Chapter 4Marketing

Products and Services Through

Sports

Chapter Overview

4.1 Using Sports to Market Products4.2 Sponsorship4.3 Promotion4.4 Endorsements

Lesson 4.1Using Sports to Market Products

Market Audience Size1997-24.7 Million Golfers, 152 Billion spending by sports advertisers1992-1,800 Hours of sports on TVIf you want to see the team, game, or athlete, you have to see the ad

Emotional Ties

New Market Power

Women make up 80% of all purchasing decisionsMen have larger portion of promotion and endorsement dollars

Marketing TheoryCompany buys rights to advertise during a game/use a logo on products it makes.

TV/Radio networks sell broadcast time to teams and their sponsors.

Cities buy the rights to host teams; must sell this idea to the taxpayers.

Consumer buys the products advertised during the game.

Lesson 4.2Sponsorship

What is a Sponsor?Person, organization, or business that gives money or donates p/s to another person, organization or event in exchange for public recognition.

Reasons for Sponsorship

Inc. salesIntroduce new p/sCompete where potential customers are in 1 placeIdentified with an event

Earn goodwillShow commitmentEnter new marketEntertain clients, employee,potential customersEnhance co. image

Niche MarketingResearching a target market to determine what a small group of people will buy.Men and Women in different age groups.12-24; 25-34; 35-44

Auto Racing #1 for most loyal fans.Young Men 12-34 most sought after.X-Games, Gravity Games.

Can You Sponsor Anything?

Affinity Sports: niche marketing whose participants are passionate about their sports. Ex????Loss of Sponsors: Tobacco and Alcohol bans and Ad blackouts.

Lesson 4.3Promotion

All About PromotionPublicizing or advertising a p/s or event with the goal of selling it.Purpose: Make the consumer want the product.Goal: Inc. sales/attendance through persuasion.Objective: Earn $$$$$$

Promotion PlanPersonal SellingAdvertisingPublicitySales Promotion

Personal SellingIn-person, face-to-face communication between a seller and a customer.Advantage: Overcome hesitation on the part of the consumerSeller must be familiar with the product and must want to sell it.

Advertising Publicity

Paid communication between product maker or seller and the audience or customer.Clearly explain the benefits of product.Can occur anywhere.

Free notice about a p/s or event.Articles, sound bitesKeeping your name, event, organization in public view.

Sales PromotionAny action or communication that encourages a consumer to buy a product.Limited memberships, giveaways, coupons, free samples.

Lesson 4.4Endorsements

What is an Endorsement?

Person’s public expression of approval or support for a p/s.Promotional tool rather than form of sponsorship.Legal restrictions on endorsements listed on page 90.

Athlete Endorsements

AdvantagesBuy if endorsed by celebritiesLess likely to turn off commercial with celebrityTend to believe the celebrities

DisadvantagesVery expensiveMay not agree to endorse only 1 productRisk of negative publicity

Should They Speak Out?

Dennis Rodman? Controversial for all?Is there a moral obligation to speak out on issues?Tiger Woods and Nike for worker exploitation?

What To Look For?Positive, charismatic, trustworthy image, respected by consumersCelebrity most consumers knowCelebrity whose career is in processPresents few risksHas a believable relationship with product