Chapter 14

Sport Sales

Introduction• Sales function accounts for the vast majority of

revenues for any sport organization.• Regardless of your position in the sport industry, it

will entail some level of sales.• There has been a shift in emphasis from product-

oriented to consumer-oriented sales.

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History

• Certain myopias slowed the growth of the sports marketing profession.– One-size-fits-all packages, lack of foresight in

marketing

• Evolution of marketing occurred through increased competition for the entertainment dollar and through professionally trained sport marketers.

Sales in Sport Setting• Sales: Revenue-producing element of marketing• Four ingredients to selling:

Finding the customer Getting through to the customer Increasing awareness/interest Persuading customers to act on their interest

• Four factors to purchase: Quality QuantityTime Cost

• Selling point: The emotional presence and element of excitement that exists within sport

Sales Strategies and Methods: Database Marketing• Creation and management of database that

includes consumer demographics• Ability to access, understand, and utilize

information valuable to the maximization of sales efforts

• Utilize database to generate sales through direct mail, telemarketing, and personal sales

• Personal selling incorporates database into face-to-face, in person selling

Sales Strategies and Methods: Benefit Selling• Promotion and creation of new benefits to offset

existing perceptions of the sport product or service• Understand which objections customers have to

your product or service, and why• Once benefits have been identified, they must be

publicized and must be judged by the consumer to have worth or value

• Ex. flex books

Sales Strategies and Methods: Aftermarketing

• Process of retaining customers

• Encourages organizations to view season ticket holder not as a one-time $3,000 customer but, based on a potential span of 10 years, a $30,000 client

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Sales Strategies and Methods: Up-Selling• “Escalator concept”

– Sport organizations strive to move customers up the escalator from purchasing single-game tickets to mini-ticket plans to season ticket packages

• Sponsorship sales – Increase company’s involvement with your sport

organization• Never be satisfied with simply renewing a customer

at his or her current level of involvement

Sales Strategies and Methods: Eduselling• Evolutionary form of selling that combines needs

assessment, relationship building, customer education, and aftermarketing

• Monitoring consumer utilization and satisfaction through regular communication

• Proactively assisting customers in developing ways to better utilize and leverage their investment with the organization

What Makes a Good Salesperson1. Laugh: A salesperson needs a sense of humor.2. Make sure sale makes sense for prospective customer.3. Don’t take rejection personally.4. Know as much as you can about the sales prospect.5. Sales is about volume—make a lot of calls and see a

lot of people. 6. Knock on old doors.7. Consult, don’t sell. 8. Develop the art of listening.9. Believe in what you’re selling and believe in yourself.10. Close the sale: Ask customers what they want.

Sales Inventory: Ticket Inventory

• Season ticket equivalencies 50%• Advance ticket sales 25%• Group sales 20%• Day-of-game/Walk-up sales 5% • Club seats, luxury seats complete with catered

food service, private seat licenses (PSLs), and VIP parking, among others

Sales Inventory: Advertising Inventory• Electronic advertising inventory includes

television, radio, and team Web sites• Some teams have brought their television and/or

radio rights in-house • Team bears the production costs of its broadcasts

but has the opportunity to retain all of the advertising sales

• Print inventory: In-game programs, media guides and newsletters, ticket backs, ticket envelopes, scorecards/roster sheets, and team faxes

Sales Inventory: Naming Rights

• Opportunity to sell entitlement of arena or stadium, practice facility, or the team itself

• New phenomenon resulting in a significant new revenue stream for sport organizations

• Includes clauses designed to ensure that sport organizations get back for free their ability to sell their facility’s name if the purchasing company becomes insolvent

Sales Inventory: Online Inventory

• Team and league websites provide attractive platforms for sponsors

• Banner ads, blogs, instant messaging applications, pop-up ads

Sales Inventory: Miscellaneous Rights

• Promotions – giveaway items, on/off field or floor experiences

• Community – school assemblies, camps, clinics, etc.• Includes fantasy camps, off-season cruises with

players, and road trips• Have become increasingly creative in developing

new inventory, thus generating new revenue streams by selling companies the opportunity to associate with their sanctioned events

Sales Inventory: Sponsorships• The sponsorship sales process requires a great deal

of up-front research, creativity, sales acumen, and patience.

• Sponsorships often entail a much larger emotional and financial commitment on the part of the potential customer.

• Process of selling sponsorship packages must allow the company sufficient lead time.