The document provides an overview of the sports industry and sports marketing. It discusses key topics such as: 1) The large size and continued growth of the sports industry in areas like revenues, attendance, media coverage and employment. 2) Opportunities in the sports industry through academic programs and various career paths in sports administration, marketing and other areas. 3) The concept of sports marketing and how marketing principles can be applied to sports products, events and organizations. 4) A contingency framework for strategic sports marketing that considers internal and external factors in developing marketing strategies.

1. Sports Marketing:
A Strategic Perspective
Matthew D. Shank
Professor of Marketing and Chair
Department of Management and Marketing
Northern Kentucky University

2. Understanding the Sports Industry
• Sport - Source of diversion or physical
activity engaged in for pleasure
• 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.”

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

4. Growth of Sports Industry
• The sports industry generates estimates of 213 to 350 billion dollars per year in
revenues. As ESPN founder Bill Rasmussen points out, “The games are better, and well
the athletes are just amazing and it all happens 24 hours a day. America’s sports fans are
insatiable.”
• Attendance is increasing:
– The NFL experienced a record number of fans in the 1999 season (15,710,970)
– The NBA 1999-2000 season also produced a small increase (1%) for the NBA
– MLB reached 20 million fans faster than any other year in history and attendance
increased again (3%)
– NHL continues to grow in attendance and popularity. Tracing average attendance
over the past few years, regular season numbers have increased from 14, 749
(‘93-’94) to 16,359 (‘99-’00)
– NASCAR had 11 million people attend its events in 1999
• Sports Sponsorship Spending Exceeds $1 Billion Dollar Mark
• New Leagues (AF2, XFL, WPFL, WSA, WNHL)

5. Growth of Sports Industry
• Media Coverage is Increasing
– 200 million people watched NBC coverage of the Summer Olympic Games and 3.7 billion
people who watched worldwide
– ESPN, the original sports-only network launched in 1979, reaches some 76 million homes
with its 4900 hours of sports programmingand remarkably ESPN2 reaches 65 million
viewers.
– $2.3 billion to secure the broadcast and cable rights for the Olympic Games in 2004, 2006,
and 2008
– $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
– New sports networks, such as the Golf Channel, SpeedVision, and the Women’s Sports
Network
– Internet, satellite stations and pay-per-view cable television are growing in popularity

6. Opportunities in the
Sports Industry: Academics
• Over 200 Academic Programs in Sports Administration
• NKU Marketing Track and proposed program

7. Opportunities in the
Sports Industry: Careers
• Upwards of 4.5 million Sports Related Jobs in Sports
Administration
• 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
• Marketing & Public Relations
Professional Sports
Intercollegiate Sports
Youth Sports
Olympic Sports Organizations
Regional and National Sport Commissions
Amateur Sports
Corporate Sports Marketing
Sports Marketing Firms
Licensing Firms

8. What is Sports Marketing?
• Sports Marketing - The specific application
of marketing principles and processes to
sports products and to the marketing of
non-sports products through association
with sport

9. Simplified Model of the Consumer-Supplier
Relationship in the Sports Industry
Consumers
Spectators
Participants
Corporation
s
Products
Events
Sporting
Goods
Personal
Training
Sports
Information
Producers/Intermedia
ries
Sports Labor
Sanctioning
Bodies
Sponsors
Media
Agents
Equipment
Manufacturers

10. Classification of Sports
Spectators
Individuals
Corporate
In-Person
Mediated

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

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

13. Types of Sports Products
• Sporting Events
– Athletes
– 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.

14. The Sports Marketing Exchange Process
Something of Value
Something of Value
Exchange
Players
Exchange
Players

15. Overview of the Contingency Framework for
Strategic Sports Marketing
• Foundation of any sports organization is to
design and maintain a sound, yet flexible
strategic framework
• Strategic framework that is suited to the
sports industry is the contingency
framework. Why?
• Flexible and adaptable to changes in the
marketing environment

16. Contingency Framework for Strategic Sports Marketing
fitfit
EXTERNAL
CONTINGENCIES
Competition
Legal/Political
Demographics
Technology
Culture
Physical
Environment
Economy
INTERNAL
CONTINGENCIES
Organizational
Vision
Organizational
Mission
Organizational
Objectives &
Mktg Goals
Org Strategy
Org Culture
Planning
1. Understanding Consumers
Needs
a. Mktg Research
b. Consumers as Participants
c. Consumers as Spectators
2. Market Selection Decisions
a. Market Segmentation
b. Target Markets
c. Positioning
3. Marketing Mix Decisions
a. Sports Products
b. Pricing
c. Promotion
d. Place
Implementation
Control

17. THE STRATEGIC MARKETING PROCESS
THE PLANNING PHASE
STEP 1.Understanding Consumers Needs
1. Mktg Research
2. Consumers as Participants
3. Consumers as Spectators
STEP 2: MARKET SELECTION DECISIONS
1. Segmentation Alternative
2. Target Markets
3. Positioning
STEP 3: MARKETING MIX
THE IMPLEMENTATION PHASE
THE CONTROL PHASE

18. Activities Associated with Implementation
• Organizing
• Leadership and Interaction
• Resource Acquisition and Allocation
• Coordination and Timing of Activities
• Information Management

19. Control Phase
• Sales Analysis
• Profitability Analysis
• Customer Satisfaction
• Marketing Audit

20. Environmental Contingencies
• Competition
• Technology
• Culture/Social Trends
• Physical Environment
• Regulatory/Legal/Political
• Demographic Trends
• Economy

21. Internal Contingencies
• Organizational Vision
• Organizational Mission
• Organizational Objectives & Mktg
Goals
• Organizational Strategy
• Organizational Culture

22. Organizational Mission
• Written statement about the organization’s present
situation and the direction of the organization. (what
business we are in and who we serve)
• The Green Bay Packers mission is to be a dominating
force in professional football’s competitive arena
– On the field, the Packers will continually strive to present their fans
with the highest level of performance quality available
– In their operating activities and relations with the NFL, the Packers
will also continually strive for excellence in the quality of work
performed
– Overall, the Packers will commit themselves to doing their part in
representing the State of Wisconsin with competitiveness, respect and
dignity

23. ORGANIZATIONAL OBJECTIVES vs
MARKETING GOALS
• Organizational Objectives - Signposts along the road
which help an organization focus on its long-range
purpose stated in the mission statements.
• Typically include both financial and strategic
dimensions
• Examples of financial include: growth in revenues;
growth in profits
• Examples of strategic include: enhance corporate
image; increase customer satisfaction

24. SWOT Analysis
• Internal Strengths and Weaknesses
a. Resource capabilities
b. Marketing Mix Considerations
• External Opportunities and Threats