Chapter 4 Marketing Products and Services Through Sports

Chapter Overview 4.1 Using Sports to Market Products 4.2 Sponsorship 4.3 Promotion 4.4 Endorsements

Lesson 4.1 Using Sports to Market Products

Market Audience Size Million Golfers, 152 Billion spending by sports advertisers ,800 Hours of sports on TV If you want to see the team, game, or athlete, you have to see the ad

Emotional Ties

New Market Power Women make up 80% of all purchasing decisions Men have larger portion of promotion and endorsement dollars

Marketing Theory Company buys rights to advertise during a game/use a logo on products it makes. TV/Radio networks sell broadcast time to teams and their sponsors. Cities buy the rights to host teams; must sell this idea to the taxpayers. Consumer buys the products advertised during the game.

Lesson 4.2 Sponsorship

What is a Sponsor? Person, organization, or business that gives money or donates p/s to another person, organization or event in exchange for public recognition.

Reasons for Sponsorship Inc. sales Introduce new p/s Compete where potential customers are in 1 place Identified with an event Earn goodwill Show commitment Enter new market Entertain clients, employee,potential customers Enhance co. image

Niche Marketing Researching a target market to determine what a small group of people will buy. Men and Women in different age groups ; 25-34; Auto Racing #1 for most loyal fans. Young Men most sought after. X-Games, Gravity Games.

Can You Sponsor Anything? Affinity Sports: niche marketing whose participants are passionate about their sports. Ex???? Loss of Sponsors: Tobacco and Alcohol bans and Ad blackouts.

Lesson 4.3 Promotion

All About Promotion Publicizing or advertising a p/s or event with the goal of selling it. Purpose: Make the consumer want the product. Goal: Inc. sales/attendance through persuasion. Objective: Earn $$$$$$

Promotion Plan Personal Selling Advertising Publicity Sales Promotion

Personal Selling In-person, face-to-face communication between a seller and a customer. Advantage: Overcome hesitation on the part of the consumer Seller must be familiar with the product and must want to sell it.

Advertising Publicity Paid communication between product maker or seller and the audience or customer. Clearly explain the benefits of product. Can occur anywhere. Free notice about a p/s or event. Articles, sound bites Keeping your name, event, organization in public view.

Sales Promotion Any action or communication that encourages a consumer to buy a product. Limited memberships, giveaways, coupons, free samples.

Lesson 4.4 Endorsements

What is an Endorsement? Person’s public expression of approval or support for a p/s. Promotional tool rather than form of sponsorship. Legal restrictions on endorsements listed on page 90.

Athlete Endorsements Advantages Buy if endorsed by celebrities Less likely to turn off commercial with celebrity Tend to believe the celebrities Disadvantages Very expensive May not agree to endorse only 1 product Risk of negative publicity

Should They Speak Out? Dennis Rodman? Controversial for all? Is there a moral obligation to speak out on issues? Tiger Woods and Nike for worker exploitation?

What To Look For? Positive, charismatic, trustworthy image, respected by consumers Celebrity most consumers know Celebrity whose career is in process Presents few risks Has a believable relationship with product