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279 Chapter 17 The Role of Sports Marketing in the Global Marketplace Kijpokin Kasemsap Suan Sunandha Rajabhat University, Thailand ABSTRACT This chapter introduces the role of sports marketing in the global marketplace, thus explaining the understanding of the concept of sports marketing, internalization of sports, entrepreneurship in sports, branding in sports, sponsorship and sports, Corporate Social Responsibility (CSR) and sports, tourism and sports, regional development and sports, marketing and sports, and action sports. Practitioners in the sports management area need to take advantage of the international marketplace for both their business activities and marketing strategies. This chapter focuses on the various different practical and research avenues for international sports marketing. As the world continues to globalize, itis vital that ‘more practical and research inquiry is focused on how to combine both the sport marketing and inter- national business literature in order to establish a research agenda for future international research- ers from around the world to focus on international sporting developments. Understanding the role of sports marketing in the global marketplace will significantly enhance the organizational performance and achieve business goals. INTRODUCTION 2000; Robinson, 2006). The sports industry is one of the fastest growing business sectors in the ‘The many facets of the sport industry constitute majorbusiness, economic and social activity, with various operations occurring at different levels and often in parallel (Kauppi, Moxham, & Bamford, 2013). The professional sports events industry is becoming increasingly competitive as a result of a worldwide social trend toward people attending sports events as spectators and an ever-increasing range of available spectator events (Hill & Green, DOK: 10,4018/978-1-4666-5994-0.ch017 world today and its primary source of revenue is derived from fans (DeSarbo & Madrigal, 201 1). Sports have emerged as one of the most impor- tant and universal social institutions in modern society, having enormous significance globally (Chadwick, 2009). Sport-based entrepreneurship involves diverse factors, such as proactive behav- ior, innovation and risk (Terra, Batista, Campos, & Almeida, 2013). Consequently, the bridge Copyright © 2014, 161 Glo Copying o asst print reece frm without writen permissoe of IGT Gaba is ote, between entrepreneurial studies and sport may be constructed from the perspective of sport-based entrepreneurship (Terraetal.,2013). International sports marketing occur worldwide as numerous companies and organizations involved in sports focus onthe global market as aprelude to achieving economic and financial success (Ratten & Ratten, 2011). The worldwide appeal of sports is due to the sports industry being worth an estimated $141 billion (Klayman, 2009). Moreover, sports as the business offers massive potential forrevenue gen- eration on a global scale for all parties involved (Klayman, 2009). Goldman and Johns (2009) stated that the business of sports is a significant economic sector at the individual, organizational and national levels and is an important contribu- tor to economic activity and wealth creation. Sports have become increasingly commercialized and have internationalized over the past decade (Bauer, Sauer, & Schmitt, 2005), which havebeen a result of entrepreneurial marketing ventures created within sports. Sports companies in global market need to be progressive service sellers in order to compete with other leisure activities (Bauer et al., 2005) and entrepreneurial sports ventures that do this succeed in the competitive marketplace. Entrepreneurial sports. ventures involve a sport product (Ratten & Ratten, 2011). A sports product is defined as a good or service or any combination of the two that is designed to provide benefits toa sports spectator participantor sponsor (Shank, 2005). The practical implications of sports products within the sports management and marketing fields are important as sport and the activities are based on uncertainty of outcome (Chadwick, 2005). Sports marketing are an important aspect of international sports ventures as it is necessary to the businesses growth and survival (Ratten & Ratten, 2011). In this business environment, the ability to offer high-quality events and services has become accitical issue for professional sports, 280 The Role of Sports Marketing in the Global Marketplace organizations (Ko, Zhang, Cattani, & Pastore, 2011). As in all service industries, the provision of high-quality services to consumers promotes customer satisfaction and loyalty, which, in turn, enhances the profitability of the service provider (inthis case, the professional sports organizations) (Dagger & Sweeney, 2007). Many sports teams collaborate with corporate sponsors worldwide through their international marketing campaigns. Chadwick (2005) defined sports marketing as a process through which acontest with an uncertain outcome is staged, creating opportunities for the simultaneous fulfillment of objectives among sports customers, sports businesses, participants and other related individuals, groups and organiza- tions. From an international perspective, sports related marketing is defined as the opportunity for an organization to advertise their services in a sports-related context (Ratten & Ratten, 2011). There seems to be a lack of integration between