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1. To describe the basics of sports marketing

2. To examine how sports marketing has impacted sports

3. To discover how companies use sports marketing to reach consumers

4. To explain the concept of target marketing

5. To conclude sports marketing is essential to the funding of sport

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• Is the practice of pricing, planning, promoting, selling and distributing a company’s products

• Is performed with the attempt to meet the needs and wants of consumers

• Help companies to reach a competitive advantage

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Competitive advantage- occurs when a company operates in a more efficient manner than its competitors, which causes their sales to increase above other businesses

Competitive advantage- occurs when a company operates in a more efficient manner than its competitors, which causes their sales to increase above other businesses

• Defines the key management decisions needed to be successful in marketing

• Includes four basic marketing strategies, known as the “ 4 P’s”– price– product– place – promotion

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• Is customer driven• Relates directly to a company’s target

market• Includes four interrelated concepts and

tactics • Refers to the variables a company can

control

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Target market- a particular group of consumers a company classifies as the main focus of its marketing plan

Target market- a particular group of consumers a company classifies as the main focus of its marketing plan

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• Includes a wide range of functions and strategies, including:– creating a sales price or

price list

– calculating mark-up percentage

– using promotional pricing techniques

– understanding pricing laws and discrimination

– determining discounts, credit terms and available payment methods

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• Includes the following:– selecting which products to buy and sell– researching and creating product designs– naming and packaging products – updating, improving or eliminating

products from a product line– examining the product life

cycle– adding features to an

old product 8

• Is also described as “distribution”• Refers to introduction of the product to

consumers and determining appropriate transportation or delivery methods – using semi-trucks or airfreight carriers – utilizing intermediaries or wholesalers in the

distribution process

• Includes whether or not products should be sold online, in certain countries or globally 9

• Relates to the timing of promotional campaigns

• Refers to the type of message communicated to customers

• Requires selecting media outlets

• Creates activities and strategies to increase sales

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• Relate to sports and recreation industries because each provides:– a method of identifying place

• example:– in Houston, Texas, there would

be a greater demand for Houston Astros memorabilia than New York City where the Yankees play

– aid for promotion• example:

– major athletes endorse and promote a variety of products for numerous companies

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Can you think of other examples of how the 4 P’s apply to sports marketing?

• Is all of the marketing activities designed to satisfy sports consumers

• Uses mainstream or alternative sports and/or the figures associated with these sports to connect with a targeted group of consumers

• Builds positive brand awareness• Supports retail and sales promotions• Can be completed either by a sports

marketing firm or a general marketing firm

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Sports consumer- an individual who may play, watch or listen to sports or read, use purchase and/or collect items related to sports

Sports consumer- an individual who may play, watch or listen to sports or read, use purchase and/or collect items related to sports

• Focuses on the sport and activities that accompany a sporting event such as event planning, promotion, financing and sponsorship

• Can be divided into two major categories– marketing of the sport

• a television advertisement for the Kentucky Derby

• an Internet banner advertising the Indianapolis 500

– marketing through the use of sport• Tiger Woods endorsing Nike® sportswear• Peyton Manning advertising for DirectTV®

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• Uses market segmentation to identify their target market; sports consumers

• Has the goal of encouraging the consumer to act as a customer and purchase tickets and merchandise of the marketed sport or company

• Is also involved in the marketing of sports related products

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Market segmentation- a method of analyzing a market by using specific characteristics to identify a target market

Market segmentation- a method of analyzing a market by using specific characteristics to identify a target market

• Uses the following characteristics to help define a target market:– geographic location– demographics– psychographics

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• 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

• Are the statistics used to describe a population such as gender, age, race and earnings– example:

• companies such as CoverGirl® and Secret® have endorsement deals with athletes such as Olympians Nastia Liukin and Shawn Johnson to help them market to young women

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• 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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• Contains broad marketing goals and objectives for an entire company

• Provides direction for the marketing activities of a company for a specific period of time

• Are completed to ensure a company reaps all the benefits of a particular marketing strategy

• Helps a company monitor its performance when marketing products

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• 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

