This month’s HBR magazine has an interesting article about rethinking the classic 4 Ps for B2B marketing. Instead of Product, Place, Price and Promotion, the authors propose Solution, Access, Value and Education. As NGBs are largely in the B2B space, rather than B2C, the article has some interesting ideas for sport’s governing bodies.
Instead of PRODUCT focus on SOLUTION
HBR – Define offerings by the needs they meet, not by their features, functions, or technological superiority.
Relevance to NGBs – as NGBs become more customer-focused in their planning and delivery, they are moving from just developing new products to providing the supporting services and experiences that collectively deliver benefits that meet customer needs. Central to this evolution is a deep understanding of their customer’s needs, influences and behaviours, as this enables them to clearly identify solutions that meet the specific needs of their target customers.
Instead of PLACE focus on ACCESS
HBR – Develop an integrated cross-channel presence that considers customers’ entire purchase journey instead of emphasising individual purchase locations and channels.
Relevance to NGBs – it’s often tempting to think about participants in just one place, whether its as a member of one club or on the end of one email address. In reality participants increasingly want choice and flexibility in how they engage with a sport, just as they do with many other brands. Therefore the modern NGB business model needs to consider who its target customers are, what kind of relationship the NGB wants to have with those customers, and who their key partners need to be to provide the range of access those customers want. These partners will include those offering local delivery options and/or online connections.
Instead of PRICE, focus on VALUE
HBR – Articulate the benefits relative to price, rather than stressing how price relates to production costs, profit margins, or competitors’ prices.
Relevance to NGBs – pricing is a common topic within sport, usually in the context of demands for programmes/sessions to be cheaper or free. To be able to achieve scalable growth, the conversation needs to turn to the value sport provides, as many of the competitors for people’s time have a higher price but still offer better/more relevant value. For example, how does the value of the hour of sporting experience you provide compare with the price of a coffee or a trip to the cinema?
Instead of PROMOTION focus on EDUCATION
HBR – Provide information relevant to customers’ specific needs at each point in the purchase cycle, rather than relying on advertising, PR, and personal selling that covers the waterfront.
Relevance to NGBs – in thinking about “grow” & “sustain” plans it can be easy to forget that most participants don’t quickly commit to a sport for the long-term. Therefore promoting the value and accessibility of the solutions a sport offers, needs to be an on-going process for retaining and growing customer engagement. This education can extend beyond where to play and why it’s adding value, to include information about the participation itself. Nike have already demonstrated that the cross-industry consumer trend for accessing and using personal consumption data can be harnessed as a powerful motivator of participation.