Sports Management

Marketing

Marketing

The Process of planning, pricing, promoting, selling and distributing products to consumers and businesses.

Types of Traditional Marketing Products

Ideas, Goods, Services

Types of Sports Marketing Products

Ideas, Goods, Services Entities

Demand

What a marketer needs to successfully create

Two Thrusts of Sport Marketing

Marketing sporting products and Marketing other consumer products

4 Historical developments in Sport Marketing

Evolution of Sports Broadcasting, Product Extensions/Promotinal Strategies, Growth of Sport Sponsorship, Birth of Research in Sport Marketing.

Roone Arledge

ABC executive who saw that sports reconized in prime time had to be more than a sport, but also ENTERTAINMENT!!

Arlede's 3 sports announcers

Howard Cosell, Keith Jackson, Don Meredith

Howard Cosell

Sport Journalist (one of Arlede's announcers)

Keith Jackson

Voice of college football (one of Arlede's announcers)

Don Meredith

Former NFL star (one of Arlede's announcers)

Albert Spalding

Early pioneer in sport sponsorship

Mark McCormack

Created the first sport marketing agence called IMG in the 1960s

Product

Choosing what to sell

Price

How much will be exchanged for the product

Marketing Mix

The controllable variables a company puts together to satisfy a target group.

The Four P's of Marketing

Product, Price, Place, Promotion

Place

Getting it into the consumer's hands

Promotion

How the customer will be told about the product

Veeck's 3 Philosophies

People want to be entertained, Promotions must create conversation afterwards, People want a great atmosphere

Sponsorship

The acquisition of rights to affiliate or directly associate with a product or event for the purpose of deriving benefits related to that affiliation.

Air Jordans

An example of sport sponsorship growth

Cluttered Marketplace

Increasingly difficult for sponsors to be recognized and achieve the enefits of sponsorhip. (sponsorship may not benefit company)

Mass Marketing

When an organization markets its products to every possible consumer in the marketplace

Segmentation

Process of identifying subgroups of the overall marketplace based on a variet of factors.

Target Market

A subgroup of the overall marketplace that has certain desirable traits

Two Popular bases for segmentation in sport Marketing

Ethnic Marketing and Generational Marketing

Ethnic Marketing

Focus on Hispanics through radio broadcasts and web sites in Spanish (ESPN Deportes)

Generational Marketing

Focus on Generation Y (born 1977-1996)

What trends exist with respect to privatization in facility management?

Privatization is moving management of facilities from the public sector to private companies or organizations. Private owners, but they outsource. Management tasks. Started with professional and lead to college, minor league, and then other countries. Some high school facilities are starting to do it. Used to maintain safe and enjoyable environment.

What are the general responsibilities of a facility director, operations manager, and event coordinator?

-Director: Responsible for overall administration. Developing operational and strategic plans, preparing the financial statements, and budgets for approval, anticipating problems and finding a solution. Hiring and administrative support for division managers and they must follow guidelines.
-Operations manager: Personnel, procedures, and activities are contained in this position. Include, Registration, lodging, medical services, communications, merchandising and concessions, transportation, signage, medals and awards, and results. Also includes defining roles and responsibilities of each coordinator. Needs to communicate with all areas of personnel.
-Event Coordinator: Providing specific venue and equipment needed by representatives. They need to transport, assemble, erect, and store equipment while establishing procedures. Key is maintaining the venues and equipment. Also designs a work order.

How is revenue usually divided between a facility and representatives of an event?

Boilerplate is used to contract the addresses under specific terms. Normally they used a prearranged percentage known as a split to divide sale of tickets, merch, and concessions. These are critical factors in establishing cost.

What is the difference between general admission and reserved seating? What are the benefits and drawbacks associated with each?

-General Admission: First come, first served. Could be fatal. Gaining front row.
-Reserved: Specific seating, section, row, and seat. Easier to control with ushers. Fewer problems.

What is "festival seating"? What are the benefits of using festival seating? What are problems associated with festival seating?

A type of GA seating but no actual seats exist, shoulder to shoulder in an open floor space. You can sell more tickets, but it potentially deadly and continues to be controversial.

How is the Americans with Disabilities Act relevant for event and facility management professionals?

The act caused facilities to have signage, restrooms, telephones, parking, and shower stalls. Also needed to develop a plan of evacuation. "Reasonable accommodations."

When did professional team sport begin in the United States?

Baseball, 1869 Cincinnati Red Stockings.

What was the significance of the Sports Broadcasting Act of 1961?

