Intro to Sport Marketing

7/28/2019 Intro to Sport Marketing

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Intro to Sport Marketing


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Intro to Sport Marketing

Agenda Current Events

Ice to the Eskimos (Chapters 1 & 2)

Size of the Sport Industry

Differentiate between Sport Product & Traditional

Goods & Services Differentiate between Fans & Customers

Differentiate between Marketing & Sport Marketing

2 Thrusts of Sport Marketing

Break Sport Sponsorship Proposal Assignment

Marketing Plan Assignment


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U.S. GDP by Industry (Milano & Chelladurai, 2011)Rank Industry Value ($B)

1 Real Estate 1461

2 Retail Trade 812

3 Wholesale Trade 723

4 Construction 608

5 Professional, Scientific, & Technical Services 542

6 Federal Reserve banks, Credit Intermediation & Related Activities 506

7 Ambulatory Health Care Services 433

8 Hospital & Nursing & Residential Care Facilities 3340 [sic]

9 Administrative Support Services 344

10 Broadcasting & Telecommunications 324

11 Other Services, Except Government 288

12 Insurance Carriers & Related Activities 264

13 Utilities 249

14 Management of Companies & Enterprises 234

15 Food Services & Drinking PlacesSPORT (Liberal Estimate)

225207

16 Manufacturing Chemical ProductsSPORT (Moderate Estimate)

199189

17 Securities, Commodity Contracts, & Investments 184

18 Legal ServicesSPORT (Conservative Estimate)

176168

19 Manufacturing Food & Beverage & Tobacco Products 164

20 Oil & Gas Extraction 150

21 Publishing Industries 142

22 Computer Systems Design & Related Services 133

23 Manufacturing Computer Electronic Products 132

24 Manufacturing Fabricated Metal Products 123

25 Truck Transportation 119


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Why are these the wealthiest franchises?How many of the top 20 are in the NFL?

FORBES FRANCHISE VALUESTeam League Owner ValueWashington Redskins NFL Daniel Snyder $1.1 billionDallas Cowboys NFL Jerry Jones $923 millionHouston Texans NFL Robert McNair $905 millionNew England Patriots NFL Robert Kraft $861 millionPhiladelphia Eagles NFL Jeffrey Lurie $833 millionDenver Broncos NFL Pat Bowlen $815 millionCleveland Browns NFL Randy Lerner $798 millionChicago Bears NFL McCaskey Family $785 millionTampa Bay Buccaneers NFL Malcolm Glazer $779 millionBaltimore Ravens NFL Steve Bisciotti $776 millionMiami Dolphins NFL Wayne Huizenga $765 millionCarolina Panthers

NFL

Jerry Richardson

$760 million

Green Bay Packers NFL Public $756 millionDetroit Lions NFL William Ford $747 millionTennessee Titans NFL Bud Adams $736 millionNew York Yankees MLB George Steinbrenner $730 millionPittsburgh Steelers NFL Dan Rooney $717 millionSeattle Seahawks

NFL

Paul Allen

$712 million


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10 Differences Between TraditionalGoods/Services and the Sport Product

1. Often sport organizationssimultaneously compete andcooperate

2. The sport product is publiclyconsumed

3. Sport consumers often considerthemselves experts

4. Sport consumer demand fluctuateswidely

5. Fans have an emotional tie totheir favorite team/sport


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10 Differences Between TraditionalGoods/Services and the Sport Product

6.The sport product is perishable7. The Sport product is intangible and

subjective

8. The sport product is unpredictable

and inconsistent

9. The sport marketer has little or nocontrol over the core product andmust concentrate on product

EXTENSIONS.

10. Sport is universal and pervades allelements of life


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Wait, You Pay Your Competitor?2013 Week 1 payouts:

Ohio St paying Buffalo $1M,

Miami paying FAU $500K,

Oregon paying Nicholls St $450K,

Kansas St paying NDSU $350K

To Beat You???Wins by FCS schools with paychecks:

E. Washington ($450K)over Oregon St.

McNeese St ($400K) over USF

NDSU ($350K) over Kansas St.

Towson ($275K) over U Conn


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How are sports FANS different from customers?

If you get a good set of tires for your car, you aresatisfied.

Things you will never say:

Let me show you my new tires.

This last month I had the best electricity Ive ever had.

Hey, lets all go grocery shopping. Ill set up the tailgating in theparking lot.


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How are sports FANS different from customers?This morning I used Crest.

Do you like Crest?

When are you going to use Crest again? Do you think it will perform well again?

Would you like to use Crest together?

Did you hear them talking about Crest

on Toothpaste Talk Radio this morning?

Where did you get that throwback Crestjersey?

You repeatedly pay for cable.

You are loyal to your anti-perspirant.

You identify with your team.


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Top 10 Differences Between Goods/Services Marketing and Sports

Marketing

Dimension Goods/services Sports & Entertainment

1 Purchasers Customers Fanatics

2Adoption Loyaltyrepeat purchasers of the

same brand (viz., lack of switching

behavior)

Psychological identification with

individuals and teams that goes

beyond mere loyalty

3 Promotion & Media Owner pays media for promotion Fans, sponsors, and media pay to

promote team/event

4 Distribution Channel Static; More site-limited Mobile; more flexible

5 Product Adapted Global

6 Price Customer pays a given price for

good/service

Two-part: Fans frequently pay for

the rightto pay for tickets

7 Facilities Corporate owner buys/builds own

facilities

Government (taxpayer) typically

pays for facilities

8 Competition Individual branding in competitive

markets

Cooperative contractual

relationshipsmonopoly power &

anti-trust exemption

9 Exchange Principally economic exchange Principally social exchange

10Employees Contractual power favors owners Contractual power favorsemployees (players)
http://www.youtube.com/watch?v=tRBDMMVctu8&feature=youtu.be


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So, is sports marketing

different?Sports marketing is building a highly identified fan

base such that fans, sponsors, media and

government pay to promote and support theorganization for the benefits of social exchange andpersonal, group and community identity within a

cooperative competitive environment.

