5 P’s of Marketing
What is the most difficult element to change?
T/F Both the core event and the product extensions are facets related to the effective distribution of the sport product
Examples of things that are crucial to a successful distribution of the sport product
-The facility, including its location, layout, and image
-Distribution channels related to sport, including retail distribution of merchandise and apparel
Things team have to “place”
The event itself
Players and coaches for appearances
How to expand “place”
-scheduling competitions in new markets and
-reaching out and touching somebody- take the players on a caravan tour
Ensemble–Sport marketers must understand which elements enhance or diminish the attractiveness of a venue:
History and memories
Why is Ensemble important?
Because Location is critical to the experience of every sport consumer.
What key ingredients of an attractive sport facility will draw spectators?
1. Accessibility and drawing radius
3. Surrounding area
4. Design and layout
5. Game, spectacle, and festival
Factors of Accessibility and Drawing Radius
demographics of the surrounding area,
duration and frequency of the event,
emotional commitment of spectators, and
perception of quality of the event and venue.
T/F- Especially now with social media, “radius”- meaning the area surrounding the facility- has changed
-One space for every four seats in the venue
-Easy ingress (“entrance”) and egress (“exit”)
-Availability of spots near the venue
Surroundings (beyond parking)
-Politics (think of the HPU bubble; think of how people view incursions on their neighborhoods)
-Sense of safety
Design and Layout of facility should address the following..
-Ease of access, exit, and internal movement (minimizing length of lines)
-Access and sight lines for consumers, especially those with disabilities
-Location, design, and number of food services, bars, concessions stands, and bathrooms
-Flexible versus dedicated usage space
-Aesthetically pleasing design
Figure 13.2 the standard frame of sport
Festival on outer circle
Spectacle in the middle
Game in the inner circle
Game, Spectacle, and Festival: Framing the Steak and the Sizzle…major sporting events framed into these 3 levels
Game: the actual competition
Spectacle: the elements surrounding the game (jumbotrons,mascots, cheerleaders, bands, fans themselves)
Festival: the atmosphere and ancillary activities surrounding the event (tailgating)
T/F Sport marketers must manage and develop all three elements without allowing their convergence to diminish the consumer experience.
Amenities: Convergence Toward the Sports Mall (amenities include…)
-Connectivity (no WiFi at Grasshoppers’ stadium)
-big screens and electronic message centers and sound systems (then, they complain about the noise!)
-upscale food and drink
Suites, Inclusive Club Seats, and Special Zones
Nearly all modern spectator sport venues incorporate club seats—an individual seat in a section separated from general public seating and with access to suite-level amenities.
Other premium seating trends include
-merging suites with club seats and
-other sponsored and branded spaces or entitlement zones.
How much is a skybox at Yankee stadium?
Start at $8000, rising to $15,000 PER GAME
Some “suite” examples
-The Dallas Cowboys require a 20-year lease agreement for those who want to become suiteholders.
-Madison Square Garden doesn’t require as long a commitment, but the very best suites at Madison Square garden will set you back over $1 million a year.
Personnel (workers at organization)
-Training (knowledge, customer service)
-Sense of responsibility
-Reflection of the organization
Marketing Channels (Most Women Just Run)
Manufacturers (M): the makers of the goods
Wholesalers (W): those who distribute the goods
Jobbers (J): those display the goods at the venue
Retailers (R): those who sell the goods
Traditional channel for hard goods
M ? W ? J ? R ? C
Professional sport team
M ? C
Televised sporting event
M ? C = Event ? Media ? C
Considerations for Product Distribution (every cat causes allergies)
Expertise (what to offer and how to offer it)
Control (inventory, ordering, etc.)
Adaptability (change with demand)
Retail Sport Operations and ways to distribute the sport product
In-venue shops and kiosks
External stores and experiences
-Maintain control over the “secondary market” can be key to a team’s success
-Enforce trademarks, monitor merchandise sales
Traditional Ticket Distribution
sport organizations sold most of their event tickets from an on-site box office.
Methods of ticket distribution
Internet and website
Partnerships with consumer retail outlets
Partnerships with ticket firms
Payroll deductions with selected companies
Roving box office
Secondary ticket market
StubHub, Ebay- all these sites can hurt or help a team’s brand and sales
Importance of a secondary ticket market
Managing secondary ticket sales is a crucial function for any sport property that has controlled gates, venues with reserved seats, and full-season or partial-season ticket plans.
Key Questions for the Sport Marketer Relative to Distribution
Who are my consumers, and what are their needs?
Where are my consumers?
What are my products and their extensions?
What vehicles, especially those using new technologies, are available for distribution?
Primary goal of intellectual property
To reward invention, ingenuity, and creativity to maintain an open and competitive marketplace.
