Transcript Chapter 2 Marketing Basics

SPORTS AND ENTERTAINMENT MARKETING
CHAPTER
2
Marketing Basics
2.1 Marketing College Athletics
2.2 Economic Impact of College Athletics
2.3 Amateur Sports
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LESSON 2.1
SPORTS AND ENTERTAINMENT MARKETING
Marketing
College Athletics
GOALS
Explain the importance of the NCAA
and team rankings to college sports.
Define market segmentation.
Discuss the growing market surrounding
women’s college athletics.
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Effects of
Collegiate Sports
A winning team has economic
implications for school, community,
region, and state
Fan expectation
Promotion of organization’s goods and
services
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Rules and Rankings
National Collegiate Athletic
Association (NCAA)—the governing
body of most college and university
athletic programs
Creates and enforces guidelines and
rules
NCAA Corporate Partners
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Stated Purpose of NCAA
Core Purpose
Our purpose is to govern competition in a
fair, safe, equitable and sportsmanlike
manner, and to integrate intercollegiate
athletics into higher education so that the
educational experience of the studentathlete is paramount.
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Point to Ponder
Is the Bowl Championship Series Fair?
Is it a good way of determining the
National Champion in Football?
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BCS Specifics
 Among the new policies instituted for 2006
will be these:
 1. There will be five BCS games, rather than four.
So ten teams will participate in the BCS, rather
than eight. The fifth game will be new BCS
National Championship Game, to be in Glendale,
Arizona.
 2. The Fiesta Bowl committee will host two BCS
games: the traditional Fiesta Bowl on January 1,
and the BCS National Championship Game on
January 8.
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BCS Specifics-continued
 3. The Fiesta Bowl will move from its longtime home at
Arizona State University's Sun Devil Stadium to the new
stadium in Glendale. The Sugar Bowl will return home to
New Orleans.
 4. In addition to the champions of the six conferences that
have annual automatic access, one other conference
champion will earn an automatic BCS bid if (1) it finishes in
the top 12 in the BCS standings or if (2) it is finishes in the
top 16 in the BCS standings and its ranking is higher than
that of a conference champion that has an annual automatic
berth. Previously, such a champion was eligible if it finished
in the top six.
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BCS Specifics-concluded
 5. Notre Dame will automatically qualify for a BCS berth if it
finishes in the top eight in the BCS standings. Previously,
Notre Dame qualified if it (1) finished in the top six or (2)
either finished in the top ten or won nine or more games and
a team from Conference USA, the Mid-American
Conference, the Mountain West Conference, the Sun Belt
Conference or the Western Athletic Conference finished in
the top six of the BCS standings.
 6. A team is eligible to be considered for an at-large berth in
the BCS if it has won at least nine regular-season games
and finishes in the top 14 in the final BCS standings.
Previously, teams finishing in the top 12 were eligible.
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Another Point to Ponder
Is the NCAA Basketball Tournament
Fair with 64 teams? Is the selection
method fair?
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Four Conditions to Join NCAA
 Obtains acceditation by the recognized
accrediting agency of its region.
 Offers at least four intercollegiate sports for
men and four for women (one in each of the
three traditional seasons).
 Complies with all NCAA rules
 Cooperates with the NCAA enforcement
program and accepts penalties imposed by
that program.
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College Team Rankings
Why so much emphasis?
#1 has lingering effects
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Intermission
What is the purpose of the NCAA? Why
is a number one ranking lucrative?
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Market Segmentation
Market segment—a group of
individuals within a larger market that
share one or more characteristics
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Five Elements of
Market Segmentation
Geographic segmentation
Demographic segmentation
Psychographics
Product usage
Benefits derived
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Intermission
What is Market Segmentation? Give a
college sports example to each element
of the market segmentation.
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Women’s College Sports
NCAA
Women’s Enhancement Program
Increased fan support
Marketing opportunities in women’s
sports
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What is Title IX?
Title IX, the law protecting against
discrimination based on sex, states:
"No person in the United States shall, on
the basis of sex, be excluded from
participation in, be denied the benefits of,
or be subjected to discrimination under any
program or activity receiving Federal
financial assistance."
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Three Part Test – Title IX
"[T]he Department [of Education]
established a three-part test that OCR
will apply to determine whether an
institution is effectively accommodating
student athletic interests and abilities.
An institution is in compliance with the
three-part test if it has met any one of
the following three parts of the test:
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Three Part Test – Title IX
 (1) the percent of male and female athletes is
substantially proportionate to the percent of
male and female students enrolled at the
school; or
 (2) the school has a history and continuing
practice of expanding participation
opportunities for the underrepresented sex; or
 (3) the school is fully and effectively
accommodating the interests and abilities of
the underrepresented sex."
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LESSON 2.2
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Economic Impact
of College Athletics
GOALS
Understand the benefits of college
sports to the home community.
Identify benefits of sponsorship and
licensing to a team.
Explain the reasons for realignment of
college conferences.
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Benefits to the Community
Good for town business
Hotels
Restaurants
Retailers
Good for stadium business
Food/restaurants
Gift shops
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Sponsorships
and Licensing
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Sponsorships
Generating revenue
Name-brand apparel
Create goodwill
Licensing
License—the legal right to reproduce a
team’s logo in exchange for payment
Protect the use of the name and symbols
Identify and associate logos
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Conference Realignment
Conference—a group of college
athletic teams within the same region
Increase revenues
Create new rivalries
Playoff games generate additional
revenue
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LESSON 2.3
Amateur Sports
GOALS
Discuss marketing and sponsoring of
amateur sports.
Understand the economic benefits of
amateur sports.
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Popularity of
Amateur Sports
Amateur athlete—someone who does
not get paid but plays for enjoyment,
challenge, or both
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Marketing and Sponsoring
Amateur Sports
Provides significant income for
manufacturers
Minivan and sport utility vehicle
Retro sports jerseys
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Local Promotion
of Amateur Sports
Fund-raising charity events
High school athletic teams
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National Promotion
of Amateur Sports
Promotion used to elevate the attention
of consumers
Lance Armstrong and Subaru
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Economic Benefits
Minnesota’s example
Minnesota Amateur Sports Commission
Create economic development through
amateur sports
Create maximum opportunity for sport
participation
Establish Minnesota as a national model
for the Olympic and amateur sport
movement
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Economic Benefits
of Specific Sports
Ice skating
Soccer
Basketball
Baseball and softball
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Intermission
What kinds of products might be
advertised during ice skating and soccer
events?
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Think Critically
List three amateur sports, the target
markets for those sports, and marketing
strategies for each sports.
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Think Critically
Many families spend hours on
weekends watching children play
soccer. During the 1996 presidential
election year, the phrase “soccer moms”
became commonly used in political
conversations. What do you think this
phrase means? Why would someone
running for political office pay attention?
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