advanced theory and practice in sport marketing - Marshalls University

Service retailing in the United States and worldwide continues to grow at a
consistent rate, and represents a significant portion of overall retail trade. In the
United States alone, consumers spend almost 2/3 of their income on services.
Almost 80% of the labor force works in the services sector. A significant percentage
of these services are in the fields of sport and recreation.
Service retailing is much more dependent on personal interactions and wordof-mouth
communication than goods retailing. Therefore, the intangible nature
of many services makes it more difficult for a sport retail firm to develop a clear
consumer-oriented strategy because of three main factors. First is the inseparability
of the service provider from their services, which makes that individual
indispensable. If the service provider cease operations or no longer offers the
required services, the sport retailer is left without the ability to service their customers.
Second is the short life span of many services. This is especially true with
technology-based products and services, where the average turnover is approximately
6 months. Third, the variability of services creates a situation where service
quality may differ for each purchase, retail outlet, or service provider.
RETAIL STRATEGY
One of the major concepts discussed in the development of value and relationships
is the development of a sport retail strategy. A sport retail strategy is the
overall plan of action utilized to guide a sport retailer. This plan includes a situation
analysis, goals and objectives of the organization, and an identification of
customer’s needs, wants, and desires. The creation of the overall strategy will
include the specific tasks to be completed, how the work is to be controlled, and
how feedback on the retail strategy will be collected and evaluated.
A well-implemented strategy results in the coordination of all aspects of the
business, and helps the firm complete tasks and avoid disasters in a more efficient
and effective manner. This involves variables the sport retail manager can control,
such as store location, organizational structure, human resource management,
operational management, merchandise management, and the ability to communicate
directly with sport consumers to determine their needs, wants, and desires.
In addition, there are other variables that cannot be controlled by the sport retail
manager, which therefore requires a modification to the retail strategy. These
variables include the sport consumer itself, threats caused by competitive situations,
and changes in economic, technological, and legal conditions.
To succeed, the sport retail strategy must be integrated throughout the
organization. From an internal viewpoint, work is controlled via a sport
retail audit. This periodical review involves analyzing the performance of the
sport retailer with the goal of revealing the strengths and weaknesses of the
organization. The goal is then to maintain and build on strengths, while improving
upon and eliminating weaknesses. From an external standpoint, sport retailers
must utilize tactical decisions to be responsive to the external aspects of the
business – taking advantage of opportunities and avoiding threats to the organization.
This is usually accomplished through a variety of retail tactics that are
the basis of daily and short-term retail operations including: (1) the location of
SPORT RETAIL MANAGEMENT 281