Matthew D. Shank, Mark R. Lyberger - Sports Marketing - A Strategic Perspective-Routledge (2014)

Sports Marketing
5th edition
Now in a fully revised and updated 5th edition, Sports Marketing: A Strategic Perspective
is the most authoritative, comprehensive and engaging introduction to sports marketing
currently available. It is the only introductory textbook to adopt a strategic approach,
explaining clearly how every element of the marketing process should be designed and
managed, from goal-setting and planning to implementation and control.
Covering all the key topics in the sports marketing curriculum, including consumer
behavior, market research, promotions, products, pricing, sponsorship, business ethics,
technology and e-marketing, the book introduces core theory and concepts, explains best
practice, and surveys the rapidly-changing, international sports business environment.
Every chapter contains extensive real-world case studies and biographies of key industry
figures and challenging review exercises which encourage the reader to reflect critically
on their own knowledge and professional practice. The book’s companion website offers
additional resources for instructors and students, including an instructors’ guide, test bank,
presentation slides and useful weblinks.
Sports Marketing: A Strategic Perspective is an essential foundation for any sports
marketing or sports business course, and an invaluable reference for any sports marketing
practitioner looking to improve their professional practice.
Ancillary materials are available online at www.routledge.com/cw/shank.
Matthew D. Shank is a Professor of Marketing and took office in July 2011 as the
President of Marymount University in Arlington, Virginia, USA. Prior to Marymount, he
served as Dean of the University of Dayton School of Business Administration. He came
to UD from the College of Business at Northern Kentucky University, where he spent
seventeen years as a faculty member and chair of the Department of Management and
Marketing. Prior to his tenure at NKU, Shank spent a year as a visiting professor at the
University of Mississippi and two years as a marketing research manager with Maritz
Inc. In 2003–04, he was an American Council for Education (ACE) Fellow at Vanderbilt
University. Shank’s teaching and research interests include consumer behavior, marketing
research and sports marketing. He recently served as editor of Sport Marketing Quarterly
and has published in numerous journals and conference proceedings.
Mark R. Lyberger is an Associate Professor at Kent State University in the United States,
where he serves as the undergraduate coordinator of Sport Administration and graduate
coordinator of Sport & Recreation Management. His research interests have focused
on consumer consumption behavior, sponsorship, marketing, marketing analytics, and
leadership. He currently serves as the Editor of The Journal of Sport, has published and
reviewed in numerous journals, and presented his works both nationally and internationally.
In addition, Lyberger resides on the board of a number of non-profit and for profit
organizations and currently serves as the Director for the Center of Sport, Recreation,
& Tourism Development. He has worked collaboratively with a variety of community,
educational and business organizations to enhance market and leadership development
and to conduct market, market analytics, consumer behavior and facility usage/impact
feasibility studies.
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Sports Marketing
A Strategic Perspective
5th edition
Matthew D. Shank and Mark R. Lyberger

First published 2015
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
and by Routledge
711 Third Avenue, New York, NY 10017
Routledge is an imprint of the Taylor & Francis Group, an

informa business
© 2015 Matthew D. Shank and Mark R. Lyberger
The right of Matthew D. Shank and Mark R. Lyberger to be

identified as the authors of this work has been asserted by
them in accordance with sections 77 and 78 of the Copyright,
Designs and Patents Act 1988.
All rights reserved. No part of this book may be reprinted

or reproduced or utilised in any form or by any electronic,
mechanical, or other means, now known or hereafter
invented, including photocopying and recording, or in any
information storage or retrieval system, without permission in
writing from the publishers.
Trademark notice: Product or corporate names may be

trademarks or registered trademarks, and are used only for
identification and explanation without intent to infringe.
British Library Cataloguing-in-Publication Data

A catalogue record for this book is available from the British
Library
Library of Congress Cataloging-in-Publication Data

Shank, Matthew D.
Sports marketing : a strategic perspective / Matthew D.
Shank, Mark R. Lyberger. -- Fifth edition. pages cm
Includes bibliographical references and index.
1. Sports--United States--Marketing. 2. Sports--Economic

aspects--United States. I. Lyberger, Mark R. II. Title.
GV716.S42 2014
796.068’8--dc23
2014020521
ISBN: 978-1-138-01595-1 (hbk)

ISBN: 978-1-138-01596-8 (pbk)
ISBN: 978-1-315-79408-2 (ebk)
Typeset in Univers LT by
Servis Filmsetting Ltd, Stockport, Cheshire
Additional materials are available on the companion website at www.routledge.co.uk/cw/shank

Shank: To Robert Ilseman and Donald Welling, for their dedication to youth sports
Lyberger: To all those who have supported my sporting endeavors, foremost, my
father, wife, son and daughter
Brief Contents
Preface xix
Acronyms xxvi
List of figures and tables xxviii
PART I: CONTINGENCY FRAMEWORK FOR STRATEGIC SPORTS

MARKETING
Chapter 1 Emergence of sports marketing 3
Chapter 2 Contingency framework for strategic sports
marketing 46
PART II: PLANNING FOR MARKET SELECTION DECISIONS

Chapter 3 Research tools for understanding sports consumers 93
Chapter 4 Understanding participants as consumers 134
Chapter 5 Understanding spectators as consumers 175
Chapter 6 Segmentation, targeting, and positioning 209
PART III: PLANNING THE SPORTS MARKETING MIX

Chapter 7 Sports product concepts 261
Chapter 8 Managing sports products 302
Chapter 9 Promotion concepts 343
Chapter 10 Promotion mix elements 375
Chapter 11 Sponsorship programs 432
Chapter 12 Pricing concepts and strategies 497
PART IV: IMPLEMENTING AND CONTROLLING THE STRATEGIC SPORTS

MARKETING PROCESS
Chapter 13 Implementing and controlling the strategic sports
marketing process 541
Appendix A: Career opportunities in sports marketing 591

Appendix B: Some sports marketing sites of interest on the Internet 603
Glossary 607
Illustration credits 625
Index 650
vii
Contents
Preface xix
Acronyms xxvi
List of figures and tables xxviii
PART I: CONTINGENCY FRAMEWORK FOR STRATEGIC SPORTS

MARKETING
CHAPTER 1 Emergence of sports marketing 3

What is sports marketing? 5
Understanding the sports industry 6
Historical development of sports marketing in (North) America 6
Sport as entertainment 10
A marketing orientation 11
Growth of the sports industry 12
The structure of the sports industry 17
The consumers of sport 18
The sports product 22
Career spotlight: Chris Ferris 23
Different types of sports products 24
The multidimensional nature of the sports product 31
Producers and intermediaries 32
Sports marketing hall of fame: Mark McCormack 35
Basic marketing principles and processes applied to sport 36
The sports marketing mix 36
The exchange process 37
The strategic sports marketing process 39
Girls get their game on – with great gear: sports teams
cater to women fans with new lines of feminine fashion 39
Summary 40
Key terms 42
Review questions 42
Exercises 42
Internet exercises 43
viii Endnotes 43
Contents
CHAPTER 2 Contingency framework for strategic sports marketing 46
NBA Releases 2011–2012 Regular Season Schedule 47
Contingency framework for strategic sports marketing 50
Contingency approaches 50
Internal and external contingencies 53
Internal contingencies 53
Vision and mission 54
Organizational objectives and marketing goals 55
Organizational strategies 57
Organizational culture 62
External contingencies 63
Competition 63
Technology 64
On the industry’s radar 66
Cultural and social trends 72
Physical environment 74
Political, legal, and regulatory environment 75
Big-time college sports is an out-of control monster 77
Demographics 78
Ethnic studies: MLB forms diversity comittee 80
The economy 81
Monitoring the external contingencies 83
Assessing the internal and external contingencies: SWOT analysis 84
Summary 86
Key terms 87
Review questions 88
Exercises 88
Endnotes 89
PART II: PLANNING FOR MARKET SELECTION DECISIONS
CHAPTER 3 Research tools for understanding sports consumers 93

Marketing research in action: the Gary Southshore RailCats 94
Hitting a home run with the digital generation 96
The marketing research process 99
Defining the problem or opportunity 99
Case study: a sponsorship measurement solution 101
Choosing the research design type 105
Identifying data collection techniques 107
ix
Contents
Secondary data 108
Primary data 112
Drivers should take a spin online, study shows – sports
business journal 116
Designing data collection instruments 118
Designing the sample 122
Data analysis 124
Preparing a final report 126
Case study: ESPN; survey shows split on racial opportunity 126

Summary 130
Key terms 132
Review questions 132
Exercises 132
Endnotes 133
CHAPTER 4 Understanding participants as consumers 134

Model of participant consumption behavior 137
Participant decision-making process 137
Types of consumer decisions 143
Psychological or internal factors 144
Personality 144
Motivation 146
Perception 151
Learning 153
Attitudes 155
Sociological or external factors 156
Culture 156
Spotlight on international sports marketing: Sport England 157
Social class 160
Reference groups 160
Sports marketing hall of fame: The Babe: Babe Didrikson
Zaharias 162
Family 162
High school sports participation tops 7.6 million, sets record 164
Situational Factors 166
P90X vs. insanity: which is the best for you? 168
Summary 170
x
Contents
Key terms 171
Exercises 172
Endnotes 173
CHAPTER 5 Understanding spectators as consumers 175

Factors influencing attendance 180
Fan motivation factors 181
Baseball suffers drop in attendance 184
Sports marketing hall of fame: David Stern 187
Sports wagering 188
Game attractiveness 189
Economic factors 189
Competitive factors 189
Demographic factors 190
Stadium factors 192
Value of sport to the community 197
Career spotlight: Marc Reeves 198
Sports involvement 199
Spotlight on international sports marketing: a comparative
analysis of spectator involvement: United States vs.
United Kingdom 200
Fan identification 201
Summary 203
Key terms 204
Exercises 205
Endnotes 206
CHAPTER 6 Segmentation, targeting, and positioning 209

Segmentation 210
Bases for segmentation 210
Technical report – Sport England Market Segmentation 211
Generation M2: media in the lives of 8- to 18-year-olds 218
espnW: a brand for female athletes 222
The IWFL and the history of women’s tackle football 225
xi
Contents
NFL may be hitting stride with female fans 226
Move over Fútbol. The NFL scores big with Latinos 228
Spotlight on international sports marketing: NBA
continues to grow internationally 236
Choosing more than one segment 240
Target markets 241
Evaluation of target markets 242
Positioning 245
Repositioning 248
Baseball continues to assist storm relief efforts 249
Summary 253
Key terms 253
Exercises 254
Endnotes 256
PART III: PLANNING THE SPORTS MARKETING MIX
CHAPTER 7 Sports product concepts 261

Defining sports products 262
Goods and services as sports products 263
Career Spotlight: Rodger Collins, President Packaged
Beverages, Dr. Pepper Snapple Group 264
Classifying sports products 268
Product characteristics 270
Spotlight on international sports marketing: the 5 worst
athlete-endorsed products of all time 271
Branding 272
Spotlight on sports marketing ethics: NCAA Native
American mascot controversy 274
Miami Marlins attendance reverts to old Sun Life Stadium
levels 278
Sports Marketing Hall of Fame: Phil Knight 282
Licensing 284
Quality 289
Product design 293
Summary 296
xii
Contents
Key terms 298
Exercises 299
Endnotes 299
CHAPTER 8 Managing sports products 302

Nike announces new Nike+ FuelBand – measuring movement to
make life a sport 303
New sports products 304
Sports Marketing Hall of Fame: Bill Rasmussen 305
Types of new products 305
Spotlight on Sports Marketing Ethics: college sports have
become too commercialized 308
The new product development process 311
Idea generation 312
Idea screening 312
Analysis of the sports product concept or potential 312
Developing the sports product 313
Test marketing 315
Commercialization 315
New product success factors 315
Product life cycle 317
Introduction 319
Growth 319
Fantasy sports becoming big business as popularity
continues to rise 320
Maturity 327
John McEnroe's bold move to revive US tennis 327
Decline 329
Other life cycle considerations 329
Spotlight on International Sports Marketing: X Games
global expansion continues with TV deals in new host markets,
syndication deals in multiple other countries 333
Diffusion of innovations 336
Types of adopters 337
Summary 338
Key terms 340
Exercises 340
xiii
Contents
Endnotes 341
CHAPTER 9 Promotion concepts 343

Communications process 345
Sports Marketing Hall of Fame: Bill Veeck 345
Source 346
Encoding 348
Spotlight on Sports Marketing Ethics: endorsements
remain buyers’ market 349
Message 352
Medium 353
Decoding 354
Spotlight on Sports Marketing Ethics: how impact of
“Tiger Recession” changed athlete marketability 355
Receiver 357
Feedback 357
Noise 358
Promotion planning 359
Target market considerations 359
Push strategy 359
Pull strategy 359
Promotional objectives 360
The hierarchy of effects 360
Establishing promotional budgets 362
Choosing an integrated promotional mix 368
Summary 369
Key terms 371
Exercises 371
Endnotes 372
CHAPTER 10 Promotion mix elements 375

Advertising 377
Advertising objectives 378
Advertising budgeting 380
Creative decisions 380
Spotlight on Sports Marketing Ethics: Sex sells? Trend
may be changing 383
Spotlight on Sports Marketing Ethics: Lance Armstrong’s

xiv
Contents
fall from athletic grace doesn’t diminish his greatest
triumph 390
Armstrong faces $200 million salary loss with reputation hit 393
Media strategy 396
Big 4 jersey rights value put at $370M 401
Media scheduling 408
Personal selling 409
Career Spotlight: Kevin Rochlitz, Vice President, National
Partnerships and Sales, Baltimore Ravens 410
The strategic selling process 411
Sales promotions 415
Public relations 421
NBA cares evolving after 5 years of service 424
Summary 427
Key terms 428
Exercises 429
Endnotes 429
CHAPTER 11 Sponsorship programs 432

Scheuring Speed Sports announces partnership with Ford Motor
Company 433
Growth of sponsorship 433
Cleveland Cavaliers 2013–2014 promotional schedule 437
Adelaide United energised by new sponsorship 440
Designing a sports sponsorship program 441
Understanding why sponsorship continues to grow 442
Sponsorship objectives 448
Awareness 448
Competition 448
London 2012 sponsors and ambush – and the lessons for
Rio 2016 450
Beats by Dre gives headphones to British athletes,
angering IOC 453
Spotlight on Sports Marketing Ethics: BRAZIL: Congress
adopts legislation to curb ambush marketing during 2016
summer Olympics 454
xv
Contents
Behind the scenes at the 2013 Waste Management Open 461
Lance Armstrong Nike contract terminated 463
Sponsorship budgeting 465
Choosing the sponsorship opportunity 466
Fenton High School looking at boosting corporate
sponsorship of athletics 479
Hot Seahawks add Boeing, Starbucks deals 481
Spotlight on Sports Marketing Ethics – Nike won't drop Penn
State's Paterno, so we should drop Nike 487
Sponsorship implementation and evaluation 488
Career Spotlight: Lesa Ukman and IEG 489
Summary 490
Key terms 492
Exercises 492
Endnotes 493
CHAPTER 12 Pricing concepts and strategies 497

What is price? 498
Deal to end lockout reached 500
The determinants of pricing 503
Sports Marketing Hall of Fame: Pete Rozelle 504
Internal factors 504
Spotlight on Sports Marketing Ethics: astronomical athlete
salaries: are they worth it? 509
External factors 516
Consumer demand 516
Estimating demand 517
Economy 522
Competition 523
Legal issues 523
The NFL vs. ticket scalpers: Super Bowl edition 524
Technology 524
New Era Tickets uses iovation to keep scalpers and
fraudsters out of the arena 525
Price adjustments 528
xvi
Contents
Orioles raise season-ticket prices slightly, expand variable-
pricing system 529
Price increases and reductions 530
Price discounts 532
Summary 533
Key terms 534
Exercises 535
Endnotes 536
PART IV: IMPLEMENTING AND CONTROLLING THE STRATEGIC

SPORTS MARKETING PROCESS
CHAPTER 13 Implementing and controlling the strategic sports

marketing process 541
Dew action sports tour 542
Implementation 543
Busy offseason ahead for Arena Football League: fan take 544
Communication 546
Sports Marketing Hall of Fame: Gary Davidson 550
Staffing and skills 551
Coordination 553
Career Spotlight: Megan Dotson, Director of Marketing,
Greenville Road Warriors (hockey) 554
Rewards 556
Information 558
Creativity 559
The 100 worst things in sports 560
Budgeting 573
Control 574
Planning assumptions control 575
Process control 576
How athletes are fighting for endorsement dollars 577
Contingency control 584
Summary 586
Key terms 587
xvii
Contents
Exercises 588
Endnotes 588
Appendix A: Career opportunities in sports marketing 591
Job opportunities in sports marketing 592
Cover letters and resumés 596
Interviewing 598
Where to look for additional information 601
Appendix B: Some sports marketing sites of interest on the Internet 603
Glossary 607
Illustration credits 625
Index 650
xviii
Preface
Overview
One of the greatest challenges for sports marketers is trying to keep pace with the
ever-changing, fast-paced environment of the sports world. For example, since the
first edition of this text was published in 1999, amazing changes have taken place
and challenges to sports marketers emerge daily. First, costs and valuations have
been rising quickly. For example, Merrill Lynch estimated Qatar will spend over $65
billion to prepare for the 2022 world soccer competition while Brazil’s projected
budget for hosting the World Cup is $13.3 billion and $18 billion for the Olympics, not
counting projected public and private expenditures needed before the competitions.
Furthermore, valuations of sport franchises have skyrocketed, Steve Ballmer’s recent
$2 billion offer for the Los Angeles Clippers, a bid nearly four times that of the last
record sale, underscores the logical tendency and nonchalance in which sports brands
are valued.
Athletes’ salaries continue to escalate; for example, even though the Philadelphia
Phillies have accumulated player salaries that encompass three of the top ten highest
paid players in MLB, $25 million for Ryan Howard and Cliff Lee and $23.5 million
for Cole Hamels, they rank third behind the N.Y. Yankees and L.A. Dodgers in total
team expenditures. For the first time since 1998, the Yankees no longer can claim
baseball’s spending crown, that honor goes to the Dodgers in a runaway – with an
estimated payroll of more than $235 million while the Yankees estimated payroll was
just shy of $204 million.
To offset these costs leagues and teams alike are procuring lucrative television and
media contracts and continue to expand and amend facilities. For example, the NFL
recently secured extension deals with ESPN, CBS and FOX. ESPN recently agreed to
expend $1.9 billion per year for the rights to broadcast Monday Night Football. CBS,
which has aired NFL broadcast since 1956, recently agreed to pay $1 billion per year
for the rights to broadcast the AFC Conference games while Fox Sports agreed to a
$1.1 billion per year expenditure for NFC Conference broadcast starting in 2014. These
expenditures top the SkySport’s agreement, which amounted to €760 million ($1.22
billion) per year for broadcasting the Premier League.
To remain attuned to market demand sport teams are constantly on the lookout for
ways to improve the sporting landscape, often through the use of public subsidies.
Stadium new builds and/or retrofits continue to occur at a rapid pace with escalated
costs. The Sochi Winter Olympics recently became the most expensive Olympics in
history, with an estimated expenditure of $51 billion. The newest US pro stadiums
have cost estimates of $975 million (Minnesota Viking Stadium), $1.15 billion
(Cowboys Stadium) and $1.6 billion (Metlife Stadium). Furthermore, on the collegiate
landscape, college sports organizations continue to build bigger, nicer, state of the art
xix
Preface
facilities to compete in the “competitive” arms race. Industry experts estimate that
more than $17 billion have been spent on stadium upgrades in the last decade.
Each ticketholder will also pay more to attend the games in these plush new facilities.
Ticket prices continue to increase and to drive the common fan out of the sport arena.
For instance, the average seat price at an NBA game more than doubled from $22.52
in 1991 to $51 in 2014. But this may not be the largest problem in sports, as scandals
emerge daily. For example, Donald Sterling’s racial transgressions, the Penn State
child sexual abuse scandal, Tiger Woods and his marital woes, Rick Pitino’s extortion
trial, the Ohio State football team tattoos-for-memorabilia, and the list goes on and on.
The one constant in this sea of change is the incredible appetite of consumers for
sports. We get sports information on the Webwatch, sports in high definition on
network and cable TV, read about sports in the newspaper and sports magazines,
talk to friends about sports, purchase sports merchandise, participate in sports (both
fantasy and real), and attend sporting events in record numbers. The sports industry
has experienced tremendous growth and is estimated by AT Kearney to be a $480-
$620 billion industry worldwide. Moreover, the sports industry is flourishing around
the globe. The expansion of the sports industry has triggered a number of important
outcomes: more sports-related jobs being created, and more students interested in
careers in the sports industry. As student interest grows, demand for programs in
sports administration and classes in sports marketing have also heightened.
In this book, we will discover the complex and diverse nature of sports marketing.
Moreover, a framework will be presented to help explain and organize the strategic
sports marketing process. Even if you are not a sports enthusiast, you should become
excited about the unique application of marketing principles and processes that pertain
to the sports industry.
Why this book?

Programs and courses in sports marketing have emerged at many universities across
the country. Surprisingly, few sports marketing textbooks exist and not one is written
from a strategic marketing perspective. In the first edition of this book, Dr. Shank
sought to fill this void. The second edition represented an effort to improve the first
edition and capitalize on its strengths. The third edition attempted to continuously
improve the content and focus on the current relevant issues in sports marketing. The
fourth edition provided more focus on the important issues in sports marketing theory
and practice. Our goals for the fifth edition are to provide:
X A framework or conceptual model of the strategic marketing process that can be
applied to the sports industry. The contingency framework is presented as a tool
for organizing the many elements that influence the strategic sports marketing
process and recognizes the unpredictable nature of the sports industry. In addition,
the contingency framework allows us to explore complex relationships between
the elements of sports marketing.
X A more concise and focused approach describing the internet and social media and
their relationship to understanding strategic sports marketing. Advances in internet
and social networking platforms, though constantly changing and often considered
evolutionary, continue to have an impact on organizational strategy. They have
had a dramatic impact on the delivery and use of market strategies. The continued
emergence of social media as a viable platform has generated new and innovative
ways to create dialog and receive feedback, as well as further enhance methods of
xx engaging the consumer.
Preface
X An appreciation for the growing emphasis on the globalization of sport. As
such, international sport topics are integrated throughout the text, and are also
highlighted in chapters in the “Spotlight on International Sports Marketing.”
X An examination of current research in the area of sports marketing. The study of
sports marketing is still in its relative infancy and academic research of interest
to sports marketers (e.g., sports sponsorships, using athletes as endorsers, and
segmenting the sports market) has grown exponentially since the first edition of
this text. It is important that students learn how academic research is applied to
the “real world” of sports marketing.
X An awareness of the many job opportunities available in the sports industry. The
one common denominator for all sports business students is the desire to secure
their first job after graduation and start their careers. In this edition, we focus on
several successful sports marketers who provide perspective about how and why
they got started in the industry. Also, this edition retains an appendix devoted to
careers in sports marketing.
X A balanced treatment of all aspects of sports marketing at all levels. This book
attempts to capture the diverse and rich nature of sports marketing by covering the
marketing of athletes, teams, leagues, and special events. Although it is tempting
to discuss only “major league” sports because of their intense media coverage,
the book explores different sports (e.g., cricket and women’s football) and various
levels of competition (e.g., collegiate and recreational). Moreover, the book
discusses the activities involved in marketing to participants of sports – another
area of interest to sports marketers.
X An introduction of the concepts and theories unique to sports marketing and
a review of the basic principles of marketing in the context of sports. Even
though many of the terms and core concepts are repetitive, they often take on
different meanings in the context of sports marketing. Consider the term sports
involvement. Although you probably recognize the term product involvement
from your principles of marketing and/or consumer behavior class, what is sports
involvement? Is involvement with sports based on participation or watching
sports? Is involvement with sports deeper and more enduring than it is for other
products that we consume? How can sports marketers apply sports involvement
to develop a strategic marketing plan? As you can see, the core marketing concept
of involvement in the context of sports presents a whole new set of interesting
questions and a more comprehensive understanding of sports marketing.
X Comprehensive coverage of the functions of sports marketing. While some texts
focus on specialized activities in sports marketing, such as sports media, this
book seeks to cover all the relevant issues in designing an integrated marketing
strategy. Extensive treatment is given to understanding consumers as spectators
and participants. In addition to planning the sports marketing mix (product, price,
promotion, and place), we will examine the execution and evaluation of the
planning process.
Ground rules
This text is organized into four distinct but interrelated parts. Each part represents an
important component in the strategic sports marketing process.
xxi
Preface
Part I: Contingency Framework for Strategic Sports Marketing

In Chapter 1, we introduce sports marketing and illustrate the breadth of the field.
In addition, we will take a look at the unique nature of sports products and the
sports marketing mix. Chapter 2 presents the contingency framework for strategic
sports marketing. This chapter also highlights the impact of the internal and external
contingencies on the strategic sports marketing process. Internal contingencies such
as the sports organization’s mission and organizational culture are considered, as are
external contingencies like competition, the economy, and technology.
Part II: Planning for Market Selection Decisions

Chapter 3 presents an overview of the tools used to understand sports consumers
– both participants and spectators. Each step in the marketing research process is
discussed, illustrating how information can be gathered to aid in strategic decision-
making. In Chapters 4 and 5, respectively, participants and consumers of sport are
studied. Chapter 4 examines the psychological and sociological factors that influence
our participation in sport, while Chapter 5 looks at spectator issues such as fan
motivation. In addition, we will discuss the relationship between the participant
and spectator markets. Chapter 6 explores the market selection decisions of
segmentation, targeting, and positioning in the context of sport.
Part III: Planning the Sports Marketing Mix

Chapters 7 through 12 explain the sports marketing mix, the core of the strategic
marketing process. Chapters 7 and 8 cover sports product issues such as
brand loyalty, licensing, and the new product development process. Chapter
9 introduces the basic promotion concepts, and Chapter 10 gives a detailed
description of the promotion mix elements of advertising, public relations, personal
selling, and sales promotions. Chapter 11, the final chapter on promotion, is devoted
to designing a sports sponsorship program. Chapter 12 tackles the basic concepts
of pricing.
Part IV: Implementing and Controlling the Strategic Sports

Marketing Process
While the previous sections have focused on the planning efforts of the strategic
marketing process, Part IV focuses on the implementation and control phases of
the strategic marketing process. Chapter 13 begins with a discussion of how sports
organizations implement their marketing plans. In this chapter, we see how factors
such as communication, motivation, and budgeting all play a role in executing the
strategic plan. We also examine how sports marketers monitor and evaluate the
strategic plans after they have been implemented. Specifically, three forms of control
(process, planning assumption, and contingency) are considered.
Pedagogical advantages of sports marketing

To help students learn about sports marketing and make this book more enjoyable
to read, the following features have been retained from previous editions of Sports
Marketing: A Strategic Perspective.
xxii
Preface
X Text organized and written around the contingency framework for strategic sports
marketing
X Chapters incorporating global issues in sport and how they affect sports marketing
X Sports Marketing Hall of Fame boxes featuring pioneers in the field integrated
throughout the text
X Text incorporating up-to-date research in the field of sports marketing
X Internet exercises at the end of each chapter
X Experiential exercises at the end of each chapter that ask you to apply the basic
sports marketing concepts and perform mini-research projects
X Vignettes throughout the text to illustrate core concepts and make the material
come to life
X Detailed glossary of sports marketing terms
X Use of ads, internet screen captures, and photos to illustrate core concepts of
sports marketing
X Appendix describing careers in sports marketing
X Appendix presenting Internet addresses of interest to sports marketers
Enhancements to the fifth edition

While we have attempted to retain the strengths of the previous editions of Sports
Marketing: A Strategic Perspective, we also hoped to improve the fifth edition
based on the comments of reviewers, faculty who adopted the text, and most
importantly, students who have used the book. This edition includes the following
features:
X Up-to-date examples illustrate the core sports marketing concepts in the text. As
mentioned previously, the sports industry is rapidly changing and nearly 80 percent
of the examples introduced in the previous editions are now obsolete. It was our
goal to find new, relevant examples to illustrate key points in every chapter of the
text. These new examples are meant to keep the book fresh and keep students
engaged.
X New advertisements, web captures and illustrations have been incorporated into
each chapter to highlight key sports marketing concepts and make the material
more relevant for students. These ads and photos are examples of sports
marketing principles that have been put into practice and bring the material in the
text “to life.”
X New spotlights on careers in sports marketing introduce students to successful
sports marketers and their jobs.
X The spotlights on international sports marketing have been revised and updated for
the fifth edition to highlight this key area of growth in the sports industry.
X New screen captures of relevant web sites illustrate key concepts. Because social
media is now playing such a large role in sports marketing, screen captures from
various web sites have been incorporated throughout the text to bring the material
to life for students. In addition, social media/internet exercises appear at the end
of each chapter, and discussions of these items as an emerging tool for sports
marketers appear throughout.
X New exercises have been created that afford instructors the opportunity to further
integrate real life up-to-date information utilizing auxiliary materials such as Sport
Business Journal, Sport Business Daily, Sport Business and Bleacher Report.
X New spotlights on ethical issues are integrated throughout the text. Hopefully, this
xxiii
Preface
will generate lively discussion in the classroom and make students more aware of
the ethical issues that they will confront in the workplace.
Instructional support
Various teaching supplements are available to accompany this textbook. They consist
of an Instructor’s Manual, Test Item File, and PowerPoint presentation. These items
may be found online only at www.routledge.com/cw/shank.
Acknowledgments
The new edition of any textbook is a challenge. In fact, much more of a challenge than
people think. Typically colleagues joke that a new edition just means changing dates
and examples. Nothing could be farther from the truth, and the fifth edition posed
significant professional hurdles and opportunities. On the professional side, the fifth
edition of Sports Marketing: A Strategic Perspective is the most significant revision
of the text since its inception. Most importantly, I have added a co-author, Dr. Mark
Lyberger, who adds a wealth of expertise and brings a fresh new perspective to the
text. We also welcome our new publisher, Routledge. In addition, during the fifth
edition, I moved from my position as Dean of the Business School at the University
of Dayton to President of Marymount University. Obviously, a significant professional
commitment. Before going any further, I have to thank my wife Lynne for her patience
and support. The project could never have been completed without the expertise and
encouragement of many others. Although there are countless people to thank, I was
greatly assisted by the thoughtful reviews that undoubtedly improved all the editions
of this text. These reviewers include:
Ketra Armstrong, The Ohio State University
Robert E. Baker, Ashland University
Ronald Borrieci, University of Central Florida
Chris Cakebread, Boston University
James Cannon, University of South Alabama
Joseph Cronin, Florida State University
Kathleen Davis, Florida Atlantic University
Eddie Easley, Wake Forest University
Renee Florsheim, Loyola Marymount University
Pat Gavin, New Mexico State University
Lynn Kahle, University of Oregon
Patricia Kennedy, University of Nebraska, Lincoln
Jerry Lee Goen, Oklahoma Baptist University
Deborah Lester, Kennesaw State University
Mark Lyberger, Kent State University
Ann Mayo, Seton Hall University
Mark McDonald, University of Massachusetts, Amherst
Stephen McKelvey, J.D., University of Massachusetts, Amherst
xxiv
Preface
David Moore, University of Michigan
Susan Logan Nelson, University of North Dakota
Gregory Pickett, Clemson University
Michael Smucker, Texas Tech University
Joseph Terrian, Marquette University
Lou Turley, Western Kentucky University
In addition to the formal reviews, we are especially grateful to the graduate students
and staff who have contributed their time and efforts to enhance the delivery and
completion of the fifth edition, in particular Tami Gingerich, Katie Goldring, Kelly
Leacoma, Danielle Novotny, Nick Pangio, Taryn Schmidt, Jennifer Schultz, and Josh
Selden. We received informal comments from many of you who adopted the first
four editions; we thank you for your feedback. We have tried to incorporate all of
your suggestions and comments. We are very grateful to our colleagues both old
and new at the University of Dayton, Kent State University, Marymount University,
and Northern Kentucky University (NKU) who have supported us throughout this
process. Additionally, thanks go out to all of our students who have helped fuel our
interest in sports marketing. We would like to thank all of those sports business and
management students who have used the book (and other universities) and pointed
out their likes and dislikes.
One of the greatest challenges facing authors and publishers is the procurement
and protection of intellectual work. Special thanks to Emma Davis for her assistance
with securing copyright permissions for the text. In a world where technology and
dissemination continue to precede copyright law this undertaking is no easy task,
therefore, for her perseverance, we are forever grateful. Furthermore, a number of
organizations have been very helpful in providing permission to use ads and articles
throughout the text. Special thanks to all the individuals within these organizations
who have made this book more meaningful and readable for students.
We would also like to thank Alison Jones for without her meticulous reading, due
diligence, and expedient editing this edition would not have become a reality. We
are grateful for her helpful suggestions, advice and constructive comments which
ultimately enhanced the final presentation of materials within the fifth edition. Finally,
we are indebted to the entire Routledge team for their encouragement and making
the fifth edition a reality. Special thanks go to William Bailey, and Hannah Champney.
Last, but certainly not least, thank you to Simon Whitmore for his superb project
management.
xxv
Acronyms
Sports-related acronym list for Sports Marketing
ABA American Basketball Association
ACC Atlantic Coast Conference
ATP Association of Tennis Professionals
BCS Bowl Championship Series
CAPS Coalition to Advance the Protection of Sports Logos
CSTV College Sports TV
FBS Football Bowl Subdivision
FCI Fan Cost Index
FIFA Fédération Internationale de Football Association
IBF International Boxing Federation
IOC International Olympic Committee
IPO Initial Player Offerings
LPGA Ladies Professional Golf Association
MAC Mid-American Conference
MLB Major Baseball League
MLBAM MLB Advanced Media
MLS Major League Soccer
MWC Mountain West Conference
NAIA National Association of Intercollegiate Athletics
NASCAR National Association for Stock Car Auto Racing
NBA National Basketball Association
NBDL National Basketball Development League
NCAA National Collegiate Athletic Association
NFL National Football League
NFLP NFL Properties
NFLPA National Football League Players Association
NHL National Hockey League
NHL-ICE NHL-Interactive Cyber Enterprises
NJCAA National Junior Collegiate Athletic Association
NLL National Lacrosse League
NSGA National Sporting Goods Association
PCT Psychological Commitment to the Team
PGA Professional Golf Association
PRCA Pro Rodeo Cowboys Association
PSL Personal Seat Licenses
SEC South Eastern Conference
SFIA Sports & Fitness Industry Association
SGMA Sporting Goods Manufacturers Association
xxvi
Acronyms
SMRI Sports Marketing Research Institute
UFC Ultimate Fighting Championship
USBA U.S. Bungee Association
USOC United States Olympic Committee
WAC Western Athletic Conference
WBA World Boxing Association
WBC World Boxing Council
WBO World Boxing Organization
WHA World Hockey Association
WNBA Women’s National Basketball Association
WWE World Wrestling Entertainment
YFF Youth Football Fund
General acronym list

AARP American Association of Retired People
AIO Activities, Interests, and Opinions
BIRGing Basking In Reflected Glory
BLS Bureau of Labor Statistics
CIM Chartered Institute of Marketing
CORFing Cutting Off Reflective Failure
CORSing Cutting Off Reflected Success
FIU Florida International University
FSI Free Standing Insert
GNP Gross National Product
IMG International Management Group
IPR Institute for Public Relations
JND Just Noticeable Difference
PLC Product Life Cycle
POP Point of Purchase
PPV Pay-Per-View
PRIZM Geodemographic segment set for the USA (62 segments)
PRIZM NE New Evolution – updated version of PRIZM (66 segments)
ROI Return on Investment
SMART Specific, Measurable, Attainable, Reachable, Timely
SMSA Standard Metropolitan Statistical Area
SMU Southern Methodist University
STP Segmenting, Targeting, Positioning
SRS Sponsorship Research and Strategy
SWOT Strengths, Weaknesses, Opportunities, Threats
TQM Total Quality Marketing
UAB University of Alabama at Birmingham
UCF University of California – Florida
UTEP University of Texas at El Paso
UTSA University of Texas at San Antonio
VALS Values and Lifestyles
xxvii
List of illustrations
Figures
1.1 Simplified model of the consumer–supplier relationship in the sports
industry 18
1.2 Individual vs. corporate consumer 19
1.3 Top sports Web sites 29
1.4 The multidimensional nature of sports products using two dimensions 31
1.5 Model of the sports marketing exchange process 38
2.1 Contingency framework for strategic sports marketing 52
2.2 Strategic sports marketing process 53
2.3 Relationship between levels of strategy 57
3.1 Marketing research process 99
3.2 Descriptive research designs 106
3.4 Designing a questionnaire 119
3.5 New Year’s resolution survey 120
4.1 Model of participant consumption behavior 138
4.2 Maslow’s hierarchy of needs 148
4.3 Modal of operant conditioning 153
4.4 Model of cognitive learning 154
4.5 Model of attitude formation 155
4.6 Model of consumer socialization 158
4.7 The structure of social class 161
5.1 Relationship between spectator and participant markets 177
5.2 Model of sportscape 193
5.3 Model for fan identification 201
6.1 Pro-sports that appeal to teenagers 216
6.2 Modern family life cycle 231
6.3 One-dimensional perceptual map of sports 247
6.4 Two-dimensional perceptual map of sports 248
7.1 The goods–services continuum 266
7.2 Product characteristics 271
7.3 The branding process 276
7.4 The conceptual model for assessing brand equity 277
7.5 Relationship among product design, technology, and product quality 294
8.1 Product life cycle 317
8.2 Selected product life cycle patterns 330
8.3 Model of the rate of diffusion 337
9.1 Communication process 346
9.2 Hierarchy of effects 361
10.1 Designing an advertising campaign 377
xxviii
11.1 The sponsorship process 442
11.2
11.3
12.1
Sponsorship match-up
Sports sponsorship acquisition model
Internal and external influences on pricing
463
475
503
1
12.2 Price elasticity of demand 516
12.3 Consumer pricing evaluation process 519
13.1 Implementation phase of the strategic sports marketing process 544
13.2 Control phase of the strategic sports marketing process 574
Tables
1.1 The power ranking – 25 coolest minor league stadiums 12
1.2 NFL media rights 20
1.3 Most popular sports and fitness activities based on core participation 20
2.1 College sports TV: the main players 63
2.2 Top 10 sports video games 73
2.3 Assessing external contingencies 85
3.1 Issues addressed at initial research meeting 100
3.2 Marketing research proposal outline 105
3.3 North American Golf Report table of contents 110
3.4 Standardized sports marketing information studies 110
3.5 Planning and implementing focus groups 115
3.6 Comparison of methods of administration 120
3.7 Frequency distribution or one-way table 125
3.8 Two-way table of cross-tabulation 125
4.1 Sport participation changes from 2013 135
4.2 Golfer’s self-reported traits and personality characteristics 146
4.3 Why people participate in sports 147
4.4 Segmentation of runners by motives 147
4.5 Core American values 159
4.6 Household incomes for selected sports and activities 161
5.1 Differences between spectators and participants 180
5.2 Who’s a sports fan? 191
5.3 Eight value dimensions of sport to the community 198
5.4 Favorite sports to watch by interest in sports news 199
6.1 Common bases for segmentation of consumer markets 211
6.2 Most popular sports/athletic/fitness activities for ages 55+ 220
6.3 AIO dimensions 234
6.4 Lifestyle Analysis Report: Lifestyle Ranking Index 235
6.5 Five market segments for golf participants 240
6.6 PRIZM cluster categories and descriptions 242
6.7 Market segment vs. market niches 243
6.8 Six dimensions or attributes of sports 248
7.1 Wilson Sporting Goods product mix 269
7.2 Psychological commitment to team scale 283
7.3 Importance weights allocated to the five TEAMQUAL dimensions 291
7.4 Quality dimensions of goods 292
8.1 New product screening checklist 313
8.2 Concept test for the Beach Soccer World Wide Tour 314
8.3 Critical success factors for new products 316
xxix
8.4 Extending the product life cycle 327
9.1 Creating a more effective message 353
9.2 Making media decisions 354
9.3 Most watched programs in U.S. television history 354
9.4 Top 50 sports advertisers 364
9.5 Evaluating the promotional mix elements 368
10.1 The creative brief and the client’s role in it 381
10.2 50 most marketable active athletes 388
10.3 Guidelines for using sports celebrities as endorsers 393
10.4 Profiles of major media types 397
10.5 World regions by Internet penetration 404
10.6 Benefits of personal selling 409
11.1 Official sponsors of NASCAR 436
11.2 Castrol North America – sponsorship criteria requirements 445
11.3 Sponsorship opportunities for the Wyndham Championship sponsorship
levels 446
11.4 NCAA women’s sports sponsorship growth 458
11.5 Importance of corporate sports sponsorship objectives by sports
sponsorship type 459
11.6 Importance of sponsorship objectives 465
11.7 Wegmans LPGA Championship sponsorship levels 467
11.8 University merchandise sales leaders in 2013 483
11.9 Why sponsorships fail 489
12.1 Top professional sports franchise values 500
12.2 An example of the Fan Cost Index (FCI) for the MLB 513
12.3 2013 sport/recreational activity participation 518
12.4 Laws influencing the price of sports products 523
13.1 Stadium experience rankings of professional sports teams 550
13.2 Most important skills for sports marketing managers 553
13.3 Guidelines for designing reward systems 557
13.4A Rich Creek Rockers income statement 582
13.4B Rich Creek Rockers balance sheet 582
13.5 Summary of selected key financial ratios 583
13.6 Examples of key financial ratios 583
13.7 Top ten sports scandals 585
Photos
1.1 Fans in grandstand 17
1.2 The sports collector’s dream – the Baseball Hall of Fame 26
2.1 After the lockout, the NBA is still thriving 49
2.2 The mature market: staying young and having fun in record numbers 74
3.1 The growing number of women’s sport participants is being monitored
through secondary market research 109
3.2 Focus groups and observers 113
4.1 Two lifelong sports participants in training 137
4.2 Many consumers see a discrepancy between the “ideal”
and “actual” body 139
4.3 A growing number of consumers participate in high-risk sports 145
4.4 Sports participants fulfilling the need for self-actualization 149
xxx
4.5 The high involvement cyclist 151
4.6
4.7
5.1
Girls’ sport participation in eroding traditional gender roles
Marathon
Soccer crowd
163
167
176
1
5.2 Bullfighting 179
6.1 Professional sports are realizing the importance of the kids’
market to their long-term success 215
6.2 Polo is a sport that has typically appealed to the upper class 233
7.1 A baseball, glove, and bat representing pure goods 262
7.2 Competition representing a pure service 263
7.3 Future Redbirds in their St. Louis Cardinals licensed baby gear 285
7.4 Bike manufacturers must stress the importance of product design and
technology 295
8.1 Concept testing is used to understand consumer reactions to sports
such as white water rafting 314
8.2 Extending the product life cycle of the waterbike 318
9.1 Having greater knowledge of sports such as hockey moves consumers
through the hierarchy of effects 361
10.1 Stadium signage – one of the first forms of promotion 376
10.2 Coca-Cola creates a positive association with baseball by using stadium
signage 398
10.3 These runners all exemplify the human billboard 401
10.4 Athlete signing autographs 417
11.1 Little League (Youth Baseball League) 477
12.1 To some, golf lessons may be priceless 498
13.1 Sports organizations often utilize creative marketing strategies to target
consumers 547
13.2 Sponsors such as M&M must design controls to evaluate sponsorship
effectiveness 581
Web captures
1.1 The growth of sports information on the Web 16
1.2 Ski.com provides information for ski enthusiasts 29
1.3 NCAA: One of the most powerful sanctioning bodies 33
2.1 Myrtle Beach Pelicans using a low-cost market niche strategy 61
2.2 ESPN.com providing sports information via the Internet 65
2.3 C-12 Lacrosse showing its latest advances in lacrosse technology 70
3.1 Sport Business Research is an excellent source of primary and
secondary data 112
4.1 Online information source 140
5.1 Richard Petty driving experience 178
5.2 New sports facilities such as the Cowboys Stadium in Dallas influence
attendance 193
6.1 A wide array of youth football programs exist that target participation in
youth football and cheerleading 214
6.2 Reaching women’s soccer fans on the Web 244
7.1 TaylorMade-Adidas Golf extends their product line with Adidas golf
footwear and apparel 270
7.2 Sports logos gallery on the Web 275
xxxi
7.3 Licensed merchandise on the Web 287
8.1 The new sport of Bossaball combines volleyball, football, gymnastics
and capoeira 304
10.1 Cobra Golf using direct objective 378
10.2 Sales promotion advertised on the Web 379
10.3 Easton stresses its competitive advantage 386
10.4 New Ashworth screenshots 389
10.5 The Internet has become a popular medium for all forms of online
purchasing 406
10.6 The Golf Channel, PGA, and LPGA team up for online contests 406
10.7 Social media continue to emerge as an interactive Web strategy 407
10.8 Philadelphia Eagles reach out to the community 418
11.1 Disabled athletes compete in Paralympic games 457
11.2 University of Texas’ Corporate partner program 484
12.1 Loveland Ski may use seasonal discounting 532
13.1 Sports careers on the Web 552
13.2 Sponsorship ROI evaluation 579
Ads
1.1 Concept of sports marketing 4
1.2 Fantasy sports blurring the line between spectator and participant 18
2.1 Cobra stresses and improved performance based on their technological
product improvements 71
2.2 NCAA capitalizes on the new opportunities based on the growth in
women’s sports 85
4.1 Wrangler ® & Brett Farve 152
6.1 Hodgman is capitalizing on the growing mature market 221
6.2 Pygmy is segmentation on the basis of the family life cycle 232
6.3 47 Brand positions itself as the official licensee of the National
Basketball Association 246
9.1 Arnold Palmer: one of the most credible endorsers ever 348
xxxii
PART 1
Contingency
Framework for
Strategic Sports
Marketing
CHAPTER 1
Emergence of
sports marketing
After completing this chapter, you should be able to:
• Define sports marketing and discuss how the sports industry is
related to the entertainment industry.
• Describe a marketing orientation and how the sports industry can
use a marketing orientation.
• Examine the growth of the sports industry.
• Discuss the simplified model of the consumer–supplier relationship
in the sports industry.
• Explain the different types of sports consumers.
• Identify historical trends and significant impacts of sport marketing
practices.
• Define sports products and discuss the various types of sports
products.
• Understand the different producers and intermediaries in the
simplified model of the consumer–supplier relationship in the
sports industry.
• Discuss the elements in the sports marketing mix.
• Explain the exchange process and why it is important to sports
marketers.
• Outline the elements of the strategic sports marketing process.
1 Emergence of sports marketing
Mary is a typical “soccer mom.” At the moment, she is trying to determine how to
persuade the local dry cleaner to provide uniforms for her daughter’s Catholic Youth
Organization soccer team.
George is the president of the local Chamber of Commerce. The 10-year plan for the
metropolitan area calls for developing four new sporting events that will draw local
support while providing national visibility for this growing metropolitan area.
Sam is an events coordinator for the local 10k road race, which is an annual fund raiser
for fighting lung disease. He is faced with the difficult task of trying to determine how
much to charge for the event to maximize participation and proceeds for charity.
Ramiz is the Athletic Director for State University. In recent years, the men’s
basketball team has done well in postseason play; therefore, ESPN has offered to
broadcast several games this season. Unfortunately, three of the games will have to
be played at 10 P.M. local time to accommodate the broadcaster’s schedule. Ramiz is
concerned about the effect this will have on season ticket holders because two of the
games are on weeknights. He knows that the last athletic director was fired because
the local fans and boosters believed that he was not sensitive to their concerns.
"My fan focus groups indicate

that I should show more o f my legs."
Ad 1.1 Concept of sports marketing
Source: Reprinted with permission. www.cartoonstock.com
4
Susie works for a sports marketing agency that is representing a professional sport
franchise. The franchise is planning to expand its international market presence. She
is challenged with establishing relationships in a foreign environment which hosts a
unique set of cultural values and customs.
1
What is sports marketing?
The American Marketing Association defines marketing as the activity, set of
institutions, and processes for creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners, and society at large.1
Sport and entertainment have been defined in a variety of ways, nonetheless, most
definitions inclusively included terms such as: indulgement, divergence, and/or
engagement; for valued outcomes of enjoyment, pleasure or amusement. Although
sport may often consist of a more competitve nature, both are inclusive of retaining
diverse exchange platforms. These diverse platforms provide a variety of engagement
opportunities and yet, uniquely, are comprised of an array of outcomes that are
distinctly similar.
Sports marketing is “the specific application of marketing principles and processes
to sport products and to the marketing of non-sports products through association
with sport.” The sports industry is experiencing tremendous growth and sports
marketing plays an important role in this dynamic industry. Many people mistakenly
think of sports marketing as promotions or sports agents saying, “Show me the
money.” As the previous examples illustrate, sports marketing is more complex
and dynamic. The study and practice of sports marketing is complex, yet interesting
because of the unique nature of the sports industry.
Mary, the soccer mom, is trying to secure a sponsorship; that is, she needs to
convince the local dry cleaner that they will enjoy a benefit by associating their service
(dry cleaning) with a kids’ soccer team.
As president of the Chamber of Commerce, George needs to determine which sports
products will best satisfy his local customers’ needs for sports entertainment while
marketing the city to a larger and remote audience.
In marketing terms, Sam is trying to decide on the best pricing strategy for his
sporting event; Ramiz is faced with the challenge of balancing the needs of two
market segments for his team’s products; and Susie, the sport marketer, is seeking
to persuade international populations of the relevance of diversifying their sport
culture. As you can see, each marketing challenge is complex and requires careful
planning.
To succeed in sports marketing one needs to understand both the sports industry
and the specific application of marketing principles and processes to sports contexts.
In the next section, we introduce you to the sports industry. Throughout this book,
we continue to elaborate on ways in which the unique characteristics of this industry
complicate strategic marketing decisions. After discussing the sports industry, we
review basic marketing principles and processes with an emphasis on how these
principles and processes must be adapted to the sports context.
5
Understanding the sports industry

Historical development of sports marketing in (North)
America
The evolution of sports marketing strategies to meet the needs and wants of the
consumer continues to be a priority of practitioners worldwide. Today’s realm of
sports marketing and sponsorship, though a more dramatically effective and a much
more diverse platform, is vaguely similar to what many identify as its origin, 776 BC,
when the Olympic Games began. Marketers for the Ancient Olympic Games were
no amateurs; these perceptive businessmen realized early on that an affiliation with
a popular athlete could produce a potentially lucrative relationship.2 Throughout its
history, sport in some form has existed and, though the common-day term of sports
marketing had not yet emerged, the process of utilizing marketing and promotion
strategies to enhance delivery and production has been evident.
The roots of sports marketing in North America can be traced back to the 1850s and
1860s when many businesses, recognizing the popularity of sport, attempted to
create linkages to enhance commercial opportunities by marketing through sport. Two
events of this era in particular, one collegiate and one professional, illustrate the use of
marketing through sport and helped lay a foundation for utilization of sport as a service
medium in North America.
In 1852, a railroad official together with a group of local businessmen believed
that they could garner enough interest in the marketing and staging of the event
to produce economic and commercial profits. The end result was the first inter-
collegiate match between Harvard University and Yale University – a two-mile rowing
contest. This event took place at a quiet summer resort called Center Harbor on Lake
Winnipesaukee, New Hampshire. The result demonstrated that the entrepreneurs
were able to create a positive economic impact on the region, enhancing rail traffic,
hotels occupancy, and revenue for the host city.
The second event is tied to the late 1850s and early 1860s and the commercialization
of the new sport of baseball. Tobacco companies partnered with professional baseball
leagues and began using photographs of the teams to help sell their products and
services. These companies made baseball cards with pictures of the teams and
players and then inserted them in cigarette packets to boost and enhance brand
loyalties. Though the strategies of distribution have been altered over the years –
that is, transition from the use of cigarettes, to bubblegum, to today’s independent
packages – these strategies laid the foundation for a new industry; the memorabilia
and card collecting/trading market that exists today.
North American sport experienced a variety of popularity struggles in the late 1800s
and early 1900s. A demand for reform arose and threatened sport at a variety
of levels. In 1906, with the assistance of President Theodore Roosevelt, efforts
were made to transform the image of sport. Strategies and regulations were
implemented to enhance the safety and appeal of the game. Rules, regulations,
and the control of lurking controversies, such as the controversy distinguishing the
amateur and professional status of athletes, became a primary emphasis of sport
organizations.
Although the early 1920s were a period of relative calm in American society, the
country was intrigued by the newest technology of the day, the radio. Marketers,
sports administrators, and broadcasters alike sought to integrate sports utilizing
this medium; a medium at the time that many believed symbolized a coming age of
6
enlightenment. For, as Beville noted, no other medium has changed the everyday lives
of Americans as quickly and irrevocably as radio.3 In 1921, the first American baseball
broadcast occurred from Forbes Field. Though this broadcast was deemed a success,
marketers of the era struggled to transcend executive opinions for some believed that
1
the broadcast would have a negative impact upon attendance and demand.
In the 1930s and 1940s sports organizations utilized radio to enhance team revenue
streams. Innovative marketers began relying on the radio to get their message across
to the common man. In 1936, this same forum was used as a marketing and public
relations campaign to pronounce the success of Jessie Owens and his Olympic debut.
Radio provided the impetus to solidify the era of patronage; however, the invention
that soon followed remains to this day the most significant communication
medium that has influenced and aided the development of sports. Who knew what
sportscaster Bill Stern questioned and introduced in 1939 would enhance the growth
and development of sports marketing practices for decades? The display platform,
the television, though airing two mediocre baseball teams battling for fourth place,
provided an incredibly formidable and profitable union between sport and the
American public. The television provided a means for sports organizations to expand
their market presence and a unique opportunity for marketers to engage their publics.
The notion of a “picture being worth a thousand words” became a reality with the
invention and its intervention and presentation of sports.
In 1946, radio and television broadcasting revenues together contributed only 3.0
percent of MLB revenues, but that rose to 16.8 percent by 1956. Executives such
as Bill Veeck became innovators of sports marketing, utilizing radio and in-game
promotional strategies to further market their teams. Owners, players, broadcasters,
and fans recognized the variety of impacts television would have on the presentation
of sports. In fact, television giant CBS dropped its Sunday afternoon public service
emphasis to provide for a 12-week professional football broadcast.
An American consumer in the 1950s loved and demanded sports. Participation trends
and fan demand steadily increased. Sports became a symbol of changing times in
the United States. In 1957, Jackie Robinson broke the color barrier in baseball. The
importance of this event in helping the Civil Rights Movement in the United States
is evident, but it also proved the social power of sports in American culture and the
impact that could be made utilizing sports as a communication medium. By including
minorities in sports, the market grew. Cultural acceptance, along with media presence,
provided the American public with a means to link personalities and audiences.
This prominence led to the identity era of the 1960s. Chuck Taylor/Converse,
Muhammad Ali/Adidas/Champion, Jim Brown/NFL, Mickey Mantle/Major League
Baseball, Arnold Palmer/PGA and Arnie’s Army, to name a few, all became marketable
entities. Marketers began to utilize sport to establish linkages with consumer publics.
Endorsements and sponsorships evolved. Representation through agents became the
norm for those who had prominence. For example, sport marketing giant International
Management Group (IMG) founder Mark McCormack and golf great Arnold Palmer
instituted a legendary handshake deal which lasted more than 40 years.
The 1970s included several evolutionary events in sports marketing. Consumer
demand for sport continued to rise, while existing and emerging commercial
entities such as Nike, Adidas, Puma, and others fought to snatch up endorsement
opportunities. Sponsorships of products by athletes continued to emerge as a trend
of the decade. In fact, the first corporate sponsorship of a stadium venue occurred
7
in Buffalo in 1973 – Rich Stadium. Buffalo-based Rich Products agreed to pay $37.5
million, $1.5 million per year over 25 years.4
In the 1970s athletes too began to make a presence. Athletes such as Joe Nammath
became sex symbols while advertisers began to realize that athletes could add a
unique element to any product in the context of an endorsement campaign; e.g.,
Jack Nicolas, Muhammad Ali, Mario Andretti to name a few. This was further
demonstrated at the end of the decade when Coke utilized Pittsburgh Steelers tackle,
“Mean Joe Green,” to star in one of the most acclaimed Coke advertisements ever.
Throughout the 1970s mergers, acquisitions, and governmental ramifications were
prominent. Title IX entitled rights for women to have further access to participate in
sports. Advertising laws, that forced the tobacco industry off the TV airways, freed
funding for alternative marketing and advertising strategies. These tobacco companies
could avert the law by developing sponsorship arrangements, thus affording the
growth of events such as Virginia Slims Tennis and NASCAR Winston Cup.
Television markets were further expanded due to cable offerings and afforded
network growth. Television began bringing teams from across the country into
the spotlight. A health craze swept the nation further complementing commercial
and consumer ties to sport. Entrepreneurs like Ted Turner, in 1976, were afforded
an opportunity to develop and market a superstation, while ESPN’s founder Bill
Rasmussen, in 1979, was able to introduce the first true 24-hour sports broadcasting
network.
In the 1980s salaries skyrocketed and leagues saw a need to remain competitive.
Increased competition created a variety of economic and financial issues. Emphasis
on television revenues became a priority. The money from media contracts became
important to the team’s bottom line and its ability to recruit and pay top players.
Miracle workers such as NFL Commissioner, Pete Rozelle, and Olympics marketing
and television guru, Richard Pound, continued to develop and enhance sponsorship
and media contracts as they related to sport. Professionals such as Rozelle of the
NFL, Peter Ueberroth of NBC, and Pound of the IOC had a significant impact on the
explosion of so-called strategic alliances as a result of external competitive pressures
such as globalism of economies and constantly advancing technologies.5
The 1980s represented the “me” decade in sports. Sporting goods were tailored
to be aligned with specific sports. With the likes of Larry Bird, Magic Johnson,
Joe Montana, and the introduction to Michael Jordan, fans continued through the
turnstiles, disregarding the negative influences and impacts of the sky rocketing
salaries, agents, greed among teams and players, drug use by athletes, and free
agency. Despite or because of the greed, sports grew in popularity and became a
more desirable marketing platform.
Sport sponsorship began to see double-digit growth. Sponsor dollars were abundant
and even mediocre athletes began signing contracts to endorse or wear their
products.6 The expansion of sponsorship as a communication medium was greatly
influenced by the emergence of sports leagues and corporate involvement during the
1970s and 1980s. However, this growth did not come without resistance. Resistance
by broadcasters, event managers, and consumers alike focused on the intrusion of
corporate America into this restricted arena.
Many corporate CEOs became involved with sponsorship for unsubstantiated reasons;
i.e., they favored a sports activity or they chose to intermingle with famous sports
celebrities. Exposure through affiliation was achieved, but without justification of the
8
return on investment. Marketing strategies varied considerably due to the limited
channels of exposure, but objectives were to align corporate endorsers to enhance
the linkages and exposure of the events. This growth created a corporate reliance that
would create many future marketing implications.
1
During the Michael Jordan era of the 1990s, television had become the driving force
behind almost every league, including the NFL, NBA, NHL, MLB, NCAA, and NASCAR. In
fact, the majority of teams and sport organizations became reliant upon these television
revenues. Increased revenue streams offered opportunities for expansion. Organizations,
such as the NHL, expanded to regions of the south while others such as the NBA began
to focus beyond the Americas. Sponsorship continued to enhance the dollar pool and
rose at a double-digit pace. Salaries continued to skyrocket, and leagues expanded to take
advantage of untapped markets. Most fans wanted to be loyal; however, struggles such
as the 1993 baseball strike had a severe impact on its popularity and adversely impacted
consumer loyalty. Strategies became more focused and began to emphasize the transfer
of unique connotations inherent in the property and brand image.
Although the modern world of mega-million dollar sponsorships had begun, marketers
questioned the cluttered environment. The driving force behind the game and its
growth had become clouded. Prior to the 1990s, management’s use of sponsorship
was often criticized for the cavalier and often frivolous approaches undertaken.7
During this era sponsorship became entrenched as a legitimate corporate marketing
tool. It saw an unprecedented double-digit growth and that had a significant impact on
image, value, recognition, and method of delivery.
In recent years, sport marketing has continued to grow, but at a more moderate
pace and not without restriction or limitations. In this era of social media, listening,
networking, and enhancing relationships has become a priority, whereas selling is
secondary. The continued advent of technology has created a much more audience-
centered universe, thus, creating a paradigm that continues to evolve and innately
requires sport marketers to develop a more audience-dictated framework to overcome
a host of cybermarketing issues.
Demand through technology has created an international platform, a platform
encompassing numerous cultural variances. Today’s athletes are a global commodity.
In today’s sports marketing environment much more is at stake than free agency and
escalated player salaries. Today, organizations seek to provision resources directly to
an individual, authority, or body to enable the latter to pursue some activity in return
for benefits contemplated in terms of the sports market strategy, and which can be
expressed in terms of corporate, marketing, or media objectives.8
Organizations such as NFL, MLB, NASCAR, and the NBA have expanded scheduled
exhibitions and displays. However, the unprecedented growth of these organizations
and their popularity at the international level is not without increased marketing
challenges. Technology has had a significant impact on the delivery of the product.
The versatility and opportunities surrounding the use of technology enables
organizations the opportunity to exploit a variety of platform delivery mediums to
fulfill many of the basic functions of the marketing communications mix. In this era,
the demand and usage of second screen platforms prevail. Therefore, interactive
positioning of a product is a key to its marketing success.
For every Winston Cup or Jordan success there are at least as many ineffective sports
marketing campaigns. Many athletes today capitalize on their image more than their
athletic prowess. From athletes in their primes to athletes who have made lasting
9
impressions, endorsement deals do not necessarily end when a professional career
is over. Professional athletes are aware of the effect their image has on endorsement
dollars, and most are not willing, nor ready, to give up a share of endorsements. If
today’s players had Babe Ruth’s devil-may-care attitude, they would likely never see the
kinds of endorsement dollars the more polished, public images today are garnering.9
Today’s sport marketer recognizes that image influences the bottom line. The most
prolific athletes are not always the most celebrated, and the most celebrated are often
not the most gifted. However, in today’s environment all are under the microscope
of media attention. Because of today’s growing media and social network influences,
it is crucial for sports marketers to recognize need and define the ‘why’ as it relates
to sports marketing applications. Defining the ‘why’ is crucial to its successful
interpretation.
In today’s sports marketing environment there is a threshold for clutter; however,
scrutiny and integrity are the demanding forces that will impact its future. Consumers
will continue to demand variety in the presentation of the sports product, but they will
not overlook the overcommercialized tactics often employed by sports marketers that
impact the integrity and presentation of its environment.
Sport as entertainment
Webster’s defines sport as “a source of diversion or a physical activity engaged in
for pleasure.”10 Sport takes us away from our daily routine and gives us pleasure.
Interestingly, “entertainment” is also defined as something diverting or engaging.
Regardless of whether we are watching a new movie, listening to a concert, or
attending an equally stirring performance by Dwayne Wade, we are being entertained.
Most consumers view movies, plays, theater, opera, or concerts as closely related
forms of entertainment. Yet, for many of us, sport is different. One important way
in which sport differs from other common entertainment forms is that sport is
spontaneous. A play has a script and a concert has a program, but the action that
entertains us in sport is spontaneous and uncontrolled by those who participate in
the event. When we go to a comedic movie, we expect to laugh, and when we go to
a horror movie, we expect nail biting entertainment. But the emotions we may feel
when watching a sporting event are hard to determine. If it is a close contest and
our team wins, we may feel excitement and joy. But if it is a boring event and our
team loses, the entertainment benefit we receive is quite different. Because of its
spontaneous nature, sport producers face a host of challenges that are different than
those faced by most entertainment providers.
Nonetheless, successful sports organizations realize the threat of competition from
other forms of entertainment. They have broadened the scope of their businesses,
seeing themselves as providing “entertainment.” The emphasis on promotional
events and stadium attractions that surround athletic events is evidence of this
emerging entertainment orientation. Consider the NBA All-Star Game. What used
to be a simple competition between the best players of the Western Conference
and the best players of the Eastern Conference has turned into an entertainment
extravaganza. The event (not just a game anymore) lasts for days and includes slam-
dunk contests, a celebrity and rookie game, concerts, 3-point shooting competition
and plenty of other events designed to promote the NBA.11 In 1982, the league
created a separate division, NBA Entertainment, to focus on NBA-centered TV
and movie programming. NBA TV has created original programming featuring
10
shows like All-Access, Basketball International, Fantasy Hoops, NBA Roundtable
. . . and Hardwood Classics. As Alan Brew, a principal at RiechesBaird (now
BrandingBusiness), a brand strategy firm states, “The line between sport and
entertainment has become nearly nonexistent.”12
1
Of course, one of the most highly visible examples of “sporttainment” is the WWE
or World Wrestling Entertainment. For the past few decades, the WWE has managed
to build a billion dollar empire and according to WWE.com the WWE posted revenue
of $508 million in the fiscal year 2013. Live and televized entertainment accounted for
75 percent of those sales, followed by consumer products (15 percent), digital media
(8 percent), and a new brand extension called WWE Studios at 2 percent.13 Vince
McMahon, the founder and chairman, has been called the P. T. Barnum of our time.
The sports entertainment phenomenon is also sweeping the globe as the
following Forbes Inc. narrative and video link suggests: www.forbes.com/sites/
mikeozanian/2012/02/26/nfl-expansion-could-include-London/. As organizations begin
to recognize the value of sport as emtertainment in this global environment it is
important for sports marketers to understand why consumers are attracted. Defining
what consumer needs are and how those needs relate to the global environment will
further complement the marketing exchange process.
Organizations that have not recognized how sport and entertainment relate are said
to suffer from marketing myopia. Coined by Theodore Levitt, marketing myopia is
described as the practice of defining a business in terms of goods and services rather
than in terms of the benefits sought by customers. Sports organizations can eliminate
marketing myopia by focusing on meeting the needs of consumers rather than on
producing and selling sports products.
A marketing orientation
The emphasis on satisfying consumers’ wants and needs is everywhere in today’s
marketplace. Most successful organizations concentrate on understanding the
consumer and providing a sports product that meets consumers’ needs while
achieving the organization’s objectives. This way of doing business is called a
marketing orientation.
Marketing-oriented organizations practice the marketing concept that organizational
goals and objectives will be reached if customer needs are satisfied. Organizations
employing a marketing orientation focus on understanding customer preferences and
meeting these preferences through the coordinated use of marketing. An organization
is marketing oriented when it engages in the following activities.14
X Intelligence generation – analyzing and anticipating consumer demand,
monitoring the external environment, and coordinating the data collected;
X Intelligence dissemination – sharing the information gathered in the intelligence
stage;
X Responsiveness – acting on the information gathered to make market decisions
such as designing new products and services and developing promotions that
appeal to consumers.
Using the previous criteria (intelligence gathering, intelligence dissemination, and
responsiveness), one study examined the marketing orientation of minor league
baseball franchises.15 Results of the study indicate that minor league baseball
franchises do not have a marketing orientation and that they need to become more
consumer focused. Although the study suggests that minor league baseball franchises
11
Table 1.1 The power ranking – 25 coolest minor league stadiums
Power ranking Stadium Team

1 Richmond Country Bank Ballpark Staten Island Yankees
2 Metro Bank Ballpark Harrisburg Senators
3 AT&T Field Chattanooga Lookouts
4 Canal Park Akron Aeros
5 Whitaker Bank Ballpark Lexington Legends
6 Fieldcrest Cannon Stadium Kannapolis Intimidators
7 Whataburger Field Corpus Christi Hooks
8 Isotopes Park Albuquerque Isotopes
9 Victory Field Indianapolis Indians
10 Bright House Field Clearwater Phillies
11 NewBridge Bank Park Greensboro Grasshoppers
12 Dr. Pepper Ballpark Frisco RoughRiders
13 First Energy Stadium Reading Phillies
14 RedHawks Field at Bricktown Oklahoma City RedHawks
15 Louisville Slugger Field Louisville Bats
16 Coca-Cola Field Buffalo Bisons
17 Modern Woodmen Park Quad Cities River Bandits
18 MCU Park Brooklyn Cyclones
19 AutoZone Park Memphis Redbirds
20 Raley Field Sacramento River Cats
21 Fifth Third Field Dayton Dragons
22 Dell Diamond Round Rock Express
23 Ripken Stadium Aberdeen IronBirds
24 LeLacheur Park Lowell Spinners
25 McCoy Stadium Pawtucket Red Sox
Source: http://bleacherreport.com/articles/842135-power-ranking-the-25-coolest-minor-league-
stadiums.
have not moved toward a marketing orientation, more and more organizations are
seeing the virtue of this philosophy.
Growth of the sports industry

Sport has become one of the most important and universal institutions in our
society. It is estimated that the sports industry generates between $480–620 billion
each year, according to a recent A. T. Kearney study of sports teams, leagues, and
federations.16 This includes infrastructure construction, licensed products, and live
sporting events. According to Plunkett Research,17 the sports industry is twice the
size of the U.S. auto industry and seven times the size of the movie industry. The
industry is becoming increasingly global with respect to conventional and new media
distribution fronts. This total is based on a number of diverse areas within the industry
including gambling, advertising, sponsorships, etc. As ESPN founder Bill Rasmussen
points out, “The games are better, and well the athletes are just amazing and it all
happens 24 hours a day. America’s sports fans are insatiable.”18 For better or worse,
sports are everywhere. The size of sport and the sports industry can be measured in
different ways. Let us look at the industry in terms of attendance, media coverage,
employment, and the global market.
12
Attendance
Not only does sport spawn legions of “soccer moms and dads” who faithfully attend
youth sport events, but also for the past several years, fans have been flocking to 1
major league sports in record numbers. The NFL achieved peak attendance in 2007,
averaging 68,702 fans per game and a 99.9 percent capacity. Although the League
experienced a slight decline from 2008 to 2011, the League has been able to retain
a 95 percent plus capacity. The 2013 season reflected a 96.5 percent capacity and
an average game attendance of 68,373. The NFL continues to experience what
many would call another prosperous year, with paid attendance of 17,304,523 fans
attending. In addition, the NFL extended its television contracts through 2022,
embarking on deals that will generate upwards of $3 billion a year.19
The NFL, both on and off the field, continues to strengthen the very foundation of
the game. The League strives to make changes that are having a positive impact
on the delivery of the game, both to consumers in person and via media outlets.
According to NFL Commissioner Roger Goodell, NFL numbers are up; up in overall fan
engagement, in most cases, dramatically, and interest in the NFL is expanding as they
continue to grow internationally.20 In fact, for the 2014 season, the NFL announced
that two games would be played in London, both games sold out months in advance.
The NBA also had strong attendance in recent years. In the 2012–2013 season over
17 million fans turned out to see the action and arenas averaged 17,274 per game.
This was complementary to the 2011 season where the NBA noted that its three
national TV partners all had their highest viewer ratings ever. According to the League,
TNT saw a 42 percent increase, while ABC was up 38 percent and ESPN saw a 28
percent jump. Turner Sports noted its 1.6 rating was its highest in 27 years of NBA
coverage and that it televised three of the five most-watched NBA regular-season
games ever on cable this season. Despite fears of a labor stoppage after the season,
the NBA reported success across many platforms. Arena capacity was 90.3 percent,
its seventh straight year of 90 percent or better. Merchandise sales jumped more than
20 percent and NBA.com saw an increase of more than 140 percent in video views.21
After procuring four years of record attendance through 2008, Major League Baseball
had multiple years of attendance declines; however, in the 2011 season, the League
was able to overcome a very slow start, endured inclement weather, a slowed
economy, and even the influx of high definition TVs to achieve the fifth highest
attendance mark ever. A total of 74,859,268 fans attended Major League Baseball
games in the 2012 regular season, representing a 1.9 percent increase from 2011.
Sports Illustrated writer Tom Verducci noted “baseball is consumed in so many ways
that hardly existed, if at all, in its pre-strike popularity era: fantasy leagues, web apps,
satellite radio, websites and the plethora of television viewing options on fantastic-
looking displays,”22 all impact the game. Attendance remains a vital revenue stream
and measure of interest, but now it is part of a much more diverse picture of how
baseball is consumed.
Street & Smith’s Sports Business Daily reported that the National Hockey League
averaged 17,445 fans per game for the 2012 season, up 1.8 percent from 2011 and up
2.8 percent from 2010. The Canadiens secured the highest league attendance totals
including totals that were at 100 percent capacity. A total of 872,193 patrons attended
in 2012 equating to a 21,273 per game average.23
13
Media coverage
Although millions of Americans attend sporting events each year, even more of us
watch sports on network and cable television or listen to sports on the radio. For
example, the 2014 Super Bowl XLVII featuring the Seattle Seahawks and Denver
Broncos was watched by an estimated 111.5 million viewers and had an estimated
26.1 million tweets, exceeding the 2013 numbers where the New York Giants victory
over the New England Patriots was watched by more than 111.3 million people. These
2013 and 2014 numbers surpass the 2011 Super Bowl and 1983 finale of “M-A-S-H”
to become the most-watched program in U.S. television history.
Today, in the U.S. 290 million people own at least one TV, while worldwide more
than 35 percent of consumers own an HD TV. According to Nielsen’s television data
collected from 38 key markets around the world (including the host nation China,
the United States, Brazil, South Africa, Italy, and Australia), just more than 4.4 billion
viewers worldwide – almost 70 percent of the world’s population – watched some
part of the 2008 Olympics.24 In fact, an estimated audience of 2 billion watched
the Beijing Olympics Opening Ceremony. Viewing levels varied across regions and
markets, impacted by factors such as time zone and broadcast time differences. In
contrast to the Beijing Summer Olympics, the Sochi Games only drew an average of
21.4 million viewers in primetime. In comparison, NBC’s coverage of the Vancouver
Winter Olympic Games drew a total viewing population of 32.6 million, 56 percent
female versus 44 percent male. This secured an average audience of roughly three
times the size of its nearest rival, Fox, and, according to the Nielsen company in 2012,
the coverage held seven of the eight top stops for the week.
During the most recent Summer Olympic Games, Nielsen reported that NBC’s
coverage of the London Olympic Games drew more than 219 million American
viewers over the span of 5,535 hours of broadcasting. These figures eclipse those of
the 2008 Beijing Olympics (also on NBC), which were watched by a mere 215 million
American viewers.
ESPN, the original sports-only network launched in 1979, was highlighted by record
consumption of ESPN’s core television business in 2011 and 2012. On television and
across digital platforms, ESPN was able to secure a series of value-rich agreements with
the NFL, NCAA, Wimbledon, Pac-12, and Indy 500. With its long-term and wide-ranging
pact with its largest distributor, Comcast, ESPN was able to marry compelling content
with evolving technology, i.e., notably the WatchESPN. In addition, they aired a
significantly higher number of regular season and college bowl games. The array of
ESPN programs serves the sports fan of today on the move in the USA and around
the world. ESPN’s results demonstrated that sports fans’ need for the latest and best
information – wherever they are – remains unabated. In the most recent survey across
ESPN media platforms, which includes all ESPN networks, 113 million people interacted
with ESPN during the average week in 2013,25 an average of 675,000 viewers.
However, ESPN is facing more competition than ever. In 2013, ESPN saw a significant
decrease in primetime ratings, 32 percent. Competitors such as Fox Sports and NBC
Sports are strengthening their position in the marketplace. In addition, broadcasts
such as those presented on Golf Channel, NFL Network, Fox Soccer, and NBCSN
have experienced increases in viewership.26 According to The Media Audit report
(2009), a number of sports events including professional football, baseball, and hockey
are on the upswing, and it suggests that while many Americans are uncertain about
jobs and the economy, their interest in following sports remains strong.27
14
Among the report’s findings, 61 percent of U.S. adults regularly follow professional
football on radio or TV, a figure that is up from 57.9 percent four years ago. Among
professional baseball fans, 51.2 percent regularly follow the sport, compared with 49.5
percent in 2005. Professional ice hockey experienced the most significant increase
1
among sports fans. Among U.S. adults, 22.7 percent frequently follow the sport
on TV or radio today, compared with 14.4 percent in 2005. The figure represents a
58 percent increase over four years. The study further reveals that the higher their
income, the more likely adults are to follow sports. For example, 71.6 percent of
adults earning $100,000 or more in household income regularly follow professional
football, a figure that is 18 percent higher when compared with all U.S. adults.
Similarly, 61.6 percent of high-income-earning individuals regularly follow professional
baseball on TV or radio, a figure that is 20 percent higher than for all U.S. adults.
Furthermore, 29.3 percent of affluent adults follow professional ice hockey compared
with 22.7 percent of the general U.S. population.
In college sports, the percent of adults who regularly follow college football on radio
or TV increased from 44.6 percent in 2005 to 45.9 percent today. However, the
same study revealed that while only 22.1 percent of U.S. adults frequently attend
college or professional sporting events, the figure remains flat from 22 percent
in 2005. Traditional networks are trying to keep pace with the demand for sports
programming. The four major networks devote in excess of 2,000 hours to sports
programming annually and a family with cable has access to 86,000 hours of sports
TV. Sports fees paid by cable, satellite, and telco companies reached 17.2 billion in
2012.28
In addition, according to a Kantar’s Global Sports Media Consumption Report (2013),
about 170 million adults (71 percent of the U.S. population) label themselves sports
fans, and 97 percent of them watched sports on TV in 2012.29 The majority (97
percent) of these TV sporting events are watched live and therefore the race is on
between networks to secure prominent sporting events. In 2011, NBC spent a record
$4.38 billion to secure the broadcast and cable rights for the Olympic Games through
2020. NBC extended its stronghold on the Olympics by winning the broadcast rights
over rivals Fox and ESPN. Fox bid $3.4 billion for four Games and $1.5 billion for two,
while ESPN offered $1.4 billion for two. Add to this deal the NCAA’s $10.8 billion
dollar basketball tournament deal, the NCAA conferences multiplying their old deals
times four, a $4.4 billion NASCAR deal with NBC, the NHL tripling their previous
contract, and the astronomical procurement of the NFL, where networks will provide
over $3 billion per year, and you can see the value of sports to the league and the
networks.
These numbers show no signs of slowing down in the future. The huge demand for
sports broadcasting has led to the introduction of more sport-specific channels. New
sports networks such as the Sky Sports F1, College Sports Television (www.cstv.
com), Fox Sports 1, Blackbelt TV, the Tennis Channel, and the NFL Network have
emerged because of consumer demand. In fact even the WWE is contemplating the
release of its own network. Presently, worldwide there are in excess of 300 sport
channels. This practice of “narrowcasting,” reaching very specific audiences, seems
to be the future of sports media.
15
Web 1.1 The growth of sports information on the Web

Source: www.espn.go.com.
In addition to traditional sports media, pay-per-view cable television is growing in

popularity. Satellite stations, such as DIRECTV, allow spectators to subscribe to a
series of sporting events and play a more active role in customizing the programming
they want to see. For example, DIRECTV offers NFL Sunday Ticket, Willow Cricket,
NASCAR HotPass, NBA League Pass, or the NHL Center Ice to afford consumers
instant viewing gratification. Packages such as NHL Center Ice allow subscribers to
choose from 40 out-of-market (i.e., not local) regular season NHL games per week for
an additional fee.
Employment
Another way to explore the size of the sports industry is to look at the number of
people the industry employs. The Sports Market Place Directory, an industry directory,
has more than 15,600 listings, 80,000 contact names, and 9 indexes for sports
people and organizations.30 A USA Today report estimates that there are upward of
4.5 million sports-related jobs in sales, marketing, entrepreneurship, administration,
representation, and media.31 Some estimates range as high as 6 million jobs. In
addition to the United States, the United Kingdom employs some 400,000 people in
their $6 billion a year sports industry.32 Consider all the jobs that are created because
of sports-related activities such as building and staffing a new stadium. Sports jobs
are plentiful and include but are not limited to event suppliers, event management
and marketing, sports media, sport sales, sports sponsorship, athlete services, sports
commissions, sports lawyers, manufacturers and distribution, facilities and facility
suppliers, teams, leagues, college athletics, and finance.
16
The number of people working directly and indirectly in sports will continue to grow
as sports marketing grows. Sports marketing creates a diverse workforce from the
players who create the competition, to the photographers who shoot the competition
(see Appendix A for a discussion of careers in sports marketing).
1
Global markets
Not only is the sports industry growing in the United States, but it is also growing
globally. As the following hyperlink on international sports marketing discusses, the
NBA is a premier example of a powerful global sports organization that continues to
grow in emerging markets: http://www.nba.com/global/nba_global_regular_season_
games_london_mexico_city_2013_06_24.html.
The structure of the sports industry

There are many ways to discuss the structure of the sports industry. We can look at
the industry from an organizational perspective. In other words, we can understand
some things about the sports industry by studying the different types of organizations
that populate the sports industry such as local recreation commissions, national youth
sports leagues, intercollegiate athletic programs, professional teams, and sanctioning
bodies. These organizations use sports marketing to help them achieve their various
organizational goals. For example, agencies such as the United States Olympic
Committee (USOC) use marketing to secure the funding necessary to train and enter
American athletes into the Olympic Games and Pan American games.
Photo 1.1 Fans in grandstand.

Source: Shutterstock.com.
17
Consumers Products Producers and intermediaries

Spectators Events Ownership
Participants Sporting goods Sanctioning bodies
Corporate or Business personal training Sponsors
for sports Media
sports information Agents
Equipment manfacturers
Figure 1.1 Simplified model of the consumer–supplier relationship in the sports

industry
Ad 1.2 Fantasy sports blurring the line between spectator and participant
Source: Sporting News
The traditional organizational perspective, however, is not as helpful to potential

sports marketers as a consumer perspective. When we examine the structure of
the sports industry from a consumer perspective, the complexity of this industry
and challenge to sports marketers becomes obvious. Figure 1.1 shows a simplified
model of the consumer–supplier relationship. The sports industry consists of three
major elements: consumers of sport, the sports products that they consume, and
the suppliers of the sports product. In the next sections, we explore each of these
elements in greater detail.
The consumers of sport

The sports industry exists to satisfy the needs of three distinct types of consumers:
spectators, participants, and sponsors.
The spectator as consumer

If the sporting event is the heart of the sports industry, then the spectator is the blood
that keeps it pumping. Spectators are consumers who derive their benefit from the
observation of the event. The sports industry, as we know it, would not exist without
spectators. Spectators observe the sporting event in two broad ways: they attend
the event, or they experience the event via media chosen media outlet, i.e., radio,
television, Internet.
18
As Figure 1.2 illustrates, there are two broad types of consumers: individual
consumers and corporate consumers. Collectively, this creates four distinct consumer
groups. Individuals can attend events in person by purchasing single event tickets
or series (season) tickets. Not only do individuals attend sporting events, but so too
1
do corporations. Today, stadium luxury boxes and conference rooms are designed
specifically with the corporate consumer in mind. Many corporate consumers can
purchase special blocks of tickets to sporting events. At times, there may be a tension
between the needs of corporate consumers and individual consumers. Many believe
that corporate consumers, able to pay large sums of money for their tickets, are
pushing out the individual consumer and raising ticket prices.
Both individual spectators and corporations can also watch the event via a media
source. The corporate consumer in this case is not purchasing the event for its own
viewing, but, rather, acting as an intermediary to bring the spectacle to the end user
groups or audience. For example, CBS (the corporate consumer) purchases the right
to televise the Masters Golf Tournament. CBS then controls how and when the
event is experienced by millions of individual spectators who comprise the television
audience.
Historically, the focus of the sports industry and sports marketers was on the
spectator attending the event. The needs of the consumer at the event were catered
to first, with little emphasis on the viewing or listening audience. Due to the growth
of media influence and the power of the corporate consumer, the focus has changed
to pleasing the media broadcasting the sporting event to spectators in remote
locations. Many season ticket holders are dismayed each year when they discover
that the starting time for events has been altered to fit the ESPN schedule. In fact,
the recent NFL deals provide networks with the opportunity to interchange delivery
schedules across conferences. Because high ratings for broadcasted sporting events
translate into breathtaking deals for the rights to collegiate and professional sports,
those who present sporting events are increasingly willing to accommodate the
In Person Mediated
Individual
Corporate
Figure 1.2 Individual vs corporate consumer

19
needs of the media at the expense of the on-site fan. The money associated with
satisfying the needs of the media is breathtaking. For example, in 2011, the NFL
agreements secured from the terrestrial networks, FOX, NBC, CBS, and ESPN,
combined for a total of $20.4 billion per year. The 2014–2022 totals equate to the
same networks paying $39.6 billion per year.33 That number is continuing to grow,
as seen in Table 1.2. Identifying and understanding the different types of spectator
consumption is a key consideration for sports marketers when designing a marketing
strategy.
The participant as consumer

In addition to watching sports, more people are becoming active participants
in a variety of sports at a variety of competitive levels. Table 1.3 shows “core”
participation in sports and fitness activities. As the number of participants grows, the
need for sports marketing expertise in these areas also increases.
As you can see, there are two broad classifications of sports participants: those that
participate in unorganized sports and those that participate in organized sports.
Table 1.2 NFL media rights
CBS (AFC) 2014–2022 $1.08B

DirecTV (Sunday Ticket) 2011–2014 $1B
ESPN (Monday Night) 2014–2022 $1.9B
FOX (NFC) 2014–2022 $720.3M
NBC (Sunday Night) 2014–2022 $1.05B
TOTAL $5.75B
Source: http://espn.go.com/nfl/story/_/id/7353238/nfl-re-ups-tv-pacts-expand-thursday-schedule
Table 1.3 Most popular sports and fitness activities based on core participation (age 6 and above; U.S.
residents)
Rank Activity # Of Participants

1 Walking for Fitness 114.1 million
2 Bowling 55.9 million
3 Treadmill 53.1 million
4 Running/Jogging 49.4 million
5 Hand Weights 45.9 million
6 Billiards/Pool 39.4 million
7 Bicycling 39.3 million
8 Freshwater Fishing 38.9 million
9 Weight/Resistance Machines 38.6 million
10 Dumbells 37.4 million
Source: Sports & Fitness Industry Association, www.sfia.org
20
Unorganized sport participants/organized sport participants

Amateur
Youth recreational instructional
1
Youth recreational elite
Schools
Intercollegiate
Professional
Minor/secondary
Major
Unorganized sports are the sporting activities people engage in that are not
sanctioned or controlled by some external authority. Kids playing a pick-up game
of basketball, teenagers skateboarding, or people playing street roller hockey, as
well as fitness runners, joggers, and walkers are only a few of the types of sporting
activities that millions of people participate in each day. The number of people who
participate in unorganized sports is difficult to estimate. We can see how large this
market is by looking at the unorganized sport of home fitness. According to a survey
published by the National Endowment for the Arts, American households spend $130
annually on sports or exercise equipment. In addition, the average purchase price of a
multi-purpose home gym station was $640 while the average cost of a treadmill was
$2000.34
We can see that the size of the market for unorganized sports is huge, and there are
many opportunities for sports marketers to serve the needs of these consumers.
Organized sporting events refer to sporting competitions that are sanctioned and
controlled by an authority such as a league, association, or sanctioning body. There are
two types of participants in organized events: amateur and professional.
Amateur sporting events refer to sporting competitions for athletes who do not
receive compensation for playing the sport. Amateur competitions include recreational
youth sports at the instructional and elite (also known as “select”) levels, high school
sports controlled at the state level through leagues, intercollegiate sports (NCAA
Division I–III, NAIA, and NJCAA), Olympics, and adult community-based recreational
sports. Professional sports are also commonly classified by minor league or major
league status.
Sponsors as consumer
Other equally important consumers in sports marketing are the many business
organizations that choose to sponsor sports. In sports sponsorship, the consumer (in
most cases, a business) is exchanging money or product for the right to associate its
name or product with a sporting event, creating a commercial competitive advantage
for both parties. The decision to sponsor a sport is complex. The sponsor must
not only decide on what sport(s) to sponsor, but must also consider what level of
competition (recreational through professional) to sponsor. They must choose whether
to sponsor events, teams, leagues, or individual athletes.
Although sponsorship decisions are difficult, sponsorship is growing in popularity
for a variety of reasons. As Pope discusses in his excellent review of current
sponsorship thought and practices,35 sponsorship can help achieve corporate
21
objectives (e.g., public awareness, corporate image building, and community
involvement), marketing objectives (e.g., reaching target markets, brand positioning,
and increasing sales), media objectives (e.g., generate awareness, enhance ad
campaigns, and generate publicity), and personal objectives (management interest).
According to IEG, lingering effects of scattered economic crises throughout the
world and a yet-to-stabilize recovery in the U.S. have impeded sponsorship spending
worldwide. However, despite these adverse impacts, a growth of 4.1 percent globally
and 4.5 percent in North America was estimated in 2014. Sponsorship spending
continued to reach a new plateau, $20.6 billion being spent in the U.S. and an
estimated $55.3 billion worldwide. Projections for future growth are highly dependent
upon the unprecedented recognition at the highest levels of corporations that
sponsorship is a potent answer to the challenge of how to build attention, support,
and loyalty for brands in an environment that is otherwise hostile to marketing
communications.36
The sports product

Perhaps the most difficult conceptual issue for sports marketers is trying to
understand the nature of the sports product. Just what is the sports product that
participants, spectators, and sponsors consume? A sports product is a good, a
service, or any combination of the two that is designed to provide benefits to a sports
spectator, participant, or sponsor.
Goods and services

Goods are defined as tangible, physical products that offer benefits to consumers.
Sporting goods include equipment, apparel, and shoes. We expect sporting goods
retailers to sell tangible products such as tennis balls, racquets, hockey equipment,
exercise equipment, and so on. By contrast, services are defined as intangible,
nonphysical products. A competitive sporting event (i.e., the game itself) and an ice-
skating lesson are examples of sport services.
Sports marketers sell their products based on the benefits the products offer to
consumers. In fact, products can be described as “bundles of benefits.” Whether
as participants, spectators, or sponsors, sports products are purchased based on the
benefits consumers derive. Ski Industry America, a trade association interested in
marketing the sport of snowshoeing, understands the benefit idea and suggests that
the benefits offered to sports participants by this sports product include great exercise,
little athletic skill, and low cost (compared with skiing). It is no wonder snowshoeing
has recently emerged as one of the nation’s fastest growing winter sports.37
Spectators are also purchasing benefits when they attend or watch sporting events.
For example, the 2014 Super Bowl was the most watched event in U.S. television
history, attracting 111.5 million viewers. The game provides consumers with benefits
such as entertainment, ability to socialize, and feelings of identification with their
country’s teams and athletes.
Moreover, organizations such as Federal Express, which paid $205 million over 27
years for the naming rights to the Washington Redskins sports complex that opened
in 1999, believe the association with sports and the subsequent benefits will be
worth far more than the investment.38 The benefits that organizations receive from
naming rights include enhanced image, increased awareness, and increased sales of
their products.
22
CAREER SPOTLIGHT
Chris Ferris, Associate Athletic Director for Marketing & Promotions
University of Pittsburgh
1
Mr. Ferris joined the Pittsburgh b. Advertising and ticket sales
Athletic Department in 1994 when c. Corporate ticket sales, group
he served as a student equipment ticket sales, and promotions
manager. The following year, d. Game presentation
he worked as an undergraduate e. Internet services
intern with the media relations and f. PantherVision production
marketing departments. He is also a g. Pitt Panthers television
1998 graduate of Pittsburgh with a Additionally, I work very closely
Bachelor’s degree in business and with our multi-media rights holder
communications and earned his and our ticket operations team
Master’s Degree at the University of
3. Why did you choose the
Pittsburgh’s Katz Graduate School of
University of Pittsburgh, for
Business.
both academic as well as your
1. What is your career background? career path? The University
How did you get to where you of Pittsburgh is an amazing
are today? I started in athletics as place. Our leadership at the
a football equipment manager. University and in our Athletic
Afterwards, I volunteered and department are both committed
interned with both the Media to being the best and providing
Relations and Marketing the best experience for our
Departments. Volunteering students and student-athletes. I
and interning were key. The believe in our leaders and people
opportunities allowed me to and I believe in our leaders and
learn about the industry, meet professions.
some terrific people, and give
4. What made you get into
people in our organization see
marketing? What do you like
me work. Once given my first
about it best? Volunteering and
opportunity as assistant director
interning exposed me to many
of marketing, I continued to work
different areas of Intercollegiate
as enthusiastically as possible
Athletics. Marketing gives me
while continuing to volunteer for
an opportunity to work with
any additional projects within
people both internally within the
the department. Once again,
university and externally. I really
this enabled me to grow as a
enjoyed having what I believe is
professional.
the best of both worlds; dealing
2. What is your role as Associate with students, faculty, and staff
A.D. for Marketing & while also having the opportunity
Promotions? Our marketing to work with external sponsors
department and Pitt manages and partners.
and oversees:
5. How large is your full-time
a. Licensing and
marketing staff? Seven people.
merchandising
23
6. What are the main marketing 7. What is your ultimate goal for
challenges facing Pitt Athletics? your career? First, make positive
These can be sport specific. Our impacts on our teams, coaches,
goals are to sell-out all of our and fans. Second, serve as an
venues for all of our teams. athletic director.
Different types of sports products

Sports products can be classified into four categories. These include sporting events,
sporting goods, sports training, and sports information. Let us take a more in-depth
look at each of these sports products.
Sporting events
The primary or core product of the sports industry is the sporting event. By primary
product we are referring to the competition, which is needed to produce all the
related products in the sports industry. Without the game there would be no licensed
merchandise, collectibles, stadium concessions, and so on. You may have thought
of sports marketing as being important for only professional sporting events, but, as
is evident by the increased number of media outlets and broadcasts, the marketing
of collegiate sporting events and even high school sporting events is becoming more
common.
Historically, a large distinction was made between amateur and professional sporting
events. Today, that line is becoming more blurred. For example, the Olympic Games,
once considered the bastion of amateur sports, is now allowing professional athletes
to participate for their countries. Most notably, the rosters of the Dream Teams of
U.S. Basketball fame and the U.S. Hockey team are almost exclusively professional
athletes. This has been met with some criticism. Critics say that they would rather
give the true amateur athletes their chance to “go for the gold.”
Athletes
Athletes are participants who engage in organized training to develop skills in
particular sports. Athletes who perform in competition or exhibitions can also be
thought of as sports products. David Beckham, Chamique Holdsclaw, and Phil
Mickelson are thought of as “bundles of benefits” that can satisfy consumers of sport
both on and off the court.
One athlete to achieve this “superproduct” status is the multimillion dollar
phenomenon named Eldrick “Tiger” Woods. Tiger seemed to have it all. He was
handsome, charming, young, multiethnic, and most important – talented. Tiger’s
sponsors certainly think he was worth the money. However, poor choices and
inappropriate behavior attracted controversy. Controversy has required the likes
of Nike, Buick, NetJets, and American Express to rethink their level of affiliation,
impacting Tiger’s multimillion dollar sponsorship deals.
Sports marketers must realize that the “bundle of benefits” that accompanies an
athlete varies from person to person and has affiliated risk. The benefits associated
with Allen Iverson are different from those associated with Kevin Garnett or golfer
Michelle Wei. Regardless of the nature of the benefits, today’s athletes are not
thinking of themselves as athletes but as entertainers.
24
Arena
A final sports product that is associated with the sporting event is the site of the
event – typically an arena or stadium. Today, the stadium is much more than a place 1
to go watch the game. It is an entertainment complex that may include restaurants,
bars, picnic areas, and luxury boxes. Today’s teams are not only trying to create more
visually appealing buildings, but they’re interested in making attending the game an
all-encompassing entertainment experience. In fact, stadium seating is becoming a
“product” of its own.
For example, some of the following changes already seen at today’s venues will soon
become the norm. Things such as free Wi-Fi, mobile apps, fantasy stats on video
boards, TVs in seats and bathrooms, customizable instant replays, bars overlooking
fields, holograms on the fields instead of players, and improved access are the wave
of the future. Companies like Cisco offer Stadium Wi-Fi packages made specifically
for sports arenas that have an immense amount of internet usage in a confined
area. Cisco plans on placing antennas in specific places in the stadium for optimal
performance for people to use their smart phones with optimal speeds.39
In another example, it might seem like a stretch to think that a roller coaster will pop
up over a baseball field’s outfield fence, but some type of amusement park ride –
Detroit’s Comerica Park already has a Ferris wheel – that provides unique views of the
game (and can keep the kids entertained) seems inevitable.40
Sporting goods
Sporting goods represent tangible products that are manufactured, distributed, and
marketed within the sports industry. The sporting goods and recreation industry was
a $79.1 billion industry in 2013.41 The segments and their relative contribution to the
industry sales figure include sports equipment ($21.5 billion), exercise equipment
($4.7 billion), sports apparel ($31.8 billion), athletic footwear ($13.6 billion), and
licensed merchandise ($7.5 billion). The largest product category, in terms of sales,
was firearms and hunting (10 percent), industrial exercise equipment (9 percent),
running footwear (6 percent), and fishing (5 percent).42 Although sporting goods are
usually thought of as sports equipment, apparel, and shoes, there are a number of
other goods that exist for consumers of sport. Sporting goods also include licensed
merchandise, collectibles, and memorabilia.
Licensed merchandise
Another type of sporting goods that is growing in sales is licensed merchandise.
Licensing is a practice whereby a sports marketer contracts with other companies to
use a brand name, logo, symbol, or characters. In this case, the brand name may be a
professional sports franchise, college sports franchise, or a sporting event. Licensed
sports products usually are some form of apparel such as team hats, jackets, or
jerseys. Licensed sports apparel accounts for 60 percent of all sales. Other licensed
sports products such as novelties, sports memorabilia, trading cards, and even home
goods are also popular.
The Licensing Letter reports that sales of all licensed sports products reached $17.5
billion worldwide in 2012. In fact, sport licensing generates $800–$900 million in
royalty revenue annually. Growth is expected to continue based on research from the
National Sporting Goods Manufacturers Association and the Sports Licensing Report.
U.S. retail sales of licensed products for the four major professional sports leagues
25
(NBA, NFL, MLB, and NHL) has more than doubled since the 1990s, from $5.35 billion
in 1990 to $13.5 billion in 2012.43
Through this period, the various major professional sports leagues developed a
sprawling network of licensing arrangements with more than 600 companies. Another
2,000 companies have arrangements with the various college and university licensing
groups. As far as the retail distribution of product, a network of “fan shops” grew to
more than 450 in number and licensed products found their way into sporting goods
stores, department stores, and eventually, the mass merchants. To compete, most
of the major sporting goods chains and many department stores developed separate
areas devoted exclusively to licensed goods.44 Sales of licensed sports products will
continue to grow as other “big league” sports gain popularity. For example, NASCAR
has seen the sale of licensed goods increase from $60 million in 1990 to $500 million
in 1994 and to an estimated $1.2 billion in 2013 (see NASCAR.com).
Collectibles and memorabilia

One of the earliest examples of sports marketing can be traced to the 1880s when
baseball cards were introduced. Consider life before the automobile and the television.
For most baseball fans, the player’s picture on the card may have been the only
chance to see that player. Interestingly, the cards were featured as a promotion in
cigarette packages rather than bubble gum. Can you imagine the ethical backlash that
this practice would have produced today?
Although the sports trading card industry reached $1.2 billion in 1991, industry wide
yearly sales plummeted to $700 million in 1995 and are now stable at between
Photo 1.2 The sports collector’s dream – the Baseball Hall of Fame. The Baseball Hall
of Fame’s plaque gallery, housing plaques for all Hall of Famers, November 26, 2011
in Cooperstown, NY.
Source: Shutterstock.com
26
$400 and $500 million.45 What caused this collapse? One answer is too much
competition. David Leibowitz, an industry analyst, commented that “With the channel
of distribution backed up and with too much inventory, it was hard to sustain prices,
let alone have them continue to rise.” At the beginning of the 1980s there were only
1
a few major card companies (Topps, Donruss, and Fleer) but by the early ’90s there
were sets of cards produced by six different companies, more in the market than ever
before. This flooded market and the cartoon fad cards have hurt the sports trading
card industry. Other problems include labor problems in sports, escalating card prices,
and kids with competing interests.
There is, however, some evidence that the industry will rebound. Citing a glut in the
marketplace and the desire to regain some control over the baseball card industry,
Major League Baseball declined to renew Donruss’ license, leaving Topps and Upper
Deck as the only producers. Perhaps the biggest boost will be selling and trading
cards on the Internet.46 The first major company in this market was the industry
leader, Topps. Each week on etopps.com the company promotes three new limited
edition cards or IPOs (Initial Player Offerings). The buyer can then purchase the card
and takes physical possession, sell the card in an auction, or hold the card until it
appreciates in value. The new product has been a huge success for Topps and could
be the future of the card industry.
Personal training for sports

Another growing category of sports is referred to as personal training. According to the
United States Bureau of Labor Statistics (BLS), employment opportunities for fitness
workers are expected to increase more than 29 percent over the 2008 to 2018 decade.47
Much of this growth is attributed to increasing awareness of the health benefits of
regular exercise. However, these products are produced to benefit participants in sports
at all levels and include fitness centers, health services, sports camps, and instruction.
Fitness centers and health services

When the New York Athletic Club was opened in 1886, it became the first facility
opened specifically for athletic training. From its humble beginning in New York, the
fitness industry has seen an incredible boom. “Pumping iron” was a common phrase
in the 1970s and early 1980s. Moreover, the 1970s aerobics craze started by Dr. Ken
Cooper added to the growth of health clubs across the United States.
It is no secret that a physically fit body is becoming more important to society. The
growth of the fitness industry follows a national trend for people to care more about
their health. In 1993, there were 11,655 clubs in the United States billed as “health
and fitness” centers. In 2012, this number had grown to a record high of 29,960
clubs. Moreover, health club membership climbed to a record high 51.4 million
people.48 Why are people joining health clubs in record numbers? According to a
study conducted by the International Health, Racquet, and Sportsclub Association,
the factors that will continue to support the growth of health club membership in the
United States include the following:
1. The growing number of health clubs that make it more convenient for consumers.
2. The continued and increased promotion of the benefits of exercise by
organizations like the U.S. Surgeon General.
3. More Americans are concerned about the adverse effects of poor exercise and
eating habits.49
27
Sports camps and instruction

Sports camps are organized training sessions designed to provide instruction in a
specific sport (e.g., basketball or soccer). Camps are usually associated with instructing
children; however, the “fantasy sports camp” for aging athletes has received
considerable attention in the past few years. Fantasy sports camps typically feature
current or ex-professional athletes, and the focus is more on having fun than actual
instruction. Nearly every major league baseball team now offers some type of fantasy
camp for adults. For example, Chicago White Sox Fantasy Baseball Camp allows you
(if you’re over 21 years old) to be a major leaguer for a week. The experience consists
of social activities, games, and instruction with former major league players, but this
does not come cheap. The price for participating is roughly $4,200 per person.
Along with camps, another lucrative sports service is providing personal or group
instruction in sports. The difference between instruction and camps is the ongoing
nature of the instruction versus the finite period and intense experience of the camp.
For example, taking golf or tennis lessons from a professional typically involves a
series of half-hour lessons over the course of months or sometimes years. Contrast
this with the camp that provides intense instruction over a week-long period.
Sports information
The final type of sports product that we discuss is sports information. Sports
information products provide consumers with news, statistics, schedules, and stories
about sports. In addition, sports information can provide participants with instructional
materials. Sports-specific newspapers (e.g., The Sporting News), magazines (e.g.,
Sports Illustrated), Internet sites (e.g., cnnsi.com), television (e.g., The Golf Channel),
and radio (e.g., WFAN) can all be considered sports information products. All these
forms of media are experiencing growth both in terms of products and audience.
Consider the following examples of new sports information media. ESPN launched
its new magazine in March 1998 to compete with Sports Illustrated, which leads all
sports magazines with a circulation of more than 3.2 million. The current circulation for
ESPN The Magazine is 2.1 million, but all indications are that there is room at the top
for two sports magazine powerhouses.50
The fastest growing source of sports information is on the World Wide Web, through
use of computers, tablets, and smartphones. A look at the top sports Web sites is
shown in Figure 1.3. Today, consumers are more connected than ever, with more
access and deeper engagement, thanks to the proliferation of devices and platforms.
The playing field for the distribution of sports content has never been deeper or wider.
In fact, social media exchanges are now standard practice in our daily lives. Not only
do consumers have more devices to choose from, but they own more devices than
ever. Connected devices such as smartphones and tablets have become constant
companions to consumers on the go and in the home. The rapid adoption of second
screen alternatives has revolutionized shopping and viewing experiences. Sports-
related content publishers and advertisers seeking to reach sports enthusiasts have
more options than ever to connect with fans as they consume all things sports.
Case in point: it’s likely that at least one billion sports fans worldwide viewed events,
got updates, and checked results of the 2012 London Olympics on digital devices,
including PCs, mobile phones, and tablets.51
A study conducted by Burstmedia (2012) revealed sports fans use tablets and/or
smartphones to access online sports-related content while engaged in a number
28
Unit is million
19.5
19
18
9.2
7
Yahoo Sports
ESPN
1
125.2
Bleacher Report
20
CBS Sports
28 SI.com
NBC Sports
38
SBNation
75.5
Fox Sports
RantSports
ThePostGame
Figure 1.3 Top sports Web sites

Source: Adapted from: http://www.ebizmba.com/articles/sports-websites. Please
note this is a snapshot of the current information at the time.
Web 1.2 Ski.com provides information for ski enthusiasts

Source: Courtesy ski.com
of activities, ranging from watching sports content on television (35.7 percent) to

browsing web content on a desktop/laptop computer (19.4 percent), and/or attending
a live sporting event in person (7.4 percent).52 Tablets and smartphones are emerging
as sports content consumption platforms. The study revealed that among all sports
fans, 31.6 percent use tablets (e.g., an iPad) and 42.9 percent use smartphones (e.g.,
an iPhone) to access online sports content and video at least occasionally. In addition,
17.1 percent use tablets and 23.8 percent use smartphones to watch a live sporting
event or game. Furthermore, Nielsen’s 2011 study on consumer usage identified
31 percent of tablet and smartphone users who downloaded an app in the past 30
29
days, downloaded a sports-related app.53 Sports fans have been leading the charge
and finding new ways to share information and socialize, using the Web as a daily
source of information. Due to the tremendous amount of information that sports fans
desire (e.g., team stats, player stats, and league stats) and the ability of the Web to
supply such information, Web portals and sports marketing make a perfect fit. Sports
fans are the biggest consumers of media via cross-platform devices. According to
ESPN’s Glenn Enoch, sport consumers have an urgent need to stay connected to
sports all day, whether it is game-casting or managing fantasy leagues, or just keeping
up with headlines; that’s what makes sports fans different, the demand to access
information.54 One example of the success of providing sports information via the
World Wide Web is www.ESPN.com (ESPN’s Web site).
ESPN’s multilayered Web portal affords consumer access and tracks consumer
behavior across the growing list of media and Web platforms. According to Julie
Roper, ESPN Director of Advertising Analytics, “It used to be just about high ratings
and reach, and that was enough, now, there’s a lot more accountability, so we have
gotten much more granular.” Considering the global nature of sport, looking across
the multiplatform universe is essential. That is why ESPN developed the following
seven cross media principles to further solidify and integrate multimedia and Web
platform usage and analysis.
ESPN’s seven cross-media principles

1. New media create new strata of users: When a technology is introduced, some
will adopt it but most do not. There is no foreseeable future when every person
has and uses every available device.
2. No new metrics: Measuring new media does not require new metrics – it
requires metrics that unite behavior across different platforms. They may be
called different things in different media, but they have the same meaning: How
many, how often and how long.
3. Users and usage: “How many” is not the same as “How long.” Both users and
usage are valuable metrics in analyzing cross-media behavior, but mean different
things and must be considered separately.
4. A heavy user is a heavy user: The heavier user of one medium tends to be a
heavier user of other media as well.
5. Cross-media usage is not zero-sum: Doing one behavior more does not mean
doing another behavior less. Media usage is no longer constrained to limited
locations and opportunities – people can consume media throughout the day,
wherever they are. We call this “new markets of time.” TV viewing continues to
grow because the media pie is getting larger.
6. Simultaneous usage is widespread but limited: While people do consume
multiple media at the same time, it represents only a small amount of total media
usage – just minutes per day.
7. Best available screen: People are using different platforms at different times
and in different places for different purposes. Cross-media behavior isn’t about
convergence – it is about the opportunity to follow the consumer throughout the
day, fulfilling specific needs and building touch points.
Source: Article author: Mike Reynolds. Rightshold: ESPN.
http://www.multichannel.com/technology/
espn-espouses-seven-principles-cross-media-research/124879.
30
The multidimensional nature of the sports product

As you can see from our previous discussion, there are a wide variety of sports
products. Our earlier definition of the sports product incorporated the distinction 1
between goods and services. Although this is a traditional approach to categorizing
consumer products, the complexity of the sports product makes the goods–services
classification inadequate. Consider the rich diversity of the sports products that we
have just considered. Everything from a hockey puck to the NCAA championship
game of the Final Four in basketball is included in our definition. Because of this
diversity and complexity, we have added an additional dimension to the sports product
known as the body mind continuum. The body mind continuum is based on the
notion that some sports products benefit consumers’ minds, while other products
act on consumers’ bodies. Figure 1.4 illustrates the multidimensional nature of sports
products using two dimensions: goods services and body mind. These dimensions
make up the sports product map.
As you can see, we have positioned some sports products on this map. Exercise
equipment is shown as a good that works on the body of the consumer. At the other
end of the map, attending or watching a sporting event is considered a service that acts
on the mind of consumers. Perhaps we can best describe the differences based on the
mind–body and goods–services dimension by exploring sports camps. Sports camps
for children are primarily instructional in nature. The primary product being sold is the
opportunity for kids to practice their physical skills. However, the fantasy camp targeting
adults is a product that acts more on the mind than body. The adults are purchasing the
“fantasy” to interact with professional athletes rather than the physical training.
Understanding where sports products fall on this map is critical for sports marketers.
Marketers must understand how they want their sports product to be perceived
by consumers so they can understand what benefits to stress. For example, the
marketers of a sporting event may want to sell the intangible excitement or the
tangible features of the arena. This strategic decision is based on a number of factors
that will be considered in detail throughout this text.
Body Mediated
Exercise equipment Fitness center

Sports camps membership
for kids
Fantasy sports camps

for adults
Goods Services
Consuming the
Sports information event as spectator
products
Mind
Figure 1.4 The multidimensional nature of sports products using two dimensions:
Goods–Services and Body–Mind
31
Producers and intermediaries

Producers and intermediaries represent the manufacturers of sports products or
the organizations that perform some function in the marketing of sports products.
Organizations or individuals that perform the function of producer or intermediary
include team owners, sanctioning bodies, agents, corporate sponsors, media, and
sporting goods manufacturers. In the following paragraphs, we take a look at each of
these producers and intermediaries as they relate to the various sports products.
Sports labor
Owners of professional sports franchises, partnerships that own sporting events and
universities that “own” their athletic teams all represent producers of sporting events.
One of the unique aspects of the sports industry is that oftentimes business people
purchase a team because they always dreamed of becoming involved in sports.
Typically, sports owners are entrepreneurs who have made their riches in other
businesses before deciding to get involved in the business of sports. All too often
these owners may be realizing a dream, but fail to realize a profit. Just think of the
risks in owning your own team. Pro sports teams have seasonal revenue streams, few
chances to expand, and frequent labor problems, and are dependent on the health of
just a select few employees.
Many sports-related financial ownership deals – be it racehorses, minor league baseball
teams, or indoor soccer franchises – score high on appeal and low on profits, unless
the team spigot is affiliated with one of the premiere teams or leagues. J. W. Stealey,
former owner of the Baltimore Spirit (now Blast) professional indoor soccer team,
exemplifies the typical sports owner. He says, “Sports has always been my life.
Owning a team is, to be honest, an ego kind of a deal, with all the attention from the
media and involvement with the players.” However, there is just one catch. “Although
I keep expecting us to turn a profit, we never have.”55 However, on the opposite end
of the spectrum are teams like Real Madrid, which generated $650 million in revenues
during the 2011–2012 season and was identified as the world’s most valuable sports
team worth $3.3 billion.56
As Mark Cuban, who bought the majority share of the Dallas Mavericks for $285
million has openly admitted, “having paid $200 million plus for my franchise, I want,
and need, the NBA running on all cylinders in order to maximize the return on my
investment.”57 Even though many franchises struggle to generate profitable year to
year revenues, astonishlngly, valuation numbers of the high demand sport ogranization
often see double-digit increases.
Most professional sports teams are owned by individual investors who have staked
their personal fortunes to buy their franchises, which they often operate as a public
trust. The Washington Redskins, Wizards, and Capitals are owned by individuals and
their investment teams. Corporate ownership of a major league sports team is rare,
but exists. The Chicago Cubs are owned by the Tribune Company and the Atlanta
Braves are owned by Time Warner. However, several recent corporate ownerships
of professional sports teams have fizzled, including the Disney Company’s ownership
of the then-Anaheim Angels and the Mighty Ducks. The Los Angeles Dodgers were
owned for several years by News Corp., before the company sold the team to an
investor group from Boston, who recently sold the team to Guggenheim Baseball
Management which includes former Los Angeles Laker Magic Johnson. Interestingly,
the NFL forbids corporate ownership of franchises.
32
Sanctioning bodies
Sanctioning bodies are organizations that not only market sports products, but also,
more importantly, delineate and enforce rules and regulations, determine the time 1
and place of sporting events, and provide athletes with the structure necessary
to compete. Examples of sanctioning bodies include the NCAA, NFL, NHL, IOC
(International Olympic Committee), and MLB. Sanctioning bodies can be powerful
forces in the sports industry by regulating the rules and organizing the structure of the
leagues and sporting events.
The PGA (Professional Golf Association) of America is one of the largest sanctioning
bodies in the world. It is comprised of more than 22,000 members that promote
the game of golf to “everyone, everywhere.” In addition to marketing the game of
golf, the PGA organizes tournaments for amateurs and professional golfers, holds
instructional clinics, and hosts trade shows.58 Although the PGA has a long history of
advancing golf, other sport sanctioning bodies are surrounded by controversy. Kevin
Iole of the Las Vegas Review Journal describes boxing’s woes as follows. “Imagine
convicted mob boss John Gotti at the helm of the Internal Revenue Service and you
have a sense of what it’s like in boxing with the WBA, WBC, WBO and IBF controlling
world titles. A surgeon general’s warning should be slapped on the side of every one
of their title belts: Sanctioning bodies are hazardous to boxing’s health.”59
NASCAR is another of the most influential and powerful sanctioning bodies in sport.
Ever since NASCAR began sanctioning stock car races, there have been cries of
foul play and that NASCAR has somehow influenced the outcome of a race. One
of NASCAR’s roles is the car inspection process prior to races and this has always
raised questions. Allegations of wrongdoing go all the way back to the early days
of the sport. For example, legendary Junior Johnson’s so-called banana car in 1966, a
Ford that NASCAR said was legal but others say was given a free pass through
inspection because the series was trying to bring the manufacturer back into racing.
On the track, skeptics say NASCAR deliberately uses yellow flags to close up the field
for a tight finish. True or false, there is no doubt of the clout of NASCAR.
Web 1.3 NCAA: One of the most powerful sanctioning bodies

Source: http://www.ncaa.com/
33
Sponsors
Sponsors represent a sport intermediary. As we discussed, corporations can serve as
a consumer of sport. However, corporations also supply sporting events with products
or money in exchange for association with the event. The relationship between the
event, the audience, and the sponsor is referred to as the event triangle.60
The basis of the event triangle is that the event, the audience, and the sponsor
are all interdependent or depend on each other to be successful. All three groups
work in concert to maximize the sport’s exposure. The events showcase talented
athletes and attract the audience who watch the event in-person or through some
medium. The audience, in turn, attracts the sponsor who pays the event to provide
them with access to the audience. In addition, the sponsor promotes the event to
the audience, which helps the event reach its attendance goals. It is safe to say that
sponsors represent an important intermediary or link between the event and the final
consumers of sports – the audience.
Media
Earlier in this chapter, we commented on the growth of media in bringing sporting
events to consumers. In fact, the media, which is considered an intermediary, may
be the most powerful force in sports today and is getting stronger. The primary
revenue generator for these networks is selling prime advertising time. As the price
of advertising time rises, so does the cost of securing broadcast rights; however, the
networks are willing to pay.
Sports organizations cannot survive without the mass exposure of the media, and
the media needs sports to satisfy the growing consumer demand for this type
of entertainment. As the demand for sports programming increases, innovations
in media will emerge. For example, the growing number of consumers utilizing
smartphones, tablet computers as well as other digital platforms to augment
the spectator experience has created new activation platforms for properties
and sponsors.61 Today’s consumers want to be engaged, demanding up-to-the-
minute platforms that provide exclusive content, statistics, and interactive forums
based upon live, on the field, action. Engagement not only extends brand support
but also provides consumers with the opportunity to have real-time interaction
enabling the procurement of exclusive content and an aforementioned sense
of belonging.62 All the while, professional and collegiate leagues, teams, and
sponsors struggle to stay abreast of these “second screen” alternatives. Whether
consumers are spectating in person or live at the event, they are using digital
platforms to deepen their level of engagement and drive value for sponsors.
Agents
Another important intermediary in bringing the athlete to the consumer is the sports
agent. From a sports marketing perspective, sports agents are intermediaries whose
primary responsibility is leveraging athletes’ worth or determining their bargaining
power. The first “super-agent” in sports was Mark McCormack (see box, Sports
Marketing Hall of Fame). Prior to his emergence, agents had never received the
exposure and recognition that they enjoy today. Interestingly, it is not the agents
themselves who have provoked their current rise to prominence, but rather the
increased bargaining power of their clients.
34
The bargaining power of the athletes can be traced to two factors. First, the formation
of new leagues in the 1970s, such as the American Basketball Association (ABA) and
the World Hockey Association (WHA), resulted in increased competition to sign the
best athletes. This competition drove the salaries to higher levels than ever before
1
and made agents more critical. Second, free agency and arbitration have given
players a chance to shop their talents on the open market and question the final offer of
owners. In addition, owners are now able to pay players the higher salaries because of
the multibillion dollar national television contracts and cable television revenues.
Although most people associate agents with contract negotiations, agents do much
more. Here are some of the other responsibilities of the agent:63
X Determines the value of the player’s services
X Convinces a club to pay the player the aforementioned value
X Develops the package of compensation to suit the player’s needs
X Protects the player’s rights under contract (and within the guidelines set by the
collective bargaining agreement)
X Counsels the player about post-career security, both financial and occupational
X Finds a new club upon player free agency
X Assists the player in earning extra income from endorsements, speeches,
appearances, and commercials
X Advises an athlete on the effect their personal conduct has on their career
SPORTS MARKETING HALL OF FAME
Mark McCormack
Many people trace the beginnings of World International. TWI is the largest
modern sports marketing to one man independent producer of sports
– Mark McCormack. In 1960, Mark programming in the world. One of its
McCormack, a Cleveland lawyer, shows, Trans World Sports, is viewed
signed an agreement to represent in more than 325 million homes
Arnold Palmer. With this star client in over 76 countries. Along with
in hand, McCormack began the representing athletes and producing
International Management Group, sports programming, IMG runs
better known as IMG. Today, IMG several sports academies that serve
is a multinational sports marketing as training facilities for elite athletes.
organization that employs over 3,000 Additionally, IMG manages and
people, has sales of over $1 billion, creates sporting events such as the
and represents some of the finest Skins Game, Superstars Competition,
professional athletes in the world. and CART races. Unfortunately for
In addition to his contribution to the sports world, Mr. McCormack
sports marketing in the United States, died in May 2003 at the age of 72.
McCormack has globalized sports
marketing. He opened an Asian office Source: Susan Vinella, “Sports
of IMG in Tokyo in 1969, led in the Marketing Pioneer Dead at 72”;
sponsorship of events in Europe, and “IMG’s McCormack Hailed as
Visionary,” Plain Dealer, May 17,
continues to expand into the Middle
2003, a1; Eric Fisher, “IMG Founder
Eastern markets. One example of
McCormack Spiced Up the Sports
McCormack’s enormous reach into
World,” The Washington Times, May 18,
international markets is IMG’s Trans 2003, c3.
35
Sports equipment manufacturers

Sports equipment manufacturers are responsible for producing and sometimes
marketing sports equipment used by consumers who are participating in sports at
all different levels of competition. Some sporting equipment manufacturers are still
associated with a single product line, whereas others carry a multitude of sports
products. For example, Platypus Sporting Goods only manufactures cricket balls.
However, Wilson manufactures football, volleyball, basketball, golf, tennis, baseball,
softball, racquetball or squash, and youth sports equipment.
Although it is obvious that equipment manufacturers are necessary to supply the
equipment needed to produce the competition, they also play an important role in
sports sponsorship. Sports equipment manufacturers become sponsors because of
the natural relationship they have with sports. For instance, Rawlings, one of the best
known baseball glove manufacturers, sponsors the American and National League
Golden Glove Award, which is given to the best defensive players in their position.
Molten sponsors the NCAA Volleyball Championship by supplying the official game
balls. In addition, Spalding is the official game ball of the WNBA.
Basic marketing principles and processes applied to sport

The sports marketing mix
Sports marketing is commonly associated with promotional activities such as
advertising, sponsorships, public relations, and personal selling. Although this is true,
sports marketers are also involved in product and service strategies, pricing decisions,
and distribution issues. These activities are referred to as the sports marketing mix,
which is defined as the coordinated set of elements that sports organizations use to
meet their marketing objectives and satisfy consumers’ needs.
The basic marketing mix elements are the sports product, price, promotion, and
distribution. When coordinated and integrated, the combination of the basic marketing
mix elements is known as the marketing program. The marketing mix or program
elements are controllable factors because sports marketing managers have control
over each element. In the following sections, we take a closer look at the four
marketing mix elements as they apply to the sports industry.
Product strategies
One of the basic sports marketing activities is developing product and service
strategies. In designing product strategies, decisions regarding licensing,
merchandising, branding, and packaging are addressed. In addition, sports marketing
managers are responsible for new product development, maintaining existing
products, and eliminating weak products. For instance, the Anaheim Ducks recently
changed their name from the Mighty Ducks and also sported new uniforms with
different colors and a redesigned logo. This product decision was a result of cutting
the ties with former owner, The Walt Disney Co. The team kept Ducks in its nickname
after a poll of season ticketholders provided research to support the retention of the
name. “A brand image is so hard to build,” new owner Henry Samueli said. “If you
have to change the name, then you’re wiping out 13 years of brand history, not only in
Orange County but in the whole country.”64
Because so much of sports marketing is based on services rather than goods,
understanding the nature of services marketing is critical for the sports marketing
36
manager. Services planning entails pricing of services, managing demand for services,
and evaluating service quality. For instance, sports marketing managers want to know
fans’ perceptions of ticket ushers, concessions, parking, and stadium comfort. These
service issues are especially important in today’s sports marketing environment
1
because fans equate value with high levels of customer service.
Distribution strategies
Traditionally, the role of distribution is finding the most efficient and effective way to get
the products into the hands of the consumers. Issues such as inventory management,
transportation, warehousing, wholesaling, and retailing, are all under the control of
distribution managers. The advent of sporting goods superstores such as Dick’s Sporting
Goods or the Sports Authority, offering sports memorabilia on the Home Shopping
Network, and marketing sports products on the Internet (e.g., finishline.com) are
examples of the traditional distribution function at work. Sports marketing managers
are also concerned with how to deliver sports to spectators in the most effective and
efficient way. Questions such as where to build a new stadium, where to locate a
recreational softball complex, or how to distribute tickets most effectively are potential
distribution issues facing sports marketers.
Pricing strategies
One of the most critical and sensitive issues facing sports marketing managers today
is pricing. Pricing strategies include setting pricing objectives, choosing a pricing
technique, and making adjustments to prices over time.
The price of tickets for sporting events; fees for personal seat licenses, pay-per-view,
and television sports programming; and the rising costs of participating in recreational
sports such as golf, are all examples of how the pricing function affects sports
marketing.
Promotion strategies
Just ask someone what comes to mind when they think of sports marketing,
and the likely response is advertising. They may think of athletes such as Maria
Sharapova or Peyton Manning endorsing a product or service. Although advertising
is an element of promotion, it is by no means the only one. In addition to advertising,
promotional elements include communicating with the various sports publics through
sponsorships, public relations, personal selling, or sales promotions. Together these
promotional elements are called the promotion mix. When designing promotional
strategies, sports marketers must consider integrating their promotions and using all
aspects of the promotion mix.
The exchange process

Understanding the exchange process is central to any successful marketing strategy.
As generally defined, an exchange is a marketing transaction in which the buyer gives
something of value to the seller in return for goods and services. For an exchange to
occur, several conditions must be satisfied:
X There must be at least two parties.
X Each party must have something of value to offer the other.
X There must be a means for communication between the two or more parties.
37
X Each party must be free to accept or decline the offer.
X Each party must believe it is desirable to deal with the other(s).
Traditionally, a marketing exchange consists of a consumer giving money to receive a
product or service that meets their needs. Other exchanges, not involving money, are
also possible. For example, trading a Pedro Martinez rookie baseball card for a Derek
Jeter card represents a marketing exchange between two collectors.
Examples of elements that make up other exchanges appear in Figure 1.5. The two
parties in the exchange process are called exchange players. These two participants
are consumers of sport (e.g., spectators, participants, or sponsors) or producers and
intermediaries of sport. Sports spectators exchange their time, money, and personal
energy with sports teams in exchange for the entertainment and enjoyment of
watching the contest. Sports participants exchange their time, energy, and money
for the joy of sport and the better quality of life that participating in sports brings. In
sponsorships, organizations exchange money or products for the right to associate
with a sporting event, player, team, or other sports entity.
Although these are rather elementary examples of the exchange process, one of the
things that makes sports marketing so unique is the complex nature of the exchange
process. Within one sporting event, multiple exchanges will occur. Consider a
Sprint Cup NASCAR event. There are exchanges between spectators and the track
ownership (i.e., money for entertainment); spectators and product vendors who are
licensed by NASCAR (i.e., money for goods associated with racing); track owner and
NASCAR sanctioning body (i.e., money for organizing the event and providing other
event services); media and NASCAR (i.e., event broadcast coverage for money);
product sponsors and driving team owner (i.e., promotional benefits for money); and
track owner and driving team owner (i.e., producer of the competition for money).
As you may imagine, trying to sort out all these exchanges, much less determine the
various marketing strategies involved in each exchange, is a complicated puzzle that
can only be solved by having a full understanding of the industry within each sport.
Although the nature of each sporting event and industry is slightly different, designing
a marketing strategy incorporates some fundamental processes that span the sports
industry.
Something of Value
Money
Time
Personal energy
Exchange Players Exchange Players

Sports spectators Sporting events
Sports participants Sports good manufacturers
Organizations Teams
Something of Value
Entertainment
Better quality of life
Enhanced image
Figure 1.5 Model of the sports marketing exchange process
38
The strategic sports marketing process

Sports marketers manage the complex and unique exchange processes in the
sports industry by using the strategic sports marketing process. The strategic 1
sports marketing process is the process of planning, implementing, and controlling
marketing efforts to meet organizational goals and satisfy consumers’ needs.
To meet these organizational goals and marketing objectives, sports marketers
must first anticipate consumer demand. Sports marketers want to know what
motivates consumers to purchase, how they perceive sports products or services,
how they learn about a sports product, and how they choose certain products over
others.
One way sports marketers anticipate demand is by conducting marketing research
to gather information about the sports consumer. Another way that sports marketers
anticipate demand is by monitoring the external environment. For instance, marketing
research was used to determine the feasibility of locating a new NASCAR speedway
in Northern Kentucky. According to developer, Jerry Carroll, “The report was two
volumes and it not only said a major racetrack would work in this area, but it would
be a grand slam.” In addition, Carroll anticipated demand by examining the external
environment. He found out that there are about 51 million people within a 300-mile
radius of the proposed track and that “NASCAR fans and other racing fans, don’t think
anything of driving 300 miles for a race.”65 Thus far, the research has proven to be
true as the Kentucky Speedway has been a huge success since opening its door for
the 2000 season.
Next, sports marketers examine different groups of consumers, choose the group
of consumers in which to direct the organization’s marketing efforts, and then
determine how to position the product or service to that group of consumers. These
market selection decisions are referred to as segmentation, targeting, and position.
The final aspect of the planning phase is to offer products that are promoted, priced,
and distributed in ways that appeal to the targeted consumers. The following article
illustrates how many of the professional sports leagues have recently attempted to
target women and design products that will appeal to the female fan.
GIRLS GET THEIR GAME ON – WITH GREAT GEAR: SPORTS TEAMS

CATER TO WOMEN FANS WITH NEW LINES OF FEMININE
FASHION
Pink it and shrink it. Just a few years As Super Bowl Sunday approaches,
ago, that was the idea. That’s the football’s women fans will have the
amount of thought professional widest choice ever of fashion forward
sports leagues put into the products clothes to support their teams in
they offered their women fans. trendy fits and fabrics.
They’d just take the popular men’s If you haven’t been shopping lately
stuff – the boxy t-shirts, player for team fashions, be aware: There’s
jerseys, boodies and such – make been a revolution.
them smaller and turn them out Pro sports leagues have been
in quintessential girlie color. How madly licensing stylish clothes and
quaint. new accessories to grab more of
39
the multi-billion dollar team fashion says MLB spokesman Matt Bourne,
market. and “all the sports leagues have
All of the big four professional recognized there’s an opportunity
leagues – baseball, football, hockey there” to sell them feminine
and basketball – have seen growth in merchandise to support their teams.
their fem fan base in recent years. Judging from the items on this
This explains the availability of nail page, these include rhinestones,
polish in authorized Major League fitted Ts, jewelry, totes and, yes, even
Baseball team colors, maternity team logo’d Mediterranean Sea bath
tops with “future fan” printed over salts to calm you after a particularly
the baby bump and a footwear plan painful loss by the team whose logo
under development by the National is emblazoned on your chest, cap,
Football League to license stilettos ponytail holder and wristband.
in the same shades as team football “They are a fan and it doesn’t make
jerseys. them less of a fan to wear something
“Our women’s business has with some sequins or a little more
grown twelvefold since 2001 and fitted . . . a little more glitz and glam,”
doubled since 2004,” says Tracey says the National Hockey League’s
Bleczinski, the NFL’s apparel vice marketing executive vice president
president. Brian Jennings.
“For women, shopping is a pastime “Overall, our women viewers
and an activity. They’re constantly are up 45 percent this season over
looking for what’s new. What’s last,” says Lisa Piken, the National
trending,” she says. Hence the Basketball Association’s senior
planned entry into team high heels director of apparel licensing.
(and wedges and boots). She says
44 percent of NFL fans today are Source: Ellen Warren; Courtesy
women. of Chicago Tribune; http://articles.
Major League Baseball has the chicagotribune.com/2011–01–28/
lifestyle/sc-cons-0127-warren-shopping-
largest percentage of women fans
super-bo20110127_1_women-fans-sports-
(45.5 percent) of all pro sports,
leagues-team-colors.
Summary Today sports organizations define their

businesses as entertainment providers.
The sports industry is experiencing
In addition, sports organizations know
tremendous growth, and sports
that to be successful in the competitive
marketing is playing an important role
environment of sports, they must
in this emerging industry. Chapter 1
practice a marketing orientation. An
provided a basic understanding of sports
organization with a marketing orientation
marketing and the sports industry. Sports
concentrates on understanding
marketing is “the specific application of
consumers and providing sports products
marketing principles and processes to
that satisfy consumers’ needs.
sport products and to the marketing of
non-sports products through association Sports marketing will continue to grow
with sport.” The study and practice in importance as sports become more
of sports marketing is complex and pervasive in the U.S. culture and around
interesting because of the unique nature the globe. This phenomenal growth of the
of the sports industry. sports industry can be seen and measured
40
in a number of ways. We can identify those organizations or individuals that
growth by looking at the increasing
numbers of sport spectators, the growth
of media coverage, the increase in
help “manufacture” the sporting event,
such as owners, sanctioning bodies,
and sports equipment manufacturers.
1
sports participation, rising employment Intermediaries are also critical to the
opportunities, and the growth in sports sports industry because they bring
internationally. To better understand the sport to the end user of the sports
this growing and complex industry, a product. Sponsors, the media, and agents
simplified model of the consumer–supplier are the three intermediaries presented in
relationship was presented. this chapter.
The simplified model of the consumer– Although sports marketers must have
supplier relationship in the sports industry a thorough understanding of the sports
consists of three major elements: industry to be successful, the tool of their
consumers of sport, sports products, trade is the sports marketing mix. The
and producers and intermediaries. Three sports marketing mix is defined as the
distinct types of sports consumers are coordinated set of elements that sports
identified in the model. These consumers organizations use to meet their marketing
of sport include spectators who observe mix objectives and satisfy consumers’
sporting events, participants who take needs. The elements of the marketing
part in sporting events, and sponsors mix are sports products, distribution or
who exchange money or product for the place, pricing, and promotion.
right to be associated with a sporting In addition to the marketing mix, another
event. The spectators, participants, and central element of marketing is the
sponsors use sports products. exchange process. The exchange process
A sports product is a good, service, is defined as a marketing transaction
or any combination of the two that is in which the buyer gives something of
designed to provide benefits to a sports value to the seller in return for goods and
consumer. The primary sports product services. One of the things that makes
consumed by sponsors and spectators the sports industry so unique is the
is the sporting event. Products related complex nature of the exchange process
to the event are athletes such as Derek and the many exchanges that take place
Jeter and arenas such as the Staples within a single sporting event.
Center, which both provide their own To manage the complexities of the
unique benefits. Other categories sports industry and achieve organizational
of sports products common to the objectives, sports marketers use the
sports industry include sporting goods strategic sports marketing process.
(e.g., equipment, apparel and shoes, The strategic sports marketing
licensed merchandise, collectibles, and process consists of three major
memorabilia), personal training services parts: planning, implementation, and
for sports (e.g., fitness centers and sports control. The planning process begins
camps), and sports information (e.g., by understanding consumers’ needs,
news and magazines). Because there are selecting a group of consumers with
a variety of sports products, it is useful similar needs, and positioning the sports
to categorize these products using the product within this group of consumers.
sports product map. The final step of the planning phase is to
Producers and intermediaries represent develop a marketing mix that will appeal
the third element of the simplified model to the targeted group of consumers and
of the consumer–supplier relationship in carry out the desired positioning. The
the sports industry. Producers include second major part of the strategic sports
41
marketing process is putting the plans goals are being met. This third, and final,
into action or implementation. Finally, the part of the strategic sports marketing
plans are evaluated to determine whether process is called control.
organizational objectives and marketing
Key terms X personal training X sports equipment

X producers and manufacturers
X agent intermediaries X sports information
X amateur sporting event X professional sports X sports marketing
X benefits X sanctioning X sports marketing mix
X exchange X services X sports product
X goods X simplified model of X sports product map
X licensing the consumer–supplier X sports sponsorship
X marketing myopia relationship X strategic sports
X marketing orientation X spectators marketing process
X organized sporting X sport X unorganized sports
events X sporting event
X participants X sporting goods
Review questions 9. What is the marketing exchange

process, and why is the exchange
1. Define sports marketing and process critical for sports marketers?
discuss how sports are related to 10. Define the strategic sports marketing
entertainment. process, and discuss the various
2. What is a marketing orientation, and elements in the strategic sports
how do sports organizations practice marketing process.
a marketing orientation?
3. Discuss some of the ways that Exercises
the sports marketing industry is
growing? 1. Provide five recent examples of
4. Outline the simplified model of the sports marketing that have been in
consumer–supplier relationship in the news and describe how each
the sports industry. relates to our definition of sports
5. What are the three distinct types marketing.
of sports consumers? What are 2. How does sport differ from other
the different types of spectators? forms of entertainment?
How are sports participants 3. Provide an example of a sports
categorized? organization that suffers from
6. Define sports products. What are the marketing myopia and another sports
different types of sports products organization that defines its business
discussed in the simplified model of as entertainment. Justify your choices.
the consumer–supplier relationship 4. Attend a high school, college,
in the sports industry? and professional sporting event
7. Describe the different producers and comment on the marketing
and intermediaries in the simplified orientation of the event at each level
model of the consumer–supplier of competition.
relationship in the sports industry. 5. Provide three examples of how you
8. What are the basic elements of the would measure growth in the sports
sports marketing mix? marketing industry. What evidence
42
do you have that the number of Television Exposure and the Position of the
Motorcycle Rider,”Cyber-Journal of Sport
6.
people participating in sports is
growing?
Discuss the disadvantages and
Marketing [Online], vol. 2, no. 2 (1998).
Available from: http://fulltext.ausport.gov.au/
fulltext/1998/cjsm/v2n2/arthur22.htm.
1
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7. Develop a list of all the sports 9 Kristi Lee Covington-Baker, 2007, A History
products produced by your college of Sports Marketing and the Media, UMI
Microform 1450380, Proquest Information
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16 Hervé Collignon, Nicolas Sultan, and Clément
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and Bad – News about MBL’s Attendance 39 Cisco Won’t Deny Sports Fans from Fast
Figures” (May 3, 2011). Available from: Internet, 2011. Last update – July. Available
http://sportsillustrated.cnn.com/2011/writers/ from: www.electronicbytes.net.
tom_verducci/05/03/bud.selig.attendance/, 40 Kevin Baumer, “14 Innovations that will
accessed June 6, 2014. make Sports Stadiums of the Future
23 Street & Smith’s Sports Business Daily, Unrecognizable,” Business Insider (March 9,
“NHL Finishes Regular Season With 2011).
Attendance Up 1.8%; Isles See 19.3% 41 SFIA, 2013, Participation Topline Report,
Increase,” Sport Business Journal Sport & Fitness Industry Association in
(April 11, 2012). Available from: http:// conjunction with Sport Marketing Surveys,
www.sportsbusinessdaily.com/Daily/ Silver Spring, MD.
Issues/2012/04/11/Research-and- 42 Ibid.
Ratings/NHL-EC-gate.aspx?hl=nhl%20 43 Sports Licensing Report, 2010, EPM
attendance&sc=0. Communications, Inc. and The Licensing
24 Who Were the Real Winners of the Beijing Letter, 2012.
Olympics? 2008, Just Ask Nielsen Study. 44 1998 State of the Industry Report, 1998,
25 ESPN Upfront (2013). Available from: http:// Sporting Goods Manufacturers Association,
www.espncms.com/upfront2013/. Silver Spring, MD.
26 Jason Cruz, 2013, ESPN Ratings Down 45 T. Corwin,“Sports-Card Dealers Strike Out;
as Fox 1 Sports Prepares for Launch. Last Web Traders Hurting Bricks-and-Mortar
update – July 9. Available from: http:// Stores, Owners Say,” The Plain Dealer
mmapayout.com/2013/07/espn-ratings-down- (2000), 1C.
as-fox-sports-1-prepares-for-launch. 46 Ibid.
27 Bob Jordan, 2009, The Media Audit. Last 47 American Academy of Personal Training
update–October. Available from: www. Employment Outlook, 2013. Last update –
themediaaudit.com. October 5. Available from: http://www.aapt.
28 Sports Costs Not the Only Reason for Rising edu/employment.html.
Multichannel Bill, SNL Kagan Whitepaper, 48 IHRSA’s Annual Health Club Consumer
(January 2013). Study, 2012, International Health, Racquet &
29 Kantar Media Sports, Global Sports Media Sportsclub Association. Available from: http://
Consumption Report: A Study of Sports www.ihrsa.org/consumer-research, accessed
Media Consumption and Preferences in the June 6, 2014.
US Market (May 2013). Perform, London. 49 “U.S. Health Club Industry Reaches a Record
30 Sports Market Place Directory, 2014, Grey High,” Club Industry (May 1, 2003).
House Publishing, Armenia, NY. 50 Russell Adams, “Top Sports Titles Find
31 Michele Himmelberg, “The Sporting Life: There’s Room for Two” [Online], Sports
Long Hours, Low Pay, Starting at the Business Journal (September 22, 2013).
Bottom, What Fun!” Orange County Register Available from: www.sportsbusinessjournal.
(June 14, 1999). com/article.cms, accessed May 10, 2014.
32 Nick Pandya, “Sporting a New Career,” The 51 “The London Olympics: Marketers in the
Guardian (1999). Starting Blocks,” eMarketer (June 28, 2012).
33 “NFL Renews Television Deals,” ESPN/ Available from: http://www.emarketer.com/
Associated Press (December 14. 2011). Article.aspx?R=1009159&ecid=a6506033675
34 B. Nichols, 2011, Time and Money: Using d47f881651943c21c5ed4, accessed June 6,
Federal Data to Measure the Value of 2014.
Performing Arts Activities. NEA Research 52 “Sports Fans and Digital Media: A Scorecard
Note 102, National Endowment for the Arts, on Preferences and Behaviors,” Burstmedia
Washington, DC. Online Insights (September 1, 2012).
35 Nigel Pope, “Overview of Current Available from: http://www.burstmedia.com/
Sponsorship Thought” [Online]. Cyber- pdf/burst_media_online_insights_2012_09.
Journal of Sport Marketing, vol. 2, no. 1. pdf, accessed June 10, 2014.
(1998). Available from: http://fulltext. 53 Stephen Master, “Experts Discuss Sports &
44
Mobile: The Perfect Marriage,” NielsenWire 60 Phil Schaaf, Sports Marketing: It’s Not Just
(October 10, 2011). a Game Anymore (Prometheus Books,
54 Terry Lefton, “ESPN Well Researched
Sales Pitch, Street & Smith’s Sports
Business Journal,” Sports Business Daily
Amherst, MA, 1995).
61 IEG Sponsorship Report, IEG Sponsorship
Report – Activation, Double Vision: Activating
1
(January 2, 2012). Available from: http:// Through the Second Screen (July 2, 2012).
www.sportsbusinessdaily.com/Journal/ 62 Mark Lyberger, “Twitter Wins Gold at the
Issues/2012/01/02/In-Depth.aspx, accessed First Social Media Olympics,” PR Moment
June 6, 2014. (August 16, 2012). Available from: http://
55 Jill Fraser, “Root, Root, Root for Your Own www.prmoment.com/1111/twitter-wins-
Team,” Inc. (July 1, 1997). gold-at-first-social-media-olympics-says-mark-
56 “Forbes Announces the World’s 50 Most r-lyberger-kent-state-university.aspx.
Valuable Sports Teams,” Forbes Inc. (July 63 Frequently Asked Questions [Homepage of
2013) Sim-Gratton, Inc.], [Online]. Available from:
57 Angelo Bruscus, “Cuban Swears by the www.home.istar.ca/~simagenty/faq.html,
Bottom Line,” Seattle Post Intelligence accessed June 10, 2009.
Reporter (June 20, 2007). 64 “Mighty No More: Ducks Change Name,
58 The Role of the PGA in America. Available Uniforms, Logo,” National Hockey League
from: www.pga.com/FAQ/pga_role.html, Newswire (June 22, 2006).
accessed May 8, 2014. 65 Andrea Tortora, “NASCAR Track City’s
59 Kevin Iole, “Sanctioning Bodies Endanger Future?” The Enquirer (November 16, 1997).
Boxing,” Las Vegas Review Journal (April 29,
2006) [Online]. Available from: http://www.
reviewjournal.com/ivrj_home/. . .07477,
accessed May 10, 2014.
45
CHAPTER 2
Contingency framework
for strategic sports
marketing
• Understand the contingency framework for strategic sports
marketing.
• Describe the strategic sports marketing process.
• Describe the major internal contingencies and explain how they
affect the strategic sports marketing process.
• Describe external contingencies and explain how they affect the
strategic sports marketing process.
• Discuss the importance of monitoring external contingencies and
environmental scanning.
• Explain and conduct a SWOT analysis.
• Define the internal and external contingencies and relate them to
the strategic sports marketing process.
2 Contingency framework for strategic sports marketing
The foundation of any effective sports organization is a sound, yet flexible, strategic
framework. The process should be systematic and well organized, but must be readily
adaptable to changes in the environment, as the following article illustrates. Each
strategic marketing process may have unique characteristics, but the fundamentals
are all the same. To help make sense of the complex and rapidly changing sports
industry, we use a contingency framework to guide the strategic sports marketing
process. For the remainder of this chapter, let us look at an overview of this process. 2
NBA RELEASES 2011–12 REGULAR SEASON SCHEDULE
The wait is over. The highly the lockout. The number of meetings
anticipated 66-game NBA regular between conference teams was also
season schedule has officially been trimmed. But for the most part, the
released. Schedules for every team league made sure the popular teams
are now posted on their websites. would meet more than once. There
All in all, the schedule features 42 was no chance, for example, the Heat
back-to-back-to-back games, with wouldn’t see the Lakers. Remember,
the L.A. Lakers having given the the league is trying to reel in
honor to commence their season in the audience, not chase it away.
such manner, while the defending Therefore, you will see the games
champs Dallas Mavericks will play you want to see.
on consecutive nights a whopping 20 There are 42 back-to-back-to-
times. From NBA.com: back games in the overall schedule.
NBA fans have 66 games per team Each team has at least one of these
crammed into four months, with “triples,” some more than one. There
basketball guaranteed almost every were 64 triples in 1999 in a 50-game
night of the week. If the NBA was season, which makes this season less
dark for the lockout, the league will taxing in that regard. In all, the 30
more than make up for that inactivity teams have 529 back-to-back games.
with this condensed and somewhat The schedule-makers had the
crazed 2011–12 schedule. complex and touchy job of trying
Honestly, it doesn’t get busier to satisfy the networks, teams and
than this. Whether “busy” means fans, a process slightly less tricky
“better,” we’ll see. But there will be than getting the union and owners to
basketball, and plenty of it, between agree on a labor deal.
Christmas Day and late April. Back- Anyway, it’s necessary to examine
to-back games will become the new the contenders and the schedule
norm for all teams, along with four- challenges they face. Let’s begin.
games-in-five-nights. And games on The Celtics
three consecutive nights, which every They may be proud and
team must endure at least once, will championship-tested and veteran-
challenge hamstrings and lungs. smart and all that. But they’re also
“Those back-to-back-to-backs will gray at the temples. And the schedule
be tough for every team,” said the will be an endurance test for the
Hawks’ Josh Smith. “We’re a young Celtics and others with a nucleus
team, but we get tired, too.” (Ray Allen, Kevin Garnett and Paul
Not every team will play each other Pierce in Boston’s case) well into their
at least twice; such is the casualty of 30s. Ice bags and muscle relaxers
47
will be plentiful and handy to keep The Lakers

the Celtics fresh as possible for the They open with a triple, although the
playoffs. Christmas blockbuster with the Bulls
Their triple: April 13–15 at Toronto, is followed by the Kings and Jazz,
New Jersey and Charlotte, which providing the Lakers somewhat of a
is actually mild from a competitive cushion. But remember this: Andrew
standpoint. Bynum won’t be around; he must
Their back-to-backs: 19, a bit on the sit the first five games for cheap-
high side, but nothing cruel in terms shotting J.J. Barea last spring.
of overnight travel distances. The Lakers must also pay a
Their killer stretch: They play nine personal price for being the league’s
of 10 on the road in March, just when marquee team, having to work
the body begins to ache and the Christmas, New Year’s Eve and New
postseason is in sight. Year’s Day. There are three games
Key games: Miami and Chicago with the Thunder and 2 with Miami.
four times each, Thunder, Mavericks Their killer stretch: In January,
and Lakers twice. home vs. Dallas, then on the road
The Bulls against Miami and Orlando. That’s a
With Derrick Rose coming off an tough stretch only if Dwight Howard
MVP season and the Bulls certainly is still in Orlando.
wiser from being bounced from the The Heat
playoffs by Miami, Chicago hopes Last season the Big Three had
to make a habit of deep postseason a rough start to their new and
runs. Well, we’ll know more about the controversial era, stumbling out
Bulls right away, with seven of their of the gate at 9–8 and causing all
first nine games on the road. But they sorts of water-cooler and Internet
only play the Lakers and Thunder conversation. Well, only five of their
once each. first 12 games are against returning
Their killer stretch: A nine-game playoff teams. And yeah, LeBron
road swing from late January James and Dwyane Wade and
through mid-February, with stops in Chris Bosh sort of know each other
Miami, Philly, New York and ending a little better now. They play the
in Boston. Some nights will feel like Thunder twice, Celtics and Bulls four
playoff nights for sure. times each. The Heat play 18 of their
The Mavericks final 29.
The defending champs, who have The Dilemma: There are two
their fair share of age, must cope off days between road games in
with 20 back-to-backs, although their Indiana and Cleveland. Does Miami
triple (Suns, Kings, Warriors) isn’t and LeBron dare spend those days
gruesome. They play the Thunder walking the streets of Cleveland?
and Lakers four times each, Heat and Their killer stretch: They play
Celtics twice. Boston twice, Philly, Oklahoma City,
Their killer stretch: Right before Chicago and Memphis in a six-game
the All-Star break, when they April span.
play at Philly and New York, then The Knicks
return home for Boston and the The Garden is undergoing a pricey
Lakers. renovation, where the architects
made the insensitive decision to
48
eliminate the Willis Reed tunnel. new season. Surely you recall that
Hopefully for the Knicks’ sake, they epic seven-game playoff series?
create a new landmark soon enough. Their killer stretch: In February,
Anyway, home will feel like home, when they’ll see the Celtics, Lakers,
since the Knicks play no more than at Philly and Orlando, then the Hawks
four straight on the road all season.
There are 19 back-to-backs.
and Mavericks.
Those are the meatier parts of
2
Speaking of home: There will be no the schedule. But there are other
“homecoming” for Carmelo Anthony diversions. The Nets’ final game in
or Amar’e Stoudemire, since the New Jersey is April 23 against the
Knicks won’t visit Denver or Phoenix. Sixers before moving on to Brooklyn
Their killer stretch: At Boston, then next season.
the Mavericks and Spurs in March. Deron Williams, meanwhile, will
The Thunder return to Utah, the site of his forced
exit last year, on January 14. Also,
This will be the first full season with
make sure to catch Chris Paul in New
Kevin Durant, Russell Westbrook
York on February 17.
andKendrick Perkins, who figured
Unless, of course, Paul is a Knick by
to be joined by an improving
then.
surrounding cast. That should be
enough for basketball to overtake
Source: Slamonline.com; http://www.
football in Oklahoma pretty quickly. slamonline.com/online/nba2011/12/
The Rematch: They play at nba-releases-2011–2012-regular-season-
Memphis just three games into the schedule/.
Photo 2.1 After the lockout, the NBA is still thriving. Chris Bosh #4 participates in
an NBA basketball game at the Air Canada Centre on January 24, 2010 in Toronto,
Canada. The Toronto Raptors beat the Los Angeles Lakers 106–105.
49
Contingency framework for strategic sports marketing

Sports marketing managers must be prepared to face a continually changing
environment. As Burton and Howard pointed out, “marketers considering careers
or already employed in sports marketing must be prepared for unexpected, often
negative actions that jeopardize a sports organization’s brand equity.”1 Think about
what can happen over the course of an event or a season. The team that was
supposed to win the championship cannot seem to win a game or the likely cellar
dwellers end up contending for championships. Take, for example, the Detroit Tigers.
They lost 406 games from 2002 through 2005 and their last winning season was
1993. Suddenly they win the American League Championship and go to the World
Series in 2006 and 2012. The New Orleans Saints also provide a great example of a
team who faced tremendous odds after suffering displacement from Hurricane Katrina
and went on to unexpectedly make the 2006 NFL playoffs and win the Super Bowl
in 2010. In fact, Hurricane Katrina and its impact on the city of New Orleans and the
Saints ranks as one of the most compelling examples of the changing environment
that marketers cannot plan for.
Other unexpected events become commonplace in the sports marketing landscape.
The star player gets injured halfway through the season. Attendance at the sporting
event is affected by poor weather conditions. Leagues are shut down by lockouts.
Team owners threaten to move the franchise, build new stadiums, and change
personnel. All this affects the sports marketing process.
At the collegiate level, a different set of situations may alter the strategic
marketing process. For example, players may be declared ineligible because of
grades, star players may leave school early to join the professional ranks, programs
may be suspended for violation of NCAA regulations, or conferences may be
realigned.
Sports marketers need to be prepared for either positive or negative changes in the
environment. These factors are out of the sports marketer’s control, but they must be
acknowledged and managed. Sports marketers must be prepared to cope with these
rapid changes. One model that provides a system for understanding and managing
the complexities of the sports marketing environment is called the contingency
framework for strategic sports marketing.
Contingency approaches
Contingency models were originally developed for managers who wanted to be
responsive to the complexities of their organization and the changing environments
in which they operate.2 Several elements of the contingency framework make it
especially useful for sports marketers. First, sports marketers operate in unpredictable
and rapidly changing environments. They can neither predict team or player success
nor control scheduling or trades. A quote by former New York Mets Marketing Vice
President Michael Aronin, who spent 13 years with Clairol, captures the essence of
this idea: “Before, I had control of the product, I could design it the way I wanted it
to be. Here the product changes every day and you’ve got to adapt quickly to these
changes.”3
Second, the contingency approach suggests that no one marketing strategy is more
effective than another. However, one particular strategy may be more appropriate
than another for a specific sports organization in a particular environment. For
example, sports marketers for the Boston Red Sox have years of tradition on their
50
side that influence their strategic planning. This marketing strategy, however, will
not necessarily meet the needs of the relatively new teams such as the Montreal
Impact (2012), Portland Timbers (2011), Vancouver Whitecaps FC (2011), and
Philadelphia Union (2010) of MLS. Likewise, strategies for an NCAA Division I program
are not always appropriate for a Division II program. The contingency framework
can provide the means for developing an effective marketing strategy in all these
situations.
Third, a contingency model uses a systems perspective; one that assumes an
2
organization does not operate in isolation but interacts with other systems. In other
words, although an organization is dependent on its environment to exist and be
successful, it can also play a role in shaping events outside the firm. Think about the
Chicago Blackhawks and all the resources required from the environment to produce
the core product – entertainment. These resources include professional athletes,
owners, management and support personnel, and minor league franchises to supply
talent, facilities, other competitors, and fans. The different environments that the
Chicago Blackhawks actively interact with and influence include the community, the
NHL, sponsors, employees and their families, and the sport itself. Understanding the
relationship between the organization and its many environments is fundamental to
grasping the nature of the contingency approach. In fact, the complex relationship that
sports organizations have with their many publics (e.g., fans, government, businesses,
and other teams) is one of the things that makes sports marketing so complicated and
so unique.
One way of thinking about the environments that affect sports organizations is to
separate them on the basis of internal versus external contingencies. The external
contingencies are factors outside the organization’s control; the internal are
considered controllable from the organization’s perspective. It is important to realize
that both the internal and external factors are perceived to be beyond the control,
though not the influence, of the sports marketer.
The essence of contingency approaches is trying to predict and strategically align
the strategic marketing process with the internal and external contingencies. This
alignment is typically referred to as strategic fit or just “fit.” Let us look at the
contingency approach shown in Figure 2.1 in greater detail.
The focus of the contingency framework for sports marketing, and the emphasis of
this book, is the strategic sports marketing process. The three primary components
of this process are planning, implementation, and control. The planning phase
begins with understanding the consumers of sports. As previously discussed, these
consumers may be participants, spectators, or perhaps both. Once information
regarding the potential consumers is gathered and analyzed, market selection
decisions can be made. These decisions are used to segment markets, choose the
targeted consumers, and position the sports product against the competition. The
final step of the planning phase is to develop the sports marketing mix that will most
efficiently and effectively reach the target market.
Effective planning is merely the first step in a successful strategic sports marketing
program. The best-laid plans are useless without a method for carrying them out and
monitoring them. The process of executing the marketing program, or mix, is referred
to as implementation. The evaluation of these plans is known as the control phase of
the strategic marketing plan. These two phases, implementation and control, are the
second and third steps of the strategic sports marketing process.
51
STRATEGIC SPORTS MARKETING PROCESS
PLANNING
EXTERNAL INTERNAL
CONTINGENCIES CONTINGENCIES
(CHAPTER 2) 1. Understanding consumers’ needs (CHAPTER 3)
A. Market research (chapter 3)
B. Consumers as participants (chapter 4)
Competition Organization’s vision
Legal/Political C. Consumers as spectators (chapter 5) Organization’s mission
Demographics fit Organization’s objectives
fit
Technology 2. Market selection decisions (chapter 6) & marketing goals
Culture A. Market segmentation Organization’s strategy
Physical B. Target markets Organization’s culture
environmental C. Positioning
Economy
3. Marketing mix decisions (chapters 7–12)
A. Sports products
B. Pricing
C. Promotion
D. Place
IMPLEMENTATION (chapter 13)
CONTROL (chapter 13)
Figure 2.1 Contingency framework for strategic sports marketing
As you can see from the model, a contingency framework calls for alignment, or
fit, between the strategic marketing process (e.g., planning, implementation, and
control) and external and internal contingencies. Fit is based on determining the
internal strengths and weaknesses of the sports organizations, as well as examining
the external opportunities and threats that exist. External contingencies are defined
as all influences outside the organization that can affect the organization’s strategic
marketing process. These external contingencies include factors such as competition,
regulatory and political issues, demographic trends, technology, culture and values,
and the physical environment. Internal contingencies are all the influences within
the organization that can affect the strategic marketing process. These internal
contingencies usually include the vision and mission of the organization, organizational
goals and strategies for reaching those goals, and the organizational structure and
systems.
The strategic sports marketing process was defined in Chapter 1 as the process of
planning, implementing, and controlling marketing efforts to meet organizational goals
and satisfy consumers’ needs (see also Figure 2.2) and is the heart of the contingency
framework. The planning phase, which is the most critical, begins with understanding
the consumers of sport through marketing research and identifying consumer wants
and needs. Next, market selection decisions are made, keeping the external and
internal contingencies in mind. Finally, the marketing mix, also known as the four Ps,
is developed and integrated to meet the identified sports consumer needs.
Once the planning phase is completed, plans are executed in the implementation
phase. In this second phase of the strategic sports marketing process, decisions such
as who will carry out the plans, when the plans will be executed, and how the plans
will be executed are addressed. After implementing the plans, the third phase is to
evaluate the response to the plans to determine their effectiveness. This is called
the control phase. The strategic sports marketing process and its three phases will
be described in detail in the remainder of the book. Let’s turn to a discussion of the
internal and external contingencies for the rest of this chapter.
52
PLANNING PHASE
Step 1: Understanding Consumers’ Needs

A. Marketing research
B. Consumers as participants
C. Consumers as spectators
Step 2: Market Selection Decisions

2
A. Marketing segmentation
B. Target markets
C. Positioning
Step 3: Marketing Mix Decisions

A. Sports products
B. Pricing
C. Promotion
D. Place
IMPLEMENTATION PHASE
CONTROL PHASE
Figure 2.2 Strategic sports marketing process
Internal and external contingencies

A complex relationship exists between internal contingencies and the strategic
marketing process. Sports marketers must ensure that the marketing strategies
are aligned with the broader organizational purpose. Factors controlled by
the organization such as its vision and mission, organizational objectives, and
organizational culture must be considered carefully. Additionally, this organizational
strategy is often based on changes that occur in the environment. It is at this point
that external and internal contingencies must complement one another. Let’s
take a further look at the various factors that make up the internal and external
contingencies and gain an appreciation for just how much they can influence the
strategic marketing process.
Internal contingencies
Internal contingencies are all influences within and under the control of the sports
organization that can affect the strategic sports marketing process. Typically, the
internal or controllable factors, such as designing the vision and mission, are the
function of top management. In other words, these organizational decisions are
usually made by top management rather than sports marketing managers. The more
marketing-oriented the organization, the more the marketing function becomes
involved in the initial development and refinement of decisions regarding the internal
contingencies. Irrespective of their involvement, sports marketers should have
an understanding of internal contingencies and how they influence the strategic
marketing process. Let us describe some of the internal contingencies that sports
marketers must consider within the contingency framework.
53
Vision and mission

One of the first steps in developing a strategic direction for an organization is shaping
a vision. The vision has been described as a long-term road map of where the
organization is headed. It creates organizational purpose and identity. A well-written
vision should be a prerequisite for effective strategic leadership in an organization. The
vision should address the following:
X Where does the organization plan to go from here?
X What business do we want to be in?
X What customer needs do we want to satisfy?
X What capabilities are required for the future?
As you can see, the organizational questions addressed in the vision are all
oriented toward the future. The mission, however, is a written statement about
the organization’s present situation. The purpose of a written mission statement
is to inform various stakeholders (e.g., consumers, employees, general public, and
suppliers) about the direction of the organization. It is particularly useful for motivating
employees internally and for communicating with consumers outside the organization.
Here are examples of mission statements constructed by Under Armour Performance
gear4 and the Kent State University Athletic Department.5
Mission of Under Armour

To make all athletes better through passion, science and the relentless pursuit of
innovation.
Mission and objectives of Kent State University Athletic

Department
The Intercollegiate Athletic program at Kent State University competes at the highest
National Collegiate Athletic Association (NCAA) Division I level (FBS for football) and
provides select men and women with the opportunity, challenge and support to
achieve their full academic and athletic potential, while operating as an integral part of
the University’s educational mission.
Intercollegiate Athletics intends to intensify its pursuit of its nine major categories of
objectives within the current planning horizon:
X Support and enhance University mission and objectives by furnishing an academic
support system that enables student athletes to graduate in a timely fashion and at
a higher rate than in the overall University undergraduate population.
X Prepare student athletes to be responsible citizens who make positive
contributions to society.
X Facilitate competition in the Mid-American Conference (MAC) at an echelon
meriting regional and national post-season play.
X Comply with the spirit and letter of MAC and NCAA rules and support the
associations’, as well as the University’s, principles of sportsmanship and ethical
conduct.
X Employ and develop coaches who are also teachers and role models devoted to
the welfare of student athletes.
X Achieve gender equity and be proactive regarding the intent of affirmative action
in the recruitment and retention of student athletes and the hiring of coaches and
athletic staff.
54
X Augment attendance and revenue, so as to encourage esprit de corps and
stimulate monetary contributions from alumni, friends and corporations.
X Operate in financial solvency.
X Represent the University in an exemplary fashion to alumni, friends, prospective
students, and the general public, as well as play an active role in the community of
Northeastern Ohio.
These mission statements address several key questions: 2
X What business are we currently in?
X Who are our current customers?
X What is the scope of our market?
X How do we currently meet the needs of our customers?
In addition to addressing these four key questions, the mission statements for Under
Armour and the Kent State University Athletic Department also contain statements
about the core values of the organization. In fact, these core values are fundamental to
carrying out the vision and mission of the organization.
How do mission and vision influence the strategic sports marketing process? Both
vision and mission define the consumers of sport in broad terms. For example,
Under Armour sees its customers from a global perspective. Also, vision and mission
define the products and services that are being marketed to consumers. The vision
and mission also help to identify the needs of consumers and ultimately guide the
marketing process in meeting these needs.
Nike provides an excellent illustration of the dependent relationship among vision,
mission, and the strategic marketing process. Originally, the product was aimed
toward the serious track athlete who wanted a low-priced, high-quality performance
shoe for competition. By 1969, Nike had begun to build a strong brand reputation as
the shoe for competitive athletes. Over time, however, Nike redefined and broadened
its vision and mission. In 1978, footwear represented 97 percent of Nike’s total
sales. Today, this percentage has decreased to roughly 67 percent as Nike produces
footwear and apparel to meet the needs of almost every consumer in global markets.
Nike’s strategic decision to sell more than just high-performance footwear aimed only
at serious athletes has changed the entire marketing mix. Now, more Nike products
are being sold at more places than ever before. In fact, Nike’s mission is “to bring
inspiration and innovation to every athlete in the world.”6
Organizational objectives and marketing goals

