Looking forward: a vision for sport marketing inquiry and scholarship.
Sutton, William A.
Introduction
Looking ahead and attempting to project what will take place in the
future is an inexact science, to say the least. To predict what scholars
may choose to research, examine, and write about is even more difficult.
Yet in this article I will attempt to examine the predicted trends in
sport marketing research that may be published in Sport Marketing
Quarterly and their possible effect on society and the implications for
sport, as well as some of the innovative educational programs in sport
business helping to prepare future scholars.
I recently wrote, "Sometimes it is the breadth of the topic
that gives it life, in other cases it may be the timeliness of the issue
at hand. In some other cases, like the farmer and the condition of the
soil, it may lay with the abilities and investigative skills of the
first author, who in an exploratory role, identifies and examines a
problem" (Sutton, 2012). In other words there are a variety of
factors in determining if any trend or practice is likely to become
popular or "trendy." Dr. James Canton, of the Institute for
Global Futures in his book, The Extreme Future, has identified the top
trends that will reshape the world in the next 20 years.
Many of these thoughts and projections have been written about and
even portrayed by Hollywood filmmakers. The list seems logical, although
a definite political undertone is present, as Canton has served as an
advisor to the three past White House administrations. Table 2 provides
a listing of what some of the top trends from the Canton table might
look at if applied to sport and also offers a glimpse of the problems
sport marketing scholars might wish to examine.
These are certainly fertile areas for scholars to examine,
speculate about, test, and observe. They may happen soon or they may
never happen, but futurists and trend monitors feel that they are likely
to happen in some shape or form.
Perhaps we need not look far into the future when seeking research
lines and areas of inquiry. There are a number of research issues still
in their infancy that offer very fertile areas for exploration and
robust data that is easily collected and managed. Let us examine some of
these areas and the possible research questions that could be explored
to illuminate some of the issues arising in these areas as they continue
to develop and become widespread.
Innovation and Weird Science: The Future of Artificial
Intelligence, Customer Profiling, and Social Media
Amazon.com and a number of other databases have for quite some time
engaged in developing customer profiles and predictive models as to how
past behavior can influence interest and to a certain extent predict
future purchasing behavior. The limiting factor thus far has been that
every purchase made becomes part of the profile. Thus if I purchase a
book for my wife, a special education teacher, on autism, that area is
automatically meshed into my profile, and instead of a profile built
upon depth it becomes one built on breadth even though the purchase did
not directly relate to me. However, according to Todd Defren,
"There is a day coming when consumers will be able to turn on/off
disclosure preferences from within their social profiles--or even their
browsers--to actively change their daily surfing and exploration"
(Defren, 2009, p. 1). Say, for example, Stella is interested in some new
yoga information. She can activate her profile via keywords like yoga
enthusiast and her travels across the web will reveal
'Yogacentric' advertisements and opportunities. But it could
also suggest menu items or places to eat the next time she logs on to
Yelp--all of the social networking sites would adopt the new profile
until that profile is changed to another topic or returned to its
original profile.
"Thus when we search and when we surf, beyond the Social
Network sites, we're going to be taking our Facebook friends with
us and we're taking our known online activities with us. Sites and
search engines will re-orient themselves dynamically to match our
identities. The entire web experience will re-architect itself on-the-fy
based upon where we've been, what device we are using, what
we've looked at or purchased in the past, who we are friends
with" (Defren, 2009, p. 1), what offers and content our contacts
have been sharing and purchasing, how influenced we are by offers and
the best offers to provide and so much more.
In terms of sport application, this may work to enable a sport
organization to have a 360-degree profile of consumers relating to what
they watch and how; what they attend and who they attend with; what
other sports they consume and in what manner; what they are likely to
read, do, and consume that day prior to arriving; and where they are
likely to go after the event is over. That is a staggering amount of
behavioral information that can attempt to be influenced by sport
organizations and the sponsors and media outlets that support those
organizations.
In terms of research agendas that could be developed, the list
might include:
* Demographic analyses of consumer behavior related to social media
utilization and sporting events
* Peer and group influencers within and outside of the social
network and their impact upon sport consumer behavior
* The monetization of social networks and the impact of advertising
messages in that medium
* The ethical issues surrounding online monitoring and
tracking--the implied obligation of virtual consent
* How Twitter and other forms of social networking can influence
consumer switching and buying behavior
* Online influentials (Aaker, 2005) and their role in influencing
and directing consumer interest, participation and purchasing decisions
Fueling the Future: Where Will the Money Come From and How Will It
Be Generated?
