Social Issues And Fan Engagement Strategies-Strengthening The Link

Social Issues And Fan Engagement Strategies – Strengthening The Link

Contents

TOC o “1-3” h z u Executive Summary PAGEREF _Toc376346951 h 11.0 INTRODUCTION PAGEREF _Toc376346952 h 11.1 Purpose of the case study PAGEREF _Toc376346953 h 21.2 Population of the survey PAGEREF _Toc376346954 h 21.3 Synopsis of the survey results PAGEREF _Toc376346955 h 22.0 Social Issues and Problems in Sports Marketing PAGEREF _Toc376346956 h 22.1 Cheating in Sports PAGEREF _Toc376346957 h 32.1.1 Drug Use in Sports PAGEREF _Toc376346958 h 32.1.2 Corruption of Officials and Judges PAGEREF _Toc376346959 h 32.1.3 Recruitment Violations PAGEREF _Toc376346960 h 32.1.4 Sports Gambling PAGEREF _Toc376346961 h 43.0 Possible Solutions for Social issues in sports PAGEREF _Toc376346962 h 53.1 Making Promotional Social Partnerships Memorable PAGEREF _Toc376346963 h 53.1.1 Corporate Social Responsibility Initiatives in Sports PAGEREF _Toc376346964 h 63.1.2 CSR Partnerships and the Sports Industry PAGEREF _Toc376346965 h 74.0 Fan Engagement Marketing Strategies PAGEREF _Toc376346966 h 94.1 Event Marketing Strategies PAGEREF _Toc376346967 h 94.2 Online Marketing Strategies PAGEREF _Toc376346968 h 104.3 Social Media PAGEREF _Toc376346969 h 104.4 Official Websites PAGEREF _Toc376346970 h 105.0 Conclusion PAGEREF _Toc376346971 h 11

Executive SummaryThis paper will review the various social issues such as violence and aggression in sports, spectator violence, cheating, drug use, corruption of officials, recruitment violations, and sports gambling and fan engagement strategies, and how they facilitate the strengthening of the link between the various stakeholders. Under this topic, the paper will also analyze various issues touching on sports marketing such as corporate social responsibility in the sports industry, promotion strategies and fan engagement strategies. It will also review cause-related marketing strategies in sports marketing and its impact. The paper will also incorporate various surveys to further support our arguments.

1.0 INTRODUCTION

Despite the market conditions and the global economy, the sports industry is one of the fastest and largest developing industries in the world. The major source of income for the sports industry is its fan base. With this in mind, stakeholders in the sports industry have adopted various initiatives to make sure that they become commercialized and increasingly internationalized. These initiatives include entrepreneurial marketing ventures within the sports industry such as progressive service sellers that help to complement the other leisure activities, (Bauer, Sauer & Schmitt, 2005). Sports’ marketing is a vital and critical aspect in the success of the sports industry. It includes both products and services important in the growth and survival of the industry. Sport marketing encompasses various aspects of sports including the teams, leagues, sponsors and the athletes (Ratten & Ratten, 2011, p. 614). The comprehensive analysis of the relationship among the various stakeholders improves the relationship structure in sports marketing. This paper will review cheating in sport, sports gambling and fan engagement strategies, and how it facilitates the strengthening of the link between the various stakeholders. The social issues discussed will be emanating from the survey that was conducted.

1.1 Purpose of the case study

This study sought to identify the underlying reasons for Australia’s involvement in sport-based CSR initiatives and the impact that it has on its fans. It will explore and attempt to understand the objectives and measures that are carried out by sport-based CSR initiatives and the impact it has on the fans.

1.2 Population of the surveyThe respondents were mainly white, with only two black people and one Indian. All were male with most of them coming from suburban areas and the city. With most of them being in their twenties and early thirties. It is on this basis that the survey conducted constitutes 10 respondents who were unique in their answers relevant to the survey questions. The sample size was based on convenience the sample size was 10 entities and 30 respondents. The initial sample of 13 respondents was contacts of the researcher and was mainly based on the accessibility and convenience. The other 17 were identified from snowball contacts from the initial pool of respondents.

1.3 Synopsis of the survey resultsThese results from the views of the respondents raised a couple of issues within what was reviewed previously. Most of the respondents showed that they had strong emotional attachments to the sports organizations. This can be seen in various instances in the interview. The close connection enhanced the loyalty levels of the respondents towards the sports organization. This was facilitated by the various social initiatives carried out by the company. These social initiatives created a positive goodwill towards the sports entity, leading the fans to hold the sports organization in high esteem.

