Chapter 2 – College and Amateur Sports Sports Marketing

OBJECTIVES: Explain the importance of the NCAA and team rankings to college sports Define market segmenation Discuss the growing market surrounding women’s college athletics EQ: What are the five different segments of market segmentation?

2.1 Marketing College Athletics Effects of Collegiate Sports A winning college team has economic implications not only for its school but also for the community, region, and state. University offers products/services to fans, but fans also expect an adequate number of hotel rooms, restaurants, gas stations, and shopping malls, etc.

Effects of Collegiate Sports (cont’d) Media attention – can benefit a college community from the success of its primary sports program Promotion – any form of communication used to inform, persuade, or remind consumers about an organization’s goods or services Examples – promotions to attract alumni back to homecoming games, having a concert/special event after a game, half-time events: Hockey shot Prank half-court shot

Effects of Collegiate Sports (cont’d) Marketers strive to promote a strong public image of the team. Print schedule cards to distribute to students Promotional posters around campus of sports teams Apparel and other merchandise

Rules and Rankings National Collegiate Athletic Association (NCAA) -governing body of most college and university athletic programs. creates and enforces guidelines and rules that schools must follow in order to remain in good standing. PSU sanctions -Guidelines: recruitment, gender equity, scholarships, gambling prohibitions, and many ethical issues.

NCAA guidelines Any college or university may join the NCAA if it meets the following four conditions: 1. it obtains accreditation by the recognized accrediting agency of its region. 2. it offers at least four intercollegiate sports for men and four for women (one in each of the three traditional seasons). 3. it complies with all NCAA rules. 4. it cooperates with the NCAA enforcement program and accepts penalties imposed by that program. -NCAA serves as a magnet for important sponsors such as: American Express, Holiday Inn, Hershey’s, Penzoil

College Team Rankings Determined by sports magazines and nationally recognized sports enthusiasts Based on past team performance, talent, team schedules, and personal preference. Occur before the season begins each year. Companies fill sports mags, etc. with ads for their products/services because fans enjoy reading these publications.

Why So Much Emphasis? A highly ranked team builds excitement and strong attendance, creating fan loyalty, major tv exposure, and more revenue for the college.

Why So Much Emphasis? (cont’d) Post-season bowl games pay participating schools enormous amounts of money. Bowl Championship Series (BCS)- Was established to pair the two best college football teams at the end of the season There are four BCS sponsored bowls (Rose, Orange, Sugar and Fiesta) and one Championship game Highly disputed because there is no playoff system, teams are picked by their rankings and some say, favoritism.

Why So Much Emphasis? (cont’d) The four BCS bowls paid each participating team $13.5 million in 2003. 28 bowls paid more than $170 million to schools and their conferences at the end of the 2002 football season. Think there is any incentive to get into a bowl game now?

Being #1 Has Lingering Effects A championship can bring favorable national recognition after the celebration is long over. Retailers carry national champs sportswear and memorabilia Being the “official sportswear manufacturer” for a national champ is GREAT advertising!

**Market Segmentation** market segment — is a group of individuals within a larger market that share one or more characteristics. Example – Sports Illustrated magazine putting different sports stars on the cover in different parts of the country Example - millions of people in the US enjoy football, but a smaller group specifically enjoys the Philly Eagles. A media guide covering the Eagles will be sold out in the PA market, but would flop in Dallas.

Five Elements of Market Segmentation 1. Geographic segmentation—dividing the markets into physical locations, such as eastern, northern, southern, and western regions of the US or the urban and rural areas of a state. -can occur within a single city -sports fans are likely to be loyal to their own region when purchasing products.

Five Elements of Market Segmentation Demographic Segmentation—focuses on information that can be measured such as income, profession, gender, and education

Five Elements of Market Segmentation Psychographics—focus on characteristics that cannot be measured, such as attitudes and lifestyle choices. “Holy Day” Ballgame? Consumers make decisions on emotions – they will spend more money on a team’s clothing after a win than a loss

Five Elements of Market Segmentation Product Usage—reflects what product you use, how often, and why. marketers use this info. to encourage you to use your preferred products more often or to try new, similar, or competing products.

Five Elements of Market Segmentation Benefits Derived—the value people believe they receive from the product or service. Enjoyment received from a good game or from a sweatshirt with a team logo rather than the same sweatshirt with no logo.

Women’s College Sports 1981—formal recognition from the NCAA. Nineteen championship events were added to women’s sports programs. *1987—NCAA’ s Women’s Enhancement Program created. offered opportunities for: post-grad scholarships internships at the NCAA national office career help for women who want to continue in intercollegiate athletics after their playing eligibility is over.

Women’s college sports (cont’d) Increased fan support With NCAA recognizing women’s college sports, attendance has gone up like crazy Marketing opportunities in women’s sports Before - clothing, beauty products, jewelry, etc. Now – soccer shoes, field hockey sticks, golf clubs, bats, racing bikes.

Chapter 2.2 – Economic Impact of College Athletics Sports Marketing

OBJECTIVES: Understand the benefits of college sports to the home community Identify benefits of sponsorship and licensing to a team Explain the reaons for realignment of college conferences EQ: How does a sports team benefit a community?

Opening Act pg. 41 A college sporting event provides a perfect setting for advertising all kinds of goods and services. Sponsors have banners throughout the stadium, are announced during the game, or are listed in the game program.

Benefits to the Community Good for Town Strong business sales Tickets sponsored by local businesses and major corporations Car dealer promotions having coach/player at their dealership Good for Stadium Major sporting events hold captive audience Vendors can charge high prices for food and beverages.

Sponsorship All about financing or generating revenue for college program Corporations benefit selling their prods/services Name-brand apparel is visible Hope that fans will go out and buy that brand because the players are seen wearing it Use creative promotional strategies

Licensing- Legal right to reproduce a team’s logo in exchange for payment Mission of Athletic Licensing Office Protect the use of name and symbols Ensure the public can properly identify and associate logos Sales increase after national championship Updating logo increases sales Each item containing logo provides income to the university PSU Licensing Office

Conference Realignment Conference- Group of college teams within the same region Created in order to have playing associations of manageable sizes Assign competing teams in organized and fair manner EX: Big 12, PAC 10, SEC Changes are made to increase revenue and television share

Lesson 2.3 Amateur Sports

Objectives Discuss marketing and sponsoring of amateur sports Understand the economic benefits of amateur sports Essential Question – How are amateur sports marketed?

Popularity of Amateur Sports Amateur Athlete-someone who does not get paid but plays for enjoyment, challenge, or both Can be of any age Physical challenges are not prohibited

Marketing and Sponsoring Must have top quality equipment Must have money necessary to compete Significant income for the following: Athletic uniforms Shoes Equipment Lawn chairs Portable stadium seats Coolers

Promoting Amateur Sports Locally Fundraising charities, marathons Business sponsor local teams on uniforms National TV shows, movies, athletes and media start carry out promotional strategies

Economic Benefits Fastest Growing Amateur Sports Soccer (wholesome athletes & families) Ice Skating (rinks in shopping malls) Basketball (Pickup games) Baseball/Softball (tournaments) Fans are limited to just watching professional sports, but almost anyone can participate in amateur sports.