Marketing College Athletics

Section 2.1

Marketing College Athletics

GOALS Explain the importance of the

NCAA and team rankings to college sports.

Define market segmentation. Discuss the growing market

surrounding women’s college athletics.

Distribution (Placement) Determining the best methods

and procedures to use to allow customers to find, obtain, and use a P / S.

Place = Distribution

Stadium, Arena, or Venue serves as BOTH the location and the method of distribution for the event

The media also provides for distribution of sports events.– News, PPV, Radio, Internet…

Stadium as “Place”

Sports are produced and consumed simultaneously (same time & place)

Stadium – represents the distribution (place).

Stadium – add to the “effect” of the event

1999 - $36 million expansion added 42 suites

Sold 10 Suites @ $2 mill. Each for a 25 year commitment

Sold 32 for $750,000 each for a 10 year commitment

University of Nebraska

Total Revenue =

$44 million

Channel of Distribution

Route of product follows and the businesses involved in moving a product from producer to final consumer.

Conventional Channels

Need for Channels

Differences in Quantity– Example: P&G Pantene

Shampoo

Differences in Assortment– Consumers want variety of

products– Example: Dell Computers

Distribution Channels

Move peoducts efficiently from where they’re made to where they’re sold.

Channels:– Direct – products move from

producer to consumer w/o other help.

– Indirect – include 1 or more other businesses between producer & consumer

Direct and Indirect Channels

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Products are directly sold from the producer to the final

customer; no intermediaries

Direct Channel

Producer

Customer

Products sold from producer to one or more intermediaries

before reaching final customer

Indirect Channel

Producer

Customer

Intermediary

Intermediary

Channel Considerations Coverage Required:

– Intensive – gum, candy, soft drinks– Selective – clothing, appliances,

TV’s– Exclusive – manufacturer to retailer

Test Your Knowledge

I.D. a sports / entertainment product that uses a Direct Distrib. Channel

I.D. a sports product that follows an Indirect Distrib. Channel (include the various channel members)– Intensive Example– Selective Example– Exclusive Example

Effects of College Sports A winning team has economic

implications for school, community, region, and state

Fan expectation Promotion of organization’s goods

and services– Schedule cards– Posters– Web Sites

Rules & Rankings

National Collegiate Athletic Association (NCAA)—the governing body of most college and university athletic programs

Creates and enforces guidelines and rules

NCAA Corporate Partners

NCAA Guidelines include:

Recruitment Gender equity Scholarships Gambling prohibitions Many ethical issues

Overall Goal:– Promotion of college athletics, w/ the

integrity of the athletes and their game

NCAA Conditions

Obtains accreditation by the recognized agency of its region

Offers at least 4 intercollegiate sports for men and 4 for women (1 in each of the 3 traditional seasons)

Complies with all NCAA rules Cooperates with the NCAA

enforcement program and accepts penalties

College Team Rankings

Why so much emphasis? #1 has lingering effects

High ranked teams build excitement and strong attendance

Creates fan loyalty and natl. respect Influences TV schedules

Requires fewer steps to #1 spot Go to Bowl game Retailers carry sportswear Increases recruitment

College Team Rankings

Market Segmentation

Market segment—a group of individuals within a larger market that share one or more characteristics

Market Segmentation

Uses the following characteristics to help define a target market:– geographic location– demographics– psychographics

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Demographics

Psychographics

Geographic

Location

Geographic Location

Is where the consumer lives– example:

the states of Kansas and Missouri are key target markets for the Kansas City Chiefs

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MO

Psychographics

Are the attitudes or the opinions a consumer has toward recreational activities– example:

a company would use their money to endorse athletes in the most popular sports in a particular country or locality

– England- soccer– Brazil- soccer– South Carolina- stock car racing– Texas- football

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Women’s College Sports NCAA Women’s Enhancement Program Increased fan support Marketing opportunities in

women’s sports

Economic Impact of College Athletics

Section 2.2

Benefits to the Community Good for town business

– Hotels– Restaurants– Retailers

Good for stadium business– Food/restaurants– Gift shops

Sports Products

Are the goods, services or ideas related to sports that provide satisfaction to the consumer

Make up a product lines Can be classified into the

following categories:– sporting events– sports information– sports training– sporting goods

Product Line- a group of closely related items which are manufactured or sold by a company

Sporting Events

Are the main category of sports products

Include the following examples:– games– competitions– athletes– stadiums/arenas

Sports Information

Is considered the actual news, statistics, schedules and stories associated with sports

Uses different media outlets such as television, radio, Internet and magazines

Includes the following examples:– Anaheim Ducks signing a new goalie – Dwyane Wade’s free throw percentage– Philadelphia Phillies season schedule

Sports Training

Is considered a sports service which is normally offered through a gym, fitness center or athletic department in the form of a camp, clinic or lesson

Is an intangible product Include the following examples:

