Historical Eras in Sport Marketing

1. Historical Eras in Sport Marketing This Photo by Unknown Author is licensed under CC BY-SA

2. The sport industry is a BIG business! A study showed the sport business industry to be a $152-billion dollar industry and the 11th largest industry in the United States. That represents a 242% increase, indicating that the industry has grown almost 2 1⁄ 2 times larger in 10 years.

3. Hillerich & Bradsby’s Marketing Plan • In 1921, Hillerich & Bradsby Co. (H & B), producer of the Louisville Slugger baseball bat, became the industrial leader in baseball bat production. H & B’s market position resulted from the implementation of a market plan. The market plan included an analysis of external and internal forces.

4. HISTORICAL ERAS

5. Sport marketing micro activities existed before 1880: • • William Fuller’s tactics in promoting boxing in Charleston, South Carolina during 1824 was the beginning. • • Michael Phelan’s promotion of billiards and billiard tables during the 1850s and 1860s marked a significant advance over earlier boxing promotions. • The commercialization of baseball began with the charging of an admission fee for a series of all-star matches between New York and Brooklyn played at the Fashion Course in 1858 (Goldstein, 1989). The Era of Origins: 1820–1880

6. • During the period of Institutionalized Development, sport products were branded and trademarked. • • After 1880, sporting goods manufacturers and sport promoters began to develop the relationships between product quality and price and market segmentation and sales. • Market-segmentation-identifying groups of consumers based on their common needs. The Era of Institutionalized Development: 1880–1920

7. • Promotional activities expanded in volume and intensity between 1880 and 1920 and became more highly organized. • • Market growth in terms of increased population was tremendous between 1880 and 1920. • • Population expansion and concentration were accompanied by a significant increase in discretionary money. The Era of Institutionalized Development: 1880–1920 (cont’d)

8. Improvements in the standard of living and an increase in spending money made sport increasingly available among Americans. The Era of Institutionalized Development: 1880–1920 (cont’d)

9. The revolution in distribution made possible by the railroad was also influenced by the telegraph and the telephone. • • Technological changes influenced the production of certain kinds of sporting goods. • • The advent of the 10-cent magazine between 1885 and 1905 added another external force for sport marketers to use and contend with. • • The increased production capacity of manufacturers, the revolution in distribution and communication, and the revolution in advertising made economies of scale possible and necessary The Era of Institutionalized Development: 1880–1920 (cont’d

10. Economies of scope became common after the creation of Thomas E. Wilson Company in 1913. • Thomas E. Wilson (July 11, 1868 – August 4, 1958) was the founder of Wilson Sporting Goods and the Wilson and Company meatpacking company.[1] • In 1917, he was hired to take over the management of a failing meat packing company in Chicago, which was subsequently named after him, making Wilson & Company the 3rd largest meat packing company in the country. • In 1926, he created one of the most recognizable brand names in the world, known as Wilson Sporting Goods. He served as President and Chairman of the Board of Wilson & Co for 35 years. The Era of Institutionalized Development: 1880–1920 (cont’d)

11. • Increased popularity and diversification of sport interests have increased market size. • • Industry profitability has fluctuated through turbulent periods. • • Government policies have also influenced sport marketing. • • Technological changes have influenced both how and from what materials sporting goods are made. • • Economies of scale have been made possible by new materials and new manufacturing techniques, new and more economic forms of transportation, and new and more effective forms of communication The Era of Refinement and Formalization: 1920–1990

12. The era of refinement and formalisation 1930–present [1988] - • Further development and refinement of principles and practices developed in the preceding period

13. GROWTH IN SPORTS

14. Gene Sarazen/Professional Gol • In 1923, Wilson Sporting Goods signed professional golfer Gene Sarazen to a deal that lasted until Sarazen passed away in 1999 • Longest running endorsement deal in sports history

15. 1870’s Baseball cards sold in pack of cigarettes • Jesse Owens received free shoes in the 1936 Berlin Olympics from Adidas Marketing History

16. History • William “Bill” Veeck was inducted into the Baseball Hall of Fame for his innovations in sports marketing

17. History • Linking athletes to corporations was the brainchild of agent Mark McCormack

18. Sporting Goods Industry 1899–1905 (N = 516)

19. The Marketing of the Sport • Promotion of events trough media, radio, or online advertisements • The Marketing through the sport • Manufacturers promote their products by using connections to sports

20. As early as 1932, Olympic gold medalist Mildred “Babe” Didrikson Zaharias not only excelled at most sports, she was also an impressive sports promoter All around skills inspired men and women, as well as sports marketers, when few women received public recognition for their athletic abilities

21. The status of women in sports has advanced in the 20th century, especially in the last 20 years • 1970-71 – 294,00 girls competing in high school athletics • 1998-99 – 2,652,00 girls competing in high school athletics • 1973 Billy Jean King defeated Bobby Riggs in “The Battle of Sexes” Tennis Match Women’s Sports

22. History Women’s Sports – cont. • The Battle of Sexes • Billy Jean King vs. Bobby Riggs • September 20, 1973 • Houston Astrodome • King def. Riggs 6-4, 3-6, 6-3

24. Women’s Sports – cont. • On June 23, 1972, the enactment of Title IX, the Education Amendment, advanced girls’ participation in sports • Title IX: law that bans gender discrimination in schools that receive federal funds • Budgets do not have to be equal, but they have to be comparable

25. Despite years of protesting by tennis pioneer Billie Jean King and others, in 2005 the French Open and Wimbledon still refused to pay women's and men's players equally through all rounds. In 2005, Williams met with officials from both tournaments, arguing that female tennis players should be paid as much as male tennis players.[43] Although WTA tour President Larry Scott commented that she left "a very meaningful impression", Williams's demands were rejected. The turning point was an essay published in The Times on the eve of Wimbledon in 2006. In it, Williams accused Wimbledon of being on the "wrong side of history", VENUS WILLIAMS AND Wimbledon (Tennis champions)

26. History • Beginning in 1984, the IOC allowed 43 corporate sponsors to sell “official” licensed Olympic products • The Amateur Rule was overturned in 1986, allowing professional athletes to compete in Olympics • Allowed NBA “Dream Team” to compete • Responsible for the enormous boost in popularity of basketball on an international basis