Transcript Examples of Sports Marketing

Unit 4 – Marketing Applications
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© 2010 by Sports Career Consulting, LLC
UNIT 4 OBJECTIVES
Marketing
1) Explain the marketing concept
Applications
2) Identify the components of the
marketing mix
3) Understand the target market
4) Identify the five bases of segmentation
5) Illustrate the concept of positioning
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UNIT 4 OBJECTIVES
Marketing
Applications
6) Differentiate between customer and
consumer
7) Explain the importance of market
research
8) Identify specific forms of advertising
and explain why businesses choose to
advertise
9) Understand the concept of digital
marketing
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Lesson 4.1 –
The Basic Marketing Concept
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Marketing Applications
UNIT 4
The Marketing Concept
The Marketing Concept
A philosophy that a company’s success is
ultimately dependent upon efficient
identification of consumer needs and wants
and the ability to satisfy them
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Marketing Applications
UNIT 4
The Marketing Concept
Why Is Marketing Important?
 Financial success is a direct result of an
organization’s ability to effectively market its
products and services
 A business achieves profitability when they offer
the goods and services that customers need and
want at the right price
 Marketers strive to identify and understand all
factors that influence consumer buying decisions
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Marketing Applications
UNIT 4
Needs vs. Wants
A need is something
you have to have and
that you cannot do
without
For example, we need
food. Without eating,
we cannot survive!
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A want is simply
something you would
like to have
You might want a
Nintendo Wii or tickets
to an upcoming game,
but you can survive
without them
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Marketing Applications
UNIT 4
The Exchange Process
 Must be at least two
parties involved in
process
 Some means of
communication must be
present between all
parties
 Each party must be free
to accept or decline offer
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Exchange Process:
Marketing transaction
in which the buyer
provides something of
value to the seller in
return for goods and
services that meet that
buyer’s needs or wants
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Marketing Applications
UNIT 4
Benefits of Marketing
The marketing process serves many purposes and
provides numerous benefits for the consumer
 The ability to add perceived value to goods and
services
 Making the buying process easy and convenient for
consumers
 Creating and maintaining reasonable prices
 Offering a variety of goods and services
 Increasing production
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Lesson 4.2 –
The Marketing Mix
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Marketing Applications
UNIT 4
The Marketing Mix:
The Marketing Mix:
Consists of variables
controlled by marketing
professionals in an
effort to satisfy the
target market
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Marketing Applications
UNIT 4
The Marketing Mix
Product
Involves the goods, services, or ideas
used to satisfy consumer needs
Price
Determined by what customers are
willing to pay and production costs
Place
Involves the process of making the
product available to the customer
Promotion
Involve how the goods or services
are communicated to the consumer
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Marketing Applications
UNIT 4
Discussion Topic
How might the marketing mix apply to
Wilson Sporting Good’s efforts to
maximize sales of tennis racquets?
Lesson 4.3 –
Target Markets
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Marketing Applications
UNIT 4
Target Markets
A target market refers
to people with a defining
set of characteristics
that set them apart as a
group
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Marketing Applications
UNIT 4
Target Markets Must Be:
Sizeable:
The overall size of the market
Reachable:
Ability for marketers to reach consumers
Measurable: Ability to measure size, accessibility and
overall purchasing power of the target market
Behavioral: Marketers seek to find similar behaviors
within each respective target market
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Marketing Applications
UNIT 4
The Marketing Concept
Target Market Influences
 Diversity of consumer needs and wants
 Organization size
 Attributes of company products and/or services
 Size and strength of competitors
 Sales volume required for profitability
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Marketing Applications
UNIT 4
Niche Marketing
Niche Marketing:
Niche Marketing offers
a unique opportunity
to consumers or one
that has not been
offered in the past
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Process of carving out
a relatively tiny part of
a market that has a
very special need not
currently being filled
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Marketing Applications
UNIT 4
Niche Marketing
Cable television channels often seek niche
audiences to appeal to specific target
groups with a common set of interests,
such as ESPN designing programming to
appeal to sports fans
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Marketing Applications
UNIT 4
Niche Marketing - Discussion
Magazines seek niche
audiences to appeal to a
specific target group that
has a common set of
interests, such as Sports
Illustrated launching a
sports-specific magazine
to appeal to sports fans
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Marketing Applications
UNIT 4
Niche Marketing - Discussion
When a business sees a competitor
enjoying success with a particular
niche, often times the market can
become flooded with other companies
exploiting the same niche or another
similar niche.
How has that affected Sports
Illustrated since it first launched
the magazine in 1954?
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Marketing Applications
UNIT 4
Niche Marketing - Discussion
Has the niche audience of sports
fans spawned additional niche
opportunities for Sports
Illustrated?
Offer specific examples to support
your answers.
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Marketing Applications
UNIT 4
Niche Marketing - Discussion
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UNIT 4
Niche Marketing
Lululemon Athletica is a
Canadian retailer that
distributes product in
Canada and the United
States. The company
targets its branded yoga
and fitness apparel to a
niche consumer of
female athletes.
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Marketing Applications
UNIT 4
Niche Marketing
Sports Illustrated captured a
lucrative niche market with the
annual Swimsuit Issue. What
started in 1964 as a five page
supplement in February has
grown into a multi-billion dollar
specialty issue which has
impact in fashion, travel,
product placement and many
additional marketing tie-ins.
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UNIT 4
Niche Marketing
In 2009, over $45.5 billion was spent on pets according
to an American Pet Products Association survey. In
2010, Disney announced plans to open the Best Friends
Pet Resort, a 50,000 square foot (half of it outdoors)
posh facility that will features a not only boarding but
also bedtime stories and a water park for dogs.
Disney is counting on the pet boarding niche to help
them carve out a lucrative slice of revenue from the
booming pet industry market.
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Lesson 4.4 –
Market Segmentation
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Marketing Applications
UNIT 4
Market Segmentation the process of
identifying groups of consumers based
on their common needs
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Marketing Applications
UNIT 4
Market Segmentation
Helps Companies To:
 Understand consumer groups
 Determine target markets
 Develop positioning strategies
 Customize products and marketing strategies
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Marketing Applications
UNIT 4
Five Bases for Market Segmentation
1) Demographic
2) Product
3) Psychographic
4) Benefits
5) Geographic
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UNIT 4
Demographic
Psychographic
Geographic
CONSUMER
Benefits
Product
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UNIT 4
Five Bases for Market Segmentation
 Age
Demographic
Segmentation:
 Income
 Occupation
 Gender
Focuses on information
that can be measured
 Education
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UNIT 4
Demographic Segmentation
The 8-13 age group (often referred to as the “tween”
market) has provided a powerful demographic for
entertainment products for a long time. When pop
superstars like Hannah Montana get older, a new pop
sensation rises to meet the demand for a new tween idol
that appeals to this demographic.
Justin Beiber certainly appears poised to fill that role as
the 16 year old’s popularity is reaching new heights as
evidenced by the 4 million people following him on
Twitter, his 8 million friends on Facebook and the nearly
250 million views of his music video on YouTube.
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UNIT 4
Demographic Segmentation
Since 2000, the number of NASCAR fans earning
$100,000 or more has doubled from 7% to 16% of
its fan base, and those with incomes of $50,000 or
more has risen from 35% to 48%
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UNIT 4
Demographic Segmentation
According to a study released in August of 2010
from the Cable & Telecommunications Association
for Marketing, 65% of American homes reported
owning an HDTV
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UNIT 4
Demographic Segmentation
In 2009, Scarborough Research released
demographic figures relating to fans of the
IndyCar, suggesting 29% of the fan base were
“blue collar”, while 37% were “white collar”
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UNIT 4
Demographic Segmentation
The Twilight film franchise has created an unusual
gender-based demographic. While the primary
market is female, the surprise is that the films have
appealed to a wide swath of ages in the gender.
Overall, 95% of the audience is female, and 45%
were 25 or older-which means that a film with
teenage characters is almost as popular with adult
females as with teens and tweens. In marketing
terms, this is a huge success in having the product
traverse all ages of the gender being targeted.
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UNIT 4
Demographic Segmentation
Triple A baseball posts its demographic information
online for prospective sponsors to review
 40% of the fan base earns $46-75k per year
 42% of the fan base has an Undergraduate Degree
 91% of the fan base has a major credit card
 69% of the fan base owns their own home
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UNIT 4
Five Bases for Market Segmentation
Product Usage
Segmentation:
 Sports season
ticket holders
 Theatre group
ticket coordinators
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Reflects what products
consumers use, how often
they use them, and why
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UNIT 4
Five Bases for Market Segmentation
 Sports Fans
Psychographic
Segmentation:
 Music Lovers
 Individuals who
enjoy attending
live events
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Grouping consumers based
on personality traits and
lifestyle
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UNIT 4
Five Bases for Market Segmentation
Season ticket holders
enjoy additional “perks”
such as exclusive
invitations to pre-game
chalk talks with the team’s
coaches
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Benefits
Segmentation:
Refers to a perceived
value consumers
receive from the
product or service
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Marketing Applications
UNIT 4
Five Bases for Market Segmentation
 North, South, East and
West Regions of the
United States
 Urban and Rural areas
of a particular state
Geographic
Segmentation:
Dividing of markets into
physical locations
Important to Sports Marketers Because:
Sports consumers are characteristically loyal to
particular regions when making buying decisions
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UNIT 4
Selecting multiple segments
Because many segments may be valid in
helping marketers make decisions,
marketers often choose to use several
segments
Ultimately, a decision is made based on
what best fits the organization’s target
market
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Lesson 4.5 –
Positioning
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Marketing Applications
UNIT 4
Positioning
 Fixing company products
in the Minds of Consumers
 All about “perception”
 Relative to competitor
products
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Positioning:
The fixing your sports
or entertainment
entity in the minds of
consumers in the
target market
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UNIT 4
Positioning
Positioning is important to all sports and
entertainment products
Sports leagues (NFL vs.
Arena Football League)
Sports teams (The Los Angeles Lakers in
the 1980’s as “Showtime”)
Sporting goods (Under Armour as
comfortable performance apparel)
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UNIT 4
Positioning
Positioning is important to all sports and
entertainment products
Sports drinks (Gatorade as a
performance beverage)
Movie studios (Pixar as a leader in
animated films)
Entertainers (Sylvester Stallone,
Arnold Schwarzenegger and Bruce
Willis and as iconic action film stars)
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UNIT 4
Positioning
Positioning is important to all sports and
entertainment products
Entertainment products
(DVD vs. Blu-Ray)
Facilities and venues
(Premium seating vs.
general seating)
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UNIT 4
Positioning
Positioning is About Perception
Nintendo effectively positioned Wii as more userfriendly and interactive than its competitors
(Xbox, Playstation 3) and has been perceived as
not only the “in” product by consumers but also
a healthier alternative to traditional video games
from a fitness perspective
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UNIT 4
Positioning
Positioning is About Perception
Overall worldwide sales of video game consoles in
as of April 2010:
Nintendo Wii
