1. Sports Marketing: A Strategic Perspective
Matthew D. Shank
Professor of Marketing and Chair
Department of Management and Marketing
Northern Kentucky University

2. Understanding the Sports Industry
Sport - Source of diversion or physical activity engaged in for pleasure
Sports as Entertainment - Reebok president Robert Meers, “We’ve recognized for several years that sport is part of entertainment. The market now is really sports, fashion and music. We can’t expect to ignore reality and survive.”

3. Growth of the Sports Industry
11th largest of all U.S. industry groups
Nation’s output for sports goods and services estimated at $ billion annually
How do we measure growth in the sports industry?
Growth measured in…..
Attendance Figures
Media Coverage
Employment Figures (4.5 million jobs)
International Markets

4. Growth of Sports Industry
The sports industry generates estimates of 213 to 350 billion dollars per year in revenues. As ESPN founder Bill Rasmussen points out, “The games are better, and well the athletes are just amazing and it all happens 24 hours a day. America’s sports fans are insatiable.”
Attendance is increasing:
The NFL experienced a record number of fans in the 1999 season (15,710,970)
The NBA season also produced a small increase (1%) for the NBA
MLB reached 20 million fans faster than any other year in history and attendance increased again (3%)
NHL continues to grow in attendance and popularity. Tracing average attendance over the past few years, regular season numbers have increased from 14, 749 (‘93-’94) to 16,359 (‘99-’00)
NASCAR had 11 million people attend its events in 1999
Sports Sponsorship Spending Exceeds $1 Billion Dollar Mark
New Leagues (AF2, XFL, WPFL, WSA, WNHL)

5. Growth of Sports Industry
Media Coverage is Increasing
200 million people watched NBC coverage of the Summer Olympic Games and 3.7 billion people who watched worldwide
ESPN, the original sports-only network launched in 1979, reaches some 76 million homes with its 4900 hours of sports programming and remarkably ESPN2 reaches 65 million viewers.
$2.3 billion to secure the broadcast and cable rights for the Olympic Games in 2004, 2006, and 2008
$2.64 billion paid by NBC and Turner Sports to televise NBA contests, $18 billion paid by the networks for the NFL, $2.5 billion for post season MLB
New sports networks, such as the Golf Channel, SpeedVision, and the Women’s Sports Network
Internet, satellite stations and pay-per-view cable television are growing in popularity

6. Opportunities in the Sports Industry: Academics
Over 200 Academic Programs in Sports Administration
NKU Marketing Track and proposed program

7. Opportunities in the Sports Industry: Careers
Upwards of 4.5 million Sports Related Jobs in Sports Administration
13 career areas in sport. These include: event suppliers, event management and marketing, sports media, sports sponsorship, athlete services, sports commissions, sports lawyers, manufacturers and distribution, facilities and facility suppliers, teams, leagues, college athletics, and finance
Marketing & Public Relations
Professional Sports
Intercollegiate Sports
Youth Sports
Olympic Sports Organizations
Regional and National Sport Commissions
Amateur Sports
Corporate Sports Marketing
Sports Marketing Firms
Licensing Firms

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

9. Simplified Model of the Consumer-Supplier Relationship in the Sports Industry
Producers/Intermediaries
Sports Labor
Sanctioning Bodies
Sponsors
Media
Agents
Equipment Manufacturers
Products
Events
Sporting Goods
Personal Training
Sports Information
Consumers
Spectators
Participants
Corporations

10. Classification of Sports Spectators
Mediated
In-Person
Individuals
Corporate

11. Classification of Sports Participants
Unorganized Sports Participants
Organized Sports Participants Amateur
Youth Recreational Instructional
Youth Recreational Elite
Schools
Intercollegiate
Professional
Minor/Secondary
Major

12. The Sports Product
Sports Product - A good, a service or any combination of the two that is designed to provide benefits to a sports spectator, participant or sponsor.

13. Types of Sports Products
Sporting Events
Athletes
Arenas/Stadia
Sporting Goods
$60.2 billion industry comprised of four segments (equipment, transportation, apparel, and footwear)
Collectibles and Memorabilia
Sports Training
Fitness and Health Services
Sports Camps and Instruction
Sports Information
Newspapers, Internet, Magazines, Radio, etc.

14. The Sports Marketing Exchange Process
Something of Value
Exchange Players
Exchange Players
Something of Value

15. Overview of the Contingency Framework for Strategic Sports Marketing
Foundation of any sports organization is to design and maintain a sound, yet flexible strategic framework
Strategic framework that is suited to the sports industry is the contingency framework. Why?
Flexible and adaptable to changes in the marketing environment

16. Contingency Framework for Strategic Sports Marketing
Planning
1. Understanding Consumers Needs
a. Mktg Research
b. Consumers as Participants
c. Consumers as Spectators
2. Market Selection Decisions
a. Market Segmentation
b. Target Markets
c. Positioning
3. Marketing Mix Decisions
a. Sports Products
b. Pricing
c. Promotion
d. Place
Implementation
Control
fit
fit
EXTERNAL
CONTINGENCIES
Competition
Legal/Political
Demographics
Technology
Culture
Physical Environment
Economy
INTERNAL
CONTINGENCIES
Organizational Vision
Organizational Mission
Organizational Objectives & Mktg Goals
Org Strategy
Org Culture

17. THE STRATEGIC MARKETING PROCESS
THE PLANNING PHASE
STEP 1.Understanding Consumers Needs
1. Mktg Research
2. Consumers as Participants
3. Consumers as Spectators
STEP 2: MARKET SELECTION DECISIONS 1. Segmentation Alternative
2. Target Markets
3. Positioning
STEP 3: MARKETING MIX
THE IMPLEMENTATION PHASE
THE CONTROL PHASE

18. Activities Associated with Implementation
Organizing
Leadership and Interaction
Resource Acquisition and Allocation
Coordination and Timing of Activities
Information Management

19. Control Phase Sales Analysis Profitability Analysis
Customer Satisfaction
Marketing Audit

20. Environmental Contingencies
Competition
Technology
Culture/Social Trends
Physical Environment
Regulatory/Legal/Political
Demographic Trends
Economy

21. Internal Contingencies
Organizational Vision
Organizational Mission
Organizational Objectives & Mktg Goals
Organizational Strategy
Organizational Culture

22. Organizational Mission
Written statement about the organization’s present situation and the direction of the organization. (what business we are in and who we serve)
The Green Bay Packers mission is to be a dominating force in professional football’s competitive arena
On the field, the Packers will continually strive to present their fans with the highest level of performance quality available
In their operating activities and relations with the NFL, the Packers will also continually strive for excellence in the quality of work performed
Overall, the Packers will commit themselves to doing their part in representing the State of Wisconsin with competitiveness, respect and dignity

23. ORGANIZATIONAL OBJECTIVES vs MARKETING GOALS
Organizational Objectives - Signposts along the road which help an organization focus on its long-range purpose stated in the mission statements.
Typically include both financial and strategic dimensions
Examples of financial include: growth in revenues; growth in profits
Examples of strategic include: enhance corporate image; increase customer satisfaction

24. SWOT Analysis Internal Strengths and Weaknesses
a. Resource capabilities
b. Marketing Mix Considerations
External Opportunities and Threats