WHY IS MARKETING SPORT UNIQUE?

1. WHY IS MARKETING SPORT UNIQUE? DeVos Sport Business MKTG 6710 August 25, 2005 Dr. Sutton

2. What is Sport & Entertainment Marketing? • Sport & entertainment marketing are part of a larger body of marketing known as “lifestyle marketing” • Lifestyle marketing can be defined as a strategy for seizing the concept of a market by its most meaningful recurrent patterns of attitudes and activities and then tailoring products and their promotional strategies to fit these patterns.

3. What is Sport & Entertainment Marketing? • These recurrent patterns are most commonly defined as psychographics (personalities, behaviors and values); demographics, geographics, and product and media usage habits.

4. What is Sport & Entertainment Marketing? • We will define sport and entertainment marketing as: all activities designed to meet the needs and wants of consumers through exchange processes. • Sport and entertainment marketing has 2 major thrusts: the marketing of sport and entertainment products and services directly to consumers and the marketing of other consumer & industrial products or

5. What is Sport & Entertainment Marketing? • services through sport. (Done through sponsorship and/or licensing agreements)

6. How is sport marketing different from other forms of marketing? • The sport product is invariably intangible and subjective -- what each consumer experiences is subjective-- it is subject to different interpretations and also to different degrees. This couples with the fact that when leaving a sporting event, the consumer leaves with a memory compounds the problem for sport marketers in trying to ensure customer satisfaction.

7. How is sport marketing different from other forms of marketing? • The sport product is inconsistent and unpredictable -- There is no script that guarantees the result -- nor can the sport marketer guarantee the quality and consistency of the performance. • New England Patriots, March Madness, Tiger Woods/Sergio Garcia vs.. cars and soft drinks, Lord of the Rings

8. How is sport marketing different from other forms of marketing? • A greater percentage of the marketing emphasis must be placed on the product extensions rather than the core product -- Can’t control the quality of the steak -- but can guarantee the sizzle. • Marketer has little say in the product -- works outside the lines • WNBA

9. How is sport marketing different from other forms of marketing? • The sport product (in an event form) is a perishable commodity: it must be pre-sold --There is no inventory -- it is simultaneously produced and consumed --once a game has been played it has been played -- the empty seats are reminders of what could have been. • Expectations and performance as well as competition are critical factors in preselling.

10. How is sport marketing different from other forms of marketing? • Sport is generally publicly consumed and consumer satisfaction is invariably affected by social facilitation or lack thereof -- Less than 2% of people attend a sporting event alone-- Marketer must create special products and activities to enhance group attendance and facilitate satisfaction.

11. How is sport marketing different from other forms of marketing? • No other product evokes such a strong personal identification and emotional attachment as sport -- THE WE phenomenon. Can be very positive --Cleveland Browns or very negative Aints, Dolts etc.)

12. How is sport marketing different from other forms of marketing? • Sport has an almost universal appeal and pervades all elements of life -- Thus sport marketers have a variety of target markets and must create product variations based upon price and time to provide opportunities for involvement to a variety of these segments.

13. How is sport marketing different from other forms of marketing? • Sport is both a consumer and an industrial good -- sport is produced as an end product for mass consumer appeal for both spectators and participants while at the same time it is being used by businesses as a way to reach their consumers and to sell their respective products and services.

14. How is sport marketing different from other forms of marketing? • Many sport organizations simultaneously compete and cooperate -- While they compete on the field -- they cooperate off the field to insure stability and existence. • Coke vs.. Pepsi, McDonald’s vs.. Burger King? • Jerry Jones and his view of League Think

15. How is sport marketing different from other forms of marketing? • No business other than sport is viewed so simplistically to the point where the consumers view themselves as experts in terms of product knowledge --This is exacerbated by the number of media outlets --talks shows etc, devoted to sport. According to Miller Lite Report 52% feel they could play, 74% officiate and 51% coach – This has given birth to the Fantasy Sports Industry

16. How is sport marketing different from other forms of marketing? • Consumer demand for the sport product can fluctuate widely --difficult to balance supply and demand in a strategic manner. • 1998 San Diego Padres vs.. 1999 • Tampa Bay Buccaneers • Notre Dame football • Miami Heat basketball • Kansas State Football

17. How is sport marketing different from other forms of marketing? • The widespread exposure that sport receives from the mass media has, in a historic fashion, resulted in less emphasis on marketing --when we win they will come. • Remember exposure is publicity which cannot be controlled -- do other products face such a two headed dragon? • UCF Football related soap opera