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Abstract
"In order to fully appreciate and understand the
Despite its acknowledged contribution to local, nation- dynamics and differing perspectives of sports mar-
al, and global economies, there is no consensus as to keting, it is imperative that the task of marketing
exactly what is meant by the term sports marketing. through sports also he accepted as an integral com-
This conceptual paper attempts to address this defi- ponent of the industry."
ciency via the development of a new framework that is
based upon two key dimensions: type of product and events such as high school sports and minor league ice
level of sports integration. By categorizing goods and hockey, but the prevailing thinking focuses on major
(c services as either sports products or nonsports prod- sports properties such as an NCAA Division I-A (FBS)
college football game, a NASCAR event, the Super
ucts and by differentiating between traditional strate-
1-^ gies and sponsorship-based strategies, four sports Bowl, and the Olympics. Undoubtedly, this perspective
marketing domains are identified. They are the theme- reflects the vast marketing expenditures for these
based, product-based, alignment-based, and sports- major properties.
based strategic domains. The underlying principles for With the 2008 Summer Olympics fast approaching,
developing the framework are delineated in this article, Du Wei, the Vice Chairman of the Institute of Beijing
and many examples for each strategic domain are pro- Olympic Economy, recently stated in comments direct-
vided as a means of illustrating their conceptual differ- ed to Chinese companies that "sports marketing has
ences and how they are implemented. become one of the most effective of all marketing
strategies" (Anonymous, 2006). However, Wei was not
Introduction to Sports Marketing narrowly referring to the tasks associated with the sell-
The concept of "sports marketing" is ambiguous in its ing of tickets to Olympic events. Rather he was using a
meaning for both practitioners and academicians. broader definition by suggesting that marketers of non-
Discussions about its application in the popular press sports products can benefit by becoming more involved
and in many textbooks include categories ranging from with the 2008 Olympic Games. But since these firms are
tickets to spectator sports to sport-related wagers in not selling sports products, how are their actions char-
legal gambling establishments (Shannon, 1999). Some acterized as sports marketing? In order to fully appreci-
tend to take a narrow view about what the discipline of ate and understand the dynamics and differing
sports marketing encompasses. To them, the primary perspectives of sports marketing, it is imperative that
task is one of selling tickets and putting fans in the the task of marketing through sports also be accepted as
seats at organized sports events (Sports Marketing an integral component of the industry. Coca-Cola has
Surveys, 2002), thereby equating the sports product to been associated with the Olympic Cames since 1928;
tickets for spectator sports. This definition, broadly however, this relationship was not focused on demand
applied, may include the sale of tickets for minor creation 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 for
Sam Fullerton, PhD, is a professor of marketing at appeals to consumers across a vast array of products,
Eastern Michigan University. His research interests the majority of which have little or nothing to do with
include business ethics, sponsorship, and fan behavior. sports. The marketing through sports component of
G. Russell Merz, PhD, is a professor of marketing at sports marketing tends to be overlooked by some texts
Eastern Michigan University. His research centers on the (Pitts & Stotlar, 1996). This is unfortunate because it is
use of modeling in the areas of branding and customer in this domain where many marketing practitioners are
satisfaction. employed and use their skills to implement sports mar-
90 Volume 17 Number 2 2008 Sport MarHeting Quarterly
keting strategies. A comprehensive review of recently investment" in sports entities such as athletes, events,
published sports marketing textbooks reveals inconsis- and teams (Merz & Fullerton, 2005).
tencies in the definitions of sports marketing (Van Similarly, Mullin, Hardy, and Sutton (2000) charac-
Heerden, 2001). This conceptual weakness illustrates terize sports marketing in a way that encompasses
the need for including both the marketing of sports and either dimension, or thrusts, as they describe them.
