In marketing, the distinction between sponsorship, patronage and charity is somewhat blurred. This confusion appears to be amplified when applied to a sport marketing context as each concept is often used interchangeably. This inability to distinguish the three concepts can also create problems for sport organisations. The organisations may not be gaining the intended benefit from sponsorship, patronage or charity as the wrong type of agreement was entered into. This post will define each term and provide you with some examples to further explain the difference between sponsorship, patronage and charity. 

SPONSORSHIP
Sponsorship involves a 'reciprocal relationship' between the sponsor and the entity being sponsored. This means that both parties to the transaction obtain a benefit, usually of commercial significance. Resources, services or money are commonly exchanged to achieve this goal. The San Francisco 49ers, a NFL team, recently signed two sponsorship agreements in relation to their new stadium. One agreement was made with Citrix Systems (who will become the 'mobile workspace technology partner') and another with United Airlines (who will become the 'official airline partner'). Citrix will obtain the benefit of having a boardroom and business centre bearing their name at Levi's Stadium. Additionally, United Airlines will get the naming rights to the largest corporate suite space at the new stadium. In contrast, the 49ers will receive a healthy sum of money from the sale of this sponsorship inventory.  

PATRONAGE

On the other hand, patronage involves the act of supporting a particular group of people or organisation that has been specifically selected by the patron. The intention is to promote the work of such groups and ensure they have the resources to continue with their work. Historically, the wealthy were considered to be 'patrons of the arts' if they offered their support to painters, musicians, sculptors and other artists. In sport, the concept can also be applied. The Kirra Surfriders Club consider patrons to be "individuals who have provided long term support over an extended period of time but who may not have ever been a member of the club. The role of Club Patron is part promoter of the club and its members and part supporter of the club's activities and ongoing success."

CHARITY
Lastly, charity is the act of helping those in need by providing aid through money and/or volunteering. In 2013, the AFL had an arrangement with the Australian Red Cross where this organisation would be the official charity partner of the preseason competition. This partnership was described as the following: "As well as match day fundraising, the partnership will also provide a national platform to increase awareness of the work of the Red Cross through the AFL and AFL stakeholder promotional vehicles including online, radio, print, PR and match day promotions."

Maslow's Hierarchy of Needs is a theory that aims to illustrate the motivation behind human behaviour. The needs are divided into five main categories: physiological, safety, love/belonging, esteem and self-actualisation. The categories are depicted in a pyramid shape in order to reflect which needs are basic for survival (positioned closer towards the base of the pyramid) through to complex needs (positioned closer towards the apex of the pyramid).   

Physiological needs are the most essential for humans to survive. It involves necessities such as food, water and sleep. A step up from this category is safety. Safety comprises of needs that are also vital for survival. However, fulfilment of these needs comes from feeling secure through employment, shelter and health. Once these survival needs are met, according to Maslow, humans desire a sense of love and belonging. This is found in sexual intimacy, family relationships and social ties.

As we move further up the pyramid, we begin to see what needs are important once survival and social needs are met. It is clear that self-esteem, a sense of achievement and respect (both of others and by others) becomes integral in motivating human behaviour. Following on from these more complex needs, is self-actualisation. Self-actualisation suggests that people need to feel self-aware and conscious of their personal growth to further motivate behaviour.

In a sporting context, fulfilling social needs is one of the most important categories. Sport has the ability to make people feel as though they belong to a team and are accepted by others. As a result, marketing can use this notion in an attempt to connect with consumers. For an example, see my previous post which shows how the Collingwood Football Club successfully use a sense of belonging in order to sell their brand. 

MASLOW'S HIERARCHY OF NEEDS DIAGRAM:

This blog post includes three video clips. They will help demonstrate generic, brand and indirect/direct demand in marketing.

GENERIC

The following is a video of the advertising campaign released by the Australian Football League (AFL) for the 2009 Premiership Season. Importantly, the campaign is a clear example of generic demand in marketing. This is so, as it intends to sell the sport as a product in itself. The video cleverly depicts the way in which the sport of Australian rules football encompasses many of the skills needed to play a wide variety of sports. For example, the vertical leap needed in the ruck contest is similar to that in basketball. The speed of AFL players can be compared to horse-racing, and the one-handed fend-offs prevalent in the NFL can be mirrored in the Australian sport. Further, the physicality, creativity and evasive moments needed to play AFL are all showcased by using comparisons to boxing, ice hockey and bull running. Overall, the video aims to depict the uniqueness of the game to illustrate how the sport is "in a league of its own", as the tagline suggests. 

