Title: Sports Marketing: A Strategic Perspective Third Edition Matthew D. Shank
1Sports Marketing A Strategic PerspectiveThird
EditionMatthew D. Shank
- CHAPTER 1
- EMERGENCE OF SPORTS MARKETING
2Understanding the Sports Industry
- What is sport?
- Sport - Source of diversion or physical activity
engaged in for pleasure - Sports as Entertainment - Reebok president Robert
Meers, Weve recognized for several years that
sport is part of entertainment. The market now is
really sports, fashion and music. We cant
expect to ignore reality and survive.
3Growth of the Sports Industry
- 11th largest of all U.S. industry groups
- Nations output for sports goods and services
estimated at 213-350 billion annually - How do we measure growth in the sports industry?
- Growth measured in..
- Attendance Figures
- Media Coverage
- Employment Figures (4.5 million jobs)
- Global Markets
- Sports Goods
- Sports Information
4Growth of the Sports Industry
- The sports industry generates estimates of 213 to
350 billion dollars per year in revenues. As
ESPN founder Bill Rasmussen points out, The
games are better, and well the athletes are just
amazing and it all happens 24 hours a day.
Americas sports fans are insatiable. - Attendance is increasing
- The NFL experienced a record number of fans in
the 2003 season (regular-season total paid
attendance of 16,913,584 and the average of
66,328 per game were both all-time records) - The NBA 2003-2004 season also produced a record
increase - MLB down 0.4
- NHL continues to decline slighty in attendance
(16,591 to 16,533) and popularity - NASCAR continues to increase
- Sports Sponsorship Spending Exceeds 9 Billion
Mark - New Leagues (AF2, NWFL, NLL, WHA)
5Growth of Sports Industry
- Sporting Good Industry
- Sports Equipment (17.5 billion)
- Exercise equipment
- Golf
- Guns and Hunting
- Recreational Vehicle and Water Scooters (17.9)
- Sports Apparel (22.3)
- Footwear (9.3)
- Collectibles and Memorabilia
- 1.2 billion at height in 1991 and now stable at
500 million - Sports Information
- 3.2 circulation of SI
- 34 use Internet for sports Info
- ESPN.com reaches 15 million unique users
6Growth of Sports Industry
- Media Coverage is Increasing
- 200 million people watched NBC coverage of the
Summer Olympic Games and 3.7 billion people
watched worldwide - ESPN, the original sports-only network launched
in 1979, reaches some 76 million homes with its
4900 hours of sports programming and, remarkably,
ESPN2 reaches 65 million viewers. - 2.3 billion to secure the broadcast and cable
rights for the Olympic Games in 2004, 2006, and
2008 and additional 2.2 billion for 2010 and
2012 - Overall for the week, NBC averaged 26.7 million
viewers in primetime, more than three times the
7.2 million for second-place CBS. ABC was third
with 4.5 million, followed by Fox with 4.4
million. - 2.64 billion paid by NBC and Turner Sports to
televise NBA contests, 18 billion paid by the
networks for the NFL, 2.5 billion for post
season MLB - New sports networks, such as the College Sports
Television, Tennis Channel, Blackbelt TV, and the
Womens Sports Network - Internet, satellite stations, and pay-per-view
cable television are growing in popularity
7Opportunities in the Sports Industry Academics
- Over 200 Academic Programs in Sports
Administration - NKU 120 Majors and growing
8Opportunities in the Sports Industry Careers
- Upwards of 4.5 million sports-related jobs in
sports administration - 13 career areas in sport. These include event
suppliers, event management and marketing, sports
media, sports sponsorship, athlete services,
sports commissions, sports lawyers, manufacturers
and distribution, facilities and facility
suppliers, teams, leagues, college athletics, and
finance - Marketing Public Relations
- Professional Sports
- Intercollegiate Sports
- Youth Sports
- Olympic Sports Organizations
- Regional and National Sport Commissions
- Amateur Sports
- Corporate Sports Marketing
- Sports Marketing Firms
- Licensing Firms
9What is Sports Marketing?
- Sports Marketing - The specific application of
marketing principles and processes to sports
products and to the marketing of non-sports
products through association with sport.
10Simplified Model of the Consumer-Supplier
Relationship in the Sports Industry
Producers/Intermediaries Sports Labor Sanctioning
Bodies Sponsors Media Agents Equipment
Manufacturers
Products Events Sporting Goods Personal
Training Sports Information
Consumers Spectators Participants Corporations
11Classification of Sports Spectators
In-Person
Mediated
Individuals
Corporate
12Classification of Sports Participants
- Unorganized Sports Participants
- Organized Sports Participants Amateur
- Youth Recreational Instructional
- Youth Recreational Elite
- Schools
- Intercollegiate
- Professional
- Minor/Secondary
- Major
13The Sports Product
- Sports Product - A good, service, or any
combination of the two that is designed to
provide benefits to a sports spectator,
participant, or sponsor.
14Types of Sports Products
- Sporting Events
- Athletes
- Arenas/Stadia
- Sporting Goods
- 60.2 billion industry comprised of four segments
(equipment, transportation, apparel, and
footwear) - Collectibles and Memorabilia
- Sports Training
- Fitness and Health Services
- Sports Camps and Instruction
- Sports Information
- Newspapers, Internet, Magazines, Radio, etc.
15The Sports Product Map
16The Sports Marketing Exchange Process
Something of Value
Exchange Players
Exchange Players
Something of Value