o People traditionally get their start in the industry in the ticket sales department, first staffing the ticket booth and then advancing up the sales ladder to group sales and partial or full season ticket plans.
1. Quality: teams’ win loss record are one obvious example of identifying the quality of the product or service and influencing consumers’ purchase behavior decisions
2. Quantity: an individual might purchase a mini plan from an NBA team rather than a full season ticket package so the numbers (the units) in which the product is sold can become an influencing factor
3. Time: Family obligations, work schedules, and everyday life can dictate whether the consumer has the time to consume the product. For example, to make a season ticket purchase worthwhile, the individual must have the time available to attend the majority, if not all, of the teams’ home games
4. Cost: Each year TMR (Team Marketing Report), one of the leading industry trade publications, publishes a Fan Cost Index (FCI)
• Certain myopias slowed the growth of the sports marketing profession.
• One-size-fits-all packages, lack of foresight in marketing
• Evolution of marketing happened through increased competition for the entertainment dollar and through professionally trained sport marketers.
• The process of identifying customers
• Getting through to them
• Increasing their awareness and interest in your product and service
• Persuading them to act on that interest
o Eduselling- an evolutionary form of selling that combines needs assessment, relationship building, customer education, and aftermarketing in a process that originates at the prospect targeting stage and progresses to an ongoing partnership agreement. It is a continual process monitoring customer utilization and satisfaction through regular communication.
o Up selling- persuading an existing customer to move up to the next more expensive sales level
o Aftermarketing- customer retention activities that take place after a purchase has been made; the process of providing continued satisfaction and reinforcement to individuals or organizations who are past or current customers
o Benefit selling- a sales approach that involves the promotion and creation of new benefits or the promotion and enhancement of existing benefits to offset existing perceptions or assumed negatives related to the sport product or service (ex. Flexbook)
• Understand what objections customers have to your product or service and why
• Once benefits have been identified they must be publicized and must be judged by the customer to have worth or value
o Database marketing- a type of marketing that involves creating a database (usually consisting of names, addresses, phone numbers, and other demographic information related to current and potential customers) and then using it to maintain or gain customers; can range fr file of index cards to high tech software packages with the ability to cross reference and segment consumers
Think of how advertising has shifted from product shots (focusing on features and benefits of a product) to selling a LIFESTYLE!
• Includes cost that consumers incur including the ticket
• The emotion inherent in sport adds a special excitement to the sale process
• Season ticket equivalencies (full and partial plans) – 50%
• Advance Ticket Sales – 25%
• Group Sales – 20%
• Day-of-Game/ Walk-Up Sales – 5%
• “New” phenomenon resulting in a significant new revenue stream for sport organizations
• Includes clauses designed to ensure that sport organizations get back for free their ability to sell their facility’s name if the purchasing company becomes insolvent
$11.3 billion spent on sport sponsorships in 2009
o Difficult to determine precisely how much incremental sales are directly attributable to a specific sponsorship program.
o Many companies conduct periodic consumer surveys to determine ROI.
o Companies often hire professional sport research firms* to perform media evaluation research that examines corporate sponsorship and brand exposure through television and print media coverage of sports events.(*strong research skills is valuable to possess!)
o No one exact formula for measuring ROI
o For ROI, companies use the following:
• Internal feedback, sales/promotion bounceback measures, print media exposure, television media exposure, primary consumer research, dealer/trade response, and syndicated consumer research
o Increased media interest n sport, which has provided companies with a built in mechanism for promoting their sponsorship involvements, assured sponsors a better opportunity that their sponsorship will be publicized
o Way for companies to break through the clutter of traditional advertising
o Derive numerous in venue, in broadcast, and online promotion and publicity benefits that go far beyond the impact of a 30 second commercial spot
• Joining together of two or more companies to capitalize on a sponsorship is becoming increasingly popular and effective
• Creates more “bang for their buck” under the premise that two sponsors working together can generate more interest and awareness among targeted sport consumers
• Used to gain exposure in nontraditional and unexpected retail settings
• It has become increasingly important to think outside the box as to how sponsors can be joined to increase the overall effectiveness of sponsorship investments
o In Venue Promotions- increase the amount of value added benefits that teams provide their paying customers which has resulted in a growth in in stadium promotions across the sport industry; success varies on based on time of season, win loss records, day of promotion, opponent, and perceived quality of give away item or themed promotion event day.
o In store Promotions- sponsorships at retail level, where their product is sold o within their own retail stores
• Premiums- merchandise offered free or at a reduced price as an inducement to buy a different item or items, most popular tactics is offering premiums t consumers who redeem a certain number of proof of purchase seals.
