The Four Domains of Sports Marketing Chapter 2

The Four Domains of Sports Marketing Chapter 2

One of the Dilemmas l No Uniform Definition of “Sport(s) Marketing” l There Is No Agreement as to Exactly What Constitutes a Sports Product l There Is Agreement that the Discipline Encompasses More than Putting Fans in Seats at Spectator Sports Events

Two Broad Domains l As Noted in Chapter 1, there are two broad domains (categories of initiatives) germane to the discipline of sports marketing: ü Marketing of Sports Products non-sports products through Sports by Creating a Sports Overlay (Platform)

Important Statement “attention to marketing tools is long overdue” in the marketing of sports products.

Products Germane to Sports Marketing l Sports Products l Nonsports Products

Sports Products - Category 1 l Spectator ü Live Sports (i. e. a football game) Audience ü Media-based Audience

Sports Products - Category 2 l Participation ü Attracting ü Getting Sports (i. e. golf) New Participants Current Participants to Play More

Sports Products – Category 3 l SASS PSporting Goods (Callaway Golf Clubs) PApparel (New Era Baseball Cap) PAthletic Shoes (Nike’s Le. Bron X Shoes) PSports-related Products (Souvenir Program)

Nonsports Products l Goods & Services not directly related to a sport ü Anything not Included as a Sports Product such as cars, clothes, soft drinks, & razors Ø Nonsports Products Are Often Sold by Creating a Sports Overlay (or Platform)

Two Forms of Involvement l Two Types of Strategies üTraditional üSports-Sponsorship-based

Traditional Strategies l Employ the Basic Components of Marketing Strategy Ø Ø Target Market Corresponding Marketing Mix Price ü Place ü Product ü Promotion ü

Sports Sponsorship-Based Strategies l Employ an Official Sponsorship-based Relationship with a Sports Entity Ø Traditional Sponsorship Ø Three Special Forms of Sponsorship ü Venue Naming Rights (Building Sponsorship) ü Endorsements (Personal or Personality Sponsorship) ü Licensing (Right to Use Intellectual Properties)

Basic Principles of Sports Marketing (Details in Box 2. 2) l Broad Focus Ø Marketing l Products Ø Sports l of Sports vs. Marketing through Sports vs. Nonsports Form of Involvement Ø Traditional vs. Sponsorship-Based Strategies

Sports Marketing Environment Matrix

Theme-based Strategies l Using a Traditional Strategy to Create a Sports Overlay to Sell Nonsports Products ü ü ü Target Market – ad for BMW cars in Golf Digest Product – clothing feature golf graphics Promotion – ad featuring golfers drinking Pepsi Distribution – Hard Rock Café in MLB Stadium Price – Discounts to Bar Patrons Wearing Participation Sport Uniform

Product-based Strategies l Using Traditional Marketing Strategy to Sell Sports Products ü ü ü Target Market – NBA Targeting Chinese Fans Product – New Titanium Golf Clubs Promotion – Newspaper ad Regarding Tickets to NBA game Distribution – Broadcast of Game Available on WWW Price – Bundling Tickets and Refreshments to an NBA game at a Discounted Price

Alignment-based Strategies l Using Sponsorship of a Sports Entity to Sell Nonsports Products ü ü Traditional – Coca-Cola and the Olympics Venue Naming Rights – Levi’s & NFL Stadium Endorsement – Peak Antifreeze & Danica Patrick Licensing – Rival (Crock Pots) & NASCAR

Sports-based Strategies l Using Sports-Based Sponsorship to Sell Sports Products Ø(Least ü ü Common Domain) Traditional – Adidas and FIFA (World Cup) Venue Naming Rights – Sports Authority Field Endorsement – Burton Boards & Shaun White Licensing – Nike & the New York Yankees

Sports Marketing Environment Matrix l Determine which quadrant a Strategy Falls into by Answering Two Simple Questions. Ø Ø l Is the Marketer’s Strategy an Effort to Sell a Sports Product? Does the Strategy Utilize a Sports Sponsorship to Sell the Product? Marketers Can Employ Multiple Strategies thereby Working within 2 or more Quadrants Simultaneously Ø Common to Use Theme-based and Alignment-based Strategies

“Sports Marketing” can now be defined as “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. ”

Closing Capsule l We have a comprehensive overview of the sports marketing environment l Using the type of product sold and the level of sports integration, we have identified the four domains of the discipline l Best visualized with the 2 x 2 matrix

Closing Capsule l The Four Strategic Domains Are: ØTheme-based ØProduct-based ØAlignment-based ØSports-based

Closing Capsule l To Determine a Marketing Initiative’s Location in the Sports Marketing Environment Matrix, You Need to Answer Two Questions: Ø Is the product a sports product or not? there any indication that an official sponsorship of a sports entity exists?

Closing Capsule l Chapter 3 Begins an Examination of Marketing through Sports l Marketing of Sports Products Will Begin with Chapter 6