Discussion on Business to Business in the Sports Industry
Collins English Dictionary defines Business to Business as donating trade between commercial organizations rather than between businesses and private customers. (Collins Dictionary). In my report, I will identify the issues of Football and sports organisational buyer and their business to business marketing. Also, I will speak about key issues in delivering matchday services at all levels of their operation.
Business to Business is an astonishing way in which businesses use to create important partnership for a long or short period of time and it can be of use on multiple occasions. An example would be if Real Madrid or any other professional football team sold out of their shirts in the club store, they would have no choice but to order a new stock in to replace the previously sold out shirts. They would have to contact who their kit suppliers are which can be for example, Nike, Adidas, puma or New Balance and order more stock.
Business to Business are very significant for the clubs who want to employ someone outside their company to do the work that they do not have the staff or structure to deal with. An example of this could be stewarding on match day or a security team around the stadium. Instead of the club having to take on people, a lot would pay an agency who would hire and manage the stewards for everything to do with the job instead of the club. This would mean the club would have to agree for the agency workers to work on any agreed match day.
While looking to find possible Business to Business opportunities, companies use segmentation to cut down a few appropriate businesses to start a working association with. One of the categories is the location. In the book Sports consumer Behaviour, it says geographic location is where the consumers live, which can be based in different regions, cities and country. The advantages of using geographic segmentation is that It will help in different highly populated areas. Consumers in an urban location always need different requirements and wants than other individuals in suburban and rural surroundings. (Mahony, 2000)
In sport marketing in recent years, it has been shown that gender segmentation is one of the most common variables in market segmentation as in recent years there has been growing consumer power of females. Researchers have found out that females have control of 28 trillion consumer spending and the percentage of consumer related decisions in sports has increased to 70 percent in the last 5 years. In recent years the power of women as a sport consumer and rapidly increased most especially in the united states as the NFL has predicted the future of the league depends on women. (Daniel C. Funk, 2016)
Chelsea have a large fan base in Africa and Asia. Because they are one of the most well-known team around the globe, they made it their main task to work with companies around both continents, they now have built and maintained B2B relationships with hundreds of international companies in both Africa and Asia. (http://niketolynch.blogspot.com, 2011)
Similarly, another team with a huge fan base internationally is Arsenal, it is said that they are the third team with the largest Fan base in the world with their main ones being in Africa, Asia and the united states. Arsenal fan base could also keep increasing as their owner Stan Kroenke being the owner of NFL club LA Rams and NBA Denver nuggets. This could also build a B2B relationships with companies on American soil. (Searles, 2018)
Segmentation of sport fans
Sport fans are one of the main important part of the club if not the most important part of the sport. Considering different watchers drives can be of significant benefit to the sport marketer looking to boost their team revenues. The marketing manager needs to understand the specific motivations that will move a spectator or fan to consume sport, these important ways of marketing is a way that can help clubs build groups which will expand the fan base. Learning different forms of fan ship will show how loyal the fans are and precisely provide insight into sporting behaviour for the marketers. (Tsiotsou, 2012)
One of the main examples of B2B in the football world are sponsorships. Sponsors agrees with clubs a huge amount of money to use their name on their kits and sometimes the sponsors could even have their names printed on the stadiums. Sponsors are always ready to pay huge amounts of money and offer big sponsorship deals just to increase their consumer market across the globe by entering into a football club. These sponsorships can also be found in a lot of various other sports across the world and some of the same sponsors can be sponsoring multiple clubs and sports at the same time. One of the main benefits of having a sponsor are the clubs brand will be connected with a company who are in multiple market, which could help attract more consumers to the club and increase the fan base.
Emirates are one of the biggest sponsorship companies in the world. They made football one of their main ways of advertising. Emirates are an international airline who are based in the United Emirates and are world-wide known but have invested a lot of money in football, they sponsor Arsenals Stadium, known as the Emirates Stadium and are their shirt sponsor. They also are the sponsor a lot of other teams in Europe mainly for example Paris saint German and Real Madrid. (Emirates.com, n.d.)
Another example of business to business is Manchester citys deal with Etihad airways. The Abu Dhabi United Group owned by Sheikh Mansour bin Zayed Al Nahyan announced he would be in 2008. A few years after he bought the club, they created a group called City football group which they wanted to use to start expanding the team internationally and now they have three majority owned teams across the world which are Man City in England, New York City in the United State and Melbourne City in Australia. With Manchester city expanding across all continents there are plans for it to keep buying clubs and growing rapidly. Speaking at the London sport Business summit, a member of the group said Its not only about environmental growth, but about stretching the audiences. Women and kids are very important to us and part of our growth policy. Even though while we are being involved in new businesses around the football world. We made it known that we are only about football. Within sports its only about football, but within football we are also looking at new businesses like venture capital investments and esports. One-way City have taken their brands to new audiences has been via social and digital media channels. In 2018 when Man City won the league, there has been the behind-the-scenes documentary series broadcast on Amazon Prime on how they got there. (theweek.co.uk, 2018)
The Business to business decision is a progression that takes time because they have to make sure it brings them success. The first step would be for the club to find out where the problem lies and how they can quickly fix it. For example, if the store sells out of stock. The next stage would be to identify what they specifically require solving the problem. They would need to call their head offices for them to print out some more.
Once the club have their new suppliers or same supplies, they will offer suggestions to the club on what they can deliver for the club so they dont run out of stock next time and what their price range will be. This will be a very important part as it gives the club a chance to assess all their options on the table. Also, the club will be given different types of deals and options so they can get the best deal possible to improve how the kit store works in the future. After they have negotiated with each of the companies, they will make their selection based on the schemes offered to them. Once the selection is complete, the club will put in their first order of equipment from their new supplier. Several months into their new B2B deal, the club will weigh whether it has been successful so far. If they are satisfied with the supplier, they will look to maintain the B2B partnership over a longer period
Business to business has a big importance in the football industry as it offers services that clubs needs for example to get stewards to the football clubs. A b2b deal can take a long time because it can be a deal with a company around the world or a very local company and a lot of influenced needs to be taught about before agreeing a deal which can also result in a deal not being done. Business to Business will help build the club globally.
- ALEXANDRIS, K. AND TSIOTSOU, R. H.
Segmenting soccer spectators by attachment levels: a psychographic profile based on team self-expression and involvement
In-text:(Alexandris and Tsiotsou, 2012)
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- BEECH, J. AND CHADWICK, S.
The marketing of sport
In-text:(Beech and Chadwick, 2007)
Beech, J. and Chadwick, S. (2007).The marketing of sport. Harlow, England: Prentice Hall/Financial Times.
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- FUNK, D. C., ALEXANDRIS, K. AND MCDONALD, H.
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In-text:(Funk, Alexandris and McDonald, 2016)
Funk, D., Alexandris, K. and McDonald, H. (2016).Sport Consumer Behaviour. Milton: Taylor and Francis.
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In-text:(Lynch, Lynch and profile, 2019)
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In-text:(The Week UK, 2019)
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