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Sport Marketing (2003)

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2003 presentation on Sport Marketing

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Sport Marketing (2003)

  1. 1. Sport Marketing October 14, 2003
  2. 2. Sport Marketing • Is the process of designing and implementing activities for the production, pricing, promotion, and distribution of a sport product to satisfy the needs or desires of consumers and to achieve the company’s objectives. • **It is the most important function of a sport business.
  3. 3. Sport Marketing Plan • Comprehensive frameworks for identifying and achieving an organization’s marketing goals and objectives
  4. 4. Marketing Mix • 4 P’s – Product – Price – Place – Promotion • Market position refers to the way a company uses its marketing mix to influence the consumer’s perception of a product.
  5. 5. Product • The centerpiece of a marketing mix • The product is something that will satisfy something the consumer needs or wants. • Includes: – People, places, goods, services & ideas
  6. 6. Price • Price affects the product’s success, status quo for the product, and the consumer’s perception of the product.
  7. 7. Place • Is where and how a company gets a product from its production or origination point to a place where the targeted consumer can have access to it. • Sport activities are manufactured and consumed simultaneously.
  8. 8. Promotion • The integrated communication and public relations activities that communicate, inform, persuade, and motivate consumers to purchase the product. • Advertising or making people aware
  9. 9. Step #1: Mission • The company’s purpose may be found in its stated mission. • Example: An intercollegiate athletics program’s mission may be “to provide athletic participation opportunities for the college student.” • The company will offer products with the intention of meeting the company’s mission.
  10. 10. Step #2- Analyze the Product • Tangible good: Shoes, apparel, sporting equipment • Support services: Officials, trainers, sport psychologist • Game/event: Core product, product extensions
  11. 11. Step #3 Projecting the Climate • Assessing internal and external factors • Internal factors: – Players, owners, team management, and staff personnel • External factors: – Media, corporate sponsors, advertisers, spectators, regulations
  12. 12. SWOT Analysis S = Strengths W = Weaknesses Controllable Factors Ex. Products, Services, Financial Resources O = Opportunity T = Threats Uncontrollable Factors Ex. Competition, Demographic Shifts, the Economy, Technological Advances
  13. 13. Step #4-Positioning the Product • Objective is to differentiate the sport product from competing products by creating a distinctive image of the product. – The type of consumer – The design/benefits of the product – The price – Where the product takes place
  14. 14. Step #5-Analyzing & Targeting Consumers • Involves grouping consumers according to common characteristics. – Demographics – Psychographics – Media Preferences – Purchasing behavior – -Geographics
  15. 15. Market Segmentation Main Bases •Geographic Segmentation Region or location Size of City Density Climate
  16. 16. Eleven Regions of Sport Involvement
  17. 17. Eleven Regions of Sport Involvement New England: Eastern Cradle
  18. 18. Eleven Regions of Sport Involvement North Carolina & South Carolina: Carolinas
  19. 19. Eleven Regions of Sport Involvement Arkansas, Louisiana, Alabama, Georgia, Florida: Pigskin Cult
  20. 20. Eleven Regions of Sport Involvement South Florida: South Florida
  21. 21. Eleven Regions of Sport Involvement Pittsburgh & Buffalo: Mills and Mines
  22. 22. Eleven Regions of Sport Involvement Michigan, Illinois, Indiana, Ohio, Kentucky: American Heartland
  23. 23. Eleven Regions of Sport Involvement Arkansas, Montana, North Dakota, South Dakota, Minnesota, Nebraska, Missouri, Iowa, Wisconsin: Sport for Sport’s Sake
  24. 24. Eleven Regions of Sport Involvement Idaho, Wyoming, Colorado: Rocky Mountain High
  25. 25. Eleven Regions of Sport Involvement Texas and Oklahoma: Texas Southwest
  26. 26. Eleven Regions of Sport Involvement Nevada, Utah, Arizona: Cowboys and Mormons
  27. 27. Eleven Regions of Sport Involvement Pacific West Coast & Hawaii: Pacific Cornucopia
  28. 28. Market Segmentation Main Bases •Geographic Segmentation Region or location Size of City Density Climate •Demographic Segmentation Gender Age Income Nationality/Ethnicity
  29. 29. The Female Market •Women have been considered a special segment for over a century •Female fan base in sports dominated by men is leveling •43% female fan base in the NFL •Women purchase 70% of all NFL- licensed products •Female market is growing
  30. 30. Cohorts •Term “cohorts” used in marketing to refer to generations (ex. Baby boomer cohort, Generation Y cohort).
  31. 31. Mature’s Boomer’s 13er’s (Gen. Y)/ & X’s Diversity Uncomfortable Somewhat Comfortable Very Comfortable- May act as bridge Leisure Reward Point of Life Relief Work Inevitable Adventure Difficult Challenge Education Gift Birthright A method used to get ahead. Large number of dropouts Money Save Spend Hedge Future Save for a rainy day Now is more important Uncertain but manageable Technology Difficult Challenge Completely Comfortable and Proficient Learning Classroom/ On the Job Classroom and some experiential Experiential- able to Parallel Think Approach Careful, cautious Ready Aim Fire Ready Aim Fire Yacovinch as cited by Dr. Patrcia Boverie * ‘Tweeners, share the values of 2 groups