M k i O i i


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Marketing OrientationConcentrating on understanding the consumer and providing asports product that meets consumer needs while achievingorganizational objectives.

For Example:The Boston Red Sox, despite a tremendous ticket-demand everyyear, still work hard on fan relations and marketing initiatives.

They know that they cant take the fans for granted.

They worked with a graphic designer to make their tickets looksharper.

A team vice president taste-tests the parks concession food

Theyve extended the box office hours so fans can buy tickets on theway out of a game

(Boston Globe, 7/02)

M k ti M i


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Marketing Myopia

Marketing myopia is the practice of defining a business interms of goods and services rather than benefits sought by

customers.

Myopic sport organizations

Focus on producing and selling rather than meeting needs ofcustomers

Rely on winning

Confuse marketing with promotions

Ignore competitionFocus on the short term rather than the long term


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Marketing Myopia

Does winning guarantee increased attendance?

The Edmonton Oilers won five Stanley Cups in sevenyears season ticket sales went down after eachyear.

Said one Oiler executive: "The Oilers went through aperiod where all they did was open the doors andwaited for people to show up. That's not how you dobusiness." (Edmonton Sun, 9/02)


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2 Major Thrusts of Sport Marketing

A. Marketing OF Sports

B. Marketing THROUGH Sports
http://www.youtube.com/watch?v=OEeK7OH6kXchttp://www.youtube.com/watch?v=QhryeUPEas0


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S S P A


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SPORT SPONSORSHIP PROPOSAL ASSIGNMENT

Select a Partner for the Sponsorship

Proposal Assignment

Now that we have our groups established:From the next slide your group must pick your top 3 (in

order, 1=most desired 3= third most desired) sportproperties you want to represent in a sponsorshipnegotiation.

You also have to pick your top 3 corporations you wantto represent in a sponsorship negotiation

GO!

S S P A


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Sport Properties:

Richmond Flying Squirrels Richmond Raiders

Lobs & Lessons

Richmond Kickers

Arena Racing University of Richmond

Athletics

VCU Athletics

Special Olympics Virginia SCOR

Tuckahoe Little League

Sponsors:

Jersey Mikes Haley Automotive Group

American Family Fitness

Lexus of Richmond

First Capital Bank Car Pool

Martins

Virginia 529

Bon Secours SportsMedicine

VCU Medical Center



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Each group will be emailed to inform them which sportproperty and which sponsor they will represent.

Each student team will research their assigned company (thebusiness) and develop a profile of that organization.

Each business will develop and rank three objectives theywould like to achieve through a sport sponsorship.

Businesses should also consider a dollar amount they think thecompany might be willing to invest in an annual sport

sponsorship.

In order to objectively evaluate all sponsorship proposals, eachbusiness must create an evaluation matrix they will use.


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Playing the role of the sport organization, three sport

properties will meet with each potential sponsorshipclient (business) to discuss their business and

objectives.

After conducting a needs analysis for each business

through the meetings on October 22, sport

organizations will develop a sponsorship proposal to

meet the needs of each potential sponsor.

S t i ti tili h t i t th i h f


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Sport organizations can utilize whatever inventory they wish for

their proposals with the following exceptions:

sport organizations may not sell any naming rights to facilities or teams

they may not sell any television spots (for this exercise, we will assume that all sport

organizations control their own radio broadcasts and web streaming if they possess such inventory).

For this exercise, sport organizations must also pay a rental fee

for any use of the sport facility outside of game day and must pay awholesale price to the concessionaire for any catering or food

offers.

All sponsorship proposals must be for a term of one season.

Also note, exclusive inventory cannot be offered to more than one

client (i.e., only one client can be presenting sponsor of the pregame radio show).


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On November 4, sport organizations will make three

sponsorship presentations, one to each prospect.

Each team will have a maximum of 15 minutes for each

proposal, which will include any negotiation time.

After hearing all three proposals, each business will

rank the three proposals (Best = 1, Worst = 3).

Each business will then submit a 2-3 page paper

explaining their sponsorship evaluation criteria, including

a completed Sponsorship Evaluation Matrix for eachsport property they met with, and their justification for

their sponsorship rankings.



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*Due to the creative nature of this project, the Sponsorship must

be turned in to the instructor via hard-copy and not

electronically.

Grading for the project will be as follows:

Sponsorship proposals 50 points

Evaluation paper 25 points

Proposal ranking 25 points (avg. of three proposals ~ 25, 20, 15)

Total Points: 100

*Yes, part of your grade is reflected in how well you evaluate the

sponsorship proposals you hear when acting as the potential sponsor.


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MARKETING PLAN SPORT PROPERTIESArena Racing

Bike MS

College Prep Golf Tour

Sportable

VCU Womens Basketball

VCU Baseball

U of Richmond Mens Lacrosse

U of Richmond Womens Lacrosse

Individually, email your top three picks for which sport property you want to create a marketing

plan (1= Most Desired 3 = Third Most Desired) to the instructor.

Documents

Intro to Sport Marketing