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Chapter 2Chapter 2

Marketing Through Marketing Through SportsSports

McGraw-Hill/Irwin ©2007 The McGraw-Hill Companies, All Rights Reserved

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Sports Marketing EnvironmentSports Marketing Environment

• Two key dimensions– Products

• Non-sports products• Sports products

– Integration• Traditional strategies• Sports-sponsorship-based strategies

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Non-sports ProductsNon-sports Products

• Examples of non-sports products often marketed with a sports platform– Cars– Beers– Colas– Watches– Fast foods

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Sports ProductsSports 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

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Traditional StrategiesTraditional Strategies

• Focus on two basic components of any marketing strategy– Target market– Marketing mix (4 Ps)

• Product• Price• Promotion• Place (Distribution)

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Sports Sponsorship-Based Sports Sponsorship-Based StrategiesStrategies

• 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)

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The Sports Marketing The Sports Marketing Environment MatrixEnvironment Matrix

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Mainstream StrategiesMainstream 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

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Target Market AccessTarget 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

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Target Marketing Applications Target Marketing Applications Using Mainstream StrategiesUsing 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

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Examples of Product Decisions in Examples of Product Decisions in a Mainstream Strategya 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

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Examples of Pricing Decisions in a Examples of Pricing Decisions in a Mainstream StrategyMainstream 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

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Incorporating Promotion Decisions Incorporating Promotion Decisions in a Mainstream Strategyin a Mainstream Strategy

• Traditional promotional mix components – Advertising– Personal selling– Sales promotion– Public relations / Publicity

• Excludes sponsorship– Sponsorship a domain-focused strategy

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Examples of Advertising in Examples of Advertising in a Mainstream Strategya 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

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Examples of Personal Selling in Examples of Personal Selling in a Mainstream Strategya Mainstream Strategy

• Salesperson providing tickets for a sports event to customers and prospects– Possibly ethically problematic

• Conducting business on a golf course

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Examples of Sales Promotion in Examples of Sales Promotion in a Mainstream Strategya 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

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Examples of Sales Promotion in Examples of Sales Promotion in a Mainstream Strategy (cont’d)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

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Using Public Relations/Publicity in Using Public Relations/Publicity in a Mainstream Strategya 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

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Emerging Promotional Tools in a Emerging Promotional Tools in a Mainstream StrategyMainstream 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

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Examples of Place Decisions in a Examples of Place Decisions in a Mainstream StrategyMainstream 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

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Closing CapsuleClosing 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