CHAPTER 3:THE SPORTS MARKET
I. SPORTS MARKETING PROFILE
• PEOPLE SPEND MONEY ON SPORTS BECAUSE THEY ARE ENTERTAINED BY THE COMPETITION AND SPECTACLE OF SPORTS. SPORTS MARKETERS SELL SPORTS, GAMES, AND SERVICES TO THESE FANS
• SPORTS MARKETING:
• MARKETING ACTIVITIES DESIGNED TO SATISFY THE NEEDS AND WANTS OF SPORTS CONSUMERS THRU PLANNING, PROMOTING, FINANCING AND SPONSORSHIP.
• MARKETING OF SPORTS AND MARKETING THRU SPORTS
• HISTORY:
ARNOLD PALMER WAS ONE OF THE 1ST PROFESSIONAL ATHLETES TO ASSOCIATE WITH CORPORATIONS IN A PROFESSIONAL ROLE
• MONDAY NIGHT FOOTBALL
II. CAREERS
• SPORTS MARKETING IS A MULTI-BILLION DOLLAR INDUSTRY W/ MANY CAREER OPPORTUNITIES:• SCRIPTWRITER Avg. Salary: PRODUCER
Athlete $43,350• TICKET AGENT Ad Sales $47,890• FOOD-MERCHANDISE bls.gov/ooh• GROUP TICKET SALES• SPORTS AGENT
WHY???
•Why is the average salary of an athlete so low???
III. CATEGORIES OF SPORTS
• THERE ARE SEVERAL CATEGORIES OF SPORTS THAT CAN BE CLASSIFIED AS AMATEUR OR PROFESSIONAL.
A. AMATEUR:
ANYONE WHO DOES NOT GET PAID TO PLAY A SPORT OR PARTICIPATE IN A SPORTING EVENT. YOU ONLY NEED THE DESIRE AND THE DRIVE!
B. PROFESSIONAL:
ATHLETE WHO HAS THE WILL AND ABILITY TO EARN AN INCOME FROM A PARTICULAR SPORT
IV. CATEGORIES OF AMATEUR SPORTS
• THERE ARE A VARIETY OF EVENTS THAT ARE CATEGORIZED AS AMATEUR SPORTING EVENTS:
A. YOUNG AMATEUR SPORTS- YOUTH LEAGUE TOURNEMENTS IN MAJOR CITIES THAT ATTRACT PARENTS, SPONSORS AND COLLEGES
B. RECREATIONAL SPORTS- CAN BE COMPETITIVE SUCH AS DOWN HILL SKIING, SOCCER, SOFTBALL NON-COMPETITVE SUCH AS SCUBA DIVING, ROLLERBLADING, SKYDIVING, AND ROCK CLIMBING
C. HIGH SCHOOL SPORTS-STRONG COMMUNITY TIES EDUCATIONAL BALANCECOMMUNITY TRADITIONLOCATION CONSIDERATIONS
D. COLLEGE/UNIVERSITY SPORTS-VERY POPULAR AND COMPETITIVEOFFER LARGER VARIETY LARGER BUDGETS (OHIO STATE)ALUMNI CONTRIBUTIONSNCAA GOVERNED-MEN’S BASKBL
V. CATEGORIES OF PROFESSIONAL SPORTS
• PROFESSIONAL SPORTS PAYS OUT AND TAKES IN THE MOST AMOUNT OF MONEY OF ALL SPORTING CATEGORIES:
A. PLAYER PAY-
PLAYERS WILL RECEIVE NOT ONLY PAYMENT FROM THE TEAM/CORP. BUT ALSO THRU ENDORSEMENTS (LEBRON JAMES, MICHAEL JORDAN, TIGER WOODS)
B. TEAMS AS BUSINESSES-
TEAMS ARE CONSIDERED FULLY FUNCTIONAL BUSINESSES WHO’S MAIN GOALS ARE:
GET THE BEST PLAYERS SELL THE MOST MERCHANDISE
SELL THE MOST TICKETS
C. PROFESSIONAL SPORTS ENTERTAINMENT-ATHLETIC & ENTERTAINMENT MARKETING
ARE INVOLVED. MAJOR CORP. ARE WELCOMED AS SPONSORS B/C THEY ATTRACT AUD. TO PRODUCTS AS WELL AS THE SPORT.
VI. OTHER SPORTS CATEGORIES
• BESIDES THE MAIN CATEGORY OF SPORTS AND SPORTING EVENTS, THE WORLD OF SPORTS HAS BROADENED ITS CATEGORIES:
A. OLYMPICS-
-GREEK INFLUENCE (776 B.C.-HRCL)-1890-REINSTATED-(IOC)-9 COUNTRIES-BROUGHT BACK TO ATHENS 1896(300 ATHLETES, 13 COUNTRIES)
ABANDONED CITIES
ILLEGAL DRUGS, TERRORIST ATTACKS, AND BOYCOTTS
1984-FIRST CORPORATE SPONSORSHIP FROM 43 CORP
(225 MILLION)
AMATEUR RULE: OVERTURNED IN 1986. 1992 “DREAM TEAM”
B. PARALYMPICS-
-CONTEST FOR THOSE WITH SPINAL CORD INJURIES-1960
-1968-SPECIAL OLYMPICS-EUNICE KENNEDY SHRIVER. CURRENTLY SERVES 1 MILLION IN 200 PROGRAMS & 150 COUNTRIES
C. INTERNATIONAL SPORT EVENTS
BRINGING EVENTS TO AMERICA FROM AROUND THE WORLD
-TOUR DE FRANCE-POLO-WORLD CUP-OLYMPICS
D. WOMEN’S SPORTS (PG. 67)-1932 MILDRED DIDRIKSON-1972 TITLE IX-BANS GENDER DISCRMN. IN
SCHOOLS-BILLE JEAN KING-1991-1ST FEMALE NBA PRESD.
E. EXTREME SPORTS-
NON-TRADITIONAL METHODS OF ATHLETIC COMPETITION:
• SURFING• SKATEBOARDING• SNOWBOARDING• MOUNTAIN BIKING • X GAMES- ESPN
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