Transcript Sports Marketing 1119

Sports Marketing 1119
Instructor: Dave Doroghy
604 732 7808
[email protected]
Brandweek Magazine Quote
 Phil Knight the President and Chairman of
the Board of Nike is quoted as saying:
 “Sport is the culture of the United States
and will before long define the culture of
the entire world”
Lesson One
Book Definition
 Sports marketing consists of all activities designed
to meet the needs and wants of sports consumers
through the exchange process. Sport marketing
has developed two major thrusts: the marketing of
sports products and services directly to the
consumer of sport, and marketing of other
consumer and industrial products or services
through the use of sports promotion.
Lesson One
Where do Sports Rank ?
 Based on 1995 American Industry Statistics
it is a 152 Billion Dollar Industry
 11th largest industry in America
Lesson One
The 1990’s were the Golden
Decade of Sports
 Value of franchises continue to increase
 Superbowl dominates
 NHL, NBA expansion
 Interest in sport for women and girls surged
 Mainstream publications covering sports
 Hollywood expands sport interests
 2100 hours of network sports programming in ‘96
 Naming rights for arenas
Lesson One
Top 5 Favorite Sports in USA
Today
 Pro Football
 Baseball
 Pro basketball
 College basketball
 College football
Lesson One
Trend toward consolidation
 Eisner / Disney
 Murdoch / Fox
 Turner / Time Warner
 Clear Channel
 Canadian Examples ???
Lesson One
 Strategies
 SWOT Analysis - Rochester Royals
 The 5 P’s in the Sports Marketing Mix
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Product
Price
Place
Promotion
Public Relations
Lesson One
 Escalator Concept
 TARGET TARGET TARGET TARGET
 Borrowed Equity
 Ambush Marketing
 Product Development and Positioning
 What Sports Appeal to What Audiences ?
Lesson One
Historical Facts
 1921 baseball authorized the sale of radio rights
for the World Series for $3,000 which was divided
between the two teams
 1935 the Gillette Company decided to broadcast
sporting events
 In 1969 53% of advertising expenses went to the 3
major networks and print magazines such as LIFE.
In the 90’s that figure dropped to 25% as budget
allocation emphasized more event promotions.
Lesson One