Chapter One Sports Meets Marketing. Learning Objectives 1.Describe the characteristics of sports...

Chapter One

Sports Meets Marketing

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Learning Objectives

1. Describe the characteristics of sports marketing.

2. Discuss the three roles of marketing in sports organizations.

3. Summarize the evolution and history of sports marketing.

4. Describe contributing factors in the growth of sports and sports marketing.

5. Define the components of the 5P framework of sports marketing.

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Tony Ponturo

• Sports/Entertainment Consulting• New York advertising – 6 years• Anheuser-Busch – 26 years• Producer Broadway hits

– Tony Award

• Inaugural member – “Champions” program– Street and Smith’s Sports Business Journal

• 14th most influential business executive– BusinessWeek Magazine

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Marketing is the activity, set of institutions, and processes for _______, communicating, delivering, and ___________ offerings that have value for customers, clients, partners, and society at large.

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Sports Marketing is the use of marketing for ________, communicating, delivering, and _________ sports experiences that have value for customers, clients, partners, and society.

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Sports Marketing

• Marketing of sports

• Marketing through sports

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Characteristics of Sports Marketing

• Affinity advantage

_____________________• Positioning challenge

______________________• Experience-based relationships

_______________________

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Figure 1.1Marketing’s Role in Sports

• Catalyst for creating customer value

_________________________________• Develops and nurtures customer relationships

_________________________________• Connects organizations with external environment

_________________________________

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Creating Customer Value

• Value–Consumption _________ –Sacrifices ________

• Two options–_________ benefits–_________ sacrifices

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Customer Relationships

• Marketing influential–Close proximity to customers

• Relationship marketing

______________________• Cost of customer acquisition

–_______ greater than retention

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Figure 1.2The Relationship Between External Factors, Marketing

Decision, and Customers

External Factors

· Competition· Economy· Public Policy· Sociocultural Trends· __________

Marketing Decisions

· _____________· ____________· Product· Price· Place· Promotion

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Sports Marketing Evolution

• Monopoly Era (1900-1950)

• Television Era (1950-1990)

• Highlights Era (1990-2010)

• Experience Era (2010-today)

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Sports Marketing Growth Factors

• Growth of sports media

_________________________________• Increased interest in sports sponsorships

__________________________________• Desire to build global brands

__________________________________• Inclusion in economic development planning

___________________________________

Business-Driven Factors

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Sports Marketing Growth Factors

• Increase emphasis on leisure activities

• Introduction of new sports

• Increased interest in women’s sports

• Increased interest in personal fitness

Customer-Driven Factors

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Figure 1.5Sports Entertainment Marketing 5 Ps

• Positioning – ____________ customers

• People– ____________ customers

• Promotion– _____________ customers

• Platform – _____________ to customers

• Profits– ______________ customers

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Positioning

• Customer focus• Key marketing tasks

– Establish values and mission– Conduct market analysis– Set marketing objectives– Select target markets

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Platform

• Bundle of benefits• Brand relationships• Product• Place or distribution

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Figure 1.6The Sports Product

• Sporting Goods• Leagues• Teams• Events• Experiential Products• Athletes• Sponsorships• Merchandise• Support Products• Venues

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Promotion

• Communication• Customer engagement• Voice of brand• Sponsorships

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Profit

• Customer value• Customer satisfaction• Price• Performance measurement

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People

• Service culture• Quality of interactions• Front-line employees• Outsourcing• Sports marketing professionals

–Preparation

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Tony Ponturo

• Key differences of sports marketing– Sports team/league project own image– League brand involves many team brands– High media profile

• Contrast to entertainment marketing– Strong local/regional appeal

• Trends or events shaped sports marketing– Use of playing field for marketing purposes– Evolution of sponsorships– Global reach

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