marketing college athletics section 2.1. marketing college athletics goals explain the importance of...
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Marketing College Athletics
Section 2.1
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Marketing College Athletics
GOALS Explain the importance of the
NCAA and team rankings to college sports.
Define market segmentation. Discuss the growing market
surrounding women’s college athletics.
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Distribution (Placement) Determining the best methods
and procedures to use to allow customers to find, obtain, and use a P / S.
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Place = Distribution
Stadium, Arena, or Venue serves as BOTH the location and the method of distribution for the event
The media also provides for distribution of sports events.– News, PPV, Radio, Internet…
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Stadium as “Place”
Sports are produced and consumed simultaneously (same time & place)
Stadium – represents the distribution (place).
Stadium – add to the “effect” of the event
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1999 - $36 million expansion added 42 suites
Sold 10 Suites @ $2 mill. Each for a 25 year commitment
Sold 32 for $750,000 each for a 10 year commitment
University of Nebraska
Total Revenue =
$44 million
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Channel of Distribution
Route of product follows and the businesses involved in moving a product from producer to final consumer.
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Conventional Channels
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Need for Channels
Differences in Quantity– Example: P&G Pantene
Shampoo
Differences in Assortment– Consumers want variety of
products– Example: Dell Computers
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Distribution Channels
Move peoducts efficiently from where they’re made to where they’re sold.
Channels:– Direct – products move from
producer to consumer w/o other help.
– Indirect – include 1 or more other businesses between producer & consumer
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Direct and Indirect Channels
distributiondistributiondistribution
distributiondistributiondistribution
distributiondistributiondistribution
distributiondistributiondistribution
distributiondistributiondistribution
Products are directly sold from the producer to the final
customer; no intermediaries
Direct Channel
Producer
Customer
Products sold from producer to one or more intermediaries
before reaching final customer
Indirect Channel
Producer
Customer
Intermediary
Intermediary
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Channel Considerations Coverage Required:
– Intensive – gum, candy, soft drinks– Selective – clothing, appliances,
TV’s– Exclusive – manufacturer to retailer
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Test Your Knowledge
I.D. a sports / entertainment product that uses a Direct Distrib. Channel
I.D. a sports product that follows an Indirect Distrib. Channel (include the various channel members)– Intensive Example– Selective Example– Exclusive Example
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Effects of College Sports A winning team has economic
implications for school, community, region, and state
Fan expectation Promotion of organization’s goods
and services– Schedule cards– Posters– Web Sites
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Rules & Rankings
National Collegiate Athletic Association (NCAA)—the governing body of most college and university athletic programs
Creates and enforces guidelines and rules
NCAA Corporate Partners
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NCAA Guidelines include:
Recruitment Gender equity Scholarships Gambling prohibitions Many ethical issues
Overall Goal:– Promotion of college athletics, w/ the
integrity of the athletes and their game
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NCAA Conditions
Obtains accreditation by the recognized agency of its region
Offers at least 4 intercollegiate sports for men and 4 for women (1 in each of the 3 traditional seasons)
Complies with all NCAA rules Cooperates with the NCAA
enforcement program and accepts penalties
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College Team Rankings
Why so much emphasis? #1 has lingering effects
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High ranked teams build excitement and strong attendance
Creates fan loyalty and natl. respect Influences TV schedules
Requires fewer steps to #1 spot Go to Bowl game Retailers carry sportswear Increases recruitment
College Team Rankings
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Market Segmentation
Market segment—a group of individuals within a larger market that share one or more characteristics
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Market Segmentation
Uses the following characteristics to help define a target market:– geographic location– demographics– psychographics
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Demographics
Psychographics
Geographic
Location
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Geographic Location
Is where the consumer lives– example:
the states of Kansas and Missouri are key target markets for the Kansas City Chiefs
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MO
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Psychographics
Are the attitudes or the opinions a consumer has toward recreational activities– 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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Women’s College Sports NCAA Women’s Enhancement Program Increased fan support Marketing opportunities in
women’s sports
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Economic Impact of College Athletics
Section 2.2
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Benefits to the Community Good for town business
– Hotels– Restaurants– Retailers
Good for stadium business– Food/restaurants– Gift shops
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Sports Products
Are the goods, services or ideas related to sports that 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– local gym is offering 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.
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How Does Sports Marketing Relate to Products?
Licensing Sponsorships Endorsements Promotions
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Licensing
Is the agreement that 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 property
Royalty- a fee which is paid to the licensor
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Licensing
U of M– 4.02 Mill. in Licensing revenue alone in
2012 Top 5 colleges with most licensing
revenue (7/14 – 12/14) follow link1. Alabama2. Texas3. Notre Dame4. Michigan5. Georgia
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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® sweatshirtCan 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 UPS deal (follow link)
– 70 Colleges – “Largest college sports sponsorship in history”
– UPS become the “official logistics, package-delivery & retail-bus./serv. Provider in all forms of sponsor recognition.
Buffalo Wild Wings (follow link)– With NCAA becomes the “official hangout”
for March Madness men’s basketball Includes rights for all 89 NCAA championships
through 2016
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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 -
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 Tiger Woods, LeBron James and Serena Williams
Hanes® is endorsed by Michael Jordan
Canon® has an endorsement deal with Maria SharapovaCan 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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Conference Realignment Conference—a group of college
athletic teams within the same region
Increase revenues Create new rivalries Playoff games generate additional
revenue
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New Look
http://www.cbssports.com/collegefootball/conference-realignment
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The Cost of Success
Success requires:– Skilled coaches– Top-notch players
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Attracting & Keeping Coaches The best coaches can command
annual salaries in excess of $1 mill.
Fringe Benefits– Incentives received in addition to
base salaryCollege Coaches SalariesTicket Prices
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Attracting & Keeping Star Athletes Competition for top athletes is
fierce. Recruiters compete with pro
teams as well as other colleges. Recruiters need a well refined
sales & mktg. effort to attract talent to their schools.
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Amateur Sports
Section 2.3
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Popularity of Amateur Sports Amateur athlete—someone who
does not get paid but plays for enjoyment, challenge, or both
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Marketing & Sponsoring Amateur Sports Provides significant income for
manufacturers Minivan and sport utility vehicle Retro sports jerseys
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Local Promotion of Amateur Sports Fund-raising charity events High school athletic teams
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National Promotion of Amateur Sports Promotion used to elevate the
attention of consumers Lance Armstrong and Subaru
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Economic Benefits
Minnesota’s example– Minnesota Amateur Sports
Commission– Create economic development
through amateur sports– Create maximum opportunity for
sport participation– Establish Minnesota as a national
model for the Olympic and amateur sport movement
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Economic Benefits of Specific Sports Ice skating Soccer Basketball Baseball and softball