Introduction to Sports Marketing Chapter 1

Broad Marketing Domains Primary Focus of Marketing Efforts Marketing through Sports Marketing of Sports Products

Marketing Through Sports Traditional Strategies Sports as a Marketing Platform Reaching Similar Target Market Sports Incorporated within the Marketing Mix Product Distribution (Place) Price Promotion

Marketing Through Sports Sports Sponsorship-Based Strategies Traditional Coca-Cola and the Olympics Venue Naming Rights AT&T and AT&T Park (San Francisco Giants MLB Stadium) Licensing Anvil (t-shirts) and NFL (Super Bowl logo shirts) Endorsements Sony (TVs) and Peyton Manning

Marketing of Sports Products Some Examples of “Sports Products” Access to Spectator Sports Events Tickets or Media-based access to the British Open Access to Participation Sports Venues Membership to Curves Gym Sporting Goods and Apparel Nike Golf Clubs and Golf Shirts NOTE: This represents SOME Examples; the Concept of Sports Products will be broadened later in Chapter 1

Spectator Sports - the Sports Event Pyramid As we progress up the pyramid, the budget for the marketing of the spectator event tends to grow. Concurrently, interest in using the sports event as a platform to sell nonsports products also grows. So marketing of sports and marketing through sports both intensify.

Local Events Draw Fans from Small Geographic Area Promoted Using Local Media Examples Minor League Team High School Sports Local Amateur Competitions

Regional Events Little National or International Interest Marketers Attempt to Move the Event Up Examples Most Collegiate Sports Teams (Most) Marathon Races

National Events Often a Significant Media Presence Examples Large Portion of One or Two Countries Often a Significant Media Presence Examples Stanley Cup Playoffs (Ice Hockey) BCS (College Football) Championship Game NCAA Final Four (College Basketball) The Ashes (England & Australia Cricket)

International Events Appeal Transcends National Borders Significant Media Presence Venue often Shifts Among Countries Examples Ryder Cup Golf Tournament World Cup of Rugby Wimbledon Tennis Championships

Global Events Broadcast to Global Audience Significant Rights Fees Paid by Broadcasters National Pride often a Consideration Few Events in this Top Category Examples Olympic Games World Cup of Soccer

Participation Sports Market the Idea of Participating Market Venues Play Golf Play More Golf Market Venues Build and Market a New Golf Course Building Bowling Facilities in Casinos

Most Popular Participation Sports (USA)

Sporting Goods, Apparel, Athletic Shoes, and Sports-related Products (SASS) Sporting Goods – Equipment Golf Clubs, Footballs, Exercise Equipment Apparel – Clothing Participation-Based: Softball Uniform Fashion-Based: Team Logo Polo Shirt Athletic Shoes Sports-related Products Eclectic Array of Goods & Services

Why Teach Sports Marketing? Huge Economic Impact Little Focus on Sports Industry in Curricula More Emphasis on the Bottom Line by Sports Entities (e.g. University Football)

Evolution of Sports Marketing Marketing of Sports Taught First Marketing Through Sports Added Early Leisure Emphasis Leisure and Business Focus Today Marketing of sports was rudimentary early – often confined to local advertising and game-day promotions such as MLB’s “ladies day” and “businessmen’s special”. Marketing through sports was common many years ago, it just wasn’t taught as a specific strategy. The explosion in the use of sponsorship created more awareness of this strategy and led to its inclusion in more college curricula. Today, there is a strong focus on the bottom line (much to the chagrin of many critics).

Economic Impact

Components of Economic Impact Direct Spending by Consumers Tickets, Hotels, Restaurants, Gas, Rental Cars, Wages Paid to Workers, Participation Fees Ski Lift Tickets; Tickets to a Football Game The Multiplier Effect Recognizes That Money Turns Over in the Economy: (Typically between 1.3 and 3 Times)

The Multiplier Effect

One-Day Events Event may occur over a single day, but its impact may cover extended period of time Examples NFL Super Bowl Indianapolis 500 Championship Boxing Match

Multiday Events Events encompass 2 or more days May be at single or multiple venues Examples Olympics NCAA Final Four Masters Golf Tournament America’s Cup Yachting Regatta World Cup of Soccer

Participation Sports/Recreation Local Resident Contributions Restaurant, activity-based shopping Vacation Expenditures Hotels, gas, rental cars Participation Fees Tournament entry, rental equipment

Professional Team or Arena Local Wages for Employees Tax Revenues Expenditures by Visitors Fans Media

Aggregate Economic Impact Gross Domestic Sports Product (GDSP) Total Spent on Sports-Related Goods and Services in a National Economy in 1 Year Difficult to Measure Estimate for USA in 2015 was approximately $358.75 Billion $17.937.6 Trillion US GDP for 2015 translates into GDSP of $358.75 Billion in 2015. Estimates of this type are rough and may be subject to question, but they provide a reasonable estimate based on historical precedent.

Typical Organizational Chart – Major League Baseball Team The bottom layer represents the types of entry level marketing positions available to aspiring sports marketers. What is missing is a listing of Social Media specialists.

Career Opportunities Internships Sales Variety of Positions Often Unpaid Establish Network of Associates /References Sales Season Tickets, Group Tickets, Sponsorship Suites, General Retail INTERNSHIPS – Networking is often the key to getting a permanent position.

Other Career Opportunities Advertising & Promotion Web Site Manager Social Media Coordinator Marketing Research Hospitality

Other Career Opportunities Facilities Management/Venue Operations Public Relations Retail Operations Brand Activation

Other Career Opportunities Sponsorship Purchasing Making Good Decisions Investment Decisions Sponsorship Evaluation Postevent Measurement Estimation of Return on Sponsorship Investment

Other Career Opportunities Participation Center Management Agent Agent always creates interest – need to know that it is a difficult area to enter that is based on a knowledge of contract law and sports.

Looking for a Sports Job? Check out the most recent job postings at: www.teamworkonline.com Register for weekly updates Students who want to work in professional sports should be encouraged to register for updates (each Friday). Check out the Web site in class and see if there are any positions looking for candidates in your area.

Career Trends More Jobs More Job Applicants More International Opportunities More Focus on Selling Through Sports More Emphasis on Business Aspects

Closing Capsule “Aspiring sports marketers should not confuse it with playing a game. It is a job, one that demands time, energy, commitment and knowledge.” Likewise, students should be advised that the course they are taking should not be perceived to be an easy course just because the word “sport” is part of the course title!