71 million
Microsoft X-Box 360
40 million
Sony Playstation 3
36 million
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UNIT 4
Positioning
As of May 2010, Nintendo sold 1.1 million copies of the
game Wii Sports Resort worldwide, helped in large part
by bundling it with a new “MotionPlus” accessory
(designed to improve the precision of the interactive
controllers) while the American Heart Association (AHA)
endorsed the Wii to encourage sedentary people to
take the first step toward fitness (the AHA heart logo
adorns the console itself along with two of its more
active games, Wii Fit Plus and Wii Sports Resort
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Positioning
Wheaties cereal has positioned itself as a brand
affiliated with athletic performance and its
slogan, “the breakfast of champions”, has
remained since the brand’s introduction in 1924
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UNIT 4
Positioning
With sales declining (the NY Times reported
market share had slipped by nearly 14% in
2009), General Mills (parent company of the
Wheaties brand) introduced a new spin off
product aimed to take advantage of
consumer perceptions of the Wheaties
brand. General Mills developed three
formulations of the cereal (dubbed Wheaties
Fuel) with the help of a sports nutritionist
and five world class athletes: the NFL's
Peyton Manning, the NBA's Kevin Garnett,
gold medal-winning decathlete Bryan Clay,
the MLB's Albert Pujols, and triathlete
Hunter Kemper.
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UNIT 4
High (variable one)
Positioning Map:
Product B
Product A
High (variable two)
Low (variable two)
Product D
Products or services are
grouped together on a
positioning map
where they are compared
and contrasted in relation
to one another
Product C
Low (variable one)
http://www.marketingteacher.com/Lessons/lesson_positioning.htm
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UNIT 4
Positioning
Under Armour, maker of
sports performance apparel,
introduced a new product (a
two piece body “suit”) to
consumers in the summer of
2009; a product that Under
Armour has positioned as a
unique product (dubbed
“recovery wear”) not being
offered by competitors
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UNIT 4
Positioning Discussion
How might a sports and entertainment
marketing company utilize a positioning
map to help determine a ticket sales
strategy?
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UNIT 4
Ticket Sales
Positioning
Map
High Price
Luxury suite
at an NFL
game
Lower level seats
for Disney on Ice
Client Entertaining
Family Fun
Club seats at
an NBA game
“Cheap Seats” at a minor
league baseball game
Night at the
movies
Low Price
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UNIT 4
High Price
Courtside
Seats
Lower Level
End Zones
Lower Level Seats
Upper Level Seats
Mid/Upper Level
Sidelines
Top Row Corners
Low Price
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UNIT 4
Positioning Strategy
Identify all possible competitive advantages
1) Products, services, channels, people or image
can be sources of differentiation
2) Organizations often position their
products relative to competitor
Weaknesses (5-hour energy)
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UNIT 4
Positioning Strategy
Choose the right competitive advantage
1) How many differences to promote?
2) Unique selling proposition
(5-hour energy)
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UNIT 4
Positioning
5-hour Energy Drink focuses on
its small packaging size and
claims to provide a long lasting
energy boost without the “usual
jitters associated with energy
drinks.” These purported features
are intended to provide the
competitive advantage necessary
for distinguishing this energy
drink from the many competitors
on the market.
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UNIT 4
Positioning Strategy
Positioning errors to avoid
1) Which differences to promote?
2) Are the differences legitimate?
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UNIT 4
Positioning
VitaminWater advertises a certain
healthy advantage to drinking their
products. In 2009, Coca-Cola
(parent company of the Vitamin
Water brand) was sued by the
Center for Science in the Public
Interest over alleged deceptive
marketing practices. Those
practices include using buzzwords
like “triple antioxidants” on the
product’s packaging.
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UNIT 4
Product Differentiation
Product
Differentiation:
Consider the PowerBar
energy bar introductory
strategy for differentiating
its product
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Refers to a positioning
strategy that some
firms use to
distinguish their
products from those
of competitors
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UNIT 4
Power Bar has enjoyed success because it has clearly
differentiated its product from traditional candy bars
It has positioned itself in the minds of consumers as a
nutritional supplement that enhances athletic
performance and as an energy booster
At the time of PowerBar’s introduction to the market,
carbo-loading meals were common and popular
practice among athletes. PowerBar’s success has
influenced a shift in that trend.
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UNIT 4
Re-Positioning
A private golf course
may be suffering
slumping membership
sales.
Management may
choose to open up the
course to the public,
which will ultimately
require a well planned
re-positioning strategy
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Re-Positioning:
A marketer’s plan for
changing consumers’
perceptions of a
brand in comparison
to competing brands
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UNIT 4
Re-Positioning
 Re-positioning involves identifying who the new
target market is and a strategy for creating awareness
and demand within that market
 Part of the re-positioning effort in this case would
require sending a message to the target market that
the club is affordable by public standards
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UNIT 4
Re-Positioning
Slogan might be “Enjoy the benefits of a
private club at public course rates!”
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Lesson 4.6 –
Understanding the Sports &
Entertainment Consumer
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Marketing Applications
UNIT 4
Customer vs. Consumer
The customer is the individual who
buys the product or service
For example, Frito Lay may choose to purchase four
club seats at Jacobs Field in Cleveland for their sales
staff to entertain clients at Major League Baseball
games.
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UNIT 4
Customer vs. Consumer
The consumer is the individual who
uses the product or service
Frito Lay is the customer while their staff
members and their clients are the consumers.
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UNIT 4
Customer vs. Consumer
The customer can also be the consumer:
If John Smith buys four tickets to take his
family to see the Yankees play the Red Sox,
he is the customer because he bought the
tickets. Because he used the tickets with his
family, he is also the consumer.
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Marketing Applications
UNIT 4
The Sports and Entertainment Consumer

