New Media and Global Marketing in Sport

It’s scary to think how quickly things can develop. New media between the Beijing 2008 Olympic Games and London 2012 Olympic Games is an example of this. A fantastic statistic I discovered from reading Chanavat and Desbordes’ (2014) research paper was that “Each day of the London Olympics reportedly saw more tweets posted than during the whole of the Beijing Games.” This identifies how significantly the digital landscape has grown over the four years between events.

Olympic-Sized-Consumption-infographic
The number of Twitter accounts increased by 29,900% between 2008 and 2012 (Zakkas et al., 2012)

Large scale events such as the Olympic Games give organisations wider market access – the internet can expand the reach and trading of small firms but has the potential to reach global markets (Vaaler and Katz, 2001). This is how ambush marketing can occur where a non-official sponsor of an event can capture an audience’s attention and lead them to believe they are official sponsors – for example Nike are not official sponsors of the Football World Cups but many people believed they were.

Santomier (2008) states that new media facilitates the aggregation of consumers across multiple platforms on a global scale while communicating a brand’s message and building relationships with consumers. This makes it very appealing for an organisation to go global. However, they have many decisions to consider;

Why Enter International Markets?

Push factors such as competition, saturation, or recession in the home market can force an organisation to take themselves international, as well as to increase the existing life cycle of a product.

In contrast, pull factors such as gaps in foreign markets and the opportunity to grow the brand can also cause organisations to go global.

Which Market Entry Strategy?

There are 2 potential options to consider;

  • The Sprinkler Launch where the product is released simultaneously in all markets (Ohmae, 1989; Riesenbeck and Freeling, 1991).

The benefits of this option include it being less time consuming, which means more focus can be spent on developing new products. In addition, it also prevents competitors seeing the product and developing a response before it arrives on the market.

  • The Waterfall Launch where the product is released sequentially in one market after another (Aayal and Zif, 1979).

The benefits of this option include more control as you can focus on one market at a time, and can make mistakes and learn on a smaller scale prior to launches elsewhere, meaning effort can be concentrated to ensure the best possible entry. For example, if Adidas launched new football boots in Spain alone then they could re-act accordingly depending on how well the product is received. If it’s successful then it can be released globally. If it’s not successful then they can improve the shoes before releasing them globally because it becomes a lot harder for the shoes to be a success if they’ve already developed a bad reputation.

Standardization or Adaptation?

International marketing strategy (whether standardized or adapted) will lead to superior performance only to the extent that it properly matches the unique set of circumstances that the firm is confronted by within a particular overseas market (Theodosiou and Leonidou, 2002). For example, McDonalds have different types of the same product across the globe such as the ‘McOz’ burger in Australia, the Veggie burger in India, and Pork burgers in Thailand. In addition, does the way the product is marketed need to change? Taking advantage of current events or trends as a strategic opportunity can give organisation’s a competitive advantage by expanding markets globally. Here’s how McDonalds have done it…..

(Ben-Haim, 2013)

What Internet Barriers are there?

  • Limits to access globally
  • Infrastructure
  • Laws and Regulations
  • Reactivity – reaction time to development of technology and legal standards
  • Fulfilment
  • Language
  • Security
  • IT adaptions – websites not fit for global consumption
  • Conventions

 

Will Wood, Leeds Beckett University, Sport Marketing Student

References;

AdStorm (no date) Global marketing: AdStorm has a world of experience – advertising agency AdStorm. [Online] Available at: http://www.adstorm.co.uk/services/global-marketing-2/global-marketing/ [Accessed: 18 April 2016].

Chanavat, N. and Desbordes, M. (2014) Towards the regulation and restriction of ambush marketing? The first truly social and digital mega sports event: Olympic Games, London 2012. [Online] Available from: https://my.leedsbeckett.ac.uk/bbcswebdav/pid-1220146-dt-content-rid-3714636_1/courses/17506-1516/the%20first%20truly%20social%20and%20digital%20mega%20sports%20event.pdf [Accessed: 18 April 2016].

Eden Ben-Haim (2013) McDonalds global strategy. [Online] Available at: https://www.youtube.com/watch?v=OCG7ScRP1ws [Accessed: 18 April 2016].

Santomier, J. (2008) New media, branding and global sports sponsorship. [Online] Available from: https://my.leedsbeckett.ac.uk/bbcswebdav/pid-1220146-dt-content-rid-3714635_1/courses/17506-1516/New%20media%2C%20branding%20and%20global%20sports%20sponsorship.pdf [Accessed: 18 April 2016].

Theodosiou, M. and Leonidou, L. (2002) Standardization versus adaptation of international marketing strategy: An integrative assessment of the empirical research. [Online] Available at: https://my.leedsbeckett.ac.uk/bbcswebdav/pid-1220146-dt-content-rid-3714634_1/courses/17506-1516/international%20marketing%20strategy.pdf [Accessed: 18 April 2016].

Zakkas, S., Vlachos, G., Stathoyiannis, Y. and Adamopoulou, C. (2012) Online media and Olympics. [Online] Available at: http://infographicsmania.com/online-media-and-olympics/ [Accessed: 18 April 2016].

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s