A Strategic Perspective on Sports Marketing

Objectives  Define Sports Marketing  Examine Growth  Types of Sports Consumers  Types of Sports Products  Elements of Strategic Marketing Process

What is Sports Marketing???  Brenda is a “pool player”  Angela is a “league coordinator”  Peter is an “event coordinator”  Larry is “treasurer of the VNEA”  Jessica is “the manufacturer of Falcon Cues”  Jim is “the Canadian distributor of pool tables”

Defining Sports Marketing Sports marketing is the specific application of marketing principles and processes to sport products and to the marketing of non- sports products through association with sport.

Association  Brenda – is trying to secure sponsorship  Angela – is recruiting players  Peter – is trying to find the best venue for tournaments  Larry – is the sanctioning body of the league  Jessica – wants the pool players to use her pool cues  Jim – Wants to sell pool tables to pool players, league operators and event coordinators.

Webster’s defines sport as: “a source of diversion or a physical activity engaged in for pleasure.” Entertainment – is also defined as something diverting or engaging!

Comparison Entertainment Movies Plays Theater Opera Concerts Play = Script Concert = Program Sports Spontaneous And Uncontrollable

Determining Emotions  Game is close and team wins Excitement and Joy  Game is boring and team is loses Entertainment benefit is different

A Marketing Orientation  Emphasis on satisfying the consumer 1.Intelligence generation 2.Intelligence dissemination 3.Responsiveness

Growth of the Sports Industry The Sports Industry is the eleventh largest of all U.S. industry groups. 152 Billion (1995) 1.Growth in Attendance 2.Growth in Media Coverage 3.Growth in Employment 4.Growth in Global Markets

Structure of the Sports Industry Learn by studying the different types of organizations and their involvement. Local, Recreational, National, Youth, Intercollegiate, Professional and Sanctioning Bodies.

Simplified Model of Consumer-Supplier Relationships Consumers  Spectators – observe (in person or media) -buy single tickets or season tickets  Corporate/Business – blocks of tickets, corporate box, Bring spectators to event  Purchase rights to televise – controls how and when the event will be viewed by spectators

Simplified Model of Consumer-Supplier Relationships The Participant as Consumers  Becomes active in sport at a variety of competitive levels. 1.Unorganized Sport Participants  Not sanctioned or controlled by external authority.

Simplified Model of Consumer-Supplier Relationships The Participant as Consumers 2. Organized Sport Participants  Amateur – no compensations  Professional - compensation

Simplified Model of Consumer-Supplier Relationships The Sponsors as Consumers Sports Sponsorship An exchange of money or product for the right to associate its name or product with a sporting event

Simplified Model of Consumer-Supplier Relationships The Sponsors as Consumers Sports Sponsorship Helps achieve Corporate Objectives.  Public awareness  Corporate image  Community involvement

Simplified Model of Consumer-Supplier Relationships The Sponsors as Consumers Sports Sponsorship Helps achieve Marketing Objectives.  Reach target market  Brand positioning  Increase Sales

Simplified Model of Consumer-Supplier Relationships The Sponsors as Consumers Sports Sponsorship Helps achieve Media Objectives.  Generate awareness  Enhance ad campaign  Generate Publicity

Simplified Model of Consumer-Supplier Relationships Products  Events  Sporting Goods  Personal training for sport  Sport Information

Simplified Model of Consumer-Supplier Relationships The Sports Product Is a good or service, or any combination of the two that is designed to provide benefits to a sports spectator, participant or sponsor.

Simplified Model of Consumer-Supplier Relationships Goods/Service Goods = Tangible/physical Tennis ball, skates, etc. Service = Intangible/non-physical Competitive event, lesson

Simplified Model of Consumer-Supplier Relationships Types of Sports Products 1.Sporting Events 2.Athletes 3.Arena Sporting Goods 1.Equipment 2.Licensed Merchandise 3.Collectables and Memorabilia

Simplified Model of Consumer-Supplier Relationships Producers/Intermediaries  Ownership  Sanctioning bodies  Sponsors  Media  Agents  Equipment manufacturers

Simplified Model of Consumer-Supplier Relationships Agent Responsibilities  Determine value of the player’s service  Convince a club to pay for the player  Develop a compensation package  Protect players rights  Counsel the player re- career and financial  Assist player to earn extra income, endorsements speeches and appearances

Sports Marketing Exchange Process Multiple exchanges occur Something of Value Money Time Personal Energy Entertainment Better quality of life Enhanced Image Exchange Players Sports Spectators Sports Participants Organizations Sporting events Sporting good manufacturers Teams