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MANAGEMENT IN SPORT Prof. Dr. Iordan Kalaikov

MANAGEMENT IN SPORT Prof. Dr. Iordan Kalaikov. 1. ORIGIN AND NATURE OF SOME CONCEPTS FROM THE GENERAL AND SPORTS MANAGEMENT

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MANAGEMENT IN SPORT Prof. Dr. Iordan Kalaikov

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  1. MANAGEMENT IN SPORTProf. Dr. Iordan Kalaikov • 1. ORIGIN AND NATURE OF SOME CONCEPTS FROM THE GENERAL AND SPORTS MANAGEMENT • The word “menajer” (with stress on the last syllable) has come into our colloquial speech from the French language. It’s root but is Latin and means literally “Manhus” – hand. Already in 1281 as “Mainager” the concept is used in France with the meaning “person who manages small community or household”. In 1968 in the English language appear the noun “manager” (leader) and the verb “to manage” (run, lead, look after). In fact the concept “menajer” firstly meant “person who in professional sport organizes the trainings and manifestations of the sportsmen”. Subject of the activity therefore is “menajerstvoto” (the suffix “stvo” means the same as the “ment” in the English language). So, the concepts “menajer” and “menajerstvo” differ as pronunciation and graphically from the English borrowings in the Bulgarian language, which are pronounced as “manager” and “management” (with stress on the first syllable) and mean governor, leader, director.

  2. Control questions The concept business The concept winning business Officials in sports management Bounds and differences between the concepts management and marketing Types of coordination in sports management 2. CLASSIFICATION OF SPORTS MANAGEMENT The development of the classification of sports management (Table 1), as all kinds of classifications is based on relatively independent indications. Such indications are: purposefulness of the sports activities, dimensions of the elements of the structure of management. Additional indications that derive from the first two are: location of the management, doing business, the sport activity according to the way it’s practiced. On this base, the classification can be formed in two levels: basic and additional (See Tb.1).

  3. EXPLANATION:PSC – professional sports club; FSS – formation for sports services; ASS – administration of sports structure; SE – sports event; ISC – intermediation services company.Control questions:On how many levels and with what types of indications is the classification of sports management built?Why are the indications in level one basic?Why are the indications in level two additional?

  4. 3. TYPES OF SPORTS BUSINESS Control questions: Which of the stated types of business do you know best? Write a short paper for it (1.5 pages).

  5. 4. THE SPORTS MANAGEMENT AS A PROFESSION

  6. Control questions: • Indicate the type of manager for the decision of the problems: • a/ consultant • b/ organizer • c/ controller • d/ managing • e/ giving directions • f/ contractor

  7. The authorization is: • a/ trend in the strategy • b/ part of the personal behaviour • c/ element of psychology • d/ tendency in people’s management • e/ work with the supervisors • f/ procedure from the working technology of the company

  8. Indicate the result of the manager’s activities with people. They become: • a/ they share the same views • b/ acquaintances • c/ friends • d/ relatives • e/ colleagues

  9. MANAGEMENT OF ELITE SPORTProf. Dr. Iordan Kalaikov

  10. Control questions. • The structures where management in elite sport is conducted are: Professional Sports Club, Youth Sport, Bulgarian Tourist Union, Mediatory companies. Underline the correct ones. • How are the structural-functional elements of the modern Professional Sports Club called?

  11. KEY GENERALIZATIONS AND WORDS • Manager, coach – general area of functional meaning • Management coordination of knowledge, conditions, contacts • Structures of management in elite sport • Sports-economical and media complex • Contractor’s approach in sports management • Sport in terms of the theory for the organizations • Creation and survival of sports structures • Self-management and self-financing of sports structures • Management bodies in the Professional Sports Club • Personal relations in the Professional Sports Club • Informational-communication nature of the Professional Sports Club • Marketing and advertising team • Board of the managers – heads of goal programs

  12. Control questions: • The structural elements of the Professional Sports Club in terms of the theory for the organizations are: structure, people, facilities, audience. Underline what is correct.

