Sports Marketing OBJECTIVES 1)Explain the marketing concept 2)Identify the components of the marketing mix 3)Understand the target market 4)Identify the five bases of segmentation 5) Illustrate the concept of positioning Copyright © 2010 by Sports Career Consulting, LLC

Sport marketing is a subdivision of marketing which focuses both on the promotion of sports events and teams as well as the promotion of other products and services through sporting events and sports teams.

What’s the difference? Building a fan base, not a customer base, is the first fundamental difference between sports marketing and marketing of most goods and services

Jobs in Sports marketing An individual who works in the field of sports marketing helps to promote an athlete, a team or a particular bran A sports marketer must be ready with fresh promotions that will get the public’s attention and persuade them that a specific team, player or product is worth their dollar.

UNIT 3 Intro to Basic SEM Principles Industry Segments Segments In Sports Business  Sports Tourism  Sporting Goods  Sports Apparel  Amateur Sports  Olympic Sports  High School Athletics  Collegiate Athletics  Professional Sports  Motor Sports  Recreation  Outdoor Sports  Health Clubs / Fitness  Sports Marketing Firms  Event Management  Governing Organizations  Facility Management  Action Sports Copyright © 2010 by Sports Career Consulting, LLC

UNIT 3 Intro to Basic SEM Principles Industry Segments Segments In Entertainment Business  Filmed Entertainment  Television Networks  Television Distribution  Recorded Music  Video Games  Radio Services  Internet Advertising  Publishing Sector  Digital Media Services  Broadcasting-Satellite Services  Theatre & Performing Arts  Casinos & Gaming  Fine Arts  Theme Parks / Amusement Parks Copyright © 2010 by Sports Career Consulting, LLC

What is SEM? Marketing through Sports & Entertainment Copyright © 2010 by Sports Career Consulting, LLC Companies use sports and entertainment as a vehicle to gain exposure for their products Kia Motors sponsoring the World Cup VitaminWater affiliating its product with celebrities like Steve Nash, Carrie Underwood, Jennifer Aniston, David Ortiz and Steve Nash HP serving as presenting sponsor of the Sundance Film Festival

What is SEM?  Tostitos sponsoring the Fiesta Bowl  A NHL team offering payment plan options for season ticket buyers  NBC paying $5.7 billion for the TV rights in the U.S. to the Olympics from 2000 to 2012 Examples of Sports Marketing Copyright © 2010 by Sports Career Consulting, LLC

UNIT 2 What is SEM?  A corporation’s purchase of a courtside tickets in a NBA Arena  A sign or banner displaying a company’s logo at a hockey rink  Coca-Cola paying for “pour rights” at an event or facility Examples of Sports Marketing Copyright © 2010 by Sports Career Consulting, LLC

What is SEM?  A local restaurant sponsoring the local high school soccer team  The Goodyear Blimp flying over sporting events  Fans receiving free bobble head dolls at a baseball game Examples of Sports Marketing Copyright © 2010 by Sports Career Consulting, LLC

What is SEM?  Nike partnering with Apple to launch new technology for runners  Foot Locker stores offering special sales or coupons to help increase sales Examples of Sports Marketing Copyright © 2010 by Sports Career Consulting, LLC

What is SEM?  Former NBA star Charles Barkley hosting Saturday Night Live Examples of Sports Marketing Copyright © 2010 by Sports Career Consulting, LLC

What is SEM?  Seeing the Houston Symphony perform at Jones Hall in downtown Houston  Attending a LSU Tigers football game  Reading Stephanie Meyer’s novel Twilight Examples of Entertainment Copyright © 2010 by Sports Career Consulting, LLC

What is SEM?  Visiting the Seattle Aquarium  Going to a Justin Timberlake or Jack Johnson concert  Listening to the newest Lady GaGa song on your mp3 player  Watching the Broadway musical “Lion King” Examples of Entertainment Copyright © 2010 by Sports Career Consulting, LLC

What is SEM?  Going to the Ringling Bros. and Barnum & Bailey circus at the American Airlines Center in Dallas  Universal Studios announcing ‘Transformers’ as a new theme park ride Examples of Entertainment Copyright © 2010 by Sports Career Consulting, LLC

P P P P The Marketing Mix—The Four Ps 16 involve the goods, services, or ideas used to satisfy consumer needs. Product Decisions involve the exchange process between the customer and the seller. Price Decisions involve making the product available to the customer. Place Decisions involve how the goods or services are communicated to the consumer. Promotion Decisions

Chapter 1 Slide 17 A Marketing Mix Example in the Sports Industry The product the Super Bowl offers is a game between the best teams of the AFC and NFC. Consumer costs extend beyond ticket prices and include travel and lodging expenses. Distribution includes the location of the host city and ticket sales. Promotion involves media outlets and related- product contests.