Organizational objectives
The objectives of the organization stem from vision and mission. They convert
the vision and mission into performance targets to be achieved within a specified
timeframe. Objectives can be thought of as signposts along the road that help an
organization focus on its purpose as stated in the mission statement. More specifically,
an objective is a long-range purpose that is not quantified or limited to a time period.
Organizational objectives are needed to define both financial and strategic direction.
Organizational leaders typically develop two types of objectives: financial objectives
and strategic objectives. Financial objectives specify the performance that an
organization wants to achieve in terms of revenues and profits. Achieving these
financial performance objectives is critical to the long-term survival of the organization.
Some examples of financial objectives include the following:
55
X growth in revenues;
X increase in profit margins; and
X improved return on investment (ROI).
Strategic objectives are related to the performance and direction of the organization.
Achieving strategic objectives is critical to the long-term market position and
competitiveness of an organization. Whereas strategic objectives may not have a
direct link to the bottom line of an organization, they ultimately have an impact on its
financial performance. Here are a few examples of general strategic objectives:
X increased market share;
X enhanced community relations efforts; and
X superior customer service.
Marketing goals
Marketing goals guide the strategic marketing process and are based on organizational
objectives. A goal is a short-term purpose that is measurable and challenging, yet
attainable and time specific. Specific, measurable, attainable, reachable, and timely,
the acronym SMART is often used to help define the framework of marketing goals.
Here is a sampling of common marketing goals:
X Increase ticket sales by 5 percent over the next year.
X Introduce a new product or service each year.
X Generate 500 new season ticketholders prior to the next season.
X Over the next six months, increase awareness levels from 10 to 25 percent for
women between the ages of 18 and 34 regarding a new sports product.
Although multiple goals are acceptable, goals in some areas (e.g., marketing and
finance) may conflict, and care must be taken to reduce any potential conflict. After
developing marketing goals, the organization may want to examine them based on the
following criteria:
X Suitability – The marketing goals must follow the direction of the organization and
support the organization’s business vision and mission.
X Measurability – The marketing goals must be evaluated over a specific timeframe
(such as the examples just discussed).
X Feasibility – The marketing goals should be within the scope of what the
organization can accomplish, given its resources.
X Acceptability – The marketing goals must be agreed upon by all levels within
the organization. Top management must feel that the goals are moving the
organization in the desired direction; middle managers and first-line supervisors
must feel the goals are achievable within the specified timeframe.
X Flexibility – The marketing goals must not be too rigid, given uncontrollable
or temporary situational factors. This is especially true when adopting the
contingency framework.
X Motivating – The marketing goals must be reachable but challenging. If the goals
are too easy or too hard, then they will not direct behavior toward their fulfillment.
X Understandability – The marketing goals should be stated in terms that are clear
and simple. If any ambiguities arise, people may inadvertently work against the goals.
X Commitment – Employees within the sports marketing organization should feel
that it is their responsibility to ensure goals are achieved. As such, managers must
empower employees so everyone in the organization is committed and will act to
achieve goals.
56
X People participation – As with commitment, all employees in the organization
should be allowed to participate in the development of marketing goals. Greater
employee involvement in setting goals will foster greater commitment to goal
attainment.
X Linkage – As discussed earlier, marketing goals must be developed with an
eye toward achieving the broader organizational objectives. Marketing goals
incongruent with organizational direction are ineffective. 2
Organizational strategies
Organizational strategies are the means by which the organization achieves its
organizational objectives and marketing goals. Whereas the organizational vision,
mission, objectives, and goals are the “what,” the organizational strategy is the
“how.” It is, in essence, the game plan for the sports organization. Just as football
teams adopt different game plans for different competitors, sports organizations must
be able to readily adapt to changing environmental conditions. Remember, flexibility
and responsiveness are the cornerstones of the contingency framework.
In general, there are four levels of strategy development within organizations:
corporate strategy, business strategy, functional strategy, and operational strategy.
The relationship among these strategy levels is pictured in Figure 2.3. Notice that
there must be a good fit among the levels, vertically and horizontally, for the firm to
succeed.
Corporate-level strategies represent the overall game plan for organizations that
compete in more than one industry. Business-level strategies define how a business
unit gains advantage over competitors within the relevant industry. Functional-level
strategies are those developed by each functional area within a business unit. For
example, the strategic sports marketing process is the functional-level strategy
developed by sports marketing managers, just as financial strategy is the purview
of their finance manager counterparts. The operational-level strategies are more
narrow in scope. Their primary goal is to support the functional-level strategies.
Let us take a look at the relationship among the four levels of strategy at the
Maloof Companies to see how a good fit among strategies can lead to enhanced
organizational effectiveness; while noted conflict and disparity can adversely impact an
organization’s strategy and effectiveness.
The Maloof Companies7 are a diversified group of business ventures including
entertainment, sports, hotels, casinos, banking, food and beverage, and transportation
Corporate-level strategy
Business-level strategy
Functional-level strategy
(strategic marketing process)
Operational-level strategy Operational-level strategy Operational-level strategy

(product strategy) (promotion strategy) (pricing strategy)
Figure 2.3 Relationship between levels of strategy

57
headquartered in Albuquerque, New Mexico, and operated in New Mexico, Colorado,
and Nevada. The Maloof family owns the Palms, a $285 million hotel casino just off
the Las Vegas strip with a 42-story tower and 447 guestrooms. In addition to their
gaming business, the Maloofs have exclusive proprietorship rights to the distribution
of Coors beer throughout New Mexico. The Maloof Companies also are the largest
single shareholder in Wells Fargo Bank, which operates banks and branches in 23
states throughout the Western United States with over $200 billion in assets and 15
million customers.
The Maloofs are in the process of expanding their business in the entertainment
industry with the development of Maloof Productions and Maloof Music. Maloof
Productions is committed to developing and producing quality television and motion
picture entertainment. Also of interest is that the Maloof Companies are best known
for being the owners of the Sacramento Kings of the National Basketball Association
(NBA) and the Sacramento Monarchs of the Women’s National Basketball Association
(WNBA). They acquired a minority interest in the Kings in 1998 and took majority
control the following year, with Joe and Gavin operating the franchise. As part of the
purchase of the Kings, they also acquired the team’s sister franchise in the WNBA,
the Sacramento Monarchs. The Maloofs operated the Monarchs until 2009, when the
WNBA was unable to find a new owner and the team folded. In 2013, the Maloofs
sold the majority share of the Sacramento Kings (65 percent) and Sleep Train Arena to
a group led by TIBCO Software chairman, Vivek Ranadivé, at a valuation of more than
$534 million.
Prior to the sale of the majority interest, The Maloofs, the once favored entity of
Sacramento sports consumers, fell out of favor with the fans. Dissonance occurred,
as sales continued to decline and rumors of moving the franchise followed. The latter
topsy-turvy reign as majority owners of the team created strategic implications that
hurdled the organization downward.
Traditionally, the corporate strategy for the Maloof Companies has been based on
competing in all of these industries. The corporate strategy has allowed the Maloof
Companies to obtain the broader organizational goals and pursue its vision and
mission.
At the business level, Maloof management specified strategies for each business
unit within each of the industry segments. For example, the Kings and the Monarchs
would each have a unique business-level strategy, even though they are in the
same industry sector – sports. These strategies were aimed at gaining competitive
advantage within each relevant industry. However, each business-level strategy must
support the corporate-level strategy, goals, vision, and mission.
At Maloof Corporation, there are numerous functional areas within the organization.
For example, the Kings functional areas included finance and administration, general
management and operations, business affairs, civic affairs, sales, and marketing.
Leadership within each of these functional areas would be responsible for designing
their own strategies to meet their respective business-level strategies.
Finally, within the functional areas such as sales and marketing, operational-level
strategies were developed. Promotion, ticket sales, product, and pricing strategies
must all be designed and coordinated to attain the sales and marketing objectives
set forth in the functional-level strategy. As you can see, sports marketing managers
responsible for each operational unit must be concerned with satisfying not only their
own goals, but also the objectives of the broader organization.
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Corporate level
Most professional sports franchises are owned by individuals or corporations that
have many business interests. Sometimes these businesses are related, and
sometimes the professional sports franchise is nothing more than a hobby of a
wealthy owner. Today, the latter is becoming far less common as corporations include
sports franchises in their portfolio. Even more rare is the sports franchise owned and
operated as the primary, if not sole, source of owner income (e.g., the Mike Brown
2
family and the Cincinnati Bengals).
There are typically two types of diversified companies – those that pursue related
diversification and those that pursue unrelated diversification. In related diversification,
the corporation will choose to pursue markets in which it can achieve synergy in
marketing, operations, or management. In other words, the corporation looks for
markets that are similar to its existing products and markets. The underlying principle in
related diversification is that a company that is successful in existing markets is more
likely to achieve success in similar markets. Unrelated diversification, however, refers
to competing in markets that are dissimilar to existing markets. The primary criteria for
choosing markets are based on spreading financial risk over different markets.
Professional sports franchises can be owned privately by one or more individuals,
publicly owned corporations, or some combination of both. Corporate ownership of
a major league sports team is becoming rarer. Most teams are owned by individual
investors who have staked their personal fortunes to buy their franchises, which they
often operate as a public trust. The Washington Redskins, Wizards, and Capitals are
owned by individuals and their investment teams.
On the corporate side, the Chicago Cubs are owned by the Tribune Company and
the Atlanta Braves are owned by Time Warner. However, several recent corporate
ownerships of professional sports teams have fizzled, including the Disney Company’s
ownership of the then-Anaheim Angels and the Mighty Ducks. The Los Angeles
Dodgers were owned for several years by News Corp., before the company sold
the team to an investor group from Boston, who recently sold the team to the
Guggenheim Baseball Management, which includes former Los Angeles Laker Magic
Johnson.
Developing corporate-level strategy

Corporate-level strategies must make three types of decisions. First, top managers
must determine in which markets they want to compete. Sports organizations
have a core product and service, plus they also compete in ancillary markets. The
core product has been defined as the game itself and the entertainment provided
to consumers, whereas secondary markets include sale of licensed merchandise,
fantasy sports camps, sports magazines, sports art, and so on. The leaders of a sports
organization must also attempt to identify ways of capitalizing on the similarities
in markets. For instance, fans for the core product often represent a natural target
market for additional products and services. Companies such as Cablevision can
realize the benefits of this type of vertical integration. As Scott Rosner (2010) noted,
“by owning the team, playing facility and local media distribution channel, the
company captures the lion’s share of revenue generated by the team. It dominates
the local marketplace, where fans are most passionate about the local team and can
be most effectively monetized. Corporate owners with a local or regional focus are
more successful than those with a national or global focus.”8
59
On the international front an example may include the Singapore Sports Council’s
“Vision 2030”. Under the Vision 2030 initiative the Ministry of Community
Development, Youth and Sports (MCYS) and the Singapore Sports Council (SSC) will
work with the Public–Private–People sectors to jointly develop proposals on how sport
can best serve Singapore’s future needs. Sports will be used as a strategy for individual
development, community bonding, and nation building in the next two decades.
The second type of decision deals with enhancing the performance within each of
the chosen markets. Top managers constantly need to monitor the mix of markets in
which the organization competes. This evaluation might lead to decisions that involve
pursuing growth in some markets or leaving others. These decisions are based on the
performance of the market and the ability of the organization to compete successfully
within each market.
The third type of decision involves establishing investment priorities and placing
organizational resources into the most attractive markets. For a sports organization,
this could involve decisions regarding stadium renovation, player contracts, or
investing more heavily in merchandising. Corporate decisions within a sports
organization must constantly recognize that the core product, the competition itself, is
necessary to compete in related markets.
Business-level strategy
The next level of strategic decision-making is referred to as business-level, or
competitive, strategies. Business-level strategies are based on managing one
business interest within the larger corporation. The ultimate goal of business-level
strategy decisions is to gain advantage over competitors. In the sports industry,
these competitors may be other sports organizations in the area or simply defined as
entertainment, in general.
One strategic model for competing at the business level contains four approaches to
gaining the competitive advantage. These approaches include low-cost leadership,
differentiation, market niche based on lower cost, and market niche based on
differentiation. Choices of which of the four strategies to pursue are based on two
issues: strategic market target and strategic advantage.
Strategic market targets can include a broader market segment or a narrow, more
specialized market niche. Strategic advantage can be gained through becoming a low-
cost provider or creating a real or perceived differential advantage.
The focus of low-cost leadership is to serve a broad customer base at the lowest
cost to any provider in the industry. Although there may be a number of competitors
pursuing this strategy, there will be only one low-cost leader. Many minor league
teams compete as low-cost leaders due to the lower operating costs relative to their
major league counterparts. Differentiation strategies attempt to compete on the
basis of their ability to offer a unique position to a variety of consumers. Typically,
companies differentiate themselves through products, services, or promotions. With
differentiation strategies, companies can charge a premium for the perceived value of
the sports product. Professional sports franchises attempt to differentiate themselves
from competitors by providing a high-quality product on and off the field. This is
done through a unique blend of sports promotion, community relations, stadium
atmosphere, and a winning team.
Although low-cost leadership and differentiation strategies have mass-market appeal,
the market niche strategies are concerned with capturing a smaller market segment.
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Web 2.1 Myrtle Beach Pelicans using a low-cost market niche strategy
Source: BB&T Coastal Field
These market segments may be based on consumer demographics, geographic

location, lifestyle, or a number of other consumer characteristics. Within the market
niche chosen, sports organizations can gain strategic advantage through a focus on
low cost or differentiation. One example of the low-cost market niche strategy is
the Pro Rodeo Cowboys Association (PRCA), whose events are priced inexpensively
between $10 and $15.
Functional-level strategy
Each functional area of the organization (e.g., marketing, personnel, and operations)
must also develop a game plan that supports the business-level and corporate-level
initiatives. Again, the contingency framework calls for “fit” between each level
of strategy within the organization. It is also important to coordinate among each
functional area. For example, the marketing strategies should dovetail with personnel
and operations strategies. The strategic marketing process discussed earlier provides
the functional-level strategy for the organization’s marketing efforts.
Operational-level strategy
Each strategy at the operational level must fit the broader strategic marketing process.
This often requires integration across marketing functions and often, within the
strategic sports marketing process, several narrower strategies must be considered.
Plans must be designed, implemented, and evaluated in areas such as promotion,
new product and service development, pricing, sponsorship, and ticket distribution.
For example, the Los Angeles Dodgers unveiled a new operational-level promotion
strategy to increase attendance by offering fans an “all you can eat” ticket. The right-
field pavilion at Dodger Stadium was converted into the special section, giving around
61
3,000 fans as many hot dogs, peanuts, popcorn, nachos, and sodas as they wanted.
Season ticket savings versus buying advance purchase single-game tickets are
approximately 20 percent, $24 versus $30.9 Numerous other major league teams are
taking note and testing this idea as well.
Organizational culture
Culture is described as the shared values, beliefs, language, symbols, and tradition
that is passed on from generation to generation by members of a society. Culture can
affect the importance placed on sports by a region or nation, whether we participate in
sports, and even the types of sports we enjoy playing or watching. A similar concept
applied to organizations is called organizational culture. Organizational culture is the
shared values and assumptions of organizational members that shape an identity and
establish preferred behaviors in an organization.
As one of the internal contingencies, organizational culture influences the sports
marketer in a number of ways. First, the organizational culture of a sports organization
dictates the value placed on marketing. For instance, just look at the numbers
of people employed and the titles of front office personnel at a variety of sports
organizations. These are just two important indicators of the marketing orientation of
the organization and the importance of the marketing function.
Second, organizational culture is important because it is linked with
organizational effectiveness. In a study of campus recreation programs,
organizational culture was found to be positively associated with organizational
effectiveness. That is, a positive culture is associated with an effective
organization. A positive culture rewards employees for their performance, has open
communication, has strong leadership, encourages risk taking, and is adaptive.
The ability to adapt to change is one of the most important dimensions from the
contingency framework perspective.
Third, the organizational culture of professional sports organizations and college
athletic programs not only has an impact on the effectiveness of the organization,
but also can influence consumers’ perceptions of the organization. For example,
the Oakland Raiders, under former owner Al Davis, had an organizational culture
that valued risk taking and doing anything necessary to get the job done. This
organizational culture translated to the team’s successful and ruthless performance
on the field. Subsequently, the fans began to adopt this outlaw image. Ultimately, the
black and silver bad boys of football have attracted a fan following that has come to
expect this rebel image.
University athletic departments and their programs are also defined by the
organizational culture. Athletic programs are known to either value education or
attempt to win at all costs and be marred in scandal. Penn State University, a
prestigious university known for high-quality academics, has had its image tarnished
by athletics, most notably its football program. As of late, Penn State University has
been characterized by its tainted image when members of both the university and
football staff were accused of covering up assaults by former Assistant Coach Jerry
Sandusky. In this case, actions of the athletic program have influenced consumers’
perceptions of the university at large and may ultimately influence the broader
university culture.
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External contingencies
External contingencies are all influences outside the organization that might
affect the strategic sports marketing process. External contingencies include
competition; technology; cultural and social trends; physical environment; the
political, legal, and regulatory environment; demographics; and the economy. Let
us take a brief look at each of these factors and how they might affect sports
marketing strategy.
2
Competition
Assessing the competitive forces in the marketing environment is one of the
most critical components in the strategic sports marketing process. Competition is
the attempt all organizations make to serve similar customers. Sellers realize that,
to successfully reach their objectives, they must know who the competition is –
both today and tomorrow. In addition, sellers must understand the strengths and
weaknesses of their competitors and how competitors’ strategies will affect their own
planning.
For example, according to Nielsen’s Year in Sports Media Report over 33 billion
hours of national sports programming were consumed by 255 million people in
the U.S. in 2013, up 27 percent from 2003.10 Furthermore, viewership figures and
advertising revenue suggests there’s more to come. Much of the growth of live
programming was due to the dramatically expanded coverage of college sports,
on channels such as ESPNU and the Big 10 Network. The scramble to show
college games, and the lucrative TV deals that scramble brings – such as the Pac-12
Conference’s 12-year, $2.7 billion deal in May 2011and the University of Texas’
Longhorn Network partnership with ESPN launched in August 2011 – have shaken
up decades-old conference alignments and threaten the very structure of college
sports.11
An example of many “sellers” attempting to fill the same customer need can be
found in college sports broadcasting. Two digital cable networks, ESPNU and College
Sports Television (CSTV), are battling for college sports fans like two prizefighters
going toe-to-toe. The key to victory may be a multimedia strategy. CSTV, started
in 2005, is available in more than 20 million homes, although many have access
only through a digital pay tier of sports networks. To expand its reach, CSTV gets
its biggest Internet showcase yet – the opportunity to broadcast the NCAA men’s
basketball tournament. ESPN recently launched its own network dedicated to college
sports, ESPNU. In its first year, ESPNU broadcast about 300 live events ranging from
Division I football to volleyball to lacrosse.12 Table 2.1 illustrates the relative market
share of the three primary players.
Table 2.1 College sports TV: the main players
Channel Subscribers (millions)

CSTV 15
ESPNU 8
Fox College Sports 4
Source: http://www.broadcastingcable.com/news/news-articles/battle-college-sports-fans/106216.
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The nature of competition

Sports marketers most often categorize their competition as product related. There
are three types of product-related competition. The first of these is termed direct
competition, the competition between sellers producing similar products and
services. High school football games on a Friday night in a large metropolitan area
pose direct competition in that the “product” being offered is very similar. One
interesting example of direct competition is found in the game schedule of the NBA
Indiana Pacers. High school basketball is so popular in Indiana that the Pacers rarely
play a home game on Friday or Saturday night because of the competition posed by
high school games.
Another type of product competition is between marketers of substitute products
and services, the competition between a product and a similar substitute product.
For example, when several professional sports teams have scheduled games that
overlap, a consumer may have to choose to attend the Philadelphia 76ers (NBA),
the Philadelphia Phillies (MLB), or the Philadelphia Eagles (NFL). Another example of
substitute products is when spectators choose to watch a sporting event on television
or listen to a radio or Web broadcast rather than attend the event.
The third type of product-related competition, called indirect competition, is more
general in nature and may be the most critical of all for sports marketers. Marketers
of sporting events at any level realize their true competition is other forms of
entertainment. Professional, collegiate, and high school sporting events compete
with restaurants, concerts, plays, movies, and all other forms of entertainment
for the consumer dollar. In fact, a study was conducted to examine how closely
other forms of entertainment are related to sports.13 Preliminary findings suggest
that respondents’ most preferred entertainment activities are going out to dinner,
attending parties, playing sports, watching movies, attending sporting events,
attending live music or theater, watching TV, shopping for pleasure, watching sports
on TV, dancing, and gambling. In addition, video games seem to be competing in the
same “entertainment space” as watching sports on TV. Obviously, the toy industry
has capitalized on this notion by creating a multitude of sports-related video games.
Some people fear that today’s interactive, virtual reality video games may replace
watching “real games” on TV. Similarly, playing sports and gambling are perceived
to be in the same perceptual space. Sport marketers may want to better understand
the excitement and risks associated with gambling and add these attributes when
marketing sports participation.
Indirect competition is present when even the popular USC and UCLA football games
fail to sell out their respective home stadiums (the L.A. Memorial Coliseum and
the Rose Bowl). There is simply too much entertainment competition in Southern
California compared with Ann Arbor, Michigan (University of Michigan) or South Bend,
Indiana (Notre Dame).
Technology
Technology represents the most rapidly changing environmental influence. New
technologies affect the field of sports marketing daily. Some advances in technology
have a direct impact on how sports marketers perform their basic marketing functions,
whereas others aid in the development of new sports products. For example, new
technologies are emerging in advertising, stadium signage, and distributing the sports
product. The development of mobile apps and Internet sites remains one of the
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Web 2.2 ESPN.com providing sports information via the Internet

Source: ESPN.com
fastest growing technologies to affect sports marketing (see Appendix B for examples
of Internet sites of interest to sports marketers). Internet sites have been developed
to provide information on sports (e.g., www.nascar.com), sites of sporting events
(e.g., www.daytona500.com), teams (e.g., http://www.hendrickmotorsports.com/),
and individuals (e.g., www.dalejr.com). In 2014, NASCAR.com scored a Daytona 500
record with year-over-year increase of 39 percent, including an increase of 61 percent
of total visits to the platform and a 131 percent increase in page views. As Colin
Smith, managing director of NASCAR Digital Media noted, more people are turning to
mobile devices and second screen platforms to consume NASCAR content.14 ESPN.
com is still the king of sports information on the Internet and part of sports fans’ daily
routines securing 62,500,000 unique visitors each month in 2011.15
In addition, the Internet has emerged as another popular way to broadcast live events
to fans. Beginning in 1995 AudioNet, Inc. (www.Audionet.com) was one of the
pioneers of live game broadcasts via the Internet and video streaming. Today each of
the major leagues offers its fans opportunities to follow games online. Major League
Baseball’s premium package allows fans to watch up to six games live and includes a
“Player Tracker” that alerts the subscriber when his or her favorite player steps to the
plate. Season-long access is a reasonable $129.99.
The University of Nebraska game against San Jose State on September 2, 2000, was
the first ever intercollegiate football game to be video webcast. The webcast resulted
in more than 200,000 video streams around the world. Nebraska Athletic Director Bill
Byrne summed it up nicely by stating that “we believe the Internet brings us one step
closer to our fans, particularly those who are miles from home and have limited access
to our normal radio and TV broadcasts.”16 Today, people not only are recording shows
to be viewed later, but they can also call up their shows from on-demand channels,
or watch them on their laptops, phones, or tablets.17 Back in 2007, the NCAA Men’s
Basketball Championship was an example of how far things had come in a few
years. March Madness® on Demand allowed fans to watch live game broadcasts of
65
CBS Sports television coverage of the NCAA Championship on their computer for
free. Today, events like the Super Bowl and March Madness are communal. They
afford even geographically restricted consumers the opportunity to watch events
simultaneously, engaging in the interactive and immediate nature of the mediums,
further optimizing and extending the mobile-specific experiences of their audiences.
In addition to providing information and game coverage to consumers, the Internet has
emerged as a popular alternative to purchasing tickets at a box office. For example,
MLB Advanced Media, LP (MLBAM), the interactive media and Icompany of Major
League Baseball, serves as the Internet provider of tickets for MLB, while StubHub,
owned by eBay, serves as the official MLB reseller. According to the Sports Business
Journal, more than 8 million tickets were resold on StubHub during the 2011 season.
However, average ticket prices on StubHub have dropped from a high of $104 in 2007
to $82 in 2011.18
The accompanying article presents an excellent look at some technologies that have,
or will, dramatically altered the way spectators consume sport.
ON THE INDUSTRY’S RADAR

We asked executives in the sports ensure menus have something for
facilities industry to identify the everyone. Look for an elevated dining
trends they’re watching and to experience, where simple comfort
give their predictions on where the foods have been turned into premium
industry is headed. The following are quality fare.
highlights of what they had to say. • Going local beyond the farm:
Food/concessions Fans are also more mindful of
where their food comes from and
Marc Bruno
greater emphasis is being placed on
President connecting with the local culinary
Aramark Sports & Entertainment scene by working with local farmers
• Technology takes off: One of the and featuring microbrews and
most visible trends in 2012 will be craft beers. PNC Park’s pierogi
the continuing integration of mobile stacker sandwich in Pittsburgh is a
technology into the food delivery local culinary specialty and there are
process. As smartphones, tablets growing opportunities to partner
and similar devices continue to grow with local restaurateurs and celebrity
in popularity, mobile food ordering chefs.
applications will allow guests to order
food and retail items, and customize Stadium/arena merchandising
their offerings, while providing food Jeff Hess
and beverage providers with new
Vice president of retail
promotional channels to engage
guests. Delaware North Companies
• Fans become foodies: Fans’ tastes Sportservice
have become more sophisticated, Fans at a stadium today expect
which will lead to expanding the selection, value and convenience.
presence of specialty foods, like Demand for women’s and children’s
ethnic cuisine, street food, food apparel and merchandise will
trucks, gluten-free and allergen- continue to grow, and fans will
free items, and healthy fare, to increasingly purchase team-branded
66
items for their homes, cars and philosophies in facilities. Video

electronic accessories. devices, wireless devices, structured
For stadiums and arenas, that cabling, switching and routing, and
will mean maximizing retail headend and demarc gear are all
space to enhance fans’ emotional devices that require coordination and
connection to the game. Teams
and their partners become
square footage.
The fan is expecting the visual
2
mainstream retailers and not of the living room with the
simply concessionaires. It will be communal vitality of the event.
increasingly important to follow This will be a two-way experience
fashion and retail trends and provide with an unrestricted social media
customers with a targeted selection experience and an enhanced and
of merchandise. memorable event. Fans are the early
To provide the space needed, some adopters of technology. They will
venues are already developing large, also be the early exit if the brand
iconic stores for a more exciting and is unable to deliver. The fans will
memorable shopping experience. be both a consumer and creator of
The large stores feature dramatic content.
décor with eye-popping visuals and Using a remote method to order
lighting. . . . In addition, leveraging food, the fan base is asking for
licensed partners to create brand- or greater convenience. Removing
item-specific shops and portable the human interaction of a cashier
kiosks will create a more personal translating your order to a register
shopping experience. and then filling that order while you
Targeted marketing programs and wait is desired. The implications are
new e-commerce technology and to design outlets that are not relying
mobile applications will increasingly on the standard queues. Facilities
be used to reach fans beyond the will also have to deal with the fact of
gates of the venue. Customized BYOD such as battery life and where
merchandise will be available does the fan set the device.
throughout the stadium, and on non-
game days, to offer the convenience Venue design
fans will look for. Earl Santee
Senior principal
Technology
Populous
Bob Jordan
The booming era of new stadiums
Managing partner began nearly three decades ago.
Venue Research and Design While we believe the vast majority
Technology is developing at a much can be viable for decades to
faster pace than the design and come, they do need to evolve to
operation of the sports facilities. Fans be economically viable, socially
attending the events will be video engaging and relevant to new
centric and it will be a BYOD (bring generations. One trend we expect
your own device) environment. The to continue is the ever-increasing
infrastructure will be the impediment expectations of patrons to personally
to adoption of the technology and will control their game-day experience, to
be the focus as each facility moves enjoy ease of movement, and to be
into the future. This will require entertained with new experiences.
a change in some of the design A key element of new experiences
67
is technology integration. It has • Product trends: All inclusive pricing

increased dramatically in recent is here to stay on club seating and the
years, and we believe it will be wave of the future for suites on both
integral to the future of sports the consumer and building side of the
design. Likewise, sponsors and sale. Value-added selling is prevalent
corporate partners are looking in every aspect of the economy now.
for fresh alternatives to static Adding food, access to special events
advertising. Populous is helping that once were incremental, is the
integrate sponsors into facility wave of today and I cannot see that
design with sponsor-activated fan changing. Product diversity is also
zones, interactive media and new critical; the one-size-fits-all mentality
kinds of experiences that are tailored [has] passed us by. . . . The placement
to engage fans and express strong of the products has not changed too
brand personalities. much, closer is better in almost all
Lastly is the growing cases, but exclusivity to lounges and
importance of urban planning. The special events is more important
substantial community and private than ever – people need more of a
investments required by these reason to buy than they ever have
large structures demand greater in the past. Season-ticket selling
justification than simply a suitable and packaging today, especially in
place for watching a sporting event. the indoor sports and baseball, is so
Going forward, existing stadiums competitive with club-seat selling,
and arenas must include a much it has become a real challenge to
broader community vision for differentiate to the buyer where the
benefiting the surrounding area with value is in these seats. The smaller
economic growth and regeneration club-seat buyer has to be made to
opportunities. feel extremely special these days.
• Things to do: Pricing appropriately
Premium seating and packaging and locating the
Jason Gonella products effectively are the key to the
success. Additionally, creating that
Vice president of sales
sellout, high-demand mentality is
Rose Bowl Revitalization Project critical as well. If the buyer senses the
The premium seating buying mantra demand is soft or supply is high, one
has gone from exuberance and will be in a tough position to get sales
flashiness – where bigger and closer in this economy.
are best, with limited or no concern
for cost as the standard 5–10 years Source: Article Author: Don Muret;
ago – to now the model has changed rightsholder: Sports Business Journal;
due to the customer approach to be http://m.sportsbusinessdaily.com/Journal/
a more conservative value-based Issues/2012/01/16/In-Depth/Trends.aspx.
efficiency and return on investment.
Items that utilize statistical algorithms and integrate the advantages and uses of digital
technologies, e.g. real-time motion tracking, are becoming more prevalent. In fact,
many major American sports leagues now employ at least one full-time “number
cruncher” to perform statistical analysis for league, teams, and players.19 Teams and
leagues have has also formed partnerships with high-tech companies. The leagues
and teams recognize the value these technological partnerships provide. For example,
68
the NBA has teamed up with the likes of Synergy Sports Technology and StratBridge.
Synergy Sports Technology’s professional online/offline products are used to provide
key features, high volume video streaming, and analytics while StratBridge provides
the StratTix inventory management tool to further enhance ticket sales efforts for the
NBA. Throughout the year, NBA teams will be able to utilize the latest technology
for managing ticket inventory, including access to graphical representations of sold
and available in-arena seating, complete analysis of ticket sales and individual seating
information for every game, and use of StratTix Premium service to access up-to-the-
2
minute sales information at any time.
Interestingly, many owners have emerged from high-tech companies who are using
their technology experience and strength to benefit their sports franchises. Examples
of high-tech owners include but are not limited to: Charles Wan of the New York
Islanders and chairman of Computer Associates International; Paul Allen of the Seattle
Seahawks, Portland Trail Blazers, and Seattle Sounders, and co-founder of Microsoft;
Robert J. Pera of the Memphis Grizzlies, who was a former hardware engineer for
Microsoft before founding Ubiquiti Networks; Everett R. Dobson of the Oklahoma City
Thunder and CEO of Dobson Technologies; Ted Leonsis of the Washington Capitals,
Washington Wizards, and America Online; Daniel Snyder of Washington Redskins
and Web marketer; Ken Kendrick of the Arizona Diamondbacks and Datatel; the late
Hiroshi Yamauchi, former Nintendo President/Owner of Seattle Mariners who in fact
sold the team to Nintendo in 2004; Mark Cuban of the Dallas Mavericks and founder
of broadcast.com; while more recent emerging collaborations include TIBCO’s Chief
Vivek Ranadivé utilizing their spotfire technology with the Golden State Warriors and
more recently the Sacramento Kings; and former Microsoft CEO Steve Ballmer, who
recently bid $2 billion to acquire the Los Angeles Clippers.
So far, our discussion of technology is based more on how technology influences
spectators and the distribution of sport. How do technologically advanced products
affect sports participants and their performance? Although most sporting goods have
experienced major technological improvements since the early 1990s, two sports
that live and die by technology are golf and tennis. In the golf industry, one company
that positions itself based on cutting-edge technology is E21. E21 holds the exclusive
right to manufacture golf products using proprietary E21 Scandium metal alloys.
Through a sophisticated multi-technology production path, E21 manufactures shafts,
drivers, and other clubs with marked improvements in distance, accuracy, and feel
over competing products. In recent months a number of high-profile golf professionals
have switched to or began testing E21’s Eagle One shafts. E21 Scandium products
are 55 percent lighter and offer 25 percent strength to weight advantage over titanium
alloys, the current standard in the golf equipment industry. The advanced dynamics
of E21 alloys and the material economics offer a performance-enhanced alternative
to manufacturing driver clubs with titanium, the largest segment of the annual $5.5
billion U.S. golf equipment marketplace.20
Technology is even becoming a unique way to differentiate in the highly competitive
sports apparel market. For example, Textronics, Inc., a pioneer in the field of electronic
textiles, has produced NuMetrex, a brand of clothes that monitor the body. The
NuMetrex Heart Sensing Sports Bra was named 2006 Sports Product of the Year by the
Sporting Goods Manufacturers Association. The garment features electronic sensing
technology that is actually integrated right into the knit of the fabric, which picks up
the heart’s electrical pulse and radios it to a wristwatch via a tiny transmitter in the
bra. It offers a new level of comfort and convenience for women wishing to monitor
69
Web 2.3 C-12 Lacrosse showing its latest advances in lacrosse technology
Source: C-12 Lacrosse
their heart rate while they exercise.21 Other recent product of the year winners include:
KVA Stainless for its patented technologies to produce stainless steel bike tubing
(2011) and TaylorMade R11S Driver for its innovative tuning characteristics (2012).
Global brands Nike and Apple Computer are continuously improving upon product
developments that link technology and sport. In 2006, Nike and Apple Computer
revealed their collaborative Nike+iPod Sport Kit, a shoe/MP3 player/personal trainer
that could bring runners around the world together – virtually – enabling them to train
on a level beyond the asphalt. The original product consisted of a shoe equipped
with sensors under the sole insert and a tricked-out iPod nano. Today this technology
works with iPod nano, or directly with a 2nd, 3rd, 4th iPod touch, iphone 3GS, iphone
4, or iphone 5 or a Nike+Sportwatch. The sensors will transfer dynamic workout
information to the iPad device. Data, such as time, distance, pace, and calories
burned, determined by a person’s physiological makeup and the amount of steps the
sensor picks up, are stored for later retrieval on the iPad device. The newly integrated
personal trainer platforms allow further integration of the data with GPS, nutrition, and
fitness applications.22
Although some marketers have a hard time grasping the special language of
technology, they still agree that a whole new culture of technology has emerged.
Owners such as Mark Cuban of the Dallas Mavericks acknowledges that the
Mavericks constantly strive to push the tech envelope; to make the exchange more
valuable to their fans and customers.23 Cisco President and CEO John Chambers
states, “Technology is changing every aspect of our life experiences and for Cisco,
this is an opportunity to harness the power of our own innovative technologies to
create a truly unique experience that transcends sports, connects communities, and
takes the fan experience to a whole new level.”24
70
Ad 2.1 Cobra stresses an improved performance based on their technological product

improvements.
Source: COBRA GOLF
Cisco stadium underscores the commitment to creating a new standard for sports
venues. As the official technology partner of the Oakland A’s, Cisco provided
networking and communication products and services to transform the way that the
A’s team and ballpark operations will be managed. Cisco Field encompasses state-of-
the-art technology, featuring an integrated IP network built on Cisco technology and is
the platform for a multitude of applications that help take the fans’ experience to the
next level. For example, digital signs ensure “smart” traffic flow; fans can purchase
merchandise or concessions while in their seat by ordering from a mobile device;
onsite ticket kiosks enable fans to upgrade seats in real-time. Luxury suites have the
opportunity to include multimedia amenities for premium video content, and Cisco
TelePresence technology may even enable new forms of player-to-fan communications.
In 2010, Popular Mechanics looked at 30 NFL stadiums and identified five
technologies that lead the league in innovation. Topping off the list was the Dallas
Cowboys Stadium. Who would have expected Cowboys owner Jerry Jones to ignore
the cliché that everything is bigger in Texas? The Lone Star State’s venue has a
seating capacity of over 100,000, a $1.2 billion price tag, and houses a pair of 2100
inch HDTVs. The $40 million screens span 60 yards and are five times the size of the
screens at Atlanta’s Turner Field. The second item on the list was innovation at the
University of Phoenix Stadium, home of the Arizona Cardinals, and the introduction
of a retractable field, yes we said field. The notion to install the departing lawn began
with the owner’s desire to play games on natural grass. Third on the list was the
architectural framework of Quest Field, home to the Seattle Seahawks. Decibels
were an important part of the equation for Seahawks owner and Microsoft co-founder
Paul Allen. The design resulted in 135 decibels, nearly as loud as a jet plane, creating
one of the loudest stadiums in professional football. Fourth on the list was one giant
sunroof of Reliant Stadium in Houston, Texas. The facility was an answer to fans’ cry
to view football outdoors. The fifth recognized advancement was associated with the
development of the New Meadowlands Stadium, home to the New York Giants and
the New York Jets, and its efforts to make the stadium “sustainable”. The new venue
71
will create less pollution, conserve water and energy, and reduce the environmental
impact of its operation.25
In other stadium technology advancements, numerous sporting events, e.g. football,
baseball, and golf events, accept MasterCard® PayPass™, a “contactless” payment
option giving fans the chance to pay for their purchases under $25 with a simple tap
of their PayPass-enabled card or device on specially equipped merchant terminals.
With MasterCard PayPass, sports fans spend less time standing in line or fumbling for
cash at concession stands, and more time catching the on-field action.26 The concept
continues to expand. Enhancements as well as the future of use of the product is not
only inviting to Mastercard but to organizations such as Apple, MLB, and the NFL.
Computer-driven video sport is another area of technological impact. Douglas
Lowenstein, president of Entertainment Software Association, believes “The video
game industry is entering a new era, an era where technology and creativity will fuse
to produce some of the most stunning entertainment of the 21st century. Decades
from now, cultural historians will look back at this time and say it is when the
definition of entertainment changed forever.”27
Video sports games, a subset of the video gaming industry, are called simulations
because of their lifelike approximation of real sporting events. In fact, the danger for
franchises lies in fans caring more about these games and simulations than they do the
“real” sports. Nearly 67 percent of American homes either own a console, such as Xbox
360, PlayStation 3, and Wii, and/or use their PC to run entertainment software.28 Sport
gaming accounts for approximately 28 percent percent of video games sold. Stated
differently, sports games account for approximately $20 billion of the $74 billion spent
worldwide on games for systems like Wii, PlayStation, and Xbox.29 The sport video
games today are much more interactive than the “pong” environments of the past.
Conceptually, today’s games include multiplayer online platforms that provide free-to-
play interactive experiences with state of the art motion controls. The leading interactive
sports software brand in the world is Electronic Arts (EA) Sports (www.easports.com),
with games including FIFA Soccer, Madden NFL, NFL Blitz, NHL Hockey, Fight Night
Champion, NBA Live, Tiger Woods PGA Tour, and NCAA Football. In fact, versions
of games such as EA Sports Madden and FIFA have had sales of approximately $93
million and $90 million respectively since their inception. EA has been a dominant
player in the market; however, as Table 2.2 demonstrates, it has not been without
competition. In fact, since its inception Wii sport-related games platforms have been the
top four individual bestselling sport game consoles. Paul Allen, co-founder of Microsoft
and owner of the Portland Trail Blazers, believes “the only thing holding back sports
simulation products is the level of reality that can be achieved.”
Video sports participation is not just limited to the couch potato or kids in the living
room. Pro gaming leagues are now becoming the rage and viable sports entities of
their own. CPL, or the Cyberathlete Professional League, which h as been around since
1997, has awarded more than $3 million in prize money. Television deals are even being
struck. For instance, Major League Gaming has a contract with the USA Network, and
ESPN has a show called Madden Nation, which shows gamers playing Madden NFL.
There is even the World Cyber Games, which is the largest global electronic sports
tournament that includes multiple divisions and represents a variety of nations.
Cultural and social trends

Perhaps the most important aspects of any culture are the shared and learned values.
Cultural values are widely held beliefs that affirm what is desirable by members
72
Table 2.2 Top 10 sports video games (ranked by total U.S. units sold)
Title Release Year Publisher

1. FIFA 13 2012 2KSports
2. Grand Slam Tennis 2 2012 EA Sports
3. NBA 2K13 2012 2K Sports
4. MLB 12 The Show
5. NHL 13
2012
2012
Sony Computer Entertainment
EA Sports
2
6. Madden NFL 13 2012 EA Sports
7. SSX 2012 EA Sports
8. UFC 3 Undisputed 2012 THQ
9. F1 2012 2011 Codemasters
10. NFL Blitz 2012 EA Sports
Source: www.complex.com/video-games/2012/12/the-10-best-sports-video-games-of-2012/fifa-13.
of a society. Several of the core values of interest to sports marketers include

individualism, youthfulness, achievement and success, and family.
Sports are symbolic of many core values. In fact in reference to America, what could
be more American than baseball, our national pastime? ESPN used this rich tradition in
a series of television advertisements promoting its Major League Baseball coverage.
These advertisements claim “It’s baseball – you’re American – watch it.”
All these core values are directly or indirectly relevant to sports marketing. For
instance, certain sports or sporting events stress individualism. Individualism is based
on nonconformance or the need to be unique. Nothing could be more directly linked
to individualism than the X-treme Games, featuring sports such as skateboarding and
street luge. The central or underlying values inherent in all sports are achievement and
success. Virtually every sports marketing theme is either directly or indirectly linked to
the achievement and success of an individual athlete or a team.
Youthfulness is another core value that is continually stressed by sports marketers.
People participate in sports and watch sports to feel young and have fun. Those in
the mature market are making strides at staying in shape; they are also watching their
own age cohorts still participating in sports at a professional level via any number of
senior tours (men’s and women’s golf, tennis, and bowling). In addition, products like
Just for Men are endorsed by sports legends Emmitt Smith, Keith Hernandez, Walt
“Clyde” Frazier, and Michael Waltrip, who all use the product to “stay looking great.”
Another core value is family and the need to feel a sense of belonging. Engagement
in culture and sport can take many forms. According to a recent study, team sports,
which foster a sense of “group identity,” continue to play an important role in the
lives of American children. According to the 2013 SFIA US Trends in Team Sports
Report, team sports bring us together as young children, teaching us to socialize, solve
problems, resolve disputes, experience the benefits of hard work, understand the
different personalities and gain self-confidence and direction.30 They are a significant
part of the fabric of American culture. In fact, after two years of negative participation
growth for most of the mainstream sports, 2011 demonstrated a turnaround in sports
like tackle football, soccer, basketball, and baseball, while sports such as lacrosse,
rugby, and volleyball continued to experience strong growth. Basketball leads total
team participation with 26,304, 000 participants, a 9.6 percent increase from 2010.
Baseball was second with 14,558,000 and soccer was third with 14,075,000. Rugby
with roughly 1,130,000 participants had the single largest yearly growth of 50.7 percent
73
Photo 2.2 The mature market: staying young and having fun in record numbers
while lacrosse had the second most pronounced yearly growth with a 37.7 percent
growth equating to 1,648,000 participants. Tackle football saw a slight growth of 1.6
percent equating to 6,905,000 participants. The declining sports included wrestling
(29.9 percent), fast pitch softball (9.4 percent), and track and field (2.7 percent).
Physical environment
The physical environment refers to natural resources and other characteristics of the
natural world that have a tremendous impact on sports marketing. For instance, the
climate of a region dictates the types of sports that are watched and played in that
area. In fact, various sports were developed because of the physical characteristics
of a region. Skiing and hockey in the north and surfing on the coasts are obvious
examples. Sports marketers attempt to control the physical environment for both
spectators and sports participants. For example, Reliant Stadium has a 50/80 rule. The
50/80 rule is a guideline to help fans prepare for game day. The organization makes
the roof decisions on a case-by-case basis each game by considering numerous
factors, including environment and weather. The organization will consider opening
the roof when game time temperature is projected to be between 50 and 80 degrees,
therefore providing an optimal viewing and playing environment. The goal of the 50/80
rule is to provide the most comfortable environment possible for spectators to enjoy a
Houston Texans game.
Artificial turf replaced natural grass surfaces in stadiums in the late 1960s. In the new
millennium, all new stadiums being built have switched back to natural grass. Grass
not only seems to be easier on the athletes in terms of avoiding potential injuries, but
fans also seem to appreciate the “natural” look of grass. Likewise, domed stadiums
seem to have run their (un)natural course, with Minneapolis being a rare exception.
74
The newer stadiums are all open-air venues, which have greater appeal for spectators.
An interesting example of state-of-the-art stadium technology designed to control
the physical environment is the new Cardinals Stadium in Arizona with the first roll-
out playing surface. At the touch of a button, the grass field slides in and out of the
stadium along 13 steel rails. The purpose of the sliding field is threefold: it eliminates
indoor watering and related humidity problems; allows the field to soak up direct
sunlight; and leaves behind 152,000 square feet of unobstructed floor space for things
such as concerts, conventions, and expos.31
2
In addition to the climate, the physical environment of sports marketing is concerned
with conservation and preserving natural resources. This trend toward conservation
is most often referred to as “green marketing.” Marketing ecologically responsible
products and being conscious about the effects of sports on the physical environment
is one of the concerns of green marketing. For instance, many golf course
management groups have come under attack from environmentalists concerned about
the effect of phosphate-based chemicals used in keeping golf courses green. Other
groups have criticized the sport of fishing as cruel and unusual punishment for the fish.
Political, legal, and regulatory environment

Sports marketers are continually faced with political, legal, and regulatory
environments that affect their strategic decisions. Politics have always played a
major role in sports and are becoming an increasingly important part of the sports
landscape. In professional sports, politicians are involved in promoting or discouraging
passage of stadium tax issues. Since 1953, most stadiums have been owned by city
governments. The question is, “How far does one go in sacrificing taxpayers’ wealth
to promote civic pride?” Additional evidence of the relationship between government
and sports marketing is the growing number of sports commissions. Since 1980, the
number of sports commissions, designed to attract sporting events to cities, states,
or regions, has increased; in fact, the National Association of Sports Commissions has
grown from 491 to more than 671 members in the past five years.32
The legal environment of sports has certainly taken on a life of its own in the new
millennium. Sports officials (i.e., league commissioners, judges, sports arbitrators,
coaches, and athletic directors) are continually confronted with legal challenges that
arise on and off the playing field. These officials must be adept at interpreting the
language of collective bargaining, recruiting student-athletes, understanding Title IX,
avoiding antitrust issues, licensing team logos, and handling other sports law issues.
One of the most famous pieces of legislation, passed in 1972 under President Richard
Nixon, was Title IX. Simply, Title IX states that “no person in the United States shall,
on the basis of sex, be excluded from participation in, be denied the benefits of, or be
subjected to discrimination under any education program or activity receiving Federal
financial assistance.” Interestingly, the law that has had the most dramatic impact
on the growth of women’s sports participation does not even mention the word
“sports.” Perhaps the most famous Title IX decision was a 1997 ruling by the U.S.
Supreme Court in the Brown University v. Cohen case. The courts ruled that Brown
University did not meet any part of the three-step Title IX compliance.
This three-part test includes the following:
1. Are opportunities for female and male athletes proportionate to their enrollment?
2. Does the school have a history of expanding athletic opportunities for the
underrepresented sex?
75
3. Has the school demonstrated success in meeting the needs of those students?
Unfortunately, Title IX implementation has led to reduction in men’s sports
programs. Rather than adding women’s sports programs, universities have chosen
to cut men’s sports such as baseball and wrestling to address the problem of
proportionality.
As mentioned earlier, sports legal issues involve much more than Title IX and antitrust
issues. Recent examples of sports legal issues in the news include cases of breach
of contract, player-on-player/coach/fan violence, and trademark infringement. Former
NBA commissioner David Stern handed down a total of $1,225 million in fines and 48
games in suspensions in the 2012–2013 season. The NBA has been a strict enforcer
of policies and fines since the Pacer–Pistons brawl in 2004. In arguably the most
violent fight in NBA history, with less than one minute left in the game the Indiana
Pacers scuffled with the Detroit Piston players and ultimately rushed the stands,
involving some drunken Detroit Pistons fans.
Due to the billions of dollars of sports-licensed merchandise sold each year, a
more common form of legal issue in sport is a trademark violation. In one example,
American Media, Inc. (parent company of the National Enquirer and Globe) was sued
by the U.S. Olympic Committee (USOC) for using images of Olympic athletes without
their consent and using the word “Olympics” in a publication entitled Olympics USA.
Similarly, the IOC has filed a lawsuit against 1,800 Internet sites abusing the Olympic
name. In yet another example, Callaway Golf recently stopped the sale of counterfeit
clubs on eBay.com.
A regulatory body or agency is responsible for enacting laws or setting guidelines
for sports and sports marketers. Regulatory agencies can be controlled by either
governmental or nongovernmental agencies. One example of a nongovernmental
regulatory body that has tremendous control over sports and sports marketing
practices is the Fédération Internationale de Football Association (FIFA). FIFA is the
international federation for the world’s most popular sport, soccer. FIFA, which was
formed in 1904, promotes soccer through development programs for youth and
supervises international competition to ensure the rules and regulations of the game
are being followed. In addition, FIFA is responsible for maintaining the unified set of
rules for soccer called the Laws of the Game.
Although FIFA is concerned with regulating the game itself, it also controls many
facets outside the game that have an impact on sports marketing. For example, FIFA
is committed to improving stadiums for the fans and protecting them against the
rising costs of attendance. Another example of FIFA’s control over sports marketing
is that virtual advertising – super-imposing marketing messages on the field during
televised broadcasts – is forbidden.
In addition, FIFA works with ISL Marketing to secure sponsors for major soccer
events, such as the World Cup. As a regulatory agency, FIFA attempts to make sure
that the sponsors do not intrude in any way on the integrity of the game. FIFA does
not attempt to influence how companies do their own business; however, they do
their best to ensure that sponsors do not influence the game itself.
FIFA’s focus is to make a difference in people’s lives while creating balance and
understanding of who they serve. Their mission – develop the game, touch the world,
build a better future – articulates both a challenge and an opportunity. Their promise
to strive for the game, for the world; reflects FIFA’s emphasis and responsibility to
not only promote its core product soccer, but to reach out to its world stakeholders by
76
extending the core, using football as a symbol of hope and integration. FIFA President
Joseph Blatter describes the delicate but beneficial relationship between FIFA, its
consumers, and sponsors as follows: “We see it as our duty to take on the social
responsibility that comes hand in hand with our position at the helm of the world’s
most loved sport. Join us in uniting forces to develop the game, touch the world and
build a better future!”33
As sport continues to grow so do the regulatory and marketing concerns that affect
its strategic framework. Commercial exploitation and the perceived inequalities that
2
accompany its presence are prevalent in today’s sport environment. Hence, so are
the law suits that contest its framework. Governing agencies struggle to stay abreast
of reform challenges. For example, in a recent landmark decision handed down on
August 8, 2014, a federal judge ruled in favor of the plaintiff in the Ed O’Bannon v.
NCAA antitrust case, knocking down the restrictions against college athletes profiting
off their name, image and likeness. The injunction will not preclude the NCAA from
implementing rules capping the amount of compensation however, the NCAA will
not be permitted to set this cap below the cost of attendance. The landmark decision
will have a significant impact upon the future regulatory environment and as the
accompanying blogger illustrates, sanctioning bodies can often struggle to retain
control.
BIG-TIME COLLEGE SPORTS IS AN OUT-OF-CONTROL MONSTER

The June 10th issue of Sports or upgraded luxury locker rooms and
Illustrated had a very telling story training facilities for these programs.
about the state of college sports in Alabama brings millions of
this country. The article, titled Go For dollars of revenue in every year
It On Fourth and Multiply, by Stewart from television and radio contracts,
Mandel and Andy Staples, highlights ticket sales, sponsorships, etc.
the mushrooming staffs of big-time They’re rolling in the dough,
college football programs in this primarily because they don’t have to
country. For example, the University compensate the athletes responsible
of Alabama last year employed 24 for these revenue streams at anything
non-coaching support staff members close to their fair marketplace value.
for the football team alone. Those To be sure, Alabama is far from the
support staff members were paid only school caught up in this big-time
$1.6 million. The 24 staff members, college sports arms race. Top football
in areas such as operations, player and basketball programs across the
personnel, football analysis, strength country are doing much the same
and conditioning, athletic relations, thing. The issue at hand is do these
and video, are in addition to the sports operations more closely
head coach, nine assistant coaches resemble pro sports enterprises
and four graduate assistant coaches. (which should be taxed as such) or
The cost for the coaching staff is extracurricular activities designed to
around $10 million more. Nick Saban, enhance the educational experience
Alabama’s head coach, is making of athletically-inclined college
more than $5 million a year by students?
himself. Obviously, that’s a rhetorical
And I haven’t even mentioned the question, yet Alabama, along with
millions of dollars going towards new about 75 other big-time sports
77
universities, are allowed to operate much, the Alabamas, and Ohio States
their highly-commercialized athletic of the world will tell the the NCAA
departments under their school’s non- to take a hike, and then form their
profit educational institution umbrella. own governing body apart from the
The reality is, the mission of big- NCAA.
time college sports factories is far Where this all ends is hard to
from the NCAA’s stated purpose of predict. But we do know that big-time
integrating “intercollegiate athletics college sports is filled with hypocrisy.
into higher education so that the Many NCAA administrators, college
educational experience of the student and university presidents, athletic
athlete is paramount.” directors, and coaches constantly
“If you don’t have some talk about their educational values
parameters in place, you could and the importance of ‘student-
eventually have a football staff athletes’ getting an education. But
member for every two or three their actions speak louder than their
[players], and I don’t think that’s words. Every decision they make
healthy for the industry,” says Greg seems to be driven by revenue-at-all-
Byrne, University of Arizona’s athletic costs and/or win-at-all-costs motives,
director. Nevertheless, Arizona and not educational ethos.
other Division I colleges continue to At some point, that has to change.
play along, seemingly stuck in a high- – Ken Reed, Sports Policy Director,
stakes game of “Keeping Up With League of Fans
the Jones’.” For their part, the NCAA
is afraid to clamp down too much Source: Ken Reed; http://leagueoffans.
on this steady expansion of college org/2013/06/11/big-time-college-sports-is-
sports behemoths. They’re afraid if an-out-of-control-monster/. Courtesy Ken
they push too hard, or penalize too Reed.
Demographics
Assessing the demographic environment entails observing and monitoring
population trends. These trends are observable aspects of the population such as
the total number of consumers and their composition (i.e., age or ethnic background)
or the geographic dispersion of consumers. Let us look at several aspects of the
demographic profile of the United States, including size of the population, age of the
population, shifts in ethnic groups, and population shifts among geographic regions.
Size of the population

Currently, the world population is 7,053,112,673. The U.S. population, which is the
world’s third largest behind China and India, stands at over 314 million. Both are
growing at a rapid pace. It is estimated that by the year 2020, the U.S. population will
increase to as much as 336 million while the world population is expected to grow at
a rate of roughly 76 million per year.34 This is of special interest to marketers of sports
entities who are considering expansion into international markets.
Age
Age is one of the most common variables used in segmenting and targeting groups of
consumers. As such, sports marketers must continually monitor demographic shifts
78
in the age of U.S. consumers. The “graying of America” has and will continue to exert
a huge influence. Many Americans are now living into their 70s, 80s, and beyond.
In fact, to date in the U.S., the growth in the number and proportion of older adults
is unprecedented. Two factors – Americans are living longer lives than in previous
decades and aging baby boomers encompass a proportionally larger demographic
segment – combine to impact this growth. By 2030, older adults will account for
roughly 20 percent of the U.S. population, doubling the population of Americans
aged 65 years to about 72 million. In 2030, when the last baby boomer turns 65, the
2
demographic landscape of our nation will have changed significantly, hence one of
every five Americans – about 72 million people – will be an older adult. By 2050, it
is anticipated that Americans aged 65 or older will number nearly 89 million people,
more than double the number of older adults in the United States in 2010.35
Studies show that by the year 2015, mature adults will make up almost 25 percent of
the entire population; this number will grow even larger to comprise nearly 89 million
people or one-third of the population by the year 2050. This means that in about 50
years, one out of every three Americans will be 55 years of age or older, more than
double the number of adults in 2010.36 Apparently, with new technological advances
bringing about breakthroughs in medicine, a lower mortality rate, and preventive
approaches to health, Americans are living longer.
Moreover, the 79-million-strong baby boom generation has already entered midlife and
will soon age. In fact, if you add 65 years to January 1, 1946 you get January 1, 2011;
therefore, the retirement age of the baby boomer has arrived. Four out of every 10
adults in the United States are baby boomers. In 2012, baby boomers ranged from 48
to 66. Also of significance is the baby bust generation (children of baby boomers) that
follows in the wake of its parental tidal wave. In 2012, there were an estimated 20.23
million children under five years of age, compared with the 16 million in 1980.37
Shifts in ethnic groups

The United States has been called a melting pot because of its diversity and
multiethnic population providing promise that all immigrants can be transformed
into Americans, forging a new alloy built upon freedom, civic responsibility, and
the crucible of democracy. Today, the number of white Americans is diminishing.
Immigrants today come not from Europe but overwhelmingly from Asia and Latin
America and account for 60 percent of the nation’s population growth in the last
decade. According to the U.S. Census Bureau, the Hispanic population increased
by 15.2 million between 2000 and 2010, accounting for over half of the 27.3 million
increase in total population. Today, roughly 45 percent of American children under the
age of five belong to minority groups. By 2050, non-Hispanic whites will account for
only 54 percent of the U.S. population. In terms of sheer size, just over 102 million
people represent either the African American, Asian, or Hispanic ethnic groups. All
three of these ethnic groups have rising income levels, which translate into more
purchasing power.38 Although all minority groups are growing, the fastest-growing
segment has been Hispanics. Hispanic buying power is expected to reach $1.3 trillion
by 2015.39 The next fastest-growing minority was Asian Americans, who represent
14.4 million people. African Americans remain the second largest minority group, with
nearly 38 million people and $572 billion in annual buying power.
These ethnic groups are important subcultures that share a portion of the larger
(white) American culture, but also have unique consumption characteristics. There
79
MLB FORMS DIVERSITY COMMITTEE
NEW YORK -- Major League Baseball Sternberg and Detroit Tigers

has created a task force that will president Dave Dombrowski will
study how to increase diversity in help run the committee. Southern
the game, especially among black University coach Roger Cador,
players. Chicago White Sox executive vice
Commissioner Bud Selig president Ken Williams, MLB senior
announced the committee vice president of baseball operations
Wednesday. Kim Ng, union official and former
In less than a week, baseball will big leaguer Tony Clark and Arizona
celebrate the 66th anniversary of Diamondbacks president Derrick Hall
Jackie Robinson breaking the color are among the other members.
barrier. A new movie titled “42” MLB runs the Reviving Baseball
focuses on the Hall of Famer. in Inner Cities (RBI) program and
The 18-member committee has seven Urban Youth Academies
includes representatives from club that are either running or are in
ownership, the players’ union, minor development.
league and college baseball, the MLB “I am proud of the work we
scouting bureau and other areas. Hall have done thus far with the RBI
of Famer Frank Robinson and former program and the MLB Urban Youth
major league manager Jerry Manuel Academies, but there is more that we
are among the members. must accomplish,” Selig said.
MLB says about 8.5 percent of “We have seen a number of
players on this year’s opening day successful efforts with existing
rosters identified themselves as MLB task forces, and I believe we
African-American or black. That’s have selected the right people to
around half the number from the effectively address the many factors
mid-1970s through the mid-1990s. associated with diversity in baseball,”
“As a social institution, Major he said.
League Baseball has an enormous
Source: Associated Press; URL: http://
social responsibility to provide equal
espn.go.com/mlb/story/_/id/9158114/
opportunities for all people, both
mlb-forms-task-force-study-how-increase-
on and off the field,” Selig said in a diversity. Used with permission of
statement. Bloomberg L.P. Copyright© 2014. All
Tampa Bay Rays owner Stuart rights reserved.
are a number of benefits in developing a marketing mix that appeals to specific

ethnic groups. The accompanying article describes how Major League Baseball has
recognized the value of ethnic marketing tactics.
Population shifts
The latest count of the U.S. population highlighted that the demographic center of
gravity continued to shift away from the Northeast and Midwest. Through 2020, the
greatest population shift will be evident in the South and West. More than one-third of
the total United States population is projected to reside in the South during the years
1995 to 2025. In fact, the South will be the most populous region during the next 30
80
years. Over the next 30 years the West is projected to grow nearly twice the national
average. The Northeast and Midwest are expected to grow at half of the U.S. rate.
While the nation’s population grew approximately 10 percent in 2010, the fastest
gains occurred in the South (14.3 percent) and West (13.8 percent). Texas has grown
by approximately 4.3 million people in the last decade, where Houston and Dallas-
Fort Worth accounted for more than half of the State’s growth. Other Southern stars
included Florida, with the third largest increase, Georgia fourth, North Carolina fifth, and
Arizona the sixth. By percentage, rather than actual numbers, Nevada was the fastest
2
growing Western state in the last decade. Interestingly in the Midwest, the only state
which had a declining population in the last decade was Michigan. South Dakota was
found to be the fastest growing state in the Midwest which grew by 7.9 percent. In the
Northeast, New Hampshire had the region’s largest percentage increase for the fifth
straight decade, growing 6.5 percent. New York and New Jersey posted the highest
numeric gains in the Northeast, gaining 401,645 and 377,544 respectively.40
There is no definitive explanation for this shift, although some believe it is due to the
previously discussed aging of America or the growth of employment opportunities in
these areas. Keep in mind that, until 1957 when the Brooklyn Dodgers moved to Los
Angeles, there were no Major League Baseball teams west of St. Louis.
Along with exploring population shifts by state, sports marketers must assess the
dispersion of people within an area. Are people moving back to urban areas, or is
the “flight to the suburbs” still occurring? The 2000 and 2010 censuses showed the
greatest growth to be in suburban areas. There are still fewer people living in or moving
back to the central city. These measures of population dispersion are having an impact
on where new professional teams are locating and where new stadiums are being built.
The economy
The economic environment is another important but uncontrollable factor for sports
marketers to consider. Economic factors that affect sports organizations can be
described as either macroeconomic or microeconomic elements. A brief explanation
of each follows.
Macroeconomic elements
Economic activity is the flow of goods and services between producers and
consumers. The size of this flow and the principal measure of all economic activity
is called the gross national product (GNP). The business cycle, which closely follows
the GNP, is one of the broadest macroeconomic elements. The four stages of the
business cycle are as follows:
X Prosperity – The phase in which the economy is operating at or near full
employment, and both consumer spending and business output are high.
X Recession – The downward phase, in which consumer spending, business output,
and employment are decreasing.
X Depression – The low phase of the business cycle, in which unemployment is
highest, consumer spending is low, and business output has declined drastically.
X Recovery – The upward phase when employment, consumer spending, and
business output are rising.
Each cyclical phase influences economic variables, such as unemployment, inflation,
and consumers’ willingness to spend. Decisions about the strategic sports marketing
process are affected by these fluctuations in the economy. Ticket sales may boom
81
during times of economic growth. In addition, the growth period may have an
even greater impact on corporate demand for luxury boxes and season tickets. If
the country is in either a recession or a depression, consumers may be reluctant
to purchase nonessential goods and services such as sporting goods or tickets to
sporting events. Mistakenly, the sports industry sometimes seems to operate under
the “ignorance is bliss” philosophy when it comes to the economy. As Steve Wilstein
points out, “salaries for athletes kept rising, TV deals soared, and ticket prices
spiraled ever upward as if the leagues were living in their own fantasyland, immune to
economic cycles.”41 Although Wilstein believes the sports that are hardest hit by the
economy are those already on the periphery (e.g., the Women’s Professional Bowling
Tour), even the major sports are hit hard by a poor economy.
Although the relationship between the purchase of sporting goods and tickets to sporting
events is likely to be associated with good economic times, this may not always be the
case. During a recession or depression, sports may serve as a rallying point for people.
Consumers can still feel good about their teams, even in times of economic hardship.
This is one of the important, but sometimes neglected, societal roles of sport.
Microeconomic elements
Whereas macroeconomic elements examine the big picture, or the national income,
microeconomic elements are those smaller elements that make up the big picture.
One of the microelements of concern to sports marketers is consumer income
level. As economist Paul Samuelson points out, “Mere billions of dollars would
be meaningless if they did not correspond to the thousand and one useful goods
and services that people really need and want.”42 Likewise, having sports products
would be meaningless if consumers could not afford to purchase them. A primary
determinant of a consumer’s ability to purchase is income level.
Consumer income levels are specified in terms of gross income, disposable income,
or discretionary income. Of these types of income, discretionary is of greatest interest
to sports marketers. This is the portion of income that the consumer retains after
paying taxes and purchasing necessities. Sports purchases are considered a non-
necessity and, therefore, are related to a consumer’s or family’s discretionary income.
According to a new analysis by The Conference Board, slightly more than half (51
percent) of American households have some discretionary income they can spend
on non-necessities.43 In addition, the number of families with discretionary income is
expected to rise slightly over the next decade.
Sports advocates argue that new stadia and consumer spending on sports support
local economic growth. The local economic benefits from a major professional sports
team are typically derived from four major sources of spending: (1) attendance
(tickets and parking) at the games; (2) concession items sold at the games such
as food and merchandise; (3) spending before and after the events for other
consumption items such as meals; and (4) taxes paid to local government on
spending for the previous three categories. Others argue that spending on sport has
little impact and that professional sport is an economic drain. The following quote
summarizes this notion.
People have a limited amount of discretionary income. They may use it on attendance
at professional sporting events. In the absence of pro sports, they will spend the money
elsewhere – lower-level sporting events, the movies, etc. The same is true for large
corporations. If they don’t buy sky boxes, they will entertain their clients elsewhere
82
(i.e., restaurants). Sports facilities generate very few jobs. For a local economy, player
management (and that may come from outside) and low-level game day employment
(vendors, etc.. . .). A modest factory or a small research facility has far more impact.44
Monitoring the external contingencies

As discussed, external contingencies are dynamic, and sports marketers must keep
abreast of these continually changing influences. A systematic analysis of these
2
external factors is the first step taken by sports marketers using the contingency
framework. In addition, as the sports industry becomes more competitive, one of the
keys to success will be identifying new market opportunities and direction through
assessing the external contingencies. The method used to monitor the external
contingencies is known as environmental scanning.
Environmental scanning
An outward-looking, environmental focus has long been viewed as a central
component of strategic planning. In fact, it has been argued that the primary focus
of strategic planning is “to look continuously outward,” to have foreseeability,
and to keep the organization in step with the anticipated changes in the external
environment. This process of monitoring external contingencies is called
environmental scanning. More formally, environmental scanning is a firm’s attempt
to continually acquire information on events occurring outside the organization so it
can identify and interpret potential trends.45
A sports organization can do several things to enhance its environmental scanning
efforts. First, the organization can identify who will be responsible for environmental
scanning. The only way to move beyond the pressures of daily business activities is to
include environmental scanning responsibilities in the job description of key members
of the organization.
Second, the organization can provide individuals conducting the environmental scan
with plenty of information on the three Cs: customers, competition, and company.
Your scanners cannot correctly monitor the environment without having a solid
base of information about the following: customer expectations and needs; the
strengths, weaknesses, distinctive competencies, and relative market positioning
of the competition; and the strengths, weaknesses, distinctive competencies, and
relative market positioning of your own company – as well as the major developmental
opportunities that await exploitation.
Third, the organization can ensure integration of scanned information through
structured interactions and communication. All too often, information needed to
recognize new market opportunities is identified but never gets disseminated among
the various functional areas. That is, marketing, finance, and operations may all
have some information, or pieces to the puzzle, but unless these individuals share
the information, it becomes meaningless. Organizations with the most effective
environmental scanning systems schedule frequent interactions among their
designated scanners.
Fourth, the organization can conduct a thorough analysis of ongoing efforts to
improve the effectiveness of environmental scanning activities. This systematic study
consists of evaluating the types of scanning data that are relevant and available to
managers. This focus on previous environmental scanning efforts can often lead to the
identification of new market opportunities.
83
Fifth, the organization can create a culture that values a “spirit of inquiry.” When an
organization develops such a spirit, it is understood that the environmental scanning
process is necessary for success. In addition, it is understood that environmental
scanning is an ongoing activity that is valued by the organization.
Environmental scanning is an essential task for recognizing the external contingencies
and understanding how they might affect marketing efforts. However, there are
two reasons why environmental scanning practices may fail to identify market
opportunities or threats. First, the primary difficulty in effectively scanning the
environment lies in the nature of the task itself. As scanning implies, sports marketers
must look into the future and predict what will likely take place. To make matters even
more difficult, these predictions are based on the interaction of the complex variables
previously mentioned, such as the economy, demographics, technology, and so on.
Second, predictions about the environment are based on data. Sports marketers
are exposed to enormous amounts of data and only with experience can individuals
selectively choose and correctly interpret the “right data” from the overwhelming
mass of information available to them.
Assessing the internal and external contingencies: SWOT

analysis
To this point, we have looked at both the external and internal contingencies. To guide
the strategic sports marketing process, an organization conducts a SWOT analysis.
SWOT is an acronym for strengths, weaknesses, opportunities, and threats. The
strengths and weaknesses are controllable factors within the organization. In other
words, a firm must evaluate its strengths and weaknesses based on the internal
contingencies. The opportunities and threats are assessed as a result of the external
contingencies found in the marketing environment. These elements may be beyond
the control of the sports organization.
The strategic sports marketing process must first examine its own internal
contingencies. These internal strengths and weaknesses include human resources,
financial resources, and whether organizational objectives and marketing goals
are being met with the current marketing mix. Products and services, promotional
efforts, pricing structure, and methods of distribution are also characterized as either
strengths or weaknesses.
After assessing the organizational strengths and weaknesses, the firm identifies
external opportunities and threats found in the marketing environment. As discussed
earlier in the chapter, sports marketing managers must monitor the competition;
demographic shifts; the economy; political, legal, and regulatory issues; and
technological advances. Each of these external factors may affect the direction of the
The intent of conducting a SWOT analysis is to help sports marketers recognize or
develop areas of strength capable of exploiting environmental opportunities. When
sports marketers observe opportunities that match a particular strength, a strategic
window is opened. More formally, strategic windows are limited periods of time
during which the characteristics of a market and the distinctive competencies of a firm
fit together well and reduce the risks of seizing a particular market opportunity. For
example, IMG, a leading sports and entertainment marketing company, has created
“IMG X Sports” to capitalize on the growing popularity in extreme and lifestyle sports
and IMG College to capitalize on the growing popularity of college sports. In addition
84
Ad 2.2 NCAA capitalizes on the new opportunities based on the growth in women’s
sports.
Source: NCAA © National Collegiate Athletic Association, 2012
to capitalizing on strengths, sports marketers develop strategies that eliminate or

minimize organizational weaknesses.
At this stage, you should have a broad understanding of how each of the external
contingencies may affect your marketing plan. Table 2.3 provides a common list of
questions to consider when developing the opportunities and threats (OT) portion of
your SWOT analysis.
Table 2.3 Assessing external contingencies
1. Social – What major social and lifestyle trends will have an impact on the sports participants or
spectators? What action has the firm been taking in response to these trends?
2. Demographics – What impact will forecast trends in size, age, profile, and distribution of
population have on the firm? How will the changing nature of the family, the increase in the
proportion of women in the workforce, and changes in ethnic composition of the population affect
the firm? What action has the firm taken in response to these developments and trends? Has the
firm reevaluated its traditional sports products and expanded the range of specialized offerings to
respond to these changes?
3. Economic – What major trends in taxation and in income sources will have an impact on the firm?
What action has the firm taken in response to these trends?
4. Political, Legal, and Regulatory – What laws are now being proposed at federal, state, and local
levels that could affect the strategic marketing process? What recent changes in regulations and
court decisions have affected the sports industry? What action has the firm taken in response to
these legal and political changes?
5. Competition – Which organizations are competing with us directly by offering a similar product?
Which organizations are competing with us indirectly by securing our customers’ time, money,
energy, or commitment? What new competitive trends seem likely to emerge? How effective is
the competition? What benefits do our competitors offer that we do not?
6. Technological – What major technological changes are occurring that affect the sports
organization and sports industry?
85
Summary
Chapter 2 provides an overview of and mission of the sports organization.
the contingency framework for the The objectives of the organization are
strategic sports marketing process. long term and sometimes unquantifiable.
Although there are many ways to think Alternatively, marketing goals are
about constructing a sports marketing short term, measurable, and time
plan, it is best to lay a foundation that specific. It is extremely important to
is prepared for the unexpected. The remember that the marketing goals
contingency framework is especially are directly linked to decisions made in
useful for sports marketers because of the strategic sports marketing process.
the complex and uncertain conditions in Another internal contingency that
which the sports organization operates. influences the strategic sports marketing
The unexpected changes that occur over process is organizational strategy. The
the course of a season or event may organizational strategy is how the sports
be positive or negative. The changes organization plans on carrying out its
that occur may be either controllable vision, mission, objectives, and goals.
or uncontrollable events that affect the There are four different levels of strategy
sports organization. The contingency development within the organization.
framework includes three major These include corporate-level strategies,
components: the internal contingencies, business-level strategies, functional-
the external contingencies, and the level strategies, and operational-level
strategic sports marketing process. strategies. Marketing is described
Uncontrollable occurrences are typically as a functional-level strategy. The
in the marketing environment and are operational-level strategies such as
referred to as external contingencies, pricing and promotion must fit the
whereas internal contingencies are broader strategic sports marketing
within the control of the organization process. A final internal contingency is
(sometimes beyond the scope of the the organizational culture or the shared
marketing function). The heart of the values and assumptions of organizational
contingency framework is the strategic members that shape an identity and
sports marketing process, which is establish preferred behaviors in an
defined as the process of planning, organization.
implementing, and controlling marketing The external contingencies that affect
efforts to meet organizational goals and the strategic sports marketing process
satisfy consumers’ needs. include competition; technology;
Internal contingencies, thought of as cultural and social trends; physical
managerial, controllable issues, include environment; political, legal, and
the vision and mission of the sports regulatory environment; demographic
organization, organizational objectives trends; and the economy. As with any
and marketing goals, organizational industry, understanding competitive
strategies, and organizational culture. threats that exist is critical to the
The vision and mission of the sports success of all sports organizations.
organization guide the strategic sports Competition for sporting events and
marketing process by addressing sports organizations comes in many
questions such as: What business are forms. Typically, we think of competition
we in? Who are our current customers? as being any other sporting event.
What is the scope of our market? How However, other forms of entertainment
do we currently meet the needs of our are also considered competitive threats
customers? The organizational objectives for sports organizations. Technological
and marketing goals stem from the vision forces represent another external
86
contingency. Advances in technology are contingencies called environmental
changing the way that consumers watch scanning. Environmental scanning is
sports, play sports, and receive their the sports organization’s attempt to
sports information. Cultural and social acquire information continually on events
trends must also be carefully monitored. occurring outside the organization and
Core values, such as individualism,
youthfulness, and the need for belonging,
can have an impact on the target markets
to identify and interpret potential trends.
Sports marketers must continually
monitor the environment to look for
2
chosen and how sports products are opportunities and threats that may affect
positioned to spectators and participants. the organization.
The physical environment, such as External and internal contingencies are
the climate and weather conditions, is systematically considered prior to the
another external contingency that can development of the strategic marketing
have a tremendous influence on the process. The process that many
success or failure of sporting events. organizations use to analyze internal
Another of the uncontrollable factors and external contingencies is called a
is the political, legal, and regulatory SWOT analysis. SWOT is an acronym for
environment. Proposed legislation, such strengths, weaknesses, opportunities,
as the banning of all tobacco advertising and threats. The strengths and weakness
and sponsorship at sporting events, could are internal, controllable factors within
have a tremendous impact on the motor the organization that may influence the
sports industry. Demographic trends direction of the strategic sports marketing
are another critical external contingency process. For example, human resources
that must be monitored by sports within the organization may represent
marketers. For instance, the graying of strengths or weaknesses within any
America will bring about changes in the organization. However, the opportunities
levels of participation in sports and the and threats are uncontrollable aspects
types of sports in which the “mature of the marketing environment (e.g.,
market” will participate. Finally, economic competition and the economy). The
conditions should be considered by purpose of conducting a SWOT analysis
sports marketers. Sports marketers must is to help sports marketers recognize
monitor the macroeconomic elements, how the strengths of their organization
such as the national economy, as well can be paired with opportunities that
as microeconomic issues, such as the exist in the marketing environment.
discretionary income of consumers in the Conversely, the organization may conduct
target market. a SWOT analysis to identify weaknesses
Because the marketing environment is so in relation to competitors.
complex and dynamic, sports marketers
use a method for monitoring external
Key terms X demographic X internal contingencies

environment X macroeconomic
X competition X direct competition elements
X contingency framework X economic activity X market selection
for strategic sports X environmental decisions
marketing scanning X marketing environment
X control phase X external contingencies X marketing mix
X cultural values X goal X microeconomic
X culture X implementation phase elements
X indirect competition X objectives
87
X organizational culture X political, legal, and X technology
X organizational regulatory environment X vision
strategies X strategic sports
X physical environment marketing process
X planning phase X strategic windows
Review questions marketers. How will these

demographic trends influence the
1. Describe the contingency framework strategic marketing process?
for strategic sports marketing. 12. Differentiate between macro- and
Why is the contingency approach microeconomic elements. Which
especially useful to sports (macro- or microelements) do you
marketers? feel plays an important role in sports
2. Outline the strategic marketing marketing? Why?
process, and comment on how it is 13. How can sports marketers assess
related to the external and internal the external environment? What are
contingencies. some sources of secondary data
3. Define the marketing environment. that may assist in understanding
Are all elements of the marketing the current and future external
environment considered environment?
uncontrollable? Why or why not?
4. What is environmental scanning?
Exercises
Why is environmental scanning
so important? Who conducts the 1. Interview the marketing manager
environmental scan, and how is one of a local college or professional
conducted? sports organization and develop a
5. Define competition. What are the list of the uncontrollable factors that
different types of competition? were unexpected throughout the last
6. How has technology influenced the season.
sports marketing industry? Discuss 2. Interview the marketing manager of
how “out-of-market” technology a sporting goods retailer or sports
benefits sports spectators. organization about the company’s
7. Identify several cultural and social strategic sports marketing process.
trends in our society and describe Ask how the external and internal
their impact on sport and sports contingencies affect planning.
marketing. 3. Find two sports organizations that,
8. What are the core American values, in your opinion, have effective
and why are they important to sports mission and vision statements. How
marketers? do they promote these statements
9. How does the physical environment and how are they reflected in the
play a role in sports marketing? How organization?
can sports marketers manipulate or 4. Describe all the ways the changing
change the physical environment? marketing environment will have
10. Define the political and regulatory an impact on NASCAR racing. How
environment. Cite several examples should NASCAR prepare for the
of how this can influence or dictate future?
sports marketing practices. 5. Your university’s athletic program
11. Describe the different demographic has a number of competitors. List all
trends of interest to sports potential competitors and categorize
88
what type of competition each data to support what sports fans
represents. in 2020 might look like from a
6. Find examples of how technology demographic perspective.
has influenced the sporting goods
industry, a professional sports Endnotes
franchise, and the way spectators
watch a sporting event. For each
example indicate the technology
1 Rick Burton and Dennis Howard, “Recovery
Strategies for Sports Marketers: The
Marketing of Sports Involves Unscripted
2
that was used prior to the new Moments Delivered by Unpredictable
technology. Individuals and Uncontrollable Events,”
Marketing Management, vol. 9, no. 1 (Spring
7. Develop advertisements for athletic 2000), 43.
shoes that reflect each of the core 2 W. Richard Scott, Organizations: Rational,
American values discussed in this Natural, and Open Systems (Upper Saddle
chapter. River, NJ: Prentice Hall, 1987), 87–89.
3 Bernard J. Mullin, Stephan Hardy, and
8. Interview five international students William Sutton, Sport Marketing (Champaign,
and discuss the core values used IL: Human Kinetics Publishers, 1993), 16.
by sports marketers in their culture. 4 “Under Armour Mission,” Under Armour.
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of professional sports franchises, with Comcast–NBC Universal Deal,” Sports
Business Journal (March 2010).
and new sports products. Provide 9 “Food for Thought: Dodgers Offer All-You-
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10 Nielsen, 2014, Year in Sports Media Report
Internet exercises 2013 (February 2). Available from: http://
www.nielsen.com/us/en/reports/2014/year-
1. Experience a portion of any sporting in-the-sports-media-report-2013.html.
event via Internet broadcast. What 11 Sam Mamudi, “Study Shows Sports TV
did you enjoy the most about this Success,” SportsWatch (January 24, 2012).
12 Ken Kerschbaumer, “Battle for College
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Internet that stress technological 2006) p. 48.
13 Shank, M. D., and Verderber, K., 1999,
innovation. Do the companies “Understanding the Nature of Sports
communicate their technological Competition,” International Conference on
advantages differently? Sport & Society, Marquette, MI, June.
3. Search the Internet for articles or 14 NASCAR.com. “NASCAR Digital Media
Records Historic Day.” Available from:
sites that discuss the pros and http://www.nascar.com/en_us/news-media/
cons of the banning of tobacco articles/2014/2/24/nascar-digital-media-
advertisements at sporting events. records-historic-day.html, released February
4. Go to the Internet and find census 24, 2014; accessed February 28, 2014.
89
15 “Top 15 Most Popular Websites,” The 31 Scott Wong, “New-Age Stadium Is on
eBusiness (February 2012). a High-Tech Roll,” The Arizona Republic
16 Ken Kerschbaumer, “Cornhusker Fans Surf (August 10, 2006).
for Tackles,” Broadcasting and Cable (August 32 NASC Playbook 2013, National Association
28, 2000). of Sports Commissions, December. Available
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18 Bill King and Eric Fisher, “A Secondary Look 33 “For the Good of the Game,” 1996, FIFA.
at Ticketing: Teams Face a Secondary Market Available from: http://www.fifa.com/
that has Redefined the Ticket Business: Like aboutfifa/federation/mission.html.
it or Loathe it, it’s the World They Helped 34 http://www.census.gov/population/pop-
Create,” Sports Business Journal (October profile/dynamic/PopDistribution.pdf.
2011). 35 The State of Aging and Health in America
19 Eric Fisher, “Numbers Game,” Sports 2013, National Center for Chronic Disease
Business Journal (September 27, 2010). Prevention and Health Promotion Division
20 “Golf Company Featured on the Golf of Population Health, Department of Health
Channel,” Market Wire (November 21, 2006), and Human Services, Washington, DC.
E21. Available from: http://www.cdc.gov/features/
21 “Textronics Expands into UK with NuMetrex agingandhealth/state_of_aging_and_health_
Clothes That Monitor the Body,” Business in_america_2013.pdf, accessed June 17,
Wire (September 12, 2006). 2014.
22 Wesley Cropp, “Shoes Going Very High 36 Ibid.
Tech,” The Daily Iowan (July 19, 2006). 37 U.S. Census Bureau, 2013, State and
23 Blog Maverick, The Mark Cuban WebLog. Country Quick Facts. Available from: http://
Available from: http://blogmaverick.com/, quickfacts.census.gov/qfd/states/00000.html,
accessed February 25, 2014. accessed June 17, 2014.
24 “Cisco and Athletics Announce Cisco Field; 38 “Minorities Getting Closer to the Majority,”
State-of-the-Art Technology to Take Fan CNN (May 11, 2006). Available from: http://
Experience to New Level” (November 14, www.cnn.com/2006/US/05/10/hispanics/
2006). Available from: http://newsroom.cisco. index.html.
com/dlls/2006/corp_111406.html?CMP=ILC- 39 Shannon Bryant, “Hispanic Buying Power
001&POSITION=SEM&COUNTRY_SITE=us& Projected to Reach $1.3 Trillion in 2015,”
CAMPAIGN=HN&CREATIVE=STADIUM&RE Marketing Forecast (January 2010).
FERRING_SITE=GOOGLE&KEYWORD=null. 40 Teresa Burney, “Go West . . . and South: A
25 Jeremy Repanich, “Top 5 Technologies in Shift in US Population,” Builder Magazine
NFL Stadiums,” Popular Mechanics (2011). (April 2011).
26 “Twelve Baseball Parks to Use MasterCard 41 Steve Wilstein, “Think the NBA Can’t Go
PayPass Technology This Season,” Belly Up? Think Again,” Associated Press,
(September 27, 2006). Available from: http:// (September 26, 2003). Available from: http://
www.finextra.com/fullpr.asp?id=11531. news.mysanantonio.com.
27 “Essential Facts about the Computer and 42 Paul A. Samuelson, Economics, 10th ed.
Video Game Industry,” 2006, Entertainment (New York: McGraw Hill, 1976).
Software Association. Available from: 43 Lynn Franco, The Marketers Guide to
http://www.theesa.com/archives/files/ Discretionary Income (The Conference Board
Essential%20Facts%202006.pdf. Inc., New York, NY, November, 2007).
28 Chris Morris, “Average Vidgamer Older, 44 Brian Reich, “Baseball and the American
More Affluent,” Technology News (June City” (April 30, 2001). Available from:
2010). http://www.stadiummouse.com/stadium/
29 “2013 Sales and Usage Data, Essential Facts economic.html.
About the Computer and Gaming Industry,” 45 Matthew D. Shank and Robert A. Snyder,
Entertainment Software. Available from: “Temporary Solutions: Uncovering New
http://www.theesa.com/facts/pdfs/esa_ Market Opportunities in the Temporary
ef_2013.pdf, accessed February 25, 2014. Employment Industry,” Journal of
30 Sport and Fitness Industry Association, 2013. Professional Services Marketing, vol. 12,
SFIA US Trends in Team Sports Report, no. 1 (1995), 5–17.
Silver Springs, MD, 2013.
90
PART II
Planning for
Market Selection
Decisions
CHAPTER 3
Research tools for
understanding sports
consumers
• Discuss the importance of marketing research to sports marketers.
• Explain the fundamental process for conducting sports marketing
research.
• Identify the various research design types.
• Describe the process for questionnaire development.
• Understand how to prepare an effective research report.
3 Research tools for understanding sports consumers
As the following RailCats, Scarborough Sports Marketing, Sponsorship Research and
Strategy (SRS), IEG, Taylor (NASCAR), ESPN, and sponsorship ROI studies illustrate,
marketing research is a fundamental tool for understanding and ultimately satisfying
customers’ needs. As described in Chapter 1, one way of demonstrating a marketing
orientation is to gather information used for decision making. Another way of
establishing a marketing orientation is to disseminate information and share the
marketing information with those responsible for making decisions. Marketing research
is viewed as an essential element in marketing-oriented organizations.
The information gathered through marketing research can be as basic as where
consumers live, how much money they make, and how old they are. Research also
provides information for decision makers in identifying marketing opportunities and
threats, segmenting markets, choosing and understanding the characteristics of
target markets, evaluating the current market positioning, and making marketing mix
decisions.
More specifically, marketing research may provide answers to questions such as the
following:
X What new products or services would be of interest to consumers of sport?
X What do present and potential consumers think about our new ad campaign?
X How does the advertising and promotion mix affect purchase decisions?
X What are the latest changes or trends in the sport marketplace?
X How are consumers receiving sports information and programming?
X What are sports fans spending, and what are they buying?
X Who are the biggest sponsors of professional sports leagues or college sports?
X How interested are fans in my team, my players, and in the sport itself?
X How do consumers perceive my team, league, or event relative to competitors?
X What is the best way to promote my sports product or service?
X Who participates in sports, and in what sports are they participating? Also, where
are they participating, and how often?
X Are current consumers satisfied with my sports products and services? What are
the major determinants of customer satisfaction?
X What price are consumers willing to pay for my sports product or service?
X What image does the team, player, or event hold with current consumers and
potential consumers?
MARKETING RESEARCH IN ACTION:

THE GARY SOUTHSHORE RAILCATS
Since their inception the Gary that would guide the planning phase
Southshore RailCats have utilized of their strategic marketing process.
market research to enhance the At the time, under the ownership
strategic planning and business of Victory Sports Group LLC., CEO
success of the organization. The Mike Tatoian and with the assistance
Southshore RailCats, currently a of former General Manager Roger
member of the modern American Wexelberg, the Southshore RailCats
Association of Independent were able to successfully combine
Professional Baseball, conducted the power of sports and grass roots
a detailed study prior to their first marketing to provide an exciting and
official game to gather information memorable experience while adding
94
to the quality of life in Northwest Some of the contents of the survey

Indiana. The RailCats’ mission is to included information specific to:
provide Northwest Indiana with an X I am planning to attend a RailCats
exceptional level of fun, affordable game this coming season.
family entertainment in a safe and X I am more likely to a attend a
enjoyable atmosphere. To ensure game on a weekend than weekday
that fans received this opportunity X I prefer to attend games that have
the organization sought to identify promotional give-aways
and determine if marketing services
and investment opportunities were
of an investment scale to which
X The quality of play will influence
my attendance to a RailCats game
X The RailCats organization is
3
a capable private operator under actively involved in the community
a contractual agreement set-forth X Which of the following best
can achieve economic success. The describes with whom you may
goal of the RailCats organization attend a RailCats game?
was to offer marketing/sponsorship X If available, would you
of such services and facilities at a purchase a mini season ticket
reasonable cost to the consumer plan for the upcoming XXXX
public, therefore validating rights fee season?
expenditures. A self-administered X Please identify the number of
survey of area consumers (N=1034) games you would prefer to
served as the primary data purchase.
collection instrument to examine the X Please rank from most likely to
identified research objectives. The least likely the following items that
survey was segmented into seven may influence your attendance
categories: interest levels, awareness, to a RailCats game (day of game,
attendance/purchase characteristics, fireworks, opponent, premium
media/entertainment choices, level of giveaways, theme nights)
importance, fan characteristics, and X Please rank preference of media
demographics. The intention of the sources for information of local
research was to assist the Southshore sports teams
RailCats to make informed X What is your zip code?
decisions consistent with common X What is your gender?
organizational goals. In addition, the X What year were you born?
study was designed to look at how
survey responses differed according Source: Center for Sport
to fan demographics. For instance, Recreation and Tourism Development,
are males more likely than females to KSU /Gary Southshore RailCats Feasibility
attend a RailCats game in the future? Study.
These are just a few of the questions that may be addressed through
marketing research. As the following press release highlighting research
conducted by Scarborough Sports Marketing (2012) illustrates, sport and
entertainment organizations utilize a variety of research techniques to assess
consumer behaviors. The following narrative of market research conducted by
Scarborough Research illustrates the varying demographics of Major League
Baseball.
95
HITTING A HOME RUN WITH THE DIGITAL

GENERATION
NEW YORK (April 3, 2012) – The with a team logo in the past 12
Major League Baseball (MLB) season months. Retail spaces also offer an
has already opened in Japan with opportunity for fan outreach as more
Seattle and Oakland, and fans (view than half (56%) of Gen Y MLB Fans
infographic) are excited for MLB shopped at a sporting goods store in
opening day here in the States the past three months.
on April 4, when the defending Where can Gen Y MLB Fans be
champions, the St. Louis Cardinals, reached? They are 54% more likely
visit the Miami Marlins at their brand than all MLB Fans to have used a
new stadium. Scarborough Sports mobile device to read a newspaper
Marketing, a consumer marketing in the past 30 days, 84% more likely
firm specializing in sports and fan to have listened to internet radio in
insights, defines “Fans” as American the past 30 days and 22% more likely
adults who say they are “very, than all MLB Fans to typically watch
somewhat or a little bit” interested reality TV. Gen Y MLB Fans are more
in a given sport. “Avid Fans” are than twice as likely as all MLB Fans
American adults who say they are to have visited Twitter in the past 30
“very” interested in a given sport. days, 59% more likely to have read or
According to the new contributed to a blog in the past 30
Scarborough Sports Marketing days and 68% more likely to watch
study, nearly half (49%, 115M) of all video clips online in the same time
American adults are MLB Fans and period. Gen Y MLB Fans are 131%
15% (36M) are Avid Fans. The study more likely than all MLB Fans to have
also reveals that there is ample visited Hulu.com in the past 30 days
opportunity to turn young fans into and 65% more likely to have visited
lifelong MLB enthusiasts as 44% of YouTube.com in the same time frame.
Generation Y* is MLB Fans and 13% “Generation Y is so active on
is Avid Fans. Twitter and Facebook that any
“Generation Y makes up 20% modern marketing campaign
of the American adult population – is incomplete without a social
that’s 46 million people,” says Bill component,” continues Nielsen.
Nielsen, Vice President of Sales “With youthful initiatives like the
for Scarborough Sports Marketing. MLB Fan Cave in New York City
“Major League Baseball, MLB and increased social media efforts,
teams and advertisers understand the league, teams and advertisers
how critical it is to continue can reach younger audiences in
to reach out to this younger the spaces where they are most
demographic in an effective and engaged.”
efficient way, to build long-term Gen Y MLB Fans can also be found
affinity for the sport.” participating in a variety of different
Almost a third (30 percent) of Gen athletic and entertainment activities.
Y MLB Fans are willing to spend Gen Y MLB Fans are twice as likely as
$25–49 on a single game MLB ticket all MLB Fans to have played soccer,
and 12% are interested in purchasing football or basketball in the past 12
season tickets. Gen Y MLB Fans are months and 66% more likely to have
also 37% more likely than all MLB played softball or baseball in the
Fans to have bought MLB apparel same time frame. They are also twice
96
as likely to have attended an R&B/

Rap/Hip-Hop concert and 49% more
likely to have visited a comedy club in
the past year.
Gen Y MLB Fans are 23% more
likely than all MLB Fans to be Black/
African American and 83% more
likely to be Hispanic. The top local
markets for Gen Y MLB Fans are
Milwaukee (76% of Gen Y are MLB
fans); Philadelphia (70%); Hartford,
3
C.T. (66%); St. Louis (66%) and
Albany, N.Y. (62%).
DMA % of Gen Y
MLB Fans
Milwaukee 76
Philadelphia 70
Hartford, C.T. 66
St. Louis 66
Albany, N.Y. 62
Boston 61
Cincinnati 60 be sure to visit us on Facebook
Syracuse, N.Y. 57 at https://www.facebook.com/
Providence, R.I. 57 ScarboroughSports.
Minneapolis 57 This data is from Scarborough
USA+ 2011 Release 2. Scarborough
Looking at the two teams that play in
measures 210,000 adults aged 18+
the season opener, Gen Y makes up
annually across a wide variety
21% of the total St. Louis population
of media, lifestyle, shopping and
and 18% of the Miami population. 72%
demographic categories.
of Gen Y St. Louis residents watched,
If you are interested in additional
attended or listened to a Cardinals
Scarborough Sports Marketing
game in the past year and 36% of Gen
reports, please contact Brad
Y Miami residents watched, attended
Sherer, 480.659.7395/Brad.Sherer@
or listened to a Marlins game in the
scarborough.com.
same time period.
About Scarborough Sports Marketing
Top Local Markets for Gen Y MLB
Scarborough Sports Marketing (www.
Fans
scarboroughsportsmarketing.com,
*Scarborough defines the different
[email protected]) measures
American generations as Generation
local and national consumer and
Y (age 18–29), Generation X (30–44),
lifestyle information by interviewing
Baby Boomers (45–64) and the Silent
over 210,000 adults (18+) in 77
Generation (65+).
Top-Tier Markets, including all
Continue the dialogue with
professional sports markets.
Scarborough Sports Marketing
Scarborough sports measurements
over Twitter by reaching out to @
include fan avidity; multi-media
ScarbSports or @ScarboroughInfo
measures including sports viewing
using hashtag #OpeningDay and
97
and listening; corporate sponsorship which is a joint venture between

information including fans’ shopping Arbitron Inc. and The Nielsen
and product/service usage; and Company.
leisure activities. Scarborough Contact: Haley Dercher, 646.654.8426
delivers twice-yearly updates of its / [email protected]
local market reports to a diverse
Source: Rightsholder: Scarborough
client base, spanning all major media,
USA 2012; http://www.prnewswire.
advertisers and their agencies.
com/news-releases/hitting-a-home-run-
Scarborough Sports Marketing is a with-the-digital-generation-145950285.html.
division of Scarborough Research,
Marketing research as defined by the American Marketing Association (2004/2014)

is: the process or set of processes that links the consumers, customers, and end
users to the market through information – information used to identify and define
marketing opportunities and problems; generate, refine, and evaluate marketing
actions; monitor marketing performance; and improve understanding of marketing
as a process. Marketing research specifies the information required to address these
issues, designs the method for collecting information, manages and implements the
data collection process, analyzes the results, and communicates the findings and
their implications. More specifically, sports marketing research is the systematic
process of collecting, analyzing, and reporting information to enhance decision making
throughout the strategic sports marketing process.
Three key issues emerge from this definition. First, marketing research must be
systematic in its approach. Systematic research is both well organized and unbiased.
The well-organized nature of good research depends on adherence to the marketing
research process, which is discussed later in this chapter. Researchers must also be
careful not to make up their minds about the results of a study prior to conducting it;
therefore, researchers must conduct the study in an unbiased manner.
Second, the marketing research process involves much more than collecting data
and then reporting them back to decision makers. The challenge of research lies
in taking the data collected, analyzing them, and then making sense of the data.
Marketing researchers who can collect data, dump them in the computer, and spit out
reports are a dime a dozen. The most valuable marketing researcher is the person who
has the ability to examine the data and then make recommendations about how the
information should be used (or not used) in the strategic marketing process.
Third, the importance of marketing research is found in its ability to allow managers to
make informed decisions. Without the information gathered in research, management
decision making would be based on guessing and luck. As Woody Hayes, Ohio State’s
legendary football coach, once said about the forward pass, “Three things can happen
and two of them are bad!”
Finally, the definition states that marketing research is useful throughout the entire
strategic sports marketing process. Traditionally, the focus of marketing research has
been on how the information can be used in better understanding consumers during
the planning phase of the strategic sports marketing process. It is also important to
realize that marketing research is relevant at the implementation and control phases of
the strategic marketing process. For example, research is used in the control phase to
determine whether marketing goals are being met.
98
The marketing research process

As previously mentioned, marketing research is conducted using a systematic
process, or the series of interrelated steps shown in Figure 3.1. Before we discuss
each step in the research process in greater detail, two points should be kept in mind.
First, the basic framework or process for conducting marketing research does not
change, although every marketing research problem will be different. For example,
the Detroit Red Wings may engage in research to understand fan satisfaction or the
effectiveness of a between-period promotion. Each of these research questions
is different. However, the basic marketing research process used to address each
question is the same.
Second, you should understand that the steps of the research process are
3
interdependent. In other words, defining the problem in a certain way will affect the
choice of research design. Likewise, selecting a certain type of research design will
influence the selection of data collection tools. Let us now examine each of the steps
in the research process.
Defining the problem or opportunity

The first and most important step of the marketing research process for sports
marketers is to define the problem or opportunity. Problem definition requires the
researcher to specify what information is needed to assist in either solving problems
or identifying opportunities by developing a research problem statement. If the
research addresses the correct problem or opportunity and seeks to properly define
the problem or opportunity, then the project could be successful. However, the
data collected may be useless if they are not the information needed by the sports
marketing manager.
Defining the problem or

opportunity
Choosing the research design

type
Identifying data collection

methods
Designing data collection

forms
Designing the sample
Collecting, analyzing, and

interpreting
Preparing the research report
Figure 3.1 Marketing research process

99
Table 3.1 Issues addressed at initial research meeting
• A brief background or history of the organization or individual(s) requesting the research

• A brief background of the types of research the organization has done in the past, if any
• The information the organization wants and why (i.e., what they plan to do with the information
once it is obtained)
• The targeted population of interest for this research
• The expectations in terms of the timeframe for the research and costs of conducting the study
How does the researcher identify problems or opportunities that confront the sports
organization? Initially, information is gathered at a meeting between the researcher
and his or her client. In this meeting, the researcher should attempt to collect as much
information as possible to better understand the need for research. Table 3.1 shows
a list of the typical questions or issues addressed at the first information-gathering
meeting. Keep in mind that the ultimate goal of these meetings is to ensure that there
is a clear understanding between the researcher and the decision makers as to the
nature and role of the research and how it relates back to the need for information in
the decision-making process.
Research objectives
Based on this initial meeting, the researcher should have collected the proper information
to develop a set of research objectives; guidelines that establish an agenda of research
activities necessary to implement the research process. Research objectives describe
the various types of information needed to address the problem or opportunity. Each
specific objective will provide direction or focus for the rest of the study.
Here is an example of the research objectives developed for the NASCAR
Sponsorship Study conducted by Sponsorship Research and Strategy (SRS).1 The
purpose of the study was to provide information that would assist NASCAR sponsors
in planning, evaluating, and justifying their NASCAR sponsorships. More specifically,
the research objectives were as follows:
X Identify the benefits associated with NASCAR sponsorships.
X Record fan preferences for sales promotions.
X Identify lucrative market segments among NASCAR fans.
X Develop an extensive profile of NASCAR fans.
X Examine fan attitudes toward NASCAR and NASCAR sponsors.
X Analyze sponsorship effectiveness for different types of NASCAR sponsorships
(e.g., car vs. league).
X Provide a comparative basis for sponsorship performance among NASCAR Nextel
Cup drivers.
X Provide a comparative basis for sponsorship performance among official NASCAR
sponsors in selected product categories.
How would NASCAR or any sports entity go about measuring whether these
objectives have been reached? The accompanying article describes this growing
concern as it relates to sponsorship ROI. As the IEG narrative illustrates, to not
define evaluation tools in accordance with objectives measures and/or the failure to
analyze research outcomes completely can be more dangerous than not measuring
at all.
100
CASE STUDY
A sponsorship measurement solution
COMPLEX CHALLENGES
REQUIRE NEW TOOLS
3
Sponsorship’s impact is not one-dimensional. It also reveals that the solution does not need to
A partnership’s ability to meet its goals depends be invented, merely applied.
on a series of interconnected variables.
First, brands must incorporate deep knowledge
Marketers long ago recognized that the of how sponsorship works in shaping perceptions
sponsorship equation is not a simple one. They and driving changes in attitude and behavior
responded by reinventing the way they activate into each step, ensuring the right partnership is
and execute partnership programs, developing targeted to the right group and activated in the
big new ideas and using the latest technology to right ways.
make sponsorships more relevant and engaging.
Second, marketing science—which already
But when it comes to measurement, evaluation determines results for traditional media
tools have not kept up with the pace of change. campaigns—must be applied to close the
As the case study on the following pages shows, loop and determine ROI. The metrics, models
well-intentioned attempts that don’t ask the right and analyses used by brands to determine the
questions, or fail to analyze research outputs effectiveness of their advertising can be adapted
completely, can be more dangerous than not and scaled for partnerships of all types, including
measuring at all, as they lead to false deductions sports, entertainment, events and causes.
and wrong decisions.
BETTER BETTER BETTER BETTER BETTER

QUESTIONS ANSWERS CONCLUSIONS ACTIONS RESULTS
101
MAKING THE RIGHT DECISIONS
IEG Consulting engaged with a premium whiskey A deeper dive into the purchasing habits and
brand that was in the middle of a multi-year lifestyles of racing fans revealed that they were
auto racing sponsorship to determine how the much more likely to purchase non-premium
investment was performing against multiple brands and drank whiskey only on special
objectives and whether it was delivering ROI. occasions. In direct opposition to the sponsor
Chief among the brand’s goals: acquiring one brand’s positioning, they were more likely to drink
million new consumers. whiskey as a shot or mixed with soft drinks.
In the process of gathering the necessary data If the brand had the right data at the start,
to model the brand’s return, the full picture of it could have targeted its racing efforts to
the program emerged, revealing that if true build loyalty among the niche audience of its
accountability and smart analytics had been consumers to be found in the suites and skyboxes
incorporated from the start, the brand’s at race tracks instead of trying to convert the fans
objectives, execution and results would have in the grandstands.
been dramatically different.
MEDIA VALUE
AUDIENCE Broadcast reports showed that the brand
The brand made its initial decision to sponsor received significant exposure during telecasts
motorsports based on research that showed a of races. Translating impressions into advertising
high percentage of whiskey drinkers among equivalencies showed a 2:1 return vs. the
fans of the sport. sponsorship fee.
AUDIENCE MEDIA VALUE
INCOMPLETE HIGH % OF WHISKEY $1.6 MILLION IN AD
EVALUATION DRINKERS AMONG +16 /Ê 8*"-1, Ê

PROPERTY FANS VALUE PER BROADCAST
FAN CONSUMPTION PROFILE: BRAND AWARENESS ALREADY

UÊ "/Ê*, 1Ê , - HIGH AMONG VIEWERS
COMPLETE
UÊ -*
Ê"
-" -Ê" 9
MEASUREMENT LOW AWARENESS OF
UÊ -"/Ê",Ê8
RESPONSIBLE DRINKING
MESSAGE AMONG VIEWERS
102
However, analysis of survey research determined itself here: There was virtually no increase in
that little to no awareness was generated for the awareness of promotions or positive brand
responsible drinking campaign that was a focal associations among consumers of competitive
point of the brand’s messaging through signage brands. Additionally, research into activity among
and on-car exposure and a key goal of the two other whiskey brands that also were racing
sponsorship. The broadcasting of an already well- sponsors indicated better results for the
known brand name was not a primary objective. competitors.
SURVEY RESEARCH ROI

Sixteen waves of pre- and post-race research
were conducted in key markets. On the surface,
a number of outputs indicated positive
movement as a result of exposure to the
Finally, survey results showed an increase in intent
to purchase the brand. Additionally, the brand’s
overall sales increased during the term of the
sponsorship.
3
sponsorship, including higher awareness of retail
and on-premise activity and increased likelihood But when modeling was applied to the drivers
of associating the brand with key image attributes of business, it was clearly determined that
and benefits. the sponsorship was not among them. These
sophisticated analytics were able to show the
Applying historical insights from sponsorship client that it had acquired only 10,000 new
research that indicate a greater impact with customers—not one million—as a result of its
current consumers vs. non-consumers, IEG’s racing program.
analysis determined that this pattern repeated
SURVEY RESEARCH ROI ANALYSIS
PERCEIVED BRAND BENEFITS HIGHER INCREASED INTENT TO PURCHASE

AMONG FANS VS. NON-FANS AMONG SURVEY RESPONDENTS
INCREASED AWARENESS OF RETAIL OVERALL SALES INCREASE FOR

AND ON-PREMISE PROMOTIONS VS. BRAND
BRAND AVERAGE
NO INCREASE AMONG ONLY 10,000 NEW CONSUMERS

CONSUMERS OF OTHER WHISKEY VS. 1 MILLION GOAL
BRANDS
SPONSORSHIP ROI NOT AS HIGH
INCREASES NOT AS POSITIVE AS AS OTHER MARKETING EFFORTS
COMPETITOR BRANDS’ RESULTS
103
LINKING SPONSORSHIP
INVESTMENTS WITH
BUSINESS RESULTS
Marketing science applications such as the ROI This is not as daunting as it may sound. The
modeling used in the spirits brand case study are techniques and analytic approaches of
typically thought of in the context of traditional marketing science have become much more
media campaigns. But leading brands are putting accessible and are flexible to the amount of
these analytics to work for partnerships ranging data available. Much of the data needed to
from six-figure single-market deals to nine-figure develop meaningful models and analyses is
global platforms. routinely captured by companies in the course
of business.
More marketers will follow suit as the
accountability bar continues to rise. Nearly two- Brands that have already taken this step know
thirds of CMOs say that ROI—the direct impact how their sponsorship investments are
of expenditures on business results—will be performing and how to make them work better.
the primary measure of marketing effectiveness
by 2015.* In addition, their partnerships have gained a
place in the strategic planning process, alongside
Sponsorship—because it delivers true other elements of the marketing mix rather
engagement—is poised to claim a better seat than isolated and an afterthought. And, these
at the marketing table, but only if it can brands are fostering better partnerships with
demonstrate its contributions to the enterprise. rightsholders through a shared, fact-based
But measuring multifaceted engagement rather understanding of the value exchange and what
than one-dimensional reach and evaluating the is needed for both to succeed.
complex ecosystem of sponsorship—with its
ability to impact multiple audiences—requires Brands that don’t take this step will see
at least the same level of data, rigor and analysis sponsorship budgets reduced in favor of marketing
that is used to assess the other tools in the communications that can prove their value.
marketing arsenal.
*IBM Global CMO Study, October, 2011

6
Source: From “A Sponsorship Measurement Solution,” IEG October, 2011. Ukman,

L. and Krasts, M.; http://www.sponsorship.com/ieg/files/07/07903e35-98d1-4f1c-b318-
7524b3104222.pdf. Credit: IEG.
104
Table 3.2 Marketing research proposal outline
Background and History

Defining the Problem or Opportunity
Research Objectives
Research Methodology
a. Sample
b. Procedures
c. Topical areas
Time Estimate
a. Design of instrument
3
b. Data collection
c. Data entry
d. Data analysis
e. Final report preparation
Cost Estimate
Writing a marketing research proposal

To ensure agreement between the researcher and the client on the direction of
the research, a research proposal is developed. A research proposal is a written
blueprint that describes all the information necessary to conduct and control the study.
The elements of the research proposal include background for the study; research
objectives based on the need for the research, research methodology, timeframe, and
cost estimates. An outline for developing a research proposal is shown in Table 3.2.
Choosing the research design type

Once the researcher is certain that the problem is correctly defined, the research
design type is considered. The research design is the framework for a study
that collects and analyzes data. Although every study is unique and requires a
slightly different plan to reach the desired goals and objectives, three research
design types have emerged: exploratory, descriptive, and causal designs. The type
and nature of the design is highly dependent upon desired outcomes. Whatever
research design or designs are ultimately chosen, it is important to remember the
crucial principle in research is that the design of the research should stem from the
problem.2
Exploratory designs
Exploratory designs are useful when research problems are not well defined. For
instance, the general manager for the RailCats may say that ticket sales are down, but
he is unsure why. In this case, an exploratory research design would be appropriate
because there is no clear-cut direction for the research. The research is conducted to
generate insight into the problem or to gain a better understanding of the problem at
hand. For example, the researcher may recommend examining minor league baseball
attendance trends or conducting one-on-one interviews with team management to
determine their ideas about the lack of attendance. Because exploratory research
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design types address vague problems, a number of data collection techniques are
possible. These data collection techniques will be addressed during the next phase of
the research process.
Descriptive designs
If the research problem is more clearly defined, then a descriptive design is used. A
descriptive design type describes the characteristics of a targeted group by answering
questions such as who, what, where, when, and how often. The targeted group or
population of interest to the decision maker might be current season ticket holders,
people in the geographic region who have not attended any games, or a random group
of people in the United States.
The RailCats study used a descriptive research design. The targeted group in this
case was fans who may potentially attend RailCats home games. Characteristics
of the group of interest in the study included where the fans were coming from
(geographic area), how often they attended games, when they were most likely to
attend games (weekends, weekdays, day, or evening), and demographics (age, race,
and gender).
In addition to describing the characteristics of a targeted group, descriptive designs
show the extent to which two variables differ or correlate. For example, a researcher
may want to examine the relationship between game attendance and merchandising
sales. Using the RailCats example, researchers wanted to understand the relationship
between age of the fans and likelihood of attending games in the future. A descriptive
research design type would allow us to examine the relationship or correlation
between these two variables (age and future attendance).
If a positive relationship were found between age and likelihood of attending games
in the future, then the older you get, the more likely you would be to attend future
RailCats games. That is, as the age of the fan increases, the likelihood of going to
future games also increases (see Figure 3.2a). However, a negative relationship
means that as age increases, the likelihood of going to games decreases (see
Figure 3.2b). Knowing the shape of this relationship will help the RailCats marketers
make decisions on whom to target and how to develop the appropriate marketing mix
for this group. What do you think the relationship between age and attendance would
look like?
(a) Positive Relationship (b) Negative Relationship
Older Older
Age Age
Younger Younger
Unlikely Likely Unlikely Likely
Likelihood of Attending Likelihood of Attending
Figure 3.2 Descriptive research designs

106
Causal designs
Using a descriptive design, we can explore the relationship between two variables,
such as age and likelihood of attending games in the future. However, what this does
not tell us is that age causes the likelihood of attending to either increase or decrease.
This can only be determined through a causal design.
Causal designs are useful when problems are very clearly defined. More specifically,
causal designs examine whether changing the level of one variable causes the level
of another variable to change. This is more commonly called a cause-and-effect
relationship.
In an example of a causal design, the Southshore RailCats could conduct a study to
3
determine whether varying the level of advertising on a local radio station has any
effect on attendance. In this case, level of advertising is the independent variable and
attendance is the dependent variable. The dependent variable is the variable to be
explained, predicted, or measured (i.e., attendance). The independent variable is the
variable that can be manipulated or altered in some way (i.e., level of advertising or
perhaps whether to advertise at all).
To show cause-and-effect relationships, three criteria must be satisfied. The first
criterion for causality is that the occurrence of the causal event must precede or
be simultaneous to the effect it is producing. Using our example, advertising must
precede or occur at the same time as the increase in attendance to demonstrate a
cause-and-effect relationship.
The second criterion for causality involves the extent to which the cause and the
effect vary together. This is called concomitant variation. If advertising expenditures
are increased, then season ticket sales should also increase at the same rate.
Likewise, when advertising spending is decreased, season ticket sales should also
decline. Keep in mind, however, that concomitant variation does not prove a
cause-and-effect relationship, but it is a necessary condition for it.
A third criterion used to show causal relationships requires the elimination of other
causal factors. This means that another variable or variables may produce changes
in the dependent variable. This possibility is called a spurious association or spurious
correlation. In the dynamic sports marketing environment, it could be difficult
to isolate and eliminate all possible causal factors. For instance, an increase in
attendance may be due to the success of the team, ticket prices, and addition of other
promotions (e.g., bobblehead night) rather than increased advertising. A researcher
must attempt to eliminate these other potential factors, hold them constant, or adjust
the results to remove the effects of any other factors.
Identifying data collection techniques

As with the previous steps in the research process, decisions regarding data collection
techniques are very much a function of problem definition and research design type. If
the research problem is loosely defined and requires an exploratory research design,
then there are more alternatives for collecting that information. However, for well-
specified problems using a causal design, the choice of data collection techniques
decreases dramatically.
Data collection techniques can be broadly categorized as secondary or primary.
Secondary data refer to data that were collected earlier but are still related to the
research question. These data may come from within the sports organization or
107
from outside the organization. For example, useful internal secondary data might
include a history of team merchandise sales figures, event attendance figures, or fan
satisfaction studies that were conducted previously. External secondary data, or data
from outside the organization, may come from any number of the sources presented
later in this chapter.
Although a researcher should always try to use existing data before conducting his or
her own inquiries, it is sometimes impossible to find data relevant to the problem at
hand. In that case, research must turn to the other data collection alternative, primary
data. Primary data are information gathered for the specific research question at
hand.
Before turning our discussion to the various types of primary and secondary data, it
is important to note that both types of data are useful in understanding consumers.
For example, sports marketers from the Chicago Bears may want to look at trends in
merchandising sales for each NFL team before undertaking a study to determine why
their sales have decreased. In this case, secondary data are a useful supplement to
the primary data they would also need to collect.
Secondary data
As just mentioned, secondary data may be found within the sports marketing
organization (internal secondary data) or from outside sources (external secondary
data). External secondary data can be further divided into the following categories:3
X Government reports and documents
X Standardized sports marketing information studies
X Trade and industry associations
X Books, journals, and periodicals
Government reports and documents

As we discussed in Chapter 2, environmental scanning is an essential task for
monitoring the external contingencies. Government reports and documents are
excellent sources of data for sports marketers exploring the marketing environment.
Government sources of data can provide demographic, economic, social, and political
information at the national, state, and local levels. This information is generally
abundant and can be obtained at no cost. There are thousands of government sources
that are useful for environmental scanning. In fact, many are now published on the
Internet. Let us look at a few of the most useful sources of government data.
Bureau of the Census of the U.S. Department of Commerce (www.

census.gov)
The Bureau of the Census is one of the most comprehensive sources of secondary
data that are readily available via the Internet. Here are some of the census
documents that may be of interest: Census of Population, Census of Retail Trade,
Census of Service Industries, and Census of Manufacturing Industries.
The Statistical Abstract of the United States (www.census.gov/

compendia/statab/)
The Statistical Abstract of the United States, which is published each year by the
Bureau of the Census, is an excellent place to begin a search for secondary data. In
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3
Photo 3.1 The growing number of women’s sport participants is being monitored
through secondary marketing research.
Source: Elissa Unger
addition to more general statistical information on the population and economy, the
Statistical Abstract has a section entitled “Parks, Recreation and Travel.” Within this
section, statistics can be found on both participants and spectators.
Chambers of Commerce
Usually, Chambers of Commerce have multiple sources of demographic information
about a specific geographic area, including education, income, and businesses
(size and sales volume). This type of information can be helpful to sports marketers
conducting research on teams or events within a metropolitan area.
Small Business Administration (SBA) (www.sba.gov)

SBA-sponsored studies can be a valuable source for the environmental scan. The
sources include statistics, maps, national market analyses, national directories, library
references, and site selection.
Standardized sports marketing information studies

Although government sources of secondary data are plentiful, they are generally
more useful for looking at national or global trends in the marketing environment.
Standardized sports marketing information studies, such as the ESPN Sports Poll or
the Sports Business Research Network (www.sbrnet.com), focus more specifically on
sports consumers and markets. In fact, these sources of secondary data can provide
extremely specialized information on consumers of a specific sport (e.g., golf) at a
specific level of competition or interest (avid golfers). Table 3.3 shows the table of
contents for a standardized study available for better understanding the golf market in
North America.
109
Table 3.3 North American Golf Report table of contents
Executive summary
Golf supply
• Golf supply
• Golf supply by country
• Population per holes
Golf development
• Development by country
• Golf course openings
• Recent golf course openings
• New openings by state
Golf participation
• Participation by country
• Participation by state
• Number of golfers by state
Regional breakdown of supply, growth and participation in golf related goods
• Imports and exports by country
Source: http://www.golf-research-group.com/reports/report/22/content.html.
Table 3.4 Standardized sports marketing information studies
Team Marketing Report’s Sports Sponsor Factbook

Team Marketing Report’s Stadium Signage Report
Team Marketing Report’s Inside the Ownership of Professional Sports Team
IEG’s Sponsorship Report
IEG’s Intelligence Reports
Sports & Media Challenges Sports Sponsorship Survey
National Sporting Goods Manufacturers’ Sports Media Index
National Sporting Goods Manufacturers’ Country Market Research Studies
American Sports Data’s American Sport Analysis Reports
National Golf Foundation’s Golf Business Publications
Gallup Poll’s Sports Participation Trends
Simmons Market Research Bureau’s Study of Media and Market. Sports and Leisure
ESPN Chilton Sports Poll
Yankelovich Monitor Sports Enthusiast Profile
These studies are called standardized because the procedures used to collect the
information and the types of data collected are uniform. Once the information is
collected, it is then sold to organizations that may find the data useful. Although the
data collected are more specific than other sources of secondary data, the data may
still not directly address the research question. Table 3.4 shows a sampling of the
standardized sources of secondary data that may be useful to sports marketers.
Trade and industry associations

There are hundreds of associations that can be helpful in the quest for information.
Sports associations range from the very broad in focus (e.g., NCAA) to the more
110
specific (e.g., National Skating Suppliers Association). For example, the Women’s
Sport Foundation (www.womenssportsfoundation.org), established in 1974 by Billie
Jean King, works to improve public understanding of the benefits of sports and
fitness for females of all ages. To support this educational objective, the foundation
has a number of publications and research reports that serve as excellent sources of
secondary data. In fact, the Women’s Sport Foundation now has a cyberlibrary that
contains 40 plus years of information gathered on topics and issues such as business,
coaching, ethics, gender equity, history, homophobia, leadership and employment,
media, medical, participation, sexual harassment, special needs, and training and
fitness. Here is just a small sampling of trade and sport associations:
American Marketing Association
3
European Association for Sport Management
Institute of Sport and Recreation Management
National Association of Sports Commissions
National Collegiate Athletic Association
National Sporting Goods Association
North American Society for Sport Management
Sport Management Association of Australia and New Zealand
Sport Marketing Association
Sports & Fitness Industry Association (formerly, SGMA)
Books and journals

A comprehensive list of journals related to sport follows the books listed here.
Books
IEG’s Complete Guide to Sponsorship
Sport Marketing (Mullins, Hardy, & Sutton)
Sport Marketing: A Strategic Perspective (Shank & Lyberger)
Sport Marketing (Pitts and Stotlar)
Sport Marketing (Fullerton)
Sport Marketing: Canadian (O’Reilly)
Sport & Entertainment Marketing (Kaser)
Team Marketing Report’s Newsletter
Cases in Sport Marketing (Donovan)
Cases in Sport Marketing (McDonald and Milne)
Case Studies in Sport Marketing (Pitts)
Developing Successful Sports Marketing Plans (Stotlar)
Sports Marketing: Global Marketing Perspectives (Schlossberg)
Sports Marketing: It’s Not Just a Game Anymore (Schaaf)
Sports Marketing: Famous People Sell Famous Products (Pemberton)
Sports Marketing: The Money Side of Sports (Pemberton)
Sports Marketing/Team Concept (Leonardi)
The Elusive Fan: Reinventing Sports in a Crowded Marketplace (Rein, Kotler, and
Shields)
Marketing of Sport (Chadwick and Beech)
Team Sports Marketing (Wakefield)
Keeping Score: An Inside Look at Sports Marketing (Carter)
Ultimate Guide to Sport Marketing (Graham, Neirotti, and Goldblatt)
Sports Marketing: Managing the Exchange Process (Milne and McDonald)
111
Academic journals of interest to sports marketers
European Sport Management Quarterly
International Journal of Sport Management, Recreation and Tourism
International Journal of Sports Marketing and Sponsorship
Journal of Advertising
Journal of Services Marketing
Journal of Sport & Tourism
Journal of Sport and Social Issues
Journal of Sport Behavior
Journal of Sport Management
Journal of Sport Tourism
Sports Business Journal
Sport Management Review
Sport Marketing Quarterly
The Journal of Intercollegiate Athletics
The Journal of Sport
Primary data
Data collected specifically to answer your research questions are called primary data.
There are a wide variety of primary data collection techniques. Again, remember that
your method of collecting primary data depends on your earlier choice of research
design. Let us look briefly at some of the primary data collection methods and their
pros and cons.
Depth interviews
Depth interviews are a popular data collection technique for exploratory research.
Sometimes called “one-on-ones,” depth interviews are usually conducted as highly
unstructured conversations that last about an hour. Unstructured means that the
researcher has a list of topics that need to be addressed during the interview, but the
conversation can take its natural course. As the respondent begins to respond, new
questions may then emerge that require further discussion.
Web 3.1 Sport Business Research is an excellent source of primary and secondary
data.
Source: www.SBRNET.com
112
The primary advantage of depth interviews is that they gather detailed information on
the research question. Researchers may also prefer depth interviews to other primary
methods when it is difficult to coordinate any interface with the target population.
Just think of the difficulty in trying to organize research using professional athletes
as the target population. For instance, a sports marketing researcher may want to
determine what characteristics a successful athlete-endorser requires. To address
this research question, depth interviews may be conducted with professional athletes
who have been successful endorsers, athletes who have never endorsed a product,
brand managers of products being endorsed, or any other individuals who may provide
insight into the research question. The responses given in these interviews then
would be used to determine the characteristics of a successful endorser. 3
Depth interviews may also be appropriate when studying complex decision making.
For example, researchers may want to find out how others influence your decision to
attend a sporting event. The information gathered in the depth interviews at the initial
phase of this research may then be used in the development of a survey or some
other type of primary research. In yet another example, depth interviews were used in
a study to understand the decision-making process used by corporate sponsors.4
Focus groups
Another popular exploratory research tool is the focus group. A focus group is
a moderately structured discussion session held with eight to ten people. The
discussion focuses on a series of predetermined topics and is led by an objective,
unbiased moderator. Much like depth interviews, focus groups are a qualitative
research tool used to gain a better understanding of the research problem at hand.
For instance, focus groups may be useful in establishing a team name or logo design,
deciding what food to offer for sale in the concession areas, determining how best to
reposition an existing sporting goods retailer or learning what kinds of things would
Photo 3.2 Focus groups

113
attract children to a collegiate sporting event. Let us look at two examples of sports
organizations that have used focus groups.
In 2010, a project to determine if public funding was supported by taxpayers
for a new Minnesota Vikings stadium was commissioned by the Metropolitan
Sports Facilities Commission, the agency that owns and operates the 28-year-
old Metrodome. The commission utilized five focus groups conducted in various
cities; each group was between nine and eleven participants who were identified
as potential November voters, not big sports fans, and not following the Vikings
stadium debate. Results show that participants would approve a variety of funding
mechanisms including openness to a statewide sales tax.5 In another example, as
part of their off-season efforts to improve their team and their public image, the
Mets have cut single-game ticket prices by an average of 14 percent, an attempt to
increase revenues and coax spectators back to Citi Field. The team’s season-ticket,
ticket-plan, and group-ticket holders will receive an additional 10 percent discount.
David Howard, the Mets executive vice president of business operations, said after
conducting in-season market research and holding focus groups with fans, the Mets
decided to make these price adjustments. “Largely what we’re doing here is a result
from the feedback we’ve received from our customers,” he said. “We feel we are
the people’s team.”6
Conducting focus groups, like those in the Vikings and Mets examples, requires
careful planning. Table 3.5 provides questions and answers that must be considered
when planning and implementing focus groups.
Projective techniques
Another source of data collection is through the use of projective techniques.
Projective techniques refer to any of a variety of methods that allow respondents
to project their feelings, beliefs, or motivations onto a relatively neutral stimulus.
Projective techniques were developed by psychologists to uncover motivations or
to understand personality.7 The most famous projective technique is the Rorschach
test, which asks respondents to assign meaning to a neutral inkblot. Although the
Rorschach may not have value for sports marketing researchers, other projective
techniques are useful. For instance, sentence completion, word association, picture
association, and cartoon tests could be employed as data collection techniques.
Figure 3.3 demonstrates the use of sentence completion to gain insight into consumer
attitudes toward Nike. The responses to these sentences could be analyzed to
determine consumer perceptions of the target market for Nike (question 1), the brand
image of Nike (question 2), and product usage (question 3).
Surveys
Data collection techniques are more narrowly defined for descriptive research design
types. As stated earlier, a descriptive study describes who, where, how much, how
often, and why people are engaging in certain consumption behaviors. To capture this
information, the researcher would choose to conduct a survey. Surveys allow sports
marketing researchers to collect primary data such as awareness, attitudes, behaviors,
demographics, lifestyle, and other variables of interest. For example, the Cleveland
Indians handed out roughly 30,000 surveys over 14 games to understand fans’
perceptions of the team’s on-the-field winning prospects, the quality of the team’s
management and commitment to winning, and pricing issues.8
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Table 3.5 Planning and implementing focus groups
Q.How many people should be in focus group?

A. Traditionally, focus groups are composed of 8 to 10 people. However, there is a current trend
toward having minigroups of 5 to 6 people. Minigroups are easier to recruit and allow for better
and more interaction among focus group participants.
Q. How many people should I recruit, if I want 8 people in my group?
A. The general rule of thumb is to recruit 25 percent more people than the number needed.
For example, if you are planning on holding minigroups with 6 people, you should recruit 8.
Unfortunately, some respondents will not show up for the group, even if there is an incentive for
3
participation.
Q. What is a good incentive for participants?
A. Naturally, a good incentive depends largely on the type of individual you want to attract to your
group. For example, if your group wants to target runners who might be participating in a local
10K race, $3S to $50 may be the norm, including dinner or light snacks. However, if your group
requires lawyers to discuss the impact of Title IX on the NCAA, an incentive of $75 to $100 may
be more appropriate. In addition to or instead of cash, noncash incentives could also serve. For
example, free tickets or merchandise may work better than cash for some groups.
Q. Where should the focus group be conducted?
A. The best place to conduct focus groups is at a marketing research company that has up-to-
date focus group facilities. The facility is usually equipped with a one-way mirror, videotape,
microphones connected to an audio system, and an observation room for clients. In addition,
more modern facilities have viewing rooms that allow the client to interact with the moderator via
transmitter while the group is being conducted.
Q. How should I choose a moderator?
A. There is no rule of thumb, but research has identified a set of characteristics that seem to be
consistent among good moderators. These characteristics include the following: quick learner,
friendly leader. knowledgeable but not all-knowing, excellent memory, good listener, a facilitator –
not a performer, flexible, empathic, a “big-picture” thinker, and a good writer. In addition, a good
moderator should have a high degree of sports industry knowledge or product knowledge.7
Q. How many groups should be conducted?
A. The number of groups interviewed depends on the number of different characteristics that
are being examined in the research. For example, Notre Dame may want to determine whether
regional preferences exist for different types of merchandise. If so, two groups may be conducted
in the North, two groups in the South, and SO on. Using the previous example. If lawyers: were
the participants in a focus group, two or three total groups may suffice. Any more than this and
the information would become redundant and the groups would become inefficient.
Q. What about the composition of the group?
A. A general rule of thumb is that focus group participants should be homogenous. In other
words. people within the group should be as similar as possible. We would not want satisfied,
loyal fans in the same group as dissatisfied fans. Similarly, we would not want a group to be
composed of both upper-level managers and the employees that report to them. In the latter case,
lower-level employees may be reluctant to voice their true feelings.
Sentence Completion Test
1. People who wear Nike footwear are .

2. When I think of Nike, I .
3. I would be most likely to buy Nike shoes for .
Figure 3.3 Sentence completion test
115
An additional illustration of survey research can be found in the following NASCAR
study. In the article Taylor performed market research to demonstrate how team and
brands can improve how they engage fans in digital and social media outlets.9
DRIVERS SHOULD TAKE A SPIN ONLINE, STUDY SHOWS

NASCAR fans consume more and
more information on the sport
from social and digital media, but
a new study by marketing and
communications firm Taylor shows
teams and brands can improve how
they engage the fans through those
outlets.
Avid NASCAR fans over the last
year reported they were twice as likely
to have engaged and interacted with
athletes of other sports through social
and digital media than they were with
NASCAR drivers. The sport’s teams
and sponsors historically have had
drivers make appearances at retail
outlets in race markets but are only
beginning to make drivers available
online, as Roush Fenway Racing did
when it hosted a Google+ Hangout
with Matt Kenseth, Greg Biffle, Ricky
Stenhouse Jr. and Trevor Bayne
before the Daytona 500.
“We’re still doing a lot of Kroger
retail visits,” said Ryan Mucatel, NASCAR fans, was fielded for Taylor
Taylor’s managing partner. “How by the global research company
many brands are truly engaging with Toluna. It is the fifth year the firm
an active fan base online the way has done the study. Taylor counts
they could be?” NASCAR as a client and oversaw
Avid NASCAR fans continue to several studies for the sanctioning
increase their consumption of social body two years ago in such areas as
and digital media. More than half communications and the race-day
said they visit social media sites experience.
regularly for NASCAR content and Taylor’s study didn’t identify the
78 percent of 18- to 34-year-olds said overall size of the NASCAR fan base
they turn to outlets such as Facebook or the percentage of casual or avid
and Twitter for NASCAR information. fans. It concentrated on avid fans and
Most of them use those outlets to their consumption patterns.
share NASCAR information with Avid NASCAR fans remain loyal to
others, too. sponsors, saying they are more likely
The study, which is based on a to buy the products of a brand that
survey of 1,500 self-described avid sponsors their favorite driver.
The survey gave avid fans a list of
116
25 companies not in NASCAR and fans said they would recommend the
asked them which sponsors they sport to others. That number was up
would like to see get involved in from 71 percent a year earlier.
the sport. The four most common Half of avid fans said they are
answers were Nike, Google, Amazon “more” or “much more” interested
and Apple. NASCAR and its teams in the sport than they were a year
have pushed to sign technology ago, and 61 percent of 18- to 34-year-
sponsors in recent years but had olds said they are more interested
limited success.
In a question on how avid fans
choose their favorite driver, Taylor
in NASCAR than they were in
2011. Among fans surveyed who
are relatively new to the sport, the
3
executives were surprised to see that number that said they are “much
41 percent of NASCAR fans in the more interested” in NASCAR jumped
18- to 34-year-old demographic said to 65 percent.
they pick their driver based on who
his sponsor is, while only 27 percent Source: Tripp Mickle. Rightsholder:
of all avids said they chose a driver Sports Business Journal.http://www.
that way. sportsbusinessdaily.com/Journal/
Issues/2012/11/05/Research-and-Ratings/
Approximately 78 percent of avid
NASCAR-study.aspx.
Surveys that are considered “snapshots” and describe the characteristics of a sample
at one point in time are called cross-sectional studies. For example, if a high school
athletics program wanted to measure fan satisfaction with its half-time promotions at
a basketball game, a cross-sectional design would be used. However, if a researcher
wanted to investigate an issue and examine responses over a longer period of
time, a longitudinal study would be used. In this case, fan satisfaction would be
measured, improvements would be made to the half-time promotions based on
survey responses, and then fan satisfaction would be measured again at a later time.
Although longitudinal studies are generally considered more effective, they are not
widely used due to time and cost constraints.
Experiments
For well-defined problems, causal research is appropriate. As stated earlier, cause-and-
effect relationships are difficult to confirm. Experimentation is research in which one
or more variables are manipulated while others are held constant; the results are then
measured. The variables being manipulated are called independent variables, whereas
those being measured are called dependent variables.
An experiment is designed to assess causality and can be conducted in either a
laboratory or a field setting. A laboratory, or artificial setting, offers the researcher
greater degrees of control in the study. For example, Major League Baseball may want
to test the design of a new logo for licensing purposes. Targeted groups could be
asked to evaluate the overall appeal of the logo while viewing it on a computer. The
researchers could then easily manipulate the color and size of the logo (independent
variables) while measuring the appeal to fans (dependent variable). All other variation
in the design would be eliminated, which offers a high degree of control.
Unfortunately, a trade-off must be made between experimental control and the
researchers’ ability to apply the results to the “real purchase situation.” In other
117
words, what we find in the lab might not be what we find in the store. Field studies,
therefore, are conducted to maximize the generalizability of the findings to real
shopping experiences. For example, MLB could test the different colors and sizes of
logos by offering them in three different cities of similar demographic composition.
Then, MLB could evaluate the consumer response to variations in the product by
measuring sales. This common approach to experimentation used by sports marketers
is called test marketing.
Test marketing is traditionally defined as introducing a new product or service in
one or more limited geographic areas. Through test marketing, sports marketers can
collect many valuable pieces of information related to sales, competitive reaction, and
market share. Information regarding the characteristics of those purchasing the new
products or services could also be obtained. Over a two-year span, ESPN completed
market testing of their new 3D channel, including the showing of a USC–Ohio State
college football game in select theaters. With a favorable response, ESPN launched
ESPN 3D in summer 2010.10 ESPN 3D produced hundreds of events, including NCAA
college football, college basketball, NBA Playoffs and Finals, Grand Slam tennis
tournaments, Summer and Winter X games, the Little League World Series, MLS and
international soccer, boxing, and more. However, ESPN will shut down its 3D network
by the end of the 2013 year. ESPN 3D has struggled to gain traction with viewers
as the adoption of 3D television sets by U.S. consumers has yet to meet the sky-
high expectations of set manufacturers since being launched.11 Another test market
recently occurred in Columbus, Ohio, for the National Lacrosse League. Columbus,
known as a good test market city because of its demographic composition, featured a
star-studded demonstration match. If the game drew more than 5,000 spectators, the
league was likely to consider Columbus as a strong possibility for a new franchise.12
Columbus did not enter the league, but the NLL is now 10 teams strong (www.nll.
com).
Although test marketer information is invaluable to a sports marketer wanting
to roll out a new product, it is not without its disadvantages. One of the primary
disadvantages of test marketing is cost and time. Products must be produced,
promotions or ads developed, and distribution channels secured – all of which cost
money. In addition, the results of the test market must be monitored and evaluated
at an additional cost. Another problem related to test marketing is associated with
competitive activity. Often, competitors will offer consumers unusually high discounts
on their products or services to skew the results of a test market. In addition,
competitors may be able to quickly produce a “me-too” imitation product or service by
the time the test market is ready for a national rollout.
The problems of cost, time, and competitive reaction may be alleviated by means of a
more nontraditional test market approach called a simulated test market. Typically,
respondents in a simulated test market participate in a series of activities, such as (1)
receiving exposure to a new product or service concept, (2) having the opportunity to
purchase the product or service in a laboratory environment, (3) assessing attitudes
toward the new product or service after trial, and (4) assessing repeat purchase
behavior.
Designing data collection instruments

Once the data collection method is chosen, the next step in the marketing research
process is designing the data collection instrument. Data collection instruments are
118
Specify information requirements
Decide method of administration
Determine content of questions
Determine form of response for questions
Determine exact wording of questions

3
Design order of questions
Design physical charactersistics of questionnaire
Pretest questionnaire
Modify according to pretest results
Figure 3.4 Designing a questionnaire

Source: Churchill. IM/TM – Basic Markrting Research, 3/E, 3E. © 1996 South-Western,
a part of Cengage Learning, Inc.
required for nearly all types of data collection methods. Guides are necessary for
depth interviews and focus groups. Data collection forms are needed for projective
techniques. Even experiments require data collection instruments.
One of the most widely used data collection instruments in sports marketing is the
questionnaire or survey. All forms of survey research require the construction of a
questionnaire. The process of designing a questionnaire is shown in Figure 3.4.
Specify information requirements

As the first step of questionnaire design, the information requirements must
be specified. In other words, the researcher asks what information needs to be
gathered via the questionnaire. This should be addressed in the initial step of the
research process if the problem is carefully defined. Remember, in the first step of
the marketing research process, research objectives are developed based on the
specified information requirements. The research objectives are a useful starting point
in questionnaire design because they indicate what broad topic will be addressed in
the study.
Decide method of administration

The method of administration is the next consideration in questionnaire design.
The most common methods of administration are via mail, phone, e-mail, Web
sites, or personal interview. Each method has its own unique advantages and
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Table 3.6 Comparison of methods of administration
Issues Methods of administration

Mail Telephone Stadium and event Internet
interviews
Costs Inexpensive Moderately Most expensive Inexpensive
expensive because of time
Ability to use Little, because Same Greatest because Little, because
complex survey self-administered interviewer is present self-administered
Opportunity for None Same Greatest because None
interviewer bias interviewer is present
Response rate Lowest Moderate Greatest Low
Speed of data Slowest High Medium to high High
collection
What is your New Year’s Resolution?
a. Lose Weight
b. Spend More Time with Family & Friends
c. Quit Smoking
d. Get Out of Debt
e. Other
VOTE
Figure 3.5 New Year’s resolution survey
disadvantages that must be considered (see Table 3.6). For example, if a short
questionnaire is designed to measure fan attitudes toward the new promotion,
then a phone survey may be appropriate. However, if the research is being
conducted to determine preference for a new logo, then mail or personal
interviews would be necessary.
Determine content of questions

The content of individual questions is largely governed by the method of
administration. However, several other factors must be kept in mind. First, does the
question address at least one research objective? Second, are several questions
necessary to answer an objective? Contrary to popular belief, more is not always
better. Third, does the respondent have the information necessary to answer the
question? For example, respondents may not be able to answer questions regarding
personal seat licenses (PSLs) if they do not have a full understanding or description of
what is meant by a PSL. Finally, will the respondent answer the question?
Sometimes respondents possess the necessary information, but they elect not
to respond. For instance, questionnaires may sometimes ask sensitive questions
(e.g., about income levels) that respondents will not answer.
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Determine form of response

After deciding on the content of the questions, the form of response should be
considered. The form of the response is dependent on the degree of structure in the
question. Unstructured questionnaires use a high number of open-ended questions.
These types of questions allow respondents to provide their own responses rather
than having to choose from a set of response categories provided by the researcher.
The following are examples of open-ended questions:
X How do you feel about personal seat licenses?
X How many years have you been a season ticket holder?
X How will the personal seat license affect your attitude toward the team? 3
Determine exact wording of questions
One of the most rigorous aspects of questionnaire design is deciding on the exact
wording of questions. When constructing questions, the following pitfalls should be
avoided:
X Questions should not be too lengthy – Lengthy, run-on questions are difficult to
interpret and have a higher likelihood of being skipped by the respondent.
X Questions should not be ambiguous – Clarity is the key to good survey design.
For instance, “Do you like sports?” may be interpreted in two very different ways.
One respondent may answer based on participation, whereas another may answer
from a spectator’s viewpoint. In addition, there may be ambiguity in how the
respondent defines sports. Some respondents would call billiards a sport, whereas
others may define it as a game.
X Questions should not be double barreled or contain two questions in one –
For example, “Do you enjoy collecting and selling baseball cards?” represents a
double-barreled question. This should be divided into two separate questions: “Do
you enjoy collecting baseball cards?” and “Do you enjoy selling baseball cards?”
X Questions should not lack specificity – In other words, clearly define the
questions. “Do you watch sports on a regular basis?” is a poorly written question
in that the respondent does not know the researcher’s definition of regular. Does
the researcher mean once per week or once per day?
X Questions should not be technical in nature – Avoid asking respondents a
question that will be difficult for them to answer. For instance, “What type of
swing weight do you prefer in your driver?” may be too technical for the average
golfer to answer in a meaningful fashion.
Determine question sequence

Now that the question wording has been determined, the researcher must determine
the proper sequence of the questions. First, a good questionnaire starts with broad,
interesting questions that hook the respondents and capture their attention. Similarly,
questions that are more narrow in focus, such as demographic information, should
appear at the end of the questionnaire. Second, questions that focus on similar topical
areas should be grouped together. For example, a fan satisfaction questionnaire
may include sections on satisfaction with concessions, stadium personnel, or game
promotions.
Finally, proper question sequencing must consider branching questions and skip
patterns. Branching questions direct respondents to questions based on answers
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to previous questions. For example, the first question on a questionnaire may be,
“Have you ever been to a RailCats game?” If the respondents answer “yes,” they
might continue with a series of questions concerning customer satisfaction. If the
respondents answer “no,” then they might be asked to skip forward to a series
of questions regarding media preferences. Because branching questions and skip
patterns are sometimes confusing to respondents, these types of questions should be
avoided if at all possible.
Design physical characteristics of questionnaire

One of the final steps in the questionnaire development process is to consider
carefully the physical appearance of the questionnaire. If the questionnaire is cluttered
and looks unprofessional, respondents will be less likely to cooperate and complete
the instrument. Other questionnaire design issues include the following:
X Questionnaire should look simple and easy to fill out.
X Questionnaire should have subheadings for the various sections.
X Questionnaire should provide simple and easy-to-understand instructions.
X Questionnaire should leave sufficient room to answer open-ended questions.
Pretest
After the questionnaire has been finalized and approved by the client, the next step
in the questionnaire design process is to pretest the instrument. A pretest can be
thought of as a “trial run” for the questionnaire to determine if there are any problems
in interpreting the questions. In addition to detecting problems in interpreting
questions, the pretest may uncover problems with the way the questions are
sequenced.
An initial pretest should be conducted with both the researcher and respondent
present. By conducting the pretest through a personal interview, the researcher can
discuss any design flaws or points of confusion with the respondent. Next, the pretest
should be conducted using the planned method of administration. In other words, if
the survey is being conducted over the phone, the pretest should be conducted over
the phone.
The number and nature of the respondents should also be considered when
conducting a pretest. The sample for the pretest should mirror the target population
for the study, although it may be useful to have other experienced researchers
examine the questionnaire before full-scale data collection takes place. The number of
people to pretest depends on time and cost considerations. Although pretests slow
down the research process, they are invaluable in discovering problems that would
otherwise make the data collected meaningless.
Designing the sample

After the data collection instrument has been designed, the research process turns
to selecting an appropriate sample. A sample is a subset of the population of interest
from which data are gathered that will estimate some characteristic of the population.
Securing a quality sample for sports marketing research is critical. Researchers rarely
have the time or money to communicate with everyone in the population of interest.
As such, developing a sample that is representative of this larger group of consumers
is required.
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To design an effective and efficient sample, a variety of sampling techniques
are available. Sampling techniques are commonly divided into two categories:
nonprobability sampling and probability sampling. The primary characteristic of
nonprobability sampling techniques is that the sample units are chosen subjectively
by the researcher. As such, there is no way of ensuring whether the sample is
representative of the population of interest. Probability sampling techniques are
objective procedures in which sample units have a known and nonzero chance
of being selected for the study. Generally, probability sampling techniques are
considered stronger because the accuracy of the sample results can be estimated
with respect to the population.
Nonprobability sampling
3
The three nonprobability sampling techniques commonly used are convenience,
judgment, and quota sampling. Convenience sampling techniques are also
called accidental sampling because the sample units are chosen based on the
“convenience” of the researcher. For example, a research project could be conducted
to assess fans’ attitudes toward high school soccer in a large metropolitan area.
Questionnaires could be handed out to fans attending Friday night games at
three different high schools. These individuals are easy to reach but may not be
representative of the population of interest (i.e., high school fans in the area).
Other researchers may approach the same problem with a different data collection
method. For example, three focus groups might be conducted to gain a better
understanding of the fans’ attitudes toward high school soccer. Using this scenario,
long-time, loyal soccer fans might be chosen as participants in the three focus
groups. These participants represent a judgment sample because they are chosen
subjectively and, based on the judgment of the researcher, they best serve the
purpose of the study.
A quota sampling technique may also be used to address the research problem. In
quota sampling, units are chosen on the basis of some control characteristic or
characteristics of interest to the researcher. For instance, control characteristics such
as gender and year in school may be appropriate for the soccer study. In this case,
the researcher may believe there may be important distinctions between male and
female fans and between freshmen and seniors. The sample would then be chosen to
capture the desired number of consumers based on these characteristics. Often, the
numbers are chosen so that the percentage of each sample subgroup (e.g., females
and juniors) reflects the population percentages.
Probability sampling
As stated earlier, the stronger sampling techniques are known as probability sampling.
In probability sampling, the sample is chosen from a list of elements called a sampling
frame. For example, if students at a high school define the population of interest, the
sampling frame might be the student directory. The sample would then be chosen
objectively from this list of elements.
Although there are many types, a simple random sample is the most widely used
probability sampling technique. Using this technique, every unit in the sampling frame
has a known and equal chance of being chosen for the sample. For example, Harris
Interactive (http://www.harrisinteractive.com/) e-mails a random and representative
sample of the U.S. population drawn from a database of more than 6.5 million
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respondents who have agreed to cooperate. Respondents who agree to participate
are directed to the appropriate URL for each survey. The Internet-based methodology
allows Harris to randomly sample a minimum of 10,000 people each month on
various topics of interest to decision makers in the sports and entertainment industry.
A probability sampling technique, such as simple random sampling, allows the
researcher to calculate the degree of sampling error, so the researcher knows how
precisely the sample reflects the true population.
Sample size
Another question that must be addressed when choosing a sample is the number
of units to include in it, or the sample size. Practically speaking, sample sizes are
determined largely on the basis of time and money. The more precise and confident
the researchers want to be in their findings, the greater the necessary sample size.
Another important determinant in sample size is the homogeneity of the population
of interest. In other words, how different or similar are the respondents? To illustrate
the effect of homogeneity on sample size, suppose the RailCats are interested in
determining the average income of their season ticket holders. If the population of
interest includes all the season ticket holders and each person has an income of
$50,000, then how many people would we need to have a representative sample? The
answer, because of this totally homogeneous population, is one. Any one person that
would be in our sample would give us the true income of RailCats’ season ticket holders.
As you can see from this brief discussion, sample size determination is a complex
process based on confidence, precision, and the nature of the population of interest,
time, and money. Larger samples tend to be more accurate than smaller ones, but
researchers must treat every research project as a unique case that has an optimal
sample size based on the purpose of the study.
Data analysis
After the data are collected from the population of interest, data analysis takes place.
Before any analytical work occurs, the data must be carefully scrutinized to ensure
its quality. Researchers call this the editing process. During this process, the data are
examined for impossible responses, missing responses, or any other abnormalities
that would render the data useless.
Once the quality of the data is ensured, coding begins. Coding refers to assigning
numerical values or codes to represent a specific response to a specific question.
Consider the following question:
How likely are you to attend a RailCats’ game in 20XX?
1. Extremely unlikely
2. Unlikely
3. Neither unlikely nor likely
4. Likely
5. Extremely likely
The response of extremely unlikely is assigned a code of 1, unlikely a code of 2, and
so on. Each question in the survey must be coded to facilitate data analysis.
After editing and coding are completed, you are ready to begin analyzing the data.
Although there are many sophisticated statistical techniques (and software programs)
to choose from to analyze the data, researchers usually like to start by “looking at the
124
big picture.” In other words, researchers want to describe and summarize the data
before they begin to look for more complex relationships between questions.
Often, the first step in data analysis is to examine two of the most basic informational
components of the data – central tendency and dispersion. Measures of central
tendency (also known as the mean, median, and mode) tell us about the typical
response, whereas measures of dispersion (range, variance, and standard deviation)
refer to the similarity of responses to any given question.
To give us a good feel for the typical responses and variation in responses, frequency
distributions are often constructed. A frequency distribution, such as the one shown in
Table 3.7, provides the distribution of data pertaining to categories of a single variable.
In other words, frequency distributions or one-way tables show us the number (or
3
frequency) of cases from the entire sample that fall into each response category.
Normally, these frequencies or counts are also converted into percentages.
After one-way tables or frequency distributions are constructed, the next step in data
analysis involves examining relationships between two variables. A cross-tabulation
allows us to look at the responses to one question in relation to the responses to another
question. Two-way tables provide a preliminary look at the association between two
questions. For example, the two-way table shown in Table 3.8 explores the relationship
between the likelihood of going to RailCats’ games and gender. Upon examination, the
two-way table clearly shows that females are less likely to attend RailCats’ games in the
future than males. Implications of this finding may include the need to conduct future
research to better understand why females are less likely to attend RailCats’ games than
males and the design of a marketing mix that appeals to females.
Table 3.7 Frequency distribution or one-way table

Respondents
Number Percent
1. Extremely unlikely 88 9.1
2. Unlikely 60 6.2
3. Neither unlikely or likely 336 34.6
4. Likely 201 20.7
5. Extremely likely 169 17.4
NA 118 12.0
Total 972 100.00
Table 3.8 Two-way table of cross-tabulation

Gender
Male Female
1. Extremely unlikely 35 53
2. Unlikely 28 32
3. Neither unlikely or likely 178 158
4. Likely 111 90
5. Extremely likely 101 68
NA 56 62
Total 509 463
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Preparing a final report

The last step in the marketing research process is preparing a final report. Typically,
the report is intended for top management of the sports organization, who can either
put the research findings into action or shelve the project. Unfortunately, the greatest
research project in the world will be viewed as a failure if the results are not clearly
communicated to the target audience.
How can you prepare a final report that will assist in making decisions throughout
the strategic marketing process? Here are some simple guidelines for preparing an
actionable report:
X Know your audience – Before preparing the oral or written report, determine
your audience. Typically, the users of research will be upper management, who do
not possess a great deal of statistical knowledge or marketing research expertise.
Therefore, it is important to construct the report so it is easily understood by the
audience who will use the report, not by other researchers. One of the greatest
challenges in preparing a research report is presenting technical information in a
way that is easily understood by all users.
X Be thorough, not overwhelming – By the time they are completed, some written
research reports resemble volumes of the Encyclopedia Britannica. Likewise,
oral presentations can drag on for so long that any meaningful information is
lost. Researchers should be sensitive to the amount of information they convey
in an oral research report. Oral presentations should show only the most critical
findings, rather than every small detail. Generally, written reports should include
a brief description of the background and objectives of the study, how the study
was conducted (methodology), key findings, and marketing recommendations.
Voluminous tables should be located in an appendix.
X Carefully interpret the findings – The results of the study and how it was
conducted are important, but nothing is as critical as drawing conclusions from
the data. Managers who use the research findings often have limited time and
no inclination to carefully analyze and interpret the findings. In addition, managers
are not only interested in the findings alone, but they also want to know what
marketing actions can be taken based on the findings. Be sure you do not neglect
the implications of the research when preparing both oral and written reports.
CASE STUDY
Survey shows split on racial opportunity
Twenty-five years after Martin However, there remains a
Luther King Jr.’s life was first strong racial divide among those
honored with a national holiday and fans about the extent to which
nearly 50 years after the civil rights African-Americans enjoy equal
leader’s “I Have a Dream” speech, opportunities in sports, as well
black and white sports fans alike as about the degrees of prejudice
view the sports world as far more and discrimination that continue to
racially progressive and unifying pervade the sports landscape.
than the rest of society, according to Eighty-two percent of those
a recent online survey conducted for surveyed believe that sports
ESPN. provide equal opportunities for
126
African-Americans, compared with 55 blacks have fewer opportunities

percent who think the same is true in to be owners, and 44 percent
all other sectors of society. Of those believe that blacks have the same
surveyed, 73 percent give a very high opportunities.
rating to the sports world in terms The online survey of 1,822
of equal opportunities, in contrast to sports fans (1,213 whites, 435
only 19 percent who give a very high African-Americans) was conducted
rating to the corporate world. Dec. 15 – Dec. 21 by Hart Research
As well, 72 percent believe sports
do more to unite people across
racial lines, while only 6 percent
Associates.
An ESPN survey of coaching
salaries by race indicates disparities
3
think sports do more to divide race remain. At the start of the 2010
relations. NFL season, six out of 32 coaches
However, African-Americans were black, and the average annual
surveyed are less convinced than salary for those coaches was $3.1
whites about the extent of the million, compared with $4.1 million
progress in the sports world. Only 36 for white coaches. Of the 120 major
percent of blacks – compared with 65 Division I college football programs,
percent of whites – give sports high there were only 14 black coaches
marks on the question of whether (and one Hispanic coach) at the start
African-Americans have equal of this past season; the average
opportunities to succeed. annual salary for those African-
Most African-Americans surveyed American coaches was $1 million,
say blacks have fewer opportunities while white coaches averaged $1.4
than whites to become owners of million.
professional sports franchises (71 The surveyed fans also were
percent); athletic directors at major, somewhat divided on their views
Division I universities (72 percent); about the need for the NFL’s Rooney
major league baseball managers Rule, which requires consideration
(64 percent); NFL head coaches (62 of minority candidates for head
percent); or head coaches at major coaching and senior football
Division I schools (58 percent). A operations positions. Of black fans
majority of white sports fans believe polled, 57 percent believe the rule
African-Americans have equal will be needed for years to come,
opportunities. compared with only 20 percent of
Charlotte Bobcats owner Michael white fans. Twenty-three percent of
Jordan is the only black majority white fans indicate the rule was never
owner in the four major professional needed in the first place, while only 7
sports, according to the University of percent of African-Americans feel it is
Central Florida’s Institute for Diversity unnecessary.
and Ethics in Sports. Jordan bought In conjunction with the 25th
the team from another African- anniversary of the Martin Luther King
American, Robert Johnson, and those holiday, ESPN also surveyed 100
two constitute the only black majority African-American athletes about their
owners in the history of the four views of the black athlete in 2010. The
major sports. athletes were promised anonymity to
Nevertheless, only 47 percent of encourage freer responses to a series
white sports fans surveyed think of 10 questions.
127
“Wow, it’s an honor to take this The athletes surveyed resoundingly

survey,” said one NFL Pro Bowl (81 percent) believe African-
player. “MLK had a huge impact American athletes need to take
on me as a kid – even though I was a more active role in the black
born a few years after he died. That’s community.
legacy, man.” “You need more black athletes
“What sets Jordan apart is he’s done doing more positive things,”
so much more than basketball. Even said a world champion boxer.
the whole baseball attempt was “A lot of people in the ghetto, in
inspiring to me. I remember thinking, poor neighborhoods like where I
‘He’s the best basketball player grew up, don’t believe there’s life
ever, and he’s walking away to try outside of the city, outside what
baseball just because he wants to they know. We need to be in there
test himself? Maybe I need to think showing them, telling them, that
more like that.’” there is.”
Asked to identify who was the
– MLB player on Michael Jordan
most color-blind among fans,
coaches, owners and media, more
Asked to name the retired black
than half the athletes (53.4 percent)
athlete they could most imagine
selected coaches, followed by fans
being president in 2024, the
(21.8), owners (14.4) and media
athletes’ top choice was Michael
(10.4).
Jordan, garnering 17.5 percent of
“When it’s all said and done, the
votes.
color that counts the most is green,”
“What sets Jordan apart is he’s
said one NFL linebacker.
done so much more than basketball,”
The athletes’ answers reflected
said an MLB player. “Even the whole
a level of suspicion regarding the
baseball attempt was inspiring to
media. When asked to rank five
me. I remember thinking, ‘He’s the
athletes by how the media treated
best basketball player ever, and he’s
them (1 being the kindest; 5 being
walking away to try basketball just
the worst), the survey revealed
because he wants to test himself?
the African-American athletes
Maybe I need to think more like
believe Steelers quarterback Ben
that.’”
Roethlisberger (1.6) was handled
The NBA swept the top five among
with kid gloves compared with
potential presidents, with Jordan
Eagles quarterback Michael Vick
followed by current Laker Derek
(4.8). Roethlisberger was accused
Fisher and former Laker Magic
of sexually assaulting a 20-year-
Johnson (each at 12.4 percent);
old woman, and he ultimately was
former Phoenix Suns great Kevin
given a four-game suspension by the
Johnson (6.2), now the mayor of
NFL although no charges were filed
Sacramento; and former Spurs
against him. Vick served 21 months
superstar David Robinson (5.2).
in prison for his role in a dogfighting
Jackie Robinson (62.5 percent)
ring.
was the top vote-getter when the
Other players named in the
athletes were asked to name the most
question were pitching great Roger
important black athlete ever, followed
Clemens (2.3), who faces charges
by Muhammad Ali (57.3) and Jordan
of lying before Congress when he
(54.2).
128
denied steroid use; NFL wide receiver fans overwhelmingly name Jordan
Plaxico Burress (3.5), who is currently as the figure they most admire (67
serving a two-year prison sentence percent). Owens is last (18 percent),
stemming from gun charges after although 35 percent of black fans
he accidentally shot himself at a surveyed say they admired him,
New York nightclub; and seven-time compared with just 14 percent of
National League Most Valuable Player whites.
Barry Bonds (3.6), who is set to stand Provided a list of seven facts
trial in March on perjury charges
related to his grand jury testimony in
the BALCO steroids case.
about African-Americans in sports
today, sports fans of both races say
they are most concerned that the
3
“All of those guys got raked pretty graduation rate for black student-
bad. But what happened to Vick athletes is 53 percent compared with
wasn’t right, especially compared 63 percent for white student-athletes.
with how the other guys on that list The fan survey also touched upon
were treated.” the often-taboo notion of whether
African-Americans are athletically
– Champion boxer on Michael Vick
superior to whites. Across the
board, blacks and whites indicate
“All of those guys got raked pretty
they believe blacks are superior
bad,” said a champion boxer. “But
runners, have greater jumping and
what happened to Vick wasn’t right,
leaping ability, and possess more
especially compared with how the
natural athletic ability than whites.
other guys on that list were
In fact, 66 percent of the African-
treated.”
American fans surveyed associate
African-American sports fans who
fast runners more with black athletes
took part in the online survey also
than white, and 61 percent associate
indicated the media had been biased
natural athletic ability more with
in its treatment of black athletes. By
blacks than whites. A very small
a margin of 57 percent to 7 percent,
percentage of blacks and whites
the African-Americans surveyed say
associate superior athletic ability
the media unfairly criticizes black
with white athletes.
athletes more than white athletes,
The NFL is far and away the
while the white fans suggest there is
most popular sport among all
no difference in the media’s handling
fans surveyed, with Major League
of various cases.
Baseball a distant second, followed
Of black sports fans surveyed,
by college football. Among
65 percent say they admire Vick,
black fans specifically, the NBA
compared with just 25 percent of
ranks second, followed by college
the white fans. Black fans surveyed
football, college basketball and
actually also seem more forgiving
then MLB. Asked to rank a series
of Roethlisberger, with 30 percent
of breakthrough sports moments
expressing admiration, compared
involving African-Americans, black
with just 22 percent of white fans.
fans view as most significant Tony
Asked for their views on 17 different
Dungy and Lovie Smith being the
sports figures – from NFL quarterback
first African-American head coaches
Tom Brady to race car driver Danica
to reach the Super Bowl, with Dungy
Patrick, from golfer Tiger Woods to
being the first black coach to win the
NFL wide receiver Terrell Owens –
129
title. Ranking second among blacks though, black fans are far less
is Serena Williams becoming the convinced than whites: Regarding
first African-American woman to society in general, just 6 percent
win a career grand slam in tennis. of African-Americans believe the
Overall, the black and white fans country has fulfilled the dream,
surveyed view Jordan becoming the compared with 15 percent of whites;
first former NBA player to become and in sports, 14 percent of the
the majority owner of an NBA black fans indicate equality has
franchise as the sports event that been achieved, while 37 percent of
demonstrates the most progress in whites think the dream has been
achieving King’s dream of a society realized.
that provides equal opportunities for
all races. Source: Mark Fainaru-Wada, 2011,
More than twice as many of the “Survey Shows Split on Racial
surveyed fans (32 percent to 13 Opportunity,” ESPN, January 11.
Rightsholder: ESPN; http://sports.espn.
percent) say the dream has been
go.com/espn/otl/news/story?id=6006813.
reached in sports compared with
Originally published in The Good Men
those who say it has been reached
Project.
by the country as a whole. Again,
Summary as a guide for the rest of the research

process.
Chapter 3 focuses on the tools used to
gather information to make intelligent The next step in the marketing research
decisions throughout the strategic sports process is to determine the appropriate
marketing process. More specifically, the research design type(s). The research
chapter describes the marketing research design is the plan that directs data
process in detail. Marketing research collection and analysis. The three
is defined as the systematic process common research design types are
of collecting, analyzing, and reporting exploratory, descriptive, and causal.
information to enhance decision making The choice of one (or more) of these
throughout the strategic sports marketing design types for any study is based on
process. the clarity of the problem. Exploratory
designs are more appropriate for
The marketing research process consists
ill-defined problems, whereas causal
of seven interrelated steps. These steps
designs are employed for well-defined
include defining the problem; choosing
research problems.
the research design type; identifying
data collection methods; designing data After the research design type is chosen,
collection forms; designing the sample; the data collection method(s) is selected.
collecting, analyzing, and interpreting Once again, decisions regarding data
data; and preparing the research report. collection are contingent upon the choice
The first step is defining the problem of research design. Data collection
and determining what information will consists of two types – secondary and
be needed to make strategic marketing primary. Secondary data refers to data
decisions. The tangible outcome of that were collected earlier, either within
problem definition is to develop a set or outside the sports organization,
of research objectives that will serve but still provide useful information to
130
the researcher. Typically, sources of Data analysis is the next step in the
secondary data include government marketing research process. Before the
reports and documents; trade and data can be analyzed, however, they
industry associations; standardized sports must be edited and coded. The editing
marketing information studies; and process ensures the data being used
books, journals, and periodicals. Primary for analysis are of high quality. In other
data are information that is collected words, it makes sure that there are no
specifically for the research question at problems, such as large amounts of
hand. Common types of primary data missing data or errors in data entry. Next,
collection techniques include, but are
not limited to, in-depth interviews, focus
groups, surveys, and experiments.
coding takes place. Coding refers to
assigning numerical values to represent
specific responses to specific questions.
3
The fourth step in the research process is Once the data are edited and coded,
to design the data collection instrument. data analysis is conducted. The method
Regardless of whether you are collecting of data analysis depends on a variety
data by in-depth interviews, focus groups, of factors, such as how to address the
or surveys, data collection instruments research objectives. The last step in the
are necessary. The most widely used marketing research process is to prepare
data collection technique in sports a final report. Oral and written reports
marketing research is the questionnaire. typically discuss the objectives of the
As such, it is important that sports study, how the study was conducted,
marketing researchers understand how and the findings and recommendation for
to construct a questionnaire properly. The decision makers.
steps for questionnaire design include This ESPN study clearly shows that there
specifying information requirements, are major differences between how
deciding the method of administration white fans and black fans view white
(i.e., mail, phone, and stadium interview), and black athletes. According to the
determining the content of questions, statistics, white fans appear to have far
determining the form of response for less interest in cheering on black athletes
questions, deciding on the exact wording than they do athletes of their own skin
of the questions, designing the order of color – but is this assumption really
the questions, designing the physical accurate? One thing that jumped out to
characteristics of the questionnaire, Dr. Christopher Stankovich, founder of
pretesting the questionnaire, and Advance Human Performance Systems,
modifying it according to pretest results. when looking over this report was the
Once the data collection forms are fact that black fans didn’t dislike any
constructed, the next step in the black athletes, something that would
research process is choosing a sampling certainly catch the attention of savvy
strategy. Rarely, if ever, can we take a researchers. Dr. Stankovich identified
census where we communicate with that the generalizability of these data
or observe everyone of interest to us in may be compromised, therefore for
a research study. As such, a subset of discussion identifies how these data may
those individuals is chosen to represent be compromised and what limitations, if
the larger group of interest. Sampling any, may be associated with the study?
strategy identifies how we will choose Also, identify how these data may be
these individuals and how many people used by sport marketing professionals to
we will choose to participate in our study. enhance functions of the SSMP?
131
Key terms X longitudinal study X research design

