1. Chapter 2 – College and Amateur Sports
Sports Marketing

2. OBJECTIVES:
Explain the importance of the NCAA and team rankings to college sports
Define market segmenation
Discuss the growing market surrounding women’s college athletics
EQ: What are the five different segments of market segmentation?

3. 2.1 Marketing College Athletics
Effects of Collegiate Sports
A winning college team has economic implications not only for its school but also for the community, region, and state.
University offers products/services to fans, but fans also expect an adequate number of hotel rooms, restaurants, gas stations, and shopping malls, etc.

4. Effects of Collegiate Sports (cont’d)
Media attention – can benefit a college community from the success of its primary sports program
Promotion – any form of communication used to inform, persuade, or remind consumers about an organization’s goods or services
Examples – promotions to attract alumni back to homecoming games, having a concert/special event after a game, half-time events:
Hockey shot
Prank half-court shot

5. Effects of Collegiate Sports (cont’d)
Marketers strive to promote a strong public image of the team.
Print schedule cards to distribute to students
Promotional posters around campus of sports teams
Apparel and other merchandise

6. Rules and Rankings
National Collegiate Athletic Association (NCAA) -governing body of most college and university athletic programs.
creates and enforces guidelines and rules that schools must follow in order to remain in good standing.
PSU sanctions
-Guidelines:
recruitment, gender equity, scholarships, gambling prohibitions, and many ethical issues.

7. NCAA guidelines
Any college or university may join the NCAA if it meets the following four conditions:
1. it obtains accreditation by the recognized accrediting agency of its region.
2. it offers at least four intercollegiate sports for men and four for women (one in each of the three traditional seasons).
3. it complies with all NCAA rules.
4. it cooperates with the NCAA enforcement program and accepts penalties imposed by that program.
-NCAA serves as a magnet for important sponsors such as: American Express, Holiday Inn, Hershey’s, Penzoil

8. College Team Rankings
Determined by sports magazines and nationally recognized sports enthusiasts
Based on past team performance, talent, team schedules, and personal preference.
Occur before the season begins each year.
Companies fill sports mags, etc. with ads for their products/services because fans enjoy reading these publications.

9. Why So Much Emphasis?
A highly ranked team builds excitement and strong attendance, creating fan loyalty, major tv exposure, and more revenue for the college.

10. Why So Much Emphasis? (cont’d)
Post-season bowl games pay participating schools enormous amounts of money.
Bowl Championship Series (BCS)-
Was established to pair the two best college football teams at the end of the season
There are four BCS sponsored bowls (Rose, Orange, Sugar and Fiesta) and one Championship game
Highly disputed because there is no playoff system, teams are picked by their rankings and some say, favoritism.

11. Why So Much Emphasis? (cont’d)
The four BCS bowls paid each participating team $13.5 million in 2003.
28 bowls paid more than $170 million to schools and their conferences at the end of the 2002 football season.
Think there is any incentive to get into a bowl game now?

12. Being #1 Has Lingering Effects
A championship can bring favorable national recognition after the celebration is long over.
Retailers carry national champs sportswear and memorabilia
Being the “official sportswear manufacturer” for a national champ is GREAT advertising!

13. **Market Segmentation**
market segment — is a group of individuals within a larger market that share one or more characteristics.
Example – Sports Illustrated magazine putting different sports stars on the cover in different parts of the country
Example - millions of people in the US enjoy football, but a smaller group specifically enjoys the Philly Eagles. A media guide covering the Eagles will be sold out in the PA market, but would flop in Dallas.

14. Five Elements of Market Segmentation
1. Geographic segmentation—dividing the markets into physical locations, such as eastern, northern, southern, and western regions of the US or the urban and rural areas of a state.
-can occur within a single city
-sports fans are likely to be loyal to their own region when purchasing products.

15. Five Elements of Market Segmentation
Demographic Segmentation—focuses on information that can be measured such as income, profession, gender, and education

16. Five Elements of Market Segmentation
Psychographics—focus on characteristics that cannot be measured, such as attitudes and lifestyle choices.
“Holy Day” Ballgame?
Consumers make decisions on emotions – they will spend more money on a team’s clothing after a win than a loss

17. Five Elements of Market Segmentation
Product Usage—reflects what product you use, how often, and why.
marketers use this info. to encourage you to use your preferred products more often or to try new, similar, or competing products.

18. Five Elements of Market Segmentation
Benefits Derived—the value people believe they receive from the product or service.
Enjoyment received from a good game or from a sweatshirt with a team logo rather than the same sweatshirt with no logo.

19. Women’s College Sports
1981—formal recognition from the NCAA. Nineteen championship events were added to women’s sports programs.
*1987—NCAA’ s Women’s Enhancement Program created.
offered opportunities for:
post-grad scholarships
internships at the NCAA national office
career help for women who want to continue in intercollegiate athletics after their playing eligibility is over.

20. Women’s college sports (cont’d)
Increased fan support
With NCAA recognizing women’s college sports, attendance has gone up like crazy
Marketing opportunities in women’s sports
Before - clothing, beauty products, jewelry, etc.
Now – soccer shoes, field hockey sticks, golf clubs, bats, racing bikes.

21. Chapter 2.2 – Economic Impact of College Athletics
Sports Marketing

22. OBJECTIVES:
Understand the benefits of college sports to the home community
Identify benefits of sponsorship and licensing to a team
Explain the reaons for realignment of college conferences
EQ: How does a sports team benefit a community?

23. Opening Act pg. 41
A college sporting event provides a perfect setting for advertising all kinds of goods and services.
Sponsors have banners throughout the stadium, are announced during the game, or are listed in the game program.

24. Benefits to the Community
Good for Town
Strong business sales
Tickets sponsored by local businesses and major corporations
Car dealer promotions having coach/player at their dealership
Good for Stadium
Major sporting events hold captive audience
Vendors can charge high prices for food and beverages.

25. Sponsorship
All about financing or generating revenue for college program
Corporations benefit selling their prods/services
Name-brand apparel is visible
Hope that fans will go out and buy that brand because the players are seen wearing it
Use creative promotional strategies

26. Licensing-
Legal right to reproduce a team’s logo in exchange for payment
Mission of Athletic Licensing Office
Protect the use of name and symbols
Ensure the public can properly identify and associate logos
Sales increase after national championship
Updating logo increases sales
Each item containing logo provides income to the university
PSU Licensing Office

27. Conference Realignment
Conference- Group of college teams within the same region
Created in order to have playing associations of manageable sizes
Assign competing teams in organized and fair manner
EX: Big 12, PAC 10, SEC
Changes are made to increase revenue and television share

28. Lesson 2.3
Amateur Sports

29. Objectives Discuss marketing and sponsoring of amateur sports
Understand the economic benefits of amateur sports
Essential Question – How are amateur sports marketed?

30. Popularity of Amateur Sports
Amateur Athlete-someone who does not get paid but plays for enjoyment, challenge, or both
Can be of any age
Physical challenges are not prohibited

31. Marketing and Sponsoring
Must have top quality equipment
Must have money necessary to compete
Significant income for the following:
Athletic uniforms
Shoes
Equipment
Lawn chairs
Portable stadium seats
Coolers

32. Promoting Amateur Sports
Locally
Fundraising charities, marathons
Business sponsor local teams on uniforms
National
TV shows, movies, athletes and media start carry out promotional strategies

33. Economic Benefits Fastest Growing Amateur Sports
Soccer (wholesome athletes & families)
Ice Skating (rinks in shopping malls)
Basketball (Pickup games)
Baseball/Softball (tournaments)
Fans are limited to just watching professional sports, but almost anyone can participate in amateur sports.