Probably one of the most interesting and misunderstood
revenue-generating areas in 2011 is ticket revenue--primarily the ticket
revenue derived from variable pricing and dynamic pricing as well as the
fees generated from paperless tickets and the reselling of tickets.
Variable ticket pricing (VTP) has been defined by Rascher, McEvoy,
Nagel, and Brown (2007) as "changing the price of a ticket to a
sporting event based on the expected demand for that event" (p. 4).
The different price levels can be determined by time of the year (low
interest, weather: spring vs. summer), day of the week (weekends vs.
weekdays), holidays (Memorial Day, Independence Day, etc.), the quality
of the opponent, (contender or non-contender on an elite team like the
New York Yankees), or a star or marquee player on the opposing team. So,
for example, when David Beckham began playing with the LA Galaxy, ticket
prices for a Saturday night game increased on account of the player and
the day of the week. As a result, the opposing team profited handsomely.
Dynamic pricing, according to Don Muret of the SportsBusiness
Journal, adjusts single-game ticket prices as late as the day of the
game through computer analysis of team performance, opponent, weather
conditions, day of the week, and gate giveaways.
Dynamic pricing is becoming the preferred option for several
reasons. Variable pricing is set before the season begins and thus is
not subject to changes in the market; purchasers are often upset because
while they pay a premium price for a premium game they do not have the
option of paying a significantly lower price for a very poor game, and
as variable prices are set for the entire season there is no opportunity
to capitalize on unexpected success on the field, record breaking
opportunities by opponents, and so forth. Thus, the flexibility of
dynamic pricing is the key. The recent growth in Internet-based
marketing has stimulated widespread experimentation with dynamic
pricing-- the practice of varying prices for the same goods over time or
across customer classes in an attempt to increase total revenues for the
seller (Levin, McGill, & Nediak, 2010). Sporting events are
perishable items, meaning there is no inventory once the game is played;
it is gone and so is the opportunity to sell it (Mullin, Hardy, &
Sutton, 2007), making the product even more appropriate for dynamic
pricing.
However, as one can imagine, the average fan or potential purchaser
has little understanding of variable or dynamic pricing. To avoid
confusing their fans, the Dallas Stars offered this explanation on their
website: "Similar to airline pricing, the best prices are often
found early. Dynamic pricing will provide fans with great prices
starting from the initial on-sale on Sept. 12. The upper level
single-game ticket prices can go up or down based on a variety of
factors, including league standings, opposing team, star players, day of
the week, and real time supply and demand. Dynamic pricing for upper
level tickets will continue all season. Fans will be able to check out
the current prices at any time at DallasStars.com" (Wyshynski,
2011).
Qcue is the main provider of dynamic pricing and has had a
significant impact on the sports world in a very short time. For the
past two seasons, the San Francisco Giants have used Qcue's
dynamic-pricing engine to emulate the secondary ticket market. Its
algorithms set prices for a given game by factoring in the pitching
match-up, opposing team, weather, day of the week, if the team's on
a winning or losing streak, and sales history (see Figure 1). The
Giants' revenue rose 7% last season as Qcue adjusted prices as the
team blossomed into World Series champs (Salter, 2011).
A related research agenda could introduce a variety of interesting
questions with huge implications for the sport industry:
* If applied to participatory sports with a high entry cost such as
golf and tennis, could dynamic pricing impact participation and in fact
alter the traditional demographics of the respective sport?
* How does the importance of home team performance impact the
utilization of dynamic pricing?
* Does dynamic pricing have a positive or a negative correlation on
the retention of season ticket holders?
* Are the principles of dynamic pricing applicable to collegiate
sport? To minor league sport?
* Will dynamic pricing be applicable and gain acceptance in sports
outside the United States such as the English Premier League?
* If dynamic pricing is more accepted when applied to perishable
products, what are some other areas where this can be applied and what
would be the potential financial impact?
The Preparation of Future Scholars, Researchers, and Practitioners
In examining these predicted future trends and identifying possible
areas of scholarly inquiry, we must also look at the opportunities to
produce scholars and how those scholars should be trained. At the
master's level, it is apparent that business schools are beginning
to emerge as a dominant force. More new programs are being created and
developed in business schools than ever before. Resources and their
availability along with endowments are responsible for this shift. The
Warsaw School at Oregon, The DeVos Sport Business Program at the
University of Central Florida, and most recently, The Mark McCormack
Sport Management Program at the University of Massachusetts-Amherst are
evidence of the funding opportunities that are plentiful in business
schools and colleges.
What should the curriculum include? Clearly, in business schools
the traditional MBA curriculum should include applied coursework in
sport marketing, sport law, and so forth. Non-MBA programs should create
an affiliation with the business school to offer a block of business
courses, especially in the areas of marketing, management, and finance.
All programs should include courses in research, statistics, and
business analytics, as this is the foundation for preparing students for
the jobs of the future as well as creating a sound platform for those
students who will elect to pursue a doctorate after completing their
master's program. The NBA takes pride in its marketing executives
understanding both the art and the science of marketing.
[FIGURE 1 OMITTED]
Electives should include coursework in social media, measurement
and valuation, business ethics, and multiculturalism and diversity.
Finally, there should be either through electives or designed into the
applied curriculum some type of capstone course that provides students
an opportunity to integrate what they have learned and apply it to a
situation or problem facing an industry segment. This is not a practicum
or an internship--those come later--but a problem-solving course that
utilizes skills and knowledge from the coursework to solve a problem.
Then there needs to be an opportunity to present that solution in a
real-world format.
A recent issue of Street & Smith's SportsBusiness Journal
featured a number of sport business management programs and their
capstone consulting courses. Bill King, the author of the column,
stated: "Long at the core of MBA programs at universities across
the country, the consulting project--students tackling a business issue
for a client much as a professional would--also is a prominent part of
the curriculum in many master's level sport administration
programs, and particularly those that offer MBAs" (King, 2011, p.
20). The previously mentioned programs at Ohio, Oregon, Massachusetts,
and UCF are not alone in recognizing the importance of such real-world
applied learning experiences for their students. Memphis, George
Washington, Iona, Northwestern, and Georgetown all have unique
consulting relationships with clients locally, regionally, nationally,
and even internationally.
The common denominator among these schools is the type of projects
that they are looking for. According to a consensus of the program
directors, the project must provide
* a solid multi-faceted learning experience that is mutually
beneficial for the students and the client;
* an opportunity to analyze a problem, and create recommendations
and alternatives;
* a chance to prepare a strategic analysis;
* an engaged client willing to provide access;
* an opportunity to apply knowledge from a variety of courses;
* a format giving the students access to present their findings and
recommendations to executives and engage in Q&A;
* meaningful evaluation and feedback to the students from the
client--possibly including a say in grading; and
* financial support to cover the costs of the project.
Glenn Horine, executive director of the Center for Sports and
Entertainment Studies at Iona College, sums up these thoughts by
stating, "I think it is very important on the graduate level that
it's not just what I call 'eye candy,' where you go and
visit the New York Yankees or Madison Square Garden. That's great
eye candy. But what does that mean from a practical application
standpoint for the student if they're a finance major in the
business school? Are they meeting the CFO? Is the CFO giving them a
meaningful project?" (King, 2011, p. 20). Table 3 illustrates some
of the types of projects and the clients these programs have developed.
Many of the programs and projects mentioned in this chart have made
arrangements for the participating organization to pay student costs or
even a fee or donation to the program. Fees/contributions have ranged
from $1,000 to $6,000. The fee makes the student team more accountable
and provides the organization with a tangible investment in the research
project and the outcome. But the opportunity to study these business
practices first-hand and to analyze and provide solutions will become
the rule rather than the exception among top-tier graduate programs
throughout North America and eventually the world.
I recently had a discussion with a student in a sales class who
questioned the future of telemarketing. When I asked him what he thought
could be the alternative he replied some form of social media. While I
am not sure I agree, I was excited to have a number of students join in
the discussion and begin creating their own alternatives to traditional
business practices by using technology and practices that are
commonplace in their daily lives and among their generational
counterparts.
The reason for bringing up these consulting projects in this
article is that not only does it provide some interesting insight and
experience for students who go on and pursue a doctoral degree, but it
also provides faculty with some relationships and access to investigate
some of these future trends, thus creating new, relevant, and meaningful
research agendas.
These new areas are very fertile in terms of content and offer
faculty and doctoral students a chance to "blaze their own
trail." Having access to the industry is essential in an applied
field. Research can be targeted to not only develop theory and add to
the body of knowledge but to solve industry problems by testing those
theories and approaches.
Where Do We Go From Here?
