Sports Marketing Notes

SEMINAR 1: Introduction to Sports Marketing

Chapter 1: Introduction to Sports Marketing
Marketing Through Sports
Traditional strategies: efforts to incorporate sports into the firms marketing efforts through
implementation of effective target marketing decisions used in conjunction with
appropriate tactics regarding the organizations price, product, distribution and promotional
strategies
Traditional sponsorship: creation of an official relationship between a marketer and sports
property
Venue naming rights: based upon the marketers ability to have its name attached to a
physical facility
Licensing: a contractual agreement that allows a marketer to use valuable trademarks and
brand names of a sports property
Endorsement: popular athletics are used to gain attention and influence selective demand
for a variety of products
Marketing of Sports
1. Access to Spectator Sports Events
- to be more family friendly, some teams have established family seating areas where the
consumption of alcohol is prohibited
- some resorted to selling tickets that feature all-you-can-eat component
- sports event pyramid: local events, regional events, national events, international events,
global events
- as an event moves up the pyramid, it is likely to be perceived as a more viable opportunity
for a company to market its nonsports products through the sports event
2. The Provision of a Venue for Participation Sports
- consumers today are more inclined to participate in sports activities, and this participation
is viewed by many to be in direct competition with the marketer of spectator sports
- many of participation sports can be undertaken by consumers who neither own nor
maintain the facilities in which the participation takes place
- sports marketers must keep track of changes in the supply and demand of facilities
dedicated to each of the participation sports that are popular within their markets
3. Sporting Goods, Apparel, Athletic Shoes, and Sports-Related Products
2 Types: those used in participation sports, and those that represent keepsakes, replicas,
venue-related purchases, and souvenirs from spectator sports events

Economic Impact
Direct Spending by Consumers
- level of direct spending by consumers involved in the engagement of the various sports
activities

The Multiplier Effect

- adjustment that reflects the fact that the initial expenditure support subsequent economic
activity, multiplier
(a) One-Day Events
(b) Multiday Events
(c) Participation Sport or Recreational Activity
(d) Professional Team or Arena
- visiting team may also have a large following of its supporters, these visiting fans spend
money on local goods and services
Aggregate Economic Impact
- Sports entertainment
- Sports products
- Sports support organizations
Characteristics of Sports Product

Broad Marketing Domains

Marketing Through Sports
Marketing of Sports Products
Traditional Strategies
Sports as a Marketing Platform
- Reaching Similar Target Market
- Sports incorporated within the Marketing Mix (4Ps)
Marketing Through Sports
Sponsorship-Based Strategies
- Traditional
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- Venue (or Property) Naming Rights

- Licensing
- Endorsements
Marketing of Sports Products
- Access to Spectator Sports Events (Tickets or Media-based access to the cricket
tournament)
- Access to Participation Sports Venues (membership to gyms)
- Sporting Goods and Apparels
Spectator Sports Sports Event Pyramid
- Local Events (draw fans from geographic area, specific segments of society)
- International Events (appeal transcends national borders, significant media presence,
venue often shifts among countries eg, SEA Games)
- Global Events (broadcast to global audience)
Participation Sports
- Market the Idea of Participating
- Market the Sport Venues
Sporting Goods & Apparel
- Sporting Goods (Equipment)
- Apparel (Clothing: Participation-Based, Fashion-Based)
SEMINAR 2: The 4 Domains of Sports Marketing
Chapter 2: The 4 Domains of Sports Marketing
Contingency Framework for Strategic Sports Marketing

Internal Contingencies
All influences within and under the control of the sports organization that can affect the
strategic sports marketing process
- Vision and mission
- Organizational objectives and marketing goals
- Organizational strategies
- Organizational culture
External Contingencies
All influences outside the sports organization that might affect the strategic sports
marketing process
- Competition
- Technology
- Cultural and social trends
- Physical environment
- Political, legal and regulatory environment
- Demographics
- The economy
Strategic Sports Marketing Process

(A) Sports Products VS Nonsports Products

Sports Products
1. Spectator Sports
- sports marketers work to increase the media-based audience, which includes viewers and
listeners who gain access through a variety of broadcast media
- can be viewed from 2 perspectives: first is the sale of access to events; that access may be
viewed as the product. Second is the reality that access has no value without the
competition on the field of play. Thus, whether audiences are live or media-based, it is the
game or event, not the ticket per se, that represents the product in the spectator sports
market
Live Audience
Media-based Audience
2. Participation Sports
- includes an array of activities that might not normally be perceived as sports, such as
jogging, free weights
- role is to increase the number of participants and the frequency of participation in a
specific activity
- individuals who participate in sports are more likely to be a fan of that sport
- increased level of participation creates demand for more sports equipment, apparel and
athletic shoes
Attracting more participants
Getting current participants to play more
3. Sporting Goods, Apparel, Athletic Shoes, and Sports-related Products (SASS)
- include tangible products specific to a participation sport or activity
- apparel may be purchased to facilitate participation or buyers may simply want to
purchase apparel because they may be fans who want to wear the clothing that features the
logos of the teams they support

- athletic shoes now not only are devoted to the participant market, there are also new
models such as Nike Air Jordan Shoes which are an integral part of almost everyones
wardrobe
- sports-related products include souvenirs that may be purchased at event venues and
official retailers
- venue-specific products may include beer sold at the sports venues, because it represents
an important revenue stream for teams and stadium operators
Nonsports Products
- Goods and services not directly related to a sport
- Non sports products are often sold by creating a Sports Overlay (or Platform)
(B) Level of Integration: Traditional VS Sponsorship-Based Strategies
1. Traditional Strategies
- incorporation of sports as part of organizations marketing program
- involves target market and marketing mix
- may simply involve the placement of an ad in a spots publication that reaches the target
market or involve advertisement which features actors or models playing a sport
Employ the basic components of marketing strategy (Target Market + 4Ps)
2. Sponsorship-Based Strategies
- marketers attempt to capitalize on an official relationship with an event, team, league,
player or organization such as IOC, FIFA
- involves the sponsor and sponsee
Employ an Official Sponsorship-based Relationship with a Sports Entity
(i) Traditional Sponsorship: involves the acknowledgement of the sponsor by the sports
property and the ability of the sponsor to use the propertys trademarks and logos in its
efforts to leverage the sponsorship and reinforce the relationship in the minds of members
of the sponsors target market
(ii) Venue naming rights: characterized as building sponsorships
(iii) Endorsements: referred to as personal (or personality) sponsorships
(iv) Licensing: official supplier, sponsors granted the right to produce and sell logo apparel
and a variety of other licensed products (right to use intellectual properties)
Eg. Reebok has an arrangement that allows for the use of the logos of sports teams in the
marketing of a special line of footwear
- Nike and Addias now have intellectual property rights whose value far exceeds that of the
products through their association with leading sports teams and events
Basic Principles of Sports Marketing
- Broad Focus (marketing of sports or marketing through sports)
- Nature of the product being marketed (sports or nonsports)
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- Level of Integration of sports within the marketing program (traditional or sponsorshipbased)

The 4 Domains of Sports Marketing

1. Mainstream Strategies
Using a Traditional Strategy to Create a Sports Overlay to Sell Nonsports Products
- use of traditional marketing strategies that incorporate a sports theme into the marketing
program for nonsports products
- marketers efforts are not based upon an official relationship with any specific sports
property in its effort to create the sports overlay for its marketing efforts
- represents the lowest level of integration of sports within the sports marketing
environment
- consider target markets and marketing mix
- packaging that features a sports design also falls in this category
- intent is not to sell a sports product; rather it was to sell ones own nonsports offerings
Ambush Marketing: efforts involve a nonsponsor developing a strategy that creates a false
impression that it is an official sponsor of some sports property
2. Product-Focused Strategies
Using Traditional Marketing Strategy to Sell Sports Products
- efforts to sell sports products using traditional strategic initiatives when the marketer is
not attempting to capitalize on an existing official relationship with another sports entity
- organizers change rules of the game to provide a better product that would be better
received by fans and potential fans in an effort to sell tickets and increase the size of mediabased audience
- eg. Sporting goods retailer who choose to give away free caps at a baseball game
- sports equipment altered in an effort to create brand preference

- sports teams use sales promotion as a marketing tool; one of the more popular techniques
is the giveaways that are designed to encourage attendance and to nurture relationships
- sports teams work with local organizations and provide their members with discounts, or
group sales strategy that provides discounts for employee groups and students at certain
schools
- while focus has been on ticket prices for spectator sports, marketers have to think about
the prices for access by media-based audiences those using TV, internet to watch
- Distribution: involves access to the event and efforts to distribute tickets to the fans,
location of franchises, location of special events,
3. Domain-Focused Strategies
Using Sponsorship of a Sports Entity to Sell Nonsports Products
- a common strategy involves a sponsor who uses that association with sports to effectively
market nonsports products; this combination emphasizes initiatives that are classified as
domain-focused strategies
- venue naming rights, endorsement, licensing
- eg. By using select NASCAR trademarks, Mattel is able to capitalize on the sports
popularity and sell more of its Hot Wheels toy cars
4. Sports-Dominant Strategies
Using Sports-Based Sponsorship to Sell Sports Products (least common domain)
- characterized by official sponsors of a sports property who are selling other sports
products
- a common strategy features the marketer of sporting goods or sports apparel in a
traditional sponsorship of a sports team or a sporting event
- eg. Adidas sells sporting goods and uses advertising that complements its traditional
sponsorship of FIFA and World Cup
- in traditional sponsorship, marketer of sports products sponsor an event
- in venue naming rights, Reebok Stadium in England
- in endorsements, athletics are used as spokespersons
- in licensing, licensee is using its relationship with a sports property to influence demand for
its own sports products
To determine a marketing initiatives location in the Sports Marketing Environment
Matrix, need to answer two questions:
- Is the product a sports product or not?
- Is there any indication that an official sponsorship of a sports entity exists?
2.1 Products sold by Sports Marketers (Pg 31)
2.2 The Basic Principles of Sports Marketing (Pg 34)
2.3 Overview of Mainstream Strategies (Traditional Strategies for Nonsports Products) Pg 39
2.4 Overview of Product-Focused Strategies (Traditional Strategies for Sports Products) Pg
45
2.5 Overview of Domain-Focused Strategies (Sports Sponsorship-Based Strategies for
Nonsports Products) Pg 50
2.6 Overview of Sports-Dominant Strategies (Sports Sponsorship-Based Strategies for Sports
Products) Pg 53
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SEMINAR 3: Segmentation of the Sports Market

Chapter 13: Segmentation of the Sports Market
Consumer Behaviour Participant & Spectator
- Why consumers choose to participate in certain sports
- What the benefits of participation are for consumers
- When, where and how often consumers participate in sports
Model of Participant/ Spectator Consumption Behaviour

Psychological / Internal Factors

- Personality
- Motivation (Maslows Hierarchy of Needs)
- Perception
- Learning (Behavioural, Cognitive, Social)
- Attitudes (Cognitive, Affective, Behavioural)
Sociological / External Factors
- Culture (Socialization)
- Social class
- Reference groups
- Family
Situational Factors
- Physical surroundings
- Social surroundings
- Time pressures
- Reason for participation (task definition)
- Antecedent states
Factors Influencing Game/ Event Attendance (in person)
(a) Fan Motivation Factors
Self-Esteem Enhancement
- The competitive nature of sports offers opportunities for achievement and victory
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- Fans feel an athletes or teams victory is THEIR own victory

-> Enhancing Self-Esteem
- People try to enhance their own image by trying to associate with a winning team
- People try to maintain a positive image by disassociating from a losing team
- Die-hard fans continue to associate with their team even when it is losing
(b) Stadium / Venue Factors
- Stadium / Venue Accessibility
- Parking availability
- Ease of entering/ exiting parking
- Proximity of parking to stadium/ venue
- Facility aesthetics (Appearance/ Architecture)
- Scoreboard or screen quality
- Perceived crowding
- Seating comfort
- Layout accessibility (proper signage, space allocation)
(c) Fan Identification
- Personal commitment and emotional involvement customers have with a sports
organization
- Benefits of highly identified fans for sports organization (Decreased price sensitivity &
Decreased performance/ outcome sensitivity)
(d) Game attractiveness
(e) Economic factors
(f) Competitive factors
(g) Demographic factors
The Need for Market Segmentation
- Sports Fans are not alike
- Different factors impact peoples preferences -> these factors are used as the bases to
segment the market
- For marketing purposes, it is more efficient to break down a large market into smaller
groups to understand the unique NEEDS and PREFERENCES of each group
1. Segmentation: Process of Subdividing the Heterogeneous Mass Market into 2 or more
smaller, more Homogeneous Segments of Consumers
2. Targeting: Evaluating Segments and Selecting Segments (Target Market) to focus on
3. Positioning: Developing a Desired Brand Image in the Minds of the Target Market
Differentiated Strategies
Marketing Mix tailored to each selected Target Market
Not everyone:
- Wants the same product
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- Shops at the same types of retail facilities

