Analysis Of The UK Sports Marketing Environment

Core to the practical and successful marketing is the recognition and satisfaction of the sports market wants and needs. Through the interpretation of the organizations’ position in the market and the drives that influence on decision-making, the sports marketers will then acquire an improved understanding of the content their organizations operate. Many outdoor and sporting organizations have several shift effects and drives that are in a consistent state of fluctuation. The U.K sporting and outdoor retailing markets are among the global market operators that are influenced by the constant entry and change in the variety of products. The market has got some of the essential marketing brands such as Adidas, Nike which gives the competition and retailing environment a significant force (Stamatakis & Chaudhury 2008, p.12).

This paper aims to provide inclusive environments assessment including key principals that are the possible external influences on all organizations within the UK, specifically the sports and retailing, which operates in the same environment. Some of these powers can be controlled whereas others have to familiarize within their performances. The scope of competition in the sports equipment’s retailing is international and the international competencies particularly in the manufacturing process. Some of the outdoor industry equipment in sports includes fishing, bicycle, tennis and the sports equipment including footwear such as the athletic apparel and footwear — the market ranges from companies like the Nike Inc., Adidas and Reebok international limited. In the U.K, some of the sporting and outdoor retailers companies include JD sports. The industry is in the recent years characterized by the mixed marketing structure and the increasing technology and the use of online platform to retail with famous mergers and retailers. Therefore, the demand for sports retailers to comprehend and evaluate the possible effects and opportunities of these forces is crucial hence should be done in an orderly and logical procedure. The primary step is the gathering of information on the possible factors of the sports marketing environment by the use of PESTLE model. This model is suitable for the external environment assessment.

PESTLE Analysis

The Political Environment

In recent times, there is political shift in the U.K towards a single political thought with more concerned on the negotiated reviews on government and its role in the society. The political issue plays a vital role in the factors that influence the sport and outdoor business in the long-term success (Taks and Scheerder 2016, p.97).  The opinions of the political organizations from the social protection and public reform opinions have been moderated to make third-way governance as seen in the United Kingdom’s new labor terms. The political influence has got an effect on the actions and the management of sport, as indicated through the main areas that should be added to the environment evaluation sports. For example, the organizations such as JD Sports, Nike and Adidas will use this to decide on the next step of the operation. They are mainly affected by the opinions and laws of the sports support and inclusion as an industry and the administration layer including the influence of its operations.

The difference in the political environment can create the challenges for the sports market and make the procedure of operations more challenging. This is also inclusive of the state ideology on the matters of sport. The United Kingdom funds most of the organizations hence promoting the outdoor through social inclusion of children. However, the inclusion of the political leaders in certain sports could affect the retailing sector. Some of the political leaders are inclining to the promotion of cricket and athletes creating a shift in the demand and the external force drive, primarily with regard to support and sales. The U.K sports store is a top agency that operates throughout the United Kingdom. Therefore, the sports organizations and shops within the country have to embrace modern techniques so that all consumers can receive support from the government to enable them increase and use the stores.

The Economic Environment

The external economic environment is consistent with the macro and the microenvironments of operations. The macro is the interactions of the entire broad economy whereas the microeconomic is the focus on the personal decisions of the company by the management or the organization structure — the microeconomic environment include factors such as the exchange rates, and inflation. In the case of the environmental analysis, it is the macroeconomic environment and the features that will influence the power of the drive. Various countries are slowly embracing the ideology of open trade in the concept of the provision of goods and services to consumers (Kitchin 2017, p.61).  The presence of the economic stability in the U.K can be influenced but the government. Therefore, sports retailers highly depend on the business cycle used in the marketing strategies of maintaining sales. The cycles also influence the demand of the sports gears by the consumers especially during positive economic functions. The U.K sporting trend can be seen with regard to the professional sporting. Following the economic cycles that are influenced by the government, the customers’ demand for expensive sports, and outdoor equipment will depend on the inflation rates.

The government economic programs including the leagues can also influence the interaction strategies of the sporting retailers in the market. The possible organizations of the leading global competitions such as the Olympics and the competition leagues also influence the operations on the sport retailing and marketing; each would want to increase in sales. Therefore, they have to prepare for the possible strategies properly.

