Sport Marketing Quarterly, The Four Domains of Sports ... strategies. A comprehensive review of recently published sports marketing textbooks reveals inconsis-tencies in the definitions

Sport Marketing Quarterly, 2008,17, 90-108, © 2008 West Virginia University

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The Four Domains of Sports Marketing:A Conceptual FrameworkSam Fullerton and G. Russell Merz

Abstract

Despite its acknowledged contribution to local, nation-al, and global economies, there is no consensus as toexactly what is meant by the term sports marketing.This conceptual paper attempts to address this defi-ciency via the development of a new framework that isbased upon two key dimensions: type of product andlevel of sports integration. By categorizing goods andservices as either sports products or nonsports prod-ucts and by differentiating between traditional strate-gies and sponsorship-based strategies, four sportsmarketing domains are identified. They are the theme-based, product-based, alignment-based, and sports-based strategic domains. The underlying principles fordeveloping the framework are delineated in this article,and many examples for each strategic domain are pro-vided as a means of illustrating their conceptual differ-ences and how they are implemented.

Introduction to Sports Marketing

The concept of "sports marketing" is ambiguous in itsmeaning for both practitioners and academicians.Discussions about its application in the popular pressand in many textbooks include categories ranging fromtickets to spectator sports to sport-related wagers inlegal gambling establishments (Shannon, 1999). Sometend to take a narrow view about what the discipline ofsports marketing encompasses. To them, the primarytask is one of selling tickets and putting fans in theseats at organized sports events (Sports MarketingSurveys, 2002), thereby equating the sports product totickets for spectator sports. This definition, broadlyapplied, may include the sale of tickets for minor

Sam Fullerton, PhD, is a professor of marketing atEastern Michigan University. His research interestsinclude business ethics, sponsorship, and fan behavior.

G. Russell Merz, PhD, is a professor of marketing atEastern Michigan University. His research centers on theuse of modeling in the areas of branding and customersatisfaction.

"In order to fully appreciate and understand thedynamics and differing perspectives of sports mar-keting, it is imperative that the task of marketing

through sports also he accepted as an integral com-ponent of the industry."

events such as high school sports and minor league icehockey, but the prevailing thinking focuses on majorsports properties such as an NCAA Division I-A (FBS)college football game, a NASCAR event, the SuperBowl, and the Olympics. Undoubtedly, this perspectivereflects the vast marketing expenditures for thesemajor properties.

With the 2008 Summer Olympics fast approaching,Du Wei, the Vice Chairman of the Institute of BeijingOlympic Economy, recently stated in comments direct-ed to Chinese companies that "sports marketing hasbecome one of the most effective of all marketingstrategies" (Anonymous, 2006). However, Wei was notnarrowly referring to the tasks associated with the sell-ing of tickets to Olympic events. Rather he was using abroader definition by suggesting that marketers of non-sports products can benefit by becoming more involvedwith the 2008 Olympic Games. But since these firms arenot selling sports products, how are their actions char-acterized as sports marketing? In order to fully appreci-ate and understand the dynamics and differingperspectives of sports marketing, it is imperative thatthe task of marketing through sports also be accepted asan integral component of the industry. Coca-Cola hasbeen associated with the Olympic Cames since 1928;however, this relationship was not focused on demandcreation for one of the world's premier sporting events.Clearly, it focused on the sale of Coca-Cola products.Many marketers use a sports platform as the basis forappeals to consumers across a vast array of products,the majority of which have little or nothing to do withsports. The marketing through sports component ofsports marketing tends to be overlooked by some texts(Pitts & Stotlar, 1996). This is unfortunate because it isin this domain where many marketing practitioners areemployed and use their skills to implement sports mar-

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keting strategies. A comprehensive review of recentlypublished sports marketing textbooks reveals inconsis-tencies in the definitions of sports marketing (VanHeerden, 2001). This conceptual weakness illustratesthe need for including both the marketing of sports andmarketing through sports in a broader sports marketingplatform that encompasses the entire realm of sportsmarketing practice. It is the purpose of this article topropose a broadened framework built upon this con-ceptual dichotomy.

A "Veritable Plethora'" of DefinitionsExactly what does the practice of sports marketingencompass? In other words, how can we define sportsmarketing? The reality is that there exists a veritableplethora of definitions of sports marketing. In fact,some spokespersons seek to differentiate between"sport" marketing and "sports" marketing. Much likeany other business concept, the realm of sport(s) mar-keting has continued to evolve while encompassing abroader array of business activities. The disparity clear-ly indicates a need to re-conceptualize the construct.Consider the following definitions.

The genesis of the term "sport marketing" can beattributed to a story in a 1978 issue of Advertising Age.In that venerable publication, sport marketing wascharacterized as "the activities of consumer and indus-trial product and service marketers who are increasing-ly using sport as a promotional vehicle" (Gray &McEvoy, 2005). In their recent contribution to a com-pilation of sports marketing literature. Gray andMcEvoy noted that this set of activities is best charac-terized as "marketing through sport; that is using sportas a promotional vehicle or sponsorship platform forcompanies that market consumer, and to a lesserextent, industrial products" (p. 229). Gray and McEvoyfurther noted a perceived shortcoming of that defini-tion by calling attention to the absence of any referenceto the "marketing o/sport." The implication is thatthere is a second major dimension of sports marketing,one entailing "the application of marketing principlesand processes to market goods and services directly tosports participants and spectators" (p. 229). The amal-gamation of marketing through sport and the marketingof sport provided the foundation for Gray andMcEvoy's broad-based definition: "the anticipation,management, and satisfaction of consumers' wants andneeds through the application of marketing principlesand practices" (p. 229). Presumably, this definitionencompasses both major dimensions. Some organiza-tions market sport products to a targeted set of con-sumers, while others market an array of nonsportsproducts to market segments that have a "personal

investment" in sports entities such as athletes, events,and teams (Merz & Fullerton, 2005).

Similarly, Mullin, Hardy, and Sutton (2000) charac-terize sports marketing in a way that encompasseseither dimension, or thrusts, as they describe them.Their resultant definition is based on the premise that

"sport marketing consists of all activitiesdesigned to meet the needs and wants of sportsconsumers through exchange processes. Sportmarketing has developed two major thrusts: themarketing of sport products and services directlyto consumers of sport, and the marketing of otherconsumer and industrial products or servicesthrough the use of sports promotions." (p. 9)This definition was subsequently embraced in a con-

tribution by Gladden and Sutton (2005) in the textedited by Masteralexis, Barr, and Hums (2005). Yetreaders may question the concept of "sports promo-tions." Exactly what actions comprise this activity? Is itlimited to sponsorship or would an advertisement fea-turing a generic sports theme fit within this thrust ofsport marketing? A second question concerns theexclusive province of sport promotion. Can strategicinitiatives other than promotion be used to create asports overlay that would fit within the realm of mar-keting through sports?

"Clearly, the marketing of sports products can beimpacted in a positive manner via the incorpora-

tion of the sponsorship of a recognizable sportsproperty within an integrated marketing commu-

nications strategy."

Questions such as these were addressed by Blann andArmstrong (2003) when they articulated the point thatthe term sport marketing has been used in many con-texts, thereby leading to confusion as to exactly whatthe term really means. Not only do they incorporateboth dimensions, but they also expand one of the earli-er perspectives by stating that marketing throughsports encompasses far more than just advertising andpublic relations.

Schlossberg's (1996) early book on sports marketingdid not specifically define the concept; however, itfocused on the efforts of marketers who use sports as amarketing platform for nonsports products. Morespecifically, Schlossberg states that "sports has becomea marketing medium in and of itself with the ability totarget, segment, promote, and cast products and serv-ices in heroic lights. More and more companies you'dnever think of being remotely attached to sports areusing sports to enhance and embellish their market-ing" (p. 6). In describing the efforts of companies such

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as Coca-Cola and Visa, Schlossberg's reference seemsto be directed toward sponsorship activities.

With their focus on sports products, Pitts and Stotlar(1996) offer a different perspective of the practice ofsport marketing. In their text, sport marketing isdefined as "the process of designing and implementingactivities for the production, pricing, promotion, anddistribution of sport product to satisfy the needs ordesires of consumers and to achieve the company'sobjectives" (p. 80). This definition was reiterated inStotlar's (2001) later book that delineated the processof developing "successful sport marketing plans." Ofnote is the inclusion of pricing, distribution, and pro-motion—three traditional elements of the marketingmix. This inclusion represents a meaningful extensionof the assertion by Gladden and Sutton (2005) thatsport marketing was based solely upon promotionalefforts by the marketer.

