SPORTS AND ENTERTAINMENT MARKETINGSPORTS AND ENTERTAINMENT MARKETING

CHAPTER 4 1

CHAPTERCHAPTER 44Marketing Products and Services

Through Sports4.14.1 Using Sports to Market Products

4.24.2 Sponsorship

4.34.3 Promotion

4.44.4 Endorsements

CHAPTER 4 2

LESSON 4.1LESSON 4.1

Using Sports to Market Products

GOALSGOALS• Understand the enormous market for sports.

• Explain emotional ties to sports and earning power of women in sports.

• Discuss the marketing cycle.

• Essential Question – What products can sports market?

CHAPTER 4 3

Market Audience Size

• The audience– Sports events attract more viewers and

participants than any other form of entertainment today

– An audience of avid fans is captive – meaning if they want to watch the game, they gotta’ watch the commercials!

CHAPTER 4 4

The Power of Sports

• Power of emotional ties– People experience intense emotions over sports– Pride in their city– Rioting after championship games – mostly

fueled by booze– Fans may overlook athlete’s bad behavior –

Mike Tyson, Tiger Woods

CHAPTER 4 5

The Power of Sports

• Power of new markets– Rising popularity of women’s athletics– Title IX – prohibits gender discrimination in

school programs that receive federal funds. EX – male field hockey players

CHAPTER 4 6

Marketing Cycle for sports

• 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 teams

• Consumers buy the products advertised

CHAPTER 4 7

Marketing Cycle for sports

1. Company buys the rights to advertiseduring a game or to use a logo on products

2. TV/Radio stations sell broadcast time to teams/sponsors

3. Cities buy the rights to host the teams

4. Consumer buys the products advertised during the game

CHAPTER 4 8

How Companies Decide

• Hire outside consulting firms to help advertise their products through sports

• Sports marketing groups within their own marketing department

CHAPTER 4 9

LESSON 4.2LESSON 4.2

Sponsorship

GOALSGOALS• Understand sponsors and their investments.

• Discuss prohibited sponsorship.

• Essential Question: Why are sponsors so valuable to a team?

CHAPTER 4 10

Sponsors and Investments

• Sponsor- a person, organization, or business that gives money or donates products and services to another person or team

CHAPTER 4 11

Sponsors and Investments

We will discuss:

• Reasons for sponsorship

• Need for profit

• Sponsorship in niche markets

• Examples of niche markets

CHAPTER 4 12

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

CHAPTER 4 13

Need for Profit

• Businesses become a sponsor for a 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

CHAPTER 4 14

Sponsorship in Niche (pronounced-neesh) Markets

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

CHAPTER 4 15

Examples of Niche Markets

• Auto racing is the number one sport for fan loyalty (source –the book??)

• Fans are very loyal to the products that their favorite driver endorses.

• Who would/does sponsor the X games and why?

• Who would/does sponsor a rodeo?

CHAPTER 4 16

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

• Fishing and rope jumping

• 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

• Fishing and rope jumping– These guys

– Then there’s this guy

CHAPTER 4 17

Loss of sponsors

• Multistate Settlement Agreement of 1998– Tobacco sponsorship is prohibited for concerts,

for events in which the participants are under 18, and for football, baseball, soccer, and hockey

– Tobacco sponsorship is limited to one event and one brand per year per business

CHAPTER 4 18

LESSON 4.3LESSON 4.3

Promotion

GOALSGOALS• Discuss promotion and its objectives.

• Understand the tools used in promotion.

• Essential Question – Why do companies promote a product?

CHAPTER 4 19

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– Bonita’s Floral Shop

• Promotional video example• Just too awesome…

CHAPTER 4 20

Promotion Targets

• Primary goal of promotion is to increase sales or attendance

• Attracting new markets and keeping old ones are equally important

• Critical stage in winning new customers

• Maintaining customer satisfaction, loyalty, and repeat business

CHAPTER 4 21

Promotion Objectives• Before spending money on a promotional campaign, the

company must know exactly what it wants to accomplish first

• Decide on target market

• Research market segmentation (dem,psy,geo,prodU,benD) of target market to ensure product and market are compatible

• Decide on the message– Do they want to persuade, inform, create or broaden?

• Determine what it wants consumers to do– Do they want us to try, participate or buy?

CHAPTER 4 22

Promotional Tools

A promotional plan or promotion mix, has four elements:

1.Personal selling2.Advertising3. Publicity4. Sales promotion• Some bad promotional ideas

– Bad advertisements

CHAPTER 4 23

Personal Selling

• Personal selling — communication between a seller and a customer

CHAPTER 4 24

Advertising

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

• Effective advertising should clearly explain the benefits of good product

CHAPTER 4 25

Publicity

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

• Lance Armstrong’s victory over cancer promoted interest in the Tour de France more than advertising ever could

CHAPTER 4 26

Sales Promotion

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

CHAPTER 4 27

LESSON 4.4LESSON 4.4

Endorsements

GOALSGOALS• Describe endorsements and their

restrictions.

• Describe qualifications for endorsers.

• Why do companies want celebrities to endorse their product?

CHAPTER 4 28

What Is an Endorsement?

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

• Endorsements are a promotional tool rather than a form of sponsorship.

• Chuck Norris!

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

• Endorsements are a promotional tool rather than a form of sponsorship.

• Chuck Norris!

CHAPTER 4 29

Legal Restrictions on Endorsements

1. Endorsements must always reflect the honest opinions, findings, and beliefs or experience of the endorser.

2. The endorser must have real experience with the product.

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

CHAPTER 4 30

Legal Restrictions on Endorsements (continued)

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

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

6. 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.

CHAPTER 4 31

Athlete Endorsements

• Top Ten paid athlete endorsements

• Advantages and disadvantages

• How controversial can an endorser be?

• Should endorsers speak out on anything besides the product?

• What businesses look for in an endorser

CHAPTER 4 32

Advantages and Disadvantages

• Advantages- • 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

CHAPTER 4 33

Advantages and Disadvantages

• Disadvantages- • Very $$$$$• Celebrity may not agree to only endorse one

product– MJ has endorsed Gatorade, Nike, McDonalds,

Rayovac, MCI, Sara Lee and Hanes!

• Risk of negative publicity if the endorser commits a crime or serious blunder

CHAPTER 4 34

How Controversial Can an Endorser Be?

• A difference between harmful endorsement and questionable endorsement

• Dennis Rodman

CHAPTER 4 35

Should Endorsers Speak Out?

• Debate over whether celebrity endorsers have a moral obligation to speak out on controversial topics Chuck Norris

• 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

CHAPTER 4 36

What Businesses Look for in an Endorser

• Positive, charismatic, trustworthy image

• A celebrity most consumers know

• A celebrity whose career is in process (not retired)

• Presents few risks

• Believable relationship with the product

Get with a partner

• Find five athletes/celebrities and list the product(s) they endorse

• For each of the five, explain why you feel the company they endorse is a good or bad choice for the athlete/celebrity and why

• Don’t forget, endorsements are different than sponsors, so do your research!

CHAPTER 4 37