Marketers sell sports and
entertainment participation

They target consumers with free
time, discretionary income and a
desire to be entertained
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UNIT 4
Sports Consumers
Could Also Include:

Manufacturers

Resellers

Sports Governing
Bodies

Institutions

Media Sports
Enterprises
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Sports
Consumers:
People who may
play, officiate,
watch, or listen to
sports, or read, use,
purchase, and/or
collect items related
to sports
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Sports Consumers
Sports consumer participation
in exchange process
Spectators as Consumers
 Benefit by watching the event or game
 Exchange for tickets and entertainment
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UNIT 4
Sports Consumers
Sports consumer participation
in exchange process
Participants as Consumers
 Benefit by playing, competing or
participating in the event
 Exchange for equipment and/or
participation
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Lesson 4.7 –
Market Research
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Marketing Applications
UNIT 4
Market Research
 Creates an opportunity for
companies to get to know
their customers
 Provides relevant
information needed or solves a
problem to inform decision in
the sport business
 Enhances the body of
knowledge in sport marketing
as a field of study
Copyright
Market research:
The process of
systematically
collecting, recording,
analyzing, and
presenting data
related to marketing
goods and services
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UNIT 4
Market Research
Marketing research gathers information on:
 Consumers
 Competition
 Company
 Culture/climate
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UNIT 4
Market Research
This information is then used to:
 Form links between consumers & company
 Identify and define marketing
opportunities, problems, strengths & threats
 Generate, refine, evaluate and monitor
marketing activities
 Analyze and understand the company, its
industry and its competition
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UNIT 4
Market Research
Steps in the Research Process
1)
Identify the problem, concern or additional
desired information to be gathered
2)
Select and design research
3)
Report and analyze
4)
Communicate results of research
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UNIT 4
Market Research
In 2010, the Green Bay Packers held several focus
groups with select season ticket holders to discuss
new seating ideas for a possible Lambeau Field
expansion.
According to an article featured in the Green Bay Post
Gazette, focus groups and surveys are an annual part
of the Packers’ effort to meet fan expectations and
better the game day experience.
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UNIT 4
Market Research
 Surveys
Primary research:
 Direct Mail
The original research
conducted for a
specific marketing
situation
 Telephone
 Interviews
 Focus Groups
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Market Research
 Census Reports
 Demographic Analyses
Secondary research:
Published data that
have been collected
for some other
purpose
 Trade Associations
 State Agencies
 Commercial Research Firms
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UNIT 4
Market Research
Sample:
Census:
A method used for
accumulating
statistical information
that is only obtained
from a subset of a
population
A method used for
obtaining statistical
information that
counts every member
of a population
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UNIT 4
Market Research
With the 2010 Census results
expected to show an increase in
the U.S. Hispanic population,
Soccer United Marketing
officials also expect to see an
increase in the future costs
associated with sponsorship of
the Mexican national team
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UNIT 4
Market Research
Quantitative Research
Data:
Generally gathered in the
form of focus groups
(groups of six to ten
respondents who carry
on a group discussion
which is led by a trained
moderator) or in-depth
one-on-one or two-onone interviews
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Qualitative Research
Data:
Typically involves large
numbers of respondents,
typically 100 or more,
and yields results that
are representative of the
total population
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UNIT 4
Market Research
According to a 2008 Nielsen study, gross
sales increased by more than 65% for
films exhibited in 3-D (versus traditional
film only) as a result of higher prices and
increased attendance
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UNIT 4
Market Research
According to slashfilm.com,
at least 5,000 3-D systems
were expected to be in
place by 2009 while
DreamWorks Animation’s
Jeffrey Katzenberg
reportedly expects there to
be 12 to 18 3D feature films
by 2010
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UNIT 4
In 2009, the first-ever 3-D advertisement debuted on
U.S. movie screens, for Skittles candy from Wrigley,
and was scheduled to run in the 10 biggest U.S.
markets for five weeks on 762 new, speciallyconverted 3-D screens
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UNIT 4
In 2009, ESPN announced plans to offer a limited
screening of the highly anticipated matchup between
USC and Ohio State University in 3D during the 2009
college football season. The announcement came
after more than two years of testing and research.
“The results of this research will enable ESPN to
quantify what it takes to produce, transmit and
enable the 3D experience for our fans," Anthony
Bailey, vice president of emerging technologies for
ESPN, said in a statement.
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Marketing Applications
UNIT 4
Additional market research applications explore many
additional topics in sports and entertainment
 Sport participation
 Violence in sports
 Advertising
 Media outlets
 Viewer and listener ratings
 Financing
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Lesson 4.8 –
Advertising
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Marketing Applications
UNIT 4
Advertising
 TV Commercials
Advertising:
 Print Advertisements
Any paid, nonpersonal form of
communication by an
identified company
promoting goods and
services.
 Direct Mail
 Internet (banner
advertising, “pop up”
ads)
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© 2010 by Sports Career Consulting, LLC