marketing through sports in a broader sports marketing Their resultant definition is based on the premise that
platform that encompasses the entire realm of sports "sport marketing consists of all activities
marketing practice. It is the purpose of this article to designed to meet the needs and wants of sports
propose a broadened framework built upon this con- consumers through exchange processes. Sport
ceptual dichotomy. marketing has developed two major thrusts: the
marketing of sport products and services directly
A "Veritable Plethora'" of Definitions to consumers of sport, and the marketing of other
Exactly what does the practice of sports marketing consumer and industrial products or services
encompass? In other words, how can we define sports through the use of sports promotions." (p. 9)
marketing? The reality is that there exists a veritable This definition was subsequently embraced in a con-
plethora of definitions of sports marketing. In fact, tribution by Gladden and Sutton (2005) in the text
some spokespersons seek to differentiate between edited by Masteralexis, Barr, and Hums (2005). Yet
"sport" marketing and "sports" marketing. Much like readers may question the concept of "sports promo-
any other business concept, the realm of sport(s) mar- tions." Exactly what actions comprise this activity? Is it
keting has continued to evolve while encompassing a limited to sponsorship or would an advertisement fea-
broader array of business activities. The disparity clear- turing a generic sports theme fit within this thrust of
ly indicates a need to re-conceptualize the construct. sport marketing? A second question concerns the
Consider the following definitions. exclusive province of sport promotion. Can strategic
The genesis of the term "sport marketing" can be initiatives other than promotion be used to create a
attributed to a story in a 1978 issue of Advertising Age. sports overlay that would fit within the realm of mar-
In that venerable publication, sport marketing was keting through sports?
characterized as "the activities of consumer and indus-
trial product and service marketers who are increasing- "Clearly, the marketing of sports products can be
ly using sport as a promotional vehicle" (Gray & impacted in a positive manner via the incorpora-
McEvoy, 2005). In their recent contribution to a com- tion of the sponsorship of a recognizable sports
pilation of sports marketing literature. Gray and property within an integrated marketing commu-
McEvoy noted that this set of activities is best charac- nications strategy."
terized as "marketing through sport; that is using sport
as a promotional vehicle or sponsorship platform for Questions such as these were addressed by Blann and
companies that market consumer, and to a lesser Armstrong (2003) when they articulated the point that
extent, industrial products" (p. 229). Gray and McEvoy the term sport marketing has been used in many con-
further noted a perceived shortcoming of that defini- texts, thereby leading to confusion as to exactly what
tion by calling attention to the absence of any reference the term really means. Not only do they incorporate
to the "marketing o/sport." The implication is that both dimensions, but they also expand one of the earli-
there is a second major dimension of sports marketing, er perspectives by stating that marketing through
one entailing "the application of marketing principles sports encompasses far more than just advertising and
and processes to market goods and services directly to public relations.
sports participants and spectators" (p. 229). The amal- Schlossberg's (1996) early book on sports marketing
gamation of marketing through sport and the marketing did not specifically define the concept; however, it
of sport provided the foundation for Gray and focused on the efforts of marketers who use sports as a
McEvoy's broad-based definition: "the anticipation, marketing platform for nonsports products. More
management, and satisfaction of consumers' wants and specifically, Schlossberg states that "sports has become
needs through the application of marketing principles a marketing medium in and of itself with the ability to
and practices" (p. 229). Presumably, this definition target, segment, promote, and cast products and serv-
encompasses both major dimensions. Some organiza- ices in heroic lights. More and more companies you'd
tions market sport products to a targeted set of con- never think of being remotely attached to sports are
sumers, while others market an array of nonsports using sports to enhance and embellish their market-
products to market segments that have a "personal ing" (p. 6). In describing the efforts of companies such
Tabie i.
Products Sold by Sports MarHeters
Sports Products
Spectator Sports Products
The game or event itself
Tickets for attendance
Viewership 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 Products
Goods and services not directly related to a sport
The assessment of the product-based strategies controversial target marketing strategy, the WNBA's
begins with descriptions of how marketers of sports Los Angeles Sparks made an overt effort to target the
products use traditional strategic initiatives in their gay and lesbian segment and supported that initiative
efforts to appeal to designated target markets. As an by staging a pep rally at an area bar that is frequented
example of an effort on the part of one marketer of by gay and lesbian consumers. Less controversial in
sports products to reach a key target market, consider nature, MLB has targeted the Hispanic segment while
an ad that was placed by the PGA for its "Tour the NBA has tried to capitalize on the emergence of
Partners" club in Golffor Women magazine. It is Yao Ming by targeting the Chinese-speaking segment
important to note that while the PGA used another ofthe sports market. Many sports organizations have
sports entity (in this case, a sports magazine) to reach a implemented relationship marketing programs
key 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 David
ment been placed in USA Today or BusinessWeek Beckham. In the aftermath ofthe 2006 World Baseball
magazine, the effort would have still qualified as a Classic, MLB decided to nurture the interest that had
product-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 exhibit
between the PGA and the publication. In a somewhat that allows "fans" to experience the game of baseball
nent of a marketer's strategy in its efforts to influence A second special form of sponsorship is that of the
consumer attitudes and preferences as well as the pur- implementation of an endorsement strategy or what
chase 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
104 Volume 17 Number 2 2008 Sport MarHeting Quarterly
effort to use an athlete's endorsement as a means of tion ofthe specific strategic initiatives (Fullerton,
cutting through the clutter. These celebrity endorsers 2007). For example, adidas sells sporting goods and it
are generally easily recognized, in part because they uses advertising that complements its traditional spon-
have achieved a high standard of performance. While sorship of FIFA and the World Cup of Soccer. This
there are many types of personalities who can perform consistency produces the synergy that is characteristic
in the role of a celebrity endorser, within the realm of ofthe sports-based domain.
