2-1 Chapter 2 Marketing Through Sports McGraw-Hill/Irwin©2007 The McGraw-Hill Companies, All Rights Reserved

2-2 Sports Marketing Environment Two key dimensions –Products Non-sports products Sports products –Integration Traditional strategies Sports-sponsorship-based strategies

2-3 Non-sports Products Examples of non-sports products often marketed with a sports platform –Cars –Beers –Colas –Watches –Fast foods

2-4 Sports Products Broad array of products associated with spectator and participation sports Examples –Tickets to the World Cup Final –A new golf course –A logo shirt –A pay-per-view boxing match

2-5 Traditional Strategies Focus on two basic components of any marketing strategy –Target market –Marketing mix (4 Ps) Product Price Promotion Place (Distribution)

2-6 Sports Sponsorship-Based Strategies Marketing products through higher level of integration: Sports Sponsorship –Traditional (Coca-Cola & the Olympics) –Endorsements (Pepsi & Shaquille O’Neal) –Venue Naming Rights (FedEx Field) –Licensing (Rival Crock Pots & NASCAR)

2-7 The Sports Marketing Environment Matrix

2-8 Mainstream Strategies Non-sports products using traditional marketing strategy elements –Target Market – Ad in Golf for Women magazine –Product – Clothing with sports design –Distribution – Restaurant at sports arena –Price – Discounts for patrons in uniforms –Promotion – Ad featuring a sports setting

2-9 Target Market Access Segment the market Select appropriate target markets –Identify target market for product reachable via a sports platform –Examples: Minivan ads featuring kids playing soccer Investment company ads featuring potential investors chatting during a gym workout

2-10 Target Marketing Applications Using Mainstream Strategies Other examples: –Advertising beer during TV broadcast of a baseball or rugby game –Luxury automobile ad featuring golf in its brochures that promote its cars –Energy drink ads on billboards along a marathon race route

2-11 Examples of Product Decisions in a Mainstream Strategy Packaging featuring sports images Sports bar showing sports events on TVs Hospitality package featuring tickets to a sports event (e.g., golf packages) Credit card company providing special access to tickets for sports events University offering course/degree in sports marketing

2-12 Examples of Pricing Decisions in a Mainstream Strategy Company offers discounts to venue operators to have its food or beverage products sold on site Hospitality industry (restaurants & hotels) provides discount prices for certain categories of athletes or fans

2-13 Incorporating Promotion Decisions in a Mainstream Strategy Traditional promotional mix components –Advertising –Personal selling –Sales promotion –Public relations / Publicity Excludes sponsorship –Sponsorship a domain-focused strategy

2-14 Examples of Advertising in a Mainstream Strategy Advertise during the Super Bowl Advertise in sports magazines Advertise on sports talk radio Advertise on Dorna boards at sports venues Creative aspect of ad featuring actors in sports setting

2-15 Examples of Personal Selling in a Mainstream Strategy Salesperson providing tickets for a sports event to customers and prospects –Possibly ethically problematic Conducting business on a golf course

2-16 Examples of Sales Promotion in a Mainstream Strategy Specialty advertising –Calendar featuring marketer’s logo and a team’s schedule Coupons –Distributed at game or in package Distribute free samples at sports venue Consumer expo –Golf show for public

2-17 Examples of Sales Promotion in a Mainstream Strategy (cont’d) Customer loyalty program –Credit cards that accumulate benefit points Contests –Chance to win event tickets Point-of-Sale (POS) Display –Supermarket signage featuring sports themes Premiums –Sports-oriented giveaways

2-18 Using Public Relations/Publicity in a Mainstream Strategy Objective of PR is to disseminate positive publicity through the media Examples: –Aligning with sport for a charitable cause (i.e., cause related marketing) MLB and breast or prostate cancer awareness –Press release regarding support of a local athlete

2-19 Emerging Promotional Tools in a Mainstream Strategy Product Placement –Product featured in movie or TV program Virtual Advertising –Computer-generated signage on field of play Internet –Advertise on sports web site Hospitality –Staff tent at golf tournament

2-20 Examples of Place Decisions in a Mainstream Strategy Selling non-sports goods and services at a sports venue –e.g., foods and beverages Selling non-sports goods at a retail store specializing in sporting goods –Especially useful for introduction of new product

2-21 Closing Capsule Many marketing efforts for non-sports product try to influence consumer purchases by using a sports platform Mainstream strategies use traditional marketing strategy elements–target markets and the marketing mix–to sell non-sports products