Marketing Applications
UNIT 4
Why Advertise?
 Effective communication
 Create awareness
 Create / Change image
 Associate a brand with feelings and emotion
 Precipitate behavior
 Establish / Maintain goodwill
 Assist in the increase in sales
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© 2010 by Sports Career Consulting, LLC
Marketing Applications
UNIT 4
Types of Advertising
Print Media:
Any written form of communication used to
inform, persuade, or remind consumers about
products or services offered
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© 2010 by Sports Career Consulting, LLC
Marketing Applications
UNIT 4
Types of Advertising
Outdoor Advertising:
 Includes any outdoor
signs and billboards
 Offers a high level
of visibility
 Provides 24-hour
advertising
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Marketing Applications
UNIT 4
Outdoor Advertising
The elevator doors in the Rose Garden parking
garage (home to the NBA’s Portland Trail Blazers)
feature an advertisement for Cricket which
prominently features Blazers star, Greg Oden
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Marketing Applications
UNIT 4
Outdoor Advertising
In 2009, the Chicago
White Sox implemented
an outdoor campaign
that also provided great
brand extension by
creating “scoreboard”
billboards, providing fans
with score updates as
they drove around
Chicago’s congested
traffic areas
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© 2010 by Sports Career Consulting, LLC
Marketing Applications
UNIT 4
Types of Advertising
Mass Transit Advertising:
Uses public transportation, such as buses,
bus stands, taxicabs, and subways to post
advertising messages
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© 2010 by Sports Career Consulting, LLC
Marketing Applications
UNIT 4
Types of Advertising
Broadcast Media:
Any visual and/or auditory form of communication
used to inform, persuade, or remind consumers
about goods or services offered
Copyright
© 2010 by Sports Career Consulting, LLC
Marketing Applications
UNIT 4
Types of Advertising
Radio Advertising:
Advertisers match their target market to a
radio station that segments a particular
market
* Has the ability to reach a wide audience
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© 2010 by Sports Career Consulting, LLC
Marketing Applications
UNIT 4
Types of Advertising
Television Advertising:
Includes commercials and infomercials
Is typically the most effective type of broadcast
media
Is traditionally the most expensive form of
broadcast media
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© 2010 by Sports Career Consulting, LLC
Marketing Applications
UNIT 4
Types of Advertising
Online Media:
Placement of advertising messages on the
Internet World Wide Web
Fastest growing advertising segment in the world
The Internet was the ONLY medium
expected to see an increase in
advertising spending during 2009
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© 2010 by Sports Career Consulting, LLC
Marketing Applications
UNIT 4
Types of Advertising
“Specialty” Media (or Promotional Products):
Includes “everyday” items displaying a company
name or logo
Examples include lanyards, calendars, pens, magnets,
and coffee mugs
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© 2010 by Sports Career Consulting, LLC
Marketing Applications
UNIT 4
Types of Advertising
Additional Forms of “Creative” Media:
Marketers often use many other creative ways of
communicating advertising messages to consumers
Examples include: blimps (and other forms of aerial
advertising, supermarket carts/bags, hotair balloons,
and in-theater advertisements
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Marketing Applications
UNIT 4
In 2009, Horizon Air took aerial advertising a step
further when they unveiled plans to honor four of the
largest in the Pacific Northwest by painting four jets
in university colors and marks. The special themed
planes were created for Oregon State University,
University of Oregon, University of Washington and
Washington State University - at no cost to the
universities.
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© 2010 by Sports Career Consulting, LLC
Marketing Applications
UNIT 4
In the summer of 2010, AirTrain also unveiled a
custom airplane to celebrate the 40th anniversary
of the Milwaukee Brewers in their first partnership
with a MLB franchise
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© 2010 by Sports Career Consulting, LLC
Marketing Applications
UNIT 4
Advertising Mediums used in SEM
Signage
Printed media displayed for promotional purposes in
sporting venues
Endorsements
Contracting a well-known celebrity athlete who uses
his or her fame to help a company sell or enhance
the image of the company, products, or brands”
Print Media
Includes posters, game/event programs, point-ofpurchase promotions and direct mail pieces
Broadcast Media
Includes radio, television, scoreboards and pubic
address (p.a.) systems
Internet
Provides a unique promotional opportunity for
advertisers
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Marketing Applications
UNIT 4
Advertising Agencies
Nike contracts the
Wieden & Kennedy
agency to manage
and oversee some of
their advertising
campaigns
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Advertising
Agency:
An organization that
decides on and
implements an
advertising strategy
for a customer
© 2010 by Sports Career Consulting, LLC
Marketing Applications
UNIT 4
Advertising Agencies
Wieden + Kennedy was behind the “MVP Puppets” ad
spots featuring the likenesses of Kobe Bryant and
LeBron James which launched during the 2009 NBA
Playoffs
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© 2010 by Sports Career Consulting, LLC
Marketing Applications
UNIT 4
Advertising Agencies
Fearing that a strike by writers and actors against
Hollywood studios would damage the Los Angeles
economy, Mayor Richard Riordan waged a city-funded
public relations blitz aimed at pressuring both sides
into settling. Mayor Riordan contracted Edelman
Public Relations Worldwide, a PR agency, to manage
the campaign.
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Marketing Applications
UNIT 4
Why an Agency?
 Expertise
 Time constraints
 Time constraints
 “Fresh” perspectives
 Access to athletes, celebrities,
entertainers?
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Marketing Applications
UNIT 4
Considerations for Agency Selection

