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CAN THE INTRODUCTION OF MARKETING PRINCIPLES PROMOTE THE DEVELOPMENT OF SPORTS ORGANIZATIONS IN MONTENEGRO?

Stevo Popović¹, Dragan Radovanović², Miomir Maroš³, Slavko Molnar¹
¹Faculty of Sport and Physical Education, University of Novi Sad, Serbia
²Association of Centres for Interdisciplinary and Multidisciplinary Studies and Research, University of Novi Sad, Serbia
³Radio Television of Montenegro

Abstract
The subject matter of this research is marketing principles in the modern world with emphasis on sports organizations in Montenegro and the peculiarities of marketing in that field. The sample consisted of 101 respondents surveyed in different ways (by personal interview, mail or telephone) and selected by means of combination or hierarchical classification- in other words, the research included staff members occupying various important positions (presidents, secretaries, board of directors, coaches etc.) and working in different departments of these organizations ( Management, Marketing Department etc.). The study employed one of the most widely used research techniques- the survey, while the research tool used was a questionnaire consisting of 28 open-ended, closed-ended and Likert scale questions. Data analysis was based on frequency distribution, a commonly used data analysis procedure in descriptive statistics. It was established that the institution of marketing principles would further the development of sports organizations, and more significantly, ensure their sustainability and uninhibited functioning and that a proper combination of marketing principles would enhance communication with clients as well as contribute to a better management and restructuring of sports organizations.

Key words: Marketing Concept, Sports, Sports Organization, Sports Product, Consumers

INTRODUCTION

The origins of sports marketing date back to ancient Rome when the ecclesiastical dignitaries sponsored gladiator tournaments in an attempt to win the respect of the general public. Sports marketing in the modern sense of the word, appeared as late as 1950s when the then president of the United States, Dwight Eisenhower required the companies “Mutual of Omaha” and “Union Oil” to subsidize the first presidential fitness program (Lazarus, 1984). However, it was not until 1970, the year the American Government put a ban on radio and TV advertisements for alcohol and cigarettes that sports marketing finally blossomed. This unforeseen development turned sports venues into the most desirable advertising space to be used by companies seeking to present these products to vast audiences. Race tracks and tennis courts attracted potential advertisers as sponsoring these events was perceived as a wonderful opportunity for advertisers to display alcohol and cigarette brands in front of spectators and TV viewers. The new trend reached its climax at the 1984 Olympic Games, held in Los Angeles, which marked the unprecedented growth of sports marketing. The event helped sports marketing attain a global presence which in turn enabled the organizers to maintain a positive balance sheet for the first time in the history of the Olympic Games (Tomić, 2001).

Marketing plays a crucial role in modern professional sports because it is one of the key factors in securing the resources necessary for sustaining sporting activities. Unlike most organizations, which use marketing as an instrument for netting barely enough money to support their business operations, there are both organizations and individuals that succeed in amassing great profits by relying on an effective marketing strategy. 

According to Vasiljev (2005), the classical definition of marketing does not cover every aspect of sports marketing, owing to the fact that the majority of sports organizations create intangible assets. These, however, can readily be capitalized by resorting to appropriate marketing policies and strategies. Gašović (2005) defines sports marketing as a business-orientated activity that caters to the needs of both regular and potential customers who take an interest in various programs designed by sports organizations as well as sports-related products and services and, by doing so, assists them in accomplishing their long-term goals. It follows that sports marketing represents a highly economical but at the same time very remunerative vehicle for investing capital in advertising and other forms of marketing.  The bulk of sports organizations nowadays manage to secure a large proportion of their budgetary resources, more than half, according to some authors, by relying primarily on marketing schemes. Due to its overall importance, modern sports marketing is increasingly seen as the driving force of most sports organizations, which is why there is an ever growing need for both skilled personnel and specialized marketing departments within the organizations themselves (Popović, 2009). The main purpose of sports marketing is achieving financial security of sports organizations. The foregoing financial stability is to be attained through multiple marketing programs such as sponsorship and official supplier agreements, licensing, advertising, TV coverage and syndication of TV programs. According to Mason and Ezell, a great number of companies view sports marketing as a worthwhile expenditure that is expected to facilitate the accomplishment of market goals. Sport marketing, in itself, acts as an enticing lure to potential advertisers and sponsors in the sense that it represents a combination of world fairs, glamour and profit (Tomić, 1995). 

