Sports Marketing Ch. 1

Marketing through sports and marketing of sports
what are the primary focus of sports marketing efforts?
traditional and sports based sponsorship
two types of strategies within the sports marketing domain
traditional sponsorships
involves the creation of an official relationship between a marketer and some noteworthy sports property
traditional sponsorships
Coca Cola is an official sponsor of the upcoming 2012 Olympic Games in London.
Venue Naming Rights
based upon the marketer’s ability to have its name attached to a physical facility
Licensing
a contractual agreement that allows a marketer to use valuable trademarks and brand names of a sports property.
Licensing
Anvil (t shirts) and NFL (super bowl logo shirts)
Endorsements
popular athletes are often used to gain attention and influence selective demand for a variety of products
traditional, venue naming rights, licensing, endorsements
4 types of sponsorship strategies
endorsements
tag heur watches and tiger woods
access to spectator sports events, access to participation sports venues, sporting goods and apparel
examples of “sports products” (3)
access to spectator sports events
tickets or media based access to the British Open
access to participation sports venues
membership to Gold’s Gym
sporting goods and apparel
Nike gold clubs and golf shirts
advertising
can incorporate a sport’s theme
packaging
can feature sports activities
products
can be sold at sports venues
advertising, packaging, products
Products are marketed through sports using a variety of traditional approaches: name the 3
local, regional, national, international, global
order of the event pyramid
Local Events
draws fans from small geographic areas; promoted using local media
Local Events
Minor League Team, High School Sports, Local Amateur Competitions
Regional Events
little national or international interest; marketers attempt to move event up
Regional Events
most collegiate sports teams, most marathon races
National Events
large portion of one or two countries; often large media presence
National Events
Stanley Cup playoffs (ice hockey), BCS (college football) championship game, NCAA Final Four (college basketball), The Ashes (England and Australia cricket)
International Events
appeal transcends national borders; large media presence; venue often shifts among countries
International Events
Ryder Cup Golf Tournament, World Cup of Rugby, Wimbledon Tennis Championships
Global Events
broadcast to global audience; significant rights fees paid by broadcasters; national pride often a consideration; few events are in this top category
Global Events
Olympic Games, World Cup of Soccer
market the idea of participating
play more golf or engage in more 10 pin bowling!
market the idea of participating and market venues
the two things associated with participation sports
market venues
build and market a new golf course; building bowling facilities in casinos
free weights
most popular participation sport in the US
softball
least popular participation sport in the US
sporting goods
equipment; golf clubs, football, exercise equipment
apparel or clothing
softball uniform or logo shirt
participation based
softball uniform
fashion based
logo shirt
why we teach sports marketing
huge economic impact
why we teach sports marketing
little focus on sports industry in curricula
why we teach sports marketing
more emphasis on the bottom line by sports entities (ex: university football)
Evolution of Sports Marketing
marketing OF sports taught first, marketing THROUGH sports added, leisure emphasis early, leisure and business focus today
direct spending by consumers and the multiplier effect
what are the components of economic impact?
direct spending by consumers
Tickets, Hotels, Restaurants, Gas, Rental Cars, Wages Paid to Workers, Participation Fees (e.g. Ski Lift Tickets; Golf Greens Fees)
multiplier effect
Recognizes That Money Turns Over in the Economy: (Typically between 1.3 and 3 Times)
multiplier
represents the number of times each dollar will be spent before it “leaks out” of the economy under scrutiny.
one day events
event may occur over one day, but impact may cover extended period of time
one day events
super bowl, indianapolis 500, championship boxing match
multiday events
events encompass 2 or more days; may be at single or multiple venues
multiday events
olympics, masters gold tournament, america’s cup yachting regatta, world cup of soccer
participation sports/recreation
local resident contributions (restaurant, activity based shopping), vacation expenditures, participation fees (tournament entry, rental equipment)
Professional Team or Arena
local wages for employees, tax revenues, expenditures by visitors
one day events, multiday events, participation sports/recreation, professional team or arena
the 4 areas in which economic impact is attempted to be measured
aggregate economic impact
gross domestic sports product; total spent on sports related goods and services in a national economy in 1 year; difficult to measure (estimate for USA in 2007 was approx $277 billion)
sports entertainment, sports products, sports support organizations
To fully assess the economic impact, there is a need to consider three primary sectors. According to one source, these three sectors are:
sports entertainment
Spectator sports tickets – Pro and amateur, Participation sports fees, Spectator sports concessions, Spectator sports souvenirs, Parimutuel betting receipts, Sports museum/display receipts, Related tourism
sports products
Sporting goods, Sports-related goods (Apparel, Footwear, Videos, Magazines), Licensed products, Sports investment (Construction; Stadia, Golf courses, Ski resorts, Swimming pools), Net sports exports
sports support organizations
Consulting firms, Advertising agencies, Sports law services, Agents, League offices, Sports organizations (NCAA, USOC)
Internships
variety of positions, often unpaid, establish network of associates (references)
Sales
customer service representatives (CSRs), season tickets, group tickets, sponsorship, suites, general retail
advertising and promotion
working as in house staff or with an agency, copywriting, graphics, design, purchasing media space and time, creating advertising or managing promotional campaigns, providing similar services to clients who are seeking to use sports as a platform for marketing their own products
promotion
advertising is part of which “4 P’s” of marketing?
Hospitality
Many business use sports as a tool for entertaining clients, employees, and business associates; May involve facilities such as a luxury suite at a major venue or a private tent at a local event; A key aspect is the management of food and beverage services.
Public Relations
goal is to gain favorable publicity that enhances the image of the sports entity; written and oral communication skills are extremely important
Sponsorship Evaluation
post event measurement and estimation of return on sponsorship investment
agents
Most often involve the representation of an athlete, but is also can involve the licensing of registered trademarks; Job is based on contract law as well as intellectual property rights; Some act as independents other are employed by major representation firms such as the International Management Group (IMG)
fundamental skills required to succeed
Confidence, interpersonal skills, educational pedigree, familiarity with the industry, and track record.