A Strategic Perspective on

1
A Strategic Perspective on

• Sports Marketing

2
Objectives

• Define Sports Marketing
• Examine Growth
• Types of Sports Consumers
• Types of Sports Products
• Elements of Strategic Marketing Process

3
What is Sports Marketing???

• Brenda is a pool player
• Angela is a league coordinator
• Peter is an event coordinator
• Larry is treasurer of the VNEA
• Jessica is the manufacturer of Falcon Cues
• Jim is the Canadian distributor of pool tables

4
Defining Sports Marketing

• Sports marketing is the specific application of
  marketing principles and processes to sport
  products and to the marketing of non-sports
  products through association with sport.

5
Association

• Brenda is trying to secure sponsorship
• Angela is recruiting players
• Peter is trying to find the best venue for
  tournaments
• Larry is the sanctioning body of the league
• Jessica wants the pool players to use her pool
  cues
• Jim Wants to sell pool tables to pool players,
  league operators and event coordinators.

6
Websters defines sport as

• a source of diversion or a physical activity
  engaged in for pleasure.
• Entertainment is also defined as something
  diverting or engaging!

7
Comparison

• Entertainment
• Movies
• Plays
• Theater
• Opera
• Concerts
• Play Script
• Concert Program

• Sports
• Spontaneous
• And
• Uncontrollable

8
Determining Emotions

• Game is close and team wins
• Excitement and Joy
• Game is boring and team is loses
• Entertainment benefit is different

9
A Marketing Orientation

• Emphasis on satisfying the consumer
• Intelligence generation
• Intelligence dissemination
• Responsiveness

10
Growth of the Sports Industry

• The Sports Industry is the eleventh largest of
  all U.S. industry groups. 152 Billion (1995)
• Growth in Attendance
• Growth in Media Coverage
• Growth in Employment
• Growth in Global Markets

11
Structure of the Sports Industry

• Learn by studying the different types of
  organizations and their involvement.
• Local, Recreational, National, Youth,
  Intercollegiate, Professional and Sanctioning
  Bodies.

12
Simplified Model of Consumer-Supplier
Relationships

• Consumers
• Spectators observe (in person or media)
• -buy single tickets or season tickets
• Corporate/Business blocks of tickets, corporate
  box, Bring spectators to event
• Purchase rights to televise controls how and
  when the event will be viewed by spectators

13
Simplified Model of Consumer-Supplier
Relationships

• The Participant as Consumers
• Becomes active in sport at a variety of
  competitive levels.
• Unorganized Sport Participants
• Not sanctioned or controlled by external
  authority.

14
Simplified Model of Consumer-Supplier
Relationships

• The Participant as Consumers
• 2. Organized Sport Participants
• Amateur no compensations
• Professional - compensation

15
Simplified Model of Consumer-Supplier
Relationships

• The Sponsors as Consumers
• Sports Sponsorship
• An exchange of money or product for the right to
  associate its name or product with a sporting
  event

16
Simplified Model of Consumer-Supplier
Relationships

• The Sponsors as Consumers
• Sports Sponsorship
• Helps achieve Corporate Objectives.
• Public awareness
• Corporate image
• Community involvement

17
Simplified Model of Consumer-Supplier
Relationships

• The Sponsors as Consumers
• Sports Sponsorship
• Helps achieve Marketing Objectives.
• Reach target market
• Brand positioning
• Increase Sales

18
Simplified Model of Consumer-Supplier
Relationships

• The Sponsors as Consumers
• Sports Sponsorship
• Helps achieve Media Objectives.
• Generate awareness
• Enhance ad campaign
• Generate Publicity

19
Simplified Model of Consumer-Supplier
Relationships

• Products
• Events
• Sporting Goods
• Personal training for sport
• Sport Information

20
Simplified Model of Consumer-Supplier
Relationships

• The Sports Product
• Is a good or service, or any combination of the
  two that is designed to provide benefits to a
  sports spectator, participant or sponsor.

21
Simplified Model of Consumer-Supplier
Relationships

• Goods/Service
• Goods Tangible/physical
• Tennis ball, skates, etc.
• Service Intangible/non-physical
• Competitive event, lesson

22
Simplified Model of Consumer-Supplier
Relationships

• Types of Sports Products
• Sporting Events
• Athletes
• Arena
• Sporting Goods
• Equipment
• Licensed Merchandise
• Collectables and Memorabilia

23
Simplified Model of Consumer-Supplier
Relationships

• Producers/Intermediaries
• Ownership
• Sanctioning bodies
• Sponsors
• Media
• Agents
• Equipment manufacturers

24
Simplified Model of Consumer-Supplier
Relationships

• Agent Responsibilities
• Determine value of the players service
• Convince a club to pay for the player
• Develop a compensation package
• Protect players rights
• Counsel the player re- career and financial
• Assist player to earn extra income, endorsements
  speeches and appearances

25
Sports Marketing Exchange Process

• Multiple exchanges occur

• Something of Value
• Money
• Time
• Personal Energy
• Entertainment
• Better quality of life
• Enhanced Image

Exchange Players Sports Spectators Sports
Participants Organizations Sporting events
Sporting good manufacturers Teams