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1. To describe the basics of sports marketing.
2. To examine how sports marketing has
impacted sports.
3. To discover how companies use sports
marketing to reach consumers.
4. To explain the concept of target marketing.
5. To conclude sports marketing is essential
to the funding of sport.
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• The Marketing Mix
• Market Segmentation & Sports
Products
• Methods of Sports Marketing
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• Is the practice of pricing, planning,
promoting, selling and distributing a
company’s products
• Is performed with the attempt to meet the
needs and wants of consumers
• Help companies to reach a competitive
advantage
Competitive advantage - occurs when a company
operates in a more efficient manner than its
competitors, which causes their sales to
increase above other businesses
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• Defines the key management
decisions needed to be successful in
marketing
• Includes four basic marketing
strategies, known as the “ 4 Ps”
– price
– product
– place
– promotion
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• Is customer driven
• Relates directly to a company’s target
market
• Includes four interrelated concepts and
tactics
• Refers to the variables a company can
control
Target market - a particular group of
consumers a company classifies as the
main focus of its marketing plan
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Price
Place
Promotion
Product
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• Includes a wide range of functions and
strategies, including:
– creating a sales price or
price list
– calculating mark-up percentage
– using promotional pricing techniques
– understanding pricing laws
and discrimination
– determining discounts, credit terms and
available payment methods
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• Includes the following:
– selecting which products to buy and sell
– researching and creating product designs
– naming and packaging products
– updating, improving or eliminating
products from a product line
– examining the product life
cycle
– adding features to an
old product
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• Is also described as “distribution”
• Refers to introduction of the product to
consumers and determining appropriate
transportation or delivery methods
– using semi-trucks or airfreight carriers
– utilizing intermediaries or wholesalers in the
distribution process
• Includes whether or not
products should be sold
online, in certain countries
or globally
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• Relates to the timing of promotional
campaigns
• Refers to the type of message
communicated to customers
• Requires selecting media
outlets
• Creates activities and
strategies to increase sales
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• Relate to sports and recreation
industries because each provides:
– a method of identifying place
 for example: in Houston, Texas, there would
be a greater demand for Houston Astros
memorabilia than New York City where the
Yankees play
– aid for promotion
 for example: major athletes endorse
and promote a variety of products for
numerous companies
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• Is all of the marketing activities designed to
satisfy sports consumers
• Uses mainstream or alternative sports and/or
the figures associated with these sports to
connect with a targeted group of consumers
• Builds positive brand awareness
• Supports retail and sales promotions
• Can be completed either by a sports
marketing firm or a general marketing firm
Sports consumer - an individual who may play,
watch or listen to sports or read, use purchase
and/or collect items related to sports
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• Focuses on the sport and activities which
accompany a sporting event such as event
planning, promotion, financing and
sponsorship
• Can be divided into two
major categories
– marketing of the sport
• a television advertisement
for the Kentucky Derby
• an Internet banner
advertising the Indianapolis 500
– marketing through the use of sport
• Tiger Woods endorsing Nike® sportswear
• Peyton Manning advertising for DirectTV®
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• Uses market segmentation to identify
their target market; sports consumers
• Has the goal of encouraging the
consumer to act as a customer and
purchase tickets and merchandise of the
marketed sport or company
• Is also involved in the marketing of sports
related products
Market segmentation - a method of analyzing a
market by using specific characteristics to
identify a target market
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• Uses the following characteristics to
help define a target market:
– geographic location
– demographics
– psychographics
Geographic
Location
Demographics
Psychographics
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• Is where the consumer lives
– for example: the states of Kansas and
Missouri are key target markets for the
Kansas City Chiefs
MO
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• Are the statistics used to describe a
population such as gender, age, race
and earnings
– for example: companies such as
CoverGirl® and Secret® have
endorsement deals
with athletes such as
Olympians Nastia Liukin
and Shawn Johnson to
help them market to
young women
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• Are the attitudes or the opinions a
consumer has toward recreational
activities
– for example: a company would use their
money to endorse athletes in the most
popular sports in a particular
country or locality
 England - soccer
 Brazil - soccer
 South Carolina - stock car racing
 Texas - football
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• Contains broad marketing goals and
objectives for an entire company
• Provides direction for the marketing
activities of a company for a specific
period of time
• Is completed to ensure
a company reaps all the
benefits of a particular
marketing strategy
• Helps a company monitor its
performance when marketing products
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• Are the goods, services or ideas related to
sports which provide satisfaction to the
consumer
• Make up a product lines
• Can be classified into the following categories:
–
–
–
–
sporting events
sports information
sports training
sporting goods
Product line - a group of closely related items
which are manufactured or sold by a company
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• Are the main category of sports
products
• Include the following examples:
– games
– competitions
– athletes
– stadiums/arenas
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• Is considered the actual
news, statistics, schedules
and stories associated with
sports
• Uses different media outlets such as
television, radio, Internet and magazines
• Includes the following examples:
– Anaheim Ducks signing a new goalie
– Dwyane Wade’s free throw percentage
– Philadelphia Phillies season schedule
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• Is considered a sports service which is
normally offered through a gym, fitness
center or athletic department in the form
of a camp, clinic or lesson
• Is an intangible product
• Include the following examples:
– Duke Blue Devils basketball camp
– swimming lessons
– quarterback clinic
Intangible products - non-physical services
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• Are tangible products
• Can be purchased at stores or other
retail outlets
• Include the following examples:
– equipment
– licensed merchandise- jerseys, t-shirts,
caps
– collectibles/memorabilia
Tangible products - physical goods which
satisfy a need or want of the customer
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• Contains items which
either work together or
are similar in kind
• Meets the need or want
of a customer group
• Includes the following examples:
– Reebok® may have a running shoe product
line which contains many different styles and
colors, but they all fall into the category of
running shoe
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• Is the total assortment of goods
a company makes or sells
• Includes all of the product lines
offered by a company
– example:
• Reebok®’s product mix would include the
running shoe product line as well as their
lines for athletic clothing, basketball shoes,
football cleats, golf shoes, etc.
