Incentives

1
Incentives

• Incentives are items of perceived value added to
  an offer to encourage some overt
  __________response.

2
Incentives

• Incentives are items of perceived value added to
  an offer to encourage some overt behavioral
  response.

3
Incentives defined

• To whom are they targeted?
• What is altered by the offer?
• What kinds of things are usually offered?
• What stage of the communication process (AIDA) is
  targeted?

4
Incentives defined

• To whom are they targeted? Insufficiently
  motivated, indifferent or apathetic
• What is altered by the offer?
• The perceived price
• What kinds of things are usually offered?
• price deals, premiums, contests, samples
• What stage of the communication process (AIDA) is
  targeted? Action

5
Price-based incentives

• Whats wrong with this picture? What are some
  possible risks of this incentive?
• http//www.akronaeros.com/freetickets/
• Suppose that you are going to run a price deal
  for this Saturdays game against SMU. How should
  you do it?
• Be specific (viz., p.55)
• Ideas available on p.56, table 3.1

6
Price-based incentives

• Whats wrong with this picture? What are some
  possible risks of this incentive?
• http//www.akronaeros.com/freetickets/
• Suppose that you are going to run a price deal
  for this Saturdays game against SMU. How should
  you do it?
• Contingency-based
• Fans have to do something prior to the game to
  get it (e.g., go to HEB, etc.)
• Value-added incentives (giveaway) are better
• It should match a sponsors objectives for a
  specific target market
• It should include a way of building a database to
  target this segment in the future

7
When to do a deal

• Which do you think is better?
• Run promotions infrequently or frequently?
• Run promotions during weekdays or other times
  when low attendance is expected?
• Run promotions when high attendance is expected?

p.57
8
What is an incentive?

• The text discusses incentives in terms of
• the NBA FIFA changing rules to increase scoring
  
• Star players (McEnroe)
• Place-based incentives such as new stadiums
• Are these really incentives as defined by the
  text?

9
What is an incentive?

• The text discusses incentives in terms of
• the NBA FIFA changing rules to increase scoring
  
• Star players (McEnroe)
• Place-based incentives such as new stadiums
• Are these really incentives as defined by the
  text?
• No, the authors forgot what they were writing
  about. Incentives are items geared toward
  eliciting an overt behavioral response (read
  immediate). These changes are changes in the
  product or distribution of the sport and are
  geared toward changing longer-term responses.
  Otherwise, the rules would change back or the
  stadiums would disintegrate or something like
  that.

10
Motives for sport Involvement

• Achievement
• Craft
• Affiliation
• Health and/or fitness benefits
• Fun Festival

11
Achievement

• How to fans engage in vicarious achievement or
  BIRGing? Give examples from your experience.
• How does this directly affect the financial
  success of teams with high identification?
• Why do fans have a high need to gain knowledge
  about the team/players?
• How can teams facilitate this need?

12
Other effects of BIRGing

• Horm Behav. 1992 Dec26(4)486-504. Related
  Articles, Links
• Winning, losing, mood, and testosterone.McCaul
  KD, Gladue BA, Joppa M.Department of
  Psychology, North Dakota State University, Fargo
  58105.In two experiments, male college students
  either won or lost 5 on a task controlled
  entirely by chance. In both studies, winners
  reported a more positive mood change than did
  losers and, in Experiment 2, winners reported a
  more positive mood change than a neutral group
  that did not win or lose money. After the task
  was completed, winners exhibited significantly
  higher testosterone levels than losers. Levels of
  cortisol, a hormone associated with stress and
  arousal, did not differ among the groups,
  suggesting that a hormone-behavior response
  pattern for winning and losing is specific to
  testosterone. These data suggest that winning can
  alter testosterone levels in men and that mood
  may mediate such changes.

13
Craft

• The opportunity to observe star players perform
  their craft often ranks as one of the most
  important factors in attracting attendees and
  media consumers to pro sports. (p.63)
• Who is one of your favorite NFL players?
• Which is the biggest reason that you watch this
  player?
• to appreciate his/her craft or skills, or
• to BIRG in order to enhance self-esteem?
• What is the connection between BIRGing, craft,
  and affiliation?
• How can BU use the craft motive to increase
  attendance at football games?

14
C2C Affiliation

• Assume you are faced with the unenviable task of
  promotion manager for the Padres (or one of the
  other teams) mentioned in this article.
• How would you use incentives to improve
• Intragroup affiliation
• Transgroup affiliation
• Intergroup affiliation

15
C2O affiliation

• How should the Padres market to minorities?
• African-American
• Hispanic

16
The Padres Hispanic Marketing

• There is only one minority general manager in all
  of Major League Baseball Ken Williams of the
  Chicago White Sox. The highest ranking
  African-American ever in the Padres front office
  was Dave Stewart, once a special assistant to
  general manager Kevin Towers.
• In professional baseballs melting pot, about 30
  percent of todays players are Latino, says
  Enrique Morones, vice president of Hispanic and
  international marketing for the Padres. As far
  as the players, says Morones, I think teams
  will play is the best at a positionthough its
  not always been that way.
• But theres not parity for all, and there arent
  the same opportunities for everyone in the front
  offices, he says. Were fortunate in San Diego.
  We were the first team to concentrate on Hispanic
  marketing. That practice began in 1995. The
  Arizona Diamondbacks and the Florida Marlins
  picked up on the concept in 1997.
• Morones believes Padres owner John Moores
  believes in racial equality, but Morones says
  more than anything else, economic factors have
  caused owners to focus on Latinos. Owners like
  the color green more than any other color, he
  says. Before John Moores bought the team, 50,000
  of the 1 million fans who came to games were
  Latino. Now, its 600,000 of 2.5 million.
• The Padres advertise special promotions in Mexico
  for many Sunday games. As a result, We get a
  spike in anonymous calls after Sunday games from
  people wondering why we fly the Mexican flag at
  Qualcomm, says Tim Katzman, a special assistant
  to the president of the Padres. I think its
  more of a nationalist view than a racist view,
  but the line does get blurred.