Sports Marketing: A Strategic Perspective Third Edition Matthew D. Shank

1
Sports Marketing A Strategic PerspectiveThird
EditionMatthew D. Shank

• CHAPTER 1
• EMERGENCE OF SPORTS MARKETING

2
Understanding 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.

3
Growth 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

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Growth 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)

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Growth 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

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Growth 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

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Opportunities in the Sports Industry Academics

• Over 200 Academic Programs in Sports
  Administration
• NKU 120 Majors and growing

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Opportunities 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

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What 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.

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Simplified 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
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Classification of Sports Spectators
In-Person
Mediated
Individuals
Corporate
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Classification of Sports Participants

• Unorganized Sports Participants
• Organized Sports Participants Amateur
• Youth Recreational Instructional
• Youth Recreational Elite
• Schools
• Intercollegiate
• Professional
• Minor/Secondary
• Major

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The 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.

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Types 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.

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The Sports Product Map
16
The Sports Marketing Exchange Process
Something of Value
Exchange Players
Exchange Players
Something of Value