Chapter 02


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  • Chapter 02

    1. 1. CHAPTER 2 Marketing Basics 2.1 Marketing College Athletics 2.2 Economic Impact of College Athletics 2.3 Amateur Sports CHAPTER 2 SLIDE
    2. 2. LESSON 2.1 Marketing College Athletics <ul><li>GOALS </li></ul><ul><li>Explain the importance of the NCAA and team rankings to college sports. </li></ul><ul><li>Define market segmentation. </li></ul><ul><li>Discuss the growing market surrounding women’s college athletics. </li></ul>CHAPTER 2 SLIDE
    3. 3. Effects of Collegiate Sports <ul><li>A winning team has economic implications for school, community, region, and state </li></ul><ul><li>Fan expectation </li></ul><ul><li>Promotion of organization’s goods and services </li></ul>CHAPTER 2 SLIDE
    4. 4. Rules and Rankings <ul><li>National Collegiate Athletic Association (NCAA) —the governing body of most college and university athletic programs </li></ul><ul><li>Creates and enforces guidelines and rules </li></ul><ul><li>NCAA Corporate Partners </li></ul>CHAPTER 2 SLIDE
    5. 5. College Team Rankings <ul><li>Why so much emphasis? </li></ul><ul><li>#1 has lingering effects </li></ul>CHAPTER 2 SLIDE
    6. 6. Market Segmentation <ul><li>Market segment —a group of individuals within a larger market that share one or more characteristics </li></ul>CHAPTER 2 SLIDE
    7. 7. Five Elements of Market Segmentation <ul><li>Geographic segmentation </li></ul><ul><li>Demographic segmentation </li></ul><ul><li>Psychographics </li></ul><ul><li>Product usage </li></ul><ul><li>Benefits derived </li></ul>CHAPTER 2 SLIDE
    8. 8. Women’s College Sports <ul><li>NCAA </li></ul><ul><li>Women’s Enhancement Program </li></ul><ul><li>Increased fan support </li></ul><ul><li>Marketing opportunities in women’s sports </li></ul>CHAPTER 2 SLIDE
    9. 9. LESSON 2.2 Economic Impact of College Athletics <ul><li>GOALS </li></ul><ul><li>Understand the benefits of college sports to the home community. </li></ul><ul><li>Identify benefits of sponsorship and licensing to a team. </li></ul><ul><li>Explain the reasons for realignment of college conferences. </li></ul>CHAPTER 2 SLIDE
    10. 10. Benefits to the Community <ul><li>Good for town business </li></ul><ul><ul><li>Hotels </li></ul></ul><ul><ul><li>Restaurants </li></ul></ul><ul><ul><li>Retailers </li></ul></ul><ul><li>Good for stadium business </li></ul><ul><ul><li>Food/restaurants </li></ul></ul><ul><ul><li>Gift shops </li></ul></ul>CHAPTER 2 SLIDE
    11. 11. Sponsorships and Licensing <ul><li>Sponsorships </li></ul><ul><ul><li>Generating revenue </li></ul></ul><ul><ul><li>Name-brand apparel </li></ul></ul><ul><ul><li>Create goodwill </li></ul></ul><ul><li>Licensing </li></ul><ul><ul><li>License —the legal right to reproduce a team’s logo in exchange for payment </li></ul></ul><ul><ul><li>Protect the use of the name and symbols </li></ul></ul><ul><ul><li>Identify and associate logos </li></ul></ul>CHAPTER 2 SLIDE
    12. 12. Example <ul><li>The 2001-02 net licensing royalties for the University of North Carolina were 3.58 million </li></ul><ul><ul><li>Licensed items: clothing, posters, sunglasses, video games, software, rugs, and photographs. </li></ul></ul>CHAPTER 2 SLIDE
    13. 13. Conference Realignment <ul><li>Conference —a group of college athletic teams within the same region </li></ul><ul><li>Increase revenues </li></ul><ul><li>Create new rivalries </li></ul><ul><li>Playoff games generate additional revenue </li></ul>CHAPTER 2 SLIDE
    14. 14. Example <ul><li>Big 12 Conference </li></ul><ul><li>Teams: </li></ul><ul><ul><li>Kansas state, Nebraska, Missouri, Colorado, Kansas, Iowa State, Texas A&M, Texas, Texas Tech, Oklahoma, Oklahoma State, and Baylor </li></ul></ul>CHAPTER 2 SLIDE
    15. 15. LESSON 2.3 Amateur Sports <ul><li>GOALS </li></ul><ul><li>Discuss marketing and sponsoring of amateur sports. </li></ul><ul><li>Understand the economic benefits of amateur sports. </li></ul>CHAPTER 2 SLIDE
    16. 16. Popularity of Amateur Sports <ul><li>Amateur athlete —someone who does not get paid but plays for enjoyment, challenge, or both </li></ul>CHAPTER 2 SLIDE
    17. 17. Marketing and Sponsoring Amateur Sports <ul><li>Provides significant income for manufacturers- companies are glad to take your money </li></ul><ul><li>Minivan and sport utility vehicle </li></ul><ul><li>Retro sports jerseys- $250-$450 some jerseys </li></ul>CHAPTER 2 SLIDE
    18. 18. Local Promotion of Amateur Sports <ul><li>Fund-raising charity events- object is to get people excited about the event, so they will donate money (car washes) </li></ul><ul><li>High school athletic teams- big part of weekend life (football games) generate revenue </li></ul>CHAPTER 2 SLIDE
    19. 19. National Promotion of Amateur Sports <ul><li>Promotion used to elevate the attention of consumers- tv shows, movies, athletes, media stars </li></ul><ul><li>Lance Armstrong and Subaru & Dicks Sporting Goods, Nike etc … </li></ul>CHAPTER 2 SLIDE
    20. 20. Economic Benefits <ul><li>Minnesota’s example </li></ul><ul><ul><li>Minnesota Amateur Sports Commission </li></ul></ul><ul><ul><li>1.Create economic development through amateur sports </li></ul></ul><ul><ul><li>2.Create maximum opportunity for sport participation </li></ul></ul><ul><ul><li>3.Establish Minnesota as a national model for the Olympic and amateur sport movement </li></ul></ul>CHAPTER 2 SLIDE
    21. 21. Economic Benefits of Specific Sports <ul><li>Ice skating- shopping malls in warm weather cities </li></ul><ul><li>Soccer- success of the US Men’s and Women’s national teams (not as popular in US as Europe) </li></ul><ul><li>Basketball- pickup games, AAU, Rec. leagues </li></ul><ul><li>Baseball and softball- national tournaments, small town tournaments, local leagues </li></ul>CHAPTER 2 SLIDE