Sports and Entertainment Marketing - PowerPoint PPT Presentation

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Sports and Entertainment Marketing

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  1. Sports and Entertainment Marketing Sponsorships and Endorsements

  2. Sponsor • A business, person, or organization that finances a sports or entertainment entity • Financing can be in the form of money, products, equipment, services or any combination of the four

  3. Sponsorship • Financing of a sports or entertainment entity (athlete, team, concert, or event) by a business in return for recognitionaffiliation

  4. Sponsorship

  5. Reasons for Sponsoring SEM Events • Increase sales and profits through affiliation • Increase market sharefor existing products and services • Introduce new productsor services • Increase brand awarenessand company image

  6. Reasons for Sponsoring SEM Events • Enter and reach new target markets • Build and maintain relationships with customers • Build and maintain goodwill within the community • Entertain clients, employees, or potential customers

  7. Types of Sponsorships • Barter Sponsorships • Company doesn’t pay for the sponsorship solely with monetary compensation • Example: Sponsoring a little league team in returnfor company name/logo on the jerseys

  8. Types of Sponsorships • Barter Sponsorships

  9. Types of Sponsorships • Endorsements • Also called testimonials • Personal recommendations regarding the use or quality of a good or service • Consumers are more likely to purchase something if a celebrity endorses it

  10. Types of Sponsorships • Naming Rights • Contractual agreements between a sponsor and a venue or event • Company will sponsor a sports or entertainment facility or event • In return, company’s logo sill appear in affiliation with the facility or event

  11. Personal Services Agreements • Contracts between a company and a celebrity for the endorsement of a good or service; keeps their image within a brand • Must show up at events • Must wear/drive/use company merchandise Example: Los Angeles Angels, $254 million, 10 year contract for Albert Pujols- when retires from baseball, cannot reconnect with former franchise (Cardinals)

  12. 5 of the Biggest Athlete Endorsement Deals • Tiger Woods • In 2008, he was the highest-earning sports star • $12 million in golf • $110 million in endorsements • In 2005, signed a deal with Nike for $140 million over 7 years • Cheating scandal cost him $22 million • AT&T, Gatorade, and Accenture dropped him • #7 on Sports Illustrated Fortunate 50 list ranking highest earning American athletes

  13. 5 of the Biggest Athlete Endorsement Deals • David Beckham • 2003 Adidas deal earned him $160.8 million and a lifetime contract • 2007 left Real Madrid to play for LA Galaxy • Contract rumored to be worth $250 million • Actual contract was $32.5 million over 5 years, plus endorsements • $20 million Herbalife shirt sponsorship deal • $7.5 million Gillette • Calvin Klein underwear • Unique contract provision allows him the option to buy an MLS expansion franchise at a fixed price whenever he stopped playing in the league

  14. 5 of the Biggest Athlete Endorsement Deals • LeBron James • Endorsement king of the NBA • Contracts with Nike, Coke, McDonald’s, Samsung • 2 x NBA Championships • 4 x NBA MVP • 10 x NBA All-Star • NBA Rookie of the Year • 7-year, $90 million deal with Nike signed BEFORE he played in his first professional basketball game Salary $19,067,500 Endorsements $38,000,000

  15. 5 of the Biggest Athlete Endorsement Deals • Phil Mickelson • Ranked 3rd on “all time money list” of tournament prize money won • In 2010, Phil banked $57 million in endorsements • Callaway, Rolex, Exxon Mobile • Clean personal and professional life • #6 on Sports Illustrated Fortunate 50 list

  16. 5 of the Biggest Athlete Endorsement Deals • Jimmie Johnson • 1st racing driver to become AP Male Athlete of the Year (2009) • Won Driver of the Year 4 times • Topped Forbes.com Most Influential Athletes list for 2 consecutive years (2011, 2012) • Talk about Naming Rights… last year Jimmie raced in and earned $12 million in endorsements • Budweiser Shootout • Subway Fresh Fit 500 • Kobalt Tools 400 • Coca-Cola 600 • Heluva Good! Sour Cream Dips 400 • Toyota/Save Mart 350

  17. 5 of the Biggest Athlete Endorsement Deals • Honorable Mention • Dwayne Wade • $100 million, 10-year contract with Li-Ning in 2012 • Rory McIllroy • $100 million deal with Nike • Maria Sharapova • $70 million, 8-year deal with Nike in 2010 • Derrick Rose • $185 million, 13-year deal with Adidas

  18. One of the Most Successful Endorsement and Branding Deals

  19. Brief Marketing History • Nike has always spent more than double what it spends on advertisements for Promotions • Focus is on creating a “fitness culture” which will naturally lead to company success • Goal is to give a sense of belonging to customers • Nike doesn’t fit into a culture, it creates one • “We are a marketing company, our product is our marketing tool.” – Phil Knight, Founder

  20. Team Jordan

  21. The Campaign Team Jordan Qualifications • Proven themselves in selected sports • Leaders who let their talent speak for them • Play with unrivaled passion • Part of a team and the community

  22. Why Michael? • Michael was the most recognizable athlete in the world • Nike used this to sell merchandise, attract high profile athletes, and gain market share • Jordan Campaign was a main factor in the rise of Nike • Jordan’s image overshadowed all negatives associated with Nike

  23. Air Jordans • Using celebrities to sell products has been an effective advertising strategy for years • In the 1980’s Michael Jordan revolutionized the way shoe’s were sold • In March 1985, the Air Jordan I’s were put on the market • Today there are 18 versions with numerous variations • The Jordan line of basketball shoes has been the most popular shoe line in history

  24. Commercials “Emotions are always hard to explain, but there’s something inspirational about watching athletes push the limits of performance. You can’t explain much in 60 seconds, but when you show Michael Jordan, you don’t have to.” - Phil Knight

  25. Air Jordan Branding • Persuasion • Use peripheral image of Michal Jordan to stimulate a response from an otherwise passive audience • Attitudes • People have a positive attitude toward Michael Jordan and it reflects onto Nike • Michael’s the best, Nike must be the best • Social Influence • Nike reduces the gap between star athletes and everyone else • “I wanna be like Mike”

  26. Trademarks • The Nike swoosh is one of the most recognized logos in the world • Created in 1971 • Phil Knight purchased it as “something to put on a shoe” for $35.00 • “I don’t love it, but I think it will grow on us.” • Represents the wing of the Greek Goddess Nike

  27. “Just Do It” • Represented activities, not just sports • Gave the brand an attitude • Huge economic affects • In 10 years after launch, revenues rose from $877 million to $9.2 billion worldwide

  28. “Just Do It” Branding • Persuasion • Persuades people to get active • Makes brand stand apart from others • Effective! 80% of sold shoes are not used for the activity they were designed for • Attitudes • Symbolizes “cool” • “Just Do It” gives attitude that people can do anything they desire • Social Influence • Influenced American Fitness Phase • Beginning of gyms, fitness clubs, etc.