Market Research
Unparalleled depth and breadth of experience and renowned economic expertise to the challenges and complexities facing sports, entertainment, and media companies in today’s environment.
Market Research
Marketing research is only as good as the data collected. SportsEconomics offers a full suite of custom business intelligence and consulting solutions to address clients’ critical business issues and to enhance organizational performance. Our research not only provides clients with a better understanding of the target customers and markets in which they operate, but also provides in-depth market analysis and insight to put that information to optimal use.
We offer research and strategic analyses on topics including effectiveness of marketing projects and promotions, demand analysis, ticket pricing optimization, media market optimization, facility amenity evaluation (via conjoint analysis), and sponsorship valuation. Additionally, we help clients understand the demographics, ethnographics, and psychographics of their target markets – knowledge that can be employed to improve marketing effectiveness and efficiency.
The potential for introducing new products to market is enormous — and so are the risks. If a sound and consistent methodology is not employed in marketing research analyses, the probability of obtaining erroneous results is high. It is imperative to select a firm that not only has substantial experience in marketing research, but also has a reputation for consistently providing accurate results. We provide full-service, cost-effective solutions to multiple phase research projects utilizing proven methodologies, and can affirm our results to any audience necessary.
Demand Analysis
By examining the overall effect of promotions on attendance and the marginal impact on attendance of additional promotional days, teams can better assess the relative effectiveness of various promotional options.
Loyalty Program Development
Developing a loyalty program can aid in creating tailored offers based on consumer motivation, which can result in increased revenues, improved marketing efficiency, additional sponsorship opportunities, and other benefits.
Naming Rights Analysis
The sale of naming rights, Permanent Seat Licenses (PSL’s), and luxury suites have evolved as potential sources of additional long-term income for a franchise or facility.
Survey Design and Analysis
In order to garner accurate and actionable results, it is critical to determine the target, audience, and purpose of the survey prior to initiating any marketing research project.
Facilities Amenities
Many facilities overlook the importance of market research when setting their marketing strategies. Understanding motivations and targeting these consumers accordingly can result in increased revenues
Luxury Suite Pricing
Given the high costs of operating a sports program or team, numerous sport organizations have implemented or are considering variable ticket pricing in an effort to maximize revenues.
Segmentation Studies
Market segmentation is used as a strategic marketing tool for defining markets and thereby allocating resources, and is a technique that is widely accepted as a cornerstone of successful marketing.
Target Marketing Research
Segmenting ticket purchasers based on consumer motivation towards these same game/product characteristics, and targeting those identified segments accordingly can result in increased revenues.
Ticket Holder Retention
Fans have varying motivations that influence their decision to purchase tickets, and targeting these identified segments based on these motivations can accordingly increase ticket purchases
Feasibility Studies
Feasibility research is often used to forecast economic impact and provide information in the decision to publicly fund sports venues, sports commissions/authorities, or local events.
Media Analysis
Given the uncertainties and heightened competition for viewers and advertising dollars, in conjunction with rising programming costs, it is critical for media owners to develop their strategies based on market research.
Sponsorship & Endorsement Analysis
Given the proliferation of sports and the media outlets in which they are viewed, sponsorship evaluation has emerged as a popular need within the sports industry.
Ticket Pricing
In addition to understanding how to set pricing, many organizations overlook the importance of modifying their marketing strategies in conjunction with their pricing changes.
Demand Analysis
Rather than solely functioning to motivate more fans to come to games, today promotions are frequently part of an overall sponsorship package used to advertise promotional sponsors’ products. With the growing need to grow revenue streams, if promotions are successfully implemented, teams can simultaneously increase monies from corporate sponsors and auxiliary income sources resulting from increased attendance. Furthermore, competition for the entertainment dollar continues to escalate, making evaluation of the relative impact of price and nonprice promotions on attendance gains especially important.
For marketers, it is important to understand which controllable or uncontrollable variables affect demand. However, marketers should focus their attention on variables that they can control, such as their promotional strategy. By examining the overall effect of promotions on attendance and the marginal impact on attendance of additional promotional days, teams can better assess the relative effectiveness of various promotional options.
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Facilities Amenities
Many facilities overlook the importance of market research when setting their marketing strategies. For instance, members have different motivations for joining and utilizing club and fitness facilities. Sports spectators similarly have different motivations and willingness to pay for the games which they attend. Understanding these inherent expectations and motivations and targeting these consumer segments accordingly can result in increased revenues and more efficient and effective marketing and promotions. Further, these consumer insights can also be used to determine member/spectator willingness to pay, which can lead facilities to better customize their packages and to optimize their amenities offered so as to secure a higher member/fan base and to potentially improve prices and increase profits.