Importance of Sport Law Relative
to Sport Marketing
Without working knowledge of how the law affects sport marketing, professionals in the field could risk considerable legal consequences.
What is intellectual property made up of?
A trademark, copyright, or patent owner may grant permission for its use to others for a fee.
What happens when another does not have permission or licensed rights to use the copyright, trademark, or patent?
that person is said to be infringing on the rights of the intellectual property owner.
What is a trademark?
A trademark is a word, name, symbol, or device used by a person, generally a manufacturer or merchant, to identify and distinguish its goods from those manufactured and sold by others, and to indicate the source of the goods.
T/F Trademarks identify a brand
TRUE- And there’s a lot of investment and equity in the brand
Trademarks serve five purposes:
Identify the source or origin
Protect consumers from confusion or deception
Designate a consistent level of quality
Represent goodwill of the owner’s products or services
Signify a substantial advertising investment
What is Goodwill
In business terms “goodwill” is that portion of the value of company that cannot be tied to assets. In other words, Microsoft’s biggest value is its goodwill, or the worth of the company beyond just the inventory it has on hand or the equipment it owns.
Ex- The value of a company’s brand name, solid customer base, good customer relations, good employee relations
Trademarks are protected on the national level by the Federal Trademark Act of 1946, commonly referred to as the Lanham Act
Types of trademarks
-Trade dress (product packaging)
-Service mark (service versus tangible product) (CNN logo)
-Collective mark (players associations and leagues)
How to gain trademark registration
To gain national trademark protection under the Lanham Act, a trademark must be registered with the United States Patent and Trademark Office (USPTO).
Registered marks gain the following:
-The ability of the trademark owner to sue in federal court
-The ability to obtain trademark registration in foreign countries
Trademark registration Overview (Cont.)
-The opportunity to file the trademark with the U.S. Customs Service to prevent the importation of infringing foreign goods
-Acknowledgment and protection of the goodwill of the trademark holder
-The provision of public notice throughout the nation of trademark ownership, thus creating an easier burden of proof in trademark infringement lawsuits
That means, the public is officially notifed, by virtue of the trademarking process, that on such-and-such a date, a trademark was registered, legally. So, if anyone comes by later, they can’t do the same thing.
Types of Trademarks (Fran Always Suggests Dumb Guys)
Fanciful: distinctive, because it is usually a made up name that identifies a product or service: “Jello” or “Kleenex”
Arbitrary: common term associated with entity. “Apple” and “Mac” would be trademark-able in the computer world.
Suggestive: connotes something about product. “Jaguar”, “Mustang”- these are suggestive of style and power.
Descriptive: commonly used word or phrase that is difficult, although not impossible, to protect. “Honey Nut Cheerios”.
Generic: commonly used word or phrase that is never entitled to trademark protection “Golf ball”.
Easy to trademark–difficult to trademark
Fanciful (Adidas)–Arbitrary (Starbucks)–Suggestive–descriptive–generic (Aspirin)
Descriptive logos and marks can gain trademark protection if they are deemed by the courts to have acquired secondary meaning, defined as “a mental recognition in buyers’ and potential buyers’ minds that products connected with the symbol or device emanate from or are associated with the same source.”
Reproduction, counterfeiting, or imitating a registered mark in an attempt to sell or advertise goods or services that are likely to cause confusion or deceive without the consent of the trademark holder
Trademark Infringement includes
Traditional trademark infringement—confusion or mistake, or used to deceive
False designation of origin
Basically, anything that lessens the marketing value of the real trademarked product
Determining Trademark Infringement
-The strength of the trademark
-The degree of similarity of the mark itself
-The similarity of the products involved
-The market channels involved
-The distribution channels involved
-The intent of the defendant in adopting the trademark
-The sophistication of potential consumers- should they be able to tell the difference
-The evidence of actual confusion
Claims under which trademark owners might sue:
False designation of origin (intentionally lying about where a product came from or who made it)
Dilution- weakening the value of the product, often by dumping (flooding the market)
Trademark infringement defenses (all females get…f***)
Abandonment- use it or lose it
Fair use defense- often, when a trademark is used in news, it is “fair use”
Genericness- flip phone, dry ice, thermos, trampoline
Functionality- same name, but does different stuff
International trademark registration
What can copyrights do?
protect written works, music, pictures or graphic designs, and audiovisual works (including broadcasts of sporting events).
Copyright Act of 1976
protects original works of authorship appearing in any tangible medium of expression.
Digital Millennium Copyright Act
provides copyright laws regarding digital creations and the Internet.
What is a copyright for?
A copyright can be for something to be developed later, but the work must be something that can be perceived, reproduced, or otherwise communicated.