  13. PROJECT MANAGEMENT IN SPORTProf. Dr. Iordan Kalaikov • I. The project is starting something that uses LIMITED TIME AND RESOURCES (Knoepfel H., R. Burger, 1987, 2). Some define the project management as “mobilization and management of the resources for a LIMITED PERIOD OF TIME aiming the realization of a given project” (Stancheva A., 1, 1993). • Generally the management through business projects is a TEMPORARY ACTIVITY, connected with certain strategy for achieving certain purposes. If we have to generalize the essential from the different definitions, we can say that business projecting is launched for SOMETHING NEW, NEVER DONE BEFORE, represents a UNIQUE, ONE-TIME PERFORMED ACTIVITY and is realized for a limited time – till the purpose is achieved.

  14. KEY GENERALIZATIONS AND WORDS The project management is a single, unique activity, limited in time. It is not characteristic for the sports practice. The development of a project needs a special qualification. The existing projects are directed to the privatization of the sports services. The project form of managing the sports events is not widely used. The developed projects are characterized with de-balance of the financial result and lack of marketing The regional goal program – form of the project management in sport The regional program (project) is characterized with structure, technology of the development and management of the performance The regional program has five parts: general, ascertainable, staging, main, final The technology of the program included seven procedures: task, presentation, contract, debate, report, approval, budget The management of the program includes: appointment of a director, development of regulations, distribution of the budget, expert council, informational bank, pre-investment projecting, financing of the program

  15. II. Regional goal programs as form of project management in sport

  16. Control questions: The technology of the development of the program has: 4,6,7,8 ………………………………… procedures. Describe the essence of the second and third procedures. List the consecutive “steps” of the management for the realization of a program: ………………………………….. ………………………………….. …………………………………...

  17. III. The marketing mix and its components In the center of the marketing activities is the buyer. The interests and necessities of the buyer define the development and formation of the product, its price, its distribution in the network of shops and its promoting before the buyers. All these parts of the marketing activities for the marketing mix, which components are realized mixed and accompanied in the concrete market situations (Fig.3), (by W.Pride and O. Ferrell, 1994). On its side, each market situation is influenced by the marketing environment. It includes the legal-normative organization, the competition, the political powers and the powers of the authorities, the social aspects of the concrete activity, culture and others. This is the environment where production is planned and consumed.

  18. Control questions: The marketing mix includes ……………………………………

  19. IV. Marketing research

  20. V. Marketing tactics in sport • Tactics in marketing are the most efficient method on the producer’s side for realization of the production in a concrete market environment. The marketing tactics in sport are applied according to the market behaviour of the consumer and according to the life cycle of the goods and their market dimensions. • Tactics according to the market behaviour of the consumer • The market behaviour is identified by the interests and social status of the consumer, which define his/her solvency.

  21. Tactics according to the stages of the life cycle of the goods and their market dimensionsEach goods, designed to satisfy certain needs of the market, goes through several stages, which compose its life cycle. These are introduction, progress, ripeness and decay. At the same time, each goods has specific market dimensions, which are: quality, price, advertising, service. In the marketing practice the accent and thence the priority of the market dimensions is different – depending on the stage of its life cycle, in which the good is. • Control questions: • The marketing tactics are ………………………………………………………… • The life cycle of the goods has the following stages ……………………………..

  22. MARKETING IN SPORTProf. Dr. Iordan Kalaikov • 1. Nature of marketing • Marketing in the market oriented economy is a first-rate activity – it is unthinkable to produce without keeping accounts of the consumption of the production. “Marketing is the art to do market policy from the enterprises. To offer goods and services oriented to the necessities, the social environment and the competitive situation.” (Angern O., 1987) From this point of view, marketing is examined perceived as specialized activity for flexible adapting of the production to the consumers’ interests. The market is treated as dynamic formation, and the enterprise – as element of the market. • Marketing includes “development of the product, price-formation, distribution, promotion” (Pride W., O. Ferrell, 1994) and focuses on the goods, services and ideas.

  23. 2. Products in sport – specification and classification • The development of one or another product in the social systems is due to the interest and the necessities of the consumers, which defines the product as socially important and needed. At the same time, during the process of the theoretical consideration, the solving of the problem for the identification (what is produced and exchanged at the market) and classification of the product is fundamental. From this point of view, the clarification of the nature of marketing is impossible without a promising classification of sports production.

