Introduction to Sports Marketing Chapter 1 Broad Marketing

Introduction to Sports Marketing Chapter 1

Broad Marketing Domains l Primary Focus of Marketing Efforts Ø Marketing through Sports Ø Marketing of Sports Products

Marketing Through Sports Traditional Strategies ØSports as a Marketing Platform Reaching Similar Target Market Sports Incorporated within the Marketing Mix üProduct üDistribution (Place) üPrice üPromotion

Marketing Through Sports l Sports Ø Traditional l Ø AT&T and AT&T Park (San Francisco Giants MLB Stadium) Licensing l Ø Coca-Cola and the Olympics Venue Naming Rights l Ø Sponsorship-Based Strategies Anvil (t-shirts) and NFL (Super Bowl logo shirts) Endorsements l Sony (TVs) and Peyton Manning

Marketing of Sports Products l Some Examples of “Sports Products” Ø Access to Spectator Sports Events l Ø Access to Participation Sports Venues l Ø Tickets or Media-based access to the British Open Membership to Curves Gym Sporting Goods and Apparel l Nike Golf Clubs and Golf Shirts

Spectator Sports - the Sports Event Pyramid

Local Events l Draw Fans from Small Geographic Area l Promoted Using Local Media Ø Examples ü ü ü Minor League Team High School Sports Local Amateur Competitions

Regional Events l Little National or International Interest l Marketers Attempt to Move the Event Up Ø Examples ü ü Most Collegiate Sports Teams (Most) Marathon Races

National Events l Large Portion of One or Two Countries l Often a Significant Media Presence Ø Examples ü ü Stanley Cup Playoffs (Ice Hockey) BCS (College Football) Championship Game NCAA Final Four (College Basketball) The Ashes (England & Australia Cricket)

International Events l Appeal Transcends National Borders Significant Media Presence Venue often Shifts Among Countries Ø Examples l l ü ü ü Ryder Cup Golf Tournament World Cup of Rugby Wimbledon Tennis Championships

Global Events l Broadcast to Global Audience ü Significant Rights Fees Paid by Broadcasters l National Pride often a Consideration Few Events in this Top Category Ø Examples l ü ü Olympic Games World Cup of Soccer

Participation Sports l Market the Idea of Participating ü ü l Play Golf Play More Golf Market Venues ü ü Build and Market a New Golf Course Building Bowling Facilities in Casinos

Most Popular Participation Sports (USA)

Sporting Goods, Apparel, Athletic Shoes, and Sports-related Products (SASS) l Sporting Goods – Equipment ü l Apparel – Clothing ü ü l l Golf Clubs, Footballs, Exercise Equipment Participation-Based: Softball Uniform Fashion-Based: Team Logo Polo Shirt Athletic Shoes Sports-related Products P Eclectic Array of Goods & Services

Why Teach Sports Marketing? l Huge Economic Impact l Little Focus on Sports Industry in Curricula l More Emphasis on the Bottom Line by Sports Entities (e. g. University Football)

Evolution of Sports Marketing l Marketing of Sports Taught First l Marketing Through Sports Added l Early Leisure Emphasis l Leisure and Business Focus Today

Economic Impact

Components of Economic Impact l Direct Spending by Consumers Ø ü Ø Tickets, Hotels, Restaurants, Gas, Rental Cars, Wages Paid to Workers, Participation Fees Ski Lift Tickets; Tickets to a Football Game The Multiplier Effect Ø Recognizes That Money Turns Over in the Economy: (Typically between 1. 3 and 3 Times)

The Multiplier Effect

One-Day Events l Event may occur over a single day, but its impact may cover extended period of time l Examples ü ü ü NFL Super Bowl Indianapolis 500 Championship Boxing Match

Multiday Events l Events encompass 2 or more days May be at single or multiple venues l Examples l ü ü ü Olympics NCAA Final Four Masters Golf Tournament America’s Cup Yachting Regatta World Cup of Soccer

Participation Sports/Recreation l Local Resident Contributions ü l Restaurant, activity-based shopping Vacation Expenditures P Hotels, l gas, rental cars Participation Fees ü Tournament entry, rental equipment

Professional Team or Arena l Local Wages for Employees l Tax Revenues l Expenditures by Visitors ü ü Fans Media

Aggregate Economic Impact l Gross Domestic Sports Product (GDSP) Ø Total Spent on Sports-Related Goods and Services in a National Economy in 1 Year Ø Difficult to Measure ü Estimate for USA in 2015 was approximately $358. 75 Billion

Typical Organizational Chart – Major League Baseball Team

Career Opportunities l Internships ü ü ü l Variety of Positions Often Unpaid Establish Network of Associates /References Sales ü ü Season Tickets, Group Tickets, Sponsorship Suites, General Retail

Other Career Opportunities l Advertising & Promotion l Web Site Manager l Social Media Coordinator l Marketing Research l Hospitality

Other Career Opportunities l Facilities Management/Venue Operations l Public Relations l Retail Operations l Brand Activation

Other Career Opportunities l Sponsorship Purchasing ü ü l Making Good Decisions Investment Decisions Sponsorship Evaluation ü ü Postevent Measurement Estimation of Return on Sponsorship Investment

Other Career Opportunities l Participation Center Management l Agent

Looking for a Sports Job? Check out the most recent job postings at: è www. teamworkonline. com l l Register for weekly updates

Career Trends l More Job Applicants l More International Opportunities l More Focus on Selling Through Sports l More Emphasis on Business Aspects

Closing Capsule l“Aspiring sports marketers should not confuse it with playing a game. It is a job, one that demands time, energy, commitment and knowledge. ”