KNES 483 Notes - Strategic Marketing Planning - External and Internal Contingencies PDF

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Strategic Marketing Planning - External and Internal Contingencies...

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Strategic Marketing Planning - External and Internal Contingencies ● Directions for the Ad topic presentation will be sent out via email (topic will be included) ○ You will receive an email through canvas documenting the directions ○ Reference the email ○ Go to a bookstore and find an ad that fits your assigned lifestyle category ■ Subscription based magazine (applied behavioral science) ■ Positioning statement (slogan related to the brand) ■ They are usually trademarked (things to explore and look for in your ad) ■ Ad must mention something about specific brand attributes ■ Ex; product description, what sets them apart form them ■ Do research on the brand category ■ Must also be a brand ■ Ex; Buick vs. Got Milk… Milk is a campaign not a brand ■ If there is no brand, then this is not a good ad ■ Color copy of the ad and the magazine ad ■ Skim the textbook advertisement chapter ● Learning Objectives ○ Demonstrate command of contingency framework for strategic sport marketing, as applied to Under Armour ■ External contingency ■ Internal contingency ■ SWOT Analysis ● Contingencies are things that happen outside of the company ○ Framework ■ Planning ■ Implementation ■ Control ● Under Armour ○ Founded in 1996 ○ Performance apparel ○ A moisture wicking technology ○ Slogans - Protect this House/ click-clack ○ CEO - Kevin Plank (Former football player ■ Created a new industry sector = performance apparel ● Competitive environment ○ What is a disruptor brand? ■ What challenges do they face? ■ Innovation? 1. Cotton is the enemy ■ Official sponsorships 1. Nike is the official outfitter of NFL and MBA ○ Direct Competition

■ Who is direct competition for Under Armour? Substitute products and Indirect Competition ■ What are other forms of competition for Under Armour? ■ Ex: Maryland Football - Washington monuments, other schools, other activities available to the consumers (limited amounts of time = opportunity costs) Technology ○ Product technology ■ What technology impacts athletic apparel/shoes? ○ Media technology ■ What's importance of media technology for Under Armour? Cultural and Social Trends ○ Cultural trends ■ What trends relate to sales/promotion of shoes/apparel? ○ Social trends ■ What social factors can influence shoes/apparel? ■ Ex; football head injuries, obesity (incentive based physical activity) UA in Europe ○ Sign deals with soccer and rugby teams UA in Japan Political, Legal and Regulatory ○ Political, legal and regulatory environment ■ States cutting funding to sports and physical education? ■ Why should sport marketers be aware of issues surrounding intellectual property (trademark)? ■ What part of the business would UA and other manufacturers need to be aware of post 9/11 ■ Kevin Plank (CEO) endorses Donald Trump and many speak out against him and the company 1. Sesquehanna Financial Group analyst Sam Poser - says that UA takes the stock from neutral to negative 2. Plank responds with a full page ad in the Baltimore Sun "Make Baltimore proud" - Crisis management 3. Port Covington Development 4. Impacted the brand nationally and personal view Demographic environment ○ General population trends ○ Aging of population ■ Baby boomers now the older people ■ Faces of the gym are young and fit when they should be older and rep. of clients ○ Ethnic population trends ○

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■ Hispanic/Latino sport preferences will change ■ Will become the largest consumer group ■ More people participating in soccer at the high school level ○ Migration patterns ■ Move more south/western corridor The economy ○ Macroeconomic elements (big) ■ What is the current national economic climate and has it impacted the sporting goods industry? ○ Microeconomic elements (targeted) ■ If women are becoming more career oriented and earn more, what does this mean for Under Armour? ■ Women going to college ■ People staying single longer ■ More discr. income from women 1. Statefarm uses target marketing (sponsor women's basketball teams) Internal Contingencies (what happens inside the company) ○ UA Vision ■ Based on their history, how did Under Armour demonstrate a vision for their business. ■ Performance apparel ■ Lifestyle categories expansion later ○ UA Mission ■ Mission statement ■ Has changed since its inception ○ Objectives and Marketing goals ■ Objectives (not quantified or timed) ■ Under Armour wants to be the leader in performance apparel market ■ Goals (short-term and measurable) ■ For example, UA wants to improve domestic sales by 10% in 2014 ○ Levels of Organizational strategy ■ Corporate level --- The conglomerate --- Under Armour ■ Business level --- The brands --- Men/women/footwear ■ Functional level --- Management --- Marketing or personnel ■ Operational level --- Marketing a brand --- Online sales or retail ○ Organizational culture ■ What are values/ identities of an organization? ■ Are managers Merely ex-coaches and athletes? ■ Are managers trained in business/marketing? ■ Is there ruthless focus on bottom line or more caring/pro-social atmosphere

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S.W.O.T. Analysis (Environmental Analysis) ○ Strengths (internal) ○ Weaknesses (internal) ○ Opportunities (external) ○ Threats (external) ■ Competition, Technology, Cultural/social trends, physical environment, political/legal/regulatory environment, demographics, the economy Reading on elms (Thursday) ○ The product - Lebron James Basketball Shoe, T Spectator thoroughbred racing, physical therapy ■ Be able to give a one sentence def. of marketing myopia ■ There is no mention for sport in the article Compare and contrast industry in the article ■ Make a parallel to the two things listed above ■ *Why 1 or more articles are an example of myopia and why, what would it be in those sports, how would you avoid them?

Research Tools in Marketing ● Marketing research ○ Need to understand that the sport consumer in terms of attitudes, values, lifestyles, and purchase/usage behavior. ■ Consumer's thoughts feelings and behaviors ■ *Media kit = profile of consumer behavior of viewers, readers, etc. - used to then send to other company and market your advertising ● Research is a process of ○ Collecting data ○ Analyzing data ○ Generating reports ● Marketing research process ○ Define "problem" (question of interest) ■ Client/sport organization helps provide background into their business and clientele ■ This information helps it establish objectives ■ Marketing research proposal is developed ○ Choose a research design (methodology) ■ Based on the nature of the problem a framework for research is created ● Data collection Techniques (Sources) ○ Primary data (sources) ■ Data collected to answer specific questions ■ Usually proprietary ○ Secondary data (sources) ■ Data already collected internally or externally that can still help answer research questions

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Secondary data sources ○ Government reports or documents ■ Census data or Surgeon General's report ○ Syndicated source data ■ ESPN Chilton Poll, IEG Sponsorship Report, SI Kids Study ○ Trade and Industry associations ■ Sporting goods manufacturers or NCAA ○ Academic sources ■ Books, journals, and websites Primary data ○ Qualitative data (method) ■ Provides more in-depth answers but less generalizable because it used smaller sample, not random and less structured question ○ Quantitative data (method) ■ More generalizable because it uses large random samples, standardized questions and statistical analysis of data ■ Most large companies use a mixture of the two ■ These methods can be used in secondary research as well Quantitative data collection ○ Surveys ■ Highly structured, uses large/random sample ■ Mail, telephone, mall/event intercept, internet ○ Information gathered in surveys (Constructs that relate to marketing) ■ Brand awareness (recall or recognition) ■ Brand image or attitude ■ Product category interest/involvement ■ Purchase behavior or intentions ■ Purchase satisfaction Classifying consumers ○ Activity level - spectator or participants ○ Usage - heavy or light users/viewers ○ Values - liberals or conservatives ○ Demographics - male or female Product and brand related issues ○ Purchase or attendance cycle ■ Seasonal or other usage/purchase patterns ○ Product category attributes ■ What features constitute core product/service ○ Brand image or brand attitudes ■ What consumer knows, thinks, and feels about br. Designing survey instrument ○ How are you going to administer (delivery form) ■ Influenced by what you want to know

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Content of Questions ■ Use of language/terms, what method is used Form of response ■ Open ended? Structures? How many answers? Sequence of questions ■ Can influence understanding or create bias Design/layout of questionnaire ■ Dummy proof: readable and not confusing Pre-test ■ Trial run -- make adjustments if necessary

Marketing myopia ○ When a company focuses on selling a product, rather than the needs of the customer ■ NIKE Lebron BB shoe ■ Railroad ■ Thoroughbred racing ■ Hollywood ■ Railroad ■ Physical therapy ■ Dry cleaners example ■ Treating rather than prevention...