- Can or will pay the same prices
- Is motivated by the same promotion
Target Marketing
Targeting a group that is:
- Sizable (number of people and/or purchasing power
- Reachable (accessibility of group
- Measurable
Segmentation Key Points
- Market is segmented using relevant criteria
- Market segmentation and the resultant differentiated marketing strategy provide better fit
for each customer
- Target markets are selected from the array of identifiable market segments
- A corresponding marketing mix is developed for each selected target market
- Segmentation is appropriate for:
- Aggregate Fan Market
- Fans of a Particular Spectator Sport
- Aggregate Participation Market
- Participants of a Particular Activity
- Buyers of Sporting Goods, Apparel & Shoes
- Buyers of Sports-related products
Segmentation of the Spectator Sports Market
1. Demographic Segmentation
- Gender-based, female
- Marketers increased lines of products that are designed to appeal to women
- Golf tournaments reach out to younger segment
- income used as a means of defining segments in the professional sports market; minor
leagues and teams develop promotional appeals that feature lower ticket prices in an effort
to attract fans who might not be able to afford tickets for the top-level sports teams
- Ethnicity
2. Geographic Segmentation
3. Psychographics (Social Class, Lifestyle, Personality)
- Knowledge of segments dominant lifestyle leads to a better understanding of consumers
preferences and purchase decisions
- Developed products and promotions aimed at reaching consumers who are active on the
Internet
- Sociables; may watch the game but primary objective is to spend quality time with friends
- Avid fans; live and die with their favourite team
- Soft fans; casual fans; only watch major tournaments
- Individuals who play a sport are more likely to be fans of that sport
- Marketers try to intensify their efforts to increase the number of players, with a long-term
objective of increasing the number of fans for their particular sport
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4. Product-Related Variables
- 3 criteria: level of use, degree of brand loyalty, benefits sought by the consumer
- Every sport will segment on the basis of level of use
- Most important segment is season ticket holders
- Brand loyalty: relates to the consumers decision to continue to purchase tickets over time
Sports Fans Overall Market
Criteria used to segment the overall market of sports fans
- Involvement
- Participation
- Social Needs
- Identification
- Appreciation of Sport
- Sex Appeal
Six Segments of Sports Fans
1. Players
- Individuals who play or have previously played a sport are more likely to enjoy watching
others compete in that sport
2. Patriots
- Individuals view sports as a means of establishing community and national pride
- follow their teams and cherish their wins
- Involvement may be high
3. Appreciators
- Individuals admire the skills of the participants
- Focus is not on who wins or loses, rather, it is the opportunity to witness excellence that
draws the appreciator to the TV or event venue
4. Socialites
- Sports provide one way in which they can interact with their friends
- Decisions to which events to attend influenced by an individuals reference groups
- Alternative entertainment or activities at the venue rather than the sport itself attracts
these fans
5. Friends
- Primary motivation for friends attendance is to provide support for friends and family
members who are participants in the event
- Not social interaction with friends that is important BUT the key consideration is the
nature of the relationship with participants
- Objective is to support people that the fans know and care about
6. Voyeurs
- Sex appeal
- Physical attractiveness of participants
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- Fans of that particular attractive participant

The Participation Market
- Rather than watch, participants play
- 3 broad reasons why individuals choose to participate: personal improvement,
appreciation of the sport, facilitation of social interaction
Focus on Players rather than Spectators
Segmentation still important for marketers
Same 4 Categories of Segmentation Criteria applies (Demographics, Geographics,
Psychographics, Product-related Variables)
5 Types of Segmentation Level of the Aggregate Participation Market
1. Excitement-Seeking Competitors
- inclined to engage in risky activities
- view their actions as a competition against others or they may simply see it as a personal
challenge to accomplish something few others can do
2. Getaway Activities
- vacation prone
- primary motivation is based upon social objectives
- see leisure as an escape from the daily grind and seek opportunities to have fun with their
family and friends
3. Fitness-Driven
- primary motivation is personal improvement
- while energy is exerted when engaging in activities, members see it as trade-off for the
improved health that they gain by virtue of their participation
4. Health-Conscious Sociables
- motivated by personal improvement and opportunities for socialization
- engage in activities to foster good health
- BUT activities are neither as risky nor as stressful as those undertaken by the more-active
segments
5. Unstressed and Unmotivated
- tend to be older
- not inclined to engage in any meaningful recreational activities
- prefer to remain inactive
- little marketers can do to alter their passive mindset
Sport-Specific Segmentation
- Applicable for any Participation Activity
- More insight than with Segmentation of the Aggregate Participation Market
- Used to identify homogeneous segments of participants in a specific activity
A Comprehensive Example The Golfer Market (Pg 385)
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Segmenting a Participation Market The Golfer Market

- Different Levels of Playing Ability
- Different Motives for Playing
- Different Attitudes toward Practice
- Differing Frequency of Play
Five Segments of Golfers
- Competitors
- Players
- Sociables
- Aspirers
- Casuals
SEMINAR 4: Traditional Strategies & Sponsorship
Sports Marketing Chapters 3 & 4
Chapter 3: Marketing through Sports using Mainstream Strategies
The Ultimate Sports Platform Marketing through the Super Bowl
Target Markets
3.1 Common Bases for Market Segmentation (Pg 63)
- decision to direct marketing efforts at a single segment is referred to as a concentration
strategy
The Marketing Mix
3.2 The Marketing Mix (Pg 65)
- with a firm understanding of the concept of the marketing mix, the job at hand now
becomes one of designing an appropriate marketing mix for each of the selected target
markets
Mainstream Strategies
Using Strategic Initiatives to Integrate Sports in Order to Create a Sports Overlay or to
Reach Ones Designated Target Markets More Effectively
Employing Target Market and Marketing Mix Initiatives in Order to Achieve the Desired
Sports Overlay
Using Traditional Strategies in an Effort to Sell Nonsports Products
Mainstream Strategies Are Not Based upon Any Official Sponsorship-Based Relationship
with a Sports Entity
Target Markets
- Target market of the organization seeking to develop the consumers interest in its
products usually coincide with the target market of a sports property
- It is sports ability to provide access to an organizations target markets that makes the
marketing of products through sports viable
- Marketer needs to find the appropriate match with a sports entity that can provide access
to its own target markets

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- Any effort to sell a nonsports product by placing an ad in or on a sports-oriented medium

in an effort to reach a target market represents one type of mainstream strategy
Segment the Market
Select Appropriate Target Market(s)
Identify Relevant Target Markets that Can Be Reached Via a Sports Platform
PRICE
- Sponsorship cost may be too high, thus marketers adopt mainstream strategy that
integrates sports at the more basic level
- eg. Producer of hot dogs might offer its products to operators of sports venues at a
discounted price
- eg. Combination of discounted price with a sports-oriented promotion: brewery engages in
a cooperative effort with a bar to allow its beer to be featured in promotions and sold at a
reduced price during the broadcast of popular sports events
PRODUCT
- When the objective is to sell sports products via the application of a traditional marketing
strategy, the marketer is operating within the product-focused domain
- DIFFERENCE: within the mainstream domain, sports are not central to the marketers core
product, but they are still key considerations in the development of one or more of the
elements of the marketers strategy
- The absence or presence of a sponsorship relationship with the sports property represents
the key distinction between mainstream and domain-focused strategies
- Travel industry also uses sports as a means of increasing business, used bundling tactics
- Fashion industry designed clothing that features a sports theme
- Packaging today also incorporates sports themes even when there is no official
relationship with the sport being featured
- eg. Packaging Featuring Sports Images, Sports Bar Showing Sports Events on TVs,
Hospitality Package Featuring Tickets to a Sports Event (selling hotel rooms), Credit Card
Company Providing Special Access to Tickets for Sports Events
PLACE (DISTRIBUTION)
- involve the ability to sell ones products at a specific sports venue-based retail outlet, the
types of outlets at which the marketers products will be available, and the intensity of the
retail coverage within a geographic market
- Growth in number of new stadiums has created new distribution opportunities for
marketers
Marketer Selling Its Goods and Services at a Sports Venue (Stadium, Arena, etc.)
Marketer Selling Its Nonsports Products at a Retail Store Specializing in Sporting Goods
Intensifying Regional Efforts Where a Sport is Popular
PROMOTION
(a) Advertising
- Narrowcasting: with the growth of cable and satellite delivery services, consumers have
more access to networks with a specific focus
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- Advertisers of nonsports products often use sport images and terminology as a way of
cutting through clutter and creating a favourable impression in the marketplace
- eg. People associate Big Game to the Super Bowl
- Insertion of sports-oriented images and terminology within the ad
- eg. Advertise in a Sports Magazine, during Sports programme on Radio
(b) Personal Selling
- Distribution of complimentary tickets for events that customers and prospects enjoy
- Hospitality, luxury, corporate suites
- Memberships in private clubs
- Ability to interact with clients on a casual basis and the goodwill that is generated by
providing the client with tickets to a local teams game can impact the relationship between
the marketer and the customer
- eg. Salesperson Providing Tickets for a Sports Event to Customers and Prospects,
Conducting Business on the Golf Course
(c) Sales Promotion
- Speciality advertising: involves the placement of a marketers logo, trademark, or brand
name on products that are given to and retained by consumers for a period of time
- Discount coupons
- Free samples
- Consumer expos: eg. Golf show
- Customer loyalty programs: frequent flier program
- Contests
- Point of sale (POS) displays
- Premiums: free products that are provided to purchasers of a specific product
(d) Public Relations/ Publicity
- Marketers affiliate themselves with a sports organization for charitable reasons
- Properly executed PR efforts can create a positive perception of the company
- eg. Press Release Regarding Marketers Support of a Local Athlete
(e) Product Placement
- In movies, TV programmes
- In video games, EA Sports
(f) Virtual Advertising
- Virtual signage
- Virtual imaging technology
- Technology is capable of creating realistic images so that viewers perceive them to be
actual signs, not virtual images
- Signs can be changed during the course of the broadcast
- Problems with traditional TV: zipping (zips from one channel to another) and zapping
(viewer fast forward the commercial breaks when watching recorded programming)
(g) The Internet
- Popup ads
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- Ad space
- SEO
- Social networks
- Websites
(h) Hospitality
- Sports provide companies with many opportunities to entertain clients, customers and
employees
- Premium seating
- Corporate guests
Mainstream Strategies Key Points
- Many Marketing Efforts for Nonsports Product Attempt to Influence Consumer Purchase
Behavior by Incorporating a Sports Platform (or Overlay)
- Mainstream Strategies Involve the Use of the Traditional Elements of Marketing Strategy
Target Markets & the Marketing Mix to sell Nonsports Products
Chapter 4: Introduction to Sponsorship: Concepts, Objectives and Components
The Evolution of Sponsorship Motives
- Ego-driven
- Philanthropic motivation
- Fair return on their investments
Advertising Advantages
(a) Persuasive Message
- Ability to deliver a persuasive message provides advertising with a significant advantage
over sponsorship
(b) Standardization
- Advertising uses printed and spoken words to deliver its message, therefore standard
message to convey to target market
(c) Guaranteed Number of Consumers Reached
- reach
(d) Evaluation
- CPM
(e) Turnkey
- Advertising is seen as a stand-alone promotional tool
- Turnkey concept relates to this stand-alone capability
- While advertising can stand alone, sponsorship cannot. Sponsors must spend more money
on other promotional efforts that are designed to support the sponsorship
Sponsorship Defined
- Investing in a Sports Property to support overall Organisational Objectives, Marketing
Goals and Promotional Strategies
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- A Relationship between a Marketer and a Property in which the Marketer Pays a Cash or
In-Kind Fee in Return for Access to the Exploitable Commercial Potential Associated with the
Property
- Many Types of Properties Represent Sponsorship Opportunities for a Marketer
Sponsorship Roles
- Another Promotional Tool for Marketers
- Sponsorship Should Have a Synergistic Effect on a Marketers Promotional Efforts
- Sponsorship Fits within the Promotional Mix
- Integrated Marketing Communications (IMC)
Sponsorship Advantages
(a) Credibility
(b) Image
(c) Prestige
- Marketers choose to associate with elite properties in an effort to enhance their own
prestige
(d) Internal Morale
- employees may be given opportunities to attend events and be entertained, engage in the
entertainment of companys clients in a hospitality facility that is provided for by the
sponsored event/venue
(e) Sales Opportunities
- provides the sponsor with the opportunity to sell its products at the event venue
(f) Access to a Live Audience
- advertising reaches audience indirectly, while sponsorship delivers a live audience at the
venue, provides access to fans for the distribution of free samples, for use as respondents to
market research surveys, ability to get immediate feedback from consumers
Table 4.1 Comparison of Advertising and Sponsorship (Pg 101)
Sponsorship Categories
6 Categories:
1. Sports
- Most commonly funded category
2. Entertainment, tours and attractions
3. Causes
- Grassroots sponsorship
4. Arts
5. Festivals, fairs and annual events
6. Associations and membership organizations
3 Key Concepts of Sponsorship
1. Linkages
- Marketers seek sponsorships that provide access to their target markets
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- Self-evident: sponsors benefit because consumers readily understand the

