Introduction to Sports Event Marketing

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					Warm-Up

 What is the purpose of
  Sports & Event Marketing?
 Why is it effective?
What is Sports & Event
Marketing?
   Sports Marketing defined…
    –   Marketing of sport
    –   Marketing through sport
   Sports marketing consists of all activities designed to
    meet the needs and wants of sport consumers
    through exchange processes
   Sports marketing has developed two major thrusts:
    –   Marketing of sports products and services directly to
        consumers of sports, and
    –   Marketing of other consumer and industrial products or
        services through the use of sports promotions.
The Sports & Event Industry
   The sports & event industry includes:
    –   Players & the games, performers & the events
    –   Facilities where the events are held
    –   Equipment used during the games & events
    –   Agencies used to regulate the games & events
    –   Media that broadcast the games & events
    –   Fans who watch the games & events
   The sports product includes:
    –   Event
    –   Goods & services
    –   Personal training
    –   Sport & event information
Who are the Consumers?

   Consumers of sport:
    –   Unorganized participants
            Do not follow rules of an organization or group and are free to
             participate as they want
    –   Organized participants
            Controlled by groups or sanctioning bodies as amateurs or
             professionals
    –   Spectators
            Observers of the sporting event, corporate consumers, media
    –   Sponsors
            Pay to associate their company with a sport, athlete, events, or
             performer
Sports & Event Marketing
Timeline
   1858-First known athletic event that required paid
    admission from the fans, a baseball game.
    Admission cost just .50 cents…half a penny!
   1923-Golfer Gene Sarazen signed an endorsement
    deal with Wilson Sporting Goods, which became the
    longest running endorsement deal in the history of
    sports.
    –   The original deal was for $6000 per year plus an equal
        amount for travel expenses. Renewal took place every two
        years until his death in May 1999.
   1925-Goodyear Tire and Rubber Company built the
    Pilgrim, the first known blimp to fly over athletic
    events.
Sports & Event Marketing
Timeline
   1928-Coke partnered with the Olympics and remains
    a sponsor to this day.
   1939-First televised collegiate football game
    featuring Fordham vs. Waynesboro College.
   1939-First televised NFL game featuring the Eagles
    vs. Dodgers.
    –   Broadcast to 1000 homes.
   1954-First issue of Sports Illustrated placed on the
    newstands.
   1964-Blue Ribbon Sports is founded by Phil
    Knight…uh, Nike.
Sports & Event Marketing
Timeline
   1975-First pay-per-view event televised…
    ”Thrilla in Manilla” featuring Ali and Frazier.
    –   Broadcast to 276 closed circuit locations
   1979-ESPN debuted!
   1980-The Carrier Dome at Syracuse University
    became the first facility with a naming rights deal.
    –   Worth $2.75 million
   1984-The Olympics finally turned its first profit.
    –   Entirely privately financed
Sports & Event Marketing
Timeline
   2002-Sports industry generated an estimated $300
    billion in revenue.
   Good news…
    –   NFL attendance continues to rise.
    –   NCAA football attendance continues to rise.
    –   Golf receipts and NCAA women’s basketball are increasing.
    –   Total recreation expenditures are growing.
   Bad news…there are troubles looming.
    –   NBA faces disillusioned fans.
    –   MLB faces dropping attendance figures.
    –   NHL faces soaring ticket prices.
Sports & Event Marketing
Timeline
What is Sports & Event Marketing?
   Cadillac sponsoring the           Nortel Networks paying over
    PGA Tour.                          $1 million for a commercial
   Pepsi paying for the pour          in the Super Bowl.
    rights in a sports venue.         A baseball fan sending in a
   Goodyear making sure they          proof of purchase seal from
    are visible at Nascar races,       a packaged good for two
    and hoping they are used by        ticket vouchers worth $3.00
    the winning car.                   off the purchase of tickets.
   Every NBA team selling out        A corporation paying $30
    when the visiting team was         million for naming rights of a
    the Chicago Bulls – with           stadium.
    Michael Jordan.