1. chapter 1 The Special Nature of Sport Marketing

2. Objectives To understand the market forces that create the need for enlightened marketing strategies in the sport industry To understand marketing myopia and other obstacles to successful marketing strategy To recognize the components of the sport product and of the sport industry To recognize the factors that make sport marketing a unique enterprise

3. What is Sport Marketing? All activities are designed to meet the wants and needs of sport consumers through exchange processes. Sport consumers are involved in sport through playing, officiating, watching, listening, reading, and collecting. Sport is exchanged to each of these participants in unique ways.

4. The Case of David Stern NBA Commissioner (Read page 3)) The NBA as a Global Marketing Force The NBA is changing to fit a global environment Global Competition grows products “both ways” – US and soccer Weathering Recession and Terrorism Forces– new challenges that stand in the way The Role of synergy of television and media – Sports and media feed off each….the NFL Grass roots struggles– Larger sports “choking out” smaller sports – “the tree that grows in the shadow of a larger tree”

5. Two Major Thrusts of Sport Marketing 1.The marketing of sport products to the sport consumer 2.The marketing of sport and nonsport products through sport https://youtu.be/IUdLlhTmenc

6. Challenges in Sport Marketing Marketing myopia Lack of market research Poor sales training and techniques

7. Marketing Myopia 1- A lack of foresight or vision in marketing ventures 2 - A focus on producing and selling goods and services rather than identifying and satisfying the needs and wants of consumers and their markets 3 - The belief that winning absolves all other sins 4 - Confusion between promotions and marketing 5 - Ignorance of competition inside and outside of sport 6 - A short-sighted focus on quick-return price hikes or investments such as sponsorships rather than long-term investments in research and in relationship marketing

8. The Slowly Growing Sport Marketing Profession Tex Rickard and Bill Veeck, sport promoters. By the mid-1990s, data from 291 NCAA Division I and II programs showed that "63% of the administrators in charge of sport marketing were employed full-time in that activity." Further, 20 percent of the positions were designated "sport marketing" (see endnote 38 in book). More professional sports organizations are employing a professional sales staff that enjoys an ongoing training and planning program. A number of new organizations have developed to initiate collective strategies to market segments of the sport industry. Sport marketing–specific publications have been created.

9. The Genius of Bill Veeck

10. Bill Veeck’s 12 Commandments for Successful Sport Marketing 1. Take your work very seriously. Go for broke and give it your all. 2. Never take yourself seriously. 3. Find yourself an alter ego and bond with him or her for the rest of your professional life. 4. Surround yourself with similarly dedicated soul mates, free spirits of whom you can ask why and why not and who can ask the same of you. 5. In your hiring, be color blind, gender blind, age blind, and experience blind. You never work for Bill Veeck. You work with him. 6. If you’re a president, owner, or operator, attend every home game and never leave until the last out. (continued)

11. Bill Veeck’s 12 Commandments for Successful Sport Marketing (continued) 7.Answer all of your mail; you might learn something. 8.Listen and be available to your fans. 9.Enjoy and respect the members of the media, the stimulation, and the challenge. The “them against us” mentality should exist only between the two teams on the field. 10. Create an aura in your city. Make people understand that unless they come to the ballpark or stadium, they will miss something. 11. If you don’t think a promotion is fun, don’t do it. Never insult your fans. 12. Don’t miss the essence of what is happening at the moment. Let it happen. Cherish the moment and commit it to your memory.

12. Uniqueness of Sport Marketing Let’s focus on these 4 elements 1.Sports Product 2.Sports Marketing 3.Finance 4.Sports Promotion

13. Sports Marketing Element #1 The Sports Product Definition : “Any bundle or combination of qualities, processes, and capabilities (goods, services, or ideas) that a buyer expects will deliver “want” and “need” satisfaction” Core benefits of Sports –Health (participation) –Entertainment –Sociability – connection to people –Achievement – the thrill of victory (continued)

14. Figure 1.1

15. The Sport Product Basics Playful competition, typically in some game form (a serious and a non-serious side) A separation from "normal" space and time Transports you away from current reality Regulation by special rules – refines itself Physical prowess and physical training Instinctual connection Special facilities and special equipment investment, experience unique settings

16. 5 Unique Qualities of the Sport Product An intangible, ephemeral (short-lived), experiential, and subjective nature – bitten by sports bug https://www.youtube.com/watch?v=sH6unNljq7E https://www.youtube.com/watch?v=sH6unNljq7E Simultaneous production and consumption no inventories of sports events Dependence on social facilitation – “herd mentality” Inconsistency and unpredictability Core product beyond marketers’ control

17. Have you ever won a championship? At what level? Describe the experience

18. Sports Marketing Element #2 Uniqueness of the Sport Market Sport organizations simultaneously compete and cooperate. (2 teams battle for wins) Product salience and strong personal identification lead many sport consumers to consider themselves experts. (See next slide) Demand tends to fluctuate widely. (health clubs in winter) Sport has an almost universal appeal and pervades all elements of life: –Eating and drinking (biggest sponsors) –Sexuality (on and off court) –Politics (politicians are recognized sports fans) –Religion (sports is many people’s religion)

19. Survey Says… Could you compete as a pro if you trained: 52% said “yes” Be a better referee? 72% Be a better coach? 51%

20. Pros vs Joes http://www.spike.com/episodes/0iubi3/pros- vs-joes-zo-in-your-face-season-4-ep-403

21. Sports Marketing Element #3 Uniqueness of Sport Finance It is difficult to price the individual sport product unit by traditional job costing. The cost of a ticket to a “big game” The price of the sport product itself is invariably quite small in comparison to the total cost paid by the consumer. - Football Saturday in Nebraska $400 in additional costs NYC - family of 4 to Knicks games $630 Indirect revenues are frequently greater than direct operating revenues. TV rights

22. Sports Marketing Element # 4 Uniqueness of Sport Promotion The widespread media exposure is a double- edged sword. (positive and negative publicity) Media and sponsors emphasize “celebrities” Super stars on the court/off the court – rare positive commodities Global Appeal Potential

23. Primary Marketing Function Model for the Sport Industry To provide "packaged" events for spectators at the venue or via the mass media To provide facilities, equipment, and programming to players, who then produce the game form To provide "packaged" games or events for spectators as well as facilities, equipment, and programming for players To provide general administrative support, control, and publicity to other sport organizations and people

24. Consolidation in the Sport Industry The team–media connection (Disney) Sporting goods (Spalding, MacGregor, Rawlings and Wilson…Nike, Reebok, Adidas and Under Armour) Ski Industry – in 1980 there were 1,000 ski resorts…now less than 500. 50 of top 75 owned by 6 companies Talent or events agencies – IMG and other mega agencies

25. All Access Oregon Football A Sport Marketing Example https://www.youtube.com/watch?v=e7MjXC Vin6ohttps://www.youtube.com/watch?v=e7MjXC Vin6o