Sports marketing

1. Sports Marketing
Sports Marketing
An overview of the impact of sports
An overview of the impact of sports
marketing in Charlotte and Beyond
marketing in Charlotte and Beyond

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2
Exactly what is and what isn’t a
Exactly what is and what isn’t a
Sport
Sport
Exercising
Exercising
Cheerleading
Cheerleading
Chess
Chess
Lawn Mower Racing
Lawn Mower Racing
Spelling Bee
Spelling Bee

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

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Sports = Entertainment
Sports = Entertainment

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Marketing Orientation
Marketing Orientation
Setting marketing goals and defining
Setting marketing goals and defining
strategies to achieve business goals
strategies to achieve business goals
by concentrating on consumers and
by concentrating on consumers and
providing a sports product that
providing a sports product that
meets the consumers need.
meets the consumers need.
– Intelligence generation: Analyzing and
Intelligence generation: Analyzing and
anticipating consumer demand
anticipating consumer demand
– Intelligence dissemination: Sharing
Intelligence dissemination: Sharing
gathered information
gathered information
– Responsiveness: Acting on information
Responsiveness: Acting on information
gathered to make a decision
gathered to make a decision

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What is Sports Marketing
What is Sports Marketing
The specific application of marketing
The specific application of marketing
principles and process to sports
principles and process to sports
products and the marketing of non-
products and the marketing of non-
sports products associated with
sports products associated with
sports.
sports.
– Sports Products: Experience (tickets to
Sports Products: Experience (tickets to
he game itself), Equipment, Accessories
he game itself), Equipment, Accessories
– Non-sports products: Milk, Security
Non-sports products: Milk, Security
Systems
Systems

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

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

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What is Sports Marketing
What is Sports Marketing
– Sports Products
Sports Products Non-sports
Non-sports
products
products

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The Structure of the Sports Industry
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

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Consumers
Consumers
Spectator: Consumers that derive a
Spectator: Consumers that derive a
benefit from observing or following
benefit from observing or following
an event
an event
Participant: Consumers that derive a
Participant: Consumers that derive a
benefit form physically participating
benefit form physically participating
in a organized or unorganized
in a organized or unorganized
armature sport at some level of
armature sport at some level of
frequency
frequency

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Customers
Customers
Customers: Corporations, business,
Customers: Corporations, business,
and media (both with and without
and media (both with and without
sponsorship agreements) that
sponsorship agreements) that
leverage a sports equities to attract
leverage a sports equities to attract
that sports consumer
that sports consumer

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The Product
The Product
A sports product is goods, services, or any
A sports product is goods, services, or any
combination of the two that is designed to
combination of the two that is designed to
provide benefits to sports consumers, customers,
provide benefits to sports consumers, customers,
or manufacturers.
or manufacturers.
– Goods and Services
Goods and Services
Sporting events
Sporting events
Sporting goods and training
Sporting goods and training
Sponsorships and Media Deals
Sponsorships and Media Deals
Sports information
Sports information
Player appearances, endorsement, etc
Player appearances, endorsement, etc
– Benefits
Benefits
Monetary
Monetary
Ability to reach a desired audience
Ability to reach a desired audience
Entertainment and emotional connections
Entertainment and emotional connections

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Manufactures and Machines
Manufactures and Machines
The manufacture of the sports product and the
The manufacture of the sports product and the
organizations that perform some function in the
organizations that perform some function in the
marketing of sports products:
marketing of sports products:
– Owners: Bob Johnson
Owners: Bob Johnson
– Sectioning Bodies: NASCAR
Sectioning Bodies: NASCAR
– Corporations or Business: Disney
Corporations or Business: Disney
– Agents: Mark McCormack
Agents: Mark McCormack
– Equipment Manufactures: Nike
Equipment Manufactures: Nike
– Special Interest Group: The city of Charlotte
Special Interest Group: The city of Charlotte
– Players: Delancy Bennett (best 6’2 power forward the
Players: Delancy Bennett (best 6’2 power forward the
NBA has never seen)
NBA has never seen)

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The Structure of the Sports Industry
The Structure of the Sports Industry
Manufactures and Machines
Manufactures and Machines Products
Products Customers
Customers Consumers
Consumers
EA Sports
EA Sports NCAA 2006
NCAA 2006 Wal-Mart Target etc
Wal-Mart Target etc Gamers
Gamers
NCAA
NCAA
SEC
SEC
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.

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Strategic Sports Marketing
Strategic Sports Marketing
Process
Process
The process of planning,
The process of planning,
implementing, and controlling
implementing, and controlling
marketing efforts to meet
marketing efforts to meet
organizational goals and to satisfy
organizational goals and to satisfy
consumer’s needs.
consumer’s needs.