– Duke Blue Devils basketball camp– local gym is offering swimming lessons– quarterback clinic

Intangible products- non-physical services

Sporting Goods

Are tangible products Can be purchased at stores or

other retail outlets Include the following examples:

– equipment– licensed merchandise- jerseys, t-

shirts, caps– collectibles/memorabilia

Tangible products- physical goods which satisfy a need or want of the customer

Product Line

Contains items which either work together or are similar in kind

Meets the need or want of a customer group

Includes the following examples:– Reebok® may have a running shoe

product line which contains many different styles and colors, but they all fall into the category of running shoe

Product Mix

Is the total assortment of goods a company makes or sells

Includes all of the product lines offered by a company– example:

Reebok® ‘s product mix would include the running shoe product line as well as their lines for athletic clothing, basketball shoes, football cleats, golf shoes, etc.

How Does Sports Marketing Relate to Products?

Licensing Sponsorships Endorsements Promotions

Licensing

Is the agreement that gives a company the right to use another’s brand name, patent or intellectual property for a royalty– licensor- company or individual granting

the license for a fee in a contract– licensee- company or individual paying

for the rights to use the name or property

Royalty- a fee which is paid to the licensor

Licensing

U of M– 4.02 Mill. in Licensing revenue alone in

2012 Top 5 colleges with most licensing

revenue (7/14 – 12/14) follow link1. Alabama2. Texas3. Notre Dame4. Michigan5. Georgia

Licensing Examples

A video documenting a team’s path to the championship game

A Yao Ming Houston Rockets® jersey

A Pittsburgh Steelers® sweatshirtCan you think of any other licensing examples in or out of the sporting industry?

Sponsorship

Is the promotion of a company in association with a property or event

Generates funds for all facets of sporting venues

Helps increase a company’s branding Can be flexible

– company can sponsor all or portions of a sporting event

Branding- the process of forming a mental association with a company or product

Sponsorship UPS deal (follow link)

– 70 Colleges – “Largest college sports sponsorship in history”

– UPS become the “official logistics, package-delivery & retail-bus./serv. Provider in all forms of sponsor recognition.

Buffalo Wild Wings (follow link)– With NCAA becomes the “official hangout”

for March Madness men’s basketball Includes rights for all 89 NCAA championships

through 2016

Sponsorship Examples

Aflac® Player of the Game Coca-Cola®…the official soft

drink of today’s game AT&T® Center in San Antonio -

home of the San Antonio Spurs

Can you think of any other examples of sponsorship?

Endorsements

Are statements of approval concerning a product or service by an individual or organization on the behalf of the producer

Generate publicity through the use of an individual’s or organizations celebrity in an advertisement

Give familiarity and credibility to a product by making it relatable to a consumer

Example Endorsements

A few of the athletes Nike® has or has had endorsements with Tiger Woods, LeBron James and Serena Williams

Hanes® is endorsed by Michael Jordan

Canon® has an endorsement deal with Maria SharapovaCan you think of other examples of endorsements?

Promotions

Are in-game or in-concert activities designed to entertain and advertise to consumers

Provide event marketers with creative ways to entertain fans

Offer sponsors with memorable ways to advertise to consumers

Promotion Examples

Million dollar half-time half court shot at basketball games

Free rent half time kick at a football game

Hamburger eating contest between the periods of a hockey game

Can you think of any other promotion examples?

Conference Realignment Conference—a group of college

athletic teams within the same region

Increase revenues Create new rivalries Playoff games generate additional

revenue

New Look

http://www.cbssports.com/collegefootball/conference-realignment

The Cost of Success

Success requires:– Skilled coaches– Top-notch players

Attracting & Keeping Coaches The best coaches can command

annual salaries in excess of $1 mill.

Fringe Benefits– Incentives received in addition to

base salaryCollege Coaches SalariesTicket Prices

Attracting & Keeping Star Athletes Competition for top athletes is

fierce. Recruiters compete with pro

teams as well as other colleges. Recruiters need a well refined

sales & mktg. effort to attract talent to their schools.

http://youtube.com/v/OuO6_DVwH4U

Is College Football A Campus Commodity? What’s your

opinion?

Amateur Sports

Section 2.3

Popularity of Amateur Sports Amateur athlete—someone who

does not get paid but plays for enjoyment, challenge, or both

Marketing & Sponsoring Amateur Sports Provides significant income for

manufacturers Minivan and sport utility vehicle Retro sports jerseys

Local Promotion of Amateur Sports Fund-raising charity events High school athletic teams

National Promotion of Amateur Sports Promotion used to elevate the

attention of consumers Lance Armstrong and Subaru

Economic Benefits

Minnesota’s example– Minnesota Amateur Sports

Commission– Create economic development

through amateur sports– Create maximum opportunity for

sport participation– Establish Minnesota as a national

model for the Olympic and amateur sport movement

Economic Benefits of Specific Sports Ice skating Soccer Basketball Baseball and softball