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  • 1. 1
  • 2. 1. To describe the basics of sports marketing. 2. To examine how sports marketing has impacted sports. 3. To discover how companies use sports marketing to reach consumers. 4. To explain the concept of target marketing. 5. To conclude sports marketing is essential to the funding of sport. 2
  • 3. • The Marketing Mix • Market Segmentation & Sports Products • Methods of Sports Marketing 3
  • 4. 4
  • 5. • Is the practice of pricing, planning, promoting, selling and distributing a company’s products • Is performed with the attempt to meet the needs and wants of consumers • Help companies to reach a competitive advantage 5 Competitive advantage - occurs when a company operates in a more efficient manner than its competitors, which causes their sales to increase above other businesses
  • 6. • Defines the key management decisions needed to be successful in marketing • Includes four basic marketing strategies, known as the “ 4 Ps” – price – product – place – promotion 6
  • 7. • Is customer driven • Relates directly to a company’s target market • Includes four interrelated concepts and tactics • Refers to the variables a company can control 7 Target market - a particular group of consumers a company classifies as the main focus of its marketing plan
  • 8. 8 Price Place ProductPromotion
  • 9. • Includes a wide range of functions and strategies, including: – creating a sales price or price list – calculating mark-up percentage – using promotional pricing techniques – understanding pricing laws and discrimination – determining discounts, credit terms and available payment methods 9
  • 10. • Includes the following: – selecting which products to buy and sell – researching and creating product designs – naming and packaging products – updating, improving or eliminating products from a product line – examining the product life cycle – adding features to an old product 10
  • 11. • Is also described as “distribution” • Refers to introduction of the product to consumers and determining appropriate transportation or delivery methods – using semi-trucks or airfreight carriers – utilizing intermediaries or wholesalers in the distribution process • Includes whether or not products should be sold online, in certain countries or globally 11
  • 12. • Relates to the timing of promotional campaigns • Refers to the type of message communicated to customers • Requires selecting media outlets • Creates activities and strategies to increase sales 12
  • 13. • Relate to sports and recreation industries because each provides: – a method of identifying place  for example: in Houston, Texas, there would be a greater demand for Houston Astros memorabilia than New York City where the Yankees play – aid for promotion  for example: major athletes endorse and promote a variety of products for numerous companies 13
  • 14. • Is all of the marketing activities designed to satisfy sports consumers • Uses mainstream or alternative sports and/or the figures associated with these sports to connect with a targeted group of consumers • Builds positive brand awareness • Supports retail and sales promotions • Can be completed either by a sports marketing firm or a general marketing firm 14 Sports consumer - an individual who may play, watch or listen to sports or read, use purchase and/or collect items related to sports
  • 15. • Focuses on the sport and activities which accompany a sporting event such as event planning, promotion, financing and sponsorship • Can be divided into two major categories – marketing of the sport • a television advertisement for the Kentucky Derby • an Internet banner advertising the Indianapolis 500 – marketing through the use of sport • Tiger Woods endorsing Nike® sportswear • Peyton Manning advertising for DirectTV® 15
  • 16. 16
  • 17. • Uses market segmentation to identify their target market; sports consumers • Has the goal of encouraging the consumer to act as a customer and purchase tickets and merchandise of the marketed sport or company • Is also involved in the marketing of sports related products 17 Market segmentation - a method of analyzing a market by using specific characteristics to identify a target market
  • 18. • Uses the following characteristics to help define a target market: – geographic location – demographics – psychographics 18 Demographics Psychographics Geographic Location
  • 19. • Is where the consumer lives – for example: the states of Kansas and Missouri are key target markets for the Kansas City Chiefs 19 MO
  • 20. • Are the statistics used to describe a population such as gender, age, race and earnings – for example: companies such as CoverGirl® and Secret® have endorsement deals with athletes such as Olympians Nastia Liukin and Shawn Johnson to help them market to young women 20
  • 21. • Are the attitudes or the opinions a consumer has toward recreational activities – for example: a company would use their money to endorse athletes in the most popular sports in a particular country or locality  England - soccer  Brazil - soccer  South Carolina - stock car racing  Texas - football 21
  • 22. • Contains broad marketing goals and objectives for an entire company • Provides direction for the marketing activities of a company for a specific period of time • Is completed to ensure a company reaps all the benefits of a particular marketing strategy • Helps a company monitor its performance when marketing products 22
