thesis proposal
TRANSCRIPT
Marketing a Local MMA Event:
The Spectators Perspective
A Thesis
Presented to
The Department of Sport and Athletic Administration
Gonzaga University
In Partial Fulfillment
Of the Requirements for the Degree
Master of Arts in Sport And Athletic Administration
By
Mark Lootens
April, 2011
58292271April 29, 2011EDPE 565
Abstract
The purpose of this study is to discover marketing elements which improve the spectator
experience for non-UFC promoted MMA events. The enormous popularity of the UFC and the
sport of MMA create an opportunity for sport marketing professionals and scholars to learn what
elements are drawing spectators in record numbers. The study implements a series of interviews
and focus groups with the intention of discovering what elements MMA fans feel would create
an enjoyable and sold out non-UFC promoted MMA event.
58292271April 29, 2011EDPE 565
Table of Contents
Title Page i
Abstract ii
Table of Contents iii
Chapter I: Introduction 1
Chapter II: Review of Literature 5
Chapter III: Methodology 10
References: 14
58292271April 29, 2011EDPE 565
Introduction:
There is speculation that mixed martial arts (MMA) may be the fastest growing sport in the
United States (Miller & Washington, 2011). It has seen a growth period over the past 10 years
which is unprecedented in the North American sports business. The Ultimate Fighting
Championship (UFC) the sports largest promotional organization was estimated by Forbes to
have annual revenue of $250 million with an estimated value of one billion dollars. This is
remarkable when considering that the promotion was purchased in 2001 by Frank and Lorenzo
Fertitta for 2 million dollars, and the two brothers claim that they have recently received offers
for more than one billion dollars (CNBC, Jan 2010). On average a UFC pay-per-view event
draws 3 million viewers which is more viewers than many major NCAA college football games
(Andrew et al., 2009). The promotions popular television series “The Ultimate Fighter” drew
more viewers in the male 18 to 34 range in 2009 than any of the three MLB playoff games that
were played the same week. The sport is not only attracting viewers in large number is also
attracting world class athletes such as Olympians, NCAA national champion wrestlers, and the
world’s best martial artists.
The sport of MMA arts has made rapid gains in popularity, particularly in 18-35 year old males,
in spite of early opposition from politicians, law makers and some medical experts. MMA in
general is often portrayed in the media as bloody, violent and brutish. Journalists and spectators
often described it as a spectacle, with few if any predicting that it would rise to become a billion
dollar industry or legitimate sport. The sport originally was promoted starting in 1993 as a
fighting competition where “anything goes” (Seungmo et al., 2008) and was outlawed by athletic
commissions across the continent and legislated off of television. The state of New York is still
58292271April 29, 2011EDPE 565
one of the last to sanction MMA events in the state claiming concerns over fighter safety as the
main reason.
The fact that MMA has been successful at attracting a young demographic is not surprising.
Marketing research has demonstrated that young consumers (i.e. 18-35 year old males) are much
more likely to switch brands or preferences to a new and emerging brand, however the research
indicates that a young consumer will not switch brand preference simply because a brand is new
(Anderson & Sharp, 2010). This would suggest that there are aspects of the sport which are
attractive to consumers aside from the idea that it is simply a new and exciting novelty.
The Problem:
Despite the sports rapid growth very little research has been done to investigate what marketing
efforts are drawing in these large crowds. This leaves promoters and marketer professionals
guessing to a certain extent as to what the best marketing strategies are for their sport.
Knowledge of public perception provides marketers and promoters with valuable information
that help formulate public relations, education, awareness and sales campaigns. However without
any insights into what potential consumers are feeling about the sport, marketing managers are
left guessing as to what the best approach to grow the sport and their business is. The UFC is the
most successful promotion in the sport and it is estimated that it is responsible for 90% of the
revenue that the sport generates (Miller & Washington, 2011). Due to the enormous popularity of
the UFC, there is tremendous opportunity for smaller regional promoters to capture some of the
fan base. Local MMA events featuring lesser known local athletes would not directly compete
with the UFC, as they would provide a smaller and less expensive experience than a UFC event.