relationship with the property (eg. Athletics wear Nike brand)
- Strategic linkages: sponsors products not prominently used during the staging of
the event (eg. Volvo Ocean Race, Volvo has reason to believe that fans of yacht racing are
the same consumers who purchase its luxury automobiles, thus sponsorship provides a
strategic linkage in the form of access to Volvos target market)
2. Leveraging
- based on the premise that all sponsorships must be supported with strategic efforts that
are designed to enhance the effectiveness of the sponsorship
- shortsighted to simply pay the sponsorship rights fees and assume that the market will
recognize the relationship
Efforts to Support Ones Sponsorship with Additional Strategic Initiatives (i.e. EventOriented Advertising)
3. Ambush Marketing
- nonsponsors use ambush marketing in an effort to create the false impression that they
are associated with an event when, in reality, no official association exists (eg. Wendys
successful effort to ambush Macs official sponsorship of the Olympics, Wendys used sports
themes and former Olympic athletics in its TV advertising when the Olympics were being
staged)
Non-Sponsors trying to Create the Misperception among Consumers that They Are
associated with a property/event (Diminishes Value for the Actual Sponsor)
Spending on Sponsorship
- Much of the increase in sponsorship spending will be fuelled by an abundance of small
deals rather than expensive, high-profile sponsorship contracts
Special Cases of Sponsorship
1. Endorsements
- Personality sponsorships
- Involve the use of a celebrity who is consistent with the market segment that is being
targeted with the advertisement
- Celebrities are compensated for allowing their names and likenesses to be used in ads
- They provide testimonials regarding the merits of the products that they are paid to
endorse
2. Venue Naming Rights
- Involves a payment by a company or individual in exchange for the right to have a facility
bear the name of its naming rights sponsor
- Stadium sponsorship or building sponsorship
- Venue operators receive an infusion of resources while the building sponsor is provided
with a linkage to its target market
3. Licensing
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- Marketers pay for the right to produce and sell merchandise that bears the trademarks of
another organization
- Not all sponsors of a property, a team, or an event necessarily have the right to sell or give
away any merchandise that bears the sponsored organizations trademarks
- That right is conveyed in a contract that allows the marketer to be classified as a licensee
- It is these licensees that offer officially licensed merchandise to the market
Overview:
Eg. Nikes contract with Tiger Woods focuses on the sale of an array of golf products
Sponsorship Objectives
1. Drive Sales
- Increase sales via better market penetration and growth in market share
- Marketer can seek to establish a sustainable competitive advantage over others in its
industry by virtue of its relationship with a sponsored property
- In some cases, a sponsors participation in an event contractually precludes any
competitors involvement
- Fans of several sports and sporting events are more prone to purchase, they tend to be
more loyal to products and brands that sponsor events or other properties they admire
- Merchandising and channel issues: event itself might be an important channel of
distribution with the sponsors products being sold at the various venues
- Overcoming advertising restrictions: some classes of products are prohibited from
advertising using traditional media (eg. Tobacco products, therefore r/s bet motor sports
and tobacco companies)
- Sponsorship helps to cut through advertising clutter, for most events, number of sponsors
is limited, thus guaranteeing each sponsor a clutter-free environment
- Sponsorships can be used to reach small segments and niches in the marketplace
2. Improve Image
- Attain positive public relations through cause-related marketing
- Seek sponsorships opportunities that enhance the companys community involvement and
portray it as a good corporate citizen
- Sponsoring fund-raising events can allow marketer to capitalize on the community pride
and involvement
- Shape consumer attitudes
- Image enhancement via philanthropy
3. Create Greater Awareness
- Increase visibility in the marketplace
- Create awareness for new products of a well-known brand name
- To create targeted level of awareness, marketers will seek associations with high-profile
events that draw large attendance, TV viewership and high levels of exposure in the news
media
4. Reach New Target Markets
5. Build Relationship with Consumers
20

6. Build Brand Image

7. Provide Hospitality Opportunities
- Can provide opportunities by using a sports event as a forum for entertainment
- Hospitality areas can provide a number of amenities to those granted access
- Objective is to reward customers, prospects and suppliers
- Relationship marketing program to create goodwill and a sense of loyalty
8. Enhance Employee Morale
- Serve as an entertainment opportunity for employees
- Reward high-performing employees
- Employees morale enhanced because of recognition received
- Entertain employees in general
- Evoke a sense of pride and involvement for employees
Matching Sponsorship Objectives with Sponsorship Components
- Every sponsor will not want the exact same set of components in return for their financial
commitment
Sponsorship Components
1. Category Exclusivity
- Sponsors want to be protected from direct competition for the event they are sponsoring
- Prohibits the simultaneous participation of direct competitors in opposing sponsorship
roles
- A company will be more willing to invest its resources in a sponsorship program if its
competitors cannot officially participate
- Tradeoff for the event is that increased levels of protection reduce the number of potential
sponsors by precluding many companies from participating
2. Signage
- Helps sponsor reinforce the fact that it is officially associated with the event
- Another issue is the presence of signage for nonsponsors; signs that are not associated
with competitors of actual sponsors add to the clutter and potentially diminish the
effectiveness of the sponsorship
- Number of signs provided is also an issue; event organizers worry about clutter detracting
from the event, while sponsors want their signs seen throughout the venue
- Another issue is the location of signs; IOC reluctant to allow signage within competitive
venues
- Size of signage; tradeoff between actual signage and virtual signage, but virtual signage can
be a distraction to the sports events
- Presence of signage referring to nonsponsors at a venue
- Sponsors want to maximise signage while minimizing clutter
3. Rights to Use Event Trademarks and Logos
- Intellectual properties

21

- Ability to do so allows sponsor to implement effective leveraging programs and exhibit its
association with event by including the trademarks in advertising, on packaging, and in
other promotional programs
- Different tiers will provide different rights in regard to the sponsors use of intellectual
properties
- Efforts that utilize these various symbols are designed to strengthen the consumers
association of the sponsor with the event
- Consumers are more favourably disposed to a marketers products when the marketer
sponsors an event or a team that the consumers support and admire
4. Distribution Rights
- Sponsor may seek opportunities to create awareness or influence the decision to engage in
a trial use of its products by members of its target market; sponsor may distribute free
samples or discount coupons
- Establishment of the venue as a retail outlet; sponsor has the right to sell products at the
venue
5. Hospitality Areas
- Provision of a hospitality area can be useful for sponsor seeking opportunities to entertain
customers, prospects, suppliers or employees
- Can be on-site facilities or off-site
6. Complimentary Advertising
- Event organizers control one or two media outlets, such as printed event program, sell
advertising space
- Some event organizers also control TV broadcast, provide TV spots
- Key consideration is the way in which it can be used by the sponsor as part of a leveraging
effort; gives sponsors another way to reach the consumer and reinforce the idea that they
are official sponsors, thereby combating the ambush marketing efforts of companies that
seek to create the misconceptions that the ambushers are officially linked to the event
- Price of sponsorship divided into 2 categories: the rights fees paid specifically for the
sponsorship and the cost associated with the purchase of advertising as stipulated in the
agreement
7. Free Tickets
- Provide sponsors with the opportunity to entertain consumers, prospects, suppliers,
employees
- Create considerable goodwill
- Secure brand loyalty to consumers
- Useful when tickets are not available through the traditional distribution channels, or
ticket distribution is controlled
8. Right to Purchase Additional Tickets
- Incentive when the event is historically sold out
- Event organizer must forecast demand in order to assess the available inventory of seats
that can be offered to sponsors

22

9. Link on the Event Website

- Direct link to sponsors homepage from the events website
10. Designation
- Certain level of prestige associated with the way the sponsor is able to characterize its
association with the event
- Some events have different designations that depend entirely upon the level of
commitment made by the sponsor (eg. Top Partner, Key Sponsor)
- Concept of presenting sponsor (eg. Event presented by XXX)
- Sponsors name becomes the name of the event itself
- More common is the strategy of incorporating the sponsors name and the event name
within a single designation
- Attach a sponsors name with a team
- Designations should be created in an effort to provide added prestige to the sponsor, to
acknowledge a major commitment to the sponsee, to provide greater recognition to the
sponsor, and to reinforce the relationship between the sponsor and the sponsee in the
consumers mind
11. Inclusion in Event Promotions
- Including sponsors logos in promotions for the event
- Presence of on-site displays that acknowledge all of the sponsors
12. Access to Property Mailing List/ Database
13. Right of First Refusal
- Allows a current sponsor the opportunity to assess the new sponsorship program and
either accept or reject it before the event solicits new sponsors
- Some companies may choose to continue a sponsorship that they deem a little too
expensive or a little too ineffective simply to keep a competitor locked out
A Comprehensive Sponsorship Example: World Cup (Pg 130)
Controversial Issues
- Concerns that high cost of sponsoring an event adds to the costs that are passed along to
consumers in the form of higher prices for the sponsors products
- Concerns that high cost provides advantage for MNCs
- Absence of an obvious fit between sponsor and event (no fit)
- Sponsors whose products are deemed to be unwholesome, unhealthy
Sponsorship Key Points
- Sponsorship Has Emerged as a Key Component of Many Firms IMC Plans
- Most Sponsorship Money Goes to Sports
- Sponsorships Should Benefit Both the Sponsor and the Sponsee A Win-Win Partnership
- Sponsorship Components Should Be Considered Tools That Will Help the Sponsor Achieve
Its Objectives
- Category Exclusivity and Venue Signage Are Viewed as the Most Important Components

23

Concept of Ambush Marketing

Defined as: a Promotional Strategy Whereby a Nonsponsor Attempts to Capitalize on the
Popularity/Prestige of a Property by Giving the False Impression that It Is a Sponsor
- Often Used by Competitors of the Propertys Official (Actual) Sponsors
- An Ambush Marketer Attempts to Attach Itself to a Valuable Property and Extract Benefits
from that Perceived Attachment
Why Ambush?
- High Cost of Rights Fees
- It Has Been Shown to Work
- Consumers Not Offended by Ambushers
- Attitude Within Industry May Be Changing
- Category Exclusivity May Prevent Company from Being an Official Sponsor
Ambush Marketing Strategies
1. Sponsor Media Coverage of the Event
2. Sponsor Subcategories
Ambushing Up Sponsor at a Lower Level with Objective of Being Associated with the
Property at a Higher Level
3. Make Sponsorship-Related Contribution to the Players Pool
Payments are Made to Competitors Who in Turn Acknowledge This Involvement; May Serve
as Performance Incentive
4. Purchase Advertising Time During the Broadcast Replay
Events Are Often Shown on TV Many Times After the Live Broadcast. There are Likely to be
Fewer Restrictions Regarding Who Can Purchase Advertising Time
5. Engage in Advertising to Coincide with the Timing of the Event
Even if the Ambusher Cannot Advertise on the Event Broadcast, It Can Advertise on Other
Programs within that Timeframe
6. Use Other Dilution Strategies
- Sponsor Other Events at the Event Venue (Association with the Venue or Secondary Event
May be Mistaken for Association with the Original Event)
- Wear Nonsponsors Logo Clothing at the Event (Give away Shirts for Fans to Wear)

24

Protection from Ambushers

- Sponsors Should Learn How to Ambush
- Leverage with Collateral Support (Remember: Sponsorship Is Not a Stand-alone
Promotional Activity)
- Clean Stadium (Devoid of Nonsponsor Signage)
- Establish More Control Over Advertising
- Restrict Use of Virtual Advertising
- Limit Ability of Players to Endorse Brands of Nonsponsors
- Educate Consumers
- Engage in Surveillance Programs
- Limit Number of Sponsorships
Are Preventative Measures Effective?
- No Event Is Immune to Ambushing
- Sponsor Who Understands How to Ambush is Better Prepared to Assess Its Own
Vulnerability
- Many Ambushing Techniques Are Effective
- Many Events Now Require New Laws and Clean Stadium as Conditions for Staging an Event
Closing Capsule
- Ambushing Is Cheaper than Sponsorship
- Ambushing Can Be Effective
- Ambushing Reduces Sponsors Benefits
- Sponsors Must Effectively Leverage
SEMINAR 5: Endorsements & Licensing
Sports Marketing Chapters 11 & 12
Chapter 11: Endorsements
- the use of celebrities in a marketers communications strategy can contribute to greater
brand recognition and can create a positive perception in regard to the endorsed product
Celebrity Spokesperson
- One Special Case of Sponsorship
- Referred to as Personality Sponsorship
- Used in Marketing of:
- Nonsports Products Cole Haan & Maria Sharapova (Domain focused)
- Sports Products Nike & Tiger Woods (Sports dominant)
The Matching Process
- In an endorsement, a celebrity spokesperson is employed to promote the product in a
more proactive manner
- A celebrity is used in ways that consumers recognize the spokesperson and develop an
association between the celebrity and the product being endorsed
- There must be a match; the marketer must deliver a product sought by the target market,
and the endorser must be able to exert some influence on members of that target market
and their purchase decisions

25

Celebrity (Personality) Needs to Fit:

- The Target Market
- The Product
- The Brand
Types of Personalities Used
- Entertainer (Angelina Jolie & Louis Vuitton)
- Politician (Bob Dole & Pepsi-Cola)
- Dignitary (Sarah Ferguson & Weight Watchers - previously)
- Athlete (Kristi Yamaguchi- figure skater & Nicole by O.P.I.- nail polish)
Endorsement Applications
- I use it, so should you
- the ability to portray the endorser as an expert within a product category such that
members of the target market view the individual as a viable source of information; the
spokesperson has source credibility, I am an expert, and I think that you would be smart to
use this product
- I think its cool, so you should use it. Marketer does not attempt to portray the endorser
as either a user of the product or an expert on the product category. A strategy of this type
relies upon the ability of the endorser to break through the clutter of advertising, thereby
drawing attention to the product, admiration of the spokesperson will hopefully be
transferred to the product itself.
Athletes as Endorsers
- Athletes are expected to engender strong values and morals that conform to societal and
cultural norms
- A second concern that diminish the value of an endorsement deal is the health of an
athlete
Prominent Roles in Society
Recent Concerns Regarding Legal and Moral Transgressions
Longevity Concerns Injury & Retirement
Factors Favouring the Use of Athletes as Endorsers
Several issues influence their earnings potential
(a) The more accomplished, the greater potential they have in a marketing role
(b) Any athlete who has an enduring personality and whose persona is always associated
with a sport may earn a place in the elite club of those who have ongoing endorsement
potential
(c) An athlete who participates in an international sport has more endorsement
opportunities outside of his or her sport and home country
More Effective with Sport-Specific Products
Recognition Can Help Cut through Clutter
Meaningful Recognition Rates for Association between Athlete and Brand

