Transcript What is Sports Marketing? - Mrs. Ingram`s Class Website

Unit 2: Sports Marketing
Chapter 3 & 4
Sports and Entertainment Marketing
Mrs. Ingram
OMHS
Ch 3: The Sports Market
Key Terms:
● Sports Marketing- the marketing activities
designed to satisfy the needs and wants of
sports consumers.
● Amateur Athletes- a person who does not
get paid to play a sport.
Key Terms:
● NCAA: a national organization that governs
college athletics and oversees important
decisions pertaining to athletics.
● Professional Athlete- an athlete who has
the will and ability to earn an income from
a particular sport.
Key Terms:
● Title IX (nine): a law that bans gender
discrimination in schools that receive
federal funds.
● Extreme Sports: sports that involve non
traditional, daring methods of athletic
competition.
What is Sports Marketing?
● Marketing: the process of developing, promoting, and
distributing products, or goods and services, to satisfy
customers’ needs and wants.
● Sports Marketing- the marketing activities designed to
satisfy the needs and wants of sports consumers.
What is Sports Marketing?
●
Focus of Sports Marketing
o Sports Marketing might focus on the sport of
football, baseball, or hockey, as well as all the
other activities that revolve around a sporting
event, such as event planning, promotion,
financing, and sponsorship.
What is Sports Marketing?
● 2 Major Components of Sports Marketing
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The Marketing of Sports
Marketing through sports.
Studying Sports Marketing
● 1951 Eddie Gaedel performed at the 50th
Anniversary of the American League.
● Arnold Palmer was the first professional
athlete to associate with corporations in a
promotional role.
Careers In Sports Marketing
● The sports industry is substantial.
● Careers include: scriptwriter, producer,
ticket agent, and group-ticket sales person.
● Sports marketing involves action, creativity,
and dedication.
Variety of Sports
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Amateur
High School
College
Professional
Amateur Sports
● Interest- families, friends and potential sponsors.
● Sponsors and banners hang around to attract the
target market to their products.
● Colleges and universities might be represented at
tournaments to attract potential students.
Recreational Sports
● PeeWee League
● Youth Leagues: Boys and Girls Club of America, YMCA,
YWCA.
● Amateur Athletic Union established in 1888.
● Adult League sports: softball, soccer, basketball.
High School Sports
● High school sports are part of tradition.
● Encourages people to rally around the game.
● Remember the Titans examines and details the power
that high school sports has on a community.
College and University Sports
● NCAA oversees important decisions pertaining to
athletes and regulates the marketing of sporting
events.
● NCAA Divisions: Division I, Division II, Division III- based
on student population, financial stability, and player
ability.
● Best known Division I Basketball Tournament- March
Madness.
Professional Sports
● Athletes are paid by their team but also able to earn
other income from major corporations as an
endorsement.
● Both entertainment and athletic characteristics of
marketing are involved.
Other Categories of Sports
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Disabilities
International Sports
Women’s Sports
Extreme Sports
Olympic Sports
● Founded by Heracles--Son of Greek god Zeus.
● First held in 776 BC in Olympia, Greece. Only event was a
run of 192 meters (210 yards.)
● In 393 A.D., Roman emperor Theodosius I abolished the
games because of their pagan influences.
Olympic Games
● 1890-Pierre de Coubertin began the revival of the Olympic
Games.
● 1896- Athens was chosen for the revival of the Olympic
games. 300 athletes 13 countries
● 2002- Winter Games included 77 member nations 2,399
athletes in 78 winter events.
● Problems experienced: terrorist attacks, illegal drugs,
boycotts.
Olympic Games
● 1984- Olympic Games became the first Games since 1932 to
make a profit--$225 million.
● Amateur Rule was overturned in 1986. (allowed professional
athletes to participate)
The Wide World of Paralympics
● 1948- Sir Ludwig Guttmann organized a sports competition for wounded
World War II veterans (spinal cord injury)
● 1960- Olympic style games were organized in Rome.
● 1976- other groups with disabilities were added.
● 1968- Eunice Kennedy Shriver organized the First International Special
Olympic Games.
● Special Olympics offer: 26 Olympic Style summer and winter sports.
● Currently serves over 200 programs in more than 150 countries.
International Sporting Events
● Roone Arledge created -The Wide World of
Sports
Women’s Sports
● June 23, 1972- enactment of Title IX (nine)- girls participation in
sports.
● Billie Jean King was the key player in the advancement of
women’s sports.
o 1973 she challenged tennis professional Bobby Riggs and
defeated him in the “The Battle of the Sexes”.
Women and the Olympics
1900
Women are included on the Olympic program, competing in golf and tennis.
Tennis player Charlotte Cooper of Great Britain becomes the first female Olympic champion.
1966
Gender verification tests for women are adopted in international sports.
1968
In Mexico City, Enriqueta Basilio becomes the first woman to light the Olympic flame.
1976
Rowing and basketball became Olympic events for women.
1984
The first women’s Olympic marathon is won by Joan Benoit of the United States.
Women’s cycling, synchronized swimming, and rhythmic gymnastics are added to the Olympic
program.
1996
3,626 women compete at the Olympic Games in Atlanta--32% more than in Barcelona, with
inclusion of women’s soccer, softball, and triple-jump events.
1998
The IOC(International Olympic Committee) includes women’s ice hockey in the Winter Olympic
program in Nagano, Japan.
