Sport Management
Marketing Principles
What is Marketing?
 The process of planning, pricing, promoting,
selling and distributing products to
consumers and businesses.

Marketing is always changing because it must
keep up with trends and consumer attitudes
What kinds of products…?
Types of Products
Traditional Marketing
1. Ideas - politician’s
platform
2. Goods – products
grown or
manufactured; tangible
items with monetary
value like a car or Ipod
3. Services – intangible
items involving a task
like a car wash,
manicure, or movie
theatre
1.
2.
3.
4.
Sport Marketing
Ideas Goods – sporting
equipment, apparel
and footwear
Services – swim
lessons, club
memberships and ball
games
Entities – leagues,
teams and individual
athletes
The Big Picture
People have wants/needs which are satisfied
with products. Marketing creates the demand
for these products.
Good Marketing prompts the customer to see
value in a product  The customer now
wants the product or thinks they need it 
The marketer has successfully created
demand!
Two Thrusts of Sport Marketing
1. 1st Thrust - Marketing sporting products (goods,
services, or entities) to sport consumers.

Marketing sporting apparel, memberships to LA
Fitness, or tickets to a Phillies game
2. 2nd Thrust - Marketing other consumer products
(ideas, goods or services) through sport
promotions.


DuPont attempting to sell more products by
sponsoring the Jeff Gordon racing team
During an election year, the mayor of Philadelphia
showing extensive public support of the Eagles,
Phillies, or Flyers to gain more votes.
Historical Developments in Sport Marketing
4 Historical Developments in Sport Marketing
 Evolution of Sport Broadcasting
 Product Extensions/Promotional Strategies
 Growth of Sport Sponsorship
 Birth of Research in Sport Marketing
Historical Developments in Sport Marketing
1. Evolution of Sport Broadcasting



Sport broadcasting evolved from pure,
factual reporting aimed at sports fans to
entertainment aimed at the masses.
Roone Arledge, and ABC executive,
recognized sports televised in prime time had
to be more than sport, but also
ENTERTAINMENT!
Incorporated this philosophy into ABC’s
Monday Night Football.
Historical Developments in Sport Marketing
1. Evolution of Sport Broadcasting (cont.)

Arledge refused to let owners and leagues
approve announcers. He selected the right
mix of 3 personalities for entertainment
purposes.



Howard Cosell (sport journalist)
Keith Jackson (voice of college football) 
replaced 1 yr. later by Frank Gifford
Don Meredith (former NFL star)
Historical Developments in Sport Marketing
1. Evolution of Sport Broadcasting (cont.)

Arledge instituted:
1.
2.
3.
4.
5.
6.
7.
more cameras
varied camera angles
video highlights of previous day’s games
instant replays
fan mics
sideline interviews
commentary with criticism, wit and humor
Historical Developments in Sport Marketing
1. Evolution of Sport Broadcasting (cont.)
 Arledge wanted the fan sitting at home to
see, hear and experience the event as if
actually in the venue.
 Arledge wanted the fans to become
emotionally involved…even if they didn’t like
the sport, they might still tune in because
they like the program!
The next time you’re watching TV and see a
baseball pitch from the roof of a stadium, or a
coach interviewed before entering the locker
room at half time, who should you think of?
Historical Developments in Sport Marketing
Product Extensions/Promotional Strategies
2.


Bill Veeck is to the actual game what Roone
Arledge was to broadcasting the game.
Veeck recognized the success and profitability
of a franchise can’t depend on the success of
the team to generate capacity crowds…the
team must provide other reasons than the
game for people to attend and support the
franchise.
Historical Developments in Sport Marketing
Product Extensions/Promotional Strategies
(cont.)
2.
Veeck had 3 philosophies:

I.
II.
People want to be entertained – Veeck added a
few simple moments to the game that didn’t detract
from the game (giveaway days, fireworks, theme
nights)
Promotions must create conversation afterwards –
fan goes home…talks about what he saw…get
additional kick out of being able to say he was
there…he wants to go back…other want to
experience it too…valuable word of mouth
advertising!
Historical Developments in Sport Marketing
Product Extensions/Promotional Strategies
(cont.)
2.
Veeck had 3 philosophies:

III.
People want a great atmosphere – Fans will be
loyal if they have clean facilities and a hospitable
atmosphere.
The next time you go to a baseball game and you
get a free baseball cap when you enter the
stadium, who should you think of?
Historical Developments in Sport Marketing
3. Growth of Sport Sponsorship

Sponsorship – the acquisition of rights to
affiliate or directly associate with a product or
event for the purpose of deriving benefits
related to that affiliation. It is not a new
concept…


1852 – first collegiate event, rowing, between
Harvard and Yale was sponsored by a railroad
company.
Coca Cola – Olympic sponsor since 1928
Historical Developments in Sport Marketing
3.
Growth of Sport Sponsorship

Albert Spalding

Early pioneer in sport sponsorship.

Former professional baseball player; parlayed his
fame into what used to be one of the largest sporting
good manufacturing companies in the world,
Spalding.

1st marketer to capitalize on the term “official”;
Spalding became the “official baseball” of the
National League in 1880.

He then marketed his baseball as the “best” because
it was adopted for use by the National League (the
highest level of professional play at that time).
Historical Developments in Sport Marketing
3. Growth of Sport Sponsorship

Mark McCormack  Endorsement Deals


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In the 1960’s…created IMG, the first sport
marketing agency.
First signed Arnold Palmer, who was the most
popular professional golfer at that time.
IMG marketed Palmer’s popularity, ultimately
securing endorsement contracts for him.
The businesses Palmer endorsed, then used
him to promote and sell their products.
Historical Developments in Sport Marketing
3.
Growth of Sport Sponsorship

Nike -  Taking Endorsement Deals to a New Level!

Extremely successful packaging the Nike brand,
product, advertising, and athlete into one
personality.

Achieved when Nike and Michael Jordan created
“Air Jordan”.

Nike experienced disloyalty from some past
endorsers, so they decided to involve the athlete in
the fortunes of the product. Jordan got royalties for
shoe, apparel and accessory sales.

Jordan was enticed with $$ to promote the product.

Result  the most successful athlete
endorsement in history, with over $100 million of
Air Jordan products sold in a single year.
Historical Developments in Sport Marketing
3. Growth of Sport Sponsorship

Nike -  Beyond Endorsement Deals


University-wide Athletic Sponsorship
Agreements – attempt to associate with the best
college athletic programs (University of
Michigan; University of North Carolina). Trend
followed by Reebok and Adidas.
Ambush Marketing – increasing business by
capitalizing on the popularity of an event without
becoming an “official sponsor.”

1996 Atlanta Summer Olympic Games
Historical Developments in Sport Marketing
3.
Growth of Sport Sponsorship
Why Do Businesses Sponsor Sports?



The more a customer identifies with a product the
greater the likelihood the customer will develop a
long and loyal relationship with the product.
People identify with sports; they have a personal
commitment and emotional involvement with sport
organizations. This is called Fan Identification.
Ideally, businesses that sponsor sports hope to tap
into and capitalize on some of the strong emotional
connection between the fan and his team, and
ultimately increase their own business.
Historical Developments in Sport Marketing
3. Growth of Sport Sponsorship
A Current Issue of Today…

Cluttered Marketplace – the marketplace is
“cluttered”…increasingly difficult for sponsors
to be recognized and achieve the benefits of
sponsorship. Sport marketers are
challenged to demonstrate how a sponsor
will benefit.
Historical Developments in Sport Marketing
4.
Birth of Research in Sport Marketing


Customer research involves getting to know the
customer so you can better determine how to create
demand for the product.
Matt Levine was credited with formalizing research in
the sport industry.

Audience Audit - Fill out a questionnaire and get a free
beach towel! Fill out a Visa application and get a free cap!