• Contests and sweepstakes- contests (may require purchase of product appealing to smaller universe) are competitions that award prizes based on contestants’ skills and ability, whereas sweepstakes (everyone has a chance to win; typically offer trips to special sporting events, meet a celebrity athlete, or some other aspirational prize that would be difficult if not impossible to otherwise obtain) are games of chance and luck
• Sampling- one of the most effect sales promotion tools to induce consumers to try a product, giving away free samples of a product to induce consumers to try it
• Point of sale, point of purchasing marketing- used to attract consumers’ attention to their product or service and their promotional campaign at the retail level
• Coupons- certificates that generally offer reductions in price for a product or service, most often appear in freestanding inserts
o Team Sponsorship: more appropriate platform for local or regional companies or companies with smaller marketing budgets; include the right to be the “official sponsor” of the team, the opportunity to conduct in venue promotions, and access to team tickets and hospitality. Most governing bodies allow for competitors of their sponsorship partners to sign sponsorship deals with the local teams.
o Athlete Sponsorship: serves as a platform for companies to develop a sponsorship based on support of an individual athlete, these arrangements typically involve some type of endorsement of the sponsor’s product or service. Athletes in individual sports such as tennis and golf, tend to attract more sponsor interest because they are able to generate a greater number of visible well-focused sponsor impressions on television. There is increased risk in sponsoring an individual athlete as opposed to sponsoring a league or team. Sport celebrities garner a great deal of attention and interest from the public and thus the media is quick to report on any new involving the athlete.
o Media Sponsorship: occurs most often in the form of broadcast sponsors, companies that purchase advertising or programming during sport related broadcasts. Often broadcast sponsors have no affiliation or entitlement to the team or league being broadcast, a situation that can result in ambush marketing whereby the broadcast sponsor seeks to convey to consumers some “official” relationship that does not in fat exist. Many sport organizations now either require their official sponsors to purchase advertising within their event broadcasts or alternatively, provide them a “right of first refusal” to purchase broadcast advertising time, with the intent of eliminating or curtailing such ambush marketing activity.
o Facility Sponsorship: one of the fastest growing sponsorship platforms, most notably in the form of naming rights agreements. Facility sponsors typically sponsor the sport properties that play in the facility in some other capacity.
o Event Sponsorship: enables companies to tie directly into the event atmosphere; examples include sponsorship of triathlons and marathons, college football bowl games, and professional gold tournaments, typically events that are locally based and annual.
o Sport Specific Sponsorship: enables a company to direct its sponsorship efforts to a specific sport that best appeals to the company and its targeted consumers and provides a strong fit for generating brand identity.
o Watershed year in the evolution of sport sponsorship
o Raised sponsorship bar for major professional sport leagues
o “Less-is-more” philosophy
o Later commissioner of the MLB
o Innovative corporate sponsorship program
• “2-2-1”: companies must annually commit a minimum of $2 million in advertising o support and promote the MLB, a minimum of $2 million in promotional spending allocated equally to every MLB team, and $1 million in a cash and/or in kind rights fee
• Crisis Management
• Employee Communications
• Online Communications
• Community Relations
• Cause-related PR
• Financial/ Investor Relations
• Integrated role with marketing, sales, and advertising objectives
o Public interest
o Two-way communication
o Management function
o Fixing the mistake
o Drawing attention towards someone or the attention drawn towards them due to a mistake
o Advertising works through mass media; public relations relies on a variety of tools.
o Advertising addresses external audiences; public relations targets specialized audiences.
