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A Strategic Perspective on Sports Marketing

A Strategic Perspective on Sports Marketing. Objectives Define Sports Marketing Examine Growth Types of Sports Consumers Types of Sports Products

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A Strategic Perspective on

Sports Marketing

Objectives

Define Sports Marketing Examine Growth Types of Sports Consumers Types of Sports Products Elements of Strategic Marketing Process

What is Sports Marketing???

Brenda is a “pool player” Angela is a “league coordinator” Peter is an “event coordinator” Larry is “treasurer of the VNEA” Jessica is “the manufacturer of Falcon Cues” Jim is “the Canadian distributor of pool

tables”

Defining Sports Marketing

Sports marketing is the specific application of marketing principles and processes to sport products and to the marketing of non-sports products through association with sport.

Association

Brenda – is trying to secure sponsorship Angela – is recruiting players Peter – is trying to find the best venue for

tournaments Larry – is the sanctioning body of the league Jessica – wants the pool players to use her pool

cues Jim – Wants to sell pool tables to pool players,

league operators and event coordinators.

Webster’s defines sport as:

“a source of diversion or a physical activity engaged in for pleasure.”

Entertainment – is also defined as something diverting or engaging!

Comparison

EntertainmentMoviesPlays

TheaterOpera

ConcertsPlay = Script

Concert = Program

Sports

Spontaneous

And

Uncontrollable

Determining Emotions

Game is close and team wins

Excitement and Joy

Game is boring and team is loses

Entertainment benefit is different

A Marketing Orientation

Emphasis on satisfying the consumer

1. Intelligence generation

2. Intelligence dissemination

3. Responsiveness

Growth of the Sports Industry

The Sports Industry is the eleventh largest of all U.S. industry groups. 152 Billion (1995)

1. Growth in Attendance

2. Growth in Media Coverage

3. Growth in Employment

4. Growth in Global Markets

Structure of the Sports Industry

Learn by studying the different types of organizations and their involvement.

Local, Recreational, National, Youth, Intercollegiate, Professional and Sanctioning Bodies.

Simplified Model of Consumer-Supplier Relationships

Consumers Spectators – observe (in person or media)

-buy single tickets or season tickets Corporate/Business – blocks of tickets, corporate

box, Bring spectators to event Purchase rights to televise – controls how and

when the event will be viewed by spectators

Simplified Model of Consumer-Supplier Relationships

The Participant as Consumers Becomes active in sport at a variety of

competitive levels.

1. Unorganized Sport Participants Not sanctioned or controlled by external

authority.

Simplified Model of Consumer-Supplier Relationships

The Participant as Consumers2. Organized Sport Participants Amateur – no compensations Professional - compensation

Simplified Model of Consumer-Supplier Relationships

The Sponsors as Consumers

Sports Sponsorship

An exchange of money or product for the right to associate its name or product with a sporting event

Simplified Model of Consumer-Supplier Relationships

The Sponsors as ConsumersSports Sponsorship

Helps achieve Corporate Objectives. Public awareness Corporate image Community involvement

Simplified Model of Consumer-Supplier Relationships

The Sponsors as ConsumersSports Sponsorship

Helps achieve Marketing Objectives. Reach target market Brand positioning Increase Sales

Simplified Model of Consumer-Supplier Relationships

The Sponsors as Consumers Sports Sponsorship

Helps achieve Media Objectives. Generate awareness Enhance ad campaign Generate Publicity

Simplified Model of Consumer-Supplier Relationships

Products Events Sporting Goods Personal training for sport Sport Information

Simplified Model of Consumer-Supplier Relationships

The Sports Product

Is a good or service, or any combination of the two that is designed to provide benefits to a sports spectator, participant or sponsor.

Simplified Model of Consumer-Supplier Relationships

Goods/Service

Goods = Tangible/physical

Tennis ball, skates, etc.

Service = Intangible/non-physical

Competitive event, lesson

Simplified Model of Consumer-Supplier Relationships

Types of Sports Products1. Sporting Events2. Athletes3. ArenaSporting Goods1. Equipment2. Licensed Merchandise3. Collectables and Memorabilia

Simplified Model of Consumer-Supplier Relationships

Producers/Intermediaries Ownership Sanctioning bodies Sponsors Media Agents Equipment manufacturers

Simplified Model of Consumer-Supplier Relationships

Agent Responsibilities Determine value of the player’s service Convince a club to pay for the player Develop a compensation package Protect players rights Counsel the player re- career and financial Assist player to earn extra income, endorsements

speeches and appearances

Sports Marketing Exchange Process

Multiple exchanges occur

Something of Value

Money

Time

Personal Energy

Entertainment

Better quality of life

Enhanced Image

Exchange Players

Sports Spectators

Sports Participants

Organizations

Sporting events

Sporting good manufacturers

Teams