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Chapter 2

Chapter 2 . College and Amateur Sports. Lesson 2.1 . Marketing College Athletics. Effects of Collegiate Sports - Objectives. Explain the importance of the NCAA and team rankings to college sports Define market segmentation

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Chapter 2

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  1. Chapter 2 College and Amateur Sports

  2. Lesson 2.1 Marketing College Athletics

  3. Effects of Collegiate Sports - Objectives • Explain the importance of the NCAA and team rankings to college sports • Define market segmentation • Discuss the growing market surrounding women’s college athletics

  4. Effects of Collegiate Sports • A winning team has implications not only for the school but also for the community, the region, and the state. • All businesses in a college community benefit from the success of its primary team through increased media coverage. • Marketers strive to promote a strong public image of the team through various media outlets. Remember promotion is a means of communication to persuade, inform, or remind people about the college athletics.

  5. Rules and Rankings • The NATIONAL COLLEGE ATHLETIC ASSOCIATION (NCAA) is the governing body of most college and university athletic programs. It creates and enforces guidelines and rules that schools must follow in order to remain in good standing.

  6. NCAA Guideline Areas • Recruitment • Gender Equity • Scholarships • Prohibition of Gambling • Other Ethical Issues

  7. NCAA’S Overall Focus The NCAA’s overall focus is on the integrity of the athletes and their game. The NCAA strives to keep athletics an important, solid, and respectable part of college life and to help the athletes succeed with both their studies and their sports.

  8. Conditions for Joining the NCAA • Obtain accreditation by the recognized accrediting agency of its region • Offers at least 4 intercollegiate sports for men and four for women (one in each of the three traditional seasons) • Complies with all NCAA rules • Cooperates with the NCAA enforcement program and accepts penalties imposed by that program

  9. Other Facts About the NCAA • The NCAA serves as a magnet for important sponsors. • The NCAA Corporate partners support intercollegiate athletics financially and provide business and personnel expertise.

  10. College Team Rankings Sports magazines and nationally recognized sports enthusiasts determine college team rankings based on past team performance, talent, team schedules, and personal preferences. The first rankings come out before the seasons begin each year.

  11. Why Emphasize Rankings ? • Early ratings provide excellent promotion for a team as they enter the new season • A highly ranked team builds excitement and strong attendance at games – the ranking also creates fan loyalty and national respect • Preseason rankings influence television to schedule games which in turn brings in more revenue • A high ranking makes it easier for the team to climb to a #1 spot

  12. Post season bowl games pay schools an enormous amount of money. Bowls want teams with a large fan base. • A championship has lingering effects – it increases recruitment of top high school athletes and retailers have high sales returns on items bearing the team logo.

  13. Market Segmentation A Market Segment is a group of individuals within a large market that share one or more characteristics.

  14. The Five Elements of Market Segmentation • Geographic Segmentation – The dividing of markets into physical locations • Demographic Segmentation – Information that can be measured such as income, profession, gender, and education • Psychographics – Focuses on characteristics that cannot be measured such as attitudes, and lifestyle choices • Product Usage – What products you use, how often, , and why • Benefits Derived – The value received from a product or a service

  15. Women’s College Sports • It was not until 1980 that the NCAA focused attention on women’s college sports • In 1981 the support was made formal and 19 championship events were added to the women’s programs • In 1987 the NCAA created the Women’s Enhancement Program which offers an opportunities to college women in the form of post graduate scholarships, internships at the NCAA office, and career help for women who want to continue to play after their eligibility is over

  16. Increased Fan Support Fan support has increased dramatically for women’s athletic programs over the last decade Six national championships at the University of Tennessee have inspired huge attendance figures both at home and away games In 1987 ESPN televised 7 women’s college games – in 1997 - 48

  17. Marketing Opportunities in Women’s Sports A powerful target market has opened up - women now want soccer shoes, baseball equipment, racing bikes, and other sports equipment and sports related items. The success of women in sports has started a tidal wave of marketing opportunities encompassing all the key marketing functions

  18. Lesson 2.2 The Economic Impact of College Athletics

  19. The Economic Impact of College Athletics - Objectives • Understand the benefits of college sports to the home community • Identify benefits of sponsorship and licensing to a team • Explain the reasons for realignment of college conferences

  20. Benefits to the Community • Good for the Town’s business • Good for the Stadium’s business

  21. Sponsorships and Licensing • Sponsorships generate revenue for the college athletic program • Sponsorships also allow the sponsor to sell their products and services during major college sporting events • Name brand apparel is very apparent during major college sporting events • Corporations hope fans will buy the same products used by their team • Corporate use creative promotional strategies to attract attention

  22. Licensing • A license is a legal right to reproduce a team’s logo in exchange for payment • The mission of the athletic licensing and sales office at a university is to protect the use of the athletic department’s name and symbols and to ensure that the public can properly identify and associate logos on products with the institution • In 1997 colleges and universities agreed to 2000 licenses worth over 2.5 billion dollars

  23. Conference Realignment • A conference is a group of college athletic teams within the same region • Conferences are created to have playing associations of manageable sizes and to be able to assign competitive teams in a fair and organized manner • In the 1990’s changes in the conferences were made to increase revenues • Conference changes also create new rivalries

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