intro to sport marketing
TRANSCRIPT
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Intro to Sport Marketing
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Intro to Sport Marketing
Agenda Current Events
Ice to the Eskimos (Chapters 1 & 2)
Size of the Sport Industry
Differentiate between Sport Product & Traditional
Goods & Services Differentiate between Fans & Customers
Differentiate between Marketing & Sport Marketing
2 Thrusts of Sport Marketing
Break Sport Sponsorship Proposal Assignment
Marketing Plan Assignment
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U.S. GDP by Industry (Milano & Chelladurai, 2011)Rank Industry Value ($B)
1 Real Estate 1461
2 Retail Trade 812
3 Wholesale Trade 723
4 Construction 608
5 Professional, Scientific, & Technical Services 542
6 Federal Reserve banks, Credit Intermediation & Related Activities 506
7 Ambulatory Health Care Services 433
8 Hospital & Nursing & Residential Care Facilities 3340 [sic]
9 Administrative Support Services 344
10 Broadcasting & Telecommunications 324
11 Other Services, Except Government 288
12 Insurance Carriers & Related Activities 264
13 Utilities 249
14 Management of Companies & Enterprises 234
15 Food Services & Drinking PlacesSPORT (Liberal Estimate)
225207
16 Manufacturing Chemical ProductsSPORT (Moderate Estimate)
199189
17 Securities, Commodity Contracts, & Investments 184
18 Legal ServicesSPORT (Conservative Estimate)
176168
19 Manufacturing Food & Beverage & Tobacco Products 164
20 Oil & Gas Extraction 150
21 Publishing Industries 142
22 Computer Systems Design & Related Services 133
23 Manufacturing Computer Electronic Products 132
24 Manufacturing Fabricated Metal Products 123
25 Truck Transportation 119
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Why are these the wealthiest franchises?How many of the top 20 are in the NFL?
FORBES FRANCHISE VALUESTeam League Owner ValueWashington Redskins NFL Daniel Snyder $1.1 billionDallas Cowboys NFL Jerry Jones $923 millionHouston Texans NFL Robert McNair $905 millionNew England Patriots NFL Robert Kraft $861 millionPhiladelphia Eagles NFL Jeffrey Lurie $833 millionDenver Broncos NFL Pat Bowlen $815 millionCleveland Browns NFL Randy Lerner $798 millionChicago Bears NFL McCaskey Family $785 millionTampa Bay Buccaneers NFL Malcolm Glazer $779 millionBaltimore Ravens NFL Steve Bisciotti $776 millionMiami Dolphins NFL Wayne Huizenga $765 millionCarolina Panthers
NFL
Jerry Richardson
$760 million
Green Bay Packers NFL Public $756 millionDetroit Lions NFL William Ford $747 millionTennessee Titans NFL Bud Adams $736 millionNew York Yankees MLB George Steinbrenner $730 millionPittsburgh Steelers NFL Dan Rooney $717 millionSeattle Seahawks
NFL
Paul Allen
$712 million
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10 Differences Between TraditionalGoods/Services and the Sport Product
1. Often sport organizationssimultaneously compete andcooperate
2. The sport product is publiclyconsumed
3. Sport consumers often considerthemselves experts
4. Sport consumer demand fluctuateswidely
5. Fans have an emotional tie totheir favorite team/sport
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10 Differences Between TraditionalGoods/Services and the Sport Product
6.The sport product is perishable7. The Sport product is intangible and
subjective
8. The sport product is unpredictable
and inconsistent
9. The sport marketer has little or nocontrol over the core product andmust concentrate on product
EXTENSIONS.
10. Sport is universal and pervades allelements of life
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Wait, You Pay Your Competitor?2013 Week 1 payouts:
Ohio St paying Buffalo $1M,
Miami paying FAU $500K,
Oregon paying Nicholls St $450K,
Kansas St paying NDSU $350K
To Beat You???Wins by FCS schools with paychecks:
E. Washington ($450K)over Oregon St.
McNeese St ($400K) over USF
NDSU ($350K) over Kansas St.
Towson ($275K) over U Conn
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How are sports FANS different from customers?
If you get a good set of tires for your car, you aresatisfied.
Things you will never say:
Let me show you my new tires.
This last month I had the best electricity Ive ever had.
Hey, lets all go grocery shopping. Ill set up the tailgating in theparking lot.
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How are sports FANS different from customers?This morning I used Crest.
Do you like Crest?
When are you going to use Crest again? Do you think it will perform well again?
Would you like to use Crest together?
Did you hear them talking about Crest
on Toothpaste Talk Radio this morning?
Where did you get that throwback Crestjersey?
You repeatedly pay for cable.
You are loyal to your anti-perspirant.
You identify with your team.
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Top 10 Differences Between Goods/Services Marketing and Sports
Marketing
Dimension Goods/services Sports & Entertainment
1 Purchasers Customers Fanatics
2Adoption Loyaltyrepeat purchasers of the
same brand (viz., lack of switching
behavior)
Psychological identification with
individuals and teams that goes
beyond mere loyalty
3 Promotion & Media Owner pays media for promotion Fans, sponsors, and media pay to
promote team/event
4 Distribution Channel Static; More site-limited Mobile; more flexible
5 Product Adapted Global
6 Price Customer pays a given price for
good/service
Two-part: Fans frequently pay for
the rightto pay for tickets
7 Facilities Corporate owner buys/builds own
facilities
Government (taxpayer) typically
pays for facilities
8 Competition Individual branding in competitive
markets
Cooperative contractual
relationshipsmonopoly power &
anti-trust exemption
9 Exchange Principally economic exchange Principally social exchange
10Employees Contractual power favors owners Contractual power favorsemployees (players)
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So, is sports marketing
different?Sports marketing is building a highly identified fan
base such that fans, sponsors, media and
government pay to promote and support theorganization for the benefits of social exchange andpersonal, group and community identity within a
cooperative competitive environment.
