SEM1 1.02
A - Marketing
• PE - Understand sport/event
marketing’s role and function in
business to facilitate economic
exchanges with customers.
• PI - Explain the nature of sport marketing
• PI - Explain the nature of event marketing
Define the term sport marketing
• Sports Marketing: the process of planning
and executing the conception, pricing,
promotion, and distribution of sports ideas,
goods and services to create exchanges that
satisfy individual and organizational objectives
– Satisfy the needs and wants of the consumer
Identify categories of sport products
• The Sporting Event: Service Product
– Intangible: an experience you can see, feel &
participate in
– Perishable experience: Once over, the product is
gone
– The athletes/participants: make the game happen
– The spectators/fans: create excitement and
enthusiasm for the product
– The facility: Time Warner Arena, Lowes Motor
Speedway – where the product is offered
Identify categories of sport products
• Sporting Goods: Goods Product
– Tangible, manufactured products that make the
game possible.
– Equipment, clothing, licensed merchandise
• Personal Training: get ready to compete
(good or service?)
• Sports Information: ESPN, Sports Illustrated,
newspapers, internet
(good or service?)
SEM1 1.02 Activity
Goods & Services
• Remember the segments we learned about in
1.01? NOTE: Check your unit notes!!
• Select three of those segments and list 3
goods and services from each segment
• After we have completed the activity you will
share with two other students. All must
agree the goods and services are correct
• Several groups of 3 students will present to
the class
Describe categories of sport
consumers
• 1. Unorganized participants: walk in the woods, jogging
• 2. Organized participants: have rules – NCAA, MLB, MBA,
MMA
– Amateurs are not paid to play, regulated on local, state, national
level
– Professionals are paid but follow strict rules by their governing
body – their occupation (income) is playing the game
• 3. Spectators/fans: observers of the sporting event
– As important as the athletes due to the excitement they create
• 4. Sponsors: businesses or organizations that pay to
associate their names or products with a sporting event for
recognition and affiliation benefits
Example: NASCAR has many sponsors
Describe the relationship between the growth
and marketing of the sport industry.
• A sports product (good or service) becomes more
popular because of marketing – Explain and give
examples
• Sanctioning bodies like NASCAR, NFL and MLB
establish rules and guidelines for all teams,
participants and owners – allows national ads, etc
• Marketing opportunities increase as the product
grows resulting in increased sales and profits
Discuss benefits from the
development of sports marketing
• Good for You
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Increases opportunity for employment
Benefit those who participate either by playing or watching
Recreation
Entertainment
• Good for the Local Community
– Economic effect of a major event
– Improve city’s image
• Good for Society
– Generates billions of dollars of revenue each year
– More jobs
– Multiplier effect
SEM 1 1.02 Activity
“Players”
• Students remain at seats and provide examples of the
following categories on same paper of other 2
activities
– NOTE: you may not use the PPT examples
• Unorganized – provide 2 examples & a characteristic
• Organized – provide 2 examples & a characteristic
• Sanctioned bodies – provide 2 examples & a
characteristic
• Spectators/fans – provide 2 examples & a
characteristic
• Sponsors – provide 2 examples & a characteristic
• Students once again share with 2 other students
Define the terms event marketing
• Event Marketing: designing and developing a
live themed activity, occasion, display or
exhibit, such as a sports, music festival or
concert to promote a product, cause, or
organization. The event is produced and
consumed at the same time and is normally
an unique experience for the participant or
spectator
Identify types and categories of
events
• Corporate Events
– Conferences, seminars, trade shows, team building,
theme parties, VIP events, incentive travel
• Private Events
– weddings, birthdays, family events, anniversaries
• Public Events
– professional and/or amateur participants with
spectators/fans – Concerts, NFL games, college or high
school or recreational events
Discuss benefits from the
development of event marketing.
• Start a dialogue: face to face marketing (viral
marketing)
• Personal connection: builds consumer trust
for the product
• Immediate fulfillment: produce and consume
the product at the same time
• Brand awareness: build awareness of your
product by marketing the event - Examples:
sales flyers, ads, promotion & PR – give
example of this for a private event
Target Marketing in the SEM Industry
• IMPORTANT part of target marketing in the
Sports and Entertainment/Event industry involves
appealing to potential customers who have
DISPOSABLE INCOME – WHY?
– Disposable Income is the amount of money people
have to spend or dispose of AFTER they have paid
their taxes.
– Appealing to consumers with disposable income is
VERY important in the SEM Industry because the
products associated are not necessary to live. Wants
– SEM goods and services are products people buy
AFTER they buy their necessities (example: bills,
groceries).
SEM 1 1.02 Activity
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Read the Olympic articles and view the Ortega ad and respond to these questions
http://www.youtube.com/watch?v=ADCxstTLFsw – Ortega ad
Why is Usian Bolt an ideal candidate for product endorsement?
Provide 3 names that were the most marketable names for sponsorship &
promotional deals from the summer 2012 Olympics
Why would amateur athletes want to endorse products?
Why is Wheaties listed under the good section? What is Wheatie’s slogan?
Who is Mary Lou Retton? What event did Bruce Jenner participate in?
Who is Carl Lewis
Why is Puma listed under the good section?
Who sponsors the entire Jamaican track team?
Puma’s sponsorship of Bolt has helped position the brand how?
Why is Subway and Michael Phelps listed with the bad?
What does it mean Phelps has overexposure? What is over-saturation?
Why is the message & execution wrong of Phelps and Subway?
Why did the article say Ortega is a confusing ad? Is it?