Copyright 2014 by Sports Career Consulting LLC Marketing

Marketing Applications BMA IBT 5 The Marketing Concept A philosophy that a company’s success is ultimately dependent upon efficient identification of consumer needs and wants and the ability to satisfy them Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 The Marketing Concept Why Is Marketing Important? Ø Financial success is a direct result of an organization’s ability to effectively market its products and services Ø A business achieves profitability when they offer the goods and services that customers need and want at the right price Ø Marketers strive to identify and understand all factors that influence consumer buying decisions Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Needs vs. Wants A need is something you have to have and that you cannot do without For example, we need food. Without eating, we cannot survive! Copyright A want is simply something you would like to have You might want a Nintendo Wii or tickets to an upcoming game, but you can survive without them © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 The Exchange Process Ø Must be at least two parties involved in process Ø Some means of communication must be present between all parties Ø Each party must be free to accept or decline offer Copyright Exchange Process: Marketing transaction in which the buyer provides something of value to the seller in return for goods and services that meet that buyer’s needs or wants © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Benefits of Marketing The marketing process serves many purposes and provides numerous benefits for the consumer Ø The ability to add perceived value to goods and services Ø Making the buying process easy and convenient for consumers Ø Creating and maintaining reasonable prices Ø Offering a variety of goods and services Ø Increasing production Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 The Marketing Mix: Consists of variables controlled by marketing professionals in an effort to satisfy the target market Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 The Marketing Mix Product Involves the goods, services, or ideas used to satisfy consumer needs Price Determined by what customers are willing to pay and production costs Place Involves the process of making the product available to the customer Promotion Involve how the goods or services are communicated to the consumer Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Discussion Topic How might the marketing mix apply to Wilson Sporting Good’s efforts to maximize sales of tennis racquets?

Marketing Applications BMA IBT 5 Target Markets A target market refers to people with

Marketing Applications BMA IBT 5 Target Markets Must Be: Sizeable: The overall size of the market Reachable: Ability for marketers to reach consumers Measurable: Ability to measure size, accessibility and overall purchasing power of the target market Behavioral: Marketers seek to find similar behaviors within each respective target market Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 The Marketing Concept All organizations must have an understanding of their target market to create an effective marketing strategy that caters to their audience Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 The Marketing Concept Part of Coca-Cola’s marketing strategy is to target moms. As such, the soft drink giant rolled out a comprehensive marketing campaign tied to the 2012 Olympic Games based on the knowledge that the Olympics traditionally attract more female viewers than almost any other sporting event. Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Market Segmentation the process of identifying groups of consumers

Marketing Applications BMA IBT 5 Market Segmentation Helps Companies To: Ø Understand consumer groups Ø Determine target markets Ø Develop positioning strategies Ø Customize products and marketing strategies Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Five Bases for Market Segmentation 1) Demographic 2) Product

Marketing Applications BMA IBT 5 Demographic Psychographic Geographic CONSUMER Benefits Product Copyright © 2014

Marketing Applications BMA IBT 5 Five Bases for Market Segmentation Ø Age Demographic Segmentation: Ø Income Ø Occupation Ø Gender Focuses on information that can be measured Ø Education Copyright © 2014 by Sports Career Consulting, LLC