BRAND

The following is a video of an advertising campaign released by the Collingwood Football Club for the 2012 Premiership Season. Collingwood's brand message is made very clear throughout the advertisement. It uses drama and the notion of unwavering loyalty to polarise consumers. On one hand, the advertisement persuades Magpies fans to purchase memberships in order to show their commitment to the club. This is so, as the "us against them" theme unites fans. It fosters a strong connection where supporters are inspired to solidify their bond with the club. On the other hand, the campaign also illustrates an acute awareness of how they are perceived by the rest of the competition. By adding this antagonistic angle, it further divides people into two categories: Collingwood supporters and Collingwood haters. Ultimately, the club's brand is clearly reiterated to consumers. 

INDIRECT/DIRECT

The following video was released by Turkish Airways in 2013. It depicts two internationally   identifiable athletes: basketball icon Kobe Bryant and soccer star Lionel Messi. The video titled 'Selfie Shootout' uses the popularity of the two athletes to indirectly market Turkish Airways as a premier airline to consumers. This is done through a friendly rivalry where both Bryant and Messi try to outdo one another by taking 'selfies' in exotic destinations all over the world. For example, the athletes take pictures in Moscow, Beijing, Cape Town and Istanbul, then send the images to one another. Each location is a destination that Turkish Airways fly to, ultimately persuading consumers to also "widen their world": just like Bryant and Messi. 

In my previous post, entitled 'Dan Migala: Getting Creative To Sell Sponsorships & Ticket Inventory', I summarised his five-point framework for innovate sponsorship and ticketing revenue generation. In this post, I will outline the three key messages I took away from Dan's presentation at the 2013 Sport Is Fantastic Conference. 

1. LEARN FROM YOUR FAILURES

Dan discussed how worthwhile it is to look at your biggest failures and learn from the experience. He encountered a problem when he tried to propose that the foul pole in baseball could be converted into a giant Stanley tape measure. However, before he could begin his presentation, he learned that tape measures were amongst Stanley's smallest revenue earners. This example illustrates that Dan had the right idea to look at the foul pole as a piece of sponsorship inventory, but it was the wrong audience to market the concept to. Yet, by understanding that his idea failed due to the lack of an innovative new product to showcase, Dan could approach a different brand such as Taylor Made; a leading golf equipment manufacturer. Therefore, Dan's lesson on learning from your failures is a valuable one. It forces you to revaluate and think differently about your initial concept. 

2. FOCUS ON YOUR OBJECTIVE

In a world where sport is financially lucrative and showing no signs of slowing down, having a revenue-driven mindset can pervade the thinking of many sport marketers. One of the main takeaways from Dan's presentation is that your core objective should be your focus. Revenue will be bound to follow once you stay true to your idea. I believe that there is a valuable lesson here than spans beyond the Avis example Dan discussed in his speech and the revenue psyche. It also can relate to fan engagement vs followers in a social media context. Sporting teams should focus on engaging fans and interacting with them on social media platforms, rather than aim to have a certain number of followers. A simple favourite, retweet or reply truly engages fans. Followers will then be a by-product of such interaction. 

3. BE GENUINE

Personally, there is nothing worse than feeling as though you are being sold something. The more obvious the hard sell is, the less likely potential consumers will respond to what is being communicated to them. Dan made it clear that having an authentic ideas resonates more strongly with consumers. This is something that sport marketers can take away from his presentation in order to communicate their product or service more effectively. 

This post is a summary and review of Dan Migala's talk 'Getting Creative To Sell Sponsorships & Ticket Inventory' which he presented at the 2013 Sport Is Fantastic Conference (Melbourne, Australia). 

BACKGROUND

Dan Migala is the Co-Founder of Property Consulting Group and the monthly marketing newsletter, The Migala Report. He began his career as a journalist, writing stories that covered various business aspects of sport. His work centred on ticket sales, promotions, sponsorship and innovative marketing ideas. Soon after, Dan evolved into a sponsorship consultant who has worked with clients such as Cricket Australia, the San Diego Padres and Major League Soccer teams.

Dan's presentation at the 2013 Sport Is Fantastic Conference focussed on a framework for generating non-traditional revenue strategies for both sponsorship and ticket inventory. Through the use of anecdotes, he was able to illustrate the importance of developing creative strategies. 