26

Factors Impacting Endorsement Effectiveness

1. Endorser is a High Achiever
- Correlation between the effectiveness of an athlete in an endorsement role and what the
athlete has achieved throughout his or her career
- High achievers may limit the number of endorsement deals in which they will participate at
any given time
2. Endorser has Believability/ Source Credibility
- Motive is an issue in regard to believability
- For an endorser to be effective, the target market must believe that the spokesperson is
sincere
- Need to avoid potential conflict of interests
- To avoid such conflicts, there is a need to contractually limit the spokespersons ability to
endorse other brands within the same product category
3. Endorser is Known
- People in the target market must be familiar with the celebrity endorser
4. Endorser is Likeable/Popular/Admired
- Emotion is based upon the extent to which a consumer likes or dislikes the spokesperson
- Athletes personality also plays a key role, as reflected by comments made to and reported
in the press
- Different geographic areas may require different spokespersons as no one person may be
able to sufficiently enthuse consumers in all of the companys geographic markets
5. Endorser is Recognizable
- The extent to which celebrities are easily identified plays a meaningful role in determining
the potential impact of the endorsements and the corresponding testimonials
- If the target market is not global, the marketer can attempt to sign a celebrity who is easily
recognized in a more limited geographic area
- Media exposure: players who often appear on TV and who are the focus of media reports
are more recognizable
- Visibility during an event: function of fan proximity and view-obstructing equipment and
uniforms
6. Endorser Provides Ease of Recall
- When done correctly, the consumer will see the product and the celebrity endorser will
come to mind
- Needs to be combined with a meaningful frequency for exposing the target market to the
endorsement message
7. Endorser is Congruent with Target Market
- Congruence refers to matching process
- For endorser to be effective in influencing purchase behaviour, similarities between the
spokesperson and target market should be present, such as demographics or lifestyle,
acceptance of the endorser as a source of information by members of the target market

27

8. Endorser is Physically Attractive

- Correlation between attractiveness of the endorser and the overall evaluation of the
advertisement
- Correlation between respondents perception of the product itself and the attractiveness
of the endorser; a more attractive person contributes to a better perception of the product
9. Continuity Prospects (Provides Prospects for Continuity)
- Endorsement campaigns tend to be more effective when there is an ongoing, long-term
relationship
- Contracts that call for a one-time endorsement or a short-term relationship may be
effective when the marketer wants to exploit a current newsworthy event
- Risk involved for both parties in a long-term contract
- Athlete may lose market appeal such that the benefits to the marketer are diminished
- Athlete may be locked into a contract that provides less than market value in later years
after the athletes accomplishment have increased
Selection Process
Endorsers must be:
- Trustworthy
- Recognizable (by the target audience)
- Affordable
- At little risk for negative publicity
- Appropriately matched to target audience
Table 11.2 Pg 335
Problems with Celebrity Endorsers
1. The Criminal
- Even when actions do not result in criminal charges, they may still have a detrimental
impact on the publics perception of the individual spokesperson, and that perception could
be transferred to any marketer with which that individual has an endorsement contract
2. The Prima Donna
- As celebrity is often the focus of attention, it may be difficult for endorser to accept a
secondary role
- May be a blow to celebritys ego when faced with the reality of not being the key
consideration in the relationship, rather, it is the marketer and its brands and products that
are most important
- There are also celebrities who present problems such as scheduling and fulfilment of other
obligations such as promotional appearances on behalf of the marketer
3. The Fading Star
- Athletes are aware that fame may be short lived
- The endorsement relationships tend to be long-term, but the celebrity of today may not
project the same image in the future
4. The Lightning Rod
28

- This individual speaks out or supports causes that are subject to considerable scrutiny and
criticism
- When a significant portion of the population are offended by statements or positions
taken, pressure will be applied to persuade the marketer to drop the controversial
spokesperson
- Critics may boycott products endorsed by the controversial endorser
5. The Tongue-Tied
- Endorsers communication skills are an important asset for the marketer
Other Potential Problems
1. Ambush Marketing
- Occurs when a celebritys name or likeness is used without the legal right to do so
- Marketer engaged in this tactic is attempting to convey the idea that the celebrity
endorses the product
2. Costs
- Every high-profile, high-value endorsement contract that is signed is met with the
argument that the high cost will be passed along to the consumer in the form of higher
prices
- Consumers use an endorsement as a testimonial of quality; added peace of mind when
buying a product endorsed by a well-known celebrity
3. Misrepresentation of Use
- Relevant for athletes endorsing a brand of athletic equipment
- Some players do not use the brands they endorse
4. Endorsement Conflicts
- When an athlete endorses one brand of product while the governing body involved with
the athletes sport endorses another brand (athletes own brand VS team brand)
5. Conflicts with Sport Regulatory Bodies
- Athletes have endorsed products that fail to meet the specifications deemed acceptable by
a governing body
6. Impact on Amateur Status
- Questions have been raised as to whether such endorsement deals move the youngsters
into the professional category, thereby negating their amateur status
7. Unwholesome Nonsports Products
- Athletes have been seen endorsing candy bars, tobacco products, alcoholic beverages and
casinos
8. Overexposure
- Questions raised regarding athletes who endorse a wide array of products
- Marketer should consider the athletes level of exposure when negotiating the
compensation to be earned by the endorser
29

Endorsement Key points

- Endorsements Represent a Special Case of Sponsorship Personality Sponsorship
- May be Used for Marketing of Both Sports Products and Nonsports Products
- Primary Emphasis in this lecture was on Nonsports Products (Domain-Focused Strategies)
- Helps Cut through Advertising Clutter
- Not Devoid of Risk
Chapter 12: Licensing
Value-Adding Process that Provides Revenue-generating Opportunities via the Conveyance of
the Right to Use Another Organizations Intellectual Properties for Commercial Purposes
Key Concepts
1. The Participants
- Licensor is the owner of the properties that are designated in the contract; it is the licensor
that is granting the right to use its intellectual properties to a second party
- Licensee does not own the properties, but rather, it is granted permission to use them for
specified marketing activities
2. The Intellectual Properties
- Intangible assets for which an organization can claim ownership
- Registered trademarks
- Logos
- Name
- Slogans
- Symbol
- Colours
- Sounds
- Likeness: photograph or other representation of an individual
The Financial Perspective
- As licensors, they receive a percentage of revenue generated by the sale of licensed
merchandise bearing their logos and trademarks, referred to as royalty
Establishing & Maintaining Ownership
- Process of registering a trademark differs from one country to another
Scope of the Licensing Contract/Agreement
1. Specific Products for which Licensing Rights will be granted (Eligible Products)
- A common strategy is to grant the right to use the organizations trademark on a single
product item
- A second strategy is to convey rights for a product line, an array of related product items
Product Item One Specific Product

ie. Rival brand crock pots

Product Line
ie. Rival brand food preparation items
30

 Product Assortment
ie. All products produced by Rival brand

2. Degree/Scope of Exclusivity
- It addresses whether licensees will be in direct competition with each other
- When an exclusive contract for a product item, line or assortment is granted, those rights
are granted to a single company
Exclusive Rights for Specific Product(s) Granted to a Single Licensee
Nonexclusive Granting Rights to Use Intellectual Properties on Same Product(s) to Two or More
Competing Companies

3. Geographic Scope
- Licensor may deem it appropriate to issue multiple licenses but limit the applicability of
each to a confined geographic area
Compensation
- Takes 2 forms: fixed fee and a royalty
- Fixed fee: an initial rights fee or an application fee, represents an up-front payment made
to the licensor
- Royalty payments: similar to a salespersons commission in that the licensor receives a set
percentage of the total revenue earned by the licensee in its marketing of the organizations
official merchandise
- Guaranteed minimum payment: if the compensation earned from the sales fails to reach
the minimum level that is guaranteed, the licensee must make up the difference
Compliance Reviews
- require licensees to document the level of sales and the resultant royalties that are due
Benefits of Licensing
Benefits for the Licensor (Owner)
- Revenue stream
- Opportunity for licensor to attain this revenue with no significant investment
- Broader product assortment allows the licensor to reach market segments that might
otherwise be inaccessible
- Licensed products create consumer awareness and interest by virtue of their presence in
the marketplace
- Licensor has the opportunity to control the standards of quality for the products bearing
its trademarks
- Approval process also allows licensor to control the array of products available that
feature its trademarks
- By selecting only products it deem appropriate, the organization also can protect its image
in the marketplace
Benefits for the Licensee
- Ability to capitalize on the licensors brand equity
- Ability to capitalize on short-term phenomena, the greatest opportunity involves the
period immediately following a championship season
31

- Ability to capitalize on economies of scale, when manufacturing process involves many

licensors, production become large, average cost of production goes down
- Licensee can benefit by attaining a higher level of profit because of the new (higher) price
point that is reached by virtue of the addition of a popular logo or because of prestige of the
brand; pricing flexibility results in higher profit margins
Selection Criteria
Infringement
- Counterfeit products capitalize on the unauthorized use of an organizations trademarks by
individuals and companies that illegally incorporate them on products that they sell
- Knockoffs do not reach the standards of quality demanded of legitimate licensees
- Conflict between similar trademarks
Market Surveillance
- involves the policing of the marketplace in an effort to locate counterfeit merchandise as
well as other trademark infringements, to take appropriate measures to end the
infringement, to remove any illegal products, and to discourage such efforts in the future
Infringement, Surveillance and Remedies
Developing a Licensing Plan - Box 12.5 Pg 362
Growth Strategies
1. New Target Markets
- Female consumers
- Children
- Ethnicity
- International markets
2. New Up-Market Products
- Increase in marketing of more expensive, upscale products that feature a licensors
trademarks
3. More Traditional Advertising (Leveraging)
- This strategy can be equated to the task of leveraging
Licensing is characterized as the value-adding process that provides revenue-generating
opportunities via the conveyance of the right to use another organizations intellectual
property for commercial purposes
Licensing Key Points
- Licensing Is a Special Case of Sponsorship that Features a Win-Win Relationship for the
Licensor and the Licensee
- Global Sales of Licensed Products Had Continued at a Steady Growth Rate, but the Global
Recession Has Resulted in a Decline in Sales
- Major Infringement Issues in Many Countries across the World
32

SEMINAR 6: Product & Price

Sports Marketing Chapters 14 & 17
Chapter 14: Product Decisions in Sports Marketing
Selling Sports Products
Represents Two Domains of the Sports Marketing Environment Matrix
- Traditional Strategies: Product-Focused
- Sponsorship Based: Sports Dominant
The Product Variable
- include both goods and services
- tangible good, intangible service, or idea that can satisfy the needs of consumers and
organizational buyers
Goods: tangible, physical products that offer benefits to consumers
- Tennis balls and racquets, hockey equipment
Services: intangible, nonphysical products
- The game itself
Basic Product Concepts
- primary benefit has been designated as the augmented product
- eg. Augmented product for those purchasing tickets for a sporting event is entertainment,
for purchasers of treadmill, the benefit is fitness
- 1st: different segments may view the augmented product differently
For eg. Sporting event, one may want the entertainment provided by talented athletes
while another may want the opportunity to socialize and mingle with friends
- 2nd: products are seldom purchased solely on the basis of the augmented product;
consumers usually consider the ancillary components that comprise a set of product
attributes that consumers view as supplements to the augmented product. These attributes
provide benefits and value to the consumer
- augmented and corresponding array of ancillary components make up the total product
Product Characteristics: Branding
Branding: a name, design, symbol, or any combination that a sports organization uses to
help differentiate its products from the competition
A brand name should
Be positive
Be distinctive
Generate positive feelings and associations
Be easy to remember
Be easy to pronounce
Be translatable into a marketable logo
Imply the benefits the sports product delivers
Be consistent with the image of the rest of the product lines, organization, and city
Be legally and ethically permissible

33

Perceived Service Levels: Service Quality Dimensions

Tangibles: Physical facilities, appearance of personnel, equipment
Reliability: Ability to perform the service dependably, accurately, consistently
Responsiveness: Willingness to provide prompt service to customers
Assurance: Trust, knowledge, and courtesy of employees
Empathy: Caring, individualized attention to customers
Product Assortment Decisions
1. Maintain status quo (no product changes)
- Even though product assortment is unchanged, other elements of the marketing strategy
may be adjusted
2. Maintain the existing product assortment but to make modifications to those products
so as to better appeal to consumers
- Basketball have changed their rules without changing the basic game
- Marketer modified the spectator sports product in an effort to make it more appealing to
the fans
- Marketers of gyms have developed new programs using existing equipment to help their
patrons become more physically fit or lose weight
3. Product extension
- Adds choices that do not represent a radical departure from the organizations existing
product strategy
- eg. Start a new womens soccer league
4. Introduce new products that represent a significant departure from anything that is
currently part of the organizations product assortment
- eg. Nike decision to become involved with golf, ESPN branched out into F&B industry
5. Product deletion
- When products become a financial burden to the organization, they are often eliminated
from the assortment
Sports Products
1. Spectator Sports
- selling tickets
- increase viewership and listenership on a variety of broadcast media
- live audience and media-based audience
- modifications to the rules in ways that impact how the game is played or the competition
takes place
Live Audience
Media-Based Audience