i. According to knowledgebase. com, the biggest demographic for the artist Shakira is 20 -year old women Marketing Applications BMA IBT 5 Demographic Segmentation According to knowledgebase. com, the biggest demographic for the artist Shakira is 20 -year old women Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Demographic Segmentation Since 2000, the number of NASCAR fans earning $100, 000 or more has doubled from 7% to 16% of its fan base, and those with incomes of $50, 000 or more has risen from 35% to 48% Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Demographic Segmentation According to league data, the average household income for NHL fans is $104, 000, highest of the four major sports with Major League Baseball ($96, 200), the NBA ($96, 000), and the NFL ($94, 500) Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Demographic Segmentation According to a report from Leichtman Research Group, 69% of households in the U. S. have at least one high definition television set, up from 17% in 2006 Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Demographic Segmentation A survey by CNBC has found that half of all American households own at least one Apple device, and the average Apple-buying household has a total of three Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Demographic Segmentation Target retail stores understand that 60% of their shoppers are women, likely playing a significant role in their decision to sponsor the 2014 ASAP Women’s Surfing Event In Maui Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Five Bases for Market Segmentation Product Usage Segmentation: Ø Sports season ticket holders Ø Theatre group ticket coordinators Copyright Reflects what products consumers use, how often they use them, and why © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Five Bases for Market Segmentation Ø Sports Fans Psychographic Segmentation: Ø Music Lovers Ø Individuals who enjoy attending live events Copyright Grouping consumers based on personality traits and lifestyle © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Five Bases for Market Segmentation Season ticket holders enjoy additional “perks” such as exclusive invitations to pre-game chalk talks with the team’s coaches Copyright Benefits Segmentation: Refers to a perceived value consumers receive from the product or service © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Five Bases for Market Segmentation Ø North, South, East and West Regions of the United States Ø Urban and Rural areas of a particular state Geographic Segmentation: Dividing of markets into physical locations Important to Sports Marketers Because: Sports consumers are characteristically loyal to particular regions when making buying decisions Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Selecting multiple segments Because many segments may be valid in helping marketers make decisions, marketers often choose to use several segments Ultimately, a decision is made based on what best fits the organization’s target market Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Positioning Ø Fixing company products in the Minds of Consumers Ø All about “perception” Ø Relative to competitor products Copyright Positioning: The fixing your sports or entertainment entity in the minds of consumers in the target market © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Positioning Sports drinks (Gatorade as a performance beverage) Movie studios (Pixar as a leader in animated films) Entertainers (Will Ferrell as a comedic actor) Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Positioning is About Perception Puma’s “Calling All Troublemakers” spot launched in 2014 (part of the brand’s new “Forever Faster” campaign) encourages fans to be more daring and push boundaries to achieve “danger, risk and potential fugitive status” in an effort to differentiate itself from Nike, Adidas and Under Armour as it continues its efforts to gain credibility and position itself as a legitimate performance apparel brand Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Positioning Wheaties cereal has positioned itself as a brand affiliated with athletic performance and its slogan, “the breakfast of champions”, has remained since the brand’s introduction in 1924 Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Positioning With sales declining, General Mills (parent company of the Wheaties brand) introduced a new spin off product aimed to take advantage of consumer perceptions of the Wheaties brand. General Mills developed three formulations of the cereal (dubbed Wheaties Fuel) with the help of a sports nutritionist and five world class athletes: the NFL's Peyton Manning, the NBA's Kevin Garnett, gold medal-winning decathlete Bryan Clay, the MLB's Albert Pujols, and triathlete Hunter Kemper. Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Positioning Strategy Identify all possible competitive advantages 1) Products, services, channels, people or image can be sources of differentiation 2) Organizations often position their products relative to competitor Weaknesses (5 -hour energy) Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Positioning Strategy Choose the right competitive advantage 1) How many differences to promote? 2) Unique selling proposition (5 -hour energy) Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Positioning 5 -hour Energy Drink focuses on its small packaging size and claims to provide a long lasting energy boost without the “usual jitters associated with energy drinks. ” These purported features are intended to provide the competitive advantage necessary for distinguishing this energy drink from the many competitors on the market. Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Positioning Strategy Positioning errors to avoid 1) Which differences

Marketing Applications BMA IBT 5 Positioning Despite positioning their product in a highly successful manner, the makers of 5 -hour energy were hit with a lawsuit in 2014 citing deceptive advertising charges Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Advertising Ø TV Commercials and infomercials Ø Print Advertisements Ø Direct Mail Ø Internet (banner ads, “pop up” ads, social media ads) Advertising: Any paid, nonpersonal form of communication by an identified company promoting goods and services. Ø Social Media Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Why Advertise? Ø Effective communication Ø Create awareness Ø Create / Change image Ø Associate a brand with feelings and emotion Ø Precipitate behavior Ø Establish / Maintain goodwill Ø Assist in the increase in sales Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Types of Advertising Print Media: Any written form of communication used to inform, persuade, or remind consumers about products or services offered Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Types of Advertising Outdoor Advertising: Ø Includes any outdoor signs and billboards Ø Offers a high level of visibility Ø Provides 24 -hour advertising Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Outdoor Advertising The elevator doors in hotels and business

