Sports Marketing Chapter 2

type of product and level of sports integration
Chapter 2 attempts to clarify that ambiguity via the depiction of a classification system that is based upon two key dimensions
attention to marketing tools is long overdue in the marketing of sports products
IMPORTANT STATEMENT
sports products and non sports products
products germane to sports marketing
sports products
participation sports, spectator sports, sporting goods, apparel, athletic shoes, and sports related products
non sports products
products not directly related to a sport; Automobiles, telecommunications, medical services, fast food, consumer electronics, and beverages such as milk, water and colas
spectator sports, participation sports, sporting goods, apparel, athletic shoes, and sports related products
THREE categories of sports products
spectator sports
category 1; football game; live audience (selling of tickets for live audience participation); Media based audience (free to air TV audiences, Premium cable and satellite networks, pay-per-view for special events, enhanced access to a sport’s broadcasts (such as Direct TV’s NFL Sunday Ticket), and devoted networks such as the Golf Channel; Other media include traditional radio, satellite radio, internet based audio/video streaming, and an emerging emphasis on mobile technology including cellular phones and podcasts).
Participation Sports
organized soccer leagues, golf, tennis; Marketing’s role is to increase the number of participants and the frequency of participation in a specific activity (attracting more participants and getting current participants to play more)
primary benefit of participation sports
Participants are more likely to become fans of the sport resulting becoming spectators in terms of live audience and media-based audience participation.
secondary benefit of participation sports
Increased level of participation creates demand for more sports equipment, apparel, and athletic shoes.
Sporting goods, Apparel, Athletic Shoes, Sports related products
what does SASS stand for?
sporting goods
includes the tangible products specific to the participation sport or activity
sporting goods
Sold to both the casual participant and those who take part in the organized activities; 54 million Americans participate in bowling and create a demand for bowling equipment; Golfers throughout the world have fueled a tremendous increase in the sale of clubs, balls, bags, and gloves on a global basis.
participation based and fashion based
the two categories that Apparel falls into
participation based apparel
new uniforms for a new season, new styles to look good on the golf course
fashion based apparel
fans wear clothing that features the logos of teams they support; others buy the clothing simply because it is in vogue among their contemporaries
athletic shoes
once primarily devoted to the participant market; changed significantly since Nike’s Air Jordan’s; today’s ___ ____ are a part of almost everyone’s wardrobe;
athletic shoes
For participants, there are designs specific for such activities as racket sports, basketball, walking; No longer are these combined into the generic category of tennis shoes.
sports related products
consists of a broad array of sports related products; include souvenirs purchased at events venues, sports magazines, lessons to improve one’s skill at a sport; Venue-specific products-not tied to a sport per se, but purchased by spectators in attendance; beer, other beverages, food, game-day programs, and souvenirs
venue specific products
has to do with sports related products; not tied to a sport per se but purchased by spectators in attendance; beer, other beverages; good, game day programs, and souvenirs.
Nonsports Products
goods and services not directly related to a sport; Anything not Included as a Sports Product such as cars, clothes, soft drinks, & razors; Are Often Sold by Creating a Sports Overlay (or Platform)
spectator products, participation products, sporting goods, apparel, shoes, sports related products, non sports product
the four categories of products sold by sports marketers
traditional strategies and sponsorship based strategies
the two levels of integration
traditional strategies
Represent modest but most important integration of the organization’s marketing program
sponsorship based strategies
Involve a much higher level of integration by virtue of some official relationship with a sports entity such as a team or league
traditional strategies
Employ the Basic Components of Marketing Strategy; target market selection; corresponding marketing mix (price, place, product, promotion)
sponsorship based strategies
Employ an Official Sponsorship-based Relationship with a Sports Entity
traditional sponsorship
generally involves the acknowledgment of the sponsor by the sports property and the ability to use trademarks and logos to reinforce the relationship in the minds of the target market.
venue naming rights, licensing, endorsements
3 special forms of sponsorship
Venue naming rights
building sponsorship
licensing
right to use intellectual properties
endorsements
personal or personality sponsorships
sponsor
pays for the right to exploit the relationship and use of trademarks and logos in marketing efforts.
sponsee
may display sponsor names and logos in their own marketing, on scoreboards and the like
endorsements
have been referred to as “personal or personality relationships.”
reebok
has an arrangement that allows for its use of the logos of MLB”s 30 teams in the marketing of a special line of footwear.
sears
uses a traditional sponsorship with NASCAR to drive the sale of its Craftsman brand of tools – but also sells a broad array of NASCAR-licensed merchandise in many of its retail stores.
