After reading the case and thinking back to the 'Marketing Myopia' article by Levitt last week, do you think this case study suggests another possible industry that sport could position itself within?

The 1999 case study titled 'Creating a New Program: Active Ageing in Queensland' reaffirms the main contention established in Levitt's article, 'Marketing Myopia'. The sport industry must expand and broaden its definition in order to capitalise on a greater offering of growth opportunities. If not, the sport industry will not be able to take advantage of such moments. In this case study, the authors discussed the importance of developing strategies to ensure mature aged Queenslanders put into practice and maintain an active lifestyle. With this in mind, activities involving sport should align itself with fitness and recreation to become an all-encompassing 'sport, fitness and recreation industry'. In doing so, the opportunities that arise from health and fitness; leisure activities, community recreation; and sporting activities can be sufficiently accommodated for.

The case gives us a general situation analysis, what are your first impressions of who the target markets might be? Why?

The case study targets three main groups of people. Firstly, the mature aged Queenslanders who are already physically active form one segment of the target market. This is so, as the article reveals that some older persons, particularly retirees, take part in structured physical activity "but their participation typically declined over time". Therefore It is important to retain current mature aged individuals who engage in sport and exercise activities. Secondly, the article targets mature aged Queenslanders who do not currently maintain an active lifestyle. This specific group of people are generally not engaging in physical activities as their needs and wants have not been adequately met in existing programs. Lastly, staff and service providers who offer recreational services but do not have programs that meet the needs of mature aged Queenslanders are targeted.  

We have already been given some objectives, what are your first impressions of the strategies that can be used to meet these objectives?

The article proffers three main objectives to promote 'active ageing': 1) To increase the proportion of physically active mature aged Queenslanders; 2) To improve the existing recreation services and opportunities for active mature aged Queenslanders; and 3) To advocate that all Queenslanders maintain an active lifestyle throughout their lives.

There are different strategies that can be implemented to achieve such objectives. For example, advertising material in the form of promotional brochures and television advertisements could contain images of mature aged individuals rather than images of highly visible exercise spaces. This will help reduce the feeling of self-conciousness for "older persons who were frequently uncomfortable about public display of their bodies." Additionally, a notable and fit mature aged Australian (such as Dawn Fraser) could promote the need for physical activity. By having a recognisable person who advocates an active lifestyle, mature aged Queenslanders can better identify with the importance of maintaining a level of health and fitness. 

Another marketing avenue could be found by visiting retirement villages as well as providing promotional material in local hospitals and medical clinics. This will aid in creating a "formal linkage with doctors or physiotherapists who might refer holder patients to exercise programs." 

Furthermore, it is necessary for staff intending to provide services for mature aged individuals to have the appropriate training and skills. Therefore, strategies need to be administered in order to incentivise why service providers should accommodate "exercise preferences and attitudes of older persons". As mature aged Australians "generally prefer to exercise in groups" and "participate with close friends", programs will also need to be designed to target these wants. It is recommended that such programs be run where "most fitness centres have substantial spare capacity during normal work hours". As a result, fitness centres will capitalise on this growth opportunity as value can be found by running programs for mature aged persons during these time periods. 

Importantly, the price of such programs aimed at older persons will need to reflect value for money. Therefore special concessions should be factored into pricing these services. For example, different groups of mature aged Australians (such as pension and DVA card holders) could pay a reduce fee for participating in fitness programs.

Renowned geriatrician, Professor Maria Fiatarone Singh, advocates for a truly interdisciplinary approach to creating programs for mature aged individuals: "I think that the optimal-care model for an older adult really has to be a complete integration of their medical needs, their physical needs, their exercise and nutritional needs, and their psychological and social needs. The only way we can deliver on this is with a truly multi-disciplinary kind of care." However, this can only be made possible once the appropriate amount of resources are allocated to establishing and marketing specific programs for mature aged Queenslanders. 

Imagine you are the marketing manager of the Gold Coast Suns. What strategies would you develop to engage fans using psychological, personal and environmental factors?

