Sports Marketing Sports Marketing

An overview of the impact of An overview of the impact of sports marketing in Charlotte and sports marketing in Charlotte and

BeyondBeyond

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Exactly what is and what isn’t a Exactly what is and what isn’t a SportSport

ExercisingExercising

CheerleadingCheerleading

ChessChess

Lawn Mower RacingLawn Mower Racing

Spelling BeeSpelling Bee

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Understanding the Sports IndustryUnderstanding the Sports Industry

Sport - Source of diversion or physical Sport - Source of diversion or physical activity engaged in for pleasureactivity engaged in for pleasure

Sports as Entertainment - Reebok Sports as Entertainment - Reebok president Robert Meers, “We’ve president Robert Meers, “We’ve recognized for several years that recognized for several years that sport is part of entertainment. The sport is part of entertainment. The market now is really sports, fashion market now is really sports, fashion and music. We can’t expect to ignore and music. We can’t expect to ignore reality and survive.”reality and survive.”

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Sports = EntertainmentSports = Entertainment

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Marketing OrientationMarketing OrientationSetting marketing goals and defining Setting marketing goals and defining strategies to achieve business goals strategies to achieve business goals by concentrating on consumers and by concentrating on consumers and providing a sports product that meets providing a sports product that meets the consumers need. the consumers need. – Intelligence generation: Analyzing and Intelligence generation: Analyzing and

anticipating consumer demandanticipating consumer demand– Intelligence dissemination: Sharing Intelligence dissemination: Sharing

gathered informationgathered information– Responsiveness: Acting on information Responsiveness: Acting on information

gathered to make a decisiongathered to make a decision

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What is Sports MarketingWhat is Sports Marketing

The specific application of marketing The specific application of marketing principles and process to sports principles and process to sports products and the marketing of non-products and the marketing of non-sports products associated with sports products associated with sports.sports.– Sports Products: Experience (tickets to Sports Products: Experience (tickets to

he game itself), Equipment, Accessorieshe game itself), Equipment, Accessories– Non-sports products: Milk, Security Non-sports products: Milk, Security

SystemsSystems

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The Sports ProductThe Sports Product

Sports Product - A good, service, or Sports Product - A good, service, or any combination of the two that is any combination of the two that is designed to provide benefits to a designed to provide benefits to a sports spectator, participant or sports spectator, participant or sponsor.sponsor.

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Types of Sports Types of Sports ProductsProducts

Sporting EventsSporting Events– Player AppearancesPlayer Appearances– Arenas/StadiaArenas/Stadia

Sporting GoodsSporting Goods– $60.2 billion industry comprised of four segments (equipment, $60.2 billion industry comprised of four segments (equipment,

transportation, apparel, and footwear)transportation, apparel, and footwear)– Collectibles and MemorabiliaCollectibles and Memorabilia

Sports TrainingSports Training– Fitness and Health ServicesFitness and Health Services– Sports Camps and InstructionSports Camps and Instruction

Sports InformationSports Information– Newspapers, Internet, Magazines, Radio, etc.Newspapers, Internet, Magazines, Radio, etc.

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What is Sports MarketingWhat is Sports Marketing– Sports ProductsSports Products Non-sports Non-sports

productsproducts

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The Structure of the Sports IndustryThe Structure of the Sports Industry

ConsumersSpectatorsParticipants

Products Events

Sporting GoodPersonal Training

of SportsSports information

Player appearances

Manufactures and MachinesOwners

Sectioning BodiesCorporations or Business

AgentsEquipment Manufactures

Special Interest GroupPlayers

CustomersCorporations or Business

SponsorsMedia

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ConsumersConsumers

Spectator: Consumers that derive a Spectator: Consumers that derive a benefit from observing or following benefit from observing or following an eventan event

Participant: Consumers that derive a Participant: Consumers that derive a benefit form physically participating benefit form physically participating in a organized or unorganized in a organized or unorganized armature sport at some level of armature sport at some level of frequencyfrequency

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CustomersCustomers

Customers: Corporations, business, Customers: Corporations, business, and media (both with and without and media (both with and without sponsorship agreements) that sponsorship agreements) that leverage a sports equities to attract leverage a sports equities to attract that sports consumerthat sports consumer

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The ProductThe ProductA sports product is goods, services, or any A sports product is goods, services, or any combination of the two that is designed to provide combination of the two that is designed to provide benefits to sports consumers, customers, or benefits to sports consumers, customers, or manufacturers.manufacturers.– Goods and ServicesGoods and Services

