Transcript Chapter 1 - NMSU College of Business

Chapter 21
The Role of Technology
in Sports Marketing
McGraw-Hill/Irwin
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©2007 The McGraw-Hill Companies, All Rights Reserved
Technology –
The Internet and Beyond
• Technology Has Impacted Virtually Every
Aspect of Every Organization
• Sport Is No Different in this Regard
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Foundation for the Internet:
Five Key Questions
• Why?
• Who?
• What?
• Where?
• How?
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Why?
• Will It Enhance Marketer’s Image?
• Will It Augment Other Strategic Initiatives?
• Will It Result in Increased Demand?
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Who?
• Who Will Utilize the Site?
• Is It Open to Everyone?
• Will It Target Adults or Kids – or Both?
• What Other web Sites Will be Linked to It?
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What?
• What Is the Site’s Core Purpose?
• How Will It Impact the Target Market?
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Where?
• Where Will Users Gain Access to the Site?
• Where Will Site be Developed and
Maintained?
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How?
• How Will Users Receive the Information?
• How Will the Site be Developed?
• How Will the Site be Evaluated?
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Types of Sites in Sports Marketing
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Content Sites
• Large Information Base
• Often Extensions of Traditional Media
– General Publication: New York Times
– Sports Oriented Publication: Sporting News
– General Broadcast Media: ABC TV
– Sports Broadcast Media: ESPN
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Team or League Sites
• Also Includes Sports Organization Sites
• Wide Range of Organizations from Local
Recreational Bowling League, to an NHL
Team, to the NBA, to FIFA.
• Information on Players, Awards, Results,
Schedules, and Merchandise Sales, etc.
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Commerce Sites
• Virtual Storefront
• Often Sell Officially Licensed Merchandise
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Gambling Sites
• Not Generally Embraced as Sports Sites
• High Growth Rate
• Provide Information as Well as Wagering
• Generally Require Some Sort of
“Membership” or Registration
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Revenue Models – Content Sites
• Online Advertising or Sponsorship
– Banner Ads
– Ad Badges
• Subscription Fees
– Subscribers Can Drill Deeper for Content
• E-Commerce
– Products Available for Purchase
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Advertising Fees
• Bases for Rates Charged to Advertisers
– CPM
• Cost Per 1000 Visitors to Web Site
– Click-through
• Fee Charged for Each Visitor Who “Clicks through”
to Link to the Advertiser’s Web Site
– Flat Rate
• Fixed Sum for the Advertiser
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Revenue Models –
Team & League Sites
• Online Advertising or Sponsorship
• Subscription Fees
• E-Commerce
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Revenue Models –
Commerce Sites
• Sales Revenue
• Commissions
• Online Advertising or Sponsorship
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Revenue Models –
Gambling Sites
• Wagers
• Subscriptions
• Online Advertising
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Communications Objectives for
Sports Marketing Web Sites
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Web-Based Objectives
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Provide Information
• Information 24/7
• No Geographic Limitations
• Can Drill Deeper than Traditional Media
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Provide Information
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Information-Based Web Sites
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Facilitate Distribution
• Virtual Box Office
• Ticket Sales and Exchanges for Season
Ticket Holders
• Audio and Video Streaming
– Live Action
– Replays of Past Action (Video-on-Demand)
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Enhance Customer
Relationship Management
• One-Way Communication
• Interactive Communication
• One-to-One Marketing (Customization)
• E-mail Domain ([email protected])
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Relationship Marketing: Australia’s
National Basketball League
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Facilitate Operations
• Marketing Research – Data Collection
• Account Management – Order Extra Tickets
• Database Management – Contest Information
• Interoffice Communications – Among Offices
• Participant Registration – Boston Marathon
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Technology Beyond the Internet
• Mobile Technology
– Customized Content
– Information Service
– Audio and Video Highlights
• Virtual Imaging
– Home Plate Application in MLB
– First Down Marker in Football
– Cricket – Leg-before-Wicket Call by Umpire
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Technology Beyond the Internet
• Electronic Funds Transfer Technology
– Smart Cards
– Powerpay (RFID Technology)
• Interactive TV
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Technology Beyond the Internet
• WiFi Stations
– Wireless Access
– Fans, Media Who Have Laptop Computers
– Some Premium Seats May Include Monitors
• Global Positioning Systems
– Golf Courses – Information for Players
– Participants – Runners, Cross Country Skiers
• Boston Marathon Facilitated Tracking of Runners
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Closing Capsule
• Technology Has Had a Dramatic Impact
on Marketers in Every Industry
• The Internet and the WWW Have Ushered
in Dramatic Changes for Sports Marketers
• Other Technology Beyond the WWW Has
also Played a Role
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Closing Capsule
• Virtually Every Sports Marketer Today Has
Its Own Web Site
• There Are Content Sites, Team & League
Sites, Commerce Sites, and Gambling
Sites
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Closing Capsule
• Web Sites Can Provide a Revenue Stream
– Advertising and Sponsorship
– Subscription Fees
– E-Commerce
• Other Sources, Depending on the Type of
Web Site, Are Available
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Closing Capsule
• The Most Common Applications for a
Sports Marketer’s Web Site Are:
– Provide Information
– Facilitate Distribution
– Enhance Customer Relationships
– Facilitate Routine Operations
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Closing Capsule
• Other Technology Beyond Internet:
– Mobile Technology
– Virtual Imaging
– EFT
– Interactive TV
– WiFi
– GPS
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