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Chapter 3 Marketing Principles Applied to Sport Management. What Is Sport Marketing?. Create demand Obtain the best possible understanding of what consumers want Includes the marketing of products, such as equipment, apparel, and footwear;

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chapter 3 marketing principles applied to sport management
Chapter 3

Marketing Principles Applied to Sport Management

what is sport marketing
What Is Sport Marketing?
  • Create demand
  • Obtain the best possible understanding of what consumers want
  • Includes the marketing of
    • products, such as equipment, apparel, and footwear;
    • services, such as skill lessons or club memberships; and
    • entities, such as leagues, teams, or individuals
evolution of sports broadcasting
Evolution of Sports Broadcasting
  • From pure, factual reporting aimed at sports fans to sport entertainment aimed at masses
  • Roone Arledge: ABC Monday Night Football; combined entertainment and sport
  • Success of sports in prime time
  • ESPN, ESPN2, ESPN Classic, ESPN News, ESPN Zone,

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sport sponsorship
Sport Sponsorship
  • Sponsorship:
    • The acquisition of rights to affiliate or directly associate with a product or event for purpose of deriving benefits related to that affiliation
  • Albert G. Spalding:
    • Use of the word official
  • Mark McCormack:
    • Built IMG through golfer Arnold Palmer
  • Nike & Air Jordan;
    • Packaging of the Nike brand, product, advertising, and athlete into one personality
product extension and promotion
Product Extension and Promotion
  • Bill Veeck:
    • Team must provide reasons other than the game itself for people to attend & support franchise
    • Creating the greatest joy for the greatest number of people
    • Pleasurable attending experience
    • Create conversation
research in sport marketing
Research in Sport Marketing
  • Matt Levine:
    • Credited with formalizing customer research in sport industry; audience audit, intercepts, focus groups
  • Pass-by interviews:
    • On-site interviews in heavy traffic areas like malls;
    • San Jose Sharks logo and colors changed as a result of pass-by interviews
the marketing mix
The Marketing Mix
  • Controllable variables that company puts together to satisfy a target group
  • 4 Ps:
    • Product (actual event/experience),
    • Price (depends on value or perceived value),
    • Place (preselling and exceptional locations),
    • Promotion (advertising, personal selling, publicity and sales promotion)
  • Identifying subgroups of overall marketplace based on age, income level, ethnicity, geography, and/or lifestyle
  • Ethnic marketing:
    • Growth of Hispanic population, ESPN Deportes
  • Generational marketing:
    • Generation Y and action sports
fan identification
Fan Identification
  • The personal commitment & emotional involvement customers have with sport organization
  • Enhanced long-term loyalty within sports fans
  • Sponsorship opportunities due to ability to tap into strong emotional connection between a fan and his/her sport team


relationship marketing
Relationship Marketing
  • Aids in fostering identification with sports teams
  • Begins with customer and encourages integration of the customer into the company
  • Builds relationships through communication, satisfaction, and service
  • Examples:
    • Loyal fan gift rewards, special access to players, and special access to information
service quality
Service Quality
  • Ability to provide consistent high-quality service is becoming a source of competitive advantage for firms
  • Aftermarketing:
    • Customer retention activities for customer after purchase
  • Many choices available to customers
  • Best plan for retention is to ensure that fans become “raving fans”
key skills
Key Skills
  • Oral & written communication
  • Computer capabilities
  • Data analysis
  • Personnel management
  • Sales
  • Education
  • Understanding of the sports product


current issues cost of attendance
Current Issues: Cost of Attendance
  • Drastic increase in cost of attending MLB, NBA, NHL, or NFL game
  • Increasing evidence that sport fans are not willing or able to pay such prices
    • do not see the value of attending a game
  • Significant challenge for sport marketers is to develop relationship marketing strategies
  • Key challenge for anyone in team sport marketing will be increasing revenues for sport teams
current issues database marketing
Current Issues: Database Marketing
  • Creating a database that includes consumer names, addresses, and other demographic information
  • Managing database by developing & delivering integrated marketing programs
    • including promotions and sales offers to targeted consumer segments
  • Database marketing is often an integral factor in a company’s decision to sponsor an event
current issues cluttered marketplace
Current Issues: Cluttered Marketplace
  • Numerous & varied entertainment options are available to a consumer with leisure time
  • Added technological options for the next generation of sports fans
  • Marketplace cluttered for sponsors:
    • Rise in number of athletes & events, increase in number of advertising opportunities available
  • Future:
    • Heightened focus on marketing mainstream sports to youth; increased challenge for sports entity to demonstrate how sponsor will benefit from a sponsorship
current issues image
Current Issues: Image
  • Development & cultivation of a positive image is becoming increasingly important in sport marketing
      • Cluttered marketplace: Imperative that corporations identify sports, events, or athletes that have unique images
      • Corporate and athlete ethical scandals
  • Result:
    • Corporations more discerning in ways that they spend their sponsorship & endorsement dollars; may now spend more on nonprofit organizations and causes