sports marketing, the focus is on athletes. Indianapolis An example that features a traditional sponsorship is
Colts' quarterback Peyton Manning has become a pop- Adams Golf and the PGA. The maker of the "Tight
ular endorser. Among his recent spate of endorsements Lies" brand of clubs sponsors a lower-level regional
is one for Sony High Definition TV. It is worth noting series of golf tournaments that comprise the Tight Lies
that no NFL trademarks or logos are used in these Tour. Another example is the traditional sponsorship
advertisements because another marketer, Samsung, is for adidas and the New Zealand All Blacks (New
the official High Definition TV sponsor for the NFL. Zealand Rugby Football Union). While this is similar
Some critics may actually refer to Sony's effort as to the sponsorship ofthe World Cup of Soccer by adi-
ambush marketing das, the difference lies in the type of property with
The final special form of sponsorship involves the which the sponsor is aligned. In the former case, adidas
use of licensing to sell nonsports products. Consider is sponsoring an event; in the latter case, the marketer
the relationship between Mattel and NASCAR. By is sponsoring an organization and its famous team.
using select NASCAR trademarks, Mattel is able to While each of these examples best fits within the realm
capitalize on the sport's popularity and sell more of its of traditional sponsorship, the sponsors' contracts typ-
Hot Wheels toy cars. Consumers may also purchase a ically provide them with opportunities to sell officially
slow cooker from Rival; the marketer's "Crock Pots" licensed merchandise and to gain the services of key
bear the likeness of one of several NASCAR drivers players for endorsements. Thus, there is often an over-
including Jeff Gordon and Dale Jarrett. Major credit lap in the types of sponsorships used by any marketer
card companies have entered into licensing agreements that is operating in the sports-based domain.
with virtually every major sports league and their The three special forms of sponsorship can also be
teams. The resultant affinity credit cards can represent employed by marketers operating in the sports-based
an attractive offering for fans. Two examples are the quadrant. For example, Reebok has venue naming
Visa "NFL Extra Points" card and the MasterCard that rights for a soccer stadium in Bolton, England; the
features MLB's St. Louis Cardinals. Reebok Stadium is the result. While this strategy has
It is important to reiterate the fact that each of the seldom been chosen as an appropriate sponsorship
examples delineated represents a marketer's effort to endeavor by marketers of sports products, it may
sell nonsports products. However, the efforts reflect a become more common as new stadia are built with a
higher level of integration of sports within the market- focus on revenues from the marketers holding the
ing strategy than is in evidence with theme-based naming rights for each venue.
strategies. This is achieved through the use of some Endorsements for sports products that use athletes
form of sponsorship that ties the marketer to some as spokespersons represent the best examples of the
important sports entity. Table 5 provides a compendi- sports-based domain. Nike's personal sponsorship of
um of examples of alignment-based strategies. Michelle Wie is one of the most recent and most note-
worthy efforts of this type. Early in Tiger Woods'
Sports-Based Strategies career, Nike was criticized for its substantial payment
The final domain, sports-based strategies, is character- for the golfer's endorsements of Nike's new line of golf
ized by official sponsors of a sports propertywho are sell- products. Given the terms of their new contract, it is
ing other sports products. Because of the role of sports evident that Nike felt like the world's number one
in both the product and integration dimensions, this golfer contributed to its sales in a positive way, much
domain may reflect the greatest reliance on sports-ori- the way that Michael Jordan did throughout his illus-
ented initiatives. It may also represent the least com- trious NBA career. Marketers of spectator sports can
mon type of strategy employed by today's sports also implement endorsement-based strategies. Most
marketers. Within this domain, the most common often, these involve spokespersons who are still active
strategy features the marketer of sporting goods or in the sport. The PGA has long run a "these guys are
sports apparel in a traditional sponsorship of a sports good" campaign that features current golf stars.