X concomitant variation X marketing research X research objectives
X convenience sampling X methodology X research problem
techniques X nonprobability statement
X cross-sectional studies sampling X research proposal
X data collection X pretest X sample
techniques X primary data X secondary data
X dependent variable X probability sampling X simulated test
X experimentation X problem definition market
X focus group X projective techniques X sports marketing
X independent variable X questionnaire design research
X judgment sample X quota sampling X test marketing
Review questions 10. Outline the nine steps in

questionnaire design. What are
1. Define sports marketing research. some of the most common errors in
Describe the relationship between the wording of questions?
sports marketing research and the 11. Define nonprobability sampling and
strategic marketing process. probability sampling techniques.
2. What are the various steps in the What are three types of
marketing research process? nonprobability sampling?
3. Define problem and opportunity 12. What is a sampling frame?
definition and explain why this How do researchers decide on
step of the research process is the appropriate sample size for a
considered to be the most critical. study?
4. What are some of the basic issues 13. What are some of the guidelines for
that should be addressed at a preparing oral and written research
research request meeting? reports?
5. Outline the steps in developing a
research proposal. Exercises
6. Define a research design. What
are the three types of research You are interested in purchasing a new
designs that can be used in minor league baseball franchise. The
research? How does the choice franchise will be located in your area.
of research design stem from the To reduce the risk in your decision
problem definition? Can a researcher making, you have requested that a sports
choose multiple designs within a marketing firm submit a detailed research
single study? proposal. The following questions pertain
7. Describe some of the common to this issue:
data collection techniques used in 1. What is the broad problem/
sports marketing research. How opportunity facing you in this
does the choice of data collection decision? Write the research
technique stem from the research objectives based on the problem
design type? formulation.
8. What are some of the central issues 2. What type of research design type
that must be considered when do you recommend?
conducting focus groups? 3. The sports marketing firm has
9. What are the pros and cons of submitted the following preliminary
laboratory studies versus field questionnaire. Please provide a
studies? detailed critique of their work.
132
Age: ________ Gender: ________ Endnotes
Are you likely to go to a baseball
1 NASCAR Sponsorship Study, “Sponsorship
game at the new stadium? Research and Strategies.” Available from:
Yes ____ No ____ http://sponsorstrategy.com/_wsn/page9.
How many minor league games did html.
2 Gilbert Churchill, Basic Marketing Research,
you go to last year?
3rd ed. (Ft. Worth, TX: Dryden Press, 1996).
0–3 ____ 4–6 ____ 6–9 ____ 10+ ____ 3 Ibid.
What types of promos would you 4 Kristie McCook, Douglas Turco, and Roger
like to see? Riley, “A Look at the Corporate Sponsorship
4.
Beer Night ______ Straight-A Night
______ Polka Night ______
Now that you have looked at their
Decision Making Process,” Cyber-Journal
of Sport Marketing, vol. 1, no. 2 (1997).
fulltext/1997/cjsm/v1n2/mcook.htm.
3
survey, create a questionnaire of 5 Jay Weiner, “New Focus Group Report,
Showing Surprising Openness to Sales Tax,
your own. Would any other data
Could be Key to Vikings Stadium Effort”
collection techniques be appropriate, (May 4, 2010). Available from: http://www.
given the research problem? minnpost.com/politics-policy/2010/05/
5. What sampling technique(s) do you new-focus-group-report-showing-surprising-
openness-sales-tax-could-be-key-vi.
recommend? How is the correct
6 Mike Sielski, “After Losing Season, Mets
sample size determined, given your Slash Ticket Prices” (November 4, 2010).
choice of sampling technique? Available from: http://online.wsj.com/news/
articles/SB100014240527487035069045755
92780665674228.
Internet exercises 7 Gilbert Churchill, Basic Marketing Research,
3rd ed (Fort Worth, TX: Dryden Press, 1996).
1. Using secondary data sources on 8 “Cleveland Indians Look to Long-Term
the Internet, find the following Viability through Market Research,” Akron
and indicate the appropriate URL Beacon Journal (April 16, 1999).
9 Tripp Mickle, “Drivers Should Take a Spin
(Internet address):
Online, Study Shows,” Sports Business
a. Number of women who Journal (November 5, 2012).
participated in high school 10 “ESPN 3D to Show Soccer, Football, More.”
Available from: www.ESPN.com (January 5,
basketball last year
2010).
b. Attendance at NFL games last 11 Jason Dachman, “ESPN to discontinue ESPN
year 3D by Year’s End.” Available from: www.
c. Sponsors for the New York City sportsvideo.org/main/blog/2013/06/breaking-
news-espn-to-discontinue-3d-network/.
Marathon
12 Craig Mertz, “Pro Lacrosse League to Test
d. Universities that offer graduate Local Support,” The Columbus Dispatch (July
programs in sports marketing. 7, 2000), 5D.
2. Using the Internet, find at least five
articles that relate to the marketing
of NASCAR.
3. Using the Internet, locate three
companies that conduct sports
marketing research. What types
of products and services do the
companies offer?
133
CHAPTER 4
Understanding
participants as
consumers
• Define participant consumption behavior.
• Explain the simplified model of participant consumption behavior.
• Describe the psychological factors that affect participant decision
making.
• Identify the various external factors influencing participant decision
making.
• Describe the participant decision-making process.
• Understand the different types of consumer decision making.
• Discuss the situational factors that influence participant decision
making.
4 Understanding participants as consumers
Think about the sports and recreational activities in which you participated
during the past month. Maybe you played golf or tennis, lifted weights, or even
went hiking. According to data from the National Sporting Goods Association
(NSGA) provided in Table 4.1, millions of Americans participate in a variety of physical
activities each year.
Table 4.1 Sport participation changes from 2013 (participants ages six and up)
2013 Sport/Recreational Activity Participation
Ranking Sport 2013 Total Participation (in millions)
1 Exercise Walking 96.3
2 Exercising with Equipment 53.1
3 Swimming 45.5
4
5
6
Aerobic Exercising
Running/Jogging
Hiking
44.1
42.0
39.4
4
7 Camping (Vacation/Overnight) 39.3
8 Bicycle Riding 35.6
9 Bowling 35.2
10 Workout at Club 34.1
11 Weightlifting 31.3
12 Fishing (Fresh Water) 27.0
13 Yoga 25.9
14 Basketball 25.5
15 Billiards/Pool 19.5
16 Target Shooting (Live Ammunition) 19.0
17 Golf 18.9
18 Hunting with Firearms 16.3
19 Boating, Motor/Power 13.1
20 Soccer 12.8
21 Tennis 12.6
22 Backpacking/Wilderness Camping 12.2
23 Baseball 11.7
24 Volleyball 10.1
25 Softball 10.0
26 Table Tennis/Ping Pong 9.8
27 Dart Throwing 9.8
28 Fishing (Salt Water) 9.5
29 Football (Touch) 8.8
30 Archery (Target) 8.3
31 Kayaking 8.1
32 Football (Tackle) 7.5
33 Football (Flag) 6.8
34 Canoeing 6.7
35 Skiing (Alpine) 6.1
36 Roller Skating (In-line) 5.7
37 Hunting with Bow & Arrow 5.7
38 Mountain Biking (off road) 5.2
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Table 4.1 (continued)
2013 Sport/Recreational Activity Participation
39 Gymnastics 5.1
40 Skateboarding 5.0
41 Paintball Games 4.8
42 Target Shooting (Airgun) 4.8
43 Snowboarding 4.5
44 Water Skiing 3.6
45 Cheerleading 3.5
46 Hockey (Ice) 3.5
47 Muzzleloading 3.2
48 Wrestling 3.1
49 Lacrosse 2.8
50 Scuba Diving (Open Water) 2.7
51 Skiing (Cross Country) 2.5
Source: Courtesy of The Sporting Goods Marketing Association.
At this point you may be asking yourself, “Why are sports marketers concerned
with consumers who participate in sports?” Recall from our discussion of sports
marketing in Chapter 1 that one of the basic sports marketing activities was
encouraging participation in sports. Sports marketers are responsible for organizing
events such as the Boston Marathon, the Iron Man Triathlon, or the Gus Macker
3-on-3 Basketball Tournament in which thousands of consumers participate in
sports. Moreover, sports marketers are involved in marketing the equipment
and apparel necessary for participation in sports. As you might imagine, sports
participants constitute a large and growing market both in the United States and
internationally.
To successfully compete in the expanding sports participant market, sports
organizations must develop a thorough understanding of participant consumption
behavior and what affects it. Participant consumption behavior is defined as actions
performed when searching for, participating in, and evaluating the sports activities
that consumers believe will satisfy their needs. You may have noticed this definition
relates to the previous discussion of marketing concepts and consumer satisfaction.
Sports marketers must understand why consumers choose to participate in certain
sports and what the benefits of participation are for consumers. For instance, do
we play indoor soccer for exercise, for social contact, to feel like part of a team, or
to enhance our image? Also, the study of participant consumer behavior attempts
to understand when, where, and how often consumers participate in sports. By
understanding consumers of sports, marketers will be in a better position to satisfy
their needs.
The definition of participant consumption behavior also incorporates the elements
of the participant decision-making process. The decision-making process is the
foundation of our model of participant consumption. It is a five-step process that
consumers use when deciding to participate in a specific sport or activity. Before
turning to our model of participant consumption behavior, it must be stressed that the
primary reason for understanding the participant decision-making process is to guide
the rest of the strategic sports marketing process. Without a better understanding of
136
Photo 4.1 Father and son fishing together by the ocean

sports participants, marketers would simply be guessing about how to satisfy their
needs.
Model of participant consumption behavior

To help organize all this complex information about sports participants, we have
developed a model of participant consumption behavior that will serve as a framework
for the rest of our discussion (see Figure 4.1). At the center of our model is the
participant decision-making process, which is influenced by three components: (1)
internal or psychological processes such as motivation, perception, learning and
memory, and attitudes; (2) external or sociocultural factors, such as culture, reference
groups, and family; and (3) situational factors that act on the participant decision-
making process.
Participant decision-making process

Every time you lace up your running shoes, grab your tennis racquet, or dive into a pool,
you have made a decision about participating in sports. Sometimes these decisions are
nearly automatic because, for example, you might jog nearly every day. Other decisions,
such as playing in a golf league, require more careful consideration because of the time
and cost involved. The foundation of our model of participant consumption behavior
is trying to understand how consumers arrive at their decisions.
Participant decision making is a complex, cognitive process that brings together
memory, thinking, information processing, and making evaluative judgments. The five
137
Internal factors
Personality
Motivation
Learning
Perception
Attitudes
Participant decision-making process Situtional factors

Problem recognition Physical surroundings
Information search Social surroundings
Evaluation of alternatives Task definition
Participation Time
Postparticipation evaluation Antecedent states
External factors
Culture
Social class
Reference groups
Family
Figure 4.1 Model of participant consumption behavior
steps that make up the process used to explain participant decision making are shown
in Figure 4.1. It is important to remember that every individual consumer arrives
at decisions in a slightly different manner because of his or her own psychological
makeup and environment. However, the five-step participant decision-making process,
moving from problem recognition through post-participation evaluation, is relatively
consistent among consumers and must be understood by sports marketers to develop
strategies that fit with consumers’ needs.
As we progress through the participant decision-making process, let us consider the
case of Jack, a 33-year-old male who just moved from Los Angeles to Cincinnati.
Jack has always been active in sports and would like to participate in an organized
sports league. Because of work and family commitments, Jack only has the time to
participate in one league. He is unsure about what sport to participate in, although he
does have a few requirements. Because he is a newcomer to the city, Jack would like
to participate in a team sport to meet new people. Also, he wants the league to be
moderately competitive so as to keep his competitive juices flowing. Finally, he would
like to remain injury free, so the sport needs to be non- or limited-contact. Let us see
how Jack arrives at this important decision by using the participant decision-making
process.
Problem recognition
The first step in the participant decision-making process is problem recognition.
During problem recognition, consumers realize they have a need that is not presently
being met. Problem recognition is the result of a discrepancy between a desired
state and an actual state large enough and important enough to activate the entire
decision-making process.1 Stated simply, the desired state reflects the “ideal” of the
138
participant. In other words, what is the absolute best sport for Jack to participate in,
given his unique needs? If there is a difference between ideal and actual levels of
participation, then the decision-making process begins.
The desire to resolve a problem and to reach goals, once recognized by consumers,
is dependent on two factors: (1) the magnitude or size of the discrepancy and (2) the
relative importance of the problem. Let us look at how these two factors would affect
problem recognition. Jack currently jogs on a daily basis and wants to participate in
a competitive, organized, and aggressive team sport. Is the discrepancy between
actual state (individual, recreational, and nonaggressive) and desired state (team play,
competitive, and aggressive) large enough to activate the decision-making process?
Let’s assume that it is and consider the second condition of problem recognition, the
importance of the problem.
The second condition that must be met for problem recognition to occur is that
the goal must be important enough to Jack. Some consumers may recognize the
difference between participating in recreational sports versus an organized league.
4
Would the benefits of participating in the new organized league (hopefully making
some friends and being more competitive) outweigh the time, expense, and energy
required to play? If the problem is important enough to Jack, then he moves on to the
next stage of the decision-making process – information search.
What strategic implication does problem recognition hold for sports marketers?
Generally, we would first identify the actual and desired states of sports
Photo 4.2 Many consumers see a discrepancy between the “ideal” and “actual” body.
139
participants or potential participants. Once these states have been determined,
sports marketers can offer activities and events that will fill these needs and
eliminate “problems.” In addition, sports marketers can attempt to alter the
perceived ideal state of consumers. For example, it is common for health clubs
to show the “ideal” body that can be achieved by purchasing a membership and
working out. Media is continually an avenue in which the ideal and actual body
are forever challenged as seen in the following video: http://www.youtube.com/
watch?v=ruIwamsQVck.
Information search
After problem recognition occurs, the next step in the participant decision-making
process is information search. Information search occurs when a participant
seeks relevant information that will help resolve the problem. The sources of
information sought by consumers can be broken down into two types: internal and
external sources.
Internal sources of information are recalled from our own memories and are based
on previous exposure to sports and activities. The internal information activated from
memory can provide us with a wealth of data that may affect the decision-making
process. Jack has spent most of his life participating in sports and recreational
activities so information based on past experience is readily available. For instance,
because Jack has played in an organized league in the past, he would use internal
information to recall his experiences. Did he enjoy the competition of organized
sport? Why did he stop participating in the sport? External sources of information
are environmentally based and can occur in three different ways. First, Jack might
ask personal sources, such as friends or family, to provide him with information
about possible organized team sports in which to participate. Friends and family
are important information sources that can have a great deal of influence on our
participation choices. Second, marketing sources, such as advertisements, sales
personnel, brochures, and Web sites on the Internet are all important information
Web 4.1 Online information source

Source: http://kayakonline.com
140
sources. In fact, sports marketers have direct control over this source of information,
so it is perhaps the most critical from the perspective of the sports organization. The
third type of external information source is called an experiential source. Jack may
watch games in several different sports leagues to gather information. His decision is
influenced by watching the level of competition.
Some participants may require a great deal of information before making a decision,
whereas others require little to no information. The amount of information and the
number of sources used is a function of several factors, such as the amount of time
available, the importance of the decision, the amount of past experience, and the
demographics and psychographics of the participants.
The extent of the information search also depends on the perceived risk of the
decision. Perceived risk stems from the uncertainty associated with decision making
and is concerned with the potential threats inherent in making the wrong decision.
For individual sports participants perceived risk surfaces in many different forms.
Perceived risk may be the embarrassment of not having the skill necessary to
4
participate in a competitive league (social risks) or being concerned about the money
needed to participate (economic risks). Also, an important perceived risk for many
adult participants is health and safety (safety risks).
At this stage of the participant decision-making process, sports marketers
must understand as much as they can about the information sources used by
consumers. For instance, marketers for the Cincinnati Recreational Commission
want to know the information sources for teams, what is the most effective way to
provide teams with information, how much information is desired, and to whom they
should provide this information. Moreover, sports marketers want to understand the
perceived risks for potential participants such as Jack. This information is essential for
developing an effective promotional strategy that targets both teams and individual
participants.
Evaluation of alternatives
Now that the information search has yielded all the available participation alternatives
that have some of the basic characteristics that appeal to Jack, he must begin to
evaluate the alternatives. Jack thinks about all the organized team sports in which he
might participate and chooses a subset to which he will give further consideration.
The few sports given the greatest consideration are called the evoked set of
alternatives. Jack’s evoked set might consist of four sports: softball, basketball,
bowling, and indoor soccer.
After consumers develop their evoked set, which is comprised of acceptable
alternatives, they must evaluate each sport based on the important features and
characteristics. These features and characteristics that potential consumers are
looking for in a sport are called evaluative criteria. The evaluative criteria used by
Jack include team sport, organized or league play, moderate level of competition, and
moderately aggressive sport. It is important to realize that each of the four evaluative
criteria carries a different weight in Jack’s overall decision-making process. To
continue with our example, let us say that Jack attaches the greatest importance to
participating in a team sport. Next, Jack is concerned with participating in a league or
organized sport. The level of aggression is the next most important criterion to Jack.
Finally, the least important factor in choosing from among the four sports is the level
of competition.
141
In complex decision making, Jack would evaluate each of the sports against each
of the evaluative criteria. He would base his final decision regarding participation on
which sport measures best against the various factors he deems important. The two
most important criteria – team sport and league play – are satisfied for each of the
four sports in the evoked set. In other words, all the sports that Jack is evaluating are
team sports, and all have league play. Therefore, Jack moves on to his next criteria,
level of aggression. Ideally, Jack wants to remain injury free, so he eliminates indoor
soccer and basketball from further consideration. Bowling seems to be a clear winner
in satisfying these criteria, and Jack is aware of several competitive bowling leagues in
the area. Therefore, Jack decides to participate in a bowling league.
The evaluation of alternatives has two important implications for sports marketers.
First, sports marketers must ensure their sports are included in the evoked set of
potential consumers. To accomplish this objective, consumers must first become
aware of the alternative. Second, sports marketers must understand what evaluative
criteria are used by potential consumers and then develop strategies to meet
consumers’ needs based on these criteria. For example, marketers of bowling
have determined that there are two different participant bowling markets: league or
organized and recreational bowlers.
Recreational bowlers are growing in numbers and care most about the facilities at
which they bowl and the related services provided. The evaluative criteria used by
recreational bowlers might include the type of food served, other entertainment
offered (e.g., arcade games and billiards), and the atmosphere of the bowling alley.
League bowlers, however, constitute a diminishing market. This segment of bowlers
cares most about the location of the bowling center and the condition of the lanes.2
Participation
The evaluation of alternatives has led us to what marketers consider the most important
outcome of the decision-making process – the participation decision. The participation
stage of the decision-making process might seem to be the most straightforward, but
many things need to be considered other than actually deciding what sport to play. For
instance, the consumer’s needs may shift to the equipment and apparel needed to
participate. Jack may decide that he needs a new bowling ball, shoes, and equipment
bag to look the part of bowler for his new team. Thus, marketers working for equipment
manufacturers are interested in Jack’s participant consumption behavior. In addition,
Jack may have to decide which bowling alley offers the best alternative for his needs.
He may choose a location close to home, one that offers the best price, or the alley that
has the best atmosphere. Again, these criteria must be carefully considered by sports
marketers, because participants make choices regarding not only what sports they
want to participate in, but also where they want to participate.
Other things might occur that alter the intended decision to participate in a given
sport. At the last minute, Jack’s coworkers may talk him out of playing in a
competitive men’s league in lieu of a co-rec, work league. There might be a problem
finding an opening on a roster, which would also change Jack’s decision-making
process at the last moment. Perhaps the bowling team that Jack wanted to join is
scheduled to play during a trip that he had planned. All these “unexpected pleasures”
may occur at the participation stage of the decision-making process.
142
Postparticipation evaluation
You might think that the decision-making process comes to an abrupt halt after the
participation decision, but there is one more very important step – postparticipation
evaluation. The first activity that may occur after consumers have made an important
participation decision is cognitive dissonance. This dissonance occurs because
consumers experience doubts or anxiety about the wisdom of their decision. In other
words, people question their own judgment. Let us suppose Jack begins participating
in a competitive bowling league, and the first time he bowls, he is embarrassed. His
poor level of play is far worse than that of everyone else on the team. Immediately,
he begins to question his decision to participate. Whether dissonance occurs is a
function of the importance of the decision, the difficulty of the choice, the degree of
commitment to the decision, and the individual’s tendency to experience anxiety.3
Jack does not know his teammates well and only paid $50 to join the league, so he
may decide to quit the team. However, he does not want to let his team down and
ruin his chance of making new friends, so high levels of dissonance may cause him
4
to continue with the team. In either case, the level of dissonance that Jack feels is
largely based on his own personality and tendency to experience anxiety.
Another important activity that occurs after participation begins is evaluation.
First, the participant develops expectations about what it will be like to play in this
competitive bowling league. Jack’s expectations may range from thinking about how
much physical pain the sport will cause to thinking about how many new friends
he will make as a result of participating. Next, Jack evaluates his actual experience
after several games. If expectations are met or exceeded, then satisfaction
occurs. However, if the experience or performance is poorer than expected, then
dissatisfaction results. The level of satisfaction Jack experiences will obviously have
a tremendous impact on his future participation and word-of-mouth communication
about the sport.
Types of consumer decisions

We have just completed our discussion of Jack’s decision-making process and have
failed to mention one very important thing: Not all decisions are alike. Some are
extremely important and, therefore, take a great deal of time and thought. Because
we are creatures of habit, some decisions require little or no effort. We simply do
what we have always done in the past. The variety of decisions that we make about
participation in sport can be categorized into three different types of participation
decision processes. The decision processes, also known as levels of problem solving,
are habitual problem solving, limited problem solving, and extensive problem solving.
Habitual problem solving

One type of decision process that is used is called habitual problem solving (or
routinized problem solving). In habitual problem solving, problem recognition
occurs, followed by limited internal information search. As we just learned, internal
search comes from experiences with sports stored in memory. Therefore, when Jack
is looking for information on sports next year, he simply remembers his previous
experience and satisfaction with bowling. The evaluation of alternatives is eliminated
for habitual decisions because no alternatives are considered. Jack participates in
bowling again, but this time there is no dissonance and limited evaluation occurs. In a
sense, Jack’s decision to participate in bowling becomes a habit or routine each year.
143
Limited problem solving

The next type of consumer decision process is called limited problem solving.
Limited problem solving begins with problem recognition and includes internal search
and sometimes limited external search. A small number of alternatives are evaluated
using a few evaluative criteria. In fact, in limited problem solving, the alternatives
being evaluated are often other forms of entertainment (e.g., movies or concerts).
After purchase, dissonance is rare and a limited evaluation of the product occurs.
Participation in special sporting events, such as a neighborhood 10k run or charity
golf outing, are examples of sporting events that lend themselves to limited problem
solving.
Extensive problem solving

The last type of decision process is called extensive problem solving (or extended
problem solving) because of the exhaustive nature of the decision. As with any
type of decision, problem recognition must occur for the decision-making process to
be initiated. Heavy information search (both internal and external) is followed by the
evaluation of many alternatives on many attributes. Postpurchase dissonance and
postpurchase evaluation are at their highest levels with extensive decisions. Jack’s
initial decision to participate in the bowling league was an extensive decision due to
his high levels of information search, the many sports alternatives he considered, and
the comprehensive nature of his evaluation of bowling.
For many people who are highly involved in sports, participation decisions are more
extensive in nature, especially in the initial stages of participating in and evaluating
various sports. Over time, what was once an extensive decision becomes routine.
Participants choose sports that meet their needs, and the decision to participate
becomes automatic. It is important for marketers to understand the type of problem
solving used by participants so the most effective marketing strategy can be
formulated and implemented.
Psychological or internal factors

Now that we have looked at the participant decision-making process, let us turn
our focus to the internal, or psychological, factors. Personality, motivation, learning,
and perception are some of the basic psychological or internal factors that will be
unique to each individual and guide sports participation decisions.
Personality
One of the psychological factors that may have a tremendous impact on whether
we participate in sports, the sports in which we participate, and the amount of
participation, is personality. Psychologists have defined personality as a set of
consistent responses an individual makes to the environment.
Although there are different ways to describe personality, one common method
used by marketers is based on specific, identifiable personality traits. For example,
individuals can be thought of as aggressive, orderly, dominant, or nurturing.4 Consider
the potential association between an individual’s personality profile and the likelihood
of participating in a particular sport. The self-assured, outgoing, assertive individual
may be more likely than the apprehensive, reserved, and humble person to participate
144
Photo 4.3 A growing number of consumers participate in high-risk sports

in any sport. Moreover, the self-sufficient individual may participate in more individual
sports (e.g., figure skating, golf, or tennis) than the group-dependent individual.
In one study, Generation X-ers were found to be more interested in fast-paced,
high-risk activities, such as rock climbing and mountain biking.5 As such, action
sports may be a good choice for the happy-go-lucky, venturesome personality type
of the Generation X-ers. Action or extreme sports are defined as the pantheon of
aggressive, non-team sports, including snowboarding, in-line skating, super modified
shovel racing, wakeboarding, ice and rock climbing, mountain biking, and snow
mountain biking.6 Another example of the relationship between sports participation
and personality traits can be seen in Table 4.2. As illustrated, golfers most often
described themselves as responsible, family-oriented, self-confident, and intelligent.
The poorest descriptors for golfers were bitter, sick a lot, extravagant, and risk-averse.
Interestingly, golfers described themselves as team players, although they participate
in this highly individual sport.
Although personality and participation may be linked, take care not to assume a
causal relationship between personality and sports participation. Some researchers
believe sports participation might shape various personality traits (i.e., sport is a
character builder). Other researchers believe we participate in sports because of our
particular personality type. To date, little research supports the causal direction of the
relationship between personality and participation in sport.
Not only does personality dictate whether someone participates in sports, but it may
also be linked with participation in particular types of sports. The violent, aggressive
personality type may be drawn to sports such as mixed martial arts, football, boxing,
145
Table 4.2 Golfer’s self-reported traits and personality characteristics
Poorest describers Percentage Best descriptors Percentage

Born again 16 Practical 60
Attractive 15 Competent 61
Non-mainstream 14 Ambitious 61
Lonely 8 Sensitive 62
Fun-loving 8 Team player 63
Virgin 6 Fun-loving 64
Risk-averse 6 Intelligent 66
Extravagant 6 Confident 70
Always sick 3 Family-oriented 75
Bitter 3 Responsible 80
Source: Yankelovich Partners, “How Golfers Are Likely to Describe Themselves.”
or hockey. The shy, introverted personality type may be more likely to participate
in individual sports, such as tennis and running. Knowing the relationship between
participation and personality profiles can help sports marketers set up the strategic
sports marketing process so it will appeal to the appropriate personality segment.
In addition, sports marketers of large participant sporting events use personality
profiles to attract potential corporate sponsors who may want to appeal to the same
personality segment.
Motivation
Why do people participate in sports? What benefits are people looking for from
participating in sport, and what needs do participating in sport satisfy? McDonald,
Milne, and Hong,7 drawing on Maslow’s human needs hierarchy, present evidence
illustrating that consumers possess multiple and unique motivations – including
achievement, competition, social facilitation, physical fitness, skill mastery,
physical risk, affiliation, aesthetics, aggression, value development, self-esteem,
self-actualization, and stress release – for participating in particular sport activities.
Steve Jennison highlighted that “sport has the ability to enhance people’s lives,
improve health status, and increase participation rates to support development
of a physically active city. It can also unite communities and nations through
success in international competition and major events through pride, passion,
and participation”8 (Hull City). Additional studies suggest there are three basic
reasons for participation in sport (see Table 4.3). Finally, studies have looked at
understanding the motives for participation in a specific sport. For example, Rohm,
Milne, and McDonald9 recently explored the motives of runners (see Table 4.4 for
segmentation of runners by motives).
The study of human motivation helps to better understand the underlying need to
participate in sports. Motivation is an internal force that directs behavior toward
the fulfillment of needs. In our earlier discussion of the participant decision-making
process, problem recognition resulted from having needs that are not currently
being met. As the definition indicates, motivation is discussed in terms of fulfilling
unmet needs. Although there is no argument that all humans have needs, there is
disagreement about the number of needs and the nature of them.
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Table 4.3 Why people participate in sports
Personal improvement
Release of tension or relaxation, sense of accomplishment, skill mastery, improved health and
fitness, other people’s respect for one’s athletic skill, release of aggression, enjoyment of risk taking,
personal growth, development of positive values, and sense of personal pride
Sport appreciation
Enjoyment of the game, sport competition, and thrill of victory
Social facilitation
Time spent with close friends or family and sense of being part of a group
Why people play sport Why people don’t play sport
Improve fitness/skill level No time/too busy
Make new friends Family/home/work commitments
Sense of belonging/peer pressure
Fun and enjoyment
Fame or money
Too competitive
Lack motivation or confidence
Cost – too expensive
4
Achievement of goals Physically unable
Source: George Milne, William Sutton, and Mark McDonald, “Niche Analysis: A
Strategic Measurement Tool for Managers,” Sport Marketing Quarterly, vol. 5, no. 3 (1996), 17–21.
Table 4.4 Segmentation of runners by motives
“I find running to be both relaxing and is the primary way along with a good diet that I keep
up my plan for good health and fitness.” – Female 50+ years old, 18 miles/week, 4 days
per week
“Running is a very important because I use running to relieve stress and to think about
what is bothering me. I use running to clear my head. Running is important to maintain
fitness and to counteract my poor diet of late.” – Male, < 25 years old, no mileage
reported.
Social competitors
“Running is one of the greatest joys of life. Keeps the body, mind, and spirit soaring. Running with
friends is special. Competition pushes me to new levels. Can travel to races and see new places. I
can share stories with runners from all over the world.” – Female, 25–39 years old, runs 40 miles per
week, 5 days/week
“I just recently started running 3 yrs ago. I used to weigh 317 lbs I’m now down to 245. Before I
leave work I change and go directly to a 1/2 mile track located on the way home. My running is very
important; it relieves a lot of stress and is something that is within my control. I have made many
acquaintances at the track. We all motivate each other. If someone misses one day everybody is
aware and concerned. That alone motivates you to keep going. Besides I am trying to get down to
199lbs.” – Male, 40–49, runs 24 miles/week, 6 days week
Actualized athletes
“I quit smoking at age 33, in 1978, and took up running and I will never stop running. I bike
& kayak but running is my first love. It makes me feel good about myself and it gave me a
lot of confidence. I’ve run many marathons in my past yrs and many races and you cannot
describe the feeling of accomplishment at the end. It gave me the confidence to go back to
school at the age of 40 and get a degree in nursing.” – Female, 50+ years old, runs 30 miles, 6
days/week
“I love to run. I’ve always been athletic and enjoyed team sports. But running is different. It’s a
solitary sport. It pits me against me. I’m 42 yrs old and I know I’ve yet to reach my potential as
a runner. My best yrs are behind me and I know I’ll never be world class but I still have room to
improve and I’ll keep trying, training, testing. It makes me fit, it makes me happy. I love to run.” –
Male, 40–49 years old, runs 35 miles/week, 5 days/week
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Devotees
“It is a big part of my life. It’s like brushing your teeth – it’s a gift I give myself every day or almost
everyday. It is who I am and I never want not to run. It’s the most wonderful total feeling in life. It
has made me grow in so many ways and also appreciate life so much more. You can do it anywhere
at any time – no expense.” – Male, 50+ years old, runs 38 miles/week, 6 days/week
“It’s part of who I am. Running is the most important free time activity I have besides spending time
with my kids. I’m a happier person when I get my running.” – Female, 25–39, runs 20 miles/week,
4 days/week
Source: Andrew J. Rohm, George R, Milne, and Mark McDonald, “A Mixed-Method Approach for
Developing Market Segmentation Typologies in the Sports Industry,” Sport Marketing Quarterly, 2006,
15, 29–39, © 2006 West Virginia University.
One popular theory of human motivation based on classification of needs is called

Maslow’s hierarchy of needs (see Figure 4.2). Maslow’s hierarchy of needs consists
of five levels. For video interpretation of Maslow’s hierarchy of needs see: http://
www.youtube.com/watch?v=zIvRITVgyKM. According to Maslow, the most basic,
primitive needs must be fulfilled before the individual can progress to the next level
of need. Once this higher level of need is satisfied, the individual is then motivated to
fulfill the next higher level of need. Let us look at the hierarchy of needs as it relates to
participation in sports.
The first and most basic level of needs in Maslow’s hierarchy are called physiological
needs. These are the biological needs that people have – to eat, drink, and meet
other physiological needs. For some individuals, there may be a physiological need
to exercise and have some level of activity. Once this lower order need is met,
safety needs are addressed. Safety needs are concerned with physical safety, as
well as the need to remain healthy. Sports equipment manufacturers address the
need participants have for physical safety. With respect to the need for health, many
Upper-Level Needs
Self-
actualization
needs
(self-development
and realization)
Esteem needs
(self-esteem, recognition, status)
Social needs
(sense of belonging, love)
Safety needs
(security, protection)
Physiological needs
(hunger, thirst)
Lower-Level Needs
Figure 4.2 Maslow’s hierarchy of needs

Source: A. H. Maslow, Motivation and Personality, 2nd ed. (New York: Harper and
Row, 1970). Reprinted with permission of Pearson Education, Inc., Upper Saddle
River, NJ.
148
participants cite that the primary reason for joining health clubs is to maintain or
improve their health.
The next need level is based on love and belonging. Many people choose to
participate in sport because of the social aspects involved. One of the early need
theories of motivation includes “play” as a primary social need.10 For some individuals,
sports participation is their only outlet for being part of a group and interacting with
others. The need to be part of a team and to be respected by teammates has been
demonstrated in a number of studies.
As these social needs are satisfied, esteem needs of recognition and status must
be addressed. Certainly, sport plays a major role in enhancing self-esteem and the
impact of sport participation on enhanced self-esteem has been well documented.
Bungee jumping provides an excellent illustration of how sport influences esteem. The
president of the U.S. Bungee Association (USBA), Casey Dale, describes the motives
of people who use risky activities as a self-image booster. “People are less satisfied
than they used to be with being pigeonholed by what they do, so they want to change
4
their self-image. A quick fix is to become this extreme, risk-taking individual. All of a
sudden, Bill the accountant goes bungee jumping off a 20-story bridge, and all of his
coworkers see him in a new light.”11
Finally, the highest order need, self-actualization, should be met. This refers to
the individual’s need to “be all that you can be” and is usually fulfilled through
Photo 4.4 Sports participants fulfilling the need for self-actualization

149
participation in mountain climbing, triathlons, or any sport that pushes an individual to
the utmost of his or her physical and mental capacities. For example, ultramarathons
in which runners compete in 100k road races certainly test the will of all participants.
Another example of self-actualization can be found in the amateur athlete who trains
his or her whole life for the Olympic Games.
As a sports marketer, you may be able to enhance strategies for increasing
participation if you identify and understand the needs of consumers. In some
instances, participation might fill more than one need level. Consumers may satisfy
physiological needs, safety needs, social needs, esteem needs, or possibly
self-actualization needs. For instance, marketing a health club membership might
appeal to consumers wanting to fulfill any of the need levels in the hierarchy. The
members’ physiological needs are being met through exercise. Safety needs might
be met by explaining that the club has state-of-the-art exercise equipment that is
designed to be safe for all ages and fitness levels. Social needs are addressed by
describing the club as a “home away from home” for many members. The need for
esteem for health club members might be easily satisfied by depicting how good they
will look and feel after working out. Finally, self-actualization needs may be fulfilled by
working out to achieve the ideal body.
The needs that have just been presented can be described in two ways: motive
direction and motive strength. Motive direction is the way that a consumer attempts
to reduce tension by either moving toward a positive goal or moving away from a
negative outcome. In the case of sports participation, an individual wants to get in
good physical condition and may move toward this goal by running, biking, lifting
weights, and so on. Likewise, this same individual may want to move away from
eating fatty foods and drinking alcohol.
Of particular interest to sports marketers is the strength of the sports participation
motive. Motivational strength is the degree to which an individual chooses to actively
pursue one goal over another. In sports marketing, the strength of a motive is
characterized in terms of sports involvement. Sports involvement is the perceived
interest in and personal importance of sports to an individual participating in a sport.12
Triathletes are an excellent example of an extreme level of sports involvement
because of the importance placed on training for events. In their study, Hill
and Robinson demonstrated that extreme involvement in a sport affects many
aspects of the athletes’ lives.13 Participation could have positive effects, such as
increased self-esteem, improved moods, and a better sense of overall wellness.
Conversely, high involvement in a sport (e.g., triathlon) may produce neglected
responsibilities of work, home, or family, and feelings of guilt, stress, and anxiety.
Said simply, extremely involved individuals frequently have a difficult time balancing
their lives.
Sports marketers are interested in involvement because it has been shown to be a
relatively good predictor of sports-related behaviors. For example, a study found that
level of involvement was positively related to the number of hours people participate
in sports, the likelihood of planning their day around a sporting event, and the use
of sports-related media (e.g., television, newspaper, or magazines).14 Knowledge of
sports involvement can help sports marketers develop strategies for both low- and
high-involvement groups of potential participants.
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Photo 4.5 The high involvement cyclist

Perception
Think for a moment about the image you have of the following sports: soccer,
hockey, and tennis. You might think of soccer as a sport that requires a great deal
of stamina and skill, hockey as a violent and aggressive sport, and tennis as a sport
for people who belong to country clubs. Ask two friends about their images of these
same sports, and you are likely to get two different responses. That is because each
of us has our own views of the world based on past experience, needs, wants, and
expectations.
Your image of sport results from being exposed to a lifetime of information. You talk
to friends and family about sports, you watch sports on television, and you listen to
sports on the radio. In addition, you may have participated in a variety of sports over
the course of your life. We selectively filter sports information based on our own view
of the world. Consumers process this information and use it in making decisions about
participation.
151
The process by which consumers gather information and then interpret that
information based on their own past experience is described as perception. Perception
is defined as the complex process of selecting, organizing, and interpreting stimuli such
as sports.15 Ultimately, our perception of the world around us influences participant
consumer behavior. The images that we hold of various sports and of ourselves dictate,
to some extent, what sports we participate in. One of the primary goals of sports
marketing is to shape your image of sports and sports products.
Before sports marketers can influence your perceptions, they must get your attention.
Selective attention describes a consumer’s focus on a specific marketing stimulus
based on personal needs and attitudes. For example, you are much more likely to pay
attention to advertisements for new golf clubs if you are thinking about purchasing a set.
Sports marketers fight with other sports and nonsports marketing stimuli for the
limited capacity that consumers have for processing information. One job of the sports
marketer is to capture the attention of the potential participant. But how is this done?
Typically, sports marketers capture our attention through the use of novel promotions,
using large and colorful promotional materials, and developing unique ways of
communicating with consumers.
While sports marketers attempt to influence our perceptions, each participant brings
a unique set of experiences, attitudes, and needs that affect the perceptual process.
Generally speaking, consumers perceive things in ways that are consistent with their
existing attitudes and values. This process is known as selective interpretation. For
example, those who have played hockey all their life may not see it as a dangerous
and violent sport, whereas others hold a different interpretation.
Ad 4.1 Wrangler® & Brett Farve

Source: Wrangler ®
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Finally, selective retention, or the tendency to remember only certain information,
is another of the influences on the perceptual process. Selective retention is
remembering just the things we want to remember. The hockey player does not
remember the injuries, the training, or the fights – only the victories.
Although sports marketers cannot control consumers’ perceptions, they can and do
influence our perceptions of sports through their marketing efforts. For example, a
sports marketer trying to increase volleyball participation in boys ages 8 to 12 must
first attempt to understand their perception of volleyball. Then the sports marketer
tries to find ways of capturing the attention of this group of consumers, who have
many competing sports and entertainment alternatives. Once they have the attention
of this group of potential participants, a marketing mix is designed to either reinforce
their perception of volleyball or change the existing image.
In addition to understanding these consumers’ images of volleyball, sports
marketers are also interested in other aspects of perception. For instance, how do
potential participants perceive advertisements and promotional materials about the
4
sport? What are the parents’ perceptions of volleyball? Do the parents perceive
volleyball to be costly? The answer to all these questions depends on our own
unique view of the world, which sports marketers attempt to understand and
shape.
Learning
Another psychological factor that affects our participation decisions is learning.
Learning is a relatively permanent change in response tendency due to the effects
of experience. These response tendencies can be either changes in behavior
(participation) or in how we perceive a particular sport. Consumers learn about and
gather information regarding participation in various sports in any number of ways.
Behavioral learning is concerned with how various stimuli (information about
sports) elicit certain responses (feelings or behaviors) within an individual. Cognitive
learning, however, is based on our ability to solve problems and use observation as
a form of learning. Finally, social learning is based on watching others and learning
from their actions. Let us look briefly at these three theories of learning as they apply
to sports participation.
Behavioral learning
One behavioral learning theory of importance to sports marketers is operant
conditioning. Conditioning teaches people to associate certain behaviors with certain
consequences of those behaviors. A simplified model of operant conditioning is
illustrated in Figure 4.3.
Let us illustrate the model of operant conditioning using participation in snowboarding.
We may decide to try snowboarding (specific behavior) as a new sport. Next and
unfortunately, our behavior is punished as we continually fall down, suffer social
embarrassment, and feel uncomfortably wet and cold. Finally, the likelihood of
Specific
Behavior is rewarded or punished Likelihood of that
behavior
behavior recurring
increases or decreases
Figure 4.3 Model of operant conditioning

153
Perception Activities Goal

Insight
of a goal to reach goal achieved
Figure 4.4 Model of cognitive learning
our engaging in this behavior in the future is decreased because of the negative
consequences of our earlier attempts at snowboarding. However, if we are rewarded
through the enjoyment of the sport and being with others, then we will continue to
snowboard more and more.
The theory of operant conditioning lies at the heart of loyalty to a sport. In other
words, if the sports we participate in meet our needs and reinforce them, then we will
continue to participate in those sports. The objective of the sports marketer is to try to
heighten the rewards associated with participating in any given sport and diminish any
negative consequences.
Cognitive learning
Although much of what we learn is based on our past experience, learning also takes
place through reasoning and thought processes. This approach to learning is known
as cognitive learning. Cognitive learning is best known as learning through problem
solving or insight, as shown in Figure 4.4.
Consider a goal that concerns some of us – weight loss. Once this goal is established,
consumers search for activities that allow them to achieve the goal. The activities
necessary to achieve weight loss might include dieting, participating in aerobics,
weight training, playing basketball, or jogging. When consumers finally realize what
specific activities they feel are necessary to achieve the desired goal, insight occurs.
Finally, and hopefully, the goal of weight loss is achieved.
By using the concept of cognitive learning, the first focus of sports marketers is to
understand the goals of potential consumers or participants. In addition, marketers
must make potential participants aware of how the sport or sports product will help
participants achieve their goals.
Social learning
Much of our learning takes place by watching how others are rewarded or
punished for their actions. This way of learning is called social learning. As children,
we watched our friends, family members, and our heroes participate in various
sports. To a large extent, this early observation and learning dictates the sports
in which we choose to participate later in life. In social learning, we not only see
someone benefiting from sport, but we also learn how to participate in the sport
ourselves.
Those individuals we choose to observe and the process of observation are
called models and modeling, respectively. The job of the sports marketer is to
present positive models and present sports in a positive light, so others will
perceive the benefits of sports participation. For example, Venus and Serena
Williams may be seen as role models for young African American athletes thinking
about participating in tennis, or Peyton Manning may be a model for young men
interested in football.
154
Attitudes
Because of the learning and perceptual processes, consumers develop attitudes toward
participating in sports. Attitudes are learned thoughts, feelings, and behaviors toward
some given object. What is your attitude toward participation in bowling? One positive
aspect of bowling is the chance to interact socially with other participants. However,
bowling does not burn a lot of calories and may be seen as expensive. Your overall
attitude toward bowling is made up of these positive and negative aspects of the sport.
Attitudes represent one of the most important components of the overall model of
sports participation because they ultimately guide the decision-making process. Our
attitudes are formed on the basis of an interaction between past experience and the
environment in which we live. A simple model of attitude formation or how attitudes
are developed is shown in Figure 4.5.
As the model of attitude formation suggests, an attitude is based on our thinking,
feeling, and actions toward a sport. These three components interact to form an
4
overall attitude. Let us look briefly at its three components: cognitive, affective, and
behavioral.
The cognitive component of attitude holds the beliefs that people have toward
the object. Beliefs can be either a statement of knowledge regarding bowling or
thoughts someone has toward bowling. They are neither right nor wrong and vary
from individual to individual. For example, here are some beliefs about participation in
bowling that consumers might hold:
X Bowling is expensive.
X Bowling is time consuming.
X Very few women bowl.
X Bowling is for old people. (Note: The largest participant group for bowling is 18- to
34-year-olds.)
Components
Cognitive
(beliefs about the sport)
Initial Input Final Output
Participation in any sport

Affective Overall
(e.g. running, bowling,
(feelings about the sport) attitude
roller hockey, skiing, golf)
Behavioral
(actions toward the sport)
Figure 4.5 Model of attitude formation

Source: Adapted from Del Hawkins, Roger Best, and Kenneth Coney. Consumer
Behavior: Building Marketing Strategy, 7th ed. (© 1998 The McGraw-Hill Companies,
Inc., New York)
155
The affective component of attitude is based on feelings or emotional reactions to
the initial stimulus. Most beliefs, such as the ones shown for cognitive attitude, have
a related affective evaluation. More recently, affects, or feelings, have taken a more
central role in explaining attitudes than beliefs or behaviors. In other words, some
people equate attitudes with feelings that are held toward an object.16 Here are some
potential affective statements:
X I hate bowling.
X Bowling is a boring sport.
The final component is called the behavioral component and is based on
participants’ actions. In other words, does the individual participate in bowling? How
often does the individual bowl? What are the individual’s behavioral intentions, or how
likely will he or she be to bowl in the future?
Generally, sports marketers must understand consumer attitudes to maintain or
increase participation in any given sport. Only after attitudes are assessed can
sports marketing strategies be formulated to improve upon or change existing
attitudes. In our previous example, bowling equipment manufacturers and bowling
alley management companies would need to change the beliefs that potential
participants have about bowling. Additional strategies may attempt to change potential
participants’ feelings about bowling by repositioning the sport’s current image. Finally,
marketers may get potential participants to try bowling, which could lead to possible
changes in their beliefs and feelings about the sport.
Sociological or external factors

Now that we have looked at the major internal or psychological factors that influence
participation decisions, let us turn our attention to the sociological factors. The
sociological or external factors are those influences outside the individual participant
that affect the decision-making process. The external factors are also referred to as
sociological because they include all aspects of society and interacting with others.
The external factors discussed in this chapter include culture, social class, reference
groups, and family.
Culture
Participating in sports and games is one of the most long-standing traditions
of civilization. Since the time of the ancient Greeks, participation in sports was
expected and highly valued.17 In the United States, sports are criticized for playing
too important a role in our society. Many detractors frown at public monies being
spent to finance private stadiums for professional athletics or institutions of higher
education spending more on a new coach than on a new president for the university.
As the accompanying article illustrates, other cultures are trying to emulate sports
participation patterns in the United States.
Culture is the set of learned values, beliefs, language, traditions, and symbols
shared by a people and passed down from generation to generation. One of the
most important aspects of this definition of culture includes the learning component.
Socialization occurs when we learn about the skills, knowledge, and attitudes
necessary for participating in sports. Sports marketers are interested in better
understanding how the consumer socialization process takes place and how they
might influence this process.
156
SPOTLIGHT ON INTERNATIONAL SPORTS MARKETING
Sport England
Mission Statement and individual empowerment at the

Sport England created a world- local level.
leading community sport In short, sport is a real positive –
environment, as part of the that’s why we need it to be more than
legacy of the 2012 Olympic and a minority interest in this country.
Paralympic Games. They are Unfortunately, the big numbers you
building a sporting infrastructure see in terms of economic and social
of clubs, coaches, programmes, contributions are not yet replicated
organizations and facilities that not
only encourages new participants
but also generates excellent sporting
in regular grassroots sports
participation, something we know we
must change.
4
experiences that retain those already The current number of adults
involved. If they succeed they will playing regular sport in England
deliver something that no Olympic is seven million, which represents
host nation has ever been able to 16.6% of the country. We have
do before – a lasting increase in increased that by over 700,000 since
grassroots participation. we won the Olympic bid, and it is
The establishment of a lifelong good that more people are playing
sporting culture in their country will more sport, but are clear that there is
change sport from a minority to a much more to do.
majority pastime. They believe this We have made steady progress
will have a broad impact. Health, during my first 12 months as chair
crime, social justice and enterprise of Sport England. Our new funding
and community agendas, to name strategy has invested in a wide range
but a few, will benefit at national and of projects, we have built stronger
local levels. relationships with national governing
Letter from Chair Richard Lewis bodies, and we have brought people
The sports sector accounts for from sporting and non-sporting
more than 2.3% of total consumer organisations together nationally and
spending, worth £17.74 billion. It locally.
employs 1.8% of England’s total Going forward, I want to provide
workforce, or 441,000 people. The stability for this organisation in
health benefits associated with what we recognise are challenging
sport and physical activity are well times, politically and economically.
documented, and it is no surprise that Our work is important – not just for
sport is increasingly viewed as a form its own sake, but for the broader
of preventative medicine by many in benefits it can deliver to the country,
primary care. communities and individuals alike.
We also see local engagement We are committed to delivering not
stimulated through sports just more people playing sport three
participation, enabling the times a week for thirty minutes, but
development of more cohesive, building a world-leading community
tolerant and inclusive communities, sport environment which retains its
which works well with the participants and helps those with
Government’s call for more collective talent to flourish.
157
The beneficiaries of such an there was no fraud or corruption

environment won’t just include those within this organisation and the
already immersed in sport, but also recognition that there had been a
those who are yet to discover its clear improvement in management
power. All of our work – the expertise and financial controls since April
we provide, advice we give, funds 2007. We are now acting on Dutton’s
we invest and relationships we recommendations.
build – is focused on delivering this In closing, I would like to thank
legacy. Such ambitious targets and my fellow Board Members for their
large levels of investment must be advice, expertise and commitment
accompanied by effective governance throughout the year. Thanks in
and accountability. The structures particular go to Sir Andrew Foster,
in all sports organisations must Ashia Hansen MBE, Philip Lemanski
provide high levels of confidence and and Dr Jack Rowell OBE who stood
assurance in their ability to handle down this year after completing their
public money and deliver value. fixed-term service.
I expect Sport England to also We now have just two years to go
display those standards. This is why, until the world comes to our country
last year, I asked Timothy Dutton to play sport. Let’s work hard to make
QC to investigate the World Class sure that more of us than ever before
Payments Bureau which operated are taking part, at every level, long
outside our usual financial controls after the last elite athlete has gone
between September 1999 and March home.
2007. While I was disappointed Richard Lewis Chair Sport England
this inquiry had to take place, I was
pleased to note its conclusions that Source: Courtesy Sport England.
A model of sports socialization is presented in Figure 4.6, which provides a framework

for understanding how children learn about sports. Although the sports socialization
process begins at increasingly younger ages, it extends throughout the life of the
individual. Sports marketers are interested in learning how the socialization process
differs on the basis of gender, income, family lifestyle, and the number of children in
the family.
Socializing agents also have a tremendous impact on the process. These factors
represent the direct and indirect influences on the children. Sports marketers are also
interested in understanding the relative impact of each socializing agent on a child’s
interest in participating in sports. For instance, is watching parents or professional
Background Socializing
Factors Agents Learning
Mechanisms Outcomes
Age Friends
Gender Family Conditioning Socialized
Income Parents Cognitive Consumer of sport
Lifestyle Teachers Social
Number of siblings Media
Figure 4.6 Model of consumer socialization

Source: John Mowen, Consumer Behavior, 3rd ed. (New York: Macmillan, 1993).
158
athletes a better predictor of sports participation among children? One study has
shown that children look to parents first, but if they are unacceptable or unwilling role
models, children turn to other people.18
The learning mechanisms of observation and reinforcement are just two ways that
facilitate the socialization process. As discussed earlier, observation refers to looking
to others as models for sports participation. For example, older siblings may serve as
models for sports participation at earlier ages, whereas friends may become a more
important learning mechanism as children age. Reinforcement may occur as children
receive praise for participation in sport from parents, coaches, and friends.
The final element in the socialization model is the emergence of a socialized sports
participant. Here, the child becomes actively engaged in sports participation. From
the sports marketer’s perspective, when children participate in sports at an early age,
they may have better potential to become lifelong participants. Certainly, sporting
goods manufacturers are interested in having children associate their brands with the
enjoyment of sport at the earliest possible age.
4
Aside from the learning that takes place during the socialization process, values
represent another important aspect of any culture. Values are widely held beliefs
that affirm what is desirable in a culture. Whereas American priorities are often found
with freedom, countries like Sweden are often more attuned to openness. America’s
main belief is rights for all through freedom, while Sweden’s main concern is with all
being accepted and resolving issues through other means such as working together
to come to a solution.19 Swedish citizens want to be able to have security and trust
in their country. Several of the core values that reflect U.S. culture are shown in
Table 4.5.
Some of the core American values listed in Table 4.5 have intimate ties to sports
participation in the United States. Obviously, the last value mentioned, fitness
and health, relates directly to our preoccupation with participating in sports. The
activity value has a direct impact on the way Americans spend their leisure time,
including sports participation. Likewise, achievement and success are a theme that is
continually underscored as consumers participate in sports.
Table 4.5 Core American values
Core American Value Descriptor

Achievement and success Sense of accomplishment
Activity Being active or involved
Efficiency and practicality Saves time and effort; solves problems
Progress Continuous improvement
Material comfort Money; status
Individualism Being themselves
Freedom Democratic beliefs
External conformity Adaptation to society
Humanitarianism Overcoming adversity; supporting
Charity Giving to others
Youthfulness Looking and acting young
Fitness and health Exercise and diet
Source: Leon Shiffman and Leslie Kanuk, Consumer Behavior, 5th ed. (Upper Saddle River, NJ:
Prentice Hall, 1994).
159
Although they are not directly related, other core U.S. values may tangentially affect
sports participation. For example, the value of individualism and being oneself
may manifest itself in the types of sports or activities in which we choose to
participate. Many sports, such as surfing, hang-gliding, climbing, and hiking, allow
a consumer to express his or her own personality. Youthfulness is also expressed
through participation in sport as consumers keep “young at heart” by staying active.
Consumers may also participate in sporting events to help raise money for charities.
One of the most visible charitable influences in sport today is developing breast
cancer awareness. Athletes in professional, collegiate, and even youth levels will often
be seen wearing pink gear to show their support for those fighting the disease.
Social class
Throughout history, people within various cultural systems have been grouped
together based on social class. Whether it is the “haves” versus the “have nots” or
the “upper class” versus the “lower class,” social class distinctions have always been
present. Social class is defined as the homogeneous division of people in a society
sharing similar values, lifestyles, and behaviors that can be hierarchically categorized.
Important to this definition is the idea that individuals are divided into homogeneous
classes, or strata. Typically, social strata are described in terms of a hierarchy ranging
from lower to upper class. Consumers are grouped into the various social classes
based on the interaction of a number of factors. Occupation, income, and education
are usually considered the three primary determinants of social class. In addition,
possessions (e.g., home and car) and affiliations (e.g., club membership, professional
organizations, and community organizations) are also believed to be important factors.
Although researchers agree that there are distinct social strata, there is little
agreement on how many categories there are in the hierarchy. For instance, some
researchers believe a seven-tiered structure (as illustrated in Figure 4.7) explains social
class in the United States. Others, however, believe in a simple two-tiered system
(i.e., upper and lower).
Regardless of the class structure, sports marketers are interested in social class as a
predictor of whether consumers will participate in sports and, if they do participate,
the types of sports in which consumers might participate. Table 4.6 shows the
relationship between average household income and participation in 22 selected
sports activities.
Other research has shown that more than one in four Americans would like to have
more time for leisure activities such as bowling and softball. A disproportionate
number of those people who want more leisure time are lower income, blue-collar
workers.20 In addition, the U.S. Fish and Wildlife Service found that anglers are above
average in income and are moderately well educated.21
Reference groups
Classic advertising slogans like “Be Like Mike, and “Witness” illustrate the power
of reference group influence. More formally, reference groups are individuals who
influence the information, attitudes, and behaviors of other group members. Sports
participation is heavily influenced through the various reference groups to which an
individual may belong. In these classic advertising campaigns hordes of children have
identified with and created an association between athletes, representing a wide array
of sports, and their respective sport products.
160
Upper Americans
Upper-Upper (0.3%): The “capital S society” world of inherited wealth
Lower-Upper (1.2%): The newer social elite, drawn from current professionals
Upper-Middle (12.5%): The rest of college graduate managers and professionals;
lifestyle centers on private clubs, causes, and the arts
Middle Americans
INCOME
Middle Class (32%): Average pay white-collar workers and their blue-collar
friends; live on “the better side of town,” try to “do the proper things”
Working Class (38%): Average pay blue-collar workers; lead “working-class lifestyle”
whatever the income, school, background, and job
Lower Americans 4
A Lower Group of People, but Not the Lowest (9%): Working, not on welfare;
living standard is just poverty; behavior judged “crude,” “trashy”
Real Lower-Lower (7%): On welfare, visibly poverty stricken, usually out of
work (or have “the dirtiest jobs”); “bums,” “common criminals”
Figure 4.7 The structure of social class

Source: Richard P. Coleman, “The Continuing Significance of Social Class to
Marketing,” Journal of Consumer Research, vol. 10 (December 1983), 265–280.
Table 4.6 Household incomes for select sports and activities
Activity Household Income Activity Household Income

(in thousands) (in thousands)
Basketball $58 Roller hockey $73
Bowling $60 Running/jogging $63
BMX bicycling $49 Sailing $82
Day hiking $66 Saltwater fishing $64
Downhill skiing $83 Snorkeling $83
Fitness bicycling $71 Snowboarding $63
Fitness swimming $69 Soccer $59
Fitness walking $66 Surfing $74
Football(tackle) $54 Tennis $68
Golf $80 Tent camping $58
Horseback riding $65 Yoga/tai chi $68
Source: Sports & Fitness Industry Association, www.sfia.org.
These types of reference groups, which have an impact on our participation in

sports as well as on our purchase of sports products, are called aspirational groups.
Although many famous athletes recognize the influence they can have on children,
others refuse to accept the responsibility that reference groups can influence
consumer demands (e.g., the now-retired Charles Barkley of the NBA stating, “I am
not a role model”).
161
TheBabe: Babe Didrikson Zaharias
Mildred “Babe” Didrikson Zaharias won by an American. In 1949, she

was known by sports fans all over as was one of the founding members of
the “best at everything.” Her early the LPGA.
success as an all-around athlete In addition to her impressive
began as she played on basketball, athletic achievements, Babe was
softball, and track and field teams, the consummate sports promoter
named the Golden Cyclones, and marketer. For example,
sponsored by the Employers she participated in publicity
Casualty Insurance Company. Babe stunts such as harness racing
represented the Golden Cyclones and pitched against New York
by herself in the 1932 Olympic track Yankee Joe DiMaggio. She published
and field qualifying trials and entered a book of golfing tips, had her own
eight of the 10 events. She ended up line of golf clubs through Spalding
winning six of the events, and her Sporting Goods, and appeared
legend was born. As an amateur, in movies such as the classic Pat
Babe won two gold medals and and Mike. Through her example
one silver in track and field events and performance, Babe Didrikson
at the 1932 Olympics. She began Zaharias legitimized women’s sports.
a professional career that included Her excellence in so many sports
stints in basketball, baseball, boxing, made her a marketer’s dream. Just
football, and hockey. Didrikson’s imagine her today.
most impressive sport of all,
however, was golf. Returning to Source: Elizabeth Lynn, Babe Didrikson
amateur status in golf, Babe ran up Zaharias: Champion Athlete (New York,
an unprecedented 17 straight wins, Chelsea House, 1989).
including a victory in the 1947 British
Women’s Amateur – never before
Celebrity athletes are not the only individuals who have an impact on sports
participation. Friends and coworkers are also considered a primary reference group
because of the frequent contact we have with these individuals and the power they
have to influence our decisions. Many of us participate in sports because friends and
coworkers urged us to join their team, play a set of tennis, or hit the links. Primary
reference groups may exert a powerful influence among high-school athletes as
participation continues to grow at this level.
Family
Another primary reference group that has one of the greatest influences on sports
participation is the family. As you might guess, family plays a considerable role
because sports marketers target families as spectators. But how does family
influence affect participation in sport? Consider families of friends or your own
family. It is common for family members to exert a great deal of influence on one
another with respect to decisions about sports participation and activities. For
example, children may either directly or indirectly get parents involved in a sport
162
Photo 4.6 Girls’ sport participation is eroding traditional gender roles

(e.g., in-line skating, soccer, or biking) so the entire family can participate together.
Conversely, parents may urge their kids to get off the couch and get involved in
sports.
Traditionally, fathers have had the greatest impact on their children’s (mostly
their sons) sports participation. Dad might have encouraged junior to play
organized football because he did or go fishing because his father took him
fishing. Of course, these scenarios are vanishing, as is the traditional family
structure.
Long gone are the days of the mom, dad, two kids, and a dog. Long gone is the Leave
it to Beaver mentality where fathers are breadwinners and mothers are homemakers.
Today’s modern family structure typically includes dual-income families with no kids,
divorced parents, single parents, or parents who are dually employed with kids.
163
Each of these modern family structures may influence participation in sports for both
adults and children. For instance, dual-income families with no kids may have the time
and the money to participate in a variety of “country club” sports. However, single or
divorced parents may face time and financial constraints. Sports products such as the
“10-minute workout” and 30-minute aerobic classes are targeted to working moms on
the move. In addition, the tremendous increase in sales of home exercise equipment
may be traced back to the constraints of the modern family structure.
HIGH SCHOOL SPORTS PARTICIPATION TOPS 7.6 MILLION,

SETS RECORD
INDIANAPOLIS, IN (September Based on the survey, 55.1 percent
8, 2010) – Participation in high of students enrolled in high schools
school sports increased for the participate in athletics, which
21st consecutive school year in 2009– emphasizes and reinforces the idea
10, eclipsing the 7.6 million mark for that high school sports continue to
the first time. have a significant role in student
Based on figures from the 50 involvement in schools across the
state high school athletic/activity country.
associations, plus the District of Outdoor track and field
Columbia, that are members of gained the most combined
the National Federation of State participants in 2009–10, with an
High School Associations (NFHS), increase of 25,561 participants,
participation for the 2009–10 school followed by soccer with 19,597
year reached a record-breaking total combined participants and cross
of 7,628,377 participants, according country (11,925). In girls sports,
to the 2009–10 High School Athletics soccer gained the most participants
Participation Survey conducted by (11,582), followed by outdoor track
the NFHS. and field (11,445) and fast-pitch
Boys and girls participation figures softball (9,290). Outdoor track and
also reached respective all-time highs field led the way in boys sports
with 4,455,740 boys and 3,172,637 with 14,116 additional participants,
girls participating in 2009–10. Boys followed by cross country (8,156) and
participation increased by 33,078 this soccer (8,015).
year, while the girls figure increased The top participatory sports for
by 58,546. boys remained the same from
“It is a significant achievement for 2008–09: 11-player football led the
our member state associations that way with 1,109,278 participants,
in these difficult economic times, followed by outdoor track and field
student participation increased for (572,123), basketball (540,207),
the 21stconsecutive year,” said NFHS baseball (472,644), soccer (391,839),
Executive Director Bob Gardner. wrestling (272,890), cross country
“This reinforces the values that high (239,608), tennis (162,755), golf
school sports provide as part of (157,756), and swimming and diving
the education of our students. The (131,376).
NFHS actively promotes participation Outdoor track and field continued
in, and support for, the programs to be the leading sport for girls with
throughout the nation.” 469,177 participants. Second was
164
basketball (439,550), followed by was second with 771,465, followed by

volleyball (403,985), fast-pitch softball New York (379,677), Illinois (344,257),
(378,211), soccer (356,116), cross Ohio (334,797), Pennsylvania
country (201,968), tennis (182,395), (317,426), Michigan (313,818), New
swimming and diving (158,419), Jersey (253,097), Florida (247,428) and
competitive spirit squads (123,644) Minnesota (230,043).
and golf (70,872). The participation survey has been
The top 10 states based on compiled since 1971 by the NFHS
combined participation also remained through numbers it receives from its
the same from last year’s survey. member associations. The complete
Texas led the way with a combined 2009–10 Sports Participation Survey
total of 780,721 participants. California is available here.
10 MOST POPULAR BOYS PROGRAMS 4

Schools Participants
1. Basketball 17,969 1. Football – 11-Player 1,109,278
2. Track and Field – Outdoor 16,011 2. Track and Field – Outdoor 572,123
3. Baseball 15,786 3. Basketball 540,207
4. Football – 11-Player 14,226 4. Baseball 472,644
5. Cross Country 13,942 5. Soccer 391,839
6. Golf 13,693 6. Wrestling 272,890
7. Soccer 11,375 7. Cross Country 239,608
8. Wrestling 10,363 8. Tennis 162,755
9. Tennis 9,916 9. Golf 157,756
10. Swimming and Diving 6,820 10. Swimming and Diving 131,376
10 MOST POPULAR GIRLS

PROGRAMS
Schools Participants
1. Basketball 17,711 1. Track and Field – Outdoor 469,177
2. Track and Field – Outdoor 15,923 2. Basketball 439,550
3. Volleyball 15,382 3. Volleyball 403,985
4. Softball – Fast Pitch 15,298 4. Softball – Fast Pitch 378,211
5. Cross Country 13,809 5. Soccer 356,116
6. Soccer 10,901 6. Cross Country 201,968
7. Tennis 10,166 7. Tennis 182,395
8. Golf 9,651 8. Swimming and Diving 158,419
9. Swimming and Diving 7,171 9. Competitive Spirit Squads 123,644
10. Competitive Spirit Squads 4,879 10. Golf 70,872
This press release was written by graduate of Elon (North Carolina)

Lauren Fellmeth, a fall intern in the University.
NFHS Publications/Communications
Department and a recent Source: http://www.nfhs.org/content.
aspx?id=3282.
165
Children’s ability to participate in organized sport may also be hampered by the
single-parent family, although women are increasingly taking on the traditional
male sex role of coach, sports participant, and sports enthusiast. Also, fathers are
increasingly encouraging daughters to participate in sport, another sign of changing
sex roles.
Situational factors
Now that we have looked at how the psychological and sociological factors
influence the participant decision-making process, let us turn to the situational factors.
Unlike the psychological and sociological factors that are relatively permanent in
nature, the situational factors are temporary aspects that affect participation. For
instance, the culture in which we make our participation decision is considered a
long-term environmental factor. Likewise, personality is a set of consistent responses
that we make to our environment. However, situational factors are those temporary
factors within a particular time or place that influence the participation decision-making
process.22
Consider the following examples of situational influences on participant behavior.
Your best friend is in town and, although you do not normally enjoy golfing, you do
so anyway to spend time with your friend. You typically run five miles per day, but an
unexpected ice storm puts a halt to your daily exercise routine. You have to study for
final exams, so you settle for a 30-minute workout versus your normal 75 minutes.
Each of these examples represents a different type of situational influence on
participant decision making.
Consumer researchers have identified five situational influences that affect decision
making. The five primary types of situational influences include physical surroundings;
social surroundings; time; reason for participation, or task definition; and antecedent
states. Let us briefly look at each in the context of participant decision making.
Physical surroundings
The location, weather, and physical aspects of the participation environment comprise
the physical surroundings. In sports participation, the physical surroundings play
an extremely important role in decision making. When the weather outside is good,
people who might not participate in sports normally do so. Likewise, the weather can
have a situational influence on where we choose to participate. The runner described
in the earlier example may decide to jog indoors rather than skip the workout. In
addition to the weather, location might influence our decision to participate. For
example, nonskiers may be tempted to try skiing if they are attending a sales
conference in Vail or Aspen. Other aspects of the physical environment, such as a
perfectly groomed championship golf course or scenic biking trail, can also influence
our participation decisions in a positive manner. From the perspective of the sports
marketer, any attempt to increase participation must carefully consider the physical
surroundings. Even the worst athletes in the world enjoy playing in nice facilities.
Social surroundings
The effect of other people on a participant during participation in a sport is another
situational influence, called social surroundings. In other words, who we are with
may have a positive or negative impact on participation decisions. The earlier golf
example presented a case where the presence of a friend caused the person to
166
participate. Likewise, golfing in the presence of unfamiliar coworkers at a corporate
outing can be an unpleasant and intimidating experience. In this case, participation
might be avoided altogether.
Crowds represent another social situation that is usually avoided. For example, if the
tennis courts or golf courses are full, you might decide to participate in another sport
that day. Biking and hiking represent two other activities where crowds are usually
perceived to have a negative impact on participation. In other words, people generally
do not like to bike or hike in large crowds. However, some people may take pleasure
when participating among large crowds. Consider, for example, runners who feel
motivated when participating in events with thousands of other runners.
Time
The effect of the presence or absence of time is the third type of situational influence.
In today’s society, there are increasing time pressures on all of us. Changes in family
structure, giving rise to dual-income families and single parents, have made time for
4
participation in sports even scarcer. Slightly more than half of all U.S. residents under
the age of 50 complain of a lack of leisure time, and this percentage is even higher for
dual-income families. How many times have you heard someone say, “I don’t have
the time to work out today”?
Because of time constraints, sports marketers are concentrating on ways to make our
participation activities more enjoyable and more time effective. For example, few of us
can afford to take five hours out of our day to enjoy 18 holes of golf. As such, golfing
associations are always communicating ways to speed up play. Similarly, few of us
feel that we have the time to drive to the gym each day. The marketers’ response to
this was the development of the shorter, higher intensity workout (see accompanying
article) and the enormous home health equipment industry.
Photo 4.7 Marathon

167
P90X VS. INSANITY: WHICH IS THE BEST FOR YOU?

Each New Year brings about a periodization achieved through
wave of new fitness resolutions switching the order of exercises
along with a surge of new gym and incorporating new and varied
memberships. Lately a growing movements. Muscle confusion
number of people have been bucking supposedly prevents the body from
tradition and ditching the cold walk adapting to exercises over time,
to the gym in favor of at-home fitness resulting in continual improvement
programs. without plateaus. The program
Two of the most popular video provides a great all-around workout
series on the market right now are with exercises that are easy to
P90X and Insanity. Their infomercials execute.
are plastered over late night TV The Insanity workouts are shorter
claiming to provide killer workouts than P90X workouts, typically lasting
and stunning results, all from the only 45 minutes. Each section is
comfort of home. Each workout broken into three to four minutes
regimen comes packed as a set of of intense exercise followed by
DVDs with a predetermined workout 30 seconds of rest. This may not
plan and nutritional advice. Just sound like much, but the intense
follow the instructions to a new and nature of the exercise provides
improved you. maximum impact in a minimal
Now the only obstacle standing in amount of time. The fast pace and
the way of a killer bod is choosing constant rotation of exercises helps
which program is right for you. Both make the 45 minutes fly by. While
programs have significant hype and the main emphasis of the program
loyal followers, so I have objectively is cardio, many of the routines are
analyzed the two, so you can decide designed to incorporate core and
which one is the right fit. upper body strengthening. Although
Despite similar structure there it’s hard to tell while you’re in the
are significant differences between middle of it, each session provides a
P90X and Insanity. Insanity is a full body workout.
cardio-intense workout plan that Each program has its pros and
utilizes interval training to get you the cons, and choosing the best fit
“best workout of your life” whereas for you depends on what you’re
P90X is a program that incorporates looking for in a workout experience.
cardio but focuses more on strength Insanity is less of a time commitment
training, using dumbbells, pull-ups, than P90X and also requires less
and your own body weight to provide equipment. It would be an ideal fit for
the resistance needed to build muscle anyone with a busy schedule or lack
and burn calories. of space and resources. However,
P90X is a ninety-day workout the workouts require a lot of jumping
regimen that claims it can and other exercises that are tough
significantly improve fitness in on knees and joints. P90X is easier
three months through intense to modify for those just beginning
physical training. P90X’s advertising to get back in shape or those with
emphasizes “muscle confusion,” bad joints or old injuries. P90X also
a method of cross training and has a stronger emphasis on strength
168
exercises and muscle building while No matter what workout trend you
Insanity is better for cardiovascular decide to embrace and subsequently
endurance and power. Those looking complain about, with the proper
to bulk up and increase muscle planning and commitment you’ll be
mass might be happier with P90X jacked in no time.
while anyone looking to burn fat or
increase cardiovascular endurance Source: Rebecca Anderson, Sports &
would like Insanity. At the end of the Fitness, http://weekly.blog.gustavus.
day it’s all about personal preference edu/2013/02/22/p90x-vs-insanity-which-is-
the-best-for-you/.
and ability.
Reason for participation or task definition 4

Another situational influence, task definition, refers to the reasons that occasion the
need for consumers to participate in a sport. In other words, the reason the consumer
participates affects the decision-making process. Some participants may use jet
skis or scuba dive once a year while they are on vacation. Other consumers may
participate in a fantasy baseball camp once in a lifetime.
These examples represent special occasions or situational reasons for participating.
Moreover, the participation occasion may dictate the sports apparel and equipment we
choose. For example, a consumer participating in a competitive softball league
might wear cleats, long softball pants, and batting gloves. However, the recreational
participant playing softball at the company picnic would only bring a glove.
Antecedent states
Temporary physiological and mood states that a consumer brings to the participant
situation are antecedent states. In certain situations, people may feel worn out and
lack energy. This physiological state may motivate some people to work out and
become reenergized at the end of a long day of work. However, feeling tired can elicit
another response in others, such as “I’m too tired to do anything today.” Promotion
to combat these negative antecedent states can be seen in the following link which
was the Union of European Football Association “Get Active Campaign,” http://www.
youtube.com/watch?v=AY5AILaXDdA&feature=fvw.
Certainly, other situational mood states, such as being “stressed out,” can activate
the need to participate in sports or exercise. Yet feeling tired or hungry can cause us
to decide against participation. At the very least, our mood can influence our decision
to ride or walk 18 holes of golf.
It is important to remember that antecedent means “prior to” or “before.” Therefore,
the mood or physiological condition influences our decision making. For example,
people who are experiencing bad moods may turn to sports to lift their spirits.
Contrast this with those who feel great because they have just participated in a
sporting event.
169
Summary decision-making process. These

psychological factors include personality,
The focus of Chapter 4 is on
motivation, perception, learning,
understanding the sports participant as a
and attitudes. Personality is a set of
consumer of sports. Sports marketers are
consistent responses we make to our
not only concerned with consumers who
environment. Our personality can play
watch sporting events, but also with the
a role in which sports we choose to
millions of consumers who participate
participate in or whether we participate
in a variety of sports. To successfully
in any sports. For example, an aggressive
market to sports participants, sports
personality type may be most likely
marketers must understand everything
to participate in boxing or hockey.
they can about these consumers and
Motivation is the reason we participate
their consumption behaviors. Participant
in sports. Some of the more common
consumption behavior is defined as the
reasons we participate in sports are for
actions performed when searching for,
personal improvement, appreciation of
participating in, and evaluating the sports
sport, or social facilitation. The strength
activities that consumers believe will
of our motives to participate in sports
satisfy their needs.
is referred to as sport involvement.
To simplify the complex nature of Another important psychological factor
participant consumption behavior, a that influences our participation decisions
model was developed. The model is perception. Perception influences
of participant consumption behavior our image of the various sports and
consists of four major components: the their participants as well as shaping our
participant decision-making process, attitudes toward sports participation.
internal or psychological factors, external Learning also affects our participant
or sociological factors, and situational behavior. We learn whether to participate
variables. The participant decision- in sports because we are rewarded or
making process is the central focus of punished by our participation (behavioral
the model of participant consumption theories), because we perceive sports
behavior. It explains how consumers as a way to achieve our goals (cognitive
make decisions about whether to theories), and because we watch others
participate in sports and in which sports participating (social theories). A final
to participate. The decision-making internal or psychological factor that
process is slightly different for each of directly influences our sports participation
us and is influenced by a host of factors. decisions is attitudes. Attitudes are
However, the basis of the decision- defined as learned thoughts, feelings,
making process is a five-step procedure and behaviors toward some given object
that consumers progress through as they (in this case, sports participation). Our
make decisions. These five steps include feelings (affective component of attitude)
problem recognition, information search, and beliefs (cognitive component) about
evaluation of alternatives, participation, sports participation certainly play a major
and postparticipation evaluation. The role in determining our participation
complexity of this process is highly (behavioral component).
dependent on how important the
The external or sociological factors also
decision is to participants and how much
influence the participant decision-making
experience consumers have had making
process. These factors include culture,
similar decisions.
social class, reference groups, and
The internal or psychological factors are family. Culture is defined as the learned
those things that influence our values, beliefs, language, traditions, and
170
symbols shared by people and passed participate in a variety of recreational
down from generation to generation. The sports and activities. One reference
values held by people within a society group that has a great deal of influence
are a most important determinant of over our attitudes and participation
culture. Some of the core American behavior is our family.
values that influence participation in The final component of the model
sports include achievement and success, of participant behavior is situational
activity, individualism, youthfulness, factors. Every decision that we make
and fitness and health. Social class to participate in a given activity has a
is another important determinant of situational component. In other words,
participant decision making. Most we are always making a decision in
people erroneously associate social the context of some unique situation.
class only with income. Our social Five major situational influences that
class is also determined by occupation,
education, and affiliations. Another
affect participant decision making
include physical surroundings (physical
4
important sociological factor is the environment), social surroundings
influence of reference groups. Reference (interaction with others), time (presence
groups are individuals who influence the or absence of time), task definition
information, attitudes, and behaviors (reason or occasion for participation), and
of other group members. For example, antecedent states (physiological condition
our friends may affect our decision to or mood prior to participation).
Key terms X habitual problem X primary reference

solving (or routinized group
X affective component problem solving) X problem recognition
X antecedent states X information search X psychological or
X attitudes X internal sources internal factors
X behavioral component X learning X reference groups
X behavioral learning X limited problem X safety needs
X cognitive component solving X selective attention
X cognitive dissonance X love and belonging X selective
X cognitive learning X marketing sources interpretation
X consumer socialization X Maslow’s hierarchy of X selective
X culture needs retention
X decision-making X model of participant X self-actualization
process consumption behavior X situational factors
X esteem X motivation X social class
X evaluation of X participant behavior X socialization
alternatives X participant X social learning
X evaluative criteria consumption behavior X socializing agents
X evoked set X perceived risk X social surroundings
X experiential source X perception X sociological or external
X extensive problem X personality factors
solving (or extended X personal sources X sports involvement
problem solving) X physical surroundings X task definition
X external sources X physiological needs X time
X family influence X postparticipation X values
evaluation
171
Review questions 10. Define culture and explain the

process of sports socialization.
1. Define participant consumption Describe the core American values.
behavior. What questions does this 11. Define social class and explain the
address with respect to consumers characteristics of individuals at each
of sport? From a marketing strategy level of the seven-tiered structure.
perspective, why is it critical to 12. Explain how reference groups play a
understand consumer behavior? role in sports participation.
2. Outline the components of the 13. Discuss the traditional family
simplified model of participant structure and then the nontraditional
consumer behavior. family structure. How do today’s
3. Outline the steps in the nontraditional families influence
decision-making process for sports sports participation? Is this for the
participation. What are the three better or the worse?
types/levels of consumer decision 14. Explain each of the five situational
making? How do the steps in the factors that influence the participant
decision-making process differ for decision-making process.
routine decisions versus extensive
decisions? Exercises
4. Define personality. Why is it
considered one of the internal 1. Trace the simplified model of
factors of consumption behavior? participant behavior for a consumer
Do you think personality is related to thinking about joining a health club.
the decision to participate in sports? Briefly comment on each element of
Do you think personality is linked the model.
to the specific sports we choose to 2. Ask three males and three females
play? about the benefits they seek
5. Describe Maslow’s hierarchy of when participating in sports. What
needs. How is Maslow’s theory conclusions can you draw regarding
linked to sports marketing? motivation? Are there large gender
6. What is meant by the term sports differences in the benefits sought?
involvement from the perspective of 3. Interview five adult sports
sports participants? How is sports participants and ask them to describe
involvement measured and used in the sports socialization process as it
the development of the strategic relates to their personal experience.
marketing process? Attempt to interview people
7. Define perception and provide three with different sports interests to
examples of how the perceptual determine whether the socialization
processes apply to sports marketing. process differs according to the
8. Describe the three major learning specific sports.
theories. Which learning theory do 4. Watch three advertisements for any
you believe best explains the sports sporting goods on television. Briefly
in which we choose to participate? describe the advertisement and
Why is learning theory important to then suggest which core American
sports marketers? value(s) are reflected in the theme of
9. Describe the three components of the advertisement.
attitude. How do these components 5. Develop a survey instrument to
work together? Why must attitudes measure attitudes toward jogging.
be measured to increase sports Have 10 people complete the survey
participation? and then report your findings. How
172
could these findings be used by Sixteen Personality Factors Questionnaire
your local running club to increase (Champaign, IL: Institute for Personality and
Ability Testing, 1970).
membership (suggest specific 5 Douglas M. Turco, “The X Factor: Marketing
strategies)? Are attitudes and Sport to Generation X,” Sport Marketing
behaviors related? Quarterly, vol. 5, no. 1 (1996), 21–23.
6. Interview five children (between the 6 Terry Lefton and Bernhard Warner, “Alt
Sportspeak: A Flatliner’s Guide,” Brandweek
ages of eight and 12) to determine (January 27, 1997), 25–27.
what role the family and other 7 Mark A. McDonald, George R. Milne, and
reference group influences have JinBae Hong, “Motivational Factors for
had on their decision to participate Evaluating Sport Spectator and Participant
Markets,” Sport Marketing Quarterly, vol. 11
in sports. Suggest promotions for (2002), 100–113.
children based on your findings. 8 Steve Jennison, “Pride, Passion, and
7. Prepare a report that describes Participation: A Strategy for Sport and
how time pressures are influencing
sports participation in the United
Active Recreation in Hull 2008–2013,” Sport
England, The Humber Sports Partnership,
and Hull City Council, Hull (2008).
4
States. How are sports marketers 9 Andrew J. Rohm, George R. Milne, and Mark
responding to increasing time A. McDonald, “A Mixed-Method Approach
pressures? for Developing Market Segmentation
Typologies in the Sports Industry,” Sport
Marketing Quarterly, vol. 15 (2006), 29–39.
Internet exercises 10 Henry Murray, Exploration in Personality: A
Clinical and Experimental Study of Fifty Men
1. Using the World Wide Web, prepare of College Age (New York: Oxford University
a report that examines sport Press, 1938).
11 Rebecca P. Heath, “You Can Buy a Thrill:
participation in Australia. What are Chasing the Ultimate Rush,” American
the similarities and differences in Demographics, vol. 19, no. 6 (1997), 47–51.
the sports culture of Australia versus Available from: www.demographics.com/
that of the United States? publications/ad/9 7_ad/9706_ad/ad970631.
htm.
2. Find and describe two sports Web 12 Fred M. Beasley and Matthew D. Shank,
sites that specifically appeal to “Fan or Fanatic: Refining a Measure of
children. How does this information Sports Involvement,” Journal of Sport
relate to the process of consumer Behavior, vol. 21, no. 4 (1998), 435–443.
13 Ronald Paul Hill and Harold Robinson,
socialization? “Fanatic Consumer Behavior: Athletics as
3. Find and describe a Web site a Consumption Experience,” Psychology &
for a health club. How does the Marketing, vol. 8, no. 2, (1991), 79–99.
information relate to the consumer 14 Fred M. Beasley and Matthew D. Shank,
“Fan or Fanatic: Refining a Measure of
decision-making process to join the Sports Involvement,” Journal of Sport
club? Behavior, vol. 21, no. 4, (1998), 435–443.
15 Robert Sekuler and Randolph Blake,
Endnotes Perception, 2nd ed. (New York: McGraw-Hill,
1990).
1 Del Hawkins, Roger Best, and Kenneth 16 John Kim, Jeen-Su Lim, and Mukesh
Coney, Consumer Behavior: Building Bhargava, “The Role of Affect in Attitude
Marketing Strategy, 7th ed. (New York: Formation: A Classical Conditioning
McGraw-Hill, 1998). Approach,” Journal of the Academy of
2 Ian P. Murphy, “Bowling Industry Rolls Out Marketing Science, vol. 26, no. 2 (1998),
Unified Marketing Plan,” Marketing News 143–152.
(January 20, 1997), 2. 17 Harry Edwards, The Sociology of Sport
3 Del Hawkins, Roger Best, and Kenneth (Homewood, IL: Dorsey Press, 1973).
Coney, Consumer Behavior: Building 18 Elizabeth Moore-Shay and Britto Berchmans,
Marketing Strategy, 7th ed. (New York: “The Role of the Family Environment in
McGraw-Hill, 1998). the Development of Shared Consumption
4 Raymond B. Cattell, Herbert W. Eber, and Values: An Intergenerational Study,” in
Maurice M. Tasuoka, Handbook for the Advances in Consumer Research, vol.
173
23. Kim Corfman and John G. Lunch, Jr., 21 Diane Crispell, “Targeting Hunters,”
eds. (Provo, UT: Association for Consumer American Demographics, vol. 16, no.
Research, 1996), 484–490. 1 (1994), 94. Available from: www.
19 Kristy Meyer, “Core American Values demographics.com/ publications/ad /94_
Incorporated into Everyday Life,” Content. ad/9401_ad/ad508.htm.
com (March 30, 2009). 22 Russell Belk, “Situational Variables and
20 “Something to Wish for: Time to Relax,” Consumer Behavior,” Journal of Consumer
US News and World Report (November 11, Research, vol. 2, no. 3 (1975), 157–163.
1996), 17.
174
CHAPTER 5
Understanding spectators
as consumers
• Understand the similarities and differences between spectator and
participant markets.
• Describe the eight basic fan motivation factors.
• Explain how game attractiveness, economic factors, and
competitive factors relate to game attendance.
• Describe the demographic profile of spectators and explain the
changing role of women as spectators.
• Understand the relationship between stadium factors and game
attendance.
• Discuss the components of the sportscape model.
• Describe the multiple values of sport to the community.
• Explain sport involvement from a spectator’s perspective.
• Discuss the model of fan identification.
5 Understanding spectators as consumers
In Chapter 4, we examined participants as consumers. This chapter examines
another group of consumers of great importance to sports marketers – spectators.
Before we turn to our discussion of spectator consumption, two key points need
to be addressed. First, the model of participant consumption behavior discussed in
Chapter 4 can also be applied to spectator consumption. Think for a moment about
your decision to attend sporting events. Certainly, there are sociological factors
that influence your decision. For instance, reference groups such as friends and
family may play a major role in influencing your decision to attend sporting events.
Psychological factors, such as personality, perception, and attitudes, also affect
your decision to attend sporting events or which sporting events to attend. For
example, the more ambitious and aspiring you are, the more likely you may be to
attend sporting events. In addition, situational factors can affect your decision to
attend sporting events. Maybe you were given tickets to the game as a birthday gift
(e.g., task definition).
As you can see, the factors that influence participant decision making are also
applicable to spectator decisions. However, the focus of this chapter is to understand
why people attend sporting events and to examine what additional factors relate
to game attendance. Rather than using the framework for participant consumption
behavior, however, we concentrate on the wants and needs of spectators.
Understanding the consumer’s needs and wants, in turn, is important when
developing an effective marketing mix for spectators.
Photo 5.1 Soccer crowd. Group of happy Brazilian soccer fans commemorating
victory, with the flag of Brazil swinging in the air
176
Pro
basketball
Golf spectators
spectators
Basketball
Golf participants
participants
(a) (b)
NASCAR Running
spectators participants
NASCAR
participants
Running
spectators 5
(c) (d)
Figure 5.1 Relationship between spectator and participant markets
The second key point addresses the basis for considering spectators and participants
as two separate markets. Many people who watch and attend sporting events also
participate in sports and vice versa. For example, you may watch March Madness
and also play basketball on a recreational basis. Research has shown, however, that
two different consumer segments exist.1 In fact, marketing to “either participants or
spectators would miss a large proportion of the other group.” Let us look at Figure 5.1
to illustrate the differences between spectators and participants.
Each diagram in Figure 5.1 depicts the potential relationship between spectator
and consumer markets for golf, basketball, NASCAR, and running. Golf (see Figure
5.1a) represents a sport in which there is a large crossover between participants and
spectators. A study conducted by Milne, Sutton, and McDonald supports this notion,
finding that 84 percent of the golf participant market overlaps the golf spectator
market.2 In another study, it was found that 87.3 percent of the spectators in
attendance at an LPGA event also participated in golf.3
A similar pattern is shown for basketball (see Figure 5.1b). The results of the study
indicated an 81 percent overlap between basketball participation and watching pro
basketball. Surprisingly, this same relationship did not exist for college basketball
spectators. In that case, the overlap in the participation market and the college
basketball spectator market was only 43 percent. The study also found that there
was only a 36 percent overlap between spectators of professional basketball and
spectators of college basketball – evidence that there are not only differences in
spectators and participants, but also among spectators at different levels of the same
sport.4
177
Web 5.1 Richard Petty Driving Experience: Allowing NASCAR fans to feel racing thrills
Source: Richard Petty Driving Experience; http://www.drivepetty.com/
The other two sports shown in Figure 5.1, NASCAR racing and running, demonstrate
more extreme differences in the spectator and participant markets. There is virtually
no overlap between the spectators and participants of NASCAR (see Figure 5.1c).
Obviously, the NASCAR participant market is virtually nonexistent. However, new
“fantasy camps” are springing up across the United States for spectators who
want to try racing. For example, participants can enroll in classes at the Richard
Petty Driving Experience. The “Rookie Experience” is designed for the “layperson
who has a strong desire to experience the thrill of driving a Winston Cup race
car.” For prices starting at $440 and ranging to over $2,009, racing enthusiasts
can begin to experience driving around the track at speeds up to 145 mph. Top
speeds vary according to driver ability, track location, and program. Race fans can
also experience a heart-pounding ride around one of the tracks with a professional
instructor. Prices for the ride start at $99.00 and speeds will reach up to 165 mph.
There are very few requirements, and participants soon will feel like their favorite
racecar driver.5
Figure 5.1d depicts the potential participant and spectator markets for running. As
opposed to the previous examples, the participant running market is much larger than
the spectator running market. In addition to the size of the markets, there are also
differences in motivations for spectators and participants. Participants, for instance,
may be motivated to run for reasons of personal improvement. However, spectators
are likely to watch to provide support to a family member or friend.
In addition to looking at the overlap (or lack thereof) between participants and
spectators on a sport-by-sport basis, other research has explored the differences
between these two groups for sports in general. Table 5.1 summarizes the
findings of a study conducted by Burnett, Menon, and Smart,6 which examined
spectator and participant socioeconomic characteristics and media habits. Based
on the results of this and other studies, sports participants and sports spectators
seem to represent two distinct markets that should be examined separately by
sports marketers.
Before we explore spectators in greater detail, it is important to note that this market
can be differentiated into two groups on the basis of consumer behavior. The first
178
Photo 5.2 The sport of bullfighting depicts a "lack of overlap" between sports
participants and sports spectators, for very few have the courage and/or the skills to
master the ring
179
Table 5.1 Differences between spectators and participants
• Spectator and participant markets differ from each other with respect to socioeconomic
characteristics and media habits.
• Consumers categorized as heavy participants were more likely to be male, better-educated,
white-collar workers, minorities, and young, compared with the heavy spectator group.
• Consumers categorized as heavy participants also differ from heavy spectators with respect to
media usage. Heavy participants are more likely to use business news-reporting media. In addition,
heavy participants are more likely to watch intellectually appealing programming.
• Compared with male participants, male spectators exhibit an interest in a wider variety of media,
especially television.
• Heavy participants and heavy spectators are different with respect to how they can be reached by
advertising and how they perceive advertising.
Source: Adapted from John Burnett, Anil Menon, and Denise T. Smart, 1993, “Sports Marketing: A
New Ball Game with New Rules,” Journal of Advertising Research (September–October 1993) 21–33.
group consists of spectators who attend the sporting event. The second group of
spectators consumes the sporting event through some medium (e.g., television, radio,
or Internet). This chapter is primarily concerned with understanding why consumers
attend sporting events and what factors influence attendance. Let us begin by looking
at some of the major factors that influence the decision to attend sporting events
rather than watch them from the comfort of home.
Factors influencing attendance

It is opening day in New York and the hometown Yankees are set to take on their rival
the Boston Red Sox. Fred has gone to the traditional opening day parade and then
attended the ball game for the past five years. The game promises to be a great one
because the Yankees are returning from last year’s winning season and playing the
rival Red Sox. Fred will be joined at the game by his eight-year-old son and a potential
business client.
As this hypothetical scenario illustrates, there are a variety of factors influencing Fred’s
decision to attend the season opener. He wants to experience the new stadium and
watch the team that he has identified with since his childhood. As a businessman,
Fred views the game as an opportunity to build a relationship with a potential client.
As a father, Fred views the game as a way to bond with his son. In addition to these
factors, Fred is prone to gambling and has placed a $50 bet on the home team. Finally,
Fred thinks of opening day as an entertaining event that brings the whole community
together and, as a lifelong resident, he wants to feel that sense of belonging.
Certainly, the interaction of the factors mentioned affected Fred’s decision to attend
the game. Sports marketers must attempt to understand all the influences on game
attendance to market effectively to Fred and other fans like him.
A variety of studies have examined some of the major issues related to game
attendance. A study conducted by Ferreira and Armstrong7 found that eight distinct
factors influence game attendance. Factor 1 had eight significant loadings: crowd
density, crowd noise, popularity of sport, opportunity to watch game on TV, player’s
popularity, amount of advertising, rivalry, and pace. All variables loading on Factor 1
included items related to the overall popularity of sport and were collectively labeled
popularity of sport. Factor 2 outlined items related to overall game attractiveness,
180
including opposing team quality, home team quality, strategy displayed, athleticism,
and skill displayed. The third factor was based on free offerings and promotions, such
as offerings of free T-shirts, prizes, free tickets, and promotions on concessions (e.g.,
dime-a-dog). Factor 4 denoted pregame and in-game entertainment items such as band,
music, and pregame activities. Factor 5, labeled physical contact, conveyed the degree
of physical contact displayed. Factor 6 included items that related to convenience and
accessibility, such as seating arrangement, seat location/sightlines, location convenience,
and parking. Factor 7, facility, signified items of facility newness and niceness. Finally,
Factor 8 was labeled cost and referenced items related to ticket prices.
Other research has shown that that weather, parking and security,8,9,10 ticket cost,11,12
promotional events,13,14 team success,15,16 attributions for team success,17,18 and the
presence of star players,19,20 all play a role in sport consumption decisions.
Let’s delve deeper into some of these critical drivers of game attendance, such as
fan motivation factors, game attractiveness, economic factors, competitive factors,
demographic factors, stadium factors, value of sport to the community, sports
involvement, and fan identification.
Fan motivation factors 5

The foundation of any strategic sports marketing process is understanding why
spectators attend sporting events, or fan motivation factors. Based on an extensive
literature review, Trail et al.21 proposed that nine different motives explain why
individuals consume sport or are sport fans. Most of these motives are based on
social and psychological needs: vicarious achievement, acquisition of knowledge,
aesthetics, social interaction, drama/excitement, escape (relation), family, physical
attractiveness of participants, and quality of physical skill of the participants. Trail
and his colleagues also suggested that spectators attend games due to one or a
combination of these motives.
Additional research by Wann has found eight basic motives for watching sport. The
motives are categorized as self-esteem enhancement, diversion from everyday life,
entertainment value, eustress, economic value, aesthetic value, need for affiliation,
and family ties. It is important to note that these fundamental motives represent the
most basic needs of fans. Because of this, the eight motives are often related to other
factors, such as sports involvement and fan identification, which are discussed later in
the chapter. Let us now examine the eight underlying motives of fans identified in a
study conducted by Wann.22
X Self-esteem enhancement – Fans are rewarded with feelings of accomplishment
when their favorite players or teams are winning. These fans more commonly
are called “fair weather fans”; their association with the team is likely to increase
when the team is winning and decrease when the team is doing poorly.
The phenomenon of enhancing or maintaining self-esteem through associating
with winning teams has been called BIRGing, or basking in reflected glory.23 When
BIRGing, spectators are motivated by a desire to associate with a winner and, thus,
present themselves in a positive light and enhance their self-esteem. Madrigal
developed a model to explain why BIRGing might occur. He found that the three
antecedent conditions that are related to BIRGing are expectancy disconfirmation,
team identification, and quality of the opponent. In other words, BIRGing increases
when the team does much better than expected, when the fan has high levels of
association with the team, and when the team upsets stronger opponents.24
181
Spectators who dissociate themselves from losing teams because that negatively
affects self-esteem accomplish this through CORFing, or cutting off reflected
failure. The BIRGing and CORFing behaviors even have a high-tech influence on
fans. A recent study found that fans are more likely to visit their team’s Web site
after a victory and less likely to visit the site after a defeat.25
A new construct has been posited to explain why some fans, although it may
sound crazy, don’t want to associate themselves with a winner. In this instance,
although a team might have a winning record, fans may actually dissociate
themselves from the team.
Reasons for such behavior, known as CORSing (cutting off reflected success),
may include rebelliousness, jealousy, loyalty (to an earlier era, a previous style of
play, prior coaching/management, etc.), a need for individuality (informally seen
as a need to stand apart from the crowd), and possibly a fear of success (e.g., to
ascend to new heights implies a chance for a greater fall). The CORSing fans do
not want to be associated with the new era of winning; rather, they prefer to stay
linked to the past. By CORSing the fans are managing their self-image through an
expression of individualism.26
X Diversion from everyday life – Watching sports is seen as a means of getting
away from it all. Most people think of sports as a novel diversion from the normal
routines of everyday life. In a recent article, University of Nebraska Cornhusker
fans were cited as having intense emotional ties to the team, and it was stated
that football served as a diversion from everyday life in Nebraska. “For several
hours on a Saturday afternoon the struggling farmers of rural Nebraska – the
inspiration for the school’s nickname – can put aside their own problems and focus
on someone else’s.”27
In a recent example, there was great debate about whether and when
Oklahoma State, undefeated at the time, should play their football game
scheduled against Iowa State after a tragic plane crashed took the life of
members of their coaching fraternity, the head and assistant woman’s basketball
coach. The game was played but ended up in an overtime upset win in favor
of Iowa State. In another more national example, Major League Baseball and
other sports dealt with uncertainty of when they would resume their schedules
after the events of September 11. Ultimately, it was decided that play should
go on to serve as diversion and to ensure that the American way of life was not
disrupted.
X Entertainment value – Entertainment is closely related to the previous motive
for attendance. Sports serve as a form of entertainment to millions of people.
As discussed in previous chapters, sports marketers are keenly aware of the
heightened entertainment value of sports. In fact, one of the unique aspects of
attending a sporting event is the uncertainty associated with the outcome. The
drama associated with this uncertainty adds to the entertainment value of sports.
Among spectators, the entertainment value of sports is believed to be the most
highly motivating of all factors. In fact, Harris Interactive Company states that
“contrary to popular belief, lowering ticket prices is not the best way – or even
the most profitable way – to get people into seats. Creating an entertainment
experience with flexible season tickets, VIP perks, etc., is a far better alternative.
In short, people want to have fun, and for an increasing number of sports
attendees this may have very little to do with the actual competition.”28 A number
of sports are attempting to find interesting and innovative ways to increase their
182
entertainment value for the fans on the field of play by changing the rules of the
game. College football officials felt they needed to do something to keep fans
involved and entertained because five of the six major conferences averaged game
times of more than 3.5 hours. Here’s what the conferences have done to speed up
the pace of play.29
First, the clock will start on kickoffs when the ball is kicked instead of when the
receiving team touches the ball. This is not a big change and should have very
little impact on the outcome of the game. But coaches will have to adjust, and this
could shave around three or four plays off each contest.
Second, on changes of possession, the clock will start when the referee starts
the 25-second play clock. This will have more of an impact on the games since
25 seconds will be able to run off the clock and teams will have to utilize their
timeouts in a different fashion. Essentially, a team will be able to run the time off
the clock four times during a set of downs instead of three. With teams being
given only three timeouts each half, there will be one occasion when they will not
be able to stop the clock.
Others feel that college football should consider adopting NFL rules to shorten
game times. This includes shortening halftime to 15 minutes and not stopping the
clock on first downs, which is too much of an advantage for the offensive team
5
and allows them numerous built-in timeouts.
The NHL has also taken strides to improve the entertainment of the game
through rule changes.30 For starters, the dimensions of goaltender equipment
will be reduced by more than 10 percent. In addition to a one-inch reduction (to
11 inches) in the width of leg pads, the blocking glove, upper-body protector,
pants, and jersey will also be reduced. This should increase scoring and therefore
increase fan entertainment.
The NHL also altered rink dimensions to increase offensive firepower. They made
adjustments to the neutral-zone edges of the blue lines to position the line 64 feet
from the attacking goal line and 75 feet from the end boards in the attacking zone.
In addition, they added four feet in each of the offensive zones to encourage more
offensive play, particularly on power plays. The NHL positioned goal lines 11 feet
from the end boards, two feet closer to the end boards than before. Finally, they
reduced the size of the neutral zone from 54 to 50 feet.
As the article on page 184 indicates, sometimes having a solid product on the field
of play or court still doesn’t translate into game attendance.
X Eustress – Sports provide fans with positive levels of arousal. In other words,
sports are enjoyable because they stimulate fans and are exciting to the senses.
For example, imagine the excitement felt by Indy fans when the announcer says,
“Gentlemen, start your engines” or the anticipation surrounding the opening
kickoff for fans at the Super Bowl.
X Economic value – A subset of sports fans are motivated by the potential economic
gains associated with gambling on sporting events. Their enjoyment stems from
having a vested interest in the games as they watch. Because this motive is only
present for a small group of spectators, the economic factor is the least motivating
of all factors. However, the number of spectators who gamble on sports continues
to rise, especially among college students. Keith Whyte, executive director for the
National Council on Problem Gambling, says, “college campuses bring together a
lot of Internet access, a propensity for sports wagering, and most students have
credit cards. We are seeing signs that it is becoming a problem.”
183
BASEBALL SUFFERS DROP IN ATTENDANCE

Blame the weather. Why not? It’s an easy target when talking about baseball’s
early decline in attendance, and, certainly, it’s part of the explanation.
Attendance changes
Team (Gms.) Avg. diff.
Orioles (28) 5,412
Nationals (27) 5,143
Dodgers (31) 4,381
Blue Jays (30) 3,886
Reds (29) 1,990
Athletics (28) 1,185
White Sox (24) 1,078
Angels (32) 1,028
Braves (27) 713
Padres (30) 532
Giants (31) 190
Rockies (30) 66
Mets (29) −29
Tigers (27) −168
Indians (30) −252
D-backs (28) −633
Mariners (27) −1,055
Pirates (32) −1,067
Cardinals (29) −1,160
Royals (25) −1,228
Rays (27) −1,303
Yankees (31) −2,576
Brewers (31) −3,842
Rangers (26) −3,907
Twins (27) −4,004
Astros (31) −4,271
Red Sox (30) −4,554

184
Cubs (29) −5,116
Phillies (30) −6,656
Marlins (30) −10,262
STATS LLC
Take away the crappy weather – and Five teams in the Midwest that are
the crappy team almost no one wants experiencing significant attendance
to watch, the Miami Marlins – and drops – the Cubs, Twins, Brewers,
attendance might be at the same Royals and Cardinals – dealt with
level it was a year ago. particularly nasty weather in April.
Instead, attendance is down more Eliminate their declines, plus the
than 2 percent from the same date Marlins’ decline of more than 10,000
last season, according to MLB. And per game, and the overall attendance
as the accompanying chart shows,
five large-market teams – the
Yankees, Rangers, Red Sox, Cubs and
probably is flat.
Even the higher no-show rates
in certain cities are offset by lower
5
Phillies – rank among the nine clubs ones in places like Baltimore, which
that have suffered the biggest drop- leads baseball in both total and
offs, according to STATS LLC. per-game attendance gains from a
A sixth such club, the Mets, also is year ago – 151,540 overall, 5,412 per
down slightly, which is not exactly game.
what you’d expect from the team So, does baseball have a problem?
hosting the All-Star Game. Maybe.
Is all of that attributable to the First off, baseball cannot view
weather? the Marlins as some kind of crazy
I’m not ready to pass judgment, not uncle. No, the Marlins are one of 30
when it’s early June and some kids franchises, operating in a prominent
are still in school. But the attendance market. They have torched their
figures are at least cause for concern. relationship with that market, only
And when you consider the obviously one year after opening a new ballpark
high no-show rates at such places as that was supposed to be their
Citi Field in New York and Wrigley salvation.
Field in Chicago, it’s fair to ask whether Second, a number of other teams
the sport might have a problem. have dealt with occasionally poor
People in baseball don’t seem to weather without experiencing huge
think so, and better turnouts in the drop-offs – or any drop-offs at all.
summer months could very well The Reds are up 1,990 per game, the
prove them correct. White Sox 1,078, the Rockies 66. The
Baseball already has had 26 Indians, who already have had four
weather-related postponements – games postponed or delayed because
and by May 7 had surpassed last of weather, are last in the majors in
season’s total of 21. The sport attendance but down only 252 per
also has had two weather-related game though the same number of
suspended games, and one more dates.
would match its highest regular- The most troubling developments,
season total since 1988. meanwhile, are in the larger markets.
185
The Yankees are down 2,576 is whether too many fans are
per game, the Red Sox 4,554, the priced out – and whether even
Cubs 5,116, the Phillies 6,656. The some fans who can afford tickets
figures might be mere snapshots would prefer the hassle-free
in time rather than signals of experience of watching games at
larger declines – several Yankees home on large-screen,
stars are injured, the Red Sox are high-definition televisions.
coming off a disappointing season, Make no mistake; baseball needs
the Cubs are rebuilding, the Phillies those fans in the park, even in an
sputtering. era when clubs are drawing record
Then again, the rationale for the revenues from regional and national
Phillies, in particular, goes only so far: TV networks. The sheer volume
The Dodgers are up 4,381 per game of games makes baseball more
and the Angels 1,028. And while the dependent upon attendance than
Dodgers are clearly benefiting from other sports. If fans stop coming to the
the excitement created by their new ballpark, they eventually will stop
ownership, neither of those clubs is watching the sport on television, too.
performing to expectations on the Again, it’s far too early to draw
field. sweeping conclusions, particularly
Some teams view the secondary when the past nine seasons have
ticket market as a drag on attendance. been the nine best-attended in major
The Yankees and Angels opted out league history, even in a struggling
of baseball’s deal with StubHub this economy.
season, and the Cubs considered it. Still, the early attendance figures
The Yankees felt it was difficult to sell are disturbing. The TV shots of empty
smaller season-ticket plans when fans seats are disturbing.
could buy individual game tickets Baseball should be on alert.
at much lower prices on StubHub.
So, the team created its own ticket Source: Article author: Ken Rosenthal.
Rightsholder: Foxsports; http://msn.
resale market in conjunction with
foxsports.com/mlb/story/attendance-
Ticketmaster, and the Angels did the down-not-just-at-miami-marlins-
same thing. games-060513.
The larger question, though,
As Giuseppe Partucci noted, sport gambling has remained a popular pastime of

sports fans everywhere, even despite the prolonged recent economic downturn.
People turn to sports betting for a variety of reasons; some of them do it to escape
their problems and relax.31 He added that others bet on sports for a significant part
of their income, so a slow down in the economy will not affect the amount they
wager. In fact, according to Partucci, legal sports books in Nevada report that the
volume of wagers has not declined during the recession, although the amount
wagered is slightly lower. They have estimated that the total “handle” on bets they
receive has declined by about 5 percent, hardly enough to cause concern.32
X Aesthetic value – Sports are seen by many as a pure art form. Basketball games
have been compared with ballets, and many fans derive great pleasure from the
beauty of athletic performances (e.g., gymnastics and figure skating).
X Need for affiliation – The need for belonging is satisfied by being a fan. Research has
shown that reference groups, such as friends, family, and the community, influence
186
David Stern
David Stern, the commissioner of The All-Star Weekend, the made-

the NBA since 1984, has earned his for-television NBA lottery, making
place in sports marketing history. basketball the most popular sport
Stern is currently called the best in America with kids, and marketing
commissioner in sport, the best in the NBA across the world are all part
NBA history, and perhaps the best of the sports marketing legacy that
of any sport, ever. Prior to Stern, the is David Stern. In addition, Stern
NBA had a shaky network reputation, has helped the NBA develop an
plummeting attendance figures, and international presence in countries
no television contract. such as China and India making it one
During his tenure as commissioner, of the fastest internationally growing
Stern took a floundering NBA and sport franchises.
turned it “into an entity that is the
envy of professional sports – an
innovative, multifaceted, billion-dollar
David Stern has turned the NBA
into a professional organization
that is innovative, multifaceted,
5
global marketing and entertainment and a billion dollar empire though
company whose future literally knows marketing and entertainment. Stern
no bounds.” Stern has redefined is also known for his contribution and
the NBA and focused his marketing commitment to social responsibility
efforts on licensing, special events, by launching the NBA Cares program.
and home entertainment. The league The league’s players and teams
has gone from the arena business donate millions of dollars and hours
to radio, television, concessions, of community service to the youth.
licensing, real estate, and home Here is a video clip of Stern and the
video – all under Stern’s leadership. NBA Cares Program. NBA Cares
When the NBA was experiencing a
public relations nightmare because Source: Adapted from E. M. Swift,
1991, “Corned Beef to Caviar,” Sports
of the number of players believed to
Illustrated, June 3, 74–87. Credit line:
be on drugs, it was again Stern who Time, Inc.
cleaned up the mess.
game attendance. The more an individual’s reference group favors going to a game,
the more likely the person will attend games in the future. Additionally, individuals
who become fans of a team later in life (adolescence and adulthood) are more likely to
be influenced by friends in forming an attachment with a particular team.33
In addition to influencing game attendance, one study found that reference groups
can also affect other game-related experiences, such as perceived quality of the
stadium, perceived quality of the food service, overall satisfaction with the stadium,
and perceived ticket value.34 For instance, individuals who perceive their reference
group as opposing going to games will also have less satisfaction with the stadium
environment.
X Family ties – Some sports spectators believe attending sporting events is a means
for fostering family togetherness. The entire family can spend time together and
lines of communication may be opened through sports. Interestingly, women
187
SPORTS WAGERING
There are many myths associated • More bets are placed on the
with sports wagering in Nevada – Super Bowl than on any other
the only state where it is legal, single day sporting event of the
regulated, policed and taxed. The year, however more is wagered
following are the facts about sports during the first four days of
wagering: the men’s March Madness
• Overall, Nevada’s legal sports tournament.
wagering represents less than • According to the Nevada
1 percent of all sports betting Gaming Control Board,
nationwide. In 2011, $2.88 approximately $98.9 million
billion was legally wagered was wagered on the 2013 Super
in Nevada’s sports books; the Bowl at sports books across the
National Gambling Impact state, but most of that figure was
Study Commission (NGISC) returned to bettors in the form
estimated that illegal wagers of winnings. After paying out to
are as much as $380 billion bettors, Nevada sports books
annually. earned $7.2 million on 2013’s
• Gross revenue for Nevada’s game.
sports books was $170.0 million • The Las Vegas Convention
in 2012. While more than $3.45 and Visitors Authority
billion was wagered in 2012, estimated that the 2012
more than 95 percent of all bets Super Bowl weekend
placed were returned to patrons produced $106.2 million
in winnings. in non-gaming economic
• Legal sports wagering helps impact and attracted 310,000
bring more than 30 million visitors.
visitors to Nevada each year (1) According to
and provides employment for Christiansen Capital
thousands of people. Advisors (CCA), which
• Approximately two-third of all tracks Internet gambling,
sports bets in Nevada are placed online sports betting
on professional, non-college generated $4.29 billion in
sporting events. revenues in 2005. This is
• The FBI estimates that more more than double the $1.7
than $2.5 billion is illegally billion generated by online
wagered annually on March sports betting in 2001.
Madness each year. This number is current as
• Comparatively, sports book of 6/30/12.
operators estimate $80 million to
Source: Rightsholder: American Gaming
$90 million – less than 4 percent
Association; http://www.american
of the illegal take – is wagered gaming.org/industry-resources/
on the tournament legally research/fact-sheets/sports-wagering.
through Nevada’s 216(1) sports Credit: American Gaming
books. Association.
188
are more motivated than men to attend sporting events to promote family
togetherness.35 Research has also shown that “fathers” are the persons who
have the greatest influence in becoming a fan of a specific team. This is especially
true for individuals who became fans early in life (preteen years). In fact, brand
identification in sport often occurs at an early age and is significantly linked to
family influences. In the majority of these instances sport consumers become
exclusive consumers, often consumers for life. These allegiances last a lifetime
and these findings have important implications for sports marketers in creating
opportunities for fathers to interact with children in team-related activities.36
Game attractiveness
Another factor related to game attendance is the perceived attractiveness of each
game. Game attractiveness is a situational factor that varies from game to game
and week to week. The perceived quality of a single game or event is based on the
skill level of the individuals participating in the contest (i.e., the presence of any star
athletes), team records, and league standings. In addition to these game-attraction
variables, if the game is a special event (opening day, bowl game, or all-star game),
game attractiveness is heightened. The more attractive the game, the more likely
5
attendance will increase.
Economic factors
Both the controllable and uncontrollable economic factors can affect game attendance.
The controllable economic factors include aspects of the sports marketing environment
that can be altered by sports marketers, such as the price of tickets and the perceived
value of the sports product. The uncontrollable economic factors are things such as the
average income of the population and the economic health of the country.
Generally, the greater the perceived value of the game and the greater the income
of the population, the greater the game attendance. Surprisingly, one study found
that attendance has no relationship to increased ticket prices.37 In other words,
raising ticket prices does not negatively affect game attendance. Other researchers,
however, have found just the opposite.38
Competitive factors
As discussed in Chapter 2, competition for sporting event attendance can be thought
of as either direct (other sports) or indirect (other forms of entertainment). Ordinarily,
the lesser the competition for spectators’ time and money, the more likely they will be
to attend your sporting event.
One form of direct competition of interest to sports marketers is the televised
game. Television continues to be used by almost all fans to follow sports. However,
according to Kantar’s 2013 Global Sports Media Consumption Report well over half (59
percent) of sports fans state that their sports consumption has changed in some way
in the last two years.39 Whether it be consumption via high definition, consumption
online (which now surpasses print alternatives), or the use of digital access in the use
of social networking platforms, the trends of use of traditional media consumption are
changing. Some of the underlying trends can only be good news to the industry. In
fact, fans in the U.S. spend an average of 8 hours a week watching sport content and
fans in most markets are spending more time consuming sports than ever before. The
era of digital and second screen usage garners opportunity and according to Kantar’s
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Editor Frank Dunne, whoever said the pie doesn’t get any bigger, was wrong.40 In
fact, more and more fans are consuming sport on Internet connected devices without
– crucially – taking away viewers from television. Dunne noted that digital has added
new layers to the experience offering more ways of viewing and discovering the
alchemy, which turns digital into dollars, is the holy grail for sports rights-holders and
brands. We are in an era where primary and second screen choices, as well as digital
choices, continue to develop; however, many in the industry are still trying to map out
a strategy and are not alive to its true potential. Sports marketers need to understand
spectators’ media habits and motivations to appeal to these growing segments. In
addition, sports marketers want to learn whether to treat the viewing audience as a
separate segment or whether it overlaps with spectators who attend games.
Some of these issues were addressed in a series of studies conducted to understand
consumers’ motivations for watching televised sports. Overall, the excitement,
enthusiasm, and entertainment value associated with the telecasts are the primary
motivating factors.41 Interestingly, the need for watching televised sports differed by
gender. Women indicated they were more motivated to watch sports for the social
value and the fact that friends and family were already doing so. Men, however, were
motivated to watch sports on television because they enjoy the telecasts and find
them entertaining.
With respect to their viewing behavior, men are more interested in watching sports
on television, want more sports coverage, watch more sports coverage, and follow
it up by watching news reports of the action more frequently than do their female
counterparts. In short, men appear more highly involved in televised sports.
How does consuming the game via some alternative media such as radio, webcast,
or television affect game attendance? One study examined the influence of television
and radio broadcasting on the attendance at NBA games. The results indicated that
television broadcasts of home games would have a negative impact on attendance,
with more than 60 percent of the fans indicating they would watch the game on
television rather than attend. However, watching televised sports can also have a
positive impact on home game attendance. For instance, the more one watches away
games on television, the more one attends home games. In addition, the more one
listens to the radio (for both home and away games), the greater the likelihood of
attending home games.42
Demographic factors
Demographic factors or variables, such as population, age, gender, education,
occupation, and ethnic background, are also found to be related to game attendance.
Although the number of women attending sporting events is greater than ever before,
males are still more likely to be in attendance. The sports that possess the male fan
base include the NFL, college football, and Major League Baseball. The most avid
female fans flock to figure skating, the NFL, and Major League Baseball.
In addition, male sport fans tend to be younger, more educated, and have higher
incomes than that of the general population. With the exception of baseball, the
majority of ticket holders at sporting events now have annual income levels of
$80,000 or more. According to the most recent census data, only 15 percent of
American households reach this level of income, a relatively small market segment.43
Enthrallingly, the National Hockey League, PGA Tour, and ATP (tennis) have the
greatest percentage of fans with household incomes over $50,000.44
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0 20 40 60 80 100
All adults 18 28 46
Men 26 31 57
Women 10 25 35
White* 18 28 46
Black* 23 21 44
Hispanic* 15 34 49
18–29 23 28 51
30–49 17 29 46
16 25 41
5
50–64
65+ 17 29 46
College grad 18 31 49
Some college 20 28 48
H.S. or less 17 26 43
$100,000 23 33 56
$50,000–99,999 18 28 46
$30,000–$49,999 20 28 48
Under $30,000 13 27 40
Northeast 17 29 46
Midwest 17 27 44
South 18 29 47
West 19 26 45
Urban 19 29 48
Suburban 18 29 47
Rural 13 24 37
Very Somewhat
Table 5.2 Who’s a sports fan?

Source: Americans to Rest of World: Soccer Not Really Our Thing, page 8; http://
www.pewsocialtrends.org/2006/06/14/americans-to-rest-of-world-soccer-not-really-
our-thing/
191
As you might imagine, it is very difficult to come up with the profile of the typical
sports fan because of the varying nature of sport. However, it is important
not to generalize and run the risk of neglecting a potentially huge market.45
Table 5.2 presents the demographic profile of Americans who consider themselves
sports fans.
Stadium factors
New stadiums are being built across the United States. Moreover, team owners who
cannot justify or afford new stadiums are moving to cities that will build a new facility
or attempt to renovate the existing stadium. Obviously, these stadium improvements
are believed to affect the bottom line for team owners or for university presidents.
Stadium factors refer to variables such as the newness of the stadium, stadium
access, aesthetics or beauty of the stadium, seat comfort, and cleanliness of the
stadium. One study found that all these factors are positively related to game
attendance. That is, the more favorable the fans’ attitude toward the stadium, the
higher the attendance.46
Similar results were found in a study conducted for Money magazine by IRC Survey
Research Group.47 This study looked at what 1,000 sports fans value when attending
professional sporting events. The major findings, in order of importance, are:
X Parking that costs less than $8 and tickets under $25 each
X Adequate parking or convenient public transportation
X A safe, comfortable seat that you can buy just a week before the game
X Reasonably priced snack foods, such as a hot dog for $2 or less
X Home team with a winning record
X A close score
X A hometown star who is generally regarded as being among the sport’s 10 best
players
X Reasonably priced souvenirs
X A game that ends in less than three hours
X A wide variety of snack foods.
Interestingly, the four most important things identified in the study were unrelated to
the game itself. If you make people pay too much or work too hard, they would rather
stay home. Apparently, only after you are seated in your comfortable chair with your
inexpensive food do you begin to worry about rooting for the home team.
In addition, spectators were concerned about having a clean, comfortable stadium with
a good atmosphere. Part of the positive atmosphere is having strict controls placed
on rowdy fans and having the option of sitting in a nonalcohol section of the stadium.
An emerging area of some importance to new stadium design, as well as to stadium
rehabilitation, is the need to provide more and larger restrooms. Because stadium
atmosphere seems to be so important to fans, let us examine it in greater detail.
Sportscape
As you might have noticed, stadium atmosphere appears to be a critical issue in
game attendance. Recently, studies have been conducted in the area of stadium
environment or “sportscape.”48 Sportscape refers to the physical surroundings of the
stadium that affect the spectator’s desire to stay at the stadium and ultimately return
to the stadium. Figure 5.2 shows the relationship between these sportscape factors
and spectator behavior.
192
Web 5.2 New sports facilities such as the Cowboys Stadium in Dallas influence
attendance.
Source: dallascowboys.com
5
Sportscape Behavioral
Factors Responses
Stadium
access
Affective
Desire to
Responses
stay
Facility
Pleasure
aesthetics
Repatronage
Scoreboard
quality
Seating
comfort
Perceived
crowding
Layout
accessibility
Space
Signage
allocation
Figure 5.2 Model of sportscape

Source: K. L. Wakefield, J. G. Blodgett, and H. J. Sloan, 1996, “Measurement and
Management of the Sportscape,” Journal of Sport Management, 10(1): 16.
193
As shown in Figure 5.2, sportscape factors include stadium access, facility aesthetics,
scoreboard quality, seating comfort, and layout accessibility. Each sportscape factor
serves as input to the spectator’s affective response or judgment of pleasure or
displeasure with the stadium. The affective response, as we learned in Chapter 4,
is the “feeling” component of attitudes. Similarly, the affective response with the
sportscape is the feeling of perceived pleasure or displeasure the spectator has with
the stadium. The perceptions of the stadium sportscape are linked to behavioral
responses or actions of the spectator. In this case, the two behavioral responses
are the desire to stay in the stadium and repatronage, or returning to the stadium
for future events. Let us further examine the sportscape factors and their impact on
spectators’ pleasure.
Stadium accessibility
Many of us have left sporting events early to avoid traffic hassles or walked long
distances to get to a game because of limited parking. For example, I recently
attended a game at Wrigley Field in Chicago and, because of limited parking spaces,
had to walk over three miles to get to the game. By the time I reached my seat, it was
the third inning! This experience certainly resulted in displeasure with the entire game
experience.
Stadium access includes issues such as availability of parking, the ease of entering
and exiting the parking areas, and the location of the parking relative to the stadium.
From the spectator’s perspective, anything that can make it easier to get in and out of
the stadium quicker will positively affect a return for future games.
Facility aesthetics
Facility aesthetics refers to the exterior and interior appearance of the stadium.
The exterior appearance includes stadium architecture and age of the stadium. New
stadiums, with unique architectural designs, are springing up across the United
States. For example, the new Dallas Cowboys Stadium seats 80,000, making it the
fourth largest stadium in the NFL by seating capacity. However, the seating capacity
is expandable. The maximum capacity of the stadium, including standing room, is
110,000. The Party Pass sections are behind seats in each end zone and on a series of
six elevated platforms connected by stairways. At the time of its development it was
the largest domed stadium in the world, had the world’s largest column-free interior
and the largest high definition video screen which hangs from 20 yard line to 20 yard
line. Additionally, new innovative stadia are being built around the world. Construction
began in 2010 on Spartak Stadium in Moscow. Scia Engineer developed an economic,
elegant, and easy-to-build steel roof design to cope with Moscow’s extreme climate.
Spartak Stadium is scheduled to open in 2014 and is included in Russia’s bid for
the 2018 FIFA World Cup. For Beijing 2008, the Swiss architects Jacques Herzog
and Pierre de Meuron designed an exquisite (and expensive) structure wrapped in a
delicate-looking tangle of concrete columns. (The Chinese call it “the bird’s nest.”) It
looks like no stadium you’ve ever seen and has the potential to be one of the most
significant pieces of architecture built anywhere in the world.
Although the external beauty adds to the stadium aesthetics, the interior can also play
a major role in fan satisfaction and attendance. The interior of the stadium includes
factors such as color of the stadium walls, facades, and seats; the presence of
sponsors’ signage; and the presence of symbols from the team’s past. For example,
194
The Metrodome, the domed home of University of Minnesota football, was rated
the poorest stadium in the Big Ten Conference because of its sterile game day
atmosphere, hence its recent destruction. It was so bad that the university decided
to build a standalone stadium on campus which opened in September 2009. TCF
Bank Stadium, sometimes referred to as either “The Bank” or “The Gopher Hole,”
is the football stadium for the Minnesota Golden Gophers college football team at
the University of Minnesota in Minneapolis, Minnesota. The 50,805 seat on-campus
“horseshoe” style stadium is designed to support future expansion to seat close
to 80,000 people. TCF Bank Stadium, which cost 288.5 million, features 39 suites,
59 loge boxes, 1,000 outdoor club seats, 300 indoor club seats, a club lounge, a
20,000-square-foot facility for the marching band, and several locker rooms. The
Stadium’s field is laid out in an east–west configuration, with the open end of the
stadium facing campus. This layout, similar to that of Memorial Stadium, provides a
view of downtown Minneapolis. Compare these design features with Fenway Park in
Boston, one of the oldest and most unique stadiums in the United States and you can
see how aesthetics can vary from one facility to the next. As former pitcher Bill Lee
stated, “Fenway Park is a religious shrine. People go there to worship.”Obviously,
professional sports franchises are not the only ones who care about facility aesthetics.
University marketers and athletic departments are equally concerned with their
5
venues. In a recent article, the top 10 college football venues were ranked based
on atmosphere and aesthetics, tradition, and how well the team plays at home. The
number one stadium in college sport was Tiger Stadium – Louisiana State University.
The rest of the best in college facilities include the following: (2) Ohio Stadium –
The Ohio State University (3) Beaver Stadium – Penn State University, (4) Stanford
Stadium – University of Georgia, (5) Neyland Stadium – University of Tennessee,
(6) Kyle Stadium – Texas A&M University, (7) Memorial – Clemson University, (8)
Memorial Stadium – University of Nebraska, (9) Bryant-Denny Stadium – University
of Alabama, and (10) Ben Hill Griffin Stadium, also known as the “Swamp,” at the
University of Florida.49
Scoreboard quality
One of the specific interior design considerations that represents a separate dimension
of sportscape is scoreboard quality. In fact, the scoreboard in some stadiums is
seen as the focal point of the interior. Throughout the game, fans continually monitor
the stadium scoreboard for updates on scoring, player statistics, and other forms of
entertainment, such as trivia contests, cartoon animation, and music videos. Examples
of scoreboard quality range from the traditional scoreboard at Fenway Park, which is
manually operated, to the NFL’s biggest scoreboard, at Dallas Cowboys Stadium.
Cowboys Stadium is home to the world’s largest outdoor digital display. The
scoreboard at Cowboys Stadium is approximately 60 yards long. The 2,100 inch
display weighs in at approximately 600 tons, spans over 25,670 square feet, features
back-to-back high definition LED screens, and has two small screens at each end
to accommodate the stadium endzone fans. Stadium scoreboards such as those
at Cowboys Stadium, Heinz Field in Pittsburgh, and AT&T Park in San Francisco
are designed to create pure entertainment. Most of the entertainment will be
produced like a TV show and feature in-stand giveaways, trivia contests, features on
players, and facts and figures about the field. Rick Fairbend, the executive producer/
broadcast manager for the Steelers, said that “[the fans] will be amazed at the whole
entertainment package from now on.”
195
Even smaller colleges like Coastal Carolina University are enjoying the benefits of
custom scoreboards. Underscoring the importance of the scoreboard is Warren
Koegel, athletic director at Coastal Carolina University, who believes that fans are used
to high-definition TV and large-screen displays, so they made the decision to invest in
top-of-the-line equipment.
Perceived crowding
As shown in Figure 5.2, seating comfort and layout accessibility are the two
factors that were found to be determinants of spectators’ perceptions of crowding.
Perceived crowding, in turn, is believed to have a negative influence on the
spectator’s pleasure. In other words, spectator pleasure decreases as perceived
crowding increases.
Perceived crowding not only has an impact on pleasure but also on spectator safety.
For example, English football grounds are moving away from terraces (standing
areas renowned for hooliganism and violence) and toward a requirement of all-
seater facilities. There has been a great deal of debate about reintroducing terracing.
However, based on a report that identified all-seating as the factor that contributes the
most to spectator safety, the British government has no plans to bring back terraces
at English football grounds.50
Seating comfort
Seating comfort refers to the perceived comfort of the seating and the spacing of
seats relative to each other. Anyone who has been forced to sit among the more than
110,000 fans at a University of Michigan football game can understand the influence
of seating on the game experience. Likewise, those who have been fortunate enough
to view a game from a luxury box or club seat also know the impact of seating on
enjoyment of the game. Luxury boxes often offer top of the line amenities, while
the club seats provide the customer with the padded seat luxuries of a private box
without the privacy. Club-level seats commonly include climate-controlled lounges,
multiple TV sets, buffets, parking benefits, concierge service, and more space
between rows of seats.
Chris Bigelow, president of a facility management company, contends that more
seating capacity in our stadiums will not guarantee financial success in the future.
Less capacity with a higher level of comfort may be a much more profitable route
to attracting fans. The trend should not be for more seats in a venue but for better
seating. Bigelow states, “Our culture is willing to pay for comfort.”51
Layout accessibility
Layout accessibility refers to whether spectators can move freely about the stadium.
More specifically, does the layout of the stadium make it easy for spectators to get
in and out of their seats and reach the concession areas, restrooms, and so on?
To facilitate access to these destinations, there must be proper signage to direct
spectators and there must be adequate space allocation. Inadequate space and
signage cause spectators to feel confused and crowded, leading to negative feelings
about the game experience.
As stated previously, all the sportscape factors affect spectators’ feelings about the
game experience. These positive or negative feelings experienced by spectators
196
ultimately affect their desire to stay in the stadium and return for other games.
Although all the sportscape factors are important, research has shown that perceived
crowding is the most significant predictor of spectators having a pleasurable game
experience. In addition, the aesthetic quality of the stadium was found to have a
major impact on spectators’ pleasure with the game.52 The findings of the sportscape
research present several implications for sports marketers and stadium or facilities
managers. First, stadium management should consider reallocating or redesigning
space to improve perceived crowding. This might include enlarging the seating
areas, walkways, and the space in and around concession waiting areas. Second,
before spending the money to do major renovations or even building a new stadium
to improve aesthetic quality, focus on more inexpensive alternatives. For instance,
painting and cleaning alone might significantly improve the aesthetic value of an aging
stadium.
UCLA has moved the Pauley Pavilion renovation process forward and has expanded
and improved the building that has been a campus landmark for more than 40 years
and the home court of 38 NCAA championship teams. The goal was to dedicate the
restored Pauley Pavilion on October 14, 2010, to honor Coach John Wooden on his
100th birthday; unfortunately the great Coach John Wooden lived a long life that fell a
little more than four months short of his 100th birthday.
5
Among the many enhancements being considered were a new retractable seating
system to bring spectators closer to the court and new concession areas, restrooms,
and modern arena technology to enhance fan experience; new and expanded locker
rooms, medical treatment and media rooms, and dedicated practice facilities; and a
main lobby that would serve as a central entrance and celebrate UCLA’s illustrious
athletic tradition. These types of changes have provided the Bruin faithful with a
first-class facility that spectators feel good about, at a cost much lower than for new
construction.53
Based on the studies conducted by Wakefield and his colleagues, there seems to be
no doubt that the stadium atmosphere, or sportscape, plays a pivotal role in spectator
satisfaction and attendance. Moreover, the pleasure derived from the sportscape
causes people to stay in the stadium for longer periods of time. Certainly, having
spectators stay in the stadium is a plus for the team, who will profit from increased
concession and merchandise sales. In describing the importance of the sportscape,
Wakefield states, “Effective facility management may enable team owners to
effectively compete for consumers’ entertainment dollars even when they may be
unable to compete on the field.”54
Value of sport to the community

Values, as you will recall, are widely held beliefs that affirm what is desirable. In this
case, values refer to the beliefs about the impact of sport on the community. Based
on the results of a recent study, spectators’ perceptions of the impact of professional
sport on a community can be grouped into eight value dimensions (see Table 5.3 for a
brief description of values).
As you might expect, each value is related to spectators’ game attendance and
intentions to attend future games. For instance, spectators who believe sports
enhance community solidarity are more likely to attend sporting events. Sport
marketers should carefully consider these values and promote positive values when
developing marketing strategy.
197
Table 5.3 Eight value dimensions of sport to the community
• Community solidarity – Sport enhances the image of the community, enhances community
harmony, generates a sense of belonging, and helps people to feel proud
• Public behavior – Sport encourages sportsmanship, reinforces positive citizenship, encourages
obedience to authority, and nurtures positive morality
• Pastime ecstasy – Sport provides entertainment and brings excitement
• Excellence pursuit – Sport encourages achievement and success, hardwork, and risk taking
• Social equity – Sport increases racial and class equality and promotes gender equity
• Health awareness – Sport eliminates drug abuse, encourages exercise, and promotes an active
lifestyle
• Individual quality – Sport promotes character building and encourages competitive traits
• Business opportunity – Sport increases community commercial activities, attracts tourists, and
helps community economic development
Source: James J. Zhang, Dale G. Pease, and Sai C. Hui, 1996, “Value Dimensions of Professional
Sport as Viewed by Spectators,” Sports and Social Issues February 21: 78–94.
CAREER SPOTLIGHT
Marc Reeves, International Commercial Director, NFL

Career questions Make it palatable for audiences
1. What are your roles and who don’t understand it. We have
responsibilities? What’s on your to do a better job educating people
agenda? about the game because very few
It is essentially to grow the fan base people know the rules.
of the NFL around the world and to There are five local offices (in New
increase and maximize sponsorship York, China, Japan, Mexico, and
opportunities. We have to not only the U.K.) and we had to figure out
export the brand and the game that local sponsorships. For instance,
is being played here in the States, the international game every year
but also create new assets around is being held in England right
the world that are locally relevant now. We have to figure out how
and then tie them back and grow to build local sponsorships around
interest in the NFL. that and also maximize value for
To understand the markets that the existing partners of the NFL.
are most ripe for growth and to So a lot of it will be how do we
work out ways to link to who our work with sponsorships and local
fans are. . . . In markets where the business and then also make them a
NFL is known, we need to raise marketing function so that they are
awareness. In other markets, it’s helping to grow interest in the sport.
to get the fans to understand that
the NFL is more than just the Super 3. What are the plans for the next five
Bowl and cheerleaders. years? Is there a chance for another
NFL Europa?
2. What could the NFL do better on To grow the avid fan base of the
the global scale? What is the NFL’s league. We have done a lot of
international vision? research that shows that there are
We have to package the game. people aware of the NFL, but there
198
are few avid fans depending on the To specifically focus on the

countries. value that you can add to any
No. I think we realized that fans organization. And the second
around the world want the best part is also to look beyond the
product. We know based on the obvious, like the agencies and
fact that each of the last three the leagues and teams. There
England NFL games sold out in 90 are a lot of great opportunities at
minutes or less. some of the brands, tourist
boards, and other areas that
4. What career advice do you have are involved in sports and there
for people wanting to go into the is a lot less competition for those
sports industry? jobs.
Sports involvement
In Chapter 4, involvement was examined in the context of sports participation.
Measures of sports involvement have also been used to understand spectator
behavior. From the spectator’s perspective, sport involvement is the perceived 5
interest in and personal importance of sports to an individual attending sporting events
or consuming sport through some other medium. What sports are people most
interested in? Just 4 percent of adults in this country rate soccer as their favorite sport
to watch, compared with 34 percent who say this about football, 14 percent about
basketball, and 13 percent about baseball, according to a Pew Research Center study.55
Fan interest and involvement in the remaining sports can be seen in Table 5.4.
Table 5.4 What’s your favorite sport? Favorite sports to watch by interest in sports news
Follow Sports
ALL Adults Very/Some-what closely Not very/ Not at all closely
% % %
Football 34 45 26
Basketball 14 18 11
Baseball 13 14 12
Soccer 4 6 2
Auto racing 4 4 4
Ice skating 3 1 5
Ice hockey 3 3 3
Golf 2 2 3
Tennis 2 2 2
Boxing 2 1 2
Westling 1 1 1
Other 5 2 8
None 12 1 20
Don’t know 1 * 1
100 100 100
Number of respondents 2,250 1,029 1,216
Pew Research Center
Source: Americans to Rest of World: Soccer Not Really Our Thing, page 9; http://www.
pewsocialtrends.org/2006/06/14/americans-to-rest-of-world-soccer-not-really-our-thing/
199
Detailed studies have looked at the involvement levels of golf spectators, baseball
spectators, Division I women’s basketball spectators, and sports spectators in
general.56 In addition, a study has examined the cross-cultural differences in sport
involvement (see Spotlight on International Sports Marketing). Generally, these
studies have shown that higher levels of spectator involvement are related to the
number of games attended, the likelihood of attending games in the future, and the
likelihood of consuming sport through media, such as newspapers, television, and
magazines. Also of importance, high-involvement spectators were more likely to
correctly identify the sponsors of sporting events.
A comparative analysis of spectator involvement:

United States vs. United Kingdom
As the field of sports marketing in the responses of people from

expands into international markets, the United States and the United
the success of U.S. sports entities will Kingdom. People from the
depend on understanding the core United Kingdom spent less time
consumer abroad – the international each week watching sports on
sports fan. Recently, a study was television; however, they were
conducted to better understand the more likely to read the sports
domestic and U.K. sports fan by section of the newspaper on a daily
measuring sports involvement and by basis. Compared with the U.S.
exploring the relationship between sample, people from the United
sports involvement and sports- Kingdom were less interested in
related behaviors. local sports teams as opposed to
The findings indicated that there national teams. Finally, the British
are two dimensions of sports respondents were more likely
involvement that are consistent than their American counterparts
across the U.S. and U.K. sample. to perceive sports as necessary,
The cognitive dimension refers to relevant, and important.
the way that consumers think about There were no significant
sports, and the affective dimension differences in the responses of
is the way that consumers feel people from the two countries
about sports. Both the cognitive concerning (1) the likelihood of
and affective factors were positively planning your day around watching
related to viewing sports on a sporting event, (2) hours spent
television, reading about sports reading sports-related magazines,
in magazines and newspapers, and (3) participation in sports-related
attending sporting events, and activities.
participating in sports. That is,
higher levels of involvement are Source: Adapted from Matthew Shank
related to more viewing, reading and Fred Beasley, 1998, “A Comparative
about, and attending sporting Analysis of Sports Involvement: U.S.
vs. U.K.,” Advertising and Consumer
events.
Psychology Conference, Portland, OR,
There were some differences
May.
200
Fan identification
Sports involvement was previously defined as the level of interest in and
importance of sport to consumers. A concept that extends this idea to a sports
organization is fan identification. Two contrasting examples of fan identification
were seen with the movement of NFL franchises. When the Cleveland Browns
moved to Baltimore, Browns fans became irate, holding protests and filing
lawsuits to try to stop the team’s move.57 However, when the Houston Oilers
moved to Nashville relatively little fan resistance was observed, indicating low
levels of fan identification.
Sports marketers are interested in building and maintaining high levels of fan
identification for organizations and their players. If high levels of identification are
developed, a number of benefits can be realized by the sports organization. Before
examining the benefits of fan identification, let us take a closer look at what it is. Fan
identification is defined as the personal commitment and emotional involvement
customers have with a sports organization.58 A conceptual framework was developed
by Sutton, McDonald, Milne, and Cimperman for understanding the antecedents and
outcomes of fan identification.59 The model is shown in Figure 5.3.
Managerial correlates are those things such as team characteristics, organizational
5
characteristics, affiliation characteristics, and activity characteristics that directly
contribute to the level of fan involvement. Team characteristics include, most notably,
the success of the team. Typically, the more successful the team, the higher the
level of fan identification – because people want to associate themselves with a
winner (BIRGing). However, some fans see loyalty to the team to be more important
than team success. For instance, the Chicago Cubs continue to have high levels of
fan identification even though they have not won the World Series since early in the
twentieth century.
Organizational characteristics also lead to varying levels of fan identification. In
contrast to team characteristics, which pertain to athletic performance, organizational
characteristics relate to “off-the-field” successes and failures. Is the team trying
to build a winning franchise or just reduce the payroll? Is the team involved in the
community and community relations? Is the team owner threatening to move
to another city if a new stadium is not built with taxpayers’ monies? An example
of the impact of team and organizational characteristics on fan identification was
provided by the Florida Marlins. As soon as the team won the 1997 World Series
(team characteristic that should foster high fan identification), the owner talked about
Managerial Correlates Fan Identification Managerical Benefits

Team characteristics Low (social) Decreased price sensitivity
Organizational characteristics Medium (focused) Decreased performance-
Affiliation characteristics High (vested) outcome sensitivity
Activity characteristics
Figure 5.3 Model for fan identification

Source: William A. Sutton, Sport Marketing Quarterly
201
selling the team, and the organization traded several of its star players (organizational
characteristic that will diminish fan identification).
Affiliation characteristics refer to the sense of community that a fan builds as a result
of a team. According to Sutton et al., “The community affiliation component is . . .
defined as kinship, bond, or connection the fan has to a team. Community affiliation is
derived from common symbols, shared goals, history, and a fan’s need to belong.”60
As discussed in the study on the impact of sports on the community, the sports team
provides fans with a way to feel connected to the community and fulfill the need for
affiliation. In addition, the more a fan’s reference group (friends and family) favors
going to games, the more the individual identifies with the team.61
Activity characteristics represent another antecedent to fan identification. In this case,
activity refers to attending sporting events or being exposed to events via the media.
As technology continues to advance, sports fans are afforded more opportunities to
watch their favorite team via cable or pay-per-view, listen to games via radio, or link to
broadcasts from anywhere via the Internet. With increased exposure, fan identification
should be enhanced.
The interaction of the four preceding factors will influence the level of fan
identification. An individual’s level of identification with a team or player can range
from no identification to extremely high identification. However, for simplicity, Sutton
et al. describe three distinct categories of fan identification.62
Low identification
Fans who attend sporting events primarily for social interaction or for the
entertainment benefit of the event characterize low-level identification. These “social
fans” are attracted by the atmosphere of the game, promotions or events occurring
during the competition, and the feelings of camaraderie that the game creates.
Although this is the lowest level of fan identification, if fans are reinforced by the
entertainment benefits of the game, then they may become more involved.
Medium identification
The next higher classification of fan involvement is called medium identification,
or focused fans. The major distinguishing characteristic of these fans is that they
identify with the team or player, but only for the short term. In other words, they may
associate with the team, or player, if it is having an especially good year. However,
when the team starts to slump or the player is traded, “focused” identification
will fade. As with low-level identification, a fan that experiences medium levels of
identification may move to higher levels.
High identification
The highest classification of fan involvement is based on a long-term commitment to
the sport, team, or player. These vested fans often recruit other fans, follow the team
loyally, and view the team as a vital part of the community. Fans classified as high
involvement exhibit a number of concrete behavioral characteristics. Most important,
high-identification fans are the most likely to return to sporting events. Moreover,
high-involvement fans are more likely to attend home and away games, have been
fans for a greater number of years, and invest more financially in being a fan.
202
Managerial benefits
The final portion of the fan identification model put forth by Sutton et al. describes the
outcomes of creating and fostering vested fans. One outcome is that
high-identification fans have decreased price sensitivity. Price sensitivity refers to
the notion that small increases in ticket prices may produce great fluctuations in
demand for tickets. Fans that stick with the team for the long run are more likely to be
season ticket holders or purchase personal seat licenses to get the right to purchase
permanent seats. Fans that exhibit low levels of identification may decide not to
purchase tickets, even for small increases in ticket prices.
Another outcome of high levels of fan identification is decreased performance-
outcome sensitivity. Stated simply, fans that are vested will be more tolerant of poor
seasons or in-season slumps. Fans will be more likely to stick with the team and not
give up prime ticket locations that may have taken generations to acquire.
Summary rival or is Ken Griffey, Jr. in town?),
In this chapter, we explored the spectator

as a consumer of sport. Although there
the significance of the event to the
league standings, whether the event
is postseason versus regular season
5
are many people who both participate in
competition, or whether the event
and observe sports, research suggests
is perceived to be of championship
that there are two distinct segments of
caliber (e.g., the four majors in golf or
consumers.
the NCAA Final Four). In general, the
There are a variety of factors that greater the perceived attractiveness of
influence our decision to attend the game, the more likely we will want to
sporting events. These factors include attend.
fan motivation, game attractiveness,
Economic factors also play a role in our
economic factors, competitive factors,
decision to attend sporting events. As
demographic factors, stadium factors,
we discussed briefly in Chapter 2, the
value of sport to the community, sports
economic factors that may affect game
involvement, and fan identification. Fan
attendance can be at the microeconomic
motivation factors are those underlying
level (e.g., personal income) or
reasons or needs that are met by
macroeconomic level (e.g., state of
attending a sporting event. Researchers
the nation’s economy). Although these
believe that some of the primary
are uncontrollable factors, the sports
reasons fans attend sporting events are
organization can attempt to control the
enhancement of self-esteem, diversion
rising cost of ticket prices to make it
from everyday life, entertainment value,
easier for fans to attend sporting events.
eustress (feelings of excitement),
economic value (gambling on events), Competition is another important
aesthetic value, need for affiliation, and factor that influences our decision to
time with family members. attend sporting events or observe them
through another medium. Today, sports
Another factor that influences our
marketers must define the competition
decision to attend sporting events
in broad terms – as other entertainment
is game attractiveness. Game
choices such as movies, plays, and
attractiveness refers to the perceived
theater compete with sporting events.
value and importance of the individual
Interestingly, sports organizations
game based on which teams or athletes
sometimes compete with themselves for
are playing (e.g., Is it the crosstown
fans. For example, one study found that
203
televising home basketball games had a likely people were to attend. The value
negative impact on game attendance. dimensions of sport to the community
Demographic factors such as age, ethnic include community solidarity (bringing the
background, and income are also related community together), public behavior,
to spectator behavior. There is no such pastime ecstasy (entertainment), pursuit
thing as a profile of the typical spectator. of excellence, social equity, health
However, spectators are more likely to be awareness, individual quality (builds
male, young, more educated, and have character), and business opportunities.
higher incomes than that of the general As discussed in Chapter 4, sports
population. involvement refers to the consumer’s
Perhaps the most important factor that perceived interest in and the importance
influences attendance is the consumer’s of participating in sport. Sports
perception of the stadium. Stadium involvement has a related definition for
atmosphere appears to be a critical those observing sporting events. High-
issue in attracting fans. The stadium involvement spectators are more likely
atmosphere, or environment, has been to attend sporting events, read sports
referred to as the sportscape. The magazines, and plan their entire day
sportscape is the physical surroundings around attending a sporting event.
of the stadium that affect spectators’ A final factor related to spectator behavior
desire to stay at the stadium and is fan identification. Fan identification is
ultimately return to the stadium. The the personal commitment and emotional
multiple dimensions of sportscape involvement customers have with the
include stadium access, facility sports organization. The characteristics
aesthetics, scoreboard quality, seating of the team, the characteristics of the
comfort, and layout accessibility. organization, the affiliation characteristics
Another factor influencing game (sense of community), and the activity
attendance and the likelihood of characteristics (exposures to the team)
attending sporting events in the future all interact to influence the level of fan
is the perceived value of sport to the identification. The higher the level of fan
community. A study found that the identification, the more likely fans are to
more value attributed to sport, the more attend events.
Key terms X eustress X seating comfort

X facility aesthetics X self-esteem
X aesthetic value X family ties enhancement
X demographic factors X fan identification X signage
X diversion from X fan motivation factors X space allocation
everyday life X game attractiveness X sport involvement
X economic factors X layout accessibility X sportscape
X economic value X need for affiliation X stadium access
X entertainment value X scoreboard quality X stadium factors
204
Review questions Exercises

1. Describe the differences and 1. Go to a high school sporting
similarities between spectators and event, college sporting event, and
participants of sport. professional sporting event. At each
2. Discuss the spectators’ eight basic event, interview five spectators and
motives for attending sporting ask them why they are attending the
events. Which of these are similar events and what benefits they are
to the motives for participating in looking for from the event. Compare
sports? the different levels of competition.
3. Provide two examples of how Do the motives for attending differ
game attractiveness influences by level (i.e., high school, college,
attendance. and professional)? Are there gender
4. What are the economic factors differences or age differences
that influence game attendance? among respondents?
Differentiate between the 2. Go to a sports bar and interview five
controllable and uncontrollable people watching a televised sporting
economic factors.
5. Describe the typical profile of
event. Determine their primary
motivation for watching the sporting
5
spectators of women’s sporting event. Describe other situations in
events. How would a sports which motives for watching sporting
marketer use this information in events vary.
the strategic sports marketing 3. Attend a women’s sporting event
process? and record the demographic
6. Discuss, in detail, the profile of the spectators. What
sportscape model and how the are your observations? Use these
sportscape factors affect game observations and suggest how you
attendance. might segment, target, and position
7. What are the value dimensions of (market selection decisions) if you
professional sport to the community? were to market the sport.
How would sports marketers use 4. Attend a collegiate or professional
these values in planning the strategic sporting event. Record and describe
sports marketing process? all the elements of sportscape. How
8. Define sports involvement from do these affect your experience as a
the spectator perspective. Why is it spectator?
important to understand the levels of 5. Ask 10 consumers about the value
involvement among spectators? they believe a professional sports
9. Discuss, in detail, the model of fan team would (or does) bring to
identification and its implications for the community. Then ask the
sports marketers. same people about the value of
10. Explain the relationship among the college athletics to the community.
eight basic fan motivation factors Comment on how these values differ
and the other factors that influence by level of competition.
game attendance (i.e., game 6. How will marketing play a role in
attractiveness, economic factors, revitalizing the following sports:
competitive factors, demographic baseball, tennis, and cricket? How
factors, stadium factors, value to the has marketing played a role in the
community, sports involvement, and increased popularity in the following
fan identification). sports: golf, basketball, and soccer?
205
Internet exercises “Star Players, Payroll Distribution, and

Major League Baseball Attendance,” Sport
Marketing Quarterly, vol. 1 (2002), 164–173.
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11 Hal Hansen and Roger Gauthier, “Factors
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to attend sporting events. 3, (1989), 15–32.
12 James J. Zhang, Dael G. Pease, Stanley C.
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Hui, and Thomas J. Michaud, “Variables
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for men (e.g., women’s basketball NBA Games,” Sport Marketing Quarterly,
and men’s basketball). Comment vol. 4, no. 4 (1995), 29–39.
13 James R. Hill, Jeff Madura, and Richard A.
on differences, if any, in how these
Zuber, “The Short Run Demand for Major
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sport. vol. 10 (1982), 31–35.
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16 J. A. Schofield, “Performance and
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207
55 Pew Research Study, “Americans to the 57 Geoff Hobson, “Just Another Sunday,” The
Rest of the World: Soccer Not Really Our Cincinnati Enquirer (December 7, 1996).
Thing” (June 14, 2006). 58 William A. Sutton, Mark A. McDonald,
56 Deborah L. Kerstetter and Georgia M. George R. Milne, and John Cimperman,
Kovich, “An Involvement Profile of Division I “Creating and Fostering Fan Identification
Women’s Basketball Spectators,” Journal of in Professional Sports,” Sport Marketing
Sport Management, vol. 11 (1997), 234–249; Quarterly, vol. 6, no. 1 (1997), 15–22.
Dana-Nicoleta Lascu, Thomas D. Giese, 59 Ibid.
Cathy Toolan, Brian Guehring, and James 60 Ibid.
Mercer, “Sport Involvement: A Relevant 61 Ibid.
Individual Difference Factor in Spectator 62 Ibid.
Sports,” Sport Marketing Quarterly, vol. 4,
no. 4 (1995), 41–46.
208
CHAPTER 6
Segmentation, targeting,
and positioning
• Discuss the importance of market selection decisions.
• Compare the various bases for marketing segmentation.
• Understand target marketing and the requirements of successful
target marketing.
• Describe positioning and its importance in the market selection
decisions.
• Construct a perceptual map to depict any sports entity’s position in
the marketplace.
6 Segmentation, targeting, and positioning
Market selection decisions are the most critical elements of the strategic sports
marketing process. In this portion of the planning phase, decisions are made that
will dictate the direction of the marketing mix. These decisions include how to group
consumers together based on common needs, whom to direct your marketing efforts
toward, and how you want your sports product to be perceived in the marketplace.
These important market selection decisions are referred to as segmenting,
targeting, and positioning (STP). In this chapter, we examine these concepts in the
context of our strategic sports marketing process. Let us begin by exploring market
segmentation, the first of the market selection decisions.
Segmentation
Not all sports fans are alike. You would not market the Xtreme Games to members of
the American Association of Retired People (AARP). Likewise, you would not market
the PGA’s Champions Tour to Generation Xers. The notion of mass marketing and
treating all consumers the same has given way to understanding the unique needs
of groups of consumers. This concept, which is the first market selection decision,
is referred to as market segmentation. More specifically, market segmentation is
defined as identifying groups of consumers based on their common needs.
Market segmentation is recognized as a more efficient and effective way to market
than mass marketing, which treats all consumers the same. By carefully exploring
and understanding different segments through marketing research, sports marketers
determine which groups of consumers offer the greatest sales opportunities for the
organization.
If the first market selection decision is segmentation, then how do sports marketers
group consumers based on common needs? Traditionally, there are six common
bases for market segmentation. These include demographics, socioeconomic group,
psychographic profile, geographic region, behavioral style, and benefits. Let us take a
closer look at how sports marketers use and choose from among these six bases for
segmentation.
Bases for segmentation

The bases for segmentation refer to the ways that consumers with common needs
can be grouped together. Six bases for segmenting consumer markets are shown in
Table 6.1.
Demographic segmentation
One of the most widely used techniques for segmenting consumer markets is
demographic segmentation. Demographics include such variables as age, gender,
ethnic background, and family life cycle. As the accompanying article illustrates, sports
fans may be segmented in a variety of ways.
Segmenting markets based on demographics is widespread for three reasons.
First, these characteristics are easy for sports marketers to identify and measure.
Second, information about the demographic characteristics of a market is readily
available from a variety of sources, such as the government census data described
in Chapter 3. Third, demographic variables are closely related to attitudes and sport
behaviors, such as attending games, buying sports merchandise, or watching sports
on television.
210
Table 6.1 Common bases for segmentation of consumer markets
Demographic Geographic
• Age • World region
• Gender • Country
• Ethnic background • Country region
• Family life cycle • City
Socioeconomic • Physical climate
• Income Behavioral
• Education • Frequency of purchase
• Occupation • Size of purchase(s)
Psychographic • Loyalty of consumers
• Lifestyle Benefits
• Personality • Consumer needs
• Activities • Product features desired
• Interests
• Opinions
TECHNICAL REPORT – SPORT ENGLAND MARKET SEGMENTATION

6
The Sport England market Key socio-demographic variables
segmentation is built primarily were used as the link between the
from the ‘Taking Part’ and ‘Active sport and active recreation details
People’ surveys1, and helps explain in the two sport surveys. It was also
individual’s motivations, attitudes, this common set of indicators that
behaviour and barriers towards enabled us to link our sport data to
sport and active recreation. It other datasets. This enabled us to
is underpinned by key socio- apply the classification outside the
demographic variables, thereby restricted set of individuals who
ensuring that the segments can responded to Active People and
be geographically quantified and Taking Part.
appended to both customer records Using the ‘Taking Part’ survey a
and the Electoral Roll. Therefore series of propensity models were
every adult in England can have a built to predict the likelihood an
Sport England segment appended to individual would have to take part
them, whilst a market segment profile in an activity or have a particular
can be counted at any geographic motivation or attitude towards sport
level within England down to and active recreation. The ‘Taking
postcode. Part’ survey was used as it contained
It was this key requirement to attitude and motivation questions
be able to geographically quantify and therefore provided the most
and append the classification to comprehensive insight, whilst ‘Active
customer records which drove the People’ insight was used to enhance
methodology adopted for this project. our understanding of each segment.
Propensity modelling is a statistical
1 For more information on these surveys technique that assigns the probability
please go to www.sportengland.org/research of displaying a particular behaviour/
211
attitude to each demographic the variables assessed contributed

category. The differences in these to explaining sports behaviour and
probabilities are measured for attitudes. Therefore a key challenge
significance by comparing across was to match the variable classes
the sample population as a whole. defined in ‘Taking Part’ as closely as
Those models which show the possible to those found on Experian
most significance are subsequently databases. The final set of individual
extrapolated across the whole demographic variables used were:
England adult population. • Gender (Male, Female)
The key demographic variables • Age (18–25, 26–35, 36–45, 46–55,
used within this propensity modelling 56–65, 66+)
process were selected based on the • Marital status (Single, Married,
assumption that they were available Unknown/missing)
in both surveys and on Experian’s • Tenure (Owner occupied, Private
consumer database of all adults. This rented, Council/HA rented)
was essential to ensure that the final • Employment status (Employed
sport segmentation solution could be full-time/Other, Student/
linked to ‘Active People’, the Electoral Unemployed, Employed part-
Roll and geographic “bricks”. time/Housewife, Retired)
A proprietary technique known • Households with children (No,
as Mosaic-Pixel grid (MPG) Yes)
methodology was used to create the Once this large set of propensity
propensity models. This technique models had been built they were
has been successfully employed analysed in two ways. Firstly,
by Experian for many years and statistical analysis was undertaken to
on hundreds of other person-level identify those models that provided
segmentations. It is based on the the most ‘significance’, in terms
principle that within tightly defined of probability of displaying certain
lifestyle and lifestage groups people behaviour or attitude. Secondly,
do display similar traits. Mosaic across all the models the levels of
identifies the postcode-based socio- correlation were analysed, thereby
demographics whilst Pixel is a person identifying those models that
level combination of key variables worked well independently and also
that define people as unique and collectively to provide a rounded
different to their partner, spouse, picture of insight. Once completed,
children and neighbours. Mosaic a subset of these models which
has 61 categories and Pixel in the represented a cross-section of all the
region of 6,300 combinations, which characteristics was selected as the
when combined provides a grid of clustering variables.
c.380,000 pre-defined ‘cells’. It is A cluster analysis of the Taking
these c.380,000 ‘cells’ which were Part survey was then carried out
clustered to create the unique Sport using the values of the selected
England segments. propensity models as the input
As part of this process the actual variables, across these pre-defined
combination of demographic 380,000 cells. “K-means clustering2”,
variables and behavioural and an industry-recognised clustering
attitudinal information to be used
was tested. It became evident that all 2 Please see http://en.wikipedia.org/wiki/
Cluster_analysis#K-means_clustering
212
technique, was used that clusters consumer surveys, Hospital Episodes

the centroids of each observation Statistics and the Indices of Multiple
based on how ‘close’ they are to each Deprivation from the ONS.
other – this therefore enables the This additional research and socio-
user to pre-determine the number demographic data is appended to the
of clusters required from the final segments through the Mosaic-Pixel
solution. methodology as previously outlined.
A segmentation containing In essence, each respondent from
about 8–10 clusters was sought these surveys is assigned one of the
after by Sport England, with the 380,000 Mosaic-Pixel cells, which in
initial solution created by Experian turn have been allocated to one of the
having 11 clusters. However, it 19 Sport England segments.
became clear that more clusters were As earlier suggested, the segments
needed to fully explain and interpret have been constructed in a manner
the variety of sporting attitudes enabling them to be appended to
and behaviours in the population. the electoral roll. As such, for each
Therefore, solutions with 15–20 segment we are able to identify the
clusters were looked at and a final counts (and therefore percentages
classification of 19 clusters was and indices) of actual names. We
selected as the one which was the can then select those names that are
“best” explanation of the data. These
were analysed by average age and
over-represented for each segment
and that are also perceived to
6
grouped into 4 super-groups on this encapsulate that segment – similarly,
basis. the ‘marketing’ phrase for each
Once this 19-segment solution segment is defined through analysis
was agreed, additional socio- of all the variable indices and is
demographic, attitude and intended to provide a strapline for
behavioural datasets were profiled each segment.
to provide the additional ‘colour’ For more information please
and insight on the segments – in contact the Research Team at Sport
essence, to help provide the indices England – research@sportengland.
and percentiles that would bring the org
segments ‘to life’. These datasets
included the ‘Active People’ survey, Source: Sport England; http://
Experian’s Mosaic, TrueTouch and www.sportengland.org/research/
Financial Strategy segmentation about-our-research/market-segmentation/.
solutions, Experian’s national
Age
Age is one of the most simplistic, yet effective demographic variables used to
segment markets. Not only is age easy to measure, but it also is usually related to
consumer needs. In addition, age of the consumer is commonly associated with other
demographic characteristics, such as income, education, and stage of the family life
cycle. A number of broad age segments exist such as the children’s market, the teen
market, and the mature market. Care must be taken, however, not to stereotype
consumers when using age segmentation. How many 10-year-olds do you know who
think they are 20, and how many 75-year-olds think they are 45?
213
CLEVELAND BROWNS
YOUTH
FOOTBALL
Web 6.1 A wide array of youth football programs exist that target participation in
youth football and cheerleading.
Source: Reprinted with permission of Cleveland Browns Inc. (2014).
Children. There has always been a natural association between children and sports.
However, sports marketers are no longer taking the huge children’s market for
granted – and with good reason. Children have tremendous influence on purchasing
decisions within the family and are increasingly purchasing more and more on their
own.1
Children, up to age 11, spend around $18 billion a year. Tweens, 8–12 year olds,
‘heavily influence’ more than $30 billion in other spending by parents, and 80
percent of all global brands now deploy a ‘tween strategy.’ As Dan Cook, Assistant
Professor of Advertising and Sociology at the University of Illinois, noted in an
article titled “Lunchbox Hegemony: Kids and the Marketplace, Then & Now,” kids
not only want things, but have acquired the socially sanctioned right to want – a
right which parents are loath to violate. Layered onto direct child enticement and
the supposed autonomy of the child-consumer are the day-to-day circumstances of
overworked parents: a daily barrage of requests, tricky financial negotiations, and that
nagging, unspoken desire to build the lifestyle they have learned to want during their
childhoods.2
Presently, many families spend at least $2,000 a year on sports-related expenses
for their children.3 Children are participating in sports and are identifying with teams,
players, and brands at younger ages each year. The 2012 Harris Poll YouthPulse study
noted that young people have just as much money to spend as older adults.4 In fact,
the purchasing power of 8–24 year old citizens in America is reaching $211 billion.
Thus, sports marketers have recognized the power of the kids’ market. They realize
children will become the fans and the season ticket holders of the future. As such,
they have segmented markets accordingly.
Examples of sports marketers reaching the kids’ market are plentiful. For instance,
Fisher-Price, the toy company, negotiated the rights to acquire a NASCAR license to
produce battery-operated race cars for children. The mini-vehicles with engine sound
effects feature two gears and achieve speeds of 2.5 or 5 mph, plus reverse, and sell
for more than $200.
Build-a-Bear Workshops has collaborated with multiple Major League Baseball
stadiums to find new customers, targeting the 12 and under market segment.
Targeting this age group affords Build-a-Bear the opportunity for youth sports fans to
build their own little team mascot.
In 1998, the NFL and the NFL Players Association formed the NFL Youth Football
Fund (YFF), a 501(c)3 nonprofit foundation that supports the game at the youth level
and promotes positive youth development. Through this fund, hundreds of thousands
214
of children have been given the opportunity to learn about the game of football, get
physically fit, and interact positively with adult mentors, all in a safe and accessible
environment.
In 2005, the National Basketball Association launched an initiative offering its teams
and players to further promote global community outreach. This initiative aimed to
address important social issues such as education, youth and family development, and
health and wellness, all through the use of various partners and programs. To date, the
league, players, and teams have donated more than $210 million to charity, provided
more than 2.3 million hours of hands-on service, and built more than 760 places
where kids and families can live, learn, or play in communities worldwide.5 U.S. Fund
for UNICEF President Caryl Stern recently complimented the NBA’s commitment to
social responsibility, noting that their strategy has been philanthropic in a strategic
way. He defined the NBA as utilizing a dedicated strategy at a number of different
levels, noting that it was not just writing a check; it was a way to achieve and see
results.6
In addition, the NHL’s Hockey is for Everyone initiative provides support to both ice
and street hockey programs by teaching children how to learn, compete, and grow.
The programs provide these unique hockey experiences to more than 300,000
children annually in over 30 non-profit hockey organizations and 1,600 schools and
communities nationwide.
Photo 6.1 Professional sports are realizing the importance of the kids’ market to their
long-term success.
215
The children’s segment is also growing in importance to those organizations
marketing to kids via the Internet. For example, ToysRUs.com has introduced a new
sporting goods site called SportsRUs.com with a “just for kids” area designed to help
parents select sports equipment for kids ages five to 12. In another example, the
President’s Council on Physical Fitness and Activity has launched a Web site (www.
presidentschallenge.org) to help motivate kids and families become more physically
active. The NFL also incorporates marketing geared toward children, with its own
official NFL kids’ website, NFLRUSH.com. For example on the NFLRUSH.com site
you will find the NFL’s Play 60 campaign. The campaign, tailored to make the next
generation of youth the most active and healthy was launched in 2007. The program
focused on increasing the health and wellness of youth fans by encouraging them to
become active for at least 60 minutes a day.
Teens. Just as with the youth user segment, the number of teens is also expected
to rise exponentially. According to the U.S. Census Bureau, by 2015, the population
of children and teens between the ages of 10 and 19 will reach 41.42 million.7 With
this potential amount of purchasing power it can be understood why sporting goods
fall within the top 10 advertising categories for teens. One key to reaching this teen
market is to involve them in the marketing process and engage them in the brand.
What brands (or leagues, in this case) are hot with teens? Figure 6.1 shows the pro
sports of interest to the teen market, including differences among males and females.
Although teens represent a sizable and important market, sports marketers must
better understand this group, or it will be lost. For instance, American teens are
70 Male
Female
Total
60
50
40
Percentage
30
20
10
0
NFL NBA MLB WNBA NASCAR WWE NHL MLS
Figure 6.1 Pro-sports that appeal to teenagers: youth who say they are very or
somewhat interested in the sport
Source: with permission of The Futures Company
216
not tuning in to major sporting events in large numbers, at least not compared
with the general population. None of the traditional championships attracts a
television audience that is higher than 7.3 percent of teens ages 12–17. For the
Daytona 500 and the World Series, only about one in 30 television viewers are
teens. The one nontraditional championship that can claim a teenage viewing
audience of 11.4 percent is the X Games, but even that finds the overwhelming
majority of its viewers are from outside the teen ranks.8 Furthermore, these
ratings are in spite of the fact that television viewing for teenagers is at an all
time high. According to the Kaiser Foundation report, over the past five years
there has been a huge increase of media use amoung young people. Teen’s
lives today are primarily a story of technology facilitating increased consumption.
Today’s multitasking teens pack 10 hours and 45 minutes worth of media content
(multitasking) into a 7.38 hour day. These media frenzies occur 7½ hours a day,
seven days a week.9
What can sport marketers do to better reach teens? As the accompanying article
illustrates, thinking “outside the norm” to grasp a further understanding of their usage
pattens may be the answer.
The mature market. Another market that is expected to increase at a staggering
pace is the age 55 and older, mature market. According to the 2012 U.S. Statistical
Abstract, mature adults, age 55-plus in 2010 totaled 75 million.10 In fact, every day in
America about 10,000 people turn 65 and by the year 2030, roughly one out of every
five Americans will be aged 65 years and older.11 These staggering numbers equal
6
the entire populations of New York and California, Washington State, and the District
of Columbia, or New York, California, and Massachusetts combined. Stereotypically,
the elderly are perceived to be inactive and thrifty. Nothing could be further from the
truth. The mature market is living longer and becoming more physically active. The
country’s largest generation of 55-plus are joining health clubs at a rate of 34 percent
per year.12 The 50-plus age group controls over 70 percent of disposable income,
holds $1.6 trillion in spending power, and a net worth that’s nearly twice the U.S.
average. As a result, sports marketers are capitalizing on this growing market in a
variety of ways.13
Traditionally, senior citizen discounts have been promoted in Major League Baseball.
For example, the Milwaukee Brewers’ minor league affiliate, the Brevard County
Manatees, created the 55+ fan club, providing tickets, merchandise, and other special
promotional offers to seniors. Promotions such as private meet and greet with the
players and coaches were designed to strengthen the relationship between the
Manatees and the teams’ senior fans.14 Other examples of sports markets being
segmented by age can be seen in the growing number of “senior” sporting tours and
events. The Champions Tour of the PGA has nearly the following of the regular tour
events. Although not as successful as the golf tour, other professional senior tours
include tennis and bowling.
Seniors are also becoming more active as sports participants. The fastest-growing
participation sports for seniors, classified as age 55 and older, include exercising to
music and running or walking on the treadmill. Table 6.2 shows some of the most
popular sports for the maturing baby boomer market.
The Golden Age Games is the largest veterans’ competition in the world open to
those 55 and older. This Olympic-type event brings in more than 700 military veterans
of the mature market, from 42 states as well as the U.S. Virgin Islands. Furthermore,
the International Tennis Federation offers Seniors and Super-Seniors Individual and
217
GENERATION M2
Media in the life of 8 to 18 year olds,

the Henry J. Kaiser Family Foundation, 2013.
Key findings
Use of every type of media has increased over the past
increase in media use among young people. 10 years, with the exception of reading. In just the past
years, the increases range from 24 minutes a day ffor video
Five years ago, we reported that young people spent an games, to 27 minutes a day for
f computers, 38 minutes
average of nearly 6½ hours (6:21) a day with media—and f TV content, and 47 minutes a day ffor music and other
for
managed to pack more than 8½ hours (8:33) worth of audio. During this same period, time spent reading went
media content into that time by multitasking. At that point from 43 to 38
it seemed that young people’
bursting point with media.
T ay,
Tod y however,r those levels of use have been shattered. time spent reading magazines dropped from 14 to nine
reading newspapers went down from six minutes a day to

amount of time they spend consuming media by an hour three; but time spent reading books remained steady, y and
and seventeen minutes daily,
y from 6:21 to 7:38—almost actually increased slightly over the past 10 years (from 21
the amount of time most adults spend at work each day,
y to 25 minutes a day).
except that young people use media seven days a week
Changes in media use, 2004–2009
Moreover,r given the amount of time they spend using Among all 8- to 18-year-olds, change in average amount
more than one medium at a time, today’s youth pack a of time spent with each medium in a typical day:
total of 10 hours and 45 minutes worth of media content
into those daily 7½ hours—an increase of almost 2¼ hours HOURS
1
+ :47
Media use over time + :38
Among all 8- to 18-year-olds, average amount of time + :27

+ :24
spent with each medium in a typical day:
2009 2004 1999
TV content 4:29a 3:51b 3:47b n/c - :05†
0
Music/audio 2:31a 1:44b 1:48b
Music/ TV Computers Video Movies Print
Computer 1:29a 1:02b :27c audio content games
Video games 1:13a :49b :26c †
B ffor a summary of key
Print :38a :43ab :43b changes in question wording and structure over time.
Movies :25a :25ab :18b
TOTA
T L MEDIA EXPOSURE 10:45a 8:33b 7:29c An explosion in mobile and online media has fueled
Multitasking proportion 29%a 26%a 16%b the increase in media use among young people.
TOTA
T L MEDIA USE 7:38a 6:21b 6:19b The story of media in young people’s lives today is
primarily a story of technology facilitating increased
B consumption. The mobile and online media revolutions
ffor a summary of key changes in question wording and structure over have arrived in the lives—and the pockets—of American
time. TTotal media exposure is the sum of time spent with all media. youth. Try waking a teenager in the morning, and the odds
Multitasking proportion is the proportion of media time that is spent
using more than one medium concurrently. T Total media use is the are good that you’
actual number of hours out of the day that are spent using media, taking pillow—the last thing they touch befo f re falling asleep
multitasking into account. See Methodology section ffor a more detailed
content they once consumed only by sitting in front of a
TV set at an appointed hour is now available whenever and
wherever they want, not only on TV sets in their bedrooms,
but also on their laptops, cell phones and iPods®.
218
Today, 20% of media consumption (2:07) occurs on mobile These two platforms—cell phones and MP3 players—
devices—cell phones, iPods or handheld video game account for a sizeable portion of young people’s increased
players. Moreover, almost another hour (:56) consists of media consumption. For example, total time spent playing
“old” content—TV or music—delivered through “new” video games increased by about 24 minutes over the past
pathways on a computer (such as Hulu™ or iTunes®). five years (from :49 to 1:13), and 20 minutes of that increase
comes on cell phones, iPods and handheld video game
Mobile media. The transformation of the cell phone into players. Time spent listening to music and other audio
a media content delivery platform, and the widespread has increased by more than three-quarters of an hour a
adoption of the iPod and other MP3 devices, have day (:47) to just over 2½ hours (2:31); nearly an hour (:58)
facilitated an explosion in media consumption among of that listening occurs via a cell phone or an iPod, and
American youth. In previous years, the proliferation of another 38 minutes is streamed through the computer,
media multitasking allowed young people to pack more through programs like iTunes or Internet radio.
media into the same number of hours a day, by reading
a magazine or surfing the Internet while watching TV Television on new media platforms. For the first time
or listening to music. Today, the development of mobile since we began this research in 1999, the amount of
media has allowed—indeed, encouraged—young people time young people spend watching regularly scheduled
to find even more opportunities throughout the day for programming on a television set at the time it is originally
using media, actually expanding the number of hours broadcast has declined (by :25 a day, from 3:04 to 2:39).
when they can consume media, often while on the go. However, the proliferation of new ways to consume TV
content has actually led to an increase of 38 minutes of
Over the past five years, the proportion of 8- to 18-year- daily TV consumption. The increase includes an average of
olds who own their own cell phone has grown from about 24 minutes a day watching TV or movies on the Internet,
four in ten (39%) to about two-thirds (66%). The proportion and about 15 minutes each watching on cell phones
with iPods or other MP3 players increased even more (:15) and iPods (:16). Thus, even in this new media world,
dramatically, jumping from 18% to 76% among all 8- to television viewing—in one form or another—continues to
18-year-olds. dominate media consumption, taking up about 4½ hours
a day in young people’s lives (up from a total of 3:51 in
Mobile Media Ownership, Over Time 2004). But how w young people watch TV has clearly started
to change. Indeed, today just 59% of young people’s TV
Among all 8- to 18-year-olds, percent who own each platform:
iPod/MP3
player
18%
watching occurs on a TV set at the time the programming
is originally broadcast; fully 41% is either time-shifted, or
occurs on a platform other than a TV set.
6
76%
Online media. In addition to mobile media, online media
have begun making significant inroads in young people’s
39%
Cell phone lives. The continued expansion of high-speed home
66% Internet access, the proliferation of television content
available online, and the development of compelling new
12% applications such as social networking and YouTube, have
Laptop all contributed to the increase in the amount of media
29%
young people consume each day. Today’s 8- to 18-year-
0 20 40 60 80 100 olds spend an average of an hour and a half (1:29) daily
using the computer outside of school work, an increase of
2004 2009
almost half an hour over five years ago (when it was 1:02).
In the last five years, home Internet access has expanded
Not only do more young people own a cell phone, but from 74% to 84% among young people; the proportion
cells have morphed from a way to hold a conversation with with a laptop has grown from 12% to 29%; and Internet
someone into a way to consume more media. Eight- to access in the bedroom has jumped from 20% to 33%.
eighteen-year-olds today spend an average of a half-hour The quality of Internet access has improved as well, with
a day (:33) talking on their cell phones, and an average of high-speed access increasing from 31% to 59%.
49 minutes a day (:49) listening to, playing or watching
other media on their phones (:17 with music, :17 playing
games, and :15 watching TV)—not to mention the hour
and a half a day that 7th- to 12th-graders spend text-
messaging (time spent texting is nott included in our count
of media use, nor is time spent talking on a cell phone).
Source: http://kff.org/other/poll-finding/report-generation-m2-media-in-the-lives/.
Courtesy The Henry J. Kaiser Family Foundation.
219
Table 6.2 Most popular sports/athletic/fitness activities U.S. population, age 55+, based on total
participation
Rank Athletic Activity Participants

1. Fitness walking 10.3 million
2. Treadmill exercise 8.8 million
3. Stretching 8.2 million
4. Hand weights 5.3 million
5. Golf 4.9 million
6. Freshwater fishing 4.6 million
7. Day hiking 3.7 million
8. Weight/resistance machines 3.6 million
9. Stationary cycling (upright bike) 3.4 million
10. Bowling 3.3 million
11. Recreational vehicle camping 2.8 million
12. Saltwater fishing 2.7 million
13. Other exercise to music 2.6 million
14. Dumbbells 2.5 million
15. Stationary cycling (recumbent bike) 2.4 million
Source: Sports & Fitness Industry Association, www.sfia.org.
Team Championships held yearly in countries all over the world. The ITF Super-
Senior World Team Championships, offering women’s age divisions (ages 60 to75)
and men’s age divisions (ages 60 to 80), brings in 114 teams from 24 countries to
compete.
These examples of the senior athletes are representative of the mature market
worldwide and demonstrate what a vibrant, independent, and viable segment this is
for sport marketers.
Gender
A number of marketing executives in the sports industry have taken note that women
have become crucial to their fan bases. Female fans have been so crucial that
organizations such as the FIFA, the NFL, NASCAR, MLB, NBA, and NHL have focused
promotional efforts toward enhancing the female audiences, with much success. For
example, some 67 million women count themselves baseball fans – that’s just over
half of baseball’s audience.15 In addition, 37 percent of basketball fans are women; and
44 percent of football fans are female. In fact, an estimated 43 million female viewers
tuned in to the Super Bowl earlier this year, making it more popular than the Oscars.
The NFL has realized the importance of women fans and is developing a strategic
plan to attract them and keep them interested in a traditionally male-oriented sport.
Based on research conducted by the NFL, women fans do not want to be treated
differently than men. NFL Commissioner Roger Goodell stated, “(Women) fans
want to be treated as real fans because they love the game, understand the game,
and want to have the opportunity to experience the game just as anyone else
does.”16
In 2010, ESPN also developed a strategic approach to targeting a growing female fan
base, as the accompanying article indicates.
220
Ad 6.1 Hodgman is capitalizing on the growing mature market.

Source: Pure Fishing – Columbia
Despite the obvious male overtones of the increasingly popular mixed martial arts
scene – as exhibited by the success of the Ultimate Fighting Championship – fans of
the female persuasion are also flocking to the newest sporting trend to hit the pay-
per-view circuit. In fact, for a sport that used to be known as little more than a glorified
bar brawl, mixed martial arts fights have been branded and stamped with a marketable
seal of approval by sponsors and UFC stakeholders alike.
221
ESPN W: A BRAND FOR FEMALE ATHLETES

In 2010, ESPN, the worldwide leader amount of national coverage they
in sports, announced a bubbling receive compared to men. I don’t
business from within called espnW, think anyone would argue with
a brand completely driven for and by me on this – turn on SportsCenter,
sports-minded women. Now, before open ESPN The Magazine or Sports
you jump to conclusions based upon Illustrated and tell me how many
the espnW name, I simply ask that articles about female athletes you
you first hear me out – because it’s see. For whatever reason, female
critical to understand exactly why this athletes are simply not on the radar.
new business is necessary for the The only time women are covered
success of female athletes. fairly is in the Sports Illustrated
ESPN unveiled their new “w” Swimsuit Edition or ESPN Body,
brand at a retreat in San Diego, sending a clear message to women:
California. It took place in front of it’s OK for you to play sports, but the
some of the biggest movers and only time you deserve national media
shakers in women’s sports, including attention is when you take off your
famous female athletes, coaches, clothes, show some skin, and act like
journalists and sports marketing a girl.
executives. At the event, not only did 2) Female sports fans are on the
I have the chance to meet and talk to rise
some of the women and men that I
It’s also important to understand
respect most in this world, but I also
the core mission that ESPN has
had the chance to share some of my
followed faithfully since its inception:
opinions about what needs to happen
“serve the sports fan.” However,
to make the espnW business work.
the idea of a “sports fan” as a guy
First, some context. . .
in front of his TV is changing - in
Since the passage of Title IX in
fact, women (these are women who
1972, the United States has seen a
watch men’s sports) comprise almost
900 percent increase in girls playing
40% of their total viewing audience.
high school sports and a 450 percent
ESPN’s internal research keeps telling
increase in women playing sports at
them that this audience feels under-
the collegiate level. This means that
served – they don’t feel as if the ESPN
over the past 40 years, a female sport
brand speaks to them.
culture was born and lives today.
Despite the incredible successes The Answer: espnW
we’ve seen, a drop-off exists when it Enter: ESPN employee Laura
comes to the transition from a female Gentile. Back in 2007, emerging
athlete to a female sports fan. There from within ESPN’s own culture as a
are several reasons for this, but here rising business star, the former Duke
are two major ones as to why that field hockey player started raising
ESPN cares: the possibility of offering a female-
1) Sports media rarely covers specific sports outlet that seeks to
female athletes. address these gaps. The team started
by targeting high school girls with
Research has shown that female
ESPN’s Girl Magazine – a grassroots
athletes are significantly under-
publication for high school athletes
represented with respect to the
222
which is published three times per its potential,” and “The investment
year, followed up by ESPN Rise Girl climate was simply not on our side.”
Edition online (still in Beta). The idea 2010, was a different climate,
here is to reach a young audience backed with a major investment from
early, and have them transition over ESPN, a Disney-owned company.
time into espnW a female-specific In addition to the initial investment,
business. the “w” brand secured founding
EspnW, launched a blog and sponsors Nike and Gatorade, as
more digital content that targets the well as support from other brands
18–49-year-old woman who loves like Under Armour, Roxy, Oakley
sports, which happens to comprise 50 and Lululemon, all eager to attach
million current and former athletes. themselves to a “w” business. If
If activated successfully, you can money really is the key issue, with
imagine the potential impact, not this level of up-front investment, on
only in effectively serving a new paper, it seems the espnW team can
audience, but also in acquiring new make this thing happen. But the truth
advertisers who want to reach this is it’s not that easy – the espnW team
audience. is going to have to tread very, very
However, it’s not going to come carefully with the public. Here’s why:
easy. These women are a very tricky First, the idea of a “w” brand is
age group. They have a lot going on
in their lives – they’re in graduate
very controversial for women who
are already fans of men’s sports.
6
school, cultivating professional For example, Chicago Cubs blogger
careers, trying desperately to stay cubbiejulie cited that she “hates” the
in shape, meeting their life partners, idea of espnW because she believes
getting married and raising children. it’s going to be a “girlier” version of
All of a sudden, their love for “sport” ESPN, promoting things like “pink
falls into many different types of hats and bedazzled t-shirts.” As a
areas – they might follow their sports-minded woman, she really has
college teams as an alum, watch no need to go to a “w” network – she
men’s professional sports, play has everything she needs from what
sports recreationally in the evenings, ESPN already offers.
run 5K races and triathlons on the But it’s important to understand
weekends, go to the gym every night, that espnW isn’t targeting Julie who
or coach kids. already gets what she needs from
As you can see, trying to interject ESPN. And I can assure you – the last
a new entertainment habit into an thing the W team would consider
already-busy woman’s life is going to promoting (or wearing, for that
be quite challenging. So challenging, matter) are bedazzled t-shirts.
in fact, that some outlets have tried Rather, from what I experienced,
and failed – for example, Sports watching the unveiling of the new
Illustrated for Women attempted brand on the same stage as Billy
to tap into this market between Jean King (who received a standing
2000–2002, but folded quickly. ovation on opening night), as well
Then-president Ann Moore cited as notables like Laila Ali, Julie
the downturn in the advertising Foudy, and Gretchen Bleiler, among
economy, saying, “SI Women needed countless other amazing women, I
a significant investment to reach think it’s safe to say that, at the very
223
heart of this new business is the when they build opportunities for
mission to serve current and former female athletes to get attention.
female athletes. . . a uniquely different Last, I can say with confidence that
audience, one that’s been struggling espnW is a brand that the retreat
for public attention for 40 years. attendees, including myself, celebrate
ESPN is also opening itself up to and welcome with open arms. And I
criticism from its current diehard challenge you to join me. Because for
male fans - the whole idea of once, there’s a possibility that female
“espnW” seems outrageous (and athletes will be able to showcase
quite funny) to men who already feel their athletic achievements to the
served by the brand. . . especially if world without needing to take their
it’s aimed at promoting professional clothes off.
female sports, which may or may Megan Hueter is the cofounder of
not meet their needs for sports WomenTalkSports.com, which, until
entertainment. the advent of espnW, has remained
But it’s really critical for these guys the only sports blog network that
to understand that they’re not the specifically promotes female athletes.
target audience, either. And on the Megan is also a former athlete from
surface, although this may seem like Haddon Heights, New Jersey who
an easy target for a quick joke, if they played basketball The College of New
ever want their sisters, daughters Jersey. She works full time as a public
or granddaughters to have the relations professional in New York.
opportunity to experience financial
success as professional athletes, Source: http://blogswithballs.
they’ll need to support (or at least not com/2010/10/espnw-a-brand-for-female-
mock) a major sports media company athletes/.ESPN.com.
These widely publicized fights between experts in various martial arts are becoming
a hit with women both in and out of the ring. Historically, sports enthusiasts have
been male. However, stereotypes are eroding quickly as women are becoming
more involved in every facet of sport. More women are participating in sports, and
more women are watching sports. Moreover, every attempt is being made to make
women’s sports equitable with their male counterparts as the promotion of the recent
female championship broadcasts demonstrate.
One example of females participating in a historically male sport is football.
Nationwide, 1,531 girls played on high school tackle football teams in the 2013
season, according to a survey by the National Federation of State High School
Associations.17 Some 90 professional women’s football teams in three main
leagues exist across the country. The three leagues all play the same game,
with minor deviations from NFL rules, but they approach the business in very
different ways. A NSGA poll tracking sports participation noted that 12.1 percent of
females participate in football and 21.4 percent in baseball, both male-dominated
sports.18
224
THE IWFL AND THE HISTORY OF WOMEN’S TACKLE FOOTBALL

Zachary Fenell, Yahoo Contributor success. Owning a women’s tackle
Network football team became a financial
Sep 18, 2009 burden and by the end of the decade
Independent Women several NWFL teams folded. By
Professional Football 1982 the NWFL only had teams left
Talent Agent operating in Ohio and Michigan.
Web Services Professional women’s football
Flag continued on as the NWFL did their
Post a comment best to reinvent themselves but the
Cassie Newall, Robyn Taylor interest in women’s football had
and Nikita Payne are all all-star bottomed out.
football players, but you will not In 2000 interest in women’s tackle
find them on the cover of Sports football picked up again with the
Illustrated or profiled on ESPN creation of the IWFL. The IWFL, a
because Newall, Taylor and non-profit organization, aims to
Payne don’t play for the National provide a positive, safe, and fun
Football League. Rather, Newall, environment for women to play
Taylor and Payne are three of tackle football. The IWFL mission
over 1,500 football players in the
Independent Women’s Football
is to give women the opportunity
to play professional football. The
6
League. The IWFL is a professional league has grown at a rapid rate
football league for women who play too The number of teams in the
tackle football. IWFL has more than doubled since
The origins of women’s tackle 2000. Currently there are 51 IWFL
football stems back to the mid teams spread out across North
1920s when the NFL team America, including teams in big
Frankfort Yellow Jackets hired a market cities like New York and
women’s football team to serve Chicago.
as entertainment during halftime. The IWFL season is during the
In 1965 talent agent Sid Friedman NFL’s off season. The IWFL begins
took women’s tackle football to the their 10 week season in April
next level by starting a semi-pro and concludes in July with the
women’s football league in Ohio. championship game and the IWFL
The league started with two teams, All-Star Game. The IWFL is made
one in Cleveland and one in Akron. possible by the league’s sponsors,
The league grew as more Ohio cities AWS (Athletic Web Services), Nike,
adopted teams. Eventually cities Kotis Design, USA Football, and the
from Pennsylvania and New York Round Rock Convention and Visitors
joined the league. Bureau.
By 1974 women’s tackle football
became so popular the National Source: http://voices.yahoo.com/the-iwfl-
Women’s Football League (NWFL) history-womens-tackle-football-4268395.
was formed. Unfortunately the html. Reprinted with permission from
Yahoo. © 2014 Yahoo.
NWFL was not a big financial
225
NFL MAY BE HITTING STRIDE WITH FEMALE FANS

By Kristi Dosh | Feb 3, 2012 because of their value to advertisers.
ESPN.com Ann Bastianelli, senior lecturer of
AP Photo/Paul Spinelli marketing at Indiana University’s
Female fans of the Giants hope this Kelley School of Business, said
Super Bowl against the Patriots will 70 percent of “important family
go as well as the last. decisions” are made by women.
The NFL’s concerted effort over the “When we talk about women being
past two years to market the game the decision-makers, I think a lot
and apparel to women is showing of people don’t realize that’s cars,
signs of paying off, but sales of stocks, electronics – things people
league merchandise still trail Major might not associate women making
League Baseball and collegiate- the decisions about,” said Meghann
licensed materials. Malone, a marketing manager for
In terms of female fans, the NFL marketing, advertising and public
trails only college sports, according relations firm IMRE.
to data from The ESPN Sports Poll A growing female fan base
and the U.S. Census, with league creates a more marketable NFL
officials saying 44 percent of all for advertisers and sponsors. “A
football fans are now women. female consumer is a consumer
Various sources show positive for life,” Malone said. “They’re the
indicators for the NFL: ones more likely to become brand
loyalists.”
• NFL merchandise sold to women
Peter O’Reilly, vice president of fan
jumped significantly over last
strategy/marketing for the NFL, said
year, according to Fanatics, the
the league has done well in this area
world’s largest online retailer of
the last couple of years.
officially licensed products. The
In 2010, the league introduced a
2011 playoff season showed a
clothing line specifically made for
dramatic change: an 85 percent
women called “Fit for You,” featuring
sales increase in December over
various choices, from junior sizes to
2010 and a 125 percent increase in
maternity clothing. Building upon the
January from the year prior.
positive response to that initiative,
• Although the 2011 NFL season
the league added to the line in 2011
saw a slight drop in the number
and opened up a new section of its
of women who watched games
website just for women: www.nfl.
on TV, ratings increased from a
com/women.
3.7 to a 3.9 in the 18- to 34-year-
The new site highlights the
old demographic, according to
women’s apparel line and also added
Nielsen.
NFL Party, a site that promotes
• The number of American women
“homegating.” NFL Party features a
participating in fantasy football
blog with tips and recipes.
doubled in 2011, according to
“NFL Party was coming together
Ipsos Public Affairs, which works
with licensees to make it easy for
with the Fantasy Sports Trade
families and people hosting parties,
Association.
and certainly women are largely
Marketing experts say women are driving that in the home,” O’Reilly
a prized demographic for the NFL
226
said. The league considers the site a differentiation with other leagues,”
success, he said, and will increase its Zeller said.
content. Johnson helped create an NFL-
O’Reilly also said NFLShop. themed shopping experience for
com saw double-digit growth this women before the Jets game
season on merchandise geared against the Patriots this year that
toward women. Fanatics noted the looked more like a Miami night club
same, particularly during the 2011 than a sports apparel showroom.
playoffs. Women’s Wear Daily reported that
NexTag, the online comparison- Johnson marketed the new duds to
shopping site, said women’s jerseys magazine editors and even convinced
accounted for six of the top 10 Tom some of her socialite friends to wear
Brady jerseys viewed and six of the Jets jerseys to Badgley Mischka’s
top 10 Eli Manning jersey viewed the runway during New York Fashion
week before and after championship Week.
weekend. Jersey searches since Jan. Johnson appeared this week on the
1 have been dominated by women’s “Wendy Williams Show” highlighting
products, with the top five most- some of her favorite Jets gear. Even
searched jerseys being women’s Tim with the recent successes, the NFL
Tebow or Aaron Rodgers jerseys. has a way to go to catch the retail
When the NFL women’s clothing
line was expanded in 2011, the
sales leaders.
MLB led all sports with $5 billion
6
league looked to the women who in retail sales in 2010, with Collegiate
make up the NFL family for some Licensing Company behind, at $4.3
help. Wives of players, coaches billion. The NFL lagged at about $3.3
and owners donned gear for billion.
advertisements, which appeared in With double-digit growth in
popular magazines. women’s merchandise in 2011 and
“The NFL has done a really a growing buzz, the NFL could make
good job realizing wives and up some ground in the next study:
daughters of coaches are some “I haven’t seen the other leagues
of the best ambassadors of the in fashion magazines,” Zeller said.
game,” said Heather Zeller, founder “They’ve done more than just create
of AGlamSlam.com, a website something you can wear in the
dedicated to the intersection of stadium on Sunday.”
fashion and sports. “They could Kristi Dosh covers sports
have used Victoria’s Secret models, business for ESPN.com and can
but these are the women actually be reached at kristi@kristidosh.
watching the game, so they’re much com. Follow Dosh on Twitter: @
more relatable.” SportsBizMiss.
One of those women is Suzanne
Johnson, wife of New York Jets Source: Rightsholder: ESPN: Published
owner Woody Johnson, whom Zeller 2/3/12; accessed 1/2/14; http://espn.
said has helped push NFL fashion go.com/espnw/news-commentary/
article/7536295/nfl-finding-success-
into high fashion. “They’re treating
targeting-women-fans-merchandise-
sports apparel as high fashion,
fashion.
and that’s unique. It’s a point of
227
Ethnic background
Segmenting markets by ethnic background is based on grouping consumers of a
common race, religion, and nationality. Ethnic groups, such as African Americans
(12.9 percent of the U.S. population), Hispanic Americans (15 percent of the U.S.
population), and Asian Americans (4 percent of the U.S. population)19 are increasingly
important to sports marketers as their numbers continue to grow. When segmenting
based on ethnic background, marketers must be careful not to think of stereotypical
profiles but to understand the unique consumption behaviors of each group through
marketing research.
Major League Soccer (MLS) has long espoused the philosophy of having an ethnic fan
base. Commissioner Don Garber believes the MLS is “perfectly suited to capitalize
on what’s going on in this country. We are a nation of increasing ethnic diversity. We
are a nation that’s finding itself in an increasingly growing global community. And
that global community is linked by one language, a language that is shared by all, and
that’s the sport of soccer.” Garber has also helped league officials and marketing
folks understand that there are increasing numbers of immigrants – particularly
in Hispanic communities – to whom soccer is a cultural necessity. Garber said,
“Capturing the ethnic fan” is essential in making that approach work. “It requires
careful considerations. It means realizing that fans bang drums and stand throughout
the game. It means courting Spanish-language media, Caribbean media, and other
foreign-language interests.”20 As the accompanying article articulates, understanding
any subculture goes well beyond the language.
MOVE OVER FÚTBOL. THE NFL SCORES BIG WITH LATINOS

More than 33 million Hispanics have in attempt to tap into an aggressive
watched professional football so and young fan base ready to shell
far this season, making it the most- out consumer dollars. Since Hispanic
watched NFL season among Latinos. football fans spend nearly 15 hours
Professional football, not fútbol, engaged with the NFL each week
delivered two of the most-watched during the regular season and
professional sporting games in 2011 because more Latinos watched the
among Hispanics. Super Bowl than the World Cup Final,
Generation Ñ it is easy to understand why the
NFL’s strategic marketing efforts for
As a group, Hispanic children are
this season’s big game should enable
growing faster than any other.
them to make unparalleled inroads
History suggests today’s Latino kids
with young Americans of Hispanic
eventually will become the parents
descent.
of fully Americanized descendants
“There is a prevailing sense of
whose only link to their cultural
‘family’ in football,” Pro Football
heritage is a surname, religious
Hall of Fame tackle Anthony Muñoz
practice or holiday, said Hernán
said in an interview with the web site
Ramírez, a sociologist at Florida
USA Football. “You get that in the
State University who specializes in
Hispanic community, and that’s what
Hispanic assimilation tells the Tampa
you want in a football team.”
Tribune.
According to the NFLHispanic.
More and more NFL teams are
com, last year’s Super Bowl
courting the lucrative Latino market
228
was the most watched TV stated “most games are on Sunday,

program ever among Hispanics, which meshes with traditional Latino
averaging ten million Hispanic family get-togethers and social
viewers. gatherings.”
Latino Influenced Super Bowls Super Bowl XLVI will showcase
a full on attempt to captivate
The NFL played its first regular-
Hispanic audiences. The NFL is
season game outside the United
pushing its NFLHispanic.com
States in 2005 and drew over 100,000
website even more than ever. This
people in Mexico City. Over the last
site is designed as a tool to attract
five years, the NFL has aggressively
potential marketers to buy into their
sought to connect with Hispanics, a
360-degree platform approach to
fan base that is large and growing at
reach the Hispanic demographic.
rapid pitch. The 2011 season saw one
This approach allows brands to
of the most aggressive positioning
reach the segment at every angle
strategies by NFL members as more
from television, online, radio,
than half of the teams celebrated
print, calendar events to grass-
Hispanic heritage events at various
roots efforts. Viewers can expect
stadiums.
a markedly overt Hispanic
The NFL vamped its push towards
overtone for this year’s
U.S. Hispanics in recent years. Last
year’s big game in Dallas offered
a definitive Latino flair. According
championship game.
‘Show Me the Money’
6
to the 2010 U.S. Census, Texas The big push toward Hispanic
grew more than twice as fast as the consumers is in part due to the
nation, thanks largely to a surge quality of fanship. Latinos tend to be
among Mexican Hispanics. Dallas ardent fans with strong home team
has the fifth largest U.S. Hispanic convictions. High levels of extreme
population that are from Mexican revelry coupled with abundant
decent and over 1.5 million Mexicans consumer dollars have motivated
in the Dallas–Fort Worth Metroplex sports leagues to seriously re-
are the third largest foreign born evaluate their efforts toward the
Mexican population in the U.S. per Hispanic population.
Metropolitan Statistical Areas. Hispanics in the United States
On one level, the choice to host tend to be predominantly male,
the game in Dallas was rational – the on average younger that the non-
weather is ideal, the atmosphere Hispanic population, and tend
is fun and the tourist industry can to have higher viewership of
accommodate the crowd. On another sports. Marketing, advertising,
and most likely more influential and sponsorship dollars as well as
level, the choice is strategic. innovative grassroots public relations
What better way to captivate the initiatives have all been cultivated
Hispanic market than to bring the with the new target demographic in
game to the famed Latino football mind.
hotspot? With the average cost for a
In an interview with the Phoenix 30-second commercial in the U.S.
Business Journal, Victor Villalba, during the last World Cup costing
head of Spanish language $250,000 versus $3 million for the last
broadcasting for the Dallas Cowboys, Super bowl, professional football is
229
an arena that marketers and media www.dialogo.us/move-over-futbol-

heavyweights are investing big in. the-nfl-scores-big-with-latinos/;
Tags: hispanic Sports published January 3, 2012, accessed
January 2, 2014. Credit: Diálogo Public
Source: Rightsholder: Diálogo Public Relations.
Relations (http://Dialogo.us/); http://
The NBA has also strengthened international marketing efforts. Under the umbrella
program NBA Cares, the National Basketball Association has developed an initiative
to reach globally to the Latin American youth population. Basketball Without Borders
developed programs including building youth centers and hosting clinics in Brazil,
Argentina, and Puerto Rico.
Another example of marketing to ethnic groups includes the introduction of Deportes
Hoy, the premier Spanish-language sports daily. The sports information product
will be circulated in Los Angeles, Orange, and San Diego counties (California) and
will be targeted to reach everyone from the occasional to the most highly involved
sports enthusiasts.21 ESPN began to publish a monthly Spanish-language edition of
ESPN The Magazine beginning in 2007 and a Spanish-language version of ESPN.
com, demonstrating their ongoing commitment to Hispanic sports fans in the United
States. Similarly, many MLB teams are also establishing Spanish-language websites
corresponding with the main English site.
The Hispanic market is not the only ethnic segment of interest to sport marketers. In
the United States, Asian Americans have the highest median household income of any
ethnic group of $70,221, which is nearly 14.7 percent higher than that of non-Hispanic
whites. With a 116 percent increase in purchasing power over the past decade, Asian
Americans are the fastest growing, most educated, and a highly reachable segment in
the country. Moreover, they are the nation’s fastest growing ethnic group, with large
population centers in major cities that are home to multiple pro sports franchises.
When it comes to putting fans in the stands and merchandise in their homes and
offices, Asian Americans should be a sports marketer’s dream.22 Whether it’s the
Hispanic market, Asian market, or any other ethnic market, sport organizations are
realizing the critical nature of understanding and catering to these growing segments
for all sports products and services.
Family life cycle

The family life cycle was a concept developed in the 1960s to describe how
individuals progress through various “life stages,” or phases of their life.
A traditional life cycle begins with an individual starting in the young, single
“life stage.” Next, an individual would progress through stages such as young,
married with no children; young, married with children; to, finally, older with no
spouse. As you can see, the traditional stages of the family life cycle are based on
demographic characteristics such as age, marital status, and the presence or absence
of children.
Today, the traditional family life cycle is no longer relevant. In 2013, 3.6 per 1,000
people in the United States are divorced, compared with 6.8 per 1,000 people who
are married, and the number of single-parent households is on the rise.23 Changes
230
Middle-aged,
divorced,
without
children
Young,
divorced,
without
children
Middle-aged,
married,
without
children
Middle-aged,
Young, Young, Middle-aged,
married,
Young, married, married, married, Older, Older,
without
single without with with married unmarried
dependent
children children children
children
Young, Middle-aged, Middle-aged,

divorced, divorced, divorced,
with with without
children children dependent
children
Usual flow
Traditional family flow
Recycled flow
Figure 6.2 Modern family life cycle 6

in family structure such as these have led marketers to a more modern view of the
family life cycle, shown in Figure 6.2.
Sports marketers segmenting on the basis of family life cycle have a number of
options. Do they want to appeal to the young and single, the elderly couple with no
kids living at home, or the family with young children? Sports that are growing in
popularity, such as biking, segment markets based on a stage of the family life cycle.
Just imagine the incompatible biking needs of a young, single person versus a young,
married couple with children.
Professional sports have come under increased scrutiny in the past decade for their
lack of family values. Rising ticket prices, drunken fans, and late games have all been
cited as examples of professional sports becoming “family unfriendly.” Realizing this,
sports marketers have tried to renew family interest in sports and make going to the
game “fun for the entire family.”
There are numerous examples of sports marketers trying to become more family
friendly. For instance, the addition of Homer’s Landing, an area where families can
picnic before, during, and after the game, has become a “hit” for the St. Louis
Cardinals. The Chicago Cubs and other professional teams have initiated no-alcohol
sections at their games to encourage a family environment. The NFL is taking an
initiative to give professional football a G-rated family-friendly atmosphere, limiting
the service of alcohol and setting up text-messaging systems for fans to report unruly
behavior. The hope is for a raise in the standard of fan behavior on game days, making
the environment more appropriate for families. Moreover, many sports organizations
have instituted family nights, which include tickets, parking, and food for a reduced
price to encourage family attendance.
231
Ad 6.2 Pygmy is segmentation on the basis of the family life cycle.

Source: www.pygmyboats.com
Socioeconomic segmentation
Thus far, we have discussed demographic variables such as age, gender, ethnic
background, and family life cycle as potential ways to segment sports markets.
Another way of segmenting markets that was found to be a good predictor of
consumer behavior is through socioeconomic segmentation. As previously defined,
social class is a division of members of a society into a hierarchy of distinct status
classes, so that members of each class have relatively the same status and members
of all other classes have either more or less status.
Although most people immediately equate social class with income, income alone
can be a poor predictor of social class. Other factors such as educational level and
occupation also determine social standing. Usually, income, education, and occupation
are highly interrelated. In other words, individuals with higher levels of education
typically have higher income and more prestigious occupations. Based on these
factors (income, education, and occupation), members of a society are artificially said
to belong to one of the social class categories. The traditional social class categories
are upper-, middle-, and lower-class Americans. Participation in certain sports has
been associated with the various social strata. For instance, golf and tennis are called
“country club” sports. Polo is a sport of the “rich and famous.” Bowling is usually
thought of as the “blue-collar” sport of the working class.
As with sex roles, the relationship between social class and sport is now shifting.
Golf is now being enjoyed by people of all income levels and sports like mixed martial
arts continue to attract both blue- and white-collar populations. While there appears
to be valid evidence to support the notion that sport participation is related to social
class, studies of sport have found that the higher one’s social class, the greater one’s
involvement in sports.24 Many believe that sport and entertainment are perfectly
suited to capitalize on the social qualities of a “New America.” In an era where the
Internet is eliminating physical and cultural boundaries and creating a larger global
community, sport provides a platform to augment these “pastime” exchanges.
Although these exchanges are often still tied to economic factors, i.e., what one can
afford, sport serves as an escalator that provides opportunity.
232
6
Photo 6.2 Polo is a sport that has typically appealed to the upper class.
Attending a professional basketball or hockey game, once affordable for the whole
family, is now a more costly endeavor, therefore today’s consumers tend to weigh
the pros and cons of attending against the array of entertainment alternatives, i.e.
media and other forms of entertainment. Some choose to spend the money, others
not, but, the opportunity for exchange still exists. In addition, as the roles of social
class continue to shift so do value exchange components that affect their purchasing
decisions. For in many instances season tickets options to these events, which used
to be readily affordable, can only be enjoyed by wealthy corporate season ticket
holders today.
Traditionally, NASCAR fans are stereotypically “good ol’ boys” with “blue-collar”
values. However, NASCAR has turned into a multibillion-dollar-a-year industry and
a marketing success story. During this tremendous growth, the sport is moving
beyond its “good-ol’-boy” mentality and reaching a new market in yuppie America.
Just consider the demographics of the NASCAR fan. Approximately 42 percent of
NASCAR fans earn $50,000 or more per year, compared with 39 percent of the entire
U.S. population. At the other end of the wage scale, 39 percent of the U.S. population
earns under $30,000, compared with 29 percent of NASCAR fans.25
233
Psychographic segmentation
Psychographic segmentation is described as grouping consumers on the basis of
a common lifestyle preference and personality. Because personality alone is very
difficult to measure and has not been linked to sports behavior, few sports marketing
practitioners find it useful alone. The results of one recent study suggest that
individuals who are most likely to identify with a team are those who are most likely
to seek out and enjoy social exchanges. The researchers suggest that marketing plans
should be designed to emphasize communal aspects of events and that individuals
rated high on extraversion, agreeability, and materialism may be more responsive to
such promotions. Psychographics, however, looks more toward lifestyle preferences
and less toward specific personality measures.
Psychographic segments are believed to be more comprehensive than other
types of segmentation, such as demographics, behavioral, or geodemographic.
As consumer behavior researcher Michael Solomon points out, “Demographics
allow us to describe who buys, but psychographics allows us to understand why
they do.”26 For this reason, many sports marketers have chosen to segment
their markets on the basis of psychographics. To gain a better understanding of
consumers’ lifestyles, marketers assess consumers’ AIO dimensions, or statements
describing activities, interests, and opinions (AIO). The three AIO dimensions are
shown in Table 6.3.
Typically marketers quantify AIOs by asking consumers to agree or disagree with
a series of statements reflecting their lifestyle. These statements can range from
measures of general interest in sports to measures focusing on a specific sport. As
seen in Table 6.3, many of these AIO dimensions relate indirectly or directly to sports.
For example, sports, social events, recreation, and products may have a direct link
to sports, whereas club memberships, fashion, community, and economics may be
indirectly linked.
An example of psychographic segmentation in the fresh water fishing market can be
seen in Table 6.4. This table illustrates a fisherman’s lifestyle based on research from
SRDS: The Lifestyle Market Analyst/National Demographic and Lifestyle. This type of
information examines activities and interests of fishermen to determine what products
and services might be successfully marketed to this group. For example, many
Table 6.3 AIO dimensions
Activities Interests Opinions

Work Family Themselves
Hobbies Home Social issues
Social events Job Politics
Vacation Community Business
Entertainment Recreation Economics
Club membership Fashion Education
Community Food Products
Shopping Media Future
Sports Achievements Culture
Source: Journal of Advertising Research
234
professional fresh water fishing tournaments are sponsored by investment companies
to capitalize on this popular activity of fishing.
Marketers can also segment and target consumers by combining their lifestyles,
obtained through AIOs, with their values. This method is called VALS, which is an
acronym for values and lifestyles.27 Values are “desirable, trans-situational goals,
varying in importance, that serve as guiding principles in people’s lives.” The VALS
model places consumers into one of eight segments based on their values. These
segments range from innovators at the top to survivors at the bottom. Consumers are
further segmented based on their affinity for ideals, achievement, and self-expression.
For example, a consumer categorized as an innovator who values achievement
would be motivated to seek products and services that convey status and success
to others. Knowing this, marketers are able to tailor strategies that reach these types
of consumers and impact them accordingly. Some researchers consider the VALS
method to be “more elegant and fundamental” than the AIO approach.
Table 6.4 Lifestyle Analysis Report: Lifestyle Ranking Index
Sports & Leisure: Go Fresh Water Fishing,1yr (A)

Lifestyle Category: Psychographics
Lifestyle Title Count Users / Index
100 HHs
Try to Buy Goods Produced by Own Country, Agr (A)
Like Spending Most Time Home with Family, Agr (A)
37,764,670
49,590,631
100.40
131.84
108
107
6
Advertising to Kids Is Wrong, Agr (A) 33,121,346 88.05 106
How I Spend Time Is More Important than Money, Agr (A) 44,704,816 118.85 105
Consider Myself a Spiritual Person, Agr (A) 42,487,608 112.95 105
My Faith is Really Important to Me, Agr (A) 43,215,029 114.89 105
Only Go Shopping to Buy Something I Really Need, Agr (A) 49,278,623 131.01 105
Always Look for Special Offers, Agr (A) 44,640,336 118.68 105
Rely on TV To Keep Me Informed, Agr (A) 37,577,721 99.90 105
Have a Keen Sense of Adventure, Agr (A) 34,670,003 92.17 105
Rely on Radio to Keep Me Informed, Agr (A) 20,406,883 54.25 104
Typically Avoid Watching TV Commercials, Agr (A) 35,607,315 94.66 104
Consider Myself a Creative Person, Agr (A) 45,697,334 121.49 104
Do Some Sport/Exercise Once a Week, Agr (A) 39,187,986 104.18 103
Rely on Newspaper to Keep Me Informed, Agr (A) 25,910,852 68.89 103
Prefer Specialty Store because Employee Knowledge, Agr (A) 25,746,422 68.45 101
People Have a Duty to Recycle, Agr (A) 41,615,117 110.64 101
Always Look for Brand Name, Agr (A) 25,135,001 66.82 101
Prefer to Buy Products from Specialty Stores, Agr (A) 19,425,898 51.64 100
Prefer Specialty Stores because Have Best Brands, Agr (A) 15,450,159 41.08 100
Listen Less to Non-Internet Radio because of Internet, Agr (A) 8,665,177 23.04 99
Ban Products that Pollute, Agr (A) 25,398,600 67.52 99
Would Pay More for Environmentally Friendly Products, Agr (A) 24,595,905 65.39 99
Rely On Magazines to Keep Me Informed, Agr (A) 9,967,361 26.50 99
Interested in The Arts, Agr (A) 28,021,405 74.50 99
Like to Stand Out in a Crowd, Agr (A) 15,827,240 42.08 97
Source: PRIZM 2010, Experian Marketing Solutions, Inc, 2010.
235
Geographic segmentation
Geographics is a simple, but powerful, segmentation basis. Certainly, this is critical
for sports marketers and as long-standing as “rooting for the home team.” All sports
teams use geographic segmentation; however, it is not always as straightforward as
it may initially seem. For instance, the Dallas Cowboys, Chicago Bulls, Atlanta Braves,
and the Fighting Irish are all known as “America’s Team.”
Geographic segmentation can be useful in making broad distinctions among local,
regional, national, and international market segments. International or multinational
marketing is a topic of growing interest for sports marketers. For example, Major
League Baseball has held regular-season games in Japan, Mexico, and Puerto Rico,
and the NBA games are televised in 215 countries in 47 languages.28 The NFL has also
expanded internationally and now broadcasts games in 234 countries and territories
in 31 languages.29 As the Spotlight on International Sports Marketing indicates, the
leagues are realizing that the key to growth is going global.
NBA continues to grow internationally
MIAMI (AP) – Over nearly a two-week spent on laying more groundwork

stretch in January, the Detroit Pistons for the league to keep evolving
play four straight “home” games. internationally.
First comes Utah, then New York, “Look, if you said 10 years ago
followed by Boston and Orlando. that we were going to be playing
It’s a most unusual run of home regular-season games in Europe, I
games - since the one against the would have probably said, ‘Not a
Knicks will be played in London. chance,’” Miami coach Erik Spoelstra
The league calls itself the National said. “And last year they played two
Basketball Association, though the games over there. So anything’s
National part hardly tells the whole possible. The fan base continues to
story. Maybe now more than ever, grow over there. It’s cool to be part of
the NBA continues to look for growth a league that has become so global.”
on the international side of the game, The numbers are eye-popping.
a stretch that seems to have started The league’s games are now shown
when the group of U.S. players in 215 countries and territories.
forever to be known as the Dream The NBA says a total of 114 games
Team took center stage at the 1992 have been played in 32 international
Barcelona Olympics. cities across 17 foreign countries
Commissioner David Stern has since 1988. Through social media,
talked for years about the prospects the league says it engages 320
of more NBA games, possibly million fans – that’s more than the
even teams, abroad. On Thursday, entire U.S. population - across the
Stern announced his plan to step globe, and seems to put the NBA at
down in 2014, but it’s certain that the front when it comes to interest
at least some - probably quite a bit internationally among the four major
- of his remaining tenure will be U.S. leagues.
236
Stern says international potential is the calendar flips from one year to
an area “of extreme importance” for the next.)
the league, which is clear. The NBA But in a global economy, and
has a newly opened office in Brazil, as the dominant force in a global
which will play host to the World Cup game, reaching the billions of
in 2014 and the Olympics in 2016. people who aren’t exposed to
There’s an NBA office in Mumbai elite-level basketball remains a top
now, for the growing market in India. priority. That was even illustrated on
And Stern said he wasn’t even sure Thursday, when Stern’s decision to
the league would be able to respond leave the commissioner’s office was
to all the requests from firms there to announced, but with the caveat that
do business with the NBA. he will continue helping the NBA with
“It’s the reality of the game,” Stern certain issues - international ones in
said. “There has been enormous particular.
improvement in the quality of the “At our urging we are going
basketball around the world. In the to also sit down with David, and
London Olympics on 11 of the 12 have him continue to help us to be
teams, we had 59 current or former available to the partners or to the
NBA players. That just speaks to new commissioner after that time, to
the quality of the international help us in particular on new projects
competition. The quality being that
international players make our
or probably international projects,”
said Minnesota Timberwolves owner
6
game better by playing in the NBA, Glen Taylor. “We just think that his
and then they return to play for the leadership will be important to our
national teams.” future.”
Even before the league formally Markets differ widely from one
announced the Pistons-Knicks game country to the next. Interest in certain
in London - which will bring reigning players, apparently, does not.
gold medalists Tyson Chandler and Earlier this year, the NBA released
Carmelo Anthony of the Knicks back the list of best-selling jerseys in
to the city where they helped the U.S. international markets. In China,
win the Olympic title - fans in England the top three were the Los Angeles
were asking around about tickets. Lakers’ Kobe Bryant, Chicago’s
“I think it is a good thing,” Derrick Rose and Miami’s LeBron
Chandler said. “I think the game is James, respectively. In Europe, the
slowly turning into a global game. order was the same. In Latin America,
I think it’s good for everybody. It’s Bryant was again No. 1, followed by
good for the fans over there, it’s good James and Rose.
for the game, it’s good for players as Notice a trend there?
well, as long as it’s done correctly.” “Every time I go to another
The ideas for foreign growth country, I’m always amazed by where
have been a constant in the NBA, the game’s going,” James said. “I
including Stern’s oft-repeated hope of think the interest in our game just
eventually adding a division of teams keeps growing. You’re talking about
in Europe. (He has long said the idea billions of people in this world, and a
is 10 years away, which has almost lot of people know the NBA.”
become a bit of a running joke since There were seven preseason games
his prediction never changes even as abroad this season: Istanbul, Milan,
237
Berlin, Barcelona, Shanghai, Beijing Source: http://www.nba.com/2012/

and Mexico City were the host cities. news/10/26/nba-international-growth.
Each venue sold out, the NBA said. ap/index.html. Rightsholder: NBA.com.
Given the interest, and given the “The NBA and individual member team
identifications reproduced herein are used
dollars that are out there, no one
with permission from NBA Properties,
would be surprised to see more NBA
Inc. © 2014 NBA Properties, Inc. All rights
games abroad - and regularly.
reserved.”
“I would never underestimate the
creativity of the league,” Spoelstra said.
The physical climate also plays a role in segmenting markets geographically. Classic
examples include greater demand for snow skiing equipment in Colorado and
surfboards in Florida. However, Colorado ski resorts have the greatest number of
sports tourists who come from Florida, hardly thought of as a snow ski mecca.
Therefore, segments of sports consumers may exist in unlikely geographic markets.
In this example, the psychographics of the sports consumer may be more important in
predicting behavior than geographic location.
Although the climate plays an important role in sports, marketers have attempted to
tame this uncontrollable factor. For instance, tons of sand was shipped to Atlanta,
creating beach-like conditions, for the first ever Olympic beach volleyball competition.
The creation of domed stadiums has also allowed sports marketers to tout the perfect
conditions in which fans can watch football in the middle of a blizzard in Minnesota or
during the middle of a thunderstorm in Houston, Texas.
Behavioral segmentation
For sports marketers engaged in the strategic sports marketing process, two common
goals are attracting more fans and keeping them. Behavioral segmentation lies at the
heart of these two objectives. Behavioral segmentation groups consumers based
on how much they purchase, how often they purchase, and how loyal they are to a
product or service.
Interestingly, in today’s professional sports environment, loyalty is an increasingly
important topic. Many professional sports teams have held their fans and cities
hostage, and cities are doing everything they can to keep their beloved teams.
Taxpayers nationwide have paid more than $14 billion for stadiums and arenas
during the past 20 years. This new construction and renovation was done largely
to keep team owners satisfied and curb any threat of moving. For 2012–2013,
the value of major league arenas and stadiums opening was over $10 billion. Add
collegiate and minor league facility construction, and the number increased beyond
$19 billion.30
Franchises and players within each team move so rapidly that fan loyalty becomes a
difficult phenomenon to capture. The day of the lifelong fan is over. Because of this,
fans may identify more with individual players or even coaches (e.g., Derek Jeter and
the Yankees, Kobe Bryant and the Lakers, or Frank Beamer and Virginia Tech Football)
than they do with teams. According to some sports marketing experts, next to wins,
fans like to see famous faces on the field.31 This is true even in team-dominated
sports, such as football.
238
Fans may be more concerned with the individual performance of Albert Pujols
than they are with the St. Louis Cardinals. Certainly, sports marketers have to
monitor this trend of diminishing loyalty to a team. However, some sports fans
show extreme loyalty by purchasing personal seat licenses (PSLs). PSLs require
fans to pay a leasing fee for their seats. This fee would guarantee the consumer
his or her seat for several years. The PSL, of course, demonstrates the extreme
devotion of a group of fans. For example, NFL fans in Dallas had to pay PSLs of
up to $150,000 just for the right to purchase season tickets at the new Cowboys
Stadium.
Sports marketers have recently taken a lesson in loyalty marketing from other
industries and are creating loyalty marketing programs. A study by Pritchard and
Negro32 found that these programs are effective when they build on the genuine
affinity fans have for their teams, rather than rewarding attendance alone. Increasing
fan interaction with players, coaches, and the entire organization through direct access
or personal communication was shown to be much more important to the success of
loyalty programs than rewarding attendance.
Along with behavioral segmentation based on loyalty to a team or sports product,
consumers are frequently grouped on the basis of other attendance or purchasing
behaviors. For instance, lifelong season ticket holders represent one end of the usage
continuum, whereas those who have never attended sporting events represent the
other end. A unique marketing mix must be designed to appeal to each of these two
groups of consumers.
6
Benefits segmentation
The focus of benefits segmentation is the appeal of a product or service to a group
of consumers. Stated differently, benefits segments describe why consumers
purchase a product or service or what problem the product solves for the consumer.
In a sense, benefits segmentation is the underlying factor in all types of marketing
segmentation in that every purchase is made to satisfy a need. Benefits segmentation
is also consistent with the marketing concept (discussed in Chapter 1) that states that
organizations strive to meet customers’ needs.
Major shoe manufacturers, such as Nike, focus on “benefits sought” to segment
markets. In fact, Nike’s mission is to bring inspiration and innovation to every athlete
in the world. This includes both the elite athletes and professional performers as well
as the casual performer. Some consumers desire a high-performance cross-training
shoe, whereas others want a shoe that is more of a fashion statement. Nike is a
fashion brand. Consumers that wear Nike products do not always buy it to participate
in sport. Nike produces sportswear products from manufacturing waste therefore
enhancing the development opportunities that satisfy a consumer market, i.e.
sunglasses and jewelry. Nike focuses on personal benefit associated with the use of
its products and the values satisfied by this product use.33
Golf ball manufacturers also try to design products that will appeal to the specific
benefits sought by different groups of golfers. Pro V1 has enhanced aerodynamics
with slightly higher flight for longer distance, soft feel, and Drop-And-Stop control. DT
SoLo gives the ultimate combination of distance with soft feel and guaranteed cut-
proof durability. NXT Tour has long distance off the driver and improved control with
long irons. The Titleist DT Spin offers a combination of long tee-to-green distance,
wound-ball spin, improved feel, and guaranteed cut-proof durability, whereas the
239
Titleist DT Distance offers golfers longer and straighter two-piece distance with
cut-proof durability. Sports marketers really hit a home run when they design
products that satisfy multiple needs (i.e., distance, feel, accuracy, durability) of
consumers.
Choosing more than one segment

Although each of the previously mentioned bases for segmentation identifies groups
of consumers with similar needs, it is common practice to combine segmentation
variables. An example of combining segmentation approaches is found in a study of
the golf participant market.34 A survey was conducted to determine playing ability,
purchase behavior, and the demographic characteristics of public and private course
golfers. The resulting profile produced five distinct market segments that combine
some of the various bases for segmentation discussed earlier in the chapter. These
five segments are shown in Table 6.5.
Table 6.5 Five market segments for golf participants
Competitors (18.6 percent)

• Have a handicap of less than 10
• Indicate love of game
• Play for competitive edge
• Practice most often
• Most likely to play in league
• Own most golf clothing
• Are early adopters (e.g., third wedge)
• Buy most golf balls
Players (25.7 percent)
• Have handicap between 10 and 14
• Use custom club makers
• Practice a lot
• Like competition
• Exercise and companionship are important
• Most likely to take out-of-state golf vacation
Sociables (17.8 percent)
• Often play with family
• Purchase from off-price retailers
• Play for sociability
• Most likely to take winter vacation to warm destination
Aspirers (18.4 percent)
• Love to play; hate to practice
• Most inclined to use golf for business purposes
• Golf shows are important as source of information
• Competition and sociability are unimportant reason to play
240
Casual (19.5 percent)

• Have handicap of 26 or more
• Do not practice
• More women in this segment
• Play less frequently than other segments• Own the least golf clothing
• Purchase the fewest golf balls
• Recreation is most important factor for play
• Exercise and companionship are moderately important
• Least likely to take a golf vacation
• Most likely to shop in course pro shop
Source: Sam Fullerton and H. Robert Dodge, “An Application of Market Segmentation in a Sports
Marketing Arena: We All Can’t Be Greg Norman,” Sport Marketing Quarterly, vol. 4, no. 3 (1995),
43–47.
Geodemographic segmentation
One of the most widely used multiple segment approaches in sports is
geodemographic segmentation. Although geographic segmentation and
demographic segmentation are useful tools for sports marketers, combining
geographic and demographic characteristics seems to be even more effective in
6
certain situations. For instance, many direct marketing campaigns apply the principles
of geodemographic segmentation.
The basis for geodemographic segmentation is that people living in close proximity
are also likely to share the same lifestyle and demographic composition. Because
lifestyle of the consumer is included in this type of segmentation, it is also known as
geolifestyle. Geodemographics allows marketers to describe the characteristics of
broad segments such as standard metropolitan statistical areas (SMSAs) all the way
down to census blocks (consisting of roughly 340 houses). The most common unit
of segmentation for geodemography is the zip code. Claritias, Inc., a marketing firm
leading the charge in geodemographics, established the PRIZM system in the 1970s.
PRIZM is used to identify potential markets for products. PRIZM affords marketers the
benefits of household-level precision in applications such as direct mail, while at the
same time maintaining the broad market linkages, usability, and cost-effectiveness of
geodemographics for applications such as market sizing and site selection.35 Each unit
of geography was originally classified as one of 62 PRIZM clusters. However, PRIZM
NE (New Evolution) released in 2004, replaced the original PRIZM system (now
referred to as PRIZM 62). PRISM NE utilizes one of 66 PRIZM clusters, which have
been given names that best characterize those populations. Some examples of the
PRIZM 62 cluster categories are shown in Table 6.6.
Target markets
After segmenting the market based on one or a combination of the variables
discussed in the previous section, target markets are chosen. Target marketing
is choosing the segment(s) that will allow an organization to most efficiently and
effectively attain its marketing goals.
241
Table 6.6 PRIZM cluster categories and descriptions
Uppper Crust – Ranked number 1 of all 66 clusters, the upper class segment includes those who
are older and wealthier without children. This group is 55 or older and takes on more management
roles in the workforce. This neighborhood would be filled with more prestigious individuals who
would drive cars such as Lexus LS.
God’s Country – Populated by educated, upscale professionals, married executives who choose to
raise their children in the far exurbs of major metropolitan areas. Their affluence is often supported
by dual incomes. Lifestyles are family and outdoor centered.
Bohemian Mix – Describes most of our nation’s college towns and university campus
neighborhoods. With a typical mix of half locals (towns) and half students (gowns), it is totally
unique. Thousands of penniless 18- to 24-year-old kids, plus highly educated professionals with a
taste for prestige products beyond their means.
Winner’s Circle – Sixth in American affluence and typified by new money, living in expensive
new mansions in the suburbs of the nation’s major metros. These are well-educated, mobile
executives and professionals with teen-age families. Big producers, prolific spenders, and global
travelers.
Source: How to Use PRIZM (Alexandria, VA: Claritas, 1996).
Sports marketers must make a systematic decision when choosing groups of

consumers they want to target. To make these decisions, each potential target
market is evaluated on the basis of whether it is sizable, reachable, and measurable,
and whether it exhibits behavioral variation. Let us look at how to judge the worth of
potential target markets in greater detail.
Evaluation of target markets

Sizable
One of the first factors to consider when evaluating and choosing a potential target
market is the size of the market. In addition to the current size of the market, sports
marketers must also analyze the estimated growth of the market. The market growth
would be predicted, in part, through environmental scanning, already discussed in
Chapter 2.
Sports marketers must be careful to choose a target market that has neither too many
nor too few consumers. If the target market becomes too large, then it essentially
becomes a mass, or undifferentiated, market. For example, we would not want to
choose all basketball fans as a target market because of the huge variations in social
class, lifestyles, and consumption behaviors.
However, sports marketers must guard against a target market that is too small and
narrowly defined. We would not choose a target market that consisted of all left-
handed female basketball fans between the ages of 30 and 33 who live in San Antonio
and have income levels between $40,000 and $50,000. This market is too narrowly
defined and would not prove to be a good return on our marketing investment.
One common trap that marketers fall into with respect to the size of the potential
market is known as the majority fallacy. The majority fallacy assumes that the largest
group of consumers should always be selected as the target market. Although in
some instances the biggest market may be the best choice, usually the competition
is the fiercest for this group of consumers; therefore, smaller and more differentiated
targets should be chosen.
These smaller, distinct groups of core customers that an organization focuses on
are sometimes referred to as a market niche. Niche marketing is the process
242
Table 6.7 Market segment vs. market niches
Segment Niche
Small mass market Very small market
Less specialized Very specific needs
Top down (go from large market into smaller Bottom up (cater to the smaller pieces of the
pieces) market)
of carving out a relatively tiny part of a market that has a very special need not
currently being filled. By definition, a market niche is initially much smaller than a
segment and consists of a very homogeneous group of consumers, as reflected
by their unique need. The differences between market segments and niches are
highlighted in Table 6.7. Hanas (2007) provides support for the use of niche marketing
in the sports industry, emphasizing that niche sport properties should be aware
of their influence on several different communities. Properties need to be aware
of their image, be cognizant of the image potential, and how their image may be
attractive to potential sport properties. Focusing on the image intricacies, niche
marketing may enable sport properties to enhance the linkage between the wants
and needs of the consumer with sponsors and sponsees. For these reasons niche
sport properties need to know how to best reach and connect with the different
communities. Niche sport marketers should have a thorough grasp on each of these
communities and what each of those communities looks like from a demographic and
psychographic perspective. Organizations and sports such as professional bull riders,
6
paintball leagues, hunting, even professional gamblers and eaters have always been
present but have increased in status and popularity with fans as well as sponsors over
recent years.
These niche leagues and sports have the ability to reach a small target audience
and have been seen to be more aggressive in collaborating with marketers. By
providing alternative platforms to marketers, they have multiplied the sponsorship
opportunities.36
One specific example of a niche market is individuals (as opposed to corporations)
who have financially invested in the sports franchise through the purchase of season
tickets for many seasons. In addition to their financial investment, these loyal fans
have a high emotional investment in the team. To retain these valuable consumers,
sports marketers must develop a specialized marketing mix to reinforce and reward
the loyalty that these fans have shown to the organization.
Reachable
In addition to exploring the size of the potential target market, its ability to be reached
should also be evaluated. Reach refers to the accessibility of the target market. Does
the sports marketer have a means of communicating with the desired target market?
If the answer to this question is no, then the potential target market should not be
pursued.
Traditional means of reaching the sports fan include mass media, such as magazines,
newspapers, and television. In today’s marketing environment it is possible to reach
a specific target market with technology such as the Internet, specifically through
social media. According to Sports Fan Graph, professional sports have recently been
utilizing this avenue to promote leagues, teams, and athletes through Facebook. The
NBA has over 24 million fans “likes” on Facebook, MLB 5.4 million “likes” while the
243
Web 6.2 Reaching women’s soccer fans on the Web

Source: ESPN.com
NFL has over 10.5 million fan “likes”. In fact when looking at the NFL, and including
all 32 teams, almost 1 in 10 Americans have declared their support for an NFL team
on Facebook37 In addition to the Internet, satellite technology products, such as
DIRECTV, are allowing sports fans across the United States access to their favorite
teams. This, of course, opens new geographic segments for sports marketers to
consider.
Measurable
The ability to measure the size, accessibility, and purchasing power of the potential
target market(s) is another factor that needs to be considered. For a market segment
to represent a good target market, sport marketers must be able to identify and
then measure the number of people in that segment. If a sport marketer has no
measurable criteria to identify the size or scope of that market segment, a marketer
may want to reconsider basing a marketing campaign on that segment. Segments
may be composed of multiple criteria; however, for segments to be measurable they
should be evaluated against the following criteria:
X Identifiable – Differentiation among attribute measures must occur so they can be
identified.
X Accessible – Market segments must be reachable through communication and
distribution channels.
X Sustainable – Market segments should be sufficiently large to justify the
resources required to target them.
X Unique needs – Clarify considerations and offerings as they relate to the needs of
the consumer.
X Durable – Segments should be measured to identify stability and to minimize cost
and the frequency of change.
244
One of the reasons demographic segmentation is so widespread is the ease with

which characteristics such as age, gender, income level, and occupation can be
assessed or measured. Psychographic segments are perhaps the most difficult to
measure because of the complex interaction of personality and lifestyle.
Behavioral variation
Finally, if the target market is sizable, reachable, and measurable, sports marketers
must examine behavioral variation. We want consumers within the target market to
exhibit similar behaviors, attitudes, lifestyles, and so on. In addition, marketers want
these characteristics to be unique within a target market. This component is the
underlying factor in choosing any target market.
An example of behavioral variation among market segments is the corporate season
ticket holder versus the individual season ticket holder. Although both corporate
season ticket holders and individual season ticket holders may be fans at some level,
their motivation for attending games and attitudes toward the team may be quite
different. These variations would prompt different approaches to marketing to each
segment.
How many target markets?

Now that we have evaluated potential target markets, do we have to choose just
one? The answer depends largely on the organization’s marketing objectives and its
6
resources. lf the firm has the financial and other resources to pursue more than one
target market, it does so by prioritizing the potential target markets.
The market distinguished as the most critical to attaining the firm’s objectives is
deemed the primary target market. Other, less critical markets of interest are called
secondary, tertiary, and so on. Again, a unique marketing mix may need to be
developed for each target market, so the costs associated with choosing multiple
targets are sometimes prohibitive.
Positioning
Segmentation has been considered and specific target markets have been chosen.
Next, sport marketers must decide on the positioning of their sporting events,
athletes, teams, and so on. Positioning is defined as fixing your sports entity in the
minds of consumers in the target market.
Before discussing positioning, three important points should be stressed. First,
positioning is dependent on the target market(s) identified in the previous phase of
the market selection decisions. In fact, the same sport may be positioned differently
to distinct target markets. As the spotlight demonstrated earlier in the chapter, the
positioning of the NBA and other professional sports is changing with the opening of a
new target market – women.
Second, positioning is based solely on the perceptions of the target market and
how its members think and feel about the sports entity. Sometimes positioning is
mistakenly linked with where the product appears on the retailer’s shelf or where
the product is placed in an advertisement. Nothing could be further from the truth.
Position is all about how the consumer perceives your sports product relative to
competitive offerings.
245
Third, the definition of positioning reflects its importance to all sports products. It
should also be noted that sports leagues (Arena Football versus NFL), sports teams
(e.g., Dallas Cowboys as “America’s Team”), and individual athletes (e.g., Danica
Patrick as a female athlete in a male-dominated sport, or the NFL’s perennial bad boy,
Michael Vick) all must be positioned by sports marketers.
How does the sports marketer attempt to fix the sports entity in the minds of
consumers? The first step rests in understanding the target market’s perception
of the relevant attributes of the sports entity. The relevant attributes are those
features and characteristics desired in the sports entity by the target market. These
attributes may be intangible, such as a fun atmosphere at the stadium, or tangible,
such as having cushioned seating. Golf manufacturers such as Slazenger have
positioned their equipment as the “standard of excellence” and having “impeccable
quality.”
In another example, consider the possible product attributes for in-line skates. Pricing,
status of the brand name, durability, quality of the wheels, and weight of the skate
may all be considered product attributes. If serious, competitive skaters are chosen
as the primary target market, then the in-line skates may be positioned on the basis
of quality of the wheels and weight of the skate. However, if first-time, recreational
skaters are considered the primary target market, then relevant product attributes may
be price and durability. Marketers attempt to understand all the potential attributes
and then which ones are most important to their target markets through marketing
research.
Perceptual maps
Perceptual mapping is one of the few marketing research techniques that
provides direct input into the strategic marketing planning process. It allows
marketing planners to assess the strengths and weaknesses and to view the
customer and the competitor simultaneously in the same realm. Perceptual
mapping and preference mapping techniques have been a basic tool of the applied
marketing research profession for over 20 years. It is one of the few advanced
multivariate techniques that has not suffered very much from alternating waves of
popularity and disfavor.38
Ad 6.3 47 Brand positions itself as the official licensee of the National

Basketball Association.
Source: Forty Seven Brand
246
Golf Soccer Hockey Football Boxing
Nonviolent Violent
Figure 6.3 One-dimensional perceptual map of sports
Perceptual maps provide marketers with three types of information. First, perceptual
maps indicate the dimensions or attributes that consumers use when thinking about
a sports product or service. Second, perceptual maps tell sports marketers where
different sports products or services are located on those dimensions. The third type
of information provided by perceptual maps is how your product is perceived relative
to the competition.
Perceptual maps can be constructed in any number of dimensions, based on the
number of product attributes being considered. Figure 6.3 demonstrates a one-
dimensional perceptual map, which explores the positioning of various spectator
sports based on the level of perceived aggression or violence associated with the
sports. This hypothetical example can be interpreted as follows: Boxing is seen as the
most violent or aggressive sport, followed by football, hockey, and soccer. However,
golf is the least aggressive sport. These results would vary, of course, based on who
6
participated in the research, how aggression or violence is defined by the researchers,
and what level of competition is being considered (i.e., professional, high school, or
youth leagues).
Although it is easy to conceptualize one-dimensional perceptual maps, the number of
dimensions is contingent upon the number of attributes relevant to consumers. For
example, Converse positions its shoes for multiple uses like action sports, basketball,
cheerleading, cross-training or fashion. New Balance, however, positions its shoes
solely on the basis of running.
A study using perceptual mapping techniques found that consumers identify six
dimensions of sport (shown in Table 6.8). Although it is possible to create a six-
dimensional perceptual map, it is nearly impossible to interpret. Therefore, two-
dimensional perceptual maps were constructed that compared 10 sports on the six
dimensions identified by consumers.
Figure 6.4 shows a two-dimensional perceptual map using Dimension 4 (skill
developed primarily with others versus skill developed alone) and Dimension 5
(younger athletes versus broad age ranges of participants). Interpreting this perceptual
map, we see that football is considered a sport whose participants are younger
athletes and skill is developed primarily with others. Compared with football, golf is
seen as a sport for a broader range of participants with skills developed more on your
own. Using these results, sports marketers can better understand the image of their
sport from the perspective of various target markets and decide whether this image
needs to be changed or maintained.
247
Table 6.8 Six dimensions or attributes of sports
Dimension 1 Strength, speed, and endurance vs. methodical and precise movements
Dimension 2 Athletes only as participants vs. athletes plus recreational participants
Dimension 3 Skill emphasis on impact with object vs. skill emphasis on body movement
Dimension 4 Skill development and practice primarily alone vs. primarily with others
Dimension 5 A younger participant in the sport vs. participant ages from young to older
Dimension 6 Less masculine vs. more masculine
Source: James H. Martin, “Using a Perceptual Map of the Consumer’s Sport Schema to Help Make
Sponsorship Decisions,” Sport Marketing Quarterly, vol. 3, no. 3 (1994), 27–33.
Younger Athletes
Gymnastics Figure skating

Soccer
Football Tennis
Softball Track
Skill Developed Skill Developed
with Others Hockey Alone
Basketball
Golf
Broader Age Range of Participants
Figure 6.4 Two-dimensional perceptual map of sports
Repositioning
As suggested, sport marketers may use the results of positioning studies to change
the image of their sport. For instance, professional cycling, one of the most popular
sports in the world, has been marred by doping scandals in recent years. Cycling
took a big hit when the “Operation Puerto” case alleged that a number of riders had
accepted illegal doping substances, and that scandal was followed by the Tour de
France, which was tainted by the revelation that U.S. rider and Tour winner Floyd
Landis had failed both of his drug tests. Obviously this is not the image the cycling
federations and the cyclists themselves wish to project. Thus, the sport of cycling
was trying to reposition itself or change the image or perception of the sports entity
in the minds of consumers in the target market.
In response to those drug allegations, and in hopes of cleaning up the reputation of
the sport, Team Slipstream took a pro-active response. Team Slipstream, now Garmin-
Sharp Pro Cycling Team, is a professional cycling team based in the United States,
consisting of 29 riders who have subjected themselves to weekly drug testing,
instead of just waiting until race day to be tested.39 “It’s ensuring [to] the public, the
fans, and ourselves that our riders are clean,” said team director Jonathan Vaughters,
who retired from competitive racing in 2003. “It’s enormously important as far as
sponsors go to know that their team is not getting caught up in a scandal, and it’s
248
setting an example for young athletes.”40 Unfortunately, during this “repositioning
phase” a larger scandal emerged involving Lance Armstrong. In June 2012, The
United States Anti-Doping Agency charged Armstrong with having used illicit
performance-enhancing drugs.41 On August 24, 2012, the USADA announced that
Armstrong had been issued a lifetime ban from competition, applicable to all sports
which follow the World Anti-Doping Agency code. The USADA stripped Armstrong
of his seven Tour de France titles, highlighting that Armstriong had engaged in “the
most sophisticated, professionalized and successful doping programs that sport has
ever seen.”42 The Armstrong scandal further diminished repositioning efforts and
tarnished the industry. Therefore, cycling federations once again had to regroup,
refocus, and realign their market strategies. This situation further accentuates how
situations outside of a marketer’s control can adversely impact market strategy.
Cycling is not the only sports entity attempting to reposition itself. Following a
series of scandals with coaches and athletes, the NCAA is also experiencing image
problems. And let’s not forget baseball players such as slugger Barry Bonds, who
has some problems of his own. Individual athletes can produce image problems
for themselves, a city, as well as a sponsor. LeBron James and “The Decision” left
himself, Cleveland, and Nike to re-establish an image and reposition within the sports
industry. One professional sport team, albeit a temporary tenant, can even serve to
reposition an entire city, as discussed in the accompanying article.
BASEBALL CONTINUES TO ASSIST STORM RELIEF EFFORTS

6
The devastation wrought by in the efforts being made to help
Hurricane Sandy has taken a toll on those affected most by the storm.
communities where Major League In addition, relief efforts have by
Baseball teams live alongside fans MLB, its clubs and employees been
as neighbors and friends, and now ongoing to deliver truckloads of
many of those neighbors and friends supplies and administer help to
need some help to recover and devastated areas.
rebuild. “As our thoughts and prayers
It takes a team to get through a remain with all those who have
crisis like the damage inflicted in been impacted by this tragedy,
late October, and baseball’s team of it is a privilege for Major League
teams, players and fans around the Baseball to support our fans and
country, is gathering forces to help their communities during this
assist those in need in the wake of urgent time of need,” Commissioner
the “superstorm” that hit with such Bud Selig said. “All of us at Major
impact in New York, New Jersey and League Baseball are grateful to our
elsewhere on the Eastern seaboard society’s leaders, first responders
and inland areas. and volunteers, and we hope that our
To that end, Major League Baseball contribution to these humanitarian
announced that in conjunction organizations will assist in the vital
with the Major League Baseball relief efforts along the East Coast.
Players Association a donation of $1 This is a time when the resiliency
million is being made to benefit the of the great American spirit will
American Red Cross, the Salvation prevail.”
Army and Feeding America to assist Said MLBPA executive director
249
Michael Weiner: “Natural disasters and will immediately disperse the

know no boundaries, and this one contents from MLB and clubs as cold
was a direct hit that affected many weather sets in for many whose lives
in the MLBPA’s office personally. are in disarray.
On behalf of the MLBPA and its “What we experienced here at the
members, we are honored to join Jersey Shore was a storm within a
with the Commissioner’s Office in superstorm,” Rodriguez said. “We
making this contribution to support were already just trying to figure
the efforts of organizations working out the struggle that the economic
around the clock to help provide crisis left us, and then the storm has
various forms of relief and assistance compounded that even more. To
to those suffering in the aftermath make it worse, it’s right before the
of the storm, including many of our Thanksgiving holiday.
friends and neighbors in need.” “Normally, we would be serving
The message from Major League one in 10 of the residents in
Baseball, its players, its 30 teams Monmouth and Ocean Counties, or
and MLB.com is simple: Please about 127,000 people – even before
donate to the American Red Cross, the disaster. Immediately after the
the Salvation Army and Feeding disaster, we were able to open up
America. Help your neighbors and our shops, and we’ve been open
friends, and be a part of the team continuously every day, serving
bringing relief where it’s needed. upwards of 460,000 meals since
On Thursday, 62 more boxes filled Hurricane Sandy. But we’ve had to
with warm clothing and supplies do dual efforts – not only provide
were packed onto a truck at the the immediate relief because of the
Commissioner’s Office in Manhattan storm, but to also make sure that
and driven to hard-hit areas in those who can and have a table can
New Jersey. The first stop was to a have a Thanksgiving next week.”
social services community center in Rodriguez encouraged citizens to
Hoboken, a heavily flooded square- donate at foodbankmoc.org, as $10
mile town on the Hudson River. From allows them to provide more than 30
there it was down the turnpike to the meals.
Jersey Shore, where a major delivery “We’ve dealt with the immediate
was dropped off at The Foodbank sadness of the disaster, but I think the
of Monmouth and Ocean Counties, entire community is really gearing up
a facility whose wide coverage area to rebuild, and to recover our beloved
was in the bulls-eye of Sandy. Jersey Shore,” he said. “We’re in this
Carlos Rodriguez, executive for the long haul. Today, and now
director of The Foodbank, said his more than ever, we need to make
operation has been inundated with sure The Foodbank and the network
help since the storm through bulk of charities that we work with stay
truck dropoffs, like one semi that strong, so we can make sure that
showed up unsolicited from Indiana. Jersey stays strong.”
The Foodbank works with more Leo Pellegrini, director of health
than 250 emergency food programs, and human services for the City of
pantries, soup kitchens, shelters and Hoboken, oversaw the reception
low-income day care centers, so of many boxes off the MLB truck
they can connect to people in need and said the contents would be
250
distributed to the people in need, right hands. “People are suffering. To

those who have lost their clothing the people who follow Major League
and supplies. Baseball, we could really use more
“We’ve been getting a lot of food, clothing, water, whatever you
supplies from members of the can spare. Out here, they just don’t
community and outside the state of have it. Nothing’s open. No stores,
New Jersey, so we’ve kind of staged absolutely nothing.”
this area since it was devastated by Joanne Murray, a full-time
Hurricane Sandy,” he said. “It was a volunteer handling the processing of
grueling experience, but you have to relief supplies at St. Mary of the Sea,
thank the public safety – they came said her church has been “so blessed
through in a big spot for us. All the with people from all over the country
community members came in and coming through. The need is very
helped, especially our volunteers – great.”
going into buildings where we didn’t “They mostly need food, diapers,
have power for seven days. Our wipes, toilet paper, flashlights,
volunteers were delivering food to batteries,” Murray said. “Now we
our seniors who could not go from have to look at cleaning supplies,
the 14th floor all the way to the first because once lights come back on,
floor.”
On Nov. 9, MLB delivered several
vans filled with warm-weather
people need those. Some people
are going to need financial help as
well. Our parish has a big number
6
clothing, non-perishable food and of undocumented people here,
supplies to the hard-hit area of Far people who can’t pay their rent. We
Rockaway in the New York City also need to fund their short-term
borough of Queens. The first drop- financial needs.”
off was at the Food Bank Distribution With the Commissioner’s Office
Center in the Mott Haven section and MLBPA headquartered in
of the Bronx, where long food lines Manhattan, two storied teams in New
were common from corner to corner. York and about one-third of Major
Then the caravan went to St. Mary League cities directly affected by the
Star of the Sea and St. Gertrude storm, this obviously is a disaster
Parish, forming an assembly line of that struck home for baseball. But it’s
boxes that were then sorted into care one that touches every community in
packages for the long line there. some way, and baseball is gathering
There was no power anywhere in its resources to help.
sight, there were 6 p.m. ET curfews Living right in the path of the
and arrests, there was looting and destruction, the Yankees were among
robberies and broken lights whenever the first clubs to step up to support
emergency lights were set up at relief efforts, pledging $500,000
night. There were cries of frustration to the American Red Cross and
within a community looking for spearheading a blood drive Friday
support. that included tickets to a 2013 game
“It’s horrific,” said Rosemary for those who made donations to the
Lopez, associate executive director New York Blood Center.
for program services at the Advocacy “As a neighbor and community
Center of Queens County, a group member, the Yankees embrace
that helped MLB get supplies into the our role of stepping forward and
251
assisting the American Red Cross, dollar. And she urged fans to join the
which comes to the aid of so many effort by donating to the American
people through their tireless efforts,” Red Cross.
Yankees chairman Hal Steinbrenner “Just think,” she said. “Everybody
said in a statement announcing the here today, one dollar from all of us,
donation. what that can do. That can really,
Clearly, it’s going to take more really help.”
than the hometown team to It takes neighbors coming together
help, and baseball’s all about to help, and it really can add up.
teamwork. The Oakland A’s – the Giants’
One team that already has pledged neighbor in the Bay Area –
its support took team concept to announced that the team’s
the sport’s pinnacle: the Giants, Community Fund is accepting
2012 World Series champions after monetary donations to help those
an October in which they showed affected by Sandy. They’ll be sending
resilience on a baseball field that was the proceeds to the Salvation Army,
historic – but nothing compared to which is providing mobile feeding
the resilience needed now in areas hit units, shelters and clean-up kits, and
hard by Sandy. the Humane Society of the United
And so it was that the Giants’ States, which is helping animal
victory celebration – on the steps of rescue teams and providing supplies
City Hall before the crowd of about to animal shelters.
one million that attended the parade Team by team, fan by fan, neighbor
– began with thoughts and prayers by neighbor, baseball can help the
for people on the other side of the relief effort following one of the
country needing help. worst natural disasters in the nation’s
“As we gather together as a history.
community today to celebrate this In the days and weeks ahead,
joyous occasion,” emcee Renel baseball will be part of the healing
Brooks-Moon said as she began process for the region devastated by
the presentation, “we do want to Superstorm Sandy, and the message
take a moment first to recognize will continue to be spread on MLB.
those impacted by Hurricane Sandy com and MLB Network and in every
and mourn the lives lost from this possible way in every city in Major
disaster. League Baseball’s vast neighborhood
“Of course, the Giants share a rich of teams and fans:
and deep history with New York, so Please donate to the American
all of us, our thoughts and prayers Red Cross, the Salvation Army and
go out to everyone on the East Coast Feeding America.
affected by this disaster.”
Brooks-Moon then announced to Source: Article authors: John
the huge crowd gathered at Civic Schlegel and Mark Newman; http://
Center Plaza that Giants players are washington.nationals.mlb.com/news/
article.jsp?ymd=20121102&content_
planning to make many donations
id=40155972&vkey=news_chc&c_id=chc.
– with the Giants organization
Rightsholder: MLB.com.
matching those donations, dollar for
252
Summary several of the bases for segmentation

(e.g., geodemographic).
Chapter 6 focuses on the critical market
selection decisions, also referred to as Once market segments have been
segmentation, targeting, and positioning. chosen, the next market selection
Segmentation, the first market selection decision is picking a target market. Target
decision, is identifying consumers with marketing is choosing the segment or
common needs. Typically, the bases segments that will allow the organization
for segmentation of consumer markets to most effectively and efficiently achieve
include demographics, socioeconomics, its marketing goals. When evaluating
psychographics, behaviors, and potential target markets, care should be
benefits. Marketers using demographic taken to ensure the markets are the right
segmentation choose groups of size (neither too large nor too small),
consumers based on common ages, reachable (accessible), measurable
gender, ethnic background, and stage (i.e., size, purchasing power, and
of the family life cycle. Geographic characteristics of the segments can be
segmentation groups people who measured), and demonstrate behavioral
live in similar areas such as cities, variation (i.e., consumers share common
states, regions of the country, or even characteristics within the target market).
countries (e.g., the United States versus The final market selection decision is
international markets). Socioeconomic positioning. After the target market has
segmentation groups consumers on the
basis of similar income levels, educational
been chosen, sports marketers want
to position their products or fix them
6
levels, and occupations. Psychographic in the minds of the target markets.
segments are especially useful to sports Positioning is based on the perception
marketers; they are based on consumers’ or image that sports marketers want
lifestyles, activities, interests, and to develop or maintain for the sports
opinions. Behavioral segments are product. For example, a minor league
groups of consumers that are similar baseball team may want to position itself
on the basis of consumer actions, such as an inexpensive, family entertainment
as how often they purchase sports alternative. To understand how a
products or how loyal they are when sports product is positioned relative to
purchasing a sports product. Finally, its competition, perceptual maps are
benefits segmentation are groups of developed through marketing research
consumers attempting to satisfy similar techniques. By looking at perceptual
needs by consuming the sports product maps, sports marketers can identify
together. Sports marketers may choose whether they have achieved their desired
to segment their markets using one of image or whether they need to reposition
the previously mentioned segmentation their sports product in the minds of the
variables (e.g., demographics) or combine target market.
Key terms X demographic X geographic

segmentation segmentation
X AIO dimensions X ethnic background X market niche
X behavioral X family life cycle X majority fallacy
segmentation X geodemographic X market segmentation
X benefits segmentation segmentation X market selection
decisions
253
X mature market X psychographic X socioeconomic
X niche marketing segmentation segmentation
X perceptual maps X reposition X target marketing
X positioning X social class
Review questions Provide several examples of the

growth of international sports
1. Describe the key components of marketing.
market selection decisions and 8. What is behavioral segmentation?
indicate how market selection What are some of the common
decisions are incorporated into the behaviors that sports marketers
larger strategic marketing process. would use for segmentation
2. What is market segmentation? purposes?
Provide some examples of how 9. Define benefits segmentation and
sports marketers segment the sports discuss why benefits segmentation
participant market (those who play) is considered to be at the core of all
and the sports spectator market segmentation. What benefits do you
(those that watch). look for when attending a sporting
3. Discuss the various ways to event? Does your answer vary from
segment the sports market based event to event?
on demographics. Which of the 10. Define a target market. What are the
demographic bases are the most requirements for successful target
effective when segmenting the markets (i.e., how should each target
sports market and why? be evaluated)? Provide examples
4. Describe, in detail, the family of sports products or services that
life cycle and how it is used as a target two or more distinct markets.
strategic tool when segmenting 11. How many target markets should a
sports markets. What stage of the sports marketer consider for a single
family life cycle are you currently in? product?
How does this affect your sports 12. Describe positioning and discuss
participation and spectator behavior? how perceptual mapping techniques
5. Provide examples of sports you are used by sports marketers. What
believe would appeal to each of the is repositioning?
six social class categories (upper-
upper through lower-lower). What Exercises
sports appeal to all social class
segments? 1. Find two advertisements for sports
6. What are AIOs? What are VALS? products that compete directly
Describe the similarities and with one another. For example,
differences in obtaining each, and you may want to compare Nike
evaluate which is more effective at running shoes with Reebok running
segmenting consumers for sports shoes or King Cobra golf clubs
marketers. with Taylormade golf clubs. How is
7. Why is developing and maintaining each product segmented, targeted,
an international presence important and positioned? Are there more
for sports marketers? What further differences or similarities in these
considerations, if any, need to be market selection decisions?
taken into account when attempting 2. How is the health and fitness
to segment an international market? industry segmented in general?
254
Describe the segmentation, targets, (leagues) that have had to develop
and positioning of health and fitness repositioning strategies.
clubs in your area. 9. Find the Web sites for three
3. You are hired as the director of professional sports franchises and
sports marketing for a new minor go to their ticket section. How many
league hockey franchise in Chicago, special promotions do they offer?
a city that already has an NHL team. Which segment of the population is
Describe how you would segment, being targeted by each promotion?
target, and position your new Are any segments excluded? If so,
franchise. create a promotion targeting that
4. Describe the primary target market segment and explain why it would
for the following: NASCAR, the be effective.
Kentucky Derby, “The Rhino” 10. Choose a professional sports team
bowling ball, and the WNBA. Next, that performs poorly in attendance.
define a potential secondary target Locate its Facebook page on the
market for each of these sports Internet. (If you cannot find it,
products. choose another team.) Examine
5. Interview five consumers who have the content of the page. Are any
recently attended a high school special events or promotions
sporting event, five consumers being planned? How many friends/
who have recently attended a
college sporting event, and five
who have recently attended any
fans does the team have? As
far as you can tell, what kinds
of people are these (i.e. college
6
professional sporting event. Ask students, professionals, families,
them to identify why they attended etc.)? Develop a segmentation
this event and what benefits they strategy that revolves around
were looking for. Were their needs Facebook. How would you appeal to
met? each segment?
6. Develop a list of all the possible
product attributes that may be Internet exercises
considered when purchasing the
following sports products: a tennis 1. Using the Internet, find the
racquet, a basketball, and a mountain demographic profile for fans
bike. After you have developed the attending the LPGA (women’s
list of attributes, ask five people tour) versus the PGA (men’s tour).
which attributes they consider to be Are there differences? Use this
the most important for each product. information to comment on the
Do all consumers agree? Are there market selection decisions for the
some attributes that you may have LPGA.
omitted? Why are these attributes 2. Find two Internet sites that target
important in positioning? children interested in sports and two
7. How do you think the following races Internet sites that target the mature
are positioned: Boston Marathon, market. Note any similarities and
“Run Like Hell” 5k Halloween Race, differences between the sites.
and the Bowling Green 10k Classic? 3. Find two Internet sites for soccer.
Draw a two-dimensional perceptual One site should focus on U.S.
map to illustrate the positioning of soccer, whereas the other focus
each race. should be international. Comment
8. Provide examples of individual on the relative positioning of soccer
athletes, teams, and sports in the United States versus abroad
255
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wordpress.com/tag/youth-sports/.
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(2012). Available from: http://www.
Census Statistics on Population Totals
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By Race, 1790 to 1990, and By Hispanic
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21 “Group Seven Communications, Inc.
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Projections (2013). [Online]. Available
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infoseek.com.
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22 Irvine Clark III and Ryan Mannion, “Marketing
8 Street & Smith’s Sport Business Journal,
Sport to Asian American Consumers,” Sport
“What are Today’s Youth Playing and
Marketing Quarterly (2006), pp. 15, 20–28.
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Available from: http://www.docstoc.com/
(March 27, 2006).
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9 Kaiser Foundation, “Generation M2:Media
American-Consumerspdf.
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23 CDC, National Center for Health Statistics
2010).
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11 The State of Aging and Health in America
24 Tom C. Wilson, “The Paradox of Social
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Review for the Sociology of Sport, vol. 37,
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25 NASCAR Fan Base Demographics.
Available from: http://www.cdc.gov/features/
Scarborough Research USA (2009).
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26 Michael Solomon, Consumer Behavior, 3rd
in_america_2013.pdf, accessed June 17,
ed. (Upper Saddle River, NJ: Prentice Hall,
2014.
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27 VALS, Strategic Business Insights. Available
html.
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13 The 2012 Statistical Abstract. Census.gov
com/vals/, accessed June 18, 2014.
2012, accessed June 17, 2014.
28 Christopher Dragicevich, “NBA to Become
14 ManateesBaseball.com. Available from:
More Popular Internationally Than
http://www.milb.com/content/page.jsp
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id=7830080&vkey=team2, accessed January
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30 Ronald Powell, 2006, “Commercial Model 37 “NFL Fans on Facebook.” Available
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(August 2, 2000), 1A. 39 Team Garmin-Sharp Pro Cycling Team,
32 Mark Pritchard and Christopher Negro, Garmin (2013). [Online]. Available from:
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33 Nike, Inc. SWOT. Available from: A1.
www.scribd.com/doc/52065502/ 41 BBC Sport Cycling, “Lance Armstrong
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Sports Marketing Arena: We All Can’t Be February 25, 2014.
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10, 2012.
6
257
PART III
Planning the
Sports Marketing
Mix
CHAPTER 7
Sports product
concepts
• Define sports products and differentiate between goods and
services.
• Explain how sports products and services are categorized.
• Define branding and discuss the guidelines for choosing an
effective brand name.
• Discuss the branding process in detail.
• Examine the advantages and disadvantages of licensing from the
perspective of the licensee and licensor.
• Identify the dimensions of service quality and goods quality.
• Define product design and explain how product design is related to
product quality.
7 Sports product concepts
Think about attending a Major League Baseball game at Wrigley Field in Chicago.
Inside the stadium you find vendors selling game programs, scorecards, Major League
Baseball-licensed merchandise, and plenty of food and drink. An usher kindly escorts
you to your seat assignment and ensures that your seat is clean before you begin to
enjoy the entertainment. During the game, you are exposed to more product choices.
Every game experience presents us with a number of opportunities to purchase and
consume sports products. Some of the products, such as the scorecards, represent
a pure good, whereas others, such as the game itself, represent a pure service. Each
sports product represents a business challenge with incredible upward and downward
potential. In this chapter, we explore the multidimensional nature of sports products.
Defining sports products

A sports product is a good, a service, or any combination of the two that is designed
to provide benefits to a sports spectator, participant, or sponsor. Within this definition,
the market concept discussed in Chapter 1 is reintroduced. As you recall, the
marketing concept states that sports organizations are in the business of satisfying
consumers’ needs. To do this, products must be developed that anticipate and satisfy
consumers’ needs. Sports marketers sell products based on the benefits they offer
consumers. These benefits are so critical to marketers that sometimes products are
defined as “bundles of benefits.” For example, the sport of lacrosse has emerged as
one of the nation’s fastest-growing sports. Lacrosse has been tagged as “the fastest
game on two feet” and those “feet” are rapidly moving across the country.1 Colleges
and High Schools are now adding Lacrosse to their athletic repertoire as the sport
gains attention in the areas that knew little if anything about the game in the past.
Lacrosse originated from Native Americans who often played the game as a way to
train for warfare. The game may not be played for the same reasons today, but the
action and intensity that is displayed is still highly competitive and exciting providing a
“bundle of benefits” for the consumer.
What has caused the game to spread so quickly? There are four main factors. 1.
Increased visibility in the National Media. 2. Development of a Professional League.
3. Growth of new High School and College Programs. 4. Growth of Youth Programs.
Knowledge of the game is spreading, making it no longer appear to be in the dark to
the general public. The game is also very appealing. It is fast-paced, full of non-stop
action, provides great exercise, and is less expensive to play than many traditional
sports. It is a good mix between many popular American sports such as football,
Photo 7.1 This baseball, glove, and bat represent pure goods.
262
Photo 7.2 This competition represents a pure service.

Source: Courtesy of Cory Hindel
basketball, and hockey. The whole of America is starting to discover Lacrosse and it is
spreading just as fast as the game itself.
In addition to sports and sporting goods, athletes can also be thought of as sports
products that possess multiple benefits. For example, NBA teams are currently
seeking players who can perform multiple roles on the court rather than those who
have more specialized skills. The player who can rebound, is great defensively,
dribbles well, and can play the post is invaluable to the franchise. The classic example
of the “hybrid” player with multiple skills was Magic Johnson, who played center and
guard in the 1980 NBA Finals. Today’s NBA stars, such as the Boston Celtics’ Kevin
7
Garnett and Miami Heat’s LeBron James and Dwayne Wade, exemplify the versatile
player who offers many benefits to the team.
A number of athletes offer a unique bundle of benefits both on and off the court.
Consider former star center, Shaquille O’Neal. The Shaq has been a top performer,
helping teams such as the Lakers earn a three-peat championship and he was
one of three players in NBA history to be selected to the NBA All-Star Game for
15 seasons. In addition to Shaq’s 18 seasons as a player, he was the oldest active
player in the NBA, has made and appeared in several movies and raps, written his
autobiography, owns his own sportswear company, starred in his own reality show
titled Shaq vs., and is currently an NBA analysts for TNT. The 7-foot-1-inch center
has been aligned with numerous endorsement contracts, from Taco Bell to Payless
Shoes to Buick, and has helped a number of nonprofit organizations. Most recently,
Shaq has utilized the social network of Twitter as a way to communicate with fans
and enhance his brand. All of these activities contribute to the “product” we know
as Shaq.2
Goods and services as sports products

Our definition of products includes goods and services. It is important to understand
the differences in these two types of products to plan and implement the strategic
sports marketing process. Because services such as watching a game are being
produced (by the players) and consumed (by the spectators) simultaneously, there
is no formal channel of distribution. However, when you purchase a pure good, such
as a pair of hockey skates, they must be produced by a manufacturer (e.g., Bauer),
263
sent to a retailer (e.g., Sports Authority), and then sold to you. This formal channel of
distribution requires careful planning and managing. Let us explore some of the other
differences between goods and services.
Goods are defined as tangible, physical products that offer benefits to consumers.
Obviously, sporting goods stores sell tangible products such as tennis balls and
racquets, hockey equipment, exercise equipment, and so on. By contrast, services
are usually described as intangible, nonphysical products. For instance, the
competitive aspect of any sporting event (i.e., the game itself) or an experience such
as receiving an ice-skating lesson reflects pure services.
CAREER SPOTLIGHT
Rodger Collins, President Packaged Beverages, Dr. Pepper Snapple Group
Question: From your perspective, Sun Drop which is popular in the

what is most successful . . . new to southeast and to become a player in
the world products, new product this product line.
category entries, product line
Question: How does your company
extensions, product improvement, or
go about implementing the new
repositioning?
product development process?
Answer: At Dr. Pepper marketing
Answer: We have a committee that
is implemented in four so called
receives concepts from our marketing
buckets. The first bucket is the heavy
department on all new products.
or core user. The second bucket is the
All new products are developed
light user. The third bucket would be
internally through our research and
the line extension or innovation, such
development laboratory. We have
as launching Dr. Pepper Cherry and
doctors in our labs developing all
using Kiss as the spokesman. Finally
of our new products. As for market
a cultural approach, for example,
categories, we test and launch
Dr. Pepper is targeting the Hispanic
products depending on market
community.
segmentation and focus groups.
Question: In looking at the
Question: How does your company
consumers’ perspective, which
go about dealing with problems in
of the following do you target,
marketing?
discontinuous innovations, dynamic
continuous innovations, or continuing Answer: All market research is
innovations? considered to be on the high end.
Therefore it is discounted and we
Answer: We look internally, where
approach this utilizing low end
the value of a product or service
numbers. Formulas are in place in
is with the correct investment. An
this company to actualize all numbers
example would be the Crush brand,
into useable material.
which was idle until we utilized the
brand exploiting the flavor line with Question: Can you give me some
a powerful trademark and marketed examples of your company’s
it across the country. As for the products and the product life cycle?
citrus beverage line Mountain Dew
Answer: A good example would be
holds the market. We look to utilize
Snapple; a twenty year old product
264
that started as a high end, healthy distribute with no capital upstart we

beverage. Between competitors and a will look to utilize the product. We
lack of advertising Snapple went from have very limited seasonal products,
a growth to a mature to a declining but Iced Tea and Lemonade sells
product. Two years ago we had a better in the summer.
product restage with new packaging,
Question: What techniques do you
ads, and a conversion to the use of
employ in the product diffusion
real sugar in the beverage. This plan
process to speed the adoptions of
has completely paid off. We must
your products?
be careful because this beverage
line is quick to decline because Answer: With our new products
of competition and copy cats. We we utilize target marketing, the
have another beverage that is in the internet, and social media, especially
introduction stage. This is Mott’s when dealing with the younger
Medley, which competes with V8’s demographic. As for an older
Fusion. We are in the early stages. demographic we employ coupons,
We have priced this beverage low, especially at checkouts in grocery
so as to create a larger customer stores with a coupon printed on the
base. The jury is out. Finally we have back of the receipt.
Dr. Pepper. A beverage that is 100
Question: Can you speak of your new
years old that we do not feel has
Venom line of energy drinks and your
reached the maturity stage. We feel
managing of the products?
we are still in the growth stage. We
believe line extensions will allow Answer: We developed this line
us to continue to grow despite the
cycling of the market. As for declining
and launched it in 2007 and it is in
the growth category. We feel there
7
brands, we have been harvesting is a large amount of potential. We
Royal Crown Cola. We have put are focusing on the distribution
no money into it because of the and availability of this product
competition of Coke and Pepsi and targeting young males. We have
are somewhat treading water with created a partnership with Andretti
this beverage. We have not deleted motor sports and are sponsoring
any brands, only packaging on many Marco Andretti, a young male
different products. Indy car driver. We have also utilized
exit sampling, focusing on handing
Question: How much stock does your
out the product at big stadiums
company put into fads, classics, and
where young males are likely to
seasonal products?
attend. We have made a large
Answer: We never look at products investment into the development
like fads. We look at them as marketing and distribution of this
innovations. If we have the ability product as we hope it will pay off in
to manufacture and the capacity to the future.
It is easy to see why soccer balls and exercise equipment are classified as pure goods
and why the intangible nature of the game constitutes a pure service, but what about
other sports products? For example, sporting events typically offer a variety of pure
goods (such as food, beverages, and merchandise). However, even these goods have
a customer service component. The responsiveness, courtesy, and friendliness of the
service provider are intangible components of the service encounter.
265
Pure Pure
goods services
(tennis balls, hockey equipment) (game itself)
Figure 7.1 The goods–services continuum
Most sports products do not fall so neatly into two distinct categories, but possess
characteristics of both goods and services. Figure 7.1 shows the goods–services
continuum. On one end, we have sporting goods. At the other end of the continuum,
we have, almost exclusively, sports services. For example, a sports service that has
received considerable attention in the past few years is the fantasy sports camp. Sports
camps from a variety of team and individual sports have sprung up to appeal to the
aging athlete. For instance, the Chicago Cubs Fantasy Camp offers lifelong memories
and mementos for $4,500.00. During the week, campers receive the following tangible
goods: a personalized uniform with name and number, engraved Louisville Slugger
bat, baseball autographed by an instructor, baseball card with the camper’s picture and
camp stats, a DVD of the “Big Game” vs. the former major leaguers, and a glossy 8’
×10’ team photo, and an opportunity to play under the lights at Wrigley Field.
Thus far, the distinction between goods and services has been based on the
tangible aspects of the sports product. In addition to the degree of tangibility,
goods and services are differentiated on the basis of perishability, separability, and
standardization. These distinctions are important because they form the foundation
of product planning in the strategic sports marketing process. Because of their
importance, let us take a look at each dimension.
Tangibility
Tangibility refers to the ability to see, feel, and touch the product. Interestingly, the
strategy for pure goods often involves stressing the intangible benefits of the product.
For example, advertisements for Nike’s Dri-FIT performance apparel highlight not
only the comfort of the product, but also the way the clothing will make you “ready
to take on the challenges of wild and wicked workouts.” Similarly, Formula 1 racing
is paired with TAG Heuer watches in a sponsorship agreement and product line that
leverages the benefits of both brands by asking “What are you made of?” By pairing
with Formula 1 racing, Tag Heuer hopes to capitalize on the intangible attributes of
excitement, danger, excellence, and pushing yourself to be the best.
However, the strategy for intangible services is to “tangibilize them.”3
Standardization and consistency

Another characteristic that distinguishes goods from services is the degree of
standardization. This refers to receiving the same level of quality over repeat
purchases. Because sporting goods are tangible, the physical design of a golf ball is
manufactured with very little variability. This is even truer today, as many organizations
focus on how to continuously improve their manufacturing processes and enhance
their product quality.
Pure services, however, reflect the other end of the standardization and consistency
continuum. For example, think about the consistency associated with different
266
individual and team athletic performances. How many times have you heard an
announcer state before a game, “Which team (or player) will show up today?”
Meaning, will the team play well or poorly on that given day?
The Duke University men’s basketball team, under the leadership of Mike Krzyzewski,
has been one of the most consistent teams in college sports over the past 25
seasons. This, however, does not guarantee they will win the night you attend the
game. In recent years, teams such as the high-performing New England Patriots have
had very successful regular seasons, but have faced the embarrassing distinction of
being eliminated in the first round of the NFL playoffs. Historically, Buffalo Bills had
the embarrassing distinction of being the only team ever to lose four consecutive
Super Bowls.
Consider another example of the lack of consistency within a sporting event. You
may attend a doubleheader and see your favorite team lose the first game 14 to 5
and win the second game of the day by a score of 1 to 0. One of the risks associated
with using individual athletes or teams to endorse products is the high degree
of variability associated with their performance from day to day and year to year.
Because sports marketers have no control over the consistency of the sports product,
they must focus on those things that can be controlled, such as promotions, stadium
atmosphere, and, to some extent, pricing.
Perishability
Perishability refers to the ability to store or inventory “pure goods,” whereby
services are lost if not consumed. Goods may be inventoried or stored if they are
not purchased immediately, although there are many costs associated with handling
this inventory. The length of time a product may be inventoried, a product’s shelf
life, varies. Most sport and entertainment services have a limited shelf life and are
7
perishable only during the life of the exhibition. Each exhibition has an exclusive
time frame that encompasses a unique set of attributes, therefore, they cannot be
renewed. Although future reproductions via video rebroadcast and match play may
occur, the unique intangible characteristics cannot be renewed. For example, if one
was planning to attend a 1:00 football game but has car trouble and ends up not
arriving until 4:30, most likely, exception being overtime or major delay, the shelf
life of the exhibition has expired. If a tennis professional is offering lessons, but no
students enroll between the hours of 10:00 A.M. and noon, this time (and money)
is lost. This “down time” in which the service provider is available but there is no
demand is called idle product capacity. Idle product capacity results in decreased
profitability. In the case of the tennis pro, there is a moderate inventory cost
associated with the professional’s salary.
Another example with much higher inventory costs is a professional hockey team that is
not filling the stands. Consider the New York Islanders, the NHL team with the poorest
average attendance and lowest percentage of attendance to capacity (82 percent) in the
2012 to 2013 season. The costs of producing one professional game include everything
from the “astronomical” salaries of the players to the basic costs of lighting and heating
the arena. If paying fans are not in the seats, the performance or service will perish,
never to be recouped. As a general rule of thumb, the most perishable products in
business are airline seats, hotel rooms, and athletic event tickets.
In an effort to reduce the problem of idle product capacity, sports marketers attempt
to stimulate demand in off-peak periods by manipulating the other marketing mix
267
variables. For example, if tennis lessons are not in demand from 10:00 A.M. to noon,
the racquet club may offer reduced fees for enrolling during these times.
Separability
Another factor that distinguishes goods from services is separability. lf a consumer
is purchasing a new pair of running shoes at a major shoe store chain, such as The
Athlete’s Foot, the quality of the good (the Reebok shoes) can be separated from
the quality of the service (delivered by The Athlete’s Foot sales associate). Although
it is possible to separate the good from the person providing the service, these
often overlap. What this suggests is that manufacturers will selectively choose the
retailers that will best represent their goods. In addition, manufacturers and retailers
often provide detailed training to ensure salespeople are knowledgeable about the
numerous brands that are inventoried.
As we move along the goods–services continuum from pure goods toward pure
services, there is less separability. In other words, it becomes more difficult to
separate the service received from the service provider. In the case of an athletic
event, there is no separation between the athlete, the entertainment, and the fan.
The competition is being produced and consumed simultaneously. As such, sport
marketers can capitalize on a team or athlete when they are performing well. When
things are going poorly, they may have to rely on other aspects of the game (food,
fun, and promotions) to satisfy fans. The Green Bay Packers have sold the history and
tradition of the team to the fans. Despite several losing seasons the team has sold out
every game since 1960, with the fans braving the elements in support of their team.
These fans were rewarded with another Super Bowl victory in the 2010–2011 season.
Classifying sports products

In addition to categorizing products based on where they fall on the goods–services
continuum, a number of other classification schemes exist. For sports organizations
that have a variety of products, the concepts of product line and product mix become
important strategic considerations. Let us look at these two concepts in the context of
a goods-oriented sports organization and a services-oriented sports organization.
A product line is a group of products that are closely related because they satisfy
a class of needs, are used together, are sold to the same customer groups, are
distributed through the same type of outlets, or fall within a given price range. Wilson
Sporting Goods sells many related product lines such as shoes, bats, gloves, softballs,
golf clubs, and tennis racquets. The total assortment of product lines that a sports
organization sells is the product mix. Table 7.1 illustrates the relationship between
the product lines and product mix for Wilson Sporting Goods. The number of different
product lines the organization offers is referred to as the breadth of the product mix.
If these product lines are closely related in terms of the goods and services offered to
consumers, then there is a high degree of product consistency.
Nike recently increased the breadth of its product mix by adding new brands and
product lines. The company acquired Converse and its famous Chuck Taylor All-Star
shoes, as well as Hurley International, a surf- and skateboard apparel brand. Other
new acquisitions include Cole Haan dress shoes and Umbro sports apparel. The
strategic advantage of this related diversification is the use of Nike’s established
marketing muscle.4 Synergy in distribution and promotion, as well as strong brand
identification, should make Nike’s launch into new markets a successful venture.
268
Table 7.1 Wilson Sporting Goods product mix
Baseball Basketball Football Golf Racquetball Soccer

Gloves Accessories Footballs Irons Racquets Soccer balls
DeMarini Bats Basketballs Tees/ Woods Gloves Protective
Baseballs Uniforms accessories Wedges Eyewear gear
Protective gear Youth Putters Racquetballs Bags

protective
Bags Complete sets Footwear
uniforms
Accessories Balls Bags
NFL
Uniforms accessories Bags String
Gloves Accessories
Accessories Apparel
Retired models
Volleyball Softball Softball Squash Tennis Badminton
Fastpitch Slowpitch
Outdoor Balls Gloves Gloves Racquets Balls Racquets
Indoor Balls Bats Bats Bags Footwear Shuttlecocks
Uniforms Balls Balls String Legacy footwear String
Ball carts Protective gear Accessories Grips Accessories
Bags Accessories Platform tennis
Court equipment
Retired models
Raquets
Bags
String
Grips 7
Source: Wilson Sporting Goods, www.wilsonsports.com.
Joycelyn Hayward, the manager of a sporting goods store that carries Nike, summed
it up best by saying, “Nike’s ability to churn out innovative products and marketing
plans has kept it ahead of rivals”.5
Today, Nike is focusing on increasing their talent pool of athletes and expanding their
growing product lines in new sports. For example, LeBron James joined the Phil
Knight stable in 2003 for a $90 million, multiyear endorsement contract prior to playing
a college or professional game. Nike certainly pinned its hopes on James to invigorate
sales in the high-end market. This risk paid off as 2005 was a record year for sales and
profitability for Nike who increased revenues by 12 percent from the previous fiscal
year to $13.7 billion.6 Nike, under the initial leadership of Knight, is quickly moving into
international markets and these endeavors accounted for 55 percent of Nike’s total of
$25.3 billion of revenue in 2013.7 Knight will always be remembered as the man who
realized the true marketing power of sports celebrities.
The depth of the product lines describes the number of individual products that
comprise that line. The greater the number of variations in the product line, the deeper
the line. For example, the Wilson basketball product line currently features over 60
different basketballs, 6 of which are indoor and 56 of which are indoor/outdoor. Now,
think about how the product concepts might relate to a more service-oriented sports
organization, such as a professional sports franchise. All these organizations have
gone beyond selling the core product, the game itself, and moved into other profitable
269
Web 7.1 TaylorMade-Adidas Golf extends their product line with Adidas golf footwear
and apparel.
Source: © 2014 TaylorMade Golf Company, Inc.
areas, such as the sale of licensed merchandise, memorabilia, and fantasy camps. In
essence, sports organizations have expanded their product lines or broadened their
product mix.
Understanding the depth, breadth, and consistency of the product offerings is
important from a strategic perspective. Sports organizations might consider adding
product lines, and, therefore, widen the product mix. For example, Nike is using
this strategy and capitalizing on its strong brand name. Alternatively, the sports
organization can eliminate weak product lines and focus on its established
strengths. In addition, the product lines it adds may be related to existing lines
(product line consistency) or may be unrelated to existing lines (product line
diversification).
Another strategic decision may be to maintain the number of product lines, but
add new versions to make the line deeper. For instance, the MLS has 19 teams
divided into Eastern and Western conferences, 16 in the U.S. and 3 in Canada, and
is scheduled to grow to 20 teams in the near future. All of these product planning
strategies require examining the overarching marketing goals and the organizational
objectives, as well as carefully considering consumers’ needs.
Product characteristics
Products are sometimes described as “bundles of benefits” designed to satisfy
consumers’ needs.8 These “bundles” consist of numerous important attributes or
characteristics that, when taken together, create the total product. These product
characteristics, which include branding, quality, and design, are illustrated in
Figure 7.2. It is important to note that each of the product characteristics interacts
with the others to produce the total product. Branding is dependent on product
quality; product quality is contingent on product design; and so on. Although these
product features (i.e., branding, quality, and design) are interdependent, we examine
each independently in the following sections.
270
Branding
Total product Quality
Design
Figure 7.2 Product characteristics

The 5 worst athlete-endorsed products of all time
Athletes-endorsed products are Really, there’s only one thing to do

an enigmatic paradox that has – grab your David Robinson Doritos
plagued me for quite some raft!
time. What was the thought process
In layman’s terms, athletes have here? David Robinson was a Navy
long tried to attach their names
to companies or products that
man, but the Navy seldom uses life
rafts like the one pictured above (or
7
have left us shaking our heads or so I’ve read).
wiping the tears of laughter from I also worry about the size of the
our eyes. raft itself, I doubt it could hold one
Raffy Palmeiro’s Viagra of the Robinson’s limbs, let alone his
advertisement a few years back was whole body.
a fine case of both. Alas, seasoned Shaq Fu for Sega
slugger and seemingly impotent Shaquille O’Neal has never been
Palmeiro is not the only man who has shy about trying different things. He
made some downright dumb choices has rapped, protected and served,
in marketing. acted, commentated, competed and
This brief list is a compilation of headlined an awesome 1990s video
some of the more bizarre athlete game.
endorsements of the past few Ladies and gentlemen, I give you
decades. “Shaq Fu,” the game that, well,
David Robinson Doritos Raft gamers around the world regard as
It’s a hot August day, and the sun the worst fighting game ever created.
beats down, as you dream of Tom The old mantra says not to judge a
Brady’s UGG Boot endorsements and book by its cover, but anyone who
Roethlisberger jerky. judged this game by the cover was
You sit up and slowly walk toward rewarded with some extra time and
the nearest body of water, but you’re money.
not quite sure you want to go all the There is a website that has
way under. dedicated itself to destroying all
271
remaining copies of the game left in With Big Ben’s numerous

existence. It’s facetious to an extent, indiscretions over the past few
or at least, I hope. seasons, he is somewhat of an easy
Query of the day target. To be entirely honest though,
What would you rather do for an any athlete who endorses his own
hour? beef product should expect a few
A) Play several rousing rounds of punches and pokes.
Shaq Fu What is the obsession with
B) Watch Kazam quarterbacks and meaty byproduct?
C) Listen to Shaq’s Diesel album. Tom Brady Loves UGG Boots
D) Wait in line for Shinedown Personally, I am yet to meet a man
tickets? who dons UGG Boots. Then again, I
Carson Palmer Goes “Long-Er” am not all that worldly and seldom
Why in the world would Carson spend time with society types like
Palmer sign off on this? Who is Tom Brady.
his agent? Was Mark Sanchez It’s hard to take shots at Tom
unavailable? Brady with all the success he has had
How psyched was the guy who in his career, and while it’s possible
suggested they do the mustard as he can transform the UGG brand into
football laces pattern on the wiener something men will actually wear, I
when his idea was accepted? Is this think this will be a tough sell.
why Palmer is no longer a Bengal?
What was the runner up tag-line to Source: Article author: Adam Dietz.
“GO Long-er.” Rightsholder: Bleacher Report; http://
My stomach is rumbling! bleacherreport.com/articles/
1165407-the-worst-athlete-
Big Ben Does Beef Jerky Right
endorsed-products-of-all-time?search_
While Ben Roethlisberger is high
query=athlete endorsements#/
in both protein and fat, his “Super
articles/1434868-the-50-biggest-sports-
Championship Edition” jerky – fails-of-2012.
whatever that means – is low fat.
Branding
What first comes to mind when you hear University of Notre Dame, Green Bay, or
Adidas? It is likely that the Fighting Irish name, along with the Lucky Leprechaun
ready to battle, comes to mind for Notre Dame. The Packers are synonymous with
Green Bay, Wisconsin, and the symbolic three stripes are synonymous with Adidas.
All these characteristics are important elements of branding.
Branding is a name, design, symbol, or any combination that a sports organization
(or individual athlete as is the case with David Beckham) uses to help differentiate its
products from the competition. Three important branding concepts are brand name,
brand marks, and trademarks. A brand name refers to the element of the brand
that can be vocalized, such as the Nike Air Jordan, the Pittsburgh Penguins, and the
UNC Tarheels. When selecting a brand name for sporting goods or a team name,
considerable marketing effort is required to ensure the name symbolizes
strength and confidence. Because choosing a name is such a critical decision, sports
marketers sometimes use the following guidelines for selecting brand
names:
272
X The name should be positive; distinctive; generate positive feelings
and associations; be easy to remember and to pronounce. For team
names, the positive associations include those linked with a city or geographic
area.
X The name should be translatable into a dynamite attitude-oriented logo. As
an example of a successful logo choice, consider Kansas City’s Major League
Soccer team, who recently changed their name from the Wizards to Sporting
Kansas City. CEO and managing partner Robb Heineman stated that the name
change “continues the forward-thinking and innovation. This is all about our
connection to the community and us trying to be innovative in what we’re trying
to do.”9
X The name should imply the benefits the sports product delivers. For example, the
name communicates the product attributes the target market desires.
X The name should be consistent with the image of the rest of the product lines,
organization, and city. Again, this is especially important for cities naming their
sports franchises. One example of this concept in action is MLS’s Columbus
Crew.10 The Crew was chosen to represent the Columbus community in a positive
manner. The name suggests the hard work, do-not-quit attitude that people in the
Columbus community value.
X The name should be legally and ethically permissible. That is, the name cannot
violate another organization’s trademarks or be seen as offensive to any group of
people. For example, a great many team names with reference to (and perceived
negative connotations of) Native Americans have been changed or are under
scrutiny (e.g., Miami University of Ohio Redskins to RedHawks, Atlanta Braves,
and Washington Redskins). The NCAA decided in 2005 to ban the use of American
Indian mascots by sports teams during its postseason tournaments. Schools using
American Indian mascots or nicknames would also be barred from hosting NCAA
7
postseason tournaments.
While choosing a team/brand name is critical to marketing success, some teams
and leagues haven’t fared so well in the name game. For example, the National
Lacrosse League has had a history of poor team names.11 The name Colorado
Mammoth conjures up images such as big, slow, and extinct – not exactly a good
fit for a professional athletic team. In addition, some of the University of California
institutions such as UC Santa Cruz and UC Irvine have struggled to develop
a positive association with the brand names of Banana Slugs and Anteaters,
respectively.
A brand mark, also known as the logo or logotype, is the element of a brand that
cannot be spoken. One of the most recognizable logos in the world is the Nike
Swoosh. Interestingly, Carolyn Davidson was paid just $35 in 1971 to create the logo
that now adorns Nike products, as well as CEO Phil Knight’s ankle in the form of
a tattoo. It’s important for sports marketers to realize that while the Nike logo was
created for the paltry sum of $35, the cost of changing logos and nicknames can swell
to $250,000. Some of the incidental costs of changing your brand include: surveys
of constituent groups, designing the logo, retaining a marketing firm, developing a
new ad campaign to create awareness, repainting facilities, buying new stationery,
replacing signage, creating new uniforms, and even developing a new mascot
costume.12
273
SPOTLIGHT ON SPORTS MARKETING ETHICS

NCAA Native American mascot controversy
The world of intercollegiate athletics with little to no opposition; North

is an interesting stew to say the least. Dakota is in the process of dropping
It is a mixture of money, a “Sioux” after 81 years upon losing its
smattering of egocentricity, a dash of final appeal to the NCAA after many
concern for the student athlete, a yet years while Florida State, Utah, Illinois
smaller dash of perceived concern for and Central Michigan have kept their
said student athlete’s actual academic names after receiving “waivers” from
progress towards a degree and then the NCAA by proving they (currently)
brought together with a healthy dose have the blessing and written
of public perception and dare I say approval of those respective tribes
EVEN MORE MONEY. (Seminole, Illini, Ute and Chippewa).
Back in 2005, the NCAA decided Ironically, these schools (save
that it would institute a new rule: CMU) produce millions of dollars in
It self-decided (as a PR move I athletic revenue through large gate
believe) it would strong-arm schools attendance, huge TV contracts and
with nicknames or mascots IT merchandising. Even more “ironic” is
deemed “hostile or abusive”; they the fact that the NCAA actually profits
would no longer be allowed to keep twofold. It is giving the appearance
these nicknames. on one hand of being thoughtful,
This was targeted at colleges and respectful and politically correct while
universities that were currently using the other hand is taking fistfuls of
a Native American derived name and/ dollars looking the other way. If they
or symbols. are going to enact any rule, then it
Most of these schools were small should apply to all schools regardless
with no strong alumni bases or of their circumstances. If not, then
financial incentive to keep their retract it.
respective name and made the The truth (in my opinion and
change without any fanfare. millions of other fan-based polls) is
However, there were plenty that the NCAA should be involved
of major universities that were in other things like policing an ever
presented with a proverbial pickle. growing number of student athletes
Schools such as Florida State being arrested (some multiple times),
(Seminoles), Utah (Utes), Illinois making sure progress is made in the
(Illini), and, to lesser extents, Central classroom and that graduation rates
Michigan (Chippewa’s), Miami of are strong (things it was actually set
Ohio (Redskins) and North Dakota up to do in the first place).
(Sioux). Schools along with their alumni
The first three schools are and communities should be able
traditional football and basketball to decide for themselves what they
powerhouses whose revenue want to be called. If a school thinks
annually adds tens of millions to their its current nickname is somehow
athletic department coffers as well as offensive, then let it decide (such as
hefty sums reaching the NCAA itself. Stanford University did in 1972 all
From the schools above, Miami by itself in dropping the nickname
has changed its name to “Redhawks” “Indians” in favor of “Cardinal”).
274
If a school has a relationship with a they meet in every NCAA sanctioned

certain tribe and they mutually agree sport, every year.
that the name is acceptable, again FYI Iowa “enlightened” brass:
let them decide. But to force schools the term “Hawkeye” originally
to do what you want them to do and appeared in the novel, “The Last
then go and break this rule yourself of the Mohicans” written by James
(as the NCAA is doing) AND then on Fenimore Cooper. In the book, the
top of that, still profit from it, this is character named Natty Bumppo
ridiculous to say the least. is given the word “Hawkeye” as a
A final footnote to this article: nickname from the Delaware Indians.
One school (the University of Iowa) Maybe the university should
has even gone a step further in this. consider beefing up its own literature
They have now decided that they and history departments. Talk about
themselves will also police the ranks hypocrites!!!
and will no longer schedule a school Fortunately, I graduated from a
to any athletic event that still carries university where this was not an
a Native American name and its most issue.
recent victim was the University of Our mascot was a feisty chicken
North Dakota. bred for cock-fighting to entertain
Even though again UND is soldiers during the American
in the process of dropping the Revolutionary War.
“Sioux” nickname, this is still not OOPPS, maybe I spoke to soon.
enough for the Iowa Hawkeye higher- Let’s hope the NCAA and PETA
ups. So, a potential track meet don’t read this.................................
between the schools was recently
cancelled.
shhhhhhhhhhhhhhh 7
Yet another “irony” is that Iowa Source: Rightsholder: Neil Kline; http://
plays in the same conference (the www.bernardgoldberg.com/ncaa-native-
wealthy Big 10) as Illinois (Illini) and american-mascot-controversy/.
Web 7.2 Sports logos gallery on the Web

Source: http://www.baseball-almanac.com/
275
A trademark identifies that a sports organization has legally registered its brand
name or brand mark and thus prevents others from using it. Unfortunately, product
counterfeiting or the production of low-cost copies of trademarked popular brands
is reaching new heights. Product counterfeiting and trademark infringement are
especially problematic at major sporting events, such as the Super Bowl or Olympic
Games. For example, Collegiate Licensing Co., a division of IMG Worldwide, which
represents about 200 collegiate properties, found some 3,000 counterfeit items at
football bowl games and the NCAA basketball tournament.
The branding process

The broad purpose of branding a product is to allow an organization to distinguish
and differentiate itself from all others in the marketplace. Building the brand will then
ultimately affect consumer behaviors, such as increasing attendance, merchandising
sales, or participation in sports. However, before these behaviors are realized, several
things must happen in the branding process shown in Figure 7.3.
First, brand awareness must be established. Brand awareness refers to making
consumers in the desired target market recognize and remember the brand name.
Only after awareness levels reach their desired objectives can brand image be
addressed. After all, consumers must be aware of the product before they can
understand the image the sports marketer is trying to project.
After brand awareness is established, marketing efforts turn to developing and
managing a brand image. Brand image is described as the consumers’ set of beliefs
about brands, which, in turn, shape attitudes. Brand image can also be thought of
as the “personality” of the brand. Organizations that sponsor sporting events are
especially interested in strengthening or maintaining the image of their products
through association with a sports entity (athlete, team, or league) that reflects the
desired image. For instance, the marketers of Mercedes-Benz automobiles have
established sponsorships with tennis events to reinforce a brand image of power,
grace, and control.
Sports marketers attempt to manage beliefs that we have about a particular brand
through a number of “image drivers,” or factors that influence the brand image.
The image drivers controlled by sports marketing efforts include product features or
characteristics, product performance or quality, price, brand name, customer service,
packaging, advertising, promotion, and distribution channels. Each of these image
drivers contributes to creating the overall brand image. After shaping a positive brand
image, sports marketers can then ultimately hope to create high levels of brand
equity.
Another link in the branding process is developing high levels of brand equity. Brand
equity is the value that the brand contributes to a product in the marketplace. In
economic terms, it is the difference in value between a branded product and its
generic equivalent. Consumers who believe a sport product has a high level of
brand equity are more likely to be satisfied with the brand. The satisfied consumers
will, in turn, become brand-loyal or repeat purchasers. Gladden, Milne, and Sutton
Brand awareness Brand image Brand equity Brand loyalty
Figure 7.3 The branding process

276
Antecedents Brand equity Consequences
Team-related
Success
Head coach National media
Star player exposure
Organization-related Merchandise sales
Reputation and tradition Perceived quality

Conference schedule Brand awareness Marketplace
Corporate support perceptions
Entertainment package/ Brand association
product delivery Brand loyalty
Atmosphere
Market-related
Media coverage Ticket sales

Geographic location
Competitive forces
Support
Figure 7.4 The conceptual model for assessing brand equity
have developed a unique model of assessing brand equity for the sports industry.
The components of the model can be seen in Figure 7.4. The authors explain brand
equity by extending the previous work of Aaker, who believes there are four major
components of brand equity.13 These are perceived quality, brand awareness, brand
7
associations, and brand loyalty. Gladden, Milne, and Sutton describe the perceived
quality of sport as the consumers’ perceptions of a team’s success. Obviously,
this could be extended beyond the notion of a team to other sport products. Brand
awareness is defined as the consumers’ familiarity with a particular team or sport
product. Brand associations refer to the intangible attributes of a brand or, in the case
of sport, the experiential and symbolic attributes offered by an athletic team. The final
component, brand loyalty, is defined as the ability to attract and retain consumers.
As the authors point out, this is sometimes difficult because of the inconsistent and
intangible nature of the sports product.14
When describing the full model of brand equity for sport, Gladden and his colleagues
also discuss the antecedents and consequences of brand equity for a sports product.
These antecedent conditions are particularly important for marketing managers to
understand because they will have an impact on the level of brand equity. The three
broad categories of antecedents include team-related factors, organization-related
factors, and market-related factors.
Team-related factors are further broken down into the success of the team, head
coach, and star player(s). Previous research has shown that winning or success is still
a critical factor in establishing a strong brand and in achieving the desired outcomes
such as merchandise sales, media exposure, and so on. Although selling an inferior
core product (i.e., losing team) is never easy, it is important to underscore the notion
that sports marketers must do their best to enhance those aspects of the event
experience that they can control. As the accompanying article illustrates, the Miami
Marlins are still making money even after a series of losing seasons.
277
Miami Marlins attendance reverts to old Sun Life Stadium levels
What has moving to Miami brought At the moment, the Marlins have
the Marlins? About 100 extra fans per the worst attendance in baseball
game. at about 17,830 people per game,
That’s the current gap between according to a ranking on espn.
this year’s attendance and the com. That amounts to an average
average gate count for the Marlins’ sales drop of 10,400 tickets from the
last season at Sun Life Stadium, the 2012 inaugural season – a 37 percent
football field that owner Jeffrey Loria decline.
blamed for the team’s long-standing Using attendance figures from
attendance and revenue woes. the 1980s on posted at baseball-
Those problems ended up reference.com, The Miami Herald
following Loria to the government- compared the ongoing 2013 season
owned Marlins Park, which is on track at Marlins Park to the second year of
to face the worst fan rejection of a every new stadium built since 1989.
new baseball stadium in at least a Only one ballpark saw a worse
generation. drop: Tampa Bay’s Tropicana Field,
“Usually you have a honeymoon where attendance fell 38 percent in
effect,” said J.C. Bradbury, a sports- the season after its 1998 debut.
science professor at Kennesaw State But Marlins Park could wind up in
University in Atlanta who studies the statistical basement by the time
the business side of baseball. “It’s this season ends. During its first 55
hard to have that when the fans are home games, which is how many
predisposed not to like you.” times the Marlins have played in
Attendance for the Marlins hit a Miami this year, Tampa Bay only
15-year high with the opening of the saw a drop of 30 percent. Assuming
36,000-seat Marlins Park last year, the Marlins follow the same
despite lingering ire over Miami and trajectory once summer ends, it will
Miami-Dade picking up most of the pass Tampa’s record for the worst
$634 million construction tab. But the sophomore season.
gains didn’t last long. On the heels Loria argued the player trades
of a losing season, Loria slashed the were necessary after his $100
team’s payroll by $60 million and million payroll, one of the highest in
traded most of the star players. Sales baseball, failed to deliver last year.
of season tickets plunged 60 percent, Once the new squad gels and starts
and the Marlins became the only winning, front-office executives
Major League franchise to turn to predict fans to come back in the
Groupon to fill seats on Opening Day numbers needed to spend more on
in April. the field. In April, Samson said the
“I obviously still feel tremendously Marlins need attendance of about
sorry about what happened last 30,000 to afford a $80 million
year,” said Marlins president David payroll, far better than the
Samson. “The goal we have with our estimated $35 million players earn
fans every day is to get them to the now.
point when they say, ‘I remember The Marlins are reporting an
when – I remember when I was so average announced attendance
unhappy with the team. But now, it’s of 17,977 per game, helped along
a love affair.’ ” by Thursday’s second-best tally of
278
25,916 thanks to a popular summer- To combat weak demand, the

camp promotion. Marlins are cutting into profits with
The per-game average is 109 more more promotions than they ever
seats than the team’s attendance for envisioned at the new ballpark. The
the same number of games at Sun discounting includes kids-eat-free
Life in 2011. It’s also enough to fill specials on Wednesdays and $27
about half of Marlins Park’s 36,742 all-you-can-eat buffets on Saturdays.
seats, but actual attendance has been Seniors get free tickets on Thursdays.
lower because the announced tally “It’s a very aggressive approach to
includes sold or distributed tickets get people back into the building,”
that are not used. said Sean Flynn, head of marketing
Despite a strong start when then- for the team.
Dolphins owner H. Wayne Huizenga Ana and Juan Avila paid about $54
brought the team to his South Florida to bring their two children to Sunday
football stadium in 1993, the Marlins afternoon’s win over the Pittsburgh
have generally drawn some of the Pirates. Each ticket came with a free
smallest crowds in the major leagues. hot dog and soda. “It’s my first game
Even when the team won the World ever,” said their son Juan, 9, from his
Series in 2003, attendance was still seat high above right field in a nearly
the third worst in baseball. empty Section 140. “It’s bigger than I
Ire over Loria’s trades and the expected.”
team’s second losing season have Even with the discouraging
yet to put baseball to the real test attendance numbers, Marlins Park
in Miami. “I think when they see a
winning team, we’ll have the same
enthusiasm we have for the Miami
remains livelier than the statistics
might suggest. Buying a hot dog
($6) or a Pepsi ($4.50) requires
7
Heat,” said Miami Mayor Tomás waiting in line. While the upper deck
Regalado, who opposed using public remains roped off many evenings for
funds to build the stadium. He said lack of ticket sales, the lower deck
he has yet to attend a Marlins game appeared more than half full
there, but added, “I think the stadium during two visits to the park this
is fabulous.” week.
On Tuesday night, Luis Roblejo During Tuesday night’s extra-
joined family and friends for their first inning loss to the New York Mets,
Marlins game of the season. They enough spectators jumped up with
took up five seats in a mostly empty raised arms to perform several laps
upper deck above right field. Each of a respectable fan wave before it
wore a Marlins jersey. None bore the fizzled.
name of a current player. “The recovery from the hurt is
“I’m a little bit embarrassed” about happening quicker than we thought,”
not being at the ballpark yet, said said Samson, the team president. “As
Roblejo, an IT worker in Miami. He time passes and people realize it’s a
wore an old Gaby Sanchez jersey, fun place to see a game, things will
while his 13-year-old son, Ryan, had get better.”
Hanley Ramirez’s name on the back
of his Marlins shirt. Both players were Source: Article author: Douglas
traded last year. Hanks; http://www.miamiherald.
“If I had more players to identify com/2013/08/01/3537432/marlins-
attendance-reverts-to.html.
with, I would come,” Roblejo said.
279
Although success is defined by wins and losses, it can also be thought of as the historical
standard by which the team has been judged. Interestingly, the authors of the model
also believe the head coach can be an important factor in establishing brand equity.
The University of Minnesota received a tremendous boost when they hired basketball
coach Tubby Smith, and The Ohio State University brand was bolstered with the hiring
of former Florida head coach Urban Meyer. Similarly, a star player or players can boost
brand equity, especially in the sports of baseball and basketball. For example, the
LeBron phenomenon gave the struggling Cleveland Cavaliers a new image and chance
to reposition their franchise with the drafting of James in 2003. However, this brand
positioning strategy was changed when LeBron James and Chris Bosh signed matching
6-year $110.1 million contracts to join Dwayne Wade and the Miami Heat in 2010. Now
that James will be returning to Cleveland, new brand image strategies will be developed.
The organization-related antecedents described in the model include reputation and
tradition, conference and schedule, and entertainment package–product delivery. The
reputation and tradition of the team off the field is believed to be a factor in building
brand equity. An excellent example of problems in the front office influencing fan
perceptions and brand equity is that of the hapless Arizona Cardinals. Owner Bill
Bidwell has been scrutinized and criticized by the fans and media for years because of
bad choices made on and off the field.
The conference affiliation and schedule are also organizational factors influencing
image. Gladden et al. believe college and professional teams who play in tougher
conferences with long-standing rivals will create greater benefits for the team’s
equity in the long term. This must certainly hold some truth as college teams and
conferences are constantly realigning. Starting back in 2011, the Big Ten, Pac-10, Big
12, WAC, and the MWC all had new looks. The projected conference changes for
2013 and 2014 include the following: Syracuse and Pittsburgh moving to the ACC;
Memphis, San Diego State, SMU, Boise State, Houston, and UCF all moving to the
Big East; FIU, Old Dominion, UAB, Louisiana Tech, North Texas, UTEP, and UTSA
all moving to the Conference USA, with Charlotte planned to join in 2015; San Jose
State, Utah State, Idaho, and New Mexico State will all be independents; Georgia
State moving to the Sun Belt Conference; Maryland and Rutgers are moving to the Big
Ten in 2014; and the dissolution of the WAC for football in 2013.
Finally, the entertainment aspect of sport created and managed by the organization
will affect brand equity. As mentioned previously, this is one of the controllable
elements of the largely uncontrollable sports industry.
The market-related antecedents are those things such as media coverage, geographic
location, competitive forces, and support. Media coverage refers to the exposure the
sport product receives in the media via multiple outlets such as radio, TV, newspaper,
and the Internet. Obviously, the images portrayed in the media and amount of
coverage can have a huge bearing on all aspects of brand equity. Geographic location
is also related to equity in that certain areas of the United States are linked with
certain types of sport. As described in Milne and McDonald,15 “it may be easier to
establish brand equity for a Division I men’s basketball team in Indiana than it would
be in Idaho.” Competition must also be considered a market factor, and the authors
of the model describe it as the most influential in creating equity. In some instances,
competition can enhance the value of a brand, but more typically competitive forces
vying for similar consumers will weaken equity and its outcomes. Fan support is the
final market force influencing equity. Quite simply, the greater the number of loyal
fans or supporters means the greater the brand equity.
280
Although the preceding discussion has focused on the antecedents of brand
equity to a sports product, the model also describes the related outcomes or
consequences of establishing a strong brand. More specifically, the authors believe
higher levels of brand equity will lead to more national media exposure, greater sales
of team merchandise, more support from corporate sponsors, enhanced stadium
atmospherics, and increased ticket sales.
How can marketers assess the equity of a brand such as the Yankees or Nike? One
popular technique to measure brand equity evaluates a brand’s performance across
seven dimensions. Brand equity is then calculated by applying a multiple, determined
by the brand’s performance on the seven dimensions, to the net brand-related profits.
These dimensions include leadership or the ability of the brand to influence its market,
stability or the ability of the brand to survive, market or the trading environment of
the brand internationality or the ability of the brand to cross geographic and cultural
borders, trend or the ongoing direction of the brand’s importance to the industry,
support or the effectiveness of the brand’s communication, and protection of the
owner’s legal title.16
Although there are a number of ways to measure brand equity in consumer
goods, there have been very few attempts to look at the equity of sports teams.
One exception was a study that measured the brand equity of MLB franchises.17
To measure brand equity, the researchers first calculated team revenues for
each franchise. These revenues are based on gate receipts; media; licensing and
merchandise; and stadium-oriented issues, such as concessions, advertising, and so
on. The franchise value is then assigned a multiple based on growth projections for
network television fees. Next, the total franchise value is subtracted from the value of
a generic product to determine the brand equity. Because there is no such thing as a
generic baseball team, the researchers used the $130 million fee paid by the two new
7
expansion teams at the time of the study, Tampa Bay and Arizona. This $130 million
fee, though low when compared with today’s standards, represents the closest
estimate to an unbranded team, because the new teams had yet to begin play.
Interestingly, only seven of the 30 MLB teams show any brand equity. Based on the
research, the following teams have positive brand equity (in rank order): New York
Yankees, Toronto Blue Jays and New York Mets, Boston Red Sox, Los Angeles Dodgers,
Chicago White Sox, and Texas Rangers. The teams with the lowest brand equity include
the Pittsburgh Pirates and Seattle Mariners. Given the fact that many of these “brands”
have been around for decades, the brand equity for MLB franchises is surprisingly low.
Although the previous study used an economic basis for determining brand equity,
other research has employed less precise, qualitative approaches. For example, a
panel of sporting goods industry experts was asked to name the most powerful
brands in sport. In this study of equity, sports brands were defined as those who
directly manufacture sporting apparel, equipment, and shoes. Nike is in a league
of its own when it comes to branding. Ever since the introduction of the Air Jordan
basketball shoe, Nike has grown geometrically since the days when Phil Knight
(founder) sold shoes out of the trunk of his car.
Brand loyalty is one of the most important concepts to sports marketers, because
it refers to a consistent preference or repeat purchase of one brand over all others in
a product category. Marketers want their products to satisfy consumers, so decision
making becomes a matter of habit rather than an extensive evaluation among
competing brands.
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Phil Knight
Knight was a middle-distance runner They developed the “swoosh”

for the University of Oregon track logo and cultivated endorsers that
team, where he encountered Coach included Michael Jordan, Tiger
Bill Bowerman’s obsession with Woods and Pete Sampras.
improving running shoes. In spite of receiving a lot of
When Knight studied at the negative publicity because of their
Graduate School of Business use of child labor in the Far East,
at Stanford, a professor, Frank by 2004 Nike was selling goods
Shallenberger instructed his students worth around $12bn annually and
to write a paper on how they would employing 24,000 staff worldwide.
create a new company. In November 2004 Phil Knight
With his experience of Bowerman announced he was stepping
in his mind, Phil Knight’s paper down as chief executive, but will
argued how profits could be remain chairman of the board of
generated by importing cheap but directors.
well-made running shoes from Japan. On the Nike website, Phil Knight
He put his theory into practice states his personal philosophy:
and Phil Knight and Bowerman each “There is an immutable conflict
invested $500 in purchasing Tiger at work in life and in business, a
shoes from Japan. They founded constant battle between peace and
Blue Ribbon Sports, Inc. (either in chaos. Neither can be mastered, but
1962 or 1963 – I have seen both dates both can be influenced. How you go
reported). about that is the key to success.”
In their first year they cleared $364,
but by 1969 sales had rocketed to a Source: http://www.biogs.com/famous/
million dollars. The company was knightphilip.html. © 2002–2014 Danny
renamed Nike in 1972. Rosenbaum All Rights Reserved.
In sports marketing, teams represent perhaps one of the most interesting examples
of loyalty. It is common to hear us speak of people as being “loyal fans” or “fair-
weather fans.” The loyal fans endure all the team’s successes and hardships.
As the definition implies, they continue to prefer their team over others.
Alternatively, the fair-weather fan will jump to and from the teams that are
successful at the time.
What are the determinants of fan loyalty to a team? Psychologist Robert Passikoff
believes the interaction of four factors creates fan loyalty.18 The first factor is the
entertainment value of athletics. As we discussed in Chapter 5, entertainment
value is one of the underlying factors of fan motivation. In addition, entertainment
was discussed as one of the perceived values of sports to the community. The
second component of fan loyalty is authenticity. Passikoff defines authenticity as the
“acceptance of the game as real and meaningful.” Fan bonding is the third component
of fan loyalty. Bonding refers to the degree to which fans identify with players and
the team. The bonding component is similar to the concept of fan identification
discussed in Chapter 5. The fourth and final component of fan loyalty is the history and
tradition of the team. For example, the Cincinnati Reds are baseball’s oldest team and,
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Table 7.2 Psychological commitment to team scale
1. I might rethink my allegiance to my favorite team if this team consistently performs poorly
2. I would watch a game featuring the [name of team] regardless of which team they are playing
3. I would rethink my allegiance to the [name of team] if the best players left the team (i.e. transfer,
graduate, etc.).
4. Being a fan of the [name of team] is important to me.
5. Nothing could change my allegiance to the [name of team].
6. I am a committed fan of the [name of team].
7. It would not affect my loyalty to the [name of team] if the athletic department hired a head coach
that I disliked very much.
8. I could easily be persuaded to change my preference for the [name of team].
9. I have been a fan of the [name of team] since I began watching collegiate football.
10. I could never switch my loyalty from the [name of team] even if my close friends were fans of
another team.
11. It would be unlikely for me to change my allegiance from the [name of team] to another team.
12. It would be difficult to change my beliefs about the [name of team].
13. You can tell a lot about a person by their willingness to stick with a team that is not performing
well.
14. My commitment to the [name of team] would decrease if they were performing poorly and there
appeared little chance their performance would change.
although they may be lacking in other dimensions of loyalty, they certainly have a long
history and tradition with the fans in the greater Cincinnati area.
7
To measure fan loyalty, self-identified fans are asked to rate their hometown teams
on each of the four dimensions. Interestingly, the fan loyalty measure does not
specifically include a team performance component. Contrary to popular belief,
Passikoff believes winning and loyalty do not always go hand in hand.
Another way to operationalize the loyalty construct has been developed by
researchers Dan Mahony and his colleagues.19 They believe that loyalty can be
thought of as having two distinct components: attitudinal loyalty and behavioral loyalty.
Attitudinal loyalty can be expressed as an individual’s psychological commitment to
the team (or PCT). To better understand how to measure PCT and what it means,
Table 7.2 shows the scale developed by Mahony.
In our society, loyalty to sports teams, at the high school, college, and professional
levels, is perhaps higher than it is for any other goods and services we consume.
Unfortunately, team loyalty at the professional level is beginning to erode because
of the constant threat of uprooting the franchise and moving it to a new town. This
is perhaps one reason for the increased popularity of amateur athletics. Colleges will
not threaten to move for a better stadium deal, and athletes do not change teams
for better contracts (although they do leave their universities early for professional
contracts). Historically, fan loyalty has been defined in four ways: Pure entertainment
– how well a team performs or how exciting the play; fan bonding – respect and
admiration of players; history and tradition – is the game and the team part of
community beliefs and rituals; and authenticity – how well they play as a team or
how well the stadium or managers/players present themselves in the community. To
increase fan loyalty, many teams are establishing fan loyalty programs, pairing new
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technology with existing marketing principles. Technology facilitates engagement
with fans during games through a variety of scoreboard and fan chatter platforms.
These platforms could be expanded to all team branded touch points that a fan may
encounter. These points include sports websites, fantasy sports systems, and stores
and bars in which sports fans purchase products.20
The loyalty programs are driven by a card that is swiped at kiosks when fans enter
a stadium or event. The fans benefit by earning points that can be redeemed for
rewards such as free tickets, merchandise, and concessions. The teams benefit
by collecting valuable information on their fan base that can later be used to direct
strategic marketing decisions. Major League Baseball seems to have taken the
lead in fan loyalty efforts, including the most successful program with the Arizona
Diamondbacks.21
Non-sport organizations also seek to develop customer loyalty through sport. In a
Turnkey Intelligence survey conducted exclusively for Sport Business Journal and
Sport Business Daily respondents were screened and analyzed based on their general
avidity levels.22 Results revealed that overall official brands got a good ride with
NASCAR. For example, Subway who was not even an official sponsor but a part-time
sponsor on driver Carl Edwards’ car, received the highest percentage of recognition
among respondents in the quick-service restaurant category. In addition, according
to NASCAR’s Brian Moyer, managing director of market and media research,
Nationwide, the insurance company who titles NASCAR’s second-tier circuit, did a
good job of diversifying their partnership by tying-in and integrating Dale Earnhardt
Jr. and Danica Patrick with the Code Spotter and their Dash-4-Cash promotions.23
Gatorade also received high marks specifically integrating the success of their
partnership with Kroger for the Dayton 500, creating custom labels highlighting three
flavors which integrated the race and Driver Johnson. Other notable winners with
NASCAR fans were Coca-Cola, Visa, Chevrolet, Bank of America, and UPS.
Licensing
The importance of having a strong brand is demonstrated when an organization
considers product licensing. Licensing is a contractual agreement whereby a
company may use another company’s trademark in exchange for a royalty or fee.
A branding strategy through licensing allows the organization to authorize the use
of brand, brand name, brand mark, trademark, or trade name in conjunction with a
good, service, or promotion in return for royalties. According to author Steve Sleight,
“Licensing is a booming area of the sports business with players, teams, event
names, and logos appearing on a vastly expanding range of products.”24 For example,
the NFL has approximately 175 licensees selling more than 2,500 products such as
apparel, sporting goods, basketball cards and collectibles, home furnishings, school
supplies, home electronics, interactive games, home video, publishing, toys, games,
gifts, and novelties.25
Since the emergence of NFL Properties in 1963, licensing has become one of
the most prevalent sports product strategies. In 2012, sales of licensed products
generated an estimated $5.454 billion in royalties, a gain of 2.5 percent over 2011,
for an estimated retail value of $112.1 billion.26 Sports accounted for an estimated
$12.6 billion in retail sales and collegiate merchandise accounted for an additional
$3.8 billion, royalties were $685 million and $206 million, respectively.27 Major League
Baseball retained top spot as the largest sports licensing agency; however, the
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Photo 7.3 Future Redbirds in their St. Louis Cardinals licensed baby gear
Source: Matthew Shank
National Football League, National Basketball Association, collegiate products, WWE,

7
NHL and NASCAR all topped the billion dollar mark. Additionally, the PGA and Major
League Soccer are growing markets that together account for $1.19 billion in sales.
Let’s take a look at the top five properties and their plans for strategic growth.
1. Major League Baseball, $5.28 billion: The 30 clubs that make up Major League
Baseball scored more than 74 million fans during the 2013 championship season,
producing the sixth largest total attendance in the history of the league. MLB
was also bolstering its number of licensing deals. MLB announced a variety of
exclusive multi-year deals with newcomers in 2013. MLB forged a multi-year
agreement with Pandora jewelry introducing a collection of Pandora charms
representing the Leagues’ 30 MLB clubs.28 In addition MLB and Wines by Design
(WBD) announced a new relationship to feature limited edition, collectible baseball
wines. Howard Smith, Senior Vice President of Licensing noted that WBD would
be introducing wines from a variety of winemakers and tailor each to individual
teams for their fans to enjoy throughout the season.29 These deals helped MLB
retain the top spot in sport licensing sales and further complement previous
enactments such as Topps, the first exclusive baseball card company of MLB in
nearly 30 years, as well as others including Ballpark Classics for ballpark-themed
tabletop baseball games; ballpark-branded grass seed blends and fertilizers from
The Scotts Miracle-Gro Company; and Tommy Bahama in a multi-year deal for a
series of collector’s edition Major League Baseball team shirts.
2. National Football League, $3.25 billion: The NFL split a key part of its licensing
deal between Nike and New Era in the hopes of enhancing future revenue.
The five-year multimillion-dollar deals with those companies and five others
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began in 2012 and many analysts believe they could be worth $1 billion to
the U.S. sport league.30 The goal was to provide the fans with a wider breath
of merchandise and under the new agreement Nike secures the license for
uniforms and gear worn by players and coaches, while New Era is the on field
hat provider.31 The NFL also extended agreements with Under Armour (sponsor
of the NFL Combine), GIII (outerwear), VF (T-shirts and fleece), and Outerstuff
(youth apparel).32 Other key NFL initiatives focus on Back To Football, women’s
merchandise, tailgating, cross promotion with NFL sponsors (for example, Proctor
& Gamble’s Gillette razor blades). NFL-licensed product is sold at GSI/NFLShop.
com, team stores, and national retailers such as Kohl’s.
3. National Basketball Association, $3 billion: Key licensing properties include
NBA, WNBA, NBA Development League, and USA Basketball. With the start
of every new season, the NBA introduces new uniforms and new products.
To celebrate the Los Angeles Lakers’ 15th championship, NBA unveiled a
line of commemorative merchandise. The line was highlighted by an Adidas
anniversary jacket, which featured 15 individual patches, each one representing
a championship year. The Lakers wore the jacket on-court opening night when
the team received their championship rings. The collection was sold at Champs
Sports, NBA Store on Fifth Avenue, and NBAStore.com. Other new products
include the launch of new trading cards from the NBA’s new exclusive trading
card partner, Panini, and the launch of a new trading card game called Adrenalyn.
In 2013, the NBA signed a three-year, $100 million deal with technology guru
Samsung. The agreement will put the company’s tablets and televisions
courtside. The NBA is also expected to create content customized for Samsung
devices.
4. The Collegiate Licensing Company, $4.62 billion: Top collegiate properties
include Texas, Alabama, Notre Dame, Michigan, and Kentucky as well as the
NCAA, the Tournament of Roses, the BCS, and the South Eastern Conference
(SEC). Women’s, youth, and housewares will continue to be growth categories in
the college market. Vintage-inspired products and the use of vintage college logos
through the College Vault program will also continue to be a source of growth.
Electronic Arts’ NCAA Football title, which launches its 20th anniversary game
in 2012, remains the top revenue-producing college product, with exciting new
developments such as FTDs College Rose program, Nocona Boots, and projects
in the electronic and digital space. Wal-Mart continued to be the largest retailer of
collegiate licensed product. College-branded merchandise at Old Navy and Justice
proved successful, and new programs with other non-traditional college retailers
are in development. Online retailers such as Fanatics and Dreams continue to be
key partners in reaching displaced college fans. College Colors Day, a fan holiday
created by The Collegiate Licensing, will continue to provide a strong marketing
platform for retailers during the critical back-to-school selling period, with other
retail marketing programs such as Saturdays Since, I Love College Hoops, and
others providing retailers solid platforms for raising consumer awareness and
driving sales of college merchandise. (Note: Collegiate Licensing Company,
clients includes all major schools except the Ohio State University, Michigan
State, University of Southern California and Oregon.)
5. NASCAR, $1.3 billion: The key licensing properties for NASCAR and its teams
were a variety of initiatives aimed at core fans, new young fans, and those with
a love of technology. Historically NASCAR fans see licensed NASCAR products
as money well spent. 33 While Dale Earnhardt Jr. has dominated NASCAR
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merchandise sales over the past decade, other newcomers, such as Danica
Patrick, Austin Dillon, Ricky Stenhouse Jr., Trevor Bayne and Kyle Larson provide
a new set of inventory in the collectibles and merchandise markets. In fact, after
her procurement of pole position in 2013, Patrick merchandise soared, setting
off a flurry of buying activity.34 Traditional licensing products include apparel,
die-cast, and collectibles. In fact, NASCAR die-cast collecting has become a
bona fide hobby. However, the economic downturn and a saturated licensing
market have raised concerns of how NASCAR teams can stack up in the future.
Therefore, NASCAR announced the formation of the NASCAR Teams Licensing
Trust to coordinate merchandise sales of the top 11 teams.35 In addition, other
new programs were announced in the electronics category with products such
as Right Way Dale Earnhardt Jr. Spotter GPS, Centon NASCAR flash drives and
new remote-control cars and slot car racing sets by Jada and SCX. Expansion
of the NASCAR hologram program consisted of continued protection for the
sport and the fans who buy licensed products coupled with an online NASCAR
Superstore giveaway for each code registered. NASCAR’s licensing business will
continue to focus on avid fans and expand its product lines for new young fans.
There will be special emphasis on a video game strategy, outdoor programs,
the launch of the NASCAR Hall of Fame and expanded retail. The demand
for NASCAR merchandise still goes up after a victory, and many suggest
that NASCAR should be proactive and make a more concerted effort to hark
back to its dirty fingernail roots redefining the win on Sunday, sell on Monday
mentality.36
Advantages to the licensee
X The licensee benefits from the positive association with the sports entity. In other
words, the positive attributes of the player, team, league, or event are transferred
7
to the licensed product or service.
X The licensee benefits from greater levels of brand awareness.
X The licensee benefits by saving the time and money normally required to build high
levels of brand equity.
Web 7.3 Licensed merchandise on the Web

