Using Sports to Market
Products
Lesson 4.1
Women of Soccer
Marketing Products through sports
Using Sports to Market Products
• Market to your Audience
– Wide range of demographic groups enjoy
sports
• Power of Emotional ties
– People get emotional feelings toward
a sport or an athlete
• Women on the Scene
– Women spend 5 billion a year
on sports wear
Good market to get into
http://www.sportsmarketing20.com/video/spons
orship-in-60-seconds-rtr
What is a Brand
• The name word or words, symbol or design
that identifies the organization and its
products .
• Brand name- word, letters, or numbers
representing the brand that can be spoken.
– “Gatorade” “Los Angeles lakers”
“The brand is a promise of the value you'll
receive.”
Branding Terms
• Trade name- legal name of the company.
– Nike, Reebok
– Registered brand names and trade names
with Patent office becomes a trademark
• Brand Personality- Attaching human traits
to a brand
– Nike creates a “winning mentality” with star
athletes
– Skechers - creates a cool hip brand
• Branding builds customer loyalty
• Create an image (personality) for the
product
• Delivers the message clearly
• Confirms your credibility
• Connects your target prospects
emotionally
• Motivates the buyer
Brand Equity
• The value that a company realizes from a
product with a recognizable name
compared to its generic equivalent
• Consumers are willing to spend more to
buy Coca Cola rather than the store brand.
Steps to develop equity
1) Develop
2) Link
3) Help
Types of Brand and Strategies
• Manufacturing brands
• Intermediary brands
• Generic brands
Manufacturing Brands
• Owned by the producer of the product
• Strategies used
– Multi-product branding
• Company uses one name for all their products.
(Nike hockey, running, golf)
– Multi-branding
• Each product in a product line has a distinctive
name. P & G makes: Secret, Old Spice , Sure
– Co- branding
• Two companies partners to produce one product.
Intermediary Brands
• Carries a name developed by the retailer
or wholesaler. Sell products to stores with
their own private labels.
– Cabela & Gander Mountain
Developing a Brand Name
•
•
•
•
•
Simple
Offer a benefit
Different & positive
Reflect an Image
Unregistered Name
Sponsorship
Lesson 4.2
Sponsorship
• Sponsor- a person, organization , or
business that gives money or donates
products in exchange for public
recognition.
“This half-time
performance is
brought to you by…..”
“AT&T® Player of the
Game…..”
“American Airlines®
Arena”
Let’s Sell Some Wheaties
• The Wheaties Brand Has A Long History
of Using An Endorsement Strategy to
Influence the Demand for Its Cereal
www.wheaties.com/history/champions_list.aspx
Sponsorship & Endorsements
LESSON 8.3
Why do companies sponsor?
 Increase brand loyalty
 Create awareness and visibility
 Change, enhance or reinforce image
 Drive retail traffic
 Drive sales and profits
 Showcase community responsibility
Brand Awareness- the ongoing effort of sponsors and
advertisers to keep their brand or product at the
forefront of fans’
minds
Copyright © 2011 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.3
Why do companies sponsor?
 Display brand attributes
 Recruit employees and entertain clients
 Create merchandising opportunities
 Build company awareness
 Differentiate products
 Associate with particular lifestyles
Copyright
© 2011 by Sports Career Consulting, LLC
Kodak
• Their camera & film sold
exclusively at Olympics
• Name included in program
• Receive positive image &
increase sales
• Kodak stores have displays
featuring Olympics
• Offer a contest or
sweepstakes
• Generate traffic
Sponsorship & Endorsements
LESSON 8.3
Coca-Cola is a company that has successfully
branded their products on an international scale
IEG estimated that Coke spent roughly $600
million on their sponsorship of the 2010 FIFA
World Cup in South Africa
Copyright
© 2011 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.3
Coca-Cola is a company that has successfully
branded their products on an international scale
As a result, Coke’s corporate logo is
recognized by 94% of the world while the
Olympic rings are recognized by only 92%
Copyright
© 2011 by Sports Career Consulting, LLC
Types of Sponsorship
•
•
•
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Signage
Entitlements
Facility entitlements
Product exclusivity
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Types of Sponsorships
1. Signagesigns, floorboards, scoreboards, rotating
electronic screens
Premium sponsors
2. entitlements – one sponsor for the entire
event NASCAR signed 10 yr contract with
Nextel, NEC invitational, Sony Open,
Nissan Open John Deere Classic
3. Facility Entitlements- Purchase the
promotion rights for the entire stadium
Types of Sponsorship
4. Product Exclusivity- only your product can
be old if you purchase the exclusivity
– Only Coca Colas drinks can be sold at
Olympic games , only Visa is taken as a form
of payment,
Types of Sponsorship
Signage
Entitlements
• Is any kind of graphic
created to display
information to a particular
audience
• Signs, floorboards,
scoreboards, rotating
electronic screens
• Are the association of a
company’s name with the
name of an event or
facility in exchange for
money
• PGA- The Buick®
Invitational, The Outback
Steakhouse® Pro-Am and
The Wachovia®
Championship, NEC
invitational, Sony Open,
Nissan Open John Deere
Classic
35
Facility Entitlements
• Occur when a company purchases the
promotional rights to an entire stadium
• Reliant® Stadium in Houston, Heinz®
Stadium in Pittsburgh and Lucas Oil®
Stadium in Indianapolis
• Offers publicity when any event is held
Raymond James Financial®, the stadium entitlement
sponsor for the hosting venue of Super Bowl XLIII in
Tampa Bay amassed an overall exposure value of
$37.3 million from the media coverage leading up
to and following the big game.
