Marketing Principles

Sports Management

Sport Marketing

The process of designing and implementing activities designed to meet the needs and wants of sport consumers through exchange processes

Marketing OF sport

Marketing of sport products and goods, experiences

Marketing THROUGH sport

Tech companies, banks, cars, cereals etc.

The Marketing Mix (the 4 p's)

Product, Price, Place, Promotion and most important but not really included is people as they are the central part of the mix.

The Marketing Mix: Product

What is the product we are actually selling, tangible, intangible, experience that satisfies that consumers wants and needs.
Differentiate the product depending on the audience/demographic group.
□ Change elements of the design
□ Accessible
□ Different prices
□ Different product features
□ Customer service/experience
□ Brand name

Try to identify what the CUSTOMER VALUE in the product is (how does it make them feel, how does it help with your job)

The Marketing Mix: Price

Only accurate if someone is willing to pay that price. Research is usually done as to why certain things are priced differently.

The COST of the ticket is only 1/3 of the expenses to go to a game

The Marketing Mix: Place

Distribution channels that allow consumers to access or obtain the products or services they wish to purchase. Where are people going? How has technology changed?

You want it to be CONVENIENT for those purchasing

The Marketing Mix: Promotion

Promoting of products.

A COMMUNICATION process. Integration of communication process' and public relations activities that communicate, perform, persuade, and motivate consumers to purchase your goods and services.
§ Product sampling-give them a coupon
§ Social media-work with a celebrity
§ Pay to advertise
§ Posters and billboards
§ Commercials
§ Product placement
§ Personal selling
§ Sponsorship

Sponsorship

The acquisition of rights to affiliate or associate with a sport product or sporting event to derive benefits from the affiliation or association

The frequency escalator

• Everybody starts on the ground level
• Misinformed non-consumer (not all the p's have associated)
• Aware non-consumer
• Media consumer (indirect, following it not actually buying it, intrigued)
○ Might not go to an XFL game right away but are intrigued
○ Gotta learn more about it
• Consumer
○ You are now buying into the product or service
○ Light users
○ Consumer-one ticket to one game (hope it was a positive experience and you want to go back)
○ Medium users
○ Heavy users
○ The 80/20 rule
§ 80% of your business comes from 20% of your customers
§ The more you can move them up the better

Categories of Sponsorship

Exclusive, primary, subsidiary

Exclusive sponsorship

one or only partner of that event or team. Is never really been seen/can't find any examples

Primary sponsorship

Scotiabank arena, TD Gardens, Rogers centre, BMO Field, RBC Canadian Open. Title of event or facility is tied to a particular company. Opportunity to maximize profits with minimal efforts.

Subsidiary Sponsorship

Exclusivity within a particular product or service category. You are not the main sponsor but you are there. NIKE, coca-cola--> official drink, official bank, official car, official candy bar, official soft drink could be different.

You can have competing rights (official soft drink of team versus official soft drink of the Super Bowl)

Why do companies sponsor sport?

• Heighten visibility
○ Business is getting exposure
○ NASCAR seen a lot!
• Shape consumer attitudes
○ Connecting with a certain brand to a sport
• Communicate commitment to a particular lifestyle
○ Redbull--> extreme sports, they don’t own anything just a marketing
• Business-to-business marketing
○ IDM sells some technology to users but a lot of their clients are other companies
○ Building relationships
• Differentiate product from competitors
• Entertain clients
○ Canada house
• Merchandising opportunities
○ Both to taste test or do a trial of the product
○ Word spreads organically through word of mouth
• Showcase product attributes
• Combat larger ad budgets of competitors
• Drive sales

History of Sponsorship

• First collegiate athletic event
○ Rowing with Harvard and yale
• First 'official' product
○ Spalding
○ Chewing tobacco (bull company=bullpen)
• First celebrity endorsement
○ Babe Ruth and putting his name inscribed into the bat
○ Louisville slugger
○ Top endorsement was 100 bucks and a set of golf clubs
• Father of sport marketing
○ Bill Veeck
○ Did all kinds of crazy things by taking a page from the entertainers of the circus
○ Owned a whole bunch of teams
○ Intermission he did a demolition durby in the middle of the field
○ Fireworks at the scoreboard
○ 1951 sent up Eddie Gaedel (3ft tall) small strike zone-walked
• Father of the Swoosh!
○ Phil knight

Branding

Using a name, design, or symbol to differentiate a product or service (in the same category)

About the mental images people get in their heads about what the company represents
Branding as a promise--> resonates a certain message to you, promise of quality, performance, etc

Brand Awareness

(recollection of the brand name)
NIKE and Windsor Lancers

Brand image

(perceptions and beliefs about a brand which in turn shape ones attitudes toward it)
Mercedes, under armour, lulu lemon, Olympic rings

Brand equity

(perceived value that the brand contributes to the product in the marketplace)
Lulu lemon--> throwing logos on pants
□ Can do this because of the quality and value of it
Goodwill-intangible value/premium that you pay for a good or service because its associated with a brand

Brand Loyalty

(consistent purchase of one brand over other brands in a particular category of product)
Track and Nike, hockey and Bauer (athletes are best example of this)
Can be loyal to some things but not the other
NASCAR is most loyal fan base to companies that sponsor it