sport marketing (2003)
DESCRIPTION
2003 presentation on Sport MarketingTRANSCRIPT
Sport Marketing
October 14, 2003
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.
Sport Marketing Plan
• Comprehensive frameworks for identifying and achieving an organization’s marketing goals and objectives
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.
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
Price
• Price affects the product’s success, status quo for the product, and the consumer’s perception of the product.
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.
Promotion
• The integrated communication and public relations activities that communicate, inform, persuade, and motivate consumers to purchase the product.
• Advertising or making people aware
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.
Step #2- Analyze the Product
• Tangible good: Shoes, apparel, sporting equipment
• Support services: Officials, trainers, sport psychologist
• Game/event: Core product, product extensions
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
SWOT Analysis
S = Strengths
W = WeaknessesControllable Factors
Ex. Products, Services, Financial Resources
O = Opportunity
T = ThreatsUncontrollable
Factors
Ex. Competition, Demographic Shifts, the Economy, Technological
Advances
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
Step #5-Analyzing & Targeting Consumers
• Involves grouping consumers according to common characteristics.– Demographics– Psychographics– Media Preferences– Purchasing behavior– -Geographics
Market Segmentation Main Bases
•Geographic SegmentationRegion or location
Size of City
Density
Climate
Eleven Regions of Sport Involvement
Eleven Regions of Sport Involvement
New England: Eastern Cradle
Eleven Regions of Sport Involvement
North Carolina & South Carolina: Carolinas
Eleven Regions of Sport Involvement
Arkansas, Louisiana, Alabama, Georgia, Florida:
Pigskin Cult
Eleven Regions of Sport Involvement
South Florida: South Florida
Eleven Regions of Sport Involvement
Pittsburgh & Buffalo:
Mills and Mines
Eleven Regions of Sport Involvement
Michigan, Illinois, Indiana, Ohio, Kentucky:
American Heartland
Eleven Regions of Sport Involvement
Arkansas, Montana, North Dakota, South Dakota, Minnesota, Nebraska,
Missouri, Iowa, Wisconsin: Sport for Sport’s Sake
Eleven Regions of Sport Involvement
Idaho, Wyoming, Colorado: Rocky Mountain High
Eleven Regions of Sport Involvement
Texas and Oklahoma:
Texas Southwest
Eleven Regions of Sport Involvement
Nevada, Utah, Arizona:
Cowboys and Mormons
Eleven Regions of Sport Involvement
Pacific West Coast & Hawaii:
Pacific Cornucopia
Market Segmentation Main Bases
•Geographic Segmentation
Region or location
Size of City
Density
Climate
•Demographic Segmentation
Gender
Age
Income
Nationality/Ethnicity
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
Cohorts
•Term “cohorts” used in marketing to refer to generations (ex. Baby boomer cohort, Generation Y cohort).
Mature’s Boomer’s 13er’s (Gen. Y)/& X’s
Diversity Uncomfortable SomewhatComfortable
VeryComfortable-May act asbridge
Leisure Reward Point of Life Relief
Work Inevitable Adventure DifficultChallenge
Education Gift Birthright A method usedto get ahead.Large number ofdropouts
Money Save Spend Hedge
Future Save for a rainyday
Now ismoreimportant
Uncertain butmanageable
Technology Difficult Challenge CompletelyComfortable andProficient
Learning Classroom/ Onthe Job
Classroomand someexperiential
Experiential-able to ParallelThink
Approach Careful, cautious Ready AimFire
Ready Aim Fire
Yacovinch as cited by Dr. Patrcia Boverie
* ‘Tweeners, share the
values of 2 groups
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
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
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 SegmentationBenefits sought
Purchase occasion
User Status/ Usage Rate
Brand loyalty
Buyer readiness
Attitude towards the product
An effective market segment is…
1. MeasurableSize and purchasing power
2. Accessible Can be reached and served
3. SubstantialLarge and/or profitable
4. Actionable & ResponsiveEffective programs designed to attract and serve the segment
Strategies for Selecting Target Markets
UndifferentiatedStrategy
•One marketing mix to total market
•Mass marketing
•More competition
•Less satisfaction
Strategies for Selecting Target Markets
MultisegmentStrategy
•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
Strategies for Selecting Target Markets
ConcentratedStrategy
•One segment-niche marketing
•Specialized
•Suits small firms or new entrants
Industry Analysis Segmenting
•Purpose is competitive strategy formulation
•Identify marketing opportunities and threats
•Develop appropriate marketing mix
•Study your competitors
Step #6-Packaging
• Presenting the product in the best possible manner
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
Step #8-Promoting the Product
• Communicate the product’s image to the selected target audiences.
• Promotional mix includes the strategy to promote the product.
Promotional Mix
• Advertising• Publicity• Activities &
inducements• Public Relations
• Community Relations• Media Relations• Personal Selling• Sponsorship
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.
Development of Sponsorship
• Emerged as result of:– Advertising rates increasing– Introduction of cable TV– Identification of “minority markets”– Desire to influence baby-boomer generation
Sponsorship Evaluation
• There are 5 areas of evaluation:– Media coverage– Awareness & attitudinal surveys– Sales– Corporate/guest feedback (hospitality)– Cost-benefit analysis
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
Impression Influencing Factors
• Image• Availability• Geographic Region• Sheer number• Quality
• Size/impact• Target Market• Sponsor Clutter• Sponsor Package
Measurable Categories
• On-site signage
• On-screen graphics
• Audio mentions
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
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)
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
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 impressionsx
Value per impressionx
Number of households
Value of media sponsorship based on impressions
30 impressionsx
$.003x
1,000,000
$90,000
Step #9-Placing the Product
• Refers to the manner the sport is distributed to the consumer
Step #10-Promise of the Plan
• Evaluating if all goals were met