SM Intro to Sport Marketing

Slide1: 

Little League Baseball has become the world’s largest organized youth sports program. In the space of just six decades, Little League grew from three teams to nearly 200,000 teams, in all 50 U.S. states and more than 100 countries. And the basic goal remains the same as it did in 1939, to give the children of the world a game that provides fundamental principles (sportsmanship, fair play and teamwork) they can use later in life to become good citizens.

Slide2: 

Little League Baseball More than 40,000 people will show up in person to watch the final game. Little League Baseball's most recent six-year television deal is reportedly worth more than $7 million (Last year's championship game was viewed by more people than Game 7 of this year's Stanley Cup finals). There's no lack of licensed products -- ranging from hats, T-shirts, pins, bobbleheads and collectible dolls. There's even a Little League Baseball video game already on the market. The organization has 13 official sponsors, including Bubblicious (the official gum of Little League Baseball) and Stouffer's (the official dinner of Little League Baseball).

Slide3: 

Little League Baseball The big business that the league does, especially during World Series time, is used to support a budget of more than $16 million for the 2.7 million players of its game. Thanks to the sponsors, licensees and concession sales (admission to the games are free), local teams only have to front 15 percent of the Little League budget -- paying an average of $1 per Little League player in order to be affiliated with the organization. (ESPN.com, 8/03)

Slide4: 

Increased Importance of Sport Marketing Why is sport marketing knowledge and expertise becoming more important? Increased competition Financial pressures to meet escalating expenses Becoming more expensive for spectators More revenue can be collected

Slide5: 

Reasons for increased importance In 2001-2002 University of Minnesota football and men's basketball revenues increased 15 percent. Revenue from men's hockey was up 13 percent and women's basketball revenues jumped a whopping 352 percent. But impressive as those results are, they fade in the overall $40 million picture of running a competitive and financially sound sports program in a tough conference like the Big Ten (Minneapolis Star Tribune, 11/02)

Slide6: 

Sport Marketing Defined Sports marketing consist of all activities designed to meet needs and wants of sport consumers through the exchange process. Marketing Orientation Concentrating on understanding the consumer and providing a sports product that meets consumer needs while achieving objectives.

Slide7: 

Marketing Myopia Marketing myopia is the practice of defining a business in terms of goods and services rather than benefits sought by customers. Myopic sport organizations… Focus on producing and selling rather than meeting needs of customers Rely on winning Confuse marketing with promotions Focus on the short term rather than the long term Do not believe in research

Slide8: 

Marketing Myopia In 1994, MLB's average attendance was 31,612. Through June of 2003, the average was 26,520. "The NBA picked our pocket. While we were sleeping, talking about tradition and being America's pastime, David Stern forged marketing relationships that were brilliant." - Mike Veeck, formerly of the Detroit Tigers.

Slide9: 

Marketing Myopia Does winning guarantee increased attendance? The Edmonton Oilers won five Stanley Cups in seven years – season ticket sales went down after each year. Said one Oiler executive: "The Oilers went through a period where all they did was open the doors and waited for people to show up. That's not how you do business." (Edmonton Sun, 9/02)

Slide10: 

Marketing Orientation The Boston Red Sox, despite a tremendous ticket-demand every year, still work hard on fan relations and marketing initiatives. They know that they can’t take the fans for granted. They worked with a graphic designer to make their tickets look sharper. A team vice president taste-tests the park’s concession food They’ve extended the box office hours so fans can buy tickets on the way out of a game. (Boston Globe, 7/02)

Slide11: 

Two thrusts of sport marketing Marketing Sport The marketing of sport goods and services directly to sport consumers Advertising the team, selling tickets, writing news releases, etc. Marketing Through Sport Using sport to market other consumer goods and services Naming rights to a venue, Pouring rights at an arena, Title sponsor to a college bowl game, etc.

Slide12: 

Marketing Through Sport Beginning in 2005, Allstate's well-known "Good Hands" logo will be featured on the goalpost netting of more than 30 Division 1-A college football stadiums and seen by television viewers across the country. Allstate will also have a significant presence during 2005’s football season with… A fan friendly mobile tailgate "Field Goal Fan-tastic" tour. A national consumer promotion that will award one lucky fan a trip to the BCS Championship Game A new college football themed television advertising campaign.

Slide13: 

Q - What types of consumers exist in the sport industry? Q - What products exist in the sport industry?

Slide14: 

Types of sport products Sporting Events – games, athletes, & arenas Sporting Goods - equipment, transportation, apparel, footwear, collectibles and memorabilia Sports Training - Fitness and Health Services, Sports Camps and Instruction Sports Information - Newspapers, Internet, Magazines, Radio, etc.

Slide15: 

Responsibilities of Marketers (Lehnus & Miller, 1996) Create & sell sponsorships Plan and direct ticket campaigns Plan & implement game promotions Develop & sell facility signage Direct sales of radio, television, & print media Supervise game program sales Direct fundraising events Direct novelty sales & licensing program Act as a liaison with booster clubs Supervise concession sales

Slide16: 

Sport/Event Marketing Pioneers P. T. Barnum - Circus Michael Phelan – Billiards Albert Spalding – Sporting Goods Gary Davidson – ABA, WHA, WFL George Preston Marshall – NFL Tex Rickard - Boxing

Slide17: 

Charlie Finley Charlie Finley called his team "The Swinging A's". The A's had a mule mascot called "Charlie O.", and they wore white spikes with their kelly green and gold uniforms. The A's were the only team to employee a "designated runner", and Finley pushed for adoption of an orange baseball and a three- ball walk.

Slide18: 

Bill Veeck Understand the customer Focus on the customer (Every day is Mardi Gras. Every fan is king). Make an ordinary activity into an event Practice hospitality management Community relations Create word of mouth

Slide19: 

Unique aspects of the sport product Intangible Simultaneously produced and consumed Inconsistent and unpredictable Dependence on social facilitation Lack of control over the core product Emphasis is on product extensions Unique aspects of the sport market Compete and cooperate simultaneously Consumers consider themselves experts Supply and demand fluctuates Universal appeal and pervades all elements of life

Slide20: 

Unique aspects of sport financing Sport is difficult to price Price is often small in comparison to total cost Indirect revenues are often higher than direct revenues Sport does not always have to operate at a profit Unique aspects of sport promotion Widespread media attention Focus on celebrities

Slide21: 

The sport marketer is asked to market a product which is utterly unpredictable, inconsistent, and open to subjective interpretation. The task is undertaken in a highly competitive market with much lower promotional budget than that of many industrial organizations. The sport marketer only has limited direct control over the product mix, however, one may say that the media is very conducive to giving sport exposure and indirect revenue opportunities through association with business and industry.

Slide22: 

A Fayetteville, North Carolina man legally changed his last name to Caniac – which is, of course, the nickname for any enthusiastic Canes fan. Ten days later, he was maried, meaning the happy couple is now officially known as Mr. and Mrs. Caniac.