Sports and Entertainment Marketing SPONSORSHIP & ENDORSMENT

THINK ABOUT THIS….. O’Reily Auto Parts O’Reily Auto Parts has grown from a single store to more than 1,500 stores in 25 states and is still adding multiple stores each year. The company generated more than $2 billion in revenues last year. It has a dual marketing strategy, serving both wholesale and retail automotive parts businesses. O’Reilly’s promotional plans include radio, print, and television ads and national sponsorships of the National Hot Rod Association and NASCAR. O’Reilly participates in more than 1,200 racetrack events each year. O’Reily also sponsors college sports as a corporate partner of the Texas Tech Red Raiders. Coaches wear a shirt with O’Reilly’s logo during the games.

WHAT IS A SPONSOR? A person, organization, or business that gives money or donates products and services to another person, organization, or event in exchange for public recognition. Sponsors help pay the cost of providing events to the fans and help keep ticket prices affordable.

IDENTIFY THE SPONSOR IN EACH EXAMPLE Write your answers in your notebook on page CLEARLY LABEL IT SPONSORSHIP

NAMING RIGHTS Type of sponsorship A corporation or other entity purchases the right to name a facility – Multi-purpose arena – Performing arts venue – Athletic field

REASONS FOR SPONSORSHIP 1. Increase sales and profits 2. Introduce a new product or service to a large audience 3. Be associated with an event your target market is interested in 4. Enhance the company’s image 5. Earn the goodwill of the audience by showing a commitment to the community 6. Entertain clients, employees, or potential customers 7. Enter new markets or a niche market

WHAT IS ENDORSEMENT? A person’s public expression of approval or support for a product or service Any advertising message that consumers are likely to believe reflects the opinions, beliefs, findings, or experience of a party other than the sponsoring advertiser

ENDORSEMENT EXAMPLES Most Expensive Celebrity Endorsements Top 10 Athlete Endorsements

LEGAL RESTRICTIONS ON ENDORSEMENTS 1. The truthful opinions and beliefs of the endorser must be expressed in the endorsement. 2. The endorser must have real experience with the product. 3. The endorsements may not contain any deceptive or misleading statements.

LEGAL RESTRICTIONS ON ENDORSEMENTS CONTINUED 4. Endorsements may not be presented out of context or reworded so to distort the endorser’s opinion. 5. The endorser must use, continue to use, and believe in the product. 6. If the product changes in any way, the company must notify the endorser, and the endorser must continue to use and believe in the product

WHAT BUSINESSES SEEK IN AN ENDORSER Someone with a positive, charismatic, and trustworthy image A celebrity most consumers know A celebrity whose career is in progress Someone who presents few risks Someone who has a believable relationship with the product

CELEBRITY ENDORSEMENT ADVANTAGES Studies have proven that consumers will buy products endorsed by celebrities Viewers are less likely to turn off a commercial featuring a celebrity Consumers tend to believe celebrities DISADVANTAGES Endorsements are expensive If an endorser is perceived to be accepting every opportunity, they may lack sincerity Risk of negative publicity if the endorser commits a crime or a serious social blunder

CHOOSE A CELEBRITY ENDORSER FOR EACH PRODUCT Write your answers in your notebook on page CLEARLY LABEL IT ENDORSEMENT

THE HISTORY OF Founded in 1948 Annual attendance exceeds 9 million fans visiting 37 races –N - National –A - Association –S - Stock –C - Car –A - Auto –R - Racing

AS A BRAND NASCAR is a “brand” The second highest rated live sport on TV – Behind the NFL 71% of NASCAR fans are loyal to brands that sponsor the sport – More than any other sport

SALES NASCAR licensed products – 1990 – $80 Million – 2009 – $3 Billion Sales have increased more than 3000% since 1990

SALES Last year NASCAR made 3 billion in licensed product sales More Fortune 500 companies sponsor NASCAR than any other sport

FANS The majority of NASCAR fans do not fit into the general stereotype associated with the sport – 78% of NASCAR fans are high school graduates – 40% of NASCAR fans attended college – 36% are in professional or managerial occupations – 70% have full-time employment

FANS 33% have annual incomes between $30,000 and $50,000 30% have household incomes over $50,000 53% are over 35 64% are married

FANS SportWomenMen NASCAR38%62% NFL35%65% MLB31%69% NBA28%72% NHL12%88% Women make up almost 40% of the NASCAR fan base More than any other sports

NASCAR Café: NASCAR Café: Themed restaurant NASCAR SpeedPark: NASCAR SpeedPark: Go kart tracks Vaughan, ONT Vaughan, ONT Myrtle Beach, SC Myrtle Beach, SC Concord, NC Concord, NC Smokey Mountain, NC Smokey Mountain, NC St. Louis, MO St. Louis, MO

NASCAR ride at Carowinds Park NASCAR ride at Carowinds Park NASCAR driving experience NASCAR driving experience

SO WHAT’S THE BIG DEAL? 1/3 of the Fortune100 firms sponsor a NASCAR racecar

THE BIGGEST SPONSOR OF ALL

WHO’S MISSING? Winston sponsored NASCAR for 32 year Replaced by Sprint in 2003 No tobacco brand sponsors exist anymore

WHO’S MISSING? Hard liquor has not traditionally been a part of NASCAR Introduced into the sport in 2004 to bring an influx of cash to the sport

MAIN SPONSOR Includes hood, driver’s chest and TV panel (back of trunk) Includes hood, driver’s chest and TV panel (back of trunk) $5-9 million Hood Driver’s chest TV Panel

B-Post $75,000 - $150,000 OTHER SPONSORSHIP OPTIONS Trunk $500,000 - $1 million C - Post $250,000 - $750,000

Front Fender $30,000 - $100,000 OTHER SPONSORSHIP OPTIONS Rear Quarter Panel $750,000 Front Quarter Panel $750,000 - $150,000 Lower Quarter Panel $25,000 - $75,000 Behind Rear Wheel $200,000 - $600,000

OTHER SPONSORSHIP OPTIONS Roof and Door panels Car Number locations No Ads are permitted here