Product May Be Represented by:

Access to an Event
The Competition on the Field of Play
34

2. Participation Sports
- recognize the array of activities, various market segments that comprise the participation
environment and the motives that drive individuals to participate
- role is to increase the number of participants and the frequency with which current
participants choose to engage in a specific activity
- 1st: increased participation keeps sports facilities busy
- 2nd: people who participate in a sport are more likely to be a fan of that sport, so increasing
the number of participants has the added benefit of increasing the size of the fan base
- 3rd: increased participation creates demand for more sports equipment and apparel
Organized Team Sports Football
Informal Team Sports Basketball among friends
Individual Sports Skiing, Jogging
Other Leisure Activities Fishing, Chess

Key Reasons for Participation

- Personal Improvement
- Appreciation of the Sport
- Social Interaction
Two Primary Marketing Tasks
- Attracting New Participants
- Inducing Current Participants to Increase the Frequency with which They Choose to
Participate
Outcomes from Increased Participation
- Impacts Usage for Participation Facilities
Eg. Golf Courses; Health Clubs, Tennis Courts
- Impacts Demand for Sporting Goods, etc.
Eg. Golf Balls, Apparel, Tennis Shoes
- Impacts Demand for Spectator Sports
Eg. Bowlers are more Likely to be Bowling Fans
3. Sporting Goods, Apparel, Athletic Shoes, and Sports-Related Products (SASS)
- Sporting goods include tangible products specific to a participation sport or activity. These
products may be sold to casual participants as well as those who take part in organized
activities
- Apparel may be purchased to facilitate participation; sports apparel can be fashionable
within certain market segments
- Athletic shoes; athletic endorsement
- Sports-related products include souvenirs that may be purchased at event venues or
official retailers
- Marketers must understand which products are important to their target markets and
develop a product strategy that meets those needs

35

Sporting Goods
- New Target Markets Require Different Sporting Goods
- New Participation Sports and Activities Emerge or are Introduced in New Geographic
Markets
- New Spectator Sports Influence Demand for Equipment for New Participants
- Modifications and Improvements to Existing Sporting Goods Products
Apparel
- For Participation
- For Fashion
- New Styles and Designs for Different Target Markets
- Updated Styles, Logos, and Colours
Athletic Shoes
- No Longer Placed in a Single Overall Generic Category of Tennis Shoes
- Originally Based on Functionality
- Every Major Brand Endorsed by Athletes
- Function Important i.e. Different Treads
- Part of Everyday Wardrobe Today
- Not Just for Athletic Endeavours
- More Emphasis on Styles, Fabrics, Colours and Brands
Sports-Related Products
- Souvenirs (Logo Merchandise)
- Media (Magazines, Web Site Access)
- Lessons (tennis, golf, Pilates)
- Nonsports Products at Sports Venues (Food, Beverages, Programs, and Alternative
Entertainment Options)

Strategic Initiatives for Sports Products

The Core Product Is the Game Itself Whatever Takes Place on the Field of Play, Including
the Manner in Which It Is Conducted, the Style and Strategy Employed, and the
Interpretation of Understood Laws, Rules, Regulations, and Historical Precedents
(A) Spectator Sports
- Modify products in an effort to attract new fans and to encourage current fans to attend
games on a more regular basis
- Introduce a new product
- Marketing efforts that focus on attendance-based objectives generally fall within the
product-focused domain
- Spectator sports product is the event that takes place on the field of play; merely selling
tickets provides no value if there is no play
Changing the Spectator Sports Product
Changing the core product

36

- the game itself, whatever takes place on the field of play, including the manner in which it
is conducted, the style and strategy employed, the interpretation of understood laws, rules,
regulations and historical precedents
- marketers are eager to improve their games and competitions in ways that appeal to
current and prospective fans
- but changes to the core product should be done with an air of caution
Guidelines for Changing the Core Product
- Changes to the core product should have positive economic consequences. Changes that
are made to enhance the nature of competition or to reward skilled players should result in
enthusiasm on the part of fans -> higher attendance + TV ratings -> increased revenue
- Core changes should not be made on the basis of implications for the media. Not too many
TV timeouts
- Tradition is a major consideration in changing a sports core product. Tradition is often the
basis for resisting change.
- Core changes are often based upon the emergence of competition and its impact on the
status quo. When new entrants to the spectator sports market prove to be a threat or when
fans become enamored with the new rules, the original league may likewise opt to invoke
similar changes
- Core alterations will not overcome poor quality.
- Instead of changing the core, consider changes to the peripheral product.
- Peripheral product represents the elements surrounding a game or event over which the
organization can exercise some reasonable level of control.
- While game is ongoing, other factors such as entertainment during intermission, postgame activities, and the distribution of free items can boost attendance.
- Wireless technology to provide video feeds to fans in the stands, gain access to replays,
statistics
- peripheral products are designed to make attending a game or watching it on TV more
enjoyable
- market development strategy: existing sports are simply exported to a new market
- with growing globalization of business, culture, and lifestyle, sports marketers are
capitalizing on opportunities to export their sports to new international markets
(B) Participation Sports
- Increases in participation also directly influence the level of sales in the other 2 categories
of sports products
- With increased participation, the demand for equipment and apparel related to the sport
also rises
- People who play a sport are more inclined to be a fan of that sport. By increasing the
number of people who play golf, marketers are increasing the size of an important target
market from which they can draw fans to golf events
- Segmentation-based marketing that emphasizes participation provides an opportunity to
build participation as well as interest in the game from a spectator standpoint
Eg. For less skilled golfers, courses are set up easier with tee and hole locations that reduce
the frustrations usually associated with the game
37

- Course operators are attempting to match the product to the various target markets
- By making the sport more enjoyable to golfers of varying playing ability, they are more
likely to come back and play again
- Efforts to increase participation in many sports often involve the establishment of
competitive amateur leagues
- Objective of professional sports organizations is to increase consumer involvement with a
goal of increasing their own fan base, increased participation -> greater profit potential
(C) Sporting Goods, Apparel, Athletic Shoes and Sports-Related Products
- Much of the demand for products is a direct outgrowth for the demand for spectator and
participation sports
- Some products are sold at sports venues while others are sold at traditional retail outlets,
therefore some of the marketing efforts fall within the product-focused domain and others
can be categorized as sports-dominant strategies
- eg. Beer and peanuts sold at a stadium fall within the domain-focused category, but if no
official sponsorship is in force with the team or venue, then this strategy might be classified
as an effort within the mainstream domain
Sporting Goods
- Marketers introduce new models of their products that incorporate new technology in
order to gain a competitive advantage
- Custom fitting
Apparel
- Style changes
- Participation rates influence the demand for clothing products
- Uniform designs
- Colour changes
- Licensed merchandise targeting women
- New players -> new fans rush to be the first to own the apparel
- Functionality of apparel, designed to allow garments to stretch, absorb and disperse
perspiration
Athletic Shoes
- Attributed to athlete endorsements
- Well-known athletics used as spokespersons to encourage consumers to purchase their
style of shoes
- Marketers use innovative designs and endorsements by popular athletics to gain
competitive advantage
- one to one marketing and customization strategy, choose your own colours, add your
motto, make it your own shoe
Sports-Related Products
- Teams operate their own merchandise stores
- Broad assortment of souvenirs such as balls, books, autographed photos

38

- TV networks feature sports without focusing on a single sport or event. Since they are not
selling viewership for a single spectator sport, these marketing efforts fall within the final
category of sports products
Figure 14.4 Pg 418 Examples of SASS
Sports Product Key Points
- Sports Marketing is not Just About Putting Fans in the Stadium Seats
- Spectator Sports is the Most Commonly Recognized Sports Product
- In Selling the Spectator Sports Product, Marketers Must Consider Both the Live and the
Media-Based Audiences
- Other Sports Products are Important to Sports Marketers as they Seek to:
Increase Participation
Sell Sporting Goods
Sell Apparel
Sell Athletic Shoes
Sell an Array of Sports-Related Products
Chapter 17: Pricing Decisions in Sports Marketing
Fundamental Pricing Concepts
1. Definition of Price
- Price can be defined as what the buyer gives up in the exchange process
2. Reaction to Price Changes
- Price elasticity
- Elastic demand curve
- inelasticity of demand: markets that are not as responsive to price changes, may occur
with a product that has achieved a high degree of brand loyalty or one for which there are
no acceptable substitutes
- 2 key factors that influence the elasticity of demand are the availability of substitutes and
the extent to which purchasers can simply forgo the purchase of a specific product
irrespective of the availability of substitutes
3. Substitute Products
- For spectator sports, theatre, motion pictures, sports on TV
4. Buyers Willingness to Forgo the Purchase of a Specific Product
- In some cases, an unwillingness to cease consumption relates more to brand loyalty than it
does a product category
- Tickets for spectator sports are likely elastic demand curve, offering tickets at different
price levels
- Luxury boxes possess an inelastic demand curve, limited number of seats, few substitutes
5. Buyers Ability to Forgo the Purchase of a Specific Product
- Sports products seldom classified as necessities

39

Factors that Influence Price

1. Situational Influences
- Situational influences are represented by unusual circumstances that tend to impact
consumer behaviour, which may result in a consumers decision to make a purchase that he
or she would not make under normal circumstances
- In sports, an important situational influence on prices is the teams performance, winning
creates demand
- Another situational factor is a teams move to a new stadium, such a transition is typically
associated with an increased level of attendance despite price increases
2. Costs
- Focus is on the cost of goods sold
- For participation sports, the cost of building and maintaining the facility, the cost of
equipment, salaries paid to employees, utilities and taxes must be taken into account
- For spectator sports, the majority of cost incurred is the salaries paid to players
3. Competition
- In participation market, construction of new facilities is one factor that has led to increased
levels of competition
4. Supply & Demand
- Teams have supplemented the supply by adding temporary seats or by selling standingroom-only tickets
- Demand for licensed apparel for teams with a chance to win the championship will
increase
5. Marketing Objectives
- Does the organization wants to convey a prestige image and target an affluent segment?
Does it prefer to pursue the mass market, a strategy that calls for a moderate or low-price
strategy? What are the market share objectives?

