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FORBES TOP SPORT BRAND• Businesses• 1. Nike ($15.9 billion)• 2. ESPN ($11.5 billion)• 3. Adidas ($6.8 billion)• Events• 1. Super Bowl ($470 million)• 2. Summer Olympic Games ($348 million)• 3. FIFA World Cup ($147 million)• Athletes• 1. Tiger Woods ($38 million)• 2. Roger Federer ($29 million)• T3. Phil Mickelson ($26 million)• Teams• 1. New York Yankees ($363 million)• 2. Manchester United ($293 million)• 3. Real Madrid ($255 million)
TOTAL REVENUE• PREMIER LEAGUE 2,700 135,000• BUNDESLIGA 1,400 70,000• LALIGA 1,350 67,500• CALCO SERIE A 1,200 60,000• MATCH REVENUE คาตั๋ว• BROADCASTING RIGHT ลิขสิทธิ์ถายทอด• SPONSORSHIP สปอนเซอร• COMERCIAL ACTIVITY คาโฆษณา และ กิจกรรมตางๆUNIT : MIL POUND / MIL BAHT
Purchasers Adoption Media Distribution Product Pricing Facilities Competition Exchange Employees Owner buys Individual Contractual existing or branding in power Customers Loyalty Owner pays Static Adapted Single price economic builds own competitive favors facilities markets owners Fan pays Government Contractual Fans, extra for (taxpayers) Monopoly power Fans Recognition Sponsors, & Dynamic Global social right to buy pay for power favors Media pay tickets facilities players MARKET INFLUENCERS ‐ A PARADIGM SHIFT
sports marketing different from traditional marketing By understanding the differences we can understand the effectiveness of sports marketing principles.
FANS VS. CUSTOMERS What are some things you have seen fans do at a game that customers at a grocery store never do for a favorite brand? Customer Fan Fanatic One that buys goods or An ardent devotee; A person marked or motivated services. by an extreme, unreasoning An enthusiast enthusiasm, as for a cause
Value of Sports Event, Product, or Service for the Fan Fans can pay any premium over the cost of product to avail the services and product. Price of Sports Event, Product, or Service Cost of Sports Event, Product, or Service Provision *Availability of Sports Event, Product, or Service Provision FANS PRICING
We’ve recognized for several years that sport is part ofentertainment. The market now is really sports, fashion and music. We can’t expect to ignore reality and survive. ‐ Reebok president Robert MeersSPORTS IS CHANGING
• EVENT / COMPETITION• EQUIPMENT & ACCESSORIES• SPORT SERVICES / INFORMATION• SPORT AS MARKETING TOOL
Types of Sports Products• Sporting Events– Player Appearances– 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.
• MIT defined sport industry into 5 segments:• Sport Media ( marketing, broadcasting, journalist & PR )• Sport team administration ( personnel in high schools, universities,professional teams )• Sport-related engineering ( sport goods, electronic games, computer-assisted training devices )• Sport medicine ( athletic training, nutrition, psychology, rehabilitation,orthopedics)• Others ( sport finance, management, law, statistics, retail)
The Structure of the Sports IndustryConsumersSpectatorsParticipantsProductsEventsSporting GoodPersonal Trainingof SportsSports informationPlayer appearancesManufactures and MachinesOwnersSectioning BodiesCorporations or BusinessAgentsEquipment ManufacturesSpecial Interest GroupPlayersCustomersCorporations or BusinessSponsorsMedia
Consumers• Spectator: Consumers that derive a benefitfrom observing or following an event• Participant: Consumers that derive a benefitform physically participating in a organizedor unorganized armature sport at some levelof frequency
Customers• Customers: Corporations, business, andmedia (both with and without sponsorshipagreements) that leverage a sports equitiesto attract that sports consumer
The Product• A sports product is goods, services, or anycombination of the two that is designed toprovide benefits to sports consumers,customers, or manufacturers.– Goods and Services• Sporting events• Sporting goods and training• Sponsorships and Media Deals• Sports information• Player appearances, endorsement, etc– Benefits• Monetary• Ability to reach a desired audience• Entertainment and emotional connections
Manufactures and Machines• The manufacture of the sports product and theorganizations that perform some function in themarketing of sports products:– Owners: Big nae (navin)– Sectioning Bodies: Thai Premier league– Corporations or Business: Pepsi– Agents: Mark McCormack (sport agent)– Equipment Manufactures: Nike– Special Interest Group: The city of Beijing– Players:Beckham
Growth of the Global Sports Industry• Sports Equipment:– 2005 Global Sports Equipment Sales reached $64.2 Billion• +2.5% vs. 2004• Estimated to reach $72 Billion by 2010– The Americas account for 42% of the market