Sports Management and Marketing Lecture Review

Flashcards covering sports industry segmentation, sales strategies, sponsorship types, negotiation phases, and professional creativity based on the provided lecture transcript.

Priori

Conceptual thinking based on previous experiences and past research to understand what strategies or numbers have historically worked.

Posteriori

A data-driven method of understanding that drives decisions based on primary research, observations, surveys, and interviews.

Demographic Segmentation

A basis for segmentation that identifies consumers based on subsets like $age$ and $gender$ ratios.

Socio-cultural Segmentation

Identifying consumers based on variables such as $income$, $education$, $occupation$, $race$, and $ethnicity$.

Geographic Segmentation

Dividing the market by location, regions, or settings such as $urban$ versus $rural$.

Psychographic Segmentation

Dividing consumers based on their personality, motivations, interests, opinions, and life activities.

Behavioral Segmentation

Segmentation focused on frequency and how often consumers purchase or consume the offered product or service.

Lifetime Sports

Adaptable activities like walking, running, tennis, and golf that individuals can play throughout their life stages.

Discretionary Income

The amount of an individual's income available for spending on non-essentials, which tends to be more plentiful in the $35-55$ age range.

Bachelorhood

A family type characterized by single status and living separate from parents, where consuming sport is primarily driven by socialization.

Honeymooners

A family stage where both partners are working and saving discretionary income for major purchases like a house or car.

Parenthood

A family type considered a key asset for sports franchises due to unique revenue opportunities like family packages and themed game days.

Post-parenthood

A stage where children have left the home, providing parents with a filler of time and an opportunity to use discretionary income for season tickets.

Dissolution

A family stage involving the passing of a partner, where individuals seek companionship and a sense of belonging through sports attendance.

Personal Selling

A sales force method focused on building relationships, capturing attention, and encouraging buyers to take action.

Prospecting

The first task in the selling process which involves identifying potential buyers, generating leads, and qualifying those leads.

Pre-calling

Gathering background information on a prospect to identify their interests, likes, and dislikes prior to making a formal presentation.

Closing (Action)

The task of persuading a prospect to take action by playing on principles of scarcity and high demand.

Follow-up

The final selling phase dedicated to reinforcing a customer's decision to buy and building a long-term relationship of trust.

Direct Response Marketing

The interactive use of advertising media to stimulate feedback and an immediate behavior, such as a call to action or purchase.

In-house Mail

Mailers sent to existing fans that have already been recorded within the organization's software system.

External Mail

Mailers sent to prospective fans found by buying or renting lists from secondary research companies.

Telemarketing

A low-response, intrusive marketing method often tailored for the urgent sell of inventory.

Gate Receipt

The total amount of monetary gain received for tickets at a particular game, contest, or event.

Differential Pricing

A strategy where ticket prices change based on the opponent's strength, brand equity, or the quality of the matchup.

Flexible Ticket Pricing

An offering that allows fans to purchase a lower, pre-determined amount of games, often combining high-draw and low-draw contests.

Coercive Power

The use of threats and punishment by leadership to achieve compliance and maximize employee potential.

Connection Power

Influencing behaviors or attitudes through relationships and networking with individuals in other organizations.

Reward Power

Incentivizing employees through merit raises, commissions, benchmarks, or extra time off to invest them in organizational goals.

Legitimate Power

Power derived from a proven track record, vast experience, and an endorsed history within a particular field.

Expert Power

Possessing superior knowledge or specialized skill sets in a key area that others in the organization may lack.

On Target Earnings (OTE)

A compensation structure where pay is often split, such as $50/50/25+$, between a base salary and performance bonuses.

Commissions

A bonus structure where pay is a percentage based on every single unit sold or the total sales acquired.

Benchmarks

A tier system where an employee's pay percentage increases as they hit specific markings within the corporate ladder.

Merit Raise

An upgrade to a base salary recognized at the end of the year based on the value, hours, and additional responsibilities an individual brings.

Reciprocation

An influence principle focused on making the buyer feel they are getting more than they paid for, such as through concessions.

Authority

Utilizing someone with high-profile stature, expertise, or certification to validate a product or service.

Scarcity

The principle that less supply of a product or limited time to get it results in an increase in consumer demand.

In-kind Payment

A non-monetary exchange of goods or services, such as providing free flights or official equipment, for commercial potential.

Consumer Staples

Essential goods used daily, such as food, clothing, alcohol, and tobacco.

Consumer Discretionary

Luxury items or non-essential services like Disney World or Information Technology that provide an excursion for leisure income.

Brand Recall

A measure of how well fans recognize and remember sponsorship agreements after they leave a sporting event.

Purchase Intentions

An analytical method to see if sponsorship agreements led to a measurable increase in consumption and net revenue.

Naming Rights

A high-investment sponsorship of a venue that can lose market value if there is a lack of continuity or frequent name changes.

Resistance Point

The safety net or ceiling established in distributive bargaining representing the furthest a negotiator is willing to go.

Target Point

The preferred price or the true evaluation of a trade or purchase during the negotiation process.

BATNA

Best Alternative to a Negotiated Agreement; the most favorable situation planned if a deal cannot be reached.

Exploding Offers

Pressured negotiation tactics involving tight deadlines or additional items thrown in to force an agreement.

Revelation

A type of creativity defined as the spawning of a sudden idea or concept.

A-Z Effect

A personal branding concept where $Attitude$ equates to $100\%$, quantitatively surpassing both $Knowledge$ ($96\%$) and $Hard Work$ ($98\%$) on the scale.