Sports Marketing: A Strategic
Perspective
Third Edition
Matthew D. Shank
CHAPTER 1
EMERGENCE OF SPORTS MARKETING
Understanding the Sports Industry
• What is sport?
• Sport - Source of diversion or physical activity
engaged in for pleasure
• Sports as Entertainment - Reebok president Robert
Meers, “We’ve recognized for several years that
sport is part of entertainment. The market now is
really sports, fashion and music. We can’t expect
to ignore reality and survive.”
Growth of the Sports Industry
• 11th largest of all U.S. industry groups
• Nation’s output for sports goods and services estimated at
$213-350 billion annually
• How do we measure growth in the sports industry?
• Growth measured in…..
– Attendance Figures
– Media Coverage
– Employment Figures (4.5 million jobs)
– Global Markets
– Sports Goods
– Sports Information
Growth of the Sports Industry
•
•
•
•
The sports industry generates estimates of 213 to 350 billion dollars per year
in revenues. As ESPN founder Bill Rasmussen points out, “The games are
better, and well the athletes are just amazing and it all happens 24 hours a
day. America’s sports fans are insatiable.”
Attendance is increasing:
– The NFL experienced a record number of fans in the 2003 season (regularseason total paid attendance of 16,913,584 and the average of 66,328
per game were both all-time records)
– The NBA 2003-2004 season also produced a record increase
– MLB down 0.4%
– NHL continues to decline slighty in attendance (16,591 to 16,533) and
popularity
– NASCAR continues to increase
Sports Sponsorship Spending Exceeds $9 Billion Mark
New Leagues (AF2, NWFL, NLL, WHA)
Growth of Sports Industry
•
Sporting Good Industry
– Sports Equipment (17.5 billion)
• Exercise equipment
• Golf
• Guns and Hunting
– Recreational Vehicle and Water Scooters (17.9)
– Sports Apparel (22.3)
– Footwear (9.3)
•
Collectibles and Memorabilia
– 1.2 billion at height in 1991 and now stable at 500 million
•
Sports Information
– 3.2 circulation of SI
– 34% use Internet for sports Info
– ESPN.com reaches 15 million unique users
Growth of Sports Industry
•
Media Coverage is Increasing
– 200 million people watched NBC coverage of the Summer Olympic Games and 3.7
billion people watched worldwide
– ESPN, the original sports-only network launched in 1979, reaches some 76 million
homes with its 4900 hours of sports programming and, remarkably, ESPN2 reaches 65
million viewers.
– $2.3 billion to secure the broadcast and cable rights for the Olympic Games in 2004,
2006, and 2008 and additional $2.2 billion for 2010 and 2012
– Overall for the week, NBC averaged 26.7 million viewers in primetime, more than three
times the 7.2 million for second-place CBS. ABC was third with 4.5 million, followed by
Fox with 4.4 million.
– $2.64 billion paid by NBC and Turner Sports to televise NBA contests, $18 billion paid
by the networks for the NFL, $2.5 billion for post season MLB
– New sports networks, such as the College Sports Television, Tennis Channel, Blackbelt TV,
and the Women’s Sports Network
– Internet, satellite stations, and pay-per-view cable television are growing in popularity
Opportunities in the
Sports Industry: Academics
• Over 200 Academic Programs in Sports Administration
• NKU – 120 Majors and growing
Opportunities in the Sports Industry:
Careers
• Upwards of 4.5 million sports-related jobs in sports
administration
• 13 career areas in sport. These include: event suppliers,
event management and marketing, sports media, sports
sponsorship, athlete services, sports commissions, sports
lawyers, manufacturers and distribution, facilities and
facility suppliers, teams, leagues, college athletics, and
finance
• Marketing & Public Relations
Professional Sports
Intercollegiate Sports
Youth Sports
Olympic Sports Organizations
Regional and National Sport Commissions
Amateur Sports
Corporate Sports Marketing
Sports Marketing Firms
Licensing Firms
What is Sports Marketing?
• Sports Marketing - The specific application
of marketing principles and processes to
sports products and to the marketing of
non-sports products through association
with sport.
Simplified Model of the Consumer-Supplier
Relationship in the Sports Industry
Consumers
Spectators
Participants
Corporations
Products
Producers/Intermediaries
Events
Sports Labor
Sporting Goods
Sanctioning Bodies
Personal
Training
Sponsors
Sports
Information
Agents
Media
Equipment Manufacturers
Classification of Sports
Spectators
In-Person
Individuals
Corporate
Mediated
Classification of Sports Participants
• Unorganized Sports Participants
• Organized Sports Participants
Amateur
Youth Recreational Instructional
Youth Recreational Elite
Schools
Intercollegiate
Professional
Minor/Secondary
Major
The Sports Product
• Sports Product - A good, service, or any
combination of the two that is designed to
provide benefits to a sports spectator,
participant, or sponsor.
Types of Sports Products
• Sporting Events
– Athletes
– Arenas/Stadia
• Sporting Goods
– $60.2 billion industry comprised of four segments (equipment,
transportation, apparel, and footwear)
– Collectibles and Memorabilia
• Sports Training
– Fitness and Health Services
– Sports Camps and Instruction
• Sports Information
– Newspapers, Internet, Magazines, Radio, etc.
The Sports Product Map
The Sports Marketing Exchange Process
Something of Value
Exchange
Players
Exchange
Players
Something of Value