A short while ago I met up with representatives of Phumelela to discuss an innovative racing product that I have designed and developed. The discussion went according to expectations rather than what I was hoping for, but on the positive side has forced me to think long and hard about how I should approach future marketing and who I should be talking to.
They asked me how I would market this product and admittedly I did not have the answer on tap as I was only concentrating on marketing to the operator. With an academic and practical background in marketing I should have been better prepared for this very relevant and valid question, but it highlighted the importance of correctly anticipating situations in advance, something that betting operators could also learn from.
On the back of this slightly embarrassing moment and having given it some thought it might be appropriate to share some ideas on marketing and marketing considerations as it relates to racing.
Marketing is a vital and often misunderstood activity and the importance underestimated in a mature market. Racing finds itself stuck in a very mature market and has not yet grasped that a completely new growth curve is possible if the target demographic is adjusted to reflect a changing environment.
For marketing to be successful it is important to understand which long term goals are being, and should be pursued, and to be clear on your target market before you attempt to reach out to new customers. Only once this has been established will it be possible to decide on the best marketing approach and channels.
The most crucial element to marketing is having a genuine belief in what is being sold as without this failure is almost guaranteed. It is equally important to reach out to customers with something that they would want. Excuse the analogy, but you will not be able to sell the best horses in the world to customers looking for cars. This is important as it suggests that the starting point to any marketing drive should be product/service related and employees responsible should have the conviction to be able to sell with confidence.
Racing is interesting as there are actually two products, the races themselves incorporating the race day experience and a set of wagering products. Racing is very successful at marketing big day attendance but fails dismally at the second hurdle, which is the result of an inappropriate product set. Once this is fully understood and accepted the sport will be able to move forward with the introduction of more marketable offerings which it does not have at present, contrary to stubborn industry belief.
Clear objectives that should be addressed in product design are life changing pools that will capture the imagination and interest. Also a format that will encourage and promote regular and extended exposure to ensure that new players will commit to, and complete the learning curve, which in racing is longer and more challenging than for any other form of wagering. The whole experience should also be entertaining, affordable and socially stimulating to make the learning process fun and enjoyable and to promote long term involvement.
The recent launch of “It’s a Rush” is a step in the right direction and does cover some important marketing elements, but without addressing what I believe is the core problem, product mix, there will not be significant traction and follow through to a very worthy exercise.
As the relationship between participation, attendance and spectator value is documented it suggests that playing should be very specifically targeted in the promotion of racing rather than indirectly through occasional exposure to events.
There are numerous marketing approaches that could be followed and elaborated on but none will be worth a discussion without racing having something truly exciting to offer first from a product perspective. The problem is not and never has been racing, the Achilles Heel is racing’s products which are generally only suited to experienced players and serious gamblers.