Major broadcasting channels were not allowed to do individual teams anymore and had to be done league wide. Gave them an exemption in antitrust law, granting them rights to negotiate fees collectively with networks.

What is meant when we say that "interdependence" exists in professional sports leagues?

Teams depend on each other to stage the games that constitute the product. NFL licensed merchandise increases revenue for all teams. All the members make sacrifices and concessions for the long-term benefit and growth of the league.

What is the significance of MLB's antitrust exemption?

The exemption prohibited companines from creating a monopoly. This gives consumers the ability to have multiple choices instead of just one. This gives baseball teams leverage over the cities in which they operate.

What is the importance of collective bargaining in team sport?

Negotiate work term between labor and management. All active league players are in bargaining unit and are laborers, while negotiation and bargaining wit the owners tends to be management.

When did free agency begin and what have been the effects of free agency in professional sports leagues?

Free agency began in the 1970's to agree to a certain mount of service to a team, to sell their services, and move from one team to another. Needs to be passed by CBA. (Collective bargaining agreement)

When and why were salary caps created in pro sports? How does a salary cap differ from a luxury tax?

Agreements made collectively between labor and management to establish a league wide payroll. Typically a set percentage that the team cannot overpass.
Luxury tax is forced upon teams that go over salary budget, because they are overpaying for something they desire as a luxury.

What is the purpose of a draft in professional sports?

Equitable system for distributing new talent among all league members. Poor records have advantage over winning records. Football and basketball have fewer players being drafter so more free agents may join a team.

What development has had the greatest influence on the popularity of sport, the escalation of salaries, and the increase of corporate sponsorship in sport?

Television has increased corporate involvement in professional sport more. Revenue, TV enhances enjoyment, and increase teams that can charge for sponsorships.

What are the four main sources of revenue in professional sport?

Media Contracts, Gate Receipts, Licensing and Merchandising, and Sponsorship are the four main sources of revenue.

Which leagues allow teams to negotiate local television contracts?

MLB, NBA, and NHL negotiate for regular season games.

How has the importance of gate receipts as a source of revenue in professional sports changed since the 1950s?

Home team retains the majority of the gate receipts, but a portion is given to the league.

What is a "royalty"?

A royalty is a percentage of the selling price for each item sold by the manufacturers.

How do professional sports leagues/teams derive revenue from sponsorships?

Signage in the stadium, or visible on television, seeking new tech savvy inventions.

Jobs in professional sports typically fall into what two categories? What is the nature of each of these categories?

Player Personnel includes medical, coaching, video, stadium staff, and players. Businesses positions include ticket sales, corporate sales, advertising, promotion, and community/media relations, coordinating.

What has been occurring in MLB with respect to the gap between high and low-revenue teams?

Hard for teams demographically to acquire the best players on the field and in the long run it may lead to a decrease in overall fan interest.

What is the basic formula for determining profit?

Profit= Total revenue - Total costs P(x)= R(x)-C(x)

What proportion of college athletic departments produce revenues that exceed costs?

16%

What is "scarcity" and how is the concept of "scarcity" relevant to the study of economics?

The basic economic problem facing all institutions, including sport. A sport product is considered scarce if people want more of the product than is freely available for consumption. Think of how many treadmills are demanded and how many they can purchase. Managers have a maximum quantity willing to devote.

What is the law of demand? What is the law of supply?

-Demand: Consumers will demand less of a product as it's price increases and more of a product as it's price falls.
-Supply: Suppliers will increase production as the price of the product increases and decrease production as the price falls.

What is a market surplus? What is a market shortage?

-Surplus: A price at which the quantity supplied of a product is greater than the quantity demanded.
-Shortage: A price at which the quantity demanded of a product is greater than the quantity supplied.

What have economic impact studies found about the impact of sporting events?

Analyses of how expenditures on sport teams, events, or facilities economically affect a specific geographical region. They help in measuring the increase in revenues, tax dollars, and jobs attributable to a sport event or facility. For example, how hosting a super bowl affects a city.

What is a balance sheet? What is an income statement?

-Balance Sheet: Reflects the financial condition of the organization on a particular DATE.
-Income Statement: Provides the financial results of the organization's operations over a specific PERIOD OF TIME.

What are the four main sources of revenue unique to sport organizations?

Game attendance, media rights, sponsorships, and licensed merchandise.

What events of 1972 led to changes challenging the ideal of amateurism in the Olympic games?

These games were shown that Germany was trying to come back from their peril in the 1936 Olympics. But did not really work because 11 Israeli Olympians were killed by German police officers. This event altered the safety and security. Also invented title 9.

How were the 1984 Los Angeles Olympics notable as a step in the games "going corporate"?