2000
New women’s events for the Sydney Austrailia, Olympics include triathlon, the trampoline, water
polo, weightlifting, and tae kwon do.
Chapter 4: Sports Products
Key Terms:
● Sports Consumer- a person who may play, officiate,
watch, or listen to sports, or read, use, purchase,
and/or collect items related to sports. pg. 76
● Market Segmentation- a way of analyzing a market
by specific characteristics to create a target market.
pg. 77
Key Terms:
● Sports Products- goods, services, ideas, or a combination of
those things related to sports that provide satisfaction to
the consumer. pg. 78
● Tangible Products- physical goods that offer benefits to the
consumer. pg. 79
● Intangible Products- nonphysical service such as tennis
lessons, personal training, or sports camps. pg. 79
Key Terms:
● Product Line- a group of closely related products
manufactured and/or sold by a company. pg. 82
● Product Mix- the total assortment of products that a
company makes and/or sells.
● Opportunity Cost- the loss of the opportunity that is passed
up in order to receive something in exchange. pg. 85
Key Terms:
● Infrastructure- the physical development of an area,
including the major public systems, services, and facilities
of a country or region needed to make a location function.
pg. 85
● Sports Franchise- sports in an agreement or contract for a
sports organization to sell a parent company’s goods or
services within a given area. pg. 86
● Grassroots Marketing- refers to marketing activity on a local
community level. pg. 88
The Sports Consumer
● Reasons why a consumer chooses to purchase or not
purchase something.
Consumer Decisions
● Environmental Factors:
o Family and Friends
o Society’s attitudes and values
o cultural differences related to class, race, gender
o Climate and region
o Marketing influences (commercials)
● Individual Factors: (Read pg. 76 last 2 paragraphs)
o self-concept
o self-image
Sports Consumers and Market Segmentation
● Market Segmentation Characteristics:
o Geographics
o Demographics
o Psychographics
o Product Beliefs
Market Segmentation Shifts
● Sports marketing professionals must check the consumer
approval rating.
● Example of Shift- The Market for Golf
o Years ago- Mostly men. Income $50,000-$175,000.
o Tiger Woods- new consumer market of teenagers
developed and PGA gained new sponsors.
 Tiger Woods sponsors- Nike, Wheaties, Upper Deck,
Coca-Cola.
Sports Products
● Sports products- goods, services, ideas, or a combination of
those things related to sports that provide satisfaction to
the consumer.
● Provides basic needs: entertainment, sociability,
achievement.
● Products can also be athletes. (demonstrates more than one
skill)
Types of Sports Products
● Sporting Events
o Core product of sports. Athletes & arenas.
● Sports Information
o News, statistics, schedules, and stories. Television, radio, online,
print media.
● Sports Training
o Instruction provided through fitness centers, sports camps, lessons.
● Sporting Goods
o equipment, licensed merchandise, collectibles, apparel, accessories,
and memorabilia.
Sports Goods
● Tangible Products
o physical goods (skateboards, balls, exercise equipment)
o Quality of Goods Questions:
 Does the product conform to design specifications in
the manufacturing process?
 How well does the product perform its function in
the opinion of the consumers, or end users, of the
goods?
o See Characteristics of Quality Goods Chart pg. 80
Sports Services
● Intangible Products
o nonphysical service (tennis lessons, personal training,
sports camps)
o Quality of Service
 Reliability (dependable and accurate service)
 Assurance (trust and confidence of employee)
 Empathy (caring and attention provided)
 Responsiveness (customer help)
 Tangibles (appearance of equipment, materials,
venue)
Sports Product Classifications
● Product Line- group of closely related products
manufactured and/or sold by a company.
● Product Mix- assortment of products that a company makes
and/or sells.
o Baseball product line product mix include bats,
baseballs, baseballs, gloves, mitts, protective
equipment, uniforms, and accessories.
o Sports Product and Extensions Chart pg. 83
Economic Impact of Sports Marketing
● Each decisions the consumer makes is an opportunity cost.
(passing up one thing in exchange for something else)
● Opportunity Cost affects sports marketing because
consumers decide to spend his or her discretionary income
to have an enjoyable experience.
● Infrastructure- physical development of an area to make it
function. A satisfied customer will tell others about a
pleasurable experience.
Economic Impact of Sports Marketing
● Six Infrastructure Functions:
o Water and Power Supplies
o Public Transportation
o Telecommunications
o Roads
o Schools
● The entire process from beginning to end, contributes to
the economy.
The Sunshine State
● Florida
o #1 tourist destination in the world.
o Over 30 million tourist each year.
o Motels, hotels, resorts, restaurants, plazas, and malls
fill the state that used to be covered with wetlands,
marshes, and orange groves.
o Established Disney World in 1971, Orlando was then
known as “theme-park central.”
Case Study: Sports Economy in Orlando pg. 86
● Orlando Magic joined the NBA for the 1989-1990 season.
● Four years before, Jim Hewitt (former developer and banker)
promoted the idea of Orlando as hometown of NBA Sports
organization--know as a franchise.
o Sports Franchise
 agreement or contract for a sports organization to sell a
parent company’s good or service within a given area.
● Read pg. 87- Economic and Marketing Challenges
Grassroots Marketing Efforts
● Grassroots Marketing
o marketing activity on a local community level.
o helping and assisting the community with charity and
fundraising events.