APSM Final

• The majority of entry-level jobs in sport management
• Sport Sales
o People traditionally get their start in the industry in the ticket sales department, first staffing the ticket booth and then advancing up the sales ladder to group sales and partial or full season ticket plans.
• What influences purchasing decisions
• Quality
• Quantity
• Time
• Cost

1. Quality: teams’ win loss record are one obvious example of identifying the quality of the product or service and influencing consumers’ purchase behavior decisions
2. Quantity: an individual might purchase a mini plan from an NBA team rather than a full season ticket package so the numbers (the units) in which the product is sold can become an influencing factor
3. Time: Family obligations, work schedules, and everyday life can dictate whether the consumer has the time to consume the product. For example, to make a season ticket purchase worthwhile, the individual must have the time available to attend the majority, if not all, of the teams’ home games
4. Cost: Each year TMR (Team Marketing Report), one of the leading industry trade publications, publishes a Fan Cost Index (FCI)

• The sales process (historically versus today)
• Shifted from advertising product shots to selling a lifestyle
• Certain myopias slowed the growth of the sports marketing profession.
• One-size-fits-all packages, lack of foresight in marketing
• Evolution of marketing happened through increased competition for the entertainment dollar and through professionally trained sport marketers.
• Sales strategies and methods
(Double Check this one)
• The process of identifying customers
• Getting through to them
• Increasing their awareness and interest in your product and service
• Persuading them to act on that interest

o Eduselling- an evolutionary form of selling that combines needs assessment, relationship building, customer education, and aftermarketing in a process that originates at the prospect targeting stage and progresses to an ongoing partnership agreement. It is a continual process monitoring customer utilization and satisfaction through regular communication.
o Up selling- persuading an existing customer to move up to the next more expensive sales level
o Aftermarketing- customer retention activities that take place after a purchase has been made; the process of providing continued satisfaction and reinforcement to individuals or organizations who are past or current customers
o Benefit selling- a sales approach that involves the promotion and creation of new benefits or the promotion and enhancement of existing benefits to offset existing perceptions or assumed negatives related to the sport product or service (ex. Flexbook)
• Understand what objections customers have to your product or service and why
• Once benefits have been identified they must be publicized and must be judged by the customer to have worth or value
o Database marketing- a type of marketing that involves creating a database (usually consisting of names, addresses, phone numbers, and other demographic information related to current and potential customers) and then using it to maintain or gain customers; can range fr file of index cards to high tech software packages with the ability to cross reference and segment consumers

• The founder of sport promotion
• Bill Veeck
• Customer relationship management (CRM)
The implementation of relationship marketing practices that involves creating a database usually of demographic and psychographic information of current and prospective customers
• Product orientated approach vs. consumer-orientated approach
There has been a shift in emphasis from product-oriented to consumer-oriented sales.
Think of how advertising has shifted from product shots (focusing on features and benefits of a product) to selling a LIFESTYLE!
• Long-term vs. short-term sales benefits/approaches
• Fan Cost Index (FCI) What is this? What is the average cost/FCI?
• Fan Cost Index
• Includes cost that consumers incur including the ticket
• $194.98
• Average cost of tickets for a family of four to a MLB game
• Major League Baseball
• $107
• How sport sales differs from other traditional consumer product sales
• Presence of emotion
• The emotion inherent in sport adds a special excitement to the sale process
• “club sandwich” What’s this mean in relation to sport sales? What’s the “club sandwich” recipe for success?
• The “recipe” for a good-tasting and profitable “club sandwich” through which to maximize ticket sales revenue
• Season ticket equivalencies (full and partial plans) – 50%
• Advance Ticket Sales – 25%
• Group Sales – 20%
• Day-of-Game/ Walk-Up Sales – 5%
• Naming Rights – (arena or stadium, practice facility, or team) Think of examples of what makes sense by segment: arena/stadium sponsorship vs. league vs. team vs. individual athlete sponsorship) In other words, when does it make sense to have a league sponsorship (entire league) vs. a team sponsorship. Arena vs. individual athlete sponsorship?
• Opportunity to sell entitlement of arena or stadium, practice facility, or the team itself
• “New” phenomenon resulting in a significant new revenue stream for sport organizations
• Includes clauses designed to ensure that sport organizations get back for free their ability to sell their facility’s name if the purchasing company becomes insolvent
• Case Study 14-1 The Outsourcing of College Ticket Sales Operations p. 374-377
Just go read it
• History of Sport Sponsorship and what it involves
Increasing commercialization of sports has led to tremendous growth in sport sponsorship.
$11.3 billion spent on sport sponsorships in 2009
• Ways to evaluate sport sponsorship (p. 378-379)
o Vital due to growing financial commitments necessary to effectively activate sport sponsorship programs
o Difficult to determine precisely how much incremental sales are directly attributable to a specific sponsorship program.
o Many companies conduct periodic consumer surveys to determine ROI.
o Companies often hire professional sport research firms* to perform media evaluation research that examines corporate sponsorship and brand exposure through television and print media coverage of sports events.(*strong research skills is valuable to possess!)
o No one exact formula for measuring ROI
o For ROI, companies use the following:
• Internal feedback, sales/promotion bounceback measures, print media exposure, television media exposure, primary consumer research, dealer/trade response, and syndicated consumer research
• Reasons for the tremendous growth in sport sponsorship
o Commercial success of 1984 Los Angeles Olympics
o Increased media interest n sport, which has provided companies with a built in mechanism for promoting their sponsorship involvements, assured sponsors a better opportunity that their sponsorship will be publicized
o Way for companies to break through the clutter of traditional advertising
o Derive numerous in venue, in broadcast, and online promotion and publicity benefits that go far beyond the impact of a 30 second commercial spot
• Types of sales promotion in sport sponsorship
o Cross Promotion
• Joining together of two or more companies to capitalize on a sponsorship is becoming increasingly popular and effective
• Creates more “bang for their buck” under the premise that two sponsors working together can generate more interest and awareness among targeted sport consumers
• Used to gain exposure in nontraditional and unexpected retail settings
• It has become increasingly important to think outside the box as to how sponsors can be joined to increase the overall effectiveness of sponsorship investments
o In Venue Promotions- increase the amount of value added benefits that teams provide their paying customers which has resulted in a growth in in stadium promotions across the sport industry; success varies on based on time of season, win loss records, day of promotion, opponent, and perceived quality of give away item or themed promotion event day.
o In store Promotions- sponsorships at retail level, where their product is sold o within their own retail stores
• Premiums- merchandise offered free or at a reduced price as an inducement to buy a different item or items, most popular tactics is offering premiums t consumers who redeem a certain number of proof of purchase seals.
• Contests and sweepstakes- contests (may require purchase of product appealing to smaller universe) are competitions that award prizes based on contestants’ skills and ability, whereas sweepstakes (everyone has a chance to win; typically offer trips to special sporting events, meet a celebrity athlete, or some other aspirational prize that would be difficult if not impossible to otherwise obtain) are games of chance and luck
• Sampling- one of the most effect sales promotion tools to induce consumers to try a product, giving away free samples of a product to induce consumers to try it
• Point of sale, point of purchasing marketing- used to attract consumers’ attention to their product or service and their promotional campaign at the retail level
• Coupons- certificates that generally offer reductions in price for a product or service, most often appear in freestanding inserts
• Sport Sponsorship platforms
o Governing body Sponsorship: entails securing the “official sponsor” status with a national or international sport league or governing association, companies that play upon this platform tend to be larger, international companies due to the size of financial investment required
o Team Sponsorship: more appropriate platform for local or regional companies or companies with smaller marketing budgets; include the right to be the “official sponsor” of the team, the opportunity to conduct in venue promotions, and access to team tickets and hospitality. Most governing bodies allow for competitors of their sponsorship partners to sign sponsorship deals with the local teams.
o Athlete Sponsorship: serves as a platform for companies to develop a sponsorship based on support of an individual athlete, these arrangements typically involve some type of endorsement of the sponsor’s product or service. Athletes in individual sports such as tennis and golf, tend to attract more sponsor interest because they are able to generate a greater number of visible well-focused sponsor impressions on television. There is increased risk in sponsoring an individual athlete as opposed to sponsoring a league or team. Sport celebrities garner a great deal of attention and interest from the public and thus the media is quick to report on any new involving the athlete.
o Media Sponsorship: occurs most often in the form of broadcast sponsors, companies that purchase advertising or programming during sport related broadcasts. Often broadcast sponsors have no affiliation or entitlement to the team or league being broadcast, a situation that can result in ambush marketing whereby the broadcast sponsor seeks to convey to consumers some “official” relationship that does not in fat exist. Many sport organizations now either require their official sponsors to purchase advertising within their event broadcasts or alternatively, provide them a “right of first refusal” to purchase broadcast advertising time, with the intent of eliminating or curtailing such ambush marketing activity.
o Facility Sponsorship: one of the fastest growing sponsorship platforms, most notably in the form of naming rights agreements. Facility sponsors typically sponsor the sport properties that play in the facility in some other capacity.
o Event Sponsorship: enables companies to tie directly into the event atmosphere; examples include sponsorship of triathlons and marathons, college football bowl games, and professional gold tournaments, typically events that are locally based and annual.
o Sport Specific Sponsorship: enables a company to direct its sponsorship efforts to a specific sport that best appeals to the company and its targeted consumers and provides a strong fit for generating brand identity.
• Which event was known as the “watershed” in the evolution of sport sponsorship?
o 1984 Los Angeles Olympic Games
o Watershed year in the evolution of sport sponsorship
o Raised sponsorship bar for major professional sport leagues
o “Less-is-more” philosophy
• Peter Ueberroth and his significance to sport sponsorship
o President of the Los Angeles Olympic Organizing Committee
o Later commissioner of the MLB
o Innovative corporate sponsorship program
• “2-2-1”: companies must annually commit a minimum of $2 million in advertising o support and promote the MLB, a minimum of $2 million in promotional spending allocated equally to every MLB team, and $1 million in a cash and/or in kind rights fee
• What does activation mean?
the commitment of financial resources in support of a company’s sponsorship through promotion and advertising that thematically includes the sport property’s imagery
• In-Store Promotions p. 387-388
Read it
• Emergence of Cross Promotion 389-390
Read it
• NHL Licensed apparel partner (see “outfitter in Table 15-4) p. 391
Reebok
• NBA -Apparel licensed partner (see p. 392)
Adidas
• NFL apparel licensed partner (discussed in class and reviewed in PowerPoints)
Nike
• Case Study 15-1 Introducing ….The FedEx, I Mean, the Discover Orange Bowl! P. 401-403
Read it
• Sports Public Relations (PR) “umbrella” (See PPT/ the components of Sports PR
• Media Relations
• Crisis Management
• Publicity
• Employee Communications
• Online Communications
• Community Relations
• Cause-related PR
• Financial/ Investor Relations
• Integrated role with marketing, sales, and advertising objectives
• Publicity vs. public relations
• Public Relations
o Deliberate
o Planned
o Performance
o Public interest
o Two-way communication
o Management function
o Fixing the mistake
• Publicity
o Drawing attention towards someone or the attention drawn towards them due to a mistake
• How is PR different from advertising
• Tools
o Advertising works through mass media; public relations relies on a variety of tools.
• Audience
o Advertising addresses external audiences; public relations targets specialized audiences.
• Scope
o Advertising is a communications function; public relations is broader in scope.
• Function
o Advertising is a tool; public relations often supports advertising campaigns.
• How is PR different from marketing
• Focus
o Public relations is concerned with relationships; marketing is concerned with customers and selling products or services.
• Language
o Different words are used by each profession to express similar meanings.
• Method
o Public relations relies on two-way dialogue; marketing relies on persuasion.
• How is PR different from journalism
• Scope
o Public relations has many components; journalism has only two: journalistic writing and media relations.
• Objectives
o Journalists are objective observers; public relations personnel are advocates. However, discuss “objectivity” in the media landscape.
• Audiences
o Journalists focus on a mass audience; public relations professionals focus on defined publics.
• Channels
o Journalists use only one channel; public relations uses a variety of channels.
• What’s the value of PR
• The world doesn’t need more information, but sensitive communicators to interpret its relevancy for people.
• PR practitioners explain the goals and objectives of clients and employees to the public and provide them with guidance.
• What is a press release (also known as a media release or news release), and why is it used?
• A written announcement sent to editors and reporters to let people know what a organization is doing and to stimulate stories about the organization
• What are some negative terms for PR
• PR is multifaceted
o Spin/Framing
o Flack
• Stakeholders
They have a vested interest in a company – a stake in the company’s success
• What’s the difference between rating and share?
• Program’s rating represents the percentage of television households in the survey that are tuned in to a particular program.
• Program’s share represents the percentage of the television households watching television at the time that are tuned in to the program.
• History of Broadcasting
1800s: Electronic communications began with telegraph (1844) and telephone (1876), which relied on electricity and conductive wires.
By World War I, “wireless” (radio) was well established.
1921: First radio broadcasts of sporting events.
KDKA in Pittsburgh broadcast first baseball game—Phillies vs. Pirates.
WJZ Newark, New Jersey, broadcast the Dempsey-Carpentier fight and the Yankees vs. Giants World Series later that year.
Network radio allowed many local stations across the country to broadcast the same event.
Broadcasters understood that sports increased ratings

1930s: Colleges sold exclusive rights to football games to a sponsor, who then purchased radio time from broadcasters to air games.
Radio increased fan support and was a valuable publicity and promotional tool.
After World War II: With television, consumers could now both hear and see their heroes in action.
Huge ratings garnered by Monday Night Football and the Olympic Games led broadcasters to pursue the rights to additional sporting events.
1980s
NCAA limited the number of times any one university could appear on television and distributed television revenue among its members.
Led to Board of Regents v. NCAA (U.S. Supreme Court case), through which colleges won freedom to sign their own deals for college football.

• Ambush marketing
capitalizing on the goodwill associated with an event with out becoming an official sponsor. Ex: Nike at 1996 Olympics games
• What’s the definition of ratings?
Program’s rating represents the percentage of television households in the survey that are tuned in to a particular program.
• Syndication
the selling of programs by independent producers to stations not affiliated with networks or to network affiliates for telecast
• What’s bundling mean? P.454
Packaging various options together so the customer pays one price for all of the options, as in cable companies bundling TV, Internet, and phone services
• Mobile devices: Growth of mobile devices p. 454
Read it
• What’s the difference between reach and frequency?
• Reach: How vast is your reach (territory/audience base)
• Frequency: # of times you reach this designated audience
• Significance of the Sports Broadcasting Act of 1961
• Granted professional football, baseball, hockey, and basketball teams immunity from antitrust actions regarding the pooled sale of broadcast rights
• a result of antitrust litigation over Rozelle’s plan
• Federal agency that regulates the communication industry
• A.C. Nielsen Company
• Are sports audiences, on average, better or less educated? Wealthier or poorer? Male or female?
• On average wealthier, better educated, and older and mostly male but lots of females
• Largest television audience (which sporting event generates the largest audience) globally
• Soccer
• 1960s The growth in sport broadcasting was dominated by which two men?
• NFL commissioner Alvin “Pete” Rozelle
• ABC executive Roone Arledge
• Case Study 17-1 The Dominance of ESPN p. 457-458
Read it
• Who was the original target audience for Facebook?
• College Students
• How has Twitter influenced the culture of sport?
• Allowed sport organizations to reach beyond their current fan base through the extensive reach provided by the platform
• Which professional team was the first to use mobile ticketing?
• Oakland Athletics
• What are some advantages of mobile ticketing in sports?
• Allows fans to avoid lines in Will Call
• Sport teams can avoid the printing costs associated with traditional tickets
• Why do people engage in social media? (What are the main reasons?)
• Which college conference engages most in social media with their fans?
The Big Ten
• Which NBA team owner met with resistance from the league because of his/her personal blog?
• Mark Cuban
• Top U.S. Athlete on Twitter (measured by followers)
• Shaquille O’Neil
• LeBron James
• Top two athletes (globally, not just U.S.) on Twitter (measured by followers)
• Cristiano Ronaldo
• Ricardo Kaka
• How and in which ways has social media affected Sports PR?
• Shift in Power -inclusive versus exclusive
• Empowerment of athletes to have their own “voice”
• Opportunity to PR professionals to re-examine their “Best Practices” to help athletes help themselves in image management and crisis management prevention
• Media and technology training to the masses (inclusive of all employees, not just the “talking heads”)
• Immediacy -immediate opportunity to respond directly from the source (not via mainstream media) during a crisis. Positive and negative outcomes due to immediacy of the medium
• Connectedness of athlete-to-fan and (two-way engaged communication) fan-to-athlete
• Opportunity to reach targeted audience /public
• Increased exposure and access to non-traditional sports for publicity and fan access (not contingent on media ratings!)
• What does transparency mean in relation to PR in sports? Is it on the rise or decline in the sports industry?
• Possible social media trends in Sports PR (see PPT)
STAY TUNED— NFL Players Inc., partnership with Opendorse will be interesting to watch unfold this summer.

SHAQ example in contract/media negotiations -mobilizing Twitter fans -> increased viewership- increased ratings

• Which NBA team led the way with podcasts (social media in general) and why? Who was the person behind this social media campaign -Hint: she is also the person who Shaq attributes a lot of his success on Twitter and social media in general.
• Phoenix Suns
o Means to reach out to fans and provide insight to further bolster relationships
o Popular form of expression for dedicated followers to teams
• Amy Martin
• Which college was the first to enter a formal licensing agreement in 1973?
• UCLA credited with being first school to enter into a licensing agreement
• Licensee vs. Licensor
Licensee(s) -manufacturer of the products
Reebok, Nike, etc.

Licensors-(teams and leagues)
NFL, Cowboys, Mavericks, etc.

• Which athletic footwear company was the first to design a running shoe?
• Liverpool Rubber Company
• Nike began as an offshoot of which company?
• Blue Ribbon Sports
• First company to design a women’s athletic shoe (first lasted women’s tennis shoe)
• Adidas
• What’s Super Show? What’s a Reebok?
• Reebok- gazelle
• Super Show is the biggest footwear industry trade show event.
o A trade association where you can buy cheap apparel at a show
• Reebok vs. Nike’s NFL licensed partnership deal
Reebok’s 10-year deal in 2000 ($250 million for 32 teams) vs. Nike’s 2012 10-year deal for $1.1 billion
• Reebok (in 2000) signed 10-year $250 million deal with NFL (32 teams)
• Generated estimated range of $350-$565 million per year for Reebok
• Year 2000 $250 million (Reebok)
• Year 2012 $1.1 billion (Nike)
• The main objective of a Niketown in major cities throughout the U.S. (class discussion)
• What’s an informational interview? What’s the point of it, anyway?
o Expands your understanding of an industry, an organization, or a particular job or department by speaking to someone who is already there.
o Serves as a foundation for your career while building a strong network base.
o Have your questions prepared before you call in the event the person you are trying to reach is available immediately.
o Ask for suggestions on who else to contact in the industry of interest.
• Importance of résumés and cover letters
o Present yourself as a colleague, not “just” a student
o Use industry language (in-person versus computer screening for job applicants)
o Present experience as a lens toward career goal
o Convey learning (Strategic thinking!!)
o Quantify whenever appropriate (How much money did you raise? How many people attended your event?)
o Assemble a portfolio (Example: Sports PR writing portfolio -hard copy – also, online portfolios are very common these days)
• General rule of thumb for putting GPA on résumés
o Include all colleges attended; GPA if greater than 3.0 honors and awards; international/national exchange experience
• General rule of listing high school on your résumés
o Don’t include high school unless exceptional achievements
• Importance of thank you letters (email/snail mail?)
o Write a thank-you note.
o (email immediately and then a handwritten or typed thank you -explain differences here)
o Call the interviewer if you have something to add.
o Call the organization if it hasn’t gotten back to you in the designated time.
• What’s the purpose of a professional portfolio?
• To show off all of your accomplishments, seem professional, seem qualified for the job
• What’s the average amount of time a HR (Human Resources) person spends reviewing a résumé?
o Under 10 seconds
• 6 Seconds
• Leading sport management employment websites
• SBJ, WorkinSports, Teamwork online, Malayke.com, WISC, JobsinSport
As noted above on this study sheet, some general questions from any videos, articles/handouts distributed in class could be included in the final exam (only articles/handouts after Test # 2 -not cumulative throughout semester).
Yikes