Download Chapter 19-2 - NMSU College of Business

Chapter 19
The Role of Technology
in Sports Marketing
McGraw-Hill/Irwin
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
19-1
Technology –
The Internet and Beyond
• Technology Has Impacted Virtually Every
Aspect of Every Organization
• Sport Is No Different in this Regard
19-2
Foundation for the Internet:
Five Key Questions
• Why?
• Who?
• What?
• Where?
• How?
19-3
Why?
• Will It Enhance Marketer’s Image?
• Will It Augment Other Strategic Initiatives?
• Will It Result in Increased Demand?
19-4
Who?
• Who Will Utilize the Site?
• Is It Open to Everyone?
• Will It Target Adults or Kids – or Both?
• What Other Web Sites Will be Linked to It?
19-5
What?
• What Is the Site’s Core Purpose?
• How Will It Impact the Target Market?
19-6
Where?
• Where Will Users Gain Access to the Site?
• Where Will Site be Developed and
Maintained?
19-7
How?
• How Will Users Receive the Information?
• How Will the Site be Developed?
• How Will the Site be Evaluated?
19-8
Types of Sites in Sports Marketing
• Drop in Box 19.2 Here
19-9
Content Sites
• Large Information Base
• Often Extensions of Traditional Media
– General Publication: New York Times
– Sports Oriented Publication: Sporting News
– General Broadcast Media: ABC TV
– Sports Broadcast Media: ESPN
19-10
Team or League Sites
• Also Includes Sports Organization Sites
• Wide Range of Organizations from Local
Recreational Bowling League, to an NHL
Team, to the NBA, to FIFA.
• Information on Players, Awards, Results,
Schedules, and Merchandise Sales, etc.
19-11
Commerce Sites
• Virtual Storefront
• Often Sell Officially Licensed Merchandise
19-12
Gambling Sites
• Not Generally Embraced as Sports Sites
• High Growth Rate
• Provide Information as Well as Wagering
• Generally Require Some Sort of
“Membership” or Registration
19-13
Revenue Models – Content Sites
• Online Advertising or Sponsorship
– Banner Ads
– Ad Badges
• Subscription Fees
– Subscribers Can Drill Deeper for Content
• E-Commerce
– Products Available for Purchase
19-14
Advertising Fees
• Bases for Rates Charged to Advertisers
– CPM
• Cost Per 1000 Visitors to Web Site
– Click-through
• Fee Charged for Each Visitor Who “Clicks through”
to Link to the Advertiser’s Web Site
– Flat Rate
• Fixed Sum for the Advertiser
19-15
Revenue Models –
Team & League Sites
• Online Advertising or Sponsorship
• Subscription Fees
• Fee-Based Access for Audio & Video
• E-Commerce
19-16
Revenue Models –
Commerce Sites
• Sales Revenue
• Commissions
• Online Advertising or Sponsorship
19-17
Revenue Models –
Gambling Sites
• Wagers
• Subscriptions
• Online Advertising
19-18
Communications Objectives for Sports
Marketing Web Sites
• Drop in Table 19.1 Here
19-19
Web-Based Objectives
• Drop in Box 19.3 Here
19-20
Provide Information
• Information 24/7
• No Geographic Limitations
• Can Drill Deeper than Traditional Media
19-21
Provide Information
Drop in Table 19.2 Here
19-22
Information-Based Web Sites
• Drop in Table 19.3 Here
19-23
Facilitate Distribution
• Virtual Box Office
• Ticket Sales and Exchanges for Season
Ticket Holders
• Audio and Video Streaming
– Live Action
– Replays of Past Action (Video-on-Demand)
19-24
Enhance Customer
Relationship Management
• One-Way Communication
• Interactive Communication
• One-to-One Marketing (Customization)
• E-mail Domain ([email protected])
19-25
Relationship Marketing: Australia’s
National Basketball League
• Drop in Table 19.4 Here
19-26
Facilitate Operations
• Marketing Research – Data Collection
• Account Management – Order Extra Tickets
• Database Management – Contest Information
• Human Resources Outreach – Job Postings
• Interoffice Communications – Among Offices
• Interactive Communications – e-mail, Webcams, meetings
• Participant Registration – Boston Marathon
19-27
Buzz Manager
• An Interesting New Service that Monitors
Internet Chatter about Your Organization
• Positive, Neutral, Negative
• Buzz Score
•
www.sportsmediachallenge.com/
19-28
Technology Beyond the Internet
• Mobile Technology
–
–
–
–
Customized Content
Information Service
Audio and Video Highlights
Tickets for Access May be Stored & Displayed
• Technology Integration – Virtual Imaging
– Home Plate Application in MLB
– First Down Marker in Football
– Cricket – Leg-before-Wicket Call by Umpire
19-29
Technology Beyond the Internet
• Electronic Funds Transfer Technology
– Powerpay (RFID Technology)
• Smart Cards
– Similar to EFT
– Similar to Credit Card
– Value Loaded on Card
– Tickets on Card (Contactless Entry)
19-30
Technology Beyond the Internet
• High Definition TV
– Improved Picture Quality
– Quicker Refresh Rates for Better Video
• Interactive TV
– Multiple Feeds from Which Viewer Can Select
– Trivia Games
– Information Available – Scores, Statistics
• Instant Replay Technology
19-31
Technology Beyond the Internet
• WiFi Capabilities
– Wireless Access
– Fans, Media Who Have Laptop Computers
– Some Premium Seats May Include Monitors
• Global Positioning Systems
– Golf Courses – Information for Players
– Participants – Runners, Cross Country Skiers
• Boston Marathon Facilitated Tracking of Runners
19-32
Closing Capsule
• Technology Has Had a Dramatic Impact
on Marketers in Every Industry
• The Internet and the WWW Have Ushered
in Dramatic Changes for Sports Marketers
• Other Technology Beyond the WWW Has
also Played a Role
19-33
Closing Capsule
• Virtually Every Sports Marketer Today Has
Its Own Web Site
• There Are Content Sites, Team & League
Sites, Commerce Sites, and Gambling
Sites
19-34
Closing Capsule
• Web Sites Can Provide a Revenue Stream
– Advertising and Sponsorship
– Subscription Fees
– E-Commerce
• Other Sources of Revenue, Depending on
the Type of Web Site, Are Available
19-35
Closing Capsule
• The Most Common Applications for a
Sports Marketer’s Web Site Are:
– Provide Information
– Facilitate Distribution
– Enhance Customer Relationships
– Facilitate Routine Operations
19-36
Closing Capsule
• Other Technology Beyond Internet:
– Mobile Technology
– Virtual Imaging
– EFT & Smart Cards
– Interactive & High Definition TV
– Use of Instant Replay for Officials’ Calls
– WiFi
– GPS
19-37