Marketing Principles Applied to Sport Management

1

• Marketing Principles Applied to Sport Management
• Chapter 3

2
What Is Sport Marketing?

• Create demand for products and services
• Create, promote, deliver goods and services to
  consumers and businesses
• Obtain the best possible understanding of who the
  target market is and what they want
• Includes the marketing of
• Products Equipment, apparel, and footwear
• Services Kill lessons or club memberships
• Entities Leagues, teams, or individuals
• Staff Recruitment and retention (relationships)

3
History of Sport Marketing

• Mark McCormack
• Founded IMG in 1960s first sport marketing firm
• Visionary Back in the 1990s he predicted
  significant growth in Asia, South America, Africa
  
• Now international with broad service categories
• Categories
• Sport Broadcasting
• Sponsorship
• Promotional Strategies
• Research

4
Evolution of Sport Broadcasting

• Define Sport Broadcasting?
• Roone Arledge Sport placed in primetime with
  ABC Monday Night Football combined entertainment
  and sports
• Helped the industry evolve from pure, factual
  reporting aimed at sport fans to sport
  entertainment
• Led to proliferation of sport channels and sport
  networks
• ESPN (ESPN2, ESPN Deportes)
• Big Ten Network, SEC Network

5
Sport Sponsorship

• Sponsorship The acquisition of rights to
  affiliate or directly associate with a product or
  event for purpose of deriving benefits related to
  that affiliation
• Albert G. Spalding
• First to capitalize on the use of the word
  official
• Mark McCormack
• Built IMG through golfer Arnold Palmer
• Nike and Air Jordan
• Packaging of the Nike brand, product,
  advertising, and athlete into one personality

6
Ambush Marketing

• Ambush Marketing Capitalizing on the goodwill
  associated with an event without becoming an
  official sponsor
• Case Study Nike and the 1996 Atlanta Summer
  Olympic Games

7
Product Extension and Promotion

• Who is Bill Veeck?
• Sport marketing pioneer in professional baseball
• Philosophy Team must provide reasons other than
  the game itself for people to attend and support
  franchise.
• Create the greatest joy for the greatest number
  of people
• Ensure a pleasurable attending experience
• Create conversation

8
Research in Sport Marketing

• Who is Matt Levine?
• Credited with formalizing customer research in
  sport industry used strategies such as audience
  audit, intercepts, focus groups
• Collected demographic and psychographic info
• Pass-by interviews
• On-site interviews in heavy traffic areas such as
  malls
• San Jose Sharks logo and colors changed as a
  result of pass-by interviews

9
The Marketing Mix

• Controllable variables that company puts together
  to satisfy a target market
• 4 Ps
• Product (actual event vs. experience)
• Price (depends on value or perceived value)
• Place (preselling and exceptional locations)
• Promotion (advertising, personal selling,
  publicity, sales promotion, and public relations)

10
(No Transcript)
11
Segmentation

• Segmentation Identifying subgroups of overall
  marketplace based on demographic, geographic,
  psychographic, and product usage data
• Ethnic marketing
• Growth of Hispanic population, ESPN Deportes
• Generational marketing
• Generation Y and action sports

12
Fan Identification

• The personal commitment and emotional involvement
  customers have with sport organization
• Enhanced long-term loyalty in sport fans
• Sponsorship opportunities resulting from ability
  to tap into strong emotional connection between a
  fan and his or her sport team

13
Relationship Marketing

• Builds mutually satisfying long term relations
  with key parties (consumers, suppliers,
  distributors)
• Begins with customer and encourages integration
  of the customer into the company
• Builds relationships through communication,
  satisfaction, and service
• Examples
• Loyal fan gift rewards, special access to
  players, and special access to information

14
Key Skills

• Oral and written communication
• Data analysis
• Computer capabilities
• Personnel management
• Sales
• Education
• Understanding of the sport product

15
Current Issues Cost of Attendance

• Drastic increase in cost of attending MLB, NBA,
  NHL, and NFL games
• Increasing evidence that sport fans are not
  willing or able to pay such prices
• Do not see the value of attending a game
• Significant challenge for sport marketers is to
  develop relationship marketing strategies
• Key challenge for anyone in team sport marketing
  is increasing revenues for sport teams

16
(No Transcript)
17
Current Issues Cluttered Marketplace

• Numerous and varied entertainment options are
  available to a consumer with leisure time.
• Added technological options for the next
  generation of sport fans to consume
• Marketplace cluttered for sponsors
• Rise in number of athletes and events, increase
  in number of advertising opportunities available
• Future
• Heightened focus on marketing mainstream sports
  to youth increased challenge for sport entity to
  demonstrate how sponsor will benefit them

18
Current Issues Image Matters

• Development and cultivation of a positive image
  is becoming increasingly important in sport
  marketing.
• Cluttered marketplace Imperative that
  corporations identify sports, events, or athletes
  that have unique images
• Corporate and athlete ethical scandals
• Result
• Corporations are more discerning in ways that
  they spend their sponsorship and endorsement
  dollars they may now spend more on nonprofit
  organizations and causes and clean athletes.

19
Current Issues Image Matters (cont.)

• Case Study David Beckham
• Champion international soccer star
• Fashionable, tolerant, family-oriented
• Case Study Lance Armstrong
• 7-time Tour de France winner
• Captivated audiences after overcoming cancer
• Blood doping evidenced emerged in 2012
• Many of Armstrongs sponsors severed ties with
  him quickly once the evidence emerged
• Including 7 in one day!

20
Summary

• Marketing of sport includes unique advantages
  compared with traditional products and services.
• Free media publicity can both help and hurt an
  organizations marketing strategy.
• Sport marketers must understand their own product
  as well as innovative marketing strategies and
  practices.