Sports Marketing

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Sports Marketing. What is Sports Marketing?. Sports marketing is the use of sports to market products (DUH) So for example companies place their logos on jersey’s of teams they represent. This gets them exposure on many levels. Under Armour, Nike, Reebok, Adidas, etc. Gross Impressions. - PowerPoint PPT Presentation

Transcript of Sports Marketing

  • Sports Marketing

  • What is Sports Marketing?Sports marketing is the use of sports to market products (DUH)

    So for example companies place their logos on jerseys of teams they represent. This gets them exposure on many levels.Under Armour, Nike, Reebok, Adidas, etc.

  • Gross ImpressionsCompanies monitor their exposure by counting the number of times per advertisement, game, or show that a product or service associated with an athlete, team, or entertainer. This number is known as gross impressions.This may be subtle such as a small logo on a uniform. Every time you see a product or company logo your brain records that image. Advertisers hope you remember it when you buy such a product!

  • TimingTiming is very important in sports marketing because fans want products that identify them with a winner. So a teams wins and losses are more than just points. There is a dollar value that takes a hit as well.

  • Michael Phelps

  • Why Sports?In 2007 an estimated 30 million people watched the Super Bowl worldwide!Average attendance for sportsNFL 69,000 per game x 16 games x 32 teams = 35,328,000 fansMLB 33,000 per game x 160 games x 30 teams = 158,400,000NBA 17,000 per game x 82 games x 30 teams = 41,820,000NHL 17,000 per game x 82 games x 30 teams = 41,820,000If 10% of that audience spends roughly $20 at your store you would bring in $554,736,000 in revenue annually.

  • Sports Marketing FirmsSports firms bring business sponsors together with sports teams, individual athletes, and coaches. Next it negotiates terms of a contract between them and manages the contract for both parties.Firms match athletes and businesses for mutual benefits

  • Marketing MythSports movies are often criticized for poor acting and little plot. The top five income producing sports movies as of the end of 2006 may change that mind set.Waterboy (1998): $161,456,592The Longest Yard (2005): $158,000,000Jerry Maguire (1996): $153,620,822

    4. Talladega Nights (2006): $148,000,0005. Rocky IV (1985): $127,873,7166. Rocky III (1982): $122,823,1927. Seabiscuit (2003): $118,251,5558. Rocky (1976) - $117,000,0009. Remember The Titans (2000) - $115,000,00010. Dodgeball (2004) - $114,000,00011. A League Of Their Own (1992) - $107,000,00012. Million Dollar Baby (2004) - $100,000,000

    What can you conclude from the popularity of sports movies?

  • AgentsOne owner or multiple agents

    An agent is a person responsible for making contacts with clients and sponsors

    Scott Boras, MLBCarlos Beltran, Johnny Damon, Prince Fielder, Matt Holiday, Manny Ramirez, Alex Rodriguez, Mark TexieraDrew Rosenhaus, NFLAnquan Boldin, Ocho Cinco, Plaxico Burress, Terrell Owens, Clinton PortisDavid Falk, NBACharles Barkley, Elton Brand, Patrick Ewing, Allen Iverson, Michael Jordan, Stephon Marbury

  • The Power of SportsMore time and money are spent in sports than any other recreational pursuit in the countrySports fans spend a lot of mental energy on their favorite teams and athletes

    EMOTIONAL TIESThe power of athletics as a marketing aid can be explained partly by the emotional ties people feel towards sportsMillions of people feel intense love, joy, hate, or disappointment over sports

  • Condone the EntertainerFans will often ignore an athletes past to be entertained.In 1999 fans spent on average $49.95 to see Mike Tyson fight Francois Botha and raise for him $148 million after his 1995 release from prison. Other Forgiven Fan FavoritesKobe Bryant, Charles Barkley, Ray Lewis, Terrell Owens, Jason Giambi, Corey Dillon

  • Corey Dillon Rap Sheet Arrested for: DUI, theft (twice), intent to sell cocaine, obstructing a police officer (thrice), resisting arrest (twice), assault (five times), criminal trespass, malicious mischief (twice), reckless endangerment (twice), domestic violence, rape

  • SponsorsA sponsor is a person, organization, or business that gives money or donates products and services to another person, organization, or event in exchange for public recognition.

    For example, if Phils Pizza sponsors your recreational basketball team!

  • Reasons to SponsorIncrease SalesIntroduce new product or service to large audienceCompete where many potential customers are in one placeTo be identified with an even in which target market is interstedEarn goodwill of audience

    Show commitment to communityEnter new marketsEntertain clients, employees, or potential customersEnhance companies image

  • ReturnsSince costs can be high, sponsors carefully watch the returns on their sponsorships.A return is the profit the sponsor earns for support.For example, Phils would likely see an increase in sales because of its sponsorship!

  • EndorsementsAn endorsement is a persons public expression of approval or support for a product or service.They are a promotional tool rather than a form of sponsorship.If two people are seen on a commercial speaking of a product they are not endorsers because they are acting as spokespersons for the company.

  • Endorsement RulesHowever, a well known race car driver for a brand of tires is an endorsement because:The public knows the person is a real professional driverPublic assumes the comments are personal opinionPublic assumes the driver would not make comment if he/she did not believe it

  • Endorsement RestrictionsEndorsements mustAlways reflect honest opinions, findings, beliefs or experiences of the endorserEndorser must have real experience with productNot include deceptive or misleading statements.Must not be reworded or out of contextEndorser must use and continue to use and believe in product for as long as he/she endorses productIf product changes in any way, endorser must be notified, and the endorser must continue to use and believe in new product

  • Most Endorsed AthletesTiger Woods ($100 Million)Phil Mickelson ($48 Million)LeBron James ($25 Million)Dale Earnhart Jr. ($25 Million)Michelle Wie ($19.5 Million)Kobe Bryant ($16 Million)Jeff Gordon ($15 Million)Shaquille ONeal ($15 Million)Peyton Manning ($13 Million)Dwayne Wade ($12 Million)

    Do you find anything odd about this list?

  • Who Endorses Who?Derek Jeter and Gatorade Peyton Manning and Direct TV Dan Marino and Nutrisystem Michael Jordan and Nike Tiger Woods and Buick Jeff Gordon and TAG Heuer Danica Patrick and GoDaddy Charles Barkley and T-Mobile David Beckham and Adidas Dwayne Wade and Converse

    Yao Ming and Reebok Brady Quinn and EAS Nutrition Kasey Kahne and Vitamin Water Maria Sharapova and Canon Coach Krzyzewski and American Express Lebron James and Powerade John Madden and Electronic Arts Tony Hawk and Activision

  • Top Sporting Events1. NFL Football2. NASCAR 3. NCAA Football 4. MLB Baseball 5. NCAA Basketball 6. NBA Basketball 7. NHL Hockey 8. PGA Golf 9. AFL Arena Football 10. NCAA Baseball 11. Olympic Sports