1-1 Chapter 1 Introduction to Sports Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.

1-1

Chapter 1Chapter 1

Introduction to Sports Introduction to Sports MarketingMarketing

Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill/Irwin

1-2

Broad Marketing DomainsBroad Marketing Domains

• Primary Focus of Marketing Efforts

– Marketing through Sports

– Marketing of Sports

1-3

Marketing Through SportsMarketing Through Sports

• Traditional Strategies– Sports as a Marketing Platform

• Reaching Similar Target Market• Sports Incorporated within the Marketing Mix

– Product– Distribution (Place)– Price– Promotion

1-4

Marketing Through SportsMarketing Through Sports

• Sponsorship Strategies– Traditional

• Coca-Cola and the Olympics

– Venue Naming Rights• AT&T and AT&T Park (San Francisco Giants MLB

Stadium)

– Licensing• Anvil (t-shirts) and NFL (Super Bowl logo shirts)

– Endorsements• Tag Heuer (Watches) and Tiger Woods

1-5

Marketing of Sports ProductsMarketing of Sports Products

• Examples of “Sports Products”– Access to Spectator Sports Events

• Tickets or Media-based access to the British Open

– Access to Participation Sports Venues• Membership to Gold’s Gym

– Sporting Goods and Apparel• Nike Golf Clubs and Golf Shirts

1-6

Spectator SportsSpectator Sports

• Drop Figure 1.2 from top of page 5 here

1-7

Local EventsLocal Events

• Draw Fans from Small Geographic Area

• Promote Using Local Media

• Examples– Minor League Team– High School Sports– Local Amateur Competitions

1-8

Regional EventsRegional Events

• Little National or International Interest

• Marketers Attempt to Move Event Up

• Examples– Most Collegiate Sports Teams– (Most) Marathon Races

1-9

National EventsNational Events

• Large Portion of One or Two Countries

• Often Large Media Presence

• Examples– Stanley Cup Playoffs (Ice Hockey)– BCS (College Football) Championship Game– NCAA Final Four (College Basketball)– The Ashes (England & Australia Cricket)

1-10

International EventsInternational Events

• Appeal Transcends National Borders

• Large Media Presence

• Venue often Shifts Among Countries

• Examples– Ryder Cup Golf Tournament– World Cup of Rugby– Wimbledon Tennis Championships

1-11

Global EventsGlobal Events

• Broadcast to Global Audience– Significant Rights Fees Paid by Broadcasters

• National Pride often a Consideration

• Few Events in this Top Category

• Examples– Olympic Games– World Cup of Soccer

1-12

Participation SportsParticipation Sports

• Market the Idea of Participating– Play more Golf– Engage in More 10-Pin Bowling

• Market Venues– Build and Market a New Golf Course– Building Bowling Facilities in Casinos

1-13

Most Popular Participation SportsMost Popular Participation Sports

• Drop in First Part of Table 1.1 (Page 8) – However many lines fit while providing ease of reading – maybe top 5 to 8

1-14

Sporting Goods and ApparelSporting Goods and Apparel

• Sporting Goods – Equipment– Golf Clubs, Footballs, Exercise Equipment

• Apparel – Clothing– Participation-Based: Softball Uniform– Fashion-Based: Logo Shirt

• Category Will be Broadened in Chapter 2

1-15

Why Teach Sports Marketing?Why Teach Sports Marketing?

• Huge Economic Impact

• Little Focus on Sports Industry in Curricula

• More Emphasis on the Bottom Line by Sports Entities (e.g. University Football)

1-16

Evolution: Sports MarketingEvolution: Sports Marketing

• Marketing of Sports Taught First

• Marketing Through Sports Added

• Leisure Emphasis Early

• Leisure and Business Focus Today

1-17

Economic ImpactEconomic Impact

• Drop In Table 1.2 Here (Bottom of Page 11)

1-18

Components of Economic ImpactComponents of Economic Impact

• Direct Spending by Consumers– Tickets, Hotels, Restaurants, Gas, Rental

Cars, Wages Paid to Workers, Participation Fees (e.g. Ski Lift Tickets; Golf Greens Fees)

• The Multiplier Effect– Recognizes That Money Turns Over in the

Economy: (Typically between 1.3 and 3 Times)

1-19

The Multiplier EffectThe Multiplier Effect

• Drop Box 1.2 In Here

1-20

One-Day EventsOne-Day Events

• Event may occur over one day, but impact may cover extended period of time

• NFL Super Bowl

• Indianapolis 500

• Championship Boxing Match

1-21

Multiday EventsMultiday Events

• Events encompass 2 or more days

• May be at single or multiple venues

• Examples– Olympics– Masters Golf Tournament– America’s Cup Yachting Regatta– World Cup of Soccer

1-22

Participation Sports/Recreation Participation Sports/Recreation

• Local Resident Contributions– Restaurant, activity-based shopping

• Vacation Expenditures

• Participation Fees– Tournament entry, rental equipment

1-23

Professional Team or ArenaProfessional Team or Arena

• Local Wages for Employees

• Tax Revenues

• Expenditures by Visitors

1-24

Aggregate Economic ImpactAggregate Economic Impact

• Gross Domestic Sports Product (GDSP)

• Total Spent on Sports-Related Goods and Services in a National Economy in 1 Year

• Difficult to Measure– Estimate for USA in 2007 was approximately

$277 Billion

1-25

Typical Organizational Chart – Typical Organizational Chart – MLB TeamMLB Team

Drop in Figure 1.3 (Page 17) Here

1-26

Career OpportunitiesCareer Opportunities

• Internships– Variety of Positions– Often Unpaid– Establish Network of Associates - References

• Sales– Season Tickets, Group Tickets, Sponsorship– Suites, General Retail

1-27

Other Career OpportunitiesOther Career Opportunities

• Advertising & Promotion

• Marketing Research

• Hospitality

• Facilities Management/Venue Operations

• Brand Activation

1-28

Other Career OpportunitiesOther Career Opportunities

• Web Site Manager

• Public Relations

• Retail Store Operations

• Participation Center Management

• Agent

1-29

Other Career OpportunitiesOther Career Opportunities

• Sponsorship Purchasing– Making Good Decisions– Investment Decisions

• Sponsorship Evaluation– Postevent Measurement– Estimation of Return on Sponsorship

Investment

1-30

Looking for a Sports Job?Looking for a Sports Job?

• Check out the most recent job postings at: www.teamworkonline.com

• Register for weekly updates

1-31

Career TrendsCareer Trends

• More Jobs

• More Job Applicants

• More International Opportunities

• More Focus on Selling Through Sports

• More Emphasis on Business Aspects

1-32

Closing CapsuleClosing Capsule

• Aspiring sports marketers should not confuse it with playing a game. It is a job, one that demands time, energy, commitment and knowledge.