Brand Equity in Sports Industry

Deontology and journalistic ethics BRAND EQUITY IN SPORTS INDUSTRY Adrian BRUNELLO1 1Assist. Prof., PhD, „Apollonia” University of Iaşi, Romania Corresponding author: Adrian Brunello; e-mail: [email protected] Abstract distinct and intriguing nature of the sports Sports industry experienced tremendous growth over industry makes sports marketing a very complex the past decades all around the world. This expansion has and challenging tasks both for scholars and for led to important outcomes. More sports related jobs are practitioners. being created and students are becoming more and more interested in studying sports management and discovering Sports organizations are considered to be the complex and diverse nature of sports marketing. A entertainment providers. In addition, they know brand identifies and embodies everything that a company that in order to be successful in the extremely represents. The information pertaining to brands is linked competitive environment of sports, they must more or less directly to consumer’s purchase decisions. Brand equity has a direct impact on the choice of the practice a marketing orientation. The main goal consumer, influencing it in various ways. In the world of of a marketing-oriented company is to understand sports, brand equity refers to the value that supporters its consumers and to offer them sports products attach to their favourite team’s name and symbol. The purpose of this paper is to analyse the stages of the in order to satisfy their needs and wants. branding process in the sports industry, with the purpose When analysing the word of sports, the of influencing consumer behaviours, such as participation consumer-supplier relationship model includes, in sports, increasing attendance or merchandising sales. in its simplified version, three elements. These Keywords: branding, brand equity, sports industry. are the sports consumers, the sports products and the producers and intermediaries. Sports 1. GENERAL INFORMATION ON SPORTS consumers are divided into three categories: INDUSTRY spectators, participants and sponsors. Sports products are goods, services, or any possible Sports industry is currently facing extraordinary combination that aim to bring advantages to the growth, and therefore sports marketing plays a sports consumer. The sporting event represents significant role in this emerging industry. The the main sport product. Other categories of Cambridge Advanced Learner’s Dictionary sports products include sporting goods defines sport as “a game, competition or activity (equipment, apparel, shoes, licensed needing physical effort and skill that is played or merchandise), personal training services for done according to rules, for enjoyment and/or as sports (fitness centres or sports camps), and a job.” It takes us away from our daily routine and sports information. Producers and intermediaries offers us pleasure. No matter if we watch a new represent the final link of the consumer-supplier movie, listen to a concert or attend a stirring relationship model. The term producer performance by Leo Messi or Cristiano Ronaldo, encompasses every individual or organization we are being entertained. that enables the event to take place, such as Gray and McEvoy (2005) defined sports owners, sanctioning bodies, and sport equipment marketing as “the specific application of manufacturers. Intermediaries, such as sponsors, marketing principles and processes to sports the media or the agents, are also highly important products and to the marketing of nonsports because they bring the sport to the end user of products through association with sport.” The the sports product. International Journal of Communication Research 25 Adrian BRUNELLO Fig.1. The simplified model of the consumer-supplier relationship in sports industry (SHANK, 2005) To manage the complexities of the sports the strategic sport marketing process is called industry and achieve organizational objectives, control. sports marketers use the strategic sports marketing process. It consists of three major 2. BRANDING IN SPORTS INDUSTRY parts: planning, implementation, and control. The planning process requires marketers to Branding a product allows an organisation to fully understand the needs of the customers, to distinguish and differentiate itself from others in select various groups of customers with similar the marketplace. A brand plays an economic role needs and to position the sport products in the minds of the consumers and therefore according to the needs of each particular group. brand equity derives from the brand’s ability to At the ends of the planning phase marketers gain an exclusive, positive and meaningful have to establish various strategies for each of position in the minds of numerous consumers. the four elements of the sports marketing mix: Thus, branding and brand formation should products, pricing, promotion and place or focus on developing brand equity. When it comes distribution. The second major part of the to the sports industry, building the brand strategic sports marketing process is putting the influences consumer behaviours, such as plans into action or implementation. Finally, the increasing attendance, merchandising sales, or plans are evaluated in order to determine participation in sports. In order for this to take whether organizational objectives and marketing place several things must occur in the branding goal are being met. This third, and final, part of process. This process is highlighted in Figure 2. Fig. 2. The branding process (SHANK, 2005) The first step is to establish brand awareness. consumers’ consideration sets and increase This refers to whether consumers can recall, choices (Huang & Sarigöllü, 2012; MacDonald recognize, or be aware of a brand (Huang & & Sharp, 2000). Although brand awareness is Sarigöllü, 2012). Brand awareness affects the not a significant dimension of brand equity consumers’ decision-making process. Identified (Bailey & Ball, 2006; Kayaman & Arasli, 2007), brands are more likely to be included in consumers with high brand awareness make 26 Volume 8 • Issue 1, January / March 2018 • BRAND EQUITY IN SPORTS INDUSTRY initial decisions quicker than unaware incremental utility or value added to a product consumers (Macdonald & Sharp, 2000). When by its brand name. From a marketing the levels of brand awareness are according to perspective two of the most well-known the desired objectives, can marketers address models belong to David Aaker and Kevin Lane the issue of brand image. After all, consumers Keller. David Aaker (1991) considers that must be aware of the product before they can “brand equity is the set of brand assets and understand the image the sports marketer is liabilities that is linked to a brand, its name, trying to project. and symbol that add to or subtract from the Brand image represents the consumers’ set value provided by a product or service to a of beliefs about a brand, which, in turn, shape firm and/or to that firms customers.” On the attitudes. Brand image may also be perceived other hand, Kevin Lane Keller (1993) proposes as the “personality” of the brand. Organizations the concept of “customer-based brand equity” that sponsor sporting events are especially and he defines it as “the differential effect that interested in strengthening or maintaining the brand knowledge (including brand awareness image of their products through association and brand image) on consumer response to the with a sporting entity (athlete, team, or league) marketing of that brand”. This knowledge is that reflects the desired image. For instance, the useful for helping sport team managers marketers of Mercedes-Benz automobiles have understand how to influence their fans in order established sponsorships with tennis events to to achieve mental association between their reinforce a brand image of power, grace, and fans and their brands (Biscaia et al. 2016). control. In the sport setting, brand equity refers to Sports marketers struggle to influence the the value that fans attach to their favourite consumers’ beliefs about a certain brand by team’s name and symbol (Gladden & Milne, using numerous factors that impact on brand 1999). The satisfied consumers will, in turn, image. Among these “image drivers” one can become brand loyal or repeat purchasers. include product features, product quality, Gladden, Milne, and Sutton (1998) proposed a brand name price, packaging, promotional brand equity assessment model for the sports techniques or distribution channels. Each of industry. The components of the model can be these elements plays a significant role in seen in Figure 2. The authors explain brand creating overall brand image. Once they equity by extending the previous work of managed to build a positive brand image, David Aaker (1991), who believes that there sports marketers can then hope and try to brand equity encompasses four major elements: generate high levels of brand equity. perceived quality, brand awareness, brand associations, and brand loyalty. 3. BRAND EQUITY Gladden, Milne, and Sutton (1998) describe the perceived quality of sport as the consumers’ To some extent, developing and managing perceptions of a team’s success. Clearly, one can brand equity is especially crucial for professional extend this towards other sporting products. In sport teams (Biscaia et al., 2016). Several terms of sports, brand awareness describes the European professional football teams have done consumers’ familiarity with a particular team or a good job in regard to

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