The Four Domains of Sports Marketing Chapter 2 The Four Domains of Sports Marketing McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

One of Our Dilemmas No Uniform Definition of “Sport(s) Marketing” Thus, There Is No Agreement as to Exactly What Constitutes a Sports Product There Is Agreement that the Discipline Encompasses More than Putting Fans in Seats at Spectator Sports Events

Two Broad Domains As Noted in Chapter 1, there are two broad domains (categories of initiatives) germane to the discipline of sports marketing: Marketing of Sports Products Marketing through Sports by Creating a Sports Overlay (Platform)

Important Statement “attention to marketing tools is long overdue” in the marketing of sports products.

Products Germane to Sports Marketing Sports Products Nonsports Products

Sports Product - Category 1 Spectator Sports (i.e. a football game) Live Audience Media-based Audience

Sports Product - Category 2 Participation Sports (i.e. golf) Attracting more Participants Getting Current Participants to Play More

Sports Product – Category 3 SASS Sporting Goods (Callaway Golf Clubs) Apparel (New Era Baseball Cap) Athletic Shoes (Air Jordan Shoes) Sports-related Products (Souvenir Program)

Nonsports Products Goods & Services not directly related to a sport Anything not Included as a Sports Product such as cars, clothes, soft drinks, & razors Nonsports Products Are Often Sold by Creating a Sports Overlay (or Platform)

Level of Integration Traditional Strategies Sponsorship-based Strategies

Traditional Strategies Employ the Basic Components of Marketing Strategy Target Market Selection Corresponding Marketing Mix Price Place Product Promotion

Sponsorship-Based Strategies Employ an Official Sponsorship-based Relationship with a Sports Entity Traditional Sponsorship Three Special Forms of Sponsorship Venue Naming Rights (Building Sponsorship) Endorsements (Personal or Personality Sponsorship Licensing (Right to Use Intellectual Properties)

Basic Principles of Sports Marketing (Details in Box 2.2) Broad Focus Marketing of Sports vs. Marketing of Sports Products Sports vs. Nonsports Level of Integration Traditional vs. Sponsorship Based Strategies

The Sport Marketing Matrix Drop in Figure 2.1 from Page 35

Mainstream Strategies Using a Traditional Strategy to Create a Sports Overlay to Sell Nonsports Products Target Market – ad for Honda cars in Golf Digest Product – Clothing feature golf graphics Promotion – ad featuring golfers drinking Pepsi Distribution – Hard Rock Café at MLB Stadium Price – Discounts to Bar Patrons Wearing Participation Sport Uniform

Product-Focused Strategies Using Traditional Marketing Strategy to Sell Sports Products Target Market – NBA Targeting Chinese Fans Product – New Titanium Golf Clubs Promotion – Newspaper ad regarding tickets Distribution – Broadcast Available on WWW Price – Bundling Tickets & Refreshments at a Bargain Price

Domain-Focused Strategies Using Sponsorship of a Sports Entity to Sell Nonsports Products Traditional – Coca Cola and the Olympics Venue Naming Rights – Citi Bank & MLB Stadium Endorsement – Tiger Woods & Gatorade Licensing – Mattel & NASCAR

Sports-Dominant Strategies Using Sports-Based Sponsorship to Sell Sports Products (Least Common Domain) Traditional – adidas and FIFA (World Cup) Venue Naming Rights – Reebok Stadium Endorsement – Burton Boards & Shaun White Licensing – Nike & the New York Yankees

“Sports Marketing” …is the implementation of proactive strategic initiatives designed to influence potential buyers’ preferences for an array of sports products or to otherwise create a sports overlay in such a way so as to have a positive impact on the sale of nonsports products.

Closing Capsule We have a comprehensive overview of the sports marketing environment Using the type of product sold and the level of sports integration, we have identified the four domains of the discipline Best visualized with the 2 by 2 matrix

Closing Capsule The Four Strategic Domains Are: Mainstream Product-Focused Domain-Focused Sports-Dominant

Closing Capsule To Determine a Marketing Initiative’s Location in the Sports Marketing Environment Matrix, You Need to Answer Two Questions: Is the product a sports product or not? Is there any indication that an official sponsorship of a sports entity exists?

Closing Capsule Chapter 3 Begins Our Examination of Marketing through Sports Marketing of Sports Products Will Begin with Chapter 13