o Advertising is a communications function; public relations is broader in scope.
o Advertising is a tool; public relations often supports advertising campaigns.
o Public relations is concerned with relationships; marketing is concerned with customers and selling products or services.
o Different words are used by each profession to express similar meanings.
o Public relations relies on two-way dialogue; marketing relies on persuasion.
o Public relations has many components; journalism has only two: journalistic writing and media relations.
o Journalists are objective observers; public relations personnel are advocates. However, discuss “objectivity” in the media landscape.
o Journalists focus on a mass audience; public relations professionals focus on defined publics.
o Journalists use only one channel; public relations uses a variety of channels.
• PR practitioners explain the goals and objectives of clients and employees to the public and provide them with guidance.
• Program’s share represents the percentage of the television households watching television at the time that are tuned in to the program.
By World War I, “wireless” (radio) was well established.
1921: First radio broadcasts of sporting events.
KDKA in Pittsburgh broadcast first baseball game—Phillies vs. Pirates.
WJZ Newark, New Jersey, broadcast the Dempsey-Carpentier fight and the Yankees vs. Giants World Series later that year.
Network radio allowed many local stations across the country to broadcast the same event.
Broadcasters understood that sports increased ratings
1930s: Colleges sold exclusive rights to football games to a sponsor, who then purchased radio time from broadcasters to air games.
Radio increased fan support and was a valuable publicity and promotional tool.
After World War II: With television, consumers could now both hear and see their heroes in action.
Huge ratings garnered by Monday Night Football and the Olympic Games led broadcasters to pursue the rights to additional sporting events.
NCAA limited the number of times any one university could appear on television and distributed television revenue among its members.
Led to Board of Regents v. NCAA (U.S. Supreme Court case), through which colleges won freedom to sign their own deals for college football.
• Frequency: # of times you reach this designated audience
• a result of antitrust litigation over Rozelle’s plan
• ABC executive Roone Arledge
• Sport teams can avoid the printing costs associated with traditional tickets
• LeBron James
• Ricardo Kaka
• Empowerment of athletes to have their own “voice”
• Opportunity to PR professionals to re-examine their “Best Practices” to help athletes help themselves in image management and crisis management prevention
• Media and technology training to the masses (inclusive of all employees, not just the “talking heads”)
• Immediacy -immediate opportunity to respond directly from the source (not via mainstream media) during a crisis. Positive and negative outcomes due to immediacy of the medium
• Connectedness of athlete-to-fan and (two-way engaged communication) fan-to-athlete
• Opportunity to reach targeted audience /public
• Increased exposure and access to non-traditional sports for publicity and fan access (not contingent on media ratings!)
SHAQ example in contract/media negotiations -mobilizing Twitter fans -> increased viewership- increased ratings
o Means to reach out to fans and provide insight to further bolster relationships
o Popular form of expression for dedicated followers to teams
• Amy Martin
Reebok, Nike, etc.
Licensors-(teams and leagues)
NFL, Cowboys, Mavericks, etc.
• Super Show is the biggest footwear industry trade show event.
o A trade association where you can buy cheap apparel at a show
• Reebok (in 2000) signed 10-year $250 million deal with NFL (32 teams)
• Generated estimated range of $350-$565 million per year for Reebok
• Year 2000 $250 million (Reebok)
• Year 2012 $1.1 billion (Nike)
o Serves as a foundation for your career while building a strong network base.
o Have your questions prepared before you call in the event the person you are trying to reach is available immediately.
o Ask for suggestions on who else to contact in the industry of interest.
o Use industry language (in-person versus computer screening for job applicants)
o Present experience as a lens toward career goal
o Convey learning (Strategic thinking!!)
o Quantify whenever appropriate (How much money did you raise? How many people attended your event?)
o Assemble a portfolio (Example: Sports PR writing portfolio -hard copy – also, online portfolios are very common these days)
o (email immediately and then a handwritten or typed thank you -explain differences here)
o Call the interviewer if you have something to add.
o Call the organization if it hasn’t gotten back to you in the designated time.
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