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. Sport Marketing Plan
• Comprehensive frameworks for identifying
and achieving an organization’s marketing
goals and objectives
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. 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. Price
• Price affects the product’s success, status
quo for the product, and the consumer’s
perception of the product.
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. 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. 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. Step #2- Analyze the Product
• Tangible good: Shoes, apparel, sporting
equipment
• Support services: Officials, trainers, sport
psychologist
• Game/event: Core product, product
extensions
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. 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. 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. Step #5-Analyzing & Targeting
Consumers
• Involves grouping consumers according to
common characteristics.
– Demographics
– Psychographics
– Media Preferences
– Purchasing behavior
– -Geographics
15. Market Segmentation Main Bases
•Geographic Segmentation
Region or location
Size of City
Density
Climate
21. Eleven Regions of Sport Involvement
Pittsburgh &
Buffalo:
Mills and
Mines
22. Eleven Regions of Sport Involvement
Michigan, Illinois,
Indiana, Ohio, Kentucky:
American Heartland
23. Eleven Regions of Sport Involvement
Arkansas, Montana, North Dakota,
South Dakota, Minnesota, Nebraska,
Missouri, Iowa, Wisconsin: Sport for
Sport’s Sake
24. Eleven Regions of Sport Involvement
Idaho, Wyoming,
Colorado: Rocky
Mountain High
25. Eleven Regions of Sport Involvement
Texas and
Oklahoma:
Texas Southwest
26. Eleven Regions of Sport Involvement
Nevada, Utah,
Arizona:
Cowboys and
Mormons
27. Eleven Regions of Sport Involvement
Pacific West
Coast & Hawaii:
Pacific
Cornucopia
28. Market Segmentation Main Bases
•Geographic Segmentation
Region or location
Size of City
Density
Climate
•Demographic Segmentation
Gender
Age
Income
Nationality/Ethnicity
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. Cohorts
•Term “cohorts” used in marketing to refer to generations
(ex. Baby boomer cohort, Generation Y cohort).
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. 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. 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. 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. 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. Strategies for Selecting Target Markets
Undifferentiated
Strategy
•One marketing mix to total market
•Mass marketing
•More competition
•Less satisfaction
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. Strategies for Selecting Target Markets
Concentrated
Strategy
•One segment-niche marketing
•Specialized
•Suits small firms or new entrants
39. Industry Analysis Segmenting
•Purpose is competitive strategy formulation
•Identify marketing opportunities and threats
•Develop appropriate marketing mix
•Study your competitors
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. 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. Promotional Mix
• Advertising
• Publicity
• Activities &
inducements
• Public Relations
• Community Relations
• Media Relations
• Personal Selling
• Sponsorship
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. 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. Sponsorship Evaluation
• There are 5 areas of evaluation:
– Media coverage
– Awareness & attitudinal surveys
– Sales
– Corporate/guest feedback (hospitality)
– Cost-benefit analysis
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
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. 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. 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. 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. Step #9-Placing the Product
• Refers to the manner the sport is
distributed to the consumer
-The growth of the sport industry has been phenomenal and shows no sign of stopping.
-Growth means there are increasing numbers of sport companies and products. Each sport product or company is competion.
-The concept of competition in business is the idea that a sport business is competing against another business to win the consumer’s dollars. Winning in business means staying in business at a successful level. Success is defined by the sport company and is usually measured by achieving the companies objectives.
-Often referred to as the 4 P’s. The four primary elements of a marketing plan.
- Decisions and strategies for each are important for the marketer. Information for making educated decisions involving the 4 P’s comes from market research-what you know about your consumer segments and what you know about your competitors.
-Each competitor within a specific product market will make marketing mix decisions in an attempt to affect market position. Such moves may influence what the consumer things about the product’s quality, what the consumer is getting for the money, features not found on another similar product, status, convenience, and many other factors.
-The sport marketer studies the consumer in order to discover what the consumer wants or needs. The result could be developing a new product or changing an existing product in some way.
-Product management involves tracking the sales of each product to determine if sales are increasing, maintaining or decreasing. An analysis will provide the sport marketer with the knowledge to make adjustments to specific products or to terminate a product.
-A consumer’s decision to buy is affected by many factors. Some include what the consumer can afford to pay, if what the consumer gets for the money is of value, if the consumer thinks they are getting a good deal.
-The decision should be based on many factors, such as knowledge of the consumer and what the consumer will pay, cost to the company to produce and offer the product, profit-making strategies of the company to produce and offer the product, the competitions price, and supply and demand within the product market.
-Remember that products include people, places, goods, services, and ideas. Goods are typically manufactured in a factory and must be transported from the factory to the market.
-Some products must be delivered to the marketplace in a different way. Sport activities are very different because a sport game does not exist until a person manufacturers it.
-Promotion is what the general public thinks is marketing. That is because the promotions are what the public sees. More specifically, promotions are especially designed to get a person’s attention.
-Advertising comes in the forms of TV commercials, radio commercials and announcements, advertisements in magazines, in books, in movie theaters, in video movie rentals, on billboards on the highway, on the side of buses, trucks and cars, signs on the side of buildings, signs on athletic fields, stadiums, arenas, and uniforms.
-People are lured to sporting events by special promotional events.
-The marketers purpose for promotion is to encourage the person to purchase the product.
-
-Step #1 in a marketing plan involves clarifying the purpose of the sport marketing and plan and linking it the organizations missions and core values.
-Every business exist for a purpose. Each company strives to stay consistent with its purpose in order to greatly enhance its chances for success. The company’s purpose may be found in its mission statement
-The company will offer products with the intention of meeting the company’s mission.
-Page #192 shows an outline of the NBA’s Mission.
-The sport product is three dimensional. It is composed of tangible goods, support services, and the game or event itself.
-Tangible goods: include items such as shoes, equipment, clothing
-Support services: activities or programs ancillary to the sport but necessary for its operation
-The game or event includes the core product: the type of spot, the participants, the team. The product extensions include the mascot, music, half-time entertainment, concessions, bands, cheerleaders. They are associated with the experience.
-By assessing the climate managers can identify factors associated with successful and failed marketing efforts.
-You assess the internal and external strengths and weaknesses of an organization or event by performing an SWOT analysis
-Text includes a SWOT analysis of the future market climate for MLB on page #195
-Text also includes a SWOT analysis of Women’s Professional Basketball
-Demographic segmentation refers to clustering sport consumers based on their age, gender, income, race/ethnicity, education and place of residence
-Psychographics- appeals to consumers attitudes, interests and lifestyles
-Media preference-based on their media preference of radio, TV, internet
-Purchasing behavior refers to usage behavior.
-Sponsorship is undertaken for the purpose of achieving commercial objectives
-Advertising is a direct promotion of a company through space or air time bought for that specific purpose—it is a quantified medium sold and evaluated in terms of cost per thousand
-Sponsorship is not advertising. It is a qualitative medium. It promotes a company in association with the sponsored event.
-With sponsorship you have access to a live audience, can have on-site sampling, and have the opportunity to entertain.
-With sponsorship companies not only can determine how many people they’ve reached, but how they were motivated to buy something.
-More televised events on cable, different event attract different types of audiences
-Originally, sponsorship was a method that companies used for free visibility and client entertainment.