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TEST 1

FACULTY: FACULTY OF SPORTS SCIENCES AND RECREATIONS (FSSR)

PROGRAM: BACHELOR OF SPORTS MANAGEMENT (HONS.)

PROGRAM CODE: SR241

COURSE: SRB455- SPORT MARKETING MANAGEMENT

NAME : MOHD ALZAIRUDDIN BIN MAININ (2015955727)

SUBMITTED TO:

EN. MOHAMMAD ALI BIN KIMIK

SUBMISSION DATE:
5th SEMINAR
(22 DECEMBER 2019)
TABLE OF CONTENTS

Contents Page Number

QUESTION 1 3-5
(Consumer-supplier Relationship model)
QUESTION 2 6-9
(Marketing exchange process)
QUESTION 3 10-12
(Sport marketing researches)

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QUESTION 1

Explain four (4) categories of sport product as discussed in the Consumer-supplier Relationship
model. Cite an example for each category.

Sport and recreation organisations are service organisations, and ensuring that the quality of
services meets the expectations of customers must be a high priority of those who manage the
organisation. Failure to attain this objective leads to a diminished reputation and competiveness in
the market place, and a consequential loss of customers. Consumer-supplier relationship in sport
industry are :

1. Sporting events

 Sporting event coordinators responsibility in arranging every detail involved in

preparing for an event. Event planners coordinate with teams of varying sizes to
guarantee that every aspect of the sporting event is under control.

 Coordinators are involved in preparing lodging for the team, purchasing

transportation, distributing team news to the media, creating emergency contingency
plans, maintaining the security of spectators and players, inspecting the facility,
marketing ticket sales, setting concession items, and delegating preparation tasks to
other workers.

 Sporting event coordinators must plan carefully to keep venues operating efficiently
and minimize wasted expenses.

 Basically these type of sport product purchased byan professional athletics and sport
arenas.

2. Sporting goods

 Sporting equipment, also called sporting goods, has various forms depending on the
sport, but it is essential to complete the sport.

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  The equipment ranges from balls, to nets, and to protective gear like helmets.
Sporting equipment can be used as protective gear or as tool used to help the athletes
play the sport.

 Over time, sporting equipment has evolved because sports have started to require
more protective gear to prevent injuries. 

 Sporting equipment may be found in any department store. By providing licensed

merchandise, collectibles and memorabilia, sporting goods become one of the most
important services in all sport programs.

3. Personal training for sports

 Personal trainers typically work at gyms and health clubs, helping the general public
improve their level of fitness.

 Athletic trainers, on the other hand, are most often found at colleges, hospitals,
clinics and professional sporting teams, helping patients or clients recuperate from
injuries.

 Personal trainers evaluate a person’s fitness level, and then come up with an exercise
regimen to improve the individual’s health, weight and even nutrition.

 They also teach clients how to perform exercises properly and motivate them to push
through their current level of fitness.

 Employers typically prefer to hire candidates with professional certifications.

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 4. Sports information

 Sport and Recreation organisations provide information internally and externally for
a variety of reasons including:

I. Information to the public on events and programs, what's on and where

II. Rankings and records

III. Historical information about the club, the sport and the participants

IV. Information for government funding agencies and sponsors on progress with
goals and objectives

 Information may be provided by web sites, fax back services,

telephone, brochures and publications.

QUESTION 2
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Explain marketing exchange process as a tool for successful marketing strategy. Support your
answer with an appropriate example.