The Socio-Cultural Environment

 Business in every field must consider the core beliefs and diversity of the potential members including the possibility of new entrants. Particular sports attract a high number of consumers and participation that have enabled the sports retailers involved to depend on this cultural connection with factors such as the society and class. The London societal structure, especially among the outskirts cities, have in the past years changed hence causing the shifts in some main traditional consumer base. The arrival of immigrants in London has led to the rise of clubs such as the Balmain rugby clubs and Layton Orient Football Club as well as their original supporters, and therefore they are new marketing strategies for the companies (Laursen & Salter 2016, p.139). The consumer changes in the demography are also one of the segmentation ideologies of the sports marketers hence the customer stand to operate within these settings making the marketers to develop their strategies and products based on these segments.

 The outdoor sporting activities are also going modern with the present television marketing using the professional personalities to help in the funding with the aim of persuading the consumers, broadcasters and the sports agencies themselves. With regard to the cultural diversity, the migration of people is evident shifts in most countries in the west from the Caribbean, Asia and Africa and have led to the development of particular sports such as the athletic, football and boxing. The change in taste is not just felt on other areas somewhat it is also affecting the sports too, in terms of taste and opportunities for expansion within it. Some of the athletes’ brands such as the Nike shoes and the Adidas are increasingly investing in the athletic community to provide comfortable outdoor training equipment such as footwear and training gears. In consideration of this, brands can seek to profitably tap into the famous and professional athletes of a certain culture to communicate to the main demographics. These include the branding of the training gears such as vests during training. This also applies to the concept of religious interactions where some of the recreational and sporting facilities are being funded by the church and events. These include parks, and swimming area. The challenge, however, is to incorporate the religious perception including the Muslims who are slowly emerging in sports especially women.

The Technological Environment

It is one of the most dynamic environments that affect the daily actions with a higher rate of shifts in recent years. However, it remains very uncertain of its drives toward the market field. The outdoor equipment retailing organizations are using the new technology to advance the operations and possibly increase the sports attractiveness and the use. For example, the advancement in technology is making sports more attractive. The invention of light balls in football is creating more efficiency in football from the manufactures. The technology has also led to the minimization of deaths in the sports industry (Kitchin 2017, p.61). For instance, Nike has come up with the vests that can monitor the heart rates during the training and prevent the frequent heart attack. The invention of communication technologies is also influencing the retailers to make the communications easier and also caused global attention.

Moreover, technology gives the marketer a tool for developing more comfortable transportation which has also stimulated the attractiveness and the use of the international arena including the powerboat racings. Global cricket, fishing activities is also the problematic exercise.  For example, companies such as Nike are continually coming up with the new sportswear and retailing them leading to possible competition.

Ethical and Ecological Environment

This is the force behind the increase of human awareness on the interconnected environmental issues from the sports industry such as environmental protection, skin cancers and possible ways to help avoid such effects. The current states that are in the contractual path for the Olympic Games must provide the original environmental protection in their bidding documents. There is a constant concern of the protection gears for the outdoor equipment from the retailing and manufacturing industries for sports gears. Nike, for example, was under investigation for their practice and the tools explaining their regulations which are under further scrutiny. Hence, these challenges need the involvement of education, and the diplomacy plans to be embraced by the sports markets (Taks & Scheerder 2016, p.100). There is also an increasing demand for footwear that is ethically retooled from the niche clients creating a legal concern.

Legal Environment

This is a combination of the policies and rules that may emerge from the representatives or the authority. During the legal assessment, the sports marketer usually is a victim to operate under the law with terms and the codes of conduct regulation indicated. The United Kingdom has got the Advertising standards authority (ASA). The Enacted policies frequently impact the organizations and the individual within the law. The advertisement that is not according to the law or indicates any possible discrimination will attract sanction from FIFA. The legislation can allow stylish in the context of the facilities such as parks which are private and require the permission or legal for use. The UK labor government and the export has called for various state governing organizations to analyses the possible activities of the companies rubber, the equipment and outdoor sports business and to make sure they are customer oriented and updated. However, this indicates the relations of the external environments and the sports retailers’ capability to evaluate efficiency but addressing each environment at a time.  

The Consumer Purchase Model

            Through the Smith and rips model; the consumer purchase decision-making process is a crucial moment, of the marketer and marketed. It involves the motivation for the market; it is significant to recognize when the consumer target demographic has established the need and hence it would be wise to carry out the marketing at this period (Gollwitzer & Heckhausen 2009, p.102). They may also assist to determine the consumer’s wants and challenges or the specific moments that lead to the challenge. The essential factors of this moment are the human statuette, the presence of information and the existence of the complementary for the products that is likely to develop the need and the desire of the customer.