team or a sporting event. Strategies in this domain can Similarly, the National Basketball Association has
be very effective when appealing to customers who are relied on its "the NBA is FANtastic" advertising theme
excited by the sports that are used in the implementa- that 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 Sponsorship
Adidas 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 Games
Real Madrid Soccer Team and a Formula 1 Race Team
Venue Naming Rights
Reebok Stadium in Bolton, England
Fila Forum in Milan, Italy
Pro Player Stadium in Miami, Florida, USA (contract terminated)
Endorsements
Nike and Michelle Wie, Tiger Woods, and Michael Jordan
Adidas and David Beckham
Burton Snowboards and Shaun White
Storm Bowling Balls and Pete Weber
Callaway Golf and Arnold Palmer
PGA Golf and Star Players ("These guys are good")
NBA and Star Players ("The NBA is FANtastic")
MLB and International Star Players (World Baseball Classic)
Licensing
Nike 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 sports
endorsements 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 of
important 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 top
tier university athletic programs. Among the most Conclusions
noteworthy are the University of North Carolina, Duke The purpose of this conceptual paper is to provide a
University, and The Ohio State University. Upper Deck grounded theory-based framework for classifying
uses a licensing agreement with professional sports activities that comprise sports marketing strategies. It
leagues and players such as those in Major League begins with the recognition that there are two distinct
Baseball as the foundation of its efforts to sell collecta- dimensions within the sports marketing industry: the
ble trading cards. It is important to understand that the marketing of sports products and marketing through
licensee is using its relationship with a sports property sports. Thus, sports marketing is not solely focused on
to 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 level
gy emanating from the two sports entities should be of sports integration into account, four strategic
evident. As noted earlier, this domain represents the domains have been identified. The types of products
one with the greatest overall immersion into the world have simply been identified as sports products and
of sports; therefore, it can be extremely effective when nonsports products. The marketers' level of integration
106 Volume 17 Number 2 2008 Sport MarHeting Quarterly
concerns its involvement with some sports entity in particular and sports in general (Merz, Fullerton, &
some form of official sponsorship. As such, the two Taylor, 2006).
broad areas for integration have been designated as In addition, the development of descriptive research
traditional and sponsorship-based. Using these dimen- to document the relative costs associated with each of
sions, the two-by-two matrix shown in Figure 1 the four domains and the identification of contingen-
emerges. This matrix provides the foundation for the cies for choosing one approach over another would
defmition and description of the four domains of the help establish useful decision-making guidelines. For
sports marketing industry. instance, strategy research can identify conditions
At the most fundamental level, theme-based strategies under which it is more advantageous for a marketer of
use the traditional components of a marketing strate- non-sports related products to use a theme-based ver-
gytarget market and marketing mix decisionsto sell sus an alignment-based strategy.
nonsports products. This can be differentiated from the Finally, the practice of sports marketing strategies
product-based strategies that represent the use of tradi- internationally is another area of fruitful inquiry. As
tional marketing mix and target marketing decisions in many ofthe examples used in this paper reveal, while
an effort to sell sports products. Representing a higher the underlying framework as a theory possesses face
level of integration, many marketers have aligned them- validity, clearly how the approaches are executed varies
selves with sports properties via some form of sponsor- dramatically in a cross-cultural context. Marketers
ship. The sponsorship-based strategies are represented engaged in global activities need guidelines about how
by the alignment-based and sports-based strategies. best to use sports marketing strategies in the interna-
Alignment-based strategies use sponsorship in the tional arena.
efforts to sell nonsports products; it is the fact that the
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Endnotes
' Howard Coseii first uttered the expression "veritable
pietiiora" in a sports context during tlie broadcast of a
Monday Nigiit Footbaii game in tlie 1970s. Tiiat phrase
seems to be an appropriate description of the current
state of sports marketing.
108 Volume 17 Number 2 2008 Sport MarHeting Quarterly
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