  32. 32. Youth Market •Often the target of sport promotions •Today’s youth market different from years in the past Interested in alpha brands (Nike, Levis) Immune to tried and true brand strategies •Companies are repackaging sport with youth market specifically in mind
  33. 33. Senior Market •By 2025, the over-50 market will grow by 75% •By 2025, the under-50 market will grow by 1% •More sport research about the mature market •Grassroot organizations cashing in on this market
  34. 34. Market Segmentation Main Bases •Geographic Segmentation Region or location Size of City Density Climate •Demographic Segmentation Gender Age Income Nationality/Ethnicity •Psychographic Segmentation Social Class Status Values, Attitudes Lifestyles (activities, opinions, interest) Personality •Behavioral Segmentation Benefits sought Purchase occasion User Status/ Usage Rate Brand loyalty Buyer readiness Attitude towards the product
  35. 35. An effective market segment is… 1. Measurable Size and purchasing power 2. Accessible Can be reached and served 3. Substantial Large and/or profitable 4. Actionable & Responsive Effective programs designed to attract and serve the segment
  36. 36. Strategies for Selecting Target Markets Undifferentiated Strategy •One marketing mix to total market •Mass marketing •More competition •Less satisfaction
  37. 37. Strategies for Selecting Target Markets Multisegment Strategy •Two or more segments •Each segment has unique marketing mix •Increased cost •Increased profits Production cost Promotion cost Research cost Greater sales volumes Larger market share
  38. 38. Strategies for Selecting Target Markets Concentrated Strategy •One segment-niche marketing •Specialized •Suits small firms or new entrants
  39. 39. Industry Analysis Segmenting •Purpose is competitive strategy formulation •Identify marketing opportunities and threats •Develop appropriate marketing mix •Study your competitors
  40. 40. Step #6-Packaging • Presenting the product in the best possible manner
  41. 41. Step #7-Pricing the Product • Determine the value of the product by assigning the price. • 4 factor’s/4 C’s: – Consumer – Competitor – Company – Climate
  42. 42. Step #8-Promoting the Product • Communicate the product’s image to the selected target audiences. • Promotional mix includes the strategy to promote the product.
  43. 43. Promotional Mix • Advertising • Publicity • Activities & inducements • Public Relations • Community Relations • Media Relations • Personal Selling • Sponsorship
  44. 44. Sponsorship • Sponsorship is a cash and/or in-kind fee paid to a property in return for access to the exploitable commercial potential associated with that property. (IEG Inc., 1996) • It is not advertising. It promotes a company in association with the sponsored event.
  45. 45. Development of Sponsorship • Emerged as result of: – Advertising rates increasing – Introduction of cable TV – Identification of “minority markets” – Desire to influence baby-boomer generation
  46. 46. Sponsorship Evaluation • There are 5 areas of evaluation: – Media coverage – Awareness & attitudinal surveys – Sales – Corporate/guest feedback (hospitality) – Cost-benefit analysis
  47. 47. Impression • The exposure one receives to a sponsorship or media vehicle that communicates a message through an external influence or image, and which affects the feelings, sense or mind of the individual receiving the exposure
  48. 48. Impression Influencing Factors • Image • Availability • Geographic Region • Sheer number • Quality • Size/impact • Target Market • Sponsor Clutter • Sponsor Package
  49. 49. Measurable Categories • On-site signage • On-screen graphics • Audio mentions
  50. 50. CPMs • Cost Per Thousand • It is a tool that advertisers use to compare the price of different media • Can be broken down to show per thousand values – Example: Households, readers, listeners
  51. 51. Industry Standard Value of Impressions Category CPM Value/Impression Broadcast Television $5 to $35/thousand hh $.003 to $.023/imp Cable Television $6 to $11/thousand hh $.004 to $.007/imp Spot Television $3.03 to $10.68/thousand hh $.002 to $.007/imp Spot Radio $3.52 to $10.78/thousand $.0035 to $.011/imp Sports Magazines $30 to $75/thousand circ. $.015 to $.0375/imp Web Sites $10 to $150/thousand $.01 to $.15/imp •The average CPM for sports programming are similar to prime time programming CPMs. •The Super Bowl earns an average rating of $24.58 (Based on 1.5 viewers per hh)
  52. 52. Sporting Event Viewer’s/Household (1996) (2+) MLB 1.28 NBA 1.36 NFL 1.41 NCAA College Bowl Games 1.56 NHL 1.46 Summer Olympics (Prime Time) 1.51 Auto Racing 1.38 Average 1.45 Network Television Sports Programming Viewers Per Household
  53. 53. How to measure a media impressions value Step 1: Per Thousand Value $5 per thousand hh Number of viewers x 1000 1.5 viewers per hh x 1000 = Value per impression = $.003 Step 2: Number of impressions x Value per impression x Number of households Value of media sponsorship based on impressions 30 impressions x $.003 x 1,000,000 $90,000
  54. 54. Step #9-Placing the Product • Refers to the manner the sport is distributed to the consumer
  55. 55. Step #10-Promise of the Plan • Evaluating if all goals were met

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