Introduction to Sport
Marketing
Lecture 4:
Sport Marketing Opportunities
Lecture 4. Overview
Identify the key activities required to identify sport
marketing opportunities.
Explain the elements and purpose of a SWOT
analysis.
Conduct a macro and micro environmental analysis.
Describe the process and importance of a competitor
analysis.
Identify some of the introductory issues associated
with market research, including its application and
importance to identifying marketing opportunities.
Principle 4.1: The Sport Marketing Framework describes the four
stages of sport marketing.
Stage 1. Identifying Sport Marketing Opportunities
Stage 1. Identifying Sport Marketing
Opportunities
Important to conduct preliminary research and analysis in
order to make sensible marketing decisions

What
What
What
What
opportunities exist in the marketplace
competitors are doing
a sport organization is good at doing
consumers actually want
Three forms of analysis:
1. Analysis of internal and external environments
2. Analysis of the market and consumers
3. Analysis of the organization
These three forms of analysis are conducted at approximately
the same time
Analyse Internal and External Environments
Analyse Internal and External Environments
The internal environment refers to the unique
circumstances of the sport organization for which
the plan is being developed
The external environment refers to the
marketplace in which a sport organization operates
Tools used for analysis
1. SWOT analysis (with external environment analysis)
2. Competitor analysis (including the Five Forces analysis)
Principle 4.2: The first step in identifying sport marketing
opportunities is to analyse the internal and external
environment using the tools of SWOT analysis and
competitor analysis.
SWOT:
strengths, weaknesses, opportunities, threats

Examines the strategic position of an organization
from the inside (strengths and weaknesses) and the
outside (opportunities and threats)
Look for no more than five factors under each of the
four headings
SWOT Guidelines
Strengths
• resources (e.g. financial, staff, volunteers)
• skills (e.g. talents of management, staff and
volunteers)
• advantages (compared with competitors)
Weaknesses
• lack of resources (e.g. financial, staff, volunteers)
• lack of skills (e.g. amongst management, staff and
volunteers)
• disadvantages (compared with competitors)
Opportunities
• favourable situations in the external environment
• weaknesses of competitors
Threats
• unfavourable situations in the external environment
• unfavourable trends in leisure and entertainment
External Environments of a Sport
Organization
The SWOT analysis should consider each of these environments
The Macro External Environment
The SWOT analysis should consider the macro external environment
The Sport Industry (Micro) External Environment
The SWOT analysis should consider micro external environment
Tool 4.1. SWOT and External Environment Analysis:
A SWOT analysis examines the strategic position of
an organization from the inside (strengths and
weaknesses) and the outside (opportunities and
threats).
The OT part of the analysis should include an
assessment of the macro (broad), and micro (sport
industry) external environments.