As a budding futurist I am often asked to provide my view of where
we might be headed. I have made predictions in the closing chapter of
all three editions of my textbook Sport Marketing, so here are my
thoughts and predictions about future sport business practices that will
involve academics:
1. The global nature of sport as well as our global economy will
impact educational degree programs. I feel it will happen in Europe
first with a double internship experience--one in Europe and one in the
US. As the majority of European graduate programs have an
English-speaking component it will be an easier transition for those
programs. But if the North American schools wish to participate as
equals, language requirements could and should become part of the
curriculum.
2. The online degree phenomenon will continue to grow at a rapid
pace as cost and convenience will outweigh interaction and experiential
elements. This will work very effectively for professionals wanting to
earn an advanced degree while not giving up their positions, but might
prove more difficult for individuals without work experience to find
employment after completion of the degree.
3. The need for more analytical coursework at the master's
level will become apparent as more jobs will require the professional to
have data interpretation skills as well as be adept at predictive
modeling, yield management, and so forth.
4. Given the current weak economy in the US and globally,
employment opportunities in sport will become even more competitive.
Internships will continue to be auditions, while competition for
internships--even unpaid internships--will be intense as the supply of
interested candidates far outstrips demand. Consulting projects like
those discussed in this article will serve a useful purpose in helping
an individual compete for an internship.
5. There has not been a time in my academic career where
academicians and their students were more valuable to the sporting
industry than now. Research and analytical skills including a variety of
forms of data analysis, modeling with logarithms, and so forth are
essential to the science of business. This should provide significant
opportunities for consulting projects, research projects, papers, and
potential funding. There are many problems to be solved as well as
alternatives to be identified and considered.
Conclusion
We have entered the much talked-about Brave New World and we must
continue to change, adapt, and grow if we are going to be successful
navigating that world. Academicians need to look outward rather than
just inward and become better integrated with practitioners in the sport
industry along with the opportunities and problems that are part of that
industry. In 2012 and beyond the world needs problem solvers and
leaders. Sport marketing scholars are positioned to take the necessary
steps. Here's hoping that they do.
References
Aaker, D. (2005). The future of marketing: A perspective from David
Aaaker. Retrieved from http://www.prophet.com
Canton, J. (2007). The extreme future. Penguin Publishing, New
York, NY.
Defren, T. (2009). The future of marketing. Retrieved from
http://www.prsquared.com/index.php/2009/11/future-of- marketing
King, B. (2011, August 15-21). Consulting 101. SportsBusiness
Journal, 2027.
Levin, Y., McGill, J., & Nediak, M. (2010). Optimal dynamic
pricing of perishable items by a monopolist facing strategic consumers.
Production and Operations Management, 19(1), 1.
Mullin, B. J., Hardy, S., & Sutton, W. A. (2007). Sport
marketing (3rd ed.). Champaign, IL: Human Kinetics.
Muret, D. (2010, August 16). NBA clubs adopt dynamic pricing.
SportsBusiness Journal. Retrieved from
http://www.sportsbusinessdaily.com/Journal/Issues/2010/08/20100816/
This-Weeks-News/NBA-Clubs-Adopt-Dynamic-Pricing.aspx
Rascher, D. A., McEvoy, C. D., Nagel, M. S., & Brown, M. T.
(2007). Optimal variable ticket pricing in Major League Baseball.
Journal of Sport Management, 21(3), 407-437.
Salter, C. (2011). The 10 most innovative companies in sports.
Retrieved from http://www.fastcompany.com/1738653/the-
10-most-innovative companies-in-sports
Sutton, W. A. (2012). What the future holds for sport marketing
researchers and scholars. In N. L. Lough & W. A. Sutton (Eds.),
Handbook of sport marketing research (pp. 419-426). Morgantown, WV:
Fitness Information Technology.
Wyshynski, G. (2011). Are hockey fans, scalpers ready for
'dynamic' ticket prices? Retrieved from
http://sports.yahoo.com/nhl/blog/puck_daddy/post/Are-hockey-fansscalpers
ready-for-dynamic-ti?urn=nhl-189394
William A. Sutton is a professor and associate department head in
the DeVos Sport Business Management Graduate Program. His research
interests include sport marketing, sales in professional sport, and
forecasting the impact of societal changes on sport.
Table 1.