Dan began with a story that led him to evaluate his idea generation process. The convenience store 7/11 approached clubs in the Chicago area willing to sponsor a team that most accurately reflected their values. Dan, who was working alongside the Major League Baseball team, Chicago White Sox, posed the following question: If you owned 7/11, how do you get the message across that you sponsor the White Sox? From this initial line of questioning, Dan woke up one morning at precisely 7:11am and came up with the idea to change game times to 7:11. They successfully sold this idea to the convenience store chain for three times the original price. Further, the six minute delay allowed the broadcasters to fit in more commercials and the food and beverage partners to sell more product. When an intern asked how did this sponsorship work beyond the kitschy nature of 7/11, Dan developed the five virtues needed to thing creatively in revenue generation. They included emotional connection; moments of truth; enhance, don't interrupt; authenticity; and revenue is a result, not an objective. This post will provide an explanation of the five terms and the possible affect that such a framework can have on sport marketing in Australia.

EMOTIONAL CONNECTION

Dan reinforced the notion that marketers must try to emotionally connect with their fan base. The Cedar Rapids Kernels, a grass roots Minor League Baseball team, had an advertiser in the University of Iowa Children's Hospital. In the community, a young child had severed part of his leg in a farming accident. This tragedy and the child's subsequent recovery was front page news in the local newspapers. To create an emotional connection between the fans and the University of Iowa Children's Hospital as an advertiser, Dan and his team proffered the idea of inviting the child to do an honourary run around the bases. This aimed to celebrate the child walking again and the inclusion of the hospital leadership as team members celebrated how the staff nursed the child back to recovery. The idea was a success as it made the front page of the newspaper and it was the lead story on the news broadcast. The University of Iowa Children's Hospital now has the largest sign at the ball park and make up the largest ticket purchasers. Thus, this emotional connection illustrated instead of told the target market (parents) how the hospital gives children world class care. 

MOMENTS OF TRUTH
Secondly, Dan proposed that marketers need to create a truthful connection between what you are selling and what the audience is receiving. Once again, Dan used an example to illustrate this virtue. The Major League Baseball team, Kansas City Royals, sold family packs for Sunday games. This pack included two adult tickets, two children tickets and four free drinks for a price of $39. This product was a loss leader. One evening, the Royals' management staff went to a Denny's Restaurant and saw a sign which read 'Kids Eat Free on Sunday'. This concept, by a 1-2% margin, was Denny's highest revenue earner. The Royals had a moment of truth that they were lying to themselves by marking to a traditional family of four. Instead, their goal was to get more children to the games. As a result, they switched the family pack to 'Kids Eat Free on Sunday'. This allowed them to charge the full price for children's tickets and parents subsequently paying more for additional treats such as cotton candy. This revelation resulted in 6000 children attend the games, as opposed to the 500 family packs previously sold.  

ENHANCE, DON'T INTERRUPT
From Dan's presentation, it was made clear that people should never feel as though they are being sold something by sponsors. Instead, the sponsor must be a part of the passion inherent in sport. Kelly Services, a recruitment firm, was a non-traditional brand that sponsored the Omaha Royals. As the Royals wanted to be inside the school system, an intern suggested that a child could become the CEO of the team for a day. This presented the perfect opportunity for Kelly Services to partner up with this initiative by running resume workshops with the children and choosing the winner. By creating a concept that the company would invest in, the sponsorship idea enhanced Kelly Services' business objectives. The success of the child CEO initiative lead to front page news stories and the lifecycle of the promotion continues to this day. 

AUTHENTICITY
Building on the 'enhance, don't interrupt' virtue, it is imperative that marketers communicate a story that is authentic not contrived. By using the New York Yankees as an example, Dan was able to show the importance of such a concept. The Yankees had an airline partner who paid exorbitant amounts of money to be aligned with one of the world's biggest sporting teams. Originally, signs and PA announcements were used to market the airline partner at baseball games. However, research illustrated that the recall on the Yankee's airline partner amongst their premium baseball attendees ranked fifth out of only five options. It was clear that they were off-message and needed to appeal to their high net-worth travellers in a more effective way. As a result, a fan engagement concept was developed where frequent flyer miles could be used as a form of currency at Yankee games. For example, 100,000 miles could be redeemed to meet your favourite player or throw out the first pitch. An immediate spike in their target audience was reached once this initiative was established. Ultimately, by looking at the travel behaviours of the premium Yankee fans, it is evident that the authenticity of the idea played an important role in resonating with the consumer. 

REVENUE IS A RESULT, NOT AN OBJECTIVE
Lastly, Dan emphasised that marketers must stay true to the brand. If this is done, revenue will follow. For example, Gatorade do not have signs around stadiums. Instead, their orange coolers are placed near athletes as the sports drink is intended to serve athletes. Gatorade's success can be attributed to staying true to their brand. Another example can be found with Avis and their sponsorship of the New York City Marathon. The Avis Chairman's message was 'We Try Harder'. At the marathon, Avis had 50 teams representing the 50 states. These volunteers helped individuals, such as the blind and disabled, to run the race. Therefore, it is clear that Avis' objective was to show people the lengths they will go to help others and try harder. Revenue generation was not the primary focus. 