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Product Line- a group of closely related items which are manufactured or sold by a companyProduct Line- a group of closely related items which are manufactured or sold by a company

• Are the main category of sports products

• Include the following examples:– games– competitions– athletes– stadiums/arenas

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• 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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• 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

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Intangible products- non-physical services Intangible products- non-physical services

• 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

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Tangible products- physical goods which satisfy a need or want of the customerTangible products- physical goods which satisfy a need or want of the customer

• 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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• 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. 27

• Licensing

• Sponsorships

• Endorsements

• Promotions

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• 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

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Royalty- a fee which is paid to the licensorRoyalty- a fee which is paid to the licensor

• A video documenting a team’s path to the championship game

• A Yao Ming Houston Rockets® jersey

• A Pittsburgh Steelers® sweatshirt

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Can you think of any other licensing examples in or out of the sporting industry?

Can you think of any other licensing examples in or out of the sporting industry?

• 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

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Branding- the process of forming a mental association with a company or productBranding- the process of forming a mental association with a company or product

• Aflac® Player of the Game

• Coca-Cola®…the official soft drink of today’s game

• AT&T® Center in San Antonio the home of the San Antonio Spurs

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Can you think of any other examples of sponsorship?Can you think of any other examples of sponsorship?

• 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 33

• 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 Sharapova

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Can you think of other examples of endorsements?Can you think of other examples of endorsements?

• 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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• 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

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Can you think of any other promotion examples?Can you think of any other promotion examples?

• Ensure companies have a solid sports marketing plan

• Work with both sides of contract negotiations to ensure everyone gets what they want

• Include the following examples:– Millsport – The Athletes

Agency

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• Is a multibillion dollar global industry• Is all of the marketing activities

designed to satisfy sports consumers

• Uses mainstream or alternative sports and/or the figures associated with these sports to connect with a targeted group of consumers

• Builds positive brand awareness, support retail and sales promotions and gain an overall advantage in their market

• Can be completed either by a sports marketing firm or a general marketing firm

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1. A ________ occurs when a company operates in a more efficient manner than its competitors.

a. monopolyb. competitive advantagec. oligarchyd. all of the abovee. none of the above

2. List the 4 P’s of marketing.

3. A ______ market is a particular group of consumers a company classifies as the main focus of its marketing plan.

a. coreb. focusc. targetd. all of the abovee. none of the above

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4. ______ is also described as distribution.a. priceb. productc. placed. promotione. none of the above

5. Give an example of how sports marketing uses the 4 P’s.

6. ______ is a method of analyzing a market by using specific characteristics to identify a target market.

a. market segregationb. market segmentationc. market analysisd. all of the abovee. none of the above

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7. List to of the three characteristics used in market segmentation.

8. A _______ is a group of closely related items which are sold or made by a company.

a. product segment

b. product mix

c. product line

d. product code

e. none of the above

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9. An athletic jersey would be considered a/an ___________ product.a. intangibleb. tangiblec. biasedd. coree. none of the above

10. ______________ is the agreement that gives a company the right to use another’s brand name.a. sponsorshipb. endorsementc. licensingd. promotione. none of the above

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• (2004-2009). Retrieved March 30, 2009, from Edraw Soft: www.edrawsoft.com

• (2009). Retrieved March 30, 2009, from Tide.com: http://www.tide.com/en-US/index.jspx

• 2009. (n.d.). Retrieved March 30, 2009, from LetsGoDigital: www.letsgodigital.org

• Gilbert, S. J. (2007, October 29). Marketing Maria: Managing the Athlete Endorsement. Retrieved March 30, 2009, from Harvard Business School: http://hbswk.hbs.edu/item/5607.html

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Project Coordinator:Meghan Blanek &Maggie Bigham

Production Manager:

Dusty Moore

Executive Producers:

Gordon Davis, Ph.D.,

Jeff Lansdell

Production Coordinator:

Justin Jones & Megan Mitchell

Graphic Designer:

Ann Adams

© MMIXCEV Multimedia, Ltd.

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