© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 1 CHAPTER 4 CHAPTER 4 Marketing Products and Services Through Sports Using Sports to Market Products Sponsorship Promotion Endorsements

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 2 LESSON 4.1 LESSON 4.1 Using Sports to Market Products GOALS Understand the enormous market for sports. Explain emotional ties to sports and earning power of women in sports. Discuss the marketing cycle.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 3 Market Audience Size The audience Sports events attract more viewers and participants than any other form of entertainment today An audience of avid fans is captive

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 4 The Power of Sports Power of emotional ties People experience intense emotions over sports Pride in their city Rioting after championship games Fans may overlook athlete’s bad behavior Power of new markets Rising popularity of women’s athletics Title IX

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 5 Marketing Cycle A company buys the right to advertise or use a logo on products Television and radio stations and networks sell broadcast time Cities buy the rights to host teams Consumers buy the products advertised

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 6 How Companies Decide Outside consulting firms Sports marketing groups

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 7 LESSON 4.2 LESSON 4.2 Sponsorship GOALS Understand sponsors and their investments. Discuss prohibited sponsorship.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 8 Sponsors and Investments Reasons for sponsorship Need for profit Sponsorship in niche markets Examples of niche markets

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 9 Reasons for Sponsorship Increase sales Introduce a new product or service Compete where potential customers are in one place Identify an event with a target market Earn the goodwill of the audience Show community commitment Enter new markets Entertain clients, employees, or potential customers Enhance the companies’ image

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 10 Need for Profit Guaranteed amount of exposure, recognition, or acknowledgement Market research measures the results of its sponsorships Return—the profit the sponsor earns from its support of an athlete or team

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 11 Sponsorship in Niche Markets Niche marketing—researching a target market to determine the specific items or services a small group of people will buy

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 12 Examples of Niche Markets NASCAR X Games

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 13 Can Anyone Sponsor Anything? Newer sports offer attractive opportunities for smaller businesses Minor league baseball Affinity sports—niche markets whose participants are just as passionate about their sports as are enthusiasts of the more traditional sports Loss of sponsors

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 14 LESSON 4.3 LESSON 4.3 Promotion GOALS Discuss promotion and its objectives. Understand the tools used in promotion.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 15 Promotion Selling—the exchange of a product or service for another item of equal or greater value Promotion—publicizing or advertising a product, service, or event with the goal of selling it Promotion example

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 16 Promotion Targets Primary goal of promotion is to increase sales or attendance Winning new customers Maintaining customer satisfaction, loyalty, and repeat business

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 17 Promotion Objectives Decide on target market Decide on the message Determine what it wants consumers to do

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 18 Promotional Tools The four elements in a promotion plan are Personal selling Advertising Publicity Sales promotion

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 19 Personal Selling Personal selling—in-person, face-to- face communication between a seller and a customer

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 20 Advertising Advertising—paid communication between the product maker or seller and the audience or customer

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 21 Publicity Publicity—any free notice about a product, service, or event

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 22 Sales Promotion Sales promotion—any action or communication that will encourage a consumer to buy a product

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 23 LESSON 4.4 LESSON 4.4 Endorsements GOALS Describe endorsements and their restrictions. Describe qualifications for endorsers.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 24 What Is an Endorsement? Endorsement—a person’s public expression of approval or support for a product or service

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 25 Legal Restrictions on Endorsements Endorsements must always reflect the honest opinions, findings, and beliefs or experience of the endorser. The endorser must have real experience with the product. The endorsements may not contain any deceptive or misleading statements. The statements must be able to be substantiated by the advertiser.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 26 Legal Restrictions on Endorsements (continued) Endorsements may not be presented out of context or reworded so as to distort in any way the endorser’s opinion. The endorser must use and continue to use and believe in the product for as long as the endorser is used in the advertisements. If the product changes in any way, the company must notify the endorser, and the endorser must continue to use and believe in the new or revised product.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 27 Athlete Endorsements Advantages and disadvantages How controversial can an endorser be? Should endorsers speak out on anything besides the product? What businesses look for in an endorser

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 28 Advantages and Disadvantages Consumers will buy products endorsed by celebrities more often than products that are not so endorsed Viewers, listeners, and fans are less likely to turn off a commercial featuring a celebrity than a commercial featuring a fictitious character Consumers tend to believe celebrities, especially those who are chosen for their good public image

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 29 How Controversial Can an Endorser Be? A difference between harmful endorsement and questionable endorsement Dennis Rodman

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 30 Should Endorsers Speak Out? Debate over whether celebrity endorsers have a moral obligation to speak out on controversial topics Athletes are not experts in the field of politics, labor, human rights, or global issues Athletes have a responsibility to know what’s going on with the business they endorse

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 31 What Businesses Look for in an Endorser Positive, charismatic, trustworthy image A celebrity most consumers know A celebrity whose career is in process (not retired) Presents few risks Believable relationship with the product