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Today:

Today:. More comments on pricing Framework for event management Exploring idea of sponsorship in sport. Most Common Pricing Strategy:. What the Market Will Bear. If hunches are wrong, results can be costly. What could be the result of an incorrect decision?.

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Today:

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  1. Today: More comments on pricing Framework for event management Exploring idea of sponsorship in sport

  2. Most Common Pricing Strategy: What the Market Will Bear If hunches are wrong, results can be costly What could be the result of an incorrect decision?

  3. Special Pricing Factors to Consider User Segmentation Pricing based on user group Corporate/individual season-ticket holder Single-ticket purchasers Special groups Student packages [Un]bundling Would any particular group be more sensitive to price change? Why?

  4. Special Pricing Factors to Consider Time and Place Smoothing Time—bundled packages Prime vs. non-prime time Price scales in venue Key factors—proximity, line of sight, and demand

  5. Understand the Escalator! Price hikes threaten to push consumers off escalator What are some key pricing concerns for a new MLS franchise?

  6. Moving consumers up the escalator Heavy users Light users Medium users Non-consumer sport and leisure fan Non-consumer, non-sport and leisure fan

  7. Events: Frameworks and Guidelines

  8. Perspectives and issuesSome aspects to consider – all inter-related • Type and scale of events • Planning events • Human resources – events personnel • Marketing and forecasting demand • Budgeting and financial management • Sponsorship • Management and evaluation

  9. Event Checklist • Objective – Why are you doing it? • Define your event with a mission statement • Know the rules and regulations that apply

  10. Event Checklist • Target your event to the customer • Think about the personality • Develop Budget

  11. Budget Items • Revenue • Sponsorship • Ticket sales • Merchandise • Media • Programs • F&B

  12. Budget Items • Expenses • General and administrative • Talent • Production • Facility • Television • Sales and Marketing

  13. Advertising Media public relations Advertising production Design fees Collateral materials Direct mail Sponsor costs Entertainment Post event parties Photographer Merchandise Tents Gifts Sales and marketing expense

  14. Budget Items • Cash Flow • Chart when the cash is due to come in and when the major payments have to out

  15. Magic Bag • You have to create a sport event and develop identify the following: • Objective • Mission statement • Organizational structure • Target market • Personality

  16. On Sponsorships in Sports • Define “Sponsorship” in Sport. • What can be sponsored? • Why sponsor? • Why being sponsored? • Why not?

  17. FIFA Fan Fest Sponsorship

  18. MasterCard sponsors the FIFA WC • What in the organization’s marketing mix is such a sponsorship engagement part of? • What do you think are their strategic objectives? • Do you think a sporting event such as the World Cup is a good context for achieving these strategic goals? Why/Why Not?

  19. FIFA • Calls its sponsors “Commercial Affiliates” • Currently divides them into the following 3 categories: • Official Partners (global marketing rights) • Official Suppliers (rights in the host country only) • Licensees

  20. Official Partners ONLY • Official partners of the 2006 FIFA World Cup™ www.adidas.comwww.avaya.comwww.budweiser.comwww.coca-cola.comwww.conti-online.comwww.deutschetelekom.comwww.emirates.comhome.fujifilm.comwww.gillette.comwww.hyundai-motor.comwww.mastercard.comwww.mcdonalds.comwww.philips.comwww.toshiba.co.jpwww.yahoo.com

  21. FIFA restructuring • 2007-2014: includes the flagship FIFA World Cups in 2010 and 2014 • Classifies prospective marketing partners into three categories: • six FIFA Partners (broad range of FIFA activities such as competitions, special events or development programs as well as exclusive marketing assets). • six to eight FIFA World Cup™ Sponsors (rights are limited to the FIFA World Cup™ on a global basis. They consist of the right to category exclusivity, brand association, select marketing assets and secondary media exposure). • four to six National Supporters (category exclusivity, association, local marketing programs and domestic media exposure).

  22. Discuss • How can you understand conceptually the reasoning for restructuring the sponsorship pillar around the FIFA World Cup?

  23. Endorsements: Sub-category of Sponsorships • Beckham as endorser: • Opportunities • Threats

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