Compared to the other countries in the region, it has been estimated that sports marketing in Montenegro is at an extremely low level, which calls for a well–directed marketing strategy to be devised, especially following the entry into the International Olympic Committee and other international organizations, including amateur and professional clubs, national sports associations and the Montenegrin Olympic Committee. One of the direct consequences of this problem is the pressing need for research in the field of sports marketing with the aim of giving insight into the actual state of things, setting realistic objectives and encouraging experts to continue doing research in this field. 

This paper deals with marketing principles of the modern world focusing on sports organizations in Montenegro and the characteristics of marketing in this field. Additionally, the paper seeks to assert the fact that a proper coordination of work within sports organizations can bring about great improvement in marketing sectors of the organizations in the area. All the aforesaid facts aside, this study is not based solely on figures and percentages. Instead, it attempts to analyze the positive and negative factors that affect the development of marketing. The aim of the paper is to study marketing in relation to the following question: how can sports organizations be assisted in an effort to improve their methods, retain their regular clients and win new ones?  In essence, this paper concerns itself with theoretical as well as practical attempts at defining marketing planning with a view to effectively implementing marketing policies. Our study points to the necessity of presenting modern sport to clients worldwide as appealingly and as inexpensively as possible, and with as much clarity as can be achieved. The reason for this is the fact that for the last thirty years various sports organizations have taken an active role in commercializing sports. The research comprised in this paper seeks to shed light on the practical aspects of the matter in hand as distinct from descriptive studies often found in great numbers in books and articles. Based on a large sample of respondents to the survey, the research gives a realistic picture of people’s attitudes regarding the role of sports marketing in modern sport.  

METHODS

The research technique used in this paper is arguably one of the most widely used nowadays: the survey. It required that the data be collated using a previously compiled set of questions that the respondents had to answer orally or in writing. The principal research tool employed in this study was a questionnaire consisting of 28 open-ended, closed ended or Likert scale questions. The questionnaire represented an attempt to canvass the opinions of a great number of professional staff members holding top positions in sports organizations in Montenegro, with the aim of presenting the demands and views of the executives and their associates regarding sports marketing. While drawing up the questionnaire, we took great care to exclude any questions that could disclose the organizations’ confidential information and sent the respondents a covering letter as a guarantee of reliability and confidentiality. The locations and institutions selected for the experimental phase of the research included assorted Montenegrin amateur and professional sports clubs, recreational facilities, sports associations and the Montenegrin Olympic Committee. The sample was comprised of 101 respondents who were interviewed in a variety of ways (by personal interview, mail or telephone) and selected by means of combination or hierarchical classification which entailed covering a vast range of positions (presidents, secretaries, board members, coaches etc) and departments (Management, Marketing Department etc.). The process of data analysis was based on frequency distribution; one of the most commonly used data analysis procedures of descriptive statistics.

RESULTS AND DISCUSSION

The answers to the first question in the survey, regarding the respondents’ current job titles, indicated that the majority of them held leading positions in their organizations. Presidents, executives and those in charge of marketing departments accounted for 78.2% of the total number of respondents in the sample. In the light of this fact, we concluded that a large percentage of the respondents were well acquainted with the marketing activities of their organizations. This conclusion was based on the simple fact that, as senior staff members, these individuals were actively involved in either designing or approving marketing policies. Therefore, we considered the sample to be representative of the target population, and as such, a reliable tool for drawing conclusions

The third question was aimed at discovering whether the respondents subscribed to the opinion that modern marketing principles were fit be utilized for the purpose of increasing the organization’s income. The statistics indicated that the management of sports organizations, for the most part, neglected the principles of marketing and that nearly all the participants in the survey understood the financial benefits of marketing principles. The interviewees were almost unanimous, with 99 of them in favor and only 2 people against the idea.