A marketing exchange happens when two parties trade goods or services to each other to satisfy
their respective needs or wants. Exchange marketing describes the basic process of a company
offering a good or service of value to a customer willing to buy it. Relationship marketing involves
intentional efforts to convert one-time buyers into long-term, loyal customers. several methods are
gaining successful marketing strategy using the marketing exchange process which are :

1. Customer Value

 Customer value is the ratio of benefits for the customer to the sacrifice necessary to obtain
those benefits. The customer determines the value of both the benefits and the sacrifices.
Creating customer value is a core marketing exchange of many successful firms. Customer
value is rooted in the belief that lower prices are doesn't mean the quality of the service also
low. A business that focuses on the cost of production and price to the customer will be
managed as though it were providing a commodity differentiated only by price. In contrast,
businesses that provide customer value believe that many customers will pay a premium for
superior customer service or accept fewer services for a value price. It is much better to use the
marketing exchanges as marketing strategies based on customer relationships and service,
which are harder for the competition to replicate.

 For example, Airasia Airlines doesn’t offer assigned baggage, meals, or in-flight movies.
Instead the budget carrier delivers what it promises wich is the most lowers fare compare to the
other airline company. In “service value” surveys, Airasia routinely beats the full-service
airlines such as Malayisa Airlines and Malindo Air, which actually provide passengers with
luxuries such as movies and food on selected long-haul flights.

2. Customer Satisfaction

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 Customer satisfaction is the customer’s feeling that a product has met or exceeded expectations.
Expectations are often the result of communication, especially promotion. Utilizing marketing
exchanges to identify specific expectations and then crafting marketing strategy to meet or
exceed those expectations is a major contributor to success for an organization.

 For example, before Zhejiang Geely Holding Group, owner of Volvo Cars, bought a 49.9% of
proton shares. Perodua consistently wins awards for its outstanding customer satisfaction.
Malaysian motoring journalist Paul Tan surveys car owners two years after they make their
purchase. Its Customer Satisfaction Survey is made up of four measures that each describe an
element of overall ownership satisfaction at two years: vehicle quality/ reliability, vehicle
appeal, ownership costs, and service satisfaction from a dealer. Perodua continues to lead the
local car industry and has been Malaysian's top-ranked vehicle for five years in a row.

3. Total Customer Experience

 Loyalty ultimately builds through a sequence of strong, favorable buying experiences through
the marketing exchanges. As your customers get more and more accustomed to your quality,
service, and value, their emotional attachment grows. Emotionally-entrenched buyers often are
willing to sacrifice to buy from you. This sacrifice may involve spending more money than
competitors charge, driving out of their way to find you and even waiting in line for service.

 For example, you are an owner of a most famous yellow noodles restaurant in town, experience
buying yellow noodles from the same yellow noodles supplier's will build a strong loyalty for
your restaurant in continuing the demand of yellow noodles supplies from the same supplier.
This happens because of your experiences in the marketing exchange process between your
restaurant and the yellow noodles supplier. Although the price offered by the yellow noodles
company's may slightly differ or expensive from the other suppliers the consistency in service,
fast delivery, the quality and unique taste of the yellow noodles are the keys to delivering a
quality customer experience for your restaurant to get supplies from the same company.

4. Implement a Loyalty Program.

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 Strengthening your business relationship with a customer is one of the most valuable benefits in
the marketing exchanges process. Although it isn’t always easy to craft an effective loyalty
program, you’ll benefit from substantial customer engagement if you do.

 The most important thing is ensuring that your loyalty rewards program is genuinely attractive
to your customers and provides real value. You can use a loyalty program in your relationship
marketing strategy to incentivize a variety of behaviors, so it’s important to first think about
what your company needs.

 Depending on your goals for the program, you can reward customers for any number of things.
For example, in the process of marketing exchanges AEON CO. (M) BHD. The modern
retailing industries in Malaysia introduce their AEON member cards for their customers to
provide loyalty programs and encourage a consumer to continue purchasing with them. The
AEON member card is a points-based rewards card where you get one point for every RM1
spent. This card can be used for discounts and points collection at AEON stores and Pasar Raya
MaxValu. From the member's card, Aeon gives discounts and privileges such as the Touch ‘n
Go and rebates. These marketing exchanges processes show that Aeon has been successful in
its marketing strategy marketing.

