A Strategic Perspective on

A Strategic Perspective on

Sports Marketing

Objectives

Define Sports Marketing Examine Growth Types of Sports Consumers Types of Sports Products Elements of Strategic Marketing Process

What is Sports Marketing???

Brenda is a “pool player” Angela is a “league coordinator” Peter is an “event coordinator” Larry is “treasurer of the VNEA” Jessica is “the manufacturer of Falcon Cues” Jim is “the Canadian distributor of pool

tables”

Defining Sports Marketing

Sports marketing is the specific application of marketing principles and processes to sport products and to the marketing of non-sports products through association with sport.

Association

Brenda – is trying to secure sponsorship Angela – is recruiting players Peter – is trying to find the best venue for

tournaments Larry – is the sanctioning body of the league Jessica – wants the pool players to use her pool

cues Jim – Wants to sell pool tables to pool players,

league operators and event coordinators.

Webster’s defines sport as:

“a source of diversion or a physical activity engaged in for pleasure.”

Entertainment – is also defined as something diverting or engaging!

Comparison

EntertainmentMoviesPlays

TheaterOpera

ConcertsPlay = Script

Concert = Program

Sports

SpontaneousAnd

Uncontrollable

Determining Emotions

Game is close and team winsExcitement and Joy

Game is boring and team is losesEntertainment benefit is different

A Marketing Orientation

Emphasis on satisfying the consumer

1. Intelligence generation2. Intelligence dissemination3. Responsiveness

Growth of the Sports Industry

The Sports Industry is the eleventh largest of all U.S. industry groups. 152 Billion (1995)

1. Growth in Attendance2. Growth in Media Coverage3. Growth in Employment4. Growth in Global Markets

Structure of the Sports Industry

Learn by studying the different types of organizations and their involvement.

Local, Recreational, National, Youth, Intercollegiate, Professional and Sanctioning Bodies.

Simplified Model of Consumer-Supplier Relationships

Consumers Spectators – observe (in person or media)

-buy single tickets or season tickets Corporate/Business – blocks of tickets, corporate

box, Bring spectators to event Purchase rights to televise – controls how and

when the event will be viewed by spectators


The Participant as Consumers Becomes active in sport at a variety of

competitive levels.1. Unorganized Sport Participants Not sanctioned or controlled by external

authority.


The Participant as Consumers2. Organized Sport Participants Amateur – no compensations Professional - compensation


The Sponsors as ConsumersSports Sponsorship

An exchange of money or product for the right to associate its name or product with a sporting event



Helps achieve Corporate Objectives. Public awareness Corporate image Community involvement



Helps achieve Marketing Objectives. Reach target market Brand positioning Increase Sales


The Sponsors as Consumers Sports Sponsorship

Helps achieve Media Objectives. Generate awareness Enhance ad campaign Generate Publicity


Products Events Sporting Goods Personal training for sport Sport Information


The Sports ProductIs a good or service, or any combination

of the two that is designed to provide benefits to a sports spectator, participant or sponsor.


Goods/ServiceGoods = Tangible/physicalTennis ball, skates, etc.Service = Intangible/non-physical Competitive event, lesson


Types of Sports Products1. Sporting Events2. Athletes3. ArenaSporting Goods1. Equipment2. Licensed Merchandise3. Collectables and Memorabilia


Producers/Intermediaries Ownership Sanctioning bodies Sponsors Media Agents Equipment manufacturers


Agent Responsibilities Determine value of the player’s service Convince a club to pay for the player Develop a compensation package Protect players rights Counsel the player re- career and financial Assist player to earn extra income, endorsements

speeches and appearances

Sports Marketing Exchange Process

Multiple exchanges occur Something of Value

MoneyTime

Personal EnergyEntertainment

Better quality of life Enhanced Image

Exchange PlayersSports Spectators

Sports ParticipantsOrganizations

Sporting events Sporting good manufacturers

Teams

Documents

A Strategic Perspective on