Incentives

1. Incentives Incentives are items of perceived value added to an offer to encourage some overt __________response.

2. Incentives Incentives are items of perceived value added to an offer to encourage some overt behavioral response.

3. Incentives: defined • To whom are they targeted? • What is altered by the offer? • What kinds of things are usually offered? • What stage of the communication process (AIDA) is targeted?

4. Incentives: defined • To whom are they targeted? Insufficiently motivated, indifferent or apathetic • What is altered by the offer? The perceived price • What kinds of things are usually offered? price deals, premiums, contests, samples • What stage of the communication process (AIDA) is targeted? Action

5. Price-based incentives • What’s wrong with this picture? What are some possible risks of this incentive? • http://www.akronaeros.com/freetickets/ • Suppose that you are going to run a price deal for this Saturday’s game against SMU. How should you do it? • Be specific (viz., p.55) • Ideas available on p.56, table 3.1

6. Price-based incentives • What’s wrong with this picture? What are some possible risks of this incentive? • http://www.akronaeros.com/freetickets/ • Suppose that you are going to run a [price] deal for this Saturday’s game against SMU. How should you do it? • Contingency-based • Fans have to do something prior to the game to get it (e.g., go to HEB, etc.) • Value-added incentives (giveaway) are better • It should match a sponsor’s objectives for a specific target market • It should include a way of building a database to target this segment in the future

7. When to do a deal • Which do you think is better? • Run promotions infrequently or frequently? • Run promotions during weekdays or other times when low attendance is expected? • Run promotions when high attendance is expected? p.57

8. What is an incentive? • The text discusses incentives in terms of • the NBA & FIFA changing rules to increase scoring • Star players (McEnroe) • Place-based incentives such as new stadiums • Are these really incentives as defined by the text?

9. What is an incentive? • The text discusses incentives in terms of • the NBA & FIFA changing rules to increase scoring • Star players (McEnroe) • Place-based incentives such as new stadiums • Are these really incentives as defined by the text? • No, the authors forgot what they were writing about. Incentives are items geared toward eliciting an overt behavioral response (read: immediate). These changes are changes in the product or distribution of the sport and are geared toward changing longer-term responses. Otherwise, the rules would change back or the stadiums would disintegrate or something like that.

10. Motives for sport Involvement • Achievement • Craft • Affiliation • Health and/or fitness benefits • Fun & Festival

11. Achievement • How to fans engage in vicarious achievement or BIRGing? Give examples from your experience. • How does this directly affect the financial success of teams with high identification? • Why do fans have a high need to gain knowledge about the team/players? • How can teams facilitate this need?

12. Other effects of BIRGing Horm Behav. 1992 Dec;26(4):486-504. Related Articles, Links Winning, losing, mood, and testosterone.McCaul KD, Gladue BA, Joppa M.Department of Psychology, North Dakota State University, Fargo 58105.In two experiments, male college students either won or lost $5 on a task controlled entirely by chance. In both studies, winners reported a more positive mood change than did losers and, in Experiment 2, winners reported a more positive mood change than a neutral group that did not win or lose money. After the task was completed, winners exhibited significantly higher testosterone levels than losers. Levels of cortisol, a hormone associated with stress and arousal, did not differ among the groups, suggesting that a hormone-behavior response pattern for winning and losing is specific to testosterone. These data suggest that winning can alter testosterone levels in men and that mood may mediate such changes.

13. Craft “The opportunity to observe star players perform their craft often ranks as one of the most important factors in attracting attendees and media consumers to pro sports.” (p.63) • Who is one of your favorite NFL players? • Which is the biggest reason that you watch this player? • to appreciate his/her craft or skills, or • to BIRG in order to enhance self-esteem? • What is the connection between BIRGing, craft, and affiliation? • How can BU use the “craft” motive to increase attendance at football games?

14. C2C Affiliation • Assume you are faced with the unenviable task of promotion manager for the Padres (or one of the other teams) mentioned in this article. • How would you use incentives to improve: • Intragroup affiliation • Transgroup affiliation • Intergroup affiliation

15. C2O affiliation • How should the Padres market to minorities? • African-American • Hispanic

16. The Padres & Hispanic Marketing There is only one minority general manager in all of Major League Baseball: Ken Williams of the Chicago White Sox. The highest ranking African-American ever in the Padres’ front office was Dave Stewart, once a special assistant to general manager Kevin Towers. In professional baseball’s melting pot, about 30 percent of today’s players are Latino, says Enrique Morones, vice president of Hispanic and international marketing for the Padres. “As far as the players,” says Morones, “I think teams will play is the best at a position—though it’s not always been that way. “But there’s not parity for all, and there aren’t the same opportunities for everyone in the front offices,” he says. “We’re fortunate in San Diego. We were the first team to concentrate on Hispanic marketing.” That practice began in 1995. The Arizona Diamondbacks and the Florida Marlins picked up on the concept in 1997. Morones believes Padres owner John Moores believes in racial equality, but Morones says more than anything else, economic factors have caused owners to focus on Latinos. “Owners like the color green more than any other color,” he says. “Before John Moores bought the team, 50,000 of the 1 million fans who came to games were Latino. Now, it’s 600,000 of 2.5 million.” The Padres advertise special promotions in Mexico for many Sunday games. As a result, “We get a spike in anonymous calls after Sunday games from people wondering why we fly the Mexican flag at Qualcomm,” says Tim Katzman, a special assistant to the president of the Padres. “I think it’s more of a nationalist view than a racist view, but the line does get blurred.”