Transcript What could be the result of an incorrect decision?

Today:
More comments on pricing
Framework for event management
Exploring idea of sponsorship in sport
Most Common Pricing Strategy:
What the Market Will Bear
If hunches are wrong, results can be costly
What could be the result of an incorrect
decision?
Special Pricing Factors
to Consider
User Segmentation
Pricing based on user group
Corporate/individual season-ticket holder
Single-ticket purchasers
Special groups
Student packages
[Un]bundling
Would any particular group be more
sensitive to price change? Why?
Special Pricing Factors
to Consider
Time and Place Smoothing
Time—bundled packages
Prime vs. non-prime time
Price scales in venue
Key factors—proximity, line of sight, and
demand
Understand the Escalator!
Price hikes threaten to push consumers off
escalator
What are some key pricing concerns for a
new MLS franchise?
Moving consumers up
the escalator
Light users
Non-consumer sport
and leisure fan
Non-consumer, nonsport and leisure fan
Medium users
Heavy
users
Events: Frameworks and Guidelines
Perspectives and issues
Some aspects to consider – all interrelated
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Type and scale of events
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Planning events
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Human resources – events personnel
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Marketing and forecasting demand
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Budgeting and financial management
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Sponsorship
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Management and evaluation
Event Checklist
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Objective – Why are you doing it?
Define your event with a mission statement
Know the rules and regulations that apply
Event Checklist
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Target your event to the customer
Think about the personality
Develop Budget
Budget Items
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Revenue
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Sponsorship
Ticket sales
Merchandise
Media
Programs
F&B
Budget Items
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Expenses
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General and administrative
Talent
Production
Facility
Television
Sales and Marketing
Sales and marketing expense
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Advertising
Media public relations
Advertising production
Design fees
Collateral materials
Direct mail
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Sponsor costs
Entertainment
Post event parties
Photographer
Merchandise
Tents
Gifts
Budget Items
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Cash Flow
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Chart when the cash is due to come in and when the
major payments have to out
Magic Bag
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You have to create a sport event and
develop identify the following:
Objective
Mission statement
Organizational structure
Target market
Personality
On Sponsorships in Sports
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Define “Sponsorship” in Sport.
What can be sponsored?
Why sponsor?
Why being sponsored?
Why not?
FIFA Fan Fest Sponsorship
MasterCard sponsors the FIFA WC
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What in the organization’s marketing mix is
such a sponsorship engagement part of?
What do you think are their strategic
objectives?
Do you think a sporting event such as the
World Cup is a good context for achieving
these strategic goals? Why/Why Not?
FIFA
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Calls its sponsors “Commercial Affiliates”
Currently divides them into the following 3
categories:
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Official Partners (global marketing rights)
Official Suppliers (rights in the host country only)
Licensees
Official Partners ONLY
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Official partners of the 2006 FIFA World Cup™
www.adidas.com
www.avaya.com
www.budweiser.com
www.coca-cola.com
www.conti-online.com
www.deutschetelekom.com
www.emirates.com
home.fujifilm.com
www.gillette.com
www.hyundai-motor.com
www.mastercard.com
www.mcdonalds.com
www.philips.com
www.toshiba.co.jp
www.yahoo.com
FIFA restructuring
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2007-2014: includes the flagship FIFA World Cups in
2010 and 2014
Classifies prospective marketing partners into three
categories:
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six FIFA Partners (broad range of FIFA activities such as
competitions, special events or development programs as
well as exclusive marketing assets).
six to eight FIFA World Cup™ Sponsors (rights are limited
to the FIFA World Cup™ on a global basis. They consist of
the right to category exclusivity, brand association, select
marketing assets and secondary media exposure).
four to six National Supporters (category exclusivity,
association, local marketing programs and domestic media
exposure).
Discuss
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How can you understand conceptually the
reasoning for restructuring the sponsorship
pillar around the FIFA World Cup?
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Endorsements: Subcategory of
Sponsorships
Beckham as endorser:
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Opportunities
Threats