Today:

More comments on pricing

Framework for event management

Exploring idea of sponsorship in sport

Most Common Pricing Strategy:

What could be the result of an incorrect decision?

If hunches are wrong, results can be costly

What the Market Will Bear

Would any particular group be more sensitive to price change? Why?

Special Pricing Factors to Consider

Pricing based on user group

Corporate/individual season-ticket holder

User Segmentation

Single-ticket purchasers

Special groups

Student packages

[Un]bundling

Special Pricing Factors to Consider

Time—bundled packages

Prime vs. non-prime time

Time and Place Smoothing

Price scales in venue

Key factors—proximity, line of sight, and demand

What are some key pricing concerns for a new MLS franchise?

Understand the Escalator!

Price hikes threaten to push consumers off escalator

Moving consumers up the escalator

Heavy users Medium users Light users

Non-consumer sport and leisure fan

Non-consumer, non-sport and leisure fan

Events: Frameworks and Guidelines

Perspectives and issuesSome aspects to consider – all inter-related

Type and scale of events Planning events Human resources – events personnel Marketing and forecasting demand Budgeting and financial management Sponsorship Management and evaluation

Event Checklist

Objective – Why are you doing it? Define your event with a mission statement Know the rules and regulations that apply

Event Checklist

Target your event to the customer Think about the personality Develop Budget

Budget Items

Revenue Sponsorship Ticket sales Merchandise Media Programs F&B

Budget Items

Expenses General and administrative Talent Production Facility Television Sales and Marketing

Sales and marketing expense

Advertising Media public relations Advertising production Design fees Collateral materials Direct mail

Sponsor costs Entertainment Post event parties Photographer Merchandise Tents Gifts

Budget Items

Cash Flow Chart when the cash is due to come in and when the

major payments have to out

Magic Bag

You have to create a sport event and develop identify the following:

Objective Mission statement Organizational structure Target market Personality

On Sponsorships in Sports

Define “Sponsorship” in Sport. What can be sponsored? Why sponsor? Why being sponsored? Why not?

FIFA Fan Fest Sponsorship

MasterCard sponsors the FIFA WC What in the organization’s marketing mix is

such a sponsorship engagement part of? What do you think are their strategic

objectives? Do you think a sporting event such as the

World Cup is a good context for achieving these strategic goals? Why/Why Not?

FIFA

Calls its sponsors “Commercial Affiliates” Currently divides them into the following 3

categories: Official Partners (global marketing rights) Official Suppliers (rights in the host country only) Licensees

Official Partners ONLY

Official partners of the 2006 FIFA World Cup™

www.adidas.com www.avaya.com www.budweiser.com www.coca-cola.com www.conti-online.com www.deutschetelekom.com www.emirates.com home.fujifilm.com www.gillette.com www.hyundai-motor.com www.mastercard.com www.mcdonalds.com www.philips.com www.toshiba.co.jp www.yahoo.com

FIFA restructuring

2007-2014: includes the flagship FIFA World Cups in 2010 and 2014

Classifies prospective marketing partners into three categories: six FIFA Partners (broad range of FIFA activities such as

competitions, special events or development programs as well as exclusive marketing assets).

six to eight FIFA World Cup™ Sponsors (rights are limited to the FIFA World Cup™ on a global basis. They consist of the right to category exclusivity, brand association, select marketing assets and secondary media exposure).

four to six National Supporters (category exclusivity, association, local marketing programs and domestic media exposure).

Discuss

How can you understand conceptually the reasoning for restructuring the sponsorship pillar around the FIFA World Cup?

Endorsements: Sub-category of Sponsorships

Beckham as endorser: Opportunities Threats