Sports Marketing Chapter 2

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type of product and level of sports integration
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Chapter 2 attempts to clarify that ambiguity via the depiction of a classification system that is based upon two key dimensions
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attention to marketing tools is long overdue in the marketing of sports products
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IMPORTANT STATEMENT
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sports products and non sports products
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products germane to sports marketing
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sports products
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participation sports, spectator sports, sporting goods, apparel, athletic shoes, and sports related products
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non sports products
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products not directly related to a sport; Automobiles, telecommunications, medical services, fast food, consumer electronics, and beverages such as milk, water and colas
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spectator sports, participation sports, sporting goods, apparel, athletic shoes, and sports related products
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THREE categories of sports products
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spectator sports
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category 1; football game; live audience (selling of tickets for live audience participation); Media based audience (free to air TV audiences, Premium cable and satellite networks, pay-per-view for special events, enhanced access to a sport’s broadcasts (such as Direct TV’s NFL Sunday Ticket), and devoted networks such as the Golf Channel; Other media include traditional radio, satellite radio, internet based audio/video streaming, and an emerging emphasis on mobile technology including cellular phones and podcasts).
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Participation Sports
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organized soccer leagues, golf, tennis; Marketing’s role is to increase the number of participants and the frequency of participation in a specific activity (attracting more participants and getting current participants to play more)
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primary benefit of participation sports
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Participants are more likely to become fans of the sport resulting becoming spectators in terms of live audience and media-based audience participation.
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secondary benefit of participation sports
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Increased level of participation creates demand for more sports equipment, apparel, and athletic shoes.
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Sporting goods, Apparel, Athletic Shoes, Sports related products
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what does SASS stand for?
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sporting goods
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includes the tangible products specific to the participation sport or activity
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sporting goods
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Sold to both the casual participant and those who take part in the organized activities; 54 million Americans participate in bowling and create a demand for bowling equipment; Golfers throughout the world have fueled a tremendous increase in the sale of clubs, balls, bags, and gloves on a global basis.
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participation based and fashion based
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the two categories that Apparel falls into
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participation based apparel
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new uniforms for a new season, new styles to look good on the golf course
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fashion based apparel
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fans wear clothing that features the logos of teams they support; others buy the clothing simply because it is in vogue among their contemporaries
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athletic shoes
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once primarily devoted to the participant market; changed significantly since Nike’s Air Jordan’s; today’s ___ ____ are a part of almost everyone’s wardrobe;
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athletic shoes
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For participants, there are designs specific for such activities as racket sports, basketball, walking; No longer are these combined into the generic category of tennis shoes.
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sports related products
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consists of a broad array of sports related products; include souvenirs purchased at events venues, sports magazines, lessons to improve one’s skill at a sport; Venue-specific products-not tied to a sport per se, but purchased by spectators in attendance; beer, other beverages, food, game-day programs, and souvenirs
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venue specific products
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has to do with sports related products; not tied to a sport per se but purchased by spectators in attendance; beer, other beverages; good, game day programs, and souvenirs.
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Nonsports Products
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goods and services not directly related to a sport; Anything not Included as a Sports Product such as cars, clothes, soft drinks, & razors; Are Often Sold by Creating a Sports Overlay (or Platform)
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spectator products, participation products, sporting goods, apparel, shoes, sports related products, non sports product
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the four categories of products sold by sports marketers
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traditional strategies and sponsorship based strategies
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the two levels of integration
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traditional strategies
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Represent modest but most important integration of the organization’s marketing program
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sponsorship based strategies
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Involve a much higher level of integration by virtue of some official relationship with a sports entity such as a team or league
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traditional strategies
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Employ the Basic Components of Marketing Strategy; target market selection; corresponding marketing mix (price, place, product, promotion)
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sponsorship based strategies
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Employ an Official Sponsorship-based Relationship with a Sports Entity
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traditional sponsorship
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generally involves the acknowledgment of the sponsor by the sports property and the ability to use trademarks and logos to reinforce the relationship in the minds of the target market.
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venue naming rights, licensing, endorsements
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3 special forms of sponsorship
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Venue naming rights
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building sponsorship
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licensing
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right to use intellectual properties
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endorsements
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personal or personality sponsorships
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sponsor
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pays for the right to exploit the relationship and use of trademarks and logos in marketing efforts.
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sponsee
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may display sponsor names and logos in their own marketing, on scoreboards and the like
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endorsements
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have been referred to as “personal or personality relationships.”
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reebok
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has an arrangement that allows for its use of the logos of MLB”s 30 teams in the marketing of a special line of footwear.
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sears
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uses a traditional sponsorship with NASCAR to drive the sale of its Craftsman brand of tools – but also sells a broad array of NASCAR-licensed merchandise in many of its retail stores.
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EA Sports
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signed a seven-year contract with NASCAR providing the marketer with exclusive rights to use the organization’s logos in the video game market.