Source: FansEdge™, Incorporated
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X The licensee may receive initial distribution with retailers and potentially receive
expanded and improved shelf space for their products.
X The licensee may be able to charge higher prices for the licensed product or
service.
Disadvantages to the licensee
X The athlete, team, league, or sport may fall into disfavor. For example, using an
athlete such as Terrell Owens is risky given his past behavior, off the field as well
as on the field.
X In addition to the licensee, the licensor also experiences benefits and risks due to
the nature of the licensing agreement.
Advantages to the licensor
X The licensor is able to expand into new markets and penetrate existing markets
more than ever before.
X The licensor is able to generate heightened awareness of the sports entity and
potentially increase its equity if it is paired with the appropriate products and
services.
Disadvantages to the licensor
X The licensor may lose some control over the elements of the marketing mix.
For instance, product quality may be inferior, or price reductions may be offered
frequently. This may lessen the perceived image of the licensor.
Based on all these considerations, care must be taken in choosing merchandising–
licensing partnerships. Certainly, “the manufacturer of the licensed product should
demonstrate an ability to meet and maintain quality control standards, possess
financial stability, and offer an aggressive and well-planned marketing and promotional
strategy.”37
In addition to carefully choosing a partner, licensors and licensees must also be on
the lookout for counterfeit merchandise. One estimate has it that $1 billion worth of
counterfeit sports products hit the streets each year. For instance, the NFL typically
confiscates $1 million worth of fake goods during Super Bowl week. The licensing
affiliate Locog had targeted in excess of $110 million from merchandising sales for the
London 2012 Olympics, while the Beijing organizing committee targeted income of
$70 million from merchandising Olympic products for the 2008 Games and in previous
games an estimated $17 million in bad goods were sold. In an attempt to stop or
reduce counterfeit merchandise, Olympic officials have previously used a new DNA
technology in which an official Olympic product has a special ink containing the DNA
of an athlete. A handheld scanner determines whether the tag matches the DNA and
whether the merchandise is legitimate.38
This problem has become so pervasive that the leagues now have their own logo
cops who travel from city to city and event to event searching for violations. In
addition to this form of enforcement, the Coalition to Advance the Protection
of Sports Logos (CAPS; see http://www.capsinfo.com/) was formed in 1992 to
investigate and control counterfeit products. Since 1993, CAPS has been involved in
the seizure of more than nine million pieces of counterfeit merchandise featuring the
logos of various professional sports leagues and teams, colleges, and universities
– valued at more than $329 million. How can consumers guard against fakes?
CAPS offers the following suggestions to consumers who are purchasing sports
products:39
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X Look for quality – Poor lettering, colors that are slightly different from the true
team colors and background colors bleeding through the top color overlay are all
signs of poor product quality.
X Verification – Counterfeiters may try to fake the official logo. Official items will
typically have holograms on the product or stickers with moving figures, and
embroidered logos should be tightly woven.
X Check garment tags – Poor-quality merchandise is often designated by split
garment tags. Rarely, if ever, will official licensed products use factory rejects or
seconds.
Quality
Thus far, we have looked at some of the branding issues related to sports products.
Another important aspect of the product considered by sports marketers that will
influence brand equity is quality. Let us look at two different types of quality: service
quality and product quality.
Quality of services
As sports organizations develop a marketing orientation, the need to deliver a high
level of service quality to consumers is becoming increasingly important. For instance,
at NFL Properties (NFLP), service quality is taken to the highest levels. NFLP is
highly committed to understanding the individualized needs of each of its sponsors.
Every sponsor of the NFL receives the name of a primary contact at NFLP whom
they can call at any time to discuss their marketing needs. They also recognize that
each sponsor is in need of a unique sponsorship program, given their vastly different
objectives and levels of financial commitment to the NFL.40 7
Although NFLP is an excellent example of an organization that values service quality,
we have yet to define the concept. Service quality is a difficult concept to define,
and as such, many definitions of service quality exist. Rather than define it, most
researchers have resorted to explaining the dimensions or determinants of service
quality. Unfortunately, there is also little agreement on what dimensions actually
comprise service quality or how best to measure it.
Lehtinen and Lehtinen say service quality consists of physical, interactive, and
corporate dimensions.41 The physical quality component looks at the tangible
aspect of the service. More specifically, physical quality refers to the appearance
of the personnel or the physical facilities where the service is actually performed.
For example, the physical appearance of the ushers at the game may affect the
consumer’s perceived level of service quality.
Interactive quality refers to the two-way flow of information that disseminates from
both the service provider and the service recipient at the time of the service encounter.
The importance of the two-way flow of information is why many researchers choose
to examine service quality from a dyadic perspective. This suggests gathering the
perceptions of service quality from stadium employees, as well as fans.
The image attributed to the service provider by its current and potential users is
referred to as corporate quality. As just discussed, product performance and quality
is one of the drivers of brand image. Moreover, Lehtinen and Lehtinen also cited
customer service as one of the image drivers. This suggests a strong relationship
between corporate quality, or image of the team, and consumers’ perceptions of
service quality.
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Groonos describes service quality dimensions in a different manner.42 He believes
service quality has both a technical and functional component. Technical quality is
described as “what is delivered.” Functional quality refers to “how the service is
delivered.” For instance, “what is delivered” might include the final outcome of the
game, the hot dogs that were consumed, or the merchandise that was purchased.
“How the service is delivered” might represent the effort put forth by the team and
its players, the friendliness of the hot dog vendor, or the quick service provided by the
merchandise vendor. This is especially important in sports marketing, as “the total
game experience” is evaluated using both the “what” and “how” components of
quality.
The most widely adopted description of service quality is based on a series of
studies by Parasuraman, Zeithaml, and Berry.43 They isolated five distinct dimensions
of service quality. These dimensions of service quality comprise some of its
fundamental areas and consist of reliability, assurance, empathy, responsiveness, and
tangibles. Because of their importance in service quality literature, a brief description
of each follows.
Reliability refers to the ability to perform promised service dependably and
accurately. Assurance is the knowledge and courtesy of employees and their ability
to convey trust and confidence. Empathy is defined as the caring, individualized
attention the firm provides its customers. Responsiveness refers to the willingness
to help customers and provide prompt service. Tangibles are the physical facilities,
equipment, and appearance of the service personnel.
To assess consumers’ perceptions of service quality across each dimension, a
22-item survey instrument was developed by Parasuraman, Zeithaml, and Berry.
The instrument, known as SERVQUAL, requires that the 22 items be administered
twice. First, the respondents are asked to rate their expectations of service quality.
Next, the respondents are asked to rate perceptions of service quality within the
organization. For example, “Your dealings with XYZ are very pleasant” is a perception
(performance) item; whereas the corresponding expectation item would be
“Customers’ dealing with these firms should be very pleasant.”
From a manager’s perspective, measuring expectations and perceptions of
performance allows action plans to be developed to improve service quality.
Organizational resources should be allocated to improving those service quality areas
where consumer expectations are high and perceptions of quality are low.
The original SERVQUAL instrument has been tested across a wide variety of
industries, including banking, telecommunications, health care, consulting, education,
and retailing. Most important, McDonald, Sutton, and Milne adapted SERVQUAL and
used it to evaluate spectators’ perceptions of service quality for an NBA team. The
researchers fittingly called their adapted SERVQUAL instrument TEAMQUAL.44
In addition to finding that the NBA team exceeded service quality expectations on all
five dimensions, the researchers looked at the relative importance of each dimension
of service quality. More specifically, fans were asked to allocate 100 points among
the five dimensions based on how important each factor is when evaluating the
quality of service of a professional team sport franchise. As the results show in
Table 7.3, tangibles and reliability are considered the most important dimensions of
service quality. Tangibles, as you will recall from Chapter 5, form the foundation of
the sportscape, or stadium environment. This study provides additional evidence that
the tangible factors, such as seating comfort, stadium aesthetics, and scoreboard
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Table 7.3 Importance weights allocated to the five TEAMQUAL dimensions
Dimensions Allocation
Reliability – ability to perform promised services dependably and accurately 23%
Assurance – knowledge and courtesy of employees and their ability to convey trust 16
and confidence
Empathy – the caring, individualized attention provided by the professional sports 18
franchise for its customers
Responsiveness – willingness to help customers and provide prompt service 19
Tangibles – appearance of equipment, personnel, materials, and venue 24
Source: Mark A. McDonald, William A. Sutton, and George R. Milne, “TEAMQUAL: Measuring Service
Quality in Professional Team Sports,” Sport Marketing Quarterly, vol. 4, no. 2 (1995).
quality, play an important role in satisfying fans. Understanding fans’ perceptions of

TEAMQUAL is critical for sports marketers in establishing long-term relationships with
existing fans and trying to attract new fans. As McDonald, Sutton, and Milne point out,
“Consumers who are dissatisfied and feel that they are not receiving quality service
will not renew their relationship with the professional sport franchise.”
On the sports participation side, an excellent study was conducted to explore the
determinants of service quality in the sport recreation industry or recreation center.
The researchers, Ko and Pastore,45 suggest that service quality is multidimensional
and consists of four primary factors. Factor one is program quality, which refers to
the range of programs, such as the variety of recreation and fitness programs offered,
operating time or whether programs start and finish on time, and whether participants
can get up-to-date information on programs. Factor two, interaction quality, is the level
of customer to employee interaction and also customer to customer relationships.
Outcome quality is the third factor and is based on physical change, or does the
7
participant realize the health benefit he or she wished to obtain; valence, which refers
to post consumption or whether the overall experience was a good or bad one; and
sociability, or the social interaction, which motivates many participants to engage in
physical activity. The final factor, environment quality, is the ambient condition, design,
and equipment quality. All of these refer to the tangible, physical environment in
which the consumption takes place.
Quality of goods
The quality of sporting goods that are manufactured and marketed has two distinct
dimensions. The first quality dimension of goods is based on how well the product
conforms to specifications that were designed in the manufacturing process. From
this standpoint, the quality of goods is driven by the organization and its management
and employees. The other dimension of quality is measured subjectively from the
perspective of consumers or end users of the goods. In other words, does the product
perform its desired function? The degree to which the goods meet and exceed
consumers’ needs is a function of the organization’s marketing orientation.
From the sports marketing perspective, the consumer’s perception of product
quality is of primary importance. Garvin found eight separate quality dimensions,
which include performance, features, reliability, conformance, durability, serviceability,
aesthetics, and perceived quality (see Table 7.4).
Whether it is enhancing goods or service quality, most sports organizations are
attempting to increase the quality of their product offerings. In doing so, they can
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Table 7.4 Quality dimensions of goods
Quality dimensions of goods Description

Performance How well does the good perform its core function? (Does the
tennis racquet feel good when striking the ball?)
Features Does the good offer additional benefits? (Are the golf clubheads
constructed with titanium?)
Conformity to specifications What is the incidence of defects? (Does the baseball have the
proper number of stitches or is there some variation?)
Reliability Does the product perform with consistency? (Do the gauges of
the exercise bike work properly every time?)
Durability What is the life of the product? (How long will the golf clubs last?)
Serviceability Is the service system efficient, competent, and convenient? (If
you experience problems with the grips or loft of the club, can the
manufacturer quickly address your needs?)
Aesthetic design Does the product’s design look and feel like a high-quality
product? (Does the look and feel of the running shoe inspire you
to greater performance?)
Perceived quality Is the product perceived to be long lasting? Does the product have
a good reputation?
Source: Adapted from D. A. Garvin, “Competing on the Eight Dimensions of Quality,” Harvard
Business Review (November–December 1987), 101–109.
better compete with other entertainment choices, more easily increase the prices of
their products, influence the consumer’s loyalty, and reach new market segments
willing to pay more for a higher quality product.
Some sports franchises have been criticized for attempting to increase the quality
of their overall products, while driving up the price of tickets. Unfortunately, it is
becoming more costly for the “average fan” to purchase tickets to any professional
sporting event. Sports marketers have targeted a new segment (corporations) and
overlooked the traditional segments.
Other criticisms have been directed at the NCAA and professional sports for making
it too easy for athletes to leave school and turn professional. The National Basketball
Association announced that 56 players, including 49 players from U.S. colleges and
institutions and 7 international players, have filed as early entry candidates for the
2012 NBA Draft. This exodus of stars may have detrimental effects on “product
quality” at the high school and college levels. The NFL requires draftable college
players to exhaust eligibility (either 4 or 5 years) and non-college players become
automatically eligible for selection in the next principal draft that is conducted after
four NFL regular seasons have begun and ended following either his graduation from
high school or graduation of the class in which one entered high school.46 Even under
the NFL’s “Special Eligibility” route, requiring players to request special permission
to enter the league, the players must still be three seasons removed from their high
school graduation.47 The reason for this rule is that it’s believed that younger college
players are not fully developed physically and are not ready for the physical demands
of professional football.48 The most famous challenge to this ruling, in which the
courts ultimately upheld the policies of the NFL, was former Ohio State standout
Maurice Clarett. Clarett challenged the ruling of the NFL and entered the 2004 draft.
Federal Judge Shira Scheindlin initially ruled that the NFL could not bar Clarett from
participating in the 2004 NFL Draft. This decision was later overturned by the United
292
States Court of Appeals for the Second Circuit, and Clarett’s higher appeal was
refused by the Supreme Court.
From a marketing standpoint, the fans are also suffering and may experience
dissatisfaction when college players and high school players turn pro early. Teams
no longer stayed together long enough to get and capture the imagination of fans.
Former Atlantic 10 Commissioner Linda Bruno stated, “It seems as soon as college
basketball hooks on to a star, he’s suddenly a part of the NBA. Athletes leaving early
have definitely hurt the college game.” University of Louisville’s head basketball coach
Rick Pitino, whose opinion is widely respected, adds, “Quite frankly, I think college
basketball is in serious trouble.” Interestingly, the early departures that are making the
college game less appealing are doing nothing to strengthen the quality of the NBA.
The NBA is saturated with players whose games never had a chance to grow or, as
former Stanford Coach Mike Montgomery put it, “will have to be nurtured through
[their] immaturity.”49
A final product feature related to perceptions of product quality is product warranties.
Product warranties are important to consumers when purchasing expensive goods
or hedonic purchases because they act to reduce the perceived risk and offset
consumer sensitivity, i.e., fear of replacement, associated with cognitive dissonance.
Traditional warranties are statements indicating the liability of the manufacturer
for problems with the product. For example, Spalding’s line of Neverflat balls has
a product redesign with a new membrane, a redesigned valve, and the addition
of NitroFlate, a substance added to the ball during inflation that forms a barrier
preventing seepage. Spalding has produced balls it says will not leak air for at least a
year. It is backing that claim with a money-back guarantee.
Interestingly, warranties are also being developed by sports organizations. The New
Jersey Nets offered their season ticket holders a money-back guarantee if they were
7
dissatisfied with the Nets’ performance. With the price of tickets skyrocketing for
professional sporting events, perhaps these service guarantees will be the wave of
the future. The Indiana Ice of the U.S. Hockey League offered their fans a similar deal.
The Ice are so convinced local hockey fans will enjoy seeing the under-20 amateur
team play next season, franchise officials are offering a money-back guarantee on
season tickets.
Product design
Product design is one competitive advantage that is of special interest to sports
marketers. It is heavily linked to product quality and the technological environment
discussed in Chapter 2. In some cases, product design may even have an impact on
the sporting event. For example, the latest technology in golf clubs does allow the
average player to improve his or her performance on the course. The same could be
said for the new generation of big sweet spot, extra-long tennis racquets. In another
example, the official baseball used in the major league games was believed to be
“juiced up.” In other words, the ball was livelier because of the product design. As
a result of this “juiced up” ball, home run production increased, much to the delight
of the fans. From a sports marketing perspective, anything that adds excitement and
conjecture to a game with public relation problems is welcomed. In the end, what
matters is not whether the ball is livelier, but that the game is.
Baseballs are not the only products that are having an impact on the outcome of
sporting events, and equipment changes aren’t the only way to think about product
293
Technological
Product design Product quality
environment
Figure 7.5 Relationship among product design, technology, and product quality
design or redesign. Baseball is constantly looking for ways to make games shorter
and thus more attractive to fans. In a recent rule change, the time a pitcher is allotted
to deliver the ball with no runners on base has changed from 20 to 12 seconds. The
price for each violation is a ball. It is hoped that this minor product redesign will have
a major impact. Historic rule changes that have had a significant impact on the sport
product include the designated hitter in baseball, the shot clock in basketball, or (in
1912) when hockey moved from seven to six players on the ice at one time.
Product design is important to sport marketers because it ultimately affects
consumers’ perceptions of product quality. Moreover, organizations need to monitor
the technological environment to keep up with the latest trends that may affect
product design. Let us look at this relationship in Figure 7.5.
As you would imagine, the technological environment has a tremendous impact on
product design decisions. In almost every sporting good category, sports marketers
communicate how their brands are technologically superior to the competition.
The golf equipment industry thrives on the latest technological advances in ball and
club design. Bicycle manufacturers stress the technological edge that comes with
the latest and greatest construction materials. Tennis racquets are continually moving
into the next generation of frame design and racquet length. NordicTrack exercise
equipment positions itself as technologically superior to other competing brands.
Nike is continually developing new lines of high-tech sports gear in its state-of-the-art
Sports Research Lab, which aided in the development of the Nike+ wireless system,
allowing Nike footwear to communicate with an iPod nano for the ultimate personal
running and workout experience. “The most common feedback we are receiving from
Nike+ users is that the experience has changed the way they approach running,”
says Brent Scrimshaw, vice president of EMEA Marketing.50 “Whether it’s the instant
feedback they hear over their music or the ability to set goals and challenge friends
on nikeplus.com, Nike+ is encouraging people who never ran to run, and motivating
people who run to run more.” In this case, the claim is that product design is actually
influencing not only performance, but motivation to perform.
The product design of sporting goods, in turn, influences consumer perceptions of
product quality. By definition, product design includes the aesthetics, style, and
function of the product. Two of the eight dimensions of the quality of goods are
incorporated in this definition, providing one measure of the interdependency of these
two concepts.
The way a good performs, the way it feels, and the beauty of the good are all
important aspects of product design. Again, think of the numerous sporting goods
that are purchased largely on the basis of these benefits. Consumers purchase golf
clubs because of the way they look and feel. Tennis shoes are chosen because of the
special functions they perform (cross-trainers, hiking, or basketball) and the way they
look (colors and style).
Color has historically been an important factor in the design of almost all licensed
merchandise. Recent trends show that in hats, jerseys, and jackets, anything that’s
black is “gold.” The Oakland Raiders’ silver and black are always near the top in NFL
294
Photo 7.4 Bike manufacturers must stress the importance of product design and
technology.
merchandise sales regardless of the team’s record on the field. The Toronto Blue Jays
adopted logo incorporates black and moves away from the reds and blues of the past.
Although fans associate certain colors with their favorite teams (e.g., Dodger Blue or
the Cincinnati Reds), MLB markets licensed products that deviate from the traditional
colors. Baby blues, pinks and camouflage are replacing the traditional team colors,
and fans seem to be responding. Examples like these illustrate that color alone may
be a motivating factor in the purchase of many sports products. Sports marketers,
therefore, must consider color to be critical in product design.
Figure 7.5 also shows that product quality may influence product design to some
extent. Sports organizations are continually seeking to improve the levels of product
quality. In fact, having high-quality goods and services may be the primary objective
of many firms. As such, products will be designed in the highest quality manner with
little concern about the costs that will be ultimately passed on to the consumers.
295
Some major league sports organizations (e.g., New York Yankees and Detroit Red
Wings) will design their teams to achieve the highest quality levels without cost
consideration.
As new technologies continue to emerge, product design will become increasingly
important. Organizations with a marketing orientation will incorporate consumer
preferences to ensure their needs are being met with respect to product design
for new and existing products. What will the future bring with respect to product
design, technology, and the need to satisfy consumers? One hint comes to us via
the athletic shoe industry. With advances in technology, customized shoes are
now being produced for professional athletes. Gone are the days when recreational
athletes could wear the same shoes as their professional counterparts. Today’s
professional athletes are demanding custom fit and high-tech shoes, and weekend
athletes will soon require the same. Companies such as Nike are now customizing
certain features of their shoes to the mass market under the Nike ID (individualized
design) name. While other companies such as Under Armour, who made headlines at
the 2014 Olympics in Sochi for seemingly all the wrong reasons, i.e., speed skating
apparel deemed inferior, remained committed to its customers and ended up being
vindicated, also cementing its place at the next two Olympics.
Another perspective on the future of product design is that the design of products will
stem from demand and changes in the marketing environment. One such change is
the emergence of a viable market for women’s sports products. For instance, ski and
snowboard companies are now turning their attention to women’s products based
on a growing number of women hitting the slopes. Historically, the only difference in
men’s and women’s ski products was the color, but today there are product design
changes that truly address women’s needs. Skis for women are softer and lighter.
Boots are more cushioned and designed to fit the foot and calf muscles of the female
skier. All of these product changes try to capitalize on the marketing environment and
satisfy the needs of a growing target market.51
Summary Most sports products possess the

characteristics of both goods and
Sports products are defined as goods, services. For example, a sporting event
services, or any combination of the two sells goods (e.g., concessions) and
that are designed to provide benefits services (e.g., the competition itself).
to a sports spectator, participant, or The classification of a sports product as
sponsor. Within the field of sports either a good or a service is dependent
marketing, products are sometimes on four product dimensions: tangibility,
thought of as bundles of benefits desired standardization and consistency,
by consumers. As discussed in Chapter perishability, and separability. Tangibility
1, sports products might include sporting refers to the ability to see, feel, and
events and their participants, sporting touch the product. In other words,
goods, and sports information. The tangibility is the physical dimension of
definition of sports products also makes the sports product. Standardization refers
an important distinction between goods to the consistency of the product or the
and services. ability of the producer to manufacture
Goods are defined as tangible, a product with little variation over time.
physical products that offer benefits One of the unique and complex issues
to consumers. Conversely, services for sports marketers is dealing with the
are intangible, nonphysical products. inconsistency of the sports product (i.e.,
296
the inability to control the performance translatable into an exciting logo, imply
of the team or athlete). Perishability is the benefits that the sports product
the ability to store or inventory product. delivers, be consistent with the image
Pure services are totally perishable of the sports product, and be legally and
(i.e., you cannot sell a seat after the ethically permissible.
game has been played), whereas goods The broad purpose of branding is to
are not perishable and can be stored differentiate your product from the
or warehoused. Separability, the final competition. Ultimately, the consumer
product dimension, refers to the ability will (hopefully) establish a pattern of
to separate the good from the person repeat purchases for your brand (i.e.,
providing the service. In the case of an be loyal to your sports product). Before
athletic event, there is little separation this can happen, sports marketers must
between the provider and the consumer. guide consumers through a series of
That is, the event is being produced and steps known as the branding process.
consumed simultaneously. The branding process begins by building
Along with classifying sports products brand awareness, in which consumers
by the four product dimensions, sports recognize and remember the brand
products are also categorized based on name. Next, the brand image, or the
groupings within the sports organization. consumers’ set of beliefs about a
Product lines are groups of products brand, must be established. After the
that are closely related because they proper brand image is developed, the
satisfy a class of needs. These products objective of the branding process is to
are used together, sold to the same develop brand equity. Brand equity is
customer groups, distributed through the value that the brand contributes to
the same types of outlets, or fall within a
given price range. The total assortment
a product in the marketplace. Finally,
once the brand exhibits high levels of
7
of product lines is called the product equity, consumers are prone to become
mix. The mix represents all the firm’s brand loyal, or purchase only your brand.
products. Strategic decisions within the Certainly, sports marketers are interested
sports organization consider both the in establishing high levels of awareness,
product lines and the entire product mix. enhancing brand image, building equity,
For instance, an organization may want to and developing loyal fans or customers.
add product lines, eliminate product lines, One of the important sports product
or develop new product lines that are strategies that is contingent upon building
unrelated to existing lines. a strong brand is licensing. Licensing
Products can also be described on the is defined as a contractual agreement
basis of three interrelated dimensions whereby a company may use another
or characteristics: branding, quality, company’s trademark in exchange for
and design. Branding refers to the a royalty or fee. The licensing of sports
product’s name, design, symbol, or any products is experiencing tremendous
combination used by an organization growth around the world. Advantages
to differentiate products from the to the licensee (the organization
competition. Brand names, or elements purchasing the license or use of the
of the brand that can be spoken, are name or trademark) include positive
important considerations for sports association with the sports entity,
products. When choosing a brand name, enhancing brand awareness, building
sports marketers should consider the brand equity, improving distribution and
following: the name should be positive retail relationships, and having the ability
and generate positive feelings, be to charge higher prices. Disadvantages
297
to the licensee are the possibility of the have designed an instrument called
sports entity experiencing problems TEAMQUAL to assess the service quality
(e.g., athlete arrested or team performing within sporting events.
poorly or moving). However, the licensor The quality of goods is based on whether
(the sports entity granting the permission) the good conforms to specifications
benefits by expanding into new markets, determined during the manufacturing
which creates heightened awareness. process and the degree to which the
Yet the licensor may not have tight good meets or exceeds the consumer’s
controls on the quality of the products needs. Garvin has conceptualized the
being licensed under the name. quality of goods from the consumer’s
Quality is another of the important perspective. He found eight separate
brand characteristics. The two different dimensions of goods quality, including
types of quality that affect brand performance, features, conformity to
image, brand equity, and, ultimately, specifications, reliability, durability,
loyalty, are the quality of services and serviceability, aesthetic design and
the quality of goods. The quality of perceived quality.
services, or service quality, is generally Product design is the final characteristic
described on the basis of its dimensions. of the “total product.” Product design
Parasuraman, Zeithaml, and Berry is defined as the aesthetics, style, and
describe service quality as having five function of the product. It is important
distinct dimensions: reliability, assurance, to sports marketers in that it ultimately
empathy, responsiveness, and tangibles. affects consumers’ perceptions of
Reliability refers to the ability to perform product quality. For a sporting event,
a promised service dependably and the product design might be thought
accurately. Assurance is the knowledge of as the composition of the team. For
and courtesy of employees and their sporting goods, product design has
ability to convey trust and confidence. largely focused on the development of
Empathy is defined as the caring, technologically superior products. In
individualized attention the firm provides fact, the technological environment is
its customers. Responsiveness refers to believed to directly influence product
the willingness to help customers and design. Product design, in turn, enjoys
provide prompt service. Tangibles are a reciprocal relationship with product
the physical facilities, equipment, and quality. In other words, product design
appearance of the service personnel. affects perceptions of product quality and
Using this framework, sports researchers may influence product design.
Key terms X empathy X quality dimensions of

X goods goods
X assurance X idle product capacity X reliability
X brand awareness X licensing X responsiveness
X brand equity X logo X separability
X brand image X logotype X service quality
X brand loyalty X perishability X services
X brand mark X product design X sports product
X brand name X product characteristics X standardization
X branding X product line X tangibility
X branding process X product mix X tangibles
X dimensions of service X product quality X TEAMQUAL
quality X product warranties X trademark
298
Review questions 2. Interview the individuals responsible

for licensing and licensing decisions
1. Define sports products. Why are on your campus. Ask them to
sports products sometimes called describe the licensing process and
“bundles of benefits”? what they believe the advantages
2. Contrast pure goods with pure are to your school.
services, using each of the 3. Construct a survey to measure
dimensions of products. consumers’ perceptions of service
3. Describe the nature of product mix, quality at a sporting event on
product lines, and product items. campus. Administer the survey to 10
Illustrate these concepts for the people and summarize the findings.
following: Converse, Baltimore What recommendations might
Orioles, and your local country club. you make to the sports marketing
4. What are the characteristics of the department based on your findings?
“total product”? 4. Go to a sporting goods store and
5. Describe branding. What are locate three sports products that you
the guidelines for developing an believe exhibit high levels of product
effective brand name? Why is brand quality. What are the commonalities
loyalty such an important concept for among these three products?
sports marketers to understand? How do these products rate on
6. Describe how an athlete’s the dimensions of product quality
image has an impact upon brand described in the chapter?
development.
7. Define licensing. What are the Internet exercises
advantages and disadvantages to the
licensee and licensor?
8. Describe service quality and discuss
1. Search the Internet for a sports
product that stresses product design
7
the five dimensions of service issues on its Web site. Then locate
quality. Which dimension is most the Web site of a competitor’s
important to you as a spectator of a sports product. How are these two
sporting event? Does this vary by the products positioned relative to each
type of sporting event? other on their Web sites?
9. Describe product quality and discuss 2. Search the Internet for three
the eight dimensions of product team nicknames (either college or
quality. Which dimension is most professional) of which you were
important to you as a consumer of previously unaware. Do these
sporting goods? Does this vary by team names seem to follow the
the type of sporting good? suggested guidelines for effective
10. How are product design, product brand names?
quality, and technology interrelated?
Endnotes
Exercises 1 Kevin Burke. “Lacrosse: The Fastest
Growing Sport in the Country” (2008).
1. Think of some sports products to Available from: http://blog.dc.esri.
which consumers demonstrate high com/2008/01/24/lacrosse-the-fastest-
degrees of brand loyalty. What are growing-sport-in-the-country/.
these products, and why do you 2 Shaquille O’Neal, http://cbs.sportsline.
com/u/fans/celebrity/shaq; “Athletic Shoes
think loyalty is so high? Give your by Shaquille O’Neal Now Available Only
suggestions for measuring brand at Payless ShoeSource,” PR Newswire,
loyalty. Financial News (January 14, 2004).
299
3 Christopher Lovelock, Services Marketing 23 Ibid.
(Englewood Cliffs, NJ: Prentice Hall, 1984). 24 Steve Sleight, Sponsorship: What Is It and
4 Boaz Herzog, “Rising with a Swoosh,” The How to Use It (London: McGraw-Hill, 1989).
Sunday Oregonian (September 21, 2003), D1. 25 Scott Sillcox, “Licensed Sports Products and
5 Joycelyn Hayward, Sporting Goods Store the Ebb and Flow of Time: What Can Change
Manager. Personal Statement. in 10 Short Years,” licensedsports.blogspot.
6 Nike Annual Report & Notice of Annual com, accessed March 3, 2014.
Meeting, Form 10-K, 2013. 26 Licensing.org, “Licensing Industry Revenue
7 Nike Annual Report & Notice of Annual Rises for Second Consecutive Year,” June
Meeting, Form 10-K, 2013. 18, 2013.
8 See, for example, Courtland Bovee and John 27 Ibid.
Thill, Marketing (New York: McGraw-Hill, 28 PR Newswire, “PANDORA Jewelry and
1992), 252. Major League Baseball Properties Form
9 Terez Paylor, “Wizards Change Name to a New Relationship,” PR Newswire.com,
Sporting Kansas City,” Kansas City Star accessed March 4, 2014.
(November 17, 2010). (http://www.kansas. 29 MLB.com, “Wines by Design Announces
com/2010/11/17/1593465/wizards-change- Wine Licensing Agreement with Major
name-to-sporting.html) League Baseball Properties with an MLB
10 The Columbus Crew, www.thecrew.com. All-Star Wine Release,” MLB.com, accessed
11 Andrew Lupton, “The NLL Fails to Excel at March 5, 2014.
the Team Name Game,” National Post (f/k/a 30 Reuters, “NFL signs Apparel Licenses with
The Financial Post) (Canada),(January 8, Nike, Six Others,” reuters.com, accessed
2007), p. S2. March 5, 2014.
12 Marcus Nelson, “Want a New Look? There’s 31 Ibid.
a Price,” The Palm Beach Post (October 24, 32 Ken Belson, “Nike to Replace Reebok as
2003). NFL’s Licensed-Apparel Maker,” New York
13 David Aaker, Managing Brand Equity (New Times (October 12, 2010), accessed March
York: The Free Press, 1991). 5, 2014.
14 James Gladden, George Milne, and William 33 Hlglicensing.com, Licensors,
Sutton, “A Conceptual Framework for NASCAR Demographics, accessed March 6,
Assessing Brand Equity in Division I College 2014.
Athletics,” Journal of Sports Management, 34 Kurt Badenhausen, “Danica Patrick
vol. 12, no. 1 (1998), 1–19. Merchandise Flying Off Shelves Since
15 George R. Milne and Mark A. McDonald, Winning Daytona 500 Pole,” Forbes.com
Sport Marketing: Managing the Exchange (February 24, 2013), accessed March 4,
Process (Sudbury, MA: Jones & Bartlett, 2014.
1999). 35 Dave Caldwell, “With Merchandise Sales
16 Louis E. Boone, C. M. Kochunny, and Dianne Down, Nascar Has High Hopes for Tiny
Wilkins, “Applying the Brand Equity Concept Cars,” New York Times Business Daily
to Major League Baseball,” Sport Marketing (August 21, 2010), accessed June 20, 2014.
Quarterly, vol. 4, no. 3 (1995), 33–42. 36 Ibid.
17 Ibid. 37 Eddie Baghdikian, “Building the Sports
18 John Lombardo, “MLB Makes It 5 Firsts in Organization’s Merchandise Licensing
a Row in Brand Keys Fan Loyalty Survey,” Program: The Appropriateness, Significance,
Street and Smith’s Sports Business Journal, and Considerations,” Sport Marketing
vol. 8, no. 10 (August 25–31, 2003), 28. Quarterly, vol. 5, no. 1 (1996), 35–41.
19 Daniel F. Mahony, Robert Madrigal, and 38 Elliott Harris, “Spitting Image: Ink with
Dennis Howard, “Using the Psychological DNA Could Put Counterfeiters on Spot at
Commitment to Team (PCT) Scale to Olympics,” Chicago Sun Times (June 8,
Segment Sport Consumers Based on 2000), 133.
Loyalty,” Sport Marketing Quarterly, vol. 9 39 Robert Thurow, 1996, “Busting Bogus
(2000), 15–25. Merchandise Peddlers with Logo Cops,” The
20 Michael Manoochehri, “Information Systems Wall Street Journal (October 24, 1997), B1,
& Service Design” (2009). Available from: B14.
http://courses.ischool.berkeley.edu/i228/f10/ 40 Rick Burton, “A Case Study on Sports
files/A4_Michael_Manoochehri_0.pdf. Property Servicing Excellence: National
21 Jeff Summers, “Diamondbacks’ Fan Football League Properties,” Sport Marketing
Loyalty Programs,” Bleacher Report (April Quarterly, vol. 5, no. 3 (1996), 23.
21, 2010). 41 Jarmi R. Lehtinen and Uolevi Lehtinen,
22 David Broughton, “Official Brands Get a Service Quality: A Study of Quality
Good Ride with NASCAR’, Sport Business Dimensions (Helsinki: Service Management
Journal (November 28–December 4, 2011). Institute, 1982).
300
42 Christian Groonos, “A Service Quality 46 See National Football League Eligibility Rules,
Model and Its Marketing Implications,” NFL Regional Combines, https://www.
European Journal of Marketing, vol. 18 nflregionalcombines.com/Docs/Eligibility%20
(1982), 36–44. rules.pdf, accessed June 20, 2014.
43 A. Parasuraman, Valarie Zeithaml, and 47 Ibid.
Leonard Berry, “A Conceptual Model of 48 Chad Walters, “NBA and NFL Draft Eligibility
Service Quality and Its Implications for Restrictions – Why?” Lean Blitz (February 15,
Future Research,” Journal of Marketing, vol. 2013).
49 (1985), 41–50. 49 Jack McCallum, “Going, Going, Gone,”
44 Mark A. McDonald, William A, Sutton, and Sports Illustrated, vol. 84, no. 20 (May 20,
George R. Milne, “TEAMQUAL: Measuring 1996), 52.
Service Quality in Professional Team Sports,” 50 Aaron Reed, “Nike+ Motivates Athletes to
Sport Marketing Quarterly, vol. 4, no. 2 ‘Run Like You’ve Never Run Before’ in New
(1995), 9–15. Commercial,” SYS-CON Media (April 20,
45 Yong Jae Ko and Donna L. Pastore, “Current 2007). Available from: http://java.sys-con.
Issues and Conceptualizations of Service com/read/364540.htm.
Quality in the Recreation Sport Industry,” 51 “Ski Industry Focusing on Women,”
Sport Marketing Quarterly, vol. 13, no. 3. sportsbusinessnews.com (January 30, 2004).
(2004).
301
CHAPTER 8
Managing sports
products
• Describe the characteristics of new products from an organizational
and consumer perspective.
• Explain the various stages of the new product development
process.
• Discuss the phases of the product life cycle and explain how the
product life cycle influences marketing strategy.
• Determine the factors that will lead to new product success.
• Discuss the diffusion of innovations and the various types of
adopters.
8 Managing sports products
The article on Nike Fuel Bands provides an interesting illustration of a new sports
product that is taking off in the North American market. There is obviously nothing
new about fitness, or even wristbands, but when combined they create an exciting
new sport product. Nike will have to keep this in mind when executing a marketing
strategy for this emerging new sport product
NIKE ANNOUNCES NEW NIKE+ FUELBAND – MEASURING

MOVEMENT TO MAKE LIFE A SPORT
New York (January 19, 2012)
NIKE, Inc. (NYSE:NKE) announced same activity regardless of physical

today the NIKE+ FuelBand, an makeup.
innovative wristband that tracks Users set a daily goal of how
and measures everyday movement active they want to be, and how
to motivate and inspire people to much NikeFuel they want to achieve.
be more active. Activities can now The NIKE+ FuelBand displays a
be measured through a new metric series of 20 LED lights that go from
called NikeFuel: the more active you red-to-green as the user gets closer to
are, the more NikeFuel you earn. their goal. The FuelBand syncs with
NIKE, Inc. President & CEO Mark the Nike+ website through a built-in
Parker unveiled NIKE+ FuelBand at USB, or wirelessly through Bluetooth
an event in New York attended by to a free iPhone app, to record
seven-time Tour de France champion activity and track progress every
Lance Armstrong, Oklahoma day. The app interface also provides
City scoring champion and all- encouragement and motivation as
star Kevin Durant and 2011 IAAF goals are achieved.
women’s 100-meter World Champion Armstrong said, “What’s great
Carmelita Jeter.
“The NIKE+ FuelBand is a way for
Nike to further evolve the exciting
about the idea of NikeFuel and the
FuelBand is the way it provides real
information and numbers to show
8
possibilities of merging the physical how much people are doing all day,
and digital worlds,” said Parker. every day. That’s what will get people
“Nike has always been about challenging themselves to do more
inspiring athletes, and the NIKE+ and better their own scores. It’s a tool
FuelBand will help motivate them in a to get people more active.”
simple, fun and intuitive way.” “NikeFuel means everyone can
Designed to be worn throughout get recognition for activities they
the day, the ergonomic, user-friendly do,” said Durant. “It provides a
NIKE+ FuelBand uses accelerometers scoreboard for your day and gets
to provide information about different everyone moving.” Jeter said, “You
activities through movement of the don’t have to be an elite athlete
wrist via a LED dot matrix display. to appreciate how NikeFuel can
Four metrics are available: Time, motivate you. It’s an easy way to get
Calories, Steps and NikeFuel. Unlike credit for activities and compare how
calorie counts, which vary based you do with others, even if you take
on someone’s gender and body part in different sports.
type, NikeFuel is a normalized score The Nike+ Fuelband will be
that awards equal points for the available for preorder starting
303
January 19th in the US at Nikestore. Internet access. Broadband is

com for a suggested retail price of recommended. Optional mobile app
$149 (US). available in the iTunes App store;
To use Nike+ FuelBand, the for updates on compatible mobile
following is needed: devices, visit Nikeplus.com
A Macintosh or PC with built-in
USB. Mac OS v 10.4 or later, Source: Nike, Inc; http://nikeinc.com/
Windows 7 or Windows Vista (SP2) or news/nike-fuelband-makes-life-a-sport#/
Windows XP (SP2) inline/6742.
New sports products

Although it might seem as if new products are easy to describe and think about,
“new” is a relative term. Think about purchasing season tickets to your favorite
college basketball team for the first time. You might consider this a new product even
though the tickets have been available for many years. In other instances consumers
may be exposed to a sport that utilizes a combination of techniques they are familiar
with to create “new” and exciting alternatives, such as Bossaball.
Bossaball combines elements of different sports on a pitch of trampolines and bouncy
inflatables. The popularity of Xtreme sports, soccer, and volleyball around the globe
suggest the time could be right for this new product. There is obviously nothing new
about volleyball, soccer, and jumping on a trampoline, but when combined they create
an exciting new sport. The founders of Bossaball will have to keep this in mind when
developing a marketing strategy for this emerging sports product. This sports product
is new to spectators and participants alike.
Web 8.1 The new sport of Bossaball combines volleyball, football, gymnastics, and
capoeira.
Source: www.Bossaballsports.com
304
Regardless of how you define “new products,” they are critical to the health of any
sports organization for two reasons. First, new products are necessary to keep up
with changing consumer trends, lifestyles, and tastes. Second, as unsuccessful
sports products are dropped from the product mix, new products must be introduced
continually to maintain business and long-term growth.
One of the key considerations for any sports organization is to continually improve the
products it offers to consumers. New products seek to satisfy the needs of a new
market, enhance the quality of an existing product, or extend the number of product
choices for current consumers. Before discussing the process for developing new
products, let us look at the different types of new sports products.

Bill Rasmussen
Bill Rasmussen is hardly a household cable television networks (ESPN,

name, but all you have to do is ESPN2, ESPN Classic, ESPNEWS,
mention four letters – ESPN – and his ESPN Deportes, ESPNU), ESPN
place in sports marketing history is HD and ESPN2 HD (high-definition
secured. ESPN’s founder developed simulcast services of ESPN and
the 24-hour sports programming ESPN2, respectively), ESPN Regional
channel in the fall of 1979. At that time, Television, ESPN International
Rasmussen was simply looking for (31 international networks
a way to broadcast the University of and syndication), ESPN Radio, ESPN.
Connecticut basketball games when he com, ESPN The Magazine, ESPN
happened upon satellite technology. Enterprises, and ESPN Zones (sports-
Today, ESPN reaches more than themed restaurants). Other new and
99 million households and has more fast-growing businesses include
than 5,100 live and/or original hours
of sports programming presented
ESPN360 (broadband), Mobile ESPN
(wireless), ESPN On Demand, ESPN
8
annually for more than 65 sports. A Interactive, and ESPN PPV. Amazingly,
second channel, ESPN2, also reaches this media giant continues to expand
over 93 million households and has with all these networks and new
more than 4,800 live and/or original products, because of Bill Rasmussen’s
hours of sports programming. ESPN2 desire to bring U Conn basketball to
also has the distinction of being the the people of Connecticut.
fastest network to ever reach 90
million viewers. Combined ESPN has Source: Richard Hoffer, “Bill Rasmussen,”
more than 50 business entities, which Sports Illustrated (September 19, 1994),
include ESPN on ABC, six domestic 121. Courtesy of Time, Inc.
Types of new products

As noted previously, there is no universally accepted definition of new products.
Instead, new products are sometimes described from the viewpoint of the sports
organization versus the consumer’s perspective. The organization’s definition of a new
product is based on whether it has ever produced or marketed this particular product
in the past. This can be important for organizations trying to understand how the new
sports product “fits” with their existing products.
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However, newness from the consumer’s perspective is described as any innovation
the consumer perceives as meaningful. In other words, the new product could
be a minor alteration of an existing product or a product that has never been sold
or marketed by any organization. Looking at new products from the consumer’s
viewpoint helps sports organizations understand the most effective way to market
the product. Let us examine the types of new products from the organizational and
consumer perspectives in greater detail.
Newness from the organization’s perspective

New-to-the-world products
Brand-new sports innovations, such as the first in-line skates, the first sailboard, or
the advent of arena football in 1987, all represent new-to-the-world products. These
products were new to the organization selling the product as well as to the consumers
purchasing or using the product.1
Another interesting, new-to-the-world sports product is the wireless ballpark. Raley
Field, home of the AAA Sacramento River Cats baseball team, has become one of
professional sports’ most technologically advanced venues. The River Cats were
among the first teams to implement wireless Internet access to customers in suites
and the exclusive “Solon Club.” The stadium is now wired for all fans who are able
to operate laptop computers, PDAs, and other wireless devices from their seats for
access to up-to-the-minute stats and replays. Additionally, fans can order food or
tickets for future games right from their seat.2
New product category entries

Sports products that are new to the organization, but not to the world, are referred
to as new product category entries. For example, IMG, a sports, entertainment,
and media company, acquired Host Communications in November of 2007. Several
months earlier IMG acquired the Collegiate Licensing Company and collectively these
two companies formed the foundation for IMG College, a division of IMG Worldwide,
which provides unparalleled expertise and resources to the collegiate market through
the use of licensing and multimedia rights services. IMG further expanded this
platform with the acquisition of ISP Sports on July 28, 2010. This acquisition made
IMG College the leading representative of colleges and universities in their efforts to
maximize their revenue through media and marketing rights deals.
New Balance, known only for its footwear, acquired Brine, Inc., a recognized
industry leader in soccer, lacrosse, field hockey, and volleyball. “Brine’s history of
manufacturing high-performance team sports products will enable us to broaden our
offerings at the global level,” said Jim Davis, chairman and CEO of New Balance.
“Brine’s motto, ‘Find Your Game,’ speaks directly to their long-standing support of
game improvement products and programs, and fits in well with New Balance’s
philosophy of promoting personal athletic achievements.”3
In another example, the athletic footwear landscape was significantly altered when
German-based manufacturer Adidas announced it would be acquiring all outstanding
shares of Reebok. Under the terms of the deal, Adidas bought Reebok for $3.8 billion
in 2006. For Adidas, the merger strengthens its presence in global athletic footwear,
apparel, and hardware markets – allowing for a more competitive vantage point, a
more defined brand identity, a wider product offering, and a stronger presence in
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professional athletics. These products are not new to the sports consumers, but they
are new acquisitions for the organizations.
Product line extensions

Product line extensions refer to new products being added to an existing product line.
For instance, the addition of expansion teams in Major League Baseball, or Daiwa’s
new Dendoh Marine Power Assist fishing reels, precision engineered with Daiwa’s
unique Power Lever for instant control of winding speed and power, are product line
extensions. The NBA D-League is also a product line extension of the original National
Basketball Association. The league is currently fielding 17 teams across the United
States and until summer 2005, was known as the National Basketball Development
League (NBDL). The NBA D-League started with eight teams in the fall of 2001.
In another example of a product line extension, New Balance footwear launched
Custom US574 in 2011. The Custom US574 puts New Balance’s best-known
and best-loved silhouettes in the hands of consumers to style the way they want.
Consumers pick the color ways and fabrics and then the shoe is shipped directly to
the consumer in 4–5 business days.
Product improvements
Product improvements refer to current products that have been modified and improved,
such as the new shoe addition to the long line of the Jordan Brand with the release of
the Air Jordan 10 “Powder Blue” retro sneaker, 20 years after the first Jordan 10s hit
shelves. According to Forbes, like all the Jordan retro releases, Powder Blue was highly
anticipated and first-day sales hit $35 million.4 For perspective, in all of 2013, Adidas sold
$40 million in the U.S. of the signature shoes of its top star, Derrick Rose. Other notable
Jordan lines include: the Jordon Melo M10 YO TH, retailing at $200 and the retro Jordan
IX Kilroy Pack, retailing at $160, and are labeled product improvements. The shoes
have a revived marketing campaign, made popular during Jordan’s first retirement. The
collection started with the Jordan namesake, followed with the Fonte Montanas, and
8
continues with its third installment of the Bentley Ellis shoes.
Another example of a product improvement is the Wilson Six.One Tour BLX tennis
racquet. This improved version of the flagship Wilson Tour 90 includes the addition
of Wilson’s new BLX treatment, which involves weaving Basalt fibers into the
composition for improved vibration resistance. Wilson claims its BLX technology
allows a smoother signal to reach the player after impact for cleaner feedback and the
‘perfect feel.’5
Any sports team or individual that improves during the off-season can be considered
a product improvement. Sometimes this improvement takes place because of trades
or purchasing new players, and other times an enhanced product is the result of a
new coach or players who are maturing and finally performing to their potential. In
either case, product improvements represent an opportunity for sports marketers to
promote the improvements (either real or perceived) in product quality.
A final example of a product improvement comes from the Chicago Cubs and their
rearranging of a few group areas at Wrigley Field to free up more room in the 97-year-
old ballpark to allow more room for fans to mingle. The organization’s proposed $500
million ballpark renovations to be completed by 2015, include: a 57,000 square foot
Jumbotron, larger home clubhouse equipped with a new weight room, medical area,
player’s lounge, batting cages, and media center, wider concourse, new restaurants
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club, improved concessions, more restrooms, enlarged and renovated skyboxes,
new plaza area for pre- and post-game festivities, new office building to house team,
stadium, and concession personnel, and lastly, a seven-story hotel with a connected
walkway.6

College sports have become too commercialized
I’d like to use this post to discuss my college athletics builds character
views on college sports, specifically and teamwork, but do you really
that college sports have become think those factors are of primary
too commercialized. Not only concern to college coaches? Schools
do I feel that college sports have hire coaches to build successful
become too commercialized, I feel programs, more or less so
this phenomenon has corrupted the schools can have the “bragging
academic integrity of colleges. Our rights” of successful teams.
nation values college athletics far Coaches usually feel pressured
more than any other nation. Other to attract the highest-quality
nations don’t even have athletics athletes and neglect their academic
affiliated with their schools; these qualifications (or lack thereof).
athletes simply compete for local This pressure for successful teams
clubs. can lead to recruiting violations or
Who is to blame for the over- even academic violations for
commercialization of college sports? cheating to keep academically
In my opinion, several parties are at incapable athletes eligible to
fault. While the media has definitely compete.
had a major effect on how important What annoys me (and probably
college athletics have become, many others) is that athletic
society has become infatuated scholarships praise people for
with cheering for these teams. One their accomplishments outside the
attractive aspect of college sports is classroom, whereas colleges should
the number of different teams retain their focus on what occurs
to cheer for, as well as the frequency inside classrooms. Another way
of competition. Colleges have in which athletes receive special
also fallen victim to the sports treatment occurs when some are
culture, especially favoring their accepted into selective colleges for
successful or revenue-producing being an athlete. If an athlete has
sports. College athletics today seem the coach put in a word with the
almost like a business, and college admissions officers that a certain
coaches will do everything in their student needs to be accepted, you
power to create a prized program can guarantee that student will be
that the university can flaunt to the accepted, even if that means rejecting
world. a few others who might be more
Colleges, after all, were created academically-qualified.
for the purpose of educating and Of course, not every student-athlete
preparing students for the future. fits the mold of “dumb jock.” Some
The NCAA (National Collegiate athletes are very capable students
Athletic Association) will tell you that and will do well in their careers after
308
graduation. However, I’m definitely want simply because they are a

not a fan of the special treatment university’s prized tokens.
athletes receive. If they are going to
be considered “student athletes,” Source: http://sites.psu.edu/
then they should be treated as swk5473sec9engl137h/2013/04/03/
such, rather than giving athletes college-sports-have-become-too-
commercialized/.
the privilege to do whatever they
Repositioning
As defined in Chapter 6, repositioning is changing the image or perception of the
sports entity in the minds of consumers in the target market. Sports products such as
bowling and billiards are trying to reposition themselves as “yuppie sports activities”
by creating trendy and upscale environments in sports facilities that are stereotypically
grungy and old-fashioned.7
Another repositioning example comes from the city of Moscow, the largest city in
Europe with no modern arena to serve the sports and entertainment community.
The city of Moscow, partnering with VTB Bank and AEG, are building a massive $1.5
billion sport and entertainment complex to serve Europe’s largest market. The arena/
stadium project will include the VTB Bank stadium with 6,750 club seats, 98 suites
and an expandable seating capacity that serves populations from 33,000–45,000. The
VTB Bank Arena will house 1,632 club seats, 82 suites and have a seating capacity of
12,000 expandable to 15,000. These sports venues are targeted to open in 2016 and
hope to be an integral part of the 2018 FIFA World Cup competition.8
The most common examples of new products are repositioning and product
improvements because of the limited risk involved from the organization’s
perspective. The rearrangement of existing sports products also has its advantages.
For example, this type of new product can be developed more quickly than new-to-
8
the-world or new product category entrants, and it already has an established track
record with consumers.
However, new-to-the-world products must undergo enhanced research and
development because they are new to the organization and to consumers. Moreover,
more money must be invested because heavy levels of promotion are necessary to
make potential consumers aware of the product. In addition, consumers must learn
about the benefits of the new product and how it can help satisfy their needs.
Newness from the consumer’s perspective

Another way to describe new products is from the perspective of consumers. New
products are categorized as discontinuous innovations, dynamically continuous
innovations, or continuous innovations.9 The new products are categorized on the
basis of the degree of behavioral change required by consumers. Behavioral changes
refer to differences in the way we use a new product, think about a new product, or
the degree of learning required to use a new product. For instance, a new extra-long
tennis racquet does not require us to change the way we play tennis or to relearn the
sport. However, extensive learning took place for many Americans exposed to soccer
for the first time in the 1994 World Cup match and the learning process continues.
Similarly, learning will have to occur for the many Americans who will watch cricket
309
or experience the growing sport of lacrosse for the first time. Let us look at the three
categories of new products from the consumer’s perspective in greater detail.
Discontinuous innovations are somewhat similar to new-to-the-world products in
that they represent the most innovative products. In fact, discontinuous innovations
are so new and original that they require major learning from the consumer’s
viewpoint and new consumption and usage patterns. Some of the “extreme sports,”
such as sky surfing, bungee jumping, and ice climbing, represented discontinuous
innovations, but are now becoming more mainstream. New “extremes” such as free
diving, hang gliding, cave diving, base jumping, wakeskiing, and kite-surfing are also
becoming popular.
Many Southerners who have had limited access to ice hockey may view this sport as
a discontinuous innovation. Interestingly, a study found that spectator knowledge of
hockey was found to be a significant predictor of game attendance and intention to
attend hockey games in the future. An equally important finding in the study was that
knowledge of hockey may vary based on sociodemographic variables. In other words,
the fan’s age, gender, educational level, income, and marital status influence the
degree of hockey knowledge.10
Even distribution patterns for sport have required new consumption and usage patterns
and therefore represent discontinuous innovation. For example, Sports Business
Journal noted that programs such as Twitter via smartphones could serve sports
properties and brands and offer a real time perspective of how people react to a game,
a deal, or a critical decision. These instantaneous feed mechanisms provide information
and even gratification for consumers searching and desiring up-to-date news.
Dynamically continuous innovations are new products that represent changes and
improvements but do not strikingly change buying and usage patterns. For instance,
the titanium head and bubble shaft on a golf club or the liquid metal technology
aluminum bat are innovations that do not change our swing, but do represent
significant improvements in equipment (and hopefully our game). When the shot-clock
and three-point field goal were added to basketball, changes took place in how the
game was played. Coaches, players, and fans were forced to understand and adopt
new strategies for basketball. Most basketball enthusiasts believe these dynamically
continuous innovations improved the sport.
The latest dynamically continuous innovations from the golf industry, which thrives
on new product development, are the mainstream acceptance of the hybrid club and
new surface geometrics of the golf ball. Many low- and high-handicap golfers are
replacing their long irons with hybrids – a half iron, half wood alternative to the difficult
to hit long irons. The innovative designs of the golf ball which include use of swirls or
grooves rather than circular dimples allow balls to fly like rockets in breezy conditions.
Software giant, SAP, has entered the next phase of its sponsorship strategy. They are
now using sponsorship and a new strategy of consumerism to put a personal touch
on their brand by using new information technology. This technology is adopted by
consumers and then spreads to business and government applications. SAP paired
up with three professional sports properties: The NBA, the NFL San Francisco 49ers,
and, more recently, MetLife Stadium, home of the NFL New York Giants and New
York Jets. SAP plans to use this technology in order to enhance the fan experience.
Examples of this include offering real-time statistics through NBA.com. This
information was not available to the public until now. This is one way SAP is using
sponsorship to introduce its brand to new customers.
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EA Sports utilize dynamically continuous innovations that enhance the XOS PlayAction
Simulator platform, EA’s engine used to drive EA’s top-selling Madden NFL 13 and
NCAA Football 13. Back in 2011, EA Sports added online scouting, online team
play and online attribute boost for co-op play to enhance functionality. Previous
dynamically continuous innovations include customizable playbooks, diagrams, and
testing sequences to better prepare athletes for specific opponents. Additionally, the
software includes built-in teaching and reporting tools so coaches can analyze and
track the tactical-skill development of their athletes. Instead of simply playing a video
game for enjoyment, an athlete can play a game to test and train for upcoming on-field
action. For example, a quarterback using the new tool can practice reading a defense,
picking up blitzes, and making quick decisions on where to throw the ball, all based on
the tendencies of the team he is going to play the upcoming weekend.
A final example of a dynamically continuous innovation comes from the world of
trading cards and technology. Upper Deck, not just a sports trading card company, but
a world-wide sport and entertainment company, has developed the Shadow Box slot
cards. For the first time ever, these interchangeable acetate cards allow collectors
the opportunity to customize their own unique trading cards. Certainly, this change
represents a new buying behavior for a product (trading cards) that has been on the
market for decades.
Continuous innovations represent an ongoing, commonplace change such as the
minor alteration of a product or the introduction of an imitation product. A continuous
innovation has the least disruptive influence on patterns of usage and consumer
behavior. In other words, consumers use the product in the same manner that they
have always used the product. Examples of continuous innovations include the
addition of expansion teams for leagues such as NBA D-League, MLB, the WNBA, or
MLS or even expanding the number of games in the season. Another example of a
continuous innovation comes to us from the world of sports video game technology.
Continuous innovations include slight improvements over time. Very little usually
changes from year-to-year in video games, e.g. Madden 2014 vs. Madden 2015. In
fact, many of these games are played much the same way that games were played in
8
editions released decades before.
We often could debate which new product category best represents a team that has
built a new arena and changed its venue or any new sports product, but few new
products fall neatly into the three categories. Rather, there is a continuum ranging
from minor innovation to major innovation, based on how consumers perceive the
new product. Knowing how consumers think and feel about a new product is critical
information in developing the most effective marketing strategy. Before we talk
more about the factors that make new products successful and spread through the
marketplace, let us look at how new products are conceived.
The new product development process

Increased competition for sports and entertainment dollars, emergence of new
technologies, and ever-changing consumer preferences are just a few of the reasons
sports marketers are constantly developing new sports products. As Higgins and
Martin point out in their research on managing sport innovations, “Clearly, the list
of innovations in sports is extensive and appears to be increasing at a rapid rate.
This would suggest that spectators are seeking new and better entertainment and
participants are seeking new and better challenges.11
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Many new sports products are conceived without much planning, or happen as a
result of chance. For instance, the modern sport of polo was created by British cavalry
officers in India who wanted to show off their horsemanship in a more creative way
than the parade ground allowed. Although polo represents a sport that was developed
by chance, this is more the exception than the rule. More often than not, sports
organizations develop new products by using a systematic approach called the new
product development process. The phases in the new product development process
include idea generation, idea screening, and analysis of the concept, developing the
sports product, test marketing, and commercialization. Let us briefly explore each
phase in the new product development process.
Idea generation
The first phase of the new product development process is idea generation. At
this initial phase, any and all ideas for new products are considered. Ideas for new
products are generated from many different sources. Employees who work in product
development teams, salespeople close to the consumers, consumers of sport, and
competitive organizations are just a few of the potential sources of ideas for new
sports products.
Naturally, a marketing-oriented sports organization will attempt to communicate with
their consumers as much as possible to determine emerging needs. As we discussed
in Chapter 3, marketing research plays a valuable role in anticipating the needs of
consumers. Moreover, environmental scanning helps sports organizations keep in
touch with changes in the marketing environment that might present opportunities for
new product development. For instance, in our opening scenario, the entrepreneurs
who established Ultimate Fighting understood that the environmental conditions
would be conducive to success.
Idea screening
Once the ideas are generated, the next step of the product development process,
idea screening, begins. During the idea screening phase, all the new product ideas
are evaluated and the poor ones are weeded out. An important consideration in the
idea screening process is to examine the “fit” of the product with the organization’s
goals and consumer demand. The concept of new product fit is consistent with the
contingency framework, which states that product decisions should consider the
external contingencies, the internal contingencies, and the strategic sports marketing
process. One formal idea screening tool for analyzing the “fit” of potential products is
the new product screening checklist (see Table 8.1).
Sports marketers using some variant of this new product screening checklist
would rate potential new product ideas on each item. As Table 8.1 indicates, a score
of less than 30 would eliminate the new product from further consideration, whereas
a score of 70 or more means the product would be further developed. Obviously,
each sports organization must design its own new product screening checklist to
meet the demands of its unique marketing environment and organization.
Analysis of the sports product concept or potential

By the third phase of the new product development process, poor ideas have been
eliminated. Now, the process continues as the firm begins to analyze potential new
products in terms of how they fit with existing products and how consumers respond
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Table 8.1 New product screening checklist
Rate the new-product concept using a 10-point scale. Score a “1” if the concept fails the question
and a “10” if it meets the criterion perfectly.
Relative advantage
Does the new product offer a cost advantage compared with substitutes?
Does the new product have a value-added feature?
Is your innovation directed at neglected segments of the marketplace?
Compatibility
Is the product compatible with corporate practices, culture, and value systems (i.e., the internal
contingencies)?
Is the new product compatible with the market’s environment (i.e., the external contingencies)?
Is the new product compatible with current products and services being offered (i.e., product mix)?
Perceived risk
Note: On the following questions absence of risk should receive a higher score.
Does the consumer perceive an economic risk if they try the new product?
Does the consumer perceive a physical risk in adopting the new product?
Does the consumer fear the new technology will not perform properly?
Does the product offer a social risk to consumers?
A bottom-line score of 100 (10 points for each question) suggests a new product winner.
For most companies, a score of 70 or better signals a “go” decision on the new product concept. A
risk-oriented company would probably consider anything that scores 50 or higher. A score of 30 or
less signifies a concept that faces many consumer obstacles.
to these new products. As new product ideas begin to take shape, marketing research
is necessary to understand consumers’ perceptions of the new product concepts.
One type of marketing research that is commonly conducted during the new product
development process is referred to as concept testing.
During concept testing, consumers representative of the target market evaluate
written, verbal, and pictorial descriptions of potential products. The objectives of
concept testing are to understand the target market’s reaction to the proposed
8
product, determine how interested the target market is in the product, and explore the
strengths and weaknesses of the proposed product. In some cases, consumers are
asked to evaluate slightly different versions of the product so that sports organizations
can design the product to meet the needs of consumers.
The most important reason for conducting a concept test is to estimate the sales
potential of the new product. Often, this is done by measuring “intent to buy” responses
from tested consumers. Using the results of concept testing, along with secondary data
such as demographic trends, sports marketers can decide whether to proceed to the
next step of the new product development process, drop the idea, or revise the product
concept and reevaluate. Table 8.2 shows a hypothetical concept test for the Beach
Soccer World Wide Tour, a new sports product that has been growing around the globe.
Developing the sports product

Based on the results of the concept test, design of the product begins in order to
conduct further testing. Ideally, if the sports organization is employing a marketing
orientation, then the product design and development stem from the consumer’s
perspective. For instance, Nike began its product design efforts for a new baseball glove
by asking 200 college and minor league baseball players what they disliked about their
current gloves. Eighteen months and $500,000 later, researchers designed a prototype
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Photo 8.1 Concept testing is used to understand consumer reactions to sports such
as white water rafting.
Table 8.2 Concept test for the Beach Soccer World Wide Tour
The sport of beach soccer is played on a 30-by-40-yard soft sand surface with five players on
each team, including the goalie. There are three periods of 12 minutes each with unlimited player
substitutions (as in hockey). In the event of a tie, the game goes into a 3-minute overtime period,
followed by sudden-death penalty kicks. Beach Soccer World Wide would feature nation against
nation (e.g., United States vs. Italy).
What is your general reaction to beach soccer?
How likely would you be to attend an event if the tour stopped in your city?
Would definitely attend
Probably would attend
Might or might not attend
Probably would not attend
Would definitely not attend
What do you like most about this concept of BSWW?
What could be done to improve the concept of BSWW?
glove that is lightweight, held together with plastic clips and wire straps, and resembles
a white foam rubber clamshell. Nike was hoping this space-age design would not be
perceived by baseball purists to be too far afield from traditional models.12 However,
consumers didn’t respond favorably and Nike was forced to discontinue the glove line.
In the case of a sporting good, a prototype usually is developed so consumers can
get an even better idea of how the product will function and look. Today’s superior
engineering technology allows manufacturers to develop more realistic prototypes
in a shorter period of time. It is common for prototypes to then be sent to select
individuals for further testing and refinement. For instance, new golf, tennis, and ski
products are routinely sent to club professionals for testing.
Another consideration in developing the sports product is making preliminary
decisions with respect to the planning phase of the strategic sports marketing
process. Potential market selection decisions (segmentation, target markets, and
positioning) are considered. Furthermore, packaging, pricing, and distribution decisions
314
are also deliberated. These basic marketing decisions are necessary to begin the next
phase of new product development – test marketing.
Test marketing
In the concept stage of new product development, consumers indicate they would be
likely to purchase the new product or service. Now that the product has been designed
and developed, it can be offered to consumers on a limited basis to determine actual
sales. Test marketing is the final gauge of the new product’s success or failure.
Test marketing allows the sports organization to determine consumer response
to the product and also provides information that may direct the entire marketing
strategy. For instance, test markets can provide valuable information on the most
effective packaging, pricing, and other forms of promotion.
The three types of test markets that may be conducted include standardized test
markets, controlled test markets, and simulated test markets.13
In standardized test markets, the product is sold through normal channels of
distribution. A controlled test market, also known as a forced-distribution test market,
uses an outside agency to secure distribution. As such, the manufacturer of a new
product does not have to worry about the acceptance and level of market support from
retailers or those carrying the product because the outside agency pays the retailer
for the test. A simulated test market uses a tightly controlled simulated retailing
environment or purchasing laboratory to determine consumer preferences for new
sports products. This type of test market may be especially important in the future as
more and more sporting goods and services are being marketed through the Internet.
Whatever type of test market is chosen, it is important to keep several things in mind.
First, test marketing delays the introduction of a new sports product and may allow
time for the competition to produce a “me-too” or imitation product, thereby negating
the test marketer’s investment in research and development. Second, costs of test
marketing must be considered. It is common for the cost of test marketing to range
from $30,000 to $300,000. Third, the results of test marketing may be misleading.
8
Consumers may be anxious to try new sports products and competition may try to
influence the sales figures of the tested product by offering heavy discounting and
promotion of their own product. Finally, test marketing presents a special challenge
for sports marketers because of the intangible nature of many sports services.
Commercialization
The final stage of new product development is commercialization, or introduction.
The decision has been made at this point to launch full-scale production (for goods)
and distribution. If care has been taken at the previous stages of new product
development, the new product will successfully meet its objectives. However, even if
a systematic approach to new product development is followed, more often than not
sports products fail. Just what is it that makes a small portion of new sports products
successful while the large majority fails? Let us look at some of the factors that
increase the chances of new product success.
New product success factors

The success of any new sports product, such as the NASCAR SpeedParks, depends
on a variety of new product success factors. First and foremost, successful products
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Table 8.3 Critical success factors for new products
Product considerations
• Trialability – Can consumers try the product before they make a purchase to reduce the risk?
• Observability – Can consumers see the benefits of the product or watch others use the product
prior to the purchase?
• Perceived complexity – Does the new product appear to be difficult to understand or use?
• Relative advantage – Does the new product seem better than existing alternatives?
• Compatibility – Is the new product consistent with consumers’ values and beliefs?
Other marketing mix considerations
• Pricing – Do consumers perceive the price to be consistent with the quality of the new product?
• Promotion – Are consumers in the target market aware of the product and do they understand
the benefits of the product?
• Distribution – Is the product being sold in the “right” places and in enough places?
Marketing environment considerations
• Competition – Are there a large number of competitors in the market?
• Consumer Tastes – Does the new product reflect a trend in society?
• Demographics – Is the new product being marketed to a segment of the population that is
growing?
Source: Courtland L. Bovee and John Thill, Marketing (New York: McGraw-Hill, 1992), 307–309.
must be high quality, create and maintain a positive and distinct brand image, and be
designed to consumer specifications. In addition to the characteristics of the product
itself, the other marketing mix elements (pricing, distribution, and promotion) play
a major role in the success of a new product. Finally, the marketing environment
also contributes to the success of a new product. A brief description of these critical
success factors is presented in Table 8.3. Let us evaluate how well the new NASCAR
SpeedParks perform on each of the critical success factors.
Based on the critical success factors in Table 8.3, would you predict that the NASCAR
SpeedParks will be profitable? The NASCAR SpeedParks would seem to perform well on
each of the product characteristics. Families can observe others enjoying the SpeedParks
and try the sports product once with limited perceived risk. The NASCAR Go-Karts are
safe and built for kids, so product complexity is low. With the NASCAR branding, the
sophisticated engineering, and the authenticity, the perceived advantage of these replica
cars should be far greater than for “just another Go-Kart.” Finally, the SpeedParks are
consistent with core values, such as safe and fun entertainment for the entire family.
In addition to the product considerations, other marketing mix considerations have also
been well thought out for the NASCAR SpeedParks. Initially, the SpeedParks will be
placed in parts of the country known for entertainment (e.g., Myrtle Beach) and the love
of NASCAR racing (e.g., Tennessee). Given the signing of Kasey Kahne, Kevin Harvick,
Bobby Labonte, and Elliot Sadler, promotion of the SpeedParks should be solid.
The marketing environment also appears to be ready for the growth of the NASCAR
SpeedParks. NASCAR is one of the fastest-growing spectator sports in the country
and has a huge and loyal fan base. Moreover, there are other Go-Kart tracks, but none
with the backing of NASCAR, so competition is limited. In summary, the NASCAR
SpeedParks seem to perform well on all the critical success factors, but only time will
tell whether this new sports product will run the victory lap.
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Product life cycle

From the time a sports product begins the new product development process to the
time it is taken off the market, it passes through a series of stages known as the
product life cycle (PLC). The product life cycle was first introduced by Theodore
Levitt in 1965 in a Harvard Business Review article, titled “Exploit the Product Life
Cycle.”14 The four distinct stages of the PLC are called introduction, growth, maturity,
and decline. As shown in Figure 8.1, the traditional PLC was originally developed by
marketers to illustrate how the sales and profits of goods vary over time. However,
other sports products, such as athletes, teams, leagues, and events, pass through
four distinct phases over time. The sport product life cycle often differs from the
traditional because it affords sport organizations the opportunity for off-season
enhancement. Companies like Dell Computer do not have an off-season to further
enhance or develop their product. This unique time lapse provides sport marketers the
opportunity to modify strategies to enhance the life cycle of the product. Regardless
of the nature of the sports product, the PLC is a useful tool for developing marketing
strategy and then revising this strategy as a product moves through its own unique
life cycle. Authors Rick Burton and Dennis Howard used the product life cycle as a
tool to assess the current state of big league sports. Their conclusion was that all four
big league sports (baseball, hockey, basketball, and football) have reached either late
maturity or decline. The authors speculate that part of the reason for this decline is
that professional sports leagues have experienced “player strikes (MLB, August 1994;
NHL, October 1994, September 2004 and 2012), player lockout (NBA, July 1994,
1998, 2011; NFL, March 2011), player free agency and salary demands (all leagues,
all the time), various player arrests, rising ticket prices (an annual custom), stadium
referendums, franchise movement, and constant legal wrangling.” The authors also
point out that each league should examine its current position in the marketplace
and be prepared to adjust its marketing strategy based on the phase of the product
Introduction Growth Maturity Decline

8
Total industry sales
Dollars
Total industry profits
Time
Figure 8.1 Product life cycle

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life cycle. As expressed in the article, “despite all the hype and rhetoric, a case
can be made that professional sports leagues are marketable brands that require
sophisticated marketing plans and an understanding of how the product is perceived,
received, and purchased. If a brand is in late maturity or the earliest phases of decline,
then new uses, new product features, or new markets must be developed.”15
The water bike is an excellent example of a sports product whose life cycle mirrors
the shape of the conventional PLC. The water bike, or personal watercraft, had its
first commercially successful introduction in the early 1970s. It had tremendous
growth in the early 1990s. Sales of water bikes reached their peak in 1995 with
200,000 units sold. However, since then unit sales have been steadily decreasing.
It was not until 2012 that personal watercraft sales had a significant year-over-year
increase, with growth of 10 percent. This was after plateauing at a 10 percent year-
over-year decline in the 2011 season.16 Industry insiders want to believe the water
bike is in the maturity phase of the PLC and sales have merely reached their plateau.
Others, however, contend the industry has developed an image problem because of
the safety and pollution issues associated with the activity. In this case, water bike
brands such as Jet Ski and Sea-Doo may need to find ways to extend the life of their
products. Makers of personal watercraft have long been committed to changing the
product to be more environmentally friendly, quieter, and safer.
Before we explore the four phases of the PLC, keep several important factors in
mind. First, the PLC originally was developed to describe product categories, such
as water bikes or baseball gloves, rather than specific brands, such as Sea-Doo or
Mizuno. Second, the product life cycle was designed to monitor the industry sales
and profitability of goods rather than services. Third, the traditional shape and length
of the product life cycle is generalized. In other words, it is assumed to look the same
Photo 8.2 Extending the product life cycle of the waterbike

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for all products. In reality, the length of the PLC varies for each sports product. Some
products die quickly, some seem to last forever, and others die and are then reborn.
Collectively, these items as well as the opportunity for off-season enhancement
require sport marketers to carefully consider the unique PLC of each of their products
on the market. Let us now explore how the PLC can be used for decision making in
the strategic sports marketing process.
Introduction
When a new sports productt first enters the marketplace, the introduction phase of
the PLC is initiated. New leagues such as the Women’s Football Alliance and the
National Women’s Hockey League are excellent examples of sports products being
introduced. Another sport product in the introductory phase is Zoombang protective
gear.17 It fits like a compression shirt and incorporates shock-absorbing padding that
minimizes the harshest hits, yet does not in the least diminish flexibility and reach.
The padding uses the most advanced material available which dissipates more energy
than foams and gels by up to 80 percent while being 40 percent lighter. Zoombang
is also available in a variety of sports, including skateboarding and snowboarding and
makes products for industrial and military applications too. Already worn by NFL and
NHL players, Zoombang is available in the form of padded shirts and girdles, knee and
elbow pads, and hand and foot protection.
The broad marketing goal of the first phase of the PLC for any sport product is to
generate awareness and stimulate trial among those consumers who are willing to try
new products. Typically, profits are low because of the high start-up costs associated
with getting the product ready to market.
During the introduction phase, pricing of the sports product is determined largely by
the type of image that has been determined in the positioning strategy. Generally,
one of two broad pricing alternatives is usually chosen during the introduction of
the product. If the product strategy is to gain widespread consumer trial and market
share, a lower price is set. This low pricing strategy is termed penetration pricing.
8
However, a higher priced skimming strategy is sometimes preferred. The advantages
of skimming include recouping the early marketing investment and production costs,
as well as reinforcing the superior quality usually associated with higher prices.
Distribution of the new product is also highly dependent on the nature of the product.
Usually, however, distribution is limited to fewer outlets. That is, there are a small
number of places to purchase the product. Incentives are necessary to push the
product from the manufacturer to the consumer. Promotion activity is high during the
product’s introduction to encourage consumers to try the new product. In addition,
promotion is designed to provide the consumers with information about the new
product and to provide a purchase incentive.
Growth
Sales are usually slow as the new product is introduced. With the onset of the
growth stage, sales of the product increase. In fact, a rapid increase in sales is the
primary characteristic of the growth stage of the PLC. Because industry sales are
growing, the broad marketing goal is to build consumer preference for your product
and continue to extend the product line. Although competition is usually nonexistent
or very weak at introduction, more competitors emerge during the growth phase.
Promotion must stress the benefits of your brand over competitive brands.
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For example, the sport of lacrosse is currently in the growth stage in the U.S. market.
Ten years ago lacrosse was played only in select East Coast cities and considered a
sport for prep schools only. For the last decade, according to the SFIA and the U.S.
Lacrosse Participation Survey, lacrosse has been one of the fastest-growing team
sports in the country. U.S. Lacrosse chapters have been established in 42 states
and nearly 819,000 people played on organized teams in 2013 compared to just over
250,000 in 2001. Overall lacrosse achieved a total 7.1 percent year-over-year (YOY)
increase and a 12.4 percent YOY increase in casual participation. Youth lacrosse is the
fastest-growing segment of the sport with nearly 30,000 additional players picking up
the sport last year. Over 54 percent of all lacrosse participants are under 18 years of
age.18
Another sport product in the growth phase is the Fatheads wall graphics. Fatheads
are “sport posters,” approximately 6 feet tall by 3 feet wide, printed on thick, high-
grade vinyl with a low-tack adhesive that sticks to almost any wall. Additionally, unlike
posters of old, Fatheads can be moved from place to place with no loss of adhesion or
damage to the wall. These big, bold, colorful graphics illustrate a 3-D look and appear
as if the image is jumping off the wall. A variety of sport and entertainment options,
e.g., NFL, NBA, NASCAR, and Disney, are available for purchase. For example, a
LeBron James REAL BIG FATHEAD has dimensions of 3’11”W × 6’5”H.
Another example of a sport product in the growth phase, where more and more
competitors are starting to enter the market, is distance measurement devices in golf.
The external, environmental factors are ripe for this product’s continued growth as the
technology develops and golf’s governing bodies recognize distance measurement
devices as part of the game. “With the recent USGA and R&A rulings that have made
GPS distance measurement devices allowable for the game of golf, handheld GPS
currently represents one of the fastest growing product sales segments in the golf
business,” said Scott Lambrecht, CEO of GolfLogix, Inc.19
During the growth stage, product differentiation occurs by making minor changes
or modifications in the product or service. A premium is placed on gaining more
widespread distribution of the product. Manufacturers must secure outlets and
distributors at this early phase of the PLC so the product is readily available. Finally,
the prices during the growth phase are sometimes reduced in response to a growing
number of competitors or held artificially high to enhance perceived quality. Let us
look at some of the strategic decisions discussed thus far in the context of the growth
of the fantasy sports industry.
FANTASY SPORTS BECOMING BIG BUSINESS AS

POPULARITY CONTINUES TO RISE
Former poker pro Taylor Caby knows long fantasy sports competition that
when to place a bet. allows users to wager up to $200 on
Seeing an opportunity to invest in an daily drafts and leagues.
industry generating close to a billion “The casual sports fans who maybe
dollars annually, the 28-year-old don’t want to watch a game every
online entrepreneur pushed a bulky single night or [aren’t] interested
stack of chips toward the center of in managing a team for an entire
the table and created DraftDay.com, season, fantasy sports really aren’t
an alternative to traditional season- for them at this point,” Caby says.
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DraftDay is just one of hundreds Bruins. “Looking back at that it seems

of online startups trying to bring ridiculous that we went through all
more consumers to the fantasy that, because now all you need to do
sports conversation and, ultimately, is just go online and [set] your roster
the marketplace. The Chicago- and everything’s done for you.”
based gaming website, launched The convenience of an online
last September three weeks into the platform finally helped Michael
National Football League season, convince his wife and high school
now hosts more than 10,000 users. sweetheart, Kristin, a technology
Fantasy sports participation surged publicist and fellow Bruins enthusiast,
more than 60 percent since 2007, and to join one of his 10-team fantasy
more than 32 million people aged 12 hockey leagues two years ago. “For
and older play in the United States me, it was a way to deal with the fact
and Canada, research conducted by that hockey is always on my TV. My
Ipsos Public Affairs for the Fantasy husband will literally watch any game
Sports Trade Association in the past that’s on TV,” says Kristin, 30, who
year showed. was surprised by the intuitiveness of
The pastime has become a lucrative the fantasy sports tools on Yahoo.
pop-culture preoccupation since an com, the host for their league. “If
estimated 2 million people competed I was going to be forced to watch
before the Internet went mainstream, hockey almost everyday during the
says Paul Charcian, who has served hockey season, I wanted to at least
as FSTA president for three years. have some fake vested interest in the
“A lot of the growth has been game,” she says.
driven by the Internet and the After becoming so frustrated
simplification that the Internet offers with her fantasy team’s lackluster
to fantasy play,” he says. production she gave up about halfway
Online revolution
A worldwide network of computers
made it possible to automatically
through the season last year, Kristin
was holding down the sixth and
final playoff spot this season while
8
aggregate sports statistics and Michael, who says he usually finishes
instantaneously distribute them in the top four, was in third place.
around the globe. The Internet had Yahoo is one of three fantasy sports
finally eliminated the frustration hosts that dominate the industry
players such as Michael Grages in terms of number of users; and
encountered on a regular although hosts do not disclose the
basis. Michael and some of his number of people who play on their
Londonderry, N.H., high school websites, Yahoo is widely believed
buddies began running a fantasy to have the most traffic, more than
hockey league in 1997. CBSSports.com and ESPN.com.
“We would have to get together With so few operators carrying
every Sunday night and spend hours such a disproportionately large
pouring over all the box scores and share of users, gaining access
everything in USA TODAY from the to meaningful audiences can be
whole week, so that we could update challenging for online software
every team’s stats and try to keep up developers such as Ziguana.com. The
with it,” says Michael, 32, who works website tailors automated analyses
in financial services in Manchester, of online rosters to each fantasy
N.H., and avidly follows the Boston league’s custom settings, saving
321
time spent creating spreadsheets sharing their tools and games on the
and browsing third-party player company’s fantasy platform.
rankings. Monetizing content
“I think that’s the hardest part of “The Internet has helped everyone
any young company or developer, get more information. It’s also made it
is trying to get noticed and trying tough for people to build applications
to reach the market,” says Cassidy because there’s an expectation for
Morris, who created the company them to be free,” says Bo Moon,
in 2006 with the help of his brother who in 2010 co-founded Bloomberg
and two college friends. The team Sports, a division of financial-
has redesigned its product in the last information giant Bloomberg LP, and
few years to try to take advantage now serves as head of the group’s
of more business opportunities with product sales and business.
league operators, Morris says. Moon had been creating programs
Fantasy sports hosts must decide to help customers make informed
whether to share data about their financial decisions when he realized
operating environments and an opportunity for Bloomberg to
expose their application program leverage its analytics in sports as
interfaces, or APIs, to outside he languished in the cellar of his
software developers such as Ziguana. fantasy basketball league. “I was
Program designers who have access the commissioner of the league and
to a website’s API can create apps being in last place for two years in a
compatible with the host’s operating row was becoming too embarrassing.
environment, ensuring optimal I was bemoaning the fact that we
performance. didn’t have tools to help me play
“[League operators] can either better, and yet everyday I was
close it off and try to do all the working on tools to help people trade
development themselves, which puts better,” he says.
a lot of pressure on their internal Bloomberg Sports now assists
development teams to continue to 24 of 30 Major League Baseball
advance the ball, or they can open it clubs with personnel evaluation and
up and try to foster innovation and game preparation, Moon says. The
then leverage their position as kind same technology the company uses
of the gate keeper, so to speak, of to serve MLB clubs also powers
the audience and take a toll or collect Bloomberg Sports Front Office 2012,
a fee,” says Scott Frederick, COO of a comprehensive fantasy baseball
StatSheet.com, an automated online app that advises players as they draft
fantasy sports publishing network. and manage their teams.
“People realize if they expose their “Our understanding of the market
data via APIs that they can help foster is that people do have an expectation
innovation, and that helps their own for free [content],” Moon says,
ecosystem,” he says. “but if they see value in the tool,
Yahoo opened its domain to they definitely will pay for a more
external app developers in 2008 as complete experience.” The software
part of its Yahoo Open Strategy. But sells for $19.99 in App Central on the
it’s free to manage fantasy sports CBS online fantasy games platform,
leagues on Yahoo and use many which CBS opened to third-party
of the website’s features, meaning developers in January and which is
developers don’t profit much from being heralded as a “brilliant” way to
322
serve the interests of fantasy games MacLean says. “We purposely made
operators, their users and outside that a really low barrier to entry
developers in a rapidly evolving because we want everyone to have
business. an opportunity to get in and bring all
“What it’s going to do is offer of their innovative ideas and products
ample opportunity for people to to bear,” she says.
be able to change the industry Baseball Boyfriend, a fantasy
and create a lot of innovation that baseball app CBS has offered on its
ultimately will benefit the users of fantasy sports website for $2.99 since
fantasy games and products,” says early February, is an apt illustration.
Danielle MacLean, CBSSports.com Created by the husband and wife
director of fantasy products. “We’ve team of Frank and Missy Panko, the
created a full, robust ecosystem.” game allows users to draft an MLB
External software developers player as their “boyfriend” and “date”
can create league-specific apps him for as long as they wish during
and market them to the company’s the season. The “girlfriend” who has
relatively affluent audience. Sixty the most total points at the end wins.
percent of fantasy users pay to play The product inspired online
on its website, CBS says. “We really scrutiny. Henry Schulman of the San
offer customization options that go Francisco Chronicle wrote a blog
well beyond some of the standard post titled, “A fantasy baseball game
items that are available from the free for girls who happen to live in the
providers,” MacLean says. 1950s.” But the quirky yet creative
The open CBS online fantasy app gained popularity quickly, a
platform gives everyone who has testament to the power of an open
an original idea the means to access API policy.
millions of users and the potential to Each initial partner with CBS
profit from it along with CBS, says
FSTA’s Charcian. “It’s brilliant for
CBS because they’ll monetize the
developed fantasy baseball products
for its new platform.
Ziguana Auto-Pilot ($9.99)
8
apps and start building a very strong automatically manages daily fantasy
fantasy platform,” he says. “I think baseball lineups based on a detailed
CBS is extremely shrewd to do this statistical analysis of the day’s
first, and if I were running Yahoo or matchups; ensuring savvy rosters
ESPN, I would be working very hard are set everyday. The company’s
on developing a similar platform.” Forecaster app ($9.99) projects a
Outside program developers share fantasy baseball team’s stats for the
revenues made from their apps’ sales entire season based on its current
with CBS on a 70/30 split, the same roster, and recommends players who
divvies carved out for Apple and its improve the team’s odds of winning.
partners in the iTunes store. “I think we were a good fit [with
CBS launched its online fantasy CBS] because we have a product that
platform with six companies – we’ve proven has a dedicated fan
Advanced Sports Media, Bloomberg base and offers something I think
Sports, MLB.com, RotoWire.com, a lot of people find valuable,” co-
StatSheet and Ziguana. The league founder Morris says.
operator now has more than 500 StatSmack by Statsheet ($1.99)
developers signed up, which is as makes “trash talk quantitative” by
easy as registering for the website, providing “the numbers to back it
323
up” in a “fun, snarky, interactive are happy to figure out ways to do

way,” says COO Frederick. “It’s business with them,” he says.
a great application because most Legal challenges
fantasy players are playing against The industry beloved by its
people they know very well. They entrepreneurs as much as the fans
love to trash talk and they love to who spend countless hours playing
have statistics to back it up,” he says. its games and using its tools was
RotoWire.com Fantasy Player nearly crippled before it could stand.
News ($9.99) offers the website’s Major professional sports leagues
award-winning fantasy baseball news weren’t sure what to make of fantasy
to CBS players. RotoWire Player sports 15 years ago and, as a result,
Outlooks ($1.99) provides in-depth belittled or condemned the pastime.
analysis on more than 1,800 baseball “Then about 10 years ago the
players with details about skills, NFL did some studies and figured
injury history and expected team out that fantasy fans were actually
roles. The company benefits from their best consumers,” Schoenke
having been around years before says. The league’s research revealed
many of its peers and, as a result, fantasy participants attended more
already partners with the three big games, watched more television and
hosts as well as NFL.com, says Peter purchased more merchandise, he
Schoenke, RotoWire president. says.
“One of the hardest parts of FSTA research has reached similar
the business, especially for new conclusions, says Charcian, the
companies, is getting access to group’s president. “Fantasy players
customers and marketing, and [the are generally open to spending
CBS open fantasy platform] is a great money. The vast majority of them
way to do it. You can build an app don’t play in just free-only leagues,”
from day one and get exposure to he says. “We’ve done a number of
millions of customers,” he says. studies that show fantasy players are
Schoenke launched the company as big spenders.”
RotoNews.com in 1997 but sold it in The industry’s use of free player
1999 to a dot-com darling, Broadband profiles and statistics for profit was
Sports, who promised riches once examined in federal court when St.
the company went public. After Louis-based CBC Distribution and
that bubble burst when Broadband Marketing Inc. filed a lawsuit against
Sports declared bankruptcy in 2001, MLB Advanced Media, the league’s
Schoenke reacquired the company Internet wing, after the MLB Players
and changed the name to RotoWire. Association denied CBC a new
com, where success allowed him to licensing agreement.
quit his “day job” as a commodities CBC, like many other online fantasy
reporter for Dow Jones. sports leagues, had a licensing deal
“Most of the people got into the with the MLBPA from 1995 through
industry because they like playing the 2004 season and paid 9 percent
fantasy sports as opposed to trying gross royalties to the association. But
to make money--although people when MLB began making exclusive
want to make money,” Schoenke licensing agreements on player
says. “That usually makes it easier to profiles and statistics in the fantasy
do deals. The best products usually sports marketplace after its own $50
win out, and the bigger companies million with the MLBPA, CBC and
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other smaller online fantasy sports and paying entry fees for fantasy
businesses were cut out of the deals. sports leagues remains contentious.
The ruling by the U.S. District Court The UIGEA says fantasy sports are
in St. Louis gave fantasy leagues and different because they have outcomes
app developers the right to use player that reflect the relative knowledge
names and statistics without licensing of participants, not chance. But any
agreements because the information prizes won from fantasy games
can be found in everyday news media must be determined in advance of
and, thus, is not the intellectual competition and can’t be influenced
property of MLB. “Once that cleared by fees or the number of players;
out, that really opened up the flood otherwise, they’re considered
gates for people and companies to get gambling and illegal.
involved,” RotoWire’s Schoenke says. “Fantasy is clearly a game of skill,”
Had the ruling gone in favor of the Charcian says. “It would be virtually
MLBPA, people who wanted to play impossible to win a fantasy league
fantasy sports online would have if you didn’t watch the games, [and]
had their options limited to the major you didn’t pay attention and you just
sports leagues’ websites, FSTA’s randomly set your lineup.”
Charcian says. DraftDay’s Caby, who started
“It would’ve completely destroyed playing online poker in his early 20s,
innovation in our industry and it isn’t so sure about the boundaries
would’ve monopolized our entire lawmakers regulating gambling
industry around the leagues,” he have made among online gaming
says. “The entire way that we enjoy operations. “I’ve made a living for
fantasy sports now could have very years playing poker, and it wasn’t by
likely been undermined almost accident--it was because I was good
entirely, had the rulings in that case at it,” he says. “It’s really the same
not at least gone in favor of the
fantasy sports industry.”
Charcian and his colleagues didn’t
in poker that it is in fantasy sports,
it’s just that the laws at this point are
favorable to fantasy sports.”
8
have much time to celebrate, though. Some states, however, still don’t
Another legal hurdle sprung up allow their residents to collect
during the summer of 2006, when a cash and other prizes won from
New Jersey plaintiff claimed online participating in online fantasy sports
league registration fees paid by some despite federal impunity granted by
fantasy sports participants constituted the UIGEA.
wagers or bets, and should be In 2010, Louisiana State Rep.
reimbursed pursuant to the state’s Thomas Carmody pushed a bill to
gambling loss-recovery statutes. exempt certain fantasy games from
The U.S. District Court in Newark the state’s anti-gambling laws, but
ruled pay-to-play fantasy sports the measure failed, 73–16, in a vote in
leagues are not illegal, confirming the the state’s House of Representatives.
activity’s exemption in the Unlawful Maryland delegate John Olszewski Jr.
Internet Gambling Enforcement Act, introduced legislation in January for
which regulates online gambling and a third time to try to exempt fantasy
became law in 2006. sports from the state’s gambling
The distinction between placing regulations.
wagers in online games such as “A lot of legislators, a lot of people
Texas Hold ’em poker, for example, at the state level, just don’t even
325
really know what fantasy sports The mobile space isn’t “quite
are. Every study shows it’s different there” because even fantasy sports
from gambling,” says RotoWire’s hosts don’t have worthwhile apps
Schoenke, who is chairman of the to change lineups let alone draft
FSTA legal committee. teams, says RotoWire’s Schoenke,
The FSTA launched a political who thinks the industry will “get
action committee and hired a lobbyist there pretty quickly, though,” with
in October to protect the financial the opening of the CBS online fantasy
interests of fantasy sports companies games platform. “We’re trying to
and to advocate on behalf of the be the company that’s the leader in
industry in nine U.S. states that still the mobile space for fantasy sports
haven’t differentiated the activity information,” he says. RotoWire’s
from gambling, he says. fantasy baseball draft kit for the
“Our goal there is to make sure the iPhone and iPad platforms is one of
same victories we’ve had showing the top-selling sports apps, he says.
that fantasy sports are legal apply to The same factors driving consumer
the state level because some states appetite for smartphones and tablets
have murky laws about the legality could transform the fantasy sports
of fantasy sports,” says Schoenke, business.
who lauded the leadership of the “With mobile technology, there’s
FSTA in organizing a winning case a transition toward shorter-form
in CBC Distribution v. MLB (2006), an games. The whole nature of mobile is
effort that saved a thriving industry limited or short-term engagement,”
just now starting to tap the unlimited says Bloomberg’s Moon, who thinks
possibilities of technological traditional season-long competition
innovation. might be reaching a plateau. “I think
The future is mobile people will transition to playing more
“We’re at this point in time where short-term games, and when that
the technology really hasn’t evolved happens, you will see growth,” he
much since it first became really says.
popular on the Internet,” says Caby aims to cultivate the
Caby, who sees opportunities for potentially strong demand for
DraftDay to address the industry’s “niche” games and help DraftDay
shortcomings as the popularity of “bring fantasy sports into the
smartphones and tablets rises. “Most more modern era of the Internet”
of the fantasy sites out there have by valuing player feedback and
either nonexistent or pretty weak continually improving the company’s
mobile platforms, ourselves included product.
at this point,” he says. “What I think you’re going to see
Fantasy sports websites have tried over the next few years is sites that
to take their traditional content and really focus on user experience
“cram” it down to a smaller screen and providing a great modernized
instead of tailoring their products to platform will do well,” he says.
each device, StatSheet’s Frederick
says. “[People] inherently interact Source: Article author: Kyle Clapham;
with those devices differently, so the http://news.medill.northwestern.edu/
experience should be different [on chicago/news.aspx?id=205473. Credit:
Courtesy Kyle Clapham.
each one],” he says.
326
Maturity
Eventually, industry sales begin to stabilize as fewer numbers of new consumers
enter the saturated market. As such, the level of competition increases as a greater
number of organizations compete for a limited or stable number of consumers. The
primary marketing objective at maturity is to maintain whatever advantages were
captured in growth and offer a greater number of promotions to encourage repeat
purchases. Brand strategy shifts from “try me” to “buy one more than you used to.”
Unfortunately, profitability is also lessened because of the need to reduce prices and
offer incentives.
If attempts to maintain sales and market share are unsuccessful in the maturity stage,
an organization may try several alternative strategies to extend the PLC before the
product begins to decline and eventually die.
One household sport product in the maturity to decline phase of the product life cycle
is AstroTurf. In order to extend this dying brand GeneralSports Venue, which recently
acquired the rights to the AstroTurf brand, will announce its “re-launch” with a new
celebrity spokesman, former pro football quarterback Archie Manning. AstroTurf was
the first synthetic turf used on a sports field when it was installed in the Houston
Astrodome in 1966. But the product fell on hard times as rivals made technological
advances. GeneralSports plans to spend “several million dollars” over the next few
years to promote what it boasts is new-and-improved AstroTurf.20
Another excellent illustration of a sport that realized it was rapidly moving toward
extinction, decided to take corrective action, and developed and implemented new
marketing strategies, is badminton. Table 8.4 provides additional suggestions for
sports marketers who want to extend the PLC.
Table 8.4 Extending the product life cycle
• Develop new uses for products.

• Develop new product features and refinements (line extensions). 8
• Increase the existing market.
• Develop new markets.
• Change marketing mix (e.g., new or more promotion, new or more distribution, and increase or
decrease price).
• Link product to a trend.
Source: Joel Evans and Barry Berman, Marketing, 6th ed. (New York: Macmillan, 1992), 439.
JOHN MCENROE’S BOLD MOVE TO REVIVE US TENNIS

Kudos to John McEnroe for taking displayed on the tennis courts is
a very bold step to revive American matched by his commitment to
tennis. He recently opened a $18 bring the US back to its rightful
million dollar, 20 court tennis facility place of prominence in the sport. His
on Randall’s Island in New York. passion for this country and tennis is
The most successful player in US unquestionable.
Davis Cup history was always ready Unlike many who talk a good game
and willing to represent his country and do nothing, McEnroe has put his
in Davis Cup play. The passion he money where his mouth is.
327
I share his long standing frustration brainer. However, internal politics

to get the USTA, (the governing and unwise financial deals may be a
body of tennis in the US by an act stumbling block. An article in the New
of congress) to construct and put York Times (Nov. 24, 2009) revealed
into effect a well thought out and that the USTA paid former Chief
systematic agenda to bring the Executive of Professional Tennis, Arlen
United States back into the forefront Kantarian more that $9 million in 2008.
of Tennis and develop the next The USTA Player Development
generation of players to carry on the Program has undergone many
great tradition of American tennis. transformations over the years while
With the exception of Venus having very little to show for players
and Serena Williams and developed and money spent.
perhaps Andy Roddick and James A few years ago as National
Blake the US program has fallen on President of the American Tennis
hard times. Association I had the opportunity
Where are the current counterparts to be a member of the USTA Plan
to past top players such as Pete for Growth Steering Committee.
Sampras, Andre Agassi, Jim Courier, The organization had committed
Jimmy Connors and Arthur Ashe? to spending $35 million to grow
There is no question that the USTA the game. I was the only African
has the resources and money for this. American on the committee of about
When I last checked Donald Young, 18 that included tennis legend Billie
a 21 year old African American Jean King.
who had a sensational junior tennis I offered that the growth of the
record, has been relegated to playing game lies in the urban inner city
on the pro satellite tour. What ever areas of the country. This is where
happened to Lavar Harper Griffith, the majority of the population lives.
another African American player from My comments were ignored. This
few years ago who showed promise? remains true today. This is not rocket
When I checked, he was relegated science.
to being a practice player of the US Maybe that is the problem with
Davis Cup team. the USTA hierarchy it makes to
It will be interesting to see if the much sense. Let’s hope that the
USTA will find a way to partner current situation and John McEnroe’s
with John McEnroe on this project. bold initiative move wakes up the
His younger brother Patrick is the establishment.
USTA’s General Manager of Player Let’s not forget that the issue of
Development. racial diversity is an open sore in
It is a precarious situation, John as the organization that continues to be
the outspoken innovator and Patrick an issue. Racial exclusion is a well
as the company man. In a resent documented fact in the USTA’s past.
article in Sports Illustrated (May 31, History was made with the
2010), when asked if he hoped to election of the first African American
work with Patrick he said, “He hasn’t President, but many areas of society
called to congratulate me. I don’t still lag behind in leveling the playing
know what that means.” field. Shortly after being appointed
With an annual operating budget to his position as General Manager
exceeding $200 million and top notch of Men’s Tennis for the USTA, Patrick
training facilities, it should be a no McEnroe fired Rodney Harmon, an
328
African American and long time out of court. Leslie Allen, a former
employee who held past positions tour pro player and Magna Cum
as Director of Men’s Tennis, Olympic Laude graduate of USC, was let go
Men’s Tennis Coach, and Director of as Fed Cup Chair. USTA’s first Chief
Minority Participation. Diversity Officer, Karlyn Lothery left
For an organization that is trying after two years on the job. Not only
live down a past history of racial does the organization have a major
discrimination the record is not problem with player development
promising. but racial diversity continues to be a
Zina Garrison was fired as Fed black eye throughout the program.
Cup Captain and filed a racial
discrimination suit against the USTA Source: Article author: Bernard A.
that was settled out of court. Cecil Chavis. Rightsholder: Bleacher Report;
Holland and Sande French, two http://bleacherreport.com/articles/406753-
john-mcenroes-bold-move-to-revive-us-
high quality tennis officials, filed a
tennis.
racial discrimination suit and settled
Decline
The marketing goals for the decline stage of the PLC are difficult to pinpoint because
decisions must be made regarding what to do with a failing product. These decisions
are based largely on the competition and how the sports organization chooses to react
to the competition.
The distinctive characteristic of the decline phase of the PLC is that sales are steadily
diminishing. Several alternative strategies might be considered during the decline phase.
One alternative is referred to as deletion. As the name implies, the product is dropped
from the organization’s product mix. A second alternative, harvesting (or milking), is
when the organization retains the sports product but offers little or no marketing support.
A final alternative is simply maintaining the product at its current level of marketing
8
support in the hope that competitors will withdraw from a market that is already in decline.
Other life cycle considerations

The PLC, although an excellent tool for strategic decision making, is not without
limitations. These limitations include generalizing the length of the PLC, applying the
PLC to broad product categories only, and using the PLC to analyze “pure” sporting
goods only. Each of these potential weaknesses of the PLC model is discussed below.
Length and shape of the PLC

Figure 8.1 depicted the traditional length and shape of the PLC. However, each
product life cycle has its own unique shape and unique length, depending on the
product under consideration and the nature of the marketing environment. Several
variants of the typical PLC length, including the fad PLC, the classic PLC, and the
seasonal PLC are shown in Figure 8.2.
Fad
The fad PLC (Figure 8.2a) is characterized by accelerated sales and accelerated
acceptance of the product followed by decline stages. Often, sports marketers
329
(a) Fad (b) Boom or Classic
Sales Sales
Time Time
(c) Seasonal or Fashion
Sales
Time
Figure 8.2 Selected product life cycle patterns
realize their products will be novelty items that get into the market, make a profit,
and then quickly exit. These one-time, short-term offerings would follow the volatile
fad cycle. The ABA red, white, and blue basketball followed the fad cycle, as do
many products in the golf equipment industry. Other examples of a fad cycle include
the bobblehead doll as a sports promotion and retro look jerseys and sports apparel.
Fitness and fads seem to go hand in hand. While some exercise routines and
machines have endured the test of time to become classics, others come and go in
a flash.
High-impact aerobics might have been the first of the more modern fitness fads
in the 1970s, followed by the cardio-fitness movement of the 1980s. Then came
the incorporation of strength training into workouts, and more recent fads include
the indoor cycling program called “spinning” and cardio-kickboxing. The latest and
greatest exercise fad links the mind and body in routines such as P90X, yoga, and tai
chi. Who knows what the next fad might bring?
Classic
Another variation of the PLC is characterized by a continuous stage of maturity
(Figure 8.2b). Season tickets for the Green Bay Packers, Frisbees, baseball gloves and
bats, tennis balls, and hockey sticks all represent other examples of the PLC known as
the classic.
330
Seasonal
The seasonal life cycle is found in most sports where the sales of sports products
rise and fall with the opening and closing day of the season. To combat the seasonal
life cycle, some sports have adopted year-round scheduling. Most auto racing series
are run on an 8- to 10-month schedule, giving sponsors almost year-round coverage.
Professional tennis has also adopted a continual schedule, but this may not be the
best thing for the sport.
When asked what he would do to cure the ills of tennis, former star and current TV
analyst John McEnroe did not hesitate before responding, “I would cut the amount of
events. Now, there are too many tournaments, so people don’t have any idea about
what’s really important. I would make a schedule that would be like the baseball or
basketball season, so we wouldn’t go 12 months a year.”21Somewhat surprisingly, the
NBA used the “less-is-more” strategy more than 20 years ago, when the league was
plummeting in popularity. David Stern, then a rookie commissioner, significantly cut
the number of televised games to increase long-term interest in the sport.
The fad, classic, and seasonal life cycles are three common variants of the traditional
PLC. Other products, however, seem to defy all life cycle shapes and lengths.
Consider skateboarding. Since its inception in the 1950s skateboarding has been a
fad in nearly every decade. Now, skateboarding seems to be here to stay, according
to the National Sporting Goods Association (NSGA). Skateboarding posted an
unbelievable growth rate in participation for youth ages seven to 17 from 1995 to
2010. Over that 15-year period, skateboarding has experienced 160 percent growth in
total participation and a 213 percent increase in frequent participation and was second
only to snowboarding, in terms of percentage growth, which experienced 160 percent
growth in total participation and a 257 percent increase in frequent participation.22
The level of product

Another consideration for developing marketing strategy based on the PLC is the
level of the product. Historically, the PLC was based on total industry sales for an
8
entire product category, such as basketball shoes, bowling balls, mountain bikes, or
golf clubs. Although examining the PLC by category is useful, it is also necessary to
understand the PLC by product form and product brand.
Product form refers to product variations within the category. For example, titanium
woods, metal woods, and “wood” woods represent three variations in product form
in the golf club product category. The potential marketing strategies for each of these
product forms differ by the stage of the PLC. The titanium woods are in the growth
stage, metal woods are in maturity, and traditional woods are near extinction.
In addition to looking at the product category and form, it is also beneficial to examine
various brands. Within the titanium wood form, there are a variety of individual brands,
such as Titleist 910 D2 and D3, Ping G10, and Nike’s SQ MachSpeed Drive. Each
of these brands may be in different stages of the PLC. Therefore, sports marketing
managers must give full consideration to variations in the PLC, based on the level of
the product (category, form, and brand).
Type of product
The PLC originally was designed to guide strategies for goods. However, the notion of
the PLC should be extended to other types of sports products. For instance, individual
331
athletes can be thought of as sports products that move through a life cycle just as
products do.
The phenomenal rise, success, and fluctuations of stars like Peyton Manning in the
NFL, Tiger Woods of the PGA, and Bode Miller from the U.S. Ski Team demonstrate
how numerous athletes may waver through the various phases of the product life
cycle. Prior to and after sustaining injuries, the number of products that Manning
endorsed has rapidly increased because everyone was aware of his star qualities.
However, when these athletes become injured, retire, or encounter turmoil, there
may be a significant change in their status within the product life cycle. The former
Cleveland Cavaliers’ star, LeBron James, has gone through an entire life cycle in the
Cleveland market; however, overall LeBron continues to have growth and market
presence, retaining the best-selling jersey during the 2010–11 and 2013–14 seasons.
At the same time, New York Knicks star, Carmelo Anthony, who had the best-selling
jersey during the 2012–13 season, is in the growth phase of his PLC, while the former
NBA MVP Shaquille O’Neal entered the decline phase of his playing career after being
traded to the Cleveland Cavaliers in the 2009–10 season and then with the Boston
Celtics in the 2010–11 season before retiring. Although Shaq was entering the decline
phase of his playing career, numerous outside endeavors such as endorsements,
albums, movie and TV appearances have kept his career outside of basketball in the
growth and maturity stages.
Interestingly, some individual athletes have a unique shape to their PLC. Think about
the many professional athletes who have come out of retirement to reintroduce
themselves. Mark Spitz attempted to come back to Olympic swimming 20 years
after winning seven gold medals in Munich and was no longer able to compete. Jim
Palmer, Bjorn Borg, Sugar Ray Leonard, Magic Johnson, and Muhammad Ali all tried
to come back after years away from their respective sports and failed miserably.
Arnold Palmer, with his incredible staying power, will undoubtedly stay in the maturity
phase of his PLC and remain a classic even after playing his last competitive golf
tournament. Many aging golfers, such as Tom Jenkins, who won $10.5 million
since 1998 on the senior circuit, but won only once on the regular PGA Tour, are
experiencing tremendous success on the senior circuit. Unfortunately, many athletes
experience a life cycle that is best represented by the fad PLC. For instance, Brian
Bosworth (Seattle Seahawks linebacker), Mark “The Bird” Fydrich (Detroit Tigers
pitcher), and Buster Douglas (boxing) were all athletes who had short-term success,
only to quickly fall into decline for a number of reasons.
Sports teams also can pass through the various phases of the PLC. For instance, the
National Basketball Development League awarded a franchise to Canton, Ohio in 2011
and it is in the introductory stage of its PLC. In 2012, many considered the Phoenix
Coyotes to be in the decline phase as their stay in Phoenix still remains in limbo.
Likewise, the Sacramento Kings under previous majority owner the Maloof family
were contemplating leaving Sacramento for a new, more appealing market after an
impasse in their new arena negotiations. However, the 2013 transaction created an
exchange of ownership, offering the organization “an opportunity of adjustment” in
the PLC, moving from decline to growth. Under new owner Vivek Ranadivé, the Kings
would hope to develop new strategies to enhance the Kings’ brand and its offerings to
enhance the growth of the organization. Keep in mind that the revitalization of these
product examples would each require completely different marketing strategies.
Professional and collegiate sports leagues also pass through the stages of the
PLC. Many of the established leagues in the United States are going global and are
332
currently in the introduction phase of their life cycles internationally. Therefore, the
leagues have directed their marketing efforts toward making fans aware of them
and generating interest. For example, the international markets are attracting a lot of
attention by major sports leagues/structures in the United States as the accompanying
spotlight illustrates.

X Games global expansion continues with TV deals in new host markets,
syndication deals in multiple other countries
With the 2013 X Games global • France – Canal+: In France, ESPN

expansion about to launch in Aspen, partners with Canal+ Events for X
the growth of the X Games is taking Games Tignes, and has reached
another step in its own progression, agreement with Canal+ for a
as ESPN and its Local Organizing combination of live and delayed
Committees (LOC) announce coverage for all six global X
agreements with TV partners in each Games events, including as much
of the four host markets outside of as 120 hours of live coverage
the United States, as well as multiple and up to 50 hours of highlights
syndication agreements in other and packaged programming. The
markets. This first group of television leading pay-TV provider in France,
partners around the world will be Canal+ is a leader in television and
joined by others in the months ahead, multi-screen technology, and will
as ESPN continues discussions with provide coverage across its Canal+
potential distributors around the and Canal+ Sport channels.
world. • Brazil – Rede TV: In Brazil, where
In addition to these partners, ESPN ESPN partners with Brunoro
and ABC networks in the United
States and countries around the
world will also televise and stream
Sport Business for X Games Foz
do Iguaçu, ESPN has reached an
agreement with Rede TV – one of
8
coverage of the X Games events. Brazil’s leading television networks
Local television coverage varies – will bring Brazilian fans at least
by country and should check local 10 hours of live coverage from
listings for further details. X Games Foz do Iguaçu, live or
As the 2013 X Games schedule delayed coverage from each of
launches, television coverage of X the other five X Games events,
Games Aspen will be seen in 184 as well as highlights, news and
countries, reaching more than 430 information coverage of X Games
million homes. events.
X GAMES HOST MARKET TV • Spain – MarcaTV, TV3: In Spain,
PARTNERS where ESPN partners with Seven
ESPN and its LOCs have reached Marketing for X Games Barcelona,
deals with television partners in ESPN has reached agreements
each of the four non-US event host with Marca TV to provide Spanish-
markets – France (X Games Tignes), language coverage and with TV3
Brazil (X Games Foz do Iguaçu), for exclusive coverage in Catalan.
Spain (X Games Barcelona) and Marca TV will also provide a
Germany (X Games Munich). combination of live and delayed
333
coverage of all six X Games • Norway – NRK: The national

events from around the world. television and radio broadcaster
TV3 will provide live, delayed in Norway, NRK is the country’s
and highlight coverage from all largest media outlet and will
six X Games events across its deliver extensive live, delayed and
channels (TV3, Esport3, Super3 highlights coverage of all six X
and 3/24), with more than 20 hours Games events across its free-to-air
of live coverage from X Games channels.
Barcelona. • Sweden – SVT: One of Sweden’s
• Germany – ProSiebenSat.1 leading national media outlets,
Group: In Germany, where ESPN SVT will deliver up to 40 hours of
partners with Munich Olympic live and delayed coverage of X
Park for X Games Munich, ESPN Games Aspen and X Games Los
and ProSiebenSat.1 Group have Angeles.
reached an agreement for a • Canada – TSN, RDS: TSN, in
combination of live, delayed and which ESPN is a partial owner,
highlights programming on Pro7 will provide live and highlights
free-to-air and pay TV channels, coverage of X Games throughout
as well as delivering an X Games the year, beginning with 22 hours
channel with live streaming and of programming around X Games
on-demand video on their video Aspen (including 14 hours of live
portal MyVideo.de. TV and digital coverage), at least 20 hours of live,
coverage will include extensive delayed and highlights coverage
live, delayed and packaged from X Games Los Angeles and at
programming around X Games least 20 hours of coverage across
Munich as well as live and delayed the other four events. Additionally,
coverage of all five other X Games RDS, the French-language sister-
events. network to TSN, will provide at
ADDITIONAL X GAMES TV least 60 hours of coverage across
PARTNERS the six events to French-Canadian
In addition to the host markets, fans.
ESPN has finalized multiple initial • China – Shanghai Media Group,
syndication deals in key markets, Guangdong TV, POWER Sports,
including: ESPN Star Sports: For Chinese
• Denmark – DR: DR is Denmark’s action sports fans, leading Chinese
national broadcasting company television and media companies,
and the oldest and largest Shanghai Media Group (Great
media outlet in the country. DR Sports channel), Guangdong TV
will deliver live and highlights (Guangdong Sports Channel)
coverage of all six X Games events and nationwide sports channel
to fans throughout Denmark on its POWER Sports will each provide
newly re-launched channel DR3. at least 10 hours of highlights
• Italy – Sky Italia: Sky Italia, the programming on their channels
leading pay television provider in from the six X Games events. In
Italy, will deliver up to 30 hours of hotels and foreign compounds in
delayed and highlights coverage of China, News Corporation-owned
X Games Aspen, X Games Tignes broadcaster ESPN Star Sports (in
and X Games Los Angeles to fans which ESPN was a joint venture
in Italy. partner until Oct. 2012) will deliver
334
at least 60 hours of highlights • Worldwide – Laureus: Laureus,

and packaged programming comprising the Laureus World
coverage from the six events on its Sports Academy, the Sport
networks. For Good Foundation and the
• Hong Kong – TVB: Hong Kong’s Laureus World Sports Awards,
leading free-to-air channel, TVB will feature highlights from X
will provide at least 12 hours Games Aspen.
of highlights and packaged ESPN NETWORKS COVERAGE
programming on its channels from WORLDWIDE
the six X Games events. In addition to its third-party television
• India – ESPN Star Sports: News partners, ESPN networks around
Corporation-owned broadcaster the world will deliver extensive live,
ESPN Star Sports will bring fans in delayed and highlights coverage
India at least 60 hours of highlights from all six X Games events in 2013.
and packaged programming Among the markets in which ESPN
coverage from the six events on its networks will deliver extensive live
networks in India. and/or delayed coverage of X Games
• Japan – NHK: Japan’s national events are:
broadcaster will provide at least • United States: ABC, ESPN, ESPN2
four hours of highlights coverage and ESPN3 will deliver US fans
from X Games Aspen. live coverage of all six X Games
• Southeast Asia – Fox Sports: Fox events, as well as packaged
Sports will bring fans in Southeast programs, highlights and delayed
Asia at least 60 hours of highlights replay coverage.
and packaged programming • Spanish-speaking Latin America:
coverage from the six events on ESPN’s multiple television and
its networks throughout Southeast broadband networks throughout
•
Asia.
Europe (pan-Regional) – Extreme
Sports Channel: One of the leading
Spanish-speaking Latin America
will deliver extensive live and
delayed coverage of X Games
8
action sports media outlets, events.
Extreme Sports Channel and ESPN • Brazil: ESPN Brazil will provide
have reached an agreement for extensive live, delayed and studio
60 hours of delayed programming coverage of all six X Games events
and highlights across all six X on television and via broadband
Games events. The channel, streaming.
dedicated to delivering top action • Australia, New Zealand, Pacific
sports programming 24/7/365, will Islands: ESPN, ESPN2 and
bring X Games content to more ESPN3.com will deliver extensive
than 30 countries across Europe coverage of the six X games
(some territorial blackouts apply – events to fans in Australia, while
see local listings for details) ESPN will bring live and delayed
• Worldwide – SNTV: One of the coverage to New Zealand and the
world’s leading sports video Pacific Islands.
news agencies, SNTV will feature • Europe: ESPN America will deliver
expanded highlights coverage a combination of live and delayed
from each day of all six X Games replay coverage of all X Games
events across its wire services. events to more than 20 million
335
households in more than 40 Brazil; Barcelona, Spain; Munich,

countries. Germany, Los Angeles, Calif., USA –
• Middle East and Africa: ESPN they will combine to offer the most
networks in the Middle East, Israel wide-ranging program of sports and
and Africa will bring fans live, disciplines in X Games history. 2013
delayed and highlights coverage of will also see the addition of Mountain
all X Games events. Bike Slopestyle, Women’s Skateboard
Scheduling details vary by region and Park and the return of BMX Freestyle
by event, and fans should see local Dirt.
listings in the weeks and months
ahead for details. Source: Article author: Grace
The 2013 X Games season kicks off a Coryell. Rightsholder: ESPN; http://
new era, with the global expansion’s espnmediazone.com/us/press-
releases/2013/01/x-games-global-
six-event schedule – featuring
expansion-continues-with-tv-deals-in-
eight sports, 26 disciplines and
new-host-markets-syndication-deals-in-
new iconic venues – Aspen, Colo.,
multiple-other-countries/.
USA; Tignes, France, Foz do Iguaçu,
Each level of sports product must receive careful consideration by sports marketers
because of the strategic implications. Sometimes the interaction of athlete, team,
and league PLCs can make strategic decisions even more challenging. Take the case
of Derrick Rose, point guard for the Chicago Bulls in the NBA. The Bulls and the NBA
could be seen in the maturity phase of the PLC, while Rose is in introduction. What
about the case of Barry Zito? Zito is a veteran in Major League Baseball, but needed
to be marketed as a new product for the Giants. As complex as this seems, sports
marketers must remember not to neglect any of these products. Decisions will be
made about the perceived relevance of each of these types of products.
Diffusion of innovations
New sports and sports products, or innovations, are continually being introduced
to consumers and pass through the various stages of the product life cycle as
described in the previous section. Initially, the new sport and sports product
are purchased or tried by a small number of individuals (roughly 2.5 percent of
the marketplace). Then, more and more people begin to try the new product.
Consider the “metal wood” in golf. When this innovation was first introduced in
the late 1970s, only the boldest “pioneers” of golf were willing to adopt the new
technology. Now, only a very small percentage of the golfing population does not
carry metal woods in their bags.23
The rate at which new sports products spread throughout the marketplace is referred
to as the diffusion of innovation.24 The rate of acceptance of a sport innovation is
influenced by three factors, which are shown in Figure 8.3. The first factor affecting
the rate of diffusion is the characteristics of the new product. These characteristics,
such as trialability, observability, perceived complexity, relative advantage, and
compatibility, were discussed earlier in the chapter in the context of new product
factors. The interaction of these factors can accelerate or slow the rate of diffusion.
Perceived newness, the second factor that influences the rate of diffusion, refers to
the type of new product from the consumer’s perspective (continuous, dynamically
336
New Product Characteristics Perceived Newness of Innovation

• Trialability • Discontinuous
• Observability • Dynamically continuous
• Perceived complexity • Continuous
• Relative advantage
• Compatability
Rate of Acceptance of
Sport Innovation
Nature of the communication network:

mass communication and word of mouth
Figure 8.3 Model of the rate of diffusion
continuous, and discontinuous innovations). Typically, continuous innovations have

a faster rate of acceptance because they require no behavioral change and little
disruption for the adopter. The third factor is the nature of the communication
network. The rate and way in which information is shared about a new sports
product is critical to its success, as well as the speed of acceptance. Most marketers
conceptualize the communications network for innovations as a two-step flow of
information. In the first step, the initial consumers try a new product or opinion leaders
are influenced by mass communication such as advertising, sales promotions, and the
8
Internet. Then, in the second step, opinion leaders use word-of-mouth communication
to provide information about the new product to the rest of the target market. Martin
and Higgins believe this two-step flow of information is especially important to sports
innovations because, “unlike typical consumer purchase decisions, which involve only
the individual, recent studies show that of the consumers who attend sporting events,
less than 2 percent attend by themselves.”25
The diffusion of innovations is an important concept for sports marketers to
understand because of its strategic implications. Stated simply, the marketer must
know the stage of the life cycle and the characteristics of the consumers likely to try
the product at any given stage. Let us examine the characteristics of each group as a
product spreads throughout the marketplace.
Types of adopters
There are several types of adopters. Innovators represent those consumers who
are the first to adopt a new sports product as it enters the marketplace. Because they
are the first to adopt, these consumers carry the highest risk associated with the new
product. These risks may be social (what will others think of the product?), economic
(costs are high and drive up the price), and performance (will the product perform as
it was intended?). This younger and usually high-income group of consumers is also
337
known for the high degree of interaction and communication they have with other
innovators.
The next group of consumers to adopt a new sports product is the early adopters. As
with the innovators, this group is also characterized by high social status. It is perhaps
the most important group to sports marketers, however, because they carry high
degrees of opinion leadership and word-of-mouth influence. As just discussed, these
individuals are the key players in communicating the value of new sports products to
the majority of consumers.
Once the new sports product has spread past the early stages of the product life
cycle, the early majority is ready for adoption. This group is above average in social
status but more deliberate in their willingness to try new products. In addition, this
group is heavily influenced by information provided by the innovators and early
adopters.
The late majority adopt innovations in the late stages of maturity of the product life
cycle. As their name implies, over half (roughly 60 percent) of the market has now
purchased or has tried the new product before the late majority decide to do so.
These individuals are skeptical and have less exposure to mass media.
The final group of adopters is known as laggards. These individuals are oriented
toward the past and tend to be very traditional in the sports products they choose.
They begin to adopt products in the declining stage of the product life cycle. Clearly,
prices must be reduced, and promotions encouraging trial and widespread distribution
must all be in place for laggards to adopt new products.
Summary continuous innovations are simply

improvements or limitation products.
Few sports products are critical to the
success of any organization. Newness, Regardless of how new products are
however, can be thought of in any classified, organizations are constantly
number of ways. The organizational searching for the next innovation that
perspective on newness depends will help the firm achieve its financial
on whether the firm has marketed objectives. Rather than leave this to
the product in the past. From the chance, many organizations use a
organizational perspective, new systematic approach called the new
products are categorized as follows: product development process. The new
new-to-the-world products, new product development process consists
product category entries, product line of the following phases: idea generation,
extensions, product improvements, and idea screening, analysis of the concept,
repositioning. developing the sports product, test
marketing, and commercialization. Idea
Conversely, newness from the
generation considers any and all ideas
consumer’s perspective is based on
for new products from sources such as
the consumer’s perception of whether
employees, competitors, and consumers.
the product represents an innovation.
During the idea screening phase, these
From the consumer’s perspective, new
new product ideas are screened and the
products are classified as discontinuous
poorer ones are eliminated. To perform
innovations, dynamically continuous
this task, organizations sometime use
innovations, or continuous innovations.
a new product screening checklist. In
Discontinuous innovations represent the
the third phase, analysis of the sports
most innovative new products, whereas
product concept, marketing research is
338
used to assess consumer reaction to which a product progresses through the
the proposed product. More specifically, four stages is unique for each product.
concept tests are used to gauge the Some sports products grow and decline
product’s strengths and weaknesses, at a rapid pace. These are known as
as well as the consumer’s intent to use fads. Other products, which seem to last
the new product. Next, a prototype of in maturity forever, are called classics.
the new product is designed so that The most common life cycle for sports
consumers can get an even better idea products is known as seasonal. Other
about the product. In addition, preliminary life cycle considerations are the level
decisions regarding marketing strategy are of product and the type of product. For
established. In the sixth stage, the new example, sports marketers might analyze
product is test marketed. Depending on the life cycle of leagues, teams, and
the product and the market conditions, individual athletes, as well as other types
sports marketers may use standardized, of sports products.
controlled, or simulated test markets. The rate of diffusion is the speed at
The final stage of the new product which new products spread throughout
development process is commercialization the marketplace. The rate of diffusion,
in which the new product is formally or speed of acceptance, is based
introduced in the marketplace. Whether on three broad factors: new product
the product succeeds is a function of a characteristics (e.g., trialability and
number of factors, such as the product observability), perceived newness (e.g.,
considerations (e.g., trialability and relative discontinuous innovation), and the nature
advantage), other marketing mix variables of the communications network. It is
(e.g., pricing), and marketing environment critical that sports marketers monitor
considerations (e.g., competition). the rate of diffusion and understand the
As a new product reaches characteristics of consumers that try new
commercialization, it moves through products as they spread throughout the
a series of four stages known as the marketplace.
product life cycle (PLC). The PLC is an
important marketing concept in that the
Innovators are the first group of
consumers to try a new product. They are
8
stage of the life cycle dictates marketing generally younger, have higher incomes,
strategy. The four stages of the PLC and have a strong tolerance for risk. The
include introduction, growth, maturity, next group of consumers to try a sports
and decline. At introduction, the product is the early adopters. This is a
marketing goal is to generate awareness larger group than the innovators and, as
of the new sports product. The broad such, they are key consumers to target.
goal of the growth phase is to build After the product has passed through
consumer preference for the sports the initial stages of the product life cycle,
product and begin to expand the product the early majority adopt the product. This
line. During maturity, the number of group is above average in income, but
promotions is increased and marketers more deliberate in trying new things. The
seek to maintain any competitive late majority adopts the product during
advantage they have obtained during the late stages of maturity and finally
growth. Finally, the product goes through the laggards may try new products.
decline, where decisions must be made Strategically, sports marketers must
regarding whether to delete the product adopt a different marketing mix when
or extend the life cycle. marketing to each new product adopter
Although each product has a life cycle, group.
the length of that life and the speed at
339
Key terms X early majority X new product

X fad development process
X classic X growth X new product success
X commercialization X harvesting (or milking) factors
X continuous innovations X idea generation X new sports products
X decline X idea screening X new-to-the-world
X developing the sports X innovations products
product X innovators X product form
X diffusion of innovation X introduction X product life cycle
X discontinuous X laggards X seasonal
innovations X late majority X test marketing
X dynamically continuous X maturity X types of adopters
innovations X new product category
X early adopters entries
Review questions 8. Define the diffusion of innovations.

What are the different types of
1. What is meant by a “new adopters for innovations? Describe
sports product”? Describe a the characteristics of each type of
“new sports product” from adopter.
the organization’s perspective
and from the consumer’s Exercises
perspective.
2. What is the difference 1. For each of the following sports
between discontinuous, products, indicate whether you
dynamically continuous, and believe they are discontinuous,
continuous innovations? Provide dynamically continuous, or
examples of each to support your continuous innovations: WNBA,
answer. titanium golf clubs, and skysurfing.
3. Describe, in detail, the new product 2. Contact the marketing
development process. department of three sporting
4. Why is test marketing so important goods manufacturers or sports
to sports marketers in the new organizations and conduct a brief
product development process? What interview regarding the new product
are the three types of test markets? development process. Does each
Comment on the advantages and organization follow the same
disadvantages of each type of test procedures? Does each organization
market. follow the new product development
5. What are the critical success process discussed in the chapter?
factors for new sports products? 3. In what stage of the product
6. Describe the product life cycle life cycle is Major League
concept. Why is the product Baseball? Support your answer with
life cycle so critical to sports research.
marketers? What is it used for? 4. Find an example of a “new sports
How can the product life cycle be product.” Develop a survey using
extended? the critical success factors for
7. What are some of the variations in new sports products and ask
the shape of the traditional product 10 consumers to complete the
life cycle? instrument. Summarize your findings
340
and indicate whether you think the 7 Mark Glover, “Taking the Cue – New
new product will be successful, Billiard Parlors Cater to Family Crowds
and Aren’t Shy About Giving Hustlers the
based on your research. Heave,” The Sacramento Bee (January 15,
5. Some people think boxing may be in 1996).
the decline phase of the product life 8 Don Muret and John Lombardo, “AEG
cycle. Develop a strategy to extend Involved in Massive Moscow Sports
Complex,” Street & Smith’s Sports Business
the product life cycle of boxing. Journal (March 28–April 3, 2011). Available
from: http://www.sportsbusinessdaily.
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AEG-Russia.aspx?hl=All%20Sport&sc=0,
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9 Del Hawkins, Roger Best, and Kenneth
examples of three “new sports Coney, Consumer Behavior: Building
products” recently introduced in the Marketing Strategy, 7th ed. (New York:
marketplace. McGraw-Hill, 1998), 248–250.
2. Find three Internet sites of 10 James J. Zhang, Dennis W. Smith, Dale G.
Pease, and Matthew T. Mahar, “Spectator
professional athletes in any sport. Knowledge of Hockey as a Significant
In what stage of the product Predictor of Game Attendance,” Sport
life cycle are these athletes? Marketing Quarterly, vol. 5, no. 3 (1996),
Support with evidence found on the 41–48.
11 Susan Higgins and James Martin, “Managing
Internet. Sport Innovations: A Diffusion Theory
3. Search the Internet for an example Perspective,” Sport Marketing Quarterly, vol.
of a new sports product that could 5, no. 1 (1996), 43–50.
be classified as a fad. Describe 12 Bill Richards, “Nike Plans to Swoosh into
Sports Equipment But It’s a Tough Game,”
the product and why you think the The Wall Street Journal (January 6, 1998),
product is a fad. Al.
13 Gilbert Churchill, Basic Marketing Research,
Endnotes 3rd ed. (Fort Worth: Dryden Press, 1996).
14 Theodore Levitt, “Exploit the Product Life
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Ballpark; Stadium Launches WiFi – Wireless
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15 Rick Burton and Dennis Howard,
“Professional Sports Leagues: Marketing
8
Technology – Application Throughout Mix Mayhem,” Marketing Management, vol.
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4 Kurt Badenhausen, “How Michael Jordon com/top-stories/2012/09/25/
Made $90 Million in 2013,” Forbes (February pwc-sales-improving-in-2012/.
27, 2014). Available from: http://www.forbes. 17 http://zoombang.com/, ©2014 Zoombang,
com/sites/kurtbadenhausen/2014/02/27/ Inc., accessed June 19, 2014. ©2014
how-michael-jordan-made-90-million-in-2013/, Zoombang, Inc.
accessed February 25, 2014. 18 SFIA, SFIA 2013 Participation Topline Report
5 “Wilson Seeks ‘the Perfect Feel’ With New (2013).
BLX Racquet Technology,” Tennis Industry 19 “GolfLogix and Garmin Enter Consumer
(January 2010). Available from: http://www. Handheld GPS Golf Market; ForeFront
tennisindustrymag.com/articles/2010/01/ to Exclusively Distribute GolfLogix GPS
wilson_seeks_the_perfect_feel.html, Devices,” PR Newswire US (January 25,
accessed June 19, 2014. 2007).
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Million in Renovations to Wrigley Field,” Company That Has the Rights to AstroTurf,
CBSSports.com (July 24, 2013). Available the Stuff of Football Legend, Has Big Plans,”
from: http://www.cbssports.com/mlb/eye- The Pantagraph (April 9, 2007).
on-baseball/22873768/chicago-approves-500- 21 David Hidgon, “Trim the Season to Grow the
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341
22 “The Action Sports Market,” Active 24 Everett Rogers, Diffusion of Innovations, 3rd
Marketing Group (2007). ed. (New York: Free Press, 1983).
23 James P. Sterba, “Your Golf Shots Fall 25 Bernard J. Mullin, Stephen Hardy,
Short? You Didn’t Spend Enough,” The Wall and William Sutton, Sports Marketing
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1993).
342
CHAPTER 9
Promotion concepts
• Identify the promotion mix tools.
• Describe the elements of the communication process.
• Understand the promotion planning model.
• Compare the advantages and disadvantages of the various
promotional mix tools.
• Understand the importance of integrated marketing communication
to sports marketers.
9 Promotion concepts
Just ask anyone the first thing that comes to mind when they think of sports
marketing, and they are likely to say advertisements produced by corporations such as
Nike, Gatorade, and Anheuser Busch or events such as the Super Bowl, the Masters,
Daytona 500, and March Madness. Many of these advertisers utilize star athletes to
endorse their products. Sports and sports celebrities have become a major spectacle
of today’s media culture. Sports celebrities have been looked upon as role models
for decades, and with the technological advances in broadcast and interactive media,
it appears that the famous and not so famous athletes are everywhere.1 Some of
the most widely utilized advertising spokespersons include famous athletes such as
Michael Jordan (Nike, Hanes, Gatorade), Tiger Woods (Nike), LeBron James (Nike,
Gatorade) Peyton Manning (ESPN, MasterCard, Direct TV, Sony TV, Gatorade, and
newly acquired Papa Johns), and Danica Patrick (GoDaddy.com, Tissot, Hot Wheels).
While many of the wealthy athletes make most of their money from endorsements
Floyd Mayweather makes 100 percent of his money from salary or winnings.
Mayweather makes $85 million on the contracts from his fights and that total does
not include any endorsement sums.2 As we have discussed, sports marketing is much
more than advertisements using star athlete endorsers. It involves developing a sound
product or service, pricing it correctly, and making sure it is available to consumers
when and where they ask for it. However, the necessary element that links the other
marketing mix variables together is promotion.
Typically, the terms promotion and advertising are used synonymously. Promotion,
however, includes much more than traditional forms of advertising. It involves all
forms of communication to consumers. For many organizations, sports are quickly
becoming the most effective and efficient way to communicate with current and
potential target markets. The combination of tools available to sports marketers to
communicate with the public is known as the promotional mix and consists of the
following promotion mix elements:
X Advertising – a form of one-way mass communication about a product, service, or
idea, paid for by an identified sponsor.
X Personal selling – an interactive form of interpersonal communication designed to
build customer relationships and produce sales or sports products, services, or ideas.
X Sales promotion – short-term incentives usually designed to stimulate immediate
demand for sports products or services.
X Public or community relations – evaluation of public attitudes, identification of
areas within the organization in which the sports population may be interested, and
building of a good “image” in the community.
X Sponsorship – investing in a sports entity (athlete, league, team, event, and so
on) to support overall organizational objectives, marketing goals, and more specific
promotional objectives.
Within each of the promotion mix elements are more specialized tools to aid in
reaching promotional objectives. For example, sales promotions can take the form
of sweepstakes, rebates, coupons, or free samples. Advertising can take place on
Twitter, Instagram, Facebook, television, in print, or as stadium signage. Sponsors
might communicate through an athlete, team, or league. Each of these promotional
tools is a viable alternative when considering the most effective promotion mix for a
sports organization. Regardless of which tool we choose, the common thread in each
element of the promotion mix is communication. Because communication is such
an integral part of promotion, let us take a more detailed look at the communications
process.
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Communications process
The communications process is an essential element for all aspects of sports
marketing. Communication is the process of establishing a commonness of thought
between the sender and the receiver. To establish this “oneness” between the
sender and the receiver, the sports marketer’s message must be transmitted via the
complex communications process.
The interactive nature of the communications process allows messages to be
transmitted from sports marketer (source) to consumer (receiver) and from consumer
(source) to sports marketer (receiver). Traditionally, sports marketers’ primary means of
communication to consumers has been through the various promotion mix elements
(e.g., advertisements, sponsorships, sales promotions, and salespeople). Sports
marketers also communicate with consumers via other elements of the marketing mix.

Bill Veeck
Known as the Promotion King For all his successful promotions,

of Baseball, Bill Veeck single- Veeck is also remembered for one
handedly changed the course of that turned sour in the mid-1970s.
sports marketing. Veeck pioneered Called “Disco Demolition Night,” the
promotional events that today have idea of the promotion was for fans
become commonplace. For instance, to bring their disco albums to the
Veeck initiated Ladies Night and ballpark to be burned in a bonfire.
Straight-A Night at the ballpark. One of Unfortunately, fans stormed the
Veeck’s most memorable promotions field, a riot ensued, and the White
took place on August 19, 1951, when Sox were forced to forfeit the second
a pinch-hitter was announced in the game of a doubleheader.
bottom half of the first inning in a Veeck also instituted a promotion
game between the St. Louis Browns
and the Detroit Tigers. Over the furious
objections of the Detroit manager,
where fans were given signs with
“yes” and “no” on them and asked
to vote on strategy during a game.
9
Red Rolfe, the batter was declared a The “Grandstand Managers” led the
legitimate member of the Browns. Browns to a 5–3 victory. Promotions
Bill Veeck, then owner of the Browns, such as this led Veeck to be known
cautioned his pinch-hitter before he as a true “fan’s fan.” He once stated
left the dugout that “I’ve got a man in that “every day was Mardi Gras
the stands with a high-powered rifle, and every fan was king,” and “the
and if you swing he’ll fire.” most beautiful thing in the world is
What was the fuss? Veeck sent in a ballpark filled with people.” His
a 3-foot-7-inch midget named Eddie marketing and fan orientation forged
Gaedel to pinch-hit for the Browns. the way for later marketers of all
Gaedel was promptly walked on four sports.
straight pitches and removed from
the game for a pinch-runner. Gaedel Source: Adapted from Bill Veeck, Veeck
was quoted as saying, “For a minute, as in Wreck: Autobiography of Bill Veeck
I felt like Babe Ruth.” (New York: Simon and Schuster, 1962).
345
Sender Encoding Message Medium Decoding Receiver
Noise
Feedback
Figure 9.1 Communication process

Source: Solomon, Michael R., Consumer Behavior, 3rd Edition, © 1996, p. 194.
For example, the high price of a NASCAR Sprint Cup ticket communicates that it is a
higher quality event than the more inexpensive Nationwide Series.
In addition to sports marketers communicating with consumers, consumers
communicate back to sports marketers through their behavior. Most notably, consumers
communicate whether they are satisfied with the sports product by their purchase
behavior. In other words, they attend sporting events and purchase sporting goods.
The communications process begins with the source or the sender of the message.
The source encodes the message and sends it through one of many potential
communications media. Next, the message is decoded by the receiver of the
message, and finally feedback is given to the original source of the message. In the
ideal world, messages are sent and interpreted exactly as intended. This, however,
rarely occurs because of noise and interference.
Figure 9.1 shows a simplified diagram of the communications process. Each box in
the figure represents one of the elements in the communications process. These
elements include the sender, encoding, message, medium, decoding, receiver,
feedback, and noise. To maximize communication effectiveness, it is necessary
to have a better understanding of each of these elements in the communications
process.
Source
The sender or source of the message is where the communication process always
originates. In sports marketing, the source of messages is usually a star athlete. For
example, you might think of Maria Sharapova shooting pictures with her Canon or Troy
Polamalu washing his long hair with Head & Shoulders. Recently, Forbes published
the 2013 highest paid athletes.3
Interestingly, despite a significant loss of $30 million in revenue, Tiger Woods
remained atop the list of athletes to watch as spokespeople in the 21st century. This
list also included Roger Federer, Kobe Bryant, LeBron James, Drew Brees and David
Beckham. Other notables were Maria Sharapova (22nd), Tom Brady (11th), and Dale
Earnhardt Jr (32nd).
346
Although these sources are all individual athletes, there are many other sources
of sports marketing messages. The source of a message might also be a group of
athletes, a team, or even the league or sports. Additional sources of sports marketing
messages are company spokespeople such as John Solheim, the chairman of Ping
Golf, or owners such as Mark Cuban of the Dallas Mavericks.
Sources do not always have to be well recognized and famous individuals to be
effective. Sports marketers use actors playing the role of common, everyday sports
participants to deliver their message from the perspective of the representative
consumer of the sports product or service. Other effective sources are inanimate
objects, such as the college mascots like the Big Red mascot from Western Kentucky
University featured in the Capital One Mascot Challenge commercials. In addition,
sports marketers rely on sales personnel to convey the intended message to
consumers. Informal sources, such as friends, family, and coworkers, are also sources
of marketing information and messages. As we learned in Chapters 4 and 5, reference
groups play an important role in influencing purchase behavior and transmitting the
marketing message.
Whatever the source, it is agreed by researchers that to be effective, the source
must be credible. Credibility is the source’s perceived expertise and trustworthiness.
A very persuasive message can be created when a combination of these two
factors (expertise and trustworthiness) is present in the source. For a source
to be trustworthy, that person must be objective and unbiased. Certain athlete
endorsers, such as Peyton Manning, former coach Mike Ditka, and Michael Jordan,
are known for their perceived trustworthiness. We sometimes look to friends and
family as information sources because of their objectivity. In fact, word-of-mouth
communication is believed to be extremely persuasive because the source of the
message has nothing to gain from delivering the message. Additional unbiased
sources are those “man-on-the-street” testimonies given by the common consumer.
For example, many of us have seen infomercials that use “regular people” to describe
how they lost weight or became physically fit by using the latest and greatest fitness
equipment.
Source credibility is also enhanced when the sender of the message has
perceived expertise. Naturally, an athlete such as LeBron James is believed to deliver
expert messages when the product being promoted is related to athletics, or more 9
specifically, basketball. At least this is what Nike is counting on.
LeBron James, one of NBA’s most popular players, came directly out of high
school with signing the richest show endorsement deal that any NBA rookie had
ever signed. Nike signed James to a $90 million endorsement contract narrowly
beating out Adidas, which was the sponsor of James’ high school team. James
signed endorsement deals with a range of other top companies, including Coca-Cola
Corporation. James has endorsed a slew of Coke products, starting with Powerade
and eventually moving to Vitamin Water and now Coca Cola. He signed a new shoe
contract with Nike in 2010 that pays more than $10 million per year. During the
2012 London Olympics, Nike and McDonald’s ran a global advertising campaign that
featured James as a champion and rival, respectively.4
347
Ad 9.1 Arnold Palmer: one of the most credible endorsers ever

Source: Lamkin Corporation
Other examples of athletes who endorse products related to their sport include
race car drivers such as Dale Earnhardt Jr. promoting Mountain Dew, Chevrolet or
Nationwide Insurance and tennis players such as Roger Federer promoting Nike tennis
equipment. The general rule of thumb is that the message is more effective if there
is a match-up, or congruence, between the qualities of the endorser and the product
being endorsed. In fact, the match-up hypothesis states that the more congruent
the image of the endorser with the image of the product being promoted, the more
effective the message.5
If the match-up hypothesis holds true, then why do companies pay millions of dollars
to star athletes to promote their nonathletic products? For example, Olympic gold
medalist snowboarder Shaun White is a pitchman for American Express, hockey star
Alex Ovechkin promotes Gillette products, and golfer Phil Mickelson is an endorser
for Rolex. First, consumers have an easier time identifying brands associated with
celebrity athletes. Second, athletes are used to differentiate competing products
that are similar in nature. For instance, most consumers know and associate Derek
Jeter with Gatorade. Jeter’s association helps to create and then maintain the desired
image of Gatorade, which in turn differentiates it from other bottled sports drinks on
the market.
Encoding
After the source is chosen, encoding takes place. Encoding is translating the sender’s
thoughts or ideas into a message. To ensure effective encoding, the source of the
348
message must make difficult decisions about the message content. Will the receiver
understand and comprehend the message as intended? Will the receiver identify
with the message? In 1974, Adidas launched its “Impossible is Nothing” campaign.
Originating from a quote taken from the great Muhammad Ali, the notation has
been a powerful Adidas slogan for many years and many people will continue to
remember the brand with the same philosophy for times to come. However, as of
March 2011, Adidas brought together sport, street and style for the very first time
collectively highlighting that the company was willing to go “All in” for the consumer.6
The campaign was the biggest marketing push in the brands history. The premise
behind the push was to create intimacy between their assets and the brand fans and
consumers. The goal was to help them create and enhance their own style whilst
giving them the latest news on hot tendencies.7 The plan was part of their strategic
Business Plan – called Route 2015 – where the company set social and environmental
targets that aimed to shape how they would grow and meet their business goals.8
Adidas wants to close in on the market leader. That is, of course, a name familiar to
many: Oregon-based Nike. The company is seeking sales growth of 45 percent to
50 percent by 2015, and “All Adidas” (or “all adidas”) is part of that. The idea of the
campaign is to show off Adidas’ versatility. It won’t be just across sports, although
those such as the Chicago Bulls’ Derrick Rose, soccer stars Lionel Messi and David
Beckham, and even the entire Notre Dame Football program is “all in” with the
campaign. In addition to sports, the company will highlight its diversity among
celebrities, too, with folks like pop star Katy Perry and rapper B.o.B.9
Sources have a variety of tools that they use to encode messages. They can use
pictures, logos, words, and other symbols. Symbols and pictures are often used in
sports marketing to convey the emotional imagery that words cannot capture. The
most effective encoding uses multiple media to get the message across (i.e., visually
and verbally); presents information in a clear, organized fashion; and always keeps the
receiver in mind.10
SPOTLIGHT ON SPORTS MARKETING ETHICS 9

Endorsements remain buyers’ market
Twin wrecking balls assaulted market, the best thing they can say
sports marketing in 2009. First, the is that while those at the top, like
severe recession had the country’s Nike’s renewal with Maria Sharapova
biggest brands slashing budgets as and Puma’s renewal with sprinter
never before. Then Tiger Woods, Usain Bolt, are still getting their
who carried the golf industry on his deals, it remains a buyers’ market.
shoulders, sank into a sex scandal Since marketing can always be done
that would end in divorce from without a celebrity endorser, some
his wife and several of his largest brands have always considered
corporate sponsors. endorsements as a luxury. In the
So when you ask people across the worst of times, that’s even truer; so
marketing industry about the state of the endorsement market has always
the individual athlete endorsement been erratic.
349
“The endorsement market has consolidate at the top,” said Sandy

always been tied to the economy, so Montag, IMG senior corporate vice
it took a gigantic and unprecedented president. “So that middle tier is
nosedive over the past two years having a tough time.” Apparently
that’s now flattened out, but I haven’t that is even true for Woods, who once
necessarily seen the market go set the standard for endorsers. IMG
back yet,” said John Slusher, vice Golf head Mark Steinberg, Woods’
president of sports marketing at Nike, longtime agent, said he is still getting
which has thousands of athletes calls inquiring about endorsements,
under contract. even after all the humiliation the
“You still see premium deals for golfer has experienced. “There is still
premium assets, like top draft picks, demand, for sure,” Steinberg said.
but most NFL and MLB players, we “I’m not sure we’ve had the right
are getting at a fraction of the cost offers yet. But I’d say the time is right
they were before. Most basketball where I’d start to look at expanding
players, we are getting at a fraction of his portfolio. . . . There were 18
the cost they were two or three years months when it was really rough
ago. Our strategy hasn’t changed. We sledding. Now what we are seeing is
are buying as many athletes, if not some of the staple industries in golf,
more, but at a better price.” like auto and financial, have started to
Nike’s recent SEC filings show come back strong.” There are others
more athletes under contract, but who say Woods’ follies will harm the
fewer dollars committed. golf market for the foreseeable future.
It’s a pretty simple equation,” Others said they see golf marketing
observed Gary Stevenson, the coming back, but believe it will take at
former principal for Wasserman least another year to recover. “Tiger’s
Media Group’s corporate consulting presence in golf over the past decade
practice. “Activation budgets are a or more probably prevented a
lot less, so the endorsement budgets downturn in that market,” said Phil
followed suit. You also see a lot of de Picciotto, president of athletes
endemic business across sports and personalities at Octagon, which
tanking, and when their business represents Apolo Anton Ohno,
is down it brings marketing around Michael Phelps and Emmitt Smith,
sports down. There used to be 50 among others.
guys on the PGA Tour with pretty “Tiger and the economy together
good equipment deals. Now it’s were a double whammy on golf,
maybe 20 guys.” Mike Wiese, director and it’s going to take a considerable
of branded content and entertainment amount of time for that market to
at JWT, said he hadn’t detected a return – if it ever does,” de Picciotto
slowdown among advertisers using said. Even if there isn’t unanimity of
celebrities, but such deals inevitably opinion on what effect the fall from
now take longer to complete. grace of golf’s top attraction had
“Especially with procurement on the sport, everyone agrees that
departments [at clients] having more across marketing a “Tiger effect”
influence, there’s just more and more chilled – and to some degree is still
people looking at every deal,” he affecting – brands’ willingness to
said. Still, the top-tier athlete seems employ athletes as endorsers. The
to be getting his or her money. extent to which marketers across
“We’ve seen a lot of companies sports believe Woods’ scandal
350
affected marketing is so varied, it Pepper and Procter & Gamble. “In

likely depends on how close they the past, all companies would be
were, or indeed, whether they or able to do is walk away from the
an associated brand or agency deal and stop paying,” Zablow said.
client was tied to Woods. “As much “Now, we are seeing them ask for
good as Tiger originally did for golf money to be paid back. You’re also
endorsements and golf TV ratings, seeing spread-out and back-loaded
he may also have done that much payments to protect themselves.
harm,” said Matt Delzell, group This is all the Tiger Woods effect.
account director at Omnicom’s Davie The ‘You don’t EVER have to
Brown Entertainment marketing worry about him’ sell doesn’t exist
agency, which helped pass muster on anymore.” Davie Brown’s Delzell
Woods’ endorsements with Gillette agreed. “Tiger’s the example we all
and AT&T. reference now,” he said. “It’s much
“If you asked me whether the more difficult to get any program
recession or Tiger had more of an with a celebrity endorser sold in.”
impact on endorsements and sports Jordan Bazant of The Agency, which
marketing in general, I’d tell you the represents Colt McCoy, Reggie Bush
recession, but not by much. Tiger has and Troy Aikman, said the industry
that much clout.” Added Tony Pace, downturn has had some benefits.
CMO at Subway, whose endorsers “Nothing’s being done on pure whim
include Philadelphia Phillies first anymore,” he said. “The result is a
baseman Ryan Howard, Phelps and more thorough strategy and a better
Fox NFL analyst Michael Strahan: platform.” Steinberg noted that the
“Because of what happened with overall golf market is recovering,
Tiger, everyone now gives a third and he’s back in the market for
and fourth look at an endorsement Woods. “It’s clear companies are
prospect, as opposed to just a first taking a wait-and-see attitude,” he
and second look before.” Frank said. “Does that mean there will be
Mahar at Genesco Sports Enterprises bolstered morals clauses? I don’t
said he’s seen no slowdown in know.” Steinberg added that the
demand from clients like Pepsi and
Coors, each of which has large
league sponsorships they need to
pinch that Capitol Hill lawmakers
put on financial services industry
marketing at the height of the
9
complement with player deals. So recession was equally deleterious as
his version of the Tiger effect is the economy and Woods. Whatever
that “we’re all a little more aware the impact, the situation with Woods
now – but we already had pretty accelerated a shift by many marketers
strong contract language.” Still, from sports to entertainment. “We’re
others insist l’affair d’Tigre has all still fighting the Tiger effect, some
changed endorsement contracts of which dates back to Kobe,” said
forever. “Breach language and the Doug Shabelman, president of Burns
morals section of contracts are a Entertainment & Sports Marketing,
lot tighter now and you are starting in suburban Chicago, an agency that
to see some kind of recourse,” changed its name a few years ago to
said Mark Zablow, senior director reflect a broader approach to talent
of marketing at Platinum Rye representation. “Five years ago,
Entertainment, which secures sports maybe 35 percent of our business
talent for sponsors including Dr was sports. Now it’s 15 percent,”
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said Burns, whose company procures said Greg Via, global director of
talent for the likes of Unilever and sports marketing at Gillette, citing
Dannon. Ray Lewis’ recent work with Old
Many of those interviewed said Spice as an example. “We’re looking
that in addition to price erosion, for 360 branding opportunities for our
celebs and athletes are being asked athletes and so are they.” That means
to do more for their fees, whether you’d better come to brand marketers
that’s additional appearances, social with more than just a name and a
media or branded content. “The one face. “Now you have to package
thing fans all want, it’s access, and a celebrity with more marketing
technology is an accelerant for more elements than ever,” said Octagon’s
access,” said John Osborn, president de Picciotto. So, just as sports
and CEO at BBDO, New York, properties are becoming media
whose client list includes big sports companies, athletes and celebrities
spenders like FedEx, Gillette and are moving in the same direction. Are
AT&T. “But technology also means you ready for the Kobe Network? The
their lives are more exposed, whether Lady Gaga Channel? “Technology
they like it or not.” As an example has enabled celebrities to become
of effective use of endorsers in new their own media distributors, and
media, Osborn cited campaigns our clients want to tap into that
for the launch of Gillette’s Fusion passionate fan base,” said Greg
ProGlide razor on YouTube and Luckman, CEO of North America at
Twitter around the globe resulting GroupM ESP, whose clients that use
in “billions of media exposure, long sports marketing include Citi, Xerox
before the traditional media kicked and Unilever. “Although it remains
in.” a buyer’s market, the more forward-
Gillette has been using sports thinking and tech-savvy athletes will
endorsers for 100 years, and has benefit from this.”
generally been able to pay less than
other categories, due to its heavy Source: Article author: Terry Lefton.
media spend, and its penchant for Rightsholder: Sports Business Journal;
massive retail programs. “Lately http://www.sportsbusinessjournal.com/
article/66990.
that’s been true across P&G brands,”’
Message
The next element in the communications process is to develop the message,
which refers to the exact content of the words and symbols to be transmitted to
the receiver. Decisions regarding the characteristics of this message depend on
the objective of the promotion, but sports marketers have a wide array of choices.
These choices include one- versus two-sided messages, emotional versus rational
messages, and comparative versus noncomparative messages.
The sidedness of a message is based on the nature of the information presented to the
target audience. The messages can be constructed as either one- or two-sided. In a one-
sided message, only the positive features of the sports product are described, whereas
a two-sided message includes both the benefits and weaknesses of the product.
Another decision regarding the message in the promotion is whether to have an
emotional versus rational appeal. A rational appeal provides consumers with
information about the sports product so they may arrive at a careful, analytical
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Table 9.1 Creating a more effective message
• Get the audience aroused.

