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Chapter 1Chapter 1

An Introduction to Sports An Introduction to Sports MarketingMarketing

McGraw-Hill/Irwin ©2007 The McGraw-Hill Companies, All Rights Reserved

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Marketing DomainsMarketing Domains

• Primary Focus of Marketing Efforts

– Marketing through Sports

– Marketing of Sports

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Marketing Through SportsMarketing Through Sports

• Traditional Strategies– Sports as a Marketing Platform

• Reaching Similar Target Market• Sports Incorporated within the Marketing Mix

– Product– Distribution (Place)– Price– Promotion

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Marketing Through SportsMarketing Through Sports

• Sponsorship Strategies– Traditional

• Coca-Cola and the Olympics

– Venue Naming Rights• Coors Beer and Coors Field (Denver, Colorado)

– Licensing• Rival (Crock Pots) and NASCAR

– Endorsements• Tag Heuer Watches and Tiger Woods

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Marketing of SportsMarketing of Sports

• Examples of “Sports Products”– Access to Spectator Sports Events

• Tickets or Media-based access to the British Open

– Access to Participation Sports Venues• Membership to Gold’s Gym

– Sporting Goods and Apparel• Adidas Football and Team Uniforms

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Spectator SportsSpectator Sports

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Local EventsLocal Events

• Draw Fans from Small Geographic Area

• Promote Using Local Media

• Examples– Minor League Team– High School Sports– Local Amateur Competitions

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Regional EventsRegional Events

• Little National or International Interest

• Marketers Attempt to Move Event Up

• Examples– Most Collegiate Sports Teams– (Most) Marathon Races

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National EventsNational Events

• Large Portion of One or Two Countries

• Often Large Media Presence

• Examples– Stanley Cup Playoffs (Ice Hockey)– NCAA Final Four (College Basketball)– The Ashes (England & Australia Cricket)

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International EventsInternational Events

• Appeal Transcends National Borders

• Large Media Presence

• Venue often Shifts Among Countries

• Examples– Ryder Cup Golf Tournament– World Cup of Rugby– The Commonwealth Games

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Global EventsGlobal Events

• Broadcast to Global Audience– Significant Rights Fees Paid by Broadcasters

• National Pride often a Consideration

• Few Events in this Top Category

• Examples– Olympic Games– World Cup of Soccer

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Participation SportsParticipation Sports

• Market the Idea of Participating– Play more Golf– Engage in More 10-Pin Bowling

• Market Venues– Build and Market a New Golf Course– Building Bowling Facilities in Casinos

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Most Popular Participation SportsMost Popular Participation Sports

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Sporting Goods and ApparelSporting Goods and Apparel

• Equipment– Golf Clubs, Footballs, Exercise Equipment

• Clothing– Participation-Based: Softball Uniform– Fashion-Based: Logo Shirt

• Category Will be Expanded Later in Book

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Why Teach Sports Marketing?Why Teach Sports Marketing?

• Huge Economic Impact

• Little Focus on Sports Industry in Curricula

• More Emphasis on the Bottom Line

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Evolution: Sports MarketingEvolution: Sports Marketing

• Marketing of Sports Taught First

• Marketing Through Sports Added

• Leisure Emphasis Early

• Leisure and Business Focus Today

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Economic ImpactEconomic Impact

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ComponentsComponents

• Direct Spending by Consumers– Tickets, Hotels, Restaurants, Gas, Rental

Cars, Wages Paid to Workers, Participation Fees (e.g. Ski Lift Tickets; Golf Greens Fees)

• The Multiplier Effect– Recognizes That Money Turns Over in the

Economy: (Typically between 1.3 and 3 Times)

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The Multiplier EffectThe Multiplier Effect

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One-Day EventsOne-Day Events

• Event may occur over one day, but impact may cover extended period of time

• NFL Super Bowl

• Indianapolis 500

• Championship Boxing Match

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Multiday EventsMultiday Events

• Events encompass 2 or more days

• May be at single or multiple venues

• Olympics

• Masters Golf Tournament

• America’s Cup Yachting Regatta

• World Cup of Soccer

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Participation Sport/Recreation Participation Sport/Recreation

• Local Resident Contributions– Golf fees, restaurant, activity-based shopping

• Vacation Expenditures

• Participation Fees– Tournament entry, rental equipment

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Professional Team or ArenaProfessional Team or Arena

• Local Wages for Employees

• Tax Revenues

• Expenditures by Visitors

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Aggregate Economic ImpactAggregate Economic Impact

• Gross Domestic Sports Product (GDSP)

• Total Spent on Sports-Related Goods and Services in a National Economy in 1 Year

• Difficult to Measure

– Estimate for USA in 2003 is approximately $220 Billion

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Career OpportunitiesCareer Opportunities

• Internships– Variety of Positions– Often Unpaid– Establish Network of Associates - References

• Sales– Season Tickets, Group Tickets, Sponsorship– Suites, General Retail

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Career OpportunitiesCareer Opportunities

• Marketing Research

• Hospitality

• Facilities Management

• Public Relations

• Agents

• Retail Store Operations

• Participation Center Management

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Career OpportunitiesCareer Opportunities

• Sponsorship Purchasing– Making Good Decisions– Investment Decisions

• Sponsorship Evaluation– Postevent Measurement– Estimation of Return on Sponsorship

Investment

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Career TrendsCareer Trends

• More Jobs

• More International Opportunities

• More Focus on Selling Through Sports

• More Emphasis on Business Aspects

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Closing CapsuleClosing Capsule

• Aspiring sports marketers should not confuse it with playing a game. It is a job, one that demands time, energy, commitment and knowledge.