Does the agency have a solid
marketing plan in place?

Does the agency have comprehensive
marketing skills?

Can the agency determine target
markets and a means to reach them?

Does the agency view itself as a
partner of the hiring organization?
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Marketing Applications
UNIT 4
Considerations for Agency Selection

Does the agency have a track record
of success?

Has the agency worked with others in
your industry?
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Marketing Applications
UNIT 4
Additional Considerations

Comfort level with the representative
that will be handling the account

Making sure all written copy is
customer centered

Selection of an agency that views
itself as a partner of the organization
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Marketing Applications
UNIT 4
Agency Extension
Creative use of in house advertising capability
 The Red Sox, as a way to generate additional
revenue, leveraged relationships in the industry and
throughout the community and created a spin-off
agency, the Fenway Sports Group
 FSG was so successful that they were profitable in
their first year and their client base included
NASCAR, Boston College, and even the rival New
York Yankees
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© 2010 by Sports Career Consulting, LLC
Lesson 4.9 –
Digital Marketing
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© 2010 by Sports Career Consulting, LLC
Marketing Applications
UNIT 4
Digital Marketing
What is Digital Marketing?
Today’s consumer is more cognizant of
the marketing messages all around them,
leaving them more likely to tune out
advertisements or other forms of
marketing communication
Copyright
© 2010 by Sports Career Consulting, LLC
Marketing Applications
UNIT 4
Digital Marketing
What is Digital Marketing?
 In the “golden age” of television, an ad on one of
the big three networks could reach 70 percent of
the viewing audience
 According to Seth Godin (author of Permission
Marketing) today’s consumer receives roughly one
million marketing messages a year on average
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Marketing Applications
UNIT 4
Digital Marketing
Overwhelmed consumers are becoming
adept at tuning out marketing messages
 E-mail filters to block spam
 Digital video recorders (DVRs) to skip commercials
 Caller ID to screen telemarketers
 Recycling direct mail pieces without opening them
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Marketing Applications
UNIT 4
Digital Marketing
Business and marketing professionals
refer to this saturation as “clutter”
 Clutter is a major problem for today’s marketer
 The cost of selling has almost tripled over the past
decade
 Today’s consumer has a broken trust with traditional
marketing means (broadcast media, print media etc.)
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Marketing Applications
UNIT 4
Digital Marketing
How does clutter impact marketers?
 Marketers today must determine ways to effectively
cut through the clutter if the firms they represent
are to financially thrive
 Marketers in the digital marketing era must become
more creative and free thinking in their approach to
promoting company products and services
 Sports, entertainment and event marketing provide
an effective means for cutting through today’s
marketing clutter
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Marketing Applications
UNIT 4
Digital Marketing
The National Basketball Association is
working with TiVo to evaluate just how
DVR-proof televised basketball really is.
The DVR pioneer has inked a deal with the
NBA for ratings and interactive ad services.
Under the agreement, TiVo will provide the
league with a comprehensive audience
measurement reports evaluating the entire
2008-09 NBA season as viewed by TiVo
subscribers.
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Marketing Applications
UNIT 4
Digital Marketing Strategies
How are marketers adjusting?
Digital marketers turn to technology to help
reach target consumers
 Internet marketing
 Mobile marketing
 Social marketing
 Viral marketing
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Marketing Applications
UNIT 4
Digital Marketing Strategies
How are marketers adjusting?
The goal for digital marketers is to focus on
interactive elements, encouraging consumers to
participate in the marketing process
U.S. interactive marketing spending will reach $55
billion by 2014, making up 21% of all marketing
spending, according to a report issued by Forrester
Research
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Marketing Applications
UNIT 4
Interactive Strategies
There are nine different singing billboards throughout
Kentucky, each featuring one line of the University of
Kentucky fight song. When fans pass one of the
unique billboards, they are encouraged to tune the
radio to a specific station to hear the UK fight song in
its entirity. Also, fans that submit pictures of all nine
billboards are entered to win free tickets and other
prizes. The school also tied the campaign to a
special website at (ukfightsong.com), which includes
audio, video clips, information on the contest and
social networking integration with Twitter, Facebook
and YouTube.
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Marketing Applications
UNIT 4
Interactive Strategies
EA Sports is seeing significant changes in the way
people are playing their FIFA 10 soccer video game.
On any given day, a reported 750,000 Americans
compete online, an indication of the changing
landscape in the way consumers choose to interact
with media.
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Marketing Applications
UNIT 4
Interactive Strategies
The Coca-Cola Company celebrated the lead up to
the 2010 FIFA World Cup by encouraging people
around the world to take part in the longest-ever
online goal celebration. The digital campaign invited
fans to film and upload their own goal
celebrations to YouTube where the
clips were edited into a continuous
loop to create a “non-stop
celebration” which was viewed over
5 million times throughout the
World Cup.
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Marketing Applications
UNIT 4
Interactive Strategies
Dana White, President of the Ultimate Fighting
Championship (UFC), used the official Twitter account of
UFC and his own personal Twitter profile to host a
scavenger hunt that rewarded UFC fans with a variety of
prizes. To drive awareness for upcoming fights, White
provided a call-to-action to fans via Twitter, posting his
location and offering up a prize to the first person who can
meet him at that location. He later posted a viral video to
YouTube that showed a fan tracking him down to win free
UFC gloves within just 3 minutes and 33 seconds of his
post. UFC's originality and authentic approach to using
Twitter has drawn an avid fan following online (White has
1,115,000+ followers; UFC has 139K followers).
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Marketing Applications
UNIT 4
Digital Marketing Strategies
Internet Marketing
The Internet, far more than
any other medium, has given
consumers a voice, a
publishing platform and a
forum where their collective
voices can be heard, shared
and researched, creating a
more powerful and educated
audience than ever before
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Marketing Applications
UNIT 4
Digital Marketing Strategies
Consumer-Generated
Media (CGM)
Also referred to as
Online Consumer
Word-of-Mouth or
Online Consumer
Buzz
Copyright
Encompasses the millions of
consumer- generated
comments, opinions and
personal experiences posted
in publicly available online
sources on a wide range of
issues, topics, products and
brands
© 2010 by Sports Career Consulting, LLC
Marketing Applications
UNIT 4
Digital Marketing Strategies
Sports and entertainment properties
use the Internet for a host of
marketing functions
 Ticket sales
 Community relations
 Sponsorship sales
 Player/staff fan connection
(blogs, chats etc.)
 Merchandise sales
 Additional revenue
streams (banner advertising
on team websites etc.)
Copyright
 General promotion
© 2010 by Sports Career Consulting, LLC
Marketing Applications
UNIT 4
Internet Marketing
The Lakewood BlueClaws Baseball Club uses the
Internet (specifically eBay and Craigslist) to sell
available luxury suite and premium seat inventory.