5. Driving the Exchange

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  Much of the initial advertising a company generates is intended to create brand awareness
and identify a clear value proposition for targeted customers. In general, consumers only
make purchases when they believe a good or service is worthwhile or offers benefits worth
the price charged. In your advertising, you want to promote the quality, service, price or
other attributes that separate your brand from competitors. Once you get the customer in
front of the door, you can focus on a marketing exchange.

 A lot of toothpaste brand in the Malaysian local market, but have you realize why Colgate is
the most leading choices in the oral hygiene industry. The key factor towards success in this
marketing strategy is the right marketing exchange strategy as well as the distribution and
product quality. Leveraging the mass media, Colgate creates an advertisement in the form of
education and health in mass media to persuade consumers or audiences to consume their
products. Effective advertisement by Colgate not only educate consumer how important
Colgate brand for your oral health but also to ensure that targeting customer aware of the
Colgate presence in the market. A consumer can easily differentiate the Colgate brand with
the other competitor brand such as Darlie, Sensodyne, etc. In all these points, Colgate has
maintained its lead because of the effectiveness of its marketing exchanges process.

QUESTION 3

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Sport marketing try to define the problem or opportunity and determining what information will be
needed to make strategic marketing decision.

Discuss four (4) approaches how does sport marketing researches define or identifying problems
and opportunities?

Market research is the process of determining the viability of a new service or product
through research conducted directly with potential customers. Market research allows a company to
discover the target market and get opinions and other feedback from consumers about their interest
in the product or service.

Market research consists of a combination of primary information, or what has been gathered by the
company or by a person hired by the company, and secondary information, or what has been
gathered by an outside source. Four approaches that can be use to identifiying problems and
opportunity :

1. Market Characteristics:

the characteristics of your target market. You need to consider all aspects that drive your
different customers to purchase. Your customers on the west coast are going to have
different purchasing behaviors than those from the east coast. Recognizing these differences
between subcultures, and meeting the needs of those differences, will help your business’
marketing strategies succeed.

2. Market Potential:

An estimate of your product’s potential profit. If you research how consumers might react to
advertising or price changes in your product before you take action, you will be better
prepared and market to your consumers more accurately.

3. Market Share:

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 Percent of total product sales compared to your competitors. Market share gives you an
estimate of the amount of market your company holds and can give you an idea of how
you compare to your competitors. It also can reveal some of your competitors' capabilities
and strengths, so you can develop an appropriate strategy.

5. Market Potential problems

The following research options will help to solve potential problems or capitalize on
opportunities identified by the company:

 Distribution Research: determining where your product should be sold and how to get it
there. Distribution Research helps you plan the best way to get your product from the
manufacturer to the retail shelf. In addition to deciding which retailers should carry your
product, you should determine where your inventory will be held.

 Market Segmentation:

Grouping customers by similar backgrounds or similar purchase behaviors. Utilizing

problem-solving research can determine how to most accurately accomplish this and even
how to design advertisements to attract those groups. You will need to collect both
qualitative and quantitative data to accurately understand your market segments.

 Pricing Research:

Determining the ideal price for your product. Setting the price for your product is one of the
most important marketing steps. You need to keep the customer in mind as well as
remember that the main goal is to maximize your profits. Consider whether or not customers
can be gained through lower prices. Can you maximize profit through increasing price? How
sensitive will your customers be if you begin slightly increasing price? All aspects need to
be well thought-out. Researching customer’s reactions to price sensitivity is essential.

 Product Research:

Testing your new or revised products or completing test marketing. Researching secondary
data or observing how your products will be used can allow you to effectively compete in
the market. Testing different components can identify new products or discover ways to
modify existing products, for example, updating a product to compete with newer products.

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Using research for problem identification and problem solving is essential when you want to make
your company the best in its market. Classifying your problem should always come before
attempting to solve them. Otherwise, you might be spending money to solve the wrong problem.

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