  24. The offered classification of the sports products (Kalaikov I., 1995) is formed by the indication – level of participation of products in the genesis of sports activity. At the same time are indicated the production structures: professional sports club and formation for sports services in the two goal directions of the functioning of the system for physical education and sport namely – elite sport and sport for all. In this connection there are three product classes – primary, derivative and accompanying.

  25. Classification of products in sport

  26. Control questions: • The products in sport are ……………………………………………………………. • Primary and production products in sport for all are …………………………………

  27. ECONOMICS OF SPORTProf. Dr. Iordan Kalaikov • 1. Economics of sport and its study The problems of the economics of sport in the context of the general economics are examined on the whole unsystematically and incomprehensively. The main reason is the specifics of sports product, the non-standard market, the non-validity in certain cases of the general market mechanism for the realization of the products.

  28. In 1989 P. Potinger develops an economic model of sport originating from the position that sports activity is based on the individual, school, club and profession. He tried to describe the principles of the economical activity in sport and the branches that contribute to such kind of activities. • Using mainly economic models and terminology, Bush (1992) develops an economic model of sport on the base of the sport-economical relations in the frames of the national economy, according to the level of production and the financial returns. • The further attempts for the clarification of the economic nature of sport are concentrated on searching common cover areas between economics and economics of sport mostly at macro-economical level (K. Heineman, 1995). These areas show the relations and dependences between sport and economics.

  29. 2. Main factors that influence on the economic processes in sport • Factors that influence the economic processes in sport

  30. 3. Subjects of the economic branch of sportThe economic branch of sport is built from independent sport companies specialized in the production of sports products. These are professional sports clubs, sports federations, companies that provide sports services to the citizens, enterprises that produce sports equipment, construction companies for sports facilities, advertising and mediatory companies in sport, sports media and others. • Control questions: • The reasons for the commercialization of sport are: ………………………………. • The bases of the commercialization of sports are: …………………………………

  31. 4. Sport markets • Sports events market. The intriguing sport spectacle, which the telecommunication companies buy to transmit are traded at the transmission market. On the other hand the transmission rights are also subject of sale-trade which is realized at the rebroadcast market. There is also market for the announcing of the sports event.

  32. The sport practice, especially for high achievements, is quite risky and that way health and other insurances of the sportsmen are made. This is the insurance market. The rehabilitation, the recreation which are a permanent activity accompanying the training process and the competitive performance provoke the formation of the pharmaceutical and medical market.

  33. Special kind of market is the transfer market. It is part of the labour market in sport, which on its side is part of the labour market of the society. The nature of the exchange which is realized at this market is the transfer of the competitive rights of the players. • Control questions: • The sports market is: …………………………………….. • The sports product is: …………………………………….

  34. 5. Macro and micro-economics of sport • The macro-economical frame of sport (level of the private, company economic subjects) is formed by two types of factors related with the economy of sports enterprises. This is the so called applied economics – defining the production purposes, the import and export of the products, the investments, the budget with its debit-and-credit part and balance, the jobs and their dynamics, the paid taxes and so on.

  35. The media and advertising agencies which further the broadcast, rebroadcast and the selling of sports spectacles (competitions) pertain to the meso-instruments in the economic sector of sport. • The sports demography is a special kind of meso-instrument. It is an economically variable quantity which influences the development and the geographical spread of the sports. • The show in sport is also a meso-instrument. It is defined directly or indirectly and incomes from the selling of sports spectacles depend to a great degree on it.

  36. The macro-economic frame of sport is defined by these branches which appeared in the process of sports commercialization that can be described as economical (transfers, trade with advertising and television rights, production and trade with sports articles) and has influence on the state economy (opening of new jobs, generation and re-creation of big capitals). • Control questions: • The macro-economics of sport expressed by ………………………………………… • The consumers of the sports products are …………………………………………… • The common area of economics and sport is ………………………………………… • The macro-economics of sport is formed by ………………………………………….