Chapter 1 Slide 18 A Marketing Mix Example in the Entertainment Industry State fairs need to  appeal to rural and urban residents  set reasonable ticket prices  advertise about the fair  determine fair location  plan ticket sales

Marketing Strategies Ways to get people to buy your products and spend money  Sports logos on clothing  New Sports- New opportunities  Perfect timing (product is hottest when team is winning)  Using Athletes and Celebrities  Gross Impressions-the number of times a product associated with an athlete or team

Chapter 1 Slide 20 CORE STANDARDS OF MARKETING

Market Segmentation Process of dividing a larger market into a smaller target market Customer groups with similar needs and or desires.

Segmentation Demographic -Demographic segmentation divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality Geographic-Geographic segmentation divides the market into different geographical units such as nations, regions, states, counties, or cities Psychographic- divides buyers into different groups based on social class, lifestyle, or personality traits Behavioral segmentation divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product Occasion Benefits sought User status Usage rate Loyalty status

TASKS SPRING, 2011 The Wide Wide World of Sports

Sports Marketing Sports marketing is building a highly identified fan base such that fans, sponsors, media and government pay to promote and support the organization for the benefits of social exchange and personal, group and community identity within a cooperative competitive environment.

The Sports Industry Affects your life even if you are not athletic There is nowhere on Earth that is not touched by the sports industry. The marketing of this industry affects you.

The Sports Industry includes: Players and the games Facility where games are played Equipment used to play the games Agencies that regulate the games Media that broadcast the games Fans who watch the games

The Sports Product Categories Sporting event Sporting goods Personal training Sports information

The Sporting Event  An intangible, perishable experience- The emotional attachment fans invest in their affiliation with a favorite team  The athletes- without them there would be no game  The facility- the place where it takes place.

Sporting Goods The tangible, manufactured products  Equipment and clothing  Accessory products  Licensed merchandise  Collectibles or memorabilia

Personal Training Preseason camps & workshops Health clubs, fitness centers Children’s summer sports camps Personal lessons

Sports Information Local newspapers, TV and radio stations ESPN, specialized sports channels Sports Illustrated and other magazines Internet

Who are the Consumers of Sports? Unorganized participants Organized participants Spectators sponsors

Go to the page 4 and determine who the users are give one main fact and your comment or opinion on each

Unorganized Participants Do not follow rules of an organization or group. Free to participate as they want

Organized Participants Controlled by groups or sanctioning bodies  Amateurs  Professionals

Spectators Observers of the sporting event Corporate consumers Media

Sponsors Pay to associate their names or products with a sporting event Pay to put their names on uniforms and sports facilities

Sports Marketing The marketing of all sports products as well as other products through the use of sports SEGMENTS OF THE SPORTS MARKETING INDUSTRY  Marketing of the sport event  Marketing sport goods and services  Marketing other goods or services through the use of sport  Marketing of products to sports

SPORTS MARKETING AFFECTS MILLIONS OF PEOPLE THROUGHOUT THE WORLD INCREASED ATTENDANCE INCREASED MEDIA COVERAGE Growth and Marketing of the Sports Industry go Hand in Hand

GOOD Sports Marketing is GOOD For You Employment opportunities Health benefits Recreational benefits Entertainment

Sports Marketing is Good for the Local Community Significant impact on the economy  Visitors spend money  Create a need for more support facilities  More jobs available Impacts a city’s image  May be good or bad

Sports Marketing is Good for Society A major industry that generates billions of dollars of revenue each year.  Creates jobs that generate more revenue Increases opportunities for businesses in related industries Snowballing effect trickles down to almost everyone.