People share a common desire to feel connected to something or someone for a variety of different reasons. Whether it is to escape  from daily pressures, interact with others, feel a sense of achievement or  experience excitement and entertainment, sports fans in particular want to be a part of the 'inner sanctum' of a team. In order to engage fans using psychological factors, the Gold Coast Suns could use social media platforms such as Twitter to allow fans to pose questions to players of their choice. Rather than responding through Twitter, the players could answer the questions in a weekly video segment on the Suns' website. In doing so, supporters will feel connected to the team as this personal video simulates a conversation-like interaction between players and fans.

Australia is known to be a multicultural country. As a result, the Gold Coast Suns could implement fan engagement strategies to attract fans from diverse ethnic groups that are not familiar with the sport of Australian Rules Football. The Suns can conduct a mini competition similar to the initiative established by the Big Bash League team, Sydney Thunder. Sydney Thunder created a tournament called the Thunder Nation Cup where teams from various cultural backgrounds played short games of cricket against each other. The final two teams then play the Grand Final on the field at one of Sydney Thunder's matches. If the Gold Coast Suns organised a similar initiative, individuals from different cultural backgrounds have an opportunity to be exposed to a new sport and bond with their team members. In addition, family or friends of these participants will most buy tickets to watch the finalists play during a Suns' home game at Metricon Stadium.

The Gold Coast Suns are one of the few AFL teams that are geographically located near some of Australia's most famous beaches. Furthermore, the Gold Coast is a popular tourist destination where people from AFL-dominated states (like Victoria, Tasmania or South Australia) often visit for a holiday or even relocate. In order to engage fans, it is suggested that the Suns utilise the unique environmental factor of their beachside location to their advantage. The club could run football clinics for fans along the beach, either in Broadbeach or Surfers Paradise. Supporters will be able to meet their favourite players, have the opportunity to get an autograph or photo, and even have a kick-to-kick along the shoreline. Therefore, the Suns will be using the beach as a strategy to attract fans as this unique location provides the team with a point of difference from other clubs. It also accommodates people who want to enjoy the sun, surf and sand that the Gold Coast has to offer.

Apart from being more competitive on the field, how can the Gold Coast Suns improve their crowd and member numbers?

The Gold Coast Suns have different membership options to accommodate a wide array of supporters. Each demographic appears to be covered as the Suns offer packages for children, Victorian and other interstate fans, digital access passes, three-game tickets, premium seating tickets, family packages and non-game supporter packs. In addition, the Suns have a multitude of activities that supporters can participate in during match day. For example, they provide entertainment between the quarter-time breaks; live Tweets and Instagram pictures are broadcast on the screens throughout the game; the '5th Quarter LIVE' precinct allows individuals to socialise with others outside the ground whilst listening to live entertainment; there is an AFL playground outside the stadium for children to practice their handball and kicking skills; and there is the opportunity for fans to go on the ground at Metricon Stadium after the match. The diversity of membership packages and the fan engagement opportunities available for supporters on match day should contribute to improving both crowd and membership figures. 

To further engage fans on match day and subsequently increase both crowd and membership numbers, key skill competitions can be run on the ground during the quarter-time breaks. For instance, handball and goal kicking competitions can take place where Gold Coast Suns members are notified in advance if they have been selected to participate. A current Suns player (e.g. a footballer who is not listed to play on that day) can then assist in running the mini competitions. This will both increase membership figures as the participants are selected from the pool of members and the crowd will enjoy watching a Gold Coast Suns player compete against a fan.  

Are the psychological, personal and environmental factors the same in choosing to attend a Gold Coast Suns game versus attending a Gold Coast Titans (NRL) game? If not, what are some differences?

On a broad level, the psychological, personal and environment factors between choosing to attend a Gold Coast Suns game as opposed to a Gold Coast Titans game are similar. The majority of individuals consume sport on some level to feel connected, entertained and to interact with others.  

However, the different internal factors that are personal to each individual and their consumption of sport does vary, ultimately influencing which code of football a fan choses to watch. For example, an individual may have a direct knowledge of Australian Rules Football as they have experienced playing the sport from a young age. They understand the various rules and style of play. They may also possess a stronger physical ability to play the game and a weaker physical ability to play rugby league. As a result of these personal factors, the individual is more likely to attend a Gold Coast Suns game over a Gold Coast Titans match. 

