Chapter 1
Introduction to Sports
Marketing
McGraw-Hill/Irwin
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
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Broad Marketing Domains
• Primary Focus of Marketing Efforts
– Marketing through Sports
– Marketing of Sports
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Marketing Through Sports
• Traditional Strategies
– Sports as a Marketing Platform
• Reaching Similar Target Market
• Sports Incorporated within the Marketing Mix
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Product
Distribution (Place)
Price
Promotion
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Marketing Through Sports
• Sponsorship Strategies
– Traditional
• Coca-Cola and the Olympics
– Venue Naming Rights
• AT&T and AT&T Park (San Francisco Giants MLB
Stadium)
– Licensing
• Anvil (t-shirts) and NFL (Super Bowl logo shirts)
– Endorsements
• Tag Heuer (Watches) and Tiger Woods
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Marketing of Sports Products
• Examples of “Sports Products”
– Access to Spectator Sports Events
• Tickets or Media-based access to the British Open
– Access to Participation Sports Venues
• Membership to Gold’s Gym
– Sporting Goods and Apparel
• Nike Golf Clubs and Golf Shirts
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Spectator Sports
• Drop Figure 1.2 from top of page 5 here
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Local Events
• Draw Fans from Small Geographic Area
• Promote Using Local Media
• Examples
– Minor League Team
– High School Sports
– Local Amateur Competitions
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Regional Events
• Little National or International Interest
• Marketers Attempt to Move Event Up
• Examples
– Most Collegiate Sports Teams
– (Most) Marathon Races
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National Events
• Large Portion of One or Two Countries
• Often Large Media Presence
• Examples
– Stanley Cup Playoffs (Ice Hockey)
– BCS (College Football) Championship Game
– NCAA Final Four (College Basketball)
– The Ashes (England & Australia Cricket)
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International Events
• Appeal Transcends National Borders
• Large Media Presence
• Venue often Shifts Among Countries
• Examples
– Ryder Cup Golf Tournament
– World Cup of Rugby
– Wimbledon Tennis Championships
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Global Events
• Broadcast to Global Audience
– Significant Rights Fees Paid by Broadcasters
• National Pride often a Consideration
• Few Events in this Top Category
• Examples
– Olympic Games
– World Cup of Soccer
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Participation Sports
• Market the Idea of Participating
– Play more Golf
– Engage in More 10-Pin Bowling
• Market Venues
– Build and Market a New Golf Course
– Building Bowling Facilities in Casinos
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Most Popular Participation Sports
• Drop in First Part of Table 1.1 (Page 8) –
However many lines fit while providing
ease of reading – maybe top 5 to 8
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Sporting Goods and Apparel
• Sporting Goods – Equipment
– Golf Clubs, Footballs, Exercise Equipment
• Apparel – Clothing
– Participation-Based: Softball Uniform
– Fashion-Based: Logo Shirt
• Category Will be Broadened in Chapter 2
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Why Teach Sports Marketing?
• Huge Economic Impact
• Little Focus on Sports Industry in Curricula
• More Emphasis on the Bottom Line by
Sports Entities (e.g. University Football)
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Evolution: Sports Marketing
• Marketing of Sports Taught First
• Marketing Through Sports Added
• Leisure Emphasis Early
• Leisure and Business Focus Today
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Economic Impact
• Drop In Table 1.2 Here (Bottom of Page
11)
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Components of Economic Impact
• Direct Spending by Consumers
– Tickets, Hotels, Restaurants, Gas, Rental
Cars, Wages Paid to Workers, Participation
Fees (e.g. Ski Lift Tickets; Golf Greens Fees)
• The Multiplier Effect
– Recognizes That Money Turns Over in the
Economy: (Typically between 1.3 and 3
Times)
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The Multiplier Effect
• Drop Box 1.2 In Here
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One-Day Events
• Event may occur over one day, but impact
may cover extended period of time
• NFL Super Bowl
• Indianapolis 500
• Championship Boxing Match
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Multiday Events
• Events encompass 2 or more days
• May be at single or multiple venues
• Examples
– Olympics
– Masters Golf Tournament
– America’s Cup Yachting Regatta
– World Cup of Soccer
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Participation Sports/Recreation
• Local Resident Contributions
– Restaurant, activity-based shopping
• Vacation Expenditures
• Participation Fees
– Tournament entry, rental equipment
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Professional Team or Arena
• Local Wages for Employees
• Tax Revenues
• Expenditures by Visitors
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Aggregate Economic Impact
• Gross Domestic Sports Product (GDSP)
• Total Spent on Sports-Related Goods and
Services in a National Economy in 1 Year
• Difficult to Measure
– Estimate for USA in 2007 was approximately
$277 Billion
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Typical Organizational Chart –
MLB Team
Drop in Figure 1.3 (Page 17) Here
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Career Opportunities
• Internships
– Variety of Positions
– Often Unpaid
– Establish Network of Associates - References
• Sales
– Season Tickets, Group Tickets, Sponsorship
– Suites, General Retail
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Other Career Opportunities
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Advertising & Promotion
Marketing Research
Hospitality
Facilities Management/Venue Operations
Brand Activation
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Other Career Opportunities
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Web Site Manager
Public Relations
Retail Store Operations
Participation Center Management
Agent
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Other Career Opportunities
• Sponsorship Purchasing
– Making Good Decisions
– Investment Decisions
• Sponsorship Evaluation
– Postevent Measurement
– Estimation of Return on Sponsorship
Investment
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Looking for a Sports Job?
• Check out the most recent job postings at:
www.teamworkonline.com
• Register for weekly updates
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Career Trends
• More Jobs
• More Job Applicants
• More International Opportunities
• More Focus on Selling Through Sports
• More Emphasis on Business Aspects
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Closing Capsule
• Aspiring sports marketers should not
confuse it with playing a game. It is a
job, one that demands time, energy,
commitment and knowledge.
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