SPORTS AND ENTERTAINMENT MARKETING
CHAPTER
4
Marketing Products and Services
Through Sports
4.1 Using Sports to Market Products
4.2 Sponsorship
4.3 Promotion
4.4 Endorsements
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LESSON 4.1
Using Sports to
Market Products
GOALS
• Understand the enormous market for sports.
• Explain emotional ties to sports and earning
power of women in sports.
• Discuss the marketing cycle.
• Essential Question – What products can
sports market?
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Market Audience Size
• The audience
– Sports events attract more viewers and
participants than any other form of
entertainment today
– An audience of avid fans is captive – meaning
if they want to watch the game, they gotta’
watch the commercials!
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The Power of Sports
• Power of emotional ties
– People experience intense emotions over sports
– Pride in their city
– Rioting after championship games – mostly
fueled by booze
– Fans may overlook athlete’s bad behavior –
Mike Tyson, Tiger Woods
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The Power of Sports
• Power of new markets
– Rising popularity of women’s athletics
– Title IX – prohibits gender discrimination in
school programs that receive federal funds. EX
– male field hockey players
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Marketing Cycle for sports
• A company buys the right to advertise or
use a logo on products
• Television and radio stations and networks
sell broadcast time
• Cities buy the rights to host teams
• Consumers buy the products advertised
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Marketing Cycle for sports
1. Company
buys the rights
to advertise
during a game
or to use a logo
on products
4. Consumer buys
the products
advertised during
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the game
2. TV/Radio
stations sell
broadcast time to
teams/sponsors
3. Cities
buy the
rights to
host the
teams
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How Companies Decide
• Hire outside consulting firms to help
advertise their products through sports
• Sports marketing groups within their own
marketing department
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LESSON 4.2
Sponsorship
GOALS
• Understand sponsors and their investments.
• Discuss prohibited sponsorship.
• Essential Question: Why are sponsors so
valuable to a team?
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Sponsors and Investments
• Sponsor- a person, organization, or
business that gives money or donates
products and services to another person or
team
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Sponsors and Investments
We will discuss:
• Reasons for sponsorship
• Need for profit
• Sponsorship in niche markets
• Examples of niche markets
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Reasons for Sponsorship
•
•
•
•
•
•
•
•
•
Increase sales
Introduce a new product or service
Compete where potential customers are in one place
Identify an event with a target market
Earn the goodwill of the audience
Show community commitment
Enter new markets
Entertain clients, employees, or potential customers
Enhance the companies’ image
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Need for Profit
• Businesses become a sponsor for a
guaranteed amount of exposure,
recognition, or acknowledgement
• Market research measures the results of its
sponsorships
• Return—the profit the sponsor earns from
its support of an athlete or team
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Sponsorship in
Niche (pronounced-neesh) Markets
• Niche marketing —researching a target
market to determine the specific items or
services a small group of people will buy
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Examples of
Niche Markets
• Auto racing is the number one sport for fan
loyalty (source –the book??)
• Fans are very loyal to the products that their
favorite driver endorses.
• Who would/does sponsor the X games and
why?
• Who would/does sponsor a rodeo?
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Can Anyone
Sponsor Anything?
• Newer sports offer attractive opportunities for
smaller businesses
• Minor league baseball
• Affinity sports —niche markets whose
participants are just as passionate about their
sports as are enthusiasts of the more traditional
sports
• Fishing and rope jumping
– These guys
– Then there’s this guy CHAPTER 4
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Loss of sponsors
• Multistate Settlement Agreement of 1998
– Tobacco sponsorship is prohibited for concerts,
for events in which the participants are under
18, and for football, baseball, soccer, and
hockey
– Tobacco sponsorship is limited to one event
and one brand per year per business
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LESSON 4.3
Promotion
GOALS
• Discuss promotion and its objectives.
• Understand the tools used in promotion.
• Essential Question – Why do companies
promote a product?