EA Sports
signed a seven-year contract with NASCAR providing the marketer with exclusive rights to use the organization’s logos in the video game market.
broad focus, products, level of integration
Three principles are relevant for the assessment and understanding of today’s sports marketing industry: what are they?
broad focus
marketing of sports versus marketing through sports
products
sports vs non sports
level of integration
traditional vs sponsorship based strategies
mainstream, product focused, domain focused, sports dominant
what are the four domains of sports marketing?
mainstream with target marketing
Defined as the use of traditional marketing strategies that incorporate a sports theme into the marketing program for nonsports products
mainstream with target marketing
1st component considered is often the organization’s target markets, i.e., place ad in publication or TV that fits targets.
mainstream with target marketing
2nd aspect of marketing strategy is the organization’s marketing mix
mainstream with product
A popular product strategy today involves sports bars which use televised sports as a way to sell food and beverages.
mainstream with product
Other examples involve companies that have created clothing that features a generic sports motif like belts and ties for golfers.
mainstream with product
Others have been using packaging like M&M’s marketed candy dispenser featuring the term racing team and a checkered flag gaining synergy with NASCAR without violating any trade marks.
mainstream with promotion
It’s easy to create a sports overlay using promotional efforts
Detroit Newspapers entertained customers in a hospitality tent at the Ryder Cup matches.McDonald’s TV ad that featured kids being treated to a trip to McDonalds’s after their game.
Sony commercial explains why viewers get more enjoyment from watching televised sports on a Sony high-definition TB.
Note: All accomplished this with no trademarks associated with the events
mainstream with price
Strategies involving the pricing variable and a sports overlay are a bit more difficult to implement.
mainstream with price
One common strategy is for casual restaurants and bars to offer discounts to patrons who are wearing their uniforms from a participation sport such as softball.
mainstream with price
Hotels, restaurants, and bars offer reduced prices for patrons holding a ticket to a particular sports event.
mainstream with place
The Distribution or Place strategy element of the marketing mix is well utilized by the Food Service Industry
mainstream with place
Big Boy Restaurant located inside Detroit’s Comerica Park
Marketers of alcoholic beverages are well known for having their beverages available as sports venues.FedEx negotiated for the right to have temporary shipping point located on the Oakland Hills Golf Course during a recent Ryder Cup.
product focused
Efforts to sell sports products without an official relationship with a sports entityMay or may not include a sports theme
Leagues and teams do things to improve the game
Marketers offer products in lieu of sponsorship
As part of the marketing mix marketers may do many different creative things instead of investing in expensive sponsorships.
domain focused
Marketers of nonsports products officially align themselves with sports properties via one or more of the four forms of sponsorship; Using the sponsorship association with sports to market nonsports products
domain focused
In an effort to sell more fast food, McDonald’s advertising and packaging feature its official partnership with the Olympic Games. Examples of initiatives utilizing traditional sponsorships, venue naming rights, endorsement strategy and licensing abound
sports dominant strategic domains
Characterized by official sponsors of a sports property who are selling other sports products;Common strategy features the marketer of sporting goods or sports apparel in a traditional sponsorship of a sports team or a sporting event
sports dominant strategic domains
Traditional sponsorships and the three special forms of sponsorship (venue naming rights, endorsements, and licensing) are also utilized in these.
mainstream strategies
Using a Traditional Strategy to Create a Sports Overlay to Sell Nonsports Products
target market
ad for Honda cars in Golf Digest
product
clothing featuring golf graphics
promotion
ad featuring golfers drinking pepsi
distribution
Hard Rock Cafe at MLB stadium
Price
Discounts to Bar Patrons Wearing Participation Sport Uniform
Product Focused Strategies
Using Traditional Marketing Strategy to Sell Sports Products
target market
NBA targeting Chinese fans
product
new titanium gold clubs
promotion
newspaper ad regarding tickets
distribution
broadcast available on WWW
price
bundling tickets and refreshments at a bargain price
domain focused strategies
Using Sponsorship of a Sports Entity to Sell Nonsports Products
traditional
coca cola and the olympics
venue naming rights
citi bank and MLB stadium
endorsement
Gatorade and Tiger Woods
licensing
Mattel and NASCAR
sports dominant strategies
Using Sports-Based Sponsorship to Sell Sports Products (Least Common Domain)
traditional
Adidas and FIFA (world cup)
venue naming rights
reebok stadium
endorsement
Burton Boards and Shaun White
licensing
Nike and the New York Yankees
Sports Marketing
the implementation of proactive strategic initiatives designed to influence potential buyers’ preferences for an array of sports products or to otherwise create a sports overlay in such a way so as to have a positive impact on the sale of nonsports products.