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Feasibility Studies
Feasibility research is often used to forecast economic impact as well as to provide information in the decision to publicly fund sports venues, sports commissions/authorities, or events that may be hosted in a local community. In broad terms, SportsEconomics can assist developers, local commissions, event owners, and public agencies in assessing the future economics and outcomes of real estate projects, economic development plans, events, and team relocations, to name a few. Some applications of feasibility research SportsEconomics conducts include market assessment, economic impact analysis, financing sources, and facility valuation.
Given the controversy surrounding the funding of sports teams and events by the public, and the frequent use of feasibility studies in negotiations between governments and event/facility owners, it is critical to appropriately assess net benefit. In addition to our breadth of experience in feasibility research, SportsEconomics has substantial experience in the negotiations process between governments and event organizers/facility owners, and in the explanation of results to various committees and media entities.
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Loyalty Program Development
A key objective of all professional sport marketers is to increase game attendance. The perishable nature of the spectator sport product places a premium on sales and marketing in this industry. Unsold seats result not only in reduced gate receipts, but also forfeit potential auxiliary revenue from parking, concessions, and merchandise sales.
In order to understand fan motivation for purchase, organizations must have methods for data collection so as to monitor each purchasers’ behavior throughout the season. To achieve this, a suitable value proposition needs to be created for fans such that they are willing to provide accurate information. Developing a loyalty program can aid in creating tailored offers based on consumer motivation, which can result in increased revenues, improved marketing efficiency, additional sponsorship opportunities, and other ancillary benefits associated with increased attendance.
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Luxury Suite Pricing
A key objective of all professional sport marketers is to increase game attendance. The perishable nature of the spectator sport product places a premium on sales and marketing in this industry. Unsold seats result not only in reduced gate receipts, but also forfeit potential auxiliary revenue from parking, concessions, and merchandise sales.
Variable ticket pricing refers to changing the price of a ticket to a sporting event based on the expected demand for that event. Given the high costs of operating a sports program or team, numerous sport organizations have implemented or are considering variable ticket pricing in an effort to maximize revenues. While many teams inappropriately raise prices with team success or due to financial constraints, nearly all of these organizations do not have an existing methodology in place for predicting demand or for examining the effectiveness of their current pricing scheme, which can often result in lower attendance and profits.
In addition to understanding how to set pricing, many organizations overlook the importance of modifying their marketing strategies in conjunction with their pricing changes. Segmenting potential single-game ticket purchasers based on consumer motivation towards these same game characteristics and targeting those identified segments accordingly can result in increased revenues.
Click here to link to our case study:
Media Analysis
Given the uncertainties and heightened competition for viewers and advertising dollars, in conjunction with rising programming costs, it is critical for media owners to develop their strategies based on business analysis and market research. In order to compete within the saturated market of media and viewing options, media entities need to understand the predominant constituents of the channel's viewership and how to target these individuals to gain higher viewership and advertising. Moreover, an understanding of these target customers allows for better awareness of the optimal markets for channel distribution, the value proposition of the channel and its corresponding pricing, and the ability to maximize the subscriber base and the revenue per subscriber.
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Naming Rights Analysis
Frequently, team and arena owners are in need of determining additional revenue sources for their operations. The sale of naming rights, Permanent Seat Licenses (PSL’s), and luxury suites have evolved as potential sources of additional long-term income for a franchise or facility. While there are political issues involved with selling the name of a facility, particularly those that are newly constructed and/or publicly owned, political entities and businesses have realized that facility naming rights have become a unique source of income which could offset costs borne by taxpayers. Furthermore, corporations seek facility naming rights due to their desire for facility name inclusion in all media coverage of the venue’s attractive calendar of events, for exclusive in-venue product distribution rights, and to demonstrate local community citizenship. Additionally, the purchase of naming rights represents a unique marketing opportunity as there are a limited number of facilities and arenas which house the operations of major league teams, making imitation or duplication by competitors virtually impossible.
Corporations often employ SportsEconomics to assess the return on investment of their naming rights initiatives, while properties often seek to gauge their true market value. Often, both corporations and properties/franchises will utilize these analyses to better their position in contract negotiations. Moreover, such analyses can determine whether the naming rights opportunity aligns with its sales, marketing and public relations objectives help corporations find ways to strategically enhance the value of the deal they are considering, and to.
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Segmentation Studies
Market segmentation is used as a strategic marketing tool for defining markets and thereby allocating resources, and is a technique that is widely accepted as a cornerstone of successful marketing. Segmentation studies use statistical techniques to combine attitudinal and demographic data to develop segments that are easier to target. The purpose for segmenting a market is to allow marketing and sales programs to focus on the subset of prospects that have the highest probability of purchasing the product offering rather than targeting a broader audience with a general message.
