Transcript Chapter 4

Chapter 4
Marketing Products
and Services
Through Sports
Chapter Overview
4.1
4.2
4.3
4.4
Using Sports to Market Products
Sponsorship
Promotion
Endorsements
Lesson 4.1
Using Sports to
Market Products
Market Audience Size
1997-24.7 Million
Golfers, 152 Billion
spending by sports
advertisers
1992-1,800 Hours of
sports on TV
If you want to see
the team, game, or
athlete, you have to
see the ad
Emotional Ties
New Market Power
Women make up
80% of all purchasing
decisions
Men have larger
portion of promotion
and endorsement
dollars
Marketing Theory
Company buys rights
to advertise during a
game/use a logo on
products it makes.
Cities buy the rights
to host teams; must
sell this idea to the
taxpayers.
TV/Radio networks
sell broadcast time
to teams and their
sponsors.
Consumer buys the
products advertised
during the game.
Lesson 4.2
Sponsorship
What is a Sponsor?
Person, organization,
or business that gives
money or donates p/s
to another person,
organization or event
in exchange for public
recognition.
Reasons for Sponsorship
Inc. sales
Introduce new p/s
Compete where
potential
customers are in
1 place
Identified with an
event
Earn goodwill
Show commitment
Enter new market
Entertain clients,
employee,potential
customers
Enhance co. image
Niche Marketing
Researching a target
market to determine
what a small group
of people will buy.
Men and Women in
different age
groups.
12-24; 25-34; 35-44
Auto Racing #1 for
most loyal fans.
Young Men 12-34
most sought after.
X-Games, Gravity
Games.
Can You Sponsor Anything?
Affinity Sports: niche marketing
whose participants are passionate
about their sports.
Ex????
Loss of Sponsors: Tobacco and
Alcohol bans and Ad blackouts.
Lesson 4.3
Promotion
All About Promotion
Publicizing or advertising a p/s or event
with the goal of selling it.
Purpose: Make the consumer want the
product.
Goal: Inc. sales/attendance through
persuasion.
Objective: Earn $$$$$$
Promotion Plan
Personal
Selling
Advertising
Publicity
Sales
Promotion
Personal Selling
In-person, face-to-face
communication between a seller
and a customer.
Advantage: Overcome hesitation on
the part of the consumer
Seller must be familiar with the
product and must want to sell it.
Advertising
Publicity
Paid communication
between product
maker or seller and
the audience or
customer.
Clearly explain the
benefits of product.
Can occur
anywhere.
Free notice about
a p/s or event.
Articles, sound
bites
Keeping your
name, event,
organization in
public view.
Sales Promotion
Any action or
communication that
encourages a consumer
to buy a product.
Limited memberships,
giveaways, coupons,
free samples.
Lesson 4.4
Endorsements
What is an Endorsement?
Person’s public expression of
approval or support for a p/s.
Promotional tool rather than form
of sponsorship.
Legal restrictions on endorsements
listed on page 90.
Athlete Endorsements
Advantages
Buy if endorsed by
celebrities
Less likely to turn
off commercial with
celebrity
Tend to believe the
celebrities
Disadvantages
Very expensive
May not agree
to endorse only
1 product
Risk of negative
publicity
Should They Speak Out?
Dennis Rodman?
Controversial for all?
Is there a moral
obligation to speak
out on issues?
Tiger Woods and
Nike for worker
exploitation?
What To Look For?
Positive, charismatic, trustworthy
image, respected by consumers
Celebrity most consumers know
Celebrity whose career is in process
Presents few risks
Has a believable relationship with
product