Similarly, while stating that "sports marketing doesnot have a single, consistent definition," Moore andTeel (1994) offer a definition that focuses on the mar-keting of sports products as a basis for the generationof revenue for sports entities while developing market-ing plans that will lead to the maximization of rev-enues accruing to the sports entity. Yet they stillincorporate marketing through sports by referring tosports entities such as athletes, teams, and programs inthe firm's marketing plan. Sponsorships such asLenovo's involvement in "the Olympic Partner (TOP)"program for the cycle that included the 2006 WinterOlympics in Torino and the 2008 Summer Games inBeijing would fit within the parameters of their defini-tion of sports marketing. Their early work offers a for-ward-looking perspective via their assessment that"attention to marketing tools is long overdue" in themarketing of sports products.

This brings us to two of the most recent entries intothe sports marketing textbook arena. Shank (2005)defines sports marketing as the "specific application ofmarketing principles and processes to sports productsand to the marketing of nonsports products throughassociation with sports" (p. 3). Finally, Fullerton(2007) provides no specific definition of the term, yetthe book is divided into the two aforementioneddimensions: marketing through sports and the market-ing of sports.

Purpose of the PaperWhile there continues to be no single, universal defini-tion of the concept of sports marketing, one key con-sideration is evident. As articulated earlier, the practiceof sports marketing is generally recognized as consistingof two fundamental thrusts. However, while recogni-tion of this dichotomy in sports marketing practice is a

necessary part of conceptualizing a sports marketingframework, it is insufficient for clearly distinguishingamong the multitudes of sports marketing practicesthat exist today. It is the objective of this article torefine and extend this dichotomy into more detailedconstituent components based on actual sports market-ing activities in the environment. The authors adopt agrounded theory building approach (Glaser & Strauss,1967) based upon numerous observations of actualsports marketing activities to develop a preliminaryconceptualization of the field of sports marketing^ Theresulting framework provides a more comprehensiveclassification of sports marketing practices than hasheretofore been advocated, and is suggestive of sportsmarketing decision-making guidelines. In the remain-der of this article two important distinctions thatunderlie sports marketing practices are identified anddiscussed. These two distinctions are then combined toform a new sports marketing framework consisting offour categories of sports marketing domains. The arti-cle provides support for the framework by discussingand illustrating each domain with examples of actualsports marketing activities.

Identifying Domains within the SportsMarketing EnvironmentTwo important product-related aspects of the sportsmarketing environment are noteworthy. First is thestrategic focus aimed at the marketing of pure sportsproducts. Less evident is the marketing of nonsportsproducts while using a sports platform as the founda-tion of the firm's marketing efforts. Therefore, twoprominent initiatives in sports marketing are identi-fied. They are the marketing of sports products, and themarketing of nonsports products through sports. Someuniversities offering sports marketing programs haveopted to offer courses using this nomenclature. This isparticularly evident when the program is offeredthrough a business or management school. However,even with the acknowledgement of these two broadinitiatives, the question of exactly what constitutes asports product still begs to be answered.

Sports Products versus Nonsports ProductsIn developing a model that depicts the sports market-ing environment, an essential distinction is the differ-ence between sports products and nonsports products.Making this distinction is not as simple as it maysound. The following overview is provided in an effortto clarify the difference.

Sports ProductsSports products have been described in many studies.In fact, an early article that sought to estimate the gross

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domestic sports product (GDSP) in the United Stateswent so far as to include agent services, sports law serv-ices, golf course construction, and pari-mutuel bettingreceipts (Meek, 1997). While some readers may agreewith the breadth of this eclectic array, others will viewit as having no real focus. The latter view is shared bythe authors of this article. For the purpose of describ-ing the sports marketing environment, three categoriesof sports products have been identified. They are spec-tator sports, participation sports, and a third eclecticcategory that is comprised of sporting goods, apparel,athletic shoes, and sports-related products.

(1) Spectator SportsFrom college sports, to minor league sports, to thehighest level of professional sports, and for internation-al events such as the Olympics, one key marketingobjective is that of selling tickets. Yet, it is not onlythose who purchase tickets to a game or event who areimportant; sports marketers also work to increase view-ership and listenership on a variety of broadcast media.This includes television options such as free-to-air TV,premium cable and satellite networks, pay-per-view forspecial events, enhanced access to a sport's broadcasts(such as DIRECTV'S NFL Sunday Ticket), and devotednetworks such as the Rugby Channel and the GolfChannel that are dedicated to an array of programminggermane to a single sport. Other media include tradi-tional radio, satellite radio, audio/video streaming onthe Internet, and an emerging emphasis on mobiletechnology such as the cellular phone and podcasts.

With this in mind, the spectator sports product canbe viewed from two perspectives. First is the sale ofaccess to events; that access may legitimately be viewedas the product. Second is the reality that access has novalue without the competition on the field of play.Thus, whether audiences are live or media-based, it isthe game or event that represents the product in thespectator sports market.

(2) Participation SportsThe category of participation sports rightfully includesan array of activities that might not normally be per-ceived as sports. While organized soccer leagues, golf,and tennis are recognized as participation sports, otheractivities that are done on an individual basis are notalways acknowledged as sports. The absence of compe-tition that identifies a winner and loser may be thebasis for this reluctance. Individuals who jog aroundthe neighborhood or who lift free weights at home orat the health club are not typically characterized as ath-letes. There is yet another tier of activities that repre-sent participation and competition although only themost liberal definition would permit them to be classi-

fied as sports. The most recent addition to this catego-ry is poker; even sports networks such as Fox Sportsand ESPN have begun to broadcast "Texas hold'em"poker tournaments. Other activities such as darts, fish-ing, competitive eating, and billiards are also notewor-thy from a participation perspective.

In many cases, marketing's role is to increase thenumber of participants and the frequency of participa-tion in a specific activity. For example, golf courseswant to attract new golfers while at the same timeinducing current golfers to play even more. The pri-mary benefit to these sports marketers is that increasedparticipation keeps facilities such as golf courses, tennisclubs, swimming pools, and health clubs busy. A sec-ondary benefit is that it creates demand for moresports equipment and apparel. This leads us to thethird and final category of sports products.

(3) Sporting Goods, Apparel, Athletic Shoes, and Sports-Related ProductsThe final category of sports products is somewhatmore difficult to define. While sporting goods such assnowboards, apparel such as skiwear, and athleticshoes such as a pair of "Air Jordans" are easy to under-stand, the final component, sports-related products, isvery diverse. It includes sports souvenirs, publications,lessons, and a diverse assortment of products that canbe purchased at event venues.

Sporting goods include tangible products specific to aparticipation sport or activity. These products may besold to casual participants as well as those who takepart in organized activities. The 55 million Americanswho participate in bowling (Anonymous, 2003c) createa demand for bowling equipment. Golfers throughout

"In developing a model that depicts the sportsmarketing environment, an essential distinction isthe difference hetween sports products and non-

sports products."

the world have fueled a tremendous increase in the saleof clubs, balls, bags, and gloves on a global basis.

Apparel is clothing that falls into one of two cate-gories. First and foremost, it may be purchased to facil-itate participation. The annual start of a new season formany sports creates demand for new uniforms. Stylechanges may induce golfers to abandon last year'sclothing in favor of new styles so that they look goodon the golf course. The second category is based on theacknowledgement that sports apparel can be fashion-able within certain market segments. These buyers maybe fans who wear clothing that features the logos ofteams that they support. Others may buy the same

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apparel, not because they support the team, butbecause the clothing is in vogue among their peers.

The third component of this category is athleticshoes. While these were once primarily devoted to theparticipant market, this has changed significantly sincethe advent of Nike's Air Jordan shoes. Today, athleticshoes are an integral part of almost everyone'swardrobe. For participants, there are designs that aredeemed appropriate for specific activities such as rack-et sports, basketball, running, walking, and cross train-ing. No longer are athletic shoes combined into thegeneric category of tennis shoes.

The final component consists of a broad array ofsports-related products. These include souvenirs thatmay be purchased at event venues as well as a numberof other official retailers. Consumers often purchasesports magazines. These may feature sports in general,but many focus on a single sport or even a specificteam. Lessons to improve one's skill at sports like ten-nis or golf fit best within this category as well. But thebroadest set of products in this category is comprisedof venue-specific products. While these products arenot tied to a sport per se, they are purchased by specta-tors in attendance. So, while we might be reluctant toclassify beer as a sports product, the reality is that itrepresents an important revenue stream for teams andstadium operators.

Nonsports ProductsIn contrast to the various sports products, marketers ofnonsports products have used sports platforms orthemes as part of their marketing strategy as well.Examples of nonsports products that have used sports

platforms include automobiles, medical services, fastfood, consumer electronics, and beverages such asmilk, water, and colas. Yet, even this group of productshas some grey areas. When beer or fast food is sold at asports venue, is it a sports product or not?

The above discussion (see Table 1) summarizes thearray of products that are sold within some domain ofthe sports marketing industry. Sports marketers mustunderstand which products are important to their tar-get markets and develop a strategy that meets thoseneeds. Furthermore, the product strategy must be con-sistent with the other elements of the marketing mix.Only then can the sports marketer take full advantageof the opportunities that exist.

Level of Integration: Traditional versusSponsorship-Based StrategiesIn addressing the marketing of products throughsports, the degree of integration with the sport is thesecond key consideration. Here the choices are broadbut can be classified into two categories—traditionaland sponsorship-based.

Traditional IntegrationThe first category represents the use of sport as part ofthe marketing program and typically involves the basiccomponents of a marketing strategy: a target marketand a corresponding marketing mix. As such, thesestrategies involve no official relationship with a sportsentity such as a league, team, or player. Using a tradi-tional marketing strategy, the marketer identifies targetmarkets and develops corresponding product, distribu-tion, pricing, and promotion strategies that are

Tabie i.Products Sold by Sports MarHeters

Sports ProductsSpectator Sports Products

• The game or event itselfTickets for attendanceViewership and listenership on electronic media

Participation Sports Products• Organized participation (leagues & tournaments)• Casual participation• Access to public and private athletic facilities

Sporting Goods, Apparel, Athletic Shoes, & Sports-Related Products• Sports equipment (skis, golf clubs, & soccer balls)• Sports apparel (hunting clothing, swimwear, & team uniforms)• Athletic shoes• Sports-related products (souvenirs, lessons, & refreshments)

Nonsports ProductsGoods and services not directly related to a sport


designed to appeal to those target markets. A tradition-al strategy using a sports overlay may simply involve anadvertisement that features actors or models playing asport, it may involve the placement of an ad in a sportspublication that reaches the same target market, or itmay utilize graphics on the packaging that feature asports setting. Each component of the marketing strat-egy can be integrated within the marketer's effort toincorporate a sports theme.

Sponsorship IntegrationIn contrast to the traditional approach for integratingsport into the marketing of products, sponsorshipinvolves an array of activities whereby the marketerattempts to capitalize on an official relationship withan event, a team, a player, or some other sports organi-zation such as the NCAA, the IOC, or FIFA. One arti-cle recently referred to sponsorship as having a "fairlyloose meaning in sport" (p. 24). In other words, theconcept goes beyond the traditional sponsorshiparrangement that most readily comes to mind (Felt,2003). But it is essential to understand that a sponsor-ship involves two entities, the sponsor and the sponsee.

The most readily acknowledged sponsorship can becharacterized as the traditional sponsorship. The tradi-tional sponsorship generally involves the acknowledge-ment of the sponsor by the sports property and theability of the sponsor to use the property's trademarksand logos in its efforts to leverage the sponsorship andreinforce the relationship in the minds of members ofthe sponsor's target market. During the 2006 post-sea-son games in MLB, each sponsor was recognized witha display on the Scoreboard and through virtual adver-tising for those watching on TV. The traditional spon-sorship can involve title rights; for example theAccenture Match Play Championship leaves no doubtas to whom the primary sponsor is. In a somewhatmore subtle implementation, a marketer might be rec-ognized as the presenting sponsor. Two noteworthyexamples are "the Rose Bowl Presented by Citi" and"Chicago Bears Football Presented by US Bank." Inaddition to these approaches for the implementationof a traditional sponsorship, three special cases ofsponsorship are used by today's marketers. Theseinclude (1) venue naming rights, (2) endorsements,and (3) licensing. Some readers might question thedesignation of these three strategies as being sponsor-ship-based. However, the following review ofthe liter-ature finds ample support for this premise.

Venue naming rights have often been characterizedas building sponsorships. The Edmonton Oilers playtheir home games in the Skyreach Centre. In a recentarticle, the relationship between the team and the mar-keter (Skyreach Equipment, Ltd.) was specifically char-

acterized as a "building sponsorship" (Zoltak, 1998, p.1). A more recent article in Brandweek referred to"building sponsors" and the evolution of that type ofstrategy over the past few years (Green, 2002). Eventhe venerable publication. Advertising Age, concurswith this characterization. In its review of stadiumnaming rights, it noted that there are "more than 50corporations involved in major sponsorships of U.S.sports facilities" (Lippe, 2002). Similarly, theInternational Events Group (IEG) referred to venuenaming rights as "title sponsorship deals" (Ukman,2002). A.C. Nielsen recently added a service called"Sponsorship Scorecard" with the express purpose ofdeveloping a better understanding of "the value thatsponsors receive from stadium naming rights"(Anonymous, 2004a). The important conclusion thatcan now be drawn is that venue naming rights do rep-resent a special form of sponsorship. Therefore, whenPepsi-Cola paid to have its name attached to a sportsfacility in Denver, it was reasonable to presume thatthe company was implementing a sponsorship-basedstrategy to sell its nonsports products through sports.

Endorsements have been referred to as "personal (orpersonality) sponsorships" (Anonymous, 2003a, p. 70).Furthermore, when referring to endorsement opportu-nities for the NHL's first selection in the 2005 draft,Sidney Crosby, one Canadian publication stated thatthese personal "sponsorships could prove huge forCrosby's pocketbook" (Anonymous, 2005, p. 14).Another publication referred to Tiger Woods' signifi-cant earnings from "sponsor endorsements" (Kedrosky,2005, p. 17). David Beckham is perhaps the mostfamous soccer player in the world, and his endorsementpower is staggering. The Economist magazine speciallyreferred to his deals with Pepsi and adidas as personalsponsorships (Anonymous, 2003a). Additional anecdotalsupport for the premise that endorsement deals fallwithin the realm of the sponsorship environment canbe found on the SportBusiness International website.Nike's signing of LPGA golfer Grace Park was touted asa sponsorship deal (Barrand, 2003a), and in a separateposting, SportBusiness International referred to YaoMing's endorsement of Pepsi-Cola as a "sponsorshipagreement" (Barrand, 2003b). It should now be evidentthat the general consensus within the sports marketingindustry is that endorsements are indeed a form ofsponsorship.

Of the three special cases, licensing may be the mostdebatable as to whether or not it represents a sponsor-ship-based strategy. Yet, there is ample support for thisassertion in the practitioner-oriented literature. Alsonoteworthy is the fact that many traditional sponsor-ship deals provide the marketer with the right to usethe sport property's logos and trademarks in its own

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marketing endeavors. One common sponsorship cate-gory is that of "official supplier." These sponsors areoften granted the right to produce and sell logo appareland a variety of other licensed products. The NHLrecently announced the signing of Reebok as its officialapparel supplier at the beginning of the 2005-06 season.A recent report out of the UK discussed "sports licens-ing" within the context of "kit sponsorships" (Barrand,2005). The report went on to state that licensing pro-vides sponsors with the opportunity to maximize thevalue of their sponsorship rights. In another examplethat ties the concept of licensing to that of sponsorship,a recent report indicated that Reebok has an arrange-ment that allows for the use of the logos of MLB's 30teams in the marketing of a special line of footwear(Anonymous, 2004b). Until 2008, Sears used a tradi-tional sponsorship with NASCAR with the specific goalof driving the sale of its Craftsman brand of tools.Beyond that relationship. Sears also sold a broad arrayof NASCAR-licensed merchandise in many of its retailstores (Anonymous, 2003b). EA Sports recently signeda seven-year contract with NASCAR providing the mar-keter with exclusive rights to use the organization'slogos in the video game market (Hein, 2003). Theimportance of this form of sponsorship was noted byFelt (2003), who observed that "Nike and Adidas nowhave intellectual property rights whose value far exceedsthat of the products through their association withleading sports teams and events." It is also noteworthythat each venue selected to host the Olympic Games isnow required to implement a new stringent set of rulesthat protect this class of sponsors. Clearly, the literaturebears witness to the co-mingling of the terms sponsorsand licensing. Given this fact, it seems reasonable toassume that licensing can be classified as a special formof sponsorship. Thus the marketer has a wide array ofoptions available when the decision to implement asponsorship-based strategy is made.

If the marketing decision maker wishes to integrate asports theme into the marketing strategy there are twochoices. The marketer either opts to use a traditionalmarketing strategy approach based on the selection oftarget markets and the development of a correspon-ding marketing mix for each target, or alternatively thedecision maker may integrate sports in a more formalmanner by employing one or more of the four spon-sorship strategies described on the preceding pages(traditional sponsorships, venue naming rights,endorsements, and licensing agreements).

Basic Principles of Sports MarketingFrom the previous discussion, three principles are rele-vant for the assessment and understanding of today'ssports marketing industry. They are

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The nature of the sports marketing focus (mar-keting of sports or marketing through sports);The nature of the product being marketed(sports or nonsports); andThe level of integration of sports within themarketing strategy (traditional or sponsorship-based).

A summary of the basic components for each area ispresented in Table 2. The latter two are used in thedevelopment of a detailed framework that extends theprevious broad approaches of "marketing throughsports" and the "marketing of sports" into a morestrategic conceptualization of the four domains ofsports marketing.

The Four Domains of Sports MarketingAs illustrated in Figure 1, the four domains that com-prise the sports marketing environment are identifiedas theme-based strategies, product-based strategies,alignment-based strategies, and sports-based strategies.An explanation and rationale for each proposeddomain, along with illustrations of actual sports mar-keting strategies, is provided in the following sections.

Theme-Based StrategiesTheme-based strategies can be defined as the use oftraditional marketing strategies that incorporate a sportstheme into the marketing program for nonsports prod-ucts. The marketer might opt to use a sports-relatedcopy platform or advertise products in sports-related

Tabie 2.rtie Basic Principles of Sports MarHetIng

Nature of Sports Marketing Focus• Marketing of Sports• Marketing through Sports

Products• Sports Products

Spectator SportsParticipation SportsSporting Goods, Apparel, Athletic

Shoes, and Sport-Related Products• Non-Sports Products

Level of Integration• Traditional

Target Market SelectionMarketing Mix Decisions

• Sponsorship-BasedTraditionalVenue Naming RightsEndorsementsLicensing

Figure 1.The Four Domains of Sports MarHeting

•MaieUngTtroughSports-

•Marteffngof Sports Marketing

Dimensions

TraditionalUse

iBSSgigflBlii)

U1

SponsorshipBased

777eme-Sased

Alignment-Based

Product-Based

Sports-Based

Sports MarketingDomains

Non-SportsRelated

SportsRelated

Strategic distinctionsin sports marketingpractices.

media to effectively reach customers. A key aspect oftheme-based strategies is that the marketer's efforts arenot predicated upon an official relationship with anyspecific sports property in its effort to create the sportsoverlay for its marketing efforts. A bank that advertisesin a sports magazine or during a TV broadcast of asports event has incorporated sports at a rudimentarylevel. As such, this domain represents the lowest levelof integration of sports within the sports marketingenvironment. There is plenty of anecdotal evidencethat illustrates how sports marketers have used theme-based approaches in the implementation of target mar-ket access, as well as product, promotion, pricing anddistribution strategies.

Implementation of a theme-based strategy may beachieved by placing advertisements in vehicles thatappeal to one or more of their sports-oriented targetmarkets. It is important to note that the advertise-ments used in this type of strategy will not necessarilyhave a sports theme. Marketers of nonsports productsoften reach different target markets by objectivelyselecting their media vehicles.

The use of a theme-based strategy is also evidencedby the incorporation of sports into the other elementsof the marketing mix. A well-conceived marketing mixwill be tailored so as to coincide with the characteris-tics of a particular target market. To accomplish this,the marketer must consider the specific initiatives thatare used in the task of defining its product, promotion,pricing, and distribution strategies. Thus the task isone of utilizing one or more of these components in

such a way so as to create a sports overlaythat will appeal to its own target markets.

Product strategies can incorporate sportsthemes as a way to provide resonance withcustomers. Sports bars use the promise oftelevised sports programming as a way tosell food and beverages; fashion labels cre-ate clothing that features a sports motifsuch as polo or golf; and credit card mar-keters may provide access to member-onlysporting events as part of their productoffering. Most marketers accept the premisethat packaging represents part of the prod-uct strategy, so packaging will frequentlyfeature a sports design or motif

It is common that sports overlays areincorporated into promotional efforts for avariety of nonsports products. For example,tie-ins with sports event through the use ofhospitality tents at the event; TV advertise-ments that feature kids being treated to atrip to a favorite fast-food restaurant after

winning their game; and commercials suggesting thatviewers get more enjoyment from watching televisedsports when they watch it on a particular brand of highdefinition TV all illustrate the use of a theme-basedapproach.

Technology has also increased the tie-in capabilitiesof theme-based marketers. Virtual advertising technol-ogy can be used to place computer-generated signageat strategic locations during the broadcast of a sportsevent. During the recent Major League Baseball post-season games, TV viewers were exposed to a sign for anew Gillette razor whereas the fans in the stands sim-ply saw a blank green surface. An advantage of virtualsignage is that it can be changed during the broadcast.The Gillette sign that TV viewers first saw became asign for State Farm Insurance later in the broadcast. Itcan also be used to display different signage to viewersin different geographic markets.

In each of the aforementioned examples, the intentwas not to sell a sports product; rather it was to sell amarketer's nonsports offering. The list of theme-basedefforts that feature a sports overlay through promotionis almost endless—no doubt a testament to the popu-larity and perhaps the effectiveness of this type ofstrategic initiative.

Strategies involving the pricing variable and a sportsoverlay are a bit more difficult to implement. However,one common strategy is for casual restaurants and barsto offer discounts to patrons who are wearing their uni-forms from a participation sport such as softball.Another similar strategy is for hotels, restaurants, andbars to offer reduced prices for patrons holding a ticket

Volume 17 • Number 2 • 2008 • Sport MarHeting Quarterly 97

to a particular sports event. By coupling this actionwith effective promotion, the marketers are able to cre-ate the sports overlay that can be used to appeal to oneor more meaningful target markets.

The fmal element ofthe marketing mix is the distri-bution (or place) strategy. The food service industryhas been effective and profitable by virtue of its abilityto achieve a distribution point at a number of sportsvenues across the globe. One ofthe more notableefforts of this type involves the presence of a HardRock Cafe at the Rogers Centre in Toronto, Canada.Similarly, there is a Big Boy Restaurant located insideDetroit's Comerica Park. Not all of these providers arereadily recognizable retailers. For example. LevyRestaurants are present at many sports venues acrossthe United States; however, the Levy brand is notemphasized. Marketers of alcoholic beverages have alsosought to have their products available at sports ven-ues. In an interesting distribution strategy, FedExnegotiated for the right to have a temporary shippingpoint located on the Oakland Hills Golf Course duringthe 2004 Ryder Cup. The strategy provided conven-ience for the spectators who bought souvenirs as wellas incremental revenue for FedEx. Finally, marketerswill consider the geographic aspects of their distribu-tion strategy. Budweiser's distribution of 8-packs ofbeer (in recognition of Dale Earnhardt, Jr. when hewas still driving the number 8 car) was initially con-fined to major NASCAR hotbeds such as Charlotte,Darlington, and Atlanta.

Table 3 summarizes the array of examples delineatedin this section on theme-based strategies. It is impor-tant to remember that the intent of a theme-basedstrategy is to use traditional elements of a marketingstrategy to create a sports overlay in an effort to sellnonsports products; it is not based upon any type ofsponsorship relationship between the marketer andany sports entity. It is also important to note that thefive elements of marketing strategy are not mutuallyexclusive; rather they are integrated in such a way so asto create a synergistic effect. Thus the question is notwhich element to use; instead, it is how can the firmdevelop and integrate target marketing, product, pro-motion, pricing, and distribution strategies so as tocapitalize on the opportunities presented by the sportsenvironment while simultaneously avoiding the highfees associated with an actual sponsorship. In answer-ing this question, it is important to note that manyfirms have adopted strategies that are referred to asambush marketing. These efforts involve a non-spon-sor developing a strategy that creates the false impres-sion that it is an official sponsor of some sportsproperty. Ambushing has become more common asthe rights fees for premier properties have continued to

escalate. Companies such as Wendy's Hamburgers,American Express, Pepsi-Cola, and Telecom NewZealand have been noted over the years for their effec-tive use of ambush marketing initiatives.

"The list of theme-based efforts that feature asports overlay through promotion is almost end-less—no doubt a testament to the popularity andperhaps the effectiveness of this type of strategic

initiative.

Product-Based StrategiesEfforts to market sports products using traditional mar-keting strategies when the marketer has no official rela-tionship with the sports entity being used in itsmarketing efforts are classified as product-based strate-gies. These strategies may or may not involve a sportstheme beyond the product offering. Consider the mar-keter of athletic shoes who drops prices and providesincentives for the retailers. It is apparent that thesespecific strategic decisions are independent from thesports environment; however, since the product issports-related, the strategy still falls within the realm ofsports marketing. Within this product-based domain,it is logical for the marketer to implement strategiesthat incorporate sports themes. It is also important tounderstand that such strategies are not achieved solelyby virtue of a marketer's promotional efforts.

The NHL changed its rules at the beginning ofthe2005-06 season in an effort to make the game moreappealing. This effort does not represent a sponsorship-based strategy because it fails to meet the litmus test ofhaving a sponsor and a sponsee involved in an integrat-ed marketing endeavor. A second example is the sport-ing goods retailer who chooses to give away free caps ata baseball game in an effort to create awareness of itsbrand. If this strategy is the result of the retailer provid-ing compensation for the right to distribute the capsand not on the basis of an official sponsorship, then itcan be classified as a product-based strategy. Clearly,there are varying levels of involvement of sports forstrategies within the product-based domain. Sinceefforts within this domain are implemented using thetraditional elements ofthe marketing mix, it is worthreiterating the point that traditional strategies involvethe selection ofthe target market and the developmentof a corresponding marketing mix. So the questionbecomes one of how a marketer of sports products canuse its target marketing, product, promotion, pricing,and distribution strategies to influence purchase behav-ior. How can they get consumers to purchase more oftheir sports products?


Tabie3.Overview of Theme-Based Strategies (Traditional Strategies for Nonsports Products)

Target MarketingBudweiser Using Sports Media to Reach Consumers (Super Bowl; Sports Illustrated)Cadillac Using Golf Magazine to Reach Upscale SegmentCadillac Appealing to Target Market Based on Ability to Fit Four Sets of Clubs in the Trunk

ProductSports Bars Feature Sports TV Programming as Part of their Product AssortmentClothing Featuring a Sports Motif (Men's Underwear and Tie Featuring Golf Graphics)Kodak Film Packaging Featuring Generic Sports ImagesM&M Packaging Featuring Checkered Flag Graphic and Racing Team LabelingCrunch 'n Munch Packaging Featuring a Young Boy Playing BasketballTag Heuer's Invitational Golf Tournament for Buyers of an Expensive Model of Its WatchVisa Signature Credit Card Providing Access to Exclusive Properties (Pebble Beach GC)

PromotionDetroit Newspaper's Hospitality Facility at Ryder Cup CompetitionMcDonald's Advertisement Featuring Kids After Winning a Sports CompetitionSony Advertisement - You Can Enjoy Sports More on a Sony High Definition TVNew Zealand Radio Station - 99 FM - "Breakfast with Balls" ThemePanasonic Laptop Computers and Football - Toughness and PerformanceGillette and State Farm Insurance Using Virtual Advertising during MLB BroadcastsKraft's Game Day Cake Recipe during Time Period Preceding the Super BowlAmbush Marketing (Wendy's, American Express, Pepsi-Cola, and Telecom New Zealand)

PricingBars Offering Discounts to Recreational Sports Participants (softball players)Hospitality Industry Offering Discounts to Ticket Holders of Select Sports Events

DistributionHard Rock Caf6 at Rogers Centre in TorontoBig Boy Restaurant at Detroit's Comerica ParkLevy Restaurants at Sports Venues (Wrigley Field, Comerica Park)Alcoholic Beverages at Sports Venues (Mike's, Cuervo, & Bass Ale)FedEx at Ryder Cup Venue (Oakland Hills)Budweiser Distribution in NASCAR Geographic Markets (i.e., Darlington)

The assessment of the product-based strategies controversial target marketing strategy, the WNBA'sbegins with descriptions of how marketers of sports Los Angeles Sparks made an overt effort to target theproducts use traditional strategic initiatives in their gay and lesbian segment and supported that initiativeefforts to appeal to designated target markets. As an by staging a pep rally at an area bar that is frequentedexample of an effort on the part of one marketer of by gay and lesbian consumers. Less controversial insports products to reach a key target market, consider nature, MLB has targeted the Hispanic segment whilean ad that was placed by the PGA for its "Tour the NBA has tried to capitalize on the emergence ofPartners" club in Golf for Women magazine. It is Yao Ming by targeting the Chinese-speaking segmentimportant to note that while the PGA used another ofthe sports market. Many sports organizations havesports entity (in this case, a sports magazine) to reach a implemented relationship marketing programskey target market (female golfers), that is not a condi- designed to appeal to their most avid fans; one exam-tion of this domain. For instance, had the advertise- pie is the Real Madrid soccer team that featured Davidment been placed in USA Today or BusinessWeek Beckham. In the aftermath ofthe 2006 World Baseballmagazine, the effort would have still qualified as a Classic, MLB decided to nurture the interest that hadproduct-based strategy. The key distinction in this case emerged in several European markets. As one compo-is the absence of any type of sponsorship relationship nent of that strategy, the MLB Road Show, an exhibitbetween the PGA and the publication. In a somewhat that allows "fans" to experience the game of baseball


by hitting in batting cages and pitching in an environ-ment that allows the speed of their pitches to be meas-ured, traveled to "new" geographic target markets suchas Germany. Target marketing may also involve B2Befforts. For example, in one effort to reach sports busi-ness professionals, adidas placed an advertisement inSportBusiness International magazine.

It should now be apparent that any alteration in theorganization's target marketing strategy is typicallysupported by other changes in its marketing mix. Theproduct is tweaked; the promotion is altered; the priceis modified; or the distribution strategy is changed soas to better work in harmony with the efforts to reacha new target market.

There are numerous examples for product decisions.The San Diego Padres provide a Spanish-languagebroadcast for its aforementioned Hispanic target mar-ket. This modification of the team's product provides abetter fit for some members of its media-based audi-ence. Marketers of spectator sports often target largebusiness accounts; the product that has become aprominent part of every new sports venue built in thepast 15 years is the luxury box. There are few individ-ual fans who would be interested in purchasing thisproduct; in fact, even the few "super-wealthy" fanswho can afford a luxury box would prefer to spendtheir money on the expensive premium seats at thevenue. TV viewers will frequently see actor JackNicholson in the front row of Lakers games, directorSpike Lee in the front row of Knicks games, and singerKid Rock in the front row of Pistons games.

Some sports have opted to change the rules that gov-ern their game. As mentioned above, after losing a sea-son because ofthe inability to reach an agreement withthe players association, the NHL introduced substantialmodifications to its rules beginning with the 2005-06season. Similarly, in an effort to speed up its footballgames, the NCAA introduced rules changes that gov-erned the starting and stopping ofthe clock at thebeginning of the 2006 season. Virtually every majorsport has changed its core product in some meaningfulway over the past 20 years. Marketers of spectatorsports must carefully consider any decision to modifythe way their game is played or officiated as anychanges will inevitably be met with resistance by somesegment of the fan base. Yet, such changes are oftenviewed as an improvement to the product that willenhance its appeal among members of one or more keytarget markets. Another key product decision for teammanagement concerns the players who are on the field.A team may sign a new star play in order to improvethe quality of play and to induce a more positive per-ception of the team on the part of fans and the media.

Sports equipment is often altered in an effort to cre-ate brand preference. Even though they violate the offi-cial rules ofthe game, golf balls that float or travel toofar are sought by some golfers. Golf clubs have beenmodified in an effort to provide players with theopportunity to hit the ball further and straighter; ten-nis rackets have larger sweet spots; and bowling ballshave stronger hooking characteristics. The sale of bas-ketballs has been enhanced by modifying its dimen-sions. A slightly smaller ball is used by women whoplay organized basketball (such as the WNBA). Thissmaller ball is also more likely to be purchased bywomen who participate informally as a form of recre-ation and exercise.

There are many promotions used to sell sports prod-ucts. Examples abound from the use of TV ads by NewBalance; the use of the Internet by FIFA, the New YorkYankees, the Plymouth Whalers, and Nike; direct mailcampaigns by the Chicago Bears; and local newspaperads by the PGA and the NBA's Memphis Grizzlies.Sports teams often use sales promotion as a marketingtool; one of the more popular techniques is the give-aways that are designed to encourage attendance andto nurture relationships. For MLB's Los AngelesDodgers, one ofthe more popular giveaways is theinfamous bobble-head doll. In another example, forthe 2007 tour ofthe Harlem Globetrotters, anyonepurchasing a minimum of six tickets could enter a spe-cial code in the Internet ticketing service dialog boxand receive a free basketball. Sales promotions likethese reflect many people's narrow perspective ofsports marketing, one that focuses on the question:how can we put more fans in the seats?

Spectator sports are not the sole province for sportsmarketers who utilize promotion as a means of imple-menting a product-based strategy. Marketers of partic-ipation sports products and the varied array ofsporting goods, apparel, shoes, and other sports-relat-ed products also rely extensively on promotion as animportant component of their strategies. For example,Bowflex uses TV advertisements, the Internet, and aCD-ROM that is sent to prospects in their efforts tonurture demand. The popular women's fitness center.Curves, has used two-for-one coupons while Bally'sFitness Centers have used 30-day free trial membershipperiods to get customers through the door. A bowlingcenter in Westland, Michigan, sent coupons to all ofthe registered league bowlers in its database providingthem with the opportunity to bowl a free game duringthe late summer, a notoriously slow period for bowlingcenters nationwide. Marketers everywhere acknowl-edge that trial is offen the prelude to adoption, somanufacturers and retailers of golf clubs often stage"Demo Days" at local pro shops; this promotion is


designed to get prospects to try new equipment in arisk-free environment. Finally, some marketers willprovide premiums for buyers much the way that themarketers of spectator sports use the giveaway strategy.The example in this case is for subscribers of Go//mag-azine to receive a dozen new Titieist golf balls.

In regard to pricing, many MLB teams work withlocal organizations and provide their members withdiscounts. Examples include a team's decision to selldiscounted tickets to members of AAA and AARP.Another is the group sales strategy that provides dis-

"Spectator sports are not the sole province forsports marketers who utilize promotion as a means

of implementing a product-based strategy."

counts for employee groups and students at certainschools. Many marketers of spectator sports have begunto use bundling strategies as a mechanism for providingdiscount pricing. During the 2007 season, MLB'sAtlanta Braves offered fans their Grand Slam TicketPack that included four game tickets, four hot dogs,four Coca-Colas, four team bucket hats, one game pro-gram, and parking at prices starting as low as $59.

One interesting strategy for a participation sportinvolves the task of making golf affordable. The USGAand its "First Tee" program have sought to reach kids,especially inner-city kids who generally do not have thefinancial resources required to play a round of golfThe marketing of athletic shoes has long been markedby controversy as the high prices often led to robberiesand even murders by kids who simply could not affordto pay $150 for a pair of desirable sneakers (Telander& llic, 1990). Some marketers have begun to offer newshoes at greatly reduced prices.

In an interesting example that illustrates potentialpitfalls in establishing prices that benefit the organiza-tion, the Chicago Cubs were recently sued because ofthe team's decision to sell highly desirable ticketsthrough its Wrigley Field Premium Tickets service. Theresult was that prices escalated far beyond the facevalue printed on the ticket. When the team wasabsolved of any legal violations, it was stated that thistactic would likely become more prevalent in situationswhere the demand for tickets exceeds the supply(Rovell, 2003). In fact, some teams and events (as wellas other entertainment events such as concerts) havebegun to offer the best seats through auctions in aneffort to maximize revenue. The Detroit Tigers auc-tioned off some of the front row seats at the team's on-deck circle during the final days of its run to the 2006MLB playoffs. Similarly, the organizers of a boxingmatch between Lennox Lewis and Kirk Johnson sold300 VIP ringside tickets to the highest bidders.

From these examples, it should be evident that pric-ing decisions do not always involve discounted prices.While the focus has been on ticket prices for spectatorsports, those marketers also have to think about theprices for access by the media-based audiences—thoseusing TV, radio, the Internet, and mobile technology towatch or listen to the event. Pricing decisions can alsobe a key part ofthe strategy for marketers of participa-tion sports, sporting goods, apparel, and athletic shoes.

The final area to consider in the product-basedquadrant is distribution. How can the marketer imple-ment distribution strategies that assist in the market-ing of sports products? For marketers of spectatorsports, this involves access to the event and efforts todistribute tickets to the fans. For the live audience,consideration must be given to the location of fran-chises. The NHL engaged in an aggressive expansionprogram that resulted in the location of new franchisesin warm weather locations such as Phoenix andMiami. Leagues must also evaluate opportunitiesinvolving the relocation of struggling franchises. Oneof the most recent moves involved the relocation ofMLB's Montreal Expos to Washington, DC. Manymarketers of spectator sports have begun to reach outto new international markets; the non-defunct NFL-Europe is one example of this phenomenon. The loca-tion of special events often involves a series of difficultdecisions. The Super Bowl, the Olympics, and theWorld Cup of Soccer evaluate the infrastructure ofcandidate cities as part ofthe decision-making process.

Tickets for most sporting events are now availablethrough a variety of outlets; no longer is the fan limit-ed to the traditional box office. Teams and events offertickets through independent agencies such asTicketmaster and Stubhub.com. Fans can purchasetickets over the Internet; in fact, they can even printtheir tickets on their own computer.

The media-based audience has become increasinglyvital to the well-being of every marketer of spectatorsports. We have seen the emergence of numerous TVoptions including team-dedicated networks(Manchester United Network), general sports networks(ESPN), specific sport networks (the Rugby Channel),sports tiers (NBA League Pass), free-to-air TV (Fox),and pay-per-view (PPV for boxing matches). Thegrowth of satellite radio has also provided another dis-tribution outlet. For example, NASCAR broadcastsmany of its races on Sirius Radio. Perhaps the most sig-nificant innovation of the past few years has been theability to use the Internet for audio and video stream-ing. Major League Baseball was quick to capitalize onthis emerging source of revenue with its MLB TV pro-gramming. An emerging application is the distribution


Tabie 4.Overview of Product-Based strategies (Traditional Strategies for Sports Products)

Target MarketingPGA Focus on Women (through Golf for Women Magazine Ad)WNBA's Los Angeles Sparks Targeting the Gay & Lesbian SegmentMLB Targeting the Hispanic MarketNBA Targeting Chinese-Speaking FansAdidas' Advertisement in SportBusiness International to Reach Sport Business ProfessionalsReal Madrid's Relationship Marketing Program Targeting Avid FansMLB Road Show in 13 Cities in Germany

ProductNHL Changes in Rules to open up the Game and Eliminate TiesMLB's San Diego Padres' Spanish Language Radio BroadcastLuxury Boxes for Large Corporate CustomersExpensive Premium Seats for Wealthy FansNCAA Football Rules Changes to Speed up the GameSigning Star Player to Improve Product (Chicago Bulls Signing of Ben Wallace)Sporting Goods with Performance Characteristics (golf clubs, golf balls, tennis rackets, bowing balls)Sporting Goods Tailored to Target Market (Smaller Basketball for Female Players)

PromotionCreative Appeals in Advertising (New Balance - "for the love ofthe game")Internet Site for Dissemination of Information (FIFA, New York Yankees, Plymouth Whalers, Nike)Direct Mail (Chicago Bears Season Ticket Renewal Solicitation)Newspaper Advertising (Teams and Events (Memphis Grizzlies and the PGA Championship))Sales Promotion - Giveaways (Los Angeles Dodgers Bobblehead Dolls; Harlem Globetrotters Ball)CD-ROM (Bowflex Mails to Prospects Identified through Direct Response Advertising)Free Trial (Bally's 30-Day Complimentary Membership; Golf Products "Demo Days")Discount Coupons (Curves 2-for-l Offer)Free Participation (Coupon for Free Game for Registered League Bowlers)Premiums (Golf Magazine Giving a Dozen Titieist Balls to Subscribers)

PricingDiscounts for Member of Recognized Groups (AARP & AAA)Group Discounts for Informal Groups (Parties, Students)Bundling of Tickets, Food, Beverages, and Other Products (Atlanta Braves Grand Slam Ticket Pack)Bundling of Events (Ford Field College Football Package)Programs to Make Participation Affordable (USGA's "First Tee" Program)New Lines of Athletic Shoes Selling at Lower PricesPremium Tickets Sold at Premium Prices (Chicago Cubs Wrigley Field Premium Ticket Service)Auction - Price Determined by Bidding (Lennox Lewis Fight; Detroit Tigers On-Deck Seats)

DistributionNHL Expansion to Warm Weather Locations (Miami, Phoenix, Atlanta, Tampa Bay)MLB Relocation Decision (Move Montreal Expos Team to Washington, DC)Location of Special Events (2010 World Cup of Soccer in South Africa)Competitions in International Markets (NFL Europe)Internet Ticket Procurement (Ticketmaster, Stubhub.com, Print-at-Home)Alternative TV Distribution (i.e., NFL Sunday Ticket, ESPN, the Golf Channel, Pay-Per-View)Satellite Radio (NASCAR on Sirius Radio)Audio and Video Streaming on Internet (i.e., MLB.TV)Distribution via Mobile Technology (i.e.. Mobile ESPN)Construction of Participation Facilities Based on Supply and Demand (Brunswick Bowling Centers)Mobile Retail Facility Going to the Customer (Callaway Golf Tour Fit Van)


of sports programming through mobile technologysuch as cellular phones and Blackberry PDA units.

In the distribution of participation sports facilities,the emphasis is on supply and demand. Brunswick onceevaluated each geographic area on the basis ofthe num-ber of bowling lanes that it could support. Then, basedon the number of existing lanes in that area, Brunswickwould calculate the surplus or deficit and use that sta-tistic as the basis for determining whether or not a newfacility should be built. In the absence of this type ofobjective assessment, the golf industry has overbuilt; asa result, decisions have had to be made regarding theclosure of many courses (Fullerton, 2007).

For the marketing of sporting goods, apparel, andshoes, consider Reebok's distribution strategy; it isquite different from that of most of its key competi-tors. While most marketers of athletic shoes seek to usechannels that emphasize large retailers, Reebok has his-torically focused on small specialty stores that providean enhanced level of customer service (Rohm, 1997).The final example to consider is that of Callaway'smarketing of golf clubs. It uses the Callaway Golf TourFit Van to go to remote locations and reach out toconsumers. The van reaches golf enthusiasts who aregiven easy access to the marketer's products.

From these preceding examples, it is evident thatmarketers of each category of sports products will seekto implement traditional strategies that will allow themto take advantage of the opportunities that the market-place presents. These actions may or may not result in acompetitive advantage to the marketer. In many casesthe actions taken are quickly imitated and thus becomepoints of parity. However, an interesting research ques-tion to answer might be the extent to which marketinginnovations in the sports marketing arena are sustain-able and provide competitive advantages. Marketers areacutely aware of the need to identify viable target mar-kets and to develop a series of corresponding marketingmixes that will appeal to each target market. Table 4provides an array of examples that illustrate the tradi-tional strategic initiatives employed in the implementa-tion of product-based strategies.

Alignment-Based StrategiesMany marketers of nonsports products officially align

themselves with sports properties via one or more ofthe four forms of sponsorship previously described (tra-ditional sponsorships, venue naming rights, endorse-ments, and licensing agreements). The nature of thissponsorship-based relationship reflects a higher level ofintegration of sports within the sports marketing envi-ronment. A common strategy involves a sponsor whouses an association with sports to market nonsportsproducts; this combination emphasizes initiatives that

are classified as alignment-based strategies. In an effortto sell more fast food, McDonald's advertising andpackaging feature its official partnership with theOlympic Games. Volvo uses its sponsorship of a highprofile sailing event to strengthen the public's percep-tion of the carmaker as one that exudes prestige whileconcurrently emphasizing safety and technology.While the strategic initiatives that augment the spon-sorship are important, the foundation for the resultantstrategy is the fact that the marketer, by virtue of itsofficial sponsorship, is highly integrated within thesports environment. Thus, the task for these marketersof nonsports products is one of implementing strategicinitiatives that allow them to capitalize upon theirposition within this realm of the sports marketingenvironment. Such initiatives are alternatively charac-terized as leveraging or activation.

Examples using traditional sponsorship abound;however, two of the most noteworthy examples areCoca-Cola's relationships with the World Cup ofSoccer and the Olympics. Other noteworthy Olympicssponsors include McDonalds, Lenovo Computers, andJohn Hancock Life Insurance (see Table 5 for severalexamples).

In addition to traditional sponsorship, there arethree special forms of sponsorship that are available totoday's marketers. The professional teams in Denverprovide excellent examples of how marketers of non-sports products use venue naming rights (or "buildingsponsorships") as a platform for creating demand.MLB's Rockies play their home games in Coors Field.The NHL's Avalanche and the NBA's Nuggets bothplay their home games in the Pepsi Center. In thissame vein, the NBA's Memphis Grizzlies play in theFedEx Forum while MLB's San Diego Padres play theirgames in Petco Park. Significant growth has alsooccurred in the American collegiate market and inminor league professional sports; consider Ohio State'sValue City Arena and the Memphis Redbirds inAutoZone Park. Virtually every major venue in theUnited States now has a naming rights sponsor; as aresult, much ofthe recent growth in this type of spon-sorship activity has taken place in international mar-kets. A few examples are Allianz Arena in Munich,Germany; Lexus Centre in Melbourne, Australia;Coca-Cola Stadium in Xi'an, China; T-Mobile Arenain Prague, Czech Republic; and DeBeers DiamondOval in Kimberly, South Africa.

Venue naming rights inevitably provide benefits farbeyond that of simply putting a corporate moniker onthe facade of some sports facility. For example, thePepsi Center serves Pepsi products, and all oftheATMs in Comerica Park belong to Comerica Bank.Thus, venue naming rights can be an integral compo-


Tabie 5.Overview of Alignment-Based strategies (Sports Sponsorship-Based Strategies for Nonsports Products)

Traditional SponsorshipOlympic Sponsorships (McDonald's, Lenovo, & John Hancock Life InsuranceVolvo's Sponsorship of the Ocean RaceWorld Cup Sponsorships (Google!, Coca-Cola, McDonald's)NASCAR Sponsorships (DeWalt, DuPont, Best Western, Budweiser & Pepsi-Cola)Weetabix Women's British OpenPGA Tournament Title Sponsors (FedEx)NFL "Official" Products (Coors Lite, Samsung HDTV)Official Energy Bar ofthe New Zealand AU Blacks (Moro)Official Energy Source ofthe PGA Tour (Nature Valley Granola Bars)Barclay's Premiership LeagueMLB's Chicago White Sox sponsorship by 7-11Red Bull Sponsorship of MLS Team (New York Red Bulls)

Venue Naming RightsDenver Sports Facilities (Coors Field, Pepsi Center)Memphis Sports Facilities (FedEx Forum and AutoZone Park)San Diego MLB Facility (Petco Park)Detroit MLB Facility (Comerica Park)College Venues (Ohio State's Value City Arena)Minor League Sports (Memphis Redbirds' AutoZone Park)International Venues (Allianz Arena, Lexus Centre, Coca-Cola Stadium)Other International Venues (T-Mobile Arena, DeBeers Diamond Oval)

EndorsementsSony High Definition TV and Peyton Manning"Got Milk?" and Peyton, Eli, & Archie ManningPrilosec and Brett FavreTag Heuer Watches and Tiger Woods & Michelle WieBuick and Tiger WoodsAccenture and Tiger WoodsArnold Palmer and InvacareMenard's Home Improvement and Dale Earnhardt, Jr.Old Spice Fragrances and Tony Stewart

LicensingMattel "Hot Wheels" Cars and NASCARRival "Crock Pots" and NASCARMonogram Lunch Meats and NASCARVisa and the NFLMBNA and MLB's St. Louis CardinalsVan Dillen Asiatech and FIFA World CupHawrthorne Village and the NHLYork Heating and Air Conditioning and NCAA Sports Teams (U of Michigan)Danbury Mint (Watches) and NCAA Teams (University of Michigan)Glidden Paint and an Array of Sports Entities (i.e., NFL, NCAA, NBA, & USOC)Oak Grove Caskets and NCAA Teams (i.e., Ohio State University)

nent of a marketer's strategy in its efforts to influence A second special form of sponsorship is that of theconsumer attitudes and preferences as well as the pur- implementation of an endorsement strategy or whatchase of its nonsports products by members of the has been referred to as a "personality sponsorship"organization's target markets. (Gillis, 2005, p. 4). One can seldom watch a TV pro-

gram or read a magazine without seeing at least one


effort to use an athlete's endorsement as a means ofcutting through the clutter. These celebrity endorsersare generally easily recognized, in part because theyhave achieved a high standard of performance. Whilethere are many types of personalities who can performin the role of a celebrity endorser, within the realm ofsports marketing, the focus is on athletes. IndianapolisColts' quarterback Peyton Manning has become a pop-ular endorser. Among his recent spate of endorsementsis one for Sony High Definition TV. It is worth notingthat no NFL trademarks or logos are used in theseadvertisements because another marketer, Samsung, isthe official High Definition TV sponsor for the NFL.Some critics may actually refer to Sony's effort asambush marketing

The final special form of sponsorship involves theuse of licensing to sell nonsports products. Considerthe relationship between Mattel and NASCAR. Byusing select NASCAR trademarks, Mattel is able tocapitalize on the sport's popularity and sell more of itsHot Wheels toy cars. Consumers may also purchase aslow cooker from Rival; the marketer's "Crock Pots"bear the likeness of one of several NASCAR driversincluding Jeff Gordon and Dale Jarrett. Major creditcard companies have entered into licensing agreementswith virtually every major sports league and theirteams. The resultant affinity credit cards can representan attractive offering for fans. Two examples are theVisa "NFL Extra Points" card and the MasterCard thatfeatures MLB's St. Louis Cardinals.

It is important to reiterate the fact that each of theexamples delineated represents a marketer's effort tosell nonsports products. However, the efforts reflect ahigher level of integration of sports within the market-ing strategy than is in evidence with theme-basedstrategies. This is achieved through the use of someform of sponsorship that ties the marketer to someimportant sports entity. Table 5 provides a compendi-um of examples of alignment-based strategies.

Sports-Based StrategiesThe final domain, sports-based strategies, is character-ized by official sponsors of a sports propertywho are sell-ing other sports products. Because of the role of sportsin both the product and integration dimensions, thisdomain may reflect the greatest reliance on sports-ori-ented initiatives. It may also represent the least com-mon type of strategy employed by today's sportsmarketers. Within this domain, the most commonstrategy features the marketer of sporting goods orsports apparel in a traditional sponsorship of a sportsteam or a sporting event. Strategies in this domain canbe very effective when appealing to customers who areexcited by the sports that are used in the implementa-

tion ofthe specific strategic initiatives (Fullerton,2007). For example, adidas sells sporting goods and ituses advertising that complements its traditional spon-sorship of FIFA and the World Cup of Soccer. Thisconsistency produces the synergy that is characteristicofthe sports-based domain.

An example that features a traditional sponsorship isAdams Golf and the PGA. The maker of the "TightLies" brand of clubs sponsors a lower-level regionalseries of golf tournaments that comprise the Tight LiesTour. Another example is the traditional sponsorshipfor adidas and the New Zealand All Blacks (NewZealand Rugby Football Union). While this is similarto the sponsorship ofthe World Cup of Soccer by adi-das, the difference lies in the type of property withwhich the sponsor is aligned. In the former case, adidasis sponsoring an event; in the latter case, the marketeris sponsoring an organization and its famous team.While each of these examples best fits within the realmof traditional sponsorship, the sponsors' contracts typ-ically provide them with opportunities to sell officiallylicensed merchandise and to gain the services of keyplayers for endorsements. Thus, there is often an over-lap in the types of sponsorships used by any marketerthat is operating in the sports-based domain.

