Sports and rec industries student

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Objectives

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.

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Main Menu

• The Marketing Mix

• Market Segmentation & Sports Products

• Methods of Sports Marketing

The Marketing Mix

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Marketing

• 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

Competitive advantage - occurs when a company operates in a more efficient manner than its competitors, which causes their sales to increase above other businesses

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Marketing Mix

• 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

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Marketing Mix

• Is customer driven• Relates directly to a company’s target

market• Includes four interrelated concepts and

tactics • Refers to the variables a company can

controlTarget market - a particular group of consumers a company classifies as the main focus of its marketing plan

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4 Ps of Marketing

Price Place

ProductPromotion

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Price

• 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

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Product

• 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

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Place

• 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

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Promotion

• 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

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The 4 Ps of Marketing

• 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

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Sports Marketing

• 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 firmSports consumer - an individual who may play, watch or listen to sports or read, use purchase and/or collect items related to sports

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Sports Marketing

• 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®

Market Segmentation & Sports Products

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Sports Marketing

• 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

Market segmentation - a method of analyzing a market by using specific characteristics to identify a target market

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Market Segmentation

• Uses the following characteristics to help define a target market:– geographic location– demographics– psychographics Demographics

Psychographics

Geographic Location

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Geographic Location

• Is where the consumer lives– for example: the states of Kansas and

Missouri are key target markets for the Kansas City Chiefs

MO

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Demographics

• 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

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Psychographics

• 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

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Marketing Plan

• 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

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Sports Products

• 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

Product line - a group of closely related items which are manufactured or sold by a company

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Sporting Events

• Are the main category of sports products

• Include the following examples:– games– competitions– athletes– stadiums/arenas

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Sports Information

• 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

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Sports Training

• 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

Intangible products - non-physical services

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Sporting Goods

• 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

Tangible products - physical goods which satisfy a need or want of the customer

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Product Line

• 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

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Product Mix

• 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.

Methods of Sports

Marketing

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Methods of Sports Marketing

• Licensing• Sponsorships• Endorsements• Promotions

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Licensing

• 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 propertyRoyalty - a fee which is paid to the licensor

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Licensing Examples

• A video documenting a team’s path to the championship game

• A Yao Ming Houston Rockets® jersey• A Pittsburgh Steelers® sweatshirt

Can you think of any other licensing examples in or out of the sporting industry?

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Sponsorship

• 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

Branding - the process of forming a mental association with a company or product

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Sponsorship Examples

• 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

Can you think of any other examples of sponsorship?

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Endorsements

• 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

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Example Endorsements

• 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

Can you think of other examples of endorsements?

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Promotions

• 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

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Promotion Examples

• 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

Can you think of any other promotion examples?

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Sports Marketing Firms

• 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

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Sports Marketing

• 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

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Resources

• (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