Lecture_2 (1)

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UNIQUE FEATURES OF SPORT

UNIQUE FEATURES OF SPORT

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1. PEOPLE DEVELOP IRRATIONAL PASSIONS A unique feature of sport is

1. PEOPLE DEVELOP IRRATIONAL PASSIONS

A unique feature of sport is the

phenomenon of people developing irrational passions for sporting teams, competitions, or athletes. Sport has a symbolic significance in relation to performance outcomes, success and celebrating achievement that does not occur in other areas of economic and social activity. Sport managers must learn to harness these passions by appealing to people’s desire to buy tickets for events, become a member of a club, donate time to help run a voluntary association, or purchase sporting merchandise.
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2. DIFFERENCES IN JUDGING PERFORMANCE There are also differences between sport

2. DIFFERENCES IN JUDGING PERFORMANCE

There are also differences between sport organizations

and other businesses in how they evaluate performance. Private or publicly listed companies exist to make profits and increase the wealth of shareholders or owners, whereas in sport it is often important to win championships, deliver services to stakeholders and members, or meet community service obligations. Sport managers need to know about these multiple organizational outcomes, while at the same time being responsible financial managers to ensure they have enough resources to support their organization’s strategic objectives.
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3. THE INTERDEPENDENT NATURE OF RELATIONSHIPS BETWEEN SPORTING ORGANIZATIONS 4. ANTI-COMPETITIVE

3. THE INTERDEPENDENT NATURE OF RELATIONSHIPS BETWEEN SPORTING ORGANIZATIONS 4. ANTI-COMPETITIVE BEHAVIOR

Competitive

balance is also a unique feature of the interdependent nature of relationships between sporting organizations that compete on the field but cooperate off the field to ensure the long-term viability of both clubs and their league. In most business environments the aim is to secure the largest market share, defeat all competitors and secure a monopoly. In sport leagues, clubs and teams must cooperate to share revenues and playing talent, and regulate themselves to maximize the level of uncertainty in the outcome of games between them, so that fans’ interest will be maintained.
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5. SPORT PRODUCT (A GAME OR CONTEST) IS OF VARIABLE QUALITY

5. SPORT PRODUCT (A GAME OR CONTEST) IS OF VARIABLE QUALITY

The

sport product, when it takes the form of a game or contest, is also of variable quality. Game outcomes are generally uncertain, one team might dominate, which will diminish the attractiveness of the game. The perception of those watching the game might be that the quality has also diminished as a result, particularly if it is your team that loses! The variable quality of sport therefore makes it hard to guarantee quality in the marketplace relative to providers of other consumer products such as mobile phones, cars or other general household goods.
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6. IT ENJOYS A HIGH DEGREE OF PRODUCT OR BRAND LOYALTY

6. IT ENJOYS A HIGH DEGREE OF PRODUCT OR BRAND LOYALTY

Sport

also enjoys a high degree of product or brand loyalty, with fans unlikely to change the team or club they support or to switch sporting codes because of a poor match result, or the standard of officiating. Consumers of household products have a huge range to choose from and will readily switch brands for reasons of price or quality, whereas sporting competitions are hard to substitute. This advantage is also a negative, as sporting codes that wish to expand market share find it difficult to attract new fans from other codes due to their familiarity with the customs and traditions of their existing sport affiliation.
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7. IT ENGENDERS VICARIOUS IDENTIFICATION Sport engenders unique behaviours in people,

7. IT ENGENDERS VICARIOUS IDENTIFICATION

Sport engenders unique behaviours in people, such

as emulating their sporting heroes in play, wearing the uniform of their favourite player, or purchasing the products that sporting celebrities endorse. This vicarious identification with the skills, abilities and lifestyles of sports people can be used by sport managers and allied industries to influence the purchasing decisions of individuals who follow sport.
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8. SPORT FANS EXHIBIT A HIGH DEGREE OF OPTIMISM Sport fans

8. SPORT FANS EXHIBIT A HIGH DEGREE OF OPTIMISM

Sport fans also

exhibit a high degree of optimism, at times insisting that their team, despite a string of bad losses, is only a week, game or lucky break away from winning the next championship. It could also be argued that the owners or managers of sport franchises exhibit a high degree of optimism by toting their star recruits or new coach as the path to delivering them on-field success.
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9. SPORT ORGANIZATIONS ARE RELATIVELY RELUCTANT ADOPT NEW TECHNOLOGY Sporting organizations

9. SPORT ORGANIZATIONS ARE RELATIVELY RELUCTANT ADOPT NEW TECHNOLOGY

Sporting organizations are

relatively reluctant to adopt new technologies unless they are related to sports science, where on-field performance improvements are possible. In this regard sport organizations can be considered conservative, and tied to traditions and behaviours more than other organizations.
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10. SPORT OFTEN HAS A LIMITED SUPPLY The final unique aspect

10. SPORT OFTEN HAS A LIMITED SUPPLY

The final unique aspect of

sport is its limited availability. In other industries, organizations can increase production to meet demand, but in sport, clubs are limited by season length and the number of scheduled games. This constrains their ability to maximize revenue through ticket sales and associated income. The implication for sport managers is that they must understand the nature of their business, the level of demand for their product and services (whatever form that may take), and the appropriate time to deliver them.