Table 3 Do you think that modern marketing principles can help boost the organization’s income?

Question no. 5 required the respondents to rate the strategies that the organizations employed in the pursuit of their goals. Looking at Table 5 it is plain to see that their answers vary considerably making it impossible to spot any pattern whatsoever and draw any definitive conclusions. The most striking fact is that meeting clients’ needs, as one of the strategies for achieving goals, got the most five-point marks. Although the previous question indicated a glaring ignorance of marketing principles in general, the answers to question no. 5 seem very encouraging for they imply that the respondents treat the subject of marketing properly and that marketing principles could be made to flourish in Montenegrin sports organizations, provided the staff receive appropriate guidance.

Table 5 Based on your previous answer; rate the strategies that your organization uses to achieve its goals.

Table 7 Rate the reasons why your organization still hasn’t set up a marketing department.

The researchers then proceeded to enquire about the technique that the respondents used to attract sponsors. They did so by asking two simple questions. The respondents working for sports organizations that had already found companies willing to fund their activities were requested to rate the methods the organizations had used to approach sponsors. Although Table 10 displays a wide variety of answers, it also reveals a tendency for respondents to seek sponsors through friends and acquaintances. As all the other strategies were rated inadequate, it is clear that most sports organizations in Montenegro rely on personal connections when concluding a sponsorship agreement. Those respondents who reported that their organizations were still on the lookout for sponsors were asked to rate the potential reasons for being in this undesirable position. The figures in Table 11 indicate that the respondents were greatly divided on this issue. Still, two factors were deemed the most responsible. Many blamed the lack of specialized personnel and the fact that their organizations didn’t have marketing departments, which emphasizes the urgent need to design a program for training staff members in sports marketing.

Table 10 Rate the methods used for approaching sponsors.

Table 11 Rate the reasons for not having found sponsors.

Table 14 Dou you think that starting a specialized marketing department would lay the foundations for the future development of your organization?

REFERENCE

DA LI UVOĐENJE PRINCIPA MARKETINGA MOŽE UNAPREDITI RAZVOJ SPORTSKIH ORGANIZACIJA U CRNOJ GORI?

Sažetak
Predmet ovog istraživanja predstavljaju principi marketinga u savremenim tokovima sa pažnjom usmerenom na sportske organizacije u Crnoj Gori i specifičnosti marketinga u toj oblasti. Uzorak se sastojao od 101 ispitanog pojedinca koji su intervjuisani na više načina (ličnim kontaktom, putem pošte i telefonskog razgovora), a birani su putem kombinovanja ili raslojavanja, odnosno obrađena su različita svojstva (npr. predsednici, sekretari, članovi upravnih odbora, treneri, itd.) i različiti prostori (npr. upravna odeljenja i odeljenja za marketing). Korišćena je jedna od najrasprostranjenijih istraživačkih tehnika – anketiranje, dok je upitnik predstavljao instrument ovog istraživanja, a sadržao je 28 pitanja koja su postavljana u formi otvorenog i zatvorenog tipa, kao i u formi petostepene skale vrednosti. Tokom obrade podataka je korišćena  veoma zastupljena statistička procedura za obradu podataka iz oblasti deskriptivne statistike, distribucija frekvencija. Utvrđeno je da će korišćenje principa marketinga pomoći u razvoju sportskih organizacija i, pre svega, obezbediti im održivost u njihovom nesmetanom funkcionisanju i da će pravilno kombinovanje principa marketinga pospešiti kanale komunikacije sa klijentima i pomoći pravilnijoj organizaciji i upravljanju u sportskim organizacijama.

Ključne reči: marketing koncept, sport, sportska organizacija, sportski proizvod, potrošači

Corresponding author:
Stevo Popović
The Faculty of Sport and Physical Education,
The University of Novi Sad
Lovćenska 16, 21000 Novi Sad, Serbia
Tel.: +381 21 450 188, extension: 113
Fax: +381 21 450 199
E-mail: popstevo@uns.ac.rs