Focus Group – Discussion groups with 8 to 12 people with
similar characteristics discussing a predetermined sport topic.

Pass-By Interviews – Interviews in heavy traffic areas
such as malls; use a visual aid and assess the interviewee’s
reaction to it (typically a sample of a potential new product)
The Marketing Mix
 Marketing Mix – the controllable variables a
company puts together to satisfy a target
group.
 What are these controllable variables?
1.
2.
3.
4.
Product
Price
Place
Promotion
AKA the 4 P’s of Marketing!
The Marketing Mix
1. Product – choosing what to sell



Marketing sporting goods is like marketing
any other product. The tangible benefits of
the product can be provided and controlled.
Marketing a sport service like an event, or a
sport entity like an athlete or team is more
challenging  little control over the core
product!
Because of the lack of control over the core
product, sport marketers focus on extension
to the core product…Remember Bill Veeck?
The Marketing Mix
2. Price – what is exchanged for the product



Since the sport product (like a game) is often
intangible/experiential, setting the price can
be a challenge  remember, we have little
control over the core product!
Typically, price depends on the perceived
value provided by the product.
Sport marketers must be careful that the
perceived value of the event justifies the
price!
The Marketing Mix
3. Place – getting it into the consumer’s hands



Mainstream products – made at
manufacturing site and shipped to a location
where customers can purchase at their
convenience (products have a “shelf life”).
Sport Events – produced, distributed and
consumed at the same location
(stadium/arena). This product has no shelf
life.
Sport marketers aggressively pre-sell events!
The Marketing Mix
3. Place (continued)
 Location, Location, Location!

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Similarity between mainstream products and
sport events is the importance of location.
McDonalds locates on prime corners of America
to attract customers.
People like to go to Wrigley field because of its
location in a popular North Chicago
neighborhood – same with Fenway Park in
Boston.
Facility aesthetics play an important role also.
Remember Bill Veeck, again?
The Marketing Mix
4. Promotion – how the customer will be told
about the product


Promotion is any form of communication
businesses use to inform, persuade, and
remind people of products.
Different types: radio spots, television spots,
Internet pop-ups, billboards, print ads, direct
mail piece, discount coupons, product tie-ins
and point of purchase (pop) displays.
The Marketing Mix
4. Promotion - how the customer will be told
about the product (continued)


When promoting sport events, the marketer
must consider the unpredictable and
experiential nature of the product.
Since they can’t promise a win (lack of
control over the core product), sport
marketers promote the “good time” to be
had.
The Marketing Mix
4. Promotion - how the customer will be told
about the product (continued)

Sport Promotional Mix
1.
2.
3.
4.
Personal Selling – direct contact, face-to-face
presentation; seller persuades buyer
Advertising – one way communication; pay to
promote products
Publicity – Media exposure that’s free;
Disadvantage: one has no control over what is
written.
Sales Promotion – special activities to increase
sales; includes a customer incentive or
gimmick.
Segmentation
Mass Marketing vs. Segmentation
 Mass Marketing – when an organization
markets its products to every possible
consumer in the marketplace.
 Segmentation – process if identifying
subgroups of the overall marketplace based
on a variety of factors.

How? Market Research…Matt Levine
While sport has a universal appeal, it would be
foolish to market to the entire population.
Segmentation
 Target Market – a subgroup of the overall
marketplace that has certain desirable traits:
1.
2.
3.
Demographic – statistics such as age,
income, ethnicity, gender or educational
background.
Geographic – statistics such as region or zip
codes
Psychographic – statistics such as
preferences or behaviors…values, beliefs,
lifestyle, activities, habits
Segmentation
 Two Popular Bases for Segmentation in
Sport
1.
2.
Ethnic Marketing – Focus on Hispanics
through radio broadcasts and web sites in
Spanish (ESPN Deportes)
Generational Marketing – Focus on
Generation Y (born 1977–1996)


Interested in mainstream and action/extreme
sports
Marketers of mainstream sports are fearful they
are losing you!