the sports marketing and international business disciplines both fromapractical and alsoacademic standpoint (Ratten & Ratten, 2011). As interna- tional sports marketing includes both products and services, it is important to distinguish how these points operate in the business environment (Ratten & Ratten, 2011). This chapter introduces, the role of sports marketing in the global market- place, thus explaining the understanding of the concept of sports marketing, internalization of sports, entrepreneurship in sports, branding in sports, sponsorship and sports, CSR and sports, tourism and sports, regional development and sports, marketing and sports, and action sports. BACKGROUND Globalization and technological advances have greatly advanced the business opportunities for sports organizations, marketersand entrepreneurs, involved in sports (Ratten & Ratten, 2011). The The Role of Sports Marketing in the Global Marketpla: increased number of people traveling worldwide in addition to international migration has meant that marketing innovations within sports travel quickly (Ratten & Ratten, 2011). In the interna- tional environment sports companies and players need to be entrepreneurial to stay ahead of the competition andat the forefrontof theirrespective sports. Entrepreneurial sports ventures inthe inter- national context are business activities involving sports that comprise risk taking, innovation and competitive aggressiveness that occur in multiple countries. Entrepreneurship is inherent in many sporting activities because of sports universal global appeal. Sports are often referred to as the global languages as most people understand the rules of the game and in many cases no verbal translation is required (Meenaghan & O'Sullivan, 1999). Sports marketing can be divided into two categories: the marketing of sports and market- ing with sports (Shannon, 1999). The marketing of sports includes marketing sporting events and equipment to fans and participants (Goldman & Johns, 2009). This type of sports marketing is inherent in the introduction of new sports such as action sports and innovative new sports products. ‘The marketing with sports includes the promotion of non-sporting products or services at sporting events and the use of athletes to endorse non-sports products and services (Goldman & Johns, 2009). Professional sports clubs clearly need todefine who they are (identity), who they want to target (segmentation and targeting), how they want tobe perceived and how they differentiate themselves from the other main competitors (positioning) (Bodet & Chanavat, 2010). An accurate focus on these sports related strategic steps will obviously help managers to increase their performance on the foreign markets but they also help them to engage a strong reflection about how they are (or want to be) perceived on their national market and how this can be compatible with the strategies developed overseas (Bodet & Chanavat, 2010). MAIN FOCUS OF THE CHAPTER This chapter introduces the role of sports market- ing in the global marketplace, thus explaining the understanding of the concept of sports marketing, internalization of sports, entrepreneurship in sports, branding in sports, sponsorship and sports, CSR and sports, tourism and sports, regional development and sports, marketing and sports, and action sports. Concept of Sports Marketing Sports marketing as the theoretical constructs are inconclusive and many different alterna- tives are suggested (Estiri, Aghazadeh, Rayej, & Raoufi, 2010). Pitts and Stotlar (1996) stated that academicians have not yet agreed on what sports marketing are. Mullin, Hardy, and Sutton (1993) and Shilbury, Quick, and Westerbeck (1998) mentioned that the term sports marketing was first used in the US by the publication titled “Advertising Age” in 1978. Kesler (1979) stated that sports marketing describe the activities of consumer and industrial product and service marketers who were increasingly using sports as the promotional vehicles for their products or services through sports sponsorship. Sports ‘marketing comprise of many areas such as sports advertising, sports products, and sports activities, (Estiri et al., 2010). Sports advertising include all advertisements that introduce and promote sports, products and sports activities (Estiri et al., 2010). Advertising manufactured products and sports, events, promoting these events, dealing with financial sponsors and acquiring the necessary permits ate all included in this category. Sports, products deal with those kinds of manufactured sports products that play a significant role in the success of athletes or sports institutions (Estiri et al., 2010). Sports activities are the kinds of activities that provide people (customers) with 281 the choice of either participating in one or more sports or being spectators of sports competitions to fill their spare time (Estiri et al., 2010). This is considered a sub-division of marketing services. Internationalization of Sports Due to economic globalization and international- ization constituting an increasing concern for the most successful football clubs, the competition for foreign markets has increased dramatically (Chanavat & Bodet, 2009). International sports ‘marketing are the broad areas for academic and practitionerresearch because of the cross-cultural ability of sports to appeal to different generations ‘of people from multiple geographic locations (Ratten & Ratten, 2011). An increasing amount of people