IMPLICATIONS FOR SPORT MARKETING IN AUSTRALIA
Marketing departments for sporting teams in Australia, big or small, can use these five virtues as a framework for generating innovative sponsorship and ticketing ideas. Currently, many professional Australian sporting teams have family packages that cater for a traditional family of two adults and two children. Although such packages can serve a purpose, it does not accurately reflect the composition of families in today's society or those wanting to go to a game. As a result, the marketing departments could reevaluate their product offerings so as they too can have a 'moment of truth'. They must look more broadly at the objectives of the family packs in order to develop an effective and creative way to facilitate such goals.

Additionally, in Australia, sporting teams have a strong focus on revenue generation as opposed to larger objectives. It is recommended that sport marketers make emotional connections to truly appeal to their consumers. Some teams, such as the Collingwood Football Club, do attempt to these make emotional connections. For example, Peter Gourlay, a 4-year-old cancer patient, was made President for a day this season. However, there is an opportunity to partner this initiative with a sponsor to raise further awareness of the hospital or the illness in itself. 

Overall, Dan's five-pronged framework should be at the forefront of every sport marketer's mind. Not only does it provide you with clear steps, it also forces you to revaluate both successful and unsuccessful marketing strategies. As a result, you can learn from these experiences to give yourself the best chance of succeeding in the future.  

In one of my previous blog posts, I analysed how Lucozade rebranded their product over the last 40 years. In the late 1980s, Lucozade utilised UK athlete Daley Thompson as a spokesperson in one of their television advertisements. This is arguably one of Lucozade’s most well-known advertisements as it helped launch the product as a sport energy drink.

For this post, I thought I’d give you all a little insight into the athlete that is Daley Thompson.

Name: Francis Morgan Ayodélé ‘Daley’ Thompson

Date of Birth: 20^th July 1958

Place of Birth: Notting Hill – London, England

Nationality: British

Sport: Decathlon

Club: Essex Beagles

Olympic Games Medals: 2x Gold (1980 – Moscow, 1984 – Los Angeles)

Commonwealth Games Medals: 3x Gold (1978 – Edmonton, 1982 – Brisbane, 1986 – Edinburgh)

World Championship Medals: 1x Gold (1980 – Helsinki)
Honours: MBE (1982), OBE (1986), CBE (2000)

How would you describe the current pricing strategies used by the GWS Giants?

The current pricing strategies used by the GWS Giants reflect the relationship between supply and demand for their product. The GWS Giants are the newest team to enter into the AFL. In addition, the club has been established in the traditionally rugby-dominated state of New South Wales. As a result, the high substitutability of their sport product for other products from Rugby League and Rugby Union teams means that the GWS Giants are experiencing more supply than there is demand for their memberships. Therefore, the pricing reflects this need to stimulate demand for their product. In order to create more demand, the marketing department at GWS Giants have three tiers of memberships on offer: Ultimate, Giant and Reserve. Within each category, subgroups of memberships are on offer such as Adult, Concession, Junior (under 13 years), Family (2 Adults + 2 Juniors), and Pet Membership. Overall, it is evident that the GWS Giants have taken into account demand/supply issues, pricing strategies of competitors and marketing mix constraints arising from product mix and place dependence. 

Consider the GWS Giants’ new stadium. What pricing objectives could you develop for the team to reflect its ‘new place’?

It is necessary that GWS Giants look to maximise shareholder value to capitalise on the unique viewer experiences that Skoda Stadium offers. The stadium has undergone an upgrade and refurbishment in recent years. As a result, stadium attendees have access to members’ bars, fan zones, facilities and features such as the largest video screen in the Southern Hemisphere. Thus, GWS should look to maximise sales growth as a long term pricing objective by having lower membership pricing options. In doing so, they can sell their sport product to as many customers as possible who will then experience the features and experiences that Skoda Stadium has to offer. Ultimately, this experience will encourage consumers to repurchase tickets in the future.

How would you make sure the price set is not too high or too low?

To ensure the price of GWS Giants tickets are not too high or too low, the marketing team will need to implement a strategic pricing process. After setting some organisational goals, they will first need to determine market sensitivity to price by looking at supply and demand, as well as factors that determine price elasticity (such as substitutability of the product and the proportion of income spent on the product). Moreover, the GWS Giants marketing team must conduct research into the pricing strategies of major competitors in both rugby codes and soccer. After doing so, it is necessary to determine possible constraints by researching the product mix and place dependence.

How can the new objectives support other elements of the GWS Giants’ marketing mix?