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•
•
•
•
Licensing
Sponsorships
Endorsements
Promotions
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• Is the agreement which gives a
company the right to use another’s
brand name, patent or intellectual
property for a royalty
– licensor- company or individual granting
the license for a fee in a contract
– licensee- company or individual paying
for the rights to use the name or property
Royalty - a fee which is paid to the
licensor
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• A video documenting a team’s path to
the championship game
• A Yao Ming Houston Rockets® jersey
• A Pittsburgh Steelers® sweatshirt
Can you think of any other licensing
examples in or out of the sporting
industry?
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• Is the promotion of a company in
association with a property or event
• Generates funds for all facets of sporting
venues
• Helps increase a company’s branding
• Can be flexible
– company can sponsor all or portions of a
sporting event
Branding - the process of forming a mental
association with a company or product
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• Aflac® Player of the Game
• Coca-Cola®…the official soft drink of
today’s game
• AT&T® Center in San Antonio: the
home of the San Antonio Spurs
Can you think of any other
examples of sponsorship?
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• Are statements of approval concerning a
product or service by an individual or
organization on the behalf of the
producer
• Generate publicity through the
use of an individual’s or
organizations celebrity in an
advertisement
• Give familiarity and credibility
to a product by making it
relatable to a consumer
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• A few of the athletes Nike® has or has
had endorsements with include Tiger
Woods, LeBron James and Serena
Williams
• Hanes® is endorsed by Michael Jordan
• Canon® has an endorsement deal with
Maria Sharapova
Can you think of other examples of
endorsements?
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• Are in-game or in-concert activities
designed to entertain and advertise to
consumers
• Provide event marketers
with creative ways to
entertain fans
• Offer sponsors with
memorable ways to
advertise to consumers
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• Million-dollar half-time half-court shot
at basketball games
• Free rent half-time kick at a football
game
• Hamburger eating contest between the
periods of a hockey game
Can you think of any other
promotion examples?
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• Ensure companies have a solid sports
marketing plan
• Work with both sides of contract
negotiations to ensure everyone gets
what they want
• Include the following examples:
– Millsport
– The Athletes
Agency
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• Is a multibillion dollar global industry
• Is all of the marketing activities
designed to satisfy sports
consumers
• Uses mainstream or
alternative sports and/or the
figures associated with these
sports to connect with a targeted group of
consumers
• Builds positive brand awareness, support retail
and sales promotions and gain an overall
advantage in their market
• Can be completed either by a sports
marketing firm or a general marketing firm
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1.
A ________ occurs when a company operates in a more efficient
manner than its competitors.
A. Monopoly
B. Competitive advantage
C. Oligarchy
D. All of the above
E. None of the above
2.
List the 4 Ps of marketing.
3.
A ______ market is a particular group of consumers a company
classifies as the main focus of its marketing plan.
A. Core
B. Focus
C. Target
D. All of the above
E. None of the above
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4.
______ is also described as distribution.
A. Price
B. Product
C. Place
D. Promotion
E. None of the above
5.
Give an example of how sports marketing uses the 4 Ps.
6.
______ is a method of analyzing a market by using specific
characteristics to identify a target market.
A. Market segregation
B. Market segmentation
C. Market analysis
D. All of the above
E. None of the above
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7.
List two of the three characteristics used in market
segmentation.
8.
A _______ is a group of closely related items which are sold
or made by a company.
A. Product segment
B. Product mix
C. Product line
D. Product code
E. None of the above
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9.
An athletic jersey would be considered a/an
___________ product.
A. Intangible
B. Tangible
C. Biased
D. Core
E. None of the above
10. ______________ is the agreement that gives a company the
right to use another’s brand name.
A. Sponsorship
B. Endorsement
C. Licensing
D. Promotion
E. None of the above
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• (2004-2009). Retrieved March 30, 2009,
from Edraw Soft: www.edrawsoft.com
• (2009). Retrieved March 30, 2009, from
Tide.com: http://www.tide.com/enUS/index.jspx
• 2009. (n.d.). Retrieved March 30, 2009,
from LetsGoDigital: www.letsgodigital.org
• Gilbert, S. J. (2007, October 29). Marketing
Maria: Managing the Athlete Endorsement.
Retrieved March 30, 2009, from Harvard
Business School:
http://hbswk.hbs.edu/item/5607.html
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