• Give the audience a reason for listening.
• Use questions to generate involvement.
• Cast the message in terms familiar to your audience and build on points of interest.
• Use thematic organization – tie material together by a theme and present in a logical, irreversible
sequence.
• Use subordinate category words – that is, more concrete, specific terms.
• Repeat key points.
• Use rhythm and rhyme.
• Use concrete rather than abstract terms.
• Leave the audience with an incomplete message – something to ponder so they have to make an
effort at closure.
• Ask your audience for a conclusion.
• Tell the audience the implications of their conclusion.
Source: James MacLachlan, “Making a Message Memorable and Persuasive,” Journal of Advertising
Research, vol. 23 (December 1983–January 1984), 51–59.
decision, and an emotional appeal attempts to make consumers “feel” a certain

way about the sports product. Emotional appeals might include fear, sex, humor, or
feelings related to the hard work and competitive nature of sport.
A final message characteristic that may be considered by sports marketers
is comparative messages. Comparative messages refer to either directly or
indirectly comparing your sports product with one or more competitive products in
a promotional message. For example, golf ball manufacturers often compare the
advantages of their product with competitors’ products.
Regardless of the message characteristics, the broad objective of promotion is to
effectively communicate with consumers. What are some ways to make your sports
marketing message more memorable and persuasive? Table 9.1 summarizes a few
simple techniques to consider. 9
Medium
After the message has been formulated, it must be transmitted to receivers through
a channel, or communications medium. A voice in personal selling, the Internet,
television, radio, stadium signage, billboards, blimps, newspapers, magazines,
athletes’ uniforms, and even athlete’s bodies all serve as media for sports marketing
communication. In addition to these more traditional media, new communications
channels such as social media and the multitude of sports-specific cable programming
(e.g., the Golf Channel) are emerging and growing in popularity.
Decisions on which medium or media to choose depend largely on the overall
promotional objectives. Also, the media decisions must consider the costs to reach
the desired target audience, the medium’s flexibility, its ability to reach a highly
defined audience, its lifespan, the sports product or service complexity, and the
characteristics of the intended target market. These media considerations are
summarized in Table 9.2. For example, sports marketers attempting to reach the
African American market may choose television as a communications medium
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Table 9.2 Making media decisions
• Cost to reach target audience

• Flexibility of media
• Ability to reach highly specialized, defined audience
• Lifespan of the media
• Nature of the sports product being promoted (e.g., complexity of product)
• Characteristics of the intended target market
Table 9.3 Most watched programs in U.S. television history
1. SuperBowlXLVIII (2014): 111.5 million (Fox)

2. Super Bowl XLVI (2012): 111.3 million (NBC)
3. Super Bowl XLV (2011): 111 million (Fox)
4. Super Bowl XLVII (2013): 108.4 million (CBS)
5. Super Bowl XLIV (2010): 106.5 million (CBS)
6. M*A*S*H* series finale (1983): 106 million (CBS)
7. Super Bowl XLIII (2009): 98.7 million (NBC)
8. Super Bowl XLII (2008): 97.5 million (Fox)
9. Super Bowl XXX (1996): 94.1 million (NBC)
10. Super Bowl XLI (2007): 93.2 million (CBS)
Source: Nielsen Newswire 2014, “Super Bowl XLVIII Draws 111.5 Million Viewers, 25.3 Million
Tweets,” http://www.nielsen.com/us/en/newswire/2014/super-bowl-xlviii-draws-111-5-million-viewers-
25–3-million-tweets.html, Published February 3, 2014, accessed June 20, 2014.
because this market watches more television than average households. In addition,
the African American market watches more WNBA, NBA, and college basketball
than the average household. Furthermore, a decision to target women may include
advertising specific to the NFL. American women watch the NFL more than MLB and
the NBA. In the past decade the NFL has launched several marketing and outreach
programs such as coaching clinics, women’s apparel, and the donning of pink
during Breast Cancer Awareness Month to target the female viewing audience. This
audience has grown from 32.6 percent in 200611 to over 33 percent in 2013.12
As Table 9.3 illustrates there was a record numbers of viewers for Super Bowl XLVIII,
XLVI, and XLV. In fact, each of these Super Bowls successfully became the most-
watched television program of all time, recording 111.48 million, 111.34, and 111.04
million viewers respectfully.13 As this number increased the gap between male and
female viewers shrank. Forty-six percent of the Super Bowl audience was female;
while approximately 54 percent of the U.S. audience was male and about 11 percent
of the U.S. audience was African American. For Super Bowl XLVIII there was a
continuation of success as it became the most watched program in U.S. history. This
is the fourth time in five years that the Super Bowl has set record audiences. The
Super Bowl claims the top for the five most watched TV programs, CBS series finale
M.A.S.H. claims the sixth spot and the Super Bowl reclaims spots seven through ten.14
Decoding
The medium carries the message to the receiver, which is where decoding takes place.
Decoding, performed by the receiver, is the interpretation of the message sent by
the source through the channel. Once again, the goal of communication is to establish
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a common link between sender and receiver. This can only happen if the message
is received and interpreted correctly. Even if the message is received by the desired
target audience, it may be interpreted differently because of the receiver’s personal
characteristics and past experience. In addition, the more complex the original message,
the less likely it is to be successfully interpreted or decoded. As the accompanying
article illustrates, decoding often varies among consumers and sometimes proper
decoding can lead to questionable, and a range of, interpretations of ads.15

How impact of “Tiger Recession” changed athlete marketability
Many of us have spent the last 12 found endorsement deals an easy

months holding our breath, looking target. Expensive endorsement
for signs that the sports economic contracts dried up like Death Valley
landscape is beginning to return to in August. One example: Two years
normal. Highest ratings in Super ago, Vitaminwater boasted more
Bowl history? Check. Upfronts went than two dozen athletes on its roster.
well? Yes. Consumer spending Today? Just a handful.
up a little? Perhaps. Things might The second, and likely more
be looking up. But in the athlete permanent, blow came when the
endorsement world, I’ve noticed Tiger Woods scandal broke in
signs that things will never be the November of 2009. Prior to that
same. infamous Thanksgiving weekend,
Rewind to the summer of 2008. Woods sat at the mountaintop
Athletes were riding the economic of athlete marketability. He was
wave that brought deals in multiple arguably the most marketable
categories for even marginal all-star athlete of all time. He seemed
caliber athletes. Any time an athlete untouchable. He was the standard
got hot, deals followed. And the bearer: champion, philanthropist,
hotter the athlete, the more leverage charismatic, family man. When
the agent had in negotiations with his image came crashing down,
the potential sponsor. But by the
next fall, athlete endorsements were
and several of his sponsors ran
for the hills, sponsors everywhere 9
dealt a 1–2 blow unlike any punch started to worry about the risk of
Mike Tyson ever landed. I refer to associating their brands with such
that double whammy as the “Tiger potentially high-profile falls from
Recession.” I believe that the Tiger grace. The epilogue to the Woods
Recession will go down in sports mess came in December 2009, when
business history as a 12-month span TMZ announced plans to launch
that forever changed the world of TMZ Sports. Athletes will be under
athlete endorsements. scrutiny more than ever before. Top
The first blow of course was the that with the LeBronathon, and you
economic crisis that began in the get completely new rules for athlete
fall of ’08. The meltdown wiped out marketing.
entire categories such as banking As the ice begins to thaw, and
and autos from athlete portfolios. sponsors are once again considering
Advertising budgets were slashed. aligning with athletes to help increase
CMOs looking for quick budget cuts the strength of their brands, it is
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foolhardy to assume things in the well. Athletes will have to deliver

athlete marketing world will return results during the term to earn
to normal. Those of us engaged in renewals.
athlete endorsement deals need to 2. Stronger morals clauses. They’ll
consider two key questions: have real teeth, allowing the sponsor
1. What will sponsors be looking an out any time an athlete is involved
for from their spokespeople? in controversy. Athletes interested in
2. What can athletes do to increase endorsements should embrace their
their marketability in the post-Tiger role model status and deliver on it.
Recession world? 3. True spokesperson advocacy.
21st century endorsements Sponsors are looking for athletes
Because deals will remain few and who genuinely love their brands. Fit
far between as long as the economy is key. Athletes need to advocate the
sputters, it’s a buyer’s market. brands, know their customers and
Expectations on spokespeople will understand their objectives.
increase, and sponsors are likely 4. Increased media obligations.
to expect more for less. During this Athletes have microphones in their
year’s World Congress of Sports, faces after every game. Sponsors
Jackie Woodward of MillerCoors said will look for more exposure through
it best: “Last year we were asking, traditional media channels.
‘How much?’ This year we are asking, 5. Authentic cause-marketing
‘How much do we get?’” elements. Athletes need to engage in
While Woodward was referring to causes they genuinely feel passionate
sponsorships, the same questions are about.
being asked regarding endorsements. 6. Social media engagement.
During a recent pitch, a potential Facebook fans and Twitter followers
sponsor asked me to include an are 21st century Q Scores. If athletes
activation plan with my athlete don’t have loyal, engaged and
proposal. We’ve always brainstormed numerous fans in the social-media
activation plans with sponsors, but world, they’re not as valuable to
none has ever asked us to provide a sponsors.
complete activation plan ourselves. 7. Metrics. As marketers continue
I believe this was a sign of things to receive more pressure to
to come, and clearly implies much demonstrate ROI, athletes and their
more onus on the part of the athletes representatives will need to do the
and their agents to deliver more same. ROI can include Facebook
than image/likeness rights and a few impressions, tweets, clicks and direct
appearances. sales.
Athletes looking for deals 8. Incentives. In addition to
should expect to deliver beyond minimum guarantees, athletes will
a few production days. Here are be incentivized. Flip is doing this
the key elements of 21st century now through their celebrity-branded
endorsement deals, and what cameras.
athletes can do to deliver on those 9. Connection with fan base. This
elements: may be the biggest lesson from
1. Shorter terms. Sponsors don’t the Le-Bronathon. Who are LeBron
want to get stuck with bad contracts James’ fans now? Residents of
any more than teams do. Expect Miami. He won’t be much help to
more sponsor renewal options as sponsors in New York, Chicago, Los
356
Angeles or Ohio any time soon. An to engage in genuine community

athlete has to have an identifiable work, embrace both traditional and
and loyal fan base. The broader the digital media, and partner with brands
market reach and demographic base they believe in. And they need to
the better. show sponsors with enthusiasm,
Do I believe endorsements are a professionalism and results. Those
thing of the past? Absolutely not. athletes will earn the lion’s share
There’s no one more loyal than the of endorsement opportunities. The
fan of an athlete, and brands will rest will be sitting on the bench,
always want to leverage that brand wondering where all of the deals went.
loyalty.
The tenets of athlete marketability Source: Article author: Bill Sanders.
remain the same: talent, success, Rightsholder: Sports Business Journal;
integrity and charisma. To increase http://www.sportsbusinessdaily.com/
Journal/Issues/2010/08/20100802/From-
their marketability, athletes need to
The-Field-Of/How-Impact-Of-Tiger-
do more than win championships and
Recession-Changed-Athlete-Marketability.
appear in all-star games. They need
aspx.
Receiver
The receiver, or the audience, is the object of the source’s message. Usually, the
receiver is the sports marketer’s well-defined, target audience. However, and as
previously mentioned, the receiver’s personal characteristics play an important role in
whether the message is correctly decoded. For example, consumers’ demographic
profile (e.g., age, marital status, and gender), psychographic profile (e.g., personality,
lifestyle, and values), and even where they live (geographic region) may all affect the
interpretation and comprehension of the sports marketing message.
Feedback
To determine whether the message has been received and comprehended, feedback
is necessary. Feedback is defined as the response a target audience makes to a
message. The importance of feedback as an element of the communication process
9
cannot be overlooked. Without feedback, communication would be a one-way street,
and the sender of the message would have no means of determining whether the
original message should remain unchanged, be modified, or abandoned altogether.
There are several ways for the consumer or target audience to deliver feedback to
the source of the message. The target market might provide feedback in the form of
a purchase. In other words, if consumers are buying tickets, sporting goods, or other
sports products, then the sports marketer’s message must be effective. Likewise, if
consumers are not willing to purchase the sports product, then feedback is also being
provided to the source. Unfortunately, the feedback in this case is that the message is
either not being received or being incorrectly interpreted.
When using personal communication media, such as personal selling, feedback is
received instantly by verbal and nonverbal means. Consumers will respond favorably
by nodding their head in approval, acting interested, or asking intelligent questions.
In the case of disinterest or inattention, the source of the message should make
adjustments and change the message as it is being delivered to address any
perceived problems.
357
Another common form of feedback comes through changes in attitude about the
object of the message. In other words, the consumer’s attitude shifts toward a more
favorable belief or feeling about the sports product, athlete, team, or sport itself.
Generally, the more positive the attitude toward the message, the more positive the
consumer’s attitude toward the sports product. This should, in turn, lead to increases
in future purchases. One of the many uses of marketing research is to gather
feedback from consumers and use this feedback to create or redesign the strategic
sports marketing process. The control phase of the strategic marketing process is
dedicated to evaluating feedback from consumers and making adjustments to achieve
marketing objectives.
Thus far, we have only examined feedback in one direction – from consumer of the
product to producer of the product. However, feedback is an interactive process. That
is, consumers also receive feedback from the sports organization. Organizations let
consumers know they are listening to the “voice of the consumer” by reintroducing
new and improved versions of sports products, changing the composition of teams
and their coaches, adjusting prices, and even varying their promotional messages.
For example, when the Brooklyn Nets season got off to a start fans throughout the tri-
state area were not convinced of the hype surrounding the team’s much anticipated
move from the Prudential Center in Newark, New Jersey. The Brooklyn Nets had
yet to sell-out for any of their home games, leaving open seats scattered throughout
the $1 billion arena. The closest the Nets had come to a sell-out was for their first
home game of the 2012–13 regular season, a 107–100 win against the Toronto
Raptors. Attendance for the game was 17,732, according to statistics from The Sports
Network, almost 1,000 fewer than the first game of the 2011–12 regular season
back in New Jersey. The Nets’ second home game, played against the Minnesota
Timberwolves, drew only 14,017 fans, the lowest amount for their regular season thus
far. Attendance increased for the third and fourth home games, peaking at 17,032 for
Brooklyn’s win over the Cleveland Cavaliers. Despite not being able to sell-out their
new home stadium, the Nets have increased their attendance average by 800 tickets
over last year, by listening to consumer feedback.16
Noise
The final element in the communication process is noise. Unfortunately, there is
no such thing as perfect communication because of noise, or interference, in the
communications process. Interference may occur at any point along the channel of
communication. For example, the source may be ineffective, the message may be
sent through the wrong medium, or there may be too many competing messages,
each “fighting” for the limited information-processing capacity of consumers.
When communicating through stadium signage, the obvious source of noise is the
game itself. Noise can even be present in the form of ambush marketing techniques,
where organizations attempt to confuse consumers and make them believe they
are officially affiliated with a sporting event when they are not. An excellent example
of how noise can affect the communication process is found in ambush marketing,
which will be explored in Chapter 11.
Sports marketers must realize that noise will always be present in the
communications process. By gaining a better understanding of the communications
process, factors contributing to noise can be examined and eliminated to a large
extent.
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Promotion planning
Armed with a working knowledge of the communications process, the sports marketer
is now ready to create an efficient promotion plan. Not unlike the strategic marketing
process, promotional plans come in all shapes and sizes but all share several common
elements. Our promotional planning document consists of four basic phases:
(1) identifying target market considerations, (2) setting promotional objectives, (3)
determining the promotional budget, and (4) developing the promotional mix.
Target market considerations

Promotional planning is not done in isolation. Instead, plans must rely heavily on
the objectives formulated in the strategic sports marketing process. The first step
to promotional planning is identifying target market considerations. During the
planning phase, target markets have been identified, and promotion planning should
reflect these previous decisions. Promotional planning depends largely on who is
identified as the primary target audience. One promotional strategy is based on
reaching the ultimate consumer of the sports product and is known as a pull strategy.
The other strategy identifies channel members as the most important target audience.
This strategic direction is termed a push strategy. These two basic strategies are
dependent on the chosen target of the promotional efforts and guide subsequent
planning. Let us explore the push and pull strategies in greater detail.
Push strategy
A push strategy is so named because of the emphasis on having channel
intermediaries “push” the sports product through the channel of distribution to the
final consumer. If a push strategy is used, intermediaries such as a manufacturer
might direct initial promotional efforts at a wholesaler, who then promotes the sports
product to the retailer. In turn, the retailers promote the sports product to the final
user. When using a push strategy, you are literally loading goods into the distribution
pipeline. The objective is to get as much product as possible into the warehouse
or store. Push strategies generally ignore the consumer. A variety of promotion
mix elements are still used with a push strategy, although personal selling is more
prevalent when promoting to channel members closer to the manufacturer (i.e.,
wholesalers) than the end users.
9
Pull strategy
The target audience for a pull strategy is not channel intermediaries but the ultimate
consumer. The broad objective of this type of promotional strategy is to stimulate
demand for the sports product, so much demand, in fact, that the channel members,
such as retailers, are forced to stock their shelves with the sports product. Because
the end user, or ultimate consumer, is the desired target for a pull strategy, the
promotion mix tends to emphasize advertising rather than personal selling. It is
important to note that because sports marketing is based largely on promoting
services rather than goods, pull strategies targeting the end user are more prevalent.
In pull strategies, your objective is to get consumers to pull the merchandise off
the shelf and out the door. For example, in the past, Sears Craftsman, through its
NASCAR relationships, planned to blitz consumers with discount opportunities for
a Father’s Day sales push. Craftsman was the official tool of NASCAR and the title
sponsor of NASCAR’s Truck Series dubbed “Craftsman Weekend at the Races.”
359
Coupons good for $10 off a purchase of $50 or more were distributed to fans at 38
races through the NASCAR Whelen All-American Series, a semi-professional and
amateur circuit on short tracks throughout the country. It was anticipated that the
company would distribute about 75,000 coupons at the events. Coupons had to be
used by June 17, Father’s Day.
In another example, Burger King signed a six-month, seven-figure agreement to
become Major League Soccer’s first official quick-service restaurant. Burger King
offered in-store and online promotion of a $100,000 sweepstakes, and also gave away
Burger King- and MLS-branded soccer balls and “Have It Your Way” gift cards valued
at $2.
Although pull strategies are more common in sports marketing, the most effective
promotion planning integrates both push and pull components. For example,
marketing giant Procter & Gamble’s (P&G) objective was to stimulate consumer
demand for its Sunny Delight and Hawaiian Punch brands. To do so, P&G designed
a promotion featuring the late UCLA basketball coach John Wooden and one of his
former star players, Bill Walton. The pull strategy offered consumers a Wooden and
Walton autographed picture and coin set for $19.95 and proof-of-purchase. The push
promotional strategy was directed at Sunny Delight and Hawaiian Punch distributors
and retailers who carried the P&G brands. If the “trade” reached their performance
goals during the promotion, they earned a framed picture of Walton and Wooden that
was autographed and personalized for the distributor.
Promotional objectives
After target markets have been identified, the next step in the promotion planning
process is to define the promotional objectives. Broadly, the three goals of
promotion are to inform, persuade, and remind target audiences. Consumers must
first be made aware of the product and how it might satisfy their needs. The goal
of providing information to consumers is usually desired when products are in the
introductory phase of the product life cycle (PLC). Once consumers are aware of
the sports product, promotional goals then turn to persuasion and convincing the
consumer to purchase the product. After initial purchase and satisfaction with a given
product, the broad promotional goal is then to remind the consumer of the sports
product’s availability and perceived benefits.
Informing, persuading, and reminding consumers are the broad objectives of
promotion, but the ultimate promotional objective is to induce action. These consumer
actions might include volunteering to help with a local 10k race, donating money to
the U.S. Olympic Team, purchasing a new pair of in-line skates, or just attending a
sporting event they have never seen. Marketers believe promotions guide consumers
through a series of steps to reach this ultimate objective – action. This series of
steps is known as the hierarchy of effects (also sometimes called the hierarchy of
communication effect).
The hierarchy of effects

The hierarchy of effects is a seven-step process by which consumers are ultimately
led to action.17
The seven steps include unawareness, awareness, knowledge, liking, preference,
conviction, and action. As shown in Figure 9.2, consumers pass through each of these
steps before taking action.
360
Action
Conviction
Preference
Liking
Knowledge
Awareness
Unawareness
Figure 9.2 Hierarchy of effects
9
Photo 9.1 Having greater knowledge of sports such as hockey moves consumers
through the hierarchy of effects.
Source: Shutterstock
X Unawareness – During the first step, consumers are not even aware the sports
product exists. Obviously, the promotional objective at this stage is to move
consumers toward awareness. Awareness may occur in a variety of ways and
helps expose a consumer to the products, however, it is important to note that
consumption cannot occur if a consumer is unaware of the product.
X Awareness – The promotional objective at this early stage of the hierarchy is to
make consumers in the desired target market aware of the new sports product. To
reach this objective, a variety of promotional tools are used.
X Knowledge – Once consumers are aware of the sports product, they need
to gather information about its tangible and intangible benefits. The primary
promotional objective at this stage is to provide consumers with the necessary
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product information. For instance, the NHL.com Web site has a link called the
Learning Center, which is designed to give youth players tips on how to play the
game. Similarly, Major League Baseball has a Baseball Basics: On the Field link on
its Web page (see: http://mlb.mlb.com/mlb/official_info/baseball_basics/on_the_
field.jsp) targeting international fans of the game. Another example of creating and
enhancing knowledge is the proliferation of classes called Football 101 targeted
toward women and novice fans. Football 101 primers have been held at the Super
Bowl Fan Experiences, various NFL and college football game day events, and
even been offered in Spanish to accommodate all fans. Teams and organizers hope
that once the fans become more knowledgeable, they will then move to the next
level of the hierarchy – liking.
X Liking – Having knowledge and information about a sports product does not
necessarily mean the consumer will like it. Generating positive feelings and
interest regarding the sports product is the next promotional objective on the
hierarchy. The promotion itself cannot cause the consumer to like the product,
but research has shown the linkage between attitude toward the promotion (e.g.,
advertisement) and attitude toward the product.18 The objective is to create a
feeling of goodwill toward the product via the promotion.
X Preference – After consumers begin to like the sports product, the objective
is to develop preferences. As such, sports marketers must differentiate their
product from the competition through promotion. The sports product’s differential
advantage may be found in an enhanced image and tangible product features.
X Conviction – Moving up the hierarchy of effects, consumers must develop a
conviction or intention to take action. Behavioral intention, however, does not
guarantee action. Factors such as the consumer’s economic condition (i.e.,
financial situation), changing needs, or availability of new alternatives may inhibit
the action from ever taking place. The objective of the conviction step of the
hierarchy of effects is to create a desire to act in the mind of the target audience.
X Action – The final stage of the hierarchy, and the ultimate objective of any
promotion, is to have consumers act. As stated previously, actions may come in a
variety of forms, but usually include purchase or attendance.
Theoretically, the hierarchy of effects model states that consumers must pass through
each stage in the hierarchy before a decision is made regarding purchase (or other
behaviors). Some marketers have argued this is not always the case. Consider, for
instance, purchasing season tickets to a professional sport for business purposes. The
purchaser does not have to like the sport or team to take action and buy the tickets.
Regardless of what the hierarchy of effects proposes to do or not do, the fact remains
that it is an excellent tool to use when developing promotional objectives. Knowing
where the target audience is on the hierarchy is critical to formulating the proper
objectives.
Establishing promotional budgets

Global advertising expenditures continue to see steady growth. According to figures
provided by ZenithOptimedia, global advertising expenditures were on track to
grow 5.5 percent in 2014, to $537 billion.19 Furthermore, these expenditures are
expected to grow by 5.8 percent in 2015 and 6.1 percent in 2016. Total advertising
spending in the United States is predicted to reach $191 billion in 2016, accounting
for nearly one-third of all global expenditures. China (9.5 percent), Japan (9.4 percent),
Germany (4.0 percent), and the UK (3.9 percent) round out the top five countries in
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global advertising expenditures. Television is predicted to retain the largest share of
advertising expenditures accounting for approximately 39.2 percent, followed by the
Internet (27.1 percent), newspapers (13.7 percent), magazines (6.4 percent), outdoor
(6.8 percent), radio (6.3 percent), and cinema (0.5 percent).20 As marketers continue to
shift budgets towards targeted, digital media, ZenithOptimedia predicts that Internet
advertising will increase its share of the advertising market from 20.7 percent in 2013
to 27.1 percent in 2016, while newspapers and magazines will continue to shrink at an
average of 1–2 percent per year.21
Over the past several years, this growth, in part, has been attributed to a surge in
digital spending and continued success across televised platforms, further enhancing
opportunities surrounding events such as the Olympic Games. NBC estimated that it
would generate billions in revenue for Olympic advertisement spots. In fact, over the
past several years TV ad expenditures have increased for most sports with tennis and
NASCAR experiencing the greatest percentage increases in spending. The NFL and
NCAA football are still king, contributing more than one-half of the dollar volume gain.22
As shown in Table 9.4, the companies that lead the way in ad spending for sports are
makers of beer, telecommunications, and cars with Verizon Wireless, Anheuser-Busch,
AT&T Mobility, Ford, Toyota, and Chevrolet at the top of the marketing industry.
In today’s environment, digital screens are a critical part of the sport marketing mix
and the following landmark figures speak to that irrefutable fact. For example, digital
advertising expenditures in the United States are predicted to reach $61 billion by
2017, as ad spending gradually shifts to mobile devices.23 Today’s ads are more
complex and engaging, enabling innovative new targeting and rich media strategies
that stand poised to offer ever-increasing, targeted value to sports fans, and better
returns on investment for marketers. A variety of different industries and organizations
are increasingly investing in mobile and Internet ad platforms. Therefore, it’s not just
sports putting up big numbers. In fact, sports are one of four verticals outside of the
overall Top 10 that have experienced triple-digit growth in the past year. However,
sports experienced the most dramatic growth, increasing a whopping 489 percent
year-over-year compared with 2012 data.24
As Frank Weishaupt, SVP of Global Revenue for Millennia Media states, “if the
sports vertical were an athlete, we’d accuse him of juicing with that kind of statistical
improvement in just one year.”25 While some experts may emphasize that the 9
Olympics and the FIFA World Cup may have fueled much of that bump, the upward
trend is projected to continue and it’s more likely to be attributed as by-product of the
ability to watch almost every pro sport on your mobile device. For example, leading up
to the 2014 Super Bowl, the NFL reported seeing a 33 percent increase in the number
of fans watching digital video and growth in mobile viewership.26 Mobile has definitely
changed the way we follow our favorite teams. This is not surprising given that the
largest viewership times on online videos are tilted towards sports.
Global sporting events such as the Olympics and the FIFA World Cup are big
attractions for advertisers and sport appears to be a perfect vehicle to help advertising
mediums, especially the digital platforms utilizing Internet and mobile devices, to
finally reach their potential. The continued growth in smartphone penetration, faster
network speeds, and humanity’s love of watching sport have created a perfect melting
pot for sport to showcase digital marketing’s true potential for marketers. According
to Adam French, author of “Sport and the Marketing Revolution” (2013),27 this melting
pot exists for three primary reasons: (1) Sport = engagement: Marketers of sports
properties are working with a market filled with fans – highly passionate, energized,
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Table 9.4 Top 50 sports advertisers (ranked by total sports ad spending in 2011)
2011 Company/ 2011 sports ad 2011 total ad % of ad Change Change

rank brand spending spending spending in sports in sports
(2010 devoted spending spending
rank) to sports vs. 2010 vs. 2009
1 (3) Verizon $345,438,719 $1,523,982,375 22.7% 11.4% 140.1%
2 (2) Anheuser- $299,721,969 $456,239,625 65.7% –15.9% –3.8%
Busch
3 (1) AT&T $296,940,250 $1,310,781,500 22.7% –18.9% 164.4%
Mobility
4 (4) Ford $263,507,645 $1,371,668,594 19.2% –13.6% 16.0%
5 (6) Chevrolet $249,866,151 $1,029,529,844 24.3% 14.6% 149.9%
6 (5) Toyota $218,603,617 $1,067,944,875 20.5% –8.9% 17.5%
7 (8) MillerCoors $203,025,062 $360,294,438 56.3% –5.3% –10.4%
8 (10) Sprint $171,090,500 $558,439,000 30.6% –4.5% –14.6%
9 (15) Southwest $165,499,688 $240,861,062 68.7% 126.0% 128.6%
Airlines
10 (7) Geico Direct $163,494,641 $766,306,750 21.3% –24.6% –4.1%
11 (12) Nissan $153,167,485 $577,850,691 26.5% –4.9% 196.9%
12 (11) DirecTV $137,980,781 $356,739,531 38.7% –21.3% –18.1%
13 (9) McDonald’s $127,131,258 $996,054,375 12.8% –37.3% –18.4%
14 (16) State Farm $125,383,266 $523,524,906 23.9% –3.1% 17.7%
15 (14) Warner $123,810,031 $652,460,688 19.0% –10.7% 111.9%
Bros. Ent.
16 (19) Lexus $120,587,471 $323,716,125 37.3% –3.5% NA
17 (25) Mercedes- $101,405,853 $287,888,226 35.2% –6.9% 156.1%
Benz
18 (NR) Chrysler $96,888,814 $405,599,655 23.9% NA NA
19 (18) Subway $96,174,164 $513,575,031 18.7% –23.3% –2.8%
20 (23) Apple $95,068,961 $338,849,031 28.1% –14.0% 10.6%
21 (29) Honda $94,147,979 $630,150,868 14.9% –5.8% 130.4%
22 (41) Volkswagen $93,320,194 $387,565,754 24.1% 129.5% 181.9%
23 (28) Hyundai $88,229,366 $517,189,031 17.1% –12.5% 13.3%
24 (13) Coca-Cola $86,550,656 $239,212,750 36.2% –40.2% 16.4%
25 (38) Capital One $85,617,227 $339,769,281 25.2% –9.7% 192.1%
Bank
26 (46) Audi $85,517,109 $252,945,844 33.8% 133.0% 1131.1%
27 (34) T-Mobile $84,826,672 $454,587,062 18.7% –2.3% 153.0%
28 (20) Taco Bell $84,553,133 $253,149,594 33.4% –29.3% –25.5%
29 (30) Pfizer $83,297,672 $628,068,438 13.3% –14.2% –35.7%
30 (37) Universal $73,726,648 $406,595,625 18.1% –8.1% 118.6%
Pictures
31 (32) Lowe’s $73,050,992 $347,208,656 21.0% –19.1% –28.9%
32 (36) Allstate $71,715,031 $398,728,812 18.0% –14.7% 161.5%
33 (17) NFL $70,758,070 $90,372,641 78.3% –43.7% –9.5%
34 (76) JPMorgan $70,541,906 $534,394,750 13.2% 162.8% 187.9%
Chase
35 (67) Cadillac $67,500,812 $269,792,774 25.0% 141.1% 125.5%
36 (21) Microsoft $67,184,438 $352,056,812 19.1% –43.5% –27.9%
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2011 Company/ 2011 sports 2011 total ad % of ad Change Change

rank brand ad spending spending spending in sports in sports
(2010 devoted spending spending
rank) to sports vs. 2010 vs. 2009
37 (50) Paramount Pictures $64,470,188 $500,229,594 12.9% 113.0% 1124.8%
38 (97) Buick $64,464,672 $214,317,129 30.1% 1104.6% 1306.9%
39 (27) GMC Trucks $63,860,890 $193,170,317 33.1% –39.7% –28.9%
40 (61) Jeep $63,280,872 $328,192,018 19.3% 125.8% 1125.2%
41 (40) Home Depot $63,227,402 $434,258,188 14.6% –14.8% –7.2%
42 (24) Dodge $61,824,470 $339,502,712 18.2% –43.3% –29.3%
43 (72) Best Buy $60,000,355 $280,021,406 21.4% 131.8% 178.8%
44 (47) Unilever $59,547,223 $322,485,812 18.5% –6.4% 121.9%
45 (35) Burger King $58,906,398 $272,637,781 21.6% –31.5% –21.6%
46 (42) Pizza Hut $58,641,305 $233,514,531 25.1% –13.7% 142.6%
47 (NR) Ram $58,501,131 $269,079,493 21.7% NA NA
48 (44) E*Trade Securities $57,757,773 $128,684,812 44.9% –14.6% 147.4%
49 (45) Acura $56,203,571 $209,607,530 26.8% –14.9% 112.1%
50 (48) AT&T Inc. $55,336,977 $437,700,125 12.6% –12.4% 14.6%
Source: Sports Business Journal
and engaged people rallying around a particular team, individual, or group. French
adds that fans are highly passionate and invest their emotions, time, and money into
supporting a team, contending that this passion manifests itself in a disproportionate
interest in everything connected to that team, including advertising. (2) Sport consists
of easily definable segments: Leagues and competitions very neatly split markets.
Sport segments consist of a group loosely defined as “people with an active interest,”
and there is a very clear set of large segments within that, split neatly across team
loyalty. French noted that the ease of basic segmentation pairs nicely with new digital
targeting techniques such as contextual and geographic targeting. (3) Value utilization
in second screening: In today’s environment consumers utilizing a second screen
while they watch sport is commonplace and with the onslaught of 4G networks,
9
more fans will be able to watch sport on their mobile, representing another fantastic
opportunity. French adds that the statistics, player data, and social banter inherent
in most sports make sport a perfect use case for second screening. Collectively,
these innovative new targeting and rich media mobile platforms stand poised to offer
ever-increasing, targeted value to sports fans, and better returns on investment for
marketers, in turn enriching fan experiences.
The NFL generates billions of dollars in revenue yearly and these interests are tied
with many other large powerful companies. Companies such as Anheuser-Busch,
Sprint, and Barclays, among others, who invested $2.5 billion in ad spending, are
concerned what their return on investment will be when leagues are presented with
the prospect of cancellation due to a lockout or strike. Though the people who are
going to be hurt the most are the fans and the viewers, this interruption of play is a
concern for all advertisers.28
In addition to companies spending huge dollars on sports advertising, teams and
leagues are constantly promoting the sport. For instance, the NHL released the poorly
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reviewed “Game On” campaign after the strike season, MLB is still trying to capture
fans with the “I Live for This” campaign, and the NBA is still using the classic “I Love
This Game” promotion. In the case of the NHL, increases in advertising were needed
to make potential fans more knowledgeable about and able to appreciate hockey.
Major League Baseball wanted to stress the passion that their players have for the
game and generate the same passion in their fans. In all cases, teams and leagues are
advertising to keep up with the tremendous competitive threat of other entertainment
choices for the fans.
In theory, the promotional budget of the NHL or the NBA would be determined based
on the many objectives set forth by the leagues’ marketing strategy. In practice,
promotional budgeting is an interactive and unscientific process by which the
sports marketer determines the amount spent based on maximizing the monies
available. Some of the ways promotional budgets may be established include arbitrary
allocation, competitive parity, percentage of sales, and the objective and task method.
Arbitrary allocation
The simplest, yet most unsystematic, approach to determining promotional
budgets is called arbitrary allocation. Using this method, sports marketers set
the budget in isolation of other critical factors. For example, the sports marketer
disregards last year’s promotional budget and its effectiveness, what competitors
are doing, the economy, and current strategic objectives and budgets using some
subjective method. The budget is usually determined by allocating all the money the
organization can afford. In other words, promotional budgets are established after
the organizations’ other costs are considered. A sports organization that chooses this
approach does not place much emphasis on promotional planning.
Competitive parity
Setting promotional budgets based on what competitors are spending (competitive
parity) is often used for certain product categories in sports marketing. For example,
the athletic shoe industry closely monitors what the competition is doing in the way
of advertising efforts. Adidas has an annual budget of roughly $20.09 billion29 of which
approximately 11.6 percent is spent on advertising and marketing. New player to the
shoe market Under Armour’s annual budget is $2.33 billion which includes footwear
revenues of $299 million and a marketing expense of 11.27 percent;30 Puma’s budget
is $4.44 billion,31 with approximately 18.2 percent spent on marketing/retail; and Asics
has a budget of $2.5 billion.32 Other contenders such as Brooks have budgets of less
than $500 million.33 In fact Brooks Sports CEO Jim Weber noted that Nike will spend
more by noon today than they will spend on marketing in a whole year.34
Competitively, these entities race to keep pace with Nike’s promotional spending
if they intend to increase market share. Nike, whose annual budget consists of
roughly $25.3 billion in revenue, 11 percent ($2.75 billion) of which is spent on
“demand creation,” a marketing label used to categorize expenditures which consist
of advertising, promotion, and the cost of endorsement contracts with athletes, is
the current market leader.35 In fact, according to Matt Powell, Nike spends about
$2.8 billion on marketing per year, equating to approximately $8 million a day, some
$300,000 per hour or $100 per second.36
One athletic shoe company that does not follow its competitors’ huge promotional
spending is New Balance. New Balance has begun to gear towards a more
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conventional route for advertising. New Balance is going to begin advertising with TV,
print, digital advertising, online communities, and viral video content as well as in-store
and event exposure. New Balance had $2.39 billion in sales,37 spending $14.4 million
on marketing and advertising in 2012.38 Instead of using famous athletes, New Balance
has paved its success by understanding its primary consumer, the 35–59-year-old baby
boomer. Rather than paying celebrities to endorse its products, they prefer to invest in
research, design, and domestic manufacturing. This unique positioning was illustrated
in a campaign by New Balance with creative advertisements based on weather
conditions and the necessary New Balance gear for each condition, in addition to New
Balance’s Web page stating “When function, design, and aesthetics unite”.39
Percentage of sales
The percentage of sales method of promotional budget allocation is based on
determining some standard percentage of promotional spending and applying this
proportion to either past or forecasted sales to arrive at the amount to be spent. It is
common for the percentage to be used on promotional spending to be derived from
some industry standard. For example, the athletic shoe industry typically allocates 5
percent of sales to promotional spending. Therefore, if a new athletic shoe company
enters the market and projects sales of $1 million, then they would allocate $50,000
to the promotional budget. Likewise, if Converse, a subsidiary of Nike Inc. since 2003,
totaled $1.45 billion in sales in the previous year, then it might budget $72.5 million to
next year’s promotional budget.
Although the percentage of sales method of budgeting is simple to use, it has a
number of shortcomings. First, if percentage of forecast sales is used to arrive at a
promotional budget figure, then the sales projections must be made with a certain
degree of precision and confidence. If historical sales figures (e.g., last year’s) are
used, then promotional spending may be either too high or too low. For example,
if New Balance has a poor year in sales, then the absolute promotional spending
would be decreased. This, in turn, could cause sales to slide even further. With sales
declining, it may be more appropriate to increase (rather than decrease) promotional
spending. A second major shortcoming of using this method is the notion that budget
is very loosely, if at all, tied to the promotional objectives.
9
Objective and task method
If arbitrary allocation is the most illogical of the budgeting methods, then objective
and task methods could be characterized as the most logical and systematic. The
objective and task method identifies the promotional objectives, defines the
communications tools and tasks needed to meet those objectives, and then adds up
the costs of the planned activities.
Although the objective and task method seems the most reasonable, it also assumes
the objectives have been determined correctly and the proper promotional mix has
been formulated to reach those objectives. For instance, suppose the Vanderbilt
University women’s basketball team wanted to achieve an attendance increase
of 15 percent from the previous season. To this end, the director of marketing for
athletics must develop a promotional mix that includes local advertising, related sales
promotions, and public relations in an effort to reach all target audiences. Even if the
attendance goal is achieved, it is difficult to determine whether the money required to
achieve this objective was spent in the most efficient and effective fashion.
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Choosing an integrated promotional mix

The final step in building an overall promotional plan is to determine the appropriate
promotional mix. As stated earlier, the traditional promotional mix consists of
advertising, personal selling, public relations, and sales promotions. The sports
marketing manager must determine which aspects of the promotional mix will be best
suited to achieve the promotional objectives at the given budget.
In choosing from among the traditional elements, the sports marketer may want
to broadly explore the advantages and disadvantages of each promotional tool. For
example, personal selling may be the most effective way to promote the sale of
personal seat licenses, but it is limited in reaching large audiences. Table 9.5 outlines
some of the considerations when deciding on the correct mix of promotional tools.
Although the factors listed in Table 9.5 are important determinants of which
promotional tools to use to achieve the desired objectives, there are other
considerations. The stage of the life cycle for the sport product, the type of
sports product, the characteristics of the target audience, and the current market
environment must also be carefully studied. Whatever the promotion mix decision, it
is critical that the various elements be integrated carefully.
Promotional planning for sports is becoming increasingly more complex. With the
rapid changes in technology, new promotional tools are being used to convey the
sports marketer’s message. In addition, it is becoming harder and harder to capture
the attention of target audiences and move them along the hierarchy of effects.
Because of the growing difficulty in reaching diverse target audiences, the clarity and
coordination of integrating all marketing communications into a single theme is more
important than ever.
The concept under which a sports organization carefully integrates and coordinates its
many promotional mix elements to deliver a unified message about the organization
and its products is known as integrated marketing communications. Think for a
moment about the promotional efforts of the WNBA. The promotional goals are to
increase awareness and develop excitement about the league. To accomplish this,
the WNBA will combine national advertisements, sponsorships, cable and network
broadcast schedules, and tie-ins with the NBA. All of these communications media
must deliver a consistent message that produces a uniform image for the league to be
successful. Not only must the WNBA deliver an integrated promotional mix, but the
league’s sponsors and the 12 teams must also transmit a unified message.
Table 9.5 Evaluating the promotional mix elements
Promotional Tools
Advertising Personal Selling Sales Promotion Public Relations
Sender’s control over the Low High Moderate to low Moderate to low
communication
Amount of feedback Little Much Little to moderate Little
Speed of feedback Delayed Immediate Varies Delayed
Direction of message flow One way Two way One way One way
Speed in reaching large Fast Slow Fast Typically fast
audiences
Message flexibility None Customized None Some
Mode of communication Indirect and Direct and face Usually indirect Usually indirect
impersonal to face and impersonal and impersonal
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The primary advantage of integrating the promotional plan includes more effective
and efficient marketing communications. Unfortunately, determining the return on
investment (ROI) for an integrated promotion plan is still difficult, if not impossible.
Professor Don Schultz has identified four types of information that must be available
to begin to measure ROI for integrated communications.40 These factors include the
following:
X Identification of specific customers – Identification of specific households,
including information on the composition of those households to make inferences.
X Customer valuation – Placing a value on each household based on either annual
purchases or lifetime purchases. Without this information on the purchase
behavior of the household or individual, the calculation of ROI is of limited value to
the marketer.
X Track message delivery – Understanding what media consumers or households
use to make their purchase decisions, and how a household receives information
and messages over time. In addition, this involves measuring “brand contacts” or
when and where consumers come into contact with the brand.
X Consumer response – To establish the best ROI, behavioral responses are
captured. In other words, consumer responses such as attitudes, feelings, and
memory are deemed unimportant and purchases, inquiries, and related behaviors
(e.g., coupon redemption) are evaluated.
Summary might be an athlete endorser, team

members, a sports organization, or even
Promotional planning is one of the
a coach. Sometimes the source of a
most important elements of the sports
marketing message can be friends or
marketing mix. Promotion involves
family. The effectiveness of the source in
communicating to all types of sports
influencing consumers is based largely on
consumers via one or more of the
the concept of source credibility. Credibility
promotion mix elements. The promotion
is typically defined as the expertise and
mix elements include advertising,
trustworthiness of the source. Other
personal selling, sales promotions, public
characteristics of the source, such as
relations, and sponsorship. Within each
of these promotion mix elements are
more specialized tools to communicate
gender, attractiveness, familiarity, and
likeability may also play important roles in
9
determining the source’s effectiveness.
with consumers of sport. For example,
advertising may be developed for print After the source of the message is
media (e.g., newspapers and magazines) chosen, message encoding occurs.
or broadcasts (e.g., radio and television). Encoding is defined as translating
However, regardless of the promotion the sender’s thoughts or ideas into a
mix element that is used by sports message. The most effective encoding
marketers, the fundamental process at uses multiple ways of getting the
work is communication. message across and always keeps the
receiver of the message in mind. Once
Communication is an interactive process
encoding takes place, the message is
established between the sender and
more completely developed. Although
the receiver of the marketing message
there are any number of ways of
via some medium. The process of
constructing a message, sports
communication begins with the source
marketers commonly choose between
or sender of the message. In sports
emotion (e.g., humor, sex, or fear) and
marketing, the source of the message
rational (information-based) appeals.
369
The message, once constructed, must planning phase of the strategic sports
be transmitted to the target audience marketing process. The two broad
through any number of media. The target market considerations are the
traditional media include television, final consumers of the sports product
radio, newspapers, magazines, outdoor (either spectator or participants) or
billboards, and stadium signage. intermediaries, such as sponsors or
Nontraditional media, such as the distributors of sports products. When
Internet, are also emerging as powerful communicating to final consumers, a
tools for sports marketers. When making pull strategy is used. Conversely, push
decisions about what medium to use, strategies are used to promote through
marketers must consider the promotional intermediaries. After target markets are
objectives, cost, ability to reach the considered, promotional objectives are
targeted audience, and the nature of the defined. Broadly, objectives may include
message being communicated. informing, persuading, or reminding the
The medium relays the message to the target market. One model that provides
target audience, which is where decoding a basis for establishing promotional
occurs. Decoding is the interpretation of objectives is known as the hierarchy of
the message sent by the source through effects, which states that consumers
the medium. It is important to understand must pass through a series of stages
the characteristics of the target audience before ultimately taking action (usually
to ensure successful translation of the defined as making a purchase decision).
message will occur. Rarely, if ever, will The steps of the hierarchy of effects
perfect decoding take place because of include unawareness, awareness,
the presence of noise. knowledge, liking, preference, conviction,
and action. Once objectives have been
The final elements in the communications
formulated, budgets are considered. In
model are the receiver and feedback. The
the ideal scenario, budgets are linked
message is directed to the receiver, or
with the objectives that have been set
target audience. Again, depending on the
in the previous phase of the promotion
purpose of the communication, the target
planning process. However, other
audience may be spectators, participants,
common approaches to promotional
or corporate sponsors. Regardless of
budgeting include arbitrary allocation,
the nature of the audience, the sports
competitive parity, and percentage of
marketer must understand as much as
sales. Most sports organizations use
possible about the characteristics of the
some combination of these methods
group to ensure an effective message is
to arrive at budgets. The final phase in
produced. Sports marketers determine
the promotion planning process is to
the effectiveness of the message through
arrive at the optimal promotion mix.
feedback from the target audience.
The promotion mix includes advertising,
Understanding the communications personal selling, public relations, sales
process provides us with the basis for promotion, and sponsorship. Decisions
developing a sound promotional plan. The about the most effective promotion
promotional planning process includes mix must carefully consider the current
identifying target market considerations, marketing environment, the sports
setting promotional objectives, product being promoted, and the
determining the promotional budget, and characteristics of the target audience.
developing the promotional mix. Ideally, the sports marketer designs an
The first step in the promotional integrated promotion mix that delivers
planning process is to consider the a consistent message about the
target market identified in the previous organization and its products.
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Key terms X encoding X promotion mix

X feedback elements
X arbitrary allocation X hierarchy of effects X promotional budgeting
X communication X integrated marketing X promotional objectives
X comparative messages communications X promotional planning
X competitive parity X match-up hypothesis X pull strategy
X credibility X medium X push strategy
X decoding X message X receiver
X easily defined X message X second screening
segments characteristics X sidedness
X elements in the X noise X source
communications X objective and task X target market
process method considerations
X emotional versus X percentage of sales
rational appeal X promotion
Review questions difference between a push and a pull

strategy?
1. Define promotion and then 10. Describe the three broad objectives
discuss each of the promotion mix of any type of promotion. What is
elements. the hierarchy of effect, and how is
2. Describe the elements of the this concept related to promotional
communication process. Why is objectives?
communication so important for 11. What are the various ways of setting
sports marketers? What is the promotional budgets? Comment on
relationship between communication the strengths and weaknesses of
and promotion? each.
3. Define the source of a sports 12. Comment on how you would choose
marketing message and provide among the various promotion mix
some examples of effective sources. tools. Define integrated marketing
What is source credibility? What communication.
are the two components of source
credibility?
4. What is meant by encoding? Who
Exercises 9
is responsible for encoding sports 1. Evaluate the promotional mix
marketing messages? used for the marketing of any
5. Discuss the various message intercollegiate women’s sport at
characteristics. What are the simple your university. Do you believe
techniques used to create more the proper blend of promotional
effective messages? tools are being used? What
6. Why is television considered the could be done to make the
most powerful medium for sports promotional plan more effective for
marketing messages? this sport?
7. Define feedback. How is feedback 2. Find any advertisement for a
delivered to the source of the sports product. Then describe and
message? explain each of the elements in the
8. Outline the basic steps in promotion communications process for that
planning. ad. Do the same (i.e., explain the
9. What is the fundamental communications process) for the
371
following scenario: A salesperson whether or not this organization
is trying to sell stadium signage to practices integrated marketing
the marketing director of a local communications.
hospital.
3. Conduct an interview with the Endnotes
marketing department of a local 1 Allen Bush, “Sports Celebrity Influence on
sports organization and discuss the Behavioral Intentions of Generation Y,”
the role of each of the promotional Journal of Advertising Research, vol. 44, no.
tools in the organization’s promotion 1 (2004), 108–118.
2 Kurt Badenhausen, “Mayweather Tops List
mix. In addition, ask about their of The World’s 100 Highest-Paid Athletes,”
promotional budgeting process. Forbes.com (June 28, 2012), accessed
4. Describe three television March 9, 2014.
advertisements for sports products 3 Kurt Badenhausen, “The World’s Highest-
Paid Athletes 2013: Behind the Numbers,”
that are designed to inform, Forbes.com (June 5, 2013). Available
persuade, and remind consumers. from: http://www.forbes.com/sites/
Do you believe the advertisements kurtbadenhausen/2013/06/05/the-worlds-
are effective in reaching their highest-paid-athletes-2013-behind-the-
numbers/.
promotional objectives? 4 “LeBron James Net Worth, Salary,
5. Locate advertisements for three Endorsements,” Celebrity Networth.
different sports products. Comment Available from: http://celebnetworth.org/
on which response in the hierarchy lebron-james-net-worth-salary.
5 Michael Kamins, “An Investigation into
of effects you believe each the Match-Up Hypothesis in Celebrity
advertisement is trying to elicit from Advertising: When Beauty May Be Only Skin
its target audience. Deep,” Journal of Advertising, vol. 19, no. 1
6. Find an example of a comparative (1990), 4–13.
6 Christy Kilmartin, “Insights into Adidas’ New
advertisement. What do you ‘All-in’ Campaign – ‘We Run All’”, Adidas
believe are the advantages and Group Blog (March 29, 2012). Available
disadvantages of this type of from: http://blog.adidas-group.com/2012/03/
message? insights-into-adidas%E2%80%99-new-all-
in-campaign-we-all-run/, accessed March 9,
2014.
Internet exercises 7 Ibid.
8 Adidas Group, Performance Counts
1. Using the Internet, find an example Sustainability Progress Report 2011, Adidas-
of an advertisement for a sports group.com, accessed March 9, 2014.
9 Michael Santo, “Adidas to Launch Biggest
product and a sports-related sales Ever Marketing Campaign With a New
promotion. For each, discuss the Slogan,” Huliq.com (March 15, 2011).
targeted audience, the promotional Available from: http:// http://www.huliq.
objectives, and the message com/3257/adidas-launch-all-adidas-2011-
global-marketing-campaign-its-biggest-
characteristics. ever.
2. How do organizations get feedback 10 Martha Irvin, “If Not on Point, Slang Can
regarding their promotions via the Make a Tight Campaign Sound Wack,” The
Internet? Find several examples Commercial Appeal (November 29, 2002),
C1.
of ways of providing sports 11 Nielsen Newswire, “Football TV Ratings
marketers with feedback about their Soar: The NFL’s Playbook for Success,”
promotions. Nielsen Newswire (January 28, 2011).
3. Consider any sports product and Available from: http://www.nielsen.com/us/
en/newswire/2011/football-tv-ratings-soar-
find evidence of advertising and the-nfls-playbook-for-success.html, accessed
sales promotion not on the Internet. June 22, 2014.
Then locate the product’s promotion 12 David Broughton, “Report Spotlights Female
on the Internet. Comment on Fans,” Sports Business Journal (October 14,
2013), accessed March 9, 2014.
372
13 Nielsen Newswire, “Super Bowl XLVIII Spend to Rise Sharply,” statista.com (August
Draws 111.5 Million Viewers, 25.3 Million 22, 2013). Available from: http://www.
Tweets,” Nielsen Newswire (February 3, statista.com/chart/1388/digital-ad-spend-in-
2014). Available from: http://www.nielsen. the-us/, accessed June 21, 2014.
com/us/en/newswire/2014/super-bowl-xlviii- 24 Frank Weishaupt, “Mobile ad Spend Increase
draws-111–5-million-viewers-25–3-million- Across Verticals,” Millennial Media (March
tweets.html, accessed June 20, 2014. 19, 2014). Available from: http://www.
14 Radio & Television Business Report, millennialmedia.com/blog/2014/03/mobile-
“Looking at the Football TV Ratings ad-spend-increases-across-verticals-yoy/,
Explosion,” Radio & Television accessed June 21, 2014.
Business Report (January 28, 2011). 25 Ibid.
Available from: http://rbr.com/ 26 Cynthia Boris, “Sports Goes for the Mobile
looking-at-the-football-tv-ratings-explosion/. Ad Gold with Near 500 Percent Growth in
15 Bill Sanders, “How Impact of ‘Tiger Spending,” MarketingPilgrim.com (March
Recession’ Changed Athlete Marketability,” 24, 2014). Available from: http://www.
Sports Business Journal (August 2, marketingpilgrim.com/2014/03/sports-
2010). Available from: http://www. goes-for-the-mobile-ad-gold-with-near-500-
sportsbusinessdaily.com/Journal/ perecent-growth-in-spending.html, accessed
Issues/2010/08/20100802/From-The-Field-Of/ June 21, 2014.
How-Impact-Of-Tiger-Recession-Changed- 27 Adam French, “Sport and the Marketing
Athlete-Marketability.aspx. Revolution,” Mobile Marketer (October
16 J. Alan Hayes, “Brooklyn Nets Seek Capacity 29, 2013). Available from: http://www.
Crowd,” Ticketnews.com (November mobilemarketer.com/cms/opinion/
14, 2012). Available from: http://www. columns/16469.html, accessed June 21,
ticketnews.com/news/brooklyn-nets-seek- 2014.
capacity-crowd-111214732. 28 Rich Thomaselli, “Over $12 Billion at Stake
17 Robert Lavidge and Gary Steiner, “A Model if NFL Lockout Prevents 2011 Season,”
for Predictive Measurements of Advertising Advertising Age (January 10, 2011).
Effectiveness,” Journal of Marketing, vol. 24 Available from: http://adage.com/article/
(1961), 59–62. news/12b-stake-nfl-lockout-prevents-2011-
18 Rajeev Batra and Michael Ray, “Affective season/148093/, accessed March 9, 2014.
Responses Mediating Acceptance of 29 Adidas AG Delivers Exceptional Fourth
Advertising,” Journal of Consumer Research, Quarter Results,” NASDAQ.com,
vol. 13 (September 1986), 236–239; Leon Globalnewswire, Adidas AG (March 5, 2014),
Shiffman and Leslie Kanuk, Consumer accessed March 10, 2014.
Behavior, 4th ed. (Upper Saddle River, NJ: 30 Jack Lambert, “Tidbits From Under Armour’s
Prentice Hall, 1996), 237–239. Annual Report,” Baltimore Business Journal,
19 ZenithOptimedia Executive Summary, bizjournals.com (February 25, 2013),
Advertising Expenditure Forecasts accessed March 10, 2014.
April 2014. Available from: http://www.
zenithoptimedia.com/wp-content/
uploads/2014/04/Adspend-forecasts-April-
2014-executive-summary.pdf, accessed June
31
32
Puma.com, Group Management Report For
Financial Year 2012, accessed March 10,
2014.
Kenji Hall, “Asics Wants More Than Runner’s
9
21, 2014. High,” Businessweek (February 26, 2008).
20 Ibid. Available from: http://www.businessweek.
21 Ingrid Lunden, “Internet Ad Spend to com/stories/2008–02–26/asics-wants-more-
Reach $121B in 2014, 23% of $537B than-runners-highbusinessweek-business-
Total Ad Spend, Ad Tech Boosts Display,” news-stock-market-and-financial-advice,
Techcrunch.com (April 7, 2014). Available accessed June 20, 2014.
from: http://techcrunch.com/2014/04/07/ 33 Kurt Badenhausen, “Brooks Running Shoes
internet-ad-spend-to-reach-121b-in-2014–23- Hit Their Stride,” Forbes.com (May 20,
of-537b-total-ad-spend-ad-tech-gives-display- 2013). Available from: http://www.forbes.
a-boost-over-search/, accessed June 21, com/sites/kurtbadenhausen/2013/05/20/
2014. brooks-running-shoes-hit-their-stride/,
22 Kantar Media, “Kantar Media Reports, accessed March 10, 2014.
U.S. Advertising Expenditures Increased 3 34 Ibid.
Percent in 2012,” Kantar Media (March 11, 35 Matthew Kish, “5 Fun Facts from Nike’s
2013). Available from: http://kantarmedia.us/ Annual Report,” Portland Business Journal,
press/kantar-media-reports-us-advertising- bizjournals.com (July 23, 2013), accessed
expenditures-increased-3-percent-2012, March 10, 2014.
accessed March 9, 2014. 36 Matt Powell, “How Much Does Nike
23 Felix Richter, “Mobile Share of Digital Ad Spend on Marketing,” theshoegame.
373
com (July 13, 2013). Available from: http:// “Purposeful Design and the Upcoming
theshoegame.com/articles/how-much-does- NB 890,” NB News Health & Fitness
nike-spend-on-marketing.html, accessed Report (Winter 2011). Available from:
March 10, 2014. http://www.aperfectdealer.com/
37 “New Balance Fact Sheet,” New Balance nbnews/2011/new_balance_nb890_
(March 2013). Available from: https://www3. running_shoes.html.
newbalance.com/on/demandware.static/ 40 Don Schultz, Stanley Tannenbaum, and
Sites-newbalance_us-Site/Sites-newbalance_ Robert Lauterborn, Integrated Marketing
us-Library/default/v1393572846066/pdf/ Communications: Putting It Together and
NB_Factsheet.pdf, accessed June 21, 2014. Making It Work (Lincolnwood, IL: NTC
38 Andrew Newman, “Campaign Redefines Publishing Group, 1992); Don Schultz,
Running as a Social Activity,” New York “Rethinking Marketing and Communications’
Times (July 8, 2013), accessed March 10, ROI,” Marketing News (December 2, 1996),
2014. 10; Don Schultz and Paul Wang, “Real World
39 NB News Health & Fitness Report, Results,” Marketing Tools (April–May 1994).
374
CHAPTER 10
Promotion mix
elements
• Describe each element of the promotion mix, in detail.
• Understand the basic process for designing a successful
advertising campaign.
• Discuss emerging forms of promotion.
• Outline the strategic selling process and explain why sports
marketing should use this process.
• Identify the various forms of promotion.
• Specify the importance of public or community relations to sports
marketers.
10 Promotion mix elements
The CoActive Marketing Group, one of America’s leading marketing agencies,
has helped design a variety of events, advertising campaigns, and promotions for
companies such as Nike and Hiram Walker. CoActive designed a unique sales
promotion for Hiram Walker to increase short-term sales of Canadian Club Classic (a
12-year-old whiskey). In this case, the promotion (called a premium) was a baseball
card signed by one of four Hall of Fame players, including Willie Stargell, Billy
Williams, Ernie Banks, and Brooks Robinson. With each purchase of a 750-ml bottle
of Canadian Club Classic, consumers were able to collect one card from the series of
cards.
In addition to the end users, Hiram Walker distributors were also involved in the sales
promotion. Distributors could win a customized shelf unit to display the set of baseball
cards and autographed baseballs. They could win these items for participating in the
promotion and selling the idea to their retailers. The prizes motivated distributors
to push cases into their retail accounts. By all accounts, the promotion was a huge
success. In fact, it was so well received that a second series of cards were issued. To
make the sales promotion work, personal selling was needed to secure the baseball
legends. Other forms of communication were also necessary to inform the Hiram
Walker distributors and consumers about the promotion.
Photo 10.1 Stadium signage – one of the first forms of promotion

376
CoActive has also been developing strategies for companies like Nike since 2004.
For example, CoActive worked with Nike to produce and manage sports events such
as the Nike World Basketball Festival as well as the Nike London 10k. For the World
Basketball Festival, CoActive transformed the historic Radio City Music Hall Stage into
an international exposition of athletes and entertainers.1 With well over 1,200 teens
in attendance, they transformed the stage into a basketball platform, then back into a
stage worthy of rap royalty Jay-Z, all within 45 minutes. The event was so successful
that they decided to implement an encore performance to send off the USA basketball
teams before the London Olympics.
The goal of the Nike 10k was to kick off Nike’s Olympic celebration. CoActive set out
to create a race as epic as it was personal. Garnering over 27,000 participants through
promotional mediums, CoActive enabled the runners the opportunity to run the streets
of London and greeted them with an array of personalized interactive experiences.2
The race exposed runners to enormous technical displays that personalized the feel
and environment so that each participant felt like a famous Olympic athlete.
As demonstrated in the Hiram Walker and Nike promotions, sports marketers must
carefully integrate the promotion mix elements to establish successful promotions to
consumers and trade. In Chapter 9, we explored the importance of communication
and the basic concepts of promotional planning. This chapter examines each of the
promotional mix elements in greater detail. By doing so, sports marketers will
be in a better position to choose the most effective promotional elements for the
construction of the promotional plan. Let us begin by looking at one of the most
widely used forms of promotion – advertising.
Advertising
Advertising remains one of the most visible and important marketing tools available
to sports marketers. Although significant changes are taking place in the way sports
products and services are advertised, the reasons for advertising remain the same.
Advertising creates and maintains brand awareness and brand loyalty. In addition,
advertising builds brand image and creates a distinct identity for sports products and
services. Most important, advertising directly affects consumer behavior. In other
words, it causes us to attend sporting events, buy that new pair of running shoes, or
watch the NCAA Women’s Basketball tournament on television.
Most of us associate the development of an advertisement with the creative process.
As you might imagine, advertising is more than a catchy jingle. To develop an effective
advertisement, a systematic process is employed. Some of the steps in this process
10
are very similar to the promotional planning process discussed in Chapter 9. This is not
unexpected, as advertising is just another form of communication, or promotional tool,
used by sports marketers.
The advertising process is commonly referred to as designing an advertising
campaign. An advertising campaign is a series of related advertisements that
communicate a common message to the target audience (see Figure 10.1). The
Ad Ad Creative Media Ad
objectives budget decisions strategy evaluation
Figure 10.1 Designing an advertising campaign

377
advertising campaign (similar to the promotional planning process) is initiated with
decisions about the objectives and budget. Next, creative decisions, such as the ad
appeal and execution, are developed. Following this, the media strategy is planned
and, finally, the advertising campaign is evaluated. Let us explore each of the steps in
designing an advertising campaign or the ad process in greater detail.
Advertising objectives
The first step in any advertising campaign is to examine the broader promotional
objectives and marketing goals. The overall objectives of the advertising campaign
should, of course, be consistent with the strategic direction of the sports organization.
The specific objectives and budgeting techniques for advertising are much the same
as those discussed in Chapter 9. Namely, advertising is designed to inform, persuade,
remind, and cause consumers in the target market to take action.3 In addition to these
broad objectives, advertising objectives are sometimes categorized as either direct
or indirect.
The purpose of direct objectives in advertising is to elicit a behavioral response from
the target audience. In sports marketing, this behavioral response may be in the form
of purchasing tickets to a game, buying sporting goods that were advertised on the
Internet, or even volunteering at a local event. Sometimes, an advertisement asks
consumers to make multiple behavioral responses – for instance, Danica Patrick is
used as a spokesperson to urge people to visit GoDaddy.com and has starred in
multiple Super Bowl commercials in which the viewers must visit GoDaddy.com to
view the end of the commercials.
Web 10.1 Cobra Golf using direct objective

Source: COBRA Golf
Direct advertising objectives can be further categorized into two distinct types:
advertising to end users and sales promotion advertising. However, both direct
response objectives are designed to induce action.
378
Advertising by sports organizations to end users

In this case, the objectives of advertising are not to enhance the perceived image of
the event, the team, or the league, but rather to generate immediate response. With
this type of objective, the sports marketer is attempting to build immediate sales. As
such, the specific objective of advertising to end users is usually stated in terms of
increasing sales volume.
Sales promotion advertising

It is common for contests, sweepstakes, coupons, and other forms of sales
promotions to be advertised via any number of media. As such, the objectives of
direct response advertisements are to have consumers participate in the contests and
sweepstakes or redeem coupons. Objectives, therefore, are measured in terms of the
level of participation in the sales promotion.
Web 10.2 Sales promotion advertised on the Web

Source: Upper Deck
Indirect objectives are based on establishing prebehavioral (i.e., prior to action)

responses to advertising; that is, accomplishing goals, such as increasing awareness,
enhancing image, improving attitudes, or educating consumers. These indirect
objectives should, in turn, lead to more direct behavioral responses. Consider
10
the ad for Bank of America promoting the fact that they are the “Official Bank of
Major League Baseball.” The ad goes on to describe “The story of baseball is an
important part of our American culture and our country’s passion for it exemplifies
our collective and enduring optimistic spirit and sense of community.” The objective
of this advertisement is solely to enhance the image of Bank of America through its
connection with baseball, the American pastime. Ultimately, the advertisement’s
sponsor hopes these indirect objectives will lead to the behavior response of securing
new customers and reminding existing customers to purchase more products and
services from Bank of America.
Indirect objectives, such as image enhancement, are always present to some extent
in advertising. Sports leagues, such as the NFL, use indirect advertising (Play 60 –
national youth health and fitness campaign) to generate awareness of the NFL and its
379
engagement in the community. In addition, these leagues often work with individual
teams to further enhance behavioral objectives such as the handful of teams who
participated in Major League Baseball’s Dog Day Games. At these special events,
ticketholders and their best friend sit in a designated section and can take part in
activities such as a pregame parade, a costume contest, special treats, and more.
Even better, many ballparks donate a portion of these ticket proceeds to local animal
charities.
Advertising budgeting
As with advertising objectives, budgeting methods for an ad campaign are largely
the same as those for other forms of promotion. For example, techniques such as
competitive parity, objective and task, and percentage of sales are again relevant
to advertising. Whatever the methods used, it is important to remember that
advertising budgeting should ideally stem from the objectives the advertising is
attempting to achieve. However, other factors, such as monies available, competitive
activity, and how the sports organization views the effectiveness of advertising,
should be kept in mind.
Creative decisions
After the objectives and the budget have been established, the creative process
becomes the focus of the advertising campaign or creative decisions. The
creative process has been defined as generating the ideas and the concept of
the advertisement. Advertising and sports marketing agencies hire individuals
who possess a great deal of creativity, but even the most innovative people use a
systematic process to harness their creativity.
To begin the creative process, most advertising agencies prepare a creative brief. The
purpose of any creative brief is to understand clients’ communication objectives so
the creative process will be maximized. The creative brief is a tool used to guide the
creative process toward a solution that will serve the interests of the client and their
customers. When used properly, the creative brief can be thought of as a marketing-
oriented approach to the design of an advertising campaign. Table 10.1 shows a
sample of the creative brief.
The three outcomes of the creative process are (1) identifying benefits of the sports
product, (2) designing the advertising appeal – what to say, and (3) developing the
advertising execution – how to say it. Each of these three elements in the creative
decision process is discussed.
Identifying benefits
Designing a distinctive advertising campaign involves identifying the key benefits
of the sports product. We have briefly discussed the importance of understanding
benefits in the context of segmenting consumer markets. As defined in Chapter 7,
benefits describe why consumers purchase a product or service or what problem the
product solves for the consumer. For advertising purposes, describing the benefits or
reasons why consumers should buy the sports product is a must. Marketing research
is used to understand the benefits desired or perceived by consumers who might use
or purchase the sports product.
380
Table 10.1 The creative brief and the client’s role in it
“The Creative Brief And The Client’s Role In It”

Every advertising agency has its own take on the “creative brief,” that most sacred of sacred ad
documents. And I’ve written passionately about how agencies might approach writing an inspiring
creative brief in my “Ideas Come From Inspiration, Not Information. Just Ask Lincoln” post on the
Ideasicle Blog.
But this isn’t an article about writing a brief (that’s the agency’s job). It’s about the client’s role in
getting to a great creative brief. Because without your understanding and appreciation of a few
important things, the brief has no chance of being brief or inspirational.
The Audience For The Creative Brief Is Not You
This is a critical one. The audience for the creative brief is the creative team. The writer and art director
working on coming up with the communications ideas, or in my case the four Ideasicle Experts working
on a project virtually. Think of the creative brief as an ad targeted to creative people with the call-to-
action being to come up with an idea. As such, there may be some swear words in it, some informal
language, and hopefully some passion. While you may see that kind of language as frivolous or even
insulting to the seriousness of your business, it’s the kind of language creative people pay attention to.
Everything Can’t Matter
Philosopher Blaise Pascal once said, “I have made this letter longer, because I have not had the
time to make it shorter.” He wrote that in 1657 in his ”LettresProvinciales.” And it’s a great lesson
in creative brief writing. No creative brief should ever be more than one page. Ever. And if it is, then
your agency isn’t done yet. Send it back. In fact, I would argue that the creative process begins with
the focusing energy inherent in a great creative brief. If the brief is 10 pages long the creative team
will hardly be inspired and may not read any of it. A great brief takes time. Time to sort through
the input you’ve carefully provided, time to think through what insights matter most, time to craft
the writing of the brief to eliminate all redundancies and be sure that, top to bottom, the brief tells
a story. So, if you briefed the agency with a PowerPoint deck, reams of consumer data, and piles
of sell-sheets on the product, only to see the agency come back with a one-page brief, don’t think
they didn’t listen. They did. Part of an agency’s value is when the account person and brand planner
helps you say “no” to what doesn’t matter, and “yes” to what does. It’s then your job to approve
those decisions (or not), move forward as a team, and then for you to sell those decisions into the
organization before anyone sees the resulting creative.
The Brief Is A Starting Point, Not The Answer
This notion cuts to the heart of the brief’s purpose, which is to inspire a great idea out of the creative
team. That resulting creative idea is “the answer.” So it’s important that we do not ask the brief to
be more than what it is. The “single most important thought” (or some such similar phrasing found
in most briefs), does not need to be headline quality. It merely needs to be smart, it needs to be the
culmination of the rest of the brief, and it needs to be singular. The creative teams will then tell us
how to say it, or be it, or whatever. But the brief is a means to an end, not an end. In fact, try this
trick. If an agency wants you to approve a creative brief and you’re uncomfortable with it, simply ask
the account person, “Are you confident that this brief will inspire a solution to our problem?” You
will get a beat or two of silence on the other end, but, by putting it back on your account lead, you
are sure to get a savage commitment to keep the creatives on track, if the answer is “yes.”
Really Want To Inspire Your Agency? Give Them Some Problems 10
Most agency people are creative. Not just the creative department, but the account people and
the brand planners, too. They are all problem solvers and enjoy the challenge of a juicy marketing
problem. Input from the client that starts with “How do we. . .?” instead of “Here’s what I want”
will bring out out the best in your agency team. It’s a little further up stream than you might be
comfortable with, but try it once in a while. Give your agency a whopper and see what they do for
you. Because doing so will prove to them that you trust them, you respect their talent, and you truly
consider them partners and not vendors. Too many clients dictate too much to their agencies. It’s like
going to a Wolfgang Puck restaurant and telling them you want a plain hamburger and fries. If you’re
unsure about challenging your agency with your problems, you may be with the wrong agency.
In the end, your role is to inform the agency as best you can, and then allow the agency to do its
thing. That does not mean you step away and blindly trust them. Quite the contrary. It means you
are involved every step of the way, but with a careful eye towards a shared goal: a short, powerful,
inspiring creative brief that will yield untold genius for your business.
Source: W. Burns, “The Creative Brief and the Client’s Role In It” Forbes (2012). Forbes – Reprinted
with permission of Forbes Media LLC © 2014.
381
Advertising appeals
Understanding benefits and developing advertising appeals go hand in hand. Once
the desired benefits are uncovered, the advertising appeal is developed around
these benefits. In short, the advertising appeal recounts why the consumer wants to
purchase the sports product. The major advertising appeals used in sports marketing
include health, emotion, fear, sex, and pleasure.
Health appeals are becoming prevalent in advertising, as the value placed on health
continues to increase in the United States. Advertisements and the infomercial craze
associated with the fitness industry capitalize on this growing concern of Americans.
One important consideration when using health appeals in advertisements is the
demographic profile of the target audience. According to IBISWorld, the strongest
growth in health club membership is in the 55+ age range. Over the long term,
population growth and demographic changes will significantly influence the industry.4
The mature market (people aged 55 and older) grew nearly 40 percent between 2000
and 2010. This aging population will likely maintain a more active lifestyle that focuses
on physical appearance and weight. At year’s end, 2013, IBISWorld estimated health
club memberships to be in excess of 52 million across the United States. About 25.0
percent of these members will be older than 55, which totals a 562.0 percent increase
since 1987.5
Rising health care costs will provide added incentives for insurers to promote
preventative practices that utilize fitness participation. The aging of the baby boomer
generation and the coming of age of their offspring, the echo boomers, have
broadened the market for the health industry. The demographics of the audience and
the health benefits desired from fitness centers should be carefully studied in the
advertising process.6
A number of emotional appeals, such as fear, humor, sex, pleasure, and the drama
associated with athletic competition, are also used in sports marketing promotions.
One of the unique aspects of sports marketing is the emotional attachment that
consumers develop for the sports product. As discussed in Chapter 5, many fans
have high levels of involvement and identification with their favorite athletes and
teams.7 Some fans may even view themselves as part of the team. Recognizing this
strong emotional component, many advertisers of sports use emotional appeals.
The infamous “Thrill of victory and agony of defeat” message used for decades
for ABC’s Wide World of Sports opening captures the essence of an emotional
appeal. Emotional appeals that allow fans to relive the team’s greatest moments and
performances of past years are often used to encourage future attendance.
One specific type of emotional appeal is a fear appeal. Fear appeals are messages
designed to communicate what negative consequences may occur if the sports product
or service is not used or is used improperly. Scare tactics are usually inappropriate
for sports products and services, but in some product categories moderate amounts
of fear in a message can be effective. Consider, for example, messages concerning
exercise equipment or health club membership. Many promotional campaigns are built
around consumers’ fears of being physically unfit and aging. Even athletic promoters
use moderate fear appeals by telling consumers that tickets will be sold out quickly and
that they should not wait to purchase their seats. Effective sports marketers identify
their sports products as solutions to the common fears of consumers. For example,
manufacturers of bike and skateboard helmets are quick to cite the plethora of head
injuries that result without the use of proper headgear.
382
Another emotional appeal is sex. Sex appeals rely on the old adage that “sex sells.”
Typically, marketers who use sex appeals in their messages are selling products
that are sexually related, such as perfumes, jewelry, and clothing. Maria Sharapova
is a global icon; she has the beauty and personality to match her talent on the tennis
court. Her latest endorsement deal makes her the first athlete to be a spokesperson
for legendary jewelry boutique Tiffany & Co.8 Siberian-born Sharapova moved from
Sochi on the Black Sea coast to the U.S. when she was seven years old. In 2004,
she achieved global fame by winning Wimbledon at age 17. Major titles followed at
the 2006 U.S. Open and the 2008 Australian Open, turning her into one the world’s
best-paid athletes. Sharapova, who backed Sochi’s bid to host the Winter Olympics,
earns around $25 million a year, according to Forbes magazine. She endorses
companies including Nike Inc. (NKE), Swiss luxury watch brand Tag Heuer, jeweler
Tiffany & Co. (TIF), and Danone SA (BN)’s Evian water.9
In sports marketing, sex appeals are sometimes used, but this is always a delicate and
ethical subject. Everywhere we look we find ourselves drawn to images of scantily clad
attractive men and women that are supposed to inspire us to purchase products they
endorse. Sex appeal can increase the effectiveness of an ad or a commercial because
it draws the customer’s attention. It’s human nature to be curious about sex; however,
misuse of connotations in marketing and advertising platforms can be costly.10 In a
recent interview conducted on the Dan Patrick Show, Hope Solo noted that there was
no linkage between sex appeal on the field and the quality of the game; however, she
did acknowledge that it was an athlete’s duty to capitalize on these exploits to bring
attention to the game.11 Further noting that the selling of the sex symbol persona, at
the end of the day, does help gain more viewership and more long-term fans.
In another example, an article produced by Sports Illustrated’s Alan Shipnuck
questioned whether marketing the sex appeal of LPGA golfers was good for the
game, it was noted that “exposure” was a key concern. Mikaela Parmlid, a W7 model
and LPGA professional, stated that it was okay for women athletes in other sports
to be attractive. (The Wilhelmina 7 – or W7 for short – golfers were signed with
Wilhelmina Artist Management, a division of the famed Wilhelmina Models agency.
Wilhelmina chairman Dieter Esch, quoted in a news release, stated, “We created this
initiative to complete a void in the marketplace for beautiful and athletically talented
female golfers.”)12 “Women’s tennis, beach volleyball, swimming, and track – they’re
just girls too and it’s effortless the way they combine their sexuality with their sports
and no one gives them a hard time about it.”13
In other examples of sex and sport, Olympic gold medalist Amanda Beard posed in a
2007 issue of Playboy; the ATP Masters tournament held in Madrid has been using
10
female models as ball girls since 2004; and ProBeach Volleyball with its bikini-clad players
relies heavily on the sex appeal of its players (both male and female) to attract fans.

Sex sells? Trend may be changing
Sex Sells. goes, if a female athlete wants to

Most of us have heard this phrase so succeed in the endorsement game,
many times, we no longer question she should be willing to trade on her
its veracity, especially when it comes body and her looks first, her athletic
to sports. As the popular thinking talent second.
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Just take a glance in the rearview none might have existed before, and
mirror. Over the past 15 years, some you begin to question Beckham’s
of the female athletes who have won soccer skills or Brady’s superiority as
biggest in the race for sponsors are a quarterback.
Danica Patrick, Maria Sharapova and Even though this kind
Anna Kournikova. of marketing can undercut
In the Nine for IX film “Branded,” both genders, the real damage has
premiering Tuesday on ESPN (8 been done on the women’s side,
p.m. ET), filmmakers Heidi Ewing because nearly all of our popular,
and Rachel Grady tackle the age- mainstream representations of
old question in women’s sports: female athletes play up their off-the-
Will sex appeal always supersede field appeal, with performance taking
achievement? a backseat.
But before we try to answer that, In light of the research conducted
we need to ask ourselves a few more: by Fink and other academics in
Does sex really sell now? How do we recent years, just think of the
know for sure? What if I told you it negative effects these marketing
doesn’t? images have had on how we, as a
What if I told you there is society, view women’s sports. It goes
research to the contrary? As in, a long way toward explaining why
research showing that consumers, a highly successful female athlete
when deciding whether to buy a can often feel like Sisyphus, pushing
sports-related product, respond the rock up the hill only to watch it
more to advertisements that roll back down – because the sports
portray female athletes as – get this world is still mostly operating as if
– athletes. bikinis on soccer players and slinky
Because that’s exactly what dresses on tennis stars are where the
grassroots studies have shown, money is.
according to Janet Fink, an associate Changes are coming, though,
professor in the department of sports and some are already upon us,
management at the University of providing a glimpse of how female
Massachusetts Amherst. “Another athletes might be marketed in the
thing we are finding, and this makes future, when we will likely see a
sense, is that each time a female wider range of women as endorsers,
athlete is pictured in a sexualized rather than just a select handful
way, it diminishes the perception (those traditionally deemed the
of her athletic ability,” said Fink, sexiest and prettiest, within narrow
who specializes in sports consumer parameters).
behavior, as well as media and Consider WNBA rookie Brittney
marketing depictions of female Griner. In rejecting the age-old
athletes. marketing model for female athletes
This perception is true for men, – to begin with, she is the first openly
too: When you see a sexualized gay athlete to sign with Nike – she
picture of a male athlete, say David has made it clear she wants her
Beckham modeling underwear or brand to represent her authentic self,
Tom Brady wearing Uggs, your not an ideal that Madison Avenue
subconscious tends to put a little has created. While Griner and Nike
black mark next to his athletic are still determining the exact
endeavors. Doubt creeps in where approach they’ll take, both sides
384
have said they want to “break the “The blame isn’t on the athlete,”
mold.” Fink continued. “They’re playing
Likewise, young girls who are just the only game that exists. I think
starting out in sports will take note soon the marketing executives and
when they see a fierce competitor like mainstream media need to realize
soccer star Abby Wambach pitching how the next generation wants to see
Gatorade with a take-no-prisoners its female athletes. And that’s simply
attitude on the field. Tough. Sweaty. as athletes.”
Strong. The irony, as both Fink and Lavoi
“If girls see more images of female point out, is that some female
athletes as athletes, then it shifts athletes, and entire leagues, are
their thinking,” said Nicole Lavoi, still glamming themselves up in
a professor at the University of the name of mainstream appeal,
Minnesota and the associate director even though several studies have
of the Tucker Center for Research on shown (for male and female athletes)
Girls & Women in Sports. “That’s there is no correlation between
the game-changer. It opens up the seeing a sexy image and then
idea that we can see and celebrate all actually turning on the game to watch
female athletes.” the player whose sexy image you
Usually a company wants to work have seen.
with a male athlete if he can check “Actually, what helps, believe it
at least one of the following boxes: or not, is to show their true athletic
seems trustworthy, possesses ability,” Fink said.
expertise, looks attractive. The Talent sells.
more boxes, the higher his worth. That might not sound as sexy,
But with women, there is typically but for the next generation of
only one box that marketers care female athletes, it could prove more
about. “What we seem to do with rewarding.
female athletes is focus on their
attractiveness,” Fink said. “It’s the Source: Kate Fagan, “Sex Sells? Trend
only thing we sell about them. So May Be Changing,” ESPNW.com (August
if you look at female endorsers, 27, 2013). Available from: http://espn.
go.com/espnw/w-in-action/nine-for-ix/
sometimes they are not even the best
article/9604247/espnw-nine-ix-sex-sells-
in their sport.”
female-athletes-trend-changing, accessed
And then the rock rolls all the
way back downhill and we start
again.
June 22, 2014.
10
Although it may be hard to argue against sex selling sport in today’s society, many
think enough is enough.14 In fact, two researchers showed that women’s sports
gain nothing from marketing the athletes’ looks. Mary Jo Kane and Heather Maxwell
showed groups of people photos of sportswomen covering the spectrum from
highly athletic to highly sexualized. Their initial findings showed that none of those
images motivated men to attend games or buy tickets. Kane and Maxwell’s research
suggests that selling out women to sexist stereotypes does nothing to advance the
cause of women’s sports, nor does it serve the bottom line.15
385
Pleasure or fun appeals are designed for those target audiences that participate in
sports or watch sports for fun, social interaction, or enjoyment. These advertising
appeals should stress the positive relationships that can be developed among family
members, friends, or business associates by attending games or participating in sports.
A recent advertisement by a major credit card company captured the pleasure of a
father taking his son to a baseball game. The essence of the appeal was that, although
you might not be able to afford it at the time, you will never be able to replace the
“priceless” moment of taking your child to his or her first ball game. Another classic
example of fun appeals is the Budweiser “Whassup” ads. The campaign, featuring four
buddies shouting to each other over the phone, specifically targeted young sports fans.
Advertising execution
The advertising execution should answer the appeal that the advertiser is trying to
target. In other words, it is not what to say, but how to say it. Let us look at some of
the more common executional formats, such as message sidedness, comparative
advertisements, slice of life, scientific, and testimonials.
One executional format is whether to construct the message as one-sided versus
two-sided. A one-sided message conveys only the positive benefits of a sports
product or service. Most sports organizations do not want to communicate the
negative features of their products or services, but this can have its advantages.
Describing the negatives along with the positive can enhance the credibility of the
source by making it more trustworthy. In addition, discussing the negative aspects
of the sports product can ultimately lower consumers’ expectations and lead to
more satisfaction. For instance, you rarely hear a coach at any level talk about how
unbeatable a team or player is. Rather, the focus is on the weaknesses of the team,
which reduces fan (and owner) expectations.
Comparative advertisements, another executional format, contrast one sports
product with another. When doing comparative advertisements, sports advertisers
stress the advantages of their sports product relative to the competition. For new
sports products that possess a significant differential advantage, comparative
Web 10.3 Easton stresses its competitive advantage

Source: Easton Sports
386
advertisements can be especially effective. The risk involved with comparative
advertisements is that consumers are exposed to your product as well as the
competitor’s product.
Because of the unique nature of sport, many advertisements are inherently
comparative. For example, boxing advertisements touted the “Fight of the Century”
between Muhammad Ali and Joe Frazier. In fact, there have been many “Fight of the
Century” advertisements that are strikingly similar, comparing two boxers’ strengths
and weaknesses. Other sporting events, such as the made-for-television Skins Game
in golf, use a similar comparative format for promoting the events. Many home teams
skillfully use comparative advertisements to attract moderately involved fans interested
in the success of the local team. These fans are attracted by the allure of the visiting
team or one of its star athletes. For instance, many basketball advertisements promote
the big-name athletes of the opposing team, rather than highlight their own stars.
Slice-of-life advertisements show a “common” athlete or consumer in a common,
everyday situation in which the consumer might be using the advertised sports
or nonsports product. For example, in 2013 Campbell’s Chunky Soups teamed
up with Clay Matthews and his mother in an effort to promote their new line of
pub-inspired soups. The advertisement focuses on promoting unique new flavors
further emphasizing the slice-of-life choices between a mother and her child at any
age. A slight variation of this style is the lifestyle advertisements, wherein the
advertisement is intended to portray the lifestyle of the desired target audience. For
example, the classic “Just Do It” campaign uses a slice-of-life format that appeals
to the participant in each of us. In another slice-of-life example, Zest soap ran a
very effective campaign for their product using former football star Craig William
“Ironhead” Heyward as their “showering” spokesperson.
Another executional style that is also readily used in sports advertising is called scientific
advertisements. Advertisers using this style feature the technological superiority of their
sports product or use research or scientific studies to support their claims. For instance,
many golf ball manufacturers use scientific claims to sell their product. The Srixon UR-X
is touted as having the “largest core,” which means longer distance. Callaway markets
the HX Tour as having “revolutionary hexagonal aerodynamics,” and Titleist markets the
Titleist Professional ball, which has a core of corn syrup, water, and salts, surrounded by
a rubber and plastic like covering. As Bill Morgan, Titleist’s senior vice president of golf
ball research, admits, “A lot of times, chemical words or technical words are talked about
in marketing and nobody really knows what they are talking about. But it sounds high
tech. There is a little deception there, really.”
One of the most prevalent executional styles for sports advertising is the use of
10
testimonials. Testimonials are statements about the sports product given by
endorsers. These endorsers may be the “common” athlete, professional athletes,
teams, coaches and managers, owners, or even inanimate objects, such as mascots.
Table 10.2 highlights the 50 most popular celebrity sport endorsers.
Why are athlete testimonials so popular among sports advertisers? The answer
to this question is the ability of sports celebrities to persuade the target audience
and move them toward purchase. Athletes’ persuasive power stems from their
credibility and, in some cases, attractiveness. Credibility refers to the expertise
and the trustworthiness of the source of the message. Expertise is the knowledge,
skill, or special experience possessed by the source about the sports product. Of
course, successful athletes who promote products needed to participate in their sport
387
Table 10.2 50 most marketable active athletes
1. Neymar 26. Lindsey Vonn

2. Lionel Messi 27. Alex Morgan
3. Rory McIlroy 28. Mike Trout
4. Robert Griffin III 29. Jack Wilshere
5. Usain Bolt 30. Yani Tseng
6. Novak Djokovic 31. Manny Pacquiao
7. Lewis Hamilton 32. Saul Alvarez
8. Cristiano Ronaldo 33. Lucas Moura
9. Sloane Stephens 34. Bubba Wastson
10. Blake Griffin 35. Shaun White
11. Tiger Woods 36. Ellyse Perry
12. Sebastian Vettel 37. James Harden
13. Virat Kohli 38. Shinji Kagawa
14. LeBron James 39. Seth Jones
15. Viktoria Azarenka 40. Laura Robson
16. Maria Sharapova 41. David Rudisha
17. Alan Oliveria 42. Mark Cavendish
18. Andy Murrary 43. Stacy Lewis
19. Alex Ovechkin 44.Kim Yu-Na
20. Missy Franklin 45. Danica Patrick
21. Vincent Kompany 46. Anderson Silva
22. Carmelo Anthony 47. Dale Earnhardt Jr
23. Caroline Wozniacki 48. Gareth Bale
24. Sergio Perez 49. Robert Kubica
25. Rafael Nadal 50. Katie Walsh
Source: http://www.sportspromedia.com/notes_and_insights/the_worlds_50_most_marketable_2013.
have demonstrable expertise. Examples of the athlete – athletic product match-up

include John Wall and Candace Parker – basketball shoe contracts; Tiger Woods and
Michelle Wie – golf equipment; Jeff Gordon and Dale Earnhardt Jr. – automotive
industry; Albert Pujols and Ryan Howard – baseball gloves; Martina Navratilova
and Juan Carlos – tennis racquets; and Sidney Crosby and Alex Ovechkin – hockey
equipment. Wall, the first pick in the National Basketball Association 2010 draft, was
expected to instantly be one of the top players in the league. Already immensely
popular before the draft, Wall signed an endorsement contract with Reebok and while
still in college had two popular rap songs written about him. The other dimension
of source credibility is trustworthiness. This refers to the honesty and believability
of the athlete(s) endorser(s). Trustworthiness is an intangible characteristic that is
becoming harder and harder for professional athletes to establish. Today’s consumers
realize athletes with already large salaries are being paid huge sums of money
for endorsements. Because of this, the athlete’s believability is often suspected.
Nevertheless, even some of the highest paid athlete endorsers, such as George
Foreman, Arnold Palmer, and Peyton Manning, seem to have established themselves
as trustworthy sources of information while others such as Tiger Woods have
tarnished their credibility and trustworthiness in the eye of the American public.
In addition to credibility, another factor that makes athletes successful endorsers is
attractiveness. Although attractiveness is usually associated with physical beauty, it
388
Web 10.4 Ashworth Inc.– Fred Couples creates a powerful message for the
Ashworth collection.
Source: ©2014 TaylorMade Golf Company, Inc.
appears to have another, nonphysical dimension based on personality, lifestyle, and

intellect. Attractiveness operates using the process of identification, which means that
the target audience identifies with the source (athlete) in some fashion. Gatorade’s
classic “I wanna be like Mike” campaign, featuring Michael Jordan, is a good example
of the identification process. Perhaps an even better example is Nike’s “I am Tiger
Woods” campaign, where kids of all races and ages were found putting themselves in
the shoes of Tiger.
Athlete trustworthiness and attractiveness can change in an instance; consider the
following opinion of Tiger Woods and how this view is different today. Who will be
the most successful and appealing athlete endorsers of the new century? In 2003, a
study was conducted by Burns Sports Celebrity Service, Inc. to answer this question.
The survey asked more than 2,000 creative directors at national advertising agencies
and corporate marketing executives, who hire athletes, to rate the most appealing
athlete endorsers. Not surprisingly, the results indicated that the appeal of Tiger
Woods continued to grow at an extremely rapid pace. Woods had firmly established
himself as one of the top sports celebrity endorsers today, and Burns Sports’
president, Bob Williams, believed, “If Tiger Woods takes an aggressive approach
10
accepting endorsements, he could become the first athlete to earn a billion dollars in
endorsements. Woods’ golf career could last 30 years or more, unlike athletes from
other sports whose average career is in the single digits. Hence, the real opportunity
to earn a billion dollars from endorsements is within reason for a megastar like Tiger
Woods.”
Although Williams’ comments have merit, the unexpected scandal that developed
around Woods’ personal life in recent years has potentially tarnished his “megastar”
status. American golfer Tiger Woods was once one of the most popular endorsers
in the world, and then on November 25, 2009 the National Enquirer broke the story
of his infidelity to his wife. Tiger’s infidelity led him to lose his endorsements with
Gatorade, Accenture, AT&T, and others, leading him to lose $22 million in 2010. After
Tiger’s marital infidelities came to light, Tiger announced an indefinite break from
389
competitive golf at the end of the 2009 season. Tiger’s break from golf ended in April
of 2010 when he returned for the Masters Tournament; however, Tiger failed to return
to top form for the remainder of the golf season.16 Although his performance has
improved since, his identity remains tarnished.
Athlete endorsers can be extremely effective; however, there are risks involved.
Athletes are costly, may suffer career-threatening injuries, or just do foolish things.
The following article showcases a classic example of how an athlete’s choices can
have a detrimental impact on endorsers as well as their career.

Lance Armstrong’s fall from athletic grace doesn’t diminish his
greatest triumph
I never thought of Lance Armstrong as testicular cancer certainly adds to the

a seven-time Tour De France winner impact, but it’s bigger than that.
– at least not first and foremost. I’ve never been a fan of Armstrong
Even now that his athletic record has as an athlete or as a personality. I’ve
been permanently – and justifiably – never been the biggest cycling fan,
stained, my predominant thought of and his disposition has always been a
Armstrong isn’t as a cheater. little off-putting to me.
The most impactful and important After all, this is the guy that ET
label I placed on Armstrong 16 years Magazine quoted as saying: “If there
ago remains the same today. was a God, I’d still have both my
He is, and will always be a cancer nuts.” per Cycling News.
survivor. I’m certainly not implying that his
Even if at some point down the recent issues are a derivative of his
line, God sees fit to take him from perceived atheist position, but a guy
this earth, and cancer be the earthly that makes that type of comment isn’t
cause of his passing, that won’t going to be my favorite athlete.
change my mind. For me, the fact that he lives on
I have personally lost so much is his biggest triumph and purpose.
to that disease. I’ve seen three Because of that, these other
grandparents, an aunt, a mother and accomplishments and issues are
a sister leave me because of it. completely secondary.
Those are the numbers, but the I understand the scandal is sexier to
void it has left is incalculable. discuss – and even to write about – but
I’m not alone, unfortunately. that PED flavored stain doesn’t ruin
According to the Wiley Online the image of hope any more than our
Library, almost 600,000 Americans difference in opinion about faith does.
will die in 2012 from cancer; even In the Lance Armstrong situation,
more will perish worldwide. With the truth has seemingly been proven.
numbers like that, it’s great to see Athletically, the outcome isn’t
someone win. pretty, but I will hold fast to that
When your life has been touched which is good.
in such a way, a fighting spirit goes Source: Article author: Brian Mazique;
looking for signs of hope. http://bleacherreport.com/articles/1383267-
Armstrong is such a sign for me. lance-armstrongs-fall-from-athletic-grace-
The fact that he went on to doesnt-diminish-his-greatest-triumph.
compete as a world class athlete after Rightsholder: Bleacher Report.
390
In addition, the following narratives illustrate how sport complexities can create
adverse situations for endorsers.
X The simplest of things in life can be completed without breaking a sweat, but not
a 26.2 mile race. When 23 year old Rosie Ruiz crossed the finish line of the Boston
Marathon, she had the third fastest time ever for a female runner while barely
glistening, and speculation started to mount. That wariness was justified when
onlookers communicated that they saw Ruiz join the race in the final mile. She
was stripped of her olive wreath and the rightful winner, Jacqueline Gareau, was
crowned.17
X In baseball, U.S. prosecutors have begun to pursue new avenues of
investigation after a former New York Mets batboy pleaded guilty to selling
performance-enhancing drugs to dozens of major-league players. He is cooperating
with authorities.
X A special commission set up by Major League Baseball to look into the sport’s drug
problem asked dozens of players to meet with its investigators and sought medical
records from at least two of the game’s recent top sluggers, Sammy Sosa and
Rafael Palmeiro. The spotlight was not likely to dim as Barry Bonds slugged his way
to becoming the all-time home run king, a pursuit that was tarnished as prosecutors
investigated whether he lied during grand-jury testimony in a case involving the
distribution of steroids to elite athletes. On November 15, 2007, federal prosecutors
charged the 43-year-old slugger with perjury and obstruction of justice.18
X In a scandal of international proportion, the cricketing world was rocked by
acclaimed South Africa captain Hanse Cronje’s fall from grace in the biggest
match-fixing scandal the sport has seen. In 2000 Cronje confessed to accepting
about $130,000 (£68,400) from bookmakers for providing them with match
information to fix the results of games. He was banned from the sport for life – a
devastating blow to the man who achieved iconic status after leading the Proteas,
as the South Africa cricket team is known, to victory in 27 Tests – losing 11 – and
99 one-day internationals out of 138.
X American figure skater Tanya Harding calculated that it would be more difficult for
her rival, Nancy Kerrigan, to compete if she had a bad knee. Harding hired Shane
Stant to put fellow American figure skater Kerrigan out of commission at the 1994
U.S. Figure Skating Championships, paving the way for Harding’s victory. Soon
after, her ex-husband cut a plea bargain deal in which he spilled the beans of their
scheme implicating Harding. When Harding’s time came, she had no choice but to
plead guilty and received a $160,000 fine and three years’ probation, was banned
from U.S. figure skating, and was stripped of her 1994 title.19 10
Although scandals typically involve individual athletes, an entire sport can also be
involved in unethical, performance enhancing practices. NASCAR officials have been
working to even the playing field for years as teams searched for any edge they could
find in a sport in which a tenth of a second of extra speed can determine the outcome
of a race. Inspections before and after qualifying for the Daytona 500 in 2006 nabbed
no fewer than 5 of the 61 teams trying to make the race. One team’s crew chief and
another team’s director were suspended for four races for failing to cover holes in a
wheel well, which was seen as giving the teams an unfair aerodynamic advantage. They
were also fined $50,000 and amassed a 50-point penalty for the driver and team owner.
In the days before taking part in the Great American Race, six teams were penalized for
technical violations. The infractions – which ranged from the unintentional (Jeff Gordon’s
No. 24 Chevrolet was one inch too low after qualifying because of misaligned bolts in
391
the car’s rear shocks) to the blatant (Michael Waltrip’s No. 55 Toyota was impounded
after inspectors found an illegal substance in the engine manifold) – cast a dark cloud on
a sport in which cheating has been omnipresent but never consistently targeted.
NASCAR’s president, Mike Helton, said: “There is a need for NASCAR to have that
same confidence with the fan, with the TV audience, with the car sponsors, with
NASCAR sponsors, with the racetracks and all the constituents of the sport to have
confidence in NASCAR’s way that it handles its sport.”20 In 2014, NASCAR revamped
its “deterrence system” altering the penalty structure and appeals process to further
defer infractions from occuring. Steve O’Donnell, NASCAR executive vice president of
racing operations, noted that it was not NASCAR’s intent to penalize but to implement
a policy that is more fair, transparent and easily understood. O’Donnell added that
NASCAR officials believe “the system is tailored to fit the needs of the sport,
essentially building a firewall between the race teams, their sponsors, and the OEMs
(original equipment manufacturers)”.21
In the past the NFL image was damaged in a series of off-the-field wrongdoings and
arrests of some of its athletes. There have been no fewer than 50 player arrests
since the start of 2006, and NFL Commissioner Roger Goodell has instituted the
toughest code of conduct in professional sports. Despite that, through August of
2013, there were 42 arrests and citations of NFL players. Goodell has shown a
willingness to suspend players even before they are convicted in the courts. Goodell
stated, “Persons who fail to live up to this standard of conduct are guilty of conduct
detrimental and subject to discipline, even where the conduct itself does not result in
conviction of a crime.” Discipline will include “larger fines and longer suspensions,”
and for repeat offenders, “the commissioner may impose discipline on an expedited
basis for persons who have been assigned a probationary period.” The commission
also said this about players in trouble, “When that happens, you can be in the wrong
place once, twice, maybe three times. But after a certain point, you are reflecting very
negatively on the National Football League. It’s my job – not law enforcement’s job –
to protect the National Football League.”22
Because of the increased risk and incidence of scandal, many sports advertisers are
shying away from signing megastar individual athletes to huge contracts and are
instead using teams or events as their advertising platform. For instance, Reebok
reduced its football endorsement stable from 250 to 150. Baseball endorsers were
reduced from 350 to 100, and basketball endorsers were reduced from 100 to 25.
Gatorade’s vice president of sports marketing, Tom Fox, said it best: “The paradigm in
the athlete marketplace has changed. Like a lot of companies, we question the ability
of any single athlete to reinforce brand equity to such a huge extent that it would
move product off the shelf.”23 Nonetheless, many companies are still using athletes
to endorse their products. A recent example of this is Adidas; they signed Derrick
Rose to a 14-year $260 million deal. Nike, as always, has had quite a few athletes
under their payroll. This includes some large names like LeBron James, Tiger Woods,
and Kobe Bryant to name a few.24 You also have names like Phil Mickelson and David
Beckham who are among the leaders of sport endorsement deals. Nike’s obligations
to pay athletes and teams cumulatively over the lifetime of their contacts had risen
in each of the previous three years, dating to fiscal year 2006. The decline in value of
those obligations to $3.8 billion in 2010 leaves a total that is more than three times the
amount posted in 2002, but it’s down $400 million from a record $4.2 billion in 2009.
Table 10.3 presents some general guidelines for using sports celebrities in advertising
campaigns.
392
Table 10.3 Guidelines for using sports celebrities as endorsers
• Sports celebrities are more effective for endorsing sports-related products. Match-up hypothesis
again holds true – does not matter if consumers recognize the athlete if they cannot remember
the product that is being endorsed
• Long-term relationships or associations between the product and the endorser are key – cannot
be short-term or one-shot deals to be effective. Examples include Arnold Palmer with Pennzoil and
Michael Jordon with Nike
• Advertisements using athlete endorsers who appear during contests or events in which the
athlete is participating are less effective
• Athletes who are overexposed may lose their credibility and power to influence consumers. Tiger
Woods is planning to limit his association with just five global brands to avoid overexposure
Source: Adapted from Amy Dyson and Douglas Turco, “The State of Celebrity Endorsement in Sport,”
Cyber-Journal of Sport Marketing
ARMSTRONG FACES $200 MILLION SALARY LOSS WITH

REPUTATION HIT
Lance Armstrong may lose as much loss in potential future earnings at
as $200 million in future earning between $150-$200 million.”
potential, more than the wealth he The French cycling federation,
accumulated in a championship which distributes Tour de France
cycling career now gutted by prize money on behalf of the
revelations of doping. race organizer, the Amaury Sport
Two days after he was officially Organization, said yesterday it plans
stripped of a record seven Tour to cooperate with the family-owned
de France titles, Armstrong faces company to reclaim the $3.8 million
demands that he repay up to $16 (2.95 million euros) it estimates
million in purses and bonuses from Armstrong won during his career.
those victories. SCA Promotions Inc., which insured
Lost earnings potential far outpaces bonuses Armstrong received for
that, said sports marketing analysts. winning the race from 2002 through
With a net worth estimated by 2004, said two days ago it will seek
Forbes at $125 million, the 41-year- almost $12 million.
old American would have had a
Income Increase
prosperous future as an endorser
and motivational speaker had the
evidence gathered by the U.S.
Armstrong earned $17.5 million in
endorsement and speaking fees in
2005, when he won his last Tour
10
Anti-Doping Agency not surfaced,
de France, Sports Illustrated reported.
according to Patrick Rishe, an
That number grew to $21 million in
economics professor at Webster
2010, Forbes said. The revenue gain
University in St. Louis. Nike Inc.
as his career declined is an indication
(NKE) and his other sponsors
that Armstrong, who survived cancer
deserted him after USADA’s report.
and started the Livestrong foundation
“To think that he would be able to
that has pumped what it says is
make $15-$20 million annually over
more than $470 million into helping
the next 10 years is not out of the
others with the disease, would
question,” Rishe said in a telephone
have remained a potent corporate
interview yesterday. “That puts his
spokesman and health advocate.
393
“But for these doping allegations, longstanding relationship, but we

which now have been corroborated feel it is best for all involved to move
by USADA’s report, he would have on and collectively spend our energy
always been a cancer survivor and rebuilding the sport of cycling,”
his story would have always been Quigley, who declined to discuss
motivational and inspiring,” Rishe financial details of Armstrong’s
said. That career is in the past. contract, said in an e-mail.
“I can’t imagine anyone being That’s the approach Armstrong’s
able to make a positive out of other former major sponsors
a relationship with him at this probably will take, according to
point,” Jim Andrews, senior vice Paul Swinand, an equity analyst
president of content strategy at IEG, who covers Nike for Morningstar
a sponsorship consultant, said in a Inc. in Chicago. It’s in Nike’s best
telephone interview. interest to focus on public perception
by further distancing itself from the
First Time
Texan instead of pursuing more
Pauline Juliard, a spokeswoman for
action, said Swinand, who also
the French cycling federation, said in
covers Adidas AG, Under Armour Inc.
a telephone interview that the group
and Luxottica.
hadn’t begun proceedings to try to
“Whether you’re Nike, Anheuser-
recoup money paid to Armstrong. It
Busch, Oakley, you want to have as
would be the first time they have asked
little noise about this as possible,”
for money back from a rider, she said.
Swinand said in a telephone
Armstrong sued SCA for failing to
interview. “You don’t want more
pay his $5 million 2004 bonus. The
scabs ripped off.”
company settled the case, paying
Nike ended contracts with
Armstrong that money and $2.5
quarterback Michael Vick following
million in interest and court costs.
his conviction for crimes related to
SCA will work quickly to try to regain
dog fighting and with sprinter Marion
almost $12 million from Armstrong,
Jones after a doping confession. It
said Jeffrey Tillotson, an attorney for
maintained contracts with basketball
the company.
player Kobe Bryant and golfer Tiger
“If you have a claim, you want to
Woods following acknowledgments
pursue it as quickly and vigorously as
of adultery.
possible, particularly if there may be
other claimants,” Tillotson said in a Nike Stock
telephone interview. Swinand, 45, was a semiprofessional
Lawsuits could arise from either cyclist in France in 1989-90. He said
side, though they aren’t very likely, he owns no Nike shares and currently
analysts said. rates the stock at three-stars, a rough
Luxottica Group SpA (LUX), whose equivalent to a “hold.”
Oakley brand was the last major An e-mail to Tim Herman,
sponsor to drop Armstrong, won’t try Armstrong’s attorney, seeking
to recoup money paid to the cyclist, comment about the French cycling
said company spokeswoman Cheri federation’s plans, SCA and
Quigley. Armstrong’s endorsement deals
wasn’t immediately returned.
‘Rebuild Cycling’
Among Armstrong’s other former
“We are deeply saddened by the
sponsors, Nike spokeswoman
situation, especially given our
Mary Remuzzi, RadioShack Corp.
394
(RSH) spokesman Eric Bruner, Honey Past Strategy

Stinger Marketing Director Len Zanni, Armstrong has sued those he felt
and Mark Riedy, a spokesman for lied or otherwise wronged him in the
Easton Bell Sports which makes past, and he’ll have to re-examine
Giro helmets and gloves, said their whether that’s a sound strategy now,
companies had nothing further to said Marc Mukasey, a partner with
add to previous statements ending Bracewell & Giuliani LLP’s White
relationships with Armstrong. Collar Criminal Defense and Special
Phillip Cleveland, a spokesman Investigations practice in New York.
for Anheuser-Busch InBev NV (ABI)’s “I imagine that the legal fees are
Michelob Ultra beer; Eric Bjorling, a going to cost him a pretty penny,”
spokesman for Trek Bicycle Corp.; Mukasey said in a telephone
Carli LaForgia, a spokeswoman for interview. “Virtually anybody who
FRS Co.; and David Zimberoff, a ever paid him anything, certainly with
spokesman for Sram International some sort of moral turpitude clause
Corp., didn’t respond to phone calls in it, is going to try to recoup. I would
and e-mails seeking comment. guess that he will be in contractual
litigation for a long time.”
USADA Report
Armstrong has denied ever doping
USADA released a 202-page summary
and says he’s never failed a drug test.
of its investigation of Armstrong on
Any acknowledgement of drug use
Oct. 10, saying his cycling career
now is complicated by the fact that in
was “fueled from start to finish
the original SCA dispute he testified
by doping.” Nike became the first
under oath that he had never doped.
sponsor to cut ties with Armstrong
on Oct. 17, shortly after he stepped Boxed-In
down as Livestrong’s chairman, and “To say under oath that you never
the International Cycling Union said used performance-enhancing
two days ago that it would not appeal drugs, that makes a subsequent
USADA’s findings. admission and apology that much
Armstrong would have a more difficult,” said Mukasey, who
difficult time seeking payment has no involvement in Armstrong’s
from the companies because of legal representation. “From a legal
the breadth of the USADA evidence perspective, once you box yourself
and because most endorsement in like that, you better be committed
deals have moral turpitude clauses
that free sponsors if athletes break
the law or negatively affect the
to that story or have a really good
excuse as to why you were mistaken
or delusional at the time you gave
10
sponsor’s public image, according to that answer.”
Daniel Lazaroff, director of the Sports While there remain people who
Law Institute at Loyola Law School in believe Armstrong is innocent, it
Los Angeles. won’t mean a return to sponsorships,
“Companies will want to get out said Paul Swangard, managing
of these high-paying contracts if the director of the Warsaw Sports
asset has lost its value,” Lazaroff said Marketing Center at the University of
in a telephone interview. Oregon.
Lazaroff said he’d be surprised if “I see him as tainted goods,”
Nike tried to get its money back from Swangard said last week in a
Armstrong “after all, he provided telephone interview. “There are
value for them.” plenty of ways to reach your target
395
consumer and Lance just isn’t one of 21, 2012). Available from: http://www.
them anymore.” bloomberg.com/news/2012-10-24/
armstrong-faces-200-million-salary-loss-
Source: Mason Levinson, Eben Novy- with-reputation-ruined.html. Used with
Williams, and Alex Duff, “Armstrong permission of Bloomberg L.P. Copyright©
Faces $200 Million Salary Loss With 2014. All rights reserved.
Reputation Hit,” Bloomberg.com (October
One promising alternative that reduces the risk of potential problems is to use athletes
who are no longer alive. Nike ran a series of 10 commercials using former Green Bay
Packer coach Vince Lombardi. Other corporations that have featured departed stars
in their ad campaigns include Citibank (Babe Ruth), Microsoft (Lou Gehrig and Jesse
Owens), McDonald’s, Coca-Cola, Apple Computer, General Mills (Jackie Robinson), and
Miller Brewing (Satchel Paige). Dead athletes are more cost effective, scandal proof,
and are icons in the world of sports. Ruth was chosen to represent Citibank in an ad
campaign – 49 years after his death and 62 since his last homer – for similar reasons.
“Babe’s an American sports icon, instantly recognizable,” says Ken Gordon, a Citibank
vice president, explaining why Ruth got the nod over contemporary ballplayers.25
Media strategy
As presented in Chapter 9, a medium or channel is the element in the
communications process by which the message is transmitted. Traditional mass
media, such as newspapers, television, radio, or magazines, are usually thought of
as effective ways of carrying advertising messages to the target audience. However,
new technologies are creating alternative media. The Internet, for example, represents
an emerging medium that must be considered by sports advertisers. It is important
to know the habits and preferences of each market segment and often these
behaviors are identified using marketing analytics. Understanding these habits and
preferences can enhance communication and marketing efforts for these audiences.
For example, teens use a multitude of media each day, and technology is also an
integral part of teen life. Technology influences the type of media teens use – from
researching potential purchases and schoolwork to maintaining friendships. Teens
often actively multi-task or let one medium influence their use on another concurrent
behavior. Deciding what medium or media to use is just one aspect in developing a
comprehensive media strategy. Media strategy addresses two basic questions about
the channel of communication. First, what medium or media mix (combination of
media) will be most effective in reaching the desired target audience? Second, how
should this media be scheduled to meet advertising objectives?
Media decisions or media selection

The far-ranging (and growing) number of media choices makes selecting the right
media a difficult task. Choosing the proper media requires the sports advertiser to be
mindful of the creative decisions made earlier in the advertising process. For instance,
an emotional appeal – best suited to television – would be difficult to convey using
print media. It is also critical that the media planner keep the target market in mind.
Understanding the profile of the target market and their media habits is essential to
developing an effective advertising campaign.
396
Table 10.4 Profiles of major media types
Medium Advantages Limitations

Internet Allows messages to be customized; Clutter; audience characteristics; hard-
reaches specific market; interactive to-measure effectiveness
capabilities
Newspapers Flexibility; timeliness; good local market Short life; poor reproduction quality;
coverage; broad acceptability; high small pass-along audience
believability
Television Good mass market coverage; low cost High absolute costs; high clutter;
per exposure; combines sight, sound, fleeting exposure; less audience
and motion; appealing to the senses selectivity
Direct mail High audience selectivity; flexibility; Relatively high cost per exposure; “junk
no ad competition within the same mail” image
medium; allows personalization
Radio Good local acceptance; high geographic Audio only, fleeting exposure; low
and demographic selectivity; low cost attention (“the half-heard” medium);
fragmented audiences
Magazines High geographic and demographic Long advertisement purchase lead
selectivity; credibility and prestige; high- time; high cost; no guarantee of
quality reproduction; long life and good position
pass-along readership
Outdoor Flexibility; high repeat exposure; low Little audience selectivity; creative
cost; low message competition; good limitations
positional selectivity
Source: Adapted from Philip Kotler and Gary Armstrong, Marketing: An Introduction, 4th ed. (Upper
Saddle River, NJ: Prentice Hall, 1997), 471.
Every type of media has strengths and weaknesses that must be considered
when making advertising placement decisions. Table 10.4 demonstrates selected
advantages and disadvantages when choosing among advertising media.
Alternative forms of advertising

Because of the advertising clutter present in traditional advertising media, sports
marketers are continually evaluating new ways of delivering their message to
consumers. Alternative forms of advertising range from the more conventional stadium
signage to the most creative media. Consider the following innovative illustrations
of alternative forms of advertising: The International Cricket Council has allowed 10
players to sell the top 23 centimeters of their bats for advertising. In Connecticut, 35
public golf courses signed up for a program that put advertisements in the bottom
of their holes. Formerly, 7–Eleven entered into a three year $500,000 sponsorship
contract with the White Sox, calling for all weekday games to start at 7:11. A company
spokesperson called this a “fun way to insert our name into fans’ hearts and minds.”
This sort of creativity could open up other areas where brands can get involved without
impacting the field of play, as well as additional inventory for teams to sell.
Stadium signage
Stadium signage or on-site advertising, is back and is an extremely popular form of
promotion and sponsorship packages. For some time, nary a sign was found on the
outfield wall of an MLB team or on the boards at an NHL game. Now, stadium signage
397
prevails on every inch of available space. Not unlike other forms of advertising,
stadium signage is designed to increase brand or corporate awareness, create a
favorable image through associations with the team and sport, change attitudes or
maintain favorable attitudes, and ultimately increase the sale of product. The Cubs
have struck a three-year sponsorship deal with Under Armour to place two 7-by-12-
foot signs on the Wrigley Field outfield doors, the first corporate advertising to be
placed among the famed brick-and-ivy outfield wall in the stadium’s then 93-year
history.
Photo 10.2 Coca-Cola creates a positive association with baseball by using stadium
signage.
Source: Laura M. Hoffman
Traditionally, stadium sponsors and advertisers have utilized in stadium ads, naming
rights and banners visible on TV to capture consumer attention. However, with
the advent of digital technology, attention is becoming a scarce resource. Due to
consumer behaviors such as multitasking and shorter attention spans, the quality
of viewer attention has eroded over the past two-and-a-half decades.26 Therefore,
marketers today must be innovative, integrating more targeted and interactive
advertising strategies. Attention economics have been a scarce commodity in the
age of information overload. However, in this playing field, aggregating the attention
of fans and selling a portion to advertisers and sponsors is where the real riches
lie.27 For example, in the NFL, teams like the Dallas Cowboys earn in excess of $100
million from sponsorships and advertising in a single season, while teams such as the
Oakland Raiders and Buffalo Bills earn less than $20 million.28 Estimated expenditures
on stadium signage and sponsorships are expected to continue to increase. Thus,
given the advent of new technologies, allowing stadium billboards to be changed
398
and customized for local markets, the use of flat panel displayers for digital out of
home advertising will continue to be one of the fastest growing industries and with
deployment of stadium signage appear in almost every major world market.
Although stadium signage can be an effective means of advertising, it can also be
costly. The new Dallas Cowboys stadium is one of the world’s most modern venues,
but it came with a significant price tag, $1.2 billion. The stadium features a retractable
roof and a signage scheme unlike any other. Cowboys Stadium is home to the world’s
largest outdoor digital display. The 2,100 inch display weighs in at approximately
600 tons, spans over 25,670 square feet, features back to back high definition LED
screens, and has two small screens at each end to accommodate the stadium end
zone fans. The cost of this massive display is just a mere $40 million. However, the
digital signage does not end there, apart from having the largest outdoor back to back
HD screen, they also utilize over 3,000 small displays around the stadium to allow
fans to stay abreast of the game and to inform fans of news related to the team. In
addition, in other venues across the country items such as rotating/digital scorers and
press tables often seen at NBA and collegiate basketball games can cost between
$50,000 and $250,000. How is expensive stadium signage sold and justified by sports
marketers? First, research has shown that locations considered to be part of the game
(e.g., scorer’s table or on the ice) are more effective than those locations removed
from the action (e.g., scoreboards).29 Other research found that spectators had
improved recognition of and attitudes toward eight courtside advertisers for an NCAA
Division I men’s basketball team. This finding is, of course, extremely important to
sponsors considering the cost and effectiveness of this type of stadium signage.30
Other outdoor
A new form of outdoor advertising is also becoming popular at national sporting
events. This type of outdoor promotion uses live product demonstrations or characters
to attract fans’ attention. For example, the 2011 Paribas Showdown became the first
professional tennis event in the U.S. to feature digital signage capable of full motion
animations. The promoters utilized these digital features to integrate legends like
John McEnroe, Ivan Lendl, Pete Sampras, and Andre Agassi thereby enhancing the
ESPN broadcast. In addition, the U.S. Army staged a live combat reenactment prior
to the start of the Charlotte 500 NASCAR race. In another example, Juan Valdez, the
very recognizable brand character for Colombian coffee, showed up in the stands of
the U.S. Open tennis tournament. Similarly, Ronald McDonald attended the Kentucky
Derby and a Chicago Bulls game to promote new products from McDonald’s.
In a related fashion, sports marketers sometimes use variations of product placement
10
techniques. Product placement occurs when manufacturers pay to have their
products used in cooperation with sporting events, television shows, movies, and
other entertainment media such as music videos. For instance, Gatorade’s Jeff Urban
teamed up with Major League Baseball’s Homerun Derby. Prior to the placement
opportunity the brand received little exposure and was confined to the limits of the
dugout. The placement initiative afforded Gatorade the opportunity to hand each
slugger a bottle of Gatorade and towels with the Gatorade logo near home plate on
the sidelines while they conducted their post hitting interviews for television. The
Gatorade placement was front and center, in a manner that fans could not help but
notice. In other examples, Gordon and Smith surfboards were prominently featured
in the movie Blue Crush, written about female surfers; and perhaps the earliest
sports product placement was when James Bond, 007, used Slazenger golf balls on
399
the links in the classic Goldfinger. In the ultimate product tie-in, the Anaheim Mighty
Ducks of the NHL were named after the series of movies created by their then parent
company, Disney.
Are these product placements effective? Top-rated TV shows aren’t necessarily
the best places for product placement. That’s the conclusion of a new study
of television product placement effectiveness conducted by New York-based
Intermedia Advertising Group (IAG), a research company whose roots are in
measuring the effectiveness and performance of network television commercials.31
“We both poll viewers and measure the exposure ourselves,” IAG co-CEO Alan
Gould said. “We code the exposure type; we measure the duration and note factors
such as whether the product is embedded into the story line, used as intended,
and in the foreground or background.”32 Even though this study seemed to find
little support for the effectiveness of product placement, anecdotal evidence shows
that product demonstrations seem to work and are certainly popular. Spike TV’s
and EA Sports’ recent product placement recognition involved logo placement
in the television series the Ultimate Fighter. Others include the likes of Everlast
and the former television show The Contender as well as recognizable films such
as: Requiem for a Heavyweight, Raging Bull, Ali, Cinderella Man, The Hurricane,
Million Dollar Baby. Other sports product placements in recent movies include the
following:
Gridiron Gang – Nike, Puma, Rogers Athletic, Schutt Sports, Spalding; The Departed
– Adidas; Invincible – Adidas; Talladega Nights – EA Sports; Click – Huffy Bicycle
Company; The Break-Up – EA Sports, Reebok; and Failure to Launch – EA Sports,
Nike.
The advantages that have been cited for these alternative forms of advertising
include:33
X Exposure – A large number of people go to the movies, rent movies, or could be
exposed to a live-product demonstration if they are attending a sporting event or
watching television.
X Attention – Moviegoers are generally an attentive audience. Sports spectators are
also a captive audience when they are waiting for the action to begin.
X Recall – Research has shown that audiences have higher levels of next-day recall
for products that are placed in movies than for traditional forms of promotion.
X Source association – for product placements, the audience may see familiar
and likable stars using the sports product. As such, the product’s image may be
enhanced through association with the celebrity.
Another alternative form of advertising is using the athlete as a “human billboard.”34
The history of athletes wearing an advertisement can be traced back to the 1960s,
when organizations began establishing relationships with stock car drivers. Soon, the
practice of drivers wearing patches on their clothing spread to other sports, such as
tennis and golf. The use of athletes as advertisers is much more common in individual
sports because these individuals have the ability to negotiate and wear whatever they
want, as opposed to the tight controls imposed on athletes in team sports by their
respective leagues.
Today, the use of athletes as human billboards is part of the integrated marketing
communications plan rather than a stand-alone promotion. Fred Couples, Rich
Beem, Chris DiMarco, Stuart Appleby, and Steve Flesch of the PGA wear sweaters
and shirts, in addition to the other advertisements and promotions they perform for
400
Photo 10.3 These runners all exemplify the human billboard.

Ashworth. The major appeal of this form of advertising is the natural association
(classical conditioning) formed in consumers’ minds between the athlete and the
organization or product.
How much does it cost sponsors to rent advertising space on an athlete’s body? An
IndyCar driver’s helmet might cost between $50,000 and $250,000, depending on
the driver. The precious space on a professional golfer’s visor would cost between
$250,000 and $500,000. Although these prices may seem outrageous, organizations
are willing to pay the price for the exposure and enhanced brand equity.
In addition to these more conventional examples, basketball player Rasheed Wallace
was asked by a candy company to tattoo his body for the NBA season. This offer
was ultimately rejected as it was thought to potentially violate the NBA Uniform
Player contract. Additionally, boxers have started to use their bodies as billboards
by tattooing corporate logos on their chest and back. The Nevada State Athletic
10
Commission tried to ban body billboards, but ultimately lost to the state court’s ruling
protecting boxers’ right to free speech.
BIG 4 JERSEY RIGHTS VALUE PUT AT $370M

The four big stick-and-ball leagues topped the list for jersey valuations at
are leaving a total of more than $370 nearly $231 million, or 62 percent of
million on the table annually by not all potential big four jersey ad sales.
selling jersey advertising, according However, the nature of football –
to new research from Horizon Media. with players more crowded together
The NFL, with its unrivaled ratings and with less static time facing
and concomitantly higher ad rates, the camera – means that the NFL
401
offers the least of what the study evaluation techniques and

terms “detections” among the four assuming a brand logo across the
leagues, with 28,560 calculated over middle of a team’s jersey that would
the course of a season. Baseball, occupy 3.5 percent of the TV screen
meanwhile, with its typical center- – comparable to an English Premier
field and behind-the-catcher camera League kit – the study formulated
angles, scored more than 314,000 media evolutions for the NBA, NFL,
detection opportunities. NHL and MLB in their top 20 markets
The total jersey valuation for MLB over their most recently completed
teams came in at more than $101 seasons.
million. The NBA total was $31 The study did not account for logo
million, and the NHL at $8 million, value in print and digital media, or
according to the report. from being viewed on-site.
Players’ amount of static time Since the study made assumptions

facing the camera hurt the NFL’s on a team’s national broadcast
value but helped MLB. appearances, it’s not surprising that
While NHL teams posted the the top five NFL teams in exposure
lowest monetary value in the survey, value are Dallas, New England, the
the NHL’s quality impact score was New York Giants, the New York Jets
second only to MLB. Hockey’s fast and Philadelphia – all prime targets
pace of play provides for fewer for the NFL’s national broadcast
detection opportunities during game windows.
action, but when play is stopped in Likewise, the top three MLB teams
the NHL, the exposure “duration,” or in exposure value are the New York
amount of time the jersey is visible Yankees, Boston and the New York
on-screen, is higher in hockey than Mets. The NBA list is led by the
other sports. Los Angeles Lakers, New York and
Using computerized exposure Boston, while in the NHL, the top
402
three are Chicago, the New York deal with online loan company
Rangers and Pittsburgh. Wonga.
The research noted that the list Of course, the political
of teams for potential ad value of machinations of jersey ads for the
jersey sponsorships parallels Forbes’ big four leagues are probably greater
list of the most valuable sports than what for some is a psychological
teams. barrier of swapping an Adidas or
Jersey ads are a common practice Nike logo for Coke or McDonald’s. A
in most of the world, but the big U.S. leading question: Who would sell the
leagues have thus far resisted selling uniform ads: networks, leagues or
their jerseys as billboards, except individual teams?
to brands such as Nike, Reebok and “If I’m an owner, I’m saying
Adidas, which hold their apparel that’s my real estate. And if I’m a
rights. network with league rights and I
“We don’t necessarily see this can’t sell it, then I’m paying less for
happening soon in the U.S.,” said those rights,” said Chris Weil, CEO
Michael Neuman, Horizon Media’s of marketing agency Momentum
managing partner for sports, Worldwide, whose client list includes
entertainment and events, “but heavy sports spenders like Coca-
until the revenue potential is clear, Cola and American Express. “You
it certainly won’t go anywhere, and also might run into a problem if you
clearly this shows there is significant ask a player to take a pay cut, as
opportunity at a time when most of they are in the current [NFL] labor
the big leagues are looking for new negotiations, and then sell space
revenue.” on what a player might consider his
Consider, for example, the NHL’s jersey.”
exposure value of $8.17 million, Another constituency that could
compared with its current NBC insist on a piece of the action are
contract, which is a no-rights-fee, the jersey manufacturers, who
revenue-share deal. Or imagine the are accustomed to having their
incremental value jersey advertising trademarks on pro uniforms. There
could bring if it were bundled with TV also likely would be conflicts between
rights for rights holders to sell. individual athlete endorsement deals
In England, Premiership club and the company ad that’s on the
POTENTIAL JERSEY SPONSORSHIP VALUES*

LEAGUE NO.OF DURATION
(H:MIN:SEC)
DURATION PER QUALITY
DETECTION
MONETARY
IMPACT SCORE VALUE
10
DETECTIONS
NFL 28,560 18:26:40 2.33 0.209 $230,911,504
MLB 314,280 273:36:00 3.13 0.308 $101,052,782
NBA 127,920 94:11:10 2.65 0.238 $31,186,931
NHL 74,620 60:08:00 2.89 0.248 $8,171,211
TOTAL 545,380 446:21:50 2.94 0.278 $371,322,428
deals range in annual price from jersey the player might be wearing.
$32 million for the Aon-Manchester “My opinion is that it’s been a
United and Liverpool-Standard business barrier stopping us from
Chartered deals to less than $1 doing this rather than a belief that
million for Blackpool’s sponsorship we would be violating something
403
sacrosanct,” said Phoenix Suns I don’t think we’re anywhere close to

President and CEO Rick Welts, that now.”
formerly the NBA’s chief marketing
officer. “I wouldn’t say the Source: Article author: Terry Lefton;http://
leadership in our league is against www.sportsbusinessdaily.com/Journal/
it, but certainly we’re not prepared Issues/2011/02/20110207/Marketing-and-
Sponsorship/Jerseys.aspx. Credit: Sports
to do it until it comes with a price
Business Journal.
everybody can be comfortable with.
Regardless of how you slice it, collectively assessing how big the advertising business
can be is something that’s still being questioned. New methods of advertising are
constantly being developed. According to the 2014 Global Games Market Report by
Newzoo, the global games market will rocket past the $100 billion market, to reach
$102.9 billion by 2017.35 The Entertainment Software Association estimates that the
in-game advertising market for this industry could grow to be $1 billion by 2014, up
from $56 million in 2006.36, 37 “All the forecasts are overstated, but even at the low
end, it’s a healthy business,” said Chip Lange, vice president of online commerce
at Electronic Arts, and this “healthy business” contributes further to advertising’s
bottom line. 38
Internet
Another major player in the world of advertising media is the Internet. As discussed
in Chapter 2, the Internet has already become a valuable source of sports information
for participants and fans. In addition, the Internet is fast becoming the favorite
promotional medium for sports marketers. A total user base of over 274 million
people exists in the United States alone, and Internet usage is growing globally with
approximately 2.5 billion users (34 percent of the world population), which is one
advantage to promotion via the internet (as seen in Table 10.5).
In addition, according to a BurstMedia report, 35.1 percent of all sports fans –
including two-in-three (66.8 percent) devoted fans – go online at least once per day
Table 10.5 World regions by Internet penetration
World Internet usage and population statistics June 30, 2012

World Population Internet Internet Penetration Growth Users %
Regions (2012 Est.) Users Dec. Users Latest (% 2000–2012 of Table
31, 2000 Data Population)
Africa 1,073,380,925 4,514,400 167,335,676 15.6 % 3,606.7 % 7.0 %
Asia 3,922,066,987 114,304,000 1,076,681,059 27.5 % 841.9 % 44.8 %
Europe 820,918,446 105,096,093 518,512,109 63.2 % 393.4 % 21.5 %
Middle East 223,608,203 3,284,800 90,000,455 40.2 % 2,639.9 % 3.7 %
North 348,280,154 108,096,800 273,785,413 78.6 % 153.3 % 11.4 %
America
Latin America 593,688,638 18,068,919 254,915,745 42.9 % 1,310.8 % 10.6 %
/ Caribbean
Oceania / 35,903,569 7,620,480 24,287,919 67.6 % 218.7 % 1.0 %
Australia
World total 7,017,846,922 360,985,492 2,405,518,376 34.3 % 566.4 % 100.0 %
Source: http://www.internetworldstats.com/stats.htm.
404
for sports-related reasons, e.g., check scores, read sports news, watch sports videos
or play fantasy sports games.39 Nearly one-third (30.4 percent) of all sports fans say
most of their time online is spent reading content versus watching online video.
“Whether it’s consuming original sports content online, sharing likes and tweets with
friends, or using a tablet to follow the score, sports enthusiasts have many options to
access content,” said Mark Kaefer, marketing director, Burst Media, “and with digital
media becoming an increasingly significant part of the total sports fan experience,
online publishers and advertisers now have access to a much wider set of platforms
and tactics to use to engage audiences.”40 Let us take a look at some of the other
advantages to promotion via the Internet.
Perhaps the most substantial advantage to using the Internet as a promotional tool
is the good fit between the profile of the sports fan and the Internet user. The typical
Internet user was described as an entertainment-minded, educated male between 18
and 34 years old. However, today the web is no longer the virtual playground of just
well-educated males and technology aficionados. Today the online consumer population
is undergoing a major shift. Sixty percent of these new users are women and many earn
average or below average incomes. Moreover, 33 percent have had web access for
less than a year.41 These trends require the traditional sport marketers to re-think their
communication strategy. For instance, the demographic profile of espn.com users is
94 percent male, 47 percent single, with 66 percent between the ages of 18 and 34.42
Sound familiar? These characteristics closely match the traditional sports fan.
Digital platforms are fast becoming the choice of media for sports fans and are
pushing the boundaries of media convergence across television, Internet, and mobile
devices. The television and the Internet now outweigh other media at peak viewing
times and twice as many sports fans watch video via mobile devices compared
with the average mobile device user. These individuals are also known to multitask,
for results indicate that twice as many sports fans use the Internet while watching
TV compared with the average user. Ultimately sport users are more engaged
and receptive than the average Internet user to online advertising and these users
are more likely to increase their sports consumption online due to its ease of use,
accessibility, technology, and its real time availability.43 Finally, the Internet is the ideal
medium to target college sports fans due to greater access and usage rates among
students. Generally, the Internet allows the sports advertiser to reach an extremely
focused targeted market.44
Another distinct advantage of promotion via the Internet is the interactive nature
of the medium. Promotions attract the attention of the target audience and then
create involvement by having consumers point and click on the information they find
10
of interest. For instance, the Major League Soccer site (www.mlssoccer.com) has
advertisements asking soccer fans, “are you a true MLS fan?,” and then asking fans
to go to the Zune store to download MLS screensavers and backgrounds.
A point and click of the mouse will take fans to the Georgia Pacific soccer link, which
features the ability to download player screen savers and wallpapers, enter a shootout
online contest, and, of course get more information on MardiGras products.
Other advantages of the Internet versus more traditional media include the Internet’s
ability to be flexible. Web promotions can be updated, and changes can be made
almost instantly. This flexibility is a tremendous advantage for sports marketers, who
are constantly responding to a changing environment. In fact, the Internet seems
to be the perfect tool for sports marketers using the contingency framework for
strategic planning. For example, the emergence of social media has supercharged
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Web 10.5 The Internet has become a popular medium for all forms of online
purchasing.
Source: InTheHoleGolf.com
Web 10.6 The Golf Channel, PGA, and LPGA team up for online contests.
Source: GolfChannel.com
an age old consumer activity allowing consumers to chat about things like scores,
stats, and other sport interests. This established consumer behavior, now enabled
by new technology platforms, is driving a fundamental change in the way sport brand
marketing works. Today’s relationships are more explicit and must consider the
engagement of the message and the consumer; these engagements make platforms
much more measurable which constantly inspire new ideas between research, media,
and consumer brand perceptions.
A final benefit of promotion via the Internet is its cost effectiveness. The Internet
provides organizations with a means of promoting sports to consumers around the
world at a low cost. The ability to reach a geographically diverse audience at a low
cost is one of the primary advantages of Internet promotion.
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Web 10.7 Social media continue to emerge as an interactive Web strategy.

Source: Twitter; https://twitter.com/nickpangio
Although there are many advantages, promotion via the Internet can also pose
potential problems. As with other forms of advertising, it is difficult to measure
the effectiveness of sports promotion over the Internet. Often, marketers use the
“number of hits” as a proxy for effectiveness, but this cannot be used to determine
the interest level of the consumer or purchase intent.
Promotional clutter is another difficulty with Internet promotions. As the Internet
becomes a more popular advertising medium, more organizations will compete for
the audience and its attention. To break through the clutter, sports marketers must
design new Internet promotions. Differentiating among Web promotions will become
increasingly important in gaining the attention of consumers and developing a unique
position for organizations.
A final disadvantage of promotion on the Internet is its inability to reach certain groups
of consumers. Although the Internet is a great medium to reach younger, college-
educated, computer-literate consumers, it may be extremely inefficient in trying
to promote to the mature market or, perhaps, consumers of lower socioeconomic
standing.
Although we have looked at some of the pros and cons of promotion via the Internet,
the fact remains that the Internet is here to stay and that the use of personal mobile 10
devices will have a significant marketing presence for years to come. The low costs,
ability to target sports fans and participants, and high flexibility far outweigh the
disadvantages of this medium. Certainly, sports marketers have accepted the Internet
as another important tool in their integrated communications efforts.
Choosing a specific medium

Once the medium or media mix is chosen by the sports organization along with the
advertising agency, the specific medium must be addressed. In other words, if the
advertisement will appear in a magazine, then we must choose which magazine will
be most effective. Do we want our advertisement to promote the NHL to appear in
Sports Illustrated, Sporting News Magazine, the Hockey News, or some combination
of these specific media? Should we promote Texas Motor Speedway via Internet
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advertising, text messaging, podcasting, or by more traditional means – television,
radio, magazine, and newspaper? To answer this question, we must consider our
reach and frequency objectives.
Reach refers to the number of people exposed to an advertisement in a given
medium. For the advertiser who wants to generate awareness and reach the largest
number of people in the target audience, perhaps Sports Illustrated, with a circulation
of over 3 million, would be the most effective medium. However, if the target
audience is women, then Sports Illustrated might be reaching people who are not
potential users.
The reach of an advertisement is determined by a number of factors. First, nature
of the media mix influences reach. The general rule is that the greater the number
of media used, the greater the reach. For example, if the advertising campaign for
the NHL were broadcast on television, printed in magazines, and also appeared on
the Internet, reach would be increased. Second, if only one medium is to be used,
increasing the number and diversity within this medium will increase the reach.
For instance, if cable television were chosen as the sole medium for the NHL
campaign, reach would be increased if the commercial were aired on ESPN, Lifetime,
and Fox Sports versus ESPN alone. Finally, reach can be enhanced by airing the
advertisements during different times of the day or day parts. The advertisement
might be shown at night after 9:00 P.M. and also in the morning to reach a greater
percentage of the target audience.
Along with reach, another consideration in making specific media decisions is
frequency. Frequency refers to the number of times the individual or household is
exposed to the media vehicle. An important point is that frequency is measured by the
number of exposures to the media vehicle rather than the advertisement itself. Just
because an advertisement is shown on television during the Super Bowl does not
mean that the target audience has seen it. Consumers might change channels, leave
the room, or simply become involved in conversation. A study examined this issue
using Super Bowl viewers in a bar setting.45 It found that visual attention levels for the
game are similar to attention levels for the advertisements, attention to commercials
varies by their location in the cluster of advertisements and time of the game, and
that Super Bowl commercials may receive more attention than commercials on other
programs.
Media scheduling
Four basic media scheduling alternatives are considered once the medium (e.g.,
magazines) and specific publications (e.g., Sports Illustrated) are chosen. These
schedules are called continuous, flighting, pulsing, and seasonal. A continuous
schedule recognizes that there are no breaks in the demand for the sports product.
This is also called steady, or “drip,” scheduling. During the advertising period,
advertisements are continually run. Most sporting goods and events are seasonal
and, therefore, do not require a continuous schedule. Some sporting goods, such as
running shoes, have roughly equivalent demand and advertising spending throughout
the year.
A flighting schedule is another alternative, where advertising expenditures are varied
in some months and zero is spent in other months. Consider the case of the Houston
Astros. Heavy advertising expenditures are spent in March, April, and May leading up
to the season. Reminder-oriented advertising is placed over the course of the rest of
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the season, and no advertising dollars are spent in the winter months. This type of
scheduling is most prevalent in sports marketing due to the seasonal nature of most
sports.
A pulsing schedule is a variant of the flighting schedule. Ad expenditures may vary
greatly, but some level of advertising is always taking place. Although it sounds similar
to a flighting schedule, remember that a flighting schedule has some months where
zero is spent on advertising.
Personal selling
Now that we have looked at the advertising process in detail, let us turn to another
important element in the promotion mix – personal selling. Personal selling is used
in a variety of ways in sports marketing, such as in securing corporate sponsorships,
selling luxury suites or boxes in stadiums, and hawking corporate and group ticket
sales. In the marketing of sporting goods, the primary applications of personal selling
are to get retailers to carry products (push strategy) and consumers to purchase
products (pull strategy).
Personal selling represents a unique element in the promotion mix because it involves
personal interaction with the target audience rather than mass communication
to thousands or millions of consumers. The definition of personal selling reflects
this important distinction between personal selling and the other promotion tools.
Personal selling is a form of person-to-person communication in which a salesperson
works with prospective buyers and attempts to influence their purchase needs in the
direction of their company’s products or services.
All the advantages of personal selling described in Table 10.6 make it an attractive
promotional tool, so the ability to use personal selling to develop long-term
relationships with consumers is becoming increasingly important to sports marketers.
In fact, building long-term relationships with consumers has become one of the
critical issues for marketers. More formally, relationship marketing is the process of
creating, maintaining, and enhancing strong, value-laden relationships with customers
and other stakeholders.46
As Kotler and Armstrong point out, the key premise of relationship marketing is that
building strong economic and social ties with valued customers, distributors, dealers,
and suppliers leads to long-term profitable transactions. Many sports organizations
are realizing it is cheaper to foster and maintain strong relationships with existing
customers rather than find new customers or fight the competition for a stagnant
consumer base. 10
Table 10.6 Benefits of personal selling
• Personal selling allows the salesperson to immediately adapt the message they are presenting
based on feedback received from the target audience.
• Personal selling allows the salesperson to communicate more information to the target audience
than other forms of promotion. Moreover, complex information can be explained by the
salesperson.
• Personal selling greatly increases the likelihood of the target audience paying attention to the
message. It is difficult for the target audience to escape the message because communication is
person to person.
• Personal selling greatly increases the chances of developing a long-term relationship with
consumers, due to the frequent person-to-person communication.
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Two examples of building relationships with consumers of sport were described in an
article entitled “Pursuing Relationships in Professional Sport.”47In the first example,
a promotion was developed by the Pittsburgh Pirates and Giant Eagle Supermarkets.
The basic premise of the promotion was that fans could earn discounts and special
offers at Pirates games by participating in the Giant Eagle preferred shoppers
program. For example, fans with an Advantage Card (given to program participants)
were offered discounted ballpark meals for a month, half-price tickets to five games
throughout the season, and discounts on Pirates merchandise. The relationship-
building program was deemed successful by the Pirates, Giant Eagle, and the fans.
Another relationship-building effort was designed for the fans of the San Diego
Padres. The program for season ticket holders, called the Compadres Club, and for
single game purchasers called the Frequent Friar Club, rewards fans for attending
predetermined numbers of games. Each program is tailored to a specific audience;
season ticket holders identified as the lifeblood of the Padres are rewarded for
their investment while the Frequent Friar Rewards Club rewards the Friar Faithful
for their ticket purchases. Ultimately, fans can redeem their frequency points for
Padres merchandise, posters, and dinners. For example, the top earners receive an
authentic baseball bat autographed by a Padres player and presented on the field
at a special pregame ceremony. Although both the Pirates and the Padres have
developed marketing programs to build relationships with fans, the importance of
personal selling should not be overlooked. Personal selling was necessary for the
Pirates to communicate the benefits of the partnership to Giant Eagle. As a result of
selling a successful program to Giant Eagle, the company increased its Pirates-related
marketing budget by roughly 25 percent. The Padres, armed with a database of the
demographics and buying habits of its most loyal fans, will use personal selling to
secure additional sponsorship and advertising dollars.
CAREER SPOTLIGHT
Kevin Rochlitz, Vice President, National Partnerships and Sales, Baltimore
Ravens
Career questions assistant marketing director job at

Fresno State University. I learned a
1. How did you get started in the lot while I was there and it taught
sports industry? What was your me more about selling and the
first sports industry job? ability to tie in promotions with
I got my start by working as partners.
an intern in the University of 2. Can you describe the type
Wyoming athletic department in of work you are doing right
promotions and administration. I now? What are your job
knew what I wanted to do from responsibilities? What are the
the beginning, so I decided to go greatest challenges?
ahead and volunteer my time, Right now, my main goal is to bring
and I got a lot of work experience in revenue through a number of
from it. My father is a basketball channels such as signage, television,
coach and I loved the integration radio, print, Internet or converged
between sports and business. My media, trademarks, and promotional
first sports industry job was the opportunities. I work with all of the
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retail and national accounts as we try 4. Who or what has influenced you
to tie them in together. My overall the most in your sports business
responsibility is to increase revenue career?
for the team and gain market share I would say my parents as they have
with our marks. Since we are a taught me to work very hard and
young team, the opportunity to have things will happen. I love my job and
our logo tied in with promotions is many times I can’t believe they pay
a big help. The greatest challenge me to do this. It is a hobby and from
for us is that we are between two the days of working at Wyoming with
major markets (Philadelphia and then Athletic Director Paul Roach,
Washington) and both have teams, he gave me an opportunity to learn
so the ability to use our marks while I was at school, so it was like
outside our area is difficult. Also, the getting two degrees. Plus one of
growing popularity of the Internet my old professors at Wyoming, Dr.
and all that it can do and trying Brooks Mitchell, who taught me to
to get partners to see this can be think outside the box, has been very
challenging. influential on my career.
3. Do you foresee any changes in 5. What advice would you offer
demand in this field in the future? students who are considering a
If so, what or how? career in sports marketing?
Not really. Right now I think it You are going to have to work hard
is going to go in the direction of and get involved in a collegiate
electronic media, and the more marketing department and volunteer
people in this industry have the your time. The experience at this
knowledge of this, the better it will level can be very beneficial and the
help them. folks in the athletic department will
help you postgraduation.
The strategic selling process

Now that we have defined personal selling and discussed some of its major
advantages, let us examine how the selling process operates in sports marketing.
As previously discussed, sports marketers are generally concerned with selling
an intangible service versus a tangible good. Most salespeople view the selling of
services as a much more difficult process, because the benefits of the sports product
are not readily observable or easily communicated to the target audience. It is much
10
easier to sell the new and improved r7 Superquad driver from TaylorMade when
the consumer can see the design, feel the weight of the club, and swing the club.
In essence, the product sells itself. Contrast this with the sale of a luxury box to a
corporation in a stadium that is yet to be built. Selling this sports product is dependent
on communicating both the tangible and intangible benefits of the box to the
prospective buyer. In addition to the problems associated with selling a service versus
a good, the sale of many sports products requires several people to give their approval
before the sale is complete. This factor also makes the selling process more complex.
In the ever-changing world of sports marketing, the “good ol’ boy” approach to
selling is no longer valid. To be more effective and efficient in today’s competitive
environment, a number of personal selling strategies have been developed. One
process, developed by Robert Miller and Stephen Heiman, is called strategic selling.48
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Miller and Heiman suggest the first step in any strategic selling process is performing
an analysis of your current position. In this instance, position is described as
understanding your personal strengths and weaknesses as well as the opportunities
and threats that are present in the selling situation. In essence, the salesperson is
constructing a mini-SWOT analysis, analysis of strengths, weaknesses, opportunities
and threats. Questions regarding how prospective clients feel about you as a
salesperson, how they feel about your products and services, who the competition is,
and how they are positioned must all be addressed at the initial stages of the strategic
selling process.
Good salespeople realize that they must adapt their current position for every account
before they can be successful. To change this position, six elements in the strategic
selling process must be considered in a systematic and interactive fashion. These
elements, which must be understood for successful sales, include buying influences,
red flags, response modes, win-results, the sales funnel, and the ideal customer
profile. Let us take a brief look at how these elements work together in the strategic
selling process.
Buying influences
A complex sale was earlier defined as one where multiple individuals are involved
in the buying process. This is true of large organizations considering a sponsorship
proposal or families considering the purchase of exercise equipment for a new
workout facility in their home. One of the first steps in the strategic sales process is to
identify all the individuals involved in the sale and to determine their buying roles.
Roles are patterns of behavior expected by people in a given position. Miller and
Heiman believe there are generally four critical buying roles that must be understood
in a complex sale (no matter how many people play these roles). The economic
buying role is a position that governs final approval to buy and that can say yes
to a sale when everyone else says no, and vice versa. The user buying role
makes judgments about the potential impact of your product or service on their
job performance. These individuals will also supervise or use the product, so they
want to know “what the product or service will do for them.” The technical buying
role screens out possible suppliers on the basis of meeting a variety of technical
specifications that have been determined in advance by the organization. The technical
buyers also serve as gatekeepers, who screen out potential suppliers on the basis of
failing to meet the stated specifications. Finally, the coach’s role is to act as a guide
for the salesperson making the sale. The coach is a valuable source of information
about the organization and can lead you to the other buying influences. As Miller and
Heiman point out, identifying the individuals playing the various roles is the foundation
of the strategic selling process.
Red flags
Once the individuals have been identified, the next step in the strategic selling
process is to look for red flags, or things that can threaten a complex sale. Red flags
symbolize those strategic areas that can require further attention to avoid mistakes
in positioning. In addition, red flags can be used to capitalize on an area of strength.
Some of the red flags that can threaten a complex sale include either missing or vague
information, buying influences who are not contacted, or reorganization. For example,
any buying influences who are not contacted are considered a threat to the sale.
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These buying influences who are not contacted are analogous to uncovered bases
in baseball. Teams cannot be fielded or successful when there is no shortstop or
catcher. Likewise, a sale cannot be successful until all the relevant players have been
contacted.
Response modes
After the buyer(s) have been targeted and you have correctly positioned your products
or services by identifying red flags, the next step in the strategic selling process is to
determine the buyer’s reaction to the given sales situation. These varying reactions
are categorized in four response modes. These modes include the growth mode,
trouble mode, even keel mode, and overconfident mode.
The growth mode is characterized by organizations who perceive a discrepancy
between their current state and their ideal state in terms of some goal (e.g., sales
or profits). In other words, the organization needs to produce a higher quality sports
product or put more people in the seats in order to grow. In this situation, the
probability of a sale is high.
The second response mode is known as the trouble mode. When an organization
is falling short of expectations, it is in the trouble mode. Here again, there is
a discrepancy between the current and ideal states. In the growth mode the
organization is going to improve upon an already good situation. However, the trouble
mode indicates that the buyer is experiencing difficulties. In either case, the potential
for a sale is high.
The even keel mode presents a more difficult case for the salesperson. As the
name implies, there is no discrepancy between the ideal and current results and,
therefore, the likelihood of a sale is low. The probability of a sale can be enhanced if
the salesperson can demonstrate that a discrepancy actually exists, the buyer sees
growth or trouble coming, or there is pressure from another buying influence.
The final response mode is the overconfident mode. Overconfidence is generally the
toughest mode to overcome from the salesperson’s perspective in that the buyers
believe things are too good to be true. Just think about individual athletes or teams
who are overconfident. Invariably they lose because of their false sense of superiority.
Organizations that are overconfident are resistant to change because they are
exceeding their goals (or at least they think so), so sales are difficult. The NFL is one
example of a sports league currently at the top in terms of fan popularity, but subject
to the overconfident mode. Specifically, off-the-field issues (as noted earlier) may
alienate fans and sponsors. Gene Upshaw, the former executive director of the NFL 10
Players Association, commented that “I do not want the fans to turn us off because
of off-field behavior. It has happened in other sports, and I would not want that to
happen to the NFL.”49 In this stage of the strategic sales process, the response mode
of the organization should be analyzed. In addition, each of the buying influences
should be examined to determine their perception of the current situation. By
analyzing the buying influences and their perceptions, the salesperson is in a position
to successfully adapt his or her approach to meet the needs of each buying influence
and each customer.
Win-results
Much of sports marketing today is based on the premise of strategic partnerships.
The same is true for the strategic sales process. In strategic partnerships, the sales
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process produces satisfied customers, long-term relationships, repeat business, and
good referrals. To achieve these outcomes, the salesperson must look at clients as
partners rather than competition that must be beaten.
Miller and Heiman define the win-results concept in the strategic selling process as
an objective result that gives one or more of the buying influences a personal win.
The key to this definition is understanding the importance of both wins and results.
A result is the impact of the salesperson’s product or service on one or more of the
client’s business objectives. Results are usually tangible, quantifiable, and affect the
entire organization. Wins, however, are the fulfillment of a promise made to oneself.
Examples of personal wins for the potential client include gaining recognition within
the organization, increasing responsibility and authority, and enhancing self-esteem.
It is important to realize that wins are subjective, intangible, and do not benefit all the
people in the organization the same way.
The sales funnel

The sales funnel is another key element in the strategic sales process. This is a
tool used to organize all potential clients, as opposed to developing a means for
understanding an individual client. Basically, the sales funnel is a model that is used
to organize clients so salespeople might organize their efforts in the most efficient and
effective manner. After all, allocating time and setting priorities are two of the most
challenging tasks in personal selling.
The sales funnel divides clients into three basic levels – above the funnel, in the
funnel, and the best few. Potential clients exist above the funnel if data (e.g., a call
from the prospective client wanting information or acquiring information from personal
sources) suggest there may be a possible fit between the salesperson’s products or
services and the needs of the potential client. The salesperson’s emphasis at this level
is to gather information and then develop and qualify prospects.
Potential clients are then filtered to the next level of the sales funnel. If clients are
placed in the funnel (rather than above it), then the possibility of a sale has been
verified. Verification occurs once a buying influence has been contacted and indicates
that the organization is in either a growth or trouble response mode. Remember that
these two response modes represent ideal conditions for a sale to occur.
When all the buying influences have been identified, red flags have been eliminated,
and win-results have been addressed, sales prospects can be moved from in the
funnel to the “best few.” At this final level of the sales funnel, the sale is expected to
happen roughly 90 percent of the time.
Ideal customers
The ideal customer concept in strategic selling extends the notion of the sales funnel.
In this case, all potential customers outside the funnel are evaluated against the
hypothetical “ideal customer.” The strategic sales process is based on the belief that
every sale is not a good sale. The ideal customer profile is constructed to cut down
on the unrealistic prospects that should not be in the sales funnel in the first place.
When constructing the ideal customer profile, the salesperson must judge each
prospect with respect to organizational demographics, psychographics, and corporate
culture. Current prospects can then be evaluated against the ideal customer profile to
determine whether additional time and energy should be invested.
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Sales promotions
Another promotion infix element that communicates to large audiences is sales
promotions. Sales promotions are a variety of short-term, promotional activities
that are designed to stimulate immediate product demand. A recent Taco Bell sales
promotion illustrates how a simple game promotion can affect redemption sales
techniques.
Over the years a variety of professional and amateur teams have enticed fans through
sales promotions. For example, millions of fans have been part of the Chalupa-hungry
crowds that have flooded NBA markets. Markets such as Cleveland, Dallas, and
Portland have utilized the 100-point Taco Bell Chalupa promotion for years. In fact, the
Mavericks have reached a Chalupa milestone, securing their 100th win in a row when
the team has scored 100 points or more; now that is a Chalupa accomplishment. The
promotion dates back to the Chalupa’s inception in 1999 and is not directly tied to
Taco Bell Corporate. The first NBA promotion occurred in Seattle, with the Sonics,
when the local Taco Bell owners partnered with the NBA franchise. However, it was
not until approximately 10 years later that the promotion became famous. Before a
national audience, Cleveland fans booed then team icon LeBron James for selfishly
dribbling out the clock at the end of a 99–93 Cavaliers’ victory, thereby denying the
fans their rightful Chalupas.
Other examples of these redemption strategies include: the NBA Philadelphia 76rs
and their 100 point redemption of a Big Mac through McDonald’s; The St. Louis Blues
of the NHL introduced a Dairy Queen Blizzard coupon giveaway which affords fans the
opportunity for a free Blizzard when the Blues score five goals or more. Other NHL
teams such as the Columbus Blue Jackets and New York Islanders offer promotions
which allow fans to redeem their ticket for a free Wendy’s chili when their home
teams score three goals or more.
In addition, some teams utilize sales promotions outside the core environment. For
example, creativity afforded the Detroit Pistons faithful the opportunity to interact
with their players when conducting a promotion for a free gas giveaway. Not only did
the fans have the opportunity to win a $200 gas gift card, but the promotion provided
the public a chance to chat and secure autographs while the Detroit Pistons players
pumped the gas to fill up their tanks. The promotion generated an enormous amount
of publicity for the team.
The sales promotions used in sports marketing come in all shapes and sizes. Think
about some of the sales promotions with which you may be familiar. Classic examples
might include the Bud Bowl; Straight-A Night or all you can eat at the ballpark;
10
coupons for reduced green fees at public golf courses; a sweepstakes to win a free
trip to the Super Bowl; seat upgrades to courtside recliners; or Coke’s Win-a-Player
Promotion.
Minor League Baseball has always been known for its creative sales promotions. For
example, the Sacramento River Cats have partnered up with Miller Brewing Company
at Raley Field for Miller Lite Thirsty Thursdays where $2 Miller beers and music keep
the party going all night long. The River Cats gain the attention of fans on Tuesdays
with the introduction of Kraft Singles Tuesday Nights, where tickets are buy one get
one free courtesy of Kraft, making the River Cats Tuesday home games a steal for the
deal. As stated in the definition, all forms of sales promotions are designed to increase
short-term sales. Additional objectives may include increasing brand awareness,
broadening distribution channels, reminding consumers about the offering, or inducing
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a trial to win new customers. To accomplish these objectives, sports marketers use a
variety of sales promotion tools.
When the NHL returned to the ice following a lengthy work stoppage, Molson hired
Grand Central Marketing to execute a grassroots promotion that would rekindle
excitement among fans and position the brand as the beer of choice for hockey fans.
The Molson Goalies program took place in seven NHL cities in the weeks leading
up to the start of hockey season. In each market, teams of six brand ambassadors
wearing Molson-logoed goalie uniforms made unannounced appearances in
high traffic locations, outside stadiums and arenas, and in bars. They entertained
consumers with goal scoring contests, hockey trivia questions, and games. Wherever
the goalies went, they gave away Molson-branded premiums including T-shirts, hats,
stress hockey pucks, inflatable goalie sticks, goalie bags, and jerseys.
The promotion succeeded in its “goal” of reaching hockey fans and closely aligning
Molson with the sport. Over the course of the promotion, more than 30,000
premiums were distributed. Not only did the goalies cause a stir among consumers,
but the local media also took notice. The goalies appeared on television ten times and
their photos were in the newspaper seven times.
In a collegiate example, the University of Iowa Hawkeyes promotes men’s and
women’s gymnastics by offering fans a pair of free sunglasses. Along with this
giveaway, the Hawkeyes have redemption opportunities for free t-shirts and use other
promotions to enhance interaction with the fans.
In 2008 Taco Bell was also involved in a MLB “Steal a Base, Steal a Taco” World
Series promotion. If an eligible base was stolen during the World Series games, Taco
Bell made an announcement through selected media channels that consumers could
obtain their free taco. Everyone in line at participating Taco Bell restaurants before
6 P.M. local time received a free taco. Giving away the free tacos was pretty much a
sure thing, but it garnered little attention for the league.
Premiums
Premiums are probably the sales promotion technique most associated with traditional
sports marketing. Premiums are items given away with the sponsor’s product as part
of the sales promotion. Baseball cards, NASCAR model car replicas, water bottles,
hats, refrigerator magnets, posters, bobbleheads, and almost anything else imaginable
have been given away at sporting events. Although premiums are often given away
to spectators at events, they can also be associated with other sporting promotions.
For example, both Sports Illustrated and ESPN magazines give away hats, T-shirts,
and videos to induce potential consumers to subscribe. In another example, many
credit card companies are giving away hats with the logo of the fan’s favorite team for
applying for a line of credit.
Perhaps the most effective and exciting premium over the past several years has
been the bobblehead. The Triple-A Pacific Coast League Portland Beavers, a Padres
affiliate, “sent letters to every Bob L. Head they could find” and asked them to submit
an essay “explaining why they should be cast as a miniature, head-bobbing figurine.”
The team narrowed its search to three finalists and the winner had his bobblehead
given out to the first 2,000 fans who attended the team’s game against the Las Vegas
51s. Who knows what the next premium craze might be in sports?
In 2010 MLB teams dramatically increased their use of premiums to offset the
drastically reduced consumer spending and the worst economic conditions since
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Photo 10.4 Athlete signing autographs

the Great Depression. There was a 16 percent increase over the 2009 expenditures
and a 25 percent jump compared to 2008.50 Sport marketers have traditionally used
premiums to increase sales for lower demand games. In the past, popular premiums
included items such as hats and bats or low cost items such as pens, pencils, or
magnets. Today teams have developed sophisticated models to accurately measure
the incremental revenue generated by premiums. They often have to integrate value
components while accounting for other variables such as strength of opponent,
weather, and the day of the game. Today’s consumers demand a higher level of
sophistication in the products and although the premium cost is paid for by corporate
sponsors, the Sport Business Journal reports that professional teams are now
including giveaways for weekend and higher demand games even where there are
much smaller potential revenue gains from ticket sales.51
Although premiums can bring people to games who would not otherwise attend,
they can also have negative consequences and must be carefully planned. In the
10
now defunct World Hockey Association (WHA), the Philadelphia Blazers handed out
souvenir pucks at the first home game. Unfortunately, the game had to be postponed
because the ice was deemed unfit for skating. When the Blazers’ Derek Sanderson
announced the game cancellation to the crowd at center ice, he was pelted with the
pucks.52 In a similar scenario, the LA Dodgers had to forfeit a game because fans
began throwing baseballs (that they had been given) onto the field, endangering
players and other fans. The Dodgers can also be used to illustrate the height of
premium marketing. In 1984, the Los Angeles Olympic Games created a region-wide
craze for pin collecting. Sensing the “legs” of this mania, the Dodgers created six pin-
giveaway nights at their stadium. They picked games that would typically have low
attendance. The result was that all six of these games sold out on the strength of a
$0.60 per unit collector’s pin!
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Contests and sweepstakes

Sweepstakes and contests are another sales promotional tool used by sports
marketers to generate awareness and interest among consumers. Contests are
competitions that award prizes on the basis of contestants’ skills and ability, whereas
sweepstakes are games of chance or luck. As with any sales promotion, the sports
marketing manager must attempt to integrate the contest or sweepstakes with the
other promotion mix elements and keep the target market in mind.
Web 10.8 Philadelphia Eagles reach out to the community

Source: PhiladelphiaEagles.com
One of the classic contests sponsored by the NFL was the punt, pass, and kick
competition. In this competition, young athletes competed for a chance to appear
on the finals of nationally televised NFL games, making the NFL the winner for
promoting youth sports. Other contests have capitalized on the growing popularity of
rotisserie sports. Dugout Derby, Pigskin Playoff, and Fairway Golf are all examples of
“rotisserie” contests conducted via toll-free numbers where fans could earn prizes
for choosing the best fantasy team or athletes. In return, marketers capture a rich
database of potential consumers.
As sweepstakes become more and more popular, companies are constantly looking
for new ways to break through the clutter. Consider this tremendous opportunity
for race fans offered by General Motors. General Motor’s Camaro Giveaway
Sweepstakes provided an opportunity for loyal fans to win a Chevy Camaro SS vehicle
and trip to Daytona Beach, Florida for the Coke Zero 400 NASCAR Race. The winning
fan will receive a trip package that includes roundtrip transportation for two, two
night’s accommodation in a hotel, two tickets to the Coke Zero 400 race, a meet and
greet with Jimmie Johnson, and $500 spending money.
In a more recent example, billionaire Warren Buffett, CEO of Berkshire Hathaway,
partnered up and insured the Quicken Loans sponsoring of the “Billion Dollar Bracket
Challenge”. Quicken Loans President and Chief Marketing Office Jay Farner noted
that they had seen a lot of contests offering a million dollar prize which got them
thinking what was the perfect bracket [correctly predicting the outcome of every
game in the NCAA men’s basketball tournament] worth?53 The result’s a big “B”, a
billion dollar sweepstakes with a grand prize that includes a $500 million payout or $25
million a year for the next 40 years. Farner added, their mission is to create amazing
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experiences for their clients and a billion dollar giveaway definitely fits that bill.54 Now
that’s a sweepstakes!
Another recent sweepstakes includes the ESPN Zone Baltimore Ultimate Couch
Potato Contest, which is a competition to see who can watch the most continuous
television sports coverage among the four chosen finalists. Finalists were chosen
based on a required 200 word essay discussing why they should be selected as a
finalist. One grand prize winner received a gift certificate to Best Buy in the amount
of $1,000, one XZipIt Recliner chair with the logo of the winner’s choosing, payment
to cover one year of cable bills, a $500 ESPN Zone game card, $500 in food and
beverage certificates, and an ESPN Zone Ultimate Couch Potato Trophy.
Other sweepstakes are taking advantage of the Internet as well as the use of mobile
devices. Networks such as CBS, ESPN, and Fox offer a variety of opportunities for
fantasy football, NASCAR, and baseball enthusiasts through interactive play and
chances to compete against analysts. These sweepstakes have grand prizes targeted
toward individual players as well as entire leagues. Many of them require the use
and exchange of data over the Internet and mobile devices therefore enhancing the
opportunity for these networks to secure user profiles. Other sports agencies such
as Nike have a multitude of sweepstakes available for the consumer. Niketown.
com provides an opportunity for consumers to win gear for a year, which is $1,200
worth of merchandise. Nike promotes to its basketball fans by affording one lucky
winner the opportunity for an autographed Kobe Bryant/Aston Martin footwear set.
In addition, this sweepstakes provides 220 lucky patrons a place in line at the Staples
Center in Los Angeles, California to purchase the collectible packs, which include two
pairs of footwear and a Kobe AM leather jacket. Nike provides its golf patrons with
opportunities to win three golf vacations as well as provides opportunities through
other sweepstakes to exerience Nike’s golf and research development facility known
as “The Oven.” This includes air transportation for the winner and a guest to Fort
Worth, lodging and meals, an insider’s tour of “The Oven,” a round of golf, a chance
to demo the latest Nike golf clubs and equipment; entrance into the final round of the
Colonial PGA Tournament, and a Nike golf apparel head-to-toe gift pack.
In yet another example, the Miami Dolphins held a sweepstakes giving fans a chance
to win tickets to the game against the Giants at London’s Wembley Stadium. New
season-ticket holders were automatically entered three times, while other fans
could enter at miamidolphins.com. The grand prize included round-trip airfare, hotel
accommodations, Royal Box tickets to the game, and passes to NFL pre-parties for
four fans.
The NBA has put together packages for the NBA 2013 All Star game. Enjoy the ONLY
10
in-arena game hospitality party venue at the Arena! Below are some of the highlighted
inclusions in the NBA Events’ Exclusive in-arena Hospitality Party Venue:
X VIP Access for NBA Events Hospitality Venue
Saturday: Hospitality is open one and a half hours before events begin.
Sunday: Pre game hospitality at the NBA All-Star 2013 Game opens when the
Arena doors open (approximately 6:30pm). Post game hospitality opens at the end
of the NBA All-Star 2013 Game and closes one hour after the end of the game
X Premium Open Bar
X All of the Top-Shelf Food You Can Eat
X Meet & Greet with NBA Legends: Scheduled appearances announced soon!
X Autographed picture of our Legends55
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The Philadelphia Flyers and visitphilly.com granted fans a chance to win a trip for
two to Philadelphia for the Ultimate Flyers VIP Experience. The grand prize package
included tours of Wells Fargo Center, deluxe hotel accommodations, roundtrip airfare,
dinner for two inside Cadillac Grill, a merchandise package, a Love Philadelphia XOXO
giftbag, and a pair of premium lower level seats.
For those with a taste for horses, a gourmet luncheon, Kentucky Derby party
atmosphere, and ringside seats with spectacular views await a lucky VIP patron at
the Fidelity Investments Jumper Classic presented by Porsche. This equestrian event
affords fans the opportunity to watch in an elegant setting some of the nation’s top
riders and horses. Additional amenities include enjoying a sampling of local liquors
and wines while the ladies can participate in a hat contest judged by a panel of local
magazine editors.
Sampling
One of the most effective ways of inducing customers to try new products that are being
introduced is sampling. Unfortunately, it is very difficult to give away a small portion
of a sporting event. However, sports have been known to put on exhibitions to give
consumers a “taste” for the game. Squash demonstration matches have been held in
the middle of New York’s Grand Central Station, attracting thousands of fans who would
have never otherwise been exposed to the sport. The Olympics, of course, have used
demonstration sports since 1904, in sports such as roller hockey and bandy (soccer on
ice), to provide a “sample” of the action to spectators. If fan interest is high enough (i.e.,
attendance), the sport can then become a medal sport in the next Olympiad.
In yet another example, the NCAA has often partnered with a variety of companies
to provide product samples to consumers to be distributed in conjunction with NCAA
March Madness. Examples include the distribution of one million samples of Nivea
for Men where employees outfitted as referees, cheerleaders, and basketball players
distributed the products both on college campuses and in the streets to prospective
consumers. In a more recent example of sampling, Kraft Foods’ U.S. Snacks business
teamed with the NCAA and CBS Sports to become an Official NCAA Corporate
Partner for several of its flagship snack brands, including Planters, Ritz, Oreo and
Wheat Thins. The partnership includes promotional and marketing rights for the NCAA
and all 89 of its men’s and women’s championships. The initial sampling effort during
NCAA March Madness featured Wheat Thins snacks and two of the company’s
newest snack products: Ritz Munchables pretzel crisps and Planters Flavor Grove
almonds and cashews. In addition, in people were able to follow Mr. Peanut’s Road to
the NCAA Final Four in Indianapolis by becoming fans of Mr. Peanut on Facebook.
Point-of-purchase displays
Point-of-purchase or P-O-P displays have long been used by marketers to attract
consumers’ attention to a particular product or retail display area. These displays or
materials, such as brochures, cut-outs, and banners, are most commonly used to
communicate price reductions or other special offers to consumers. For instance,
tennis racquet manufacturers, such as Prince, design huge tennis racquets, which are
then displayed in the storefronts of many tennis retail shops to catch the attention
of consumers. The Super Bowl, an American classic, provides a forum where many
official sponsors and non-sponsors of the game utilize point-of-purchase display tie-ins
to interact and attract consumers.
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Companies like Heineken have been innovative with their use of point-of-purchase
displays with events such as the U.S. Open. Heineken launched an upscale aluminum
bottle to U.S. consumers and the bottle when viewed under a black light revealed
hidden patterns of stars and trails. In addition to the black light properties, the 16-
ounce bottle displayed a progressive European design which further indicated the
upscale style and attitude to Heineken’s consumers.
Coupons
Another common sales promotion tool is the coupon. Coupons are certificates
that generally offer reductions in price for sports products. Coupons may appear in
print advertisements, as part of the product’s package, inserted within the product
packaging, be mailed to consumers, printed on or part of an admissions ticket, or
be offered as part of a social media strategy. Labeled by many to be a new “social
sport” couponing offers an inexpensive way to try something new, often with
an emphasis on local business. In fact, the business has its own terminology; for
example, “stacking” means using both a manufacturer’s coupon and store coupon for
purchase. Consumer’s reasons for utilizing coupons range from critical issues like the
economy to simpler reasons such as freeing up more money to spend on fun activities.
The idea for many of being able to go out for a meal with friends or family at a
discounted price, while also trying out a new sport venue, game or show is a valuable
brand asset. Today many organizations utilize social media platforms to gain exposure
to key demographics. Surprisingly, the demographic users are wealthier and younger
than most people would expect. In many instances, it provides a business a unique
opportunity to attract new customers, without spending a fortune on advertising.
Couponing is a great way to get people to attend an event, but the task of turning it
into repeat purchase or profit lies with the business. For example, utilizing couponing
to secure patrons to participate at a fitness center or bowling alley is one thing, getting
them to repeat the use or purchase is another. Although coupons have been found
to induce short-term sales, there are disadvantages. For instance, some marketers
believe continual coupon use can detract from the image of the product in the minds
of consumers. It is not a forum that should be utilized with every game or event,
but may be utilized several times a year and continue to attract consumers. Another
concern is that couponing only affords business an opportunity to make back a portion
of the profit. In addition, most coupon redemption is done by consumers who already
use the product, therefore limiting the use of coupons to attract new customers.
Public relations 10
The final element in the promotional mix that we discuss is public relations. Quite
often, public relations get confused with other promotional mix elements. Public
relations often gets mistaken for publicity. This is an easy mistake to make because
the goals of public relations and publicity are to provide communication that will
enhance the image of the sports entity (athlete, team, or league). Before we make
a distinction between public relations and publicity, let us define public relations.
Public relations is the element of the promotional mix that identifies, establishes, and
maintains mutually beneficial relationships between the sports organizations and the
various publics on which its success or failure depends.
Within the definition of public relations, reference is made to the “various publics”
with which the sports organization interacts. Brooks divides these publics into the
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external publics, which are outside the immediate control of sports marketers, and
the internal publics, which are more directly controlled by sports marketers. The
external publics include the community (e.g., city and state officials, community
members, corporations), sanctioning bodies (e.g., NCAA), intermediary publics (e.g.,
sports marketing agencies), and competition (e.g., other sports or entertainment
choices). The internal publics, such as volunteers, employees, suppliers, athletes, and
spectators, are associated with manufacturing, distributing, and consuming the sport
itself.
Sports marketers have a variety of public relations tools they can use to communicate
with the internal and external publics. The choice of tools depends on the public
relations objective, the targeted audience, and how public relations are being
integrated into the overall promotional plan. These tools and techniques include
generating publicity (news releases or press conferences), participating in community
events, producing written materials (annual report or press guides), and even lobbying
(personal selling necessary for stadium location decisions).
Former Notre Dame’s sports information director Roger Valdiserri is regarded by some
to be the best ever at his profession. Though maybe best known for the changing
of Joe Theismann’s name from THEES-man to THEIS-man – which happened to
rhyme with Heisman, Valdiserri, in his 30 year tenure, pioneered the use of a variety
of publicity concepts that are still in use today. For example, he prerecorded coach
Ara Parseghian’s answers and presented them to the media, thereby dramatically
reducing the time that Parseghian had to spend meeting enormous media demands.
He was the king of balancing precious access time. He maximized constituents’ effort
by affording individuals the opportunity to just do their jobs.
One of the most important and widely used public relations tools is publicity. Publicity
is the generation of news in the broadcast or print media about a sports product. The
news about a sports product is most commonly disseminated to the various sports
publics through news releases and press conferences. Although public relations
efforts are managed by the sports organization, publicity can sometimes come from
external sources. As such, publicity might not always enhance the image of the
sports product. Research by Funk and Pritchard (2005) noted that less committed
readers tended to recall more facts from negative articles, while committed fans
tended to counter-argue with more favorable thoughts.56 Because publicity is often
outside the control of the sports organization, it is seen as a highly credible source
of communication. Information that is coming from “unbiased” sources, such as
magazines, newspaper articles, or the televised news, is perceived to be more
trustworthy.
In addition to publicity, another powerful public relations tool used to enhance the
sports organization’s image is community involvement. A study was conducted to
determine what, if anything, professional sports organizations are doing in the area
of community relations. The survey specifically examined the NBA, NHL, NFL, and
MLB to determine how they are involved in community relations and how important
community relations are to their overall marketing program. All the responding teams
indicated they were involved in some sort of community program, with the most
common form of community involvement being (1) sponsoring public programs (e.g.,
food and toy drives, medical programs and services, auctions, and other fund raisers);
(2) requiring time commitment from all of the sports organizations’ employees; (3)
partially funding programs; and (4) providing personnel at no charge. Interestingly, the
study found no differences among the importance of community relations by type
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of league. In other words, the NBA, NHL, NFL, and MLB are all equally involved in
community relations.57
For example, the Green Bay Packers community outreach program takes many
forms. The Packers sponsor special fundraising events, make donations of cash and
memorabilia to many charitable organizations, make personal appearances and serve on
various community boards and commissions. The Cleveland Browns have many diverse
offerings as well. A few highlights include: Annually the Cleveland Browns Foundation
positively impacts the lives of more than 10,000 children in NE Ohio; Browns players
have participated in the NFL-USO All-Star tour; with the Browns Play 60 Challenge
students logged more than 7 million minutes of activity; Browns staff have volunteered
to support multiple initiatives offered through the organization, accumulating more than
2000 hours of volunteer service.58 The NFL and United Way have partnered, e.g., NFL
Hometown Huddle program, in an ongoing effort to inspire people to become more
engaged in the community. Campaigns such as NFL United Way and NFL Play 60 afford
each organization within the league the opportunity to put their added touches to impact
the community locally, all the while retaining national identity and publicity. The NFL Play
60 goal is to make the next generation of youth the most active and healthy.
Other examples of the community involvement and outreach component of public
relations are shown with the Nashville Predators, Philadelphia Eagles and Pittsburgh
Pirates. The Predators players took part in Predators Community Day, a “day of
service where nearly every member of the team made an appearance in Middle
Tennessee” and interacted with fans at locations including the airport, Supercuts, and
Hardee’s. The idea was to expand on the normal team participation events by making
it a day-long experience.”
The Philadelphia Eagles reimburses its employees living in the Philadelphia region
and New Jersey who purchase wind energy, making it the first organization to pick
up this type of cost for employees. The Eagles presented their Go Green program,
which was launched in 2003, during the NFL Business Summit in 2007, as other NFL
team representatives shared best practices in the areas of business, marketing, and
community relations. Eagles owner Christina Lurie noted that they hope to serve as
an example for NFL teams and the corporate sector. “The topic of greening in sports
is especially important in cities like Philadelphia with professional teams and sports
arenas. Game days have a huge environmental impact considering traffic, trash,
energy and material consumption, and water use. They are also opportunities for
education and awareness.”59
The Pittsburgh Pirates continue their community-minded tradition of donating half the
ticket sales from a handful of games to such programs as the Boys & Girls Clubs, the
10
United Way of Manatee County, the Manatee Education Foundation, and Wakeland
Elementary School, which is located across the street from the Pirate City training
complex. Additionally, the organization held a PirateFest street celebration, staged
before the game against the Minnesota Twins. The festival featured numerous
family activities and free player autographs. Taking another step to cement the bond
between team and city, the Pirates increased their charitable efforts. Pitchers Matt
Capps and Josh Sharpless and the Pirate Parrot mascot visited children in the pediatric
unit of Manatee Memorial Hospital.
The Pirates also held a three-day silent auction inside McKechnie Field that raised
almost $8,000 for the Foundation for Dreams Inc., which provides fun, educational,
and recreational experiences at Dream Oaks Camp for children with physical and
423
developmental disabilities and serious illnesses. A Sidney Crosby Pittsburgh Penguins
hockey jersey drew the top bid of $1,500. “We want to make sure we’re always
giving back to the community, since the city of Bradenton and Manatee County
have been so generous to us,” said Trevor Gooby, the Pirates’ director of Florida
operations. “As part of our efforts, we try to help a lot of (charitable) groups in
Manatee County throughout the course of the year that need items for a silent auction
or a golf tournament.”60
Although community involvement benefits any number of stakeholders in the
organization, it is typically more than philanthropy alone. As suggested in the
accompanying article, sports entities are reaping the rewards of their goodwill.
NBA CARES EVOLVING AFTER 5 YEARS OF SERVICE

