1. CHAPTER 4 Marketing Products and Services Through Sports
SPORTS AND ENTERTAINMENT MARKETING
4/20/2017
CHAPTER 4 Marketing Products and Services Through Sports
4.1 Using Sports to Market Products
4.2 Sponsorship
4.3 Promotion
4.4 Endorsements
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2. LESSON 4.1 Using Sports to Market Products
GOALS
Understand the enormous market for sports.
Explain emotional ties to sports and earning power of women in sports.
Discuss the marketing cycle.
Essential Question – What products can sports market?
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3. Market Audience Size The audience
Sports events attract more viewers and participants than any other form of entertainment today
An audience of avid fans is captive – meaning if they want to watch the game, they gotta’ watch the commercials!
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4. The Power of Sports Power of emotional ties
People experience intense emotions over sports
Pride in their city
Rioting after championship games – mostly fueled by booze
Fans may overlook athlete’s bad behavior – Mike Tyson, Tiger Woods
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5. The Power of Sports Power of new markets
Rising popularity of women’s athletics
Title IX – prohibits gender discrimination in school programs that receive federal funds. EX – male field hockey players
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6. Marketing Cycle for sports
A company buys the right to advertise or use a logo on products
Television and radio stations and networks sell broadcast time
Cities buy the rights to host teams
Consumers buy the products advertised
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7. Marketing Cycle for sports
1. Company buys the rights to advertise
during a game or to use a logo on products
2. TV/Radio stations sell broadcast time to teams/sponsors
3. Cities buy the rights to host the teams
4. Consumer buys the products advertised during the game
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8. How Companies Decide
Hire outside consulting firms to help advertise their products through sports
Sports marketing groups within their own marketing department
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9. GOALS Understand sponsors and their investments.
LESSON 4.2 Sponsorship
GOALS
Understand sponsors and their investments.
Discuss prohibited sponsorship.
Essential Question: Why are sponsors so valuable to a team?
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10. Sponsors and Investments
Sponsor- a person, organization, or business that gives money or donates products and services to another person or team
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11. Sponsors and Investments
We will discuss:
Reasons for sponsorship
Need for profit
Sponsorship in niche markets
Examples of niche markets
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12. Reasons for Sponsorship
Increase sales
Introduce a new product or service
Compete where potential customers are in one place
Identify an event with a target market
Earn the goodwill of the audience
Show community commitment
Enter new markets
Entertain clients, employees, or potential customers
Enhance the companies’ image
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13. Need for Profit
Businesses become a sponsor for a guaranteed amount of exposure, recognition, or acknowledgement
Market research measures the results of its sponsorships
Return—the profit the sponsor earns from its support of an athlete or team
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14. Sponsorship in Niche (pronounced-neesh) Markets
Niche marketing —researching a target market to determine the specific items or services a small group of people will buy
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15. Examples of Niche Markets
Auto racing is the number one sport for fan loyalty (source –the book??)
Fans are very loyal to the products that their favorite driver endorses.
Who would/does sponsor the X games and why?
Who would/does sponsor a rodeo?
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16. Can Anyone Sponsor Anything?
Newer sports offer attractive opportunities for smaller businesses
Minor league baseball
Affinity sports —niche markets whose participants are just as passionate about their sports as are enthusiasts of the more traditional sports
Fishing and rope jumping
These guys
Then there’s this guy
Newer sports offer attractive opportunities for smaller businesses
Minor league baseball
Affinity sports —niche markets whose participants are just as passionate about their sports as are enthusiasts of the more traditional sports
Fishing and rope jumping
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17. Loss of sponsors Multistate Settlement Agreement of 1998
Tobacco sponsorship is prohibited for concerts, for events in which the participants are under 18, and for football, baseball, soccer, and hockey
Tobacco sponsorship is limited to one event and one brand per year per business
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18. GOALS Discuss promotion and its objectives.
LESSON 4.3 Promotion
GOALS
Discuss promotion and its objectives.
Understand the tools used in promotion.
Essential Question – Why do companies promote a product?
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19. Promotion
Selling—the exchange of a product or service for another item of equal or greater value
Promotion—publicizing or advertising a product, service, or event with the goal of selling it
Promotion Example
Bonita’s Floral Shop
Promotional video example
Just too awesome…
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20. Promotion Targets
Primary goal of promotion is to increase sales or attendance
Attracting new markets and keeping old ones are equally important
Critical stage in winning new customers
Maintaining customer satisfaction, loyalty, and repeat business
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21. Promotion Objectives
Before spending money on a promotional campaign, the company must know exactly what it wants to accomplish first
Decide on target market
Research market segmentation (dem,psy,geo,prodU,benD) of target market to ensure product and market are compatible
Decide on the message
Do they want to persuade, inform, create or broaden?
Determine what it wants consumers to do
Do they want us to try, participate or buy?
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22. Promotional Tools
A promotional plan or promotion mix, has four elements:
Personal selling
Advertising
3. Publicity
4. Sales promotion
Some bad promotional ideas
Bad advertisements
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23. Personal Selling
Personal selling — communication between a seller and a customer
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24. Advertising
Advertising—paid communication between the product maker or seller and the audience or customer
Effective advertising should clearly explain the benefits of good product
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25. Publicity Publicity—any free notice about a product, service, or event
Lance Armstrong’s victory over cancer promoted interest in the Tour de France more than advertising ever could
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26. Sales Promotion
Sales promotion— any action or communication that will encourage a consumer to buy a product
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27. GOALS Describe endorsements and their restrictions.
LESSON 4.4 Endorsements
GOALS
Describe endorsements and their restrictions.
Describe qualifications for endorsers.
Why do companies want celebrities to endorse their product?
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28. What Is an Endorsement?
Endorsement—a person’s public expression of approval or support for a product or service
Endorsements are a promotional tool rather than a form of sponsorship.
Chuck Norris!
Endorsement—a person’s public expression of approval or support for a product or service
Endorsements are a promotional tool rather than a form of sponsorship.
Chuck Norris!
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29. Legal Restrictions on Endorsements
Endorsements must always reflect the honest opinions, findings, and beliefs or experience of the endorser.
The endorser must have real experience with the product.
3. The endorsements may not contain any deceptive or misleading statements. The statements must be able to be substantiated by the advertiser.
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30. Legal Restrictions on Endorsements (continued)
4. Endorsements may not be presented out of context or reworded so as to distort in any way the endorser’s opinion.
5. The endorser must use and continue to use and believe in the product for as long as the endorser is used in the advertisements.
6. If the product changes in any way, the company must notify the endorser, and the endorser must continue to use and believe in the new or revised product.
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31. Athlete Endorsements Top Ten paid athlete endorsements
Advantages and disadvantages
How controversial can an endorser be?
Should endorsers speak out on anything besides the product?
What businesses look for in an endorser
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32. Advantages and Disadvantages
Consumers will buy products endorsed by celebrities more often than products that are not so endorsed
Viewers, listeners, and fans are less likely to turn off a commercial featuring a celebrity than a commercial featuring a fictitious character
Consumers tend to believe celebrities, especially those who are chosen for their good public image
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33. Advantages and Disadvantages
Very $$$$$
Celebrity may not agree to only endorse one product
MJ has endorsed Gatorade, Nike, McDonalds, Rayovac, MCI, Sara Lee and Hanes!
Risk of negative publicity if the endorser commits a crime or serious blunder
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34. How Controversial Can an Endorser Be?
A difference between harmful endorsement and questionable endorsement
Dennis Rodman
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35. Should Endorsers Speak Out?
Debate over whether celebrity endorsers have a moral obligation to speak out on controversial topics Chuck Norris
Athletes are not experts in the field of politics, labor, human rights, or global issues
Athletes have a responsibility to know what’s going on with the business they endorse
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36. What Businesses Look for in an Endorser
Positive, charismatic, trustworthy image
A celebrity most consumers know
A celebrity whose career is in process (not retired)
Presents few risks
Believable relationship with the product
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37. Get with a partner
Find five athletes/celebrities and list the product(s) they endorse
For each of the five, explain why you feel the company they endorse is a good or bad choice for the athlete/celebrity and why
Don’t forget, endorsements are different than sponsors, so do your research!
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