They give fans a chance to see the sport live, in their own city on a regular basis. These
promotions are in a position where they do not have to gain any new fans to the sport to be
58292271April 29, 2011EDPE 565
successful; they simply need to attract the fans of MMA in their area which already exist as a
result of the popularity of the UFC. To date the research done has been based on spectator
motives, and provides very little in the way of ideas which can be immediately implemented
which would improve a promoters marketing efforts.
Statement of Purpose:
The purpose of this study is to discover marketing elements which improve the spectator
experience for non-UFC promoted MMA events. The study seeks to understand why a MMA fan
would want to attend such an event, and how to get their attention and entice them to come to
your venue.
Research Question:
How can a smaller promoter get the attention and successfully attract fans for MMA events
which are not promoted by the UFC?
Rationale:
The need for the study comes from a lack of literature on the topic of MMA. This study will
provide insights into the development and perceptions of a sport while it is in rapid growth and
relatively new. The few studies on the sport of MMA have been conducted thus far have focused
on spectator motivations at MMA events. They have compared differences between professional
and amateur events, as well as American and international events. These studies provide good
information which helps explain what demographics are attending these events and which parts
of the event they felt at the time where most attractive. The present study seeks to build on this
by exploring in depth what factors the MMA fans feel would make an event successful to them.
Previous research has highlighted that by allowing consumers to become part of the creative
process, the consumer feels more engaged and is more likely to develop a strong loyalty to the
58292271April 29, 2011EDPE 565
brand they feel associated with (Yu Kyoum & Trail, 2011). It is hoped that by asking the
participants to take the perspective of marketing their ideal non-UFC promoted MMA event, that
the participants will provide specific and meaningful insights that cannot be extracted from
survey data on spectator motives. There is a need for sport management scholars to provide
meaningful and implementable research for sport management practitioners (Dolnicar &
Lazarevski, 2009). The author intends to provide this type of market research for MMA
promoters with this study.
Definition of Key Terms:
MMA - is an acronym which refers to a sport called Mixed Martial Arts, which is a blend of
various forms of martial arts used together in a combat style competition.
Relationship Marketing -is a marketing strategy which emphasizes customer retention by
focusing on long term customer satisfaction and developing a partnership with the consumer.
MMA fan – For the Purposes of this study a MMA fan will be defined as an individual who self
identifies themselves as a fan and has viewed a minimum of 5 events in the past year, and one
live event in the past 2 years.
Successful Event – will be a considered a sellout. Factors such as revenue and profit will be
ignored for the current study and participants will be asked to answer the questions from the
perspective of what they feel would create a sellout event.
58292271April 29, 2011EDPE 565
LITERATURE REVIEW
Introduction:
The sport of MMA is a relatively new venture that is rapidly growing. Most sport management
studies focus on more traditional and established sports. This has led to a gap in the literature
surrounding niche market and developing sports. By understanding the driving forces behind
why individuals are choosing to view the sport, it will provide insights which could help propel
the sport from a niche market event, into a mainstream sport like boxing. The fairly limited
literature that is focused on MMA can be generally categorized into two categories. The first is
spectator motives, the second category is athlete health and health and safety. Following
analyzing the literature on MMA there will be a brief review on the literature providing the
theoretical foundations of this study.
Spectator Motives at MMA Events:
Seungmo, Greenwell, Andrew, Lee and Mahoney (2008) were the first to look at spectator
motives of MMA fans. The researchers identified ten motives based on previous research, and a
panel of experts analyzed the possible items to analyze the ten factors. The survey was then
administered at a local amateur event, with additional data being collected on demographics,
MMA experiences and media usage. Sport interest, aesthetics, and social factors were found to
be the largest factors of motivation. This research was further expanded upon by Andrew,
O’Neal, Greenwell, and James (2009) who were interested to discover if the there was a
difference in spectator motivations between those who attended a professional bout, compared to
those who attended amateur events. They replicated the previous study performed by Kim et al.
(2008) but chose two replace the economic and national pride factors with crowd experience and
58292271April 29, 2011EDPE 565
sport knowledge. This time the survey was conducted at a large professional event. A one-way
MANOVA was conducted to determine the differences between male and female responses.
Aesthetics and drama were the two most influential motivational factors. Vicarious achievement
was found to be the biggest gender difference, with males rating it significantly higher than
females as motivation for attending an event. Kim, Andrew, and Greenwell (2009) expanded on
this study further by comparing the differences in spectator motivations between spectators at a
Korean event, and an American event. The researchers wanted to discover if there was a
difference between cultures in spectator motivation. It was found that sport interest, fighter
interest and drama predicted media consumption at the American event, while sport interest,
drama and adoration were significant predictors at the Korean event.
Participant Safety:
Bledsoe, Hsu, Grabowski, Brill and Li (2006) from Johns Hopkins University explored the
incidence of injury in professional MMA fighters. Data from all professional events between
September 2001 and December 2004 in the state of Nevada was obtained from the Nevada State
Athletic Commission and was analyzed. A total of 171 MMA matches involving 220 fighters
were analyzed. It was found that the overall injury rate was 12.5 injuries per 100 competitor
rounds, with facial laceration being the most common injury accounting for 47.9% of all injuries.
The research indicated that the injury rate in MMA is compatible with any other combat sport
involving striking, and the lower knockout rates in MMA compared to boxing may help prevent
brain injury. Age was also found to be a major predictor of likelihood of injury. A study
performed by Buse (2006) reviewed competitions over a 10 year period and found that facial
lacerations were the most common injury and that age was significantly correlated with
likelihood of injury, and suggested further research was needed to reach conclusions on the
58292271April 29, 2011EDPE 565
safety of the sport. It should be noted that the majority of the competitions reviewed in this study
took place before 2001, when major changes to the rules took place allowing for the sport to be
sanctioned by state athletic governing bodies.
Research involving the effects of violence on the enjoyment of entertainment media has
suggested that increased violence does not lead to increased audience satisfaction (Sparks et al.,
2003). This theme is further enforced by research which indicates that the use of violent images
in advertising of sporting events does not increase the consumer’s likelihood of purchase
(McDaniel, S.R., 2007). These studies seem to suggest that the promotion of violence will not
necessarily increase the consumer’s tendency to purchase, or increase their satisfaction. When
the research on MMA safety is combined with the research on violence and media consumption,
the information implies that there are other factors which need to be understood and addressed
which make MMA events attractive to an audience. This study aims to help provide insight as to
why and how to draw a spectator to an MMA event.
Relationship Marketing:
Sport management scholars have recently identified a need for marketing professionals to
integrate the consumer into the creative process when developing marketing strategies (Yu
Kyoum & Trail, 2011). These scholars suggest that by creating open lines of communication and
integrating the ideas which are generated by the consumer, sport businesses can increase their
customer satisfaction and drastically increase their customer loyalty. It is argued that this is
critical in the continually increasingly competitive marketplace.
Brooks (2003) did an excellent job of using relationship marketing when designing the
marketing campaign for the shoe company AND 1. In the article, the author explains in detail
how by allowing the consumer to become a creator in the advertising and marketing
58292271April 29, 2011EDPE 565
development of a new product, the company was successful in launching a new product to a
specific niche market. The methodology the market research team implemented involved
recruiting urban teenage basketball players to become part of the marketing team which designed
the advertising for a new high end shoe. The result was enormously successful and the author felt
that by implementing this style of market research they were able to connect with their target
market in a way which otherwise would not have been possible. It is this type of connection
which is the primary goal of this research project.
Qualitative Research:
All three of the previous academic studies on spectator motives at MMA events used surveys as
their method of data collection. While these studies were an excellent starting point to the
academic exploration of MMA, quantitative studies of this nature have several limitations.
Interviews have the potential to answer the “why” and “how” of a research question, and often
provide information which is of a more practical nature for sport management professionals
(Gratton & Jones, 2004). While a survey does allow for a larger sample population and may
allow you to make generalizations about a population, some experts argue that surveys tend to
only yield the opinions of those individuals who approve of the use of surveys in the general
population (Goyder, 1986). Furthermore quantitative studies tend to be confusing for many sport
management practitioners, as they lack the advanced statistical understanding to interpret much
of the data (Dolnicar & Lazarevski, 2009). These findings provide the theoretical background
behind this studies qualitative research design.
Previously research has highlighted spectator motives in attending MMA. To no surprise fans
rated elements like sport interest, drama, aesthetics, and social factors as strong indicators of
their event viewership. The study of motivation does not tell us what it is about the sport that is
58292271April 29, 2011EDPE 565
connecting with fans, particularly 18 to 35 year old males that is attracting them in large
numbers. There is a need for qualitative studies, which can provide implementable and
understandable information to MMA promoters, which further investigate what MMA audiences
find attractive, and allow those fans to more completely explain what creates the attraction to the
sport.
58292271April 29, 2011EDPE 565
Methodology
The research design for the study on marketing a MMA event will be qualitative in nature. The
data will be collected through a series of semi structured interviews and two focus group
sessions. The study will be utilizing inductive reasoning as the researcher is searching to learn
from a spectator’s perspective how they would design their ideal local MMA event. The
researcher is more interested in how people feel about MMA and what they want to see in great
depth and detail, and as such feel that the use of a survey will not provide the quality or honesty
of responses that will provide specific and applicable suggestions for a MMA marketing plan.
The interviews will be recorded using a digital recording device and the focus groups will be
taped using a digital video recorder for post interview analysis.
Ten adult candidates will be used who meet the study’s criteria of an MMA fan. For the purpose
of this study an MMA fan is someone who has viewed at least five MMA events in the past year
and attended at least one live MMA event in the past two years. The ten individuals will be
recruited from both a live MMA event, and from a venue which is showing a pay-per-view
MMA event. No specific demographic will be targeted and an effort will be made as long as the
participant meets the criteria of a MMA fan, however an focus will be made to ensure that a
minimum of three female participants are recruited as previous studies have found that
approximately 23.1% to 35.1% of MMA audiences tend to be female (Andrew et al. 2009). The
researcher will approach candidates he feels are suitable for the study and explain the study and
what would be expected of those being interviewed. All candidates will be offered tickets to an
upcoming live MMA event in exchange for their participation. The sample size of ten individuals
will allow for in-depth and thorough interview process. The information will be much more
detailed and provide insights into why the participants feel that way. The key piece of
58292271April 29, 2011EDPE 565
information that the research team is seeking to understand is how they feel about MMA events,
and what they want to see at an event and in advertisements that will help trigger those feelings.
This study will be approved by the IRB of Gonzaga University by 30 May, 2011 and all process
and procedures pertaining to this process will be carefully followed.
The participant’s semi-formal interview will be based on a series of four questions which are
seeking to uncover the spectator’s emotional connection to the sport, as well as the logic which
they use to explain why they enjoy viewing MMA. The four questions the interview will be
based on are:
1) What is the first thing that comes to mind when you hear the term MMA? Why?
2) What is the biggest reason why you view or attend an MMA event?
3) What makes an MMA event enjoyable for you to watch? Is there anything about MMA that
you do not enjoy?
4) What is your favorite place to watch an MMA event (live, home, bar)? Why?
The questions will allow for follow up and further probing and the participants will be free to
answer the questions in as much detail as possible. Following the interviews the participants will
be gathered and placed into two focus groups (five individuals each) where they will have one
hour to design what they feel would be a successful local non-UFC MMA event in their city.
They will be encouraged to include details such as the venue, day of the week, athletes,
advertising efforts, and any other features they feel would make it an exciting event that would
sell out. The only goal of their marketing plan would be to create what they felt would be a
sellout event. Following their one hour focus groups they would then present their plans to each
other and discuss their plans together. Both the focus groups and presentations of the marketing
plan will be video recorded for further analysis and reflection.
58292271April 29, 2011EDPE 565
The conversations from the interview will then be transcribed into a written document for further
analysis. Common themes and elements will be noted. The video footage of the focus groups
will be reviewed and common themes and ideas will be noted, as will ideas which were
presented which got a positive reaction from the other group. Specifically ideas and themes
which are found to be mentioned by more than half of the participants in the individual interview
will be made special note of and recommended as concepts which may deserve special attention
in marketing efforts. In the focus groups, ideas and suggestions which are made by both groups
will be made a special note of. The other factors that will be observed in the focus groups are
ideas which are presented which create a spontaneous response from the other group. A
spontaneous response will be considered any comment or conversation which occurs as a result
of the idea being presented. This information will then be used to create a list of suggestions for
developing a marketing plan for local MMA promoters. This list of ideas will then be compared
to current literature and marketing theory looking for similarities and potential conflicts. The
purpose of the list is not meant to create new marketing theory necessarily, nor is it meant to be
considered a comprehensive “how to” guide for marketing a local non-UFC promoted MMA
event. The suggestions are simply meant to be a list of ideas to consider which hopefully could
assist promoters to better understand what MMA fans feel would make for a successful and
entertaining event.
58292271April 29, 2011EDPE 565
References
Anderson, K., & Sharp, B. (2010). Do growing brands win younger consumers? International Journal of Market Research, 52(4), 433-441.
Andrew, D. S., Seungmo, K., O'Neal, N., Greenwell, T., & James, J. D. (2009). The Relationship between Spectator Motivations and Media and Merchandise Consumption at a Professional Mixed Martial Arts Event. Sport Marketing Quarterly, 18(4), 199-209.
Bledsoe, G.H., Hsu, E.B., Grabowski, J.G., Brill, J.D., Guohua, L. (2006). Incidence of Injury in Professional Mixed Martial Arts Competitions. Journal of Sports Science and Medicine, 136-142.
Brooks, V. (2003). Exploitation to engagement: the role of market research in getting close to niche targets. International Journal of Market Research, 45(3), 337-354.
Buse, G. J. (2006). No holds barred sport fighting: a 10 year review of mixed martial arts competition. British Journal of Sports Medicine, 40(2), 169-172.
CNBC, (12 Jan, 2010) UAB buys into UFC. CNBC: Retrieved from http://www.cnbc.com/id/15840232?play=1&video=1383661807
Dolnicar, S., Lazarevski, K. (2009). Methodological reasons for the theory/practice divide in market segmentation. Journal of Marketing Management, 25(3-4), 357-373.
Goyder, J. (1986). Surveys on Surveys: Limitations and Potentialities. Public Opinion Quarterly, 50(1), 27-41
Gratton, C., Jones, I. (2004). Research Methods for Sports Studies. New York, NY. Routledge.McDaniel, S.R. (2007). The role of gender and personality traits in response to ads using violent
images to promote consumption of sports entertainment. Journal of Business Research, 60(6), 606-612.
Miller, R. K., & Washington, K. (2011). CHAPTER 39: MIXED MARTIAL ARTS. In, Sports Marketing (pp. 201-203). Richard K. Miller & Associates.
Sparks, G. G., Sherry, J., & Lubsen, G. (2005). The appeal of media violence in a full‐length motion picture: An experimental investigation. Communication Reports, 18(1), 21-30
Seungmo, K., Andrew, D. S., Greenwell, T. (2009). An analysis of spectator motives and media consumption behavior in an individual combat sport: cross-national differences between American and South Korean Mixed Martial Arts fans. International Journal of Sports Marketing & Sponsorship, 10(2)157-170
Seungmo, K., Greenwell, T., Andrew, D. S., Lee, J., & Mahony, D. F. (2008). An Analysis of Spectator Motives in an Individual Combat Sport: A Study of Mixed Martial Arts Fans. Sport Marketing Quarterly, 17(2), 109-119.
Yu Kyoum, K., & Trail, G. (2011). A Conceptual Framework for Understanding Relationships between Sport Consumers and Sport Organizations: A Relationship Quality Approach. Journal of Sport Management, 25(1), 57-69.