Moreover, other external factors influence the decision making of a fan. An individual may find greater value in attending a Gold Coast Suns game as they prefer the special events and promotions that occur during match day. They may also base their decision on the price of a ticket and the value for money they are receiving. Other external factors such as merchandise design, team success and marquee athletes which distinguish the Gold Coast Suns from the Gold Coast Titans may further influence which sport a fan choses to attend. 

Sport marketing is a broad concept that involves various processes to communicate the value of a product or service to customers through a sports context. These sport marketing strategies can be divided into two distinct groups: marketing through sport and marketing of sport. 

Marketing of sport is the process of promoting the sport as a product in itself. The objective of this strategy is to increase spectatorship, fan bases and overall participation in the sport. If this is achieved, revenue streams through broadcasting, sponsorship and memberships can be created.  

On the other hand, marketing through sport uses an element of sport in order to promote products or services. These products or services are not necessarily related to sport. Instead, they use the popularity and wide viewership of sport to expose their product or service to consumers. 

To gain a clearer understanding of the distinction between marketing of sport and marketing through sport, see the examples below. 

MARKETING THROUGH SPORT

Gillette, one of the world's most identifiable brand of personal care products, frequently uses professional sportspeople to market their razors and antiperspirants. Last year, Gillette enlisted four well-known NFL players (Clay Matthews, Victor Cruz, Danny Amendola and Doug Martin) to advertise their new Fusion ProGlide Razor in a series of television commercials. In one particular commercial, images of the footballers wearing their face masks can be seen as the voiceover states "guys don't put all of this high-tech gear on their face only to go home and wreck it with just any razor." Gillette utilises both the popularity of these NFL players and and the wide viewership of the sport in an attempt to market their product effectively. Although razors do not have a direct link to sport, Gillette draws a comparison between footballers protecting their faces on game day to protecting their skin whilst shaving in order to market their product to consumers. 

Once again, although not directly related to sport, Emirates markets their services through their major team sponsorship of the Collingwood Football Club. As their website states, "Collingwood Football Club is one of the most famous and widely supported sporting clubs in the Australian Football League (AFL) and across all sports in Australia. This popularity was enough to convince Emirates to become a Premier Partner of the Club in 1999." It is clear that Emirates' marketing strategy is to capitalise on the large supporter base of Collingwood in order to promote their airline services to customers. As a result, the Emirates logos appear on the players' football jumpers and Emirates signage can be seen during press conferences as well as in the club rooms. 

The last example of marketing through sport can be seen through Kia Motors and their sponsorship of the Australian Open Tennis Championship. The Kia signage appears around each court, on the tennis nets and throughout the Melbourne Park 'live site' area. Further, Kia vehicles are provided to transport the tennis players, VIPs, officials and media during the Grand Slam event. In a statement on the Australian Open website, "Kia has been partnering with the Australian Open since 2002 to help raise its brand awareness and provide added momentum to its transformation into one of the leading global automotive brands." Therefore, the Australian Open provides Kia with the ample opportunity to increase their brand awareness by reaching the large audience that follows this international sporting event.

MARKETING OF SPORT

The AFL alongside one of their major partners, NAB, are currently marketing a campaign called 'Footify Fansplant'. This initiative is an attempt to convert sports fans from around the world into AFL supporters by 'transplanting' them into AFL-passionate Australian households. Marketing of sport is evident as the overarching purpose of this campaign is to promote the game of Australian Rules Football internationally, expanding the game into new markets. It is striving to grow the sport's fan base, viewership and participation. NAB's tagline makes clear the ultimate goal behind the campaign: "we don't just sponsor footy, we grow it".

Over the past few years, sports have begun utilising cameras in change rooms as well as attaching microphones to players and officials. Major sporting leagues (such as the NFL, NHL, NBA and MLB in the United States; and the AFL and NRL in Australia) are implementing these innovative ideas. This practice further illustrates the marketing of sport. This is so, as it provides fans and potential supporters unprecedented access to the sport. In doing so, these tactics aim to retain supporters by providing new insights to rejuvenate their passion in the sport, whilst also attempting to cultivate a set of new fans. For example, the Los Angeles Lakers provide a virtual tour of the team’s locker room for their fans on Facebook in an attempt to further engage fans. In addition, the NHL have allowed supporters to "be brought 'inside the glass' through behind-the-scenes access to players and dressing rooms, additional camera positions, and players wearing microphones". 