The team also utilizes Twitter and Facebook to stay
connected with fans.
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© 2010 by Sports Career Consulting, LLC
Marketing Applications
UNIT 4
Digital Marketing Strategies
Mobile Marketing
Mobile marketing refers to two
different marketing means:
one, a recent trend, refers to
marketing on or with a mobile
device (such as a mobile phone)
while the other (more
traditional) is meant to describe
marketing “on-the-go”
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Marketing Applications
UNIT 4
Digital Marketing Strategies
Mobile marketing represents an area
of massive potential growth
 Mobile phone users in the US sent a staggering 1.5
trillion text messages in 2009, compared to 263
billion text messages sent in 2007, with an average
of five billion messages sent out per day
 Analysts also estimate that mobile advertising (a
subset activity of mobile marketing) is expected to
grow to $5.7 billion by 2014
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Marketing Applications
UNIT 4
Digital Marketing Strategies
“Apps”
Apps have recently
gained a lot of
popularity among
consumers,
particularly users of
Apple’s iPhone
Copyright
Apps (an abbreviation for
applications) are individual
software programs designed
to run on the Internet,
computer, phone or other
electronic device typically
designed to increase
functionality or ease of use
© 2010 by Sports Career Consulting, LLC
Marketing Applications
UNIT 4
Digital Marketing Strategies
In July of 2010, Apple announced that 5 billion apps
had been downloaded from their online “apps”
store. It has taken just two years to reach that
mark.
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© 2010 by Sports Career Consulting, LLC
Marketing Applications
UNIT 4
Digital Marketing Strategies
The sports and
entertainment industry
has taken note of the
apps trend and launched
a number of sports and
entertainment related
apps
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© 2010 by Sports Career Consulting, LLC
Marketing Applications
UNIT 4
Digital Marketing Strategies
Lance Armstrong’s
foundation (LIVESTRONG)
offers a “calorie tracker” app
so consumers can use their
mobile devices to keep track
of what they are eating to
encourage healthier lifestyles
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Marketing Applications
UNIT 4
According to Ricardo Castro, Founder of MMA
Applications, an app is now available as of July of 2009
that delivers “instructional content into the pockets of
over forty million people around the world who are
carrying iPhone and iPod Touch devices” to help educate
the general public about the sport of mixed martial arts.
The videos available are high definition and provide
instruction for anyone interested in learning more about
the moves they’ve seen during UFC fights.
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Marketing Applications
UNIT 4
Digital Marketing Strategies
With the “Fandango” app, users can watch film
trailers, find showtimes, buy tickets and get
directions to the theater, all from their mobile device
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© 2010 by Sports Career Consulting, LLC
Marketing Applications
UNIT 4
Digital Marketing Strategies
With apps like Zippo’s “concert lighter”, cell phones
have become the new lighters for today’s concert goers
(the app has been downloaded over 10 million times)
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© 2010 by Sports Career Consulting, LLC
Marketing Applications
UNIT 4
Digital Marketing Strategies
Traditional Mobile Marketing
The NBA's Jam Van tour is an interactive basketball
program that travels from the United States to
China. The Jam Van is a 67-foot 18-wheeler that
transforms into 8,000 square feet of basketball and
interactive “off-court” activities
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© 2010 by Sports Career Consulting, LLC
Marketing Applications
UNIT 4
Digital Marketing Strategies
Traditional Mobile Marketing
In 2010, Gatorade launched a mobile “locker room”
initiative in conjunction with their “G Series”
rebranding campaign. The mobile campaign
traveled across the nation, visiting 8 handpicked
high schools where students were given a first-hand
experience where they tested
new G Series products and
experienced a once in a
lifetime opportunity.
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Marketing Applications
UNIT 4
Digital Marketing Strategies
Modern Mobile Marketing
In 2010, Major League Baseball allowed fans to cast
votes for their favorite players to be included in the
All-Star game via text messaging. Fans were
encouraged to text the word "VOTE" to a specific
number to receive their ballot, then to text again
with their player choice.
Copyright
© 2010 by Sports Career Consulting, LLC
Marketing Applications
UNIT 4
Digital Marketing Strategies
Modern Mobile Marketing
The Atlanta Symphony continues the tradition of
introducing members of the ASO to the audience with
an evening-long live, on-site broadcast of the concert
on large 15′x20′ screens, which are permanently
affixed on either side of the stage. The live feed will
include a pre-concert show, as well as live intermission
interviews of guest artists and musicians from the
Orchestra, fueled by text-message questions sent by
the audience the night of the concert.
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© 2010 by Sports Career Consulting, LLC
Marketing Applications
UNIT 4
Digital Marketing Strategies
Modern Mobile Marketing
Viacom announced in 2009 that Intel and Pepsi will
both be sponsoring the delivery of programming to
mobile phones, including video content from MTV and
Comedy Central. According to marketingvox.com,
“mobile is being viewed by Viacom and other media
companies as an entirely new, or at least not yet
maximized, revenue stream.”
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Marketing Applications
UNIT 4
Digital Marketing Strategies
Social Media
Social media describes the
online technologies and
practices that people use to
share content, opinions,
insights, experiences,
perspectives, media and to
otherwise interact
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© 2010 by Sports Career Consulting, LLC
Marketing Applications
UNIT 4
Digital Marketing Strategies
Social media presents itself in the
form of many variable applications
 MySpace
 YouTube
 Twitter
 Digg
 Flickr
 MiniClip
 Facebook
 Blogger
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© 2010 by Sports Career Consulting, LLC
Marketing Applications
UNIT 4
Digital Marketing Strategies
Why is social media important to a
sports or entertainment marketer?
 In theory, social media is free
 Allows an organization to reach a massive
audience
 Social media is still growing presenting
untapped potential
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Marketing Applications
UNIT 4
Digital Marketing Strategies
Social Media Marketing
A 2010 research project conducted by Catalyst
Public Relations in conjunction with the Sports
Business Journal revealed that 61% of MLB fans
and 55% of NFL fans consider themselves bigger
fans after they began following their teams
through social media outlets
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Marketing Applications
UNIT 4
Why is social media important to a
sports or entertainment marketer?
 Facebook: 500 million users
 Linkedin: 70 Million Professionals representing
every company on the Fortune 500 in over 200
countries
 Twitter: Over 1 million registered users, new
users are signing up at the rate of 300,000
per day
 YouTube: 1 Billion Views Per Day (2nd biggest
search engine behind Google)
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© 2010 by Sports Career Consulting, LLC
Marketing Applications
UNIT 4
Digital Marketing Strategies
Social Media Marketing
The NHL’s Los Angeles Kings used Twitter as a
means for connecting with fans during the 2009 NHL
Draft. Several members of the Kings front office,
including General Manager Dean Lombardi, Assistant
General Manager Ron Hextall and Kings legend and
President of Business Operations Luc Robitaille,
“tweeted” live updates provided coverage
throughout the entire draft
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© 2010 by Sports Career Consulting, LLC
Marketing Applications
UNIT 4
Digital Marketing Strategies
Social Media Marketing
