The impact of digital marketing within the sport retail industry

By

ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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ABSTRACT

In today's digital world, new marketing platforms have emerged that connect sport organizations with fans on levels beyond the reach of traditional media. Sport marketers are using the Internet, social networking sites, and mobile technology as the foundation of new marketing strategies, citing it as a cost-effective avenue for reaching a larger audience of sport consumers. Social networking sites, in particular, are rapidly becoming the most accessible channel for sports fans to communicate about their favourite teams, players, and coaches and as an outlet to express their enthusiasm. However, their impact on the industry has not been fully studied. Meanwhile, sport properties have becoming increasingly concerned about their ability to control their intellectual property in a digital environment that is constantly changing with each technological innovation. Professional sport is leading the way for the integration of social media and mobile technology into the sport marketing mix. The JJB and the Sports direct were the first leagues to utilize the enormous success of text messaging to provide score updates of games currently in progress to subscribing fans. Subsequently, both professional and collegiate sport properties have created fan pages on Facebook and Bebo to keep fans engaged. This explosion of new technology in sport creates a need for to sport marketers to fully understand how to use the medium to its fullest potential.

Contents

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Background1

Statement of the Problem1

Significance of the Study1

Purpose Statement2

Research Questions2

CHAPTER 2: LITERATURE REVIEW4

The Change of the Matrix4

Digitization and Convergence4

The Economics of the Information Age6

Network Externalities6

Increasing Returns to Scale7

Path Dependence8

Lock-In9

Communication Technologies10

Pull vs. Push10

The Internet10

Streaming Audio and Video11

YouTube11

Bebo12

Webcasting12

Podcasting12

Blogs13

Peer-to-Peer (P2P) Computing13

Mobile Internet14

Wireless Advertising15

Consumer Behavior in UK16

Moving from Mass Production to Customization17

Convergence & the Converging Consumer18

A traditional consumer:19

The cyber consumer:19

The centaur:19

Media's Impact on the Consumer21

The Cyber Consumer22

Measuring Consumer Activity24

Consumer Use of Word of Mouth25

Viral Marketing25

The New Reality of the Global Digital World26

Current Trends and What Lies Ahead27

Convergence27

Communicating Through the Internet28

CHAPTER 3: METHODOLOGY32

Research Design32

Data Collection33

Analysis of Data33

Secondary Data34

Types and Sources of Secondary Data35

CHAPTER 4: DISCUSSION AND ANALYSIS37

Analysis of Research Question 137

Mobile Technology37

Social Networking Sites in Sport39

Rachael Church-Sanders, JD Sport41

The Changes41

The Consumers42

The Future43

Oliver Slipper, Group Chief Executive, JJB44

The Changes44

The Consumers44

The Future45

Arnaud Maillard, Internet Director, Sports Direct46

The Changes46

The Consumers47

The Future47

CHAPTER 5: CONCLUSION49

REFERENCES51

APPENDICES56

CHAPTER 1: INTRODUCTION

Background

During the last years, the boom of the Internet has carried along with it new possibilities for communication, in addition, other technological developments of society together act to form a new reality in which companies have to rethink their means for communicating with consumers.

Statement of the Problem

In a new reality where consumers seem to reap ...