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COLLEGE AND AMATEUR SPORTS
Marketing College AthleticsEconomic Impact of College AthleticsAmateur Sports
Effects of Collegiate SportsA winning team has economic
implications for school, community, region, and state
Fan expectationPromotion of organization’s
goods and services
FBS RevenueRank
School Total Revenue
1 Texas $95,749,684
2 Penn State $72,747,734
3 Georgia $74,888,175
4 LSU $68,510,141
5 Michigan $70,300,676
2010 - 2011
Rules & Rankings National Collegiate Athletic
Association (NCAA) is the governing body of most college and university athletic programs
NCAA creates guidelines for recruitment, gender equity, scholarships, gambling prohibitions, and many ethical issues
The overall goal is the promotion of college athletics with a focus on the integrity of the athletes and their game
Joining the NCAA
Must meet the following conditions: Obtain accreditation by the recognized
accrediting agency of its region Offer at least four intercollegiate sports
for men and four for women (one in each of the three traditional seasons)
Complies with all NCAA rules Cooperates with the NCAA enforcement
program and accepts penalties imposed by that program
NCAA as a Sponsor Magnet The NCAA attracts sponsors that
support intercollegiate athletics financially and provide business and personnel expertise
These advertising dollars support the NCAA Championship, as well as allow expansion of NCAA programs for young people
College Team RankingsRankings are based on past team performance,
wins against ranked teams, losses against unranked teams and personal preference.
Why so much emphasis? Early exposure promotes a team A highly ranked team builds excitement and
strong attendance at games (which creates fan loyalty and national respect)
Preseason rankings influence major television networks (more revenue for the team and its university)
BCS Bowl Background Bowl games make $260 million in annual payouts to NCAA schools. More than $1.8
billion has been paid out in just the past 10 years and the bowls will conservatively pay out more than $2.6 billion during the next decade.
Most bowl games are nonprofit organizations. The more revenue the bowl brings in through ticket sales and sponsors, for example, the more money can be paid to NCAA schools.
Bowl games generate increased donations, valuable visibility and even increases in school enrollment applications. In addition, they also can increase long-term revenues in licensing, endorsement money, TV contracts and season-ticket sales.
Bowl games generate an estimated $1.285 billion in economic impact for host communities each year.
#1 Has Lingering Effects A national championship brings
favorable national recognition and increased potential for recruitment of top high school athletes
Retailers carrying national championship sportswear will experience tremendous growth in sales
Market Segmentation Market segment is a group of individuals
within a larger market that share one or more characteristics
Divides the marketplace into smaller interest groups
Market Segmentation
Geographic segmentation divides markets into physical locations, such as
eastern, northern, southern, and western regions of the United States or the urban and rural areas of a state Example: US, South, Texas, Austin, 78738
Market Segmentation
Demographic segmentation focuses on information that can be measured,
such as income, profession, gender, and educationExample: males, $50,000+ income, college
educated
Psychographics focus on characteristics that cannot be
measured, such as attitudes and lifestyle choices. Consumers frequently make decisions based on emotions. Example: sports fans spend more money on
clothing with a teams logo right after the team has a big victory
Product usage reflects what products you use, how often, and why. Example: How often you eat pizza.
Benefits derived are the value people believe they receive from the product or service.
Marketing-Information Management takes into consideration the elements of market segmentation to improve business decision making.
ECONOMIC IMPACT OF COLLEGE ATHLETICS Winning college teams=money for the
community and media attention year-round
Cities with college sport teams must have shopping areas, hotels, restaurants, and other tourist attractions
Licensing License—the legal right to reproduce a team’s logo
in exchange for payment (known as a royalty) Protect the use of the name and symbols Identify and associate logos
In 1997, there were 2,000 licenses worth $2.5 billion
Items licensed include: clothing, posters, sunglasses, video games and photographs
Rank
School Rank
School
1 Texas 6 Georgia
2 Alabama 7 Michigan
3 Florida 8 Kentucky
4 LSU 9 Penn State
5 North Carolina 10 Oklahoma
2010 - 2011
Popularity of Amateur Sports Professional athlete is someone who
earns a living participating in a sport
Amateur athlete is someone who does not get paid but plays for the enjoyment, challenge, or both
There are millions of amateurs, which marketers see as millions of consumers
Marketing and Sponsoring Amateur Sports
Provides significant income for manufacturers (uniforms, shoes, equipment, etc.)
Minivan and sport utility vehicle
Retro sports jerseys
Local Promotion of Amateur Sports
Local business support amateur sports because:
Promotion is good for the local team (many times a high school team)
Image of being an active participant in the community
People that attend the event will frequently shop with businesses that advertise in the sports program
Economic BenefitsIn 1987, the Minnesota State Legislature created Minnesota Amateur Sports Commission. The goals are:
To create economic development through amateur sports
Create the maximum opportunity for sport participation for all Minnesotans
To establish Minnesota as a national model for the Olympic and amateur sport movement
Generates over $70 million of direct economic impact to Minnesota communities