Commercialisation Flashcards
Definition of commercialisation
Commercialisation is where a business is managed or exploited in order to make a profit and a financial gain.
Examples of commercialisation through media
Large media contracts to have executive rights to show sports (TNT Sports and The Champions League).
Sponsorship deals.
Importance of customer/fan engagement.
Impact of mass media.
Influence on new social media and digital marketing in sport.
Positive impacts of commercialisation
Increase in revenue.
Improvement in stadia.
New forms of sponsorships.
Improvement of training facilities/training of coaches.
Recruitment and development of employees/players.
Increase exposure to a national/international/global audience.
Increase fan base/reach.
Introduction of the global sport superstar.
Increased product range.
Negative impacts of commercialisation
Changes in who controls sport:
1) Increased influence of commercial organisations and media corporations.
2) Less control by national and international governing bodies.
3) Powerful/rich individual clubs holding increasing influence.
4) Individual players and agents having increasing power rather than clubs.
Over-reliance on funds/money from media deals.
* Influence on new technology.
Changing rules in sport to make it more suitable for television coverage.
More pressure on players e.g. extended seasons, player injuries, player burn out, early retirement.
Introduction of Global Sports Brands.
Media intrusion into sports stars’ lives.
Impact of social media and the positives and negatives.
Rising cost of spectatorship (both live through media).
Disconnect between fans and athletes.
How has sport developed because of commercialisation
Move from amateur to professional in different sports.
Transformation from leisure activity to paid performers/spectators.
Introduction of sponsorship.
Influence of new social media and digital marketing in sport
Importance of customer/fan engagement.
Impact of mass media.
Impacts of commercialisation on consumers and customers
Increased ticket and merchandise prices.
Limited access to watch sport due to broadcasting contracts.
Customers experience more media and advertisement.
More profit and money for the businesses.
