations. In view of the social dimension of the TV experience, fans tend to fans use several media to connect with each other while at the same time talking about a game and connect with the community. The feeling of doing, sharing and experiencing something together and the mere psychology of connecting with others through media can influence a spectator into becoming a true fan. This behavioral change happens because media plays the role of strongly motivating spectators into true fans. Therefore, organizations can base their discussion forums also on such platforms such as Facebook. These platforms allow fans to communicate with each other at the same time discuss a game, creating a sense of belonging; that would finally motivate them to becoming true loyal fans instead of spectators. Since TV is a synchronizing technology that constitutes the second screen engagement, organizations can use desynchronizing technologies to resynchronize games geo-locating sporting events to big television events. A combination of the aspects concerning massive impact of some of the major sporting events, the power of community and the psychological need of belonging and sharing; would help sport organizations, better understand the approach to the issue on sport fandom. References Bennett, R., & Bove, L. (2002). Identifying the key issues for measuring loyalty. Australasian Journal of Market Research, 9(2), 27-44 Cherry, K. (2013). Theories of Motivation in Psychology. Retrieved May 12, 2015 from http://psychology.about.com/od/psychologytopics/tp/theories-of-motivation.htm Funk, D.C., & James, J. (2001). The Psychological Continuum Model: A conceptual framework for understanding an individual’s psychological connection to sport. Sport Management Review, 4(2), 119-150. Heere, B., & Dickson, G. (2008). Measuring Attitudinal Loyalty: Separating the Terms of Affective Commitment and Attitudinal Loyalty, Journal of Sport Management, 22(2), 227–239. Humphries, C., & Smith, A. (2006). Sport fandom as an occupation: Understanding the sport consumer through the lens of occupational science. Int. J. Sport Management and Marketing,, 1(4). Retrieved May 12, 2015, from http://aaronctsmith.com/Article PDFs/Humphries IJSMM.pdf Iwasaki, Y., & Havitz, M.E. (2004). Examining relationships between leisure involvement, psychological commitment and loyalty to a recreation agency. Journal of Leisure Research, 36(1), 45-72. Moschis, G.P., Churchill, G.A. (1978). Consumer socialization: A theoretical and empirical analysis. Journal of Marketing Research, 15(4), 599-609. Oliver, R.L. (1999) Whence consumer loyalty? Journal of Marketing, 63, (Special Issue), 33-44. Van Schaik, T. (2014). The psychology of social sports fans: What makes them so crazy? Sports Networker Retrived May 12, 2015 from http://www.sportsnetworker.com/2012/02/15/the-psychology-of-sports-fans-what-makes- them-so-crazy/, Zaichkowsky, J.L. (1985). Measuring the involvement construct. Journal of Consumer Research, 12(3), 341-352. Read More