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broad focus, products, level of integration
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Three principles are relevant for the assessment and understanding of today’s sports marketing industry: what are they?
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broad focus
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marketing of sports versus marketing through sports
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products
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sports vs non sports
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level of integration
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traditional vs sponsorship based strategies
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mainstream, product focused, domain focused, sports dominant
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what are the four domains of sports marketing?
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mainstream with target marketing
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Defined as the use of traditional marketing strategies that incorporate a sports theme into the marketing program for nonsports products
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mainstream with target marketing
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1st component considered is often the organization’s target markets, i.e., place ad in publication or TV that fits targets.
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mainstream with target marketing
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2nd aspect of marketing strategy is the organization’s marketing mix
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mainstream with product
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A popular product strategy today involves sports bars which use televised sports as a way to sell food and beverages.
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mainstream with product
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Other examples involve companies that have created clothing that features a generic sports motif like belts and ties for golfers.
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mainstream with product
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Others have been using packaging like M&M’s marketed candy dispenser featuring the term racing team and a checkered flag gaining synergy with NASCAR without violating any trade marks.
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mainstream with promotion
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It’s easy to create a sports overlay using promotional efforts Detroit Newspapers entertained customers in a hospitality tent at the Ryder Cup matches.McDonald’s TV ad that featured kids being treated to a trip to McDonalds’s after their game. Sony commercial explains why viewers get more enjoyment from watching televised sports on a Sony high-definition TB. Note: All accomplished this with no trademarks associated with the events
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mainstream with price
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Strategies involving the pricing variable and a sports overlay are a bit more difficult to implement.
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mainstream with price
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One common strategy is for casual restaurants and bars to offer discounts to patrons who are wearing their uniforms from a participation sport such as softball.
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mainstream with price
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Hotels, restaurants, and bars offer reduced prices for patrons holding a ticket to a particular sports event.
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mainstream with place
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The Distribution or Place strategy element of the marketing mix is well utilized by the Food Service Industry
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mainstream with place
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Big Boy Restaurant located inside Detroit’s Comerica Park Marketers of alcoholic beverages are well known for having their beverages available as sports venues.FedEx negotiated for the right to have temporary shipping point located on the Oakland Hills Golf Course during a recent Ryder Cup.
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product focused
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Efforts to sell sports products without an official relationship with a sports entityMay or may not include a sports theme Leagues and teams do things to improve the game Marketers offer products in lieu of sponsorship As part of the marketing mix marketers may do many different creative things instead of investing in expensive sponsorships.
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domain focused
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Marketers of nonsports products officially align themselves with sports properties via one or more of the four forms of sponsorship; Using the sponsorship association with sports to market nonsports products
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domain focused
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In an effort to sell more fast food, McDonald’s advertising and packaging feature its official partnership with the Olympic Games. Examples of initiatives utilizing traditional sponsorships, venue naming rights, endorsement strategy and licensing abound
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sports dominant strategic domains
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Characterized by official sponsors of a sports property who are selling other sports products;Common strategy features the marketer of sporting goods or sports apparel in a traditional sponsorship of a sports team or a sporting event
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sports dominant strategic domains
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Traditional sponsorships and the three special forms of sponsorship (venue naming rights, endorsements, and licensing) are also utilized in these.
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mainstream strategies
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Using a Traditional Strategy to Create a Sports Overlay to Sell Nonsports Products
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target market
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ad for Honda cars in Golf Digest
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product
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clothing featuring golf graphics
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promotion
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ad featuring golfers drinking pepsi
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distribution
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Hard Rock Cafe at MLB stadium
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Price
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Discounts to Bar Patrons Wearing Participation Sport Uniform
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Product Focused Strategies
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Using Traditional Marketing Strategy to Sell Sports Products
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target market
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NBA targeting Chinese fans
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product
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new titanium gold clubs
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promotion
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newspaper ad regarding tickets
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distribution
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broadcast available on WWW
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price
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bundling tickets and refreshments at a bargain price
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domain focused strategies
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Using Sponsorship of a Sports Entity to Sell Nonsports Products
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traditional
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coca cola and the olympics
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venue naming rights
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citi bank and MLB stadium
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endorsement
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Gatorade and Tiger Woods
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licensing
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Mattel and NASCAR
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sports dominant strategies
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Using Sports-Based Sponsorship to Sell Sports Products (Least Common Domain)
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traditional
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Adidas and FIFA (world cup)
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venue naming rights
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reebok stadium
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endorsement
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Burton Boards and Shaun White
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licensing
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Nike and the New York Yankees
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Sports Marketing
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the implementation of proactive strategic initiatives designed to influence potential buyers’ preferences for an array of sports products or to otherwise create a sports overlay in such a way so as to have a positive impact on the sale of nonsports products.

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