Unit 1

Goals  Define sports marketing.  Explain the value of sports marketing to the economy. Chapter 1 Slide 2

 Sports are big business at many universities throughout the country. Basketball has become a big money maker for many colleges.  For the school year, the University of Arizona men’s basketball program generated revenue of $16.6 million and a profit of $12.5 million.  They have had sell-out games for almost 20 years. Courtside seats can bring in as much as $30,000 per pair.

 By playing in the NCAA tournament the school secured money for their school from CBS, which televised the tournaments and distributed more than $400 million to the NCAA conferences  Big business can mean big salaries for college coaches. Tom Crean earned $1.65 million in 2005 at Marquette University. He has coached the Golden Eagles to 3 NCAA tournament appearances and a final four appearance.

 1. Should successful college coaches earn more than $1 million a year?  2. Describe a typical college basketball fan.

 demographics  common characteristics of a group age, marital status, income, education  sports marketing  using sports to market products Chapter 1 Slide 6

 continual innovation provides new opportunities  extreme sports Wrestling XFL Sports Marketing\XFL Ad.flv1.2 Sports Marketing\XFL Ad.flv  arena football Grand Rapids Sports Marketing\AFL Grand Rapids.flv1.2 Sports Marketing\AFL Grand Rapids.flv League Promo Sports Marketing\AFL Promo Video.flv1.2 Sports Marketing\AFL Promo Video.flv  Arena football is one of the fastest growing sports in the country. (founded 1987) Tickets sell for an affordable price ($17.50) Players meet fans and sign autographs after every game Clock does not stop and high scoring Chapter 1 Slide 7

 What has made arena football successful?

 gross impression  the number of times per advertisement, game, or show that a product or service is associated with an athlete, team or entertainer Every time your brain sees a product or company logo on the back of a shoe, in a movie scene, or on a license-plate holder on a car your brain records that image. Many college and pro teams have company or product logos on their uniforms. Chapter 1 Slide 9

 Fans want products and services that identify them with winning teams and athletes.  Marketing efforts may need to be tweaked based on changes in winning trends.  If a major athletic company has a successful marketing campaign, competitors are likely to increase their marketing efforts.  Competition must be monitored so that a company’s marketing can remain unique Chapter 1 Slide 10

 Why are gross impression and timing important in sports marketing? Chapter 1 Slide 12

 Gross impression keeps the product upfront in the minds of sports fans.  Successful merchandise sales depend upon having a product available when it is in high demand.

 Sports marketing is a multi-billion-dollar global industry that has a definite impact on the economy. Chapter 1 Slide 14

 Emotional connections to teams motivate fans to buy tickets to games.  For example how many people in here are loyal to the Lions (even though they are terrible)?  Marketers try to appeal to the emotions of fans Chapter 1 Slide 15

 High profile sporting events generate strong promotional revenues for broadcasters.  The Super bowl, BCS, and March Madness attract the attention of large sports minded audiences. Which in turn, attract high-paying promoters Chapter 1 Slide 16

 Name three ways that sporting events help boost the local economy and/or national economy. Chapter 1 Slide 17

 Sporting events result in fans spending money on a wide array of related products and services that benefit the economy.  Food  Parking  Hotels