CHAPTER 4 Marketing Products and Services Through Sports

CHAPTER 4 SLIDE 1 © SOUTH-WESTERN/THOMSON

SPORTS AND ENTERTAINMENT MARKETINGSPORTS AND ENTERTAINMENT MARKETING

CHAPTERCHAPTER 44Marketing Products and Services Through Sports

4.14.1 Using Sports to Market Products

4.24.2 Sponsorship

4.34.3 Promotion

4.44.4 Endorsements


SPORTS AND ENTERTAINMENT MARKETINGSPORTS AND ENTERTAINMENT MARKETINGLESSON 4.1LESSON 4.1

Using Sports to Market Products

GOALSGOALSUnderstand the enormous market for

sports.Explain emotional ties to sports and

earning power of women in sports.Discuss the marketing cycle.



Market Audience Size

The audienceSports events attract more viewers and

participants than any other form of entertainment today

An audience of avid fans is captive



The Power of Sports

Power of emotional tiesPeople experience intense emotions over

sportsPride in their cityRioting after championship gamesFans may overlook athlete’s bad behavior

Power of new marketsRising popularity of women’s athleticsTitle IX



Marketing Cycle

A company buys the right to advertise or use a logo on products

Television and radio stations and networks sell broadcast time

Cities buy the rights to host teamsConsumers buy the products advertised



How Companies Decide

Outside consulting firmsSports marketing groups



LESSON 4.2LESSON 4.2

Sponsorship

GOALSGOALSUnderstand sponsors and their

investments.Discuss prohibited sponsorship.



Sponsors and Investments

Reasons for sponsorshipNeed for profitSponsorship in niche marketsExamples of niche markets



Reasons for Sponsorship Increase sales Introduce a new product or service Compete where potential customers are in one place Identify an event with a target market Earn the goodwill of the audience Show community commitment Enter new markets Entertain clients, employees, or potential customers Enhance the companies’ image



Need for Profit

Guaranteed amount of exposure, recognition, or acknowledgement

Market research measures the results of its sponsorships

Return—the profit the sponsor earns from its support of an athlete or team



Sponsorship in Niche Markets

Niche marketing—researching a target market to determine the specific items or services a small group of people will buy



Examples of Niche Markets

NASCARX Games



Can Anyone Sponsor Anything? Newer sports offer attractive opportunities for

smaller businesses Minor league baseball Affinity sports—niche markets whose

participants are just as passionate about their sports as are enthusiasts of the more traditional sports

Loss of sponsors




Promotion

GOALSGOALSDiscuss promotion and its objectives.Understand the tools used in promotion.



Promotion

Selling—the exchange of a product or service for another item of equal or greater value

Promotion—publicizing or advertising a product, service, or event with the goal of selling it

Promotion example



Promotion Targets

Primary goal of promotion is to increase sales or attendance

Winning new customersMaintaining customer satisfaction,

loyalty, and repeat business



Promotion Objectives

Decide on target marketDecide on the messageDetermine what it wants consumers to do



Promotional Tools

The four elements in a promotion plan arePersonal sellingAdvertisingPublicitySales promotion



Personal Selling

Personal selling—in-person, face-to-face communication between a seller and a customer



Advertising

Advertising—paid communication between the product maker or seller and the audience or customer



Publicity

Publicity—any free notice about a product, service, or event



Sales Promotion

Sales promotion—any action or communication that will encourage a consumer to buy a product




Endorsements

GOALSGOALSDescribe endorsements and their

restrictions.Describe qualifications for endorsers.



What Is an Endorsement?

Endorsement—a person’s public expression of approval or support for a product or service



Legal Restrictions on Endorsements Endorsements must always reflect the honest

opinions, findings, and beliefs or experience of the endorser.

The endorser must have real experience with the product.

The endorsements may not contain any deceptive or misleading statements. The statements must be able to be substantiated by the advertiser.



Legal Restrictions on Endorsements (continued)

Endorsements may not be presented out of context or reworded so as to distort in any way the endorser’s opinion.

The endorser must use and continue to use and believe in the product for as long as the endorser is used in the advertisements.

If the product changes in any way, the company must notify the endorser, and the endorser must continue to use and believe in the new or revised product.



Athlete Endorsements

Advantages and disadvantagesHow controversial can an endorser be?Should endorsers speak out on

anything besides the product?What businesses look for in an endorser



Advantages and Disadvantages Consumers will buy products endorsed by

celebrities more often than products that are not so endorsed

Viewers, listeners, and fans are less likely to turn off a commercial featuring a celebrity than a commercial featuring a fictitious character

Consumers tend to believe celebrities, especially those who are chosen for their good public image



How Controversial Can an Endorser Be?

A difference between harmful endorsement and questionable endorsement

Dennis Rodman



Should Endorsers Speak Out? Debate over whether celebrity endorsers have

a moral obligation to speak out on controversial topics

Athletes are not experts in the field of politics, labor, human rights, or global issues

Athletes have a responsibility to know what’s going on with the business they endorse



What Businesses Look for in an Endorser

Positive, charismatic, trustworthy imageA celebrity most consumers knowA celebrity whose career is in process

(not retired)Presents few risksBelievable relationship with the product

CHAPTER 4 Marketing Products and Services Through Sports

Documents

Transcript of CHAPTER 4 Marketing Products and Services Through Sports