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 Type and scale of events Planning events Human resources – events personnel Marketing and forecasting demand Budgeting and financial management Sponsorship Management and evaluation Event Checklist Objective – Why are you doing it? Define your event with a mission statement Know the rules and regulations that apply Event Checklist Target your event to the customer Think about the personality Develop Budget Budget Items Revenue Sponsorship Ticket sales Merchandise Media Programs F&B Budget Items Expenses General and administrative Talent Production Facility Television Sales and Marketing Sales and marketing expense Advertising Media public relations Advertising production Design fees Collateral materials Direct mail Sponsor costs Entertainment Post event parties Photographer Merchandise Tents Gifts Budget Items Cash Flow Chart when the cash is due to come in and when the major payments have to out Magic Bag You have to create a sport event and develop identify the following: Objective Mission statement Organizational structure Target market Personality On Sponsorships in Sports Define “Sponsorship” in Sport. What can be sponsored? Why sponsor? Why being sponsored? Why not? FIFA Fan Fest Sponsorship MasterCard sponsors the FIFA WC 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 Calls its sponsors “Commercial Affiliates” Currently divides them into the following 3 categories: Official Partners (global marketing rights) Official Suppliers (rights in the host country only) Licensees Official Partners ONLY 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 2007-2014: includes the flagship FIFA World Cups in 2010 and 2014 Classifies prospective marketing partners into three categories: 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 How can you understand conceptually the reasoning for restructuring the sponsorship pillar around the FIFA World Cup? Endorsements: Subcategory of Sponsorships Beckham as endorser: Opportunities Threats