is able to view sports events from the Internet, which has helped to globalize a diverse array of sports including cricket, football and surfing. However, as the ability of people to play and watch professional sports is influenced by the socio-economic conditions of their country, the research on international sportsand in particularly professional sports suchas the National Basketball Association (NBA), National Hockey League and Major League Baseball have come from North America, Europe and Oceania. This has meant that most contributions to international sports marketing have been from developed economies and less is known about an emerging market per- spective (Goldman & Johns, 2009), In the context of professional-sports clubs, internationalization appears to bearecent but rapidly growing phenom- enon that has been enhanced by the globalization of sportsand the professionalization and evolution of sports clubs into transnational corporations (Giulianotti & Robertson, 2004). Several football clubs have already started to think global, with Manchester United being commonly considered the pioneer and the example (Hill & Vincent, 2006). Marketing efforts of large corporations have focused on professional sports in developed countries. However, recently with the increased 282 The Role of Sports Marketing in the Global Marketplace economic advancement of Eastern European countries, China and India, more effort is being placed on attracting more people to professional sports leagues. In addition, the amateur sports, leagues that operate internationally have to a lesser extent been studied in terms of how they operate in the global marketplace. The internation- alization of sports has been seen in professional sports teams focusing on the international market instead of their home country market (Ratten & Ratten, 2011). The large increase in middle class households in China and India together with their large population has attracted more professional sports teams to these countries, In addition, the declining birth rate and ageing population of countries in Northern Europe and the United States has spurred professional sports leagues to focus on these regions. The NBA has one of the most aggressive international expansion strategies as their home market has seen a decrease in ticket sales and there is increased interest in basketball from other countries outside of the United States. ‘Teams in the NBA have been internationalizing by focusing on the international marketplace in order to broaden their fan base and sponsorship appeal. An example of this point is the Houston Rockets in the NBA who have a Mandarin version of their Web site and a weekly Mandarin radio show (Clarke & Mannion, 2006). Entrepreneurial sports ventures have inter- nationalized by focusing on their entertainment appeal (Ratten & Ratten, 2011). Sports are often seen as the forms of entertainment, which have been referred to as “sportainment” (Goldman & Johns, 2009). Moreover, the global appeal of American movies and television shows has meant that many professional sports teams from the United States receive a form of free marketing when people watch this point of entertainment. Examples of entrepreneurial sports ventures that have internationalized include the established In- dian Premier League. The Indian Premier League hhas newly formed the International Champions League, which invites players from around the The Role of Sports Marketing in the Global Marketplace world to play in domestic teams (Goldman & Johns, 2009). Overseas leagues have also built interest in foreign markets through development in which participation in the sports is encouraged through promotional activities such as expanded broadcasting of games. An example of this type of entrepreneurial international sports venture is the National Football League and National Hockey League expanding into Europe and attempting to build the league through television viewership (Ratten & Ratten, 2011). The international law surrounding sports licensing has a large practi- cal significance for sports agents and law firms involved in sports, Revenues from global licensed sports apparel and other goods were $US19.9 billion in 2008 (Moorman & Hambrick, 2009). Protecting the sports teams trademark and ensur- ing royalties are paid has become more important due to the piracy and trademark infringements seen in some parts of the world. In addition, sports leagues and other sports-related companies have five of the top 20 positions among global licensors (Moorman & Hambrick, 2009). Other international perspectives on sports marketing ‘are warranted that take into account different cultures, institutions and society. Researching sports marketing from a global perspective will help to understand different socio-economic and geographic factors that influence the development of sports (Chadwick, 2007). Entrepreneurship in Sports Sports in the international context are funda- ‘mentally entrepreneurial as they change to suit adapting business needs (Ratten & Ratten, 2011). Sports have been studied from a number of dif- ferent academic disciplines including psychology, ‘economics and marketing butthey have only been discussed from an entrepreneurial paradigm. ‘Sports-based entrepreneurship isany kind of sports activity that is innovative, opportunity driven and vision orientated (Ratten & Ratten, 2011). In addition, Rattan (2011) stated that sports-based entrepreneurship is a new theory of sports man- agement, the