Academia Meets Practice (AMP): Fan Equity Part 1 – Measurement and Management of Sports Organization’s Brand Equity
The objective of this article is to discuss the measurement and management of a team’s brand equity. Given the special relationship that exists between teams and fans, we prefer the phrase Fan Equity when considering brand equity in the world of sports. Our goals for this article include:
- Introduce the concept of Brand / Fan Equity
- Describe a statistical methodology for measuring brand / Fan Equity based on revenue premiums
- Provide examples of the application of the revenue premium model
- Discuss alternative approaches to brand equity management
- Provide several examples of how marketing decisions and team results can influence Brand / Fan Equity .
Full PDF: AMP Fan Equity
Academia Meets Practice (AMP): A Guide to Season Ticket Holder Management
The purpose of this article is to present a structure for Customer Relationship Management (CRM) in the sports industry. Fan management has much in common with customer management in traditional marketing contexts, but there are a few unique aspects that create special challenges for sports marketers. In this document we review these challenges and discuss potential solutions. Our goals for this article include:
- Establish the value of using Customer Lifetime Value as the underlying objective of season ticket buyer management.
- Introduce the basic concepts needed for developing a statistically-based decision-support system focused on season ticket holder management. Issues covered include modeling customer acquisition, customer retention, quantity decisions and migration between ticket quality levels.
- Highlight the importance of considering customer expectations in season ticket holder management. We also provide some preliminary insights into how the analyst can include “expectations” in statistical models of customer behavior.
- Discuss the complexities in dealing with ticket prices in a decision-support system. This discussion highlights various sources of information that may be used to develop a ticket quality index.
- Development of a framework that may be used to create / calculate dynamically optimal season ticket management policies.
Marketing Analytics & Marketing Assets: Brand Equity, Customer Equity, & Dynamic Pricing
Sports marketers face an increasingly complex environment that requires sophisticated analytics and extensive databases. In this paper, we address two issues related to managing marketing assets in sports contexts: calculating brand equity and integrating the multiple goals of marketing assets. We provide methods for computing teams’ brand and social equity, and illustrate our approach in the environments of college football and the NBA. We also apply the brand equity estimates to calculate the value of playing in BCS bowls. The interrelationships between customer equity, brand equity and inventory equity may require that teams adopt more holistic approaches to managing their organizations. This paper identifies key drivers of customer, brand, and inventory equity, and presents a framework with the overarching objective of maximizing customer assets while managing brand and inventory equity.
Brand Equity Development in College Football
While the marketing literature contains a substantial body of research focused on the benefits of strong brands, there is less research focused on the processes by which strong brands are created. In this research, the authors focus on the development of brand equity in the realm of college football. This non-traditional branding application provides an opportunity to study brand equity formation because data is available both on performance and consumer demand over time. College football is also of interest because of its cultural importance, and because organizational elements such as conference affiliations and the Bowl Championship Series may influence schools’ brand building investments. The authors investigate the influence of brand equity and customer base on investments in college football programs using a structural dynamic programming model. It is found that brand equity is primarily created through participation in BCS bowls. Notably, the authors find that after controlling for level of investment, small conference schools actually have preferred access to major bowl games.