Sporting eventsSporting events

Sporting goods and trainingSporting goods and training

Sponsorships and Media DealsSponsorships and Media Deals

Sports informationSports information

Player appearances, endorsement, etcPlayer appearances, endorsement, etc

– BenefitsBenefitsMonetaryMonetary

Ability to reach a desired audienceAbility to reach a desired audience

Entertainment and emotional connectionsEntertainment and emotional connections

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Manufactures and MachinesManufactures and MachinesThe manufacture of the sports product and the The manufacture of the sports product and the organizations that perform some function in the organizations that perform some function in the marketing of sports products:marketing of sports products:– Owners: Bob Johnson Owners: Bob Johnson – Sectioning Bodies: NASCARSectioning Bodies: NASCAR– Corporations or Business: Disney Corporations or Business: Disney – Agents: Mark McCormackAgents: Mark McCormack– Equipment Manufactures: NikeEquipment Manufactures: Nike– Special Interest Group: The city of CharlotteSpecial Interest Group: The city of Charlotte– Players: Delancy Bennett (best 6’2 power forward the Players: Delancy Bennett (best 6’2 power forward the

NBA has never seen)NBA has never seen)

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The Structure of the Sports IndustryThe Structure of the Sports IndustryManufactures and MachinesManufactures and Machines ProductsProducts CustomersCustomers ConsumersConsumers

EA Sports EA Sports NCAA 2006NCAA 2006 Wal-Mart Target etcWal-Mart Target etc GamersGamers

NCAANCAA

SECSEC  

Kudo Tsunado, vice president and general manager of EA Sports' regional headquarters in Chicago, tells Site Selection why the Second City was his company's first choice.

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Strategic Sports Marketing Strategic Sports Marketing ProcessProcess

The process of planning, The process of planning, implementing, and controlling implementing, and controlling marketing efforts to meet marketing efforts to meet organizational goals and to satisfy organizational goals and to satisfy consumer’s needs. consumer’s needs.

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Sports Marketing MixSports Marketing Mix

ProductProduct

PricePrice

Placement Placement

PromotionPromotion

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Growth of the Sports IndustryGrowth of the Sports Industry

11th largest of all U.S. industry groups11th largest of all U.S. industry groupsUS’s output for sports goods and services US’s output for sports goods and services estimated at $213-350 billion annuallyestimated at $213-350 billion annuallyHow do we measure growth in the sports How do we measure growth in the sports industry?industry?Growth measured in…..Growth measured in…..– Attendance FiguresAttendance Figures– Media CoverageMedia Coverage– Employment Figures (4.5 million jobs)Employment Figures (4.5 million jobs)– Global MarketsGlobal Markets– Sports GoodsSports Goods– Sports InformationSports Information

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Growth of Sports IndustryGrowth of Sports IndustrySporting Good IndustrySporting Good Industry– Sports Equipment (17.5 billion)Sports Equipment (17.5 billion)

Exercise equipmentExercise equipmentGolfGolfGuns and HuntingGuns and Hunting

– Recreational Vehicle and Water Scooters (17.9)Recreational Vehicle and Water Scooters (17.9)– Sports Apparel (22.3)Sports Apparel (22.3)– Footwear (9.3)Footwear (9.3)

Collectibles and MemorabiliaCollectibles and Memorabilia– 1.2 billion at height in 1991 and now stable at 500 million1.2 billion at height in 1991 and now stable at 500 million

Sports InformationSports Information– 3.2 circulation of SI3.2 circulation of SI– 34% use Internet for sports Info34% use Internet for sports Info– ESPN.com reaches 15 million unique usersESPN.com reaches 15 million unique users

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Growth of Sports IndustryGrowth of Sports Industry

Media Coverage is IncreasingMedia Coverage is Increasing– 200 million people watched NBC coverage of the Summer Olympic Games and 200 million people watched NBC coverage of the Summer Olympic Games and

3.7 billion people watched worldwide3.7 billion people watched worldwide– ESPN, the original sports-only network launched in 1979, reaches some 76 ESPN, the original sports-only network launched in 1979, reaches some 76

million homes with its 4900 hours of sports programmingmillion homes with its 4900 hours of sports programming and, remarkably, and, remarkably, ESPN2 reaches 65 million viewers.ESPN2 reaches 65 million viewers.