NBA Cares surpassed goals of 1 Looking ahead, Kathy Behrens,
million service hours and $100 the NBA’s executive vice president
million in charitable donations. of social responsibility and player
The NBA Cares social responsibility programs, would not disclose specific
program marks its fifth anniversary future spending goals, but said NBA
this week with the effort counting Cares increasingly will focus on the
more than $145 million given to league’s NBA Fit program, which
charity, far surpassing the $100 targets improving youth health, and
million goal set by the league when addressing environmental issues.
the initiative launched in 2005. “The [NBA Fit] program is
NBA Cares also has generated 1.4 becoming important and so is our
million hours of hands-on service green effort,” Behrens said. “Five
and has helped complete 527 “live, years ago, [green] wasn’t on our
learn or play” projects, such as the radar screen.”
construction of new homes, the Before 2005, while the NBA was
creation of reading and learning involved in charitable works such as
centers, and the development of new its Read to Achieve program and its
or refurbished basketball courts. Basketball Without Borders effort,
When NBA Commissioner David there wasn’t a single program that
Stern announced the creation of NBA brought all of the league’s, the teams’
Cares on Oct. 18, 2005, the five-year and the players’ charitable doings
plan was to generate 1 million hours together. NBA Cares became that
of service and build 100 “live, learn or umbrella operation that also provides
play” projects – a term created by the flexibility for teams and players to
league for the program – as well as select their own local community
donate $100 million to charity. partners.
“NBA Cares is what we had hoped “We obviously have surpassed
it would be, not necessarily what our goals, but it wasn’t as much
we thought it would be,” Stern said. about the numbers as it was about
“It has become a descriptive phrase believing in the importance of getting
for our social programs. Because our teams, players and employees
of what we do and who we are, we out in the community,” Behrens
are obligated to become leaders in said. “[NBA Cares] has deepened the
social responsibility, and NBA Cares connection to the community and
has become the central focus of our strengthened the opportunity for our
obligation.” players to give back.”
424
NBA Cares is aligned with a staff, and that piece is still important
variety of charitable programs, with to us,” Behrens said.
the league’s list of 40 community The NBA’s creation of this singular
partners including UNICEF, the charitable mission has been noticed
Boys and Girls Clubs of America, by other leagues, which have worked
Habitat for Humanity, and KaBoom! to boost their charitable efforts in
playgrounds. recent years as well. Major League
“The partnerships are on both Baseball, for example, has created
sides,” Behrens said. “We think we its Beyond Baseball charitable
partner with the most well-respected program, while the NFL, NHL and
organizations in the world. We didn’t MLS have beefed up their own social
want to recreate the wheel. We want responsibility efforts in the past few
to find great organizations, shine the years.
light on them, and let them do their “Whether it is called community
work.” relations or social responsibility,
While funding outside charitable leagues around the world are
efforts, the NBA also emphasizes engaged,” David Stern said. “World
direct team and player involvement Cup and Olympics bids now talk
in local, national, and international about social responsibilities and
causes as part of NBA Cares, which legacies, and we have helped
is led by Behrens and a 12-member redefine the definition of private
staff. participation in social responsibility.”
“The NBA above all other leagues
NBA Cares
has been philanthropic in a strategic
NBA Cares, the league’s global social
way,” said Caryl Stern, chief
responsibility program, celebrated
executive officer of the U.S. fund
its fifth anniversary in October 2010.
for UNICEF and who is unrelated to
Since October 2005, NBA Cares has
the NBA commissioner. “There is
provided more than1.5 million hours
a dedicated strategy on how they
of hands-on service, donated more
support us on a number of different
than $150 million to charity and
levels. It is not just writing a check.
created more than 560 places where
They want to see results, and I am
children and families can live, learn or
in touch with the NBA on almost a
play. NBA Cares continues to rely on
weekly basis.”
the expertise of its partners and the
One of the more notable efforts in
the five-year history of NBA Cares
was the league’s Day of Service
dedication of the league and its teams
and players to address important
social issues around the world.
10
project centered on the 2008 NBA All-
The NBA is committed to leaving
Star Game in hurricane-ravaged New
a lasting legacy in communities
Orleans. The high-profile program
around the world. As part of that
included players, league sponsors
commitment, the NBA has created
and league employees participating
more than 560 places where children
in a rebuilding effort throughout the
and families can live, learn or play.
city. The project proved so successful
These new and refurbished basketball
that it has become a staple of
courts, libraries, playgrounds, homes
subsequent All-Star weekends.
and technology rooms are created
“Katrina was impactful, and
in partnership with community and
helping families during [All-Star]
marketing partners, and provide
weekend resonated with players and
425
key resources that pave the way for local green initiatives. During NBA
communities’ future success. Green Week each April, the league
As part of the NBA’s commitment and teams join together to take part
to social responsibility, community in green efforts, including hands-on
outreach and volunteer engagement community service projects, recycling
are integral to the NBA’s business programs, green giveaways, auctions
and its connection with fans and to support environmental protection
partners. The league coordinates a organizations and promotions to
wide-reaching effort among NBA encourage fans to “go green.”
teams and players, community The NBA believes in the power
partners, nonprofit organizations of sport to bring attention to
and business partners to benefit important global issues. Working
communities worldwide. Through with internationally recognized
campaigns such as NBA Cares Week organizations, the NBA hosts NBA
of Service and NBA Cares Season of Cares events alongside its Basketball
Giving, or programs such as Coaches without Borders, NBA Europe Live,
for Kids and Vaccines for Teens, NBA China Games, Jr. NBA/Jr. WNBA
the NBA family works to impact programs and at other grassroots
communities year round. events to contribute to communities
NBA FIT, the league’s worldwide. Through these events, the
comprehensive health and wellness NBA family invests time and money
program, promotes healthy, active in social issues, including HIV/AIDS
lifestyles for children and adults of awareness, malaria prevention and
all fitness levels. Through programs, natural disaster relief efforts. Since
grassroots events, products and a October 2005, the NBA has built 93
nationwide network of community places in 22 countries and territories
partners, the league, its teams where children and families can live,
and players are encouraging kids, learn or play, demonstrating the
adults and families to pledge NBA NBA’s commitment to improving lives
FIT. During the annual NBA FIT around the world.
Live Healthy Week, the NBA Family Through WNBA Cares, WNBA
joins community members and teams and players dedicate their time
partners to highlight the importance and efforts to various cause-related
of a healthy, active lifestyle. Events campaigns and programs. The WNBA
include hosting fitness clinics, promotes programs that emphasize a
offering healthy living tips from NBA healthy lifestyle, positive body image,
FIT team members, health screenings breast health awareness, youth and
and inspiring fans to make positive family development and education.
fitness and nutritional choices. NBA The WNBA and its teams and players
Green, created in partnership with the work to make a difference in their
Natural Resources Defense Council communities.
(NRDC), is a league wide program Through NBA D-League Cares, the
that generates awareness and funds NBA Development League addresses
for protecting the environment and important social issues with a special
promoting sustainable practices. emphasis on education, health and
Through NBA Green, the league and wellness and community building.
its teams and players are taking steps The NBA D-League and its teams host
to be more environmentally friendly a variety of outreach programs to
and encouraging fans to take part in help improve the lives of the people
426
who live and work in their nearby important social issues, and provide
communities. With these programs, community organizations with the
teams establish close connections unique opportunity to highlight their
to their communities, offering great work. For more information on
unparalleled time and access to the these organizations, the NBA’s latest
players, coaches and staff. community outreach efforts, and how
With the help of these you can join the team, please visit:
internationally recognized partners, www.nbacares.com.
NBA Cares continues to leave
a lasting legacy of service and Source: Article author: John Lombardo;
philanthropy in communities http://www.sportsbusinessdaily.com/
worldwide. These partnerships allow Journal/Issues/2010/10/20101018/Leagues-
and-Governing-Bodies/NBA-Cares.aspx.
the NBA to support a variety of
Credit: Sports Business Journal.
Summary budgets for the advertising campaign are

considered. Budget techniques, such as
Chapter 10 focuses on gaining a better competitive parity, objective and task,
understanding of the various promotional arbitrary allocation, and percentage of
mix elements. Advertising is one of the sales, are commonly used by advertisers.
most visible and critical promotional mix
Once the objectives and budget have
elements.
been established, the creative process
Although most of us associate advertising is considered. The creative process
with developing creative slogans and identifies the ideas and the concept of the
jingles, there is a systematic process advertisement. To develop the concept for
for designing effective advertisements. the advertisement, benefits of the sports
Developing an advertising campaign product must be identified; ad appeals
consists of a series of five interrelated (e.g., health, emotional, fear, sex, and
steps, which include formulating pleasure) are designed; and advertising
objectives, designing an ad budget, execution decisions (e. g., comparative
making creative decisions, choosing advertisements, slice of life, and scientific)
a media strategy, and evaluating the are made. After creative decisions are
advertisement. crafted, the next phase of the advertising
Advertising objectives and budgeting campaign is to design media strategy.
techniques are similar to those discussed
in Chapter 9 for the broader promotion
Media strategy includes decisions about
how the medium (e.g., radio, television,
10
planning process. Advertising objectives and Internet) will be most effective and
are sometimes categorized as either how to best schedule the chosen media.
direct or indirect. Direct advertising Another communications tool that is part
objectives, such as advertising by sports of the promotional mix is personal selling.
organizations to end users and sales Personal selling is unique in that person-
promotion advertising, are designed to to-person communication is required
stimulate action among consumers of rather than mass communication. In
sport. Alternatively, the goal of indirect other words, a salesperson must deliver
objectives is to make consumers the message face to face to the intended
aware, enhance the image of the sport, target audience rather than through
or provide information to consumers. some medium (e.g., a magazine) that is
After objectives have been determined, not personal. Although there are many
427
advantages to personal selling, perhaps samples, point- of purchase displays, and
none is greater than the ability to use coupons are forms of sales promotion
personal selling to develop long-term that often are integrated into the broader
relationships with customers. promotional mix.
In today’s competitive sports marketing A final promotional mix element
environment, a number of strategies have considered in Chapter 10 is public, or
been developed to maximize personal community, relations. Public relations is
selling effectiveness. One process, the element of the promotional mix that
designed by Miller and Heiman, is called identifies, establishes, and maintains
the strategic selling process and consists mutually beneficial relationships
of six elements. The elements, which between the sports organization and the
must be considered for successful selling, various publics on which its success or
include buying influences, red flags, failure depends. These publics include
response modes, win-results, the sales the community, sanctioning bodies,
funnel, and the ideal customer profile. intermediary publics, and competition.
Sales promotions are another element Other publics include employees,
in the promotional mixes that are suppliers, participants, and spectators.
designed primarily to stimulate consumer The tools with which messages are
demand for products. One of the most communicated to the various publics
widely used forms of sales promotion include generating publicity, participating
in sports marketing includes premiums, in community events, producing written
or items that are given away with materials such as annual reports and
the core product being purchased. In press releases, and lobbying.
addition, contests and sweepstakes, free
Key terms X expertise X relationship marketing

X fear appeals X response modes
X advertising X flighting schedule X roles
X advertising appeals X frequency X sales funnel
X advertising budgeting X growth mode X sales promotions
X advertising execution X health appeals X sampling
X advertising objectives X ideal customer X scientific
X attractiveness X indirect objectives advertisements
X buying influences X lifestyle X sex appeals
X coach’s role advertisements X slice-of-life
X community X media scheduling advertisements
involvement X media strategy X stacking
X comparative X one-sided versus X stadium signage
advertisements two-sided X strategic selling
X continuous schedule X overconfident mode X sweepstakes and
X coupons X personal selling contests
X creative brief X pleasure or fun appeals X technical buying role
X creative decisions X P-O-P displays X testimonials
X creative process X premiums X trouble mode
X credibility X promotional mix X trustworthiness
X direct objectives elements X user buying role
X economic buying role X public relations X win-results
X emotional appeals X pulsing schedule
X even keel mode X reach
428
Review questions 3. Attend a professional or collegiate

sporting event and describe all the
1. What are the major steps in forms of advertising you observe.
developing an advertising campaign? Which forms of advertising do you
2. Explain direct advertising objectives feel are particularly effective, and
versus indirect advertising why?
objectives. 4. Visit a sporting goods retailer and
3. Describe the creative decision describe all the sales promotion tools
process. What are the three that you observe. Which forms of
outcomes of the creative process? sales promotion do you believe are
4. Discuss, in detail, the major particularly effective, and why?
advertising appeals used by sports 5. Interview the director or manager
marketers. Provide at least one of ticket sales for a professional
example of each type of advertising organization or collegiate sports
appeal. program to determine their sales
5. What are the executional formats process. How closely does their sales
commonly used in sports marketing process follow the strategic selling
advertising? process outlined in this chapter?
6. Comment on the advantages and 6. Interview the marketing department
disadvantages of using athlete (or director of community/public
endorsers in advertising. relations) from a professional
7. What two decisions do advertisers organization or collegiate sports
make in developing a media program to determine the extent of
strategy? What are the four basic their community or public relations
media scheduling alternatives? efforts. How do sports organizations
Provide an example of each type of decide in which community events
media scheduling. or activities to participate?
8. Discuss the strengths and
weaknesses of the alternative forms Internet exercises
of advertising available to sports
marketers. 1. Using the Internet, find two examples
9. When is personal selling used by of advertisements for sports products
sports marketers? Describe, in detail, that use indirect objectives and two
the steps in the strategic selling examples of advertisements that use
process. direct objectives.
2. Find 10 advertisements on the
10. Describe the various forms of
sales promotion available to sports
marketers.
Internet for sports products and
describe the executional format for
10
each advertisement. Which type of
Exercises execution format is most commonly
used for Internet advertising?
1. Design a creative advertising
strategy to increase participation in Endnotes
Little League Baseball.
1 MKTGINC, Portfolio, Nike World Basketball
2. Design a survey instrument to Festival. Available from: http://mktg.com/#/
assess the source credibility of 10 project/nike-world-basketball-festival/wbf-
professional athletes (of your choice) page-1, accessed March 17, 2014.
2 Ibid.
and administer the survey to 10
3 See, for example, Joel Evans and Barry
individuals. Which athletes have the Berman, Marketing, 6th ed. (New York:
highest levels of credibility, and why? Macmillan, 1994), 610.
429
4 IBISWorld, “Gym, Health & Fitness Clubs 21 “NASCAR Revamps its Penalty Structure,
Market Research Report,t | NAICS 71394” Appeals Process,” Dothanfirst.com
(| February 2014). Available from: http:// (February 4, 2014). Available from: http://
www.ibisworld.com/industry/default. www.dothanfirst.com/story/d/story/nascar-
aspx?indid=1655, accessed May 9, 2014. revamps-its-penalty-structure-appeals-
5 Ibid. proce/22217/tJ2ppMXyC0iwq9KJ2Ok7tA,
6 “Physical Activity & Older Americans,” accessed March 19, 2014.
Agency for Healthcare Research & Quality. 22 Kevin Seifert, “Enough Is Enough,”
U.S. Department of Health & Human Minneapolis Star Tribune (April 11, 2007), 3C.
Services (June 2010). 23 Terry Lefton, “The Post-Mike Millennium –
7 William A. Sutton, Mark A. McDonald, Gatorade Advertising, Post-Michael Jordan,”
George R. Milne, and John Cimperman, Brandweek (January 3, 2000).
“Creating and Fostering Fan Identification 24 Rich Thomaselli, “$192 Million: Nike Bets
in Professional Sports,” Sport Marketing Big on Range of Endorsers,” Advertising Age
Quarterly, vol. 6, no. 1 (1997), 15–22. (January 5, 2004), 8.
8 “Maria Sharapova Inks Deal with Tiffany & 25 Mark Hyman, “Dead Men Don’t Screw Up
Co.” BrandDunk (May 22, 2008). Ad Campaigns,” Business Week (March 10,
9 “Maria Sharapova Signs Three-Year 1997), 115.
Sponsorship Deal With Samsung,” www. 26 Thales Teixeira, “World Cup Soccer:
bloomberg.com (April 3, 2012). 770 Billion Minutes Of Attention,”
10 Mark Levit, “Sex in Advertising: Does it Forbes.com (June 13, 2014). Available
Sell?” Partners & Levit Advertising – Alrakboa from: http://www.forbes.com/sites/
Sundanese Website. Available from: http:// hbsworkingknowledge/2014/06/13/world-
www.alrakoba.net/articles2/showarticle. cup-soccer-770-billion-minutes-of-attention/,
php?article=2120, accessed June 22, 2014. accessed June 22, 2014.
11 Dan Patrick, “Hope Solo Talks About Effect of 27 Ibid.
Sex Appeal In Marketing Female Athletes,” 28 Kurt Badenhausen, “NFL Stadiums: By the
The Dan Patrick Show (August 22, 2011). Numbers,” Forbes.com (August 14, 2013).
12 Brent Kelley, “Wilhelmina W7 photos,” Available from: http://www.forbes.com/sites/
About.com Sports Golf. Available from: kurtbadenhausen/2013/08/14/nfl-stadiums-
http://golf.about.com/od/golferswomen/ss/ by-the-numbers/, accessed June 22, 2104.
wilhelmina7.htm, accessed June 22, 2014. 29 Jay Gladden, “The Ever Expanding Impact
13 Alan Shipnuck, “Is Marketing the Sex Appeal of Technology on Sport Marketing, Part
of LPGA Golfers Good for the Game?” II,” Sport Marketing Quarterly, vol. 5, no. 4
Sports Illustrated (July 2009). Available (1996), 9–10.
from: http://www.sportsbusinessdaily.com/ 30 Douglas Turco, “The Effects of Courtside
Daily/Issues/2011/08/24/Marketing-and- Advertising on Product Recognition and
Sponsorship/Hope-Solo.aspx. Attitude Change,” Sport Marketing Quarterly,
14 Kevin Seifert, “Enough Is Enough,” vol. 5, no. 4 (1996), 11–15.
Minneapolis Star Tribune (April 11, 2007), 3C. 31 Wayne Friedman, “Intermedia Measures
15 Rachel Blount, “Selling Sex and Sports Isn’t Product Placements; Study Shows No
Working,” Minneapolis Star Tribune (April 16, Correlation Between Ratings, Effectiveness,”
2007). Television Week (December 15, 2003), 4.
16 William Wei, “Tiger Woods lost $22 Million 32 Marla Matzer Rose, “Firms Gauge Product
in Endorsement in 2010,” BusinessInsider. Placements,” The Hollywood Reporter
com (July 2010). (January 20, 2004).
17 “Rosie Ruiz Tries to Steal the Boston 33 George Belch and Michael Belch, Advertising
Marathon” Running Times (July 1, 1980). and Promotion: An Integrated Marketing
Available from: http://www.runnersworld. Communications Perspective, 4th ed. (New
com/rt-miscellaneous/rosie-ruiz-tries-steal- York: Irwin, McGraw-Hill 1998), pp. 431–434.
boston-marathon, accessed March 19, 2014. 34 Joe Layden, “Human Billboards,” in Mark
18 Christian Red, Teri Thompson, and McCormack’s Guide to Sports Marketing,
Michael O’Keeffe, “Feds Unleash a Bonds International Sports Marketing Group (1996),
Blast: Indictment Hits HR King for Lying, 129–136.
Obstruction,” New York Daily News 35 “Global Games Market Report 2014,”
(November 16, 2007), 90. Newszoo (May 15, 2014). Available from:
19 Craig Christopher, “Top 10 Worst http://www.newzoo.com/insights/global-
Sporting Cheats from Around the Globe,” games-market-will-reach-102-9-billion-2017,
BleacherReport (April 13, 2010). accessed June 23, 2014.
20 Viv Bernstein, “No More Cutting Corners 36 Entertainment Software Association, “In-
as NASCAR Seeks a Clean Start,” The New Game Advertising.” Available from: http://
York Times (February 18, 2007), 1. www.theesa.com/games-improving-what-
430
matters/advertising.asp, accessed June 23, 50 David Broughton, “Giveaways Grow
2014. as the When and Why Evolve,”
37 Terry Lefton, “Will In-Game Advertising Street & Smith’s Sport Business Daily
Catch Fire?” Sports Business Journal (November 1, 2010). Available from:
(January 15, 2007), 19. http://www.sportsbusinessdaily.com/
38 Ibid. Journal/Issues/2010/11/20101101/
39 “Online Insights: Sports Fans and Digital Marketingsponsorship/Giveaways-
Media A Scorecard on Preferences and grow-as-the-when-and-why-evolve.
Behaviors,” BurstMedia (September 2012). aspx?hl=Ping&sc=0, accessed June 23,
Available from: http://burstmedia.com/pdf/ 2014.
burst_media_online_insights_2012_09.pdf, 51 John Tulchin, “Happy Meals and
accessed June 23, 2014. Ticket Sales,” In Stadium Promotions
40 “Sports Fans Turn to Content Online to Stay (November 9, 2010). Available from: http://
Informed,” PR Newswire (2012). Available www.instadiumpromotions.com/blog/
from: http://www.prnewswire.com/news- uncategorized/premiums/, accessed June 23,
releases/sports-fans-turn-to-content-online- 2014.
to-stay-informed-174570471.html, accessed 52 Ed Willes, “A Legacy of Slapstick and Slap
June 23. 2014. Shots,” New York Times (November 30,
41 Nora Macaluso, “One Year Ago: Report: 1997), 33.
New Profile for ‘Typical’ Web Surfer,” 53 Rob Dauster, “How a Perfect NCAA
E-Commerce Times.com (October 16, Tournament Bracket Will Win You a Billion
2001). Available from: http://www. Dollars,” Collegebasketballtalk.nbcsports.
ecommercetimes.com/story/14057.html, com (January 21, 2014). Available from:
accessed June 22, 2014. http://collegebasketballtalk.nbcsports.
42 Masha Geller, “Reaching Young Sports Fans com/2014/01/21/how-a-perfect-ncaa-
Online,” MediaPostNews (March 12, 2003). tournament-bracket-will-win-you-a-billion-
Available from: http://www.mediapost.com/ dollars/, accessed March 21, 2014.
publications/article/16862/reaching-young- 54 Ibid.
sports-fans-online.html. 55 “NBA Pick Your Play Sweepstakes.”
43 “Sports Fans Twice as Likely to Watch Available from: http://www.nba.com/
Videos on Mobile Phones,” European webAction?actionId=surveyInitialize&tar
Interactive Advertising Association (June get=/analysis/nba_start_of_the_season.
2008). jsp&surveyId=1316.
44 Raechel Johns, “Sports Promotion & The 56 Daniel C. Funk and Mark P. Pritchard,
Internet,” Cyber-Journal of Sport Marketing “Sports Publicity: Commitment’s Moderation
vol.1, no. 4 (1997). Available from:, http:// of Message Effects,” Journal of Business
fulltext.ausport.gov.au/fulltext/1997/cjsm/ Research, vol. 59, no. 5 (2006), 613–621.
v1n4/johns.htm. 57 Denise O’Connell, “Community Relations
45 Fred Beasley, Matthew Shank, and Rebecca in Professional Sports Organizations,”
Ball, “Do Super Bowl Viewers Watch the unpublished master’s thesis, The Ohio State
Commercials?” Sport Marketing Quarterly, University, Columbus, Ohio.
vol. 7, no. 3 (1998), 33–40. 58 Cleveland Browns 2013 Media Guide,
46 Philip Kotler and Gary Armstrong, Marketing: Cleveland Browns Incorporated (2013).
An Introduction, 4th ed. (Upper Saddle River, Available from: http://prod.static.browns.
47
NJ: Prentice Hall, 1997).
Sean Brenner, “Pursuing Relationships
in Professional Sport,” Sport Marketing
clubs.nfl.com/assets/docs/pdf/Cleveland-
Browns-Media-Guide.pdf, accessed June 23,
2014.
10
Quarterly, vol. 6, no. 2 (1997), 33–34. 59 “Philadelphia Eagles to Reimburse
48 Robert Miller and Stephen Heiman, Strategic Employees for Purchasing Wind Energy;
Selling (New York: Warner Books, 1985). During 2007 NFL Business Summit, Eagles
49 Mark Maske and Les Carpenter, “Player Owner Christina Lurie Hopes to Send a
Arrests Put the NFL in a Defensive Mode,” Message,” PR Newswire US (April 11, 2007).
WashingtonPost.com (December 16, 2006). 60 Mike Henry, “Pirates Increase Charitable
Available from: http://www.washingtonpost. Work: Team Tries to Give Back to Its Spring
com/wp-dyn/content/article/2006/12/15/ Home of 38 Years,” The Bradenton Herald
AR2006121502134.html, accessed June 23, (March 29, 2007).
2014.
431
CHAPTER 11
Sponsorship programs
• Comment on the growing importance of sports sponsorships as a
promotion mix element.
• Design a sponsorship program.
• Understand the major sponsorship objectives.
• Provide examples of the various costs of sponsorship.
• Identify the levels of the sports event pyramid.
• Evaluate the effectiveness of sponsorship programs.
11 Sponsorship programs
SCHEURING SPEED SPORTS ANNOUNCES PARTNERSHIP

WITH FORD MOTOR COMPANY
AURORA, Minn (July 24, 2013) F-150 is part of the Ford F-Series
Professional Snocross racing lineup. Now in its 65th year, F-Series
team Scheuring Speed Sports has been the best-selling truck in
announced today a new partnership America for 36 consecutive years, the
with Ford Motor Company to best-selling vehicle in America for
promote the best-selling Ford 31 consecutive years, and the brand
F-Series Trucks. with the most trucks on the road with
“I am extremely proud to partner more than 250,000 miles, as certified
with Ford,” said team owner Steve by Polk.
Scheuring. “With incredible gas The 2013 Ford F-150 features up to
mileage, great towing capabilities, 11,300 pounds of towing capability
and a first class ride, it’s obvious and best-in-class 3,120 pounds of
why the Ford F-150 is America’s best- payload. F-150 is available with
selling truck. The F-150 is the perfect four powertrains including a 6.2-
vehicle to transport our team long liter V8, a 5.0-liter V8, a 3.7-liter V6
distances to races around the and the segment-exclusive 3.5-liter
country, often through challenging EcoBoost®.
winter conditions” Scheuring speed sports is the
Scheuring Speed Sports will original Super Team in the world
stop by local Ford dealerships of Snocross racing and was the
prior to each AMSOIL first team to bring non-endemic
Championship Snocross Series sponsors into the world of
National races this winter. The snowmobile racing. Scheuring Speed
team will give away promotional Sports has two of the top drivers in
merchandise and race tickets to the world, #11 Tim Tremblay, and #4
customers who test drive a new Ford Robbie Malinoski.
F-150.
Scheuring Speed Sports will also Source: http://www.isocracing.
feature their Ford F-150 pickups com/2013/09/13/scheuring-speed-sports-
at numerous off-track promotions announces-partnership-with-ford-motor-
company/.Copyright © isoracing.com,
throughout the 2013-14 Snocross
Steve Scheuring.
season.
Growth of sponsorship
The opening scenario is just one example of Scheuring Speed Sports and Ford using
sponsorship to help achieve their marketing objectives. A wide variety of organizations
11
are realizing that sports sponsorships are a valuable way to reach new markets and
retain an existing customer base. Sponsorships can increase sales, change attitudes,
heighten awareness, and build and maintain relationships with consumers. It is no
wonder that sponsorships became the promotional tool of choice for sport marketers
and continue to grow in importance. Before we turn to the growth of sponsorship as a
promotional tool, let us define sponsorship.
In Chapter 9, sponsorships were described as one of the elements in the promotional
mix. More specifically, sponsorship was defined as investing in a sports entity
433
(athlete, league, team, or event) to support overall organizational objectives,
marketing goals, and promotional strategies. The sponsorship investment may come
in the form of monetary support and trade. For example, nonrevenue sports have
been the biggest winners in the University of Kansas Athletics Department’s six-
year, $26-million sponsorship deal with Adidas.1 Adidas is sponsoring the university’s
athletics program to support their marketing objective of increasing awareness of
their brand and to associate with a winning NCAA program. Understanding how
sponsorship can help achieve marketing goals and organizational objectives is
discussed when we look at the construction of a sponsorship plan or program. For
now, let us turn our attention to the dramatic growth of sponsorship as a promotional
tool.
In our brief discussion of sponsorship, we have alluded to the “dramatic growth” of
sponsorship, but just how quickly is sponsorship growing? Review the following facts
and figures regarding sponsorship activities:2
X North American sponsorship spending is projected to reach $20.6 billion in
2014, a 4.3 percent increase from 2013, according to sponsorship-research
company IEG. In contrast, IEG projected in North America for ad spending to
rise 2.8 percent while spending on other forms of marketing – including public
relations, direct marketing and promotion – would garner a 4.4 percent growth
rate in 2014.
X In 2014, global sponsorship spending is projected to reach $55.3 billion with a
4.1 percent growth rate. Comparing global spending forecasts for media and
other marketing expenditures, advertising would see the largest growth, 4.6
percent compared with 4.4 percent for marketing/promotions and 4.1 percent for
sponsorship.
X According to IEG, of the projected $20.6 billion North American companies
would spend on sponsorship in 2014, 70 percent of it would be on sports,
10 percent entertainment, 9 percent causes, 4 percent for arts and festivals,
fairs and annual events, and 3 percent for associations and membership
organizations.
X IEG noted as it has in most years over the past two-plus decades that
sponsorship’s growth rate will be ahead of the growth rate experienced
by advertising and sales promotion in North America but not globally, for
corporate interest in other marketing activities, particularly digital platforms, has
dampened enthusiasm of sponsorship spending.3 Overall, continued interest
in major sports properties should make it the fastest growing segment. For
example, the NHL is expected to show the largest increase among the big
four sports, with spending on the league and its member clubs rising 9.4
percent to $327 million. However, the NFL has the largest sponsorship pot (up
7 percent to $870 million), followed by MLB (up 6.6 percent to $548 million),
and the NBA (up 8.5 percent to $536 million).4 Though Europe will remain
the largest source of sponsorship spending ($14.8 billion) apart from North
America, growth in Asia ($13.3 billion) and Central/South America ($4.2 billion)
are expected to heat up with a forecasted growth of 5.6 percent and 5 percent,
respectively.
Much of the initial impetus behind surging sponsorship growth in Asia was
associated with the Beijing Olympics; however, with the advent of the
Sochi Winter Games and introduction of programs such as Crickets IPL and
Twenty20 (T20) campaigns, sponsorship in the Asian regions continues to grow.
434
(Twenty20 cricket, often abbreviated to T20, is a form of cricket originally
introduced in England and Wales for professional intercounty competition. A
Twenty20 game involves two teams; each has a single innings, batting for a
maximum of 20 overs.5 A Twenty20 game is completed in about three hours,
with each innings lasting around 75–90 minutes (with a 10–20-minute interval),
thus bringing the game closer to the timespan of other popular team sports.
Shortening the game affords matches to be completed in a single evening and
the method of play is to score runs quickly rather than eke out a large score
over a much larger period of time. The format provides a host of benefits for the
game, drawing in broader audiences and securing better and more lucrative TV
cricket coverage.)6 Global cricket sponsorship, which according to a Sponsorship
Today report is now worth $405 million a year, has come about mainly
because of the introduction of these expedited formats.7 In fact, according
to Sponsorship Today report editor Simon Rines, the profile of industries
sponsoring in developing countries is, in many cases, more healthy for the sport
than in developed countries.8 The report, which analyzed data from 788 deals
from all of the major cricket playing nations, found Asia’s India account for $165
million of the spending.9
Similar to Asia, much of the stimulus for growth in South America may be
attributed to the procurement and implementation of the 2014 World Cup
and the 2016 Olympic Games. South America provides an opportunity for
sponsors, sponsees, and the host country to begin to link and identify long-term
benefits. A variety of synergies exist in hosting the two events. These relate to
development (i.e., hotels, stadiums and living communities); infrastructure (i.e.,
telecommunication and transportation), and the use of human resources. Brazil
has the world’s 6th largest economy; however, growth as of late has been less
than 1 percent – a cause for concern. Traditionally, Brazil has not been an everyday
stop but an exotic tourism destination. The 2016 Olympics and 2014 World Cup
serve as a catalyst to ignite and promote long-term development of sponsorship
platforms.10
Not unlike other forms of promotion, sponsorship marketing is also reaching its
saturation point in the marketplace (see Table 11.1 for the official sponsors of
NASCAR). Consumers are paying less attention to sports sponsorships as they
become more the rule than the exception and although sponsorship is still seeing
steady growth, corporate interest in other marketing alternatives, particularly digital
(including social and mobile) media, have altered spending habits. Sponsorship
clutter is causing businesses to design more systematic sponsorship programs that
stand out in the sea of sponsorships. In addition, businesses are fighting the clutter
of sponsoring mainstream sports by exploring new sponsorship opportunities (e.g.,
X-Games, women’s sports, and Paralympics) and by becoming more creative with
existing sponsorship opportunities. As IEG noted, instead of viewing “new media” 11
as competition, sponsorship properties would be wise to emphasize their role as
catalysts in driving interest, engagement and enthusiasm for these digital, social, and
mobile platforms.11
One example of a creative sponsorship approach trying to help distinguish their
brand in the minds of the consumers and offset the clutter of many traditional sports
mediums is shown the accompanying article.
435
Table 11.1 Official sponsors of NASCAR
3M – Official Partner
Bank of America – Official Bank
Camping World – Official Outdoor and RV Retail Partner
Canadian Tire – Official Automotive Retailer of NASCAR in Canada
Chevrolet – An Official Passenger Car
Coca-Cola – Official Non-Alcoholic Beverage, Official Soft Drink, Official Sport Drink, Official Energy
Drink
Coors Light – Official Beer
DRIVE4COPD – Official Health Initiative
Exide – Official Auto Batteries
FDP Friction Science – Official Partner
Featherlite Trailers – Official Trailer
Ford – Official Truck
Freescale – Official Partner
Freightliner Trucks – Official Hauler
Growth Energy – Official Partner
Goodyear – Official Tire
Hellman’s – Official Mayonnaise
K&N – Official Partner
Klondike – Official Ice Cream
Mars – Official Chocolate
Mobil 1 – Official Partner
McLaren – Official Partner
Nabisco (Kraft) – Official Cookies and Crackers
National Corn Growers Assoc. – Official Partner
Nationwide Insurance – Official Auto, Home and Life Insurance
New Holland Agriculture – Official Agriculture Equipment
Prevost – Official Partner
Ragu – Official Sauce
Safety- Kleen – Official Supplier
Sherwin Williams – Official Paint
SIRIUS XM Radio – Official Satellite Radio Partner
Sprint – Official Series Sponsor
Sunoco – Official Fuel and Official Convenience Store
Toyota – An Official Passenger Car
Unilever – Official Partner
UPS – Official Delivery Service
UTI – Official Partner
Visa – Official Card
Whelen Engineering Inc. – Official Development Series Partner of NASCAR
Source: http://www.nascar.com/en_us/sponsors.html.
436
CLEVELAND CAVALIERS 2013–2014

PROMOTIONAL SCHEDULE
Fans Can Lock in Seats for all the tips off on Wednesday, October
Exciting Giveaways and Theme 30th vs. the Brooklyn Nets with two
Nights when giveaways to celebrate the home
Single Game Tickets Go On Sale opener presented by Kenda Tires.
Saturday, October 5th at 10:00 A.M. Fans in attendance will receive a
Gearing up for an exciting year Cavaliers 2013–14 magnet schedule
both on and off the court, the presented by Kenda Tires and a Cavs
Cleveland Cavaliers presented by t-shirt compliments of the Cleveland
Discount Drug Mart have announced Clinic. Opening Night will be full of
the promotional schedule for the fun surprises to welcome back the
2013–14 season! The lineup of home team and, of course, the fans!
premium giveaways and exciting This season fans will score with
theme nights adds to the anticipated FIVE Cavalier player bobblehead
return of Cavaliers basketball and giveaways! The 2013–14 roster
the award-winning fan experience of Cavs collectibles will feature
at The Q. #17Anderson Varejao, 2013 NBA
Fans can guarantee a spot in the All-Star Kyrie Irving, #13 Tristan
house for their favorite nights when Thompson, and in their figurine
tickets for the first half of the Cavs debut, 2012-13 All-Rookie First Team
2013–14 regular season (October 30th Selection Dion Waiters and 2012–13
– January 28th) go on sale Saturday, All-Rookie Second Team Selection
October 5th at 10:00 a.m. Tickets can Tyler Zeller. The Zeller bobblehead
be purchased by visiting cavs.com, by was selected exclusively by the Cavs’
calling 1-800-820-2287, at the Quicken Wine & Gold United members at their
Loans Arena Box Office or by visiting annual meeting.
any of the 58 Northern Ohio Discount Fathead Tradeables are the coolest
Drug Mart locations, the official way for kids to show off their Wine
drugstore of the Cleveland Cavaliers! & Gold spirit on November 27th
Fan Favorite Giveaways vs. Miami AND December 29th vs.
FIVE Cavs Bobbleheads, T-Shirts, Golden State. Children 14 and under
Fatheads and More! will receive these popular surface-
The 2013-14 Cavaliers season friendly decals that will be a slam
presented by Discount Drug Mart dunk with them and their friends!
GIVEAWAY GAME DATE
Opening Night and Magnet Schedule Giveaway presented by Kenda Oct. 30 vs. Brooklyn
11
Tires and T-Shirt Giveaway compliments of Cleveland Clinic
Cavaliers Player Fathead Tradeable Giveaway (children 14 and under) Nov. 27 vs. Miami
Cavs Team Poster Giveaway presented by The Jim Giltner Financial Nov. 30 vs. Chicago
Group
Anderson Varejao Bobblehead Giveaway Dec. 20 vs. Milwaukee
Cavaliers Player Fathead Tradeable Giveaway (children 14 and under) Dec. 29 vs. Golden State
Dion Waiters Bobblehead Giveaway Jan. 5 vs. Indiana
Wine & Gold United Select Player Bobblehead Giveaway Feb. 9 vs. Memphis
Kyrie Irving Bobblehead Giveaway presented by Pepsi MAX Mar. 4 vs. San Antonio
Fat Dots Giveaway Mar. 20 vs. Oklahoma City
Fan Appreciation Night T-Shirt and Prize Giveaway Apr. 14 vs. Brooklyn
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Theme Nights Discount Drug Mart, the signature

Caped Crusaders, WWE Superstars celebration of the season-long
and More Fun in Store! support from the best fans in the
This season boasts some of the most NBA. All fans in attendance will
exciting Cavs theme nights at The receive a Fan Appreciation Night
Q to date and many favorites from t-shirt in addition to chances to win
past seasons! “Superhero Night” one of $1 million in prizes distributed
flies back into action on April 12th vs. on-and-off the court throughout the
Boston to pay homage to the fun and night! To top it all off, the players
style of classic comic book heroes will give fans the actual jerseys and
throughout the night. “Fan Choice shoes worn in the game as a personal
Night” once again puts power in “thank you” for their support.
the hands of the fans as they utilize Special Ticket Packages
social and mobile media to create the Family Fun, All-You-Can-Eat and
fan experience – even which night it Super Fun for Super Fans!
happens! New at The Q for a limited time, ALL-
New this season, “WWE Night” YOU-CAN-EAT SEATS offer fans an
will deliver the fun and excitement incredible deal that is sure to deliver a
of World Wrestling Entertainment fill-up good time. Starting at just $34,
to the NBA with activities on the fans can chow down on all the hot
concourse, in-game elements and dogs, potato chips, nachos, popcorn
special guest appearances by current and soft drinks they can handle.*
WWE Superstars on January 22 vs. Designated concession stands will
Chicago! Fans can “come on down” offer “speed lines” so fans can make
to “Game Show Night when classic as many trips as they like without
television game shows invade The Q missing the action on the court.
with both memorable and ridiculous
antics from fan-favorite programs GAME DATES
on December 10 vs. New York. Also, November 4th December 4th vs. Denver
each Sunday game at The Q will vs. Minnesota
feature postgame “Fan Free Throws” November 9th December 10th vs. New
vs. Philadelphia York**
for fans of all ages with interactive
November 15th December 17th vs. Portland
elements and entertainment as they
vs. Charlotte
wait to take a shot from the line on
November 20th December 20th vs.
the Cavs court. vs. Washington Milwaukee
The annual Black Heritage
November 30th December 23rd vs. Detroit
Celebration (BHC) will tip off on vs. Chicago**
January 20th vs. Dallas for Dr. Martin
Luther King, Jr. Night with a tribute *Seating only available in sections
to the late civil rights leader. The 213-215. Maximum of four (4) items
celebration continues throughout the per trip to the dedicated concession
month of February for three signature stand will apply. **Prices for
nights dedicated to celebrating premium games begin at $39.
African-American culture, and several Giving families a more affordable
community initiatives and activities. way to be part of the Cavaliers
On April 15th, the Cavs face the excitement this season, the Family
Brooklyn Nets for the final home Value Pack will return to The Q for 25
game of the regular season and host Cavs home games. The Family Night
Fan Appreciation Night presented by package includes four Cavs tickets,
438
four hot dogs and four sodas starting member engagement and enhanced
at just $59, or $15.75 per person. For membership privileges and perks.
a full list of Family Value Pack games, Please visit united.cavs.com or call
visit cavs.com/family. 1-800-820-2287 for more information.
Access Cavalier & CavFanatic Nights Preseason Games at Quicken Loans
This year, Access Cavaliers Nights Arena presented by Discount Drug
will team up with the CavFanatic Mart
Nights to provide exclusive behind- The Cavaliers will host three
the-scenes experiences for the preseason home games at Quicken
loudest and proudest fans in the Loans Arena on Tuesday, October 8th
NBA! Each package includes a game vs. the Milwaukee Bucks at 7:00 p.m.;
ticket, admittance to a pregame all- Thursday, October 17th vs. the Detroit
you-can-eat buffet and a Cavs t-shirt. Pistons at 7:00 p.m.; and Saturday,
For more information, visit cavs. October 19th vs. the Indiana Pacers
com/access or sign up to become at 7:30 p.m. Discount Drug Mart
a CavFanatic at www.cavfanatic. customers using their Courtesy Plus
comtoday! card with the purchase of (2) 8-pack
12 oz. bottles of Pepsi products will
TICKET PACKAGE GAME DATE receive four (4) free tickets to one of
Access Cavaliers/ November 9th vs. three preseason games hosted at The
CavFanatic Night #1 Philadelphia Q.
Access Cavaliers/ December 20th vs. Partial Plans
CavFanatic Night #2 Milwaukee
The Cavs are offering two 11-game
Access Cavaliers/ January 24th vs.
partial season ticket plans featuring
CavFanatic Night #3 Milwaukee
a mix of the hottest games, marquee
Access Cavaliers/ February 23rd vs.
CavFanatic Night #4 Washington matchups and weekend and weekday
Access Cavaliers/ March 8th vs. New
dates. Each 11-game plan starts as
CavFanatic Night #5 York low as $264 and offer ticket holders
Access Cavaliers/ April 12th vs. Boston a complimentary home-opener
CavFanatic Night #6 ticket(s), exclusive, added-value
benefits and the fun of being a part of
Additional Cavaliers promotional the best fan entertainment experience
nights and premium giveaways may in the NBA.
be announced throughout the season. Group Tickets
For a complete schedule of 2013–14 Unique Fan Experience packages for
promotional giveaways and theme group outings (10 or more tickets
nights, and for ticket information, together) are available for each Cavs
fans can call 216-420-2287 or 800-820- home game. Great savings off of
2287 or visit cavs.com. single game tickets are available for
More Ticket Information
Wine & Gold United Membership
select games. For more information
on how to create a unique group
11
Wine & Gold United memberships outing, or to place an initial $200
and group ticket packages are group payment, call 216-420-2153 or
available NOW! With Wine & Gold visit cavs.com/groups.
United membership, fans can Ticket Packages are On Sale Now!
lock in the best all-encompassing For more information or to purchase
experience, with unprecedented full or partial season ticket plans,
members-only access, a voice groups, preseason games, or for
in the organization, year-round general ticket information visit cavs.
439
com or call 1-800-820-2287. Tickets accessed December 11, 2013. “The

for regular season games go on sale NBA and individual member team
Saturday, October 5th at 10:00 a.m. identifications reproduced herein are used
with permission from NBA Properties,
Source: http://www.nba.com/cavaliers/ Inc. 2014 NBA Properties, Inc. All rights
releases/promotional-schedule-130927, reserved.”
ADELAIDE UNITED ENERGISED BY NEW SPONSORSHIP

A-League club Adelaide United has the same way Adelaide United also
announced green energy company strives to be a major player in Asia.
Unleash Solar as its new front-of-shirt We encourage all South Australians
sponsor. to get behind these two great teams
In addition to the Unleash Solar logo and make this season a success,”
featuring on the front of Adelaide’s Perdi added.
shirts throughout the 2012/13 Adelaide United chief executive
A-League season, the Australian Glenn Elliott said, “Importantly
company will also offer the club’s fans Unleash Solar is a proud South
and members with special offers. Australian owned and operated solar
Though financial terms of Unleash business. They have an exceptionally
Solar’s commitment were not bright future and whilst they are
released, the Australian press are an already successful organisation,
reporting that the one-year agreement they have a desire to grow. Unleash
is worth AU$250,000 (US$260,000). Solar’s commitment to the club is
“As a young South Australian a clear indication of its community
company, Unleash Solar is proud focus in supporting soccer in this
to further participate in our local state, and with that being the case,
community by becoming the Adelaide United is pleased to
major partner of Adelaide United,” recommend Unleash Solar to all of its
said Unleash Solar group general fans, especially those who may have
manager Spiro Perdi. “We would like a shock upon receiving their latest
to wish the club all the best for the power bill. If our fans are considering
upcoming season and look forward investing in solar, they should do it
to working closely with the club as with the company that supports the
it continues to grow and strive to be Reds.”
national title holders.” The 2012/13 A-League season will
“As a company we share many begin 5th October.
similarities with Adelaide United. We
are both focused on growing to build Source: Article author: Michael Long;
a stronger footprint nationally and http://www.sportspromedia.com/
internationally, with Unleash having news/adelaide_united_energised_
by_new_sponsorship/. Credit: www.
recently expanded to the USA, as in
sportspromedia.com.
In essence, a sports sponsorship program is just another promotion mix element to

be considered along with advertising, personal selling, sales promotions, and public
relations. One difference, however, between sponsorship and the other promotion mix
elements is that sports marketing relies heavily on developing successful sponsorship
programs. In fact, sponsorship programs are so prevalent in sports marketing that the
440
field is sometimes defined in these terms. Since sponsorship is so critical, let’s better
understand how to develop the most effective sponsorship program.
Designing a sports sponsorship program

Sports sponsorship programs come in all shapes and sizes. The following are just a
few examples:
X High schools are now looking to sponsors to help with funding. For example,
Farmers Insurance is in its sixth year of high school sponsorship, and currently has
deals with 18 state high school athletic associations, which gives Farmers the rights
to activate around state championships. Each of the state deals is worth US$250,000
to US$500,000 annually, while sport-specific partnerships begin around US$20,000.
Deals with single schools range from US$2,000 to US$3,500 per athletic season.12
X Adidas signed an 11-year, $400 million partnership as the official uniform and
apparel supplier of the NBA with 15 team sponsorship deals, some of which will
include a new “store-within-a-store” concept that will sell both NBA-licensed
merchandise and other company apparel.13
X FIFA and Adidas formally announced an extension of their long-term partnership
agreement granting Adidas the Official Partner, Supplier and Licensee rights for the
FIFA World Cup™ and all FIFA events until 2030. Already one of the longest and
most successful partnerships in modern history, the sponsorship will extend their
partnership beyond 60 years and provide an estimated $100 million per four year
World Cup cycle.14
X The Kansas City Chiefs are joining with Hy-Vee, Procter & Gamble and Kansas City
Public Schools for the RED Zone Reading Challenge, a collaborative effort designed
to encourage the healthy habits of reading and classroom attendance among all
elementary school students in Kansas City Public Schools.15 All elementary school
students, kindergarten through sixth grade, in Kansas City Public Schools are eligible
to participate. A total of 25 elementary schools will be taking part in the program.16
X Weston FC/AYSO 644 soccer club is a 501(C)-(3) non-profit organization located in
southern Florida. Weston FC/AYSO 644 is Florida’s largest soccer club. Weston
FC/AYSO 644 provides both recreational and competitive soccer programs for the
Elite, Travel, and Beginner soccer players between the ages of 4 and 19. Weston
offers a year-long title sponsorship estimated at $50,000, a Weston Cup, and
Showcase Title Sponsorship seeking $15,000 yearly web sponsorships at $350
apiece, Weston Cup & Showcase web sponsorship valued at $150 apiece, practice
T-shirt sponsorships at $450, as well as AYSO Team and Team Plus packages.17
X The PGA Tour and Tiffany & Co. have a multiyear sponsorship deal. The company
will serve as the official awards and gift provider for the PGA Tour and Champions
Tour. Tiffany will also “design and craft the FedEx Cup Trophy.”18
X GE has renewed its sponsorship contract for the Olympic Games until 2020. As 11
for the Rio Olympics in 2016, GE has a large portfolio of solutions that can help
build the infrastructure required for the city to be able to host the event, among
which: energy generation and distribution systems, image diagnostics, monitoring
technology and electronic medical records, lighting systems, aircraft engines,
water and sewerage treatment installations and services, equipment and transport
management, and others.19
X U.S. gold medal-winning skier Lindsey Vonn signed a sponsorship deal in
2009– 2014 to compete with HEAD Ski’s boots, bindings, and poles.
441
Promotional Strategy
Implementing
Sponsorship Sponsorship Sponsorship
and evaluating
objectives budgeting acquistion
the sponsorship
Figure 11.1 The sponsorship process

Source: Hawkins et al., Consumer Behavior: Implications for Marketing Strategy, 6/e
© 1994 © The McGraw-Hill Companies, Inc.
What do each of these sponsorship examples have in common? First, they were
developed as part of an integrated marketing communications approach in which
sponsorship is but one element of the promotion mix. In addition, each of the
sponsors has carefully chosen the best sponsorship opportunity (with individual
athletes, teams, conferences, events, and/or leagues) to meet organizational
objectives and marketing goals.
To carefully plan sponsorship programs, a systematic process is being used by an
increasing number of organizations. The process for designing a sports sponsorship
program is presented in Figure 11.1. Before explaining the process, it is important
to remember that sponsorship involves a marketing exchange. The sponsor benefits
by receiving the right to associate with the sports entity (e.g., team or event), and
the sports entity benefits from either monetary support or product being supplied by
the sponsor. Because the marketing exchange involves two parties, the sponsorship
process can be explored from the perspective of the sponsor (e.g., Allstate) or the
sports entity (e.g., Sugar Bowl). We look at the process from the viewpoint of the
sponsor rather than the entity sponsored.
As shown in the model, decisions regarding the sponsorship program are not made
in isolation. Rather, the sponsorship program is just one element of the broader
promotional strategy. It was suggested earlier that all the elements in the promotional
mix must be integrated to have the greatest and most effective promotional impact.
However, sponsorship decisions influence much more than just promotion. Sponsorship
decisions can affect the entire marketing mix, as the accompanying article shows.
UNDERSTANDING WHY SPONSORSHIP CONTINUES

TO GROW
“They’re like sleeping in a soft bed. were observed in numerous settings.
Easy to get into and hard to get out And yet, despite the doubts and
of.” concerns of chairmen, CEOs and
– Hall of Fame catcher Johnny Bench, COOs, and despite bottom-line
speaking on slumps blame placed on numerous CFOs,
researchers, marketers and sales
As the recent economic fallout
staffs, sponsorship kept growing.
settled in globally, but particularly
It’s been an interesting conundrum
in the United States, cutbacks in
(as Newman of TV’s “Seinfeld”
consumer and corporate spending
442
might say), because as 2011 begins ($180 million) and Volkwagen ($100
and we watch CEOs (across the million) are readying five-year plans
U.S. and Canada) increasingly to inject nearly $1 billion into the
announce improved quarterly Sochi 2014 Olympic Games. This
results, the marketing budgets outpouring of financial support from
of most organizations appear national partners continues the
radically different from five years trend established for the Vancouver
ago. Just look at the reductions in 2010 Games, where a reported $750
hospitality budgets or companywide million was contributed by Canadian
moratoriums on travel to corporate- sponsors.
sponsored events. How, we ask, is this possible and
This has meant that, like crazed, why is it happening?
wild-haired scientists, we’ve been First, sponsorship works. There
obligated to ask, “Why is it so?” are dozens of academic studies
The two most-read analyses of and hundreds of professionally
sponsorship spending in North produced evaluations backing this
America – IEG’s Sponsorship Report up. Sponsorship is an effective tool
and the Canadian Sponsorship to reposition brands, alter consumer
Landscape Study – both noted that perceptions and increase sales. In
although there was reduced growth fact, one of our Ph.D. dissertations
rate in companies’ investment in found more than 150 objectives that
sponsorship, it continued to grow marketers had established as reasons
(or, at least not contract to any great to invest in and embark upon a
extent) in 2009 and is expected sponsorship.
to grow again in 2010 in the U.S., Second, sponsorship works
Canada and globally. efficiently. By this, we mean research
Likewise, the has shown the effectiveness of
PricewaterhouseCoopers’ hospitality sponsorship to reach specific target
and leisure sector report for 2010-13 markets through association with
suggested that sponsorship would properties that resonate with those
remain the fastest-growing global markets. Think Burton Snowboards,
sports sector, eclipsing gate revenue, Shaun White and snowboarders,
media rights and merchandising by or Gillette, baseball and men who
a compounded annual growth rate shave.
(CAGR) of 4.6 percent. Third, sponsorship works
All of these studies are supported better than advertising. Although
by happenings in the marketplace. debate still exists over the
The IOC last year announced two difference between advertising
new first-time TOP sponsors (Dow and sponsorship, there is general
Chemical and Procter & Gamble) to
its stable of partners, now at 11, who
agreement among many that the two
marketing tools are notably different
11
commit an estimated nine figures and play different roles.
each quadrennium for the rights to These three theories support the
associate with the Olympic Games. argument that it is the association
Rumors abound that a 12th TOP differentiating sponsorship from
sponsor will be added in 2011. advertising. The old saw has been
In Russia alone, MegaFon ($260 that advertising is one-dimensional
million), Rostelecom ($260 million), and nonpersonal, whereas consumers
Aeroflot ($180 million), Rosneft who follow sponsorships see the
443
sponsor, the sports property and the that the mercurial economy “has
linked association between them. focused a rising proportion of
Quite simply, as the consumer attention and spending on the biggest
is exposed to the association, sports brands with global reach and
images are more easily transferred pulling-power.” This means “mid-
from sponsor to property and vice level brands [properties] have found it
versa. Conversely, in a (typical) harder to attract major sponsors while
nonintegrated advertisement, the sponsorship of the smaller local sports
consumer sees the advertisement brands has been hit [hard] by potential
(often shown during a sports event backers reducing discretionary spend
or on a sports website) but without in the economic downturn.”
a compelling association to the To be sure, it is notable that
property. Each has its advantages sponsorship continues to grow and
and disadvantages, but most will in North America will reach a CAGR
agree that sponsorship is a hybrid of 5 percent in 2012 and 5.6 percent
form of advertising. in 2013. The question for many is
Fourth, sponsorship appears to be whether the biggest fish (NFL, IOC,
more fun, with hospitality, backstage FIFA, EPL, UEFA, etc.) will leave the
passes and locker room visits, plus it minnows high and dry.
can be staged to incorporate a social We’ll also have to watch to see
responsibility hook to aggressively if player strikes, owner lockouts or
assuage the guilt that accompanies terrorism change sponsorship’s
massive investments in activities that trajectory.
appear (to some) socially trivial. In
other words, sponsorship can benefit Source: Article authors: Rick Burton
a charity while executives tour the and Norm O’ Reilly; http://www.
pits or drop the ceremonial first puck. sportsbusinessdaily.com/Journal/
Issues/2011/01/20110124/Opinion/Burton.
But all is not perfect in the
aspx. Credit: Sports Business Journal.
sponsorship world, and PwC notes
There are two important things to consider before signing a sponsorship agreement:
(1) All your organization is getting is the right to be called a sponsor, not a completed
sponsorship plan; and (2) you should spend two to three times your sponsorship fee
to leverage your relationship as a sponsor – if you do not have the funds to promote,
do not buy the sponsorship.
When designing the sponsorship program, the initial decisions are based on sponsorship
objectives and budgets. These two elements go hand in hand. Without the money, the
most meaningful objectives will never be reached. Alternatively, appropriate objectives
must be considered without total regard to cost. If the objectives are sound, senior-level
managers will find a way to allocate the necessary monies to sponsorship.
After the objectives and budget have been agreed upon, the specific sports
sponsorship opportunity is chosen from the hundreds available. For example, Pepsi
receives approximately 500 sponsorship proposals each year, and Pennzoil reports that
they receive 200 proposals annually. Others estimate that several corporations receive
over 100 sponsorship proposals each week (for an example of proposal guidelines,
see Table 11.2). Regardless of the exact number, there are a wealth of sponsorship
opportunities available to potential sponsors. Table 11.3 illustrates how the Wyndham
Golf Championship presents various tiers of information to potential sponsors.20
444
Table 11.2 Castrol North America – sponsorship criteria requirements
As you might imagine, we receive a number of requests for a variety of sponsorships from across
North America. In order for us to most effectively evaluate each proposal we receive, we have
established criteria that will provide us with the pertinent information we need. Including all of the
data requested below will improve your chances of a prompt response.
Timeframe:
1. Submitting a proposal to Castrol North America: To allow us enough lead-time to line up
appropriate resources, your proposal must be submitted at least 6 months prior to the start
date of the event/project. We will not consider proposals submitted outside of this timeframe.
2. Castrol North America Response: You should expect a reply within 3 months.
What to send and where to send it:
1. Brief detailed description of sponsorship
2. Contract Information
3. Fees and Payment Terms/Schedule: All costs Castrol is expected to pay, including
sponsorship fee, Value In Kind, promotional fees, signage, literature, printing costs, creative/
production costs, equipment, merchandising, etc.
4. Direct On-site Sales Opportunities: Include a three-year history of Castrol or non-Castrol
motor oil product sales as well as projected motor oil product sales over the next three years. If
this is a new venue with no previous motor oil related sales, please explain why this is an ideal
Do-it-Yourself (DIY) automotive demographic.
5. Castrol Benefits: Include items such as TV, radio, and newspaper exposure, Website visits,
complimentary tickets, hospitality, and access to special events at the property and quantity as
appropriate.
6. Product/Category Exclusivity
7. Marketing Opportunities: On-site and off-site, such as co-sponsor promotional activities,
Consumer and Trade promotions available to Castrol, etc.
8. List of Other Sponsors: Indicate whether they are potential or committed. Also please indicate
historical sponsors and length of association.
9. Term: (Annual, two-year, three-year, etc.)
10. Number of Events per annum
11. Attendance: Annual ticket sales, paid and unpaid, trend history for the last three years, future
projections for three years
12. Demographics: Include where applicable (i.e., if noticeably different), the following
demographics for both attendees and the media audience.
a. age;
b. gender;
c. % do it yourself (i.e., change their own oil);
d. ethnic origin;
e. income profile; and
f. any other applicable information
13. Any Other Pertinent Information
Please include as much of this information as possible when sending your proposal to Castrol.Once
your proposal is complete, please forward by mail to the address below:
11
Sponsorship Department
Castrol Consumer North America
1500 Valley Road
Wayne, NJ, 07470
USA
We appreciate your interest in Castrol North America as a potential sponsor and look forward to
receiving your sponsorship proposal.
Source: www.refresh.castrolusa.com/sponsors. Credit: BP Lubricants USA Inc.
445
Table 11.3 Sponsorship opportunities for the Wyndham Championship: sponsorship levels
18th Green Luxury Suite

18th Green Luxury Suite – $80,000
Entertain guests in your private Luxury Suite at one of golf’s most historic locations – Sedgefield
Country Club.
1 Suite on the 18th Green at Sedgefield Country Club
Includes Lunch, Appetizers and Full, Open Bar Thursday–Sunday
70 Luxury Suite Tickets each day Thursday–Sunday
70 Clubhouse Tickets each day Monday–Wednesday
4 VIP Parking Permits & 10 Sponsors Event Invitations
Exclusive opportunity to purchase dual-logoed merchandise bearing your company logo and the
Wyndham Championship Logo
17th Green Luxury Suite
17th Green Luxury Suite – $70,000
Entertain guests in your private Luxury Suite at one of golf’s most historic locations – Sedgefield
Country Club.
1 Suite on the17th Green at Sedgefield Country Club
Includes Lunch, Appetizers and Full, Open Bar Thursday–Sunday
70 Luxury Suite Tickets each day Thursday–Sunday
18th Green Skybox
18th Green Skybox – $50,000
Entertain guests in an air-conditioned Skybox with open-air seating at one of golf’s most historic
locations – Sedgefield Country Club.
1 Skybox on the 18th Green at Sedgefield Country Club
Includes Lunch and Full, Open Bar Thursday–Sunday
40 Skybox Tickets each day Thursday–Sunday
16th Green Skybox
15th Green Skybox
446

Champions Club
Champions Club – $12,000
Located in the historic Sedgefield Clubhouse overlooking the 9th Green, this package features
an upscale buffet lunch, afternoon appetizers, and access to on-course viewing platforms with
complimentary beverage service Thursday–Sunday.
15 Champions Club Tickets Each Day Thursday–Sunday
15 Clubhouse Tickets Each Day Monday–Wednesday
Viewing Platform Package
Viewing Platform – $400/week or $125/day
Watch all the action from private, greenside elevated platforms around the historic Sedgefield golf
course. Complimentary open bar is included.
1 Daily or Weekly Access to Multiple On-Course Viewing Platforms Thursday–Sunday
Open Bar Thursday–Sunday
View as a PDF: Viewing Platform Package
Source: Courtesy of PGA TOUR.
When choosing from among many sponsorship opportunities, three decisions must
be addressed. The first decision is whether to sponsor a local, regional, national, or
global event. Second, the organization must choose an athletic platform. For instance,
will the organization sponsor an individual athlete, team, league, or stadium? Third,
once the broad athletic platform is chosen, the organization must decide on a specific
sports entity. For example, if a league is selected as the athletic platform, will the
organization sponsor the WNBA, MLS, or the NFL?
The final stage of the sports sponsorship process involves implementation and
evaluation. Typically, the organization wants to determine whether their desired
sponsorship objectives have been achieved. Measuring the impact of sponsorship
on awareness levels within a targeted audience is a relatively easy marketing
research task. However, as the costs of sponsorships continue to increase, there is
a heightened sense of accountability. In other words, organizations want to assess
the impact of sponsorship on the bottom line – sales. The shift from philanthropy
11
to evaluating sponsorship return on investment (ROI) is also documented in the
academic sport sponsorship literature, and new models are emerging to understand
the complexities of sponsorship evaluation.21Now that we have a rough idea of how
the sponsorship process works, let us explore each stage of the sports sponsorship
model in greater detail.
447
Sponsorship objectives
The first stage in designing a sponsorship program is to carefully consider the
sponsorship objectives. Because sponsorship is just one form of promotion, the
sponsorship objectives should be linked to the broader promotional planning process
and its objectives. The promotional objectives will, in turn, help achieve the marketing
goals, which should stem from the objectives of the organization. These important
linkages were stated in our definition of sponsorship.
Not unlike advertising objectives, sponsorship objectives can be categorized as
either direct or indirect. Direct sponsorship objectives have a short-term impact
on consumption behavior and focus on increasing sales. Indirect sponsorship
objectives are those that ultimately lead to the desired goal of enhancing sales. In
other words, the sponsor has to generate awareness and create the desired image
of the product before consumers purchase the product. The indirect sponsorship
objectives include generating awareness, meeting and beating competition, reaching
new target markets, building relationships, and improving image.22 One of the reasons
that sponsoring sporting events has risen in popularity is that sponsorship provides so
many benefits to those involved in the partnership. In other words, both the sponsor
and the sports entity (event, athlete, or league) gain from this win–win partnership.
Let us look at some of the primary objectives of sponsorship from the sponsor’s
perspective.
Awareness
One of the most basic objectives of any sponsor is to generate awareness or raise
levels of awareness of its products and services, product lines, or corporate name.
Sponsors must understand which level to target (i.e., individual product versus
company name) based on the broader promotional or marketing strategy. For a
new company or product, sponsorship is an important way to generate widespread
awareness in a short period of time.
From the event or sports entity’s perspective, having a large corporate sponsor will
certainly heighten the awareness of the event. The corporate sponsor will design a
promotional program around the event to make consumers aware of the sponsor’s
relationship with the event. The corporate sponsor will also want to ensure their
promotional mix elements are integrated. In other words, advertising, sponsorship
of the event, and sales promotion will all work in concert to achieve the desired
promotional objectives. However, a study conducted by Hoek, Gendall, Jeffcoat,
and Orsman23 found that sponsorship generated higher levels of awareness than
did advertising. In addition, sponsorship led to the association of a wider range of
attributes with the brand being promoted than did advertising.
Competition
Another primary objective of sponsorship is to stamp out or meet any competitive
threats or competition. Many corporate sponsors claim they are not that interested
in sponsorship opportunities, but they cannot afford not to do so. In other words, if
they do not make the sponsorship investment, their competitors will. Sponsorship
is thought of as a preemptive tactic that will reduce competitive threat. For instance,
Texaco sponsors virtually every national governing body of U.S. Olympic sports. They
promote only a handful of these sports, but their sponsorship of the others effectively
448
keeps other competitors out of any chance of ambushing their Olympic efforts.
Another example of competitive threat comes from the fierce rivalry between Pepsi
and Coke, including Pepsi’s deal with the NFL, snatching that relationship away from
Coke, and Coke’s turnabout in securing the NCAA, which had been rival Mountain
Dew’s domain. More recently, Coke’s Sprite renewed its long-term deal with the
NBA.
In an attempt to gain a competitive edge in the insurance industry, State Farm
Insurance has a multi-year deal as Major League Baseball’s official insurer and garner
the title sponsorship to the annual Home Run Derby competition on ESPN – one
of the highest-rated sports broadcasts of the summer. While State Farm has long
had a presence in women’s golf and skating, the MLB deal continues an aggressive
spend in sports for the company, which is trying to grow in the intensely competitive
insurance industry.24
Unfortunately, a sponsoring company, such as State Farm Insurance, can still be
harmed by competitors who use ambush marketing tactics. Ambush marketing
is a planned effort (campaign by an organization) to associate themselves indirectly
with an event to gain at least some of the recognition and benefits that are
associated with being an official sponsor.25 Ambushing may occur in a variety of
ways. Corporations may buy commercial time prior to and during event broadcasts
(e.g., Amex ’92 and ’94 Winter Olympics), sponsor broadcasts of events rather
than directly sponsoring the event, (e.g., Wendy’s on ABC at ’88 Calgary), sponsor
individual teams and athletes (e.g., Pepsi and Magic in ’92 Barcelona), or use sport
event tickets in consumer giveaways, sweepstakes, or contests.26 One of the
earliest examples of ambush marketing at its finest was Nike’s 1984 “I Love LA”
marketing campaign.27 Although the company was not an official Olympic sponsor,
this campaign inextricably tied Nike to the city and event. Most sports marketers
consider this ambush campaign the catalyst for the steady rise in ambush marketing
practices and although marketers continue to employ more stringent legislation to
combat ambushing tactics, ambushers seem more interested in circumventing the
rule.28
Today, many examples of ambush marketing exist. However, the Olympic Games
seems to be the “sporting event of choice” for ambush marketers. In the 1984
Olympics, Fuji was the official program sponsor of the Games at considerable cost of
$40 million. Their competitors, Kodak, became the ‘sponsor’ of the U.S. track team
and of ABC television’s broadcast of the Games. Its film thereby became the official
film of the U.S. track team, and it also proceeded to use the network’s own set of
symbols to advertise its merchandise. Arguably one of the greatest ambush moments
in the Olympic history occurred in 1992 when Michael Jordan (a Nike icon) covered
the Reebok logo with the American flag. Likewise the 1996 Atlanta Games are
remembered for Nike’s aggressive ambush marketing campaign against Reebok, the
official Olympic sportswear partner. Nike bought up advertising billboards throughout
11
the city and established “Nike Town” on the edge of the Olympic park
Other notable Olympic campaigns include American Express’s cat-fight of a sort with
VISA over two Winter Olympics: “The Olympics only take VISA . . .”(VISA – the official
sponsor) vs. “You don’t need a visa to travel To Norway . . .” (AMEX). Additionally, the
following Olympic ambush moment occurred in Vancouver where the chief executive
of the Vancouver Organizing Committee for the 2010 Winter Olympic Games used
public pressure in order to get Imperial Oil/Esso, a Canadian petroleum company, to
modify a marketing campaign which was accused of constituting ambush marketing.
449
Imperial Oil/Esso formulated a “Cheer on Canada/Torino, Italy” campaign which
involved a competition with prizes of tickets to attend men’s and women’s Olympic ice
hockey games in Turin. Although the competition did not use any Olympic symbols, by
referring to the Olympic Games it created an unauthorized association with the Olympic
Games in Turin and with the Canadian Olympic team. Although Imperial Oil/Esso is a
sponsor of the national governing body (Hockey Canada) and the national team, it is not
a sponsor of either the Olympic Games or the Canadian Olympic team. Finally, there
is the more recent Nike campaign surrounding the London Games where Nike, not an
official sponsor, ran a television advertising campaign “Find your greatness” celebrating
athletes of all abilities competing in places called London, but, again, they were
“Londons” outside of the UK, so London in Nigeria and London, USA.29
Other notable ambushing examples in the realm of sport and entertainment include:30
X Bavaria beer – Budweiser was the official beer of the 2010 World Cup, but during
the Holland vs. Denmark match, 36 attractive women in bright orange mini-skirts
descended upon the crowd and stole the show by standing, dancing, and waving
their arms in the air. What’s the problem you might be asking? Well, they weren’t
exactly there for the party atmosphere. Allegedly sent by the Dutch beer company,
Bavaria, they ambushed the match to subtly promote the Bavaria brand. The
dresses only featured a tiny outer label with the Bavaria name but just before the
World Cup, the Dutch beer company made sure the dresses had instant brand
association by arranging to have one modelled by the well-known wife of Dutch
midfielder, Rafael van der Vaart in advertising spots.31 Budweiser, as official beer
sponsor and with tens of millions less in their coffers for the privilege, complained
to FIFA and the ladies were swiftly escorted out of the stadium. The two “alleged
organizers” were arrested by South African police and football pundit Robbie Earle,
to whom the seats were originally allocated, was fired by ITV.
X Lufthansa – at the 2006 World Cup, Lufthansa painted a soccer ball on the nose
of many of its planes to the annoyance of FIFA and Emirates Air which paid a
substantial sum to FIFA to be an official sponsor.
X Pringles not only mirrored their product to look like a tennis ball canister but
conveniently placed around 24,000 of these cans outside Wimbledon, and the
imaginative ambush marketing stunt certainly caught a lot of attention.
X Vodafone, noting that the publicity may be utilized to create sales, enlisted a
streaker with Vodafone logo printed across their backside to run across the field
prior to an All Blacks, (New Zealand Rugby) game. The game was sponsored by
Telecome.
X BMW’s recent response to an Audi billboard advertisement in Santa Monica,
California where Audi noted “your move BMW”; their response Checkmate with a
billboard three times the size.
LONDON 2012 SPONSORS AND AMBUSH – AND

THE LESSONS FOR RIO 2016
Jason Smith from the sports law learn if it is to continue to convince
division of Brabners Chaffe Street domestic sponsors to pay such
examines some of the ambush lucrative rights fees.
marketing that took place around It is estimated that the International
this summer’s Olympic Games and Olympic Committee’s (IOC) TOP
the lessons that Rio 2016 must sponsorship programme earned
450
approximately US$866 million in marketing didn’t happen. Whilst the

the four-year cycle covering the threat of the Act will have been a
2006 winter Olympic Games and the deterrent, it was also reported that
2008 summer Olympic Games, with there had been many conversations
companies such as Coca-Cola, Visa between Locog and non-Games
and McDonald’s estimated to have sponsors at a very senior level in an
paid up to US$100 million each. attempt to persuade such brands not
In the midst of a severe global to run ambush campaigns.
economic downturn, Locog Two campaigns though are worth
surpassed a sponsorship target noting in the context of the Rio
of UK£700 million for the London Games. Nike launched a global ad
Games. Sochi 2014 and Rio 2016 will campaign ‘Find Your Greatness’
vastly exceed this sum, with Rio 2016 featuring ordinary athletes competing
estimated to have generated close around the world in places outside
to US$1 billion from its first three England that happened to be called
partner deals. London, such as the parish of Little
Brabners Chaffe Street advised London in Jamaica. A series of Nike
LloydsTSB, Adidas, Thomas Cook press and poster advertisements
and Nielsen on their deals with Locog appeared in many prominent
and, more recently with Michael sites in London including Oxford
Payne, assisted Banco Bradesco on Circus and Piccadilly Circus. Nike
its negotiation with Rio 2016. then linked the campaign into its
Nike+ digital ecosystem, a concept
London 2012 ambush marketing
with over 8.5 million worldwide
Amid much controversy, the UK
members, aiming to make the day
government introduced one of
of the Games’ closing ceremony the
the most stringent anti-ambush
most active day ever recorded with
marketing pieces of legislation
people encouraged to share their
ever for the Games (the 2006 Act).
experiences through social media,
Essentially, whilst prohibiting the
including Nike’s own social platforms.
use of certain words, the Act also
It was reported that Locog’s legal
prohibited any entity from creating
team examined the campaign but
any ‘association’ with the Games
decided that it did not infringe the
unless authorised by Locog (the
association right.
association right). This gave Locog a
The world-famous American
massive weapon and the questions
rapper Dr Dre also received much
were to what extent it would need
publicity for providing Beats by Dre
and choose to use it.
headphones to certain athletes in
There were many infringements
their national colours, which were
at a lower level where Locog was
very quick to act, such as banning
a butcher from displaying a sign
used by many immediately pre-
competition. With Beats enjoying
11
a 53 per cent share of the US$1
using sausages to create the Olympic
billion headphone market in 2011,
rings and requiring an 81-year-old
the distinctive headphones quickly
grandmother to remove a doll’s
became the athlete ‘must have’ item
jumper for sale at a charity fair
of the Games.
bearing the Olympic rings.
Finally, Rule 40 of the Olympic
However, at a higher level the
charter provides that no athlete
much anticipated wave of ambush
may allow his/her image to be used
451
for advertising purposes during an 2016 Games. Clearly, the current

Olympic Games, clearly to prevent legislation will not enable Rio 2016 to
non-Games sponsors using images do that.
of athletes during a Games. Many
2. Broadcasting
athletes in London, however,
In the UK over 50 million people
criticised the rule. Defending 100
watched the Games on television at
metre hurdles champion Dawn
some point. However, unlike the BBC
Harper tweeted a photo with her
– a public broadcaster that carries no
mouth covered by tape reading ‘Rule
advertising or broadcast sponsorship
40’. A number of athletes, including
– the domestic rights holder for the
Usain Bolt, are now preparing to
Rio Games will be a commercial
lobby the IOC.
broadcaster, Globo.
Whilst Globo will inevitably have
Lessons for Rio
to offer advertising opportunities
1. Anti-ambush marketing legislation to IOC and Rio 2016 partners first,
Even with the 2006 Act in place, in the absence of a law providing
some non-Games sponsors engaged the protection of the 2006 Act the
in highly successful campaigns. likelihood of non-Games sponsors
To support its bid to host the 2016 creating an association through this
Games, Brazil introduced Law No. medium will be far greater.
12035. Like the 2006 Act, it forbids Television advertising will by no
the use of many symbols linked means be the only form of media
to the 2016 Games and the use through which such ambusher
of terms which have sufficient brands will run their campaigns. As
similarity to those symbols to the ‘social media Games’, London
create association with the 2016 2012 reportedly saw more tweets
Games. However, it appears that posted each day than during the
the legislation does not go as far as entire duration of Beijing 2008. Over
the 2006 Act in prohibiting activity the course of the Games TOP Partner
which would otherwise create an Coca-Cola amassed over 44 million
association. combined Facebook fans, Twitter
Brazil has a population of followers and YouTube subscribers.
almost 200 million and in 2011 the Brazil has 46 million internet users
International Monetary Fund (IMF) and is amongst the fastest growing
ranked it seventh in the top ten markets for Facebook. Given the
largest economies in the world. With fact that there is a further four years
such a vibrant economy, inevitably until the Rio Games, social media
non-Games sponsor brands will do will clearly be a massive platform
all they can to create association with for both sponsors and non-Games
the Rio Games without falling foul of sponsors.
the law. At the same time, with the
first three Rio 2016 partners having 3. Athletes and Rule 40
paid close to US$1 billion, these Rio 2016 will need to keep a close
partners are highly likely to seek the eye for activities such as Dr Dre’s
greatest assurances from Rio 2016 in enforcing the IOC’s clean venue
that it will have and enforce powers guidelines but it will also need to
to prevent non-Games sponsors keep a close eye on the Rule 40
gaining general association with the situation. Combine the current
potential for non-Games sponsors to
452
create an association with the likely be questioning whether they are

rollout of such campaigns through receiving value for money
Globo and Brazil’s social media
network and if non- Games sponsors Source: http://www.sportspromedia.com/
are also able to use the images of guest_blog/london_2012_sponsors_and_
competing athletes during the Rio ambush_and_the_lessons_for_rio_2016.
Credit: www.sportspromedia.com.
Games, Rio 2016 partners may well
Do most ambush marketing tactics work for organizations that do not want to pay
the cost for official Olympic sponsorship? The answer to this question seems to be
an overwhelming yes. Studies have shown that most consumers cannot correctly
identify the true Olympic sponsors. Research from the Chartered Institute of
Marketing (CIM) revealed that brands that adopted ambush marketing strategies
enjoyed more public recognition than the official Olympic sponsors.32 The study,
which questioned 1,000 adults regarding brands associated with the Olympics in an
official or nonofficial capacity, found that 33 percent of consumers linked either Adidas
or Reebok with the Sydney Games despite the fact that neither were official Olympic
partners.
On the positive side, Coca-Cola, an official partner of the Games, achieved the most
recognition, with 22 percent of respondents associating the soft drinks brand with the
Olympics. However, other sponsors fared less well, with Visa International, Samsung,
Panasonic, and IBM all scoring less than 5 percent in terms of public recognition. In
the case of Visa, this lack of awareness was put into even more perspective by the
fact that its main rival, American Express, scored higher recognition despite not being
an official sponsor.
BEATS BY DRE GIVES HEADPHONES TO BRITISH

ATHLETES, ANGERING IOC
LONDON – Dr. Dre has made his mark that prohibit “advertising” from
on the 2012 Olympics by launching companies that do not hold official
an ambush marketing campaign that Olympic rights.
has infuriated Olympic chiefs. Several swimmers and members
The rapper came up with the idea of the British soccer team have been
of sending athletes special versions spotted wearing the headphones.
of his Beats headphones, complete The IOC is considering what action
with personalization and decked out to take. It is unlikely the athletes can
in national colors.
Rapper Dr. Dre sent Olympic
be ordered not to wear the items,
but they could be prevented from
11
athletes special versions of his Beats mentioning them in interviews via
headphones. (Getty Images) social media.
Dre and his public relations and “If there is a blatant attempt
marketing teams devised the plan at ambush marketing or by a
to send batches of the headphones group of people with commercial
to Great Britain athletes, despite views then of course we will
the detailed regulations of the intervene,” IOC president Jacques
International Olympic Committee Rogge said.
453
Tennis players, archers and platform The situation is the latest in a series
divers, mainly from Britain, were of headaches the IOC has suffered
also seen with the flag-emblazoned in relation to its stringent brand-
headphones. There was speculation protection measures. American
the success of the project would lead to athletes, including 400-meter sprinter
Beats by Dre offering similar handouts Sanya Richards-Ross, have criticized
to athletes from other nations. Rule 40, the IOC code-of-conduct
The popularity of Beats by Dre regulation that prevents competitors
began to grow during the 2008 from using social media to mention
Games in Beijing after the company their sponsors.
gave headphones to LeBron James A marketing expert also claimed
and he distributed them to the rest the rigidity of the regulations has
of the NBA players on Team USA. actually allowed some non-sponsors
Upon their arrival in Beijing, several to benefit by positioning themselves
of the players were wearing the as “underdog” brands.
headphones as the international “Everyone has been trying to
media greeted them. protect the brands that have invested
The IOC is especially angered as it so much money in the Games,” said
has an official electronics partner in Gavin Lewis of the Hope and Glory
Panasonic whose interests it is likely marketing agency. “But in being so
to take action to protect. strict about what can be done, they
“We have to be careful because have made a rod for their own backs
without these measures there could in the sense that they have allowed
be no sponsorships and without other brands to get in.”
sponsorships there would be no
Olympics,” Rogge said. Source: Article author: Martin Rogers.
The ambush by Dre has been Rightsholder: Yahoo Sports; http://sports.
particularly successful in the Aquatics yahoo.com/news/olympics--beats-by-
Centre, with virtually every swimmer dre-gives-headphones-to-british-athletes-
at the Games now using headphones -angering-ioc.html. Reprinted with
to tune out background noise as they permission from Yahoo. © 2014 Yahoo.
walk toward the pool before races.
Because ambush marketing tactics are effective and consumers do not really
care (only 20 percent of consumers said that they were angered by corporations
engaging in ambush marketing), it appears that there is no end in sight for this highly
competitive tactic. However, harsh preventive measures are taking place to protect
the investments of the actual sponsors of the Olympic Games. As the accompanying
article indicates, the IOC continually enacts measures to protect its sponsors.

BRAZIL: Congress adopts legislation to curb ambush marketing during 2016
Summer Olympics
Shortly after Rio de Janeiro was Act (Law 12,035/09 of October 1,
selected to host the 2016 Summer 2009). The Act contains a number of
Olympic and Paralympic Games, special rules required for the carrying
the Congress passed The Olympic out of the Olympic Games, among
454
them specific provisions designed enlarged to also cover the use of

to protect the official symbols and terms and expressions that, albeit
curb ambush marketing during the outside the list of symbols mentioned
events. in this law, are “sufficiently similar to
Under Article 6, federal authorities them to the extent that they are able
are responsible for monitoring, to invoke an undue association of any
investigating and suppressing any products and services whatsoever,
unlawful acts that violate the rights in or even any company, transaction or
the Olympic symbols in connection event, with the Rio 2016 Games or
with the Rio 2016 Games. The Act Olympic Movement.”
broadly defines the symbols as: The Act complements the already-
• all graphically distinctive signs, existing rules of other statutes and
flags, mottos, emblems and treaties, which can be used to protect
anthems used by the International the Olympic symbols and curb
Olympic Committee (IOC); ambush marketing. These include the
• the names “Olympic Games,” following:
“Paralympic Games,” “Rio 2016 • the Nairobi Treaty for the
Olympic Games,” “Rio 2016 protection of the Olympic symbol;
Paralympic Games,” “XXXI • the Brazilian Industrial Property
Olympic Games,” “Rio 2016,” Law (Law 9,279/96), which
“Rio Olympics,” “Rio 2016 prohibits the registration as marks
Olympics,” “Rio Paralympics,” of names, prizes or symbols of
“Rio 2016 Paralympics” and other official sporting events, as well
abbreviations and variations, as imitations likely to cause
and also those equally relevant confusion, except when authorized
that may be created for the same by the competent authority or
purposes, in any language, entity promoting the event;
including those in connection with • the Pelé Law (Law 9,615/98), a
websites; provision of which grants the
• the name, emblem, flag, anthem, Brazilian Olympic Committee
motto and trademarks and exclusive rights in relation to
other symbols of the Rio 2016 the flags, mottos, anthems
Organizing Committee; and and Olympic symbols, as
• the mascots, trademarks, torches well as to the names “jogos
and other symbols in connection olímpicos,” “olimpíadas,”
with the XXXI Olympic Games, Rio “jogos paraolímpicos” and
2016 Olympic Games and Rio 2016 “paraolimpíadas”;
Paralympic Games. • the copyright protection afforded
Further, the Act expressly dictates
that unless previously and expressly
authorized by the Rio 2016 Games
to symbols, designs and mascots,
as well as any other works;
• the protection afforded to the
11
Organizing Committee or the IOC, name and image (likeness) of
the use of any symbols in connection athletes by the Brazilian Civil Code,
with the Rio 2016 Games, whether or as well as the Pelé Law;
not for commercial use, is forbidden. • rules against unfair competition
Also, the Act takes aim at ambush provided in international
marketing practices in Article 8, agreements such as the Paris
where the above prohibition is Convention and the TRIPS
455
Agreement and in the Brazilian are urged to check independently

Industrial Property Law; on matters of specific concern or
• rules against unjust enrichment interest.
provided in the Brazilian Civil Code; Vice Chair of the INTA Bulletin
and Committee.
• specific rules against ambush
marketing provided by the Code Source: Article authors: Rodrigo
of Ethics of CONAR (Conselho Borges Carneiro, Dannemann
Nacional de Auto-Regulamentação Siemsen Bigler, and Ipanema
Publicitária, the National Moreira. Rightsholder: International
Advertising Self-Regulating Trademark Association; http://
Council), a private entity created www.inta.org/INTABulletin/Pages/
in 1980 by local advertisers, BRAZIL CongressAdoptsLegislationto
advertising agencies and media CurbAmbush Marketing
companies. During2016SummerOlympics.
Similar legislation that will apply to aspx. Reprinted with permission
the soccer World Cup 2014 in Brazil is from INTA Bulletin Vol. 65, No. 2,
under consideration in the Brazilian January 15 2010. Copyright 2010
Senate. International Trademark Association,
Although every effort has been Authors Rodrigo Borges Carneiro,
made to verify the accuracy of items Dannemann Siemsen Bigler, and
carried in the INTA Bulletin, readers Ipanema Moreira.
Arguably the most effective means for organizers of sporting events to block out
unauthorized advertising is to negotiate deals with stadium owners (which may be,
for example, cities, sports clubs, or operating companies), which allow organizers to
fully control advertising on the premises. For example, the organizer may demand
the stadium to be handed over as a clean site, so that the stadium would have to be
cleared of all advertising by unofficial sponsors. The organizer may also require the
stadium to be renamed for the time of the event and control access to the stadium
grounds, including the airspace above. By cleverly designing the general terms and
conditions of ticket sales, organizers can even impose dress codes on the spectators,
enabling the exclusion of those wearing shirts or caps which display the logos of
nonsponsors.
For example,33 even though Burger King was an official sponsor of the Olympic Games
of London they launched a campaign with focus on the competition. In his official
Twitter profile, Brazilian fighter Anderson Silva, who’s the poster boy of the fast food
chain, anticipated that for each medal that Brazil conquers in London, Burger King will
pay double french fries in the company’s restaurants the next day. The promotion is
available only for the combos.
Reaching target markets

Reaching new target markets is another primary objective of sponsorship
programs. One of the unique features and benefits of sponsorship as a promotional
medium is its ability to reach people who are attracted to sports entities because
they share a common interest. Therefore, sporting events represent a natural forum
for psychographic segmentation of consumers, that is, reaching consumers with
similar activities, interests, and opinions (AIOs). Stephen Cannon, Vice President of
456
Marketing for Mercedes-Benz USA sums up their four-year sponsorship deal with the
U.S. Open Tennis, replacing Lexus as the Official Vehicle of the U.S. Open by saying,
“The partnership with the USTA aligns with our strategy to place Mercedes- Benz
at the forefront of marquee events. The Open takes place in one of our most
important markets and is an unrivaled opportunity to uniquely connect with fans and
attendees.”34 Recognizing the growth of global markets, Mercedes- Benz announced
a ten-year agreement for the newly rebranded Mercedes-Benz arena in Shanghai,
China. The 18,000 seat arena is the first naming rights deal for Mercedes- Benz
outside of Germany and creates a powerful precedent in the global sports
marketplace.
Lauded as the world’s premier big-wave surf event, the 2010 Mavericks Surf
Contest presented by Sony Ericsson was earmarked as the season’s most anticipated
big-wave surf occurrence. “Sony Ericsson is an incredibly innovative company, and
they will capture all of the breathtaking and spectacular action using their mobile
devices on Contest Day. And as an environmentally responsible organization, we really
appreciate Sony Ericsson’s strong efforts toward conservation and recycling,” said
Mavericks CEO Keir J. Beadling. On Contest Day, spectators are encouraged to bring
their old mobile phones to the Sony Ericsson tent to be recycled or take a minute and
recharge their current mobile phones. All proceeds from the recycling program will be
donated to helping the coastline.35
Jetsetter launched a series of NCAA Men’s Basketball themed ticket and hotel
packages for the 2012 “March Madness” championship series. The flash sale travel
site often offered one-of-a-kind ticket and experience packages for events like the
Superbowl and Kentucky Derby with deals including but not limited to:
X Packages to each of the Second, Third, Sweet Sixteen and Elite Eight rounds. Each
package includes two game tickets and a two-night hotel stay in the city of play.
Prices vary by city and date and range from $800–$1,350.
X Four VIP Packs to the Final Four and Championship games, each of which
includes two tickets to each of the games in New Orleans (total of three games), a
four- night stay at The Ritz Carlton, dinners by acclaimed Chef John Besh and Iron
Chef Marc Forgione, drinks from a top mixologist at Club 44, and a meal with a
coaching legend. Package is $2,995.
X Two Final Four Ultimate VIP Packs with lower, 100-level seating at the
Tournament. Also includes a $100 Jetsetter credit. Package is $3,500.36
11
Web 11.1 Disabled athletes compete in Paralympic games

Source: U.S. Paralympics/U.S. Olympic Committee
457
Consider the following examples of how sponsors have attempted to reach new and
sometimes difficult-to-capture audiences: The X-Games represent a perfect opportunity
to reach Generation Xers, a target market that is “difficult to reach through traditional
media.” Another target market that has been neglected includes the millions of disabled
Americans. With the growth of the Paralympic Games and programs such as A Sporting
Chance, which provide opportunities for people with disabilities to participate in sports,
marketers are now addressing this market. Begun in 1960 as an event “parallel” to
the Olympics, the Paralympics have blossomed into a major competition of their own.
The Paralympic Games are a multisport, multidisability competition of elite, world-class
athletes held approximately two weeks after the regular Olympics in the same host
city. “The Paralympic Games have truly come home and found their pathway to the
future here in London,” Sir Philip Craven declared to the 80,000 in attendance. Just
consider some of the impressive numbers. More than 4,000 athletes from 164 teams
competed. The London Paralympics have sold more tickets than any previous Games
and been broadcast to more people in more countries. More than 2.7 million tickets
were sold for the London Games, which is 900,000 more than in Beijing.37 Perhaps the
fastest growing target market for many marketers interested in sports sponsorship
opportunities is women, and the growth of women’s sports is taking place at all levels.
More and more women are participating in sports and watching sports, which has
created opportunities for equipment and apparel manufacturers as well as for broadcast
media. In addition, marketing to women through the athletic medium has become an
interesting and valuable tool for corporate America. In short, women are becoming the
target market of choice for sports marketers.
Although women are growing in importance to sports marketers, relatively little is known
about the sponsorship decisions relative to women’s sport. What are the women’s
sports that are experiencing the most sponsorship growth? As seen in Table 11.4, at
the collegiate level, soccer, golf, lacrosse, cross country, and softball have all grown in
sponsorship spending at a rate of over 100 percent in the last 25 years. Additionally, only
two sports (field hockey and gymnastics) have shown a decrease in spending.
A study by Nancy Lough and Richard Irwin was designed to better understand
corporate sponsorship of women’s sport.38 The study questioned whether corporate
sport sponsorship decision makers differ with respect to why they sponsor women’s
sport versus more “traditional” sponsorship opportunities. The authors found that
Table 11.4 NCAA women’s sports sponsorship growth
Sport % Growth over 25 years

Soccer 1041%
Golf 286%
Lacrosse 151%
Cross Country 125%
Softball 119%
Outdoor Track 65%
Volleyball 63%
Basketball 45%
Tennis 44%
Swimming 41%
Field Hockey –4%
Gymnastics –35%
458
Table 11.5 Importance of corporate sports sponsorship objectives by sports sponsorship type
Mean ratings (1 – 7) Objective General Women‘s

Increase sales/market share 5.94 5.72
Increase target market awareness 5.88 5.89
Enhance general company image 5.81 5.94
Increase public awareness of company 5.56 5.53
Demonstrate community involvement 4.75 4.88
Build trade relations 4.50 4.29
Build trade goodwill 4.31 4.24
Demonstrate social responsibility 4.19 4.57
Block/preempt the competition 4.19 4.00
Enhance employee relations 3.76 3.78
Demonstrate corporate philanthropy 3.13 3.71
corporate decision makers are more concerned with meeting objectives related to
image building and increasing target market awareness, as opposed to building sales
and market share. Summarized results of the research are shown in Table 11.5.
Relationship marketing
As discussed in Chapter 10, relationship marketing, building long-term relationships
with customers, is one of the most important issues for sports marketers in today’s
competitive marketing environment. Building relationships with clients or putting
the principles of relationship marketing to work is another sponsorship objective.
Corporate hospitality managers see to it that sponsors are given ample space to “wine
and dine” current or perspective clients.
Companies began throwing more lavish sports-related parties at the Super Bowl
during the mid-1980s. David M. Carter of The Sports Business Group, a Los
Angeles- based sports consulting firm, says the demand for corporate sports
hospitality has grown “exponentially” since then. “As sports’ fan base has shifted
from the everyday fan to the corporate fan, these events have increasingly catered
to fans who are there to conduct business-to-business marketing,” Carter says.
These companies are trying to generate new business and keep current clients as
well.
When Bank of America became the sponsor of the BAC Colonial Tournament, the
company wanted to create a touring hospitality program that would further enhance
the bank’s “Higher Standards” brand statement and give them a fitting opportunity to
socialize with a large number of current and prospective customers.
“Banking is done at the local level so we use hospitality as a one-to-one relationship
building opportunity and a very key part of our marketing mix,” said David Jessey,
11
former senior vice president of sponsorship marketing for Bank of America.
“Hospitality is more than a sign or a commercial. It is a higher standards experience
that the guest actively takes part in.”
The result was Hogan’s Alley, an environment that resembled more of a leather-
clad country club than simply a tent serving hot dogs and cold beverages. The area
included a library filled with golf magazines and books on legendary golfer Ben Hogan,
a conversation area, a large bar and dining area and cocktail tables.
459
To measure the business impact of Hogan’s Alley and determine the tangible results of
its investment from their attendees after their experience, Bank of America established
a database for all their guests. The company offered high-end door prizes for guests
who completed detailed surveys querying them about the event and their banking
activities. According to company research,39 Bank of America determined that 96
percent of attendees were satisfied with the experience, 73 percent said it was the best
corporate hospitality they had ever experienced, and 84 percent said it strengthened
their relationship with the bank. More than 88 percent of attendees stated that they
were more likely to consider using the bank because of the experience.
Very few academic studies have explored company attitudes toward corporate
hospitality or the effectiveness of this activity, but recently Bennett looked at this
growing sports marketing function. He found that two-thirds of the companies he
surveyed believed that “highly formal” procedures were applied to the management
of corporate hospitality and that one-third of the expenses were incorporated into
marketing budgets. Additionally, two-thirds of the companies responding to the survey
said that the decision on choice of events for corporate hospitality was based on “the
in-house assessment of the goodness of the match between corporate hospitality
activities and specific clients.” Two-thirds of the companies felt that corporate
hospitality was a vital element of the marketing mix and even if faced with a recession
would not cut their budget in this area. Finally, companies stated that the greatest
benefit of corporate hospitality activities was retaining profitable customers.40
How much are organizations willing to pay to retain and gain customers? Here’s just
a glimpse at the prices for hospitality areas at the U.S. Open, hosted at Congressional
Golf Course in Bethesda, Maryland. Incidentally, all of these areas sold out:41
Where: Founders Pub – located in the Congressional Club House

Highlights: Exclusive use with seating of 120 guests; 200 weekly ticket packages; 8
weekly staff ticket packages; access to a preferred grandstand; 50 preferred parking
passes; pre-open golf outing for 8 executives
Cost: $475,000, not including food and beverage
Where: Pro Shop – located in the Congressional Clubhouse

Highlights: Exclusive use of pro shop with seating for 50 guests; 100 weekly ticket
packages; 6 weekly staff ticket packages; 40 preferred parking passes; pre-open
outing for 4 executives
Cost: $225,000, not including food and beverage
Where: Presidential Village – located on the 1st hole of the Gold course, left of the
18th green of the Championships course
Highlights: Exclusive use of 40 × 40 tent for seating of 80 guests; 100 weekly ticket
packages; 6 weekly staff ticket packages; 40 preferred parking passes; pre-open
outing for 4 executives
Cost: $195, 000, not including food and beverage
Where: Capitol Club – located in the main ballroom of the Congressional Clubhouse
Highlights: Includes 15 weekly ticket packages; 1 weekly staff ticket package; 5
preferred parking passes; reserve table for the week with seating for 10
Cost: $45,000 ($35,000 – table and admission + $10,000 food and beverage fee)
460
Although corporate sponsors and their clients live and die by the relationships
they forge, the community is another public with which sponsors want to build
relationships. Many corporate sponsors believe returning something to the community
is an important part of sponsoring a sporting event. With the 2012 Shell Houston
Open raising 2.2 million alone, the PGA Tour regular golf tournaments passed $130
million in total charity contributions since 1974. Combined with charitable donations
from the Champions and Nationwide events, more than $1.4 billion has been
generated for charities over the history of the PGA Tour.42, 43
“The outstanding work that is done by our tournaments, players, volunteers and
sponsors is an integral part of what the PGA TOUR is all about, and our ‘Together,
anything’s possible’ platform will enable us to tell that story in a more compelling
way,” PGA TOUR Commissioner Tim Finchem said. “Their charitable efforts too often
are underappreciated on a national scale, so we want to tell the stories of how they
are changing people’s lives and provide a means by which individuals can support their
favorite causes through ‘Together, anything’s possible.’”44
Image building
Perhaps the most important reason for sponsorship of a sports entity at any level
is to maintain or build an image. Image building is a two-way street for both the
sponsoring organization and the sports entity. The sponsoring organization associates
itself and/or its brands with the positive images generated by the unique personality of
the sporting event. Ferrand and Pages describe the process of finding a congruence
between event and sponsor as “looking for the perfect wedding.”45 The researchers
also point out that “any action toward sponsoring an event should begin with an
analysis of the common and unique attributes of the event and the brand or product.”
Waste Management showcased their “green” initiatives through title sponsorship
of the Waste Management Phoenix Open. As the following article illustrates, Waste
Management utilizes the sponsorship platform to show people ways to better
understand and “green up” their businesses.
BEHIND THE SCENES AT THE 2013 WASTE

MANAGEMENT OPEN
Waste Management’s Zero Waste “Considering the phenomenal
Challenge returns in 2013 to the attendance at the Waste
Waste Management Phoenix Management Phoenix Open, the
Open. The sustainability program Zero Waste Challenge is a significant
continues to highlight the achievement led by the Waste
tournament as the “Greenest Show
on Grass”.
The 2012 Waste Management Phoenix
Management Sustainability Services
team and embraced by tournament
organizers, The Thunderbirds,
11
Open achieved the highest diversion and tournament vendors and
rate of any major sporting event and patrons,” said David Aardsma,
was the first-ever major sporting Waste Management Chief Sales and
event not to use trash receptacles. In Marketing Officer. “In 2013, Waste
the program’s inaugural year, more Management continues the Zero
than 97% of tournament waste was Waste Challenge and will highlight
diverted from the landfill. The goal our sustainability and environmental
this year is 100%! solutions around the course.”
461
Join corporate marketers, Steve Neff disposal services. It is one of the

of Waste Management and Tom King, largest residential recyclers and also
Assistant Tournament Chairman and a leading developer, operator and
member of The Thunderbirds, talk owner of waste-to-energy and landfill
about the value of this incredible gas-to-energy facilities in North
sports marketing sponsorship, as well America. The company’s customers
as take a behind the scenes look at include residential, commercial,
what goes into a sports sponsorship industrial and municipal customers
like this one. throughout North America.
Waste Management is the leading
provider of comprehensive waste Source: Rightsholder: BMA; http://
management services in North bmaphoenix.org/events/behind-the-
America. Through its subsidiaries, the scenes-at-the-2013-waste-management-
open/. Credit: Business Marketing
company provides collection, transfer,
Association (BMA), Phoenix Chapter.
recycling and resource recovery and
Gillette and Major League Baseball have had an historic sponsorship agreement for
the past 72 years, extending the longest running sponsorship association of any U.S.
sports league into its ninth decade, since 1939. “The MLB relationship serves as a
venue for Gillette to reach the oft-elusive male target. Gillette is a sports marketing
pioneer that paved the way for modern day sports sponsorship and endorsements,”
said Tim Brosnan, Executive Vice President, Business, Major League Baseball.
“Baseball is a sport steeped in history and tradition, and Gillette’s integral role in
our game will continue into the next decade.” “Major League Baseball has been an
important partner for Gillette for more than 80 years,” said Gene Barbato, Marketing
Director, Gillette. “We look forward to working together as we strengthen the natural
link between Gillette, baseball and men.”46
Consider an event like the Summer Extreme Games (X-Games), which possess a
well-defined image that includes characteristics such as aggressiveness, hip, cool, no
fear, and no rules. The image of extreme sports such as skysurfing, street luge, or
the adventure race will certainly “rub off” or become associated with the sponsoring
organization. Taco Bell, Nike, and Mountain Dew will take on the characteristics of
the extreme sports, and the image of their products will be maintained or enhanced.
“Sponsorship is an opportunity to directly touch consumers and be true to the lifestyle
of the brand,” explains Chris Fuentes, former VP-marketing at Nautica. “It lets you
have a conversation with consumers.”
In Chapter 9, the match-up hypothesis was described as the more congruent the
image of the endorser with the image of the product being promoted, the more
effective the message. This simple principle also holds true for sponsorship. However,
the image of the sports entity (remember, this may be an event, individual athlete,
group of athletes, or team) should be congruent with the actual or desired image of
the sponsor’s organization or the product being sponsored. In Figure 11.2, we can see
how the image of Taco Bell has shifted toward the X-Games and how the image of
the X-Games also shifts toward the sponsor.
Sometimes the “match-up” between sponsor and sports entity is not seen as
appropriate. Gatorade joined AT&T and Accenture in denouncing its relationship
with Tiger Woods following his extra-marital affairs and, as the accompanying article
illustrates, Nike broke ties with Lance Armstrong after his recent debacle regarding
462 the use of illegal supplements.
Taco Bell®
X-Games
Figure 11.2 Sponsorship match-up
LANCE ARMSTRONG NIKE CONTRACT TERMINATED

Company severs ties with cyclist over doping allegations
NEW YORK – Nike has severed ties testicular cancer, retired from cycling
with cyclist Lance Armstrong, citing a year ago. He announced in August
insurmountable evidence that he that he would no longer fight the
participated in doping and misled the doping allegations that have dogged
company about those activities for him for years.
more than a decade. Nike’s courting of top celebrity
The clothing and footwear athletes is well known, as are the
company said Wednesday that it was inherent risks companies assume
terminating Armstrong’s contract when doing so.
“with great sadness.” After Tiger Woods ran his SUV
“Nike does not condone the use of over a fire hydrant in November
illegal performance enhancing drugs 2009, eventually bringing to light
in any manner,” it said in a statement. his infidelities, Accenture, AT&T Inc.
Armstrong said Wednesday, just and Gatorade cut ties with him. But EA
minutes before the announcement Sports and Nike stood by the golfer.
from Nike, that he was stepping Nike signed NFL quarterback
down as chairman of his Livestrong Michael Vick to a contract during
cancer-fighting charity so that the his rookie year in 2001, but ended
organization can steer clear of the that pact in August 2007 after he
whirlwind surrounding its founder. filed a plea agreement admitting
A representative for Armstrong his involvement in a dogfighting
could not be immediately reached for ring. Vick spent 21 months in prison.
comment. Nike re-signed Vick, who plays
Nike Inc., based in Beaverton, Ore., with the Philadelphia Eagles, in July
said it plans to continue its support 2011. The company said at that time
for Livestrong. Anheuser-Busch and that it didn’t condone Vick’s actions,
the sunglasses company Oakley have but was supportive of the positive
already pledged ongoing support for
the organization.
changes he had made to better
himself off the field. 11
The U.S. Anti-Doping Agency Shares of Nike edged slightly
released a massive report last week higher in early trading.
detailing allegations of widespread
Source: Article author: Michelle
doping by Armstrong and his teams
Chapman; http://www.huffingtonpost.
when he won the Tour de France seven
com/2012/10/17/lance-armstrong-nike-
consecutive times from 1999 to 2005. contract-terminated_n_1973192.html.
The 41-year-old Armstrong, Used with permission of Bloomberg L.P.
who overcame life-threatening Copyright© 2014. All rights reserved.
463
In another alcohol-related example, full-page ads in college newspapers called on
university leaders, athletic conferences, and the NCAA to “stop the madness” by
banning alcohol marketing from college sports. The ads, tied to March Madness and
sponsored by the American Medical Association (AMA), ran in college papers in six
cities in advance of the NCAA men’s basketball tournament: in the Chronicle of Higher
Education and student newspapers at Georgia Tech, University of Iowa, University of
Wisconsin, Indiana University, University of Mississippi, and DePaul University. “The
truly insane thing about March basketball is all the money universities get from alcohol
advertising,” the ads read. An illustration showed cheering sports fans holding signs
reading: “Stop the Madness.” The ad claimed that the alcohol industry spent more
than $52 million to advertise its products during televised college sports in a recent
year. Spokesman Bob Williams said the NCAA limits alcohol ads to one minute per
hour of broadcast, won’t allow ads for hard liquor, and encourages “responsibility
themes and messages” in the ads.47 The AMA has campaigned to the NCAA for years
to ban alcohol-related ads.
Philip Morris USA and Philip Morris International (both subsidiaries of Altria) claim they
are changed, responsible companies that do not market to kids and are concerned about
the health risks of their products. But the companies’ actions tell a different story. In the
latest example, Philip Morris International is the only tobacco company that continues
to sponsor Formula One auto races, which exposes spectators and tens of millions of
television viewers worldwide – including millions of children – to the name, logo, and
red-and-white colors of the company’s best-selling Marlboro cigarettes. Arguably, no
responsible company would continue to associate deadly and addictive cigarettes with
the excitement and glamour of auto racing, thereby increasing their appeal to children.
Sales increases
The eventual objective for nearly all organizations involved in sponsorship programs
is sales increases. Although sometimes there is an indirect route to sales (i.e., the
hierarchy of effects model of promotional objectives, which states that awareness
must come before action or sales), the major objective of sponsorship is to increase
the bottom line. Organizations certainly would not spend millions of dollars to lend
their names to stadiums or events if they did not feel comfortable about the return on
investment. Likewise, the events are developed, in some cases (e.g., the Skins Game
and the World’s Strongest Man Competition), for the sole purpose of making a profit.
Without sponsorship, the event would lose the ability to do so.
It is clear that when organizations are considering a sponsorship program, the first
step is to determine the organizational objectives and marketing goals that might be
achieved most effectively through sponsorship. However, the primary motivation
for organizations participating in sports sponsorships is still unclear. Historically,
organizations entered into sponsorships to create awareness and enhance the
image of their brands, product lines, or corporations. Numerous studies examining
the primary reasons for engaging in sponsorship found increasing awareness and
enhancing company image to be the most important objectives.48 More recently,
studies have shown that increasing sales and market share are the primary motives of
sponsorship (see Table 11.6).
Regardless of the relative importance of the various sponsorship objectives,
organizations must carefully evaluate how the sponsorship will help them achieve
their own unique marketing objectives. Along with examining the sponsorship
objectives, the organization must find a sponsorship opportunity that fits within the
464
Table 11.6 Importance of sponsorship objectives
Objectives Mean Importance Rating

Increase sales and market share 6.14
Increase target market awareness 6.07
Enhance general public awareness 5.88
Enhance general company image 5.47
Enhance trade relations 4.60
Enhance trade goodwill 4.55
Involve community 4.48
Alter public perception 4.15
Enhance employee relations 3.84
Block competition 3.68
Develop social responsibility 3.13
Develop corporate philanthropy 3.12
Source: Doug Morris and Richard L. Irwin, “The Data-Driven Approach to Sponsorship Acquisition,”
Sport Marketing Quarterly, vol. 5, no. 2 (1996), 9.
existing promotion budget. Let us look briefly at the basic budgeting considerations,
the next step in the sponsorship model.
Sponsorship budgeting
As with the promotional budget, determining the sponsorship budgeting methods
includes competitive parity, arbitrary allocation, percentage of sales, and the objective
and task method. Because the fundamentals of these budgeting methods have
already been discussed, let us examine the sponsorship budgeting process at several
organizations.
The only generality to be made about the budgeting process is that decision making
varies widely based on the size of the company and its history and commitment to the
practice of sponsorship.49 Larger organizations that have used sponsorship as a form
of communication for many years tend to have highly complex structures and those
new to sponsorship tend to keep it simpler.
Consider, for example, the budgeting process at Anheuser-Busch. Anheuser-Busch’s
budgeting process begins with determining the corporate-wide marketing budget.
This is usually anywhere from 3 to 5 percent of the previous year’s sales (percentage
of sales method discussed in Chapter 10). The total budget is then divided among
the company’s more than 30 brands with Budweiser, the flagship brand, receiving
the largest share of the budget. The final decision on budget allocation is made by
two high-level management teams, who receive and review potential sponsorships.
The first team looks at how the managers plan on supporting their sponsorships with
11
additional promotional mix elements such as point-of-sale merchandising. The second
team hears the brand managers present their case and defend their budget.
Although Anheuser-Busch’s budgeting process represents a more complex and
structured approach, Marriott uses a simpler technique. Marriott, a relative newcomer
to sports sponsorship, leaves the whole business to its corporation’s hotel and
timeshare properties. The same practice holds true for Proctor & Gamble, where
managers of individual brands like Tide decide which sponsorship opportunities to
pursue and how much money to allocate.
465
Once specific budgets are allocated, the organization must look for sponsorship
opportunities that will meet objectives and still be affordable. To accommodate
budgetary constraints, most sports entities offer different levels of sponsorship
over a range of sponsorship fees. One example of the cost of sponsorship and
the tangible benefits received by the sponsor is the Wegman’s title sponsor of the
LPGA Championship (see Table 11.7). The professional golf tournament attracts
slightly more men (60 percent) than women (40 percent), with more than half of
the spectators between 45–64 years old and over half having an average household
income of over $100,000. Sponsorship packages are presented in the following areas:
hospitality, branding, pro-am, advertising, and tickets. Table 11.7 highlights a few of
the sponsorship opportunities within each of these categories.
It is important to note that the sponsorship fee is not the only expense that should be
considered. As Brant Wansley of BrandMarketing Services, Ltd., points out, “Buying
the rights [to the sponsorship] is one thing, capitalizing on them to get a good return
on investment is another . . . . Purchasing a sponsorship is like buying an expensive
sports car. In addition to the initial cost, you must invest in the maintenance of the
car to ensure its performance.”50 Sponsorship must be integrated with other forms
of promotion to maximize its effectiveness. Rod Taylor, senior vice president of the
CoActive Marketing Group, adds, “The only thing that you get as a sponsor is a piece
of paper saying you’ve paid to belong. It is up to you as the marketer to convince
consumers that you do, in fact, belong!” Bill Chipps, of the IEG Sponsorship Report,
says that “the rule of thumb is that for every dollar a company spends on a rights fee,
to maximize the sponsorship, they spend another $2 to $3 on leverage.”
The average sponsor spends $1.60 to leverage its deals for every $1 it pays in rights
fees, according to the IEG/Performance Research Sponsorship Decision-Makers
Survey. According to IEG, the survey’s high watermark for activation spending was
1.9-to-1. Thirty-five percent of the sponsors said they would increase activation
spending over the previous year. Forty-eight percent of these respondents said
they would retain the same levels of expenditure, while only 18 percent projected
a decrease in their expenditures. Over the past few years, 50 percent of the
respondents identified an increase in their return on investment from sponsorship,
while only 6 percent identified a decrease on their return on investment.51
An excellent example of an organization leveraging its Olympic sponsorship is
Coca- Cola. In addition to print and broadcast advertisements, Coca-Cola produced
themed collectible Olympic cans and accompanying P-O-P displays to stimulate
sales at the retail level. According to Katie Bayne, chief marketing officer of Coca-Cola
North America, “The dedication to active living and amazing athletic performances of
our Six-Pack of athletes served as an inspiration for these Coca-Cola Olympic Games-
themed collectible cans. Our special packaging and overall Coca-Cola Olympic Games
program are a great way to celebrate the Games and open a little happiness while
enjoying the exciting competition with your friends and family.”52
Choosing the sponsorship opportunity

Once sponsorship objectives have been carefully studied and financial resources
have been allocated, organizations must make decisions regarding the appropriate
sponsorship opportunity. Whatever the choices, thoughtful consideration must be
given to the potential opportunities.
Choosing the most effective sponsorship opportunity for your organization
necessitates a detailed decision-making process. Several researchers have examined
466
Table 11.7 Wegmans LPGA Championship sponsorship levels
Advertising/Visibility
Web Site Advertising
Banner ad placed on home page of the Wegmans
LPGA Championship
• www.wegmanslpga.org
• Includes banner ad and link
• Over 560,000 page views annually
• $3,000
Logo placed on the home page of the Wegmans
LPGA Championship
• www.wegmanslpga.org
• Includes logo and link
• Over 560,000 page views annually
• $1,000
Electronic Leaderboard Message Package
• Your message appears on 6 electronic score
boards strategically placed on course
• Your message appears for 8 seconds a
minimum of 10 times a day
• Monday – Sunday
• Animated and static graphics
• Viewed by 100,000 spectators
• $3,000
Pairing Sheet Panel Advertising

• Full-color panel ad in the daily pairing sheet
• Distributed free to all spectators
• Monday, Wednesday – Sunday
• Ad is 3 (w) x 10 (h)
• $5,000
11
Tournament Program Advertising
10,000 four-color Tournament Programs
distributed at no charge to spectators. Four ad
sizes available.
Full page ad
• Full color
• 7 ¾ x 10 ¼
467
• $2,500
• Includes your choice of one:
- 25 good any one day vouchers OR
- 6 Clubhouse packages OR
- 8 Grounds packages OR
- 4 Corporate Suite tickets
Half page ad
• Full color
• 3 7∕8 x 10 ¼
• $1,500
• Includes your choice of one:
- 12 good any one day vouchers OR
- 3 Clubhouse packages OR
- 4 Grounds packages OR
- 2 Corporate Suite tickets
Back of Tickets
• Your logo is placed on the back of all
tournament tickets and passes
o Tournament tickets and packages
o Clubhouse Tickets
o Grounds Tickets
o Take away daily ticket
• Over 100,000 tickets printed
• Tickets are required for all spectators,
Monday – Sunday
• $15,000 for the entire week
• $10,000 for Monday, Tuesday, Wednesday
and Thursday OR Friday, Saturday and
Sunday
Branding
Driving Range Sponsor
• Sponsor of the driving range and driving
range bleachers
• Your logo and signage placed at the driving
range for the week
• “Seating Courtesy of” signs prominently
displayed on the bleacher set
• Banner also displayed on the back of
bleachers (provided by sponsor, no smaller
than 3’ X 6’),
• $10,000
468
#1 Bleacher Set
• One bleacher set placed in a high traffic area
• Sponsor Logo and Signage can be placed on
the back of bleacher set
displayed on bleachers
• $10,000
9th Green Bleachers Sponsor

• One large set of bleachers located in a high
traffic area
• Room for multiple Sponsor Logo and Signage
on the back of bleacher set
• $10,000
12th Green Bleacher Set

• One bleacher set on the 12th green
• Your logo and Signage placed on bleacher set
• $10,000

• One large bleacher set on the 17th Green
• Your logo and signage placed on bleacher set
• $10,000
11
• Corporate logo placed on the front and back
of each bleacher set on the 18th green
• “Seating Courtesy of” signs at each stairway
• Viewed by thousands of spectators
• Captured on national television, Thursday
– Sunday
• $25,000
469
Caddy Bib Back Sponsor

• Your logo prominently displayed on the back
of all caddie bibs
• Caddies wear the vest on course at all times
all during the week (Monday – Sunday)
– Sunday
• $30,000
Caddy Bib Front Sponsor

• Your logo prominently displayed on the front
pockets of all caddie bibs
• Caddies wear the vest on course at all times
all week long (Monday – Sunday)
– Sunday
• $30,000
Daily Tournament Sponsor

• Your logo will be placed on the front of all
tournament tickets
• Can distribute literature, coupons, or gift to all
spectators at the gate on your designated day
• $15,000 for the entire week
• $10,000 for Monday, Tuesday, Wednesday
and Thursday OR Friday, Saturday and
Sunday
Ecology Box Sponsor

• Your one-color logo will appear on one side of
the recycle bins and trash boxes
• 600 boxes strategically placed on-course
• Replaced as needed to keep looking fresh
and clean
• $15,000
470
Electronic Leaderboard Permanent Signage

• Permanent signage on 6 electronic score
boards strategically placed on course
• Also includes your message appearing for 8
seconds a minimum of 10 times a day
• Monday – Sunday
• $15,000
Golf Cart Signage

• Sponsorship of the Wegmans LPGA
Championship Golf Carts
• Logo to be incorporated into the golf cart
signage
• Approximately 135 golf carts will be on
course tournament week
• 10 Clubhouse Passes
• $11,000
Media Center Sponsor

Title Sponsor of the Media Center
• Name and logo included on all
correspondence with the media
o Local, regional, national and international
o Over 233 credentialed media representing
61 national and international media outlets
• Opportunity to build a corporate display inside
the Media Center
• Name and logo placed on signage and
banners associated with the Media Center
• $30,000
Putting Green Sponsor

• Your logo and signage placed at the putting
11
green for the week
• Putting green is located by the clubhouse,
near the 1st tee in a high traffic area
• $15,000
471
Quiet Paddles Sponsor

• One color logo on 600 Quiet Paddles used on
course throughout the week
• $15,000
Premier Community Sponsorship

• 10 X 10 sampling space in the Expo Tent
- Main entrance to the Wegmans LPGA
Championship. Located at the bus loop in a
high traffic area
- Sampling space includes table, chairs, pipe
and drape
• Opportunity to interact with 100,000
spectators one-on-one
- Sample, demonstrate, distribute literature/
coupon, enter to win, etc
• 4 Pro-Am playing spots in the Corporate
Pro-Am
• Full page, four color ad in the Tournament
program
• Electronic leaderboard message
• Recognition on the 18th green during closing
ceremony on Sunday
• 100 Tournament ticket units
• $60,000
Volunteer Shirt Sponsor
Your logo placed on all volunteer uniform shirts
• 1,200 volunteer shirts
• Volunteers are required to wear their shirts
on course, Monday – Sunday
• Has shelf life and are worn throughout the
community for years
• Captured on national TV
• 4 Pro-Am playing spots in the Corporate
Pro-Am
• Full page ad in the Tournament Program
• $35,000
Volunteer Tent Sponsor
Naming Rights to the Volunteer Tent
• Located near Expo Entrance/Exit, in a high
traffic area
• Open to all volunteers from 6:00 AM – 5:00
PM, Monday - Sunday
• Serves free coffee, breakfast food, water,
soda and snacks
472
• Air conditioned
• Ample seating, a TV and private restroom
facilities
• Name and logo placed on the gable
• $10,000
Hospitality
Corporate Suite
The Clubhouse Corporate Suite is a private room
located within the Monroe Clubhouse. Tables
both inside and outside on a beautiful patio
overlooking the 18th green provides a relaxing
and rejuvenating atmosphere for you and your
guests. An array of food and beverages are
included.
• 8 Corporate Suite Tickets each day (includes
all grounds and clubhouse access, as well as
all food and beverage)
• 4 VIP parking passes each day
• Fresh breakfast, gourmet lunch along with
afternoon hors d’oeuvres and an open bar
• Climate controlled environment with closed
circuit TV for enhanced Tournament viewing
• $8,000 for the week (includes food and
beverage)
Pro-Ams
Monday Pro-Am Foursome
• 4 playing spots in the Monday Pro-Am
• Scheduled for Monday, August 11th
• Each Pro-Am playing spot includes
o 1 round of golf at Monroe Golf Club on
Monday with an LPGA Pro
o 2 Pro-Am Clubhouse badges
o 2 Pro-Am Meal tickets for Pro-Am
11
Hospitality Suite
o 1 VIP Parking Pass for Monday, August
11th
o 10 Grounds Vouchers for any one
day admissions Monday, Tuesday,
Wednesday
o LPGA Player assignment based on
registration order (First come, first served
lottery basis)
o Pro-Am Gift Package
• $7,000
473
Wednesday Corporate Pro-Am Foursome

• 4 playing spots in the Corporate Pro-Am
• Scheduled for Wednesday, August 13th
• Each Pro-Am playing spot includes
o 1 round of golf at Monroe Golf Club on
Wednesday with an LPGA Pro
o 2 Pro-Am Clubhouse badges
o 2 Pro-Am Pairings party invitations for
Tuesday, August 12th
o 2 Pro-Am Meal Packages for Pro-Am
Hospitality Suite
o 1 VIP Parking Pass for Wednesday,
August 13th
o 10 Grounds Vouchers for any one
day admissions Monday, Tuesday,
Wednesday
o Pro-Am Gift package
• $12,500
Tickets
Beer and Food Pairings Party Ticket
• Scheduled for Friday night
• Monroe Golf Club
• Enjoy great beer and food, win fabulous
prizes and meet LPGA Players
• Must be 21 or older to attend. Proof of age
required at the door
• Limited quantity available and offered while
supplies last
$50 thru January 1, 2014
$55 thru June 15, 2014
$60 after June 15, 2014
LPGA Championship Clubhouse Package
Admissions onto the grounds and into the clubhouse. Package includes 3 “good any one day”
Practice Round Vouchers and 4 “good any one day” Grounds Vouchers. The clubhouse offers the
only enhanced concessions on course.
$99 thru Jan 1, 2014
$135 thru June 15th, 2014
Not available after June 15th, 2014
LPGA Championship Grounds Package
Admission onto the grounds only. Package has 3 “good any one day” Practice Round Vouchers and
4 “good any one day” Grounds Vouchers
$75 thru Jan 1, 2014
Not available after June 15th, 2014
LPGA Championship Clubhouse Voucher
Admission onto the course and into the clubhouse any one day (Thursday – Sunday).
$50 thru Jan 1, 2015
$60 after June 15th, 2014
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LPGA Championship Grounds Voucher

Admission onto the grounds any one day (Thursday – Sunday).
$35 thru Jan 1, 2014
$40 after June 15th, 2014
LPGA Championship Practice Round Voucher
Admission onto the grounds any one practice day: Monday, Tuesday or Wednesday.
$10
Source: http://www.wegmanslpga.org/sponsorship-opps.aspx, accessed December 13, 2013.
Acquistion of sport
sponsorship proposals
Buying Buying center Interaction

grid composition process
Purchase
decision
Figure 11.3 Sports sponsorship acquisition model

Source: Reprinted by permission from D. Arthur, D. Scott, and T. Woods. “A
Conceptual Model of the Corporate Decision-Making Process of Sport Sponsorship
Acquisition, Journal of Sport Management, vol. 11, no. 3 (1997), 229.
the organizational decision-making process in attempts to understand the evaluation

and selection of sponsorship opportunities. A conceptual model of the corporate
decision-making process of sport sponsorship acquisition developed by Arthur,
Scott, and Woods is shown in Figure 11.3.
The process begins with the acquisition of sponsorship proposals. Generally, this is a
reactive process in which organizations receive a multitude of sponsorship possibilities
from sports entities wanting to secure sponsors. Within the sponsorship proposal,
potential sponsors commonly look for the following information to assist in decision
making:
X
X
X
Fan attendance and demographic profile of fans at the event
Cost or cost per number of people reached
Length of contract
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X Media coverage
X Value-added promotions
X Sponsorship benefits
After the proposals have been acquired, the next step is to form the buying center.
The buying center is the group of individuals within the organization responsible for
sponsorship evaluation and choice. The buying center usually consists of four to
five individuals who each play a unique role in the purchase. Typically, these roles
are described as gatekeepers, influencers, decision makers, and purchasers. These
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roles were previously discussed in the context of personal selling. You will recall that
one of the sales activities was to identify the individuals within the organization who
performed these roles. Similarly, the sponsorship requester must learn who these
individuals are before submitting the proposal. Hopefully, the proposal can then be
tailored to meet the unique needs of the individuals who comprise the buying center.
Gatekeepers control the flow of information to the other members of the buying
center. They are able to pass on the relevant proposals to other group members
and act as an initial filtering device. The influencers are individuals who can impact
the decision-making process. These individuals often have information regarding
the sports entity that is requesting the sponsorship. The influencers have acquired
this information through contacts they have in the community or industry. The
decision maker is the individual within the buying center who has the ultimate
responsibility to accept or reject proposals. In our earlier examples, describing the
budgeting process for Proctor & Gamble, the brand managers were the ultimate
decision makers in the sponsorship acquisition process. Finally, the purchasers
are responsible for negotiating contracts and formally carrying out the terms of the
sponsorship.
The composition of the buying center, in terms of the number of individuals and
the interaction between these individuals, is a function of the type of sponsorship
decision. The buying grid refers to the organization’s previous experience and
involvement in sponsorship purchases. If this is the first time the organization has
engaged in sport sponsorship, then more information will be needed from the
sponsorship requester. In addition, the buying center will have additional members
with greater interaction. However, if the sponsorship is simply being renewed (also
known as a straight sponsorship rebuy), the buying center will play a less significant
role in the decision-making process.
The next step in the sponsorship acquisition model is to make the purchase decision.
Typically, it takes an organization three to six weeks to make a final sponsorship
decision. While this may seem slow, purchasing a sponsorship is a complex decision
that requires the coordination and interaction of all the members in the buying center.
The purchase decision consists of three interrelated steps. In the first step, the
organization must consider the desired scope of the sponsorship (e.g., international
versus local). To do this, a simple scheme for categorizing sponsorship opportunities
has been developed, called the Sport Event Pyramid. The second interrelated
step requires the organization to select the appropriate athletic platform for the
sponsorship. Does the organization want to sponsor an event, a team, a league,
or an individual athlete? Finally, after the organization has chosen the scope of
sponsorship and the athletic platform, it specifies the particular sports entity. After
the final decision is made, a quick audit can be conducted to determine whether the
organization has made the appropriate choice of sponsorship. Let us examine the
three steps in the purchase decision-making process in greater detail.
Determining the scope of the sponsorship

The first step in the purchase decision phase of sponsorship acquisition is to
determine the desired scope of the sponsorship. David Shani and Dennis Sandler have
developed a way to categorize various sponsorship opportunities called the Sports
Event Pyramid.53 The Sports Event Pyramid is an excellent first step in reducing the
number of sponsorship proposals to a smaller subset.
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The Sports Event Pyramid consists of five levels: global events, international events,
national events, regional events, and local events. Each level of the Sports Event
Pyramid classifies events on the basis of the width and depth of interest in the event.
Shani and Sandler describe the width as the geographic reach of the event via the
various communications media, and the depth of the event refers to the level of
interest among consumers.
Global events are at the apex of the pyramid. As the name implies, global events
have the broadest coverage and are covered extensively around the world. In
addition to their wide coverage, global events generate a great deal of interest among
consumers. Shani and Sandler suggest that the World Cup and the Olympic Games
are the only examples of truly global events. Corporations that want to position
themselves in the global market should be prepared to pay top dollar for sponsorship
of these events due to the tremendous reach and interest in the events.
International events are the next level in the hierarchy. For any event to be
considered international in scope, it might (1) have a high level of interest in a broad,
but not global, geographic region, or (2) be truly global in scope but have a lower level
of interest in some of the countries reached. Examples of international events include
Wimbledon, European Cup Soccer, America’s Cup (yachting), the Rugby Union World
Cup, and the Pan-American Games. Sponsoring these types of events is useful for
corporations that have more narrowly targeted global markets.
Extremely high interest levels among consumers in a single country or two countries
is categorized in the Sports Event Pyramid as a national event. National events, such
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Photo 11.1 Little League (Youth Baseball League)

477
as the World Series, the NCAA Final Four, and the Super Bowl, attract huge audiences
in the United States. Although many of these events attract an international media
audience, the focus is still on national consumers.
Regional events have a narrow geographic focus and are also characterized by high
interest levels within the region. The Big East conference tournament in basketball
and the Boston Marathon are considered good examples of regional events.
In the lowest level of the pyramid are local events. Local events have the narrowest
geographic focus, such as a city or community, and attract a small segment of
consumers that have a high level of interest in the event. High school sports, local
races, and golf scrambles are examples of local events.
The primary purpose of the pyramid is to have marketers first develop an
understanding of what level of sponsorship is consistent with corporate sponsorship
objectives and budgets. Next, the corporation can decide which specific sporting
events at the correct level present the best match. The organization may start small
and choose to sponsor local events at the beginning. The larger the organization
gets, the more likely it will be involved in sponsorship at each of the five levels of
the pyramid. For example, Coca-Cola is deeply involved in sponsorships at all five
levels.
Although the Sports Event Pyramid is a great tool for marketers developing a
sponsorship program, it does have some potential flaws. First, the local events are
shown at the base of the pyramid. To some, this may imply the broadest geographic
focus whereas, in fact, the local events have the most narrow focus. Second, it
may be extremely difficult to categorize certain events. For example, the Super
Bowl is cited as a national event that, by definition, has a one- or two-country focus
with a high level of interest. The Super Bowl, of course, is broadcast in hundreds of
countries, but may have limited interest levels in most. Therefore, it is uncertain as to
whether the event should be categorized as a national event, an international event, or
both.
Determining the athletic platform

After the general level of sponsorship reach is considered via the sponsorship
pyramid, a more specific sponsorship issue must be considered, namely, choosing the
appropriate athletic platform. Professor Christine Brooks defines the athletic platform
for sponsorship as being either the team, the sport, the event, or the athlete.54 In
addition, choice of athletic platform could be further subdivided on the basis of level
of competition. For instance, common levels of competition include professional,
collegiate, high school, and recreational.
The choice of athletic platform (or, in some instances, platforms) is based on
sponsorship objectives, budget, and geographic scope. More specifically, when
selecting the athletic platform, several factors should be considered.
X What is the sponsorship budget? What type of athletic platform is feasible given
the budget?
X What is the desired geographic scope? How does the athletic platform
complement the choice made in the sports sponsorship pyramid?
X How does the athletic platform complement the sponsorship objectives?
Let us take a closer look at each of the broad choices of athletic platform for
sponsorship. These include athletes, teams, sports/leagues, and events.
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FENTON HIGH SCHOOL LOOKING AT BOOSTING CORPORATE

SPONSORSHIP OF ATHLETICS
FENTON, MI – Fans at Fenton school community, such as Linden, Lake

sporting events could be looking at Fenton and Hartland, would offer an
more corporate ads in the future. array of different sized packages to
Fenton Area Schools is considering sponsors.
a policy that would boost their Utilizing advertising to generate
corporate sponsorship of high school revenue for school districts is a
athletics by offering a wider variety of blossoming business.
advertising packages. In the Holly Area School District,
“In this economic climate, we’re sports teams are allowed to gather
struggling to involve more of our their own corporate sponsors to raise
local businesses with the corporate funds for themselves.
sponsorship program we had set up “The reason behind this individual
initially,” said Mike Bakker, Fenton’s concept is that teams have different
athletic director. perks to offer sponsors,” said Deb
For the past three years, the VanKuiken, Holly’s athletic director.
program has had two paying “For instance, a baseball team may
sponsors: Vic Canever Chevrolet and hang a sign on their field fencing and
Raymond James and Associates. read announcements at games while
A third sponsor – McLaren Health the ski team hangs a banner on their
Care – receives advertising in warming tent and the soccer team
exchange for supplying a portion of places advertisements in programs.”
Fenton’s athletic trainer’s salary. Three other Genesee Country
The district currently receives school districts have signed on with
$6,000 a year in advertising but is a Troy-based company – Alternative
looking to at least double that with an Revenue Development, LLC – that
expanded sponsorship program. uses advertising to raise money for
“I would love to see us get to the schools.
point where were bring in $12–15,000 “Before it was either go big or
over the next few years on a yearly not at all,” Bakker said. “We’re also
basis,” he said. “I don’t think that’s willing to talk with (advertisers) and
out of question after talking to other negotiate.”
local sports departments, but we Advertisers can display banners in
have to get the word out there and it the gym, the football stadium or the
takes time to build that.” fence. They can also display banners
Money raised from sponsorships in their businesses and receive
goes to the entire athletic department
to help fix and replace equipment,
lighting and uniforms.
printed ads in the school’s athletic
programs.
The booster program is also willing
11
Fenton has offered a sponsorship to be flexible in negotiating trades in
program for the past four or five return for advertising rights, such as
years, but it was top-heavy and donated equipment or lighting.
advertisers felt they weren’t getting Another new installment, if the
enough bang for their buck, Bakker board approves the proposal,
said. would be an advertising position
The proposed restructuring, based responsible for the management of
on other successful models in the the sponsors.
479
Bakker said they are looking at Bakker said the lack of color logos
paying the advertising representative discouraged some advertisers.
10 percent of all the sales they make, Another new sticking point would
which would be self-sufficient and be scoreboard advertisements.
not draw from the school’s budget. “I wanted to stay away (from
“We have community members corporate advertising) for as long as
who were supportive of athletics in possible because I wanted to keep it
the past with experience in marketing about the kids, but it’s also a revenue
and advertising we’d love to tap that I don’t know that we can ignore,”
into,” Bakker said. Bakker said.
Just two people currently run the Board member Lynn
Fenton athletics department. Hopper questioned whether
“I love the idea of getting the advertisements would be
somebody who this is their sponsorships or endorsements.
specialty,” said board member Nora Bakker assured him they are
Kryza. “I think that’ll make it much sponsorships.
more successful than trying to spread “The good news is that corporate
that little bit of peanut butter on the sponsorship fees directly impact
bread.” each program and thereby student
With the revamped packages, the athletes,” VanKuiken said
all-sports booster program would
offer color banners for the first time; Source: Article author: Sarah Wojcik.
previously, the banners were black Rightsholder: Mlive; http://www/mlive/
with white writing. com/news/flint/index.ssf/2012/06/
fenton_high_school_proposes_po.html.
Athletes
We have previously examined the opportunities and risks of athletes as endorsers
in Chapters 9 and 10. To summarize, athletes can have tremendous credibility with
the target audience and can create an immediate association with a product in the
consumer’s mind. For example, NASCAR fans talk about Danica Patrick driving the
“GoDaddy” car or Kasey Kahne driving the “Budweiser” car. Interestingly, when it
comes to athletes as sponsors, golfers have always been at the head of the pack.
In fact, most believe the entire sports marketing industry was built on the backs of
professional golfers, such as Arnold Palmer, Jack Nicholas, and Gary Player. While
Tiger Woods’ fall from global sports icon to tabloid fodder was stunning, losing
Accenture, AT&T, Gatorade, and Pepsi as sponsors, he still carries the flag and
remains one of the highest-paid athletes in the world thanks to huge deals with Nike,
Electronic Arts and Upper Deck, earning an estimated $105 million.
One athlete that is always surrounded by controversy and seems to exemplify the
bad boy image is former Philadelphia Eagles QB and present New York Jets QB
Michael Vick. In March 2005 a woman named Sonya Elliot filed a civil lawsuit against
Vick alleging that she contracted genital herpes from Vick and that he failed to
inform her that he had the disease. Elliot further alleged that Vick had visited clinics
under the alias “Ron Mexico” to get treatments and thus he knew of his condition.
In another incident with a former team, the Atlanta Falcons, Vick made an obscene
gesture at Atlanta fans, holding up two middle fingers during a game against the
New Orleans Saints in the Georgia Dome on November 26, 2006. To add further
480
fuel to the fire, Vick surrendered a water bottle to security at Miami International
Airport. Due to Vick’s reluctance to leave the bottle behind, it was later retrieved
from a trash receptacle. The bottle was found to have a hidden compartment that
contained a small amount of dark particulate and a pungent aroma closely associated
with marijuana. On April 24, 2007, Vick was scheduled to lobby on Capitol Hill, hoping
to persuade lawmakers to increase funding for after-school programs. Vick missed
a connecting flight in Atlanta and failed to show for his morning appearance.55 In his
most publicized and scandalous act yet, Vick pleaded guilty to a federal dogfighting
conspiracy charge on August 27, 2007, in U.S. District Court and served 21 months in
prison, followed by two months in home confinement. With the loss of his NFL salary
and product endorsement deals, combined with previous financial mismanagement,
Vick filed for Chapter 11 bankruptcy in July 2008. Most recently, Vick has been
accused of using steroids, but he denies these allegations. Currently, Vick continues
to rebuild his broken reputation and regain the trust of the public.
Teams
Teams at any level of competition (Little League, high school, college, and
professional) can serve as the athletic platform. Boeing and Starbucks present an
excellent example of organizations that have chosen to focus on professional sports
teams as their athletic platform.
HOT SEAHAWKS ADD BOEING, STARBUCKS DEALS
Boeing and Starbucks are the newest Starbucks is also planning to activate
corporate partners of the Seattle with a Seahawks-themed retail
Seahawks as the NFL team looks promotion at its many local stores,
to lean on its newfound national something unheard of for America’s
popularity to stimulate deals. top coffee retailer.
Locally based Boeing gets branding “We’ve been on a push to attract
on the Seahawks’ news conference more sponsors looking for national
backdrop under the deal, along with exposure and to take advantage of
permanent signage for all events at the growing popularity of our team,”
CenturyLink Field. Seahawks President Peter McLoughlin
Starbucks, another longtime Seattle said. The Seahawks were one of the
corporate stalwart, gets exclusivity league’s surprise success stories last
in the tea and coffee categories, year and are scheduled to be on four
something not to be undervalued in national TV games this year.
Seattle. The coffee bean seller and The news conference backdrop
brewer gets exclusive rights to sell
coffee within CenturyLink Field, which
it will do within all concession stands
exposure for Boeing, which
McLoughlin said will generate 250
million annual television impressions,
11
and in 18 portable “coffee stations” began with the opening of training
set up on game days. Starbucks is camp. He said the multiyear deal
also supporting the “Better Seattle” makes Boeing one of the team’s five
anti-gang initiative, in which the team largest corporate sponsors. While
and coach Pete Carroll have been Boeing’s support is not a brand
involved. play, McLoughlin said that with
The normally sponsorship-shy 80,000 local employees, it is about
481
“employee morale and supporting Boeing and Starbucks are two

the overall community, because of the larger brand names in a
enthusiasm for this team is at a high, sponsorship portfolio that will see
which is saying a lot out here.” revenue increase 15 percent to
He added that after the ascension 18 percent this season, McLoughlin
of quarterback Russell Wilson last said.
season and the team’s run in the The Seahawks’ press backdrop
NFC playoffs, ticket demand is higher had been sponsored by Oberto Beef
than ever in a town that’s always Jerky, another Seattle company,
Seahawks crazy. Season-ticket which will continue as a Seahawks
renewal, at 98 percent, and the 62,000 sponsor.
season tickets sold both represent
franchise highs, McLoughlin said. Source: Author: Terry Lefton; http://
An additional allotment of 3,500 www.sportsbusinessdaily.com/Journal/
single-game tickets, which went on Issues/2013/07/29/Franchises/Seahawks.
aspx. Rightsholder: Sports Business
sale Monday, sold out in a day.
Journal.
The accompanying Boeing and Starbucks example illustrates that sponsorship is

typically associated with professional teams, but college athletic departments also rely
heavily on sponsorship partnerships.
The marketing of collegiate sports has skyrocketed in recent years. For example,
advertisers are lining up to take their shots during the National Collegiate Athletic
Association’s March basketball tournament. According to Kantar Media (2014) over
the past decade (2004–2013), the NCAA men’s basketball tournament has triggered
more than $6.88 billion of national TV ad spending from 269 different marketers.56
Ad revenue in 2013 was $1.15 billion, up 3.8 percent from the prior year. Since
2011, every tournament game has been aired nationally, producing more advertising
inventory for sale – and sharply higher revenue. Over that time, the average cost of
an ad during the championship game has been $1.24 million – more than a 30-second
spot during the World Series or the NBA finals. The Collegiate Licensing Company,
which represents more than 200 colleges, universities, bowl games, athletic
conferences, the Heisman Trophy, and the NCAA, including the Men’s and Women’s
Final Four, the College World Series, and all NCAA championships, estimates the
licensed collegiate market at around $3 billion in retail sales annually, including both
apparel and non-apparel sales.57 Add to that the multimillion-dollar television contracts
and deals that most university coaches have with Nike, Reebok, and Adidas, and
college athletics is a huge business (see Table 11.8 for a list of universities with the
highest revenues from licensed merchandise sales).
Becoming the official outfitter for a university’s athletic teams has become especially
lucrative for colleges and has given sponsors great exposure. For instance, the
University of North Carolina recently extended a ten-year, $37.7 million contract with
Nike to fuel the growth of the university’s athletic program.58 Nike will provide North
Carolina’s athletic department with the following: (1) Millions in footwear, apparel,
and equipment; (2) $2 million to the Chancellor’s Academic Enhancement Fund,
directed to fund faculty support; (3) $1 million to the athletic department for signing
the contract, with those funds being used to overhaul lighting and sound at the Smith
Center (http://alumniclefs.alumni.unc.edu/article.aspx?sid=6840).
482
Table 11.8 University merchandise sales leaders in 2013
Rank University
1 The University of Texas at Austin
2 The University of Alabama
3 University of Michigan
4 The University of Notre Dame
5 Louisiana State University
6 University of Kentucky
7 The University of Georgia
8 University of Florida
9 The University of Arkansas
10 University of North Carolina
Note: Schools not under contract with the CLC (Collegiate Licensing Company) were not included
on the list. This includes such as Ohio State, Southern California, and Iowa, many of which handle
licensing in-house.
Source: http://www.clc.com/News/Archived-Rankings/Rankings-Q4-2012.aspx.
Sport or league
In addition to sponsoring teams, some companies choose to sponsor sports or
leagues. For example, the smoothie retailer Jamba Juice made its first investment in
a national sports league by signing a multi-year deal to sponsor the WNBA. The deal
will be part of a national marketing campaign promoting health and wellness as well as
promotional materials for Jamba Juice stores in WNBA markets. The league will also
work with the retailer to promote a program known as Jamba Jump, a fitness routine
that uses jump ropes. The goal is to reach 1 million children through the partnership.59
One advantage to sponsoring women’s sports and the WNBA is that there is less
sponsorship clutter. Fewer companies are sponsoring women’s sports or leagues, and
those that do are creating a unique position and differentiating themselves.
For example, cosmetics brand CoverGirl is the presenting sponsor of the WNBA’s
new marketing campaign WNBA Pride, aimed at the lesbian, gay, bisexual, and
transgender community. WNBA Pride is the league’s platform celebrating inclusion
and equality, while combating anti-LGBT bias. The global consumer products company
Procter & Gamble owns CoverGirl. The program would not have seen the light of
day without the support and acceptance of other league marketing partners, which
include Boost Mobile, Adidas, American Express, BBVA, Anheuser-Busch, Coca-Cola,
EA Sports, Gatorade, Nike, Spalding, and State Farm. While the WNBA welcomes all
fans, athletes, and partners to our game, the value of marketing partners should not
be underestimated in matters where social responsibility conforms or conflicts with
business strategies, especially when those conflicts become public knowledge.60
11
Anheuser-Busch is a corporation that has chosen an integrated approach in sponsoring
a number of sports or leagues. Anheuser-Busch became the official beer of Major
League Baseball in 1996, and became the official beer of the NBA in 1998. Bud Light
began its sponsorship of Team Seebold in 1982, sponsors the ChampBoat Racing
Series team, and became a founding partner of the Professional Bull Riders in 1993.
Anheuser-Busch’s sports sponsorship portfolio includes beer sponsorships with the
NFL and UFC (Bud Light); MLB and NBA (Budweiser); PGA, LPGA, and Champion’s
Tours (Michelob ULTRA); and the Kentucky Derby (Stella Artois). The makers of
483
Web 11.2 University of Texas’ Corporate partner program

Source: www.texassports.com / UT Athletics
Budweiser and Bud Light are the official beer sponsors of 28 NFL teams; the
exclusive alcohol and non-alcohol malt-based beverage sponsor of the Super Bowl,
and is the official beer of the entire NFL. In addition, they sponsor 26 MLB teams,
25 NBA teams and Bud Light also signed on as the official beer of the NHL in 1988
and currently sponsors 20 domestic teams.61 In total, Anheuser-Busch sponsorships
include 95 local teams across the four major sports leagues and dozens of local
running and cycling events nationwide as well as the No. 29 Budweiser Chevrolet SS
driven by Kevin Harvick.62
It has been the official alcoholic beverage of Major League Lacrosse since the league
started in 2001, and has sponsored the sport since 2004. Current surfer sponsorships
include Serena Brooke, Freddy P, Sean Moody, and Benji Weatherly. The AVP Tour
named Bud Light its official beer of the tour in 2000. In 2013, Anheuser-Busch was
named Sports Sponsor of the Year. Blaise D’Sylva, vice president of media, sports
and entertainment marketing for Anheuser-Busch noted “Successful sports marketing
execution at Anheuser-Busch is more than purchasing a 30-second spot or signage in
a stadium, it is the collective effort of hundreds of people inside the organization, our
partners and our wholesalers, working together every day to leverage sports and beer
in exciting and innovative ways to connect with our consumers.”63
The “Ben Hogan Tour” was established in 1990 as a breeding ground for golf
professionals who have not cracked the PGA. In 1993, Nike sponsored the tour,
followed by Buy.com, which ended its sponsorship in 2002. In 2014, Web.com became
the fifth title sponsor in the history of the PGA Tour’s developmental circuit, replacing
Nationwide. According to the PGA, the 10-year agreement comes four months after the
tour also renewed its deal for the FedExCup, a $35 million bonus series.64 In 2013, the
tour negotiated a nine-year television deal with NBC Sports and CBS Sports, establishing
television contracts through 2021. The Web.com Tour serves to become the primary
path for players to reach the PGA Tour. Starting in September 2013, the top 75 players
from the both Web.com and the top 75 PGA Tour players who failed to qualify for the
FedExCup playoffs will meet in a three-tournament series that effectively replaces
Q-School.65 A total of fifty PGA Tour cards will be awarded after those three events.
484
Nike elevated its sponsorship with the addition as a title sponsor of the Winter Dew
Tour’s season opener, the Nike 6.0 Open. The event hosted at Breckenridge Ski Resort
provides a platform for Nike to engage in the growing winter action sports scene. Nike,
originally an associate level partner, will receive tour-wide exclusivity in the footwear,
athletic and casual apparel, and outerwear categories as well as receive fully integrated
marketing benefits that include television ads and online exposure. Nike’s linkage with
an event such as the Winter Dew Tour illustrates the strength of the property and their
brand’s commitment to the industry. Lately, a variety of action sports properties have
been trying to organize themselves to become more attractive to sponsors. Partnerships
across these platforms provide benefits to enhance the involvement and further leverage
sponsorship offerings thereby enhancing the procurement of the ultimate dollar.66
Action sports were not the first property to think about how best to serve the
interests of sponsors. NFL Properties was designed in 1963 primarily to meet and
beat the competition posed by Major League Baseball. The league, in attempting to
offer a competitive advantage to sponsors, built a system whereby potential sponsors
receive collective and individual team rights. That is, sponsors can create opportunities
or promotions that feature all NFL teams and local teams in a local market.67
Sponsors choose to use the power of the league and its recognizable league logo and,
therefore, support all the teams. From the sponsors’ perspective, this represents easy
and less expensive one-stop shopping. As Burton points out, “If an NFL corporate
partner had to design individual local contracts to secure key markets, the collective local
team fees would quickly surpass the single sponsorship fee.” By allowing sponsors
the opportunity to receive collective team rights, the league gains enhanced exposure.
As an example, Bose, Inc. (already the official home audio sponsor of the NFL) and the
National Football League announced an extension for Bose to replace Motorola to put
its corporate logo on the headsets worn by coaches during games. Bose will design,
engineer and manufacture new headsets for all NFL coaches to use in-game, enhancing
sideline and booth communications in a variety of areas, including play-calling and instant
replay. Bose,one of two sponsors to have an on-field presence, will work with the NFL to
develop and implement game-changing communication innovations.
Events
An athletic platform that is most commonly associated with sports marketing is the
event. Examples of sporting events sponsorship are plentiful, as are the opportunities
to sponsor sporting events. In fact, sometimes the number of events far outweighs
the number of potential corporate sponsors. For example, the city of Winnipeg staged
two national and international sporting events over the space of 16 months. In a
city that ranks as the eighth largest in Canada and has a population of only around
680,000, the challenge was to find enough corporate sponsors. In response to this
challenge, event organizers were forced to be more creative in designing sponsorship
packages that appeal to organizations of all sizes.68
11
The advantages of using an event as an athletic platform are similar to those benefits
gained by using other athletic platforms. For instance, the event will hopefully increase
awareness and enhance the image of the sponsor. In addition, consumers have a
forum in which to use and purchase the sponsor’s products. Lexus offered a swing
simulator at its vehicle display tent that lets fans take shots on a computer-generated
Oakmont course, while AmEx hosted an interactive area open to all ticket holders at
the U.S. Open.
485
In another example, Cincinnati Reds fans received refrigerator and car magnet
season schedules courtesy of PNC, who also sponsors many other promotions at the
ballpark.
As with the other athletic platforms, one of the primary disadvantages of using
events as the athletic platform is sponsorship clutter. In other words, sponsors
are competing with other sponsors for the attention of the target audience. One
popular way to combat this clutter is to become the title sponsor of an event. Every
college football bowl game now has a title sponsor, with the exception of the Rose
Bowl – and this too has changed. In 1999 the Rose Bowl added a sponsor’s tag line.
More formally, this is called a presenting sponsor (i.e., the Rose Bowl presented by
VIZIO).
Choosing the specific athletic platform

The choice of a particular athletic platform follows the selection of the general
platform. At this stage of the sponsorship process, the organization makes
a decision regarding the exact athlete(s), team, event, or sports entity. For
instance, if the organization decides to sponsor a professional women’s tennis
player, who will be chosen – Serena or Venus Williams, or Maria Sharapova?
As with the previous decisions regarding sponsorship, the choice of a specific
sponsor is based largely on finding the right “fit” for the organization and its
products.
A recent trend is for sports marketers to ensure and control the fit by manufacturing
their own sporting events. For example, Nike has created a division to create and
acquire global sporting events. By creating their own events, Nike will be able to
control every aspect of how each event is marketed. Moreover, Nike will be able
to develop events that are the perfect fit for their multiple target markets.69 Other
organizations, such as Honda, are pursuing a similar strategy. They have put pressure
on their advertising agency to develop sporting events that will be the ideal match for
the Honda target market.
Once the decision regarding the general level of sponsorship and the specific
athletic platform have been addressed, it may be useful to review carefully the
choice(s) of sponsorship before taking the final step. To do so, Brant Wansley of
BrandMarketing Services, Ltd. offers the following suggestions for choosing a
sponsorship.70
X Does the sponsorship offer the right positioning?
X Does the sponsorship provide a link to the brand image?
X Is the sponsorship hard for competitors to copy?
X Does the sponsorship target the right audience?
X Does the sponsorship appeal to the target audiences’ lifestyle, personality, and
values?
X How does the sponsorship dovetail into current corporate goals and strategies?
X Can the sponsorship be used for hospitality to court important potential and current
customers?
X Is there a way to involve employees in the sponsorship?
X How will you measure the impact of the sponsorship?
X Can you afford the sponsorship?
X How easy will it be to plan the sponsorship year after year?
X Does the sponsorship complement your current promotion mix?
486

Nike won’t drop Penn State’s Paterno, so we should drop Nike
The Penn State child rape scandal that Nike has no plans to rename this
continues to snowball by the day, building, where 200 children under
taking with it advertising and age five spend their days.
sponsorship dollars, the jobs of those To spell out why this decision is
peripherally involved and what’s left unacceptable: despite hearing Mike
of Joe Paterno’s reputation. McQueary’s eyewitness account
On Monday, Paterno’s name of Sandusky raping a small boy in
was removed from the Big Ten 2002, Paterno did the bare minimum,
championship trophy. On Sunday, reporting his one-time assistant
Jack Raykovitz – CEO of Second coach to the University. He did not
Mile, the child advocacy group Jerry alert the police. He did not make
Sandusky founded then allegedly any effort to protect the children
trawled for victims – resigned from involved in Sandusky’s program
his role. That same day, the Wall from the alleged sexual predator.
Street Journal revealed that at least He did not see fit to stop Sandusky
six advertisers including Cars.com having contact with other kids on his
have pulled out of ESPN broadcasts premises, under his own roof, at the
of future Penn State games. very cathedral of football where he
Still, as you’ll know if you read my presided as Pope. Per the Grand Jury
colleague Mike Ozanian’s post on presentment, seven more children
Friday, the biggest, most influential were sexually assaulted after that first
sports brand on the planet continues unreported incident (Sandusky denies
to stick by both PSU and its disgraced all charges). Since this scandal broke,
former coach Paterno: Nike. another 10 have come forward, said
Ozanian’s point proved the New York Times on Monday.
controversial among commenters Nike spokeswoman Erin Dobson
(myself included): He posited that trotted out a prepared statement
Nike’s decision to stick by troubled when the Oregonian asked about the
stars in the past – Tiger Woods appropriateness of the Joe Paterno
among them – paid off financially Child Development Center’s name.
once the dust had settled. Their Yesterday, when I approached
decision to back Paterno will be no Dobson to see what Nike meant
different, he said. Fine, maybe so. But by “monitoring the situation”, she
this is a different case entirely, one emailed me the same statement,
far more serious than dalliances with despite my posing specific questions
cocktail waitresses.
It isn’t even Nike’s continued
sponsorship of the Penn State
(Who makes these decisions? What
sort of allegations would it take for
Nike to immediately cut ties with an
11
football team that grates. It is Nike’s athlete, coach, or school?)
refusal to address the name of a When I forwarded our
building on its Oregon corporate correspondence to Nike CEO Mark
campus that now seems so Parker, he sent it back to Dobson,
oxymoronic it’d be more at home who responded with the same
in an Onion.com satire: the Joe canned statement:
Paterno Child Development Center. “Our relationship with Penn State
The Oregonian was the first to report remains unchanged. We are deeply
487
disturbed by the claims brought forth how it works, and Nike knows that;
in the indictments. We will continue they’ll stick with the Joe Paterno name
to monitor the situation closely. We and Penn State until they believe
have no current plans to change the they are liabilities in the movement of
name of our child care center.” shoes and shirts – the same shoes and
Prevent Child Abuse America’s shirts Jerry Sandusky gave as gifts
CEO James Hmurovich said he was to his child rape victims, according
disturbed that Nike has thus far to page 15 of the Grand Jury
decided to maintain the status quo. presentment. At that point, Paterno
“What allegedly happened at Penn may well be dumped, with much talk
State should outrage our nation, and of disappointment and a betrayal of
to find that a national brand will not the ideals of college sports. Donations
distance itself from Penn State and to child abuse charities could follow.
Joe Paterno in this situation is equally But Nike is a company operating
disturbing,” he told Forbes. “It begs a foundation entirely devoted to
the question as to what kind of culture supporting little girls. It’s a company
exists at Nike to place business issues with a smartly designed Code of Ethics
over the well being of children?” available online. On the second page,
I emailed or called every member in stark white letters, is one phrase: Do
of Nike’s board – high-profile The Right Thing. The right thing in this
appointees like Apple CEO Tim Cook situation is to recognize the hypocrisy
and Eli Lilly CEO John Lechleiter of claiming to support children, but
– to see if they agree with the caring for them in a center named for
company’s position. I have received a man who did not go to the police
no responses as yet. I’ll be sure to when he heard his colleague had been
update this post if and when I do. seen raping a little boy in a shower.
I’m not naive about the workings
of capitalism and understand that Source: Article author: Clare O’Connor;
global corporations like Nike don’t http://www.forbes.com/sites/
have any real moral obligation. Look clareoconnor/2011/11/14/nike-wont-drop-
penn-states-paterno-so-we-should-drop-
at McDonald’s: they shill fatty foods to
nike/. Rightsholder: Forbes.“Reprinted by
young kids but are still perfectly able
permission of Forbes Media LLC © 2014”.
to sponsor the Olympics. That’s just
Sponsorship implementation and evaluation

Once the sponsorship decisions are finalized, plans are put into action and then evaluated
to determine their effectiveness. Do sponsorships really work? The findings to this
million-dollar question are somewhat mixed. In Chapter 13, we discuss the techniques
organizations use to determine whether the sponsorship has met their objectives. For
now, let us look at the results of several studies that were conducted to determine
consumer response to sponsorship. In a poll conducted by Performance Research, more
than half of the respondents indicated they would be “not very likely” or “not at all likely”
to purchase a company’s products because it was an Olympic sponsor.71
Most studies report that sponsorship is having a positive impact on their organizations.
For example, Visa reported that since its affiliation with the Olympic Games its market
share in the United States increased by one-third, but the number of consumers
who considered it the best overall card doubled to 61 percent.72 Delta Air Lines
488
also increased awareness levels from 38 percent to 70 percent due to its Olympic
sponsorship. A recent study by the International Olympic Committee found that 22
percent of respondents would be more likely to buy a product if it were an Olympic
sponsor’s product.73 In another study, roughly 60 percent of consumers indicated
that they “try to buy a company’s product if they support the Olympic Games.74 In
addition, 57 percent of consumers around the world agreed that “they look favorably
towards a company if it is associated with the Olympics.”
However, some researchers found that the majority of consumers say
sponsorship makes no difference to them and their purchase behavior. For
example, Quester and Lardinoit conducted a study and found that Olympic
sponsors could not expect to find higher levels of brand recognition or loyalty.75
Additionally, a study by Pitts and Slattery found that over 60 percent of respondents
said they would not be more likely to purchase a product just because they knew
it was a sponsor’s product.76 One potential reason for these less than encouraging
findings is the amount of sponsorship clutter. For example, Ohio-based Wendy’s,
which had been an OSU sponsor for “more than two decades,” decided to drop
its sponsorship with the school “under pressure from activist investors to reduce
costs and improve its financial performance.”77 The company has also ended its
sponsorships of a local LPGA tournament, and the Columbus Blue Jackets in 2011.
Other reasons that sponsorships are dropped or fail are highlighted in Table 11.9.
Table 11.9 Why sponsorships fail
No Budget for Activation – Be prepared to spend several times your rights fees to leverage the
property.
Not Long-Term – One-year commitments generally don’t work. It takes time to build the
association.
No Measurable Objectives – Must have internal agreement on sponsorship goals.
Too Brand-Centric – Sponsorship should be based on the needs of consumers not brands.
Overlook Ambush and Due Diligence – Know what you are not getting is as important is as what
you are getting.
Too Much Competition for Trade Participation – When products sold through the same
distribution channel sponsor the same property, the impact is diluted.
Failure to Excite the Sales Chain – A sponsorship program will not work unless the concept is sold
throughout the entire distribution channel.
Insufficient Staffing – Additional staffing is needed to meet the time demands of sponsoring an
event.
Buying at the Wrong Level – Higher sponsorship levels equate to more benefits. Make sure you
are reaping all the benefits or buy at a lower level.
No Local Extensions – National brands must create localized execution overlays for a sponsorship
to truly reach their audiences.
No Communication of Added Value – For maximum impact, sponsors must be viewed as bringing
something to the event. The activity should be “provided by” the brand rather than “sponsored by”
it.
11
CAREER SPOTLIGHT
Lesa Ukman and IEG
Lesa Ukman graduated from in 1978. Having worked on the