M k i O i i
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Marketing OrientationConcentrating on understanding the consumer and providing asports product that meets consumer needs while achievingorganizational objectives.
For Example:The Boston Red Sox, despite a tremendous ticket-demand everyyear, still work hard on fan relations and marketing initiatives.
They know that they cant take the fans for granted.
They worked with a graphic designer to make their tickets looksharper.
A team vice president taste-tests the parks concession food
Theyve extended the box office hours so fans can buy tickets on theway out of a game
(Boston Globe, 7/02)
M k ti M i
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Marketing Myopia
Marketing myopia is the practice of defining a business interms of goods and services rather than benefits sought by
customers.
Myopic sport organizations
Focus on producing and selling rather than meeting needs ofcustomers
Rely on winning
Confuse marketing with promotions
Ignore competitionFocus on the short term rather than the long term
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Marketing Myopia
Does winning guarantee increased attendance?
The Edmonton Oilers won five Stanley Cups in sevenyears season ticket sales went down after eachyear.
Said one Oiler executive: "The Oilers went through aperiod where all they did was open the doors andwaited for people to show up. That's not how you dobusiness." (Edmonton Sun, 9/02)
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2 Major Thrusts of Sport Marketing
A. Marketing OF Sports
B. Marketing THROUGH Sports
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S S P A
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SPORT SPONSORSHIP PROPOSAL ASSIGNMENT
Select a Partner for the Sponsorship
Proposal Assignment
Now that we have our groups established:From the next slide your group must pick your top 3 (in
order, 1=most desired 3= third most desired) sportproperties you want to represent in a sponsorshipnegotiation.
You also have to pick your top 3 corporations you wantto represent in a sponsorship negotiation
GO!
S S P A
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SPORT SPONSORSHIP PROPOSAL ASSIGNMENT
Sport Properties:
Richmond Flying Squirrels Richmond Raiders
Lobs & Lessons
Richmond Kickers
Arena Racing University of Richmond
Athletics
VCU Athletics
Special Olympics Virginia SCOR
Tuckahoe Little League
Sponsors:
Jersey Mikes Haley Automotive Group
American Family Fitness
Lexus of Richmond
First Capital Bank Car Pool
Martins
Virginia 529
Bon Secours SportsMedicine
VCU Medical Center
SPORT SPONSORSHIP PROPOSAL ASSIGNMENT
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SPORT SPONSORSHIP PROPOSAL ASSIGNMENT
Each group will be emailed to inform them which sportproperty and which sponsor they will represent.
Each student team will research their assigned company (thebusiness) and develop a profile of that organization.
Each business will develop and rank three objectives theywould like to achieve through a sport sponsorship.
Businesses should also consider a dollar amount they think thecompany might be willing to invest in an annual sport
sponsorship.
In order to objectively evaluate all sponsorship proposals, eachbusiness must create an evaluation matrix they will use.
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SPORT SPONSORSHIP PROPOSAL ASSIGNMENT
Playing the role of the sport organization, three sport
properties will meet with each potential sponsorshipclient (business) to discuss their business and
objectives.
After conducting a needs analysis for each business
through the meetings on October 22, sport
organizations will develop a sponsorship proposal to
meet the needs of each potential sponsor.
S t i ti tili h t i t th i h f
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Sport organizations can utilize whatever inventory they wish for
their proposals with the following exceptions:
sport organizations may not sell any naming rights to facilities or teams
they may not sell any television spots (for this exercise, we will assume that all sport
organizations control their own radio broadcasts and web streaming if they possess such inventory).
For this exercise, sport organizations must also pay a rental fee
for any use of the sport facility outside of game day and must pay awholesale price to the concessionaire for any catering or food
offers.
All sponsorship proposals must be for a term of one season.
Also note, exclusive inventory cannot be offered to more than one
client (i.e., only one client can be presenting sponsor of the pregame radio show).
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On November 4, sport organizations will make three
sponsorship presentations, one to each prospect.
Each team will have a maximum of 15 minutes for each
proposal, which will include any negotiation time.
After hearing all three proposals, each business will
rank the three proposals (Best = 1, Worst = 3).
Each business will then submit a 2-3 page paper
explaining their sponsorship evaluation criteria, including
a completed Sponsorship Evaluation Matrix for eachsport property they met with, and their justification for
their sponsorship rankings.
SPORT SPONSORSHIP PROPOSAL ASSIGNMENT
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SPORT SPONSORSHIP PROPOSAL ASSIGNMENT
*Due to the creative nature of this project, the Sponsorship must
be turned in to the instructor via hard-copy and not
electronically.
Grading for the project will be as follows:
Sponsorship proposals 50 points
Evaluation paper 25 points
Proposal ranking 25 points (avg. of three proposals ~ 25, 20, 15)
Total Points: 100
*Yes, part of your grade is reflected in how well you evaluate the
sponsorship proposals you hear when acting as the potential sponsor.
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MARKETING PLAN SPORT PROPERTIESArena Racing
Bike MS
College Prep Golf Tour
Sportable
VCU Womens Basketball
VCU Baseball
U of Richmond Mens Lacrosse
U of Richmond Womens Lacrosse
Individually, email your top three picks for which sport property you want to create a marketing
plan (1= Most Desired 3 = Third Most Desired) to the instructor.