1. Chapter 3 Marketing Principles Applied to Sport Management

2. What Is Sport Marketing?
Create demand
Create, Promote, Deliver goods to consumers
Obtain the best possible understanding of what consumers want
Includes the marketing of
products, such as equipment, apparel, and footwear
services, such as skill lessons or club memberships
entities, such as leagues, teams, or individuals

3. History of Sport Marketing
Mark McCormack
Founder of IMG; first sport marketing firm in 1960s
Now international and broad categories
Categories
Sport Broadcasting
Sponsorship
Promotional Strategies
Research

4. Evolution of Sport Broadcasting
From pure, factual reporting aimed at sport fans to sport entertainment aimed at masses
Roone Arledge: ABC Monday Night Football; combined entertainment and sports
Led to proliferation of sport channels
ESPN (ESPN2, etc.)
Big Ten Network
© Comstock Images/Getty Images

5. Sport Sponsorship Sponsorship:
The acquisition of rights to affiliate or directly associate with a product or event for purpose of deriving benefits related to that affiliation
Albert G. Spalding
Use of the word official
Mark McCormack
Built IMG through golfer Arnold Palmer
Nike and Air Jordan
Packaging of the Nike brand, product, advertising, and athlete into one personality
Ambush marketing

6. Product Extension and Promotion
Bill Veeck
Team must provide reasons other than the game itself for people to attend and support franchise.
Create the greatest joy for the greatest number of people
Ensure a pleasurable attending experience
Create conversation

7. Research in Sport Marketing
Matt Levine
Credited with formalizing customer research in sport industry; audience audit, intercepts, focus groups
Pass-by interviews:
On-site interviews in heavy traffic areas such as malls
San Jose Sharks logo and colors changed as a result of pass-by interviews

8. The Marketing Mix
Controllable variables that company puts together to satisfy a target group
4 Ps:
Product (actual event vs. experience)
Price (depends on value or perceived value)
Place (preselling and exceptional locations)
Promotion (advertising, personal selling, publicity, and sales promotion, public relations)

9. Segmentation
Identifying subgroups of overall marketplace based on demographic, geographic, psychographic & product usage
Ethnic marketing
Growth of Hispanic population, ESPN Deportes
Generational marketing
Generation Y and action sports

10. Fan Identification
The personal commitment and emotional involvement customers have with sport organization
Enhanced long-term loyalty in sport fans
Sponsorship opportunities resulting from ability to tap into strong emotional connection between a fan and his or her sport team
© Photos.com

11. Relationship Marketing
Builds mutually satisfying long term relations with key parties (consumers, suppliers, distributors)
Begins with customer and encourages integration of the customer into the company
Builds relationships through communication, satisfaction, and service
Examples:
Loyal fan gift rewards, special access to players, and special access to information

12. Key Skills Oral and written communication Data analysis
Computer capabilities
Personnel management
Sales
Education
Understanding of the sport product
© Photos.com

13. Current Issues: Cost of Attendance
Drastic increase in cost of attending MLB, NBA, NHL, and NFL games
Increasing evidence that sport fans are not willing or able to pay such prices
Do not see the value of attending a game
Significant challenge for sport marketers is to develop relationship marketing strategies
Key challenge for anyone in team sport marketing is increasing revenues for sport teams

14. Current Issues: Database Marketing
Creating a database that includes consumer names, addresses, and other demographic information
Managing database by developing and delivering integrated marketing programs
Including promotions and sales offers to targeted consumer segments
Database marketing is often an integral factor in a company’s decision to sponsor an event

15. Current Issues: Cluttered Marketplace
Numerous and varied entertainment options are available to a consumer with leisure time
Added technological options for the next generation of sport fans
Marketplace cluttered for sponsors
Rise in number of athletes and events, increase in number of advertising opportunities available
Future
Heightened focus on marketing mainstream sports to youth; increased challenge for sport entity to demonstrate how sponsor will benefit from a sponsorship

16. Current Issues: Image
Development and cultivation of a positive image is becoming increasingly important in sport marketing.
Cluttered marketplace: Imperative that corporations identify sports, events, or athletes that have unique images
Corporate and athlete ethical scandals
Result:
Corporations are more discerning in ways that they spend their sponsorship and endorsement dollars; they may now spend more on nonprofit organizations and causes.