CHAPTER 2 Marketing Basics

1. CHAPTER2Marketing Basics 2.1 Marketing College Athletics 2.2 Economic Impact of College Athletics 2.3 Amateur Sports CHAPTER 2

2. LESSON 2.1Marketing College Athletics GOALS • Explain the importance of the NCAA and team rankings to college sports. • Define market segmentation. • Discuss the growing market surrounding women’s college athletics. CHAPTER 2

3. Effects of Collegiate Sports • A winning team has economic implications for school, community, region, and state • Fan expectation • Promotion of organization’s goods and services CHAPTER 2

4. Rules and Rankings • National Collegiate Athletic Association (NCAA)—the governing body of most college and university athletic programs • Creates and enforces guidelines and rules • NCAA Corporate Partners CHAPTER 2

5. Stated Purpose of NCAA • Core Purpose • Our purpose is to govern competition in a fair, safe, equitable and sportsmanlike manner, and to integrate intercollegiate athletics into higher education so that the educational experience of the student-athlete is paramount. CHAPTER 2

6. Point to Ponder • Is the Bowl Championship Series Fair? Is it a good way of determining the National Champion in Football? CHAPTER 2

7. BCS Specifics • Among the new policies instituted for 2006 will be these: • 1. There will be five BCS games, rather than four. So ten teams will participate in the BCS, rather than eight. The fifth game will be new BCS National Championship Game, to be in Glendale, Arizona. • 2. The Fiesta Bowl committee will host two BCS games: the traditional Fiesta Bowl on January 1, and the BCS National Championship Game on January 8. CHAPTER 2

8. BCS Specifics-continued • 3. The Fiesta Bowl will move from its longtime home at Arizona State University's Sun Devil Stadium to the new stadium in Glendale. The Sugar Bowl will return home to New Orleans. • 4. In addition to the champions of the six conferences that have annual automatic access, one other conference champion will earn an automatic BCS bid if (1) it finishes in the top 12 in the BCS standings or if (2) it is finishes in the top 16 in the BCS standings and its ranking is higher than that of a conference champion that has an annual automatic berth. Previously, such a champion was eligible if it finished in the top six. CHAPTER 2

9. BCS Specifics-concluded • 5. Notre Dame will automatically qualify for a BCS berth if it finishes in the top eight in the BCS standings. Previously, Notre Dame qualified if it (1) finished in the top six or (2) either finished in the top ten or won nine or more games and a team from Conference USA, the Mid-American Conference, the Mountain West Conference, the Sun Belt Conference or the Western Athletic Conference finished in the top six of the BCS standings. • 6. A team is eligible to be considered for an at-large berth in the BCS if it has won at least nine regular-season games and finishes in the top 14 in the final BCS standings. Previously, teams finishing in the top 12 were eligible. CHAPTER 2

10. Another Point to Ponder • Is the NCAA Basketball Tournament Fair with 64 teams? Is the selection method fair? CHAPTER 2

11. Four Conditions to Join NCAA • Obtains acceditation by the recognized accrediting agency of its region. • Offers at least four intercollegiate sports for men and four for women (one in each of the three traditional seasons). • Complies with all NCAA rules • Cooperates with the NCAA enforcement program and accepts penalties imposed by that program. CHAPTER 2

12. College Team Rankings • Why so much emphasis? • #1 has lingering effects CHAPTER 2

13. Intermission • What is the purpose of the NCAA? Why is a number one ranking lucrative? CHAPTER 2

14. Market Segmentation • Market segment—a group of individuals within a larger market that share one or more characteristics CHAPTER 2

15. Five Elements of Market Segmentation • Geographic segmentation • Demographic segmentation • Psychographics • Product usage • Benefits derived CHAPTER 2

16. Intermission • What is Market Segmentation? Give a college sports example to each element of the market segmentation. CHAPTER 2

17. Women’s College Sports • NCAA • Women’s Enhancement Program • Increased fan support • Marketing opportunities in women’s sports CHAPTER 2

18. What is Title IX? • Title IX, the law protecting against discrimination based on sex, states: • "No person in the United States shall, on the basis of sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance." CHAPTER 2

19. Three Part Test – Title IX • "[T]he Department [of Education] established a three-part test that OCR will apply to determine whether an institution is effectively accommodating student athletic interests and abilities. An institution is in compliance with the three-part test if it has met any one of the following three parts of the test: CHAPTER 2

20. Three Part Test – Title IX • (1) the percent of male and female athletes is substantially proportionate to the percent of male and female students enrolled at the school; or • (2) the school has a history and continuing practice of expanding participation opportunities for the underrepresented sex; or • (3) the school is fully and effectively accommodating the interests and abilities of the underrepresented sex." CHAPTER 2

21. LESSON 2.2Economic Impact of College Athletics GOALS • Understand the benefits of college sports to the home community. • Identify benefits of sponsorship and licensing to a team. • Explain the reasons for realignment of college conferences. CHAPTER 2

22. Benefits to the Community • Good for town business • Hotels • Restaurants • Retailers • Good for stadium business • Food/restaurants • Gift shops CHAPTER 2

23. Sponsorships and Licensing • Sponsorships • Generating revenue • Name-brand apparel • Create goodwill • Licensing • License—the legal right to reproduce a team’s logo in exchange for payment • Protect the use of the name and symbols • Identify and associate logos CHAPTER 2

24. Conference Realignment • Conference—a group of college athletic teams within the same region • Increase revenues • Create new rivalries • Playoff games generate additional revenue CHAPTER 2

25. LESSON 2.3Amateur Sports GOALS • Discuss marketing and sponsoring of amateur sports. • Understand the economic benefits of amateur sports. CHAPTER 2

26. Popularity of Amateur Sports • Amateur athlete—someone who does not get paid but plays for enjoyment, challenge, or both CHAPTER 2

27. Marketing and Sponsoring Amateur Sports • Provides significant income for manufacturers • Minivan and sport utility vehicle • Retro sports jerseys CHAPTER 2

28. Local Promotion of Amateur Sports • Fund-raising charity events • High school athletic teams CHAPTER 2

29. National Promotion of Amateur Sports • Promotion used to elevate the attention of consumers • Lance Armstrong and Subaru CHAPTER 2

30. Economic Benefits • Minnesota’s example • Minnesota Amateur Sports Commission • Create economic development through amateur sports • Create maximum opportunity for sport participation • Establish Minnesota as a national model for the Olympic and amateur sport movement CHAPTER 2

31. Economic Benefits of Specific Sports • Ice skating • Soccer • Basketball • Baseball and softball CHAPTER 2

32. Intermission • What kinds of products might be advertised during ice skating and soccer events? CHAPTER 2

33. Think Critically • List three amateur sports, the target markets for those sports, and marketing strategies for each sports. CHAPTER 2

34. Think Critically • Many families spend hours on weekends watching children play soccer. During the 1996 presidential election year, the phrase “soccer moms” became commonly used in political conversations. What do you think this phrase means? Why would someone running for political office pay attention? CHAPTER 2