The KFC T20 Big Bash League are implementing a new initiative ahead of the next season. The concept will involve a reward for the fan who catches the ball hit for a six. After conducting an open poll to the public, a new ball signed by the player who hit the six was the preferred choice for supporters. This concept builds further fan engagement in a competition that is still in its formative stages. Similar to the home run catches in the MLB, the crowd interaction strategy developed by the Big Bash League creates a sense of excitement to market the sport of cricket with the overarching intention of engaging more fans for the future. 

"Marketing Myopia" is an article written by Theodore Levitt published in the Harvard Business Review in 1960. Since its publication, Levitt's article has redefined and revolutionised the marketing landscape.

What was the result of the railroad industry not defining itself correctly?

Railroad companies narrowly defined their business as belonging to the ‘railroad industry’ as opposed to the ‘transportation industry’. This allowed other modes of transportation, such as aeroplanes and automobiles, to fill the need for passenger and freight transportation. Therefore, it was the railroad industry’s own “lack of managerial imaginativeness and audacity” to satiate consumers’ needs that resulted in this loss of potential business. This example pertinently illustrates the dangers of being short-sighted as the railroad industry ultimately marginalised their business by being product-focussed rather than addressing customer needs.

In Levitt's article, what did the oil industry continue to do and what was its consequence?

The oil industry continued to be product-oriented. They held the belief that the growth and expansion of their business will result from more customers purchasing more products. As a result, oil companies focussed on improving oil by making changes to their location and refining methods. As Levitt describes, “the industry was blinded by its narrow preoccupation with a specific product and the value of its reserves. It paid little or no attention to its customers’ basic needs and preferences.” 

Generally, this myopic mindset would transpire into the obsolescence of oil. However, the oil industry was "miraculously saved by innovations and developments not of its own making." For example, once Thomas Edison invented the electrical light bulb, the need for kerosene lamps was eliminated. However, kerosene found a new purpose in space heaters. Shortly after, coal-burning heaters replaced the space heater. This would have signalled the end for oil but the industry was once again rescued by the invention of the internal combustion engine. Therefore, despite the product-oriented mindset of oil companies, new uses were discovered by those outside of the industry.

In theory, oil companies should have also pioneered the Gas Revolution. This is so, as they possessed an innate knowledge of heating issues, pipeline technology and transmission. Yet viewing natural gas as the competition proved to be one of the most significant consequences of the oil industry's narrow-mindedness. They could not capitalise on this growth opportunity themselves which allowed others to take advantage of the developments in gas technology.  

List the reasons Levitt gives for the demise of myopic industries over time.
Levitt makes it clear that the notion of a ‘growth industry’ does not exist. Only companies that actively create and capitalise on growth opportunities will avoid obsolescence. To further illustrate his point, Levitt breaks down the demise of myopic industries into four conditions.

Firstly, myopic industries experience their demise by believing that “growth is assured by an expanding and more affluent population”. This mindset prohibits imaginative thinking as businesses become complacent in the expanding market. Secondly, the belief that “there is no competitive substitute for the industry’s major product” contributes to the obsolescence of industries. This is so, as companies generally focus on the strength of their product or service, rather than addressing customers’ needs. Thirdly, when industries place “too much faith in mass production and in the advantages of rapidly declining unit costs as output rises”, they move closer towards their expiration. By placing this importance on production, strategic marketing is often overlooked by companies. Yet when marketing is considered, it is then commonly viewed as a mere consequence of the product, rather than the driving force behind it. Lastly, the “preoccupation with a product that lends itself to carefully controlled scientific experimentation, improvement and manufacturing cost reduction” also contributes to the demise of myopic industries. Marketing is once again considered as an afterthought as the emphasis remains on product development and innovation. 