– $2.3 billion to secure the broadcast and cable rights for the Olympic Games in $2.3 billion to secure the broadcast and cable rights for the Olympic Games in 2004, 2006, and 2008 and additional $2.2 billion for 2010 and 20122004, 2006, and 2008 and additional $2.2 billion for 2010 and 2012

– Overall for the week, NBC averaged 26.7 million viewers in primetime, more Overall for the week, NBC averaged 26.7 million viewers in primetime, more than three times the 7.2 million for second-place CBS. ABC was third with 4.5 than three times the 7.2 million for second-place CBS. ABC was third with 4.5 million, followed by Fox with 4.4 million.million, followed by Fox with 4.4 million.

– $2.64 billion paid by NBC and Turner Sports to televise NBA contests, $18 $2.64 billion paid by NBC and Turner Sports to televise NBA contests, $18 billion paid by the networks for the NFL, $2.5 billion for post season MLBbillion paid by the networks for the NFL, $2.5 billion for post season MLB

– New sports networks, such as the College Sports Television, Tennis Channel, New sports networks, such as the College Sports Television, Tennis Channel, Blackbelt TV, and the Women’s Sports Network Blackbelt TV, and the Women’s Sports Network

– Internet, satellite stations, and pay-per-view cable television are growing in Internet, satellite stations, and pay-per-view cable television are growing in popularitypopularity

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Growth of the Global Sports Growth of the Global Sports IndustryIndustry

Sports Equipment:Sports Equipment:– 2005 Global Sports Equipment Sales reached $64.2 2005 Global Sports Equipment Sales reached $64.2

BillionBillion+2.5% vs. 2004+2.5% vs. 2004Estimated to reach $72 Billion by 2010Estimated to reach $72 Billion by 2010

– The Americas account for 42% of the The Americas account for 42% of the marketmarket

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Opportunities in the Opportunities in the Sports Industry: AcademicsSports Industry: Academics

Over 200 Academic Programs in Sports Over 200 Academic Programs in Sports AdministrationAdministration

NKU – 120 Majors and growingNKU – 120 Majors and growing

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Opportunities in the Sports Opportunities in the Sports Industry: CareersIndustry: Careers

Upwards of 4.5 million sports-related jobs in sports Upwards of 4.5 million sports-related jobs in sports administrationadministration13 career areas in sport. These include: event 13 career areas in sport. These include: event suppliers, event management and marketing, sports suppliers, event management and marketing, sports media, sports sponsorship, athlete services, sports media, sports sponsorship, athlete services, sports commissions, sports lawyers, manufacturers and commissions, sports lawyers, manufacturers and distribution, facilities and facility suppliers, teams, distribution, facilities and facility suppliers, teams, leagues, college athletics, and financeleagues, college athletics, and financeMarketing & Public RelationsMarketing & Public Relations

Professional Sports Professional Sports Intercollegiate Sports Intercollegiate Sports

Youth Sports Youth Sports Olympic Sports OrganizationsOlympic Sports OrganizationsRegional and National Sport Commissions Regional and National Sport Commissions

Amateur Sports Amateur Sports Corporate Sports Marketing Corporate Sports Marketing Sports Marketing Firms Sports Marketing Firms Licensing Firms Licensing Firms

Classification of Sports Classification of Sports ParticipantsParticipants

Unorganized Sports Unorganized Sports ParticipantsParticipants Organized Sports Organized Sports ParticipantsParticipants AmateurAmateur

Youth Recreational Youth Recreational InstructionalInstructional

Youth Recreational EliteYouth Recreational Elite

SchoolsSchools

IntercollegiateIntercollegiate

ProfessionalProfessional Minor/SecondaryMinor/Secondary

MajorMajor

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The Sports Product MapThe Sports Product Map

Sports in the Charlotte Metro Sports in the Charlotte Metro AreaArea

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NASCARNASCARNASCARNASCAR– The total economic impact in 2005The total economic impact in 2005

NC= $5.9 billion NC= $5.9 billion

Charlotte metro area = $3.9Charlotte metro area = $3.9

– Racing teams based within a 1 hour driving Racing teams based within a 1 hour driving radius:radius:

NASCAR = More than 90% of all teamsNASCAR = More than 90% of all teams

Busch and Craftsman = More than 50% of all teams Busch and Craftsman = More than 50% of all teams

NASCAR Hall of FameNASCAR Hall of Fame$154.5 million project$154.5 million project

Estimated to yield a $100 million economic impact and Estimated to yield a $100 million economic impact and bring 400,000 visitors per year to NC.bring 400,000 visitors per year to NC.

