Chapter 3 Marketing through Sports Using Mainstream Strategies McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. 3-1 Sports Overlay or Platform • Using Strategic Initiatives to Integrate Sports in Order to Create a Sports Theme or to Reach One’s Designated Target Markets More Effectively 3-2 Traditional Strategies • Employing Target Market and Marketing Mix Initiatives to Achieve that Sports Overlay 3-3 Mainstream Strategies • Using Traditional Strategies in an Effort to Sell Nonsports Products • Mainstream Strategies Are Not Based upon Any Official Sponsorship-Based Relationship with a Sports Entity 3-4 Nonsports Products • Examples of Nonsports Products Often Marketed Using a Sports Platform – Cars (Volvo) – Beer (Fosters) – Colas (Coca-Cola) – Watches (Swatch) – Fast Food (McDonald’s) 3-5 Mainstream Strategies • Nonsports Products Using Traditional Elements of Marketing Strategy – Target Market – Car ad in Golf for Women – Product – Clothing with sports design – Distribution – Restaurant at sports arena – Price – Discounts for bar patrons in uniforms – Promotion – Ad featuring a sports setting 3-6 Target Market Access • Segment the Market • Select Appropriate Target Markets • Identify Relevant Target Markets that Can Be Reached Via a Sports Platform 3-7 Target Marketing Applications Using Mainstream Strategies • Advertising beer during a TV broadcast of a football or rugby game • Luxury automobile marketer featuring golf in its brochures that promote its cars • Marketer of an energy drink using outdoor advertising along a marathon race route 3-8 Incorporating Pricing Decisions in a Mainstream Strategy • Marketer Offers Discounts to Venue Operators in Order to Have its Food or Beverage Products Sold There • Hospitality Industry (restaurants & hotels) Providing Discount Prices for Certain Categories of Athletes or Fans 3-9 Incorporating Product Decisions in a Mainstream Strategy • Packaging Featuring Sports Images • Sports Bar Showing Sports Events on TVs • Hospitality Package Featuring Tickets to a Sports Event (selling hotel rooms) • Credit Card Company Providing Special Access to Tickets for Sports Events • University Offering a Course/Degree in Sports Marketing 3-10 Incorporating Place Decisions in a Mainstream Strategy • Marketer Selling Its Goods and Services at a Sports Venue (Stadium, Arena, etc.) • Marketer Selling Its Nonsports Products at A Retail Store Specializing in Sporting Goods • Intensifying Regional Efforts Where a Sport is Popular 3-11 Incorporating Promotion Decisions in a Mainstream Strategy • Traditional Promotional Mix Components – Advertising – Personal Selling – Sales Promotion – Public Relations / Publicity • Excludes Sponsorship; Sponsorship would Represent a Domain-Focused Strategy 3-12 Incorporating Promotion Decisions in a Mainstream Strategy • Emerging Promotional Tools that Can Be Used to Create a Sports Platform for the Marketing of Nonsports Products • • • • Product Placement Virtual Advertising Hospitality Internet 3-13 Using Advertising in a Mainstream Strategy • Advertise during the Super Bowl • Advertise in a Sports Magazine • Creative Aspect of Ad Features Actors in Sports Setting • Advertise on “Sports Talk Radio” • Advertise on Dorna Boards at Sports Venue 3-14 Using Personal Selling in a Mainstream Strategy • Salesperson Providing Tickets for a Sports Event to Customers and Prospects • Conducting Business on the Golf Course 3-15 Using Sales Promotion in a Mainstream Strategy • Specialty Advertising – Calendar Featuring Marketer’s Logo and a Team’s Schedule • Coupons – Discount Sent Via Direct Mail (i.e. the Coupon Features a Sports Graphic) • Free Sample – Distribute at Sports Venue • Consumer Expo – Display at Golf Show 3-16 Using Sales Promotion in a Mainstream Strategy (cont’d) • Customer Loyalty Program – Credit Cards that Accumulate Points for Benefits • Contests – Chance to Win Event Tickets • Point-of-Sale (POS) Display – Signage that Features a Sports Theme at a Super Market • Premiums – Sports-Oriented Giveaways 3-17 Using Public Relations/Publicity in a Mainstream Strategy • Objective of PR is the Dissemination of Positive Publicity through the Media – Aligning with Sport for a Charitable Cause – Press Release Regarding Marketer’s Support of a Local Athlete 3-18 Emerging Promotional Strategies • Product Placement – Product Featured in a Movie or TV Program Where Brand is Identifiable • Virtual Advertising – Computer-Generated Signage Displayed on the Field of Play during a Televised Broadcast – http://pvi.tv/pvi/index.asp • Internet – Advertise on a Sports Web Site – see http://www.ESPN.go.com • Hospitality – Staff a Tent at a Golf Tournament 3-19 Closing Capsule • Many Marketing Efforts for Nonsports Product Attempt to Influence Consumer Purchase Behavior by Incorporating a Sports Platform (or Overlay) • Mainstream Strategies Involve the Use of the Traditional Elements of Marketing Strategy – Target Markets & the Marketing Mix – to sell Nonsports Products 3-20