  37. INTERNATIONAL MARKETING IN SPORTProf. Dr. Iordan Kalaikov • Introduction. The imposing of the global management and marketing in the international sport can be described with several special features. • The managing approach to world’s sports management connected before all with its prosperity and global development is approved. From this point of view is observed the binding of sport with economic and media groups on national and international levels. • The rapid consolidation of sport, industry and media causes the phenomenon sport-economic and media complex. • The modern sports management is realized in complicated conditions, in multi-directional broad relations between sports clubs, competitors, media, companies, mediatory firms.

  38. I. Components of the International Sports Marketing (ISM) • The conflicting nature of the concept • When interpreting the concept ISM we have to ask three questions. • The first one refers to the positioning of marketing. Having in mind that marketing is an activity of a separate company or a group of joint companies, arises the question are there international sports companies which produce sports goods, for which realization marketing is needed? As it is known, the professional sports clubs, which produce sports products, are national, not international. Therefore the classical model of marketing at international level does not work.

  39. The second question refers to the technology of the ISM. Whether sports formations are at the base of the ISM, or are just a part of the global mechanism? And if this is so, who puts this mechanism in motion? • The third question refers to the character of the specific formations, which come as a result from the functioning of the ISM. We have also to ask if these formations have compact and strictly positioned structure or rather are “structures of the conglomerate type” and that’s why their form is labile, subject to continuous modifications. • Control questions: • Describe the type of the structures which participate in the International Sports Marketing ………………………………………………………………………

  40. II. International Sports Marketing (ISM) – global model • 1. Nature and formation of the sports-media complexes • ISM is realized by means of the media and industrial concerns, as active role in the process play the international mediatory companies for sports business. The principal model is presented in the figure below. • The media concerns realize a complex sale-trade of the advertising and television rights, owned by the professional sports clubs – of the grand type (professional clubs, usually joint-stock companies, which have the possibilities and the pretensions to fight for top positions at continental and world levels). The characteristic feature of these deals is that the agreement is not only about the rights, which is the usual practice. The purchase is complex – apart from the advertising and television rights of the PSC, the owners of these rights themselves are bought, namely the clubs. Moreover a number of such types of purchases are made, as the ownership spreads over whole chains of PSC, of the grand type.

  41. The media concerns buy all the things together – the whole package of rights, paying enormous amounts of money, and this way they receive monopoly rights for broadcasting. As a result of this adhesion of the media and sports structures, new, strange structures are formed – imposing sports-media complexes. In fact this is division of the world markets for advertising and television rights with strict segmentation of the influence perimeter of each media company.

  42. 2. Nature and formation of the sports-economic complexes • Like the media concerns, solid interests in sport have also the industrial concerns, because they want to access the market of the enormous international audience of sports fans, which is a resource of exceptional profits. Apart from the access to the fans market, the industrial concerns buy with the deals with the sports structures also their prestige, using it afterwards to build their own prestige, identifying themselves with the winner (the unbeatable) – club or sportsman. As a result of the business relations between the industrial concerns and the professional sports clubs (of the grand type) are formed big sports-economic complexes.

  43. 3. Hegemony over worlds sport from media and industry • As results of the combination of the business interests of the big sports-media and sports-economic complexes is formed the so called sports-economic and media complex, which in fact has hegemony over the world sport. The hegemony is expressed in different forms, but its most striking manifestation is when the program for the world or continental championships is prepared. Then, the general sponsors or the exclusive owners of the advertising and televisions rights, because of their business interests, exert pressure or even dictates on the organizers of the competitions. The program is made not according to the requirements of a given sport for recovery time, adaptation to the climate conditions or round-the-clock rhythm of activity and rest, but according to the business interests – to be convenient for the viewers, not for the players.

  44. Control question: • By purchases of what and by whom are the big sports-media complexes formed? • 1. By purchases of ………………………………………………………. • 2. The purchase is made by …………………………………………….. • 3. The sellers are …………………………………………………………. • What does the concept complex purchase of advertising and television rights mean? /describe it/ • Who forms the big sports-economic complexes? • They are formed by …………………………………………………………… • The formation is made by a sale-trade of ………………………………………

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