Copyright infringement occurs when someone makes unauthorized use of a copyrighted work.
Factors to determine copyright infringement?
1. The purpose of the use, including whether such use is of a commercial nature or is for nonprofit educational purposes
2. The nature (character) of the copyrighted work
3. The amount and substantiality of the portion used in relation to the copyrighted work as a whole
4. The effect of the use on the potential market for, or value of, the copyrighted work
Defenses to Copyright Infringement (The fair use doctrine)
Teaching (including multiple copies for classroom use)
Copyrights and Sporting Events… are they protected?
Broadcast and cable television transmissions of sporting events are fully protected by copyright law, but the events, games, and statistics themselves are not necessarily covered.
Patents may be granted to anyone who invents or discovers any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement.
A patent cannot be granted for a mere idea, only for the actual invention or a complete description of it.
How long does a patent last?
A patent lasts 20 years. After the patent runs out, anyone can use the technology or make the product.
Sport Marketing Communications
Sport marketers must be aware that commercial communication (usually in the form of advertising) can be restricted by federal laws.
Commercial communication restrictions
-The commercial speech must concern a lawful activity and not be misleading.
-The state must have a substantial interest in the restriction of the speech.
Ambush Marketing-when does is occur?
-Occurs when a company capitalizes on the goodwill of an event by using tactics to imply an official association with that sport event.
-The larger and more popular the event is, the more often ambush marketing arises.
Typically, ambush marketing in sport takes one of the following forms:
-Use of generic phrases
-Purchase of advertising time within the event broadcast
-Presence in and around the event venue
-Conducting consumer promotions
-Offering congratulatory messages
The Right of Publicity
The right of publicity prevents the unauthorized commercial use of a person’s name, likeness, or other recognizable aspects of his or her persona.
The Right of Privacy
The right of privacy protects against intrusion on a person’s seclusion, the misappropriation of a person’s name or likeness, unreasonable publicity, and placing a person in a false light.
Contractual Issues Involving Consumers
Several contractual legal issues have emerged related to team fans and their purchase of season tickets.
-Teams suing their own season-ticket holders for failure to pay
-Season-ticket holders suing teams and athletics departments for requiring the purchase of a personal seat license (PSL) or for changing policies about seat location relative to personal donation level
***must consider legal AND PR implications
Promotion Law Issues- marketers must consider elements of…
Product and Price
Effect of product and price is more accurately the effect of price on product.
-is the most visible and most readily communicated variable of the marketing mix,
-influences perceptions of quality and value, and
-directly affects the product image.
Product and Place
-Sport consumers develop perceptions of the place in which an event occurs, namely, a facility image.
-Big-league products demand big-league places.
Product and Promotion
Products define appropriate formats and media for promotions.
Sport marketers must use the right promotional medium for the right product.
Product and Public Relations
Public relations has an obvious effect on product image and position.
Sport marketers do not have control of the media’s message as they do with advertising.
Difficulties with product and public relations
Perceptions are difficult to change even with proactive public relation strategies.
A product’s image is significantly affected by athlete endorsers who need to understand how their behavior is perceived by the public.
Price and place have two major effects
Sport consumers expect to pay higher prices for better facilities.
Consumers tend to pay more for convenience (which is a benefit).
Price and Public Relations
Pricing strategies can have a strong effect on public relations, for better or worse.
Public relations strategies should be incorporated into pricing strategies to help consumers understand sport marketing decisions.
Place and Promotion
The sport facility image is a strong one, and it directly influences product image.
A sport marketer can promote a stadium as the place to be. New facilities often have high attendance.
Promoting an old, dilapidated facility is an uphill battle.
A sport marketer can promote special aspects of the venue as well.
Place and Public Relations
A new facility has implications for all the other Ps. A new seat configuration requires a rescaling of ticket prices, which must be done with care for the overall franchise image.
Proactive public relations leading up to the opening is an effective strategy to keep publics informed and positive.
Promotion and Public Relations
The effect of a favorable or unfavorable public relations image cannot be underestimated.
The public relations image can negate immense promotional efforts.
Exercising good judgment and taste in promotion will prevent negative public relations.
Controlling the Marketing Function
The best way to ensure effective marketing is to control all parts of the marketing effort with a marketing control plan.
Effective Marketing Control Systems
-Mission statements and objectives should be established. Establish the brand.
-The organizational structure should marshal resources to meet objectives.
-Employee performance standards and criteria should logically link performance to objectives.
-Methods should be in place to adjust strategy, structure, and personnel in light of performance.
-Generating revenue requires investment in resources and personnel.
Organizational goals should establish specific marketing objectives, such as
the number of favorable stories that the public relations staff nurtures in print or electronic media,
improved results in consumer satisfaction surveys,
the amount of revenue generated through various ticket packages, licensing agreements, or television contracts, and
relative increases in television or radio ratings compared with competitors (e.g., regional professional teams).
Measuring Marketing Effectiveness
Surveys of fans, intercept and social media included
Attendance and revenue figures
Web visitor statistics
Annual survey results reported by industry publications
Many sport organizations can incorporate analytics to measure marketing effectiveness in areas such as
ticket services and operations,
promotions and advertising,
merchandise sales and operations.
Steps to enhance staff performance
Cooperatively set performance goals and objectives
Regularly evaluate progress
Establish a plan to improve or correct areas of weakness
Annually develop new goals that build on past experience
Sport Marketing Predictions for 2020
Corporate sponsorship names and logos will appear on game uniforms.
The big four professional leagues in the United States will become the big five (MLS).
The business success of the four-team playoff for the national championship in college football will result in another round of conversation to expand the playoff format.
The success of the secondary market will force teams to reconsider the definition of the term season ticket, leading to the demise of the original season-ticket concept.
The emphasis on the game-day experience at venues will undergo a major transformation based on technology and emotional connectivity and benefits to the attendee.
Despite rule changes, fear of long-term brain damage, and other health and safety concerns, we see little if any measurable decline in the popularity of football at any level in the next seven years.
Corporate partnership opportunities and benefits will extend to a corporate partner family including other businesses as well as consumer bases of those businesses.
Fan involvement in decision making will increase regarding how the sport is played, packaged, or presented.
Globalization in competition and broadcasting will continue to increase at a high rate.
Youth Participation in Football
-Down 27% ages 6-14, 2010 to 2015
Fan involvement in decision making
Chat forums, social media, public opinion boards
Abe Madkour, SportsBusiness Journal predicts…
Sport media will look similar to its current form, primarily because of long-term contracts between properties and networks.
More immediate click, purchase, and delivery of sport products will occur.
Globalization of U.S. major leagues will continue.
The college football playoff will be incredibly popular, and large NCAA schools will form a fourth division.
Sport organizations will become more involved in real estate.
Susan Schroeder, NBA predicts…
Managing sponsor partnerships will become extremely complex.
Innovation within sponsorship delivery will increase at a frantic pace, particularly as sponsors and properties try to integrate new technology.
All sport organizations will emphasize recruiting, training, and motivating strong relationship managers.
Luca Petruzzellis, University of Bari Aldo Moro (Italy) predicts…
Sport marketers will place greater emphasis on the social and ethical aspects of sport.
Sport fans will become more disengaged.
Alan Seymour, University of Northampton (England) predicts…
Properties will develop new platforms to interact with consumers and will listen better.
Sport will continue to link the global marketplace.
Tom Hoof, Tampa Bay Rays predicts…
Expanded use of mobile devices will allow fans to order concessions from their seat and see customized replays.
MLB will add replay, incorporating use of mobile devices.
MLB will expand.
MLB teams will develop broadcast deals with technology firms like Google and Netflix.
Eric Woolworth, Miami Heat predicts…
Mobile content will expand, including live NBA streaming.
Consumer ticketing and financial transactions will take place on mobile platforms.
Consumers’ in-venue spending will be tracked more effectively.
Hunter Lochmann, University of Michigan Athletics predicts…
Change will occur in the governance structure of college athletics.
Payments to student-athletes will dramatically affect athletics departments.
Colleges will improve the in-game experience for fans.
Mike Boykin, GMR Marketing predicts…
U.S. major leagues will have greater global presence through divisions in Europe and Latin America.
Concussion research will force change in competition rules and equipment for contact sports.
College football playoffs will expand the field, resulting in lucrative media rights deals.
The United States will host a summer Olympic Games.
Professional leagues will include fewer family-owned franchises and more younger owners.
Stacey Allaster, Women’s Tennis Association predicts…
Women’s professional tennis will have a greater footprint in the Asia-Pacific region, India, and Latin and South America.
Women’s tennis will feature more events, more mixed-gender events, and greater prize money.
Cross-platform media consumption will increase, and greater interactivity will occur between fans and events and players.
Giorgio Gandolfi, GG Sport Marketing and Communication Services (Italy) predicts…
Teams will rely less on team success and more on innovative marketing to draw attendance.
Grassroots participation in basketball will increase.
Ward Bullard, Google predicts…
Consumer spending will shift from spectator sports to participation sports.
Properties will invest in technology to allow them to know more about their consumers.
The in-game experience will mimic the at-home experience with customized concessions orders and viewer-controlled media in sport venues.
Consumers will be less concerned about the on-field product and more about overall entertainment value; they will spend less time and money on inferior-quality sport products.