The macro external environment is made up of the
political, economic, legal, technological, social and
physical environments.
The micro (sport industry) environment is made up of
Media, Finance, Staff and Members, Commercial,
Government and Leagues, and Public groups.
Competitor Analysis: Types of Competitors
In addition to the SWOT, the second way to analyse the
internal and external environments is through a competitor
analysis
Dimensions of a Competitor Analysis
Dimension
Description
Geographic Scope
What region or location do they operate in?
Is there geographical overlap?
Mission and Vision
Do they intend to maintain their current market position?
Do they have a vision to change their situation?
What are their ambitions for the future?
Objectives
Their short to medium term goals.
Market Share and Position
Are they a small player, a medium player or a virtual
monopolist?
Strategy
What methods are they using to gain an advantage over
their competition?
Resources
Amount and availability.
Target Market
Who are their products and services marketed to?
Marketing Mix Approach
The products and services they offer, the promotions,
pricing and distribution strategies they use.
Five Forces Analysis
Tool 4.2. Competitor and Five Forces Analysis:
When conducting a competitor analysis, be aware of the
three types of competitors: immediate/direct competitors,
secondary competitors and indirect competitors.
The dimensions of a competitor analysis include:
geographic scope; vision, mission and objectives; market
share and position; strategy; resources; target market; and
marketing approach.
It is also advisable to conduct a Five Forces Analysis which
addresses:
1) the intensity of rivalry amongst industry competitors
2) the threat of new entrants into the marketplace
3) the threat of substitute products in the marketplace
4) the bargaining power of buyers
5) the bargaining power of suppliers
Analyse the Organization
Principle 4.3: The second step in identifying sport marketing
opportunities is to conduct an analysis of the organization.
This requires four tools: the Mission Statement; Vision
Statement; Organizational Objectives; and Stakeholder
Analysis
It is necessary to understand the purpose, aims
and goals of the sport organization, in addition to
the needs of its stakeholders.
These four tools will help to identify appropriate
sport marketing opportunities.
The four tools for organisational analysis
Tool 4.3. Mission Statement: This statement reveals the
purpose of an organization, why it was created, what
services and products it provides, and to whom they are
provided.
Tool 4.4. Vision Statement: A written record of the desired
achievements for an organization in the future.
Tool 4.5. Organizational Objectives: A statement of the
targets that must be reached in order to make the vision a
reality.
Tool 4.6. Stakeholder Analysis: This involves assessing the
diverse agendas of all individuals, groups, and
organizations that have an interest in the sport
organization.
Analyse Market and Consumers
Market Research
Who are the sport organization’s customers?
What do these customers need and want?
In what manner and how often should customers
be contacted?
Which marketing strategies elicit the most
favourable responses from customers?
What responses will each type of marketing
strategy elicit?
What mistakes have been made?
Example – Genworth Financial
Applications of Market Research
Principle 4.4: The third step in identifying sport
marketing opportunities involves acquiring
information about the sport market and consumers
through market research.
Market research involves collecting two kinds of
information: quantitative (numerical), and
qualitative (non-numerical).
Tool 4.7. Quantitative Market Research: Involves collecting
numerical information through a survey or questionnaire.
Should be used when the organisation already knows
something about its customers and would like to refine this
knowledge.
Tool 4.8. Qualitative Market Research: Involves collecting
non-statistical, but in-depth information through interviews
and focus groups, suggestions boxes or complaint analysis.
Identifying sport marketing opportunities
We have now looked at the three
forms of analysis used to identify
sport marketing opportunities
But what is a sport marketing
opportunity?
Principle 4.5: A market opportunity is a situation
where a new or modified product or service can be
introduced that meets an unfulfilled sport consumer
need.
Tool 4.9: Product-Market Expansion Grid.
Provides a summary of the opportunities available for
‘selling’ a particular product or service.
Highlights four possibilities:
1) Market penetration (marketing the existing product to
additional consumers in the target market)
2) Market development (marketing the existing product to
an expanded target market)
3) Product development (marketing to the same consumers
with a new version of the product or service)
4) Diversification (marketing a new product to a new target
market)
Product-Market Expansion Grid
Principles Summary
Principle 4.1: The Sport Marketing Framework describes the four stages
of sport marketing including identifying sport marketing opportunities,
developing a sport marketing strategy, planning the sport marketing mix,
and implementing and controlling the sport marketing strategy.
Principle 4.2: The first step in identifying sport marketing opportunities is
to analyse the internal and external environment using the tools of SWOT
analysis (with external environment analysis) and competitor analysis
(with the Five Forces analysis).
Principle 4.3: The second step in identifying sport marketing
opportunities is to conduct an analysis of the organization. This requires
four tools: the Mission Statement; Vision Statement; Organizational
Objectives; and Stakeholder Analysis.
Principle 4.4: The third step in identifying sport marketing opportunities
involves acquiring information about the sport market and consumers
through market research. Market research involves collecting two kinds of
information: quantitative (numerical), and qualitative (non-numerical).
Principle 4.5: A market opportunity is a situation where a new or
modified product or service can be introduced that meets an unfulfilled
sport consumer need.
Tools Summary
Tool 4.1. SWOT and External Environment Analysis
Tool 4.2. Competitor and Five Forces Analysis
Tool 4.3. Mission Statement
Tool 4.4. Vision Statement
Tool 4.5. Organizational Objectives
Tool 4.6. Stakeholder Analysis
Tool 4.7: Quantitative Market Research
Tool 4.8: Qualitative Market Research
Tool 4.9: Product-Market Expansion Grid