The three special forms of sponsorship can also beemployed by marketers operating in the sports-basedquadrant. For example, Reebok has venue namingrights for a soccer stadium in Bolton, England; theReebok Stadium is the result. While this strategy hasseldom been chosen as an appropriate sponsorshipendeavor by marketers of sports products, it maybecome more common as new stadia are built with afocus on revenues from the marketers holding thenaming rights for each venue.

Endorsements for sports products that use athletesas spokespersons represent the best examples of thesports-based domain. Nike's personal sponsorship ofMichelle Wie is one of the most recent and most note-worthy efforts of this type. Early in Tiger Woods'career, Nike was criticized for its substantial paymentfor the golfer's endorsements of Nike's new line of golfproducts. Given the terms of their new contract, it isevident that Nike felt like the world's number onegolfer contributed to its sales in a positive way, muchthe way that Michael Jordan did throughout his illus-trious NBA career. Marketers of spectator sports canalso implement endorsement-based strategies. Mostoften, these involve spokespersons who are still activein the sport. The PGA has long run a "these guys aregood" campaign that features current golf stars.Similarly, the National Basketball Association hasrelied on its "the NBA is FANtastic" advertising themethat features current NBA stars such as Dwayne Wade

Volume 17 • Number 2 • 2008 • Sport MarHeting Quarteriy 105

Tabie 6.Overview of Sports-Based strategies (Sports Sponsorship-Based Strategies for Sports Products)

Traditional SponsorshipAdidas and FIFA (World Cup of Soccer)Adams Golf and the PGA (Tight Lies Tour)Adidas and the New Zealand Rugby Football Union (New Zealand All Blacks)Adidas and National Soccer Teams (e.g., Germany and Argentina)Quiksilver and the X GamesReal Madrid Soccer Team and a Formula 1 Race Team

Venue Naming RightsReebok Stadium in Bolton, EnglandFila Forum in Milan, ItalyPro Player Stadium in Miami, Florida, USA (contract terminated)

EndorsementsNike and Michelle Wie, Tiger Woods, and Michael JordanAdidas and David BeckhamBurton Snowboards and Shaun WhiteStorm Bowling Balls and Pete WeberCallaway Golf and Arnold PalmerPGA Golf and Star Players ("These guys are good")NBA and Star Players ("The NBA is FANtastic")MLB and International Star Players (World Baseball Classic)

LicensingNike and Major Universities (e.g.. North Carolina, Duke, and Ohio State)Upper Deck and MLB (collectable trading cards)Reebok and NHL (apparel and equipment)Gilbert and Super 14 Rugby (balls)Wilson and the NFL (balls)

and Yao Ming. Because of their potential impact, the target market is comprised of fans of the sportsendorsements are a commonly employed strategy entity with which the marketer has an official relation-within the sports-based domain. ship. Clearly, the marketing of sports products can be

Finally, we turn our attention to licensing. It is impacted in a positive manner via the incorporation ofimportant to reiterate the earlier point that the other the sponsorship of a recognizable sports property with-forms of sponsorship may convey to the sponsor the in an integrated marketing communications strategy,right to produce and sell an array of merchandise that Table 6 provides a summary ofthe sports-based strate-features the trademarks, logos, and likenesses ofthe gies that were cited in this section,sponsee. Nike has licensing deals with a number of toptier university athletic programs. Among the most Conclusionsnoteworthy are the University of North Carolina, Duke The purpose of this conceptual paper is to provide aUniversity, and The Ohio State University. Upper Deck grounded theory-based framework for classifyinguses a licensing agreement with professional sports activities that comprise sports marketing strategies. Itleagues and players such as those in Major League begins with the recognition that there are two distinctBaseball as the foundation of its efforts to sell collecta- dimensions within the sports marketing industry: theble trading cards. It is important to understand that the marketing of sports products and marketing throughlicensee is using its relationship with a sports property sports. Thus, sports marketing is not solely focused onto influence demand for its own sports products. how to get more fans in the seats at a specific sports

For each of the aforementioned examples, the syner- venue. By taking the type of product sold and the levelgy emanating from the two sports entities should be of sports integration into account, four strategicevident. As noted earlier, this domain represents the domains have been identified. The types of productsone with the greatest overall immersion into the world have simply been identified as sports products andof sports; therefore, it can be extremely effective when nonsports products. The marketers' level of integration


concerns its involvement with some sports entity insome form of official sponsorship. As such, the twobroad areas for integration have been designated astraditional and sponsorship-based. Using these dimen-sions, the two-by-two matrix shown in Figure 1emerges. This matrix provides the foundation for thedefmition and description of the four domains of thesports marketing industry.

At the most fundamental level, theme-based strategiesuse the traditional components of a marketing strate-gy—target market and marketing mix decisions—to sellnonsports products. This can be differentiated from theproduct-based strategies that represent the use of tradi-tional marketing mix and target marketing decisions inan effort to sell sports products. Representing a higherlevel of integration, many marketers have aligned them-selves with sports properties via some form of sponsor-ship. The sponsorship-based strategies are representedby the alignment-based and sports-based strategies.Alignment-based strategies use sponsorship in theefforts to sell nonsports products; it is the fact that themarketer is aligned with some sports entity that quali-fies this type of strategy as one ofthe sports marketingdomains. Conversely, sports-based strategies involvesome form of official sponsorship of a sports propertyin the task of marketing one of the many sports prod-ucts that crowd the marketplace.

The classification of recent examples within thesports marketing industry provides evidence and fur-ther documents the fact that these four domains aremutually exclusive and collectively exhaustive, thusmeeting a basic test for the usefulness of this proposedframework. In addition, the broadened set of sportsmarketing domains articulated herein provides amethod for classifying the many strategies that haverecently evolved in the practice of sports marketing.This classification system is an initial first step for thedevelopment of theory in a field, it allows for thedevelopment of testable hypotheses to guide the devel-opment and execution of research, and finally it pro-vides guidance to decision-makers in the field.

Directions for Future ResearchThe classification framework presented herein givesrise to a number of interesting and potentially fruitfulresearch topics related to sports marketing. We men-tion several here.

A key question is the relative performance of thesevarious sports marketing approaches in the accom-plishment of business objectives. The performancecharacteristics should consider the advantages and dis-advantages of each approach. For instance, there issome evidence that sponsorship strategies may stimu-late negative societal attitudes toward the practices in

particular and sports in general (Merz, Fullerton, &Taylor, 2006).

In addition, the development of descriptive researchto document the relative costs associated with each ofthe four domains and the identification of contingen-cies for choosing one approach over another wouldhelp establish useful decision-making guidelines. Forinstance, strategy research can identify conditionsunder which it is more advantageous for a marketer ofnon-sports related products to use a theme-based ver-sus an alignment-based strategy.

Finally, the practice of sports marketing strategiesinternationally is another area of fruitful inquiry. Asmany ofthe examples used in this paper reveal, whilethe underlying framework as a theory possesses facevalidity, clearly how the approaches are executed variesdramatically in a cross-cultural context. Marketersengaged in global activities need guidelines about howbest to use sports marketing strategies in the interna-tional arena.

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Endnotes' Howard Coseii first uttered the expression "veritablepietiiora" in a sports context during tlie broadcast of aMonday Nigiit Footbaii game in tlie 1970s. Tiiat phraseseems to be an appropriate description of the currentstate of sports marketing.


^ A grounded theory approach has as goais the identifi-cation of concepts, categories and propositions.Concepts and categories are the basic units of analysisand the starting point for most grounded theory appli-cations. It is the conceptualization and categorizationof observed events (the data) that establishes the basesand means for integrating the emerging theory. In itsformation the grouping of concepts into categories issupported by exampies (sampies of data) observed bythe researcher.

^ For example, Qantas Airway's ambushing of AnsettAustralia during the Sydney Oiympics, and Nike'sambushing of the officiai adidas sponsorship of theWorld Cup of Soccer." Grabbing much of the headlines in recent days is thepricing strategy used by Steve and Barry's UniversitySportswear store to seil its new basketball shoe for$14.98. In light of Payiess Shoe Source's marketing ofits successfui $35 Amp running shoe, one sports mar-keting firm issued a stern warning that, "If I were abranded athletic company right now, I'd be reconsid-ering my whoie approach" (Holmes 2007).^ ESPN attempted to provide this type of service, but itwas met by generai disinterest by American consumers.

Documents

Sport Marketing Quarterly, The Four Domains of Sports ... strategies. A comprehensive review of recently published sports marketing textbooks reveals inconsis-tencies in the definitions