Top ten trends that will impact the world 2007-2027 (Canton, 2007)
Trend Impact
Fueling the Future Post-oil future, the role of energy
alternative fuels and the impact on our
daily lives
The Innovation Economy Convergence of free trade, technology,
peace, security, and globalization
The Next Workforce The impact of multi-cultural and bilingual
employees on the traditional workplace and
productivity
Longevity Medicine Longer and healthier lives, and how those
lives will be spent
Weird Science Teleportation, nanobiology, and other
life-altering discoveries
Securing the Future Criminals, terrorists, mind control, and
other emerging threats
Globalization: Cultures Ideological battles looming based upon
in Collision past values, religion, and culture
Climate Change Global warming and its potential impacts
on life and geographic expectations
Future of the Individual The threats of technology, government, and
ideologies on human rights, liberty, and
personal freedom
Future of America and How these two destinies will shape the
China global future
Table 2.
Top Trends that will impact sport business 2012-2032
Trend Impact
Fueling the Future What are the funding sources that will be
utilized for new venue construction,
hosting mega sporting events such as the
World Cup and the Olympics, and running
the day-to-day business operations of a
sport franchise? Will US college sports
exist in an amateur format?
The Innovation Economy What new innovations will impact the
delivery systems for sport? Will these
innovations enhance or deter live
attendance at sporting events? How will
the Web continue to evolve and develop?
The Next Workforce Will marketing and promotional concepts be
developed and executed with a multi-
cultural audience as the target market?
Will employee recruiting reflect a
changing society? How much will technology
impact the types of work performed by
humans, and how many jobs will be lost due
to a more effective and economic
technological solution?
Longevity Medicine As consumers remain more active and live
longer, will 18-34 still be the most
sought-after demographic by sports
advertisers and marketers? What changes
and innovations will need to emerge in
sport venues to accommodate this older
audience? What new forms of sport will be
popular for participation among an older
population?
Weird Science In our current age of on-demand and
portability, what comes next? Will science
provide alternative healing and
regenerative products that will prolong
the careers of athletes and make
recuperation from injuries significantly
faster? Is there more than 3D? Will a new
form of transportation or teleportation
emerge that would make global professional
leagues a reality?
Securing the Future Will the threat of terrorism- both
international and domestic--alter the ways
that sporting events are played and
attended? Will venue designs be altered to
reflect the need for more security and
safety? Will this extend to commercial
recreational facilities, theme parks and
other attractions?
Globalization: Cultures Will soccer/football crack the big four US
in Transition professional sports (baseball, basketball,
football, and hockey)? What other sports
will be imported and exported? How will
this impact high schools and colleges in
terms of their offerings, and how will it
impact the development of playing fields
and other recreational spaces?
Climate Change Will the Winter Olympics be restricted to
a smaller geographic area because of
weather considerations during the schedule
of events? Will participation in skiing
and other winter activities decline due to
climate change? Will the ski industry and
other winter sports providers undertake
R&D to create new facilities and other
activity areas that can be climatically
controlled and enhanced?
Future of the Individual Will individual sports continue to grow at
the expense of team sports? Will the
individual demand more from a sporting
experience rather than solely spectating?
Future of America and Will the NBA China cooperative league
China succeed and be a model for other countries
to form partnerships? How will aspiring
global enterprises use sport to gain
market share internationally? How will
engagement marketing and activation change
and take on cultural nuances?
Table 3.
Graduate level sport business programs--Sample listing of client
consulting projects
College/University Client Project
Iona Major League Lacrosse, Demographic and
Dunkin' Donuts, and sponsorship analyses,
NASCAR licensing
George Washington Brazilian Olympic Sponsorship
Committee, Dominican activation,
baseball sustainability,
attendance, player
draft, and transition
issues
Georgetown D.C. United Organizational
effectiveness, multi-
cultural market
analyses, and
targeting
Massachusetts 47 Brand, Evoshield, Strategic analyses,
Turfdawgs brand positioning,
advertising, messaging
Ohio Washington Nationals, Sponsorship studies,
National Sports Forum, sales training
IMG College, Major academy, multi-
League Soccer cultural marketing,
Oregon Nike, adidas, Portland Feasibility studies,
Trailblazers, Seattle target market
Seahawks identification,
consumer profiling,
sponsorship analyses
Central Florida Madison Square Garden, Sponsorship
VF Sports, Coca-Cola, activation,
Chicago White Sox, GMR competitive analyses
Memphis Federal Express, St. Sponsorship research,
Jude Classic, Memphis ticket sales training,
Grizzlies and development