major innovations during the past decade have been in the use of computer statistics tohelp with betterimprove team performance and the internationalization of the interest in sports, leagues. Entrepreneurship in sports can exist in a number of different international contexts including the individual, organization, and team. Sports players, agents and team owners can be entrepreneurial when they are involved in a risk- taking activity that is different to what has been done before (Ratten & Ratten, 2011). Major spectator sports constitute a large, expanding, and competitive industry (Ko et al., 2011). However, many sports organizations are facing resistance from their customers as a con- sequence of increasing prices and heightened expectations regarding event quality (Howard & ‘Crompton, 2004). Examples of this phenomenonin the United States are the major professional sports Teagues (National Football League, Major League Baseball, NBA, and National Hockey League), all of which are struggling to keep operational costs down while continuing to provide the best-possible on-field product and customer services (Ko et al., 2011). Hill and Vincent (2006) stated that Man- chester United have launched numerous operations such as the establishment of foreign outlets to sell, branded football-related and non-related products, building relationships with other global brands, the participation to Asian-based tournaments ‘and tours, website promotions, the development of soccer school as well as the recruitment of South-Asian players that can be considered as a marketing operation on the core product. The sports industry is rapidly growing with consumers spending an increasing amount of money on retail purchases that enhance the sports consumption experience. As such, the sports world offers a plethora of opportunities for ‘marketers and retailers as sport fans often spend large sums of money on team merchandise, ap- parel, and events, as well as non-sport products such as high-definition TVs and home theater 283 systems (Carlson, Donavan, & Cumiskey, 2009). The benefit of entrepreneurship in sports is that it offers direction to business leaders who want to increase their companies’ social and economic performance (Wolcott & Lippitz, 2007). A broad definition of entrepreneurship is the development of enterprise and economic development (His- rich, 1990). Enterprising individuals who apply sports business practices to solve problems are sports entrepreneurs. These individuals use their entrepreneurial principles to organize and create a venture to induce the change in the business environment. The primary goal of a sports entre- preneuristomakea beneficial business impact that might affect other areas of the economy through its social and environmental influence (Ratten & Ratten, 2011) Branding in Sports ‘The sports marketing literature has considered the concept of brand management as it relates to sports organizations through three streams of study (Giannoulakis & Apostolopoulou, 2011). First, researchers have studied brand equity of sports organizations and have proposed frameworks and brand equity measurements specific to the sports setting (Gladden & Milne, 1999; Gladden, Milne, & Sutton, 1998). Those frameworks have examined how a variety of organization-and market-specific factors (.e., team success, starcoaches and players, schedule, product delivery, fan support, competi- tion) work to elevate levels of brand equity and consequently lead to positive outcomes such as ticket sales, corporate support, merchandise sales, and agreements with media partners. Second, attempts have been made to identify relevant sources of brand associations in the sport setting and, further, to develop scales to measure those brand associations (Gladden & Funk, 2002; Ross, 2007; Ross, Bang, & Lee, 2007). Thirdly, the concept of brand loyalty has been studied in the sports setting (Gladden & Funk, 2001; Kaynak, Salman, & Tatoglu, 2008). Brand management is, 284 The Role of Sports Marketing in the Global Marketplace a central issue for the sports industry in general, and professional football clubs (usually called soc- cer teams in the USA) are the archetypal branded sport in that industry; the brand is their most important asset (Blumrodt, Bryson, & Flanagan, 2012), Customers expect more than watching an exciting game in a pleasant environment; they are affected by clubs’ community involvement which impacts on the affect toward the brand (Blumrodt et al., 2012). One of the most important assets of a sports organization is its brand (Bauer et al., 2005). Researchers have striven for a better ‘understanding of the facets of the sports business including brand, brandequity and customer-based brand equity (Bauer et al., 2005; Richelieu & Pons, 2006; Ross, 2006). Strong brand equity has many advantages for football clubs, such as customer loyalty and a stable number of specta- tors, even if the team does not compete at the top level (Blumrodt et al., 2012). Sports brands have transcended geography by focusing on the global appeal of the sports (Muniz & O’Guinn, 2001). The most successful sports teams in Europe are those that have been successful on the field such as Manchester United ($259 million brand value), Real Madrid ($155 million brand value) and Bay- em Munich ($150 million brand value) (Bauer et al., 2005). Other professional sports leagues have formed separate business units in order to expand their global reach. NBA International has