In particular, the new objectives can support the promotion component of the GWS Giants’ marketing mix. By combining strategies such as sales promotions, advertising and personal selling, the club can communicate to consumers how their sport product can satisfy consumer needs. If the promotional strategies are implemented correctly, it can influence whether the consumer choses to purchase a GWS Giants membership over another substitutable product on offer from rugby codes or soccer.

Develop a pricing strategy for a range of membership (individual and corporate) packages for the GWS Giants, including a timeline for launching memberships for the new season.

Determine pricing goals: Firstly, the GWS Giants must set clear goals for their organisation. It is recommended that the club take a long-term view of maximising the profits from their sport product, rather than focussing on current financial performance. By concentrating on increasing the potential for sales growth, the GWS Giants can aim to sell as much of their product possible. This would mean that the price must reflect affordability and a lower price than the competition in the market.

Determine market sensitivity to price: The GWS Giants must ascertain the size of the market and each segment to gain a clearer understanding on price elasticity as well as the supply/demand relationship. The club already has options available for adults, children, pets and families. However, GWS Giants can diversify their product range by developing products for more segments such as interstate supporters, occasional attendees (less than five games) and perhaps online packages for potential overseas supporters. Further, the marketing department must conduct research into how their target market segments spend their income.

Estimate the break-even price: In order to determine a break-even price point, the GWS Giants marketing team need to look at the following factors: selling prices, volume of sales, unit variable cost, total fixed cost and sales mix. Once this is ascertained, the club can charge as little or as much above the break-even price.

Determine pricing strategies of major competitors: The GWS Giants are located in the rugby-dominated state of New Sales Wales. Therefore, the marketing team must look at the price points both rugby codes use to make their AFL product an attractive alternative. 

Determine constraints on pricing behaviour: For public policy or strategic reasons, the AFL can implement a threshold that ticket prices must adhere to. As a result, the GWS Giants will need to ensure they follow such guidelines set out by the AFL when setting their prices.

Determine constraints of other marketing mix variables: As previously discussed, the GWS Giants have entered into a new market for the AFL. New South Wales is not traditionally an AFL state. Instead it has a long history with rugby league and rugby union. Therefore, this product mix means that the club should set lower prices in comparison to bring consumers to the game. Visually, this will fill up seats. In turn, the games will look more attractive on television, having the potential of maximising sponsorship opportunities for the club. Moreover, if a low pricing strategy is adopted, the promotions must be both proactive and intensive to sell as many as possible to yield the greatest return.

Determine time dependence: The GWS Giants should implement their pricing strategies throughout the season, with extensive promotional work in the off-season. For example, the club could pre-sell memberships in the pre-season at a reduced price to reward early adopters. In addition, the peak period of demand would be in the first half of the season. As a result, the membership prices should be at the highest point during this time. Lastly, reduced ticket packages should be on offer during the second half of the season. The purchaser cannot consume games that have already been played. Yet, if the team is performing well or if consumers want to attend games on a casual basis, the pricing strategy should accommodate these factors.

Determine final price: Once the aforementioned steps are completed, the GWS Giants can formulate appropriate and effective prices.

Explain how Nike researches and develops new products. 

Nike researches and develops new products through the Nike Sports Research Laboratory (NSRL). This laboratory is located in Portland, Oregon in the United States. This extensive research and development process first begins by identifying the physiological needs of athletes. This is done by conducting testing on different surfaces; video recording  the athletes' movement when undertaking a sporting activity; analysing breathing patterns; applying thermal imaging technology; and scanning the athletes' feet. In order to complete this research, the NSRL partners with universities around the world, namely from North America, Europe and Asia. Once the NSRL completes the research into  the athletes' needs, a design brief is prepared and passed on to the Nike Kitchen to turn the idea into a product. It is then in the Nike Kitchen that high-tech instruments are used in order to create a prototype of the new product. 


Develop a flow diagram to illustrate the research undertaken using athletes and high-tech instruments by Nike's Kitchen to develop Nike Free.

Identify the methods used by Nike to test Nike Free.

Firstly, Nike Free was tested on a wide range of different runners. Elite runners, everyday runners and sport journalists were selected to participate in the testing as they represented individuals that exercised on a regular basis. The trials ran for a total of six months where around 110 runners used the new shoe. All participants undertook shuttle runs, short sprints and leg strengthening tests to measure speed, coordination and development. The control group (consisting of 30 men and 23 women) used their personal running shoes. The experimental group (consisting of 30 men and 27 women) wore the Nike Free prototypes. Each group needed to run four times a week for 30 minutes each. It was ultimately found that the Nike Free design was not just a regular running shoe. Instead, it was identified as being a training technique as it strengthened and improved the flexibility of the athletes. The experimental group improved across each testing category by 10-20%. 

