Sports Meets Marketing Chapter One Sports Meets Marketing

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Learning Objectives Describe the characteristics of sports marketing. Discuss the three roles of marketing in sports organizations. Summarize the evolution and history of sports marketing. Describe contributing factors in the growth of sports and sports marketing. Define the components of the 5P framework of sports marketing. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Insider Expert Tony Ponturo Sports/Entertainment Consulting New York advertising – 6 years Anheuser-Busch – 26 years Producer Broadway hits Tony Award Inaugural member – “Champions” program Street and Smith’s Sports Business Journal 14th most influential business executive BusinessWeek Magazine Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Marketing is the activity, set of institutions, and processes for _______, communicating, delivering, and ___________ offerings that have value for customers, clients, partners, and society at large. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Sports Marketing is the use of marketing for ________, communicating, delivering, and _________ sports experiences that have value for customers, clients, partners, and society. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Sports Marketing Marketing of sports Marketing through sports Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Characteristics of Sports Marketing Affinity advantage _____________________ Positioning challenge ______________________ Experience-based relationships _______________________ Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Figure 1.1 Marketing’s Role in Sports Catalyst for creating customer value _________________________________ Develops and nurtures customer relationships Connects organizations with external environment Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Creating Customer Value Consumption _________ Sacrifices ________ Two options _________ benefits _________ sacrifices Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Customer Relationships Marketing influential Close proximity to customers Relationship marketing ______________________ Cost of customer acquisition _______ greater than retention Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Figure 1.2 The Relationship Between External Factors, Marketing Decision, and Customers External Factors Marketing Decisions Competition Economy Public Policy Sociocultural Trends __________ _____________ ____________ Product Price Place Promotion Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Sports Marketing Evolution Monopoly Era (1900-1950) Television Era (1950-1990) Highlights Era (1990-2010) Experience Era (2010-today) Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Sports Marketing Growth Factors Business-Driven Factors Growth of sports media _________________________________ Increased interest in sports sponsorships __________________________________ Desire to build global brands Inclusion in economic development planning ___________________________________ Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Sports Marketing Growth Factors Customer-Driven Factors Increase emphasis on leisure activities Introduction of new sports Increased interest in women’s sports Increased interest in personal fitness Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Figure 1.5 Sports Entertainment Marketing 5 Ps Positioning ____________ customers People Promotion _____________ customers Platform _____________ to customers Profits ______________ customers Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Positioning Customer focus Key marketing tasks Establish values and mission Conduct market analysis Set marketing objectives Select target markets Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Platform Bundle of benefits Brand relationships Product Place or distribution Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Figure 1.6 The Sports Product Sporting Goods Leagues Teams Events Experiential Products Athletes Sponsorships Merchandise Support Products Venues Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Promotion Communication Customer engagement Voice of brand Sponsorships Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Profit Customer value Customer satisfaction Price Performance measurement Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall People Service culture Quality of interactions Front-line employees Outsourcing Sports marketing professionals Preparation Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Insider Insights Tony Ponturo Key differences of sports marketing Sports team/league project own image League brand involves many team brands High media profile Contrast to entertainment marketing Strong local/regional appeal Trends or events shaped sports marketing Use of playing field for marketing purposes Evolution of sponsorships Global reach Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall