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Chapter 21 The Role of Technology in Sports Marketing McGraw-Hill/Irwin 21-1 ©2007 The McGraw-Hill Companies, All Rights Reserved Technology – The Internet and Beyond • Technology Has Impacted Virtually Every Aspect of Every Organization • Sport Is No Different in this Regard 21-2 Foundation for the Internet: Five Key Questions • Why? • Who? • What? • Where? • How? 21-3 Why? • Will It Enhance Marketer’s Image? • Will It Augment Other Strategic Initiatives? • Will It Result in Increased Demand? 21-4 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? 21-5 What? • What Is the Site’s Core Purpose? • How Will It Impact the Target Market? 21-6 Where? • Where Will Users Gain Access to the Site? • Where Will Site be Developed and Maintained? 21-7 How? • How Will Users Receive the Information? • How Will the Site be Developed? • How Will the Site be Evaluated? 21-8 Types of Sites in Sports Marketing 21-9 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 21-10 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. 21-11 Commerce Sites • Virtual Storefront • Often Sell Officially Licensed Merchandise 21-12 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 21-13 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 21-14 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 21-15 Revenue Models – Team & League Sites • Online Advertising or Sponsorship • Subscription Fees • E-Commerce 21-16 Revenue Models – Commerce Sites • Sales Revenue • Commissions • Online Advertising or Sponsorship 21-17 Revenue Models – Gambling Sites • Wagers • Subscriptions • Online Advertising 21-18 Communications Objectives for Sports Marketing Web Sites 21-19 Web-Based Objectives 21-20 Provide Information • Information 24/7 • No Geographic Limitations • Can Drill Deeper than Traditional Media 21-21 Provide Information 21-22 Information-Based Web Sites 21-23 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) 21-24 Enhance Customer Relationship Management • One-Way Communication • Interactive Communication • One-to-One Marketing (Customization) • E-mail Domain ([email protected]) 21-25 Relationship Marketing: Australia’s National Basketball League 21-26 Facilitate Operations • Marketing Research – Data Collection • Account Management – Order Extra Tickets • Database Management – Contest Information • Interoffice Communications – Among Offices • Participant Registration – Boston Marathon 21-27 Technology Beyond the Internet • Mobile Technology – Customized Content – Information Service – Audio and Video Highlights • Virtual Imaging – Home Plate Application in MLB – First Down Marker in Football – Cricket – Leg-before-Wicket Call by Umpire 21-28 Technology Beyond the Internet • Electronic Funds Transfer Technology – Smart Cards – Powerpay (RFID Technology) • Interactive TV 21-29 Technology Beyond the Internet • WiFi Stations – 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 21-30 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 21-31 Closing Capsule • Virtually Every Sports Marketer Today Has Its Own Web Site • There Are Content Sites, Team & League Sites, Commerce Sites, and Gambling Sites 21-32 Closing Capsule • Web Sites Can Provide a Revenue Stream – Advertising and Sponsorship – Subscription Fees – E-Commerce • Other Sources, Depending on the Type of Web Site, Are Available 21-33 Closing Capsule • The Most Common Applications for a Sports Marketer’s Web Site Are: – Provide Information – Facilitate Distribution – Enhance Customer Relationships – Facilitate Routine Operations 21-34 Closing Capsule • Other Technology Beyond Internet: – Mobile Technology – Virtual Imaging – EFT – Interactive TV – WiFi – GPS 21-35