2.0 Social Issues and Problems in Sports MarketingIn this section we will discuss some of the most common social issues that have dogged sporting activities across the world. There are a number of social issues that have significant impact of sports marketing. Cheating in sports and sports gambling negatively affect the beauty of sports and the spirit under which it is displayed. A sport is meant to be a social event that brings together people from all walks of life irrespective of race, language, color or country. These issues have negatively impacted the beauty of the game by incorporating cheating and violence. This has made it very difficult for marketers to advertise and sale their products and services

2.1 Cheating in SportsCheating in sports is the attempt to gain an unfair advantage using methods or techniques that are not allowed by the rules. Cheating can occur in different forms from drug use in sports to recruitment violations. This greatly hampers what most fans want to see in sports, which is to enjoy beauty of the natural game without the other team having an unfair advantage over the other. Most sports fans love to compare their teams with their competition and make an assessment of how their team will fair. Sports fans usually feel betrayed when cases of cheating are reported because it destroys the clubs reputation, (Aaron Garcia, 2013). In this section we will discuss some of cases of cheating in sports such as:

2.1.1 Drug Use in SportsWith the amount of money injected into sports, expectation levels of performance have been high and athletes are under a lot of pressure to perform day in day out. This causes some of the athletes to use banned substance to enhance their performance. This has been seen mostly in athletes, where even recently Asafa Powell is being investigated over claims of using a banned substance. Lance Armstrong the American cyclist was also stripped of his medals and accolades as a result of using performance enhancing drugs (Sky Sports, 2013).

2.1.2 Corruption of Officials and JudgesUnethical and corrupt officials and judges have been a problem in ever since games become commercialized entities. With vested interests from different quotas officials and judges have become susceptible to being bribed to make certain decisions. In the UK, Sports is considered the second most corrupt sector in their country, (Transparency international UK, 2011.)This can be seen in the 2002 winter Olympic Games, where Canadian skaters lost their medals through corrupt judging and were later awarded them back (Maennig, 2005).

2.1.3 Recruitment ViolationsThis simply implies the use of unscrupulous ways to get a certain athlete or player to play for a particular team. This happens mainly in terms of students who have shown great potential in a certain sport is tempted to join certain colleges or institutions using dishonest means, (Fox sports, 2013). These social issues have caused a lot of discourse in the sports industry. It has affected attendance of fans because it discourages them from participating. In America, many football teams have been finned heavily or put on probation by NCAA, for recruitment violations. This goes to show how prevalent this issue is especially in colleges (Fox Sports, 2013).

2.1.4 Sports GamblingSports’ gambling is a very addictive and threatens the existence of competitive games. This can be seen in instances where those who are responsible for the outcome of the contests are susceptible to bribery or match fixing. In most countries sports’ gambling is illegal because of its impact and other societal problems that are associated with it. The biggest concern in sports gambling is that it affects the integrity of the game, in that a lot of sports fans can run up huge debts. This has been seen in many high profile athletes and the general public too. For example in 200 in Singapore, two players, a goalkeeper and a defender were charged in court for receiving money from bookmakers, and they attempted to postpone games, in which they were supposed to play in the S-league games, (Maennig 2005, pg. 7). Many cases of corruption in sports are done with the aim of enrichment, and one of the principal reasons for rigging of matches is because of the lucrative sums of money in the sports betting industry which facilitates sports gambling, (Sports Accord, 2011).

Sports’ gambling has been enhanced with the recent technological inventions and developments, which has seen the increase in the number of online betting sites that is set up in such a way that they are independent from state control and regulations. Sports gambling can affect the integrity of the game in that for example, in the case of a tennis match a player can collide with the gamblers to lose the first set and take advantage of the improvement of the odds once the game continues, this happens especially in exchange and live betting, (Sport accord 2011, pg. 39). This has been a big impediment in many sports due to the amounts of money that are betted during these games. For teams that are not performing well, for example can collide with other teams to lose a match at a certain amount, to improve their odds in gambling. It is also important to note, that sport gambling is very addictive and some fans lose significant sums of money in the process of gambling. This affects fans in that the outcome of the game or match is already premeditated. This lowers the integrity and the beauty of the game, hence even the level of competition between the teams is not high and the games become boring for the fans.