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Speedway Motor SportsSpeedway Motor SportsLocation: Concord NCLocation: Concord NC

2nd largest speedway facilities operator in 2nd largest speedway facilities operator in the USthe US

Sales $567 Million Sales $567 Million – Lowes Motor Speedway (Sales $ 23.1 Million)Lowes Motor Speedway (Sales $ 23.1 Million)– Other TracksOther Tracks

Atlanta SpeedwayAtlanta Speedway

Las Vegas Motor SpeedwayLas Vegas Motor Speedway

Texas Motor SpeedwayTexas Motor Speedway

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Carolina Panthers (American) Carolina Panthers (American) FootballFootball

Current Team value $878 MillionCurrent Team value $878 Million– Jerry Richardson bought the team in 1993 for Jerry Richardson bought the team in 1993 for

$206 Million$206 Million– 20 year $140 million stadium naming rights 20 year $140 million stadium naming rights

agreement agreement Bank of America StadiumBank of America Stadium66thth largest naming rights deal in sports history largest naming rights deal in sports history

– Major SponsorsMajor SponsorsCarolinas Medical CenterCarolinas Medical CenterPepsiPepsiBudweiser Budweiser MillerMillerChrysler Dodge JeepChrysler Dodge Jeep

Key Figures

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Carolina Panthers (American) Carolina Panthers (American) FootballFootball

Team ValuationTeam Valuation

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Charlotte BobcatsCharlotte BobcatsCurrent Team Value: $277 million Current Team Value: $277 million – Robert Johnson (Net Worth: $1 billion), bought the team in Robert Johnson (Net Worth: $1 billion), bought the team in

2003 for $300 million. 2003 for $300 million.

Major corporate sponsors are Major corporate sponsors are – Coca-Cola Coca-Cola – Anheuser-Busch Anheuser-Busch – Presbyterian HospitalPresbyterian Hospital

Key Figures

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Wachovia OpenWachovia Open

– TV broadcast reaches more than 140 TV broadcast reaches more than 140 countries countries

– Generates over $45 million in economic Generates over $45 million in economic activity in Charlotteactivity in Charlotte

– Over 200,000 fans attend the event Over 200,000 fans attend the event annually annually

– The event raised over $5.6 million for The event raised over $5.6 million for charity between 2003 and 2006charity between 2003 and 2006

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Other Regional Sports EntitiesOther Regional Sports EntitiesCharlotte Checkers (Minor League Soccer)Charlotte Checkers (Minor League Soccer)Carolina Hurricanes (2006 NHL Stanley Cup winners)Carolina Hurricanes (2006 NHL Stanley Cup winners)Charlotte White Water Rapids CenterCharlotte White Water Rapids CenterCollege SportsCollege Sports– UNC CharlotteUNC Charlotte– DukeDuke– Wake ForestWake Forest– UNC Chapel HillUNC Chapel Hill– NC StateNC State– Appalachian State UniversityAppalachian State University

2005 & 2006 National Division II Football Champions2005 & 2006 National Division II Football ChampionsBeat #5 Michigan (at Michigan) to kick off the 2007 seasonBeat #5 Michigan (at Michigan) to kick off the 2007 season

– ACC Headquarters (Greensboro NC) ACC Headquarters (Greensboro NC) – University of South Carolina (SEC football)University of South Carolina (SEC football)

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ReferencesReferences– 1: 1: John E.John E.1 1 Connaughton, Ronald A Madsen, UNCC Belk School of Connaughton, Ronald A Madsen, UNCC Belk School of

Business as reported in Economic Development Quarterly, May2007, Business as reported in Economic Development Quarterly, May2007, Vol. 21 Issue 2, p185-197, 13pVol. 21 Issue 2, p185-197, 13p Sage Publications IncSage Publications Inc

– www.wachoviachampionship.com/pages/0,,5258,00.htmlwww.wachoviachampionship.com/pages/0,,5258,00.html– Hoovers.comHoovers.com– Forbes.comForbes.com– Several slides are directly supplied by power point prepared by Pearson-Prentice Several slides are directly supplied by power point prepared by Pearson-Prentice

Hall as a teaching aide to “Sports Marketing a Strategic Perspective”, 3Hall as a teaching aide to “Sports Marketing a Strategic Perspective”, 3rdrd Edition Edition by Shankby Shank