Transcript Chapter 02

Chapter 2
The Four Domains
of Sports Marketing
McGraw-Hill/Irwin
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
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One of Our Dilemmas
• No Uniform Definition of “Sport(s) Marketing”
• Thus, There Is No Agreement as to Exactly
What Constitutes a Sports Product
• There Is Agreement that the Discipline
Encompasses More than Putting Fans in
Seats at Spectator Sports Events
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Two Broad Domains
• As Noted in Chapter 1, there are two
broad domains (categories of initiatives)
germane to the discipline of sports
marketing:
– Marketing of Sports Products
– Marketing through Sports by Creating a
Sports Overlay (Platform)
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Important Statement
“attention to marketing tools is long overdue”
in the marketing of sports products.
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Products Germane to
Sports Marketing
• Sports Products
• Nonsports Products
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Sports Product - Category 1
• Spectator Sports (i.e. a football game)
– Live Audience
– Media-based Audience
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Sports Product - Category 2
• Participation Sports (i.e. golf)
– Attracting more Participants
– Getting Current Participants to Play More
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Sports Product – Category 3
• SASS
– Sporting Goods (Callaway Golf Clubs)
– Apparel (New Era Baseball Cap)
– Athletic Shoes (Air Jordan Shoes)
– Sports-related Products (Souvenir Program)
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Nonsports Products
• Goods & Services not directly related to a
sport
• Anything not Included as a Sports Product
such as cars, clothes, soft drinks, & razors
• Nonsports Products Are Often Sold by
Creating a Sports Overlay (or Platform)
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Level of Integration
• Traditional Strategies
• Sponsorship-based Strategies
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Traditional Strategies
• Employ the Basic Components of
Marketing Strategy
– Target Market Selection
– Corresponding Marketing Mix
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Price
Place
Product
Promotion
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Sponsorship-Based Strategies
• Employ an Official Sponsorship-based
Relationship with a Sports Entity
– Traditional Sponsorship
– Three Special Forms of Sponsorship
• Venue Naming Rights (Building Sponsorship)
• Endorsements (Personal or Personality Sponsorship
• Licensing (Right to Use Intellectual Properties)
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Basic Principles of Sports Marketing
(Details in Box 2.2)
• Broad Focus
– Marketing of Sports vs. Marketing of Sports
• Products
– Sports vs. Nonsports
• Level of Integration
– Traditional vs. Sponsorship Based Strategies
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The Sport Marketing Matrix
• Drop in Figure 2.1 from Page 35
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Mainstream Strategies
• Using a Traditional Strategy to Create a
Sports Overlay to Sell Nonsports Products
– Target Market – ad for Honda cars in Golf Digest
– Product – Clothing feature golf graphics
– Promotion – ad featuring golfers drinking Pepsi
– Distribution – Hard Rock Café at MLB Stadium
– Price – Discounts to Bar Patrons Wearing
Participation Sport Uniform
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Product-Focused Strategies
• Using Traditional Marketing Strategy to Sell
Sports Products
– Target Market – NBA Targeting Chinese Fans
– Product – New Titanium Golf Clubs
– Promotion – Newspaper ad regarding tickets
– Distribution – Broadcast Available on WWW
– Price – Bundling Tickets & Refreshments at a
Bargain Price
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Domain-Focused Strategies
• Using Sponsorship of a Sports Entity to Sell
Nonsports Products
– Traditional – Coca Cola and the Olympics
– Venue Naming Rights – Citi Bank & MLB Stadium
– Endorsement – Tiger Woods & Gatorade
– Licensing – Mattel & NASCAR
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Sports-Dominant Strategies
• Using Sports-Based Sponsorship to Sell
Sports Products (Least Common Domain)
– Traditional – adidas and FIFA (World Cup)
– Venue Naming Rights – Reebok Stadium
– Endorsement – Burton Boards & Shaun White
– Licensing – Nike & the New York Yankees
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“Sports Marketing”
…is the implementation of proactive
strategic initiatives designed to influence
potential buyers’ preferences for an array
of sports products or to otherwise create a
sports overlay in such a way so as to have
a positive impact on the sale of nonsports
products.
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Closing Capsule
• We have a comprehensive overview of the
sports marketing environment
• Using the type of product sold and the
level of sports integration, we have
identified the four domains of the discipline
• Best visualized with the 2 by 2 matrix
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Closing Capsule
• The Four Strategic Domains Are:
– Mainstream
– Product-Focused
– Domain-Focused
– Sports-Dominant
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Closing Capsule
• To Determine a Marketing Initiative’s
Location in the Sports Marketing
Environment Matrix, You Need to Answer
Two Questions:
– Is the product a sports product or not?
– Is there any indication that an official
sponsorship of a sports entity exists?
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Closing Capsule
• Chapter 3 Begins Our Examination of
Marketing through Sports
• Marketing of Sports Products Will Begin
with Chapter 13
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