Marketing Applications BMA IBT 5 Outdoor Advertising Copyright © 2014 by Sports Career Consulting,

Marketing Applications BMA IBT 5 Types of Advertising Mass Transit Advertising: Uses public transportation, such as buses, bus stands, taxicabs, and subways to post advertising messages Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Mass Transit Advertising Hops are a new single A minor league baseball team from Hillsboro, Oregon a suburb of Portland. Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Types of Advertising Broadcast Media: Any visual and/or auditory form of communication used to inform, persuade, or remind consumers about goods or services offered Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Types of Advertising Radio Advertising: Advertisers match their target market to a radio station that segments a particular market * Has the ability to reach a wide audience Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Types of Advertising Television Advertising: Includes commercials and infomercials Is traditionally the most expensive form of broadcast media Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Television Advertising: The fitness craze known as P 90 X relied on a carefully crafted TV infomercial strategy to build a $400 million-a-year empire. The franchise has been so successful that they released a third installment, P 90 X 3, in 2014 Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Television Advertising: Honda assistant VP-advertising Tom Peyton, whose company spends more than $600 million on U. S. television advertising annually and sponsors the Honda Classic golf tournament, the Rose Bowl's Rose Parade, and the NHL's Anaheim Ducks, recently told Ad Age: "There has to be a point where the price of sports properties on TV, the price of tickets for consumers to games, is truly affecting the amount of sports we can engage in — and the type of sports we engage in. ” Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Types of Advertising Online/Digital Media: Advertising through various digital media platforms * Banner ads, pop-ups etc. * Digital broadcasts * Social media channels (Facebook, Twitter, etc. ) * Mobile Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Types of Advertising The $60 million in digital advertising sales earned by NBC through its online coverage of the London Games was three times what the network earned for the 2008 Games in Beijing (sales for the 2014 Winter Games in Sochi were slightly down from the 2012 Sumer Games in London to $50 million) Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Types of Advertising Online/Digital Media Copyright © 2014 by

Marketing Applications BMA IBT 5 Types of Advertising “Specialty” Media (or Promotional Products): Includes “everyday” items displaying a company name or logo Examples include lanyards, calendars, pens, magnets, and coffee mugs Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Types of Advertising Additional Forms of “Creative” Media: Marketers often use many other creative ways of communicating advertising messages to consumers Examples include: blimps (and other forms of aerial advertising, supermarket carts/bags, hot air balloons, and in-theater advertisements Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Types of Advertising In addition to the light rail advertisements, Adidas and the Portland Timbers prominently featured a number of advertisements through the Portland airport to celebrate the 2014 MLS All-Star game Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 In 2014, Boeing rolled out a Seattle Seahawks branded airplane, paying homage to the team’s famed “ 12 th Man” shout to fans. In the plane’s first flight, the aircraft carved the number “ 12″ in the sky over downtown Seattle Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 LSU Athletics took a unique advertising as part of a basketball campaign when they teamed with adver. Car (a company that pays individuals to affix advertising messages to their personal vehicles), essentially paying fans to drive their message into local neighborhoods, shopping centers and commuter routes Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Advertising Agencies Nike contracts the Wieden & Kennedy agency to manage and oversee some of their advertising campaigns Copyright Advertising Agency: An organization that decides on and implements an advertising strategy for a customer © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Advertising Agencies Wieden + Kennedy won an award at the 2012 Cannes Lions festival for its advertising spot featuring Carmelo Anthony, created for the Jordan Brand Copyright © 2014 by Sports Career Consulting, LLC

Marketing Applications BMA IBT 5 Advertising Agencies Under mounting pressure and facing a potential lawsuit, the Washington Redskins enlisted the help of a PR professional to help make a decision as to whether the franchise should change the team nickname Copyright © 2014 by Sports Career Consulting, LLC