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Overview: Sport Marketing

Overview: Sport Marketing

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Overview: Sport Marketing

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  1. Overview:Sport Marketing

  2. Selling Sports One of the largest job categories in the sports industry involves selling: tickets/corporate suites, advertising, corporate sponsorships,etc. 1600 companies sponsor sports reams/events 250 advertising agencies have sports related accounts Source: Team Marketing Report, July 2001

  3. Selling Sports (cont’d) 2,000 sports properties have staffs devoted to sales and marketing including: promotions, public and media relations, and entertainment services. 400 TV and radio outlets have staffs devoted to sales, marketing, promotions, and account managers for sports stations, programming, and production. Source: Team Marketing Report, July 2001)

  4. Selling Sports (cont’d) $26 billion is estimated to be spent on sports marketing nationally including sponsorships, advertising, & merchandising. Source: TMR, July 2001 Sports Sponsorships have grown at a rate of 15% per year for the last 15 years (Warsaw Sports Marketing Center University of Oregon, July 2001)

  5. Marketing Defined • The process of making a product or service attractive to customers. • Providing customers with specific benefits that will attract them and encourage them to participate in, buy, or sponsor your program, product, or service. • A way of seeing programs and events as opportunities to get your organization’s message across and generate revenues. Source: Marketing Skills Program, National Sport and Recreation Center, Ottawa, Ontario, 1984

  6. Sport Marketing • Communicating Images Using: • Symbols • Slogans/themes/jingles • Logos • Messages (print and electronic PSAs)

  7. Sport Marketing (cont’d) • Issues in Communicating Images: • Honesty vs hypocrisy • Socially responsible images • Socially responsive images • Ethics in how images are perceived by diverse groups

  8. Nature of Sport Chapter 1

  9. The Sport Product’s Nature • Meets consumer’s basic needs: health, entertainment, sociability, or achievement • Intangible in nature: ephemeral, experiential, subjective • Perishable commodity – must be pre-sold • Depends on social facilitation

  10. Sport Product’s Nature (cont’d) • Inconsistent and unpredictable • Core product (game/event itself) cannot be controlled

  11. Uniqueness of Sport • Special marketing features • Simultaneous competition and cooperation • Strong personal identification • Strong emotional attachment • Demand fluctuates widely • Universal appeal • Pervades most aspects of life: eating and drinking, sex, religion

  12. Uniqueness of sport (cont’d) • Special financing features: • Indirect revenues (TV, sponsorships, signage, ads) more important than direct revenues (ticket sales) _ traditional pricing strategies do not apply _ price of core product (game?event)is small compared to total cost paid by consumers (travel, lodging, food, souvenirs, parking)

  13. Uniqueness of sport (cont’d) • Special promotions features: • Widespread media exposure is free (both good and bad) • Media and sponsors focus on celebrities (not on product)

  14. Mkt Forces that Affect Mkting • Militant unions • High player salaries • Spoiled players • High ticket prices • Competitive marketplace • Competition within sports • Others

  15. Obstacles to EstablishingSport Marketing Plans • Focus on selling rather than identifying consumers’ needs and wants • Winning is all that is needed • Confusing promotions with marketing • Lack of market research • Poor sales strategies and techniques

  16. Sport Industry Segments • To provide “packaged” events for spectators and the media Objective: sell events to specific target consumers, live or via the media • To provide facilites, equipment, and programs for players Objective: attract players to play a sport

  17. Segments (cont’d) • To provide “packaged” games or events for spectators as well as facilities, equipment and programs for players Objective: promote games/events to pay for facilities, equipment and programs • To provide administrative support, control, and publicity to other sports organizations and groups Objective: generate revenues to support sports leagues or sports events