You are a sales assistant in a Niketown store. Discuss the internet-based training you underwent to ensure that you fully understand all the features of Nike products, especially Nike Free. 

As a sales assistant in a Niketown store, it is imperative that I have a sound understanding of the new Nike Free product. To ensure that I knew each feature and benefit, I participated in a program called Nike Sports Knowledge Underground (Nike SKU). Nike SKU is a flash-animated multimedia learning tool that encompasses a range of training activities. Each station of the Nike SKU involves a three-minute course. Within this time, we could learn about the design, benefits, features and most importantly, the selling points of the shoe. We were then tested on this knowledge by completing a short test. When we deal with specific customer questions about the shoe, we can also use a comprehensive technical specification sheet.   

Discuss the look and feel of the Nike Free website and identify how this, and the content of the website, complements Nike's overall mission.

Nike's overall mission is "to bring inspiration and innovation to every athlete in the world." The Nike Free website complements this mission as the product offering caters for a range of different athletes. For example, the website contains images of shoes for both adults and children, as well as the option to change the site's language. The children's shoes are further split into designs for girls and boys. In addition, the adult range is diverse (eg. the 'trainer', the classic 'free', the 'cross bionic' and the 'flyknit' are all on offer). The range of colours and designs further encapsulate Nike's mission statement as the diversity ensures everyone's tastes are catered for. Lastly, the look of the website is colourful, with large images and a clean layout. As a result, the viewer of the website feels a sense of energy when looking at the bright colours and bold images. 

Assume you are making a presentation on Nike Free to the local sporting club. Illustrate the benefits that runners will gain when using Nike Free for training. 

The Nike Free shoe is an essential training tool for any runner who wants to get the most out of their natural ability. Athletes will receive three core benefits after training with such a shoe. Firstly, their flexibility will increase. Secondly, their feet and ankles will become stronger. Thirdly, their overall balance will improve. This is so, as the Nike Free is modelled on barefoot running which has been proven to train the foot in each of the aforementioned areas. Ultimately, if your athletes use this shoe, they will have an advantage over other athletes in the competition. They are maximising their natural potential with the Nike Free, giving them an advantage in a competition. 

Nike Free is a shoe designed to give runners the feeling and benefits of running in bare feet. However, the idea of running in bare feet could be seen as a contradiction to the foundation stone of Nike, the world's leading athletic shoe company. You are the Marketing Manager of Nike. Explain how a 'barefoot' shoe will complement Nike's shoe range. What are the benefits the shoe gives runners?

Bill Bowerman, a founder of Nike, is quoted as saying "it's all about the feet, not about the shoes." It is this philosophy drives the natural technology evident in the Nike Free shoe. This shoe is designed to complement the inherent ability of each runner, ensuring that they become stronger, more flexible and balanced. Therefore, this shoe will complement Nike's range as it functions as a training shoe that is best used in conjunction with other running shoes. 

Examine Nike's website. Study how the site is set out and each link within the site.

a) Look at the use of colours and images used in the website. What is the image that these colours and images seek to promote?

As previously discussed, Nike use large images with bright colours on their website. The images usually consist of their product range or athletes wearing the shoes. These colours and images seek to promote an energetic feeling, influencing consumers to be motivated to buy and use the Nike shoes. Additionally, the images of athletes further reiterate the target market of the shoes. They persuade consumers to purchase the products so as they too can be like the athletes. 

b) How is the Nike swoosh logo used?

The Nike swoosh logo is used in different areas of the website. It first appears in the top, left-hand corner of the webpage. As a result, it is one of the first images that the viewer sees, signalling to them that this is in fact the Nike website. The iconic logo can also be seen on the product images as consumers have come to expect that the swoosh visibly appears on the shoe and other Nike products. Lastly, the swoosh logo is used on every icon that leads individuals to 'follow' them on social media networks such as Facebook and Twitter. Each different page has a different image of the logo to match the specific Nike brand (eg. the swoosh on the US Nike Football page is placed in the centre of a football field, and the logo on the Nike Basketball page is enclosed in the image of a basketball). 

c) What is the difference between marketing and advertising?

Marketing aims to find a group of buyers and sellers in order for the transfer of products or services to occur. This is usually completed by engaging in systematic planning processes which identify the target market and subsequently determine their specific needs and wants. On the other hand, advertising focusses on communicating the product or service to consumers. Essentially, it ensures consumers are made aware of the existence of the product or service, encouraging them to take some action to purchase it. 

d) Give examples of how Nike uses its website for marketing and advertising.

