Historical Development of Sport Marketing

1
Historical Development of Sport Marketing

• Dr. Sutton
• Sport Marketing
• Fall - 2005

2
P.T. BARNUM

• Most people recognize Barnum as being affiliated
  with the circus -- in reality he did not become
  involved with the circus until he was in his 70s
• Why is Barnum important to the development of
  Sport Marketing?

3
P.T. BARNUM

• Barnum appealed to both the senses of curiosity
  and skepticism which we all possess. Part of us
  that wants to know, part wants to believe, and
  part of us that doesnt believe and wants to be
  proven right --
• The current genre of films about the
  supernatural, 6th Sense, Blair Witch, The
  Haunting, Stir of Echoes, Skeleton Key, The Ring,
  all capitalize on these senses that Barnum played
  to.

4
P.T. BARNUM

• Joyce Heith
• Fiji Mermaid
• Tom Thumb
• These are all examples of how Barnum manipulated
  Human Nature for profit via creating
  entertainment --Ripleys Believe it or not and an
  entire series of Fox TV Shows are Barnums
  descendents.

5
P.T. BARNUM

• Perhaps Barnums greatest marketing enterprise
  was the Jenny Lind Tour
• Jenny Lind or the Swedish Nightingale, was an
  immensely successful singer on tour in Europe,
  Barnum, who had never heard her sing or even seen
  her, was aware of her reputation, and decided to
  engage her services for a tour of America in 1849.

6
P.T. BARNUM

• Barnums agreement with Jenny Lind contained the
  following provisions
• Lind would perform 150 concerts within 18 months
  of arriving in the U.S. -- concerts to be in U.S.
  Havana.
• No less than 1 or 2 concerts per week and no more
  than 4
• Lind has control over all concert content

7
P.T. BARNUM

• Lind will receive a payment of 1,000 per concert
• Barnum must provide Lind a male and a female
  servant, pay traveling expenses for a companion,
  a secretary, all traveling expenses for the
  entire party from Europe and all tour expenses.
• Lind was to paid in advance for the entire tour
  for travel costs (187,500).

8
P.T. BARNUM

• If after 75 concerts, Barnum had realized enough
  income to cover all costs and guarantee himself a
  profit of 75,000 then Barnum also agreed to pay
  Lind an additional 20 of the net profits on the
  remaining 75 concerts
• Lind also had the right to perform free for
  charitable causes with Barnums permission

9
P.T. BARNUM

• Barnum has exclusive rights to all performances
  during the time frame of the agreement
• Now came the time to promote the endeavor (READ
  PASSAGE)
• Remember --the only Media was the press which was
  still in its infancy and remember there was
  limited literacy to begin with.
• What would you do? What did Barnum do?

10
P.T. BARNUM

• Hired writers to travel to Europe and write about
  her concerts for American papers
• Created posters and print ads
• Contest to write an ode that would be put to
  music and sung by Jenny Lind
• Auction in lieu of selling tickets at first
  concert stop (first ticket sold for 225) grossed
  10,141
• A magazine merchandising efforts

11
P.T. BARNUM

• After first concert Barnum changed terms and she
  not only received the 1000 but a percentage of
  net profits
• The tour was cancelled after 95 concerts (Ms Lind
  was exhausted and decided she should become her
  own promoter)
• How successful was the tour?

12
P.T. BARNUM

• The tour grossed 712, 161
• Jenny Lind received 176,675
• PT Barnum received 535,486
• What did we learn -- that Barnum was a genius at
  creating awareness and interest in what he had to
  sell -- he used the media more effectively than
  anyone because he understood his market and how
  they behaved.

13
P.T. BARNUM

• Are there any modern day Barnums?
• Madonna
• Don King
• Dennis Rodman
• Howard Stern

14
A.G. Spalding

• Spalding was the one of the first professional
  athletes to capitalize on his fame and reputation
  to create a business
• Baseball Guide
• Official
• Creating a market for his products through
  instruction (manuals, clinics, exhibitions.
  tours) -- eduselling

15
Bill Veeck

• Veeck viewed baseball as being in the
  entertainment business. He felt that to attract
  fans to the ball park he needed more than just a
  winning team (core) he needed to be entertaining.
  He needed to attract the casual fan as well as
  the dedicated fan. (READ QUOTE)
• Regardless of winning, a team needs to be
  promoted and marketed.

16
Bill Veeck

• In 1941 Veeck bought a minor league team in
  Milwaukee when he went to the first game, the
  club which had a 19-43 record at the time had 22
  people in attendance.
• At the next game, after an extended road trip, -
  the attendance was almost 4,800 -- what happened?
• Create attention and show commitment and interest

17
Bill Veeck

• Greet em and thank em -- and ask them what they
  think.
• Core Vs. Product Extensions -- Home Field
  Advantage
• Meeting the needs of the market Rosie the Riveter
  Night --
• Safaris -- 15,599 w/capacity of 9,000

18
Bill Veeck

• Cleveland
• Set attendance record of 2.6 million in 1948 that
  lasted almost 50 years
• Supported integration -- Doby, Paige
• A city owes nothing to a baseball team
• Baseball is not a civic monument, it must be
  packaged attractively and promoted
• Everyday was Mardi Gras and every fan was king
  or queen

19
Bill Veeck

• Customers come to the ball park for
  entertainment and excitement
• A non-winning team has to sell something besides
  its won/loss record to attract attendance
• Never announce what you are going to do before
  you do it (gesture)

20
Bill Veeck

• Innovations
• Fireworks
• Circus Acts
• Max Patkin
• Segment demographic, psychographic and
  geographic nights
• Comfort and Cleanliness -- Guest Relations
• Uniform Numbers
• Grandstand Managers Night Gaedel

21
Charlie O. Finley

• Interested in speeding up game with mechanical
  innovations
• Make game more exciting colorful
• Designated hitter and runner
• Night World Series All Star Game
• Ball Girls Mascots
• Interleague Play
• Platoon Baseball