Turner broadcasting launched a “social-viewing”
option for NASCAR fans watching the Pocono 500.
Viewers were encouraged to log on to Turner's
companion websites using Facebook, MySpace or
Twitter (or a combination of those) to chat with fellow
viewers. Network research found Facebook
represented, on average, 54% of social log-ins during
the race. MySpace was half that at 27% and Twitter
was just 10%. MySpace users talked the most,
accounting for 44% of message volume despite only
27% of log-ins.
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© 2010 by Sports Career Consulting, LLC
Marketing Applications
UNIT 4
Digital Marketing Strategies
Social Media Marketing
The marketing staff at Oregon State University uses
information collected on the Beaver’s Facebook page
from “friends” to contact them in an attempt to
increase the donor base. People from 20 countries are
represented on OSU’s page, 92 percent of them are
younger than 44 and 58 percent are 18-24, providing
a much greater reach than traditional donor
marketing campaigns.
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Marketing Applications
UNIT 4
Digital Marketing Strategies
Social Media Marketing
For the 2009-2010 season, the Boston Celtics
created a customized, branded “Evite” for users
of the popular evite.com website in an effort to
help group leaders organize and promote a
Celtics outing
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Marketing Applications
UNIT 4
Copyright
© 2010 by Sports Career Consulting, LLC
Marketing Applications
UNIT 4
Digital Marketing Strategies
Social Media Marketing
Pop star Katy Perry announced via Twitter that her
forthcoming album was complete by tweeting
““Cut, copy, print, moving on! That’s a wrap for
Teenage Dream! So gorgeous, I really can’t wait to
see what [director] Yoann Lemoine makes of it all!”
Copyright
© 2010 by Sports Career Consulting, LLC
Marketing Applications
UNIT 4
Digital Marketing Strategies
Social Media Marketing
Sports Networker’s Twitter sports marketing guide
analyzes the top twitter users in sports (teams like
the Lakers and Real Madrid who enjoy the highest
follower counts on Twitter) and offers five key
steps for marketing a brand and interact with fans
Copyright
© 2010 by Sports Career Consulting, LLC
Marketing Applications
UNIT 4
Digital Marketing Strategies
Social Media Marketing
1. When in Doubt, Tweet
2. Respect the Fan
3. Use the Resources You Have
4. Follow Back and Listen
5. If it isn’t Broken, Don’t Fix it
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© 2010 by Sports Career Consulting, LLC
Marketing Applications
UNIT 4
Digital Marketing Strategies
Viral Marketing
Viral marketing describes any strategy that
encourages individuals to pass on a
marketing message to others, creating the
potential for exponential growth in the
message's exposure and influence
Viral marketing is the digital marketer’s
version of “word-of-mouth” advertising
Copyright
© 2010 by Sports Career Consulting, LLC
Marketing Applications
UNIT 4
Digital Marketing Strategies
Viral Marketing
Nike wasn’t even an official World Cup sponsor, but its
three-minute "Write the Future" viral video broke the
record for the biggest audience in the first week of a
campaign with 7.8 million views. That record,
incidentally, was set by another Nike ad: the "Earl and
Tiger" ad, which debuted earlier prior to the 2010
Masters with 6.3 million views in its first week.
Copyright
© 2010 by Sports Career Consulting, LLC
Marketing Applications
UNIT 4
Digital Marketing Strategies
Social Media Marketing
Disney implemented a viral campaign which allowed
site visitors to animate family and friends as part of a
“What Will You Celebrate?” Disney promotion. Users
who went to the site could pick from a number of
reasons to have a parade (such as birthdays, family
reunions, congratulations etc.) and create a banner to
mark the event. They could then upload up to four
photos to create custom characters that were
integrated into the parade video. In just 4 months
post-launch, the “Magical Parade” site produced more
than 125,000 parade videos.
Copyright
© 2010 by Sports Career Consulting, LLC
Marketing Applications
UNIT 4
Copyright
© 2010 by Sports Career Consulting, LLC
Marketing Applications
UNIT 4
Digital Marketing Strategies
Ultimately, this shift in marketing trends
creates new opportunities for the sports
and entertainment industry
John Meindl, President of SPORTSBRANDEDMEDIA says on
their website: “Sports, TV, movies and music each offer
successful marketing models. But when sports and branded
entertainment work in unison, the result can cut through the
clutter of advertising messages and enable you to reach your
target audience in a unique and effective way. Executives
from sports and entertainment will share their insights and
demonstrate how the power of sports can help you build your
brand, engage your customers and sell your products.”
Copyright
© 2010 by Sports Career Consulting, LLC
Marketing Applications
UNIT 4
Blank Slide Available
for Teacher Edits
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© 2010 by Sports Career Consulting, LLC
UNIT 4 REVIEW (ANSWERS)
Marketing
Applications
1)Explain the marketing concept
The marketing concept is the view that an
organization’s ability to sell its products and
services depends upon the effective
identification of consumer needs and wants
and a successful determination of how best
to satisfy them
2)Identify the components of the marketing
mix
Product, price, place and promotion
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© 2010 by Sports Career Consulting, LLC
UNIT 4 REVIEW (ANSWERS)
Marketing
Applications
3)Understand the target market
A target market refers to people with a
defining set of characteristics that set them
apart as a group
4) Identify the five bases of segmentation
1- Demographic
2- Product usage
3- Psychographic
4- Benefits
5- Geographic
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© 2010 by Sports Career Consulting, LLC
UNIT 4 REVIEW (ANSWERS)
Marketing
Applications
5) Illustrate the concept of positioning
Positioning is the fixing of a sports or
entertainment entity in the minds of
consumers in the target market
6) Differentiate between customer and
consumer
The customer is the individual who buys
the product or service while the consumer
is the individual who uses the product or
service
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© 2010 by Sports Career Consulting, LLC
UNIT 4 REVIEW (ANSWERS)
Marketing
Applications
7) Explain the importance of market research
Market research provides an opportunity
for companies to get to know their
customers so they can effectively cater to
consumer needs and wants
8) Identify specific forms of advertising and
explain why businesses choose to advertise
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© 2010 by Sports Career Consulting, LLC
UNIT 4 REVIEW (ANSWERS)
Marketing
Applications
7) Explain the importance of market research
Market research provides an opportunity
for companies to get to know their
customers so they can effectively cater to
consumer needs and wants
8) Identify specific forms of advertising and
explain why businesses choose to advertise
Print media, outdoor advertising, mass
transit advertising, broadcast media,
online media and specialty media are
examples of specific forms of advertising
Copyright
© 2010 by Sports Career Consulting, LLC
UNIT 4 REVIEW (ANSWERS)
Marketing
Applications
8) Identify specific forms of advertising and
explain why businesses choose to advertise
Companies advertise for a number of
reasons, including:






Effective communication
Create awareness
Create or change image
Associate a brand with feelings/emotion
Precipitate behavior
Establish and maintain positive public
Copyright
© 2010 by Sports Career Consulting, LLC
UNIT 4 REVIEW (ANSWERS)
Marketing
Applications
9) Understand the concept of digital
marketing
Today’s consumer is more cognizant
of the marketing messages all around
them, leaving them more likely to
tune out advertisements or other
forms of marketing communication.
Digital marketers turn to technology
to help reach target consumers.
Digital marketers must be creative
and innovative to connect with today’s
consumer and target audiences.
Copyright
© 2010 by Sports Career Consulting, LLC
End Unit 4
Copyright
© 2010 by Sports Career Consulting, LLC