Sports Marketing


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  • Sports Marketing

    1. 1. Sports Marketing An overview of the impact of sports marketing in Charlotte and Beyond
    2. 2. Exactly what is and what isn’t a Sport <ul><li>Exercising </li></ul><ul><li>Cheerleading </li></ul><ul><li>Chess </li></ul><ul><li>Lawn Mower Racing </li></ul><ul><li>Spelling Bee </li></ul>
    3. 3. Understanding the Sports Industry <ul><li>Sport - Source of diversion or physical activity engaged in for pleasure </li></ul><ul><li>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.” </li></ul>
    4. 4. Sports = Entertainment
    5. 5. Marketing Orientation <ul><li>Setting marketing goals and defining strategies to achieve business goals by concentrating on consumers and providing a sports product that meets the consumers need. </li></ul><ul><ul><li>Intelligence generation: Analyzing and anticipating consumer demand </li></ul></ul><ul><ul><li>Intelligence dissemination: Sharing gathered information </li></ul></ul><ul><ul><li>Responsiveness: Acting on information gathered to make a decision </li></ul></ul>
    6. 6. What is Sports Marketing <ul><li>The specific application of marketing principles and process to sports products and the marketing of non-sports products associated with sports. </li></ul><ul><ul><li>Sports Products: Experience (tickets to he game itself), Equipment, Accessories </li></ul></ul><ul><ul><li>Non-sports products: Milk, Security Systems </li></ul></ul>
    7. 7. The Sports Product <ul><li>Sports Product - A good, service, or any combination of the two that is designed to provide benefits to a sports spectator, participant or sponsor. </li></ul>
    8. 8. Types of Sports Products <ul><li>Sporting Events </li></ul><ul><ul><li>Player Appearances </li></ul></ul><ul><ul><li>Arenas/Stadia </li></ul></ul><ul><li>Sporting Goods </li></ul><ul><ul><li>$60.2 billion industry comprised of four segments (equipment, transportation, apparel, and footwear) </li></ul></ul><ul><ul><li>Collectibles and Memorabilia </li></ul></ul><ul><li>Sports Training </li></ul><ul><ul><li>Fitness and Health Services </li></ul></ul><ul><ul><li>Sports Camps and Instruction </li></ul></ul><ul><li>Sports Information </li></ul><ul><ul><li>Newspapers, Internet, Magazines, Radio, etc. </li></ul></ul>
    9. 9. What is Sports Marketing <ul><ul><li>Sports Products Non-sports products </li></ul></ul>
    10. 10. The Structure of the Sports Industry Consumers Spectators Participants Products Events Sporting Good Personal Training of Sports Sports information Player appearances Manufactures and Machines Owners Sectioning Bodies Corporations or Business Agents Equipment Manufactures Special Interest Group Players Customers Corporations or Business Sponsors Media
    11. 11. Consumers <ul><li>Spectator: Consumers that derive a benefit from observing or following an event </li></ul><ul><li>Participant: Consumers that derive a benefit form physically participating in a organized or unorganized armature sport at some level of frequency </li></ul>
    12. 12. Customers <ul><li>Customers: Corporations, business, and media (both with and without sponsorship agreements) that leverage a sports equities to attract that sports consumer </li></ul>
    13. 13. The Product <ul><li>A sports product is goods, services, or any combination of the two that is designed to provide benefits to sports consumers, customers, or manufacturers. </li></ul><ul><ul><li>Goods and Services </li></ul></ul><ul><ul><ul><li>Sporting events </li></ul></ul></ul><ul><ul><ul><li>Sporting goods and training </li></ul></ul></ul><ul><ul><ul><li>Sponsorships and Media Deals </li></ul></ul></ul><ul><ul><ul><li>Sports information </li></ul></ul></ul><ul><ul><ul><li>Player appearances, endorsement, etc </li></ul></ul></ul><ul><ul><li>Benefits </li></ul></ul><ul><ul><ul><li>Monetary </li></ul></ul></ul><ul><ul><ul><li>Ability to reach a desired audience </li></ul></ul></ul><ul><ul><ul><li>Entertainment and emotional connections </li></ul></ul></ul>
    14. 14. Manufactures and Machines <ul><li>The manufacture of the sports product and the organizations that perform some function in the marketing of sports products: </li></ul><ul><ul><li>Owners: Bob Johnson </li></ul></ul><ul><ul><li>Sectioning Bodies: NASCAR </li></ul></ul><ul><ul><li>Corporations or Business: Disney </li></ul></ul><ul><ul><li>Agents: Mark McCormack </li></ul></ul><ul><ul><li>Equipment Manufactures: Nike </li></ul></ul><ul><ul><li>Special Interest Group: The city of Charlotte </li></ul></ul><ul><ul><li>Players: Delancy Bennett (best 6’2 power forward the NBA has never seen) </li></ul></ul>
    15. 15. The Structure of the Sports Industry <ul><li>Manufactures and Machines Products Customers Consumers </li></ul><ul><li>EA Sports NCAA 2006 Wal-Mart Target etc Gamers </li></ul><ul><li>NCAA </li></ul><ul><li>SEC   </li></ul>Kudo Tsunado, vice president and general manager of EA Sports' regional headquarters in Chicago, tells Site Selection why the Second City was his company's first choice.
    16. 16. Strategic Sports Marketing Process <ul><li>The process of planning, implementing, and controlling marketing efforts to meet organizational goals and to satisfy consumer’s needs. </li></ul>
    17. 17. Sports Marketing Mix <ul><ul><li>Product </li></ul></ul><ul><ul><li>Price </li></ul></ul><ul><ul><li>Placement </li></ul></ul><ul><ul><li>Promotion </li></ul></ul>
    18. 18. Growth of the Sports Industry <ul><li>11th largest of all U.S. industry groups </li></ul><ul><li>US’s output for sports goods and services estimated at $213-350 billion annually </li></ul><ul><li>How do we measure growth in the sports industry? </li></ul><ul><li>Growth measured in….. </li></ul><ul><ul><li>Attendance Figures </li></ul></ul><ul><ul><li>Media Coverage </li></ul></ul><ul><ul><li>Employment Figures (4.5 million jobs) </li></ul></ul><ul><ul><li>Global Markets </li></ul></ul><ul><ul><li>Sports Goods </li></ul></ul><ul><ul><li>Sports Information </li></ul></ul>
    19. 19. Growth of Sports Industry <ul><li>Sporting Good Industry </li></ul><ul><ul><li>Sports Equipment (17.5 billion) </li></ul></ul><ul><ul><ul><li>Exercise equipment </li></ul></ul></ul><ul><ul><ul><li>Golf </li></ul></ul></ul><ul><ul><ul><li>Guns and Hunting </li></ul></ul></ul><ul><ul><li>Recreational Vehicle and Water Scooters (17.9) </li></ul></ul><ul><ul><li>Sports Apparel (22.3) </li></ul></ul><ul><ul><li>Footwear (9.3) </li></ul></ul><ul><li>Collectibles and Memorabilia </li></ul><ul><ul><li>1.2 billion at height in 1991 and now stable at 500 million </li></ul></ul><ul><li>Sports Information </li></ul><ul><ul><li>3.2 circulation of SI </li></ul></ul><ul><ul><li>34% use Internet for sports Info </li></ul></ul><ul><ul><li> reaches 15 million unique users </li></ul></ul>