  • 23. • Are the goods, services or ideas related to sports which provide satisfaction to the consumer • Make up a product lines • Can be classified into the following categories: – sporting events – sports information – sports training – sporting goods 23 Product line - a group of closely related items which are manufactured or sold by a company
  • 24. • Are the main category of sports products • Include the following examples: – games – competitions – athletes – stadiums/arenas 24
  • 25. • Is considered the actual news, statistics, schedules and stories associated with sports • Uses different media outlets such as television, radio, Internet and magazines • Includes the following examples: – Anaheim Ducks signing a new goalie – Dwyane Wade’s free throw percentage – Philadelphia Phillies season schedule 25
  • 26. • Is considered a sports service which is normally offered through a gym, fitness center or athletic department in the form of a camp, clinic or lesson • Is an intangible product • Include the following examples: – Duke Blue Devils basketball camp – swimming lessons – quarterback clinic 26 Intangible products - non-physical services
  • 27. • Are tangible products • Can be purchased at stores or other retail outlets • Include the following examples: – equipment – licensed merchandise- jerseys, t- shirts, caps – collectibles/memorabilia 27 Tangible products - physical goods which satisfy a need or want of the customer
  • 28. • Contains items which either work together or are similar in kind • Meets the need or want of a customer group • Includes the following examples: – Reebok® may have a running shoe product line which contains many different styles and colors, but they all fall into the category of running shoe 28
  • 29. • Is the total assortment of goods a company makes or sells • Includes all of the product lines offered by a company – example: • Reebok®’s product mix would include the running shoe product line as well as their lines for athletic clothing, basketball shoes, football cleats, golf shoes, etc. 29
  • 30. 30
  • 31. • Licensing • Sponsorships • Endorsements • Promotions 31
  • 32. • Is the agreement which gives a company the right to use another’s brand name, patent or intellectual property for a royalty – licensor- company or individual granting the license for a fee in a contract – licensee- company or individual paying for the rights to use the name or property 32 Royalty - a fee which is paid to the licensor
  • 33. • A video documenting a team’s path to the championship game • A Yao Ming Houston Rockets® jersey • A Pittsburgh Steelers® sweatshirt 33 Can you think of any other licensing examples in or out of the sporting industry?
  • 34. • Is the promotion of a company in association with a property or event • Generates funds for all facets of sporting venues • Helps increase a company’s branding • Can be flexible – company can sponsor all or portions of a sporting event 34 Branding - the process of forming a mental association with a company or product
  • 35. • Aflac® Player of the Game • Coca-Cola®…the official soft drink of today’s game • AT&T® Center in San Antonio: the home of the San Antonio Spurs 35 Can you think of any other examples of sponsorship?
  • 36. • Are statements of approval concerning a product or service by an individual or organization on the behalf of the producer • Generate publicity through the use of an individual’s or organizations celebrity in an advertisement • Give familiarity and credibility to a product by making it relatable to a consumer 36
  • 37. • A few of the athletes Nike® has or has had endorsements with include Tiger Woods, LeBron James and Serena Williams • Hanes® is endorsed by Michael Jordan • Canon® has an endorsement deal with Maria Sharapova 37 Can you think of other examples of endorsements?
  • 38. • Are in-game or in-concert activities designed to entertain and advertise to consumers • Provide event marketers with creative ways to entertain fans • Offer sponsors with memorable ways to advertise to consumers 38
  • 39. • Million-dollar half-time half-court shot at basketball games • Free rent half-time kick at a football game • Hamburger eating contest between the periods of a hockey game 39 Can you think of any other promotion examples?
  • 40. • Ensure companies have a solid sports marketing plan • Work with both sides of contract negotiations to ensure everyone gets what they want • Include the following examples: – Millsport – The Athletes Agency 40
  • 41. • Is a multibillion dollar global industry • Is all of the marketing activities designed to satisfy sports consumers • Uses mainstream or alternative sports and/or the figures associated with these sports to connect with a targeted group of consumers • Builds positive brand awareness, support retail and sales promotions and gain an overall advantage in their market • Can be completed either by a sports marketing firm or a general marketing firm 41
  • 42. • (2004-2009). Retrieved March 30, 2009, from Edraw Soft: www.edrawsoft.com • (2009). Retrieved March 30, 2009, from Tide.com: http://www.tide.com/en- US/index.jspx • 2009. (n.d.). Retrieved March 30, 2009, from LetsGoDigital: www.letsgodigital.org • Gilbert, S. J. (2007, October 29). Marketing Maria: Managing the Athlete Endorsement. Retrieved March 30, 2009, from Harvard Business School: http://hbswk.hbs.edu/item/5607.html 42