40

6. Legal Considerations
- Constriction of supply of some products, thereby exerting upward pressures on prices
- Laws that prohibit the sale of tickets above the value shown on ticket
7. Consumer Perceptions
- Some sports are perceived as superior products in comparison to other sports
- Fans are willing to pay more if the facilities are viewed in a more favourable light
- For sporting goods, many brands work hard to instill the image of superiority over their
competition
8. Marketing Mix Consistency
- Prestige products and brands are not sold through discount retailers
- Products that involve a high level of customer service must offset those costs with higher
prices
- Marketers cannot focus on a single factor when they seek to set their price
Overlap of 8 Factors => situational factors influence demand, supply and demand is tied to
competition
Elasticity
Elastic Demand Market Exhibits Sensitivity to Changes in Price
Inelastic Demand Market Is Less Sensitive to Pricing; Purchase Product at Higher Prices
Price Adjustments: Increases
- To keep up with cost inflation
- Because there is excess demand for the sports product
- Because of a winning season
Price Adjustments: Reductions
- To stimulate demand
- Used frequently for sporting goods
- Potentially risky because:
Consumers may associate multiple price reductions with inferior product quality
Consumers may associate price reductions with price gouging
They may cause competition to counter with its own price decreases
They make it more difficult for the consumer to establish a frame of reference for
the true price of sports products
Price Adjustments: Discounts
- Incentives offered to buyers to stimulate demand or reward behaviours that are
favourable to the seller
- Quantity
- Seasonal
General Implementation Strategies
- Cost-plus pricing strategy: whereby the buyer pays all of the costs associated with a
product along with a fee to the seller (eg. Pricing of a new stadium)
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- Markup pricing used in retailing environment (eg. Markup for a licensed apparel)
- Promotional pricing used to provide additional value to the consumer
- Bidding
- Yield management: various prices are used in an effort to fully utilize the marketers facility
(eg. Different prices for different tiers of seats)
- Target return pricing: marketer seeks to attain a specified ROI
Pricing Applications for Sports Products
(A) Spectator Sports
- Spectator sports industry has been criticised for pricing its tickets beyond reach of the
everyday fan
- Inelastic demand curve: Super Bowl
- For team sports that compete over the course of a multigame season -> season ticket
holders
- Corporate VS individual consumers
- Charge full face value for each ticket
- Partial-season ticket plan
- Price tiering
- Variable pricing: selling a seat for different prices depending upon timing or the
opponent, based upon the anticipated level of demand, timing (more for weekend VS
weekday)
- The higher level of demand coupled with a fixed supply of seats provides the team with the
opportunity to enhance its revenue by charging higher prices
- Value pricing, support this strategy with promotions that portray the team or event as a
bargain when compared to the alternatives
- Promotional pricing used to increase demand for games that are unlikely to fill the
stadium capacity
- Bundling
- Cross promotion discount, involves a sponsor that is associated with the discount
- Another pricing strategy requires purchasers of season tickets to make a qualifying
payment that gives them the right to purchase their tickets
- Secondary ticket market, eg. A season ticket holder may want to offload tickets to games
for which he is unable to attend -> provided an element of legitimacy to the selling of tickets
at prices exceeding their stated face value
Fig 17.3 Pg 530 Pricing Applications for Spectator Sports
(B) Participation Sports
- Supply & demand, managers of facilities attempt to increase demand during off-season by
lowering price for a game of bowling
- Base the price on the level of service provided, marketers use a higher level of service as a
means of attaining a differential advantage over their competition
- For establishing pricing differentials, some participation sports facilities use an approach
similar to that of the variable pricing strategy used by many marketers of spectator sports
- Differentials based on timing, non-peak hours vs peak hours
- Another form of variable pricing is based upon individual considerations rather than timing
(members vs non-members)
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(C) Sporting Goods, Apparel, Athletic Shoes, and Sports-Related Products (SASS)
- A key point of differentiation is the way in which value is added to many of these products
- For apparel, the inclusion of licensed trademarks
- For sporting goods and athletic shoes, endorsements by popular athletes commands
higher prices
- Primary outlay is the cost paid for acquisition of the products that they will resell (COGS)
- Markup method, consumers will often pay as much for a single beer at a sports event as
they would for a 6-pack of the same beer at the supermarket
SEMINAR 7: Place & Promotion
Sports Marketing Chapters 15 & 16
Chapter 15: Distribution Decisions and Facilities Management in Sports Marketing
Distribution (Place)
It Represents Decisions Regarding the Manner in Which Sports Products are Made Available
to the Sports Consumer
Spectator Sports
- Live Audience: attracting more fans to an event
- Media-based Audience: increasing the number of fans who witness the event via some
electronic medium
Live Audience
- Focus is on those spectators who are attending the event in person
- Contribute an emotional asset: they cheer, whistle, boo
Venue Issues
1. Event Decisions
- Location of the competition, infrastructure
- Determining which city or cities deserve a franchise in one of the many professional sports
leagues; leagues often use expansion as a means of achieving broader geographic coverage
- These leagues must consider the ability that each candidate city has in adding to the
sports fan base and attracting spectators to the stadium or arena
In Which Country Shall Special Event be Staged?
Should the Event be Held at More than One Venue?
2. Stadium Decisions
- Potential need for the construction of a new stadium or arena
- Precise location within the geographic area; impact on jobs and the increased demand for
services by local restaurants, hotels etc.
- Venue location is a key component of a teams distribution strategy. It must serve the
target market and possess an infrastructure that addresses traffic and parking issues.
- Facilities usually built side-by-side in order to take advantage of an areas infrastructure
- Capacity of the facility
- Temporarily use an existing alternative facility

43

 If New Facilities Needed, how many?

Where Should the New Stadium Be?
Permanent or Temporary Facility?
Single-Purpose or Multipurpose Facility?
How Many Fans Should the Facility Seat?

3. Timing Decisions
- Timing of the event
- Weather, season
- Competitions are scheduled in an effort to limit conflict with other events that attract
similar target markets
- Some spectator sports alter their schedules in regard to the time of day
- eg. Evening F1 race will create better opportunity to attain higher TV ratings in Europe
- eg. In the NFL, flexible scheduling refers to the delaying of decisions regarding starting
times until it has been determined which game has the greatest implications for the league,
thus the greatest interest among members of the media-based target market
When Should a Special Event be Staged?

Fig 15.1 Pg 437 Venue-Related Distribution Decisions

Tickets
- Event itself is the product for the marketer of spectator sports, and access to it must be
controlled by a ticket distribution strategy that is effective in reaching the organizations
target markets
- Traditional box office: limitations are the opening hours and location which may be far
from their home
- Walk-up sales and phone orders
- Mobile technology, purchase validated via a special code
- Authorized ticket retailers and brokers, outsourced
- Another type of retailer is the one that buys tickets and attempts to resell them at a profit
- Other similar organizations work more as an agent or broker in an effort to bring buyers
and sellers together
- Online ticket sales, ticket link on website
- Secondary ticket market: allows ticket holders to legally sell their tickets to eager buyers
- Controversy arises when a team or event withholds some of its inventory and then later
sells the withheld tickets at inflated prices through the secondary ticket market
Fig 15.2 Pg 441 Ticket Distribution Options
Media-Based Audience
- Rights fees paid by the various media organizations
- If a sport or event can increase the size of its media-based audience, then it can command
higher rights fees from the broadcast media
(i) TV
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- General sports networks: rather than featuring a single sport, they include a wide variety
of sports competitions, sports news, and sports-oriented entertainment -> provided
opportunities for broadcasts of niche sports
- Specific sport network: attract a small number of viewers, but the low ratings are offset by
the fact that they attract avid fans of a specific sport
- League networks
- Satellite and cable delivery systems also have given rise to programming that is best
categorized as a sports tier
- Team dedicated networks
- College dedicated networks
- pay per view (PPV)
(ii) Radio
- Satellite radio
(iii) Internet
- General radio
- sport specific audio and video streaming
(iv) Mobile communication devices
- Cell phones have been viewed as the ultimate medium for one-to-one marketing
- Each cellular customer can select his or her own content
- Marketers often refer to this as mass customization
Smart watches
Movie theaters (cinemas)

Market Development Strategies

- entering new markets with the organizations existing product assortment
- enter a new geographic market
- raise the new profile of a sport by attracting new media-based fans in new international
markets
Eg. Established leagues may choose to expand by locating a new team in a new international
market
Eg. Creation of an entire new league
Participation Sports
- When marketers create demand for participation sports, they concurrently create demand
for the facilities where the participation will take place
- Typical distribution concern the number of facilities and their location within a geographic
market
1. Dedicated Facilities (Private, Commercial, Employer provided)
- Dedicated facilities: constructed with a specific type of activity in mind
45

- Built and managed for the express purpose of providing a venue that meets the needs of
those who want to participate in a specific activity
- Operators of privately-owned facilities are in the business to earn a profit
2. Public (Government, Education Institutions)
Publicly-owned facilities are open to certain groups of citizens
- Result is that these publicly owned facilities are in direct competition with those that are
privately owned and operated
3. Open-Access Facilities
- Some require licensing, eg, fishing, hunting
- Some facilities are not designed for participation sports, but the public adapts them to
meet their needs, eg, walking and running
Licensed Activities (Fishing, Hunting, etc)
Unrestricted Access (Parks, Hiking Trails, eg. Tree Top Walks)
Public Adaption (Roads used for jogging, void decks for exercising, etc)
Sporting Goods, Apparel, Athletics Shoes, and Sports-Related Products
Key Question Concerns the Scope of Distribution in a Given Geographic Area
- Intensive distribution: product is sold at a large percentage of the appropriate retail
outlets within the area
- Appropriate outlets: refers to retailers that would typically include those types of products
as part of their regular assortment of goods
- Selective distribution: when the distribution objective is to make the product more scarce
- Exclusive distribution: limits the availability of a product to a single source within a specific
geographic market
- Nonstore retailing: using direct response marketing (DRM)
- Sports related products that are sold at the venue, marketers must determine the optimal
number of service facilities and where they should be located within the stadium or arena
- The dilemma lies in the difficult task of determining the optimal number of fixed and
portable concession stands such that the venue operator can maximize revenue from
concessions while simultaneously providing ample space for the fans to navigate the
concourse freely without the barriers created by misplaced vending areas and the people
waiting to make their purchases
- Service in seating area
Facilities Management
1. Usage Scheduling
- Management can schedule games that would not conflict with the secondary tenants
schedule of events
2. Primary Tenant Lease Terms
- Facilities manager must consider the needs of the primary tenant
3. Rental Policy and Rate Determination for Secondary Tenants
46

- Rates vary based upon the nature of the event being staged by the secondary tenant
4. Staff Selection and Training
- Use of independent contractors, outside staffing agency
5. Staff Scheduling
6. Box Office Management
- Role of box office is to provide correct information regarding seating alternatives, pricing
and hours of operation
7. Maintenance Levels and Budgeting
- Anticipate the annual expenditures that will be required to maintain the venue
8. Risk Management
- Insurance, financial risk
- Personal injury to customers
- Property damage
- Terrorism
9. Security
- Crowd control and alcohol management
10. Traffic Control and On-Site Parking
- Capacity
11. Media Facilities
- Sports venues rely on media for the need to assess the ever-important media-based
audience, reliance on the various electronic and print media to relay to the public reports
regarding the activities at the venue
- For reporting media, decisions regarding the number of media credentials to be issued and
which media should be provided access to the event must be determined
- For members of the broadcast media and members of the reporting media, need to
consider the capacity of the press box
12. Negotiation of Concession and Service Contracts
- F&B services
13. Vending Considerations
- Determining the optimal number of sales points so as to minimize customer waiting,
maximize sales, minimize the crowding that constricts the natural flow of traffic among
those in attendance
14. General Marketing
- Manager must manage the inventory of tickets
- Involves the establishment of ticket prices that will sell out the arena while maximizing
revenues
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15. Sponsorship Compliance

- Clean stadium is one that is devoid of all signage that does not comply with official
sponsorship specifications
Chapter 16: Developing a Promotional Strategy for the Marketing of Sports Products
Promotion
- An Effort to Communicate with One or More of the Organizations Target Markets
- It encompasses all forms of communication to target audience
Principles of Promotion
1. The Communications Process
- Sender -> encoding -> medium -> decoding -> receiver
- Clutter
- Feedback
2. AIDA Concept
- Attention -> Interest -> Desire -> Action
- gain attention
- develop interest
- desire relates to the receivers conviction that the product has value for them and
represents a superior option when compared with other alternatives in the marketplace; if
successful in creating desire, the marketer has developed a differential advantage
- action represents the initiation of the desired behaviour
Components of the Integrated Marketing Communications Plan
- Medium: the mechanism used to transmit a message
- Each medium has a variety of vehicles that appeal to different market segments
- By selecting an appropriate vehicle, the marketer increases the likelihood that its message
will reach the intended target audience
Promotional Mix (6 Tools)
1. Advertising
- Broadcast Media
- Print Media
- Placement (Outdoor) Media
2. Personal Selling
3. Sales Promotion
4. Public Relations (Publicity)
5. Sponsorship
6. Direct Response Marketing (DRM)
The IMC Plan
- Consistency
- Synergy
- Must Support the Product, Distribution, and Pricing Strategies (The other 3 Ps)
- Must be Appropriate for the Target Market
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Implementation of Promotional Strategies in the Marketing of Sports Products

1. Advertising
Paid, Nonpersonal Form of Communication that is Generally Disseminated via One or More of the
Mass Media
TV, Radio, Magazines, Newspapers, Internet (websites, social media platforms)
A Medium Is the Broad Mechanism for Conveyance of the Message
Once a Medium Is Selected, the Marketer Must Still Select Specific Vehicles
A Vehicle Is a Specific Option within Each Medium
Medium: Magazines, Vehicles: Her World, Eight Days

- selection of media and vehicles within each medium

- determining which vehicle to use
Applications
- celebrity endorsement
- marketing of participation sports
- some advertising done to influence primary demand rather than selective demand
Eg. Advertising done to increase the number of golfers rather than to induce them to play at
a particular golf course
- virtual signage
- participants uniforms
2. Personal Selling
Paid Form of Direct Interaction between a Selling Entity and a Prospective Buyer
Persuasive Process Designed to Encourage Action on the Part of the Prospective Buyer
Interactive One-to-One Marketing
Message Can be Adapted as Needed
- B2B market
Applications
- telemarketing
- in marketing of participation sports, some facilities offer a free trial period membership to
attract prospective customers
- role of salesperson in customized products

49

3. Sales Promotion
Tools Often Used as Direct Inducements to Encourage a Particular Response on the Part of the
Prospective Buyer

- provide direct inducements, enhance the image of marketer, stimulate immediate action
on the part of the prospective buyer
Applications
- discount coupons
- premiums
- free samples
- virtual tours
- trade shows
- consumer expo
- contests
4. Public Relations
Nonpersonal Form of Communication Designed to Influence Attitudes and Opinions of
Various Groups of Stakeholders
Designed to Generate Positive Publicity; Often Used to Counter Negative Publicity

Applications
- fan appreciation day
- press releases
- charities
- off season tours
- free tickets
- inverted pyramid writing style for press releases -> involves leading with the most
important aspects of the communication, with less important issues left for the end
5. Sponsorship
- local festivals, fairs, annual events, entertainment tours and attractions, the arts, causes,
associations and membership organizations
- marketers may find it good to align themselves with one or more of these alternative
sponsorship opportunities as they seek to develop an effective IMC plan
Applications
- value provided by a brands recognition and its marketability is referred to as brand equity
- cause related marketing (CRM)
- Causes Charities, Disaster Relief, Health
- Grass Roots Events Museum Exhibits, Fairs, Local Festivals
6. Direct Response Marketing (Direct Marketing)
Paid Form of Mass Communications
Direct Connections with Carefully Targeted Individual Consumers that Utilizes Customer
Databases
Non-public, Immediate, Customized, and Interactive