The second process is the search for information on the available options that can satisfy the need. This is also involved in the environmental perspective both externally and internally. The subjective concept involves the past encounter based on the memory and the external inquiry from the marketing governed resources such as the online advertisements and posts. This  is a crucial moment for the consumer. The markets have to tap into it by presenting the relevant information on the goods. It may also be triggered by the proper environment or the trials and at some period, the consumer will stop to reexamine the cause of the need. The fourth stage is the real purchase of the good which depends on time, place and the cost of the product (Stankevich 2017, p.9). This process also involves the tough time delay in the goods purchase. The last stage is the after-purchase where the consumers have to analyze, and examine the item and the satisfaction will determine the next step by influencing another potential user. This is also applied to the feeling of satisfaction.

Market Segmentation

 According to Taks and Scheeder (2016, p.90), the segmentation procedure requires a perfect analysis of the market and the plans and matching of the particular goods within the general service. The market segmentation in the general sports can be through demographics. This will entail the age groups, gender, tourists and cultural groups. The market can also be a dividend in regards to socioeconomics such as the issue of income, profession, car ownership and house ownership. The topography subdivision entails the use of various regions, from the nation to the society. However, this method always corresponds the formal organizations. Lastly, the subdivisions would also be the psychographics, which involves various consumers lifestyle, values and beliefs, and, attitude. The possible conduct and benefit segmentation will be the fitness-driven customers, those new customers motivated by the various. There could also be the specific market subdivision for the product, and outdoor equipment’s specific that would help the retailers to subdivide the industry. They include; the interest in product innovation, this will help to find out the challenges such as unwillingness to buy and the attitude towards the outdoor equipment’s — the outlook on the external space and buyer influences.

In summary, some of the main issues that are likely to influence the sporting, outdoor equipment industry is the increasing demand for the outdoor equipment’s retailers due to the emerging public initiatives and the increasing health awareness of individuals and corporations to embrace the healthy living and the exercise. This has for the recent years supported the U.K industry. In order for the sporting and outdoor equipment retailers industry to flourish. They are required to have access to the Niche economies, and the presence of the broad and growing product variety. On the other hand, the primary challenge that is affecting the outdoor equipment is the ability to identify with the developing technology and the competition experience in the market. The driving forces in the external environment can be internationally competitive, and as earlier mentioned some of the retailers in the U.K as well have other stores in other continents or regions (Stamatakis &Chaudhury 2008, p.97). Technological innovations are also a force for the industry to remain relevant to its consumers. This is inclusive of the electric demand to satisfy the customers due to the growing technology. The industry must be able to evaluate the demographic and macroeconomic trends and the possible consumer taste and be aware of the society shifts to adjust fully.

The attractiveness of the customers to the outdoor activities and equipment solely depend on the marketing and the ability to fully adapt to the external environment and improve on the requirements such as the legal policies and marketing strategies. Most of the outdoor retailing companies in the U.K are likely to face the legal sanctions whenever their products cause an injury or the threat to customers’ lives. This also will affect the consumers’ decisions to purchase. Consumption patterns also depend on the reputation of these retail companies. Therefore, the network marketing is mainly based on sport and recreation and require the knowledge of the consumer behavior and the external operation market. The United Kingdom sporting and the outdoor equipment market is a vital measure in realizing the potential environment and customer base to develop.

References

Gollwitzer, P.M., Heckhausen, H. and Ratajczak, H., 2009. From weighing to willing: Approaching a change decision through pre-or postdecisional mentation. Organizational Behavior and Human Decision Processes, 45(1), pp.41-65.

Kitchin, P., 2017. Understanding the sports marketing environment. The marketing of sport. Essex, Prentice Hall/Financial Times, p.61.

Laursen, K. and Salter, A., 2016. Open for innovation: the role of openness in explaining innovation performance among UK manufacturing firms. Strategic management journal, 27(2), pp.131-150

Stamatakis, E. and Chaudhury, M., 2008. Temporal trends in adults’ sports participation patterns in England between 1997 and 2006: the Health Survey for England. British journal of sports medicine.

Stankevich, A., 2017. Explaining the Consumer Decision-Making Process: Critical Literature Review. Journal of International Business Research and Marketing, 2(6), pp.7-14.

Taks, M. and Scheerder, J., 2016. Youth sports participation styles and market segmentation profiles: evidence and applications. European Sport Management Quarterly, 6(2), pp.85-121. Available at: https://store.mintel.com/uk-sports-participation-market-report..