Tuesday, September 27, 2011

"Smart Ball: Marketing the Myth and Managing the Reality of Major League Baseball"

From the Journal of Human Kinetics


Review by Kyle Park in KIN 332 (Section 2)

The articles main focuses are the powers possessed by the MLB and how they used those powers to market and manage. The article was a critique, itself, from a book that was written about how the MLB uses and abuses its powers. The article broke down the book into 4 sections: First Base: creating power, Second base: developing power, Third base: abusing power and Home plate: balancing power.

The two powers brought up in discussion are soft and hard power. Soft power is the ability to accomplish objectives through attraction rather than force or intimidation. Hard power tends to be more military or economical in form. Both of these powers are vital in the ins and outs of the MLB. In certain situations there can be more emphasis on one power over the other and that decides how the situation at hand is handled and whether it will produce a positive or negative outcome.

The article touches on marketing in a couple different areas, one being the history of baseball in America. It seems that there has had to be a mythological background to baseball being Americas sport and Cooperstown being the home of baseball. The MLB, to keep its audience, markets baseball’s history in the US on our own soil. In doing, this spectators and audiences continue to participate with the same passion. The myth side of the MLB enables them to use hard and soft powers in managing and marketing the game.

The article also touched on abusing power. This had to do with the marketing strategies towards international players and the different tactics used by the MLB to acquire talent at lower cost in an effort to increase profit. These actions have emphasis on hard power strategies while at the same time attracting talent through its soft power mythology and appeal.

The final topic looked at in the article is the balancing power or global marketplace. The MLB has taken some steps to begin a global MLB world. Baseball in the Olympics was a solid effort to globalize. Also, the World Baseball Classic has had continued success and hopes to continue to globally bring baseball together. The MLB overall seeks to become a smart power leader in developing an increasing network of global affiliations and games to increase its profitability and appeal.

The article was written well to portray and give good examples of the powers in the MLB and the ways the MLB uses these powers. It gave the reader an understanding of the factors impacting the MLB’s management strategies and marketing decisions.

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Review by Tommi Nissinen in KIN 332 (Section 2)

Smart ball is an article, which reviews a book called Smart Ball: Marketing the Myth and Managing the Reality of Major League Baseball written by Robert F. Lewis II. In the article, the author, Ted B. Peetz, highlights the most important parts of the book, and focuses on examining the use of “smart power” in Major League Baseball.

According to the article, smart power is the hybrid of two distinct techniques – the hard power and the soft power. The hard power refers to the use of force and intimidation and can be seen as more military or economic in form. Soft power, on the other hand, refers to a more gentle approach, which tries to attract its audience through attractiveness and unique appeal rather than force and intimidation.

Smart power tries to combine these two techniques in order to fully maximize the strengths of both models in order to achieve set goals. The article reveals how baseball has utilized soft and hard approaches in the past, and how its recent trend of shifting towards the combination of these two has affected its marketing strategies.

The article introduces four separate aspects of baseball:
1. Baseball as a sport
2. Baseball as a domestic monopoly
3. Baseball as a neocolonial power
4. Baseball as an international business

In the first aspect, baseball as a sport, the author focuses on how baseball has been, and still is, marketed as America’s national pastime. This is an example of the use of soft power in marketing the sport in America. It is an attempt to create patriotic ties between the sport and its audience. Recent trends, such as building what the author calls “retro-ballparks”, ballparks that try to capture the feeling of older playing fields, are a marketing approach, which goal is to create nostalgia in the target markets, and ultimately create more revenue and profit for the organizations that are involved with sport.

The second aspect, baseball as a domestic monopoly, attacks baseball’s “unique legal status as perhaps the only sanctioned private monopoly in the country”. Here, the author reveals the use of hard power in baseball by giving an example of how the lack of competitive pressure has given the MLB the possibility to ignore “both marketing and production opportunities that could have broadened and strengthened its position in the broader sports entertainment world”. The author also points out how baseball has successfully combined soft and hard powers by harmonizing its cultural and commercial strategies.

The third aspect, baseball as a neocolonial power, focuses on examining how the sport has been, and still is, exploited as a profitable business. An example the author points out in the article is acquiring talent at lower cost in an effort to increase profits. This almost automatically leads to questioning the higher morals of the organizations involved. What are they willing to do in order to make higher profits?

Finally, the fourth aspect, baseball as an international business, introduces different ways the sport has been, and is still, marketed overseas towards new market groups. According to the article, MLB has worked hard on keeping baseball as an Olympic sport. This would allow them to reach new audiences, more crowds, and therefore higher profits. However, marketing baseball globally has only one very big problem – the effort to create an image of America’s favorite pastime can easily backfire when reaching for new markets overseas.

Monday, September 26, 2011

"Revolutionizing the Market: Innovative Electronic Branding Strategies within NCAA Athletic Departments"

From the International Journal of Sport Management

Review by Patrick Pelletier in KIN 332 (Section 2)

The article I chose to read was titled Revolutionizing the Market: Innovative Electronic Branding Strategies within NCAA Athletic Departments, and was published in the International Journal of Sport Management. This article describes a very scientific approach to get a better idea of the electronic strategies that Division I athletic departments use to build brand equity.

The importance of brand loyalty is simple: the stronger the brand loyalty among consumers, the more likely it is these consumers will remain fans even while the team or school is struggling to win. That is why researchers Cooper, Ross, and Southall conducted this survey-style research. They wanted to know what athletic administrators were doing to build a brand electronically. The researchers sent out surveys to 64 athletic departments representing all 11 FBS conferences. The survey consisted of 16 Likert-type questions, in which the administrators were asked to indicate which strategy they thought was most useful in today’s industry on a scale of 1 to 6. For example the mean response for the relevancy of using video broadcasts on department websites was a 5.32 (1 was strongly disagree, 6 was strongly agree). The results showed that for department websites, administrators felt that using video broadcasts was the most effective (5.32) and that the use of message boards was least effective (3.03). The researchers also found that video sharing (4.53), text messaging (4.49), and social networking sites (4.47) were effective tools used by athletic departments when dealing with independent technologies.