50

 Effort to Communicate with the Target Audience in a Manner Such That the Receivers Can

Immediately Initiate Action Upon Receiving the Message

Applications
- promotional pieces sent through mail
- mailers that simply promote a product without providing a mechanism for immediate
feedback are deemed to be traditional advertising vehicle
- TV ads can be structured so as to provide a direct feedback mechanism; consumers who
are interested can contact the company through methods detailed in the ad message
- infomercials
- emails and regular mails
- brochures
Overview of the IMC Components available to Sports Marketers
- Product placement
- Cross promotion
Brand Equity
- Brand can provide a differential advantage when it is viewed in a positive manner by
consumers because it conveys a message of quality
- High levels of brand equity can create opportunities for the introduction of new products
that capitalize on the markets perception of the brand
- Brand extension strategy
- Ability to license a trademark is the ultimate illustration of brand equity
- Fans efforts to identify with a team by purchasing logo merchandise reflect the power of
brand equity
- Brand equity provides an advantage upon which marketers can seek to capitalize when
selling their broad arrays of sports products
- Brand equity relates to the ability of the marketer to characterize its brand as an asset, one
that provides value to the marketer
Cross-Promotion
- Occurs when there is a common ownership or when 2 or more independent marketers join
forces to develop a promotional strategy that provides each entity with tangible benefits
- May simply involve cooperative advertising, with both organizations and their products or
brands appearing in a traditional advertisement
- With spectator sports, cross promotions often target the fans attending a particular event,
this can be done by placing advertisements in the event program, by making public address
announcements, via venue signage, by distributing discount coupons at the event, or by
distributing free premiums that feature the partner
- Cross promotions can be integrated into an organizations relationship marketing program
Testimonials With Sports Celebrities
Used because of ability of sports celebrities to persuade the target audience and move them
toward purchase

51

Effectiveness of Sports Celebrities as Message Sources

Credibility: the expertise and the trustworthiness of the source of the message
Expertise: the knowledge, skill, or special experience possessed by the source about the
sports product
Attractiveness: usually associated with physical beauty but it appears to have another
nonphysical dimension based on personality, lifestyle, and intellect
Guidelines for Using Sports Celebrities as Endorsers
- Sports celebrities are more effective for endorsing sports-related products
- Long-term relationships or associations between the product and the endorser are key
(e.g., Michael Jordan with Nike)
- Advertisements using athlete endorsers who appear during contests or events in which the
athlete is participating are less effective
- Athletes who are overexposed may lose their credibility and power to influence consumers

SEMINAR 8: Relationship Marketing, Use of Technology, Controversial Issues

Sports Marketing Chapters 18,19,20
Chapter 18: Relationship Marketing in the Business of Sports
The Foundation of Relationship Marketing
- integrated effort to identify, maintain, and build a network with individual consumers and
to continuously strengthen the network for the mutual benefit of both parties through
interactive, individualized and valued-added contracts over a long period of time
- only when the customer is retained over an extended period can the marketer reap the full
benefits represented by Customer Lifetime Value (CLV)
Customer Retention
- Basic Premise of Relationship Marketing
- Seeking Long-Term Association
- Cost of Customer Acquisition Estimated to be 6 Times that of the Cost of Taking Steps
Required to Keep an Existing Customer Satisfied
The Role of IT in Relationship Marketing
- build customer database
- collect customer-level data
- differentiate customers
- segments
- niches
- individuals
- develop innovative programs
Benefits of Relationship Marketing
- loyalty
- more business
- advantage over competing alternatives
- advantage over competitors in same sport
- complaint resolution
52

- ability of customers to communicate their concerns and complaints to the marketer

represents a forum that can facilitate the resolution of the fans complaints
- aids in customer retention
- image of concern
- sense of belonging
- attend more games
- watch and listen to broadcast media
- read accounts in newspapers and magazines
- engage in informal conversations
- purchase more licensed merchandise
- engage in BIRGing and CORFing behaviours (BIRGing basking in reflected glory is
when fans view themselves as part of the team; CORFing is the act of cutting off reflected
failure)
Benefits of Relationship Marketing
- Customer Loyalty
- Facilitates Resolution of Complaints
- Sense of Belonging Customer (feels) Not Just a Buyer

Six Components of Relationship Marketing

1. Mutual benefit: refers to the fact that both the buyer and seller gain in a win-win
relationship (buyer & seller benefit)
2. Trust: feeling that the other party will be honest
3. Empathy: refers to the condition whereby each entity in the relationship can view the
situation from the others perspective (understand each others situation)
4. Communication: interactive & responsive
5. Bonding: refers to the creation of a unified commitment that holds the principals
together (strong unified commitment viewed by the participants as a partnership)
6. Continuity: seek to maintain a long-term association, relative relationship strength
Components of Relative Relationship Strength
(A) The Core Relationship
1. Usage
(a) Length
- Length of the relationship reflects the current duration of the partnership
- The longer the relationship, the stronger the bond tends to be

53

(b) Intensity
- Refers to the level of commitment that one party has for the other
(c) Frequency of contact
- Refers to the number of times in which the fan is a spectator
- Media-based
- In-person (live)
2. Fan Identification
- reflects the emotional side of the fan
(a) Emotional Involvement
- represents the level of psychological attachment that the fan has with the team
- if the team were to be dissolved or move, the fan would experience a sense of loss in his or
her life
- they bask in the reflected glory of their teams success and they cut off the reflected failure
when they lose
- BIRGing and CORFing reflect a bond with the team
(b) Personal Commitment
- strong commitments contribute to the fans tendency to devote more time following the
team in media reports and learning about the sport
(c) Loyalty
- emotional involvement and personal commitment are related to the fans loyalty
- even when the team is struggling, some fans refuse to stop buying tickets and terminate
their relationship with the team
(B) The Expanded Relationship
1. Product Merchandising
- Fans responsiveness to product merchandising refers to the purchase of licensed
merchandise
- Purchase and display of apparel and other products that bear the teams logo
- Teams that have been successful in nurturing strong relationships with their fans are the
ones that routinely sell the most licensed merchandise
2. Word of Mouth
- Fans behaviour regarding word of mouth advertising
- Continuity refers to the general belief that the most valuable relationships are represented
by long-term commitments
- Relationship based marketing recognizes the value that any individual customer represents
over time
- Marketers of every spectator sport seek to maintain long-term relationships with 2 key
target markets: spectators and sponsors

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Applications of Relationship Marketing in Sports

1. Clubs
- By transforming a customer into a member, the bond between the 2 is strengthened
- Some clubs target specific demographic groups
- In the participation sports market, the marketing intent may be to create a club that will
appeal to many of those who are involved in a particular activity
- This type of club reaches individuals not only who participate in the sport, but also many
fans who are part of the important spectator market
2. Serial Marketing
- It keeps consumer involved with the marketer over some meaningful period of time
- In spectator sports, teams may use giveaways over the duration of a season and the
objective is to instill within the fan the desire to accumulate the entire set
3. Frequency Incentives
- Frequency attendance cards
4. Affinity Marketing Programs
- When consumers have an affinity for something, it can be inferred that they have an
attraction that can serve as the basis for an enduring relationship
- Affinity can be stronger if we have personally derived some benefit from the organizations
that we personally derived some benefit from the organization in the past or if we perceive
the opportunity to gain some benefit from it in the foreseeable future
- Affinity programs capitalize upon consumer sentiments by securing the involvement of
individuals who share common interests and activities
- The programs provide extra value for consumers, and this value encourages the
development of stronger relationships
5. Routine Periodic Communications (One-Way)
6. Traditional Print Media
7. Email
8. Telephone
9. Interactive Opportunities
10. Gifts
11. Fan Appreciation Activities
12. Contests
13. Logo Merchandise
14. Direct Access/ Personal Representative
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15. Recognition
Overview of Relationship Marketing in the Sports Marketing Environment
- develop comprehensive databases that includes important information about the
marketers customers
- data mining techniques
- individualized value proposition
Evaluating the Effectiveness of a Relationship Marketing Program
- Track sales trends
- Monitor complaints
- Customer satisfaction surveys
- Monitor internet chat rooms, bulletin boards, blogs
- Calculating Click-Through Rate (CTR) for internet-based relationship marketing initiatives
- CRM software, Data Mining
Recovery Marketing
- when something threatens a marketers ability to retain its customers, the best solution
may be the implementation of a recovery marketing strategy
-> Procedures for Recovery Marketing in Spectator Sports
1. Apologize to the fans
2. Make it personal
3. Provide a value-added solution
4. Offer risk-reducing incentives
5. Communicate and follow up
Relationship Marketing Key Points
- Relationship Marketing Is All About Customer Retention
- Key Issues Are Customer Satisfaction and Problem Resolution
- Relationship Marketing Encompasses All Elements of a Marketing Strategy
- Win-Win Environment
- Focus Is on Lifetime Customer Value In Other Words, a Long-Term Relationship
- Despite Best Efforts, Things Go Wrong
- Need to Understand Recovery Marketing
Chapter 19: The Role of Technology in Sports Marketing
Foundation for Internet Applications
-> Developing an Internet Philosophy (Fig 19.1 Pg 574)
Technology The Internet and Beyond
- Technology Has Impacted Virtually Every Aspect of Every Organization
- Sports are No Different in this Regard
- The marketer should be careful to avoid innovation overload by NOT incorporating
technology or features that target market neither understands nor deems relevant

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Foundation for the Internet: Five Key Questions

Why?
- Will It Enhance Marketers Image?
- Will It Augment Other Strategic Initiatives?
- Will It Result in Increased Demand?
Who?
- Who Will Utilize the Site?
- Is It Open to Everyone?
- Will It Target Adults or Kids or Both?
- What Other Web Sites Will be Linked to It?
What?
- What Is the Sites Core Purpose?
- How Will It Impact the Target Market?
Where?
- Where Will Users Gain Access to the Site?
- Where Will Site be Developed and Maintained?
How?
- How Will Users Receive the Information?
- How Will the Site be Developed?
- How Will the Site be Evaluated?
Types of Sites in Sports Marketing
1. Content Sites
2. Team or League Sites
3. Commerce Sites
4. Gambling Sites
Revenue Streams
1. Revenue Models for Content Sites
(a) Online Advertising/ Sponsorship
(b) Subscription Fees
(c) E-Commerce
2. Revenue Models for Team and League Sites
(a) Online Advertising/ Sponsorship
(b) Subscription Fees
(c) Fee-Based Access for Audio and Video Programming
(d) E-Commerce
3. Revenue Models for Commerce Sites
(a) Sales Revenue
(b) Commissions
(c) Online Advertising/ Sponsorship
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4. Revenue Models for Gambling Sites

(a) Wagers
(b) Subscription Fees
(c) Online Advertising
Web-Based Objectives
- Provide information
- Facilitate distribution
- Enhance customer relationship management
- Facilitate operations
WWW Applications in Sports Marketing
1. Provide Information
2. Facilitate Distribution
- bring buyers and sellers of tickets together
- offers replays of competitions
3. Enhance Customer Relationship Management
- developed different versions of websites in different countries
- use polls to pose questions
One-Way Communication
Interactive Communication
One-to-One Marketing (Customization)
E-mail Domain

4. Facilitate Operations
(a) Marketing Research Data Collection
(b) Account Management Order Extra Tickets
(c) Database Management Contest Information
(d) Human Resources Outreach Job Postings
(d) Interoffice Communications Among Offices
(e) Interactive Communications Email, Webcam, Meetings
(f) Participant Registration
Technology beyond the Internet and WWW
1. Mobile Technology
- Customized Content
- Information Service
- Audio and Video Highlights
- Tickets for Access May be Stored & Displayed
2. Technology Integration
3. Electronic Funds Transfer Technology
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4. Smart Cards
- Similar to EFT and Credit Card
- Value Loaded on Card
- Tickets on Card (Contactless Entry)
5. High-Definition TV
6. Interactive TV
- Multiple Feeds from Which Viewer Can Select
- Trivia Games
- Information Available Scores, Statistics
7. Instant Replay
8. Wifi Capabilities
- Wireless Access
- Fans, Media Who Have Laptop Computers or
Smartphones
9. Global Positioning Systems (GPS)
- Golf Courses Information for Players
- Participants Runners, Cross Country Skiers
Eg. Boston Marathon Facilitated Tracking of Runners
Role of Technology Key points
- The Internet and the Social Media Have Ushered in Dramatic Changes in Every Industry
including Sports Marketing
- Web Sites Can Provide a Revenue Stream
Advertising and Sponsorship
Subscription Fees
E-Commerce
- Other Technology Beyond the WWW Has also Played a Role

Chapter 20: Controversial Issues in Sports Marketing

Do The Right Thing
- All Marketers Face Scrutiny
- Ethics Is Subjective
- Any Decision May Evoke Controversy
- Critics Are Vocal
- Issues for Both the Marketing of Sports Products and Marketing Through Sports

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1. Target Marketing Controversies

