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Chapter 2 Marketing College Athletics 2.1 Marketing College Athletics 2.2 Economic Impact of College Athletics 2.3 Amateur Sports Sports and Entertainment Marketing © Thomson/South-Western Sports Marketing Learning Targets: I can explain the importance of the NCAA and team rankings to college sports. Sports and Entertainment Marketing © Thomson/South-Western Key Terms: NCAA Market Segment Geographic Segmentation Demographic Segmentation Psychographics Product Usage Benefits Derived Sports and Entertainment Marketing © Thomson/South-Western Effects of Collegiate Sports Winning – has a direct effect on School Local Community Region/State Brings in more money for all involved. Strong Public Image Marketers strive to promote a strong public image of team. What does Promotion do? Inform, Update, Persuade or remind fans and potential fans about the team (college athletics). Sports and Entertainment Marketing © Thomson/South-Western Rules and Rankings What does the NCAA stand for? the National Collegiate Athletic Association NCAA is the governing body of most college and university athletic programs. Currently the NCAA has over 1,200 member schools consisting of both colleges and universities. Overall goal of the NCAA is to promote college athletics. Sports and Entertainment Marketing © Thomson/South-Western Rules and Rankings NCAA Creates and Enforces the Guidelines Rules NCAA covers issues regarding; Recruitment Gender Equity Scholarships Gambling Prohibitions Sports and Entertainment Marketing © Thomson/South-Western NCAA Requirements College / Universities may join the NCAA if they meet the following conditions; 1. Obtain regional accreditation 2. Offers at least four intercollegiate sports four men and four for women (one in each of the three traditional seasons – Fall, Winter, Spring). 3. Complies with all NCAA rules. 4. Cooperates/accept any NCAA penalties and or sanctions. Sports and Entertainment Marketing © Thomson/South-Western Why do schools join the NCAA? 1. Partnership with a well know entity. 2. Exposure for the college / university 3. Money – profit and revenue stream from; Corporate Sponsors TV Broadcast Radio Broadcast Sports and Entertainment Marketing © Thomson/South-Western College Team Rankings Who ranks teams? 1. Associated Press 2. Coaches – USA Today 3. ESPN 4. BCS Why so much emphasis? In some sports decides which teams play for National Championship Creates excitement Increases attendance at home games Helps in the recruiting process Can result in more exposures and money via games broadcast on TV / Radio Sports and Entertainment Marketing © Thomson/South-Western College Team Rankings Types of Rankings 1. Pre-Season 2. Current (during the season) 3. Post-Season #1 has a lingering effect? National Recognition – sports magazines, TV shows Increased retail benefits – championship apparel and memorabilia Increased ticket sales Sports and Entertainment Marketing © Thomson/South-Western In Class Assignment: Handout – 9/25/12 Sports and Entertainment Marketing © Thomson/South-Western Sports Marketing Learning Targets: I can define Market Segmentation. Sports and Entertainment Marketing © Thomson/South-Western Market Segmentation Market Segmentation is a group of individuals within a large market that share one or more characteristics. Example: # of College Basketball fans in the United States. # of UK Wildcat College Basketball Fans. UK apparel and memorabilia will fly off the shelves in Lexington but not be sold in Gainesville or Durham. Markets will change the covers of national publications to fit the region (fan base) which they are sold. Sports and Entertainment Marketing © Thomson/South-Western Five Elements of Market Segmentation Market Segmentation is very much like Target Marketing – you must focus on your customer’s (fans) needs and wants. 1. Geographic Segmentation – dividing markets into physical location 1. Eastern, Southern, Western Regions. 2. Urban or Rural Areas. 3. Parts of cities or towns. 2. Demographic Segmentation – focus is on measurable information. 1. Age, Gender, Marital Status, Income Level, Education Level 3. Psychographics – focus is on characteristics that can’t be measured (values, attitudes, behavior). 1. Attending a game on a holy day. Sports and Entertainment Marketing © Thomson/South-Western Five Elements of Market Segmentation 4. Product Usage – reflects what products you use, how often and why. 1. Marketers try to use information to encourage you to use your preferred products more often or to try new, similar or competing products. 5. Benefits Derived – value consumers (people) believe they receive form the product or service. 1. Enjoyment from watching a good game. 2. Sweatshirt with team logo vs wearing a identical sweatshirt with no team logo. Sports and Entertainment Marketing © Thomson/South-Western In Class Assignment: Handout – 10/1/12 “Apple iPad – Market Segmentation” Breakdown the 4P’s of Marketing Price Place (Location/Distribution) Product Promotion Due Today! Sports and Entertainment Marketing © Thomson/South-Western