Nike uses its website for marketing by targeting the different types of consumers. The website is divided into different sections for women, men and children to cater to the different markets. In addition to this, the Nike website also gives the consumer the option to view the product range by sport. As a result, the website uses target markets based on sport as another marketing strategy. Nike also uses its website for advertising as it contains links to the online store as well as advertising campaigns on how each product functions and the benefits of owning such a product. 

e) The Internet is an integral part of marketing and advertising products. Discuss. In your discussion you should refer to examples of how Nike has used the Internet in both marketing and advertising of their products. 

The Internet is an integral part of marketing and advertising products as it is widely accessed and convenient for consumers. As a result of this, it is important that Nike uses the Internet to market their products to the right people and to the greatest number of people. Moreover, Nike is an international brand that must market their product cross-border. Thus, the globalised nature of the Internet means that their products have the ability of reaching consumers all over the world. This is evident in the different online stores and language options that the Nike website provides. The tabs for sport, men, women and kids further ensure that the consumer can easily access the products intended for their needs.   

Over the years, Lucozade has undertaken a rebranding of their iconic drink. This case study provides us with an example of how the product lifecycle functions. In doing so, it highlights how important it is for products to keep innovating if they want to avoid a decline.

1972 - AIDING RECOVERY ADVERTISEMENT

Who is the drink targeted at?

In the early 1970s, Lucozade was associated with aiding recovery from illnesses such as the common cold or flu. In this television advertisement, the drink is being targeted at two main markets. Firstly, the ill child who must stay at home in bed to recover reinforces the notion that Lucozade is aimed at people who feel unwell. Secondly, Lucozade is targeted at the stay-at-home mothers who must look after their ill children. This is so, as looking after an unwell child can be just as exhausting for mothers. The voiceover clearly illustrates this contention through the line "when they're ill, it takes it out of you too."

What is the purpose of the drink?

As previously discussed, Lucozade is a drink that assists in the recovery process when one is unwell. It re-energises those who are ill. However, the product's purpose does not just limit itself to helping people recover from illness. It takes on a broader purpose of increasing the energy levels after any exhausting and tiresome task. The other energy-consuming activities depicted in this advertisement are looking after an ill child and running a household. This can be seen through the lines "that's why Lucozade's energy gets you going again" and the rhetorical question "mum's never allowed to run out of steam, is she?"

Why is it sold in such a big bottle?

Lucozade has a multitude of uses. It can re-energise anyone from sick children, to busy mothers. This multipurpose product is therefore at the disposal for the whole family. As a result, the large size of the bottle caters for everyone in the family. The big bottle also serves an economical purpose as mothers who primarily purchase Lucozade know that the large amount will last a longer amount of time. 

What is the end slogan?

The end slogan is "Lucozade aids recovery". Not only does this tagline allude to the drink's ability to help you recover from an illness, it takes on a broader meaning. The drink can aid in your recovery from a wide variety of exhausting, everyday tasks. Whether that is running a household or performing another taxing activity, Lucozade intends to replenish our energy levels so as you can carry out these tasks.

MID 1980s: MOD ADVERTISEMENT

Has the target market changed?

The target market has clearly changed from the target market illustrated in the 1972 television advertisement. Whilst the 1970s version marketed Lucozade towards mothers, this mid-1980s advertisement is marketed towards a younger group of people. In particular, teenagers or young adults who need a boost of energy during their busy and active lifestyles.

What image does Lucozade now want?

Through this television advertisement, it is apparent that Lucozade now wants a more youthful and trendy image. This can be illustrated through the images of the young men riding on their vespas who are dressed in fashionable clothes. The backing music track further illuminates this youthful and hip image. Overall, the advertisement contains similar images and themes from the 1979 film Quadrophenia that the target market could probably relate to. 

Why has the bottle shrunk?

The bottle has shrunk as the target market, now teenagers and young adults, wants their energy to be replenished on-the-go and as soon as possible. Essentially, they have the desire for a product to be portable which can that can then be consumed in a shorter amount of time. As a result, the bottle is smaller than the once depicted in the 1970s advertisement in order to fulfil the needs of the new target market.

How and why has the end slogan changed?

The end slogan changed from "Lucozade aids recovey" to "the original solution" as it wanted to distance itself from being a drink that only assists in overcoming sickness. This rebranding strategy reinforces the new market that the drink is aiming to target and the stylisation of the slogan harkens back to the mod theme that runs throughout the advertisement. 

LATE 1980s: DALEY THOMPSON ADVERTISEMENT

Who is the drink now marketed at?

