1.2 SPORTS MARKETING

Unit 1

Chapter 1

LESSON 1.2

SPORTS MARKETING

Goals Define sports marketing. Explain the value of sports marketing to the

economy.

Slide 2

OPENING ACT Sports are big business at many

universities throughout the country. Basketball has become a big money maker for many colleges.

For the 04-05 school year, the University of Arizona men’s basketball program generated revenue of $16.6 million and a profit of $12.5 million.

They have had sell-out games for almost 20 years. Courtside seats can bring in as much as $30,000 per pair.

OPENING ACT CONT…. By playing in the NCAA tournament the

school secured money for their school from CBS, which televised the tournaments and distributed more than $400 million to the NCAA conferences

Big business can mean big salaries for college coaches. Tom Crean earned $1.65 million in 2005 at Marquette University. He has coached the Golden Eagles to 3 NCAA tournament appearances and a final four appearance.

QUESTIONS 1. Should successful college coaches

earn more than $1 million a year?

2. Describe a typical college basketball fan.

Chapter 1

WHY SPORTS MARKETING? demographics

common characteristics of a group age, marital status, income, education

sports marketing using sports to market products

Slide 6

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Chapter 1

NEW SPORTS, NEW OPPORTUNITIES

continual innovation provides new opportunities extreme sports

Wrestling XFL - 1.2 Sports Marketing\XFL Ad.flv

arena football Grand Rapids - 1.2 Sports Marketing\AFL Grand Rapids.flv League Promo - 1.2 Sports Marketing\AFL Promo Video.flv

Arena football is one of the fastest growing sports in the country. (founded 1987) Tickets sell for an affordable price ($17.50) Players meet fans and sign autographs after every game Clock does not stop and high scoring

Slide 7

QUESTION What has made arena football

successful?

Chapter 1

GROSS IMPRESSION gross impression

the number of times per advertisement, game, or show that a product or service is associated with an athlete, team or entertainer Every time your brain sees a product or company logo

on the back of a shoe, in a movie scene, or on a license-plate holder on a car your brain records that image.

Many college and pro teams have company or product logos on their uniforms.

Slide 9

Chapter 1

TIMING Fans want products and services that

identify them with winning teams and athletes.

Marketing efforts may need to be tweaked based on changes in winning trends. If a major athletic company has a successful

marketing campaign, competitors are likely to increase their marketing efforts.

Competition must be monitored so that a company’s marketing can remain unique

Slide 10

Chapter 1

Why are gross impression and timing important in sports marketing?

Slide 12

ANSWER Gross impression keeps the product

upfront in the minds of sports fans. Successful merchandise sales depend

upon having a product available when it is in high demand.

Chapter 1

THE VALUE OF SPORTS MARKETING

Sports marketing is a multi-billion-dollar global industry that has a definite impact on the economy.

Slide 14

Chapter 1

EMOTIONAL VALUE Emotional connections to teams

motivate fans to buy tickets to games.For example how many people in here are

loyal to the Lions (even though they are terrible)?

Marketers try to appeal to the emotions of fans

Slide 15

Chapter 1

SO MANY CHANNELS High profile sporting events generate

strong promotional revenues for broadcasters.The Super bowl, BCS, and March Madness

attract the attention of large sports minded audiences. Which in turn, attract high-paying promoters

Slide 16

Chapter 1

Name three ways that sporting events help boost the local economy and/or national economy.

Slide 17

ANSWER Sporting events result in fans spending

money on a wide array of related products and services that benefit the economy.FoodParkingHotels