cre- ated a department to spread the NBA as a global brand (Forster, 2006). The German Bundesliga football league has internationalized through their international branding effort and increasing the television coverage of their sports games so they are watched in 206 countries (Cutler, 2009). Koble and James (2000) stated that the fans of Cleveland Browns in the National Football League liked the worldwide community of fans and this point stemmed from the branding efforts of its football franchise operators. Sports teams globally gener- ate millions of dollars in ticket sales and official merchandise and much of this point comes from the brand (Ratten & Ratten, 2011). Professional The Role of Sports Marketing in the Global Marketplace sportsteamsare the most visibleexample of sports, as a marketable product (Metcalfe, 1987). Due to globalization, sports fans are less likely to support a sports team brand based on geographic connection and more likely to support ‘them for personal reasons (Lewis, 2001). Major professional football teams like Real Madrid and ‘Manchester United each have more than 100 mil- lion worldwide supporters (Estridge, 2007). As ‘many people live and work in countries different to their birth country, supporting these sports teams act as an overseas sweetheart as they live far away but the sports team is close to their heart (Ben-Porat, 2000). In the case of European foot- ball, numerous examples could be noted and it is then necessary for professional football brands which want to become global to strongly think about their marketing strategy as a whole and to decide if they want or if they can, in consis- tency with their identity, target too many foreign ‘markets and implement so different marketing strategies (Bodet & Chanavat, 2010). This point defines the level of standardization or adaption of international brands which want tobecome global and this has to be clearly defined since globaliza- tion also makes home fans or customers aware of international strategies and foreign fans behavior and attitudes (Bodet & Chanavat, 2010). In the global marketplace, overseas supporters of sports teams become increasingly important because of the reputation of different sports institutions (Ratten & Ratten, 2011). Sports are controlled by a number of global sports organizations in- cluding the International Federation of Football Association (FIFA), the International Olympic Committee (IOC), the International Association of Athletics Federations (IAAF) and the World Anti-Doping Authority (WADA) (Forster, 2006), Other less prominent global sports organizations include the World Armsport Federation (WAF), the International Federation of Sports Acrobatics (IFSA), the Federation of International Robot- soccer Association (FIRA) and the International Ice Hockey Federation (IIHF) (Forster, 2006). Sponsorship and Sports The intense competitive pressure and media cluttering businesses are facing in global market require careful planning and execution of effec- tive promotional tools (Tsiotsou, 2011). One of these marketing communication strategies that is, growing rapidly and is becoming big business over the last decades is sponsorship (Tsiotsou, 2011). Sponsorship is a business agreement between two companies in order to mutually benefit and ‘accomplish their profit and non-profit objectives. According to Walliser (2003), sponsorship is a business relationship between a corporation and an individual, event or organization based on an exchange relationship between the sponsors and the sponsored firms, and where marketing communication objectives are pursued through associations. A corporation (the sponsor) pro- vides funds, resources or services and buys rights, and association with the sponsored firm (Busby, 1997), To support, leverage and fully exploit a sponsorship, businesses spend two to three times more than what they pay for securing the property of sponsorship rights (Cooper, 2003) because sponsorship is not only a communication tool but a commercial investment as well (Walliser, 2003). The most widely used sponsorship is the sports sponsorship. Sports sponsorship involves sponsoring sportsassociations, events, teams, ath- letes, and sports facilities (Tsiotsou, 201 1). Sports sponsorships received 67 percent of corporate sponsorship spending in North America in 1994 (Ukman, 1995) while the majority of sponsor- ship funds are spent on buying the sponsorship rights for the “king of sport events,” the Olympic Games. Dueto the big amounts of money invested, sponsorship effectiveness has become of central importance to academics and marketing managers (Fsiotsou, 2011). Cooper (2003) proposed two principal waysin evaluating sponsorship: reach (how many people were exposed to the sponsorship via media) and awareness (how many people recall the brand 285 sponsoring an event). However, Johar and Pham (1999) reported that sponsor identification is bi- ased toward brand’s perceived affinity tothe event and toward prominent brands. Various theoretical approaches have been used to test explain and test. sponsorship effectiveness. Thus, scholars have tested Ehrenberg’s awareness-trial-reinforcement ‘model (Hoek, Gendall, Jeffcoat, & Orsman, 1997), the attitude toward the advertisement, and the at- titude toward the brand models (Bloxham, 1998), and the market prominence (Johar & Pham, 1999) in order to measure the effectiveness of sponsor- ship. In general, research on sponsorship effective- nesshas been focusedeither onconsumers (Miloch & Lambrecht, 2006; Tsiotsou & Alexandris, 2009) oron shareholders reactions (Miyazaki & Morgan, 2001; Pruitt, Cornwell, & Clark, 2004). When studying international sponsorships of global firms, the global stakeholders need to evaluate their reactions tothis investment (Tsiotsou, 201 1). Moreover, the quality and level of communication between top management of the sponsoring firm and its stakeholders may also stimulate further research inquiries (Tsiotsou, 2011). Another interesting research avenue would be to study if international firms have different objectives and ways of managing sponsorship when sponsoring international sports events or international sports organizations, than when dealing with national sponsorships (Tsiotsou, 2011). CSR is an increasingly strategic imperative for football executives (Sheth & Babiak, 2010). The role of CSR in sports has been opened to analy- sis, interpretation and empirical research (Smith & Westerbeek, 2007; Walters, 2009; Walters & Tacon, 2010), business and management journals have published special issues on CSR in sports (Babiak & Trendafilova, 2010; Sheth & Babiak, 2010), and the CSR literature in major sports ‘management journalsis growing quickly (Babiak 286 Tho Role of Sports Marketing in the Global Marketplace & Wolfe, 2006; Breitbarth & Harris, 2008). CSR involves companies incurring a responsibility t0 society beyond financial returns (Ratten & Rat- ten, 2011). In the sports context, CSR is becom- ing important in shaping business, economic, political, environmental and social policies in the global marketplace (Ratten & Ratten, 2011). CSRis integral inthe global business environment but it has only been discussed with professional sports teams (Walters & Chadwick, 2009). The United Nations has promoted sports worldwide as ameans to promote education, health, develop- ment and peace. Sports have a number of unique factors including mass media distribution and communication power, youth appeal, positive health impacts, social interaction and sustain- ability awareness (Sheth & Babiak, 2010). Little empirical research has been conducted on CSR and sports despite most professional sport teams highlighting their commitment to CSR (Sheth & Babiak, 2010). Sports are the important vehicles for CSR as they can influence the quality of life of employees, customers, shareholders and residents of local and global communities (Pava & Krausz, 1997). Sports can help shape CSR activities in businesses around the world by focusing on the changing role and perception of society (Baughn, Bodie, & Melntosh, 2007). More professional sports teams and sports-related businesses are using CSR as a key part of their overall busi- ness operations (Ratten & Ratten, 2011). Many organizations sponsor local sporting clubs and encourage employee involvement in sports as a way in which to engage in their local community. Due to the concern about the growing social divide between lowerand higher classes of society, many companies have refocused their policies on how they can contribute to regional development (Sagawa & Segal, 2000).Inaddition, philanthropic activities offer sports teams a way to increase their social standing in a community and at the same time partner with organizations who wish to reinforce their commitment to socially respon- sible projects (Ratten & Ratten, 201 1). All types, The Role of Sports Marketing in the Global Marketplace of organizations involved in sports whether they are for-profit or not-for-profit have a responsibil- ity to act in a positive way that enhances overall social welfare (Ratten & Ratten, 2011). Many organizations in the international environment have the added incentive of helping developing countries with their social policies and a way that transcends language and social barriers is sports. Organizations need to engage with their stakeholders and community in order to facilitate social change (Sagawa & Segal, 2000). Sports have a direct connection to social issues as they can provide guidance to organizations on health, the environment and a diverse workforce. In ad- dition, more sustainability initiatives involving sports are being utilized as aform of CSR asmany sports utilize a large amount of infrastructure from sports stadiums to playing fields and practice areas Ratten & Ratten, 2011). Tourism and Sports Global interest in sports has been encouraged through mega sporting events like the Olympics and Football World Cup (Rowe, 2003). The larg- est world countries include Brazil, Russia, India and China (BRIC) which have large populations (Wilson & Purushothaman, 2003) but donothave developed professional sports leagues as is com- mon in the United States and Europe. In order to encourage the adoption of professional sports teams in these BRIC countries, a large number of sporting events have occurred in Asia. This increased internationalization of sporting events has encouraged sports tourism as people plan holidays and work events around sports (Ratten & Ratten, 2011). Professional sports have developed into amain- stream operation (Noll, 2003). Global recognition of sports is found is revenue, governance, enter- tainment dollars and dynasties (Hunter & Mayo, 1999), Many governments around the world invest heavily in sports with the expectation thatthey will aid in economic and social development (Hoye, Smith, Westerbeek, Stewart, & Nicholson, 2006). FIFA has a global vision with its motto “For the Game, For the World” (FIFA, 