(a) Exclusionary Membership Policies
- private clubs have the right to restrict their memberships by admitting only the people
who fit a predetermined demographic profile
(b) Targeting Children
- marketing of athletic shoes: induce kids to purchase expensive athletic shoes but they
cannot afford them
- expensive products, creating unrealistic expectations
2. Product Controversies
(a) Oversaturation of Spectator Sports
(b) Gimmick Sports
- promoters have continued to supplement those competitions with events that represent
unusual variations of a sport or that feature athletes in competitions that are best described
as novelties
- focus on sexuality rather than sports
(c) Appearance Money
- top players are often paid a significant sum of money just for agreeing to participate in a
tournament or event
(d) TVs Role in Spectator Sports
- most major sports now incorporate media timeouts at designated points during the course
of play
- make-goods are the free advertisements that are provided by the broadcaster to make up
for the shortfall between the anticipated and actual ratings for a particular program
(e) Changing the Spectator Sports Core Product
- changes in rules
(f) Player Mobility
- trading of players among teams
- often cited as the Business Side of sports
(g) Unwholesome Nonsports Products Sold Through a Sports Platform
3. Distribution Controversies
(a) Franchise Mobility
- fans are critical of player mobility because they perceive that a star players departure
results in an inferior product; franchise mobility is even more problematic because the fans
lose direct access to the sports product
(b) Taxpayer- Funded Venues
- teams may move because of the lack of local fan support

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- to prevent loss of a treasured team, some cities are forced to commit resources for the
construction of a new stadium or arena
- critics argue that cities are held hostage, either they must devise a way to secure funding
for a new facility or they lose the team
(c) Control of Streaming Videos and Products
- unauthorised distribution of broadcast material
4. Pricing Controversies
(a) Ticket Prices
- High Cost
- Focus on Corporate Ticket Buyers
- High Prices for Special Events
(b) PSL Personal Seat License or Permanent Seat License
(c) Pay-per-View (PPV)
- PPV charges are being imposed upon sports programming that has historically been
broadcast on free-to-air TV
(d) Team Scalping of Tickets
- several teams and events have initiated their own practice of selling tickets at prices that
exceed their face value
(e) High Prices for Participation Sports, Athletic Shoes, and Other Sports-Related Products
5. Promotion Controversies
(a) Overcommercialization
(b) Naming Rights
(c) Signage Issues
(d) Athletic Endorsements
fees paid to these celebrities inflate prices and that there are superior products sold at
lower prices
- Create Unrealistic Expectations Among Kids
- Create Demand that Parent May Rebuff
- Believed to Exert Upward Pressure on Prices
(e) Virtual Advertising
(f) Ambush Marketing
- When a company capitalises on goodwill of a sports event using promotional tactics to
imply official association
For broadcasting right of 1st refusal
Clean Zone around Venue
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 Public Relations Campaign

6. Broad-Based Controversies
(a) Estimates of Economic Value are Overstated
- Estimate Used as Rationale for Investment
(b) Costs are Underestimated
(c) Disregard of Human Rights
- Outsourced Manufacturing
Eg. Athletic Shoes in Vietnam
(d) Gender Equity
(e) Handling of Performance-Enhancing Drug Violations
- Steroids and Human Growth Hormones
(d) Integrity of Sports
(e) Security
- Fan Safety, Terrorism, Burden on Organisers
(f) Gambling Issues
SEMINAR 9: Postevent Evaluation, Measure of Success
Chapter 9: Postevent Evaluation: Identifying Success and Failure
Implementation Phase

Control of the Strategic Sports Marketing Process

- Are the assumptions on which the strategic marketing plan was developed still true?
- Are there any unexpected changes in the internal or external environment that will affect
our plan?
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- Is the marketing strategy being implemented as planned?

- Are the results produced by the strategy the ones that were intended?
Crisis Plan
Needs to include:
Well-defined organizational response strategies
Specific procedures that will lead to more efficient and effective response
Steps that will deal effectively with potential media impact and will enhance image
Efficient ways to deal with a variety of problems that could occur
Sponsorship Accountability
Lack of a Standard Measure
- Longitudinal research tracks performance over time provides better information
- Cross-sectional research provides a snapshot of the environment at a single point in time
Cost versus Benefits (ROI)
Best Use of Scarce Resources (Maximize ROI)
Lack of a Standard Measure (No consensus on how to measure ROI)

Current Practices
- Qualitative assessments are subjective and are often based upon the opinions of a small
number of executives and managers within the sponsoring firm
- Measures of market response represent longitudinal, quantitative studies, whereas media
equivalencies fall into the cross-sectional category
- Market response often requires both a pre-event and a postevent measurement of some
marketing metric that is reflected in the sponsors objectives
- Media equivalencies are an assessment of the sponsorships ability to provide media
exposure during the staging and the broadcast of the event, thus the measurement
represents a snapshot of the environment at the time of the broadcast
Postevent Evaluation Methods
1. Qualitative Assessments
- utilizes the judgement of executives or experts
Judgment & Perception
Eg. We delighted to continue our association with the HSBC Women's Champions
2. Market Response
(a) Change in Sales
- How much did sales increase as a result of the sponsorship?
- before and after (pre/post) methodology
- tie sales directly to the sponsored event
Commonly Applied Measures:
Before-and-After Measurements
Comparison to Same Period Sales
Compare Sponsorship Region to Rest of Market
Tie Sales Directly to the Sponsored Event
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(b) Impact on Trade Participation

- assesses the sponsorships impact on the trades willingness to participate in an array of
marketing initiatives undertaken by the sponsor
- shelf space, willingness to display point-of-sale promotions, willingness to engage in
cooperative advertising, percentage of intermediaries in the affected market that agree to
stock the sponsors products
Trade Represents the Intermediaries, Especially the Retailers, that Operate within the
Sponsors Distribution Channel
Measure The Trades Increased Involvement with the Sponsor and the Sponsors Products
Increase in POS Display at Retail Stores
Increase in Shelf Space
Increase in the Number of Stores Selling the Sponsors Products
Investments in Cooperative Advertising
(c) Change in Consumer Attitudes
- Measurement of consumer attitudes both prior to and upon the completion of the
sponsored event
- How did the actual performance compare to the stated sponsorship objectives?
- Experimental group, control group
What Attitude Is to Be Measured?
Requires a Measurement of that Attitude Prior to the Implementation of the Sponsorship Program
(Prior to the Initiation of the Leveraging Effort)
What Percentage of Consumers Anticipate Purchasing the Sponsors Products?
What Percentage of the Consumers Have a Favourable Opinion of the Sponsor?
How Has the Sponsors Image Changed in the Eyes of the Consumers?

3. Media Equivalencies
- The basic premise is that a sponsorship provides opportunities for exposure in a number of
different media
- Without the sponsorship, these opportunities might not exist, and if they did, they would
come with a cost associated with them
- Using the comparable value approach, the focus is on the economic value of the exposure
Sponsorships Result in Exposure
Of Particular Interest is the Viewers Exposure to the Sponsors Trademarks and Logos as

Well as the Number of Times that the Sponsors are mentioned during the TV Broadcast that
Features the Sponsored Property
The Key Question Is: How Do We Assign a Monetary Value to that Exposure?
One Answer Is to Determine How Much it Would Have Cost the Sponsor to Have
Purchased an Equivalent Amount of Exposure Using Traditional Advertising during the
Broadcast of the Sponsored Event
(a) Comparable Value
- Premise is that sponsors receive exposure, and this exposure has commercial value
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- Objective of the comparable value methodology is to assign a single estimate to the

monetary value of that exposure
- Emphasis is on 2 components: determination of the exact amount of time that a sponsors
brand name, trademarks and logos appeared in a readable form for the TV viewers to see
AND the number of times that the sponsors name was mentioned during the course of the
broadcast
Value of Exposure or $ per Exposure
Value of Mentions or $ per Mention

(b) Share Value

- Comparison of the level of exposure attained by one sponsor VS the other sponsors
associated with the event
- Valuable when an event has many sponsors, when the costs of being associated with an
event vary significantly, and when the event is broadcast to the consumer market
Another Measure Is to Use the Exposure Time to See How the Sponsor Fared Against The

Rest of the Sponsors

Out of the Total Exposure Time Achieved by All Sponsors, What Percentage Was Attained
by the Sponsor in Question?
Using Share Results:
Compare Your Sponsorship to Others for the Same Event
Compare Different Levels of Sponsorship
Compare Sponsorship of One Property to Sponsorship of Other Properties

Overview of Concerns Surrounding Postevent Evaluation

- CPM fails to capture the essence of the sponsorships effectiveness because it is a measure
of the vehicles ability to reach consumers
- sponsor recognition does not necessarily translate into positive behaviour from the
sponsors perspective
- not all sponsors view ROI as the primary motivation for this type of investment; some
sponsors still view ego-oriented or philanthropic objectives as a sound basis for their
involvement
- an array of service providers utilize different formulas for making the media equivalencies
calculations
- the next concern is the definition of what constitutes a measureable image
- effective use of market response measures are dependent upon 2 key factors:
- sponsor needs to establish measurable objectives on some key marketing metric
- measurement techniques should be defined prior to the implementation of the
sponsorship
- inability to isolate the precise level of market response that can be attributed explicitly to
the sponsorship itself
Other, Perhaps Better, Techniques Are Available
Different Methodologies Produce Different Results
Exposure May Not Translate into Sales
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 New Sponsors Often Overlook ROI

Question of What Constitutes a Viewable Image

New & Improved Measures

1. Recognition Grade
- takes other considerations into account
- Reduces Value for Small Images and for Cluttered Screen When Exposure Exists
2. NTIV Factor (Joyce Julius)
- national television impression value, but goes far beyond television
- statistical objective is to determine the number of gross impressions attained via an array
of exposure outlets
- Incorporates Other Media Exposure such as Radio, Print Media, and Venue Signage
3. SponsorMap (Starfish)
- recall, passion, persuasion (gratitude), image, brand commitment
- Focus Is on Outcomes (Recall, Passion, Persuasion, Image & Commitment)
4. Spindex Television Analysis
- determines media equivalent cost
- Provides More Detailed Information
- Media Equivalent Cost (Signage, Scoreboards, Clothing, Location of Logo on TV)
5. Sponsorship Scorecard (Nielsen)
- provides information regarding the number of times a sponsor is mentioned
- identifies the number of occurrences and the duration of the exposure each time the
sponsors logo appears on camera
- Internet-Based; Considers Alternative Media
6. SPORTSi (TNSSport)
- determination of the value of TV exposure but done electronically through the use of
advanced image recognition technology rather than relying on manual input by a human
observer
- Electronic Measurement of Exposure
Sponsee Accountability
- Fulfillment (Compliance) Report
- Documents that each component to which the sponsor was entitled was actually provided
by the sponsee (such as):
- Signage
- Complimentary ads
- Free tickets
- Other contracted components
Failure of a Sponsorship
Failure:
- Failed to Meet Expectations
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- Sponsors Chose Not to Renew

Dilemma is that Sponsors Often Choose not to Renew Some Sponsorships that Have Met All
of their Expectations
Competitor Response
Natural Response by Competition is to Attempt to Neutralize Any Differential Advantage
Based Upon a Sponsorship
Responses by Competitors:
- Piracy or Ambush Marketing
- Increases in Promotional Activities
- Aggressive Changes in Marketing Mix
Reasons for Sponsorship Failure
1. Weak Sponsorship Foundation
- need to meet the basic elements of a sound sponsorship foundation
2. Decrease in Market Value
- if a perceived decrease in the value of sponsorship is not matched with a comparable
decrease in the rights fees, then the sponsor will generally view the sponsorship as overpriced
- when the price paid for the sponsorship exceeds the value received from it, the result will
likely be that the sponsor will choose not to renew the contract
3. Cost Becomes Prohibitive
- even when the event or property delivers value comparable to the price it charges, the
opportunity may be priced beyond the budget of some potential sponsors
4. Change in Corporate Direction
- sponsor may decide another course of action is more appropriate
5. Property Hopping
- sponsor exhibits a pattern of repeatedly moving from one short-term commitment to
another
- the idea may be to reach an array of consumers, or it may revolve around the desire to
keep the marketers name in front of the public by continuing to invest in properties
throughout the year
6. Timing Considerations
- dates for an event may suddenly conflict with other strategic initiatives on the part of the
sponsor
7. Failure to Understand What is not Received
- due diligence overlooked
- sponsors believe that they have a good understanding of what is included in their contract,
but this does not imply that they necessarily know what is not included
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8. Greenwashing
- dont sponsor green unless you are green
- sincerity of marketer is questioned
- any goodwill that was generated can quickly disappear when the sponsors motivations are
called into question
- is it truly an effort to be a good corporate citizen or is it simply a public relations ploy?
9. Overreliance on Small Sponsorships
- although a marketer can sponsor several smaller events for the cost of a single, highprofile event, brand equity is best enhanced via relationships with large, prestigious
properties
10. Failure to Sell Internally
- while marketers view sponsorships as a way to reach consumers, others within the
organization may see it as an expenditure that limits their ability to use the money in other
ways such as R&D
11. Failure to Deliver Sought Results
- when there is a gap between the targeted and the actual results, questions will be raised
as to why the sponsorship failed to deliver
Sponsorship Evaluation Key points
- Postevent Evaluation is Essential
- Sponsors Likely to Request It as Part of a Fulfillment Report from the Sponsee
- Will Help the Sponsor Decide Whether to Renew or Terminate a Sponsorship
- Some View Any Non-Renewal as a Failure
- Some Successful Sponsorships are Terminated by Satisfied Sponsors
- There Are Many Reasons for Failure
- Learn from Successes and from Failures

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