Goals Define sports marketing. Explain the value of sports marketing to the economy. Chapter 1 Slide 2
Sports are big business at many universities throughout the country. Basketball has become a big money maker for many colleges. For the 04-05 school year, the University of Arizona men’s basketball program generated revenue of $16.6 million and a profit of $12.5 million. They have had sell-out games for almost 20 years. Courtside seats can bring in as much as $30,000 per pair.
By playing in the NCAA tournament the school secured money for their school from CBS, which televised the tournaments and distributed more than $400 million to the NCAA conferences Big business can mean big salaries for college coaches. Tom Crean earned $1.65 million in 2005 at Marquette University. He has coached the Golden Eagles to 3 NCAA tournament appearances and a final four appearance.
1. Should successful college coaches earn more than $1 million a year? 2. Describe a typical college basketball fan.
demographics common characteristics of a group age, marital status, income, education sports marketing using sports to market products Chapter 1 Slide 6
continual innovation provides new opportunities extreme sports Wrestling XFL - 1.2 Sports Marketing\XFL Ad.flv1.2 Sports Marketing\XFL Ad.flv arena football Grand Rapids - 1.2 Sports Marketing\AFL Grand Rapids.flv1.2 Sports Marketing\AFL Grand Rapids.flv League Promo - 1.2 Sports Marketing\AFL Promo Video.flv1.2 Sports Marketing\AFL Promo Video.flv Arena football is one of the fastest growing sports in the country. (founded 1987) Tickets sell for an affordable price ($17.50) Players meet fans and sign autographs after every game Clock does not stop and high scoring Chapter 1 Slide 7
gross impression the number of times per advertisement, game, or show that a product or service is associated with an athlete, team or entertainer Every time your brain sees a product or company logo on the back of a shoe, in a movie scene, or on a license-plate holder on a car your brain records that image. Many college and pro teams have company or product logos on their uniforms. Chapter 1 Slide 9
Fans want products and services that identify them with winning teams and athletes. Marketing efforts may need to be tweaked based on changes in winning trends. If a major athletic company has a successful marketing campaign, competitors are likely to increase their marketing efforts. Competition must be monitored so that a company’s marketing can remain unique Chapter 1 Slide 10
Why are gross impression and timing important in sports marketing? Chapter 1 Slide 12
Gross impression keeps the product upfront in the minds of sports fans. Successful merchandise sales depend upon having a product available when it is in high demand.
Sports marketing is a multi-billion-dollar global industry that has a definite impact on the economy. Chapter 1 Slide 14
Emotional connections to teams motivate fans to buy tickets to games. For example how many people in here are loyal to the Lions (even though they are terrible)? Marketers try to appeal to the emotions of fans Chapter 1 Slide 15
High profile sporting events generate strong promotional revenues for broadcasters. The Super bowl, BCS, and March Madness attract the attention of large sports minded audiences. Which in turn, attract high-paying promoters Chapter 1 Slide 16
Name three ways that sporting events help boost the local economy and/or national economy. Chapter 1 Slide 17
Sporting events result in fans spending money on a wide array of related products and services that benefit the economy. Food Parking Hotels