36
Product Exclusivity
• Occurs when only one product in a
product category is approved for
sponsorship
• Contract prevents other companies from
advertising or selling their product.
• Coca-Cola® is the official drink of the
Olympics
• Kodak® is the official camera of the
Olympics
37
Endorsements
4.4
• An endorsement is a
statement of approval of a
product, service, or idea by a
celebrity to promote the
company and the company’s
products
• Someone everyone recognizes
• Someone with few risks and a positive
image
• Someone who is believable
• Successful career
• Demographic match
• Similar qualities to the product
In 2008, Dallas Cowboy quarterback Tony Romo
signed a five-year, $10 million endorsement
deal with STARTER®, which is believed to be the
largest footwear and apparel deal in NFL® history.
Factors Impacting
Endorsement Effectiveness
• Endorser:
–
–
–
–
–
–
–
–
–
Is a High Achiever
Has Believability/Credibility
Is Known
Is Likable/Popular/Admired
Is Recognizable
Provides Ease of Recall
Is Congruent with Target Market
Is Physically Attractive
(Provides Prospect for) Continuity
Example Endorsements
• A few of the athletes Nike® has endorsed
include Tiger Woods, LeBron James and
Serena Williams
• Hanes® is endorsed by Michael Jordan
• Canon® has an endorsement deal with
Maria Sharapova
• Peyton Manning has an
endorsement agreement
with DirectTV®
42
Guidelines to meet:
• Reflect an honest opinion.
• Endorser must have real experience
• May not contain any deceptive or
misleading statements.
• Endorser must use and continue to use
product
• If product changes, company must inform
endorser
Disadvantage
I use
Sara Lee
Gatorade
McDonalds
Nike
Rayovac
MCI
Advantages & Disadvantages
• Consumers buy more • Very Expensive
when celebrities
• Endorsing Multiple
endorse it
product produces
• Believe celebrities
indifference
over common person. • Negative publicity of a
• Pay more attention to
fallen celebrity
celebrities on TV/Print
Tiger Woods
• But the private conduct - or misconduct of Tiger Woods has brought with it
potentially devastating public
consequences to the sport of golf he has
come to dominate, consequences that
could add up to hundreds of millions of
dollars.
• Lost 50 million in endorsements
• Image Clause- contracts are
released if your image is tainted
due to law or athletic
performance
Tiger Sponsors
$130 Million 08’
Consequences
Tiger Woods commercials were pulled during is fall from grace
revelations. For over 6 months his commercials were not
shown even the Chevron World Challenge, which he hosted
since 2001.
Benefits of Endorsements
Sports
Organizations
Mutual Advantages
Companies
Profit
Reinforce
image
Build team
spirit
Publicity
Build presence
through
merchandise
Revenue
Brand
awareness
Reach a new
audience
50
Risk of Sponsorship
•
•
•
•
•
Ambush Marketing
Sponsorship Clutter
Guilt by Association
Strike – You're Out
A Losing Streak
LESSON 8.3 REVIEW (ANSWERS)
Sponsorship &
Endorsements
1) Understand why a company would
engage in sponsorship
Companies typically use sponsorship as a
vehicle to:
 Increase brand loyalty
 Create awareness and visibility
 Change or reinforce image
Copyright
© 2011 by Sports Career Consulting, LLC
LESSON 8.3 REVIEW (ANSWERS)
Sponsorship &
Endorsements
1) Understand why a company would
engage in sponsorship
Companies typically use sponsorship as a
vehicle to:
 Drive retail traffic
 Drive sales
 Showcase community responsibility
 Display brand attributes
 Entertain clients and hospitality
 Recruit and retain employees
 Create merchandising opportunities
Copyright
© 2011 by Sports Career Consulting, LLC
LESSON 8.3 REVIEW (ANSWERS)
Sponsorship &
Endorsements
1) Understand why a company would engage
in sponsorship
Companies typically use sponsorship as
vehicle to:
a
 Build company awareness
 Differentiate products
 Associate with particular lifestyles
 Business-to-Business marketing
 Distinguish from the competition
 Introduce a new product or service to a
large audience
 Enter new markets
Copyright
© 2011 by Sports Career Consulting, LLC
LESSON 8.3 REVIEW (ANSWERS)
Sponsorship &
Endorsements
2) Explain what criteria must be met for a
sponsorship to be effective
Criteria consistent with effective
sponsorships include:
 Frequent impressions
 Sponsorship leverage/activation
 Company commitment
 Commitment for the right reasons
 Communication
 Fan (consumer) connection
Copyright
© 2011 by Sports Career Consulting, LLC