What other examples can you suggest of industries or corporations failing to adapt new ways to meet old needs?
Two other industries which have failed to adapt new ways of meeting old needs are the music industry and the print media industry. Both industries have fallen victim to the rise of the technological age, specifically due to the creation and prolific use of the Internet.

In the print media industry, circulation figures and advertising revenue are on the decline. Advertisers are instead turning their attention to the online audience rather than print publication readers. This may be as a result of the print media industry narrowly defining their business. In turn, their ability to exercise their entrepreneurial spirit has been compromised. Traditional print media should view their business as delivering information to the public rather than providing physical copies of newspapers or magazines.

Once print media companies adapt to delivering information through digital means (as some companies are successfully doing), they will be in the best position to profit once the digital world continues to become monetised.

For a long time, the music industry continued to narrowly view songs as a physical, packaged good. Once again, this product-driven mindset did not cater for the change in customer needs and online habits. Music companies were too slow to embrace new digital business models as a consequence. Instead, they initiated legal proceedings against online file sharers in an attempt to combat music piracy. Essentially, the music industry must redefine their industry as being entertainment media delivery. In doing so, they can focus on fulfilling customers’ needs by delivering content that is convenient and accessible by making it available in a digital format. iTunes successfully uses this business model and with time, other methods of online music content delivery will undoubtedly emerge. 

What lessons does the article give about sport in general and sport marketing?
This article cautions the sport industry to avoid possessing a product-oriented mentality. They must not rely on merely selling goods and services to their customers. Instead, sport must turn their attention to fan engagement to retain existing fans and create new fans. Importantly, they need to continuously identify what customers’ needs are and deliver these needs in entrepreneurial ways.

Furthermore, Levitt’s article raises the important distinction between promotions and marketing. In sport, promotions and marketing must not be treated as the same concept. For example, promotions through advertising or tactics used during halftime shows may assist in engaging fans. However, they only form a small part of the overall marketing strategy once the customers’ needs are first determined.

Lastly, the sport industry, like the railroad industry or oil industry, must broaden their definition. Sport is unique as its consumers enjoy sport for a multitude of reasons. Whether fan enjoyment is derived from the social interaction, health and fitness perspective, entertainment value or sense of competition, sport cannot afford to become myopic. They must ultimately adapt to consumer behaviour and desires to remain current, relevant and avoid obsolescence. 

What did you get out of reading this article?
Three key messages can be taken away from Levitt's article, "Marketing Myopia":
1. Be prepared to define your business broadly to avoid marginalisation; 
2. Focus on customers' needs, rather than your product; and 
3. Be prepared to use an entrepreneurial spirit to capitalise on growth opportunities as a 'growth industry' does not exist. 

Lauren is a law student currently in her final semester at Bond University. After beginning her studies in January 2012, she has developed an interest in the corporate and commercial areas of law. Lauren is particularly passionate in the international taxation law landscape, electronic commerce, as well as banking and finance law. Throughout her studies, she has also undertaken a number of sport-related subjects to complement her law degree. They include Sports Law; Sport Organisation, Governance and Policy; Player Management; and now Sport Marketing.

Although she has always loved sport, Lauren’s interest in the industry has continued to grow through different opportunities and experiences. She was fortunate to interview both John Witheriff, Chairman of the Gold Coast Suns Football Club, and Alisa Camplin, ex-Winter Olympian and board member at the Collingwood Football Club, in relation to sport governance. These one-on-one opportunities to discuss various corporate governance issues and risk management strategies in sport has further inspired Lauren to pursue a career in this area of law.

Her interest in working in the sporting sector has been reaffirmed through her legal work experience at Burgess Sport & Entertainment Law and assisting in the BSE Agent Accreditation Scheme. Through these opportunities, Lauren has gained invaluable exposure into a successful law firm operating in the sport industry.

Finally, as a proud Melbournian, she is fanatical about all things AFL. With the MCG acting as her second home, Lauren passionately supports the Collingwood Football Club. She also has a growing interest in the four major professional sporting leagues in the United States. Lauren supports the San Francisco 49ers, the New York Rangers, the Los Angeles Lakers and the New York Yankees.

This blog will document all of her work throughout Sport Marketing this semester.

Follow Lauren on Twitter @LaurenSports