1-1 Chapter 1 An Introduction to Sports Marketing McGraw-Hill/Irwin©2007 The McGraw-Hill Companies, All Rights Reserved

1-2 Marketing Domains Primary Focus of Marketing Efforts –Marketing through Sports –Marketing of Sports

1-3 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

1-4 Marketing Through Sports Sponsorship Strategies –Traditional Coca-Cola and the Olympics –Venue Naming Rights Coors Beer and Coors Field (Denver, Colorado) –Licensing Rival (Crock Pots) and NASCAR –Endorsements Tag Heuer Watches and Tiger Woods

1-5 Marketing of Sports 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 Gold’s Gym –Sporting Goods and Apparel Adidas Football and Team Uniforms

1-6 Spectator Sports

1-7 Local Events Draw Fans from Small Geographic Area Promote Using Local Media Examples –Minor League Team –High School Sports –Local Amateur Competitions

1-8 Regional Events Little National or International Interest Marketers Attempt to Move Event Up Examples –Most Collegiate Sports Teams –(Most) Marathon Races

1-9 National Events Large Portion of One or Two Countries Often Large Media Presence Examples –Stanley Cup Playoffs (Ice Hockey) –NCAA Final Four (College Basketball) –The Ashes (England & Australia Cricket)

1-10 International Events Appeal Transcends National Borders Large Media Presence Venue often Shifts Among Countries Examples –Ryder Cup Golf Tournament –World Cup of Rugby –The Commonwealth Games

1-11 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

1-12 Participation Sports Market the Idea of Participating –Play more Golf –Engage in More 10-Pin Bowling Market Venues –Build and Market a New Golf Course –Building Bowling Facilities in Casinos

1-13 Most Popular Participation Sports

1-14 Sporting Goods and Apparel Equipment –Golf Clubs, Footballs, Exercise Equipment Clothing –Participation-Based: Softball Uniform –Fashion-Based: Logo Shirt Category Will be Expanded Later in Book

1-15 Why Teach Sports Marketing? Huge Economic Impact Little Focus on Sports Industry in Curricula More Emphasis on the Bottom Line

1-16 Evolution: Sports Marketing Marketing of Sports Taught First Marketing Through Sports Added Leisure Emphasis Early Leisure and Business Focus Today

1-17 Economic Impact

1-18Components Direct Spending by Consumers –Tickets, Hotels, Restaurants, Gas, Rental Cars, Wages Paid to Workers, Participation Fees (e.g. Ski Lift Tickets; Golf Greens Fees) The Multiplier Effect –Recognizes That Money Turns Over in the Economy: (Typically between 1.3 and 3 Times)

1-19 The Multiplier Effect

1-20 One-Day Events Event may occur over one day, but impact may cover extended period of time NFL Super Bowl Indianapolis 500 Championship Boxing Match

1-21 Multiday Events Events encompass 2 or more days May be at single or multiple venues Olympics Masters Golf Tournament America’s Cup Yachting Regatta World Cup of Soccer

1-22 Participation Sport/Recreation Local Resident Contributions –Golf fees, restaurant, activity-based shopping Vacation Expenditures Participation Fees –Tournament entry, rental equipment

1-23 Professional Team or Arena Local Wages for Employees Tax Revenues Expenditures by Visitors

1-24 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 2003 is approximately $220 Billion

1-25 Career Opportunities Internships –Variety of Positions –Often Unpaid –Establish Network of Associates - References Sales –Season Tickets, Group Tickets, Sponsorship –Suites, General Retail

1-26 Career Opportunities Marketing Research Hospitality Facilities Management Public Relations Agents Retail Store Operations Participation Center Management

1-27 Career Opportunities Sponsorship Purchasing –Making Good Decisions –Investment Decisions Sponsorship Evaluation –Postevent Measurement –Estimation of Return on Sponsorship Investment

1-28 Career Trends More Jobs More International Opportunities More Focus on Selling Through Sports More Emphasis on Business Aspects

1-29 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.