© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 1 CHAPTER 4 CHAPTER 4 Marketing Products and Services Through Sports Using Sports to Market Products Sponsorship Promotion Endorsements

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 2 LESSON 4.1 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.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 3 Market Audience Size The Audience Sports Events Attract More Viewers And Participants Than Any Other Form Of Entertainment Today Businesses Want To Align Themselves With A Team Or Athlete Fan = Fanatic An Audience Of Avid Fans Is Captive Exposed To Ads When Watching Games

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 4 The Power of Sports Power Of Emotional Ties People Experience Intense Emotions Over Sports Pride In Their City Rioting After Championship Games Fans May Overlook Athlete’s Bad Behavior Emotional Involvement With Children’s Performance

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 5 The Power of Sports gSFCg&feature=related gSFCg&feature=related

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 6 The Power of Sports Power Of New Markets Rising Popularity Of Women’s Athletics WNBA, World Cup Soccer, High School & College Athletics Title IX: The Prohibition Against Gender Discrimination In School Programs That Receive Federal Funds

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 7 Marketing Cycle 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

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 8 How Companies Decide Outside Consulting Firms Sports Marketing Groups Where do I get the best value for dollars spent?

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 9 LESSON 4.2 LESSON 4.2 Sponsorship GOALS Understand sponsors and their investments. Discuss prohibited sponsorship.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 10 Sponsors and Investments Reasons for sponsorship Need for profit Sponsorship in niche markets Examples of niche markets

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 11 What is a Sponsor? A person, organization, or business that gives money or donates products and services to another person, organization, or event in exchange for public recognition.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 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

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 13 Need for Profit Market research measures the results of its sponsorships Return—the profit the sponsor earns from its support of an athlete or team Guaranteed amount of exposure, recognition, or acknowledgement, or dollar return

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 14 Sponsorship in Niche Markets Niche marketing—researching a target market to determine the specific items or services a small group of people will buy Examples of Niche Markets NASCAR X Games

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 15 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 Loss of sponsor—Tobacco Backlash (NASCAR: Winston Cup became Nextel Cup)

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 16 LESSON 4.3 LESSON 4.3 Promotion GOALS Discuss promotion and its objectives. Understand the tools used in promotion.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 17 Promotion Selling The Exchange Of A Product Or Service For Another Item Of Equal Or Greater Value Result Of Promotional Activities Face-to face, letters, phone calls

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 18 Promotion Publicizing Or Advertising A Product, Service, Or Event With The Goal Of Selling It Information About A Product, Service Or Event Given To Consumers Communication Process Information Leads The Consumer To Want The Product

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 19 Promotion Targets Primary goal of promotion is to increase sales or attendance Winning new customers Maintaining customer satisfaction, loyalty, and repeat business

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 20 Promotion Objectives What Do You Want to Accomplish? Decide On Target Market (Demographics, Psychographics, Geographic, Product Usage, And Benefits) Decide On The Message (Persuade, Inform, Broaden Awareness, Image) Determine What It Wants Consumers To Do (Try Product, Come To A Store/Event, Repeat Purchase)

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 21 Promotional Tools The four elements in a promotion plan (promotional mix) are: Personal Selling Advertising Publicity Sales Promotion

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 22 Personal Selling Personal Selling—in-person, Face-to- face Communication Between A Seller And A Customer Identify Customer Needs, Overcome Customer Hesitation Courteous And Professional Salespeople Cause Customers To Return

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 23 Advertising Advertising—paid communication between the product maker or seller and the audience or customer Clearly Explain Benefits Reach Broad Audience Print Media Broadcast Media Social Media: Social media marketing programs usually center on efforts to create content that attracts attention and encourages readers to share it with their social networks. A corporate message spreads from user to user and presumably resonates because it is coming from a trusted source, as opposed to the brand or company itself.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 24 Publicity Publicity—any Free Notice About A Product, Service, Or Event Newspaper Articles, Television Coverage, Keeps Your Name In The Public Eye Publicity Can Be Good Or Bad

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 25 Sales Promotion Sales Promotion—any Action Or Communication That Will Encourage A Consumer To Buy A Product Specials: Coupons, Giveaways, Contests, Sweepstakes, Samples, Items With Company’s Name On It, Limited Offers-BOGO

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 26 LESSON 4.4 LESSON 4.4 Endorsements GOALS Describe endorsements and their restrictions. Describe qualifications for endorsers.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 27 What Is an Endorsement? Endorsement—a person’s public expression of approval or support for a product or service

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 28 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. The endorsements may not contain any deceptive or misleading statements. The statements must be able to be substantiated by the advertiser.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 29 Legal Restrictions on Endorsements (continued) Endorsements may not be presented out of context or reworded so as to distort in any way the endorser’s opinion. The endorser must use and continue to use and believe in the product for as long as the endorser is used in the advertisements. 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.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 30 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

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 31 How Controversial Can an Endorser Be? A difference between harmful endorsement and questionable endorsement Dennis Rodman Terrell Owens Kanye West Tiger Woods

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 32 Should Endorsers Speak Out? Debate over whether celebrity endorsers have a moral obligation to speak out on controversial topics 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

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 33 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

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 34 Wheaties Explain the benefit to Wheaties of having a star athlete on its box. Explain the benefit to the athlete. Name some risks to Wheaties of having real people on its boxes.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 35 Wheaties Endorsements t/index.html t/index.html xHoByXszPE xHoByXszPE

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4SLIDE 36 Wheaties The Breakfast of Champions The director of marketing has asked you to recommend three potential athletes to consider for the next box of Wheaties. 1.The three athletes must include one from a mainstream sport, an alternate sport, and a female athlete. 2.List each of your choices and justify their selection based on the criteria outlined in your text. Each recommendation must be a minimum of one paragraph. 3.Create and print a Wheaties box for each athlete (see Wheaties web site)