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Chapter 3
Marketing Principles Applied
to Sport Management
What Is Sport Marketing?
• Create demand
– Create, Promote, Deliver goods to consumers
• Obtain the best possible understanding of what
consumers want
• Includes the marketing of
– products, such as equipment, apparel, and
– services, such as skill lessons or club
– entities, such as leagues, teams, or individuals
History of Sport Marketing
• Mark McCormack
– Founder of IMG; first sport marketing firm in 1960s
– Now international and broad categories
• Categories
Sport Broadcasting
Promotional Strategies
Evolution of Sport Broadcasting
• From pure, factual reporting
aimed at sport fans to sport
entertainment aimed at masses
• Roone Arledge: ABC Monday
Night Football; combined
entertainment and sports
• Led to proliferation of sport
– ESPN (ESPN2, etc.)
– Big Ten Network
© Comstock Images/Getty Images
Sport Sponsorship
• Sponsorship:
– The acquisition of rights to affiliate or directly
associate with a product or event for purpose of
deriving benefits related to that affiliation
• Albert G. Spalding
– Use of the word official
• Mark McCormack
– Built IMG through golfer Arnold Palmer
• Nike and Air Jordan
– Packaging of the Nike brand, product, advertising,
and athlete into one personality
– Ambush marketing
Product Extension and Promotion
Bill Veeck
Team must provide reasons other than the
game itself for people to attend and support
1. Create the greatest joy for the greatest number
of people
2. Ensure a pleasurable attending experience
3. Create conversation
Research in Sport Marketing
• Matt Levine
– Credited with formalizing customer research in
sport industry; audience audit, intercepts, focus
• Pass-by interviews:
– On-site interviews in heavy traffic areas such as
– San Jose Sharks logo and colors changed as a
result of pass-by interviews
The Marketing Mix
• Controllable variables that company puts together
to satisfy a target group
• 4 Ps:
Product (actual event vs. experience)
Price (depends on value or perceived value)
Place (preselling and exceptional locations)
Promotion (advertising, personal selling,
publicity, and sales promotion, public relations)
• Identifying subgroups of overall
marketplace based on demographic,
geographic, psychographic & product usage
• Ethnic marketing
– Growth of Hispanic population, ESPN
• Generational marketing
– Generation Y and action sports
Fan Identification
• The personal commitment and
emotional involvement customers
have with sport organization
• Enhanced long-term loyalty in
sport fans
• Sponsorship opportunities resulting
from ability to tap into strong
emotional connection between a
fan and his or her sport team
Relationship Marketing
• Builds mutually satisfying long term relations with
key parties (consumers, suppliers, distributors)
• Begins with customer and encourages integration
of the customer into the company
• Builds relationships through communication,
satisfaction, and service
• Examples:
– Loyal fan gift rewards, special access to
players, and special access to information
Key Skills
Oral and written communication
Data analysis
Computer capabilities
Personnel management
Understanding of the sport
Current Issues: Cost of Attendance
• Drastic increase in cost of attending MLB, NBA,
NHL, and NFL games
• Increasing evidence that sport fans are not willing
or able to pay such prices
– Do not see the value of attending a game
• Significant challenge for sport marketers is to
develop relationship marketing strategies
• Key challenge for anyone in team sport marketing
is increasing revenues for sport teams
Current Issues: Database Marketing
• Creating a database that includes consumer names,
addresses, and other demographic information
• Managing database by developing and delivering
integrated marketing programs
– Including promotions and sales offers to
targeted consumer segments
• Database marketing is often an integral factor in a
company’s decision to sponsor an event
Current Issues: Cluttered Marketplace
• Numerous and varied entertainment options are
available to a consumer with leisure time
• Added technological options for the next generation
of sport fans
• Marketplace cluttered for sponsors
– Rise in number of athletes and events, increase in
number of advertising opportunities available
• Future
– Heightened focus on marketing mainstream
sports to youth; increased challenge for sport
entity to demonstrate how sponsor will benefit
from a sponsorship
Current Issues: Image
• Development and cultivation of a positive image is
becoming increasingly important in sport
• Cluttered marketplace: Imperative that
corporations identify sports, events, or
athletes that have unique images
• Corporate and athlete ethical scandals
• Result:
• Corporations are more discerning in ways that
they spend their sponsorship and endorsement
dollars; they may now spend more on nonprofit
organizations and causes.