SPORTS MARKETING

Definition and Scope

 Current Industry Situation
• Fragmented with many segments
– Little Vertical Integration
– Even Less Horizontal Integration
• Diverse Segments
– Professional (Pros)
– Intercollegiate
– Interscholastic
– Amateur
– Commercial and Public Recreational Org.
Current Industry Situation (cont)
• Common Thread: Max. Consumer
Involvement through
– Attendance
– Participation
– Viewing
– Listening
– Buying related goods
Sports marketing consist of all
activities designed to meet needs and
wants of sport consumers through
exchange process. Sports marketing
has two major thrusts:
1. The marketing of sports to ultimate consumers.
Give some examples
2. The marketing of other consumer and industrial
products with the use of sports.
Give some examples
 INDUSTRY SIZE--$212.53B
Major Components (Billions)
TRAVEL
30
ADVERTISING
25
EQUIPMENT

20 TICKET SALES,
PARKING, CONCESSION
15 TEAM OPERATION

GAMBLING
10
SPONSORSHIPS
5
MEDICAL

0
FACILITY
COMPONENTS CONSTRUCTION
 ACADEMIC ATTENTION
• Increasing Programs of Study
• Several Professional Journals
• Special Interest Group of AMA
• Sport Business Research Network
(sbrnet.com)
Marketing Myopia

A lack of foresight in marketing ventures

What does this mean?

Symptoms of Market Myopia
in Sport

Tendency to produce and sell goods rather than

identify needs and satisfy customers

Belief that winning ⇒ sales

Confusing marketing with promotions

Shortsightedness
Marketing Myopia’s Effect
on Sport

Slow growth of professional marketing staff

Supply and demand = sobering starting salaries

See table 1.5 on page 10.

Marketing Myopia’s Effect
on Sport

Lack of market research

Major shortfall in sport marketing today:

lack of data collection/analysis

Why would teams or leagues choose

to do no research?
Marketing Myopia’s Effect
on Sport

Sales Techniques
Sales driven by quotas and commissions

Little emphasis on training, tactics, and sales as

a strategy

What are good sales techniques?

Why are good sales techniques important?