CHAPTER 3: THE SPORTS MARKET. I. SPORTS MARKETING PROFILE PEOPLE SPEND MONEY ON SPORTS BECAUSE THEY...

CHAPTER 3:THE SPORTS MARKET

I. SPORTS MARKETING PROFILE

• PEOPLE SPEND MONEY ON SPORTS BECAUSE THEY ARE ENTERTAINED BY THE COMPETITION AND SPECTACLE OF SPORTS. SPORTS MARKETERS SELL SPORTS, GAMES, AND SERVICES TO THESE FANS

• SPORTS MARKETING:

• MARKETING ACTIVITIES DESIGNED TO SATISFY THE NEEDS AND WANTS OF SPORTS CONSUMERS THRU PLANNING, PROMOTING, FINANCING AND SPONSORSHIP.

• MARKETING OF SPORTS AND MARKETING THRU SPORTS

• HISTORY:

ARNOLD PALMER WAS ONE OF THE 1ST PROFESSIONAL ATHLETES TO ASSOCIATE WITH CORPORATIONS IN A PROFESSIONAL ROLE

• MONDAY NIGHT FOOTBALL

II. CAREERS

• SPORTS MARKETING IS A MULTI-BILLION DOLLAR INDUSTRY W/ MANY CAREER OPPORTUNITIES:• SCRIPTWRITER Avg. Salary: PRODUCER

Athlete $43,350• TICKET AGENT Ad Sales $47,890• FOOD-MERCHANDISE bls.gov/ooh• GROUP TICKET SALES• SPORTS AGENT

WHY???

•Why is the average salary of an athlete so low???

III. CATEGORIES OF SPORTS

• THERE ARE SEVERAL CATEGORIES OF SPORTS THAT CAN BE CLASSIFIED AS AMATEUR OR PROFESSIONAL.

A. AMATEUR:

ANYONE WHO DOES NOT GET PAID TO PLAY A SPORT OR PARTICIPATE IN A SPORTING EVENT. YOU ONLY NEED THE DESIRE AND THE DRIVE!

B. PROFESSIONAL:

ATHLETE WHO HAS THE WILL AND ABILITY TO EARN AN INCOME FROM A PARTICULAR SPORT

IV. CATEGORIES OF AMATEUR SPORTS

• THERE ARE A VARIETY OF EVENTS THAT ARE CATEGORIZED AS AMATEUR SPORTING EVENTS:

A. YOUNG AMATEUR SPORTS- YOUTH LEAGUE TOURNEMENTS IN MAJOR CITIES THAT ATTRACT PARENTS, SPONSORS AND COLLEGES

B. RECREATIONAL SPORTS- CAN BE COMPETITIVE SUCH AS DOWN HILL SKIING, SOCCER, SOFTBALL NON-COMPETITVE SUCH AS SCUBA DIVING, ROLLERBLADING, SKYDIVING, AND ROCK CLIMBING

C. HIGH SCHOOL SPORTS-STRONG COMMUNITY TIES EDUCATIONAL BALANCECOMMUNITY TRADITIONLOCATION CONSIDERATIONS

D. COLLEGE/UNIVERSITY SPORTS-VERY POPULAR AND COMPETITIVEOFFER LARGER VARIETY LARGER BUDGETS (OHIO STATE)ALUMNI CONTRIBUTIONSNCAA GOVERNED-MEN’S BASKBL

V. CATEGORIES OF PROFESSIONAL SPORTS

• PROFESSIONAL SPORTS PAYS OUT AND TAKES IN THE MOST AMOUNT OF MONEY OF ALL SPORTING CATEGORIES:

A. PLAYER PAY-

PLAYERS WILL RECEIVE NOT ONLY PAYMENT FROM THE TEAM/CORP. BUT ALSO THRU ENDORSEMENTS (LEBRON JAMES, MICHAEL JORDAN, TIGER WOODS)

B. TEAMS AS BUSINESSES-

TEAMS ARE CONSIDERED FULLY FUNCTIONAL BUSINESSES WHO’S MAIN GOALS ARE:

GET THE BEST PLAYERS SELL THE MOST MERCHANDISE

SELL THE MOST TICKETS

C. PROFESSIONAL SPORTS ENTERTAINMENT-ATHLETIC & ENTERTAINMENT MARKETING

ARE INVOLVED. MAJOR CORP. ARE WELCOMED AS SPONSORS B/C THEY ATTRACT AUD. TO PRODUCTS AS WELL AS THE SPORT.

VI. OTHER SPORTS CATEGORIES

• BESIDES THE MAIN CATEGORY OF SPORTS AND SPORTING EVENTS, THE WORLD OF SPORTS HAS BROADENED ITS CATEGORIES:

A. OLYMPICS-

-GREEK INFLUENCE (776 B.C.-HRCL)-1890-REINSTATED-(IOC)-9 COUNTRIES-BROUGHT BACK TO ATHENS 1896(300 ATHLETES, 13 COUNTRIES)

ABANDONED CITIES

ILLEGAL DRUGS, TERRORIST ATTACKS, AND BOYCOTTS

1984-FIRST CORPORATE SPONSORSHIP FROM 43 CORP

(225 MILLION)

AMATEUR RULE: OVERTURNED IN 1986. 1992 “DREAM TEAM”

B. PARALYMPICS-

-CONTEST FOR THOSE WITH SPINAL CORD INJURIES-1960

-1968-SPECIAL OLYMPICS-EUNICE KENNEDY SHRIVER. CURRENTLY SERVES 1 MILLION IN 200 PROGRAMS & 150 COUNTRIES

C. INTERNATIONAL SPORT EVENTS

BRINGING EVENTS TO AMERICA FROM AROUND THE WORLD

-TOUR DE FRANCE-POLO-WORLD CUP-OLYMPICS

D. WOMEN’S SPORTS (PG. 67)-1932 MILDRED DIDRIKSON-1972 TITLE IX-BANS GENDER DISCRMN. IN

SCHOOLS-BILLE JEAN KING-1991-1ST FEMALE NBA PRESD.

E. EXTREME SPORTS-

NON-TRADITIONAL METHODS OF ATHLETIC COMPETITION:

• SURFING• SKATEBOARDING• SNOWBOARDING• MOUNTAIN BIKING • X GAMES- ESPN