The drink has once again changed their target market. Instead of the young adults targeted in the mid-1980s campaign, the late-1980s advertisement is aimed at athletes and individuals involved in some form of intense physical activity. This can be demonstrated through the images of the UK athlete Daley Thompson sprinting with music from Iron Maiden complementing this feeling of intensity.   

What adjective is used to describe the drink and why?

'Refreshing' is the adjective used to describe Lucozade. This has been done in order to distance the drink from notions of illness and weakness. Now, the drink is intended to build on the strength of those who are already healthy and athletic rather than individuals overcoming sickness. As a result, Lucozade want to associate their product with 

Why does the ingredient 'glucose' get mentioned?

For any product, it is important to add a sense of legitimacy and credibility. In the 1980s,  many products were revolutionised by science and technology. It is possible that Lucozade mention glucose as a core ingredient to create legitimacy around their product. The word has a scientific feel and as a result, it could persuade consumers into thinking that the drink has a scientific background to deliver energy-replenishing results. 

1990s: JOHN BARNES ADVERTISEMENT

Why are Lucozade introducing words like 'isotonic'?

Similar to the late-1980s advertisement with Daley Thompson, Lucozade are introducing words like isotonic to further emphasise the scientific nature of the product. As the word isotonic is associated with physiological concepts, the Lucozade can once again capitalise on the legitimacy that science brings to its product. In turn, by including the word isotonic in the advertisement, consumers will believe that the drink will hydrate them as it is supported by scientific merit. 

What do you notice about the packaging?

The packaging has once again changed to accommodate the target market as well as their set of needs and wants. The packaging has distanced itself from the glass bottles from the 70s and 80s. Now, Lucozade is packaged in aluminium cans. In addition, the product now contains the word 'sport' and 'isotonic'  on its packaging. 

Why do you think Lucozade now use cans?

Lucozade now uses cans to deliver their product to consumers in a convenient way. This can be illustrated through the advertisement as John Barnes uses a vending machine to retrieve a Lucozade can. Ultimately, the speed which Barnes can obtain the product reiterates notion that Lucozade  too "gets to your thirst, fast".

2012: FASTER, STRONGER FOR LONGER ADVERTISEMENT 

How different is it from the first advert?

The 2012 advert differs greatly from the very first advert. This advertisement has effectively distanced itself from the connotations of weakness and illness depicted in the 1972 campaign. Lucozade is no longer a drink that aids in your recovery when you are unwell. It is now a product that scientifically allows athletes to hydrate and perform "faster, stronger for longer." Once again, words such as 'electrolytes' and 'isotonic' capture this sense of scientific legitimacy which differs from the housewife/mother angle from the first advertisement. Lastly, the packaging has changed to pop-top bottles for the on-the-go convenience and portable needs of the target market. 

Was the rebranding of Lucozade a success?

Overall, the rebranding of Lucozade was a success. Products are known to follow a life cycle where they experience four stages: market introduction, growth, maturity and decline. If Lucozade did not rebrand their product, they would have most likely entered into a decline  phase after the maturity stage of the product life cycle. However, the proactive approach in marketing the product for athletes and sport purposes brought new life to Lucozade. Thus, this case study reaffirms an important lesson for marketers: constant innovation is needed to avoid a product from declining.

In Round 9 of the 2014 AFL Premiership Season, the Collingwood Magpies travelled interstate to take on the Adelaide Crows. With only 11 seconds to go in the third quarter, Josh Jenkins ran into an open Adelaide goal square to put another 6 points on the board. However, the volume of the crowd masked out the sound of the siren, making it impossible for the umpires to hear and signal the end of the quarter. So the question remained: Did he kick the goal in time? In an attempt to clarify the legitimacy of Jenkins' goal, the umpires called for an official video review only to be met with the response, "We can't hear the siren, so we can't review it." This incident, now known as 'Sirengate', proved to be the talking point of the match long after the final siren had sounded.  

What if the game had been a Grand Final with the scores level and only a few seconds to go? In this example, not hearing the siren over the cacophonous sound of the crowd could be quite costly. Therefore, simple technology needs to be implemented to overcome such an issue. 

The following are some ideas that could be adopted by the AFL to avoid another 'Sirengate' controversy. Firstly, the umpires could wear a wristband that vibrates once the siren has sounded. Therefore, if they fail to hear the siren over the noise of the crowd, they will be able associate the feeling of the vibration with the end of the quarter. Secondly, AFL umpires could wear an earpiece that emits a tone as soon as the siren sounds. This will ensure that the siren will be heard as the direct sound is being feed straight into the earpiece. Thirdly, the goal posts could be fitted with lights that flash when the siren has sounded. As a result, people will be able to see the end of the quarter in circumstances when the siren cannot be heard over the crowd.