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Sports Marketing

Sports Marketing. Chapter 1.2. Opening Act.

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Sports Marketing

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  1. Sports Marketing Chapter 1.2

  2. Opening Act • Different sports compete for fan loyalty and revenue. College, professional, and amateur sports all want apiece of the spectator revenue. Spectators are actually consumers purchasing a service (the event). The ultimate goal for sporting events is selling the maximum number of tickets and other related items. • Marketing research is used to determine which sports are the most popular for different target markets. This research is not only important to event managers but also to sponsors interested in gaining the attention of potential customers. • Select your favorite sport. Who is the target market for this sport? Why? Who would be a good sponsor for this sport? Why?

  3. Sports Marketing • Spectator of sporting events are the potential consumers of a wide array of products ranging from apparel and athletic equipment to food items and automobiles. • Sports spectators sometimes have more in common than just the sport. • Finding out their interests and planning a product or service that the spectators will buy is a function of sports marketing. • Sports marketing is using sports to market products.

  4. Target Market • The first step in marketing a product to any audience is determining the target market. • A target market is a specific group of people you want to reach. • Target marketing is focusing all marketing decisions on a very specific group of people who you want to reach. • In order to promote and sell products and services, a company must know the needs and wants of the target market.

  5. How to Find a Target Market • A company with a product or service to sell must first identify the customer and create a customer profile. • The company must learn specific information, such as: • age ranges in the group • marital status • gender • educational level • attitudes and beliefs • and income • Disposable income is income that can be freely spent. It is the money left after taking out taxes. Known as demographics

  6. Spending Habits of Fans • It is important to research he spending habits of fans in order to maximize profits on items they purchase at sporting events. • The price fans are willing to pay for a ticket depends upon the interests of the target market, the national importance of the event, the popularity of the participating athletes, and the rivalry associated with the contest.

  7. Hottest Opening Week NBA Games • Magic @ Heat – Oct. 29: $805 • Heat @ Lakers – Dec 25: $717 • Heat @ Celtics – Oct. 26: $545 • Rockets @ Lakers – Oct. 26: $321 • Thunder @ Lakers – Jan. 17: $279 • Lakers @ Suns – Oct. 29: $244 • When the Heat had their home opener against the New York Knicks last year, average ticket prices were $116. This year, with King James and company, Heat tickets for the home opener average $805. What a different a year makes. And the LeBron Effect doesn’t hurt either. • Heat Tickets Top NBA Initial Opening Week and Holiday Schedule Tuesday, August 10th, 2010

  8. Marketing Strategies • In today’s competitive market, product/service planners must be creative and two steps ahead of everyone else. • Promotion is developed to attract the attention of the target group. • Marketing strategies used by planners include • sports logos on clothing • creation of new sports • gross impression • perfect timing

  9. Sports Logos on Clothing • Why do people wear clothing that has the logos of their favorite teams or that is endorsed by a sports figure? • Team logos show loyalty • Value of the merchandise is increased in the eyes of the buyer • Some consumers feel more successful themselves if they own products endorsed by a successful person. • Royalties, or a percentage of sales, are earned by teams each time merchandise bearing their logos is sold. • What sports figures provided a huge boost in sales of NIKE merchandise?

  10. Air Jordan shoes brought in over $100 million in new revenue for NIKE

  11. New Sports, New Opportunities • New sports markets offer new opportunities for endorsement and marketing. • Arena football, founded in 1987, is one of the fastest-growing sports in the country. • Tickets are affordable • Player are accessible • Minor league baseball offers families an affordable, entertaining alternative to an expensive trip to a big league park. • Fireworks displays • running bases • player autograph sessions

  12. Gross Impression • Gross impression is the number of times per advertisement, game, or show that a product or service is associated with an athlete, team, or entertainer. • Brands show in movies, television shows, and televised sporting events all represent gross impressions. • Many college and professional teams now have company or product logos on their uniforms. • Marketers hope the spectators will see them, will want to be associated with the elite team or athlete, and will buy the products.

  13. Ambush Marketing • Ambush marketing is a marketing technique which involves riding on the coattails of a major event without paying sponsorship fees, essentially using the event as a free promotion. • This type of marketing most commonly occurs in association with major sports events. • At a typical sports event, several companies pay very large fees for exclusive marketing rights, and these fees can sometimes number in the billions for events like the Olympics. • A variety of techniques are used in ambush marketing. The most basic is simply buying up billboard space around an event, assuring that people who attend the event will see the marketing.

  14. Today I came across a great example of ambush marketing. Jet Airways, which is one of the leading Indian Airways put up an advertisement telling their customers that they have changed. Check out Kingfisher Airlines' response to this claim.

  15. Example • One classic example of ambush marketing occurred at the 1996 Olympic Games in Atlanta, when the Nike company covered the city in ads, benefiting from the focus on the city for the Olympics without having to pay the often hefty sponsorship fees. • Ambush marketing is a source of frustration for promoters of sports events, as well as companies which do pay sponsorship fees.

  16. Timing • The popularity of teams and sports figures is based almost completely on continued winning. • A team or celebrity on a losing streak can lose more than just points in a game. • Timing is extremely important when marketing sporting goods. • Fans want products and services that identify them with a winner. • Name some examples of products that have increased in popularity. Decreased in popularity?

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