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Sports Marketing 1119 Instructor: Dave Doroghy 604 732 7808 [email protected] Brandweek Magazine Quote Phil Knight the President and Chairman of the Board of Nike is quoted as saying: “Sport is the culture of the United States and will before long define the culture of the entire world” Lesson One Book Definition Sports marketing consists of all activities designed to meet the needs and wants of sports consumers through the exchange process. Sport marketing has developed two major thrusts: the marketing of sports products and services directly to the consumer of sport, and marketing of other consumer and industrial products or services through the use of sports promotion. Lesson One Where do Sports Rank ? Based on 1995 American Industry Statistics it is a 152 Billion Dollar Industry 11th largest industry in America Lesson One The 1990’s were the Golden Decade of Sports Value of franchises continue to increase Superbowl dominates NHL, NBA expansion Interest in sport for women and girls surged Mainstream publications covering sports Hollywood expands sport interests 2100 hours of network sports programming in ‘96 Naming rights for arenas Lesson One Top 5 Favorite Sports in USA Today Pro Football Baseball Pro basketball College basketball College football Lesson One Trend toward consolidation Eisner / Disney Murdoch / Fox Turner / Time Warner Clear Channel Canadian Examples ??? Lesson One Strategies SWOT Analysis - Rochester Royals The 5 P’s in the Sports Marketing Mix • • • • • Product Price Place Promotion Public Relations Lesson One Escalator Concept TARGET TARGET TARGET TARGET Borrowed Equity Ambush Marketing Product Development and Positioning What Sports Appeal to What Audiences ? Lesson One Historical Facts 1921 baseball authorized the sale of radio rights for the World Series for $3,000 which was divided between the two teams 1935 the Gillette Company decided to broadcast sporting events In 1969 53% of advertising expenses went to the 3 major networks and print magazines such as LIFE. In the 90’s that figure dropped to 25% as budget allocation emphasized more event promotions. Lesson One