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Sports Marketing Mix
Sports Marketing Mix
Product
Product
Price
Price
Placement
Placement
Promotion
Promotion

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Growth of the Sports Industry
Growth of the Sports Industry
11th largest of all U.S. industry groups
11th largest of all U.S. industry groups
US’s output for sports goods and services
US’s output for sports goods and services
estimated at $213-350 billion annually
estimated at $213-350 billion annually
How do we measure growth in the sports industry?
How do we measure growth in the sports industry?
Growth measured in…..
Growth measured in…..
– Attendance Figures
Attendance Figures
– Media Coverage
Media Coverage
– Employment Figures (4.5 million jobs)
Employment Figures (4.5 million jobs)
– Global Markets
Global Markets
– Sports Goods
Sports Goods
– Sports Information
Sports Information

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Growth of Sports Industry
Growth of Sports Industry
Sporting Good Industry
Sporting Good Industry
– Sports Equipment (17.5 billion)
Sports Equipment (17.5 billion)
Exercise equipment
Exercise equipment
Golf
Golf
Guns and Hunting
Guns and Hunting
– Recreational Vehicle and Water Scooters (17.9)
Recreational Vehicle and Water Scooters (17.9)
– Sports Apparel (22.3)
Sports Apparel (22.3)
– Footwear (9.3)
Footwear (9.3)
Collectibles and Memorabilia
Collectibles and Memorabilia
– 1.2 billion at height in 1991 and now stable at 500 million
1.2 billion at height in 1991 and now stable at 500 million
Sports Information
Sports Information
– 3.2 circulation of SI
3.2 circulation of SI
– 34% use Internet for sports Info
34% use Internet for sports Info
– ESPN.com reaches 15 million unique users
ESPN.com reaches 15 million unique users

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Growth of Sports Industry
Growth of Sports Industry
Media Coverage is Increasing
Media Coverage is Increasing
– 200 million people watched NBC coverage of the Summer Olympic Games
200 million people watched NBC coverage of the Summer Olympic Games
and 3.7 billion people watched worldwide
and 3.7 billion people watched worldwide
– ESPN, the original sports-only network launched in 1979, reaches some 76
ESPN, the original sports-only network launched in 1979, reaches some 76
million homes with its 4900 hours of sports programming
million homes with its 4900 hours of sports programming and, remarkably,
and, remarkably,
ESPN2 reaches 65 million viewers.
ESPN2 reaches 65 million viewers.
– $2.3 billion to secure the broadcast and cable rights for the Olympic Games
$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
in 2004, 2006, and 2008 and additional $2.2 billion for 2010 and 2012
– Overall for the week, NBC averaged 26.7 million viewers in primetime, more
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
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.
million, followed by Fox with 4.4 million.
– $2.64 billion paid by NBC and Turner Sports to televise NBA contests, $18
$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
billion paid by the networks for the NFL, $2.5 billion for post season MLB
– New sports networks, such as the College Sports Television, Tennis Channel,
New sports networks, such as the College Sports Television, Tennis Channel,
Blackbelt TV, and the Women’s Sports Network
Blackbelt TV, and the Women’s Sports Network
– Internet, satellite stations, and pay-per-view cable television are growing in
Internet, satellite stations, and pay-per-view cable television are growing in
popularity
popularity

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Growth of the Global Sports Industry
Growth of the Global Sports Industry
Sports Equipment:
Sports Equipment:
– 2005 Global Sports Equipment Sales reached $64.2 Billion
2005 Global Sports Equipment Sales reached $64.2 Billion
+2.5% vs. 2004
+2.5% vs. 2004
Estimated to reach $72 Billion by 2010
Estimated to reach $72 Billion by 2010
– The Americas account for 42% of the market
The Americas account for 42% of the market

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Opportunities in the
Opportunities in the
Sports Industry: Academics
Sports Industry: Academics
Over 200 Academic Programs in Sports Administration
Over 200 Academic Programs in Sports Administration
NKU – 120 Majors and growing
NKU – 120 Majors and growing

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

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

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The Sports Product Map
The Sports Product Map

26. Sports in the Charlotte Metro
Sports in the Charlotte Metro
Area
Area

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NASCAR
NASCAR
NASCAR
NASCAR
– The total economic impact in 2005
The total economic impact in 2005
NC= $5.9 billion
NC= $5.9 billion
Charlotte metro area = $3.9
Charlotte metro area = $3.9
– Racing teams based within a 1 hour driving
Racing teams based within a 1 hour driving
radius:
radius:
NASCAR = More than 90% of all teams
NASCAR = More than 90% of all teams
Busch and Craftsman = More than 50% of all teams
Busch and Craftsman = More than 50% of all teams
NASCAR Hall of Fame
NASCAR Hall of Fame
$154.5 million project
$154.5 million project
Estimated to yield a $100 million economic impact
Estimated to yield a $100 million economic impact
and bring 400,000 visitors per year to NC.
and bring 400,000 visitors per year to NC.

