Today: More comments on pricing Framework for event management Exploring idea of sponsorship in sport

Most Common Pricing Strategy: What could be the result of an incorrect decision? If hunches are wrong, results can be costly What the Market Will Bear

Would any particular group be more sensitive to price change? Why? Special Pricing Factors to Consider Pricing based on user group Corporate/individual season-ticket holder User Segmentation Single-ticket purchasers Special groups Student packages [Un]bundling

Special Pricing Factors to Consider Time—bundled packages Prime vs. non-prime time Time and Place Smoothing Price scales in venue Key factors—proximity, line of sight, and demand

What are some key pricing concerns for a new MLS franchise? Understand the Escalator! Price hikes threaten to push consumers off escalator

Moving consumers up the escalator Heavy users Medium usersLight users Non-consumer sport and leisure fan Non-consumer, non- sport and leisure fan

Events: Frameworks and Guidelines

Perspectives and issues Some aspects to consider – all inter- related Type and scale of events Planning events Human resources – events personnel Marketing and forecasting demand Budgeting and financial management Sponsorship Management and evaluation

Event Checklist Objective – Why are you doing it? Define your event with a mission statement Know the rules and regulations that apply

Event Checklist Target your event to the customer Think about the personality Develop Budget

Budget Items Revenue  Sponsorship  Ticket sales  Merchandise  Media  Programs  F&B

Budget Items Expenses  General and administrative  Talent  Production  Facility  Television  Sales and Marketing

Sales and marketing expense Advertising Media public relations Advertising production Design fees Collateral materials Direct mail Sponsor costs Entertainment Post event parties Photographer Merchandise Tents Gifts

Budget Items Cash Flow  Chart when the cash is due to come in and when the major payments have to out

Magic Bag You have to create a sport event and develop identify the following: Objective Mission statement Organizational structure Target market Personality

On Sponsorships in Sports Define “Sponsorship” in Sport. What can be sponsored? Why sponsor? Why being sponsored? Why not?

FIFA Fan Fest Sponsorship

MasterCard sponsors the FIFA WC What in the organization’s marketing mix is such a sponsorship engagement part of? What do you think are their strategic objectives? Do you think a sporting event such as the World Cup is a good context for achieving these strategic goals? Why/Why Not?

FIFA Calls its sponsors “Commercial Affiliates” Currently divides them into the following 3 categories:  Official Partners (global marketing rights)  Official Suppliers (rights in the host country only)  Licensees

Official Partners ONLY Official partners of the 2006 FIFA World Cup™ home.fujifilm.com

FIFA restructuring : includes the flagship FIFA World Cups in 2010 and 2014 Classifies prospective marketing partners into three categories:  six FIFA Partners (broad range of FIFA activities such as competitions, special events or development programs as well as exclusive marketing assets).  six to eight FIFA World Cup™ Sponsors (rights are limited to the FIFA World Cup™ on a global basis. They consist of the right to category exclusivity, brand association, select marketing assets and secondary media exposure).  four to six National Supporters (category exclusivity, association, local marketing programs and domestic media exposure).

Discuss How can you understand conceptually the reasoning for restructuring the sponsorship pillar around the FIFA World Cup?

Endorsements: Sub- category of Sponsorships Beckham as endorser: Beckham  Opportunities  Threats