Market segmentation is concerned with individual or group differences in response to specific market variables (e.g. preferences, lifestyles, media habits, etc.). The strategic presumption is that if these response differences exist, can be identified, and are reasonably stable over time, and if the segments can be efficiently reached, the company may increase its market share beyond that obtained by assuming market homogeneity.
From a marketing management viewpoint, market segmentation is the act of dividing a market into distinct groups who might be attracted to different products or services. By dividing the market into relatively homogenous subgroups or target markets, both strategy formulation and tactical execution can be more effective, and can result in more efficient marketing spend. SportsEconomics’ Associates have performed such studies for clients in sports, packaged goods, media, and retail industries.
Sponsorship & Endorsement Analysis
Given the proliferation of sports and the media outlets in which they are viewed, sponsorship evaluation has emerged as a popular need within the sports industry. Corporations often employ our services to assess the return on investment of their sponsorship initiatives, while properties often seek to gauge their true market value. Often, both corporations and properties/individuals will utilize these analyses to better their position in contract negotiations. Moreover, such analyses can help corporations find ways to strategically enhance the value of the sponsorship or endorsement they are considering, and to determine whether the opportunity aligns with its sales, marketing and public relations objectives.
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Survey Design and Analysis
Knowing what the customer wants is the key factor to success in any type of business. The best way to find this information is to conduct primary research utilizing a survey instrument.
Many surveys are designed such that the length, content, or wording is not matched to the intended audience. In order to garner accurate and actionable results, it is critical to determine the target, audience, and purpose of the survey prior to initiating any marketing research project.
SportsEconomics offers a full suite of custom marketing research solutions. We can assist clients in research strategy and methodology development, sample selection, questionnaire design, survey implementation (in-person or online), and data analysis. Our research not only provides clients with a better understanding of the target customers and markets in which they operate, but also provides in-depth market analysis and insight to put that information to optimal use. SportsEconomics’ Associates have performed such studies for clients in sports, health and fitness, packaged goods, media, and retail industries.
Target Marketing Research
Many organizations overlook the importance of target marketing when setting their marketing strategies. The purpose for segmenting a market is to allow marketing and sales programs to focus on the subset of prospects that have the highest probability of purchasing the product offering.
Professional sport marketers are constantly seeking ways to increase game attendance. Segmenting ticket purchasers based on consumer motivation towards these same game/product characteristics, and targeting those identified segments accordingly can result in increased revenues, more efficient and effective marketing and promotions, and other ancillary benefits associated with increased attendance.
Similarly, in order to compete within the saturated market of media and viewing options, media entities also need to understand the predominant constituents of their product so as to better target these individuals to maximize the subscriber base and advertising. Understanding these target segments also allows media companies to assess their value proposition and pricing, so as to maximize the revenue per subscriber by tailoring services and products to each segment.
Click here to link to our case study:
Ticket Pricing
A key objective of all professional sport marketers is to increase game attendance. The perishable nature of the spectator sport product places a premium on sales and marketing in this industry. Unsold seats result not only in reduced gate receipts, but also forfeit potential auxiliary revenue from parking, concessions, and merchandise sales.
Variable ticket pricing refers to changing the price of a ticket to a sporting event based on the expected demand for that event. Given the high costs of operating a sports program or team, numerous sport organizations have implemented or are considering variable ticket pricing in an effort to maximize revenues. While many teams inappropriately raise prices with team success or due to financial constraints, nearly all of these organizations do not have an existing methodology in place for predicting demand or for examining the effectiveness of their current pricing scheme, which can often result in lower attendance and profits.
In addition to understanding how to set pricing, many organizations overlook the importance of modifying their marketing strategies in conjunction with their pricing changes. Segmenting potential single-game ticket purchasers based on consumer motivation towards these same game characteristics and targeting those identified segments accordingly can result in increased revenues.
Click here to link to our case study:
Ticket Holder Retention
SportsEconomics possesses substantial direct experience in economic consulting in the sports industry, with specific and highly relevant knowledge of the economic impact of events, teams, and facilities. These studies are often used by sports commissions/authorities as well as local governments in their decision to publicly fund sports venues or events that may be hosted in their local community.
Considering the controversy surrounding the funding of sports teams and events by the public, and the frequent use of economic impact studies in negotiations between commissions, governments and event organizers, it is critical to select a firm with a reputation for consistently providing an accurate assessment of economic impact. In addition to our extensive background in economic impact assessment, SportsEconomics has substantial experience in the negotiations process between governments and event organizers/facility owners, and in the explanation of results to various governmental committees and media entities.
Click here to link to our case study: