Intro to Marketing Mr. Bernstein College Athletics and Marketing October 2, 2014

Intro to Marketing Mr. Bernstein Effects of Collegiate Sports: The Numbers Rutgers funneled $28mm of budget money into sports Sports programs cost more than they earned in 48 of 54 large state schools studied by Bloomberg in 2012 Football is often a money generator Rutgers’ move into the Big Ten will generate more TV revenue…but also more costs? Licensing and ticket revenue are correlated with winning teams, creating an “arms race” 2

Intro to Marketing Mr. Bernstein Effects of Collegiate Sports: Why do universities build programs? Rutgers athletics are <1% of overall budget The school believes their investment pays hidden dividends through positive branding, and increased exposure and visibility for both the university and the State of New Jersey 3

Intro to Marketing Mr. Bernstein Effects of Collegiate Sports: Why do universities build programs? College communities benefit from athletics Small businesses thrive on game day Major reason Penn State football did not receive the “death penalty” – it would have been a heavy penalty for innocent business persons in the local community Increases travel to the community Positive media attention 4

Intro to Marketing Mr. Bernstein Market segmentation Which do you think is most important in developing segments for marketing of college sports products? Geographics Demographics Psychographics 5