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College and Amateur Sports 2.1 Marketing College Athletics Goals • Explain the importance of the NCAA and team rankings to college sports. • Define market segmentation • Discuss the growing market surrounding women’s college athletics Effects of Collegiate Sports • A winning team has a huge economic impact not only for the school, but also for the community, region, and state. • University provides: ▫ Products ▫ Services • City Provides: ▫ ▫ ▫ ▫ Hotels Restaurants Gas Stations Shopping Malls Effects of Collegiate Sports • College communities benefit from the success of the primary team through the media attention the team receives (Penn State) ▫ ▫ ▫ ▫ Newspaper Magazines Local Sportscasts These will focus on the team for the whole year – which will benefit the home city! Effects of Collegiate Sports • Marketers strive to promote a strong public image of the team. • Universities will: ▫ Print schedule cards to distribute to different locations ▫ Design posters to build enthusiasm for approaching the season ▫ Create websites **What are these activities called** Rules and Rankings • The National Collegiate Athletic Association (NCAA) is the governing body of most college and university athletic programs. ▫ Creates and enforces guidelines and rules that schools must follow in order to remain in good standing. ▫ Guideline areas include: ⚫Recruitment ⚫Gender Equity ⚫Scholarships ⚫Gambling Prohibitions ⚫Ethical Issues Market Segmentation • Market Segmentation is a group of individuals within a larger market that share one or more characteristics (much like target marketing) • Sport publications (Sports Illustrated) use information management to determine rankings, features, and cover stories. ▫ Using different players or teams on the cover of the same magazine in different parts of the country Five Elements of Market Segmentation 1. Geographic Segmentation - is the dividing of markets into physical locations, such as eastern, northern, southern, and western regions of the United States or urban and rural areas of the state. 2. Demographic Segmentation – focuses on information that can be measured, such as income, profession, gender, and education. 3. Psychographics – focus on characteristics that cannot be measured, such as attitudes, and lifestyle choices (test question: not going to a game because of a religious event) Five Elements of Market Segmentation 4. Product Usage – reflects what products you use, how often, and why. 5. Benefits Derived – are the value people believe they receive from the product or service. Women’s College Sports • 1980 NCAA recognized women’s college sports. Test Question • 1987 NCAA created : ▫ Women’s Enhancement Program – which offered opportunities to college women in the form of post graduate scholarships, internships at the NCAA national office, and career help for women who want to continue in intercollegiate athletics after their playing eligibility is over. Economic Impact of College Athletics Chapter 2.2 Good for Town Businesses • University of Nebraska, Memorial Stadium, has sell out seats on Saturdays. Seating capacity = 76,000. • This means strong business for: ▫ ▫ ▫ ▫ ▫ Hotels Restaurants Shopping malls Souvenir shops Etc… Good for Town Business • Tickets to sporting events are sometimes sponsored by local businesses as well as major corporations. • Papa Johns- Field Goal Kick • Chickie & Pete’s –Crab Fries • Phillies – Ball Park Dogs Sponsorships • Who is your team wearing? 1. The name is visible during the game 2. Post game interviews 3. Internet pictures Sponsorships • TV and radio payments from corporate sponsors add up to over $1 million each year for major universities. Conference Realignment • A conference is a group of college athletic teams within the same region • Conferences are created in order to have playing associations of manageable sizes. Conference Realignment • Why are traditional athletic conference breaking up and forming new alliances? ▫ Increased Competition = Increased Revenue ▫ 4 #1’s in the bracket : East, West, South, Midwest Amateur Sports Chapter 2.3 Popularity of Amateur Sports • Professional Athlete – someone who earns a living participating in a sport ▫ young, strong, and healthy • Amateur Athlete – someone who does not get paid, but plays for enjoyment, challenge, or both. ▫ Any age, any physical challenges, no limitations Marketing and Sponsoring Amateur Sports • Regardless of the sport, marketing and selling are essential. ▫ Competitors need: ⚫Top quality equipment ⚫Money necessary to compete • Amateur sports provide significant income for manufactures of athletic uniforms and products surrounding a specific event. National Promotion of Amateur Sports • “Anything you can do, I can do Better” ▫ Mia Hamm against Michael Jordan Economic Benefits • Communities, cities, and states gain from amateur sports as well as from professional sports. • Minnesota Amateur Sports Commission ▫ Create economic development through amateur sports ▫ Create max opportunity for sport participation for all Minnesotans ▫ Establish Minnesota as a national model for the Olympic and amateur sport movement. Random Test Questions (You’re Welcome) •Sponsorships are expensive for large corporations •Dollars from NCAA sports support goes to the expansion of programs and the Championship games •An example of product usage is how often you USE a product •In order to host a bowl game a city must have shopping areas, adequate hotels and restaurants a favorable climate, a large stadium Vocab Section of Test •Market Segment •License •Geographic Segmentation •Conference •Benefits Derived •Product Usage •Amateur Athlete •Demographic Segmentation •NCAA