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Promotion
• Selling—the exchange of a product or service for
another item of equal or greater value
• Promotion—publicizing or advertising a product,
service, or event with the goal of selling it
• Promotion Example
– Bonita’s Floral Shop
• Promotional video example
• Just too awesome…
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Promotion Targets
• Primary goal of promotion is to increase
sales or attendance
• Attracting new markets and keeping old
ones are equally important
• Critical stage in winning new customers
• Maintaining customer satisfaction, loyalty,
and repeat business
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Promotion Objectives
• Before spending money on a promotional campaign,
the company must know exactly what it wants to
accomplish first
• Decide on target market
• Research market segmentation
(dem,psy,geo,prodU,benD) of target market to
ensure product and market are compatible
• Decide on the message
– Do they want to persuade, inform, create or broaden?
• Determine what it wants consumers to do
– Do they want us to try, participate or buy?
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Promotional Tools
A promotional plan or promotion mix, has
four elements:
1. Personal selling
2. Advertising
3. Publicity
4. Sales promotion
• Some bad promotional ideas
– Bad advertisements
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Personal Selling
• Personal selling — communication
between a seller and a customer
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Advertising
• Advertising—paid communication between
the product maker or seller and the audience
or customer
• Effective advertising should clearly explain
the benefits of good product
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Publicity
• Publicity—any free notice about a product,
service, or event
• Lance Armstrong’s victory over cancer
promoted interest in the Tour de France
more than advertising ever could
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Sales Promotion
• Sales promotion— any action or
communication that will encourage a
consumer to buy a product
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LESSON 4.4
Endorsements
GOALS
• Describe endorsements and their
restrictions.
• Describe qualifications for endorsers.
• Why do companies want celebrities to
endorse their product?
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What Is an Endorsement?
• Endorsement—a person’s public
expression of approval or support for a
product or service
• Endorsements are a promotional tool rather
than a form of sponsorship.
• Chuck Norris!
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Legal Restrictions
on Endorsements
1. Endorsements must always reflect the honest
opinions, findings, and beliefs or experience of
the endorser.
2. The endorser must have real experience with the
product.
3. The endorsements may not contain any deceptive
or misleading statements. The statements must
be able to be substantiated by the advertiser.
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Legal Restrictions
on Endorsements (continued)
4. Endorsements may not be presented out of
context or reworded so as to distort in any way the
endorser’s opinion.
5. The endorser must use and continue to use and
believe in the product for as long as the endorser is
used in the advertisements.
6. If the product changes in any way, the company
must notify the endorser, and the endorser must
continue to use and believe in the new or revised
product.
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Athlete Endorsements
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•
•
•
Top Ten paid athlete endorsements
Advantages and disadvantages
How controversial can an endorser be?
Should endorsers speak out on anything
besides the product?
• What businesses look for in an endorser
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Advantages and Disadvantages
• Advantages• Consumers will buy products endorsed by
celebrities more often than products that are not so
endorsed
• Viewers, listeners, and fans are less likely to turn
off a commercial featuring a celebrity than a
commercial featuring a fictitious character
• Consumers tend to believe celebrities, especially
those who are chosen for their good public image
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Advantages and Disadvantages
• Disadvantages• Very $$$$$
• Celebrity may not agree to only endorse one
product
– MJ has endorsed Gatorade, Nike, McDonalds,
Rayovac, MCI, Sara Lee and Hanes!
• Risk of negative publicity if the endorser
commits a crime or serious blunder
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How Controversial
Can an Endorser Be?
• A difference between harmful endorsement
and questionable endorsement
• Dennis Rodman
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Should Endorsers
Speak Out?
• Debate over whether celebrity endorsers have
a moral obligation to speak out on
controversial topics Chuck Norris
• Athletes are not experts in the field of
politics, labor, human rights, or global issues
• Athletes have a responsibility to know what’s
going on with the business they endorse
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What Businesses Look
for in an Endorser
• Positive, charismatic, trustworthy image
• A celebrity most consumers know
• A celebrity whose career is in process (not
retired)
• Presents few risks
• Believable relationship with the product
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Get with a partner
• Find five athletes/celebrities and list the
product(s) they endorse
• For each of the five, explain why you feel
the company they endorse is a good or
bad choice for the athlete/celebrity and
why
• Don’t forget, endorsements are different
than sponsors, so do your research!
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