Showing posts with label value perception. Show all posts
Showing posts with label value perception. Show all posts

Monday, August 3, 2009

Twitter: Blessing in Disguise


I wanted to make this next post about the positive effects Twitter has had on sports marketing, but then I was linked to an article titled "Twitter is a Threat to NFL".

The article shows the caution that the NFL takes towards players using twitter, the uncessary hoopla that can surround twitter updates and the potential for controversy to arise. Twitter is simply a much safer way of communicating information to fans and the media than in person interviews. Very often can sports personalities slip up in interviews, divuldging information that they shouldn't have, or being misquoted by a jaded sports writer. Twitter allows the individual to sit in front of a computer or phone, away from people, and think about what they're going to write. As long as you indicate the necessary rules and precautions that one would take with any sort of team to fan/media communication, I don't understand the reluctancy to employ twitter as a serious mode of communication. The NFL is no stranger to controversy, yet stories like Brett Favre, Terrell Owens and Michael Vick all bring attention and publicity to the league. And those three characters, like baseball with Barry Bonds and Mark McGwire are perceived to the fans as acting individuals. The NFL in this case really gets a free ride of publicity without negative feelings towards themselves as a league or sport. Michael Vick has undoubtedly made them money through his generated publicity. Twitter at the very least is capable of that.

However, Twitter is more than capable of that. There is value in cutting out the middle man (sports writers) between athletes/management and fans. Fans appreciate the fact that they can reply to one of their favorite athletes, regardless of whether or not they do. And if that athlete does, all the better. Armchair GMs, and there are millions, like nothing but to offer their opinions and thoughts on the team: twitter is the means at which they can. And the time spent in this communication venue is time spent thinking about the team--it heightens their commitment level. That's money because fans who elevate their commitment levels, buy merchandise, expose themselves to advertisements, and become very attentive to the day-to-day operations will spend more money throughout the course of a season.

The NFL has an overall problem which is controlling player's ego and behaviour. But Twitter is not to blame for a sports culture gone awry. It may be the only device capable of mending relationships between players and fans.

When Everything You Touch Turns to Gold


In every league there are several teams whose fan base is so rabid and widespread that all of their games sellout or come close, television ratings are through the roof, and merchandise sales are astronomical. Usually these teams have years of success, years of tradition, and that tradition has been carried out through generations within families. The Toronto Maple Leafs. The New York Yankees. The Dallas Cowboys. The Los Angeles Lakers.

But it's not enough just to sell all the tickets and put the games on television. Marketing departments of these teams should be working more than any other team. You can't rely on the game experience to captivate fans, so yo have to find other ways and be more creative to satisfy your fans around the world. That means scheduling off-season caravans: having players and management tour throughout the region of fans, meeting those that can't afford to come to games, but who watch every game despite being miles away. Making merchandise available to these people: if all of New England is Red Sox nation (and likely more than that), the Sox must have merchandise stores in Vermont, New Hampshire, Maine. Have a presence in every mall across the region.

Team practices and skills competitions are great ways to get fans out to the stadium or arena without it costing them very much. Schedule game viewings in local movie theatres, charity events in local communities. Even a "greatest [team] town" where fans in the community rally to show that they are the best town's fans of their team. These are all ways that you keep fans active and engaged in the team without being able to come to the stadium and show their support that way. Locating minor league operations in adjoining towns are also fantastic, bigger scale ways of keeping fans involved.

Being able to do that, and finding alternate ways of keeping fans interest in the game will help the truly dark ages of a franchise. The Cubs and Leafs have both fielded unsuccessful teams for decades, yet their fan commitment remains some of the highest in professional sports. Marketers have been able to capitalize on the tradition of the team and maintained their off field success. Imagine the outpouring of support when one of those teams eventually wins a championship.

Wednesday, July 29, 2009

Death by Free Ticket Giveaways


Watching Larry Smith's presentation on the Montreal Alouettes at the John Molson Sports Marketing Conference at Concordia University in Montreal last summer reminded me of some of the most important rules that can never be stressed in the business of sports. The biggest rule is to never, ever give your product away. Unfortunately, it's one of the most common rules, a rule so abused that it has contributed to the collapse of major sports brands.

Advocates of free ticket giveaways will argue that it puts people in the seats, giving the impression that there is a demand. That the people who have free tickets will spend money on food, programs, and merchandise. This is all true, but there are long term consequences for these irresponsible, short sighted decisions.

If people are given enough tickets, their value perception of those seats will be zero. Even if the team is doing well and competing for a playoff spot, these people will be sitting at home, waiting for their annual or monthly pair to arrive in the mail. If the team is doing poorly, they will apathetically make decisions about whether or not to attend the game at all, causing their value perception of the game to be negative--that their time at the game is not worth their time doing everything else. And when people get things for free, or believe that something is worth it, they don't keep it within themselves: they tell everybody about it. They tell them about how they always get free Wizards, Rays, or Blue Jackets tickets. And the next time that friend considers going to a game, they will also wait, because they might get those tickets for free. Or worse, they'll feel stupid that they ever paid money for their ticket when their neighbour got them for free, and will resent the team entirely.

When the Steelers and Dolphins visited Rogers Centre last winter to play the Buffalo Bills in the first year of a 5 year, 7 game Bills in Toronto series, officials priced themselves way beyond what the market was willing to pay for the tickets. With the least expensive seat well over $100, officials realized in the days before the game that attendance would not reach anywhere close to capacity. In doing so, they gave free tickets away: 15,000 free tickets for the Steelers game alone. Tickets went to promoters, who handed them right to their clients. In one case, my friend Jason was given a pair of upper bowl seats for purchasing a pizza. At the game, the guy sitting next to him was lamenting his purchase of $200. Then Jason told him how much he paid for his ticket. You think that fan will ever come back? Not a chance. It didn't help that the papers ran this free ticket giveaway story on their sports section front pages the very next day.

Giving away free tickets is the drug of sport marketers. Short term high, long term consequences and enough abuse will put your brand at risk of losing all its value.