2008). FIFA was one of the first professional sports organizations to be international when it was established in 1904 by the football governing bodies of France, Sweden, Belgium, Denmark, Switzerland, Spain and the Netherlands (Sugden & Tomlinson, 1998). FIFA also has partnerships with many large ‘multinational firms including Adidas, Hyundai, Coca-Cola, Emirates, Sony and Visa (Sugden & Tomlinson, 1998), Regional Development and Sports As there is a general trend of economies toward internationalization, entrepreneurial sports ventures are actively looking for new profitable international sports markets (Ratten & Ratten, 2011). Many sports teams are expanding to for- eign market particularly Asia to capitalize on the rapid economic development of these countries. ‘Manchester United has established foreign outlets to sell merchandise and many of these outlets are in Asia (Hill & Vincent, 2006). Many Asian sports fans have developed their interest in sports, through watching foreign movies and keeping up to date with developments on the television and through the Internet (Ratten & Ratten, 2011). In addition, some Japanese fans of Major League Baseball have developed their interest by watch- ing Japanese players in the United States (Hong, McDonald, Yoon, & Fujimoto, 2005). Team sports are characterized by its multi- level production structure (Bauer et al., 2005). The first level includes other team members, the second includes another team and the third is the championshipsthat connect singleteamstoalarger competition. Sports are the importantcomponents of leisure time activities in society (Moutinho, 287 Dionisio, & Leal, 2007) and in a regional devel- ‘opment strategy. Sports are the competitive and dynamic activities that can be individual or team based depending on the international sports con- text. Some sports communities around the world can be described as a tribe because of rituals and feelings about sacred sporting places (Moutinho et al., 2007) that contribute to the development of a country or city based on a sports team. This, isevident in Spain where football clubs like Real Madrid sell 1.5 million shirts outside of Spain (Davila, Foster, & Clopis, 2007), Marketing and Sports Internationalization of the global economy has ‘meant that many sports marketers now look to the global market instead of one region in their mar- keting efforts (Ratten & Ratten, 2011). Innovative international marketing techniques provide a way to support sports and at the same time enhancing a. company’s image (Ratten & Ratten, 2011). In addition, interactive marketing approaches that encourage innovation, risk taking and proactive behaviorof entrepreneurs encouragenovel ideasto flourish (Covin & Slevin, 1991). Sports marketers are utilizing internationally interactive marketing mediums to connect with consumers in real time. Cell phones, iPads and iPhones have enabled people to watch sports games interactively and this has been encouraged through social network- ing sites. Technological innovative media made possible by Web 2.0 has enabled marketing to be more interactive and socially complex (Cooke & Buckley, 2008). Social networking sites such as Facebook and Twitter have encouraged marketers toaimat technologically savvy consumers (Junco & Mastrodicasa, 2007). Other sports marketing ideas have utilized Twitter, blogs and professional networking groups like Linkedin totarget particu- lar types of consumers (Ratten & Ratten, 2011). Professional leagues involve millions of fans and significant investment in players, merchandizing, and advertising (Kendall, Knust, Ribeiro, & Ur- rutia, 2010). 288 The Role of Sports Marketing in the Global Marketplace Action Sports ‘The immense growth of the action sports indus- try has been illustrated through the increased media coverage of events such as the ESPN X-Games and the Mountain Dew Action Sports Tour aired by National Broadcasting Company (NBC) (Giannoulakis & Apostolopoulou, 2011), Furthermore, action sports have exhibited a dra- matic increase in athlete endorsements, branding, corporate sponsorships and athlete participation, especially amongst members of Generation Y (Bennett & Lachowetz, 2004). Action sports companies have started to expand to mainstream. markets in order to survive and secure their vi- ability in an extremely competitive sport industry, where new brands emerge and attempt to acquire a share of the action sports pie (Giannoulakis & Apostolopoulou, 2011). Action sports have been referred toas alternative, lifestyle, extreme, whiz, panic, post-modern, post-industrial and new sports (Wheaton, 2004). Action sports include risky, individualistic and alternative sports such as surfing, BMX bike riding, and wakeboarding (Bennett & Lachowetz, 2004). Snowboarding and skateboarding are considered the fastest growing sports in the United States and form part of the action sports family (National Sporting Goods Association, 2006). Action sports have increased inconsumer and corporate interest during the past decade (Cianfrone & Zhang, 2006). Action sports offer a practical solution for sports managers and ‘marketers wanting to see the direction that future sports will take and how they can enter emerg- ing types of sports that will appeal to different demographics and international markets (Ratten & Ratten, 2011). Sports that are once considered cutting edge such as windsurfing and skateboard ing are now mainstream sports so that it is an interesting research gap for sports practitioners