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Speedway Motor Sports
Speedway Motor Sports
Location: Concord NC
Location: Concord NC
2nd largest speedway facilities operator in
2nd largest speedway facilities operator in
the US
the US
Sales $567 Million
Sales $567 Million
– Lowes Motor Speedway (Sales $ 23.1 Million)
Lowes Motor Speedway (Sales $ 23.1 Million)
– Other Tracks
Other Tracks
Atlanta Speedway
Atlanta Speedway
Las Vegas Motor Speedway
Las Vegas Motor Speedway
Texas Motor Speedway
Texas Motor Speedway

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Carolina Panthers (American)
Carolina Panthers (American)
Football
Football
Current Team value $878 Million
Current Team value $878 Million
– Jerry Richardson bought the team in 1993 for
Jerry Richardson bought the team in 1993 for
$206 Million
$206 Million
– 20 year $140 million stadium naming rights
20 year $140 million stadium naming rights
agreement
agreement
Bank of America Stadium
Bank of America Stadium
6
6th
th
largest naming rights deal in sports history
largest naming rights deal in sports history
– Major Sponsors
Major Sponsors
Carolinas Medical Center
Carolinas Medical Center
Pepsi
Pepsi
Budweiser
Budweiser
Miller
Miller
Chrysler Dodge Jeep
Chrysler Dodge Jeep
Key Figures

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Carolina Panthers (American)
Carolina Panthers (American)
Football
Football
Team Valuation
Team Valuation

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Charlotte Bobcats
Charlotte Bobcats
Current Team Value: $277 million
Current Team Value: $277 million
– Robert Johnson (Net Worth: $1 billion), bought the team in
Robert Johnson (Net Worth: $1 billion), bought the team in
2003 for $300 million.
2003 for $300 million.
Major corporate sponsors are
Major corporate sponsors are
– Coca-Cola
Coca-Cola
– Anheuser-Busch
Anheuser-Busch
– Presbyterian Hospital
Presbyterian Hospital
Key Figures

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Wachovia Open
Wachovia Open
– TV broadcast reaches more than 140
TV broadcast reaches more than 140
countries
countries
– Generates over $45 million in economic
Generates over $45 million in economic
activity in Charlotte
activity in Charlotte
– Over 200,000 fans attend the event
Over 200,000 fans attend the event
annually
annually
– The event raised over $5.6 million for
The event raised over $5.6 million for
charity between 2003 and 2006
charity between 2003 and 2006

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Other Regional Sports Entities
Other Regional Sports Entities
Charlotte Checkers (Minor League Soccer)
Charlotte Checkers (Minor League Soccer)
Carolina Hurricanes (2006 NHL Stanley Cup winners)
Carolina Hurricanes (2006 NHL Stanley Cup winners)
Charlotte White Water Rapids Center
Charlotte White Water Rapids Center
College Sports
College Sports
– UNC Charlotte
UNC Charlotte
– Duke
Duke
– Wake Forest
Wake Forest
– UNC Chapel Hill
UNC Chapel Hill
– NC State
NC State
– Appalachian State University
Appalachian State University
2005 & 2006 National Division II Football Champions
2005 & 2006 National Division II Football Champions
Beat #5 Michigan (at Michigan) to kick off the 2007 season
Beat #5 Michigan (at Michigan) to kick off the 2007 season
– ACC Headquarters (Greensboro NC)
ACC Headquarters (Greensboro NC)
– University of South Carolina (SEC football)
University of South Carolina (SEC football)

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References
References
– 1:
1: John E.
John E.1
1 Connaughton, Ronald A Madsen, UNCC Belk School of
Connaughton, Ronald A Madsen, UNCC Belk School of
Business as reported in Economic Development Quarterly, May2007, Vol.
Business as reported in Economic Development Quarterly, May2007, Vol.
21 Issue 2, p185-197, 13p
21 Issue 2, p185-197, 13p Sage Publications Inc
Sage Publications Inc
– www.wachoviachampionship.com/pages/0,,5258,00.html
www.wachoviachampionship.com/pages/0,,5258,00.html
– Hoovers.com
Hoovers.com
– Forbes.com
Forbes.com
– Several slides are directly supplied by power point prepared by Pearson-Prentice
Several slides are directly supplied by power point prepared by Pearson-Prentice
Hall as a teaching aide to “Sports Marketing a Strategic Perspective”, 3
Hall as a teaching aide to “Sports Marketing a Strategic Perspective”, 3rd
rd
Edition
Edition
by Shank
by Shank