Allowed for sponsorships to use the Olympic rings and this touched off a sport marketing and event management revolution.

How has the sport of soccer expanded globally since the early 1990s?

In '94 the US successfully hosted the World Cup and despite scandals, it expanded globally. US soccer was restarted with the MLS league in '96. Expanded from traditional roots in Europe and South America to Asia, North America, and Africa.

How has the recruitment and development of elite athletes developed globally in recent decades?

Now teams can recruit top players from other countries nontraditional locations. It also continues to broaden what international sport means. Leagues use influence of these players to market to new audiences at home while expanding their team brands through the sale of broadcast rights, merch, and product extensions overseas.

How did sponsorship conflicts lead to a public relations battle at the 1992 Summer Olympics?

Michael Jordan covered up the Reebok on his warm up because he was sponsored by Nike. Now, athletes are required to wear what the Olympics give them.

How is the concept of "ambush marketing" relevant to the Olympic games?

A tactic whereby a company attempts to undermined the sponsorship activities of a rival that owns the legal rights to sponsor an event; intended to created the sense that the ambusher is officially associated with the event. Liking images of sports or athletes to the host city, but not actually saying Olympic or Olympic games.

When and where are the Paralympic Games held?

They happen two weeks after the Olympic Games and are held in the same place.

What is the Court of Arbitration for Sport?

The CAS mediated sport related disputes that cross national boundaries, such as drug testing.

What are economies of scale and economies of scope?

-Scale: Savings originating from the mass production of goods and services. (Increasing of scale operations.)
-Scope: Maximization of resources used throughout an organization. (The number and variety of products and services a company offers and the market it serves.)

What are the three dimensions of organizational structure? What features are associated with each dimension?

-Formal system of task and authority relationships that control how people coordinate their actions and use of resources.
-Formal: This is what we typically see when we examine an organizational chart. These cannot control informal relationships.
-Informal: These relationships operate simultaneously within and discuss everything.

With respect to complexity, what is the difference between vertical, horizontal, and spatial complexity?

-Vertical: Evidenced by the number of levels that exist between the top executive in the organization and the lowest positions and units in the hierarchy.
-Horizontal: People on the same level communicating effectively.
-Spatial: Refers to the amount of geographical locations in which an organization operates.

How are the dimensions of organizational structure related to one another?

More more more! Less less less!

What are the qualities associated with simple structure? What type of sport organization might demonstrate a simple structure?

Simple Structure: This is suitable for all small organizations that have two major parts, top management and technical core. This would operate like a small local sport club.

What are the qualities associated with a machine bureaucracy design? What type of sport organization might demonstrate a machine bureaucracy design?

This is appropriate for a sporting goods manufacturer because the have high levels of specialization, standardization and centralization. Machines and tech support staff are important.

What are the qualities associated with a professional bureaucracy design? What type of sport organization might demonstrate a professional bureaucracy design?

This is important technical core and administrative support staff with a limited technical support staff, middle management and top management. Appropriate for national sport organizations in which professionals are responsible for products or services, such as coaches, sport psychologists, and professional administrators.

What are the qualities associated with an innovative design? What type of sport organization might demonstrate an innovative design?

Allows greater flexibility and not found in entrepreneurial organizations. Climate for creativity or developing the product or service. Marking or ad agency with innovative design.

borrowed equity

using the appeal of an event to market a product.

exchanges

transaction between a producer & consumer.

producers

an individual that supplies a product or service.

consumers

an individual that uses a product or service.

sports marketing

the application of marketing principles to sports and nonsports products through sports

sports

a source of diversion engaged in for pleasure.

marketing of sports

marketing principles used to market a team.

marketing thru sports

marketing of a non-sports product during a sporting event.

sports agent

intermediary that markets talent and determines an athlete's worth in a market.

sports intermediary

organization that markets an event.

amateur

an athlete which is NOT monetarily paid.

audience

all individuals at or exposed to an event.

behavioral segmentation

segmentation based on rate of use.

consumer

an individual which uses a product or service.

demographics

segmentation based on measurable statistics.

customer

an individual that makes a purchase.

gate receipt

total money from ticket sales for an event.

geographics

segmentation based on area, region, or climate.

market segment

separating consumers into smaller groups.

niche market

a relatively small market with specialized need.

organized sport

a sport which is overseen by a sanctioning body.

professional

an athlete which is monetarily paid for performance.

psychographics

segmentation based on personal interest and activities.

sport

a source of diversion or activity engaged in for pleasure.

stadium as place

simultaneous production & consumption of sports events at a venue