to consider what the next type of action sports are and whether changing international demographics such as the ageing of the population will affect the uptake rates in these new types of sports (Ratten & Raiten, 2011). The Role of Sports Marketing in the Global Marketplace FUTURE RESEARCH DIRECTIONS More research is needed on international sports management to determine how sports marketing are being built, developed and extended interna- tionally through entrepreneurial ventures. Future researchers should examine whether professional sports leagues like the NBA will be started separate business entities or if the existing profes- sional sports leagues will continue to expand in the global marketplace. CONCLUSION The role of sports marketing in the global marketplace is provided to obtain a successful business strategy. This chapter has discussed the internationalization of sports with a focus on how to combine the sports management and international business literature more so that the practical implications of international sports can be identified and strengthened, Sports-based en- trepreneurship was discussed that highlighted the many international sporting endeavors that both amateur and professional sports organizations are involved in, More research should focus on case studies of sports entrepreneurs and how they have internationalized. In addition, longitudinal studies of the innovation process that made these interna- tional sports entrepreneurs successful would help to see the practical implications of starting and maintaining a sports-related international busi- ness venture, The role of branding in international sports was examined that illuminated how impor- tant reputation and image is in the international marketplace. More empirical work is needed on comparing different sports brands internationally and the origins and expectations of the entrepre- neurial sports founders in creating these sports brands. CSR was identified in this chapter as being a cornerstone of an international sports venture. ‘As more people and businesses worldwide are becoming more concerned about sustainability and environmental initiatives it is important that firms focus on how encouraging sport-related activities can add value to their bottom line. The role of sports tourism was discussed as being part of the international business environment. In particularly, the changing economic conditions of ‘many countries worldwide in changing sports tour- ism were highlighted and this will be acontinuing interesting research avenue of inquiry as global superpowers such as India and China continue their dominance of the international business landscape. The role of sports was proposed in this chapter as being a unique starting point for under- standing international sports business activities. More research work is required on how regions can harness their economic and social potential internationally by finding ways to encourage people to participate in specific sporting activities and events that are endemic to a particular region, International sports marketing were discussed as, itis an important communication vehicle for the globalization of sports teams and organizations. The role of action sports, which incorporatesnew types of sports such as kite surfing as being the new vehicles of international sports marketing. Practitioners in the sports management area need to take advantage of the international mar- Ketplace for both their business activities and ‘marketing strategies. As the shift in international business has focused more on Asia due to the rapidly advancing economies of China and India it is important for professional sports teams to spend more money on these emerging markets. Knowing the right sports marketing campaignsin these burgeoning markets will increase the suc- cessful globalization rate of professional sports teams in the business world. Overall, this chapter has focused on the various different practical and research avenues for international sports marketing. 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European Journal of Marketing, 46(3-4), 509-523. doi: 10.1108/0309056121 1202585 KEY TERMS AND DEFINITIONS Branding: The process involved in creating a unique name and image for a product in the consumers’ mind, mainly through advertising ‘campaigns with a consistent theme. Corporate Social Responsibility: A compa- ny’s sense of responsibility toward the community and environment (both ecological and social) in which it operates. Entrepreneurship: The capacity and willing- ness to organize and manage a business venture along withany ofits risks in ordertomakea profit. Marketing: The management process through which goods and services move from concept to the customer. Marketplace: An actual place where forces of demand and supply operate, and where buyers and sellers interact to trade goods and services for money. Sports: All forms of usually competitive physical activity while providing entertainment to participants and spectators 297 The Role of Sports Marketing in the Global Marketplace Sports Marketing: A subdivision of mar ‘Tourism: Marketing of the enjoyable and other keting which focuses both on the promotion of features of a travel destination, and provision of sports events and teams as well as the promotion _ facilities and services for the pleasure tourist. of other products and services through sporting events and sports teams. 298

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