Chapter 2 Marketing Through Sports McGraw-Hill/Irwin 2-1 ©2007 The McGraw-Hill Companies, All Rights Reserved Sports Marketing Environment • Two key dimensions – Products • Non-sports products • Sports products – Integration • Traditional strategies • Sports-sponsorship-based strategies 2-2 Non-sports Products • Examples of non-sports products often marketed with a sports platform – Cars – Beers – Colas – Watches – Fast foods 2-3 Sports Products • Broad array of products associated with spectator and participation sports • Examples – Tickets to the World Cup Final – A new golf course – A logo shirt – A pay-per-view boxing match 2-4 Traditional Strategies • Focus on two basic components of any marketing strategy – Target market – Marketing mix (4 Ps) • • • • Product Price Promotion Place (Distribution) 2-5 Sports Sponsorship-Based Strategies • Marketing products through higher level of integration: Sports Sponsorship – Traditional (Coca-Cola & the Olympics) – Endorsements (Pepsi & Shaquille O’Neal) – Venue Naming Rights (FedEx Field) – Licensing (Rival Crock Pots & NASCAR) 2-6 The Sports Marketing Environment Matrix 2-7 Mainstream Strategies • Non-sports products using traditional marketing strategy elements – Target Market – Ad in Golf for Women magazine – Product – Clothing with sports design – Distribution – Restaurant at sports arena – Price – Discounts for patrons in uniforms – Promotion – Ad featuring a sports setting 2-8 Target Market Access • Segment the market • Select appropriate target markets – Identify target market for product reachable via a sports platform – Examples: • Minivan ads featuring kids playing soccer • Investment company ads featuring potential investors chatting during a gym workout 2-9 Target Marketing Applications Using Mainstream Strategies • Other examples: – Advertising beer during TV broadcast of a baseball or rugby game – Luxury automobile ad featuring golf in its brochures that promote its cars – Energy drink ads on billboards along a marathon race route 2-10 Examples of 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 (e.g., golf packages) • Credit card company providing special access to tickets for sports events • University offering course/degree in sports marketing 2-11 Examples of Pricing Decisions in a Mainstream Strategy • Company offers discounts to venue operators to have its food or beverage products sold on site • Hospitality industry (restaurants & hotels) provides discount prices for certain categories of athletes or fans 2-12 Incorporating Promotion Decisions in a Mainstream Strategy • Traditional promotional mix components – Advertising – Personal selling – Sales promotion – Public relations / Publicity • Excludes sponsorship – Sponsorship a domain-focused strategy 2-13 Examples of Advertising in a Mainstream Strategy • • • • Advertise during the Super Bowl Advertise in sports magazines Advertise on sports talk radio Advertise on Dorna boards at sports venues • Creative aspect of ad featuring actors in sports setting 2-14 Examples of Personal Selling in a Mainstream Strategy • Salesperson providing tickets for a sports event to customers and prospects – Possibly ethically problematic • Conducting business on a golf course 2-15 Examples of Sales Promotion in a Mainstream Strategy • Specialty advertising – Calendar featuring marketer’s logo and a team’s schedule • Coupons – Distributed at game or in package • Distribute free samples at sports venue • Consumer expo – Golf show for public 2-16 Examples of Sales Promotion in a Mainstream Strategy (cont’d) • Customer loyalty program – Credit cards that accumulate benefit points • Contests – Chance to win event tickets • Point-of-Sale (POS) Display – Supermarket signage featuring sports themes • Premiums – Sports-oriented giveaways 2-17 Using Public Relations/Publicity in a Mainstream Strategy • Objective of PR is to disseminate positive publicity through the media • Examples: – Aligning with sport for a charitable cause (i.e., cause related marketing) • MLB and breast or prostate cancer awareness – Press release regarding support of a local athlete 2-18 Emerging Promotional Tools in a Mainstream Strategy • Product Placement – Product featured in movie or TV program • Virtual Advertising – Computer-generated signage on field of play • Internet – Advertise on sports web site • Hospitality – Staff tent at golf tournament 2-19 Examples of Place Decisions in a Mainstream Strategy • Selling non-sports goods and services at a sports venue – e.g., foods and beverages • Selling non-sports goods at a retail store specializing in sporting goods – Especially useful for introduction of new product 2-20 Closing Capsule • Many marketing efforts for non-sports product try to influence consumer purchases by using a sports platform • Mainstream strategies use traditional marketing strategy elements–target markets and the marketing mix–to sell non-sports products 2-21