    20. 20. Growth of Sports Industry <ul><li>Media Coverage is Increasing </li></ul><ul><ul><li>200 million people watched NBC coverage of the Summer Olympic Games and 3.7 billion people watched worldwide </li></ul></ul><ul><ul><li>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. </li></ul></ul><ul><ul><li>$2.3 billion to secure the broadcast and cable rights for the Olympic Games in 2004, 2006, and 2008 and additional $2.2 billion for 2010 and 2012 </li></ul></ul><ul><ul><li>Overall for the week, NBC averaged 26.7 million viewers in primetime, more than three times the 7.2 million for second-place CBS. ABC was third with 4.5 million, followed by Fox with 4.4 million. </li></ul></ul><ul><ul><li>$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 </li></ul></ul><ul><ul><li>New sports networks, such as the College Sports Television, Tennis Channel, Blackbelt TV, and the Women’s Sports Network </li></ul></ul><ul><ul><li>Internet, satellite stations, and pay-per-view cable television are growing in popularity </li></ul></ul>
    21. 21. Growth of the Global Sports Industry <ul><li>Sports Equipment: </li></ul><ul><ul><li>2005 Global Sports Equipment Sales reached $64.2 Billion </li></ul></ul><ul><ul><ul><li>+2.5% vs. 2004 </li></ul></ul></ul><ul><ul><ul><li>Estimated to reach $72 Billion by 2010 </li></ul></ul></ul><ul><ul><li>The Americas account for 42% of the market </li></ul></ul>
    22. 22. Opportunities in the Sports Industry: Academics <ul><li>Over 200 Academic Programs in Sports Administration </li></ul><ul><li>NKU – 120 Majors and growing </li></ul>
    23. 23. Opportunities in the Sports Industry: Careers <ul><li>Upwards of 4.5 million sports-related jobs in sports administration </li></ul><ul><li>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 </li></ul><ul><li>Marketing & Public Relations </li></ul><ul><li>Professional Sports </li></ul><ul><li>Intercollegiate Sports </li></ul><ul><li>Youth Sports </li></ul><ul><li>Olympic Sports Organizations </li></ul><ul><li>Regional and National Sport Commissions </li></ul><ul><li>Amateur Sports </li></ul><ul><li>Corporate Sports Marketing </li></ul><ul><li>Sports Marketing Firms </li></ul><ul><li>Licensing Firms </li></ul>
    24. 24. Classification of Sports Participants <ul><li>Unorganized Sports Participants </li></ul><ul><li>Organized Sports Participants Amateur </li></ul><ul><li>Youth Recreational Instructional </li></ul><ul><li>Youth Recreational Elite </li></ul><ul><li>Schools </li></ul><ul><li>Intercollegiate </li></ul><ul><li>Professional </li></ul><ul><li>Minor/Secondary </li></ul><ul><li>Major </li></ul>
    25. 25. The Sports Product Map
    26. 26. Sports in the Charlotte Metro Area
    27. 27. NASCAR <ul><li>NASCAR </li></ul><ul><ul><li>The total economic impact in 2005 </li></ul></ul><ul><ul><ul><li>NC= $5.9 billion </li></ul></ul></ul><ul><ul><ul><li>Charlotte metro area = $3.9 </li></ul></ul></ul><ul><ul><li>Racing teams based within a 1 hour driving radius: </li></ul></ul><ul><ul><ul><li>NASCAR = More than 90% of all teams </li></ul></ul></ul><ul><ul><ul><li>Busch and Craftsman = More than 50% of all teams </li></ul></ul></ul><ul><li>NASCAR Hall of Fame </li></ul><ul><ul><ul><li>$154.5 million project </li></ul></ul></ul><ul><ul><ul><li>Estimated to yield a $100 million economic impact and bring 400,000 visitors per year to NC. </li></ul></ul></ul>
