Sports Marketing

What is Sports Marketing? Sports marketing is the use of sports to market products (DUH) –So for example companies place their logos on jersey’s of teams they represent. This gets them exposure on many levels. Under Armour, Nike, Reebok, Adidas, etc.

Gross Impressions Companies monitor their exposure by counting the number of times per advertisement, game, or show that a product or service associated with an athlete, team, or entertainer. This number is known as gross impressions. –This may be subtle such as a small logo on a uniform. Every time you see a product or company logo your brain records that image. Advertisers hope you remember it when you buy such a product!

Timing Timing is very important in sports marketing because fans want products that identify them with a winner. So a teams wins and losses are more than just points. There is a dollar value that takes a hit as well.

Michael Phelps

Why Sports? In 2007 an estimated 30 million people watched the Super Bowl worldwide!In 2007 an estimated 30 million people watched the Super Bowl worldwide! Average attendance for sportsAverage attendance for sports –NFL 69,000 per game x 16 games x 32 teams = 35,328,000 fans –MLB 33,000 per game x 160 games x 30 teams = 158,400,000 –NBA 17,000 per game x 82 games x 30 teams = 41,820,000 –NHL 17,000 per game x 82 games x 30 teams = 41,820,000 If 10% of that audience spends roughly $20 at your store you would bring in $554,736,000 in revenue annually.If 10% of that audience spends roughly $20 at your store you would bring in $554,736,000 in revenue annually.

Sports Marketing Firms Sports firms bring business sponsors together with sports teams, individual athletes, and coaches.Sports firms bring business sponsors together with sports teams, individual athletes, and coaches. Next it negotiates terms of a contract between them and manages the contract for both parties.Next it negotiates terms of a contract between them and manages the contract for both parties. Firms match athletes and businesses for mutual benefitsFirms match athletes and businesses for mutual benefits

Marketing Myth Sports movies are often criticized for poor acting and little plot. The top five income producing sports movies as of the end of 2006 may change that mind set.Sports movies are often criticized for poor acting and little plot. The top five income producing sports movies as of the end of 2006 may change that mind set. 1.Waterboy (1998): $161,456,592 2.The Longest Yard (2005): $158,000,000 3.Jerry Maguire (1996): $153,620, Talladega Nights (2006): $148,000, Rocky IV (1985): $127,873, Rocky III (1982): $122,823, Seabiscuit (2003): $118,251, Rocky (1976) - $117,000, Remember The Titans (2000) - $115,000, Dodgeball (2004) - $114,000, A League Of Their Own (1992) - $107,000, Million Dollar Baby (2004) - $100,000,000 What can you conclude from the popularity of sports movies?What can you conclude from the popularity of sports movies?

Agents One owner or multiple agents An agent is a person responsible for making contacts with clients and sponsors Scott Boras, MLB –Carlos Beltran, Johnny Damon, Prince Fielder, Matt Holiday, Manny Ramirez, Alex Rodriguez, Mark Texiera Drew Rosenhaus, NFL –Anquan Boldin, Ocho Cinco, Plaxico Burress, Terrell Owens, Clinton Portis David Falk, NBA –Charles Barkley, Elton Brand, Patrick Ewing, Allen Iverson, Michael Jordan, Stephon Marbury

The Power of Sports More time and money are spent in sports than any other recreational pursuit in the countryMore time and money are spent in sports than any other recreational pursuit in the country Sports fans spend a lot of mental energy on their favorite teams and athletesSports fans spend a lot of mental energy on their favorite teams and athletes EMOTIONAL TIESEMOTIONAL TIES –The power of athletics as a marketing aid can be explained partly by the emotional ties people feel towards sports –Millions of people feel intense love, joy, hate, or disappointment over sports

Condone the Entertainer Fans will often ignore an athletes past to be entertained.Fans will often ignore an athletes past to be entertained. In 1999 fans spent on average $49.95 to see Mike Tyson fight Francois Botha and raise for him $148 million after his 1995 release from prison.In 1999 fans spent on average $49.95 to see Mike Tyson fight Francois Botha and raise for him $148 million after his 1995 release from prison. Other Forgiven Fan FavoritesOther Forgiven Fan Favorites –Kobe Bryant, Charles Barkley, Ray Lewis, Terrell Owens, Jason Giambi, Corey Dillon

Corey Dillon Rap Sheet Arrested for: DUI, theft (twice), intent to sell cocaine, obstructing a police officer (thrice), resisting arrest (twice), assault (five times), criminal trespass, malicious mischief (twice), reckless endangerment (twice), domestic violence, rape Arrested for: DUI, theft (twice), intent to sell cocaine, obstructing a police officer (thrice), resisting arrest (twice), assault (five times), criminal trespass, malicious mischief (twice), reckless endangerment (twice), domestic violence, rape

Sponsors A sponsor is a person, organization, or business that gives money or donates products and services to another person, organization, or event in exchange for public recognition.A sponsor is a person, organization, or business that gives money or donates products and services to another person, organization, or event in exchange for public recognition. For example, if Phil’s Pizza sponsors your recreational basketball team!For example, if Phil’s Pizza sponsors your recreational basketball team!

Reasons to Sponsor Increase Sales Introduce new product or service to large audience Compete where many potential customers are in one place To be identified with an even in which target market is intersted Earn goodwill of audience Show commitment to community Enter new markets Entertain clients, employees, or potential customers Enhance companies’ image

Returns Since costs can be high, sponsors carefully watch the returns on their sponsorships. returnA return is the profit the sponsor earns for support. For example, Phil’s would likely see an increase in sales because of its sponsorship!

Endorsements An endorsement is a person’s public expression of approval or support for a product or service. They are a promotional tool rather than a form of sponsorship. If two people are seen on a commercial speaking of a product they are not endorsers because they are acting as spokespersons for the company.

Endorsement Rules However, a well known race car driver for a brand of tires is an endorsement because: –The public knows the person is a real professional driver –Public assumes the comments are personal opinion –Public assumes the driver would not make comment if he/she did not believe it

Endorsement Restrictions Endorsements must –Always reflect honest opinions, findings, beliefs or experiences of the endorser –Endorser must have real experience with product –Not include deceptive or misleading statements. –Must not be reworded or out of context –Endorser must use and continue to use and believe in product for as long as he/she endorses product –If product changes in any way, endorser must be notified, and the endorser must continue to use and believe in new product

Most Endorsed Athletes 1.Tiger Woods ($100 Million) 2.Phil Mickelson ($48 Million) 3.LeBron James ($25 Million) 4.Dale Earnhart Jr. ($25 Million) 5.Michelle Wie ($19.5 Million) 6.Kobe Bryant ($16 Million) 7.Jeff Gordon ($15 Million) 8.Shaquille O’Neal ($15 Million) 9.Peyton Manning ($13 Million) 10.Dwayne Wade ($12 Million) Do you find anything odd about this list?Do you find anything odd about this list?

Who Endorses Who? $Derek Jeter and Gatorade $Peyton Manning and Direct TV $Dan Marino and Nutrisystem $Michael Jordan and Nike $Tiger Woods and Buick $Jeff Gordon and TAG Heuer $Danica Patrick and GoDaddy $Charles Barkley and T- Mobile $David Beckham and Adidas $Dwayne Wade and Converse $Yao Ming and Reebok $Brady Quinn and EAS Nutrition $Kasey Kahne and Vitamin Water $Maria Sharapova and Canon $Coach Krzyzewski and American Express $Lebron James and Powerade $John Madden and Electronic Arts $Tony Hawk and Activision

Top Sporting Events 1. NFL Football1. NFL Football 2. NASCAR2. NASCAR 3. NCAA Football3. NCAA Football 4. MLB Baseball4. MLB Baseball 5. NCAA Basketball5. NCAA Basketball 6. NBA Basketball6. NBA Basketball 7. NHL Hockey7. NHL Hockey 8. PGA Golf8. PGA Golf 9. AFL Arena Football9. AFL Arena Football 10. NCAA Baseball10. NCAA Baseball 11. Olympic Sports11. Olympic Sports