SPORTS MARKETING
Definition and Scope
Current Industry Situation
• Fragmented with many segments
– Little Vertical Integration – Even Less Horizontal Integration
• Diverse Segments
– – – – – Professional (Pros) Intercollegiate Interscholastic Amateur Commercial and Public Recreational Org.
Current Industry Situation (cont)
• Common Thread: Max. Consumer Involvement through
– – – – – Attendance Participation Viewing Listening Buying related goods
Sports marketing consist of all activities designed to meet needs and wants of sport consumers through exchange process. Sports marketing has two major thrusts:
1. The marketing of sports to ultimate consumers.
Give some examples
2. The marketing of other consumer and industrial products with the use of sports.
Give some examples
INDUSTRY SIZE--$212.53B Major Components (Billions)
30 25
EQUIPMENT TRAVEL ADVERTISING
20 15 10 5
TICKET SALES, PARKING, CONCESSION TEAM OPERATION GAMBLING SPONSORSHIPS MEDICAL
0 COMPONENTS
FACILITY CONSTRUCTION
ACADEMIC ATTENTION
• • • • Increasing Programs of Study Several Professional Journals Special Interest Group of AMA Sport Business Research Network (sbrnet.com)
Marketing Myopia
A lack of foresight in marketing ventures
What does this mean?
Symptoms of Market Myopia in Sport
Tendency to produce and sell goods rather than identify needs and satisfy customers
Belief that winning sales Confusing marketing with promotions Shortsightedness
Marketing Myopia’s Effect on Sport
Slow growth of professional marketing staff Supply and demand = sobering starting salaries
See table 1.5 on page 10.
Marketing Myopia’s Effect on Sport
Lack of market research Major shortfall in sport marketing today: lack of data collection/analysis
Why would teams or leagues choose to do no research?
Marketing Myopia’s Effect on Sport
Sales Techniques
Sales driven by quotas and commissions Little emphasis on training, tactics, and sales as a strategy
What are good sales techniques? Why are good sales techniques important?