These results were not surprising to me because of the constant desire for information in the sporting world. Video broadcasts online are a great tool, and I think most universities utilize this by uploading highlights and interviews, or even streaming live game footage. However, I am somewhat surprised that the numbers from the independent technologies section were not higher. Sites like Facebook and Twitter are used by universities on a daily and even hourly basis, and I think that adds a lot of value to their athletic departments. For example, JMU uses Twitter very effectively by updating followers with game updates, and news about current and former athletes. As a consumer I value that kind of information and it adds a little more loyalty to the JMU brand.

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Review by Brent Henchen in KIN 332 (Section 2)

In “Revolutionizing the Market: Innovative Electronic Branding Strategies Within NCAA Athletic Departments” by Coyte Cooper, Stephen Ross, and Richard Southall these men set out to quantitatively determine the importance of electronic media on college brands. They wanted to give the sports world some guidance as to what marketing vehicles to use since “several scholars have emphasized the importance of the realization of strong brand equity for sport organizations looking to maximize their financial endeavors.” Brand equity is the primary goal of many sports marketers. Increasing the positive connotation associated with a brand will in turn increase sales. “Researchers in the business field have illustrated that strong brand equity is directly correlated with the following consumer benefits: enhanced product value, improved purchase intention, and immunity to product-associated crises.” This carries over to increased immunity from declining sales when a team is underperforming. According to Gladen & Funk, 2001, “Scholars have expanded on pervious findings when explaining that consumers with a strong brand loyalty are more likely to remain fans when a team struggles from a performance standpoint.”

Since “investigating brand equity in web or Internet contexts is a relatively new research area” these three men decided to take it upon themselves to do some substantial research in this area. They sent out survey invites to NCAA Athletic Departments and ended up with 64 participants. All the participants were asked to identify, on a scale of 1 to 6, “the e-branding strategies that are most relevant in today’s competitive entertainment industry.” The strategies were divided into 2 groups: Department Websites and Independent Technologies. In the Department Website category participants were asked to rank the following: video broadcasting, audio broadcasting, podcasts, newsletters, blogs, interactive chat, interactive fan poll, and message boards. In the Independent Technologies category the vehicles ranked were: video sharing, text messaging, social network sites, podcasts, blogs, twitter, and message boards. The research found that when talking about department websites video & audio broadcasts were the two most important marketing ploys and the message boards were the least important strategies. For independent technologies the most important marketing ploys are video sharing and text messaging; with the least important category being message boards, again.

This research can increase the workload for sports marketers but also prevent a ton of headaches. Message boards are hard to police and are usually dominated by fans with extreme views. But if this data is taken as truth, sports marketers do not have to worry as much about message boards anymore. Unfortunately, now the fun starts in trying to make text messaging, video, and audio broadcasts current and plentiful. Video and Audio broadcasts take more effort to create than texts but do not need to be numerous. Texts messages, on the other hand, require minimal effort but need to by abundant.

Looking at the statistical analyses I was a little disappointed. I appreciate the work they put into the research but a few things pop out at me. Why did they interview the marketers and not the consumers? Wouldn’t interviewing a consumer tell you exactly what influences their image of a brand? Also, why did they use a scale 1-6? I always try to use an odd number so that responders can choose “neutral/neither.” The last problem I had with the result is the random p-values. Where did they come from? No hypothesis was being tested so there shouldn’t be a p-value to test for statistical significance. The p-value is the percent chance that you falsely rejected the null hypothesis. So, in order to have a p-value you must be comparing an expected value against an observed value. In the research paper there was no expected value or expected mean for the grading system. They simply observed and measured the values without guessing what the result would be. Therefore, I cannot determine why there is a p-value associated with the mean value in each category. Communication with the authors would be the only step to solving this problem.

"Honda Renews As Official Vehicle Of NHL In U.S."

From The Big Lead


Review by Ryan Stewart in KIN 332 (Section 1)

Honda has teamed up with the NHL again and renewed the contract of being the official car of the NHL. This also gives them the rights to a lot of promotional events at events such as the NHL All Star Game and the NHL Awards. This contract will continue to give Honda a lot of exposure, especially being the only automotive partner of the NHL. They will have reserved areas within NHL arenas that will help them promote their vehicles, as well as on-ice promotions. Most NHL rinks can fit around 15,000 fans which is a great deal of people to expose a product to. Taking into account 41 home games a year for each team, the exposure is phenomenal. Renewing this deal seems to be vital to the success of Honda as a leading automotive company.

Honda seems to have a well thought out plan as to why they are trying to market themselves through the NHL. They have found the right demographic they are looking for as Honda’s brand manager Tom Peyton explains. The NHL is also a very loyal and passionate fan base, which in return could help continue the success of Honda. Many fans stick with their teams throughout everything, and if Honda can convince them to buy a vehicle they may continue to stick with that brand in the future. The NHL fans are somewhat of a secluded demographic, they have a set fan base that stays loyal. I don’t see this market very hard to penetrate. I think this because the demographic is “young, affluent, and educated”. When I think of Honda I feel that the style of the cars they make definitely match the demographic. Honda is making a good choice by hooking up with the NHL.

The NHL is a great business and has many opportunities to help Honda be successful for the remainder of their contract. After the NHL lockout, the league seems to be revamped and exciting. Every year the NHL receives more and more exposure, which in return exposes Honda. All in all, this is a good move by Honda to team up with the NHL and they should see a continued success within this market.