Colorado College with a double major local paper throughout her college
in philosophy and political science years, she initially struggled to find
489
a full-time job in journalism before picnic for Vietnam veterans – she

accepting a job on the Jerusalem didn’t know who they were! We made
post. “It was about six weeks before I the mayor’s office open to all the
was due to go off to Jerusalem to do neighborhoods that elected her. She
that,” she explains, “and the mayoral loves the neighborhoods but she also
race in Chicago was happening. This had big business and other interests
candidate who I liked needed a press at heart. I was so idealistic; I didn’t
secretary. It was an unpaid job and I realize you compromise in politics.
volunteered.” After about eight months I went
With a little help from Ukman, through the US$3 million, which was
Jane Byrne became the first female a lot of money back then. So I started
mayor of Chicago in April 1979. She calling corporations to sponsor our
took Ukman with her into city hall. festivals. And they all said yes. I
“It was such an amazing experience thought, ‘oh my God!’ I had no idea
for a political science major to be it was because I was calling from the
in Chicago with the mayor,” she mayor’s office. So after three years
explains. “But within a week her of doing this I thought this needs
speeches changed from the campaign to happen everywhere – cities need
and her politics changed pretty much to understand this. I thought our
entirely. So I went to resign and the audience with IEG would be cities.
chief of staff said take over special But it wasn’t cities, it was festivals
events. I didn’t know what that was. and sports events and marathons.
But it turned out it’s the slush fund But then it wasn’t until 1984 and the
from hotel/motel tax revenue that LA Olympics that we really started to
had been used really for whatever the make money.”
mayor wanted to do personally. So
I decided to do something she had Source: http://www.sportspromedia.com/
promised during the campaign. So I notes_and_insights/lesa_ukman_the_
started doing neighborhood festivals; sponsorship_pathfinder/0/. Credit: www.
sportspromedia.com.
jazz festivals; I had the first ever US
Summary on sponsorship, an organization must

understand how to develop the most
The element of the promotional mix effective sponsorship program.
that is linked with sports marketing to
The systematic process for designing
the highest degree is sponsorship. A
a sponsorship program consists of four
sponsorship is an investment in a sports
sequential steps, which include setting
entity (athlete, league, team, or event)
sponsorship objectives, determining
to support overall organizational goals,
the sponsorship budget, acquiring a
marketing objectives, and/or promotional
sponsorship, and implementing and
objectives. Sports sponsorships are
evaluating the sponsorship. Because
growing in popularity as a promotional
sponsorship is one of the promotional
tool for sports and nonsports products
mix elements, it is important to
(and organizations). For example, it is
remember the relationship it has with
projected that $55.3 billion will be spent
the broader promotional strategy. As
globally on sports sponsorships in 2014.78
suggested in Chapters 9 and 10, all the
Because so much emphasis is placed
elements of the promotional mix must
490
be integrated to achieve maximum event organizers to protect the heavy
effectiveness. financial outlay of official sponsors.
The sponsorship process begins by The third step of the sponsorship
setting objectives. These objectives, process is to choose the sponsorship
not unlike advertising objectives, can be opportunity, or acquire the sponsorship.
categorized as either direct or indirect. This means making decisions about
Direct sponsorship objectives focus on the scope of the sponsorship, choosing
stimulating consumer demand for the the general athletic platform, and then
sponsoring organization and its products. choosing the specific athletic platform.
The sponsoring company benefits by The scope of the sponsorship refers to
attaching their product to the sports the geographic reach of the sports entity,
entity. The sports entity also benefits as well as the interest in the entity.
by increased exposure given by the Shani and Sandler describe the scope
sponsor. As such, both parties in the of athletic events using a tool called
sponsorship agreement benefit through the Sports Event Pyramid. The Sports
the association. Indirect objectives may Event Pyramid is a hierarchy of events
also be set for the sponsorship program. based on geographic scope and level
These objectives include generating of interest among spectators. The five-
awareness, meeting and beating the tiered hierarchy ranges from international
competition, reaching new target events, such as the Olympic Games,
markets (e.g., disabled) or specialized to local events, such as a Little League
target markets (e.g., mature market), tournament in your community. Once
building relationships with customers, the scope of the sponsorship has been
and enhancing the company’s image. chosen, the athletic platform must be
After objectives have been formulated, determined. The athletic platform for a
the sponsorship budget is considered. sponsorship is generally a team, sport,
The techniques for setting sponsorship event, or athlete. In addition, the athletic
budgets are also in accord with the platform could be further categorized
promotional budgeting methods on the basis of level of competition (i.e.,
discussed in the previous chapter. professional, collegiate, high school,
Generally, sponsorship of sporting or recreational). Decisions regarding
events is not an inexpensive proposition the choice of athletic platform should
– especially given the threat of ambush be linked to the objectives set in the
marketing. Ambush marketing is the previous stages of sponsorship planning.
planned effort by an organization to After choosing the general athletic
associate themselves indirectly with platform, the potential sponsor must
an event to gain at least some of select the specific platform. For example,
the recognition and benefits that are if a collegiate sporting event is to be
associated with being an official sponsor. the general platform, then the specific
In past years, the Olympics have been
a playground for ambush marketing
athletic platform may be the Rose Bowl,
the Championship Game of the Final 11
techniques. For example, Nike, not an Four, or a regular season baseball game
official sponsor of the 1996 Summer against an in-state rival.
Olympics, constructed a building The final phase of the sponsorship
overlooking the Olympic Park to associate process is to implement and evaluate
themselves with the festivities of the the sponsorship plans. Organizing
Olympic Games. Today, more stringent a sponsorship and integrating a
policing and regulation of ambush sponsorship program with the other
marketing is occurring by the sporting promotional mix elements requires
491
careful coordination. Once the The implementation and evaluation of
sponsorship plan is put into action, the the strategic sports marketing process
most critical question for decision makers and, more specifically, sponsorships are
is, “Did the program deliver or have considered in Chapter 13.
we met our sponsorship objectives?”
Key terms X indirect sponsorship X relationship marketing

objectives X sales increases
X ambush marketing X influencers X sponsorship
X athletic platform X international events X sponsorship budgeting
X awareness X local events methods
X competition X national event X sponsorship evaluation
X decision maker X match-up hypothesis X sponsorship objectives
X direct sponsorship X purchasers X sponsorship program
objectives X reaching new target X sport sponsorship
X gatekeepers markets acquisition
X global events X regional events X sports event pyramid
X image building
Review questions use for a sponsorship, what factors

should be considered?
1. Define sponsorship and discuss how 9. What questions or issues might an
sponsorship is used as a promotional organization raise when choosing
mix tool by sports marketers. Provide among sponsorship opportunities?
evidence to support the growth of 10. Describe the different ways that
sports sponsorships worldwide. sports sponsorships might be
2. Outline the steps for designing a evaluated. Which evaluation tool is
sports sponsorship program. the most effective?
3. Discuss, in detail, the major
objectives of sports sponsorship Exercises
from the perspective of the
sponsoring organization. 1. Design a proposed sponsorship
4. What is ambush marketing, and plan for a local youth athletic
why is it such a threat to legitimate association.
sponsors? What defense would 2. Provide five examples of extremely
you take against ambush marketing good or effective match-ups
tactics as a sports marketer? between sporting events and their
5. In your opinion, why are sports sponsors. In addition, suggest
sponsorships so successful in five examples of extremely poor
reaching a specific target market? or ineffective match-ups between
6. How are sponsorship budgets sporting events and their sponsors.
established within an organization? 3. Find at least one example of
7. Describe the various levels of the sponsorship for each of the following
sponsorship pyramid. What is the athletic platforms: individual athlete,
Sports Event Pyramid used for, and team, and league.
what are some potential problems 4. Contact an organization that
with the pyramid? sponsors any sport or sporting
8. Define an athletic platform. In event and discuss how sponsorship
determining what athletic platform to decisions are made and by whom.
492
Also, ask about how the organization 10 Mark Lyberger, “Responses Submitted to
evaluates sponsorship. Editor John Kiernan, 2014 FIFA World Cup
By The Numbers,” Wallethub.com (June 9,
5. Design a survey to determine the 2014). Available from: http://wallethub.com/
influence of NASCAR sponsorships blog/world-cup-by-the-numbers/4433/#ask-
on consumers’ purchase behaviors. the-experts, accessed June 29, 2014.
Ask 10 consumers to complete the 11 IEG Sponsorship Report, “Sponsorship
Spending Growth Slows in North America
survey and summarize the findings. As Marketers Eye Newer Media and
Suggest how NASCAR might use Marketing Options” (January, 7, 2014).
these findings. Available from: http://www.sponsorship.com/
iegsr/2014/01/07/Sponsorship-Spending-
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Internet exercises accessed May 9, 2014.
12 Nick Forrester, “High School Sports Look for
1. Search the Internet and find Outside Revenue,” SportsPro (August 2010).
an example of a sponsorship 13 John Lombardo, “Team Deals Put Adidas
opportunity at each level of the Areas in Some NBA Arena Stores,”
Street & Smith’s Sport Business Journal
Sports Event Pyramid. (October 16–22, 2006). Available from:
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marketing companies on the Internet Journal/Issues/2006/10/20061016/This-
that specialize in the marketing of Weeks-News/Team-Deals-Put-Adidas-
Areas-In-Some-NBA-Arena-Stores.
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clients? Until 2030,” FIFA.com (January 21, 2013),
15 http://www.kcchiefs.com/news/article-2/
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114b-482f-ae98-d0624ab7a684.
1 “Kansas Athletics renews partnership
16 Ibid.
with Adidas,” Kansas University
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Athletics (June 6, 2013). Available
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2012-13%20Weston%20FC:AYSO%20
2 IEG Sponsorship Report, “Sponsorship
644%20Sponsorship%20Package.pdf.
Spending Growth Slows in North America
18 Scott Hamilton, “PGA Tour Adds Tiffany as
As Marketers Eye Newer Media and
Sponsor,” Street & Smith’s Sport Business
Marketing Options” (January, 7, 2014).
Daily (December 4, 2006). Available from:
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Issues/2006/12/20061204/This-Weeks-News/
Growth-Slows-In-North-America.aspx,
PGA-Tour-Adds-Tiffany-As-Sponsor.aspx,
3 Ibid.
19 http://rio2016.com/en/sponsors/ge, accessed
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May 9, 2014.
Real Financial Deal In NFL, MLB, NBA,
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21 David Stotlar, “Sponsorship Evaluation:
6 Ibid.
Moving from Theory to Practice,” Sport
7 “Cricket Sponsorship Passes $400 Million,”
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22 See, for example, Nigel Pope, “Overview of
2014.
Current Sponsorship Thought,” www.cad.
8 Ibid.
gu.edu.au/cjsm/pope21.htm; R. Abratt, B.
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493
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go for the Gold,” Credit Card Management, 58 “UNC, Nike Sign New 10-Year Contract,”
vol. 9, no. 2 (1996), 22–26. James H. Martin, UNC General Alumni Association (July 2009).
“Using a Perceptual Map of the Consumer’s 59 Katie Thomas, “WNBA Signs Jamba Juice as
Sport Schema to Help Make Sponsorship New Sponsor,” Nytimes.com (August 2010).
Decisions,” Sport Marketing Quarterly, vol. 60 Barry Janoff, “WNBA Scores Points in
3, no. 3 (1994), 27–31. Douglas W Nelms, Diversity Marketing,” Mediapost.com (May
“Going for the Gold,” Air Transport World, 27, 2014). Available from: http://www.
vol. 33, no. 11 (1996), 71–74. Nigel K. Pope, mediapost.com/publications/article/226619/
“Sport Sponsorship in the Corporate Plan,” wnba-scores-points-in-diversity-marketing.
Lecture Notes Week 8 (October 5, 1997). html, accessed July 1, 2014.
Available from: http://www.cad.gu.edu.au/ 61 Sammy Said, “The 10 Biggest Event and
market/cyber-journal_of_sport_marketing/ Sport Sponsorships,” the richest.com
cjsm.htm. Nigel K. Pope and Kevin E. Voges, (August 6, 2013). Available from: http://www.
“An Exploration of Sponsorship Awareness therichest.com/sports/the-10-biggest-event-
by Product Category and Message Location and-sport-sponsorships/, accessed July 1,
in Televised Sporting Events,“ Cyber- 2104.
Journal of Sport Marketing, vol. 1, no. 1 62 Bryan McWilliam, “Anheuser-Busch
(1997),16–27. David K. Stotlar and David a Sports Sponsorship Heavyweight,”
A. Johnson, “Assessing the Impact and SportsNetworker.com (May 24, 2013).
Effectiveness of Stadium Advertising on Available from: http://www.sportsnetworker.
Sport Spectators at Division I Institutions,” com/2013/05/24/anheuser-busch-a-sports-
Journal of Sport Management, vol. 3, no. 2 sponsorship-heavyweight/, accessed May 9,
(1989), 90–102. Douglas M. Turco, “Event 2014
Sponsorship: Effects on Consumer Brand 63 Ibid.
Loyalty and Consumption,” Sport Marketing 64 Doug Ferguson, “Web.com Takes over as
Quarterly, vol. 3, no. 3 (1994), 35–37. Title Sponsor of Nationwide Tour, Starting
49 Roger Williams, “Making the Decision and Right Now,” PGA.com (2014). Available
Paying for It,” Mark McCormack’s Guide from: http://www.pga.com/news/nationwide-
to Sports Marketing, International Sports tour/webcom-takes-over-title-sponsor-
Marketing Group (1996), 166–168. nationwide-tour-starting-right-now, accessed
50 Brant Wansley, “Best Practices Will Help July 1, 2014.
Sponsorships Succeed.” Marketing News 65 Ibid.
(September 1, 1997), 8. 66 “Nike 6.0 Increases Winter Dew Tour
51 “11th Annual IEG/Performance Research: Sponsorship with Namesake Breckenridge
Sponsorship Decision-Makers Survey,” IEG Stop,” www.theskichannel.com (September
(March 2011). 2010).
52 “Coca-Cola Launches ‘Open The Games. 67 Rick Burton, “A Case Study on Sports
Open Happiness’ Campaign for the Property Servicing Excellence: National
Vancouver 2010 Olympic Winter Games,” Football League Properties,” Sport
Official Press Release – The Coca-Cola Marketing Quarterly, vol. 5, no. 3 (1996),
Company (January 2010). 23–30.
53 David Shani and Dennis Sandler, “Climbing 68 Nancy Boomer, “Winnipeg’s Next Flood,”
the Sports Event Pyramid,” Marketing News www.marketingmag.ca/Content/1.98/special.
(August 26, 1996), 6. html.
54
55
Christine Brooks, Sports Marketing
(Benjamin Cummings, 1994).
Jeremy Mullman, “Is Nike Next? ATA Drops
69 Jeff Jenson, “Nike Creates New Division
to Stage Global Events,” Advertising Age
(September 30, 1996), 2.
11
Scandal-Prone Vick; Football Pitchman Faces 70 Brant Wansley, “Best Practices Will Help
Indictment for His Alleged Role in Dog- Sponsorships Succeed.” Marketing News
Fighting Ring,” Advertising Age (June 4, (September 1, 1997), 8.
2007), p. 6. 71 Carol Emert, “Olympic Seal of Approval,”
56 Kantar Media Press Room, “March Madness The San Francisco Chronicle (September 2,
Generated $1.15 Billion in Ad Revenue in 2000), D1.
2013,” Kantar Media (March 10, 2014). 72 Ibid.
Available from: http://kantarmedia.us/press/ 73 Pascale Quester and Thierry Lardinoit,
march-madness-generated-1-billion-ad- “Sponsors’ Impact on Attitude and Purchase
revenue-2013, accessed June 29, 2014. Intentions: Longitudinal Study of the 2000
495
Olympic Games” (December 2001). Available Sponsorship Awareness Levels,” Sport
from: http://130.195.95.71:8081/WWW/ Marketing Quarterly, vol. 13, no. 1 (2004),
ANZMAC2001/home.htm, accessed May 7, 43–54.
2014. 77 “McDonald’s to Sponsor Ohio State
74 Stuart Elliott, “After $5 Billion Is Bet, Athletics” (March 13, 2007). Available from:
Marketers Are Racing to Be Noticed Amid http://www.bizjournals.com/columbus/
the Clutter of the Summer Games,” The stories/2007/03/12/daily9.html?from_
New York Times (July 16, 1996), D6. msnbc=1, accessed May 8, 2014.
75 Pascale Quester and Thierry Lardinoit, 78 IEG Sponsorship Report, “Sponsorship
“Sponsors’ Impact on Attitude and Purchase Spending Growth Slows in North America
Intentions: Longitudinal Study of the 2000 As Marketers Eye Newer Media and
Olympic Games” (December 2001). Available Marketing Options” (January, 7, 2014).
from: http://130.195.95.71:8081/WWW/ Available from: http://www.sponsorship.com/
ANZMAC2001/home.htm, accessed May 7, iegsr/2014/01/07/Sponsorship-Spending-
2014. Growth-Slows-In-North-America.aspx,
76 Brenda Pitts and Jennifer Slattery, “An accessed May 9, 2014.
Examination of the Effects of Time on
496
CHAPTER 12
Pricing concepts
and strategies
• Explain the relationship among price, value, and benefits.
• Understand the relationship between price and the other marketing
mix elements.
• Describe how costs and organizational objectives affect pricing
decisions.
• Explain how the competitive environment influences pricing
decisions.
• Describe how and when price adjustments should be made in the
final stage of pricing.
12 Pricing concepts and strategies
If you were an executive of a sports franchise, what price would you charge your
fans? What factors would you consider when making your pricing decision in a
continually changing marketing environment? How would you estimate the demand
for tickets? Will the financial benefit of increasing prices offset the negative fan
relations?
In this chapter, we explore the subjective nature of pricing sports products. More
specifically, we consider how factors such as consumer demand, organizational
objectives, competition, and technology impact pricing. Also, we examine how pricing
interacts with the other elements of the marketing mix and how effective pricing
adjustments are made. Let us begin by developing a basic understanding of pricing.
What is price?
Price is a statement of value for a sports product. For example, the money we pay for
being entertained by the Boston Celtics is price. The money that we pay for shorts
featuring the Notre Dame logo is price. The money we pay for a personal seat license,
which gives us the right to purchase a season ticket, is price. The money we pay to
experience the Richard Petty Driving School is price. In all these examples, the price
paid is a function of the value placed on the sports product by consumers.
Photo 12.1 To some, golf lessons may be priceless

The essence of pricing is the exchange process discussed in Chapter 1. Price is

simply a way to quantify the value of the objects being exchanged. Typically, money
is exchanged for the sports product. We pay $26 in exchange for admission to the
sporting event. However, the object of value that is being exchanged does not always
have to be money. For instance, Play It Again Sports, a new and used sporting goods
retailer, allows consumers to trade their previously owned sports equipment for the
498
store’s used or new equipment. This form of pricing is more commonly referred to as
barter or trade. It is common for kids who exchange baseball cards to use this form of
trade. Many golf courses hire retirees and pay them very low wages in exchange for
free rounds of golf.
Regardless of how pricing is defined, value is the central tenet of pricing. The value
placed on a ticket to a sporting event is based on the relationship of the perceived
benefits to the price paid. Stated simply,
Perceived benefits of sports product

Values =
Price of sports product
The perceived benefits of the sports product, or what the product does for the user,
are based on its tangible and intangible features. The tangible benefits are important in
determining price because these are the features of the product that a consumer can
actually see, touch, or feel. For example, the comfort of the seats, the quality of the
concessions, and the appearance of the stadium are all tangible aspects of a sporting
event. The intangible benefits of going to a sporting event may include spending time
with friends and family, feelings of association with the team when they win (e.g.,
BIRGing), or “being seen” at the game.1
The perceived benefit of attending a St. Louis Cardinals game is a subjective
experience based on each individual’s perception of the event, the sport, and the
team. One consumer may pay a huge amount to see the game because of the
perceived benefits of the product (mostly intangible), whereas another consumer may
attend the game only if given a ticket. In either case, the perceived benefits either
meet or exceed the price, resulting in “perceived value.”
For the high-involvement sports fan the Cardinals ticket represents a chance to be
able to tell his grandchildren that he saw the 2001 Rookie of the Year and 2005, 2008,
and 2009 MVP, Albert Pujols. To the no- or low-involvement individual, the same
game may appear to be a complete waste of time. Again, it is important to recognize
that the value placed on attending the sporting event is unique to each individual,
even though they are consuming the same product (in this case, the Cardinals game).
As researcher Valerie Zeithaml points out, “What constitutes value – even in a single
product category – appears to be highly personal and idiosyncratic.”2
Using a different example, a Ted Williams rookie baseball card in mint condition may
be priced at $1500. A collector or baseball enthusiast may see this as a value because
the perceived benefits outweigh the price. However, the noncollector (or the mom or
dad who threw our cards away) may perceive the card as having barely more value
than the cost of the paper on which it is printed.
In yet another example, professional sports franchises are assigned monetary
values based on tangibles such as gate receipts, media revenues, venue revenues
(e.g., concessions, stadium advertising, and naming), players’ costs, and operating
expenses. Further consideration in the value of a professional sports franchise is brand
equity, a highly intangible characteristic. Table 12.1 provides a list of the franchises
having the highest values in each sport and the respective percentage change from
the previous year.
12
The combination of revenue growth and investments in new, revenue-rich ballparks
(for example the New York Yankees and the Dallas Cowboys moved into their new
homes in 2010), fueled a 2 percent increase in MLB average team values from 2009,
to an average of $491 million. The average NFL team is worth $1.02 billion. The
499
Table 12.1 Top professional sports franchise values in 2014
Major League Baseball Current in millions 1-Year Change

Yankees $2500 +9%
LA Dodgers $2000 +24%
Red Sox $1500 +14%
National Football League Current in millions 1-Year Change
Cowboys $2300 +10%
Patriots $1800 +10%
Redskins $1700 +6%
National Basketball Association Current in millions 1-Year Change
Knicks $1400 +27%
Lakers $1350 +35%
Bulls $1000 +25%
National Hockey League Current in millions 2-Year Change
Maple Leafs $1150 +15%
Rangers $850 +13%
Canadians $775 +35%
average hockey team increased their worth to approximately $228 million, a 2 percent
increase from 2009, while NBA teams are worth $367 million.3
Two important points emerge from the previous examples of value. First, value varies
greatly from consumer to consumer because the perceived benefits of any sports
product will depend on personal experience. Second, pricing is based on perceived
value and perceived benefits. As such, consumers’ subjective perceptions of the
sports product’s benefits and image are fundamental to setting the right price. In this
case, image really is everything.
DEAL TO END LOCKOUT REACHED

The NFL Players Association and called a vote Thursday in Atlanta
the league’s owners have reached without knowing it would pass in the
agreement on the remaining points way it did – 31–0 with one abstention
needed in their 10-year labor deal, – the NFLPA would also not be going
sources from both sides said. forward without that assurance.
Despite the fact the new agreement NFLPA executive director
will require a majority vote from DeMaurice Smith knows his executive
the players, that part of the deal committee, his players reps and the
between the two sides is considered rest of his constituents well enough
a formality, according to sources. to know how they will vote.
The NFLPA is making plans for Plus, no collective bargaining
a major press conference Monday. agreement has ever been turned
But first the player reps’ executive down by the players when approved
committee was scheduled to fly to by leadership.
Washington, D.C., on Sunday so they The executive committee members
can vote Monday. and the individual team player reps
Just as the NFL would not have are perhaps the most informed and
500
involved group that any team sport accepts the new CBA, players
has seen in recent years. from certain teams will be granted
Many of these players were a part permission to report to training
of the CBA process in 2006, providing camps Wednesday and players from
them the knowledge and experience other teams will be asked to report to
they used in these talks. training camps Friday, a source said.
Once the players ratify the deal, The hope from both sides is there are
training camps and free agency are enough votes to recertify the union
likely to begin the same day, in what by as early as Friday.
would be the equivalent of merging For that to happen, a 50-percent-
Thanksgiving and Christmas into one plus-one-vote majority of the players
holiday. have to accept the NFLPA as its union
By rule, training camps can’t start and accept the terms of a CBA.
until the new league year does. Much of the confidence in
Major breakthroughs in Saturday Monday’s vote is due in part
discussions set up the timetable for to the continued working
the resolution to the 130-day lockout. relationship between Smith and
Owners tentatively agreed to NFL commissioner Roger Goodell,
a players-recommended plan for a source said. The pair have been
the NFLPA to bring players into working with each other directly as
team facilities starting as early as the sides near an agreement and
Wednesday to physically vote on continued to do so through the
whether to recertify the current trade weekend to ensure the remaining
association as a union, a source told issues were resolved, according to a
ESPN.com’s John Clayton. source.
The players’ executive committee Smith, a source said, has pledged
will meet in Washington on to Goodell that he will also expedite
Monday, a move that, according to the remaining issues before the first
a high-ranking NFLPA official, was preseason game is played, creating
not communicated to the NFLPA optimism that those games will not
executive committee until Saturday be canceled. In that vein, Smith has
morning via phone. personally taken on much of the work
Following that, a recommendation on the actual CBA-related documents,
has to be made by the 32 player with his legal team, including NFLPA
representatives, likely via conference lawyer Jeffrey Kessler, assisting.
call. As of late Saturday night, no According to the source, Smith
time had been set for that vote, but took on this responsibility as a show
it is expected to occur Monday after of good faith, because the NFL’s
the executive committee votes to management council executive
recommend approval, according to committee had been skeptical due to
the high-ranking official. its prior experience with Kessler as
The executive committee is also legal counsel.
expected to vote to recommend
recertifying itself as a union,
according to the source. A
The NFL announced Thursday
it would open its doors to players
under contract two days after the
12
recommendation also has to be made NFLPA executive committee accepts
by the 32 player representatives on the CBA and settlement terms from
that count. existing lawsuits. The league also
When the executive committee said that free agency would start the
501
day after the union is recertified. benefits packages. Under terms of the
Therefore, under this tentative owners’ agreement from Thursday,
schedule for recertification, the pre- players would have reverted back to
league year buffer period could start the 2010 benefits plan if they didn’t
Wednesday. make adjustments within a certain
Under that scenario, teams could time period.
potentially open contract talks with As talks progressed Saturday, the
their own unrestricted free agents, sides removed one roadblock while
restricted free agents and draft moving the dial on another.
choices Wednesday. However, no A league source said San Diego
contracts could be signed until Chargers receiver Vincent Jackson,
Saturday at the earliest. In that one of the 10 named plaintiffs in the
scenario, teams would also be able players’ antitrust lawsuit against
to renegotiate contracts with players the NFL, is now willing to release
from their own team starting as early his claim without compensation,
as Wednesday. meaning no money or lifting of the
Upon recertification of the union, franchise tag. Jackson was the last of
free agency could start Saturday at 2 the 10 named plaintiffs unwilling to
p.m. ET and rosters would be allowed drop his claim.
to expand to 90 players. The sides also got closer to settling
It is still uncertain when teams the $4 billion network television
would be able to sign undrafted free insurance case, according to a
agents. source. That case, which is in the
It was vital for the NFLPA to have court of U.S. District Judge David
enough time for recertification and Doty in Minneapolis, involved
have a period of time for the renewed damages suffered by the players after
union to work out final details of its Doty ruled against the owners.
benefit plans.
Only a union can negotiate benefits Source: Article author: Adam Schefter.
for its members and the NFLPA Rightsholder: ESPN.com; http://espn.
feared a Tuesday deadline to recertify go.com/nfl/story/_/id/6797238/2011-nfl-
lockout-owners-players-come-deal-all-
would not leave enough time to
points-sources-say.
properly negotiate changes in the
All too often, price is equated incorrectly with the objective costs of producing
the sports product. Because many sports products are intangible services, setting
prices based on the costs of producing the product alone becomes problematic.
For instance, how do you quantify the cost of spending time with your friends at a
sporting event or having the television rights to broadcast NFL games? How do sports
organizations provide a quality experience for fans so they feel they are getting their
money’s worth? Many event promoters believe the solution is to add more value via
interactive experiences for the fan. For example:
The Tampa Bay Rays’ Tropicana Field is filled with fan interactive zones for fans of
all ages to enjoy during the baseball season. Left Field Street consists of a 2k Sports
Lounge to play Major League Baseball 2K10, Baseball Trivia Challenge game show,
Custom Jersey Shop, Louisville Slugger Wood Shop, Mountain Dew Extreme Zone
with batting and Topps Make Your Own Baseball Card. Right Field Street is geared
toward the younger fans with the Rays Baseball Carnival, Raymond’s Art Studio and
502
Raymond’s Room. Center Field houses the Rays Touch Tank, where fans can touch
live cow nose rays for free during home games. In a similar vein, the NCAA created
Hoop City for the men’s and the women’s Final Four. The interactive experience
gives basketball fans a chance to participate in a number of hoop skills contests, get
autographs, and share the excitement of the national championship.4
The stadium experience has also been jazzed up to enhance value. Many professional
and collegiate teams are now choosing fans right from the audience to participate in
promotions on court or on field during breaks in play. This allows fans to set foot on
the playing surface, and provide audience entertainment. Small, in-seat video screens
are also becoming popular at stadiums and arenas that want to offer the ultimate
balance between watching the action live and on TV. Each seat is equipped with a
video monitor that can offer game replays, other cable TV networks, stock market
updates, and online service. Furthermore, the use of social media provides teams the
opportunities to elevate and enhance the level of interaction with their fans. Utilization
of portable smartphones enables teams to provide fans with an interactive experience,
thereby enhancing value.
The ultimate question is whether these “extras” create value and add benefits for the
fans. Sport Marketing Research Institute (SMRI) research has found that nine out of
10 fans attend sporting events out of a love for the game or team. So are these extras
creating real fans or trying to buy their way into fans’ hearts? Do stadiums and arenas
pay more for the interactive fan elements and end up receiving much less in the end
– a fan that attends for the extras, not for the love of sports, the competitive element,
the rivalry, the action; in other words – the game?
The determinants of pricing

Now that we have discussed the core concept of price, let us look at some of the
factors that affect the pricing decisions of sporting marketers. Pricing decisions can be
influenced by internal and external factors, in much the same way that the contingency
framework for sports marketing contains both internal and external considerations.
Internal factors, which are controlled by the organization, include the other marketing
mix elements, costs, and organizational objectives. External (or environmental)
factors that influence pricing are beyond the control of the organization. These
include consumer demand, competition, legal issues, the economy, and technology.
Figure 12.1 illustrates the influence of the internal and external forces on pricing
decisions. Let us look at each of these forces in greater detail.
Internal Factors External Factors

Product Consumer demand
Promotion Competition
Distribution Pricing Legal
Cost Decisions Economy
Organizational objectives Technology
12
Figure 12.1 Internal and external influences on pricing
Source: Gary Armstrong and Philip Kotler, Marketing: An Introduction, 7th ed. 2005.
Credit: “Kotler, Philip R; Armstrong, Gary, Marketing: An Introduction, 4th Edition, ©
1997, pp. 471, 312.
503

Pete Rozelle
Pete Rozelle led the National Football series to ESPN in 1986. The current
League for nearly three decades, television contract, for which Rozelle
helping it survive bidding wars with set the groundwork, gets $1.93 billion
three rival leagues and three players’ from Fox alone, more than 2,000
strikes, before retiring unexpectedly times what Rozelle got in his first
in 1989. contract with CBS in 1962.
Rozelle’s pioneering sports Along with these accomplishments,
marketing accomplishments include Rozelle’s biggest contribution may
Monday Night Football and the have been introducing revenue
Super Bowl, which blossomed into sharing in pro football 30 years before
America’s most-watched sporting it created havoc in other sports. Doing
event. The “Father of the Super Bowl” so allowed teams in minor markets
put the NFL on television just about like Green Bay to equally share TV
everywhere and transformed the way revenues – the biggest part of the
Americans spend Sunday afternoons. NFL pie – with teams in New York,
Rozelle arrived at about the same Chicago, and Los Angeles.
time as the rival American Football Rozelle is also credited, along
League, a development that created with Roone Arledge, for creating
competition for players and television Monday Night Football, now the
ratings. In 1962, Rozelle negotiated nation’s longest-running sports
a $9.3 million television contract series. Because the NFL had an
with CBS, a deal that earned him agreement not to televise on Friday
reelection as commissioner and a night or Saturday in competition with
$10,000 bonus that pushed his salary high school and college football, he
to $60,000. By 1966, the two warring decided Monday night would be the
leagues, weary of the battle for player obvious time to showcase a single
talent, merged, creating a single game nationally. Overall, Rozelle’s
professional football league, with impact was as much social as it was
Rozelle as commissioner. The merger financial. He changed the nation’s
also produced a world championship leisure habits and lifestyle by making
game, which would eventually come Sunday afternoons and Monday
to be known as the Super Bowl. nights sacred during football seasons.
It was Rozelle who brought sports
into 10 figures when he negotiated Source: “Innovator Rozelle Dies at
a landmark five-year, $2.1 billion 70,” Cincinnati Enquirer (December 7,
contract with television’s three major 1996), C1, C5. Used with permission of
Bloomberg L.P. Copyright© 2014. All
networks in 1982. Then he expanded
rights reserved.
to cable, selling a Sunday night
Internal factors
Other marketing mix variables
Price is the element of the marketing mix that has been called a “pressure point” for
consumers. That is, price can make or break a consumer’s decision to purchase a
sports product. Although price is critical, the other marketing mix variables must be
504
carefully considered when determining the price of a sports product. Pricing must be
consistent with product, distribution, and promotional planning. For marketing goals to
be reached, all the marketing mix elements must work in concert with one another.
How is price connected to other marketing mix variables? Let us begin by examining
the relationship between price and promotional planning. Each of the promotional
mix elements discussed in Chapter 9 (advertising, public relations, personal selling,
sales promotions, and sponsorships) is related to price. Broadly, the promotion
function communicates the price of the sports product to consumers. For example,
advertisements often inform consumers about the price of a sports product. In
comparative advertisements, the price of a sports product versus its competition may
be the central focus of the message.
Many forms of sales promotion are directly related to price. For example, price
reductions are price discounts designed to encourage immediate purchase of
the sports product. Coupons and rebates are simply another way for consumers
to get money back from the original purchase price. Moreover, premiums are
sometimes offered for reduced prices (or for free) to build long-term relationships
with consumers. For instance, kids can join the Pittsburg Pirates Bucaroos Kids
Club for just $15 for the entire season. For this, kids receive the following benefits:
ticket vouchers, Web-based newsletters and e-mails about other Pirates/Bucaroos
special events, Pirates apparel, invitation to one autograph session, Front-of-the-Line
privileges for Kids-Run-the-Bases, and an opportunity to be chosen to participate in
select Kids Take the Field events.
The relationship between pricing and promotion also extends to personal selling.
Depending on the sports product, sales personnel sometimes negotiate prices.
Although not the case for most sports products, some prices are negotiable. The
sale of boats, golf clubs, squash lessons, scalped tickets, and luxury boxes each
represents an example of a sports product that has the potential for flexible pricing.
The public relations component of the promotional mix is also related to pricing in
several ways. First, publicity and public relations (PR) personnel often stress the value
of their ticket prices to potential consumers. For example, the Phoenix Coyotes public
relations department may provide fans information about how the Coyotes have the
lowest cost in the NHL for a family of four to attend a game. The Kansas City Royals
may emphasize that they have the lowest average ticket prices in baseball, compared
with other major league sports and teams.
Second, public relations are important in the launch of a new sports product. For
example, the Dayton Dragons initiated a PR campaign to engage the public prior to
naming the team and the onset of their first season. This PR strategy has helped the
Dragons achieve record-setting attendance standards that consist of being the first
and only team in minor league baseball history to sell out a season before it began.
They have sold out every season since their inception in 2000. Media releases that
alert the public to the features of the new product, as well as the pricing, are an
important aspect of creating awareness. In addition, sources not only inside but also
outside of the sports organization play roles in providing information about changes to
the product. For instance, when a professional sports team raises its ticket price, you
12
can bet that the story will generate “negative public relations.”
A final link between price and promotion is the cost of the promotion itself. The price
of running a promotion may influence potential consumers. The price of a Super Bowl
advertisement (upward of a record $4 million for a 30-second spot in 2014), upon
505
becoming public knowledge, may shape consumers’ expectations and perceptions
of not only the advertisement, but also the product and the company. Consumers’
expectations for advertisements featured during the Super Bowl are generally
higher because of the hype and the advertisement’s high price tag. At the same
time, the high levels of free publicity generated by Super Bowl advertisements, both
prior to and after the event itself, can offset the exorbitant expense and render the
advertisements cost effective.
The distribution element of the marketing mix is also related to pricing. The price of
a sports product is certainly dictated (in part) by the choice of distribution channel(s).
In a traditional channel (manufacturer of the sporting good to wholesaler to retailer to
consumer), the costs of covering the various functions of the channel members are
reflected in the ultimate price charged to consumers. In a more nontraditional channel,
such as purchasing a product over the Internet, prices are generally reduced. For
example, the Callaway FT-iz driver may cost $500 in a golf specialty store but is sold
for hundreds of dollars less via the Internet.
The retailer is also a common member of the distribution channel that shapes pricing
decisions. More specifically, the type of retailer selling the sporting good or facility
where the sporting event takes place will affect price perceptions. For instance,
consumers expect to pay more for golf equipment in a country club pro shop than
they do at a local golf discount outlet. Likewise, consumers who attend a football
game at Dallas’ new AT&T stadium, formerly Cowboy Stadium, which opened in
2010, paid a record average ticket price of $159.95 last season and would expect to
pay higher ticket prices for the state-of-the-art facility than do consumers at an aging
facility such as Arrowhead Stadium in Kansas City (built in 1972). A concern facing
professional sports is that the new sports palaces being built around the country may
drive the common fan out of professional sports markets.
A final element of the marketing mix related to price is the sports product itself. The
price of attending a sporting event is related to expectations of service quality. The
higher the ticket price being purchased, then the higher fan expectations of customer
service. Likewise, the higher the price of the sporting goods, then the higher the
consumer’s expectations of product quality are. In this way, price is used to signal
quality to consumers, especially to those who have little or no previous experience
using the sports product.
Pricing is also used to differentiate product lines within the sports organization. An
organization will offer product lines with different price ranges to attract different
target markets. For example, Converse still offers a canvas basketball shoe at a
low price for traditionalists who prefer canvas over the more popular – and more
expensive – leather style.
The product life cycle also suggests the strength of the price–product relationship. As
illustrated in Chapter 8, pricing strategies vary throughout the stages of the product
life cycle. For example, during the introductory phase, products are typically priced
either low to gain widespread acceptance or high to appeal to a specific target market
and to signal quality. Product prices are slashed during the decline phase of the life
cycle to eliminate inventory and related overhead costs.
The design of sports products is the final factor that demonstrates the close
relationship between product and price. Product design and pricing are
interdependent. Sometimes, product design is altered during the manufacturing
process to achieve a target price. For instance, a number of championship teams
506
have dramatically dropped payroll in the year following winning the championship,
causing fan dissatisfaction and poor performance on the field or court. In this case,
the product design refers to the quality of the team; the manufacturing process is
the team’s performance on the field. Unfortunately, the team and its fans may suffer
from this move to achieve target price. Other times, prices must be adjusted (usually
upward) to achieve the desired product design. New York Yankees late owner George
Steinbrenner historically spent large sums of money to build a winning team (with a
record high payroll of $206 million in 2010), with success as the team has appeared in
the World Series Championships seven times between 1996 and 2010.
Research has been conducted to examine the relationship between team payroll and
team performance in major league baseball from 1985 to 2002. The results indicated
that the relationship has changed over time. Unlike the early years, there is now
a much clearer relationship between payroll and performance. Specifically, in the
latter part of the 1990s and continuing into the twenty-first century, the greater the
team payroll and the more equally this payroll is distributed among team members,
the better the on-field performance of the team. This is a problem of particular
concern because of the growing disparity in team payrolls, which, in turn, affects the
competitive balance of the sport.5
Clearly, price is closely associated with the rest of the marketing mix. Usually, there
are two ways of coordinating the element of price with the rest of the marketing mix
variables: nonprice and price competition. Let us look at these two distinctly different
pricing strategies in greater detail.
Nonprice versus price competition

Nonprice competition is defined as creating a unique sports product through the
packaging, product design, promotion, distribution, or any marketing variable other
than price. This approach permits a firm to charge higher prices than its competitors
because its product has achieved a competitive advantage. In turn, consumers are
often willing to pay more for these products because the perceived benefits derived
from the product are believed to be greater. Nevertheless, an element of risk is
attached to using this nonprice competition approach.
Consider a commodity like a golf ball. Bridgestone may adopt a nonprice competition
strategy for its brand of golf balls (Precept) by featuring the packaging, the product
design, or something other than price. This can be a risky strategy for Bridgestone.
What if consumers fail to recognize the superiority of the Precept golf ball? They may
instead purchase a competitor’s lower-priced golf ball that offers the same benefits.
When adopting the distinctly different price competition strategy, sellers primarily
stimulate consumer demand by offering consumers lower prices. For example, minor
league franchises successfully use price competition to attract dissatisfied fans unable
or unwilling to spend large sums of money to attend major league sporting events.
In response to a price competition strategy, and to offset its own higher ticket costs,
a major league franchise is likely to stress the greater intangible benefits associated
with attending its more prestigious events. These benefits include the higher quality of
competition, the more exciting atmosphere, and the greater athletic abilities of the stars.
12
Costs
Costs are those factors associated with producing, promoting, and distributing the
sports product. Consider the cost of owning a minor league hockey franchise. To
507
produce the competition or event, players are necessary. These players require
salaries and equipment in order to perform. In addition, these players require support
personnel such as coaches, trainers, equipment managers, and so on. Also, these
players need a place to play, which includes the costs of rent, utilities, cleaning, and
maintenance. These represent some of the basic costs for producing a hockey game.
However, they do not tell the entire story.
In addition to these core costs, other costs can include advertising, game promotions,
and the salaries of front-office personnel (secretaries, general managers, and scouts).
Team transportation is another cost. All these costs, or the total cost of owning a
minor league hockey franchise, can be expressed as the sum of the variable and fixed
costs, as shown:
TC = FC + VC
where TC = total cost

FC = fixed cost
VC = variable costs
Fixed costs are the sum of the producer’s expenses that are stable and do not
change with the quantity of the product consumed. Almost all costs associated with
the minor league hockey team in the preceding example would be considered fixed.
For example, rent on the arena, salaries, and transportation are all fixed costs. They
do not vary at all with the amount of the product consumed (or in this case the team’s
attendance). The bulk of the game promotions are determined prior to the season and,
as a result, are also considered fixed costs.
Variable costs are the sum of the producer’s expenses that vary and change as a
result of the quantity of the product being consumed. Advertising may represent
a variable cost for the minor league hockey franchise. If advertising expenditures
increase from one month to the next because the team is doing poorly at the box
office, then the dollar amount spent varies. Similarly, advertising could represent a
variable cost if additional advertising or promotions are used because attendance is
higher than expected.
Although an athletic team experiences very few variable costs in the total cost
equation, a manufacturer of pure sporting goods would encounter a significantly
greater number of variable costs. Usually, variable costs for manufacturing a sporting
good range between 60 and 90 percent of the total costs. For example, the cost of
the packaging and materials for producing the good varies by the number of units
sold.
Costs are considered an internal factor that influences the pricing decision because
they are largely under the control of the sports organization. The minor league
hockey team management makes decisions on player salaries, how much money
to spend on advertising and promoting the team, and how the team travels. These
costs loom large in the sport franchise because they affect the prices charged to the
fans.
Obviously, the most visible and controversial costs incurred by professional
sports organizations are player salaries. The Spotlight on Sports Marketing
Ethics box discusses whether any athletes are worth the huge payday they are
receiving.
508

Astronomical athlete salaries: Are they worth it?
It is a great day to take in a ball The market says yes!

game, do not you think? With our Let us first ponder the supply side
hustling, bustling jaunt through of the market. Hair Doo performs his
the economy, we probably deserve athletic prowess before thousands
a relaxing afternoon of hot dogs of adoring fans – supplies his labor
and peanuts with my favorite – because he is willing and able to
baseball team – the Shady Valley take on his designated duties for a
Primadonnas. Of course, the hot mere $10 gadzillion. If Hair Doo was
dogs and peanuts are overpriced, not willing and able to play baseball
and you might need a second for $10 gadzillion, then he would do
mortgage on your house to buy something else.
the ticket, but the expense is worth Hair Doo’s willingness and ability
watching the finest athletes in the to play our nation’s pastime depends
world display their world-class on his opportunity cost of other
athletic abilities. We might even coax activities, such as deep sea diving,
an autograph from the Primadonnas’ coal mining, ballet dancing, or
all-star centerfielder – Harold “Hair game show hosting. By selecting
Doo” Dueterman. baseball, Hair Doo has given up a
paycheck plus any other job-related
Are these guys worth it?
satisfaction that could have been
Although we thoroughly enjoy the
had from those pursuits. He has
game – the Primadonnas come from
decided that his $10 gadzillion salary
behind to win in the bottom of the
and the nonmonetary enjoyment of
ninth – our favorite player, Hair Doo,
playing baseball outweigh his next
strikes out four times and commits
best alternative. We should have little
an error in center field. This raises a
problem with this decision by Hair
really, really important question in
Doo, because we all make a similar
the grand scheme of the universe:
choice. We pursue a job or career that
Is Hair Doo worth his $10 gadzillion
gives us the most benefits.
salary? Should Hair Doo get 100
But . . . (this is a good place for a
times the salary of an average,
dramatic pause) . . . someone also
overworked, underappreciated
must be willing to pay Hair Doo
member of the third estate?
Dueterman $10 gadzillion to do
Hair Doo’s salary really raises
what he does so well. This is the
another more general question:
demand side of the process, which
Why does anyone get paid what
we affectionately call the market. It
they get paid? Any questions we
deserves a little more thought.
ask about Hair Doo Dueterman’s
The someone who’s willing to pay
salary could also be asked about the
Hair Doo’s enormous salary, the guy
wage of any average, overworked
underappreciated member of the
third estate – Hair Doo’s numbers
who signs Hair Doo’s paycheck, is the
owner of Shady Valley Primadonnas – 12
D. J. Goodluck. You might remember
just happen to be bigger. Because
D. J.’s grandfather from Fact 3, “Our
wages and salaries are nothing more
Unfair Lives,” a wheat farmer on
than prices, the best place to look for
the Kansas plains who had the good
answers is the market.
509
fortune of homesteading 160 acres member of the third estate – an

with a BIG pool of crude oil beneath. employer is willing and able to
(The Goodlucks still visit the toilet pay a wage up to the employee’s
each morning in a new Cadillac. They contribution to production. If your job
did, however, sell their ownership in is making $20 worth of Hot Mamma
Houston, Texas, and bought South Fudge Bananarama Sundaes each
Carolina.) day, then your boss – Hot Mamma
Why on earth would D. J. and his Fudge – would be willing to pay you
Shady Valley Primadonnas baseball $20 per day.
organization pay Hair Doo this
Many are worth even more
astronomical $10 gadzillion salary?
As entertainers, athletes are paid
D. J. must have a pretty good reason.
for fan satisfaction. The more fans
Let us consider D. J.’s position.
who want to see an athlete perform,
Hair Doo’s statistics are pretty
the more an athlete is paid. In fact,
impressive. In the past five
most athletes – even those who
years, he has led the league in
make gadzillions of dollars for each
umpire arguments, souvenir foul
flubbed fly ball, dropped pass,
balls for adoring fans, product
and missed free throw – probably
endorsements for nonbaseball-
deserve even higher salaries. The
related items, and instigation of
reason is competition. The degree
bench-clearing fights. All these have
of competition on each side of the
made Hair Doo an all-star, number-
market can make the price too high or
one fan attraction.
too low. If suppliers have little or no
While Hair Doo may or may not
competition, then the price tends to
help the Shady Valley Primadonnas
be too high. If buyers have little or no
win the championship, he does pack
competition, then the price tends to
fans into the stands. And he has
be too low.
packed fans into the stands for the
In the market for athletes,
past five years.
competition is usually less on the
Fans in the stands translate
demand side than on the supply side.
into tickets for the Shady Valley
The supply of athletes tends to be
Primadonnas, national television
pretty darn competitive. Of course,
broadcasts, and revenue for D. J.
Hair Doo is an all-star player, but he
Goodluck. D. J. is willing to pay
faces competition from hundreds of
Hair Doo $10 gadzillion to perform
others who can argue with umpires
his derring-do, because Hair Doo
and hit foul balls into the stands.
generates at least $10 gadzillion in
The demand side, however, is
revenue for the team. If Hair Doo
less competitive. In most cases, a
failed to generate revenue equal to
particular team, like the Shady Valley
or greater than his $10 gadzillion
Primadonnas, has exclusive rights
salary, then D. J. would trade him to
to a player. They can trade those
the Oak Town Sludge Puppies (the
rights to another team, like the Oak
perennial last-place cellar-dwellers
Town Sludge Puppies, but the two
in the league), send him to the minor
teams usually do not compete with
leagues, or just release him from the
each other for a player’s services.
team.
There are a few circumstances – one
The bottom line on Hair Doo’s
example is “free agency” – where
salary is the same for any average,
two or more teams try to hire the
overworked, underappreciated
510
same player, but that is the exception as star professional athletes. With
rather than the rule. packed stands come overflowing
With little competition among bank accounts for the colleges.
buyers, the price tends to be on the What do the athletes get out of
low side. This means that Hair Doo this? What are their “salaries”?
Dueterman’s $10 gadzillion salary Being amateurs, college athletes
could be even higher. It means are not paid an “official” salary.
that the Shady Valley Primadonnas They are, however, compensated
probably get more, much more, than for their efforts with a college
$10 gadzillion from ticket sales and education, including tuition, books,
television revenue. It means that living accommodations, and a small
D. J. Goodluck would probably be monthly stipend. Although a college
willing and able to pay more, much education is not small potatoes –
more, than $10 gadzillion for Hair $100,000-plus at many places – this
Doo Dueterman’s athletic services. compensation tends to fall far short
The only way to find out how much of the revenue generated for the
Hair Doo is worth to the Shady Valley school. The bottom line is that big-
Primadonnas is to force them to time college athletes, like the pros,
compete for Hair Doo’s services with are usually underpaid.
other teams. The reason is very similar to that
This is a good place to insert of the professional athletes. College
a little note on the three estates. athletics have limited competition
Most owners of professional sports among the “employers” but a
teams, almost by definition if not great deal of competition among
by heritage, tend to be full-fledged the “employees.” Many more
members of the second estate. The high-school athletes hope to play
players, in contrast, usually spring big-time college ball than ever
from the ranks of the third. The idea realize that dream. While different
that one team owns the “rights” of colleges may try to hire – oops, I
a player stems from the perverse, mean recruit – the same athlete, the
although changing notion, that the collegiate governing bodies, most
third estate exists for little reason notably the National Collegiate
other than to provide second-class Athletic Association, limit the degree
servants for the first two estates. of competition and fix the “wage”
athletes can receive. You often
Colleges are worse
hear about the NCAA penalizing a
If professional athletes who get
college because it went “too far” in
gadzillions of dollars to play are
its recruiting efforts. This translates
underpaid, how do college athletes,
into the charge that a college paid an
who get almost nothing, compare? It
athlete “too much” to play, such as
depends on the sport.
new cars, bogus summer jobs with
Big-time college sports, especially
high wages, and cash payments from
football and basketball, are highly
profitable entertainment industries.
Millions of spectators spend tons of
alumni.
Underpayment is most often a
problem for big-time football and
12
money each year for entertainment
basketball revenue-generating sports.
provided by their favorite college
Athletes in sports with less spectator
teams. Star college athletes can
interest, such as tennis, gymnastics,
pack the fans into the stands as well
or lacrosse, actually may be overpaid
511
based on their contribution to their by attending games or watching

colleges’ entertainment revenue. them on television. If, however,
Here’s a tip to keep in mind in you enjoy their performance and
the high-priced world of athletics: are willing to pay the price of
Athletes are paid based on their admission, then worry not about
contribution to fan satisfaction. If you their pay.
think athletes are paid too much, then
do not contribute to their salaries Source: http://cc.kangwon.ac.kr/~kimoon/
pr/issues/IS02.html. Credit: Orley Amos.
Whether you agree or disagree with escalating player contracts, there is no dispute
that the increasing cost of player salaries has been passed on, in part, to the fans.
Table 12.2 shows an example of the Fan Cost Index (FCI) for the MLB. The FCI
represents the total dollar amount that a family of four would have to pay to attend a
home game. This total cost includes the price of four tickets, two small beers, four
sodas, four hot dogs, parking, two game programs, and two twill caps. The other
costs indicate the pricing of one unit. In other words, the cost of one beer at the New
York Islanders game is $9.50.
Although cost is usually considered to be an internal, controllable factor for
organizations, it can have an uncontrollable component. For instance, the league may
impose a minimum salary level for a player that is beyond the control of the individual
team or owner. The costs of raw materials for producing sporting goods may rise,
representing a cost increase that is beyond the control of the manufacturer. Players’
unions for professional teams may set minimum standards for travel that are not
under the individual team’s control. All these examples describe the uncontrollable
side of costs that must be continually monitored by the sports marketer.
Organizational objectives
The costs associated with producing a good or service is just one factor in determining
the final price. Cost considerations may determine the “price floor” for the sport
product. In other words, what will be the minimum price that an organization might
charge to cover the cost of producing the sports product? Covering costs, however,
may be insufficient from the organization’s perspective. This depends largely on the
organization’s objectives. As we have stressed throughout this text, marketing mix
decisions – including pricing – must consider the broader marketing goals. Effective
marketing goals should be consistent with the organizational objectives.
There are four categories of organizational objectives that influence pricing
decisions. These include income, sales, competition, and social concerns. Income
objectives include achieving maximum profits or simply organizational survival. In
the long term, all professional sports organizations are concerned with maximizing
their profits and having good returns on investment. Alternatively, amateur athletic
events and associations are in sports not necessarily to maximize profits but to “stay
afloat.” Their organizational objectives center around providing athletes with a place to
compete and covering costs.
Sales objectives are concerned with maintaining or enhancing market share and
encouraging sales growth. If increasing sales is the basic organizational objective, then
a sporting goods manufacturer or team may want to set lower prices to encourage
more purchases by existing consumers. In addition, setting lower prices or offering
512
Table 12.2 An example of the Fan Cost Index (FCI) for the MLB
Team marketing research
Average ticket price represents a weighted average of season ticket prices for general seating
categories, determined by factoring the tickets in each price range as a percentage of the total
number of seats in each venue. Premium seating (tickets that come with at least one added
amenity or is classified by team as premium) are not included in the survey to calculate average
ticket price. Luxury suites are also excluded from the survey. Season ticket pricing is used for any
team that offers some or all tickets at lower prices for customers who buy season seats. Teams
have a say in what seats are considered general or premium.
The Fan Cost Index™ comprises the prices of four (4) adult average-price tickets, two (2) small
draft beers, four (4) small soft drinks, four (4) regular-size hot dogs, parking for one (1) car, two (2)
game programs and two (2) least-expensive, adult-size adjustable caps. Costs were determined by
telephone calls with representatives of the teams, venues and concessionaires. Identical questions
were asked in all interviews. Superscript numbers next to Beer and Soft Drink prices denote
smallest available size in ounces.
* Boston, Cleveland and Oakland worked with TMR on changes, some retroactive, due to incorrect
information provided by the teams. Boston had provide single-game, rather than season ticket
prices for years. This corrected for the 2014 report and the percentage change was adjusted
accordingly. Cleveland had included tickets and sections not available for season ticket purchases
in the past, lowering their average. Oakland had failed to update concession increases, which
caused a larger percentage increases in FCI in 2014.
1
2
Superscript numbers next to Beer and Soft Drink prices denote smallest available size in ounces.
Prices for the Blue are converted to US dollars and comparison prices were converted using a
recent exchange rate provided by the Blue Jays. Last season's prices were converted using the
12
same exchange rate for a valid comparison.
513
2014 mlb fan cost index

AVER AGE TICKET PRICE UP 2.0 PERCENT AT $27.93; TOTAL FCI UP 2.3 PERCENT TO $212.46
The average Major League Baseball season Interestingly, many of these increases came
ticket has increased by 2.0 percent to $27.93 from the lower- priced teams. Of the 10
for the 2014 season, according to the Team lowest-priced tickets in baseball, nine had
Marketing Report Fan Cost Index®. percentage increases this season, with only
This minor increase is part of a trend; last Toronto going down. Just four of the 10
season, the average MLB ticket increased by highest-priced tickets increased.
1.8 percent. The year before that, there was no Fresh off an unlikely World Series title, the
percentage increase. In 2010-11, tickets rose by Boston Red Sox re-main the most expensive
a combined 2.7 percent. average ticket at $52.32, still above the New
The Fan Cost Index (FCI) total, the average price York Yankees’ $51.55, whose season tickets
to take a family of four to a game, increased remained flat. The Red Sox’s price deserves a
by 2.3 percent to $212.46. The FCI is created minor explanation. We have the Red Sox listed
by combining four non-premium season tickets, with a 4.9 percent increase. But in the 2013
two beers, four soft drinks, four hot dogs, FCI, we show Boston has an average ticket
parking, two programs or scorecards, and two price of $53.38. As it turns out, the Red Sox
adult-size hats. had been submitting single-game prices for
a few years. We corrected it this season and
TMR uses season ticket pricing and the lowest did a retroactive change to last year’s price. So
full-size prices for the ancillary items, so if a technically, the Yankees had the highest aver-
team has an $8 beer and a $6 beer, TMR uses age ticket price last season.
the latter to show how much, or how little, one
can spend at a game. The Chicago Cubs remain baseball’s third most-
expensive ticket at $44.16, which is down 0.9
The average “premium” season ticket is percent from last season. Their FCI of $303.64
$93.41. TMR splits up premium and general is third, and includes a $25 parking fee for
seats in its methodology. nearby lots. The Cubs are offering a free lot,
The Yankees lead baseball with an average with shuttle service, about 2 1/4 miles west of
premium price of $305.39, while the Dodgers Wrigley this year.
are second at $254.19. Speaking of the Cubs, after signing a big-money
The “premium” designation is supposed to deal with Anheuser-Busch InBev they jettisoned
be used for club seats or any section that has longtime beer partner Old Style from the
special features. According to TMR research, vendors to stands, while adding Goose Island
the MLB average for premium seats is 13.7 beers to the vending options. The cheapest
percent. The Yankees classify 16.2 percent of beer at Wrigley is $7.50 for a 16-ounce pour at
season ticket seats as premium, while the several stands around the park.
Dodgers classify 8.6 percent. The average MLB beer stayed flat, price-wise,
Some teams with newer stadiums have a heavy at $6.09. The Marlins boast the most expensive,
dose of premium seating. The New York Mets, cheapest beer option at $8 for a 16-ounce beer.
for example, classify an “amazin’” 59.3 percent The cheapest average ticket this year comes
of seats as premium. Their premium average again from the San Diego Padres $16.37,
ticket is $83.78, compared to a general ticket of which is a 2.4 percent increase from 2013. The
$25.30. The Washington Nationals are second- Arizona Diamondbacks, with an average ticket
highest in premium percentage at 26 percent. of $17.98 (up 6.4 percent), has the cheapest
Their premium average is $187.29, while their FCI again at $126.89.
general ticket is $35.24.
Of course, market size, and fan demographics,
This season, 17 teams showed increases often determine prices. Certainly, many fans
of more than 1 percent in general average don’t get what they pay for in regard to winning
tickets, while only two teams lowered their teams.
average ticket by more than 1 percent. Eleven
teams kept ticket prices essentially flat. Of the teams with the top 10 FCIs in 2014, only
three - Boston, St, Louis and Detroit -made the
The two teams that dropped prices had the playoffs last season.
worst records in baseball. After a 111-loss
season in its first season in the Ameri- can Compare that to the bottom 10, where five
League, Houston’s average ticket price fell teams - Atlanta, Tampa Bay, Pittsburgh,
13.6 percent to $27.98. Miami, which lost 100 Cincinnati and Cleveland - made the
games, dropped ticket prices by 7.7 percent to postseason. Kansas City, fresh off its first
$27.01. winning season since 2003, bumped up prices
514
2014 mlb fan cost index

AVER AGE TICKET PRICE UP 2.0 PERCENT AT $27.93; TOTAL FCI UP 2.3 PERCENT TO $212.46
by 24.7 percent, the biggest jump in baseball. EDITOR’S NOTE: TMR reserves the right to
The Roy- als’ average ticket price of $24.73 make retroactive changes to the FCI and could
is still well below the league average. The update the official chart after the initial © 2014
Dodgers had the second-high percentage Team Marketing Report, Chicago, IL
increase at 15.3 percent, with an average ticket Team Marketing Report • March 2014
of $25.80.
The Source For Sports Marketing Ideas
Source: http://www.teammarketing.com/fci.cfm?page=fci_nhi_06_07.cfm/
price discounts may encourage new groups of consumers to try the sports product.
By doing so, the team may increase fan identification and, ultimately, fan loyalty. This
will, in turn, lead to repeat purchases.
Another broad organizational objective may be to compete in a given sports market.
An organization may want to meet competition, avoid competition, or even undercut
competitive pricing. These competitive objectives are directly linked to final pricing
decisions. Traditionally, professional sports franchises are the “only game in town,” so
competitive threats are less likely to dictate pricing than they would in other industries.
A final organizational objective that influences pricing is referred to as a social
concern. Many sports organizations, particularly amateur athletic associations,
determine the pricing of their sporting events based on social concerns. For example,
consider a local road race through downtown St. Louis on St. Patrick’s Day. The
organizational objective of this race is to encourage as many people as possible to
participate in the community and the festivities of the day. As such, the cost to enter
the race is minimal and designed only to offset the expense of having the event.
Regardless of which organizational objective is established, each has a large role in
setting prices for sports products. In practice, more than one objective is typically
set by the sports organization. However, prices can be determined more efficiently
and effectively if the organization clearly understands its objectives. Let us look at an
example of how the MLS mission statement provides a direction for pricing.
Major League Soccer’s mission statement is:
To create a profitable Division I professional outdoor soccer league with players and teams
that are competitive on an international level, and to provide affordable family entertainment.
MLS brings the spirit and intensity of the world’s most popular sport to the United States.
Featuring competitive ticket prices and family oriented promotions such as “Soccer
Celebration” at the stadium, MLS appeals to the children who play and the families who
support soccer. MLS players are also involved with a variety of community events.
As indicated in the mission statement, MLS is concerned with profitability for its
league and teams. Moreover, the pricing of MLS games should be affordable so
families who support soccer will be financially able to purchase tickets, reflecting
12
a social concern. Finally, the mission statement reflects the competitive nature of
pricing. The interaction of the organizational objectives of the MLS should exert a
great influence on the price that fans pay to see U.S. professional soccer.
515
External factors
Thus far, we have described the internal, or controllable, determinants of pricing and
factors believed to be under the control of the sports marketer. The uncontrollable
or external factors also play an important role in pricing decisions. The uncontrollable
factors that influence pricing include consumer demand, competition, legal issues, the
economy, and technology. Let us turn our discussion to each of these major, external
factors.
Consumer demand
One of the most critical factors in determining the price of a sports product is
consumer demand. Demand is the quantity of a sports product that consumers are
willing to purchase at a given price. Generally, consumers are more likely to purchase
products at a lower price than a higher price. More formally, economists refer to
this principle as the law of demand. To better understand the nature of the law of
demand and its impact on any given sports product, let us examine the price elasticity
of demand.
Price elasticity explains consumer reactions to changes in price. Price elasticity or
price inelasticity measures the extent to which consumer purchasing patterns are
sensitive to fluctuations in price. For example, if the St. Louis Cardinals raise their
bleacher ticket prices from $19.80 to $23.00, will the demand for seats decline?
Similarly, if the ticket prices are reduced by a given amount, will the demand increase?
Mathematically, price elasticity is stated as:
DQ/Q
e=
DP/P
where e = price elasticity

DQ/Q = percentage change in the quantity demanded
DP/P = percentage change in the price
Consumer price elasticity may be described in one of three ways: elastic demand,
inelastic demand, or unitary demand. Inelastic demand states that changes in price
have little or no impact on sales. In the previous example, demand probably would
have been inelastic, because even relatively large increases in the ticket prices would
have had little impact on the number of fans attending each game. If demand is
inelastic, then e is less than or equal to 1 (see Figure 12.2a). Because of the great
(a) Inelastic (b) Elastic (c) Unitary

Price Price Price
Sales/Quantity Sales/Quantity Sales/Quantity
Figure 12.2 Price elasticity of demand

516
demand for tickets, the Green Bay Packers, who have been sold out on season tickets
since 1960, could probably raise their minimum ticket price to $300 and still sell out all
their games.
Elastic demand refers to small changes in price producing large changes in
quantity demanded. For example, if the average price of a ticket to a Miami Heat
game is reduced from $58.55 to $48.00, and if the number of units sold increases
dramatically, then demand is considered elastic, because e is greater than 1 (see
Figure 12.2b).
Finally, unitary demand is defined as a situation where price changes are offset
exactly by changes in demand. In other words, price and demand are perfectly related.
A small change in price produces an equally small change in the number of units sold.
Similarly, a large change in price causes an equally large change in the number of units
sold. In a situation where demand is unitary, e is equal to 1 (see Figure 12.2c).
Estimating demand
The basic notion of demand allows sports marketers to explore the relationship
between price and the amount of sports product that is sold. In practice, a sports
marketer cannot continually change the price of a product and then determine the
impact of this price change. Rather, the sports marketer must develop estimates of
demand. The three basic factors that are used in estimating demand are consumer
trends and tastes, availability of substitute sports products, and the consumer’s
income. Let us briefly explore the three demand factors.
Consumer tastes
Consumer tastes, both as participants and spectators, play an influential role in
estimating demand. For example, consumer demand (as spectators) for football is
at an all-time high, which influences ticket prices (and the price of rights to televise
football). In addition, as reflected in the 2013 NSGA Sports Participation Report (see
Table 12.3), participation trends in flag football (6.8 million) and touch football (8.8
million) are on the rise while participation in tackle football encounter a slight decline
7.9 to 7.5 million, as compared with 2012 participation levels. These participation
trends potentially affect the demand for specific “football” consumer products.
Similarly, yoga, running/jogging, and archery (target) are the sports reflecting the
largest participation rate increases from 2012, so demand for products in these
growth categories may be higher than an activity such as camping that encountered
a decline of 5.9 million participants. NSGA’s Sports Participation in the U.S. report
provides participation trends and key demographic/geographic drivers of participation
for 51 different sports and recreational activities. The 2013 report identified that
participation in sports/recreational activities slowed in 2013, as only one-third of
the sports/activities tracked by NSGA experienced participation growth vs. 2012.6
Fluctuation in participation often affects demand for these “popular” sports which will
also affect pricing of equipment to consumers.
With sophisticated statistical techniques, sports marketers can understand what,
when, and how factors are influencing consumer tastes and the likelihood of
12
purchasing products. For example, demand for a new design of in-line skates in any
given market may be expressed as a function of a number of factors other than price.
These factors can include the number of consumers currently participating in this
recreational activity, the desire of recreational skaters to have more technologically
517
Table 12.3 2013 sport/recreational activity participation

1 Exercise Walking 96.3
2 Exercising with Equipment 53.1
3 Swimming 45.5
4 Aerobic Exercising 44.1
5 Running/Jogging 42.0
6 Hiking 39.4
7 Camping (Vacation/Overnight) 39.3
8 Bicycle Riding 35.6
9 Bowling 35.2
10 Workout at Club 34.1
11 Weightlifting 31.3
12 Fishing (Fresh Water) 27.0
13 Yoga 25.9
14 Basketball 25.5
15 Billiards/Pool 19.5
16 Target Shooting (Live Ammunition) 19.0
17 Golf 18.9
18 Hunting with Firearms 16.3
19 Boating, Motor/Power 13.1
20 Soccer 12.8
21 Tennis 12.6
22 Backpacking/Wilderness Camping 12.2
23 Baseball 11.7
24 Volleyball 10.1
25 Softball 10.0
26 Table Tennis/Ping Pong 9.8
27 Dart Throwing 9.8
28 Fishing (Salt Water) 9.5
29 Football (Touch) 8.8
30 Archery (Target) 8.3
31 Kayaking 8.1
32 Football (Tackle) 7.5
33 Football (Flag) 6.8
34 Canoeing 6.7
35 Skiing (Alpine) 6.1
36 Roller Skating (In-line) 5.7
37 Hunting with Bow & Arrow 5.7
38 Mountain Biking (off road) 5.2
39 Gymnastics 5.1
40 Skateboarding 5.0
41 Paintball Games 4.8
42 Target Shooting (Airgun) 4.8
43 Snowboarding 4.5
44 Water Skiing 3.6
518

45 Cheerleading 3.5
46 Hockey (Ice) 3.5
47 Muzzleloading 3.2
48 Wrestling 3.1
49 Lacrosse 2.8
50 Scuba Diving (Open Water) 2.7
51 Skiing (Cross Country) 2.5
Source: National Sporting Goods Association.
advanced skates, the amount that the new skates have been advertised or promoted,
or the availability of the skates.
Today, successful players in the sport and entertainment industry look to create
innovative solutions utilizing marketing research. Marketing research as defined by
the American Marketing Association is:7
A function that links the consumer, customer and public to its market through the information
– information used to identify and define marketing opportunities and problems; generate,
refine, and evaluate marketing actions; monitor marketing performance; and improve
understanding of marketing as a process. Marketing research specifies the information
required to address these issues, designs the method for collecting information, manages
and implements the data collection process, analyzes the results, and communicates the
findings and their implications. The process allows for the generation, refinement and
evaluation of marketing actions. It affords opportunity for the monitoring of performance and
adjustment of strategy to improve marketing as a business process.
Plain and simple, marketing research is the process of objectively listening to the
voice of the marketplace and then utilizing and conveying the information in an
ascertainable manner. In the words of David Ogilvy,8 “if you’re trying to persuade
people to do something, or buy something, it seems you should use their language,
the language in which they think.” Whether it is simple customer comment cards or
complex feasibility assessments the research process affords one the opportunity to
Expections of Acceptable Price Range Expections of

Current Pricing Future Pricing
What is the price range
What did I expect to pay? I am willing to pay? Do I expect prices to be
higher or lower in the
Are current prices
higher or lower?
Based on:
Consumer income
Situational factors
future?
12
Price of substitutes
Cost of information search
Perception of value
Figure 12.3 Consumer pricing evaluation process

519
enhance the fundamental marketing process; the process or function for creating,
communicating and delivering value to customers and for managing customer
relationships in ways that benefit the organization and its stakeholders.
Marketing research (as discussed in Chapter 3) allows us to estimate demand for
new and existing sports products. Firms conduct research to determine consumers’
past purchase behavior and the likelihood of their buying a new product. In addition,
businesses rely on environmental scanning to monitor changes in the demographic
profile of a market, changes in technology, shifts in popular culture, and other issues
that may affect the size or tastes of the consumer market.
Environmental scanning and marketing research assist sports marketers in
understanding what consumers expect and are willing to pay for sports products. Let
us look at how consumers evaluate price (see Figure 12.3).
In the consumer pricing evaluation process, acceptable price ranges are determined
by consumers’ expectations. These expectations are influenced by communicating with
other consumers (i.e., word of mouth), promotions or advertising, and, to some extent,
past experience in purchasing the products. If the gap between expectations and the
actual price is too large, a problem arises for the sports organization. If prices are much
higher than expected, the consumer will be much less likely to purchase. However, if
prices are much lower, then the quality of the sports product may be called into question.
The sport of professional boxing provides an excellent example of the role past
experience plays in determining an acceptable price range for consumers. Fan
satisfaction with professional boxing has reached an all-time low because of the
short length of heavyweight fights and the heavyweight prices paid by pay-per-view
(PPV) customers to watch these fights. To combat this problem of short telecasts,
Cablevision introduced a controversial pricing strategy. Consumers who wanted to
view the historic title fight between Evander Holyfield and Mike Tyson paid a $10-a-
round price with a $50 cap.
This innovative strategy apparently sparked a 200 percent jump in sales in Cablevision’s
1.9 million PPV homes (a PPV record). Equally important, the product quality was not
called into question. Cablevision paid a flat fee (roughly $4 million) for the rights to the
fight, and the boxers did not receive any additional money based on the fight’s length.9
Along with previous experience with pricing, expectations of future pricing also
influence the acceptable range of prices a consumer is willing to pay. For example,
when an innovative sports product, such as the Power Block Dumbbell System,
is in the introductory phase of the product life cycle, little competition exists and
start-up costs are high. Most consumers would expect the price of this product to
drop over time, and some may be willing to wait for this to occur. However, sports
fans may expect prices to continually rise in the future and purchase the new product
immediately rather than waiting for the inevitable higher prices.
Along with expectations of current and future prices, a number of other individual
consumer judgments will also play a role in determining the acceptable price range for
any given sports product. As shown in Figure 12.3, these variables include consumer
income, situational factors, price of substitutes, cost of information search, and
perceptions of value.
Consumer income, one of the three demand factors, refers to the consumer’s ability
to pay the price. Generally, the higher the consumer’s income, then the wider the
range there is of acceptable prices. For example, a sports fan who has an annual
income of $100,000 might perceive a $10 increase in ticket prices as still within his or
520
her price range. However, the same $10 increase in price may be unaffordable to the
fan earning $30,000 per year. Significantly, both fans may find the increase in ticket
prices unacceptable, but only the latter finds it unaffordable.
The situational factors that may affect a consumer’s acceptable range of prices
include the presence or absence of time, the usage situation, and social factors.
Consider the following situations and how each might affect the price you would be
willing to pay. First, you are getting ready for a much anticipated round of golf when
you discover you only have one ball left in your bag. Typically, you purchase golf balls
at your local discount store for roughly $6 a sleeve (package of three). Given the
situation (absence of time), you are forced to “cough up” $12 at the pro shop for the
three balls needed to get you through the round. This absence of time to shop for less
expensive golf balls caused the acceptable price range to double in this situation.
The next scenario illustrates how your usage situation influences the range of
acceptable prices. Imagine you are purchasing a new set of golf clubs that will be
used only once or twice a month at the local public course. In this situation, the
acceptable price range for this set of clubs might be from $250 to $400. It is likely that
you may even purchase less expensive, previously owned clubs. However, if you are
planning to use the clubs once or twice a week and are more concerned about their
quality and your image, the acceptable range of prices would increase.
The final situation places you in the position of purchasing tickets for the Daytona 500.
The cost of purchasing one ticket is approximately $105. You are not a huge car racing
fan and the thought of spending $105 for a ticket seems disagreeable. However, a
group of your best friends are attending the event and encourage you to “go along for
the ride.” You agree and purchase the ticket because of the social situational influence.
Another interesting social situational influence is referred to as the “mob effect.” The
mob effect (or the crowd effect) describes a situation in which consumers believe it
is socially desirable to attend “special” sporting events, such as the NBA Finals, bowl
games, or the World Series. Because these events constitute unique situations that
can never be duplicated, consumers are willing to pay more than usual for the “right”
to be a part of the mob (or crowd).
An additional consumer determinant of acceptable prices is the expected price
range of substitute products. The prices of competitive products will have a major
influence on what you deem acceptable. If a sports organization’s pricing becomes
out-of-line (higher) versus competition, then consumers will no longer pay the price.
The cost of information search also determines what a consumer considers
acceptable. A consumer wanting to purchase a series of tennis lessons has a relatively
low cost of information search because information is easily obtained from friends or
by calling various tennis professionals. In this case, the cost of the search is less than
the benefit of finding the best value. Interestingly, in purchasing a sports product, the
cost of information search may be negligible because fans may find the search itself
to be intriguing.
Finally, as discussed previously, perception of value will dictate acceptable price
ranges for sports products. Remember, perceptions of value will vary from individual
to individual and are based on the perceived benefits. The greater the perceived
12
benefits of the sports product, the higher the range of acceptable prices. Most
people would consider $400 an outrageous price to attend a single pro football game.
However, that cost might look like the bargain of a lifetime if that single game were
the Super Bowl.
521
Availability of substitute products

Another demand factor, other than price alone, that may affect demand is the
availability of substitute products. Generally, as the number of substitute products
for any given sports product increases, demand for the product will decrease.
Consider the case of almost any professional sports franchise and substitute products.
Typically, there is no substitute product for the professional sports team. Therefore,
demand remains relatively unchanged, even when ticket prices are increased (in other
words, demand is highly inelastic). For example, there is no substitute product for
the St. Louis Cardinals, although baseball is played in St. Louis at the collegiate, high
school, and amateur levels. However, consumers may choose to spend their sports
dollars on purchasing televised broadcasts of the Cardinals, rather than pay the price
increase.
Consumer’s income
The final demand factor that influences the consumer’s ability to purchase the sports
product is the consumer’s income. Simply stated, the more income a consumer
realizes, the higher the demand for various sports products. This “income-related”
demand factor is related to the cost of the sports product under consideration. That
is, the higher the cost of the sports product, the more “consumer income” matters.
Consider the case of San Antonio Spurs courtside seats that are priced at $3,400 per
seat. For this “paltry” sum, fans get a small TV display and as much food and drink
as they can ingest. Exponentially, that would equate to a whopping $139,400 for a
41 home game season, and obviously, these are not seats that most middle-income
consumers would be able to afford.10
The potential consumer’s personal income and ability to purchase products is also
highly related to the state of the economy, in general. The economy is one of the
“other external factors” that influences pricing, which is discussed in the next section.
Economy
The current economic cycle, or economy, also influences pricing decisions. A
recessionary period, for instance, is characterized by reduced economic activity.
During these times, there is a reduced demand for goods and services. In addition,
unemployment rates are typically higher. Although this sounds grim for consumers
and sports fans, imaginative sports marketers might be able to take advantage
of these slowdowns in the economy by holding or slightly reducing prices, while
stressing the continued value of the sports product.
Periods of inflation also require a pricing review. During inflationary periods, the cost
of inputs (e.g., supplies or raw materials) necessary to produce the sports product
will rise and ultimately increase prices to consumers. Rather than increase prices,
sports marketers may adopt a cost reduction strategy during inflation. Such a strategy
necessitates reducing or stabilizing costs of producing the product so consumer prices
need not be increased.
Whatever the phase of the economic cycle, it is important to understand the direct
relationship between pricing and the economy. In the preceding discussion, prices
were adjusted due to changes in the economy. The prices set by manufacturers and
sports organizations equally have a tremendous impact on the demand for these
products and services and, in turn, affect the economy.
522
Competition
As stated earlier, competition is one of the most critical factors in determining prices.
Every sports organization must closely monitor the pricing structure of competing
firms to successfully implement prices for its own products. One key to understanding
the relationship between price and competition is exploring the sports organization’s
competitive environment. These four competitive environments include pure
monopolies, oligopoly, monopolistic competition, and pure competition.
Most professional sports organizations operate in a pure monopoly, which means
they are the only seller who sets the price for a unique product. With the exception of
New York, Chicago, and California, there are few areas large enough to support two
professional sports franchises in the same sport (e.g., the Cubs and White Sox). As
such, most professional sports are free to manipulate prices as they want. The same
would hold true for many college athletic programs, where college sports may be “the
only show in town.”
An oligopoly is where a small number of firms control a market. Conditions for an
oligopoly exist when no one seller controls the market, but each of the few sellers
has an impact on the market. In the sports industry, an example of an oligopoly is the
sports news networks where ESPN and Fox have dominant control over the market.
In the case of many sporting goods, monopolistic competition is the norm. There
are dozens of brands with identical products to sell. This competitive environment
requires both price competition and nonprice competition. For example, all tennis balls
are designed the same, but the many different brands compete based on lower prices
and/or other marketing mix elements (promotions, product image, and sponsorships).
The same holds true for golf balls, basketballs, and so on.
Pure competition is a market structure that has so many competitors that none
can singularly influence the market price. The market conditions that must exist for
pure competition include homogeneous products and ease of entry into the market.
Although pure competition exists in industries selling uniform commodities such as
agricultural products, it does not exist in the sports industry.
Legal issues
In addition to the other external factors, sports marketers must consider legal issues,
such as constraints imposed on pricing. Several key laws that affect sports marketers
were presented in Chapter 2. Table 12.4 presents U.S. legislation that specifically
affects the pricing of sports products.
Table 12.4 Laws influencing the price of sports products
• Sherman Act, 1890 – Establishes legality of restraint/price of trade and fixing. It also restricts
the practice of predatory pricing to drive competition from the marketplace through pricing.
•
•
Clayton Act, 1914 – Restricts price discrimination.
Robinson-Patman Act, 1936 – Limits the ability of firms to sell the same product at different
prices to different customers.
12
• Wheeler-Lea Act, 1938 – Ensures pricing practices are not deceiving to consumers.
• Consumer Goods Pricing Act, 1975 – Eliminates some control over retail pricing by wholesalers
and manufacturers. It allows retailers to establish final retail prices in most instances.
523
One of the most notable legal issues that the sports industry has been wrestling with
for years is the secondary ticket market, or as it is more commonly known, ticket
scalping (see the following article).
THE NFL VS. TICKET SCALPERS: SUPER BOWL EDITION
The National Football League brokers to follow the NFL’s lead in

announced this week that the most raising prices: “If somebody was
expensive seats for the 2014 Super going to spend $4,000 for a ticket, will
Bowl at MetLife Stadium in New they now spend $4,500 or $5,000?
Jersey would go for $2,600. That’s up I’m pretty sure they will.” The gap
from $1,250 for the top seats at last between face value and actual price,
February’s game in New Orleans. The he says, will probably narrow more
bump not only reflects the relative at the middle and bottom end of the
size and wealth of the New York market.
market; it also represents an attempt So what would it take for the
by the league to cut into the profits NFL to really eat scalpers’ lunches?
of ticket scalpers. “We are looking to According to secondary market
close the gap between the face value search engine SeatGeek, the top
of the ticket and its true value as club seats at the Super Bowl in
reflected on the secondary market,” New Orleans went for an average
league spokesman Brian McCarthy of $5,122. The year before that, in
told reporters. Indianapolis, the best seats went
But ticket sellers don’t appear to for $7,733. And in 2011 at Cowboys
be too worried. “I can’t blame them Stadium, for $7,967. Zinna says an
for doing what they did,” says Jason open auction for MetLife seats would
Zinna, a partner at Inside Sports & likely go as high as $8,000 to $12,000.
Entertainment Group, an agency that “The anticipation going in from six
specializes in hard-to-get tickets for months ago to now is definitely
rich clients. “Are they closing the gap the greatest that I’ve seen in recent
with the secondary market? Sure. Is years,” he says.
there still going to be room for the
secondary market to make money? Of Source: Article author: Ira Boudway.
course.” Rightsholder: Bloomberg Businessweek;
Zinna, who says Inside Sports http://www.businessweek.com/
articles/2013-09-20/the-nfl-vs-dot-ticket-
handles about 2,000 Super Bowl
scalpers-super-bowl-edition. Credit:
tickets every year, expects ticket
The YGS Group.
Technology
Without a doubt, all sports products are becoming more and more technologically
advanced. The trend toward technology can have an indirect or direct influence on
pricing decisions. Experience tells us that greater technology costs money. The high
cost of research and development, as well as the higher costs for production and
materials, drive up the price of the sports product. For example, if our stadiums are
equipped with mini-screen monitors at every seat, the consumer would be expected
to pay the price for this technology in the form of higher ticket prices. In this case, an
advance in technology has a direct impact on the pricing.
524
NEW ERA TICKETS USES IOVATION TO KEEP SCALPERS

AND FRAUDSTERS OUT OF THE ARENA
CASE STUDY
New Era Tickets uses iovation

to Keep Scalpers and Fraudsters
Out of the Arena
In our business, Created by Comcast-Spectacor, New Era Tickets offers
catching the bad guys highly customized, uniquely branded ticketing options for
its customers while keeping fraud rates almost non-existent
can be really difficult.
with iovation ReputationManager 360.
Since there’s nothing
being shipped, we’ve Fraud Challenges
got to stop them upfront. Increase in online ticket sales was leading to increasing rates of fraud
and higher chargeback rates
Our real challenge is
Fraudsters were using stolen credit and identity information to evade
trying to find them fast restrictions put in place to prevent scalping and unfair ticket sales
and reject the order Scalpers were working together online to defraud entertainment
organizations and their customers
out-right.
Solution Requirements
Steve Geib Identify users independent of credit and identity information
Vice President of Client Services,
Track velocity of purchases coming from individual computers
New Era Tickets
Catch criminals’ behavior within a limited window of time
Results using iovation

98% reduction in total fraud losses
Fraud losses dropped from triple digits to nearly zero at one site alone
Increased operational efficiency prevented the need for as many as

12 additional full-time employees
12
525
About New Era Tickets
Created by Comcast-Spectacor in 2004, New Era Tickets brings a new way of

doing business to the entertainment industry through its full-service ticketing and
database marketing solutions. Making use of the latest technology, New Era Tickets
provides a variety of services including internet ticket sales, order fulfillment,
customer service, access control and print-at-home technology, up-selling and
cross-selling, stored value technology, online ticket exchange, ticket auctions, client
training and support team, and database marketing.
In addition to offering a comprehensive list of services, New Era Tickets also makes
its solutions highly customizable, offering clients complete control over their ticket
prices, branding, and marketing data. By allowing clients to leverage their own
brands, and their unique understanding of their customers and markets, New Era
Tickets helps its clients realize increased ticket sales and overall revenue growth.
Based out of Exton, Pennsylvania, New Era Tickets serves over 60 clients through
the US and Canada, from sports organizations to entertainment companies,
including the Philadelphia 76ers, the General Motors Centre, The Rose Quarter,
Dover Motorsports and Pocono Raceway. Handling 11–12 million ticket sales
annually, New Era Tickets processes $400-450 million in business transactions
each year. Additionally, the company manages 30 different customer databases,
with each database containing up to 2 million records.
The Fraud Challenge
In the time that New Era Tickets has been in business, the company has seen a
significant shift in people’s buying habits. “Five years ago, if we could sell 40-50%
of the tickets online, that was considered a success. Now, we sell 90% of the tickets
online,” observes Steve Geib, Vice President of Client Services for New Era Tickets.
However, despite the benefit of increased online sales, the down side is that
criminals making purchases online can much more easily use stolen or illegitimate
credit cards, due to the card-not-present buying environment.
While the challenge of fraudsters using stolen credit cards is common among most
online retail sites, the online sale of tickets, as opposed to other “hard goods,”
presents its own unique challenges. With the advent of new technologies like
print-at-home tickets that make the transfer of the good being purchased almost
immediate, the review time on transactions is extremely limited. “In our business,
catching the bad guys can be really difficult. Since there’s nothing being shipped,
we’ve got to stop them upfront. Our real challenge is trying to find them fast and
reject the order out-right,” says Geib. If the fraudulent behavior isn’t caught at the
time of purchase, New Era Tickets—who processes the transactions for its clients—
faces the potential increase of its chargeback rate at the same time its clients are
stuck with the loss of the ticket price.
New Era Tickets Case Study page 2
526
Another challenge is that online fraud, in all industries, is becoming increasingly

dominated by organized individuals with well-planned strategies for taking
advantage of the system. With many sporting events and music concerts
commanding enormous ticket prices—such as $180 for an NHL ticket, or $750 for
an Eagles ticket—fraudsters can make significant profits by fraudulently purchasing
multiple tickets online and then quickly reselling them. Obviously, the more demand
there is for a ticket, and the closer it is to the time of the event, the easier it will be
for a fraudster to turn the tickets around, and thus the more susceptible the event is
to fraud.
In one particular case Geib recalls, someone purchased a single ticket to a Rolling
Stones concert online, then, using the print-at-home feature, printed the ticket
multiple times and sold all of the illegitimate copies for over $1,000 each. The
result? Not only did all of the unsuspecting victims who purchased the illegitimate
tickets lose their money—as well as their faith in the security of online sales—but
since the original ticket was purchased with a stolen credit card, the venue lost as
well. In order to combat these kinds of situations and protect both event-goers and
the venues, New Era Tickets had to find an effective fraud solution that could catch
fraudsters quickly and keep them from coming back.
The iovation Solution
When New Era Tickets began looking for fraud solutions, iovation was immediately
The reality is that recommended by multiple merchant services companies in the industry. And,
device recognition is one as New Era Tickets began seriously comparing its various options, iovation
ReputationManager 360 emerged as the best fit. “Everything iovation does just fit
of the only ways to really for us. It was quick, it was easy, it was up and running on the first day— and the
stop scalping and unfair return was almost immediate,” says Geib.
ticket sales. Part of what makes iovation so effective for New Era Tickets is that it gives the
company quick visibility into the activity on its sites by focusing on the computers
being used to submit transactions, rather than on the personally identifiable
Steve Geib information being submitted. Without this device-based information, organized
Vice President of Client Services,
fraud rings and repeat offenders are extremely hard to identify since they can set
New Era Tickets
up multiple accounts with different information every time. This is partly the reason
that government efforts to mitigate scalping and regulate ticket sales have been
largely ineffective. “The reality is that device recognition is one of the only ways to
really stop scalping and unfair ticket sales,” says Geib. “Every time someone puts in
a new address, a new name, etcetera—you can’t tell if it’s really a different person.
But with iovation, I can tell that someone at one machine just bought 80 tickets.”
When New Era Tickets sees fraudulent activity originating from a computer, using
iovation ReputationManager, that device can be tagged so that the client site can
simply deny any future transactions originating from it. This kind of visibility gives
New Era Tickets a powerful advantage. “We know who our scalpers are and where
they’re coming from,” says Geib. “They think they’re fooling us, but we can see them
moving around.”
New Era Tickets Case Study page 3
12
527
Results
By using iovation ReputationManager 360, New Era Tickets gained the ability
to protect its clients from fraud at the same time as regulating ticket sales and
keeping the marketplace fair for event-goers. What started out as a significant fraud
problem—resulting in nearly six-figure losses from one client alone—turned into an
almost non-existent issue, with Geib estimating a 98% reduction on the company’s
fraud losses, thanks to iovation. The company has been so effective at stopping
fraud, in fact, that Geib notices many fraudsters have gotten the hint and simply
started avoiding its sites. “There’s almost no fraud anymore,” says Geib. “Now it’s
a matter of someone not liking their seat. Can you imagine? Now that’s our biggest
problem.”
Another huge benefit for New Era Tickets has been the savings on operational costs
that iovation has made possible. With iovation, the fraud management process is so
efficient that New Era Tickets needs only one dedicated full time person. This saved
the company from hiring a whole team of people—as many as 12 more full time
employees—that would have been required for tracking the fraud without the use of
iovation. “When you’re talking about manual reviews, the man hours are huge. With
iovation, we’re so much more efficient. Thanks to this technology, we know exactly
who we’re dealing with and we can tie it all together quickly. That knowledge is
priceless.”
To learn more about iovation ReputationManager 360

and how it helps organizations fight online fraud and abuse,
For more information about New visit www.iovation.com.
Era Tickets and their products
and services, please contact:
New Era Tickets
930 East Lincoln Highway
Suite 200
Exton, PA 19341 iovation Inc.
www.neweratickets.com 111 SW 5th Avenue, Suite 3200, Portland, OR 97204
+1.503.224.6010 tel | +1.503.224.1581 fax
www.iovation.com
©2013 iovation Inc. All rights reserved. iovation and the iovation logo are trademarks of iovation Inc.
Source: Article author: iovation Inc. (2013); https://www.iovation.com/images/

uploads/case-studies/PDF/iovation-newera-ticketing-case-study.pdf. Credit: www.
iovation.com.
Although technology and higher prices are typically believed to go hand in hand, as
illustrated in the following article, technology does not always have to increase pricing.
A consumer may be able to buy a King Cobra titanium driver for $299 using electronic
commerce (in other words, purchasing it through the Internet). The same driver may
cost $125 more if purchased in a traditional retail outlet. In this case, technology is
having an indirect influence on pricing, happily reducing the price of goods to consumers.
528
Price adjustments
As we discussed in the preceding sections, initial prices are determined by a variety of
internal and external issues that are continually changing with new market conditions.
For instance, more or less competition may provide the impetus for price changes.
ORIOLES RAISE SEASON-TICKET PRICES SLIGHTLY,

EXPAND VARIABLE-PRICING SYSTEM
Under dynamic pricing, cost of followed suit. Teams that use some

single-game tickets for higher-profile type of dynamic pricing include
opponents likely to rise as game the Arizona Diamondbacks, Atlanta
nears Braves, Chicago Cubs, Chicago White
When Orioles season-ticket holders Sox, Colorado Rockies, Milwaukee
receive their renewal packages in Brewers, Minnesota Twins, New
the mail over the next few days, York Mets, Oakland Athletics, San
they will find slightly higher average Diego Padres, St. Louis Cardinals and
ticket prices and an expanded version Toronto Blue Jays.
of the variable-pricing plan the club Under dynamic pricing, prices for
has used for single-game ticket sales single-game tickets against popular
over the past seven years. teams like the division-rival New York
The Orioles are raising season- Yankees and Boston Red Sox or the
ticket prices on all plans by an regional-rival Washington Nationals
average of approximately 5 percent, likely will rise as the date approaches.
the first increase in cost since 2008, Popular promotions, team success, as
an Orioles spokeswoman confirmed well as weekend and holiday dates
Friday. Season-ticket packages start also could prompt a spike in price as
at $168 for a 13-game plan; 29-game the game nears.
and full-season packages are also The new system encourages fans
available. to become season-ticket holders,
Single-game tickets also will who will save between $2 and
be overhauled, changing the way $16 per game over initial single-
fans will go to the box office and game prices, which likely will go
purchase tickets. There will be no on sale next month. Season-ticket
more fixed pricing, as the Orioles holders also have fewer exchange
are instituting single-game dynamic restrictions and can make additional
pricing, in which prices fluctuate single-game purchases at the
from day to day depending on season-ticket rate.
the demand for a specific game. Previously, the Orioles had two
This system is similar to purchasing price categories for single-game
airline tickets. tickets: regular games and more
Dynamic pricing is becoming expensive high-profile games, which
a growing trend in professional included games against popular
sports. Since the San Francisco
Giants became the first Major
opponents like the Yankees, Red Sox
or Nationals.
12
League Baseball club to introduce Now the club’s 81 home dates will
dynamic pricing four years ago, be divided into five different pricing
more than a dozen other teams – levels, from six “value” games,
big and small market alike – have including weekday games against the
529
Tampa Bay Rays and Toronto Blue 49 total, will fall under the “classic”
Jays, to five “elite” games, including level.
Opening Day and Saturday-night
games against the Yankees, Red Sox Source: Rightsholder: December 06,
and Cardinals. 2013|By Eduardo A. Encina, The Baltimore
The tier below the elite level, the Sun; http://articles.baltimoresun.
com/2013-12-06/sports/bs-sp-orioles-
“prime” category, includes all other
ticket-prices-1207-20131206_1_single-
games against New York, Boston and
game-tickets-pricing-orioles. Credit: © The
St. Louis. The majority of the games,
Baltimore Sun.
Also, price adjustments may be made to stimulate demand for sports products when
sales expectations are not currently being met. Finally, prices might be adjusted to
help meet the objectives that have been developed. The next section explores some
of the ways in which price adjustments are implemented by sports marketers, and
as the accompanying article illustrates, there may be new approaches to pricing of
traditionally priced products, like season ticket packages.
Price increases and reductions

As with most things in sports marketing, prices are dynamic and decisions are
continually being made about whether prices should be increased or decreased based
on a number of internal and external facors.
Price increases represent an important adjustment made to established prices. In
recent years, many sports organizations have had to increase prices for a variety of
reasons, even though consumers, retailers, and employees discourage such actions.
One of the primary reasons for increasing prices is to keep up with cost inflation. In
other words, as the cost of materials or of running a sports organization increases,
prices must be increased to achieve the same profit objectives. Another reason for
implementing a price increase is because there is excess demand for the sports
product. For example, if thousands of fans join the season-ticket waiting list in the
week that a Hall of Fame coach returns to a team, then slight increases to these ticket
prices may be acceptable.
A winning season may have a huge impact on the decision to raise prices. For four
consecutive years, the Chicago Bears increased their ticket prices after gaining a trip
to the Super Bowl in 2007. The 2009 season was the only recent year in which the
Bears froze their ticket prices; they resumed increases in 2010.The increase is for all
except the most expensive seats in Soldier Field, according to a report in the Chicago
Sun-Times.11 Non-club-level seats, which make up about 85 percent of the stadium,
will cost $68–125 a game, while club seats will cost $265–365, according to the
report.
Because of the negative consequences of raising prices, sports organizations may
consider potential alternatives to straight price increases. These alternatives include
eliminating any planned price reductions, lessening the number of product features, or
unbundling items formerly “bundled” into a low price.
If there are no viable alternatives to increasing prices, it is important to communicate
these changes to fans and consumers in a straightforward fashion to avoid potential
negative consequences. Remember, much of pricing is based on consumer psychology.
If fans or consumers of sporting goods are told why prices are being increased, they
530
may believe price increases are justified. Typically, price reductions are efforts to
enhance sales and achieve greater market share by directly lowering the original price.
In addition to the direct reductions in price, rebates or bundling products are other types
of price breaks commonly employed. After a mediocre 2010 season, the New York
Mets announced a restructured ticket pricing program for 2011 that includes a reduction
of ticket prices by an average of more than 14 percent from the previous season. Mets’
Executive Vice President of Business Operations, Dave Howard, is quoted as saying
“The Mets are committed to providing quality and value to our fans.”12
After just their fourth year in the league in 2008, the Charlotte Bobcats reduced their
season ticket prices to stimulate demand and attendance. While the Bobcats had
been successful by the standards of NBA expansion team, their attendance numbers
left them in the bottom of the league, averaging just over 15,000 fans per home
game. The concept seemed to work, allowing the Bobcats to raise prices 4 percent
to 21 percent on 2,500 seats in the lower level at Time Warner Cable Arena for the
2011–12 season. Regardless, to keep demand high, at the same time, prices for
all tickets in the upper bowl – nearly 9,000 seats – were reduced 13 percent to 43
percent for the 2011–12 season. “This was a continuing evolution to get the building
priced right for every seat,” Bobcats President Fred Whitfield said. “We’re trying to
make sure we’re offering the right value-proposition”.13
Although teams commonly reduce or increase prices after the season, sports
organizations rarely reduce or increase the price charged to consumers during the course
of the season to stimulate demand. It is much more common, however, for marketers of
sporting goods to reduce and increase prices. Simply said, the Los Angeles Dodgers will
probably never have an end-of-the-season sale of tickets. You will, however, be able to
find any number of sales of baseball equipment at the end of the summer.
Whatever the form of price reductions, they are frequently risky for sports
organizations for a number of reasons. First, consumers may associate multiple price
reductions with inferior product quality. Second, consumers may associate price
reductions with price gouging (always selling products at a discount so the initial price
must be unreasonably high). Third, price reductions may wake a sleeping dog and
cause competition to counter with its own price decreases. Finally, frequent price
changes make it more difficult for the consumer to establish a frame of reference for
the true price of sports products. If tennis balls regularly sell for $4.99 for a package
of three, and I conduct three sales over the season that offer the balls for $2.99, then
what is the perceived “real” price?
An important concept when making price adjustments (either up or down) is known as
the just noticeable difference (JND).14 The just noticeable difference is the point at
which consumers detect a difference between two stimuli. In pricing, the two stimuli
are the original price and the adjusted price. In other words, do consumers perceive
(notice) a difference when prices are increased or decreased? The following examples
illustrate the importance of the just noticeable difference.
Dick’s Sporting Goods may sell Wilson softball gloves at a regular price of $49.99
(note the psychological price strategy of odd pricing being used). With softball season
right around the corner, Dick’s decides to reduce prices and sell the gloves for $44.99.
12
Does this $5 reduction surpass the difference threshold? In other words, does the
consumer believe there is a noticeable difference between the regular price and
the sale price? If not, then the price reduction will not be successful at stimulating
demand.
531
Suppose that because of the increasing cost of raw materials needed to produce
the gloves, the price has to be increased from $49.99 to $54.99. Again, the sports
marketer has to determine whether consumers will notice this increase in price. If not,
then the price increase may not have negative consequences for the sale of Wilson
softball gloves.
Price discounts
Combined with straight price decreases, price discounts are other incentives offered
to buyers to stimulate demand or reward behaviors that are favorable to the seller.
The two major types of price discounts that are common in sports marketing are
quantity discounts and seasonal discounts.
Quantity discounts reward buyers for purchasing large quantities of a sports
product. This type of discounting may occur at all different levels of the channel of
distribution. Using the previous softball glove example, Wilson may offer a quantity
discount to Dick’s Sporting Goods for sending in a large purchase order. Consumers
hope that Dick’s Sporting Goods will pass the savings on to them in the form of price
reductions. The purchase of group ticket sales is another common example of quantity
discounts in sports marketing.
Seasonal discounts are also prevalent in sports marketing because of the nature
of sports. Most sports have defined seasons observed by both participants and
spectators. Seasonal discounts are intended to stimulate demand in off-peak
periods. For example, ski equipment may be discounted in the summer months
to encourage consumer demand and increase traffic in skiing specialty stores. Ski
resorts also frequently offer seasonal deals. For instance, the Hunter Mountain
Ski Resort in New York offers multiple value passes each season. From March 1–
May 2 they offer a discount package for $229; full season packages purchased in
September providing unlimited skiing and riding on non-holiday midweek days are
offered at $349. It also includes a 30 percent discount on weekend and holiday
dates during the season.15
Web 12.1 Loveland Ski may use seasonal discounting

Source: http://skiloveland.com
532
In addition to sporting goods, seasonal discounts are often offered for ticket prices
to sporting events. The former Kroger Senior Classic (Champions Tour golf) event
provided discounts for customers purchasing tickets in advance during the winter
months for this summer event. The Holiday Badge promotion allowed consumers to
purchase an all-week ground badge for $55 and get the second one free.
Summary sports products. For instance, consumers

expect to pay higher prices (and are
The pricing of sports products is charged higher prices) when purchasing
becoming an increasingly important tennis equipment from a pro shop
element of the sports marketing mix. versus directly from the manufacturer.
Price is a statement of value for a sports Product decisions are also highly related
product, and understanding consumers’ to pricing. Simply, price is used to signal
perceptions of value is a critical product quality. Generally, the higher the
determinant of pricing. Value is defined price that is charged, then the greater the
as the sum of the perceived benefits perceived quality of the product is.
of the sports product minus the sum
Two distinct pricing strategies that
of the perceived costs. The perceived
emerge based on the emphasis of
benefits of the sports product, or what
marketing mix elements are price and
the product does for the user, are based
nonprice competition. As the name
on its tangible and intangible features.
suggests, nonprice competition tries to
Each consumer’s perception of value is
establish demand for the sports product
based on his or her own unique set of
using the marketing mix elements other
experiences with the sports product.
than price. Price competition, however,
A variety of factors influences the pricing attempts to stimulate demand by offering
decisions for any sports product. Similar lower prices.
to the internal and external contingencies
In addition to other marketing mix
that affect the strategic sports marketing
variables, costs play a major role in
process, pricing influences can be
pricing decisions. Costs are those factors
categorized as internal or external factors.
that are associated with producing,
Internal factors are those under the
promoting, and distributing the sports
control of the sports organization, such
product. The total cost of producing and
as the other marketing mix elements,
marketing a sports product is equal to
cost, and organizational objectives.
the sum of the total fixed costs and the
External factors are those factors beyond
total variable costs. The fixed costs, such
the control of the sports organization
as players’ salaries, do not change with
that influence pricing. These include
the quantity of the product consumed,
consumer demand, competition, legal
whereas variable costs change as a result
issues, the economy, and technology.
of the quantity of the product being
Marketing mix elements other than consumed. Today, the costs of running
price must be carefully considered when a professional sports franchise are
determining the price of the sports
product. Promotional mix elements
(e.g., advertising and sales promotions)
skyrocketing because of players’ salaries.
A final internal factor that influences
12
pricing is organizational objectives. The
often communicate the price (or price
four types of pricing objectives include
reductions) of the sports product to
income, sales, competitive, and social
consumers. The channel of distribution
objectives. Typically, a combination of
that is selected influences the price of
533
these four objectives is used to guide prices to fluctuate subject to market
pricing decisions. forces. The phase of the economic
External factors, which are beyond cycle is another important consideration
the control of the organization, include in pricing. During periods of inflation,
consumer demand, competition, legal prices may rise to cover the higher
issues, the economy, and technology. costs, and during periods of recession,
Demand is the quantity of a sports prices may be lowered. Finally, advances
product that consumers are willing to in technology are related to pricing
purchase at a given price. Price elasticity decisions. Typically, consumers are
measures the extent to which consumer willing to, and expect to, pay more for
purchasing patterns are sensitive to “high-tech” sports products. However,
fluctuations in price. For some sports this is not always the case, as sometimes
products, such as a ticket to the Super technological change can reduce pricing
Bowl, demand is relatively inelastic, by facilitating marketing of the sports
which means that changes in price product.
have little impact on game attendance. Once the price of the sports product
However, when demand is elastic, small has been determined, adjustments
changes in price may produce large are constantly necessary as market
changes in quantity demanded. Sports conditions, such as consumer demand,
marketers try to estimate the demand for change. Price reductions or increases
products by examining consumer trends are used to reach pricing objectives that
and tastes, determining the number of have been determined. Generally, price
substitute products, and looking at the reductions are used to help achieve
income of the target market. sales and market share objectives,
One of the most critical factors in whereas increases are used to keep up
determining pricing for sports products is with rising costs. Regardless of whether
to examine the prices charged for similar adjustments are made to raise prices or
products by competing firms. Most lower prices, an important consideration
professional sports franchises operate in in pricing is the concept known as the
a monopolistic environment in which no JND, or just noticeable difference. The
direct competitors exist. Because of this JND is the point at which consumers
market condition, the price of attending can detect a “noticeable” difference
professional sporting events is continually between two stimuli – the initial price
increasing. In fact, many “average” fans and the adjusted price. Depending on the
believe they are being priced out of the rationale for price adjustments, sports
market and can no longer afford the cost marketers sometimes want the change
of admission. In addition to competition, to be above the difference threshold (i.e.,
laws influence the pricing structure consumers will notice the difference) and
for sports products. For example, the sometimes it will be below the difference
Sherman Act was designed to protect threshold (i.e., consumers will not notice
freedom of competition, thereby freeing the difference).
Key terms X consumer income X economy

X consumer pricing X elastic demand
X availability of substitute evaluation process X estimating demand
products X consumer tastes X expected price range
X competition X cost of information of substitute products
X competitive objectives search X external (or
X consumer demand X costs environmental) factors
534
X fixed costs X nonprice competition X price reductions
X income objectives X oligopoly X pure competition
X inelastic demand X organizational X pure monopoly
X internal factors objectives X sales objectives
X just noticeable X perception of value X situational factors
difference (JND) X price X social concern
X law of demand X price adjustments X technology
X legal issues X price competition X total cost
X marketing mix variables X price discounts X unitary demand
X mob effect X price elasticity X variable costs
X monopolistic X price increases X quantity discounts
competition X price inelasticity X seasonal discounts
Review questions 8. Describe, in detail, how sports

marketers estimate the demand
1. Define price, perceived value, and for new and existing sports
perceived benefits. What is the products. What are the three
relationship among price, value, and demand factors, and which do
benefits? you believe is the most critical in
2. Discuss the advantages and estimating demand?
disadvantages of personal seat 9. What laws have a direct impact on
licenses from the consumer’s pricing? Briefly describe each law.
perspective and the sports 10. How do advances in technology
organization’s perspective. influence pricing? How does the
3. Outline the internal and external economy influence pricing decisions?
factors that affect pricing decisions. 11. Describe the different types of
What is the primary difference competitive environments. Why
between the internal and external is competition considered one of
factors? the most critical factors influencing
4. Provide examples of how the pricing?
marketing mix variables (other than 12. What are the risks associated
price) influence pricing decisions. with reducing the price of sports
5. Define fixed costs and variable products? Describe two common
costs and then provide several types of price discounting.
examples of each type of cost in
operating a sports franchise. Do you Exercises
believe costs should be considered
controllable or uncontrollable factors 1. Interview five consumers and ask
with respect to pricing? them, “If a new athletic complex
6. What are the four organizational was built for your college or
objectives, and how does university basketball team, would
each influence pricing? Which
organizational objective has the
greatest impact on pricing?
you be willing to pay higher seat
prices?” Summarize your results
and discuss the findings in terms
12
7. What is meant by the law of of perceived value and perceived
consumer demand? Explain the benefits.
difference between elastic and 2. Interview five consumers and ask
inelastic demand. them to describe a sports product
535
they consider to be of extremely purchase the product at a lower price
high value and one they consider to over the Internet?
be of extremely poor value. Why do 3. Using the Internet, find an example
they feel this way? of price bundling sports products.
3. Find two examples of sports 4. Using the Internet, find an example
products you consider to compete of product line pricing for the
solely on the basis of price. Provide pricing of a sponsorship package
support for your answer. (i.e., sponsorship levels at different
4. For any professional sports franchise, prices).
provide examples of how the rest of 5. Searching the Internet, find an
its marketing mix is consistent with example of a sports product that
its pricing. uses prestige pricing. Comment
5. Provide two examples of sports on the construction of the Web
organizations that have (either in site itself. Is it consistent with the
whole or in part) a social concern prestige pricing?
pricing objective.
6. Interview five people to determine Endnotes
whether demand could be 1 Robert B. Cialdini, Richard J. Borden,
characterized as elastic or inelastic Avril Thorne, Marcus R. Walker, Stephen
for the following sports products: Freeman, and Lloyd R. Sloan, “Basking
season tickets to your favorite in Reflected Glory: Three (Football)
Field Studies,” Journal of Personality and
basketball team’s games, golf Social Psychology, vol. 34, no. 3 (1976),
lessons from Greg Norman, and Nike 366–375.
Air Jordans. 2 Valarie Zeithaml, “Consumer Perceptions of
7. Provide examples of how technology Price, Quality, and Value: A Means-End Chain
Model and Synthesis of Evidence,” Journal
has increased the ticket prices of Marketing, vol. 52 (1988), 2–21.
of professional sporting events. 3 http://www.forbes.com/sites/
Support your examples from a cost mikeozanian/2013/11/25/the-nhls-most-
perspective. valuable-teams/; http://www.forbes.
com/sites/mikeozanian/2013/08/14/
8. Interview the organizer of a local the-most-valuable-nfl-teams/
or neighborhood road race (e.g., 5k 4 Kurt Foss, “NCAA March Madness 2004:
or 10k) and determine the costs of PDF Hoop Dreams.” Planetpdf.com
staging such an event. Categorize (April 14, 2004). Available from: http://
www.planetpdf.com/enterprise/article.
the costs as either fixed or variable. asp?ContentID=596.
Assess the role of cost in the price 5 Frederick Wiseman and Sangit Chatterjee,
of the entry fee for participants. “Team Payroll and Team Performance
in Major League Baseball: 1985−2002,”
Economics Bulletin, vol. 1, no. 2 (2003),
Internet exercises 1−10.
6 National Sporting Goods Association
1. Using the Internet, find three (NSGA), “Insights” (June 2014). Available
examples of promotions for sport from: http://archive.constantcontact.
products that provide consumers com/fs119/1101981701899/
archive/1117660475100.html, accessed June
with pricing information. 24, 2014.
2. Find an example of a sports product 7 http://www.marketingpower.com/
that is being sold via the Internet AboutAMA/Pages/DefinitionofMarketing.
for a lower price than offered via aspx. Credit: American Marketing
Association
other outlets. How much cheaper 8 Goodreads Inc. (2014). Available from:
is the sports product? What does https://www.goodreads.com/author/
the consumer have to give up to quotes/25181.David_Ogilvy, accessed June
25, 2014.
536
9 Rudy Martzke, “SET Expects Pay-Per-View 13 Erik Spanberg, “Bobcats Raise, Lower
Recordbreaker,” USA Today (1996), 2C. Ticket Prices,” Charlotte Business Journal
10 Johnny Ludden, “Spurs Mailbag: For Right (January 14, 2011). Available from: http://
Price, Watch Parker Hog Ball up Close,” www.bizjournals.com/charlotte/blog/queen_
Spurstalk.com (April 12, 2006). Available city_agenda/2011/01/higher-prices-for-some-
from: http://www.spurstalk.com/forums/ bobcats-fans.html?page=all.
showthread.php?t=55121. 14 BusinessWire. (2010. “Atlanta Hawks,
11 “Coast to Coast – Chicago,” Street & Atlanta Thrashers, Houston Rockets
Smith’s Sport Business Journal (March and Utah Jazz Select Qcue to Power
12, 2007). Available from: http://www. Dynamic Ticket Pricing,” Businesswire.
sportsbusinessdaily.com/Journal/ com (August 16, 2010). Available from:
Issues/2007/03/20070312/Coast-To-Coast. http://www.businesswire.com/news/
aspx, accessed June 25, 2014. home/20100816005210/en/Atlanta-Hawks-
12 “Press Release: Mets Reduce Ticket Prices Atlanta-Thrashers-Houston-Rockets-Utah.
for 2011,” New York Mets (November 15 Huntermtn.com (2014), http://www.
3, 2010). Available from: http://newyork. huntermtn.com/huntermtn/tickets-passes/
mets.mlb.com/news/press_releases/ season-passes.aspx, accessed June 25,
press_release.jsp?ymd=20101103&content_ 2014.
id=15970796&vkey=pr_nym&fext=.jsp&c_
id=nym, accessed June 25, 2014.
12
537
PART IV
Implementing
and Controlling
the Strategic
Sports Marketing
Process
CHAPTER 13
Implementing and
controlling the strategic
sports marketing process
• Describe how the implementation phase of the strategic sports
marketing process “fits” with the planning phase.
• Explain the organizational design elements that affect the
implementation phase.
• Identify the general competencies and the most important skills
that effective sports marketing managers possess.
• Describe the basic characteristics of total quality marketing
(TQM) programs and how TQM might be implemented in sports
organizations.
• Identify some of the guidelines for designing reward systems.
• Define strategic control and how the control phase of the strategic
sports marketing process “fits” with the implementation phase.
• Explain the differences among planning assumption control,
process control, and contingency control.
13 Implementing and controlling strategic sports marketing
DEW ACTION SPORTS TOUR
Challenge and value to the event sponsors,

NBC’s Dew Action Sports Tour while maintaining the integrity of
was a start-up property and didn’t the overall Dew Action Sports Tour
have any type of branding or brand.
visual identity in place. After a
Results
highly competitive agency review,
The Tour has an integrated look
the Dew Action Sports Tour chose
that makes any event or sports icon
Active Imagination to develop the
instantly recognizable as belonging
look and feel for the entire property,
to the Dew Action Sports Tour.
including logos for the events,
Fan response to the brand has
sports and the tour itself, as well
been positive, and event sponsors
as marketing collateral, on-site
and promotional partners are also
branding at the events and brand
enthusiastic about the design.
usage guidelines.
“Active Imagination’s team is
Solution
creative and meets tight deadlines,
Active Imagination performed
but more importantly, Active
extensive market research at skate
Imagination’s team understands
parks, surf shops, concerts and
that with three different sports, the
other venues that attract the Dew
Dew Action Sports Tour has diverse
Action Sports Tour’s target market.
audiences that must be considered
Using the results of this research,
in any element of our creative
Active Imagination designed the
needs. In other words, Active
green and black Dew Action Sports
Imagination can think strategically.”
Tour logo, as well as alternate
– Ethan Green, Senior Director of
logos and individual sports logos,
Marketing, Dew Action Sports Tour
and established guidelines for their
use. After creating the Tour’s visual Source: http://marketingforsports.com/
brand, Active Imagination developed content 393.html.
logos and icons for each individual
event that provided recognition
The opening scenario presents an excellent example of how sports organizations

operate in uncertain and changing conditions. Moreover, sports organizations
must consider the internal and external environments and formulate a plan that
achieves a “fit” with these environments. The strategic sports marketing process
is ultimately directed toward the achievement of the organization’s mission, goals,
and objectives. The contingency theory of sports marketing suggests that there
are a variety of marketing plans that can achieve these goals. However, not all
these plans are equally effective. Likewise, organizations have a variety of ways to
implement and control the strategic sports marketing plan they have developed,
all of which are not equally useful for putting the plan into action. Thus, sports
marketers should allocate the time and effort necessary to develop a program that
will lead to the desired outcomes and most effectively implement and control the
planning process.
542
The remainder of this chapter looks at the last two phases of the strategic marketing
process – implementation and control. We begin by examining a model of the
implementation process and the organizational design elements that facilitate or
impede the execution of the marketing plan. Then, we shift our focus to the control
phase and look at some of the common forms of strategic control.
Implementation
Implementation can be described as putting strategy into action or executing the
plan. As illustrated in the opening scenario, the Dew Tour’s goal of enhancing the
brand can be achieved with proper planning. However, none of these plans matters
unless the Dew Tour continually monitors the implementation process to make sure
plans are being carried out in the correct manner.
To successfully manage the implementation process, the sports marketer must
consider a number of organizational design elements. These organizational design
elements include communication, staffing, skills, coordination, rewards, information,
creativity, and budgeting. Implementation must begin with communication.
Effective communication requires a leadership style that allows and encourages
an understanding of the marketing plan by all members of the sports marketing
team. A second critical element involves staffing and developing the skills in those
people who are responsible for carrying out the plan. These people must also be
placed within the organization so they can work together to implement the plan,
thus a third critical design element is coordination. Rewards that are congruent
to the plan can provide the motivation and incentives necessary for people to
work effectively toward the achievement of the goals and objectives outlined
within the plan. Information must be available to those people who will carry
out the plans so effective decisions can be made throughout the implementation
phase. Effective work environments also allow for and encourage creativity from
individuals who are expected to find ways to carry out the strategic marketing plan.
Finally, a supportive budgeting system is critical to the successful achievement
of strategic goals and objectives. These seven organizational design elements of
implementation and their relationship to the strategic sports marketing process are
outlined in Figure 13.1.
Each of these seven elements must be carefully considered within the strategic
marketing process by the sports marketing manager. The implementation design
must be appropriate for the plan. In other words, a “fit” between the planning phase
and the implementation phase is required. Thus, a change in the strategic marketing
plan of a sports organization could lead to the need to make changes in one or more
of these design elements. As you read the accompanying article on the critical issues
impacting the Arena Football League,1 think about what design elements could have
been changed to enhance the league endeavors.
13
543
Planning phase of the

strategic sports
marketing process
Staffing
Communication and skills
Fit
Implementing phase
of the strategic Budgeting
Coordination
sports marketing
process
Creativity Motivating
and rewarding
Marketing
information
systems
Figure 13.1 Implementation phase of the strategic sports marketing process
BUSY OFFSEASON AHEAD FOR ARENA FOOTBALL

LEAGUE: FAN TAKE
With the dust settling on the Silver terms are, so I’m not popping the
Anniversary season of the Arena cork on any champagne just yet.
Football League, several challenges A deal has got to get done, though.
lie ahead for the league in the The already-dwindling fan base can’t
offseason. Near as I can tell, here are take another season of uncertainty,
the major ones. replacement players, forfeits, and lost
live coverage on the NFL Network.
Labor issues
The labor issues that wreaked havoc How many teams return?
on the 2012 season have been The specific terms of any labor deal
resolved, if Ivan Soto, executive that’s reached are likely to impact
director of the Arena Football League how many of the 17 teams return to
Players Union (AFLPU), is to be the Arena Football League in 2013.
believed in his tweet from Aug. 19. Already, rumors are swirling among
“It is official! We have a 5yr deal!” he fans as to who will be back and
announced. who won’t return next season, for a
Of course, arena football fans variety of reasons.
have heard this song and dance AFL commissioner Jerry B. Kurz
before, and the league office has yet made indirect reference to the
to announce anything about a deal potential that some teams may
being reached or what the specific not return next year in his Aug. 9
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letter to fans. An upcoming owners’ (cough, cough . . . INDIANAPOLIS

meeting will likely address this issue, . . . cough, cough) who would love a
according to Kurz’s letter, and when developmental team and just want to
teams can start signing players in know where to set expectations.
September, fans will get a better
International play
indication as to who may or may not
Replacing the buzz about a
be part of the league.
developmental league has been the
My hope is that the league handles
buzz about international play. Openly
things differently than it did when the
discussed at the Silver Anniversary
Dallas Vigilantes vanished without
Gala Event right before ArenaBowl
a trace after the 2011 campaign.
XXV, the league is quite interested
Silence is not golden in that kind of
in tapping into the international
situation, and if teams are leaving, I’d
market – specifically, China and its
rather just know upfront.
population of over 1.3 billion.
Developmental league? Given Ron Jaworski’s excitement
Back in May, Kurz announced during at the gala event about international
Arena Football Friday that the league play and what I heard players and
is bringing back a developmental fans discussing while I was in New
league, which I found to be a very Orleans for ArenaBowl XXV, my
exciting prospect for a number of money is on the Philadelphia Soul as
reasons. The buzz surrounding that one of the teams that is likely to be
idea kind of died out as the season taking the game to China in the form
progressed, however, and I’m left of an exhibition game or two.
wondering if that’s something that The concept of international play
the AFL is still going to pursue. is exciting and scary at the same
Again, the owners’ meeting time. I certainly understand the
will probably shed some light on desire to expose the sport to the
this concept. Perhaps some of the most populated country in the world
current AFL teams will choose to (although road trips from Indianapolis
participate as a developmental team, to Beijing to cover games there might
instead. Perhaps some teams from be a little lengthy – and wet – but
other indoor leagues would join that’s my problem, not the league’s).
a developmental league. Perhaps But a part of me also thinks that
it’s too much to expect that a we’re on pretty shaky ground right
developmental league can get up and now in the U.S., so maybe now’s
running by 2013, and that it’s more of not the greatest time to be footing
a long-term goal. the bill for trips to China. Maybe
As with any scenario in which we should get things squared away
one or more teams leave the AFL stateside before we try expanding to
next year, it would be nice to international markets.
hear from the league one way or Again, though, the owners know
the other about the plans for the their financial situation better than
developmental league, even if it’s I do, and I’m sure they’ll hash this
not going to happen in 2013. If it idea out at their meetings. In what is
has turned into more of a long-term becoming an ongoing theme here, I
thing, that’s cool. Just let us know, simply hope that the league keeps us
please, as there are some rabid fans
in some large metropolitan areas
fans informed as things progress.
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545
Schedule On the back end, the ArenaBowl

A couple of recent events lead me to wouldn’t conflict with any NFL
believe that the AFL may consider preseason games, and we wouldn’t
altering the 2013 schedule – perhaps be playing our championship game
starting the season earlier and/or into the wee hours of the morning for
shortening the season. much of the country.
The first was the NFL Network’s
Wait and see
decision to delay broadcast of
I’d love to be a fly on the wall
ArenaBowl XXV until the ridiculous
for these owners’ meetings, but
hour of 10:30 p.m. ET so that the
something tells me that I can wait by
Tim Tebow worshippers of the
my mailbox for an eternity and my
world could watch him play backup
invitation will never arrive. Oh well.
quarterback for the New York Jets
It’s probably not the best place for
for the first time (he finished with
a fan to be, anyway, if any league
a dismal 18.2 QB rating, in case
business is to be done.
you’re wondering, and his Jets were
So I’ll join the rest of AFL fandom
stomped by the Cincinnati Bengals).
and just wait to see how things shake
The second was the news that
out. The owners have a lot on their
renovations to New Orleans Arena
plates this offseason – and probably
are going to mess up the 2013
even more that I’m not aware of – so
schedule of the New Orleans VooDoo.
there’s no point in getting antsy in
Among the options cited by Kurz
anticipation of how everything will be
for working around this hurdle are an
resolved.
earlier start time – Kurz mentioned
Arena fans know that patience and
the possibility of starting the week
flexibility are required in buckets in
before the Super Bowl – or front-
this league. It’s just the way things
loading the VooDoo’s home schedule.
are. I’d much rather wait and hear
Sources close to the VooDoo have
from the league when something
told Paul Murphy of WWLTV.com that
is official than give myself an ulcer
the teams is also considering playing
anguishing over what may or may
home games in alternative sites such
not happen regarding any number of
as Baton Rouge, Biloxi, Bossier City,
things that are important to me.
and Lafayette.
Please, AFL, just don’t leave us fans
Given the trouble that the league
in the dark.
ran into this year with Tebowmania,
it might be prudent to just start the Source: Article author: Eric R. Ivie.
season earlier. The VooDoo wouldn’t Rightsholder: Yahoo Sports; http://sports.
have to have their home schedule yahoo.com/news/busy-offseason-ahead-
front-loaded – or at least, not much – arena-football-league-fan-163400668.html.
and they could continue playing at the Reprinted with permission from Yahoo.
location with which fans are familiar. © 2014 Yahoo.
Communication
Effective communication is critical to the successful implementation of the
strategic sports marketing plan. Before we discuss the issues involved in effective
communication, we must understand the importance of having a leader who is
committed to the strategic sports marketing plan. Without such commitment, the
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best communication efforts will be ineffective. The values of the marketing leader and
the President/CEO of the organization not only affect the strategic sports marketing
process, but also the way the plan will be implemented. Strategic leadership requires
a “champion,” someone who believes so strongly in the strategic marketing plan
that he or she can share the “what,” “why,” and “how” with those who will be
responsible for its implementation.
Photo 13.1 Sports organizations often utilize creative marketing strategies to target
consumers.
The commitment of the leader to the plan usually dictates the level of commitment
among those who will carry it out. In addition, different strategies require different
skills, even among leaders. Therefore, when strategy changes, a change in leadership
often follows. That relationship may also be reversed. A change in leadership will
often lead to a change, or at least an adjustment, to the strategy. As illustrated in the
previous article, there is a close relationship between strategy and leadership, and it is
sometimes necessary to bring in outside sports marketers to implement a changed or
new strategy. Organizations will also often bring in someone new when they believe a
new marketing strategy is needed to enhance performance.
Just how important is communication? The results of a recent study indicate that
when selecting a new commissioner/CEO to run a major sports property, being
able to effectively communicate and manage the media was deemed “extremely
important” by 81 percent of the respondents.2 Certainly, the LPGA had this in
mind when they hired their new commissioner, Michael Whan. Unfortunately, the
former commissioner who had come to the job after four years as president of a
media consulting firm in Los Angeles, got off on the wrong foot with the media
at the first tournament of the year, the SBS Open at Turtle Bay. Without warning,
13
547
media representatives showing up to cover the tournament were told they must
agree to restrictive regulations concerning who controlled the images and stories
from the tournaments. Rather than sign, the Associated Press walked out, as did
two weekly magazines that cover the LPGA, Golf World and Golf Week.3 In 2009,
Commissioner Bivens was removed from her position, not because of her lack
of a golf background or the economic downturn, it was as Alan Shipnuck said,
“She stubbornly refused to back down in her demands of so many cash-strapped
corporations, clinging to the belief that this was the last best chance to launch
the LPGA into the big-time. Instead many companies have simply walked away,
resulting in the loss of seven tournaments this year (so far.)” Obviously, all leaders
of business today must be willing to adjust their vision. The tool of communication
is necessary to have all members of the organization working towards success.
Bivens failed early in her attempts at communication and when she needed the
support of the LPGA players there was little goodwill.4 In yet another example,
many often question how FIFA, a federation responsible for managing the affairs
of the world’s most lucrative and popular sport, can be expected to properly
organize and run a quadrennial international soccer competition worth billions
of dollars in revenue when its own leaders can’t even agree in the spotlight?5
Turmoil among the ranks of FIFA’s leaders, prominent as of late, reflects poorly
on the interpersonal communication (or lack thereof) within the organization.
The conversational “methods of delivery” often prove more damaging than
the actual content. The miscommunication might not seem like a big deal upon
initial consideration; however, it’s an understatement that this is not exactly
the professional impression soccer fans might hope to get from the brass of a
federation responsible for managing the affairs of the world’s most lucrative and
popular sport.
As discussed in the FIFA and LPGA examples, organizational leadership sets the
tone for communication within the sports organization. Communication may be
formal or informal and may use a number of different channels. For example, some
organizations may require that all communications be written and meetings be
scheduled and documented. Other organizational leaders may have an informal,
open-door policy and allow for more “spur of the moment” meetings and “hallway”
discussions. Either policy can be effective when it comes to implementing strategy
within the sports organization, as long as the necessary information is clearly and
accurately communicated.
Strategy was once considered a “top-down” only process where those who had
a “big-picture” view of the organization were considered the best candidates
for formulating strategy. This often led to huge communication requirements as
organizational leaders attempted to inform those who had to carry out the strategy
about not only the strategy, but also the rationale for strategic choices made by
the top management. Experience and research has shown that the communication
process is easier when those who are expected to implement the plan are involved
throughout the process. Thus, involving the entire sports marketing team throughout
the strategic sports marketing process can usually be more effective than attempting
to communicate the plan after it has been developed.
Even when everyone responsible for implementing the plan is involved in its
development, strategic sports marketing plans should be communicated often.
Due to the contingent nature of the strategic sports marketing process, plans
and circumstances can change, and people can forget the original plan and the
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basic premise on which the plan was formulated. Employees can learn about or
be reminded about the content and purpose of the plans in a variety of ways. This
information can be communicated in regularly scheduled meetings or at gatherings
where the strategic plan is the primary agenda item. Printed material can also be
useful. Some sports organizations may give employees desk items, such as calendars
or paperweights, with keywords that remind them of the strategy. They may even
program screen savers on computers with words that will remind employees of the
strategic thrust of the marketing plan. Promotional literature that can be displayed
around the office or sent to employees through e-mail is also useful. In essence,
sports marketing organizations that can provide daily reminders of the strategy are
more likely to keep everyone involved on the same strategic path. Many forms of
internal promotion can be used to achieve this goal.
Communication with groups and individuals outside the marketing department is
also important. Many such individuals and groups, both within the organization and
outside the organization, have a stake in the marketing strategy and can have an
impact on the implementation of the plan, and so it is important to inform other
departments within the sports organization who affect or are affected by the strategy
or the strategic marketing direction. For example, many teams and leagues are in the
process of trying to develop long-term relationships with their fans. One of the ways
to build these relationships is to allow fans more access and contact with the players.
At the collegiate level, many universities have implemented Kid’s Clubs offering such
benefits as free admission to events, pizza parties, t-shirts, and access to special
events and clinics. This creative plan can only be executed by communicating its
importance to coaches, members of the teams, and the athletic department as a
whole.
On the professional front, many teams hold an annual fan appreciation day and
preseason fan fests to enhance fan relations. The Tampa Bay Rays, for example,
hold an annual fan fest event prior to the beginning of the baseball season.
Highlights of the event include player meet and greets with autographs, clubhouse
tours, National Anthem auditions, memorabilia, and interactive play areas. Taking it
one step further, the Cleveland Indians have developed a Fan Advisory Council. The
council, comprised of groups of 12 to 14 Indians’ individual ticket buyers and season
ticket holders, meets once per month during the regular season to discuss anything
and everything related to Indians baseball and the Progressive Field experience. Of
course, the ownership hopes this will help curb a slide in season-ticket sales too.
All of these activities contribute to strengthening the team–fan relationship, but as
shown in Table 13.1, neither of these teams is among the top fifteen in professional
sports.
As with internal promotion, external promotion and communication of the
strategic sports marketing plan can take many forms. Some channels for these
communications include social media and the utilization of Web sites, annual reports,
mailers, marketing specialties such as calendars, or meetings. Again, the key to
effectively communicating to outside or inside groups is committed and competent
leadership. It is with this leadership and effective communication efforts that the
foundation for successful implementation of the strategic sports marketing plan is
provided.
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549
Table 13.1 Stadium experience rankings of professional sports teams
1. Memphis Grizzlies
2. San Antonio Spurs
3. Indiana Pacers
4. Oklahoma City Thunder
5. Green Bay Packers
6. Arizona Diamondbacks
7. Pittsburgh Penguins
8. Anaheim Ducks
9. Ottawa Senators
10. Baltimore Ravens
11. Cincinnati Reds
12. St. Louis Cardinals
13. Detroit Red Wings
14. Chicago Blackhawks
15. Denver Broncos
16. Seattle Seahawks
17. Tampa Bay Rays
18. Indianapolis Colts
19. Texas Rangers
20. Atlanta Falcons
21. Houston Texans
22. Detroit Tigers
23. Atlanta Braves
24. Los Angeles Kings
25. Miami Heat
Source: ESPN.com

Gary Davidson
Gary Davidson was once called virtual monopoly held on talent by

the man who has had the greatest the existing NBA, NHL, and NFL
impact on professional sports in franchises, Davidson attracted stars
America. A former lawyer, Davidson such as Wayne Gretzky, Bobby Hull,
founded and served as president of “Dr. J.” Julius Erving, and Rick Barry
the American Basketball Association to play in his rebel leagues. Davidson
(ABA), the World Hockey Association and his leagues are also credited
(WHA), and the World Football with some major rule changes that
League (WFL) in the late 1960s and subsequently were adopted by the
early 1970s. existing professional leagues. For
These leagues, of course, offered instance, the three-point shot was
alternatives for professional created to add excitement to the ABA
athletes that would have never and has changed the entire course of
existed otherwise. By breaking the modern basketball.
550
In addition to his ambush his original ABA teams that are

marketing tactics, Gary Davidson now successful NBA franchises.
broadened the scope of Davidson’s leagues have benefited
professional sports. He placed the fans, the players, and major
professional franchises in cities league sports.
that were previously considered
too small to support major league Source: Steve Rushin, “Gary Davidson,”
sports. For example, San Antonio Sports Illustrated (September 19, 1994),
and Indianapolis were two of 145. Courtesy of Time, Inc.
Staffing and skills

As we just discussed, it is critical to the success of the strategic sports marketing plan
to have a leader who can “champion” and communicate the strategy. As important
as the leader is to effective implementation, it is equally important to have a staff that
cares about and is capable of implementing the strategy. A group of individuals must
be assembled who have the appropriate mix of backgrounds, experiences, know-how,
beliefs, values, work and managerial styles, and personalities.
It is important to consider strategy prior to hiring and training new employees and
in retraining those who are already with the marketing team. This is especially vital
in managerial or other key positions. However, staffing for the implementation of
strategic sports marketing plans must go much deeper into the organizational ranks.
In fact, putting together an effective marketing team is one of the cornerstones of the
implementation process.
A few studies have examined the relationship between types of strategy and
staff characteristics. One study of corporate executives and their perceptions
regarding the relationship between managerial characteristics and strategy offered
two interesting findings.6 First, experience and exposure to a particular type of
strategy has been viewed by corporate executives as being essential for managers.
Previous experience and exposure to a strategy can provide an opportunity for
these experienced individuals to provide important input into the implementation of
the plan. However, the second finding suggests that a “perfect match” between
managerial characteristics and strategy is likely to result in an overcommitment to
a particular strategy. In other words, managers may not be able to change strategic
direction when contingencies change if they are perfectly matched in education,
training, experience, and personality to one particular strategy. These findings may be
particularly relevant for sports organizations. Because sports organizations operate in
changing, uncertain, and unpredictable environments where the internal and external
contingencies can change frequently, staffing must consider the capacity for change
among employees.
To develop a staff capable of implementing the strategy, three categories of
characteristics must be considered: education, training, and ability; experience and
previous track record; and personality and temperament. With any team-building
activity, it is important to consider the compatibility of the individuals who will work
together to implement the strategic sports plan.
Just what skills are necessary to land and keep your dream job in sports marketing?
13
The answer to this question is best addressed in two parts. First, what knowledge
551
Web 13.1 Sports careers on the Web

Source: http://www.teamworkonline.com
is required for an individual to be successful in all sports management positions?

In other words, what are the foundation skills for a successful career? Second,
what are the marketing-specific core competencies of the sports marketing
manager?
In addressing the first question, the general competencies necessary for all sports
marketing management careers include being able to:7
X Direct the work effort of people or groups of people.
X Interrelate with the community.
X Negotiate to arrive at a solution to a problem.
X Function within a specified budget.
X Use supervision techniques.
X Evaluate the results of your decisions in light of work objectives.
X Self-evaluate employees’ job performance.
X Use problem-solving techniques.
X Interpret basic statistical data.
X Speak before large audiences.
X Apply the knowledge of the history and evolution of sport into the structure of
today’s society.
X Appreciate the psychological factors that pertain to an athlete’s performance and
attitude on the playing field.
These general skills are required of all sports marketing managers to some extent,
but what about more specific marketing skills? This question was posed to sports
marketing professionals employed in sports marketing firms, amateur sports
organizations, professional sports organization, and college athletics. The results of
this study are presented in Table 13.2.
Remember, changes in strategy may lead to modification of the staff and skill
base. Thus, employee training and retraining is often an important part of the
implementation process. As strategy is developed and the implementation plan
formulated, sports marketers must consider not only new staffing needs, but
also new skill needs. Training and retraining programs should be designed and
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Table 13.2 Most important skills for sports marketing managers
Presented in rank order where 1 is the most important skill and 20 is the least important skill
1. Establish a positive image for your sporting organization.
2. Achieve sponsors’ promotional goals.
3. Stimulate ticket sales.
4. Maximize media exposure for events, athletes, and sponsors.
5. Acquire sponsors through personal contacts.
6. Maintain good relations with community, authorities, and partners.
7. Acquire sponsors by formal presentations.
8. Develop special promotions.
9. Improve budget construction.
10. Negotiate promotion contracts.
11. Evaluate sports marketing opportunities and performance.
12. Design and coordinate content of events.
13. Coordinate press coverage of events.
14. Create contracts.
15. Provide corporate hospitality of events.
16. Build public image and awareness of athletes.
17. Schedule events and facilities.
18. Establish event safety factors.
19. Build rapport with editors, reporters, and other media reps.
20. Buy and resell media rights.
Source: Peter Smolianov and David Shillbury, “An Investigation of Sport Marketing Competencies,
Sport Marketing Quarterly, vol. 5, no. 4 (1996), 27–36.
included in the implementation plans so the staff is prepared to implement the

new or modified strategy. Until all the staff and skills are in place, it is unlikely that
the sports organization can proceed with the successful implementation of the
marketing plan.
Coordination
Successful implementation of the marketing plan depends not only on capable and
committed leadership who can effectively communicate internally and externally
and a staff with the necessary skills, but also on the effective organization of those
people and their tasks. Structure helps to define the key activities and the manner
in which they will be coordinated to achieve the strategy. A fit between strategy
and structure has been shown to be critical to the successful achievement of
strategy and the performance of organizations. According to one important study
of organizations, when a new strategy was chosen, a decline in performance was
observed and administrative problems occurred until a new method of organizing
people and activities was put into place. Once the new method was implemented,
organizational performance began to improve, and the strategy was more likely to be
achieved.8 Thus, the strategic marketing plan must dictate how people and tasks are
organized.
One way of coordinating people and tasks in a sports organization is by practicing
some form of Total Quality Management (TQM). Quality improvement programs
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553
CAREER SPOTLIGHT
Megan Dotson, Director of Marketing, Greeville Road Warriors (hockey)
The Greenville Road Warriors are a. Helps increase funds for the
a minor league hockey team in maintenance of the sports
the ECHL and are affiliated with teams
Connecticut Whales and the New b. Helps make people aware of
York Rangers. The Warriors have the various activities of the
only one person working the client sports teams
services and marketing department, c. It’s the primary way to get
Megan Dotson. This differs from sponsorships
major league organizations because d. Sports marketing is
their front offers tend to carry a important simply because
larger amount of staff for individual sports themselves are such
departments. The Warriors key a huge part of American
clients, currently, are New York culture that any marketing
Life, Bi-Lo and Spinx. It is Dotson’s centered around them is
job to keep these clients happy and bound to be a very major
continue developing relationships player in the industry.
with these sponsors in order to keep 3. Can you give me an example
the organization afloat. of one of the most successful
The function of the Warriors forms of sport marketing? The
marketing department is to promote new wave of sports marketers
the Warriors’ games, team and are relying on and will continue
management image, and develop the to rely on social media to help
sponsorships needed to run a smaller market their clients and their
sporting organization. Fan base is an products because of its cost
important part of the marketing done effectiveness and ultimately,
within the Greenville organization its reach. Facebook has over
because the base is smaller than an 250 million users, Twitter has
NHL team would deal with. Dotson over 75 million, Linkedin is at
believes that the need for sport approximately 50 million . . . and
marketing is “important simply you certainly can’t forget myriad
because sports themselves are such of other options; blogging,
a huge part of American culture that MySpace, YouTube, etc. You can
any marketing centered around them effectively market to all of these
is bound to be a very major player in groups.
the industry”. 4. How does marketing sports
differ from marketing other
Interview with Megan Dotson
things (food, clothes, etc.)?
1. What does the word
Sports marketing which focuses
sport mean to you? Fun,
on both the promotion of
competition, lifelong friends,
sports events and teams as
leadership, character building,
well as the promotion of other
and escape.
products and services through
2. What is the need for marketing
sports events and sports
sports from an overall
teams. When it comes to food
perspective?
marketing it brings together the
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producer and the consumer. 9. What do you hope to achieve in

It is the chain of activities that your lifetime from a marketing
brings food from “farm gate standpoint? I want to leave
to plate”. The marketing of an impression on the sports
even a single food product industry with my innovative
can be a complicated process and creative ideas. I also would
involving many producers and like to educate those who are
companies. pursuing the industry and assist
5. Who guided you in the them in their success.
direction of a career in sport 10. If you had one piece of advice
marketing? In what ways did to give an aspiring sport
they do so? My brother’s boss, marketer what would it be? It
Sports Information Director is an area of work that many
at Baldwin Wallace College, people would gladly work in for
introduced me to the field free. Make sure to work hard,
while I was in high school and put in countless hours of work,
was really fascinated with it and think outside of the box to
so I pursued it through college add value for the people that
and previous and current surround you.
positions. 11. What experiences do you have
6. Are there risks involved with that qualify you to be a sport
sport marketing? If yes, what marketer? I have marketing and
were they? Yes, an important sales experience along with
step in understanding and event planning and excellent
managing those risks is communication skills. In
to take time to identify addition, I operate successfully
potential risks that might be in a high-energy environment
encountered. and have the ability to
7. What was one of the worst multitask.
marketing experiences you 12. Who are the key clients of the
have come across thus far? organization? New York Life, Bi-
Those ideas that are put into the Lo, Spinx (as of now these are
public that are not organized, our top clients)
planned out thoroughly or 13. How does the organization
really thought about. They utilize sport marketing? Right
were advertised because it was now we are using our social
crunch time. media outlets, billboards, print,
8. What sport do you like to radio, and grassroots.
market the most? Does this 14. What is your specific role within
sport have an advantage in the organization? My title is
marketing compared to other Client Services and Marketing
sports? I do not have a specific Manager. I handle the Website,
sport that I like to market the game operations, game
most. I have found that I do like presentation, marketing and
to market minor league teams fulfillment of sponsorship and
because it allows me to use my contracts.
creativity more to advertise the
team. 13
555
and practices have become an important and powerful tool for organizations, including
sports organizations.9 Nearly all major corporations and industries in the United
States have adopted some type of quality initiative to meet competitive challenges.
Traditionally, TQM programs have been focused on manufacturing quality. To
manufacturers of sporting goods, quality is likely to mean an excellent consistency of
goods and deliveries made by their suppliers. In a manufacturing environment, TQM
has been primarily concerned with both the counting and reduction of defects and
reducing the cycle time taken to complete any given process.
Even though TQM philosophies originally were used in manufacturing companies,
a large number (69 percent) of service organizations are also using the principles of
TQM. Although the nature of services is vastly different from those of manufactured
products (see Chapter 7), Roberts and Sergesketter argue that the fundamental quality
issues are similar.10 A service organization, like a manufacturing organization, must
concentrate on the reduction of defects and cycle times for important processes. As
such, the philosophies of TQM are just as applicable for sports services as they are for
manufacturing.
Although TQM represents a quality philosophy, there is little agreement as to
what TQM (or quality) actually is and how best to manage the TQM process in an
organization.11 Evans and Lindsay define TQM as an integrative management concept
for continuously improving the quality of goods and services delivered through
the participation of all levels and functions of the organization.12 In addition, TQM
is described as incorporating design, control, and quality improvement, with the
customer as the driving force behind the process.
Although the definitions of TQM may vary on the basis of wording and relative
emphasis, all quality improvement programs share a common set of features or
characteristics.13 These characteristics include, but are not limited to, the following:
1. Customer-driven quality – Quality is defined by customers, and all TQM
practices are implemented to please the customer.
2. Visible leadership – Top management is responsible for leading the quality
charge and places quality above all else.
3. Data-driven processes – All TQM processes are driven by data collection, use of
measurement, and the scientific method.
4. Continuous improvement philosophy – It is always possible to do a better job,
and continual, small changes in improvement are just as critical as an occasional
major breakthrough.
Rewards
As we discussed previously, the execution of strategy ultimately depends on
individual members of the organization. Effective communication, staffing, skill
development and enhancement, and coordination are vital to implementation efforts
and should be planned for and considered throughout the strategic sports marketing
process. Another critical component in the design of an implementation plan is to
provide for motivating and rewarding behavior that is strategy supportive. Thus, a
reward system is a key ingredient in effective strategy implementation.
There is no one “correct” reward system. From a strategic perspective, rewards
must be aligned with the strategy; therefore, the best reward system is contingent
upon the strategic circumstances. These rewards and incentives represent another
choice for management. Thus, reward systems will reflect the beliefs and values of
556
the individuals who design them. However, to successfully motivate desired behavior,
reward systems must consider the needs, values, and beliefs of those who will be
motivated by and receiving the rewards.
Management can choose from several types of motivators, which can be classified on
the basis of three types of criteria. Motivators can be positive or negative, monetary or
nonmonetary, and long run or short run. Some examples include compensation (salary
or commission), bonuses, raises, stock options, benefits, promotions, demotions,
recognition, praise, criticism, more (or less) responsibility, performance appraisals, and
fear or tension.
Experience has shown that positive rewards tend to motivate best in most
circumstances; however, negative motivators are also frequently used by
organizations. Many organizations assume that only financial motivators will lead to
desired behaviors. However, many organizations have obtained great success with
nonfinancial rewards. Typically, a combination of both provides optimal results. Timing
is also an important consideration in motivating performance with reward systems.
Rewards systems should be based on both short- and long-term achievements so that
employees can receive both immediate feedback and yet be motivated to strive for
the longer term strategic goals.
In an interesting twist, some sports owners would like to link their teams’ on-field
performance to salaries. David Gill, former chief executive of Manchester United,
English football’s biggest brand, said he “would like to see players’ salaries more
variable, where they win rewards if we are winning.” His model is not new to some
industry executives, like bankers, but sports is arguably different. Athletes risk
injury and the end of their career every time they run out to play, and also have a
short career span. Unsurprisingly, the sports stars prefer a guaranteed salary to a
performance-related payout.14
In summary, reward systems are critical to the successful achievement of the
strategic sports marketing plan. To be effective, these systems must motivate
behavior that “fits” with and ensures adequate attention to the strategic plan.
Although reward systems are contingent upon the internal and external contingencies
and the specific circumstances around which a sports marketing group must operate,
there are some important general guidelines for developing effective reward systems
(see Table 13.3).
Table 13.3 Guidelines for designing reward systems
1. Rewards must be tightly linked to the strategic plan.

2. Use variable incentives and make them part of the compensation plan for everyone involved in
strategy execution.
3. Rewards should be linked to outcomes that the individual can personally affect.
4. Performance and relationship to the success of the strategy should be rewarded rather than
the position held by the individual.
5. Be sensitive to the discrepancies between top and bottom of the organization.
6. Give everyone the opportunity to be rewarded.
7. Being fair and open can lead to more effective reward systems.
8. Reward success generously – make the reward enough to matter and motivate.
9. Do not underestimate the value of nonfinancial rewards.
10. Be willing and open to adapting the reward system to people and situation changes.
Source: John Pearce and Richard Robinson, Formulation, Implementation, and Control of Competitive
13
Strategy, 5th ed. (Boston: Irwin, 1994).
557
Information
Accurate information is an essential guide for decision making and action, and
necessary for all phases of the strategic sports marketing process. Execution of the
sports marketing plan depends on effective information systems. These systems
should provide the necessary information but should not offer more than is needed to
give a reliable picture of issues critical to the implementation of the strategy.
Reports of information must be timely. The flow of information should be simple,
including all the critical data being reported only to the people who need it. In other
words, reports do not necessarily need wide distribution.
To aid strategy implementation, information reports should be designed to make it
easy to flag variances from the strategic plan. In designing these reports, the critical
questions to ask are as follows:
1. Who is going to need this information?
2. For what purpose will they need it?
3. When do they need it?
The NHL provides an example of a sports organization that enhanced their
ability to implement marketing strategy through an information system.15 One
of the organizational objectives of the NHL was to make better use of emerging
technologies. NHL Commissioner Gary Bettman believes “everything is connected to
everything else” and that the league needs to be a leader in the use of technology to
achieve its goals. Toward this end, the NHL has implemented a program called NHL-
ICE (Interactive Cyber Enterprises), which has developed information systems for the
media, fans, coaches, and players. The NHL-ICE program also includes the design and
content of the NHL Web site, implementing a real-time scoring system that captures
statistics for every hockey game, and integrating network computing solutions into the
marketing of the league’s products and services.
The WWE and ESPN also present another fine example of information driving
strategies. Both have implemented ePrize’s Multi-Channel Platform, a proprietary
interactive marketing technology that enables seamless consumer interaction via
microsite, social networking sites, and mobile devices. The primary feature of the
multi-channel platform includes customizing content so that fans can enjoy special
offers, coupons, and game experiences based on their registration information and
past consumption behaviors. In addition, the platform affords both entities to learn
more about their fans by creating a fan profile through an interactive survey.
Professional teams, such as the Portland Trail Blazers, understand the importance
of information sharing among their stakeholders. The Trail Blazers were the first
NBA franchise to create their own social networking site, marketing to users of
blogs, message boards, and other community fan sites. The Blazers launched
iamatrailblazersfan.com in February 2007, their first team-run social networking site.
The site has assisted in the team’s grassroots marketing efforts while increasing fan
communication.
“If you are pushing information via e-mail and only 20 percent of fans open up the
e-mail, then you want to find a way to spread news about the team in a fast and
effective way,” said Dan Harbison, Senior Director of Digital Marketing and Media for
the Blazers. “Others can leverage sites such as MySpace, Facebook and Twitter, but
the Trail Blazers are not able to sell tickets or sponsors through those sites so they are
looking at what they see as benefits of their own social network.16
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Creativity
The design of the strategic sports marketing plan’s implementation phase is
concerned with putting in place an effective system for executing marketing
programs that will lead to the achievement of goals and objectives developed
by the organization. The premise of this book is that the changing and uncertain
environments in which sports organizations operate often require the need to adjust or
change plans based on changing internal and external contingencies. Innovative plans
and processes are vital to finding a fit with those contingencies. Thus, innovation, in
the context of the strategic sports marketing process, is concerned with converting
ideas and opportunities into a more effective or efficient system.
The creative process is the source of those ideas and, therefore, becomes an
important component in the successful formulation and implementation of strategic
sports marketing plans. Without creative endeavors, innovation is unlikely, if not
impossible. An increase in creative efforts should likewise lead to an increase in
innovative plans and processes.
When we talk about creativity, it is important to consider both the creative process
and the people who engage in that process. The creative process can be learned and
used by virtually anyone. However, some people have more experience with being
creative and more confidence in their ability to be creative than others.
Many organizations can encourage creativity in their employees. This process
of creating and innovating within an organization has been referred to as
intrapreneurship, or corporate entrepreneurship. Intrapreneurial efforts have become
popular as organizations have acknowledged the value of innovation in changing and
uncertain environments. The watchword of today’s businesses, sports organizations
included, is change. As we discussed, innovation is vital to an organization’s ability
to change and adapt to internal and external contingencies. There are two general
steps that can lead to an increase in the number of creative efforts and the resulting
innovations: education and training regarding the creative process, and establishing an
organizational culture and internal environment that encourages creativity.
The creative process

Although creativity is usually associated with promotion, it is important for all
elements of the marketing mix. To be competitive, sports organizations must be
creative in their pricing, in developing new products and services, and in getting new
sports products to the consumer. The first step in increasing creative efforts within a
sports organization is educating employees about the creative process. Creativity is
a capability that can be learned and practiced. It is a distinctive way of looking at the
world and involves seeking relationships between things that others have not seen.
Although they are referred to by different names, there are four commonly agreed-
upon steps in the creative process. They are knowledge accumulation, incubation,
idea generation, and evaluation and implementation.
The knowledge accumulation phase is an often overlooked, but absolutely vital, stage
in the process of creating. Extensive exploration and investigation must precede
successful creations. Because creations are simply putting together two existing
ideas or tangibles in a new way, it is necessary to have an understanding of a variety
of related and unrelated topics. This information gathering provides the creator with
many different perspectives on the subject under consideration. Information can
13
559
be gathered through reading, communication with other people, travel, and journal
keeping. Simply devoting time to natural curiosities can be useful in this stage. The
key is that the more the creator can learn about a broad range of topics, the more
there is to choose from as the new creation is being developed.
In phase two, the incubation period, the creative individual allows his or her
subconscious to mull over the information gathered in the previous stage by
engaging in other activities. The creative effort is dropped for other pursuits. Routine
activities, play, rest, and relaxation can often induce the incubation process. “Getting
away” from the creative endeavor allows the subconscious mind to consider all the
information gathered.
Often, when the creator least expects it, solutions will come. The next stage, idea
generation, is the stage that is often portrayed as the “lightbulb” coming on in one’s
mind. The opportunity for this has been set, however, in the first two phases. As
the body rests from the research and exploration, the subconscious mind sees the
creative opportunity or the “light.”
The last stage, evaluation and implementation, is often the most difficult. It requires
a great deal of self-discipline and perseverance to evaluate the idea and determine
whether it will lead to a useful innovation. Following through with that implementation
is even more challenging. This is especially true because those individuals who are
able to generate creative ideas are often not the ones who can turn those ideas into
innovations. Creators may fail numerous times as they attempt to implement creative
efforts. And as the accompanying article illustrates, sometimes the innovative ideas
that do reach the marketplace aren’t the most welcomed. 17
THE 100 WORST THINGS IN SPORTS

While it continues to be the sole Let’s keep it to Mike Ditka
reason we get up in the morning, the commercials and call it a day.
sports world can annoy and frustrate
99. Length of NBA Playoffs
us to no end. In an effort to embrace
Four rounds, each one a best-of-7,
everything that is wrong with today’s
two months of repetition. The
sports, we’ll tap into the 100 worst
postseason should be short and
things in sports; an encyclopedia of
sweet and doused in glitter.
sports-based mediocrity that will help
Instead, the NBA playoffs runs nearly
to put all of the annoying, frustrating
a third the time of the regular season.
and heartbreaking sites and scents
By the third round, we’re already
into perspective.
pleading for football.
Let’s go to the mattresses and face all
that is wrong with today’s athletics. 98. Touchdown Celebration Fails
There’s an old adage, “act like you’ve
100. Television Timeouts
been there before.” Unfortunately
If we wanted to listen to Progressive
for many athletes, they’ve planned
Flo’s stale humor or State Farm’s
their post-score celebration for so
magic jingle, we’d chuck the
long that when it’s finally time, they
television remote like a normal
crumble to pieces.
person. Instead, after every snap,
Or worse, they forget to cross the
every blown call, every streaking
end zone before dropping the ball
incident, we hear. . .”don’t touch that
(see DeSean Jackson).
dial, we’ll be right back.”
560
97. Suzyn Waldman’s Voice Forget rhythm and bodily routine,

Of all the dramatic things we’ve what the heck are the fans supposed
ever seen, an overweight, overaged to do without one full week of football
pitcher being paid $28 million to pitch during a postseason run?
whenever he pleases sits right up
91. First Down Celebrations
there with Requiem for a Dream and
The only performance more
Michael Jordan’s game-winning shot
distasteful than a touchdown dance
in Game 6 of the 1998 NBA Finals.
is a first-down pose. And for injured
96. NBA Draft Lottery Jets receiver Santonio Holmes, easily
A suspenseful showing every year, the worst of the bunch, first downs
the NBA draft lottery continues to happen so rarely that his cocky
offer ridiculous opportunities to display builds more criticism than fire
teams that likely don’t deserve them. in his teammates.
With the 14th-worst team in the Get up, get back to the huddle and
league able to potentially pick first, keep your hands to yourself.
the effort to make bad teams better
90. Losing Four Straight Super Bowls
remains inefficient at best.
Although making four consecutive
95. Celebrity Shoutouts at Games Super Bowls truly was a miraculous
“It’s the bottom of the sixth, Game achievement for the Bills.
7 of the World Series and, oh look,
89. Mark Cuban’s Arrogance
there’s Larry David, creator of
It was once refreshing, an almost
Seinfeld.” (Drop to the floor in awe)
inspirational act of courage for a fiery
94. Kickers and Punters owner to scream about his team in
Excluding Jay Feely, who not only the stands, toss hateful adjectives at
tackles like a fearless fourth-string opponents and brag about his club.
cornerback but also wears sweat But Mark Cuban’s rich boy act
bands and gloves to look the part. has gotten stale. It hit rock bottom
Otherwise, calling these individuals when the Cubes allegedly bought
football players is a stretch. Nets.com just so that Nets owner
Mikhail Prokhorov, who he lost to
93. Drunk Fans Who Start Fights
in the Deron Williams sweepstakes,
And we’re talking buy-a-vowel drunk.
couldn’t. And then fans realized he
These fiery fans don’t even know
didn’t.
what they’re psyched about, but they
are super stoked and ready to toss 88. Donald Trump Tweeting About
the fisticuffs. Sports
Some fans just can’t handle the Only the most classless individuals
suds, or society. step on a man when he’s down, and
that’s exactly what trolling gillionaire
92. Two Weeks Between Conference
Donald Trump did to Derek Jeter after
Title and Super Bowl
the latter broke his ankle.
Why not just cancel the season,
One day after selling his Trump
or, better yet, save the Super Bowl
Tower apartment, Jeter found himself
for the week before next year’s
injured for the rest of the postseason.
preseason? Two weeks between the
Trump, while likely downing his
conference title and big game is just
as mind-boggling.
morning eggs Benedict with that
day’s blotchy bimbo, was quick to
comment.
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87. Danica Patrick’s GoDaddy *Note: Tossing games is exactly

Commercials the opposite of what Pete Rose did.
As if there’s anything more
82. Walt Clyde Frazier’s Rhymes
frustrating than watching the same
Swishing and dishing, posting and
flirtatious commercials continue to
toasting, banking and thanking, all
lead to nothing.
the Knicks with the knack tonight.
Curiosity keeps dragging us down.
Walt Clyde Frazier has a legendary
86. Annoying People of Fantasy aura about him, and once had a
Football historic poof of hair, but try listening
Fantasy football will have you to this guy every night and you’ll
cheering for kickers, missing your surely be tearing your own poof out.
childhood and going insane. But It don’t mean a thing, if you don’t
heck, it’s the only way to fill deprived have that swing.
weekdays.
81. Random-Lettered Fan Signs
But sometimes players, often
See that sign on the left (ignore the
the most enthusiastic, begin
yellow arrow)? “Zeller & Boys Playing
neglecting their lineups (gasp),
For Banners.” Not only is it an utter
ignoring the league completely
failure grammatically, but it has a
(double gasp) and “forgetting” to
lonesome word without a highlighted
pay (faint). It’s a fast fall for these
letter.
fantasy phonies.
Vertical signs only use the first
85. Linsanity Puns letter, that’s an unwritten rule. Get it
Jeremy Lin’s Lin-derella story was right.
only slaughtered by a surfeit of lin-
80. Icing the Kicker
diculous, lin-conceivable puns.
According to ESPN, “Since 2001
It’s become a lin-ddiction.
(including the playoffs), kickers have
84. LeBron James’ Hairline hit 81 percent of field goals when no
Let’s be honest, sports fans love to timeout was called (36 yards) before
hate on the man dubbed the king of the snap and 76 percent when a
the hardwood. And we’re not hating timeout was called (39 yards)” (not
on the hairline as much as the ever- including overtime).
rising headband. Let’s keep this thing moving, we
There was a time when James can’t take any more television breaks.
wore it appropriately.
79. Fairweather Fans
83. The 1919 World Series Fans who are only seen or heard
Conspired by first baseman Arnold from during times of success can’t be
“Chick” Gandil and supplied by New trusted in the world of sports.
York mobster Arnold Rothstein, The same people who vanish at the
the 1919 World Series fix – dubbed first sign of trouble are the loudest
the Black Sox Scandal – offered a during a golden era. Hats, shirts, box
harsh reality to club owners and the seats, a Super Bowl-guarantee tattoo.
baseball world. Oh the humanity.
The eight members who were
78. The Heidi Game
eventually banned from the game for
Known as the most exciting regular-
life felt underpaid, and had a patent
season game you never saw, the
dislike for penny-pinching owner
November 17, 1968, game between
Charles Comiskey.
562
the AFL rival Raiders and Jets 74. Youth League Parent Fights
featured a riveting comeback and More frustrated with the lack of hugs
plenty of angry would-be, viewers. they got from their parents, little
With only a three-hour time slot for league parents can often become
the game seeming adequate, NBC whirling dervishes in times of stress.
prepared to air the film Heidi (girl in But seeing a coach bullrush a
the Swiss Alps) at 7 p.m. following referee is like a solar eclipse; we
the game. rarely see it, but when we do it’s
Naturally the game was closing always special.
in on three hours when an override
73. Top 35 Rule
of concerned viewers called in
In the Sprint Cup races, the top
to request that the game stay
35 cars in the standings are
on. As a result, the switchboards
automatically excused from
burned out and changes couldn’t be
qualifying; in other words earning
made.
an automatic bid regardless of their
During that blind minute, in which
qualifying time.
the switch had already been made
Almost as lame as the BCS polls.
with the Jets leading 32–29, Oakland
And thankfully, that’s why it’s going
would score two touchdowns and
to be gone come next year.
win 43–32.
72. Lance Armstrong’s Legacy
77. July 11, 2012 (July in General)
The seven-time Tour de France
The day that sports froze, aside from
winner who evidently injected his
insignificant soccer and tennis bouts,
way to the top, Lance Armstrong has
July 11 taught us a powerful lesson;
permanently removed himself from
we need our games.
Eddy Merckx-Fausto Coppi territory.
July is routinely a month that
His unwillingness to admit his
features only baseball, until we’re
faults leaves us feeling like fools for
saved by the Olympics.
ever believing that this testicular
76. Beach Balls cancer-defeating inspiration was
Not that we don’t enjoy a ferocious anything more than a fraudulent
swat once in a while, but having a phony on the track.
random rainbow-colored beach ball
71. Jon Gruden’s Syrupy Broadcasts
hit by a raging soccer mom slam your
As a coach and motivator, the man
garlic fries and over-foamed beer is
is a legend. As a broadcaster, well
an experience worth forgetting.
let’s just say Jon Gruden’s syrupy
On the other hand, when in
presentations are a better fit on top of
Rome. . .(Yes? Please continue. . .)
a stack of pancakes than in the booth.
75. Paul Pierce’s Style of Play Not that we don’t love to see big
Watching Paul Pierce slowly bodies bang as well, Jon.
deteriorate a defense is a frustrating
70. Team Curses
experience for any fan. Dubbed “The
The Cleveland curse of Paul Brown,
Truth,” the longtime Celtic can drain
the Boston curse of the Bambino, the
any triple-covered heave from half
Philly curse of Frank Gifford. Hexes
court and dribble past knowledgeable
remain iconic excuses for mediocrity.
defenders with just a slight shift of
his meaty shoulders.
We’re often left wondering, how?
Blame it on talent, not a curse.
And dare we forget the best of
all, the Chi-town curse of the Billy
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563
Goat? Although, any team that’s title- potential draftees in hopes they’ll
less since 1908 should probably be sign with them. But in the end, how
studying the art of voodoo. can these innocent athletes, still kids,
say no?
69. Collusion
Having a salary cap essentially makes 65. Former Devil Rays Uniforms
the illegal essence of collusion legal. Reeking of ’90s failure, the former
But collusion between owners and Rays jerseys – back when they were
commissioners can have players still deviled – were any graphic
asking questions. designer’s worst nightmare.
And that’s exactly what they did. In 2005, several significant green
Last month, a judge considered suing tweaks were made to the uniform.
the league for conspiring to hold Three years later, the Rays were in
down salary caps in 2010. There are the World Series.
no conspiracies, or coincidences.
64. Anthony Davis’ Unibrow
68. Sabermetrics Some might call it the best thing in
Coined by baseball writer Bill sports and a potential cash cow, but
James, sabermetrics is essentially we see Anthony Davis’ epic unibrow
the overanalyzation of statistics to as a failed fashion statement.
make accurate predictions. It was On the other hand, “The Brow” has
a phenomenal process until A’s a potent ring to it.
general manager Billy Beane began
63. Nyjer Morgan’s Alter Ego
receiving endless fanfare for using
Nyjer Morgan, sometimes known
the intriguing approach.
as Tony Plush, other times as
Beane eventually got his own
Tony Gumble, is one of baseball’s
movie, starring Brad Pitt, but he
strangest personalities.
doesn’t have a World Series ring to
And he’s rarely afraid to educate
his name.
the public on his Plushdamentals.
67. Rush Limbaugh Talking Sports Even though we rarely have any idea
Having Honey Boo Boo’s possible what he’s talking about.
right-wing uncle on the NFL Pregame
62. Tonya Harding’s Defining
Show is as irresponsible as eating
Moment
steak with a spoon. It just doesn’t
Oprah Winfrey once said, “This
work.
story had it all. . .Drama, scandal,
And Rush Limbaugh proved that to
heartbreak, controversy [and]
us when he sparked nearly political
competition.” It also had insanity.
debate surrounding the race issue in
Training for the ’94 U.S. Figure
the league. Fun experiment while it
Skating Championships, figure skater
lasted, fellas.
Nancy Kerrigan was attacked by three
66. NCAA’s Improper Benefits men who crushed her knee with a
Athletes from different crevices of the metal baton. With Kerrigan out, rival
world, some poor, some deprived, Tonya Harding secured victory.
some eager for love, flood college As it turned out, Harding’s ex-
athletics every season. husband Jeff Gillooly and his crew
And boosters can’t help but tempt were the attackers, and Harding
potential recruits and star players was soon convicted of conspiracy to
with gifts. Neither can agents, who hinder prosecution and banned from
toss opportunities and promises at U.S. figure skating for life.
564
61. The Kermit Washington Incident One five-egg omelet. One bowl of
During an on-court scuffle between grits. Three slices of French toast
the Rockets and Lakers in December topped with powdered sugar. Three
of 1977, Rudy Tomjanovich sