Sports Management 14-21

majority of entry level jobs in sm
sales
what slowed growth in sports sales
one-size-fits-all packages, lack of foresight in marketing
what caused growth in sports sales
increased competition for entertainment dollar, pro trained sport marketers
what influences purchasing decisions
quality, quantity, time, cost
sales process historically vs today
handing out season ticket brochures, mailing simple proposals. today: technology!
sales strategies
database marketing (in person selling, using valuable info), benefit selling (adding new benefits to overcome objections), aftermarketing (retaining customers, view customer not just as one time but potential long-time), up-selling (escalator, get them to spend more), eduselling (monitor customer utilization and satisfaction, relationship building)
founder of sports promotion
Mark McCormack (IMG)
Customer Relationship Management (CRM)
most critical determinants of sales process (accurately identify customer needs) used to build database of customer info., allows sales dept. to accurately segment markets
product-oriented approach vs. consumer-oriented
advertising product vs. advertising lifestyle (Nike Revolution Ad, selling a life-style) Consumer-oriented is more popular
long-term sales approaches
relationship building, aftermarketing, eduselling, upselling
short-term sales approaches
advertising, benefit selling, database marketing
Fan Cost Index (FCI) (What is it for NFL)
average cost of family of 4 attending a game including food/drink/parking/souvenirs. NFL: 420.54
FCI of MLB
211.68 USD in 2015
how sports sales differs from other sales
presence of emotions/ unpredictability
types of sales inventory
ticket invent., advertising invent., naming rights, online invent. (ads), misc. rights (promotions, community, fantasy camps, road trips), sponsorships
tickets and hospitality Inventory
club sandwich (season ticket holders are meat, other lesser forms of ticketing are condiments) Season ticket: 50%, Advance ticket: 25%, Group Ticket: 20%, Day of Game 5%. types of seating
Ticket Outsourcing Case Study
Georgia Tech hired The Aspire Group. (1st instance) small universities don’t have resources. 15 sales staff. In 4 years since this there are over 80 Div 1 programs outsource and 30 Div 1 programs have their own dept. Before attendance declined 8%, after rose 12%. 67% renew each year. 30% of rev in NCAA football was ticket sales
Ancient sports sponsorship
business paid chariots to wear colors
spending then vs. now
300 mil in 1980, 11.28 Billion in 2009
number of US companies spending over 15 million on sport sponsorship
86
company with largest sport sponsorship paying
Pepsi (245-350 mil)
ways to evaluate sport sponsorship
ROI (challenge because no exact formula), internal feedback, consumer surveys, some companies pay other firms to evaluate (SRi partnered with NBA)
reasons for growth in sport sponsorship
increased media interest, companies can break through clutter, reach target consumer through consumer lifestyle (can reach specific segments)
types of sales promotion in sport sponsorship
in-venue (increase value-added benefits, giveaways, continuity promotions) (success depends on many factors), in-store (premiums, contests, sampling, POS, coupons), cross-promotion (more bang for buck), sponsorship packages (exclusivity, ‘official’, rights to intellectual property in advertising, access to tickets)
league/team benefits of sponsorships
rights fee, multiyear commitment, advertising commitment, team-oriented promotions
sport sponsorship platforms
governing body sponsorship (‘official’), team sponsorship (better for local/regional companies), athlete sponsorship (involves endorsement)
watershed moment in evolution of sport sponsorship
1984 Los Angeles Olympics
Peter Ueberroth
President of LA Olympics (brought consumer mindset to Olympics), became commissioner of MLB (raised bar for sport sponsorship, less is more (limited number of sponsors) philosophy)
what is activiation
requiring sponsor to actively leverage sponsorship to benefit itself and sport property (keeps people from buying it to cut out competition and then doing nothing)
In-Venue Promotions (Giveaways) in MLB
Bobbleheads, T-shirts, Headwear
Top in-game promotions, (In-store promotions)
fireworks, festival, ticket discount (requiring sponsor to leverage at retail level)
Emergence of Cross Promotion
need to break through clutter. Kraft “Taste of Victory”, Got Milk and Kellog’s. Co-dependent partners, customer partners (subway is big customer of pepsi. they partnered)
NHL Licensed apparel partner
Reebok
NBA licensed apparel partner
Adidas
NFL licensed apparel partner
Nike
Fed-Ex/ Discovery Orange Bowl Case Study
Fed Ex sponsored for 21 years. was Fed Ex’s biggest hospitality platform. was longest running title sponsorship of any BCS game. DYNAMICS CHANGED (broadcaster from FOX to ESPN was more expensive, Orange Bowl lost prestige due to bad matchups), Fed Ex still had league deals with NFL/NBA. Discovery Card replaced Fed Ex (first timer), naming rights, Discover Play of the Day, rights to Lee Corso in POS prom. 500 tickets to games. Used this to compete with VISA, Mastercard (lost of sports sponsorship), used affinity cards, giveaways
Sports PR umbrella
counseling, research, MR, publicity, employee relations, community relations, public affairs, govt. affairs, issues management, financial relations, industry relations, development/fundraising, mulicultural relations, special events, MARCOM (marketing/communications)
publicity vs. PR
publicity is part of PR
how is PR different from advertising
advertising is a tool (uses mass media to reach external audiences) PR has many tools (larger scope, external and internal)
how is PR different from marketing
PR focused on relations, marketing focused on selling, PR focused on dialogues, marketing on persuasion
how is PR different from journalism
PR is wider in scope. Journalism meant to be objective. Journalism focused on mass audience, only has one channel. PR has specific audiences, many channels.
value of PR
needs communicators to interpret relevency for people. PR pros explain goals/objectives and guide people “provide voice in marketplace of ideas/facts/viewpoints and aid informed public debate”
what is press release, why is it used
info given to media that they are supposed to broadcast to audience, hopefully generate good publicity. written in inverted pyramid style
negative terms for PR
smoozer, liar, “spin doctor”
stake holders
group of people that have direct or indirect interest in organization. PR delivers key messages to them
Press conferences (tips for preparing)
notify media, don’t play favorites, hold in approp. location, follow up early/often, keep speakers away from media before conference, remember TV. technological accommodations (multibox, proper lighting)
Crisis Management: Top 10 gen. principles for communication during crisis
speak early/often, don’t speculate, go off record at own peril, stay with facts, don’t be defensive, make point and repeat it, dont war with media, establish self as most authoritative source, stay calm and be cooperative, never lie
“off the record”
dangerous (if info is newsworthy it may be broadcast anyway
career opportunities
growth over last 25 years mostly in area of sport comm. 141 teams with comm. positions. staffs expanded from 1-2 to 6-10. PR, media/community relations are most diverse (esp. women)
Current issues
technology (internet-based comm. increasing. “push” tech like twitter leads to less reliance on media), web conferencing.), outside agencies (growing trend allows sport org. to focus on day-to-day rather than proactive PR. can be retainer basis paid monthly or project-to-project), govt. relations (lobbying, used by everyone, increase in stadium construction leads to increase lobbying to secure funds)
rating vs. share
rating – % of television households tuned into program (includes people not watching tv), share – % of television households watching television tuned into program (excludes people not watching tv)
first radio broadcast of sport events
Dempsey-Carpentier fight, first baseball game (Phillies vs. Pirates). radio increased support (colleges started selling rights) Roon Arledge and Alvin Pete Rozelle in 1960’s. Board of Regents vs. NCAA (colleges won freedom to sign their own deals for college football)
syndication
independent producers sell programs ot stations not affiliated with networks or network affiliates for telecast at times when they are not obligated to show network programs
Revenue Shring
NFl was first leagues (NY Giants largest market, Green Bay Packers smallest, rev. sharing helped GBP be best in nation)
regionalization/blackout
networks provide programming on national/regional/local basis so that smaller teams have a chance. if all tickets are not sold to home game, black out (no broadcast) will encourage better ticket sales next time
out of market coverage
fans can pay fee to see broadcasting not shown in their area
bundling
bundling channels into tiers, forcing customers to pay for all channels in tier even if they only want one. cablevision sued viacom over bundling
mobile devices
viewing grew 300% in 2012. 60% annual growth rate. TV Everywhere type services. Future is uncertain because it a hassle to get, advertisers don’t want to pay, slow progress in negot. between rights holders and networks)
Market Bubble
Rights fees increased in 2000 (NFL’s deals increased 60%, Pac-12/NHL tripled rights frees). bubble created when price increases in short amount of time followed by sudden decrease when market corrects itself
fragmentation
more choices available to people, the fewer people are likely to choose any one thing (over-specialized, many alternatives to watching TV) Sports television is considered one of the winners (there is no alternative) of 8 programs with 20% rating or higher, 6 were sports programs
reach vs. frequency
reach- how vast is reach (territory, audience) frequency- how often you reach them
Sports Broadcasting Act of 1961
exempted leagues from antitrust laws when pooling television rights (greater bargaining power)
federal agency that regulates the comm. industry
US Federal Communications Commission
Sports audiences gen. demographics
Middle class, male, more educated
largest television audience
World Cup (maybe India-Pakistan cricket)
1960s growth dominated by which two men?
Roone Arledge (Monday Night Football), “Pete” Rozelle (NFL commisionar, pools TV rights to highest bidder, Sport Broadcasting Act result from litigation over Rozelle’s pooling plan)
ESPN case study
ESPN making 550 million a month from 100 million households. 6.6 Bil a year (3 bil annually in advertising rev.), criticized for role in rise of cost of cable (monthly sub fee is 5 times higher than others, could cause legislation against bundling), ESPN ratings declined 32% (12% primetime, 9% overall), one third of generated rev. goes to NFL. Ratings for ESPN and others declined 17% for 18-49 year olds. 50% decline on broadcast because of internet. Goldman Sachs downgraded Disney stock.
Why do people engage in social media
Connect, communicate, collaberate
Top US Athlete on Twitter
LeBron James (22 mil)
Top two athletes globally
CR7 (36.3 mil), Kaka (23 mil)
how has social media affected Sports PR
shift in power/access, new platforms without pressure of dominant media, citizen journalism, managing (or not) crisis communication, athletes are managing own identities. affects media training, increased need for synergy, crisis management, how we communicate, fan-to-athlete connection, ability to reach target audience, increase exposure for niche sports
What does transparency mean for sports PR? increase or decrease?
communication, increasing visibility, participation. increase.
Possible social media trends in Sports PR
Twitter and Commercialism (Shaq, NFL Players Inc. partnered with Opendorse.)
Which college was first to enter formal licensing agreement?
UCLA
History of Sporting Goods
George Tryon carved niche. Rawlings began in 188. AJ Spalding created sporting goods for middle class. Sporting Goods Manufacturers Association (SGMA)
Properties division
for-profit branch of pro sport leagues that administers licensing programs. Approves licensees, polices infringement and distributes licensing revenues among franchises. NFL was first pro league to develop this. (First license was to Sport Specialties with Chicago Bears)
Licensee vs. Licensor
Licensee- pays (product company), Licensor- gets paid (team/league)
First running shoe
Reebok
Nike was offshoot of which company
PBR
First company to design womens running shoe
Nike
SuperShow/Reebok
biggest footwear industry trade event, a gazelle
main objective of Niketown
not to increase rev. but to present full range of stuff and provide education so people are more likely to purchase stuff later
Less is More case study
Since 1980’s NB grew 200,000 annually to 80 mil, middle aged/older niche (performance over fashion) CEO Jim Davis. Younger kids are now discover high quality. Recent trend of barefoot/minimalist shoes caused increase in running shoe sales. Competing with Vibrams FiveFingers (10 mm of padding is best, minimal shoes use less energy)
information intervie
getting info about company/industry. increases knowledge of industry, expands network
illegal questions
marital status/ future plans/ race, ethnicity, religion, sexual orientation, national origin/citizenship, age, disability, arrest record.
What makes successful candidate
Prep, personal (soft) skills, goal orientation, communication skills, organizational skills, experience, professional appearance, cross-cultural awareness, computer skills
interviewing tips
do research, know strengths/weaknesses, don’t use cliches
importance of resumes and cover leters
resume shows experience, cover letter argues your value to that particular organization
GPA rule
put only if 3.0 or above
higschool info rule
don’t
importance of thank you letters
send two (one electronic, one physical), send to all people involved, shows your are kind and grateful
purpose of professional portfolio
showcase work in creative field
avg. amount of time spent reading your resume
6 seconds
leading sport managment employment websites
Teamworkonline, workinsports, malkye, WISC, jobsinsports
Sport management degree is only ticket to success
No. helps, but no.
It’s not who you know, it’s what you know.
No. Its who knows you
Most opportunities are in pro-sports or NCAA division athletic depts.
No. Very limited. Economic setbacks. Only 30 MLB manager jobs. only 10-12 employees. People tend to get recycled.
Sport Management jobs are glamorous
No. High hours, low starting pay. Demand for jobs outweighs supply so pay is low
Job Search Process
1. Know yourself. 2. Career exploration. 3. Gain experience. 4. Job Search (prepare resume, 3-5 letters reference, cover letter, check listings, talk to people, follow-up after sending application)