Transcript Emergence of Sport Marketing

Emergence of
Sports Marketing
SS 330
Sport Marketing & Promotions
Dr. Brian Turner
Importance of Sports Marketing
• Without institutional support,
• In Division I-A …
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of football programs showed a profit
of men’s basketball programs showed a
profit
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of women’s basketball programs showed
a profit
Importance of Sports Marketing
• At Ohio State …
– Football
– Men’s Basketball
– Other 34 sports
*1999-2000 budget
Explosion of Sports
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Growth in sport consumption & investment
Value of professional teams
Expansion of hockey
Interest in women’s sports
Inclusion in mainstream media
Popularity in Hollywood
Expansion of sports programming
What is Sports Marketing?
“… the specific application of marketing
principles and processes to sport products
and to the marketing of non-sports products
through association with sport.”
“Sport marketing consists of all activities
designed to meet the needs and wants of
sport consumers through exchange
processes.”
Major Thrusts
Marketing Myopia
“… practice of defining a business in terms of
goods and services rather than in terms of
the benefits customers seek.”
Understanding the Sport Industry
• Sport - “… a source of diversion or a
physical activity engaged in for pleasure.”
• Relationship with the entertainment
industry
Uniqueness of Sport
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Sport Product
Sport Market
Sport Financing
Sport Promotion
Marketing Orientation
• Way of doing business where the
organization concentrates on understanding
the consumer and provides a sports product
that meets consumers’ needs (while still
achieving the organization’s objectives)
Structure of the Sports Industry
Consumers
Products
Producers/
Intermediaries
Consumers of Sport
• The Spectator
• The Participants
• The Sponsors
The Sports Product
“…a good, a service, or any combination of
the two that is designed to provide benefits
to a sports spectator, participant, or
sponsor”
Include:
• Sporting Events
• Sporting Goods
• Personal Training for Sports
• Sports Information
Producers/Intermediaries
Basic Marketing Principles &
Processes Applied to Sport
• Sports Marketing Mix
– “… coordinated set of elements that sports
organizations use to meet their marketing
objectives and satisfy consumers’ needs.”
– Basic Elements
Basic Marketing Principles &
Processes Applied to Sport
• Exchange Process
– Marketing transaction in which the buyer gives
something of value to the seller in return for
goods and services
• must be at least 2 parties
• each party must have something of value to offer the
other
• must be a means for communication between the 2
(or more) parties
• each party must be free to accept or decline the offer
• each party must feel that it is desirable to deal with
the other(s)
Basic Marketing Principles &
Processes Applied to Sport
Something of Value
Exchange
Players
Exchange
Players
Something of Value
Strategic Sports
Marketing Process
“… process of planning, implementing and
controlling marketing efforts to meet
organizational goals and satisfy consumers’
needs.”