    28. 28. Speedway Motor Sports <ul><li>Location: Concord NC </li></ul><ul><li>2nd largest speedway facilities operator in the US </li></ul><ul><li>Sales $567 Million </li></ul><ul><ul><li>Lowes Motor Speedway (Sales $ 23.1 Million) </li></ul></ul><ul><ul><li>Other Tracks </li></ul></ul><ul><ul><ul><li>Atlanta Speedway </li></ul></ul></ul><ul><ul><ul><li>Las Vegas Motor Speedway </li></ul></ul></ul><ul><ul><ul><li>Texas Motor Speedway </li></ul></ul></ul>
    29. 29. Carolina Panthers (American) Football <ul><li>Current Team value $878 Million </li></ul><ul><ul><li>Jerry Richardson bought the team in 1993 for $206 Million </li></ul></ul><ul><ul><li>20 year $140 million stadium naming rights agreement </li></ul></ul><ul><ul><ul><li>Bank of America Stadium </li></ul></ul></ul><ul><ul><ul><li>6 th largest naming rights deal in sports history </li></ul></ul></ul><ul><ul><li>Major Sponsors </li></ul></ul><ul><ul><ul><li>Carolinas Medical Center </li></ul></ul></ul><ul><ul><ul><li>Pepsi </li></ul></ul></ul><ul><ul><ul><li>Budweiser </li></ul></ul></ul><ul><ul><ul><li>Miller </li></ul></ul></ul><ul><ul><ul><li>Chrysler Dodge Jeep </li></ul></ul></ul>Key Figures
    30. 30. Carolina Panthers (American) Football <ul><li>Team Valuation </li></ul>
    31. 31. Charlotte Bobcats <ul><li>Current Team Value: $277 million </li></ul><ul><ul><li>Robert Johnson (Net Worth: $1 billion), bought the team in 2003 for $300 million. </li></ul></ul><ul><li>Major corporate sponsors are </li></ul><ul><ul><li>Coca-Cola </li></ul></ul><ul><ul><li>Anheuser-Busch </li></ul></ul><ul><ul><li>Presbyterian Hospital </li></ul></ul>Key Figures
    32. 32. Wachovia Open <ul><ul><li>TV broadcast reaches more than 140 countries </li></ul></ul><ul><ul><li>Generates over $45 million in economic activity in Charlotte </li></ul></ul><ul><ul><li>Over 200,000 fans attend the event annually </li></ul></ul><ul><ul><li>The event raised over $5.6 million for charity between 2003 and 2006 </li></ul></ul>
    33. 33. Other Regional Sports Entities <ul><li>Charlotte Checkers (Minor League Soccer) </li></ul><ul><li>Carolina Hurricanes (2006 NHL Stanley Cup winners) </li></ul><ul><li>Charlotte White Water Rapids Center </li></ul><ul><li>College Sports </li></ul><ul><ul><li>UNC Charlotte </li></ul></ul><ul><ul><li>Duke </li></ul></ul><ul><ul><li>Wake Forest </li></ul></ul><ul><ul><li>UNC Chapel Hill </li></ul></ul><ul><ul><li>NC State </li></ul></ul><ul><ul><li>Appalachian State University </li></ul></ul><ul><ul><ul><li>2005 & 2006 National Division II Football Champions </li></ul></ul></ul><ul><ul><ul><li>Beat #5 Michigan (at Michigan) to kick off the 2007 season </li></ul></ul></ul><ul><ul><li>ACC Headquarters (Greensboro NC) </li></ul></ul><ul><ul><li>University of South Carolina (SEC football) </li></ul></ul>
    34. 34. References <ul><ul><li>1: John E. 1 Connaughton, Ronald A Madsen, UNCC Belk School of Business as reported in Economic Development Quarterly, May2007, Vol. 21 Issue 2, p185-197, 13p Sage Publications Inc </li></ul></ul><ul><ul><li>,,5258,00.html </li></ul></ul><ul><ul><li> </li></ul></ul><ul><ul><li> </li></ul></ul><ul><ul><li>Several slides are directly supplied by power point prepared by Pearson-Prentice Hall as a teaching aide to “Sports Marketing a Strategic Perspective”, 3 rd Edition by Shank </li></ul></ul>