An example of the effect of sports gambling can be seen in the case in Italy where managers, trainers and even players of a numbers of small football clubs in Series A league are alleged to have manipulated the results of their championship games in order for them to make betting profits from sports gambling, (Maennig 2005, pg. 4). In 2002, in Great Britain, horse racing jockeys used to manipulate the race results, by passing information concerning the horses to bookmarkers. In return for the information, the jockeys received “no lose” betting accounts from the bookmarkers, (Maennig 2005, pg. 6).

3.0 Possible Solutions for Social issues in sportsCheating in sports has had a significant impact on the attendance of the fans which is one of the major sources of income for most of the sporting organizations. The following sub-sections will look at the possible solutions of the social issues and problems that are affecting sports marketing. These solutions will help counter the effects of cheating in sports and help improve the attendance of fans and it can also help in getting new fans for the sports organization.

3.1 Making Promotional Social Partnerships MemorableMaking a promotional message memorable is not easy and a sports organization has to be innovative and creative in order to achieve this. The sports organization can use various mediums such as print, online media, cinema advertising and the television. The organization can also use sponsorship, sale promotions, public relations, personal and direct selling. Most activities within the increasingly competitive global market, involves forming alliances with charities or various causes (Grant, 2006). This is mainly in the form of various partnerships and sponsorships. This is done in order to suit the needs and issues of the various stakeholders and the surrounding society. This partnerships and sponsorships form a prominent feature in the marketing and strategic management plans. With the implementation of various visible corporate social responsibility initiatives such as implementing policies on green accounting, building amenities, school scholarships and supporting orphans are some of the few initiatives that an organization can consider. These initiatives can help sports entities influence and reach broader market, (Bartol et al., 2005). However, it is important for the organization to manage and control its relationships and image more effectively. Sports’ marketing has been able to make promotion of social partnerships and sponsorships memorable by undertaking various initiatives such as green accounting, building amenities, school scholarships and supporting orphans are some of the few initiatives that an organization can consider. These initiatives are meant to enhance the image of the sports entity and endear it with the stakeholders. Below are various ways it has achieved to do this through various corporate social responsibility initiatives:

3.1.1 Corporate Social Responsibility Initiatives in SportsSports organizations are faced with the obligation of giving back to the society from returns on investments made through product sales, exposure and positive associations. Sports have the power to influence members within a society to create an atmosphere and environment which makes it possible to contribute social capital, (Bartol et al., 2005). Sports managers can undertake to deliver social benefits by harnessing the ability to deliver on community and social objectives that have been set out. Sports serve as an avenue through which economic and social gaps are reduced and opens up opportunities to improve the quality of life, (Babiak et al., 2007). It also acts as a stimulus to initiate and encourage businesses the sharing of profits made (McClusky, 2005, p. 300). Some of the main features of sports corporate social responsibility include:

Social interactions

Sustainability awareness

Cultural understandings and integration

Youth appeal and

Encourages positive health impacts

Corporate social responsibility plays a fundamental role in the general outlook of sports organization (Broomhill, 2007, p. 14). An example of a sports organization that has invested heavily on charitable causes is the Arsenal football club, which is situated in North London. Arsenal is well known for its charitable contributions across north London with various initiatives such as, Arsenal and save the children, to take care of this needs of the needy and children within north London, (Keown, 2013).

Sports and Event Impact

The environment is considered a very important stakeholder in the sports industry. The construction of sports facilities or the staging of major event has significant impact on the environment. During the 2012 Olympic Games, the London organizing committee set strict measures in regard to “green issues” in relation to the event and its potential impact of the environment (Gorman, 2007, p. 8). This can also be seen in the case of Manchester City – the club invested heavily on wind turbines around the stadium, to address issues touching on the environment. Similarly, in 2006 the organizing committee of the American Super Bowl planted trees in Detroit to address environmental concerns that arose with the hosting of the event in the city.

3.1.2 CSR Partnerships and the Sports IndustryThe sports industry has been involved in various partnerships to address CSR. The industry has a superior fan base, hence has significant message power and marketing power that partnerships, causes and charities can take advantage of. This can be seen in various instances such as in the NFL (National Football League) where the CSR activities are held in high esteem. For example, the organization partnered with United Way where they helped to raise $4 billion, to help increase awareness on public services issues in the USA, (Wilner, 2008, p. 21). These initiatives can also be seen in sports manufacturers such as Adidas, who are involved in various programs and foundations. For example, in America they have a “earn your stripes” scholarship program, which aims at helping the less fortunate in society to access higher education

3.1.2.1 Community Involvement

Community is considered as an important stakeholder among sports organizations. This is mainly because the organization and the community enjoy mutual benefits. Sports involvement in initiatives aimed towards the community are seen in many causes –related activities (Wilner, 2008). This can be seen specifically in the case of NBA CARES initiative, where it encourages NBA teams to contribute towards the New Orleans community after the hurricane Katrina hit.

3.1.2.2 Safety and the Sports Industry

While it is important for sports organizations to create partnerships for charitable causes, they have to recognize their responsibility to provide safe environments to their fans. This can be seen in the case of Nike, where they had been various issues concerning its poor working standards in developing countries. This led to a transformation with Nike leading investigations into these allegations to save face (Hussain-Khaliq, 2004, p. 104). This can also be seen in the case of FIFA where it conducted an investigation on Pakistan’s sports saga over allegations of child labor. This forced the organization to ban child labor form its practice.

3.1.2.2 Cause-Related Marketing Strategy

Over the last decade, the number of organizations that are implementing this kind of strategy has been on the rise. More and more organizations are embracing cause-related marketing strategies, to improve relationships with the various stakeholders. This form of strategy is gaining popularity among fundraisers in the promotional pool and marketers. Cause related marketing is a means of addressing societal issues and problems through the provision of resources and the achievement of marketing plans and objectives (John, 2006). CRM aligns itself with societal issues and the organizational goals and objective. Cause related strategies are distinct from sponsorships. Cause related marketing is mainly constituted but the firms’ contribution to a certain cause that is linked to its customers and is engaged in transaction leading to revenue production in the sports organization. Cause related marketing strategy is referred to as the formulation and implementation activities that are normally characterized by the organization paying a premeditated amount to a designated cause, in the event that customers are engaged in exchanges that produce revenue that satisfy the organizations objectives, (Irwin et al., 2003, p. 136). Corporations that engage in charitable causes and efforts increase their competitive advantage in the business environment in which they operate in. The main drivers for cause related marketing strategy in sports marketing include:

Improving relationships with their surrounding communities

Build and maximize on the goodwill that it generates

Generating income for the sports organization

Creating a sense of pride for the consumers

the fulfillment of philanthropic obligations and the benefitting a cause

The increasing popularity of cause related marking programs is attributed to the integration of organizations’ sponsorships in sports marketing strategies. Cause related marketing campaigns incorporates sports sponsorships and partnerships that help the sports organizations to interpret behavioral responses to corporate good doing (Irwin et al., 2003, p. 136). The main goal for this is to develop and reinforce brand associations with the organization. This can lead to three possible outcomes:

The consumer loyalty towards the organization is improved

The consumers will re-allocate expenditure on entertainment and sports offerings

It will also create an improved perception of the sports organization.

This strategy presents the confluence of perspectives in various fields such as the promotion mix, fund raising management, public relations, marketing for non-profit making organizations corporate philanthropy and corporate social responsibility. Cause related marketing (CRM) is the culmination of business interest with organizational philanthropy CRM is a marketing program that that is enhanced by two objectives a worthy cause and the organizations’ performance (John, 2006). This incorporates the linkage between the raising of funds for a worthy cause and the purchase of the sports organizations products and services. CRM is a core competitive imperative that can be used by sports organization to further their plans and objectives. It can also be used to enhance, nurture and build on the sports organizations reputation. Sporting organizations campaigns on CRM are effective in influencing brand affinity which in turn helps in the building of the brand equity (Demetrious et al., 2009, p. 3). It is also a good way of supporting charities and good causes within the community. In the event that prices within a particular industry are equal, CRM encourages consumers/fans to switch from what they are used to and be associated with something bigger (Demetrious et al., 2009, p. 3). CRM helps improve in sporting brand reputation, by providing the company with good reviews especially in through the media which is a very effective way of disseminating information.

CRM is a very important component in a sports organization because it is based on higher values, which are long-lasting and rise above the changes in global market. An example of cause related marketing strategies include, the commercial organizations linking their products and services and contributing a portion of their revenue to a cause. FedEx St. Jude Classic PGA Tour golf tournament is the culmination of St. Jude’s hospital and FedEx which is an annual golf event. FedEx benefits through naming rights and television coverage. Sporting organizations should take advantage of this strategy to help curb or minimize the effect of the negative social issues and problems that are facing it. In doing so, it will help in addressing this business and social issues, (Lachowetz & Irwin, 2002).

