Sports Marketing.ppt

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					Sports Marketing
What is Sports Marketing?

• Sports marketing is the use of sports to
  market products (DUH)

  – So for example companies place their logos
    on jersey’s of teams they represent. This gets
    them exposure on many levels.
     • Under Armour, Nike, Reebok, Adidas, etc.
         Gross Impressions
• Companies monitor their exposure by
  counting the number of times per
  advertisement, game, or show that a
  product or service associated with an
  athlete, team, or entertainer. This number
  is known as gross impressions.
  – This may be subtle such as a small logo on a uniform. Every
    time you see a product or company logo your brain records that
    image. Advertisers hope you remember it when you buy such a
• Timing is very important in
  sports marketing because
  fans want products that
  identify them with a winner.
  So a teams wins and
  losses are more than just
  points. There is a dollar
  value that takes a hit as
Michael Phelps
                  Why Sports?
• In 2007 an estimated 30 million people
  watched the Super Bowl worldwide!
• Average attendance for sports
   –   NFL 69,000 per game x 16 games x 32 teams = 35,328,000 fans
   –   MLB 33,000 per game x 160 games x 30 teams = 158,400,000
   –   NBA 17,000 per game x 82 games x 30 teams = 41,820,000
   –   NHL 17,000 per game x 82 games x 30 teams = 41,820,000
• If 10% of that audience spends roughly $20 at your store
  you would bring in $554,736,000 in revenue annually.
  Sports Marketing Firms

• Sports firms bring business sponsors
  together with sports teams, individual
  athletes, and coaches.
• Next it negotiates terms of a contract
  between them and manages the
  contract for both parties.
• Firms match athletes and businesses
  for mutual benefits
                 Marketing Myth
•    Sports movies are often criticized for poor acting and little
     plot. The top five income producing sports movies as of the
     end of 2006 may change that mind set.
    1.    Waterboy (1998): $161,456,592
    2.    The Longest Yard (2005): $158,000,000
    3.    Jerry Maguire (1996): $153,620,822

    4.    Talladega Nights (2006): $148,000,000
    5.    Rocky IV (1985): $127,873,716
    6.    Rocky III (1982): $122,823,192
    7.    Seabiscuit (2003): $118,251,555
    8.    Rocky (1976) - $117,000,000
    9.    Remember The Titans (2000) - $115,000,000
    10.   Dodgeball (2004) - $114,000,000
    11.   A League Of Their Own (1992) - $107,000,000
    12.   Million Dollar Baby (2004) - $100,000,000

•    What can you conclude from the popularity of sports
• One owner or multiple agents

• An agent is a person responsible for making contacts
  with clients and sponsors

• Scott Boras, MLB
   – Carlos Beltran, Johnny Damon, Prince Fielder, Matt Holiday,
     Manny Ramirez, Alex Rodriguez, Mark Texiera
• Drew Rosenhaus, NFL
   – Anquan Boldin, Ocho Cinco, Plaxico Burress, Terrell Owens,
     Clinton Portis
• David Falk, NBA
   – Charles Barkley, Elton Brand, Patrick Ewing, Allen Iverson,
     Michael Jordan, Stephon Marbury
         The Power of Sports

• More time and money        • EMOTIONAL TIES
  are spent in sports than     – The power of athletics as
  any other recreational         a marketing aid can be
                                 explained partly by the
  pursuit in the country         emotional ties people feel
• Sports fans spend a lot        towards sports
  of mental energy on          – Millions of people feel
  their favorite teams and       intense love, joy, hate, or
                                 disappointment over
   Condone the Entertainer
• Fans will often ignore an athletes past
  to be entertained.
• In 1999 fans spent on average $49.95 to
  see Mike Tyson fight Francois Botha
  and raise for him $148 million after his
  1995 release from prison.
• Other Forgiven Fan Favorites
  – Kobe Bryant, Charles Barkley, Ray Lewis,
    Terrell Owens, Jason Giambi, Corey Dillon
     Corey Dillon Rap Sheet

    Arrested for: DUI, theft (twice), intent to
    sell cocaine, obstructing a police
    officer (thrice), resisting arrest (twice),
    assault (five times), criminal trespass,
    malicious mischief (twice), reckless
    endangerment (twice), domestic
    violence, rape
• A sponsor is a person, organization, or
  business that gives money or donates
  products and services to another
  person, organization, or event in
  exchange for public recognition.

• For example, if Phil’s Pizza sponsors
  your recreational basketball team!
        Reasons to Sponsor
• Increase Sales               • Show commitment to
• Introduce new product or       community
  service to large audience    • Enter new markets
• Compete where many           • Entertain clients,
  potential customers are in     employees, or potential
  one place                      customers
• To be identified with an     • Enhance companies’
  even in which target           image
  market is intersted
• Earn goodwill of audience

• Since costs can be high, sponsors carefully
  watch the returns on their sponsorships.
• A return is the profit the sponsor earns for
• For example, Phil’s would likely see an increase
  in sales because of its sponsorship!
• An endorsement is a person’s public
  expression of approval or support for a
  product or service.
• They are a promotional tool rather than a
  form of sponsorship.
• If two people are seen on a commercial
  speaking of a product they are not
  endorsers because they are acting as
  spokespersons for the company.
     Endorsement Rules
• However, a well known race car driver for
  a brand of tires is an endorsement
  – The public knows the person is a real
    professional driver
  – Public assumes the comments are personal
  – Public assumes the driver would not make
    comment if he/she did not believe it
Endorsement Restrictions
• Endorsements must
  – Always reflect honest opinions, findings, beliefs or
    experiences of the endorser
  – Endorser must have real experience with product
  – Not include deceptive or misleading statements.
  – Must not be reworded or out of context
  – Endorser must use and continue to use and believe in
    product for as long as he/she endorses product
  – If product changes in any way, endorser must be
    notified, and the endorser must continue to use and
    believe in new product
            Most Endorsed Athletes

                                  6. Kobe Bryant ($16 Million)
                                  7. Jeff Gordon ($15 Million)
                                  8. Shaquille O’Neal ($15
                                  9. Peyton Manning ($13
1. Tiger Woods ($100 Million)     10. Dwayne Wade ($12 Million)
2. Phil Mickelson ($48 Million)
3. LeBron James ($25 Million)     •   Do you find anything odd
                                      about this list?
4. Dale Earnhart Jr. ($25
5. Michelle Wie ($19.5 Million)
       Who Endorses Who?
$ Derek Jeter and Gatorade
$ Peyton Manning and Direct    $ Yao Ming and Reebok
  TV                           $ Brady Quinn and EAS
$ Dan Marino and Nutrisystem     Nutrition
$ Michael Jordan and Nike      $ Kasey Kahne and Vitamin
$ Tiger Woods and Buick          Water
$ Jeff Gordon and TAG Heuer    $ Maria Sharapova and Canon
$ Danica Patrick and GoDaddy   $ Coach Krzyzewski and
$ Charles Barkley and T-         American Express
  Mobile                       $ Lebron James and
$ David Beckham and Adidas       Powerade
$ Dwayne Wade and Converse     $ John Madden and Electronic
                               $ Tony Hawk and Activision
            Top Sporting Events
•   1. NFL Football
•   2. NASCAR
•   3. NCAA Football
•   4. MLB Baseball
•   5. NCAA Basketball
•   6. NBA Basketball
•   7. NHL Hockey
•   8. PGA Golf
•   9. AFL Arena Football
•   10. NCAA Baseball
•   11. Olympic Sports

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