4.0 Fan Engagement Marketing Strategies4.1 Event Marketing StrategiesThe most important aspect for a sports organization is that it wins. It is of paramount importance that the sports marketers make sure that they create a positive environment in which the fans are excited about. It is vital for sports teams to utilize this perspective of service quality towards their spectators in the sporting event (John, 2006). This will ensure that they enhance their capabilities in terms of increasing the attendance of the fans. This is seen mainly in the fact that teams that usually perform well have sold out tickets and their stadiums are usually filled to capacity, this compared to teams that do not perform well and have problems with the numbers of fans in attendance in their stadiums. The team selection and identification process also has a significant impact on the overall service quality that is provided which is directly related to the levels of satisfaction among fans.

4.2 Online Marketing StrategiesOnline marketing strategies for sports organizations mainly involve two factors, the social media and official team websites. Online marketing is a dynamic field and is rapidly growing and evolving. Sports organizations should create team websites where they can engage with their fans actively (John, 2006). It is important that these sporting organizations have a clear social, media strategy for them to be able to attract new fans and keep existing ones entertained, with an aim of a long term relationship with the fans. Sports organizations can use this platform to spread positive message or information about teams and to advocate the traditions and beliefs that the organizations hold. This can act as a powerful tool of marketing if used effectively.

4.3 Social Media

With the invention of social media, sports organizations are using this platform to enhance the level of fan-team engagement. Examples of these include MySpace, Twitter, Facebook, LinkedIn and YouTube. Other media include blogs, chat rooms, fan communities and discussion billboards. With the increase globally in the use and popularity of the social media ensures that sporting organizations can reach people from different geographical areas at one go. Social media sites provide a platform in which is more frequent, quicker and deeper interactions between the sports organization and the fans. Organizations taking advantage of this new technology creates a closer and more intimate relationship with the fans, (Pronschinske et al., 2012).

This helps to foster a relationship between new and existing fans through this medium. Social media helps to create an all-round day to day brief of the events happening around the team. This helps to facilitate traffic and interest in the team. Sports organizations also use these medium to enhance their attendance by hyping up upcoming game, (Sashi, 2012).

4.4 Official Websites

Many professional sports teams have an official website in which they use to disseminate information to their fans all over the world. With the invention of social media the intensification of the fans enthusiasm and passion towards the teams that they support has increased. Sports organization also use interactive web sessions to increase traffic in their sites, the opportunity of engagement with their star athletes builds on team-fan relationships. The websites should have relevant and new content that will ensure that customers frequently visit the site. This is mainly enhanced by having an interactive website that encourages engagement with the fans, (Ioakimidis 2012). The two most important factors for organization to consider during the development of an official website are opportunities for user interaction and media related content. Media related content includes pictures, videos and match highlights, for example. The identification of the consumers’ wants and needs is important in the creation of effective online strategies will give the organization an opportunity to use these as a tool for e-commerce. This helps enhance the sale of shirts or accessories that the sports team have in their disposal, (Sashi, 2012).

5.0 ConclusionThis paper has reviewed the social issue and fan engagement strategies, and how it facilitates the strengthening of the link between the various stakeholders. This case study has looked at social issue such as violence, cheating and gambling in sports. It has narrated how this has impacted the sport in terms of the attendance and how sports fans follow the club’s activities. This paper has also analyzed possible solutions that can be used to counter these social issues and problems and neutralize its effect through various strategies such as fan engagement strategies, event strategies, cause-related marketing and CSR. The paper has also looked into the results from the interview by analyzing the results and supporting it using the issues discussed.

Case Study Questions and Answers

Who are the relevant players?

The relevant players in sports marketing include the sports organizations, the sports fans and sports marketers.

What are The Social Issues or Problems Facing Sports Marketing Today?

Some of the major issues facing sports’ today is the issue of cheating and gambling, has had a very significant impact in the perception and attendance of the fans in support of their teams.

How does the problem affect other elements of the situation?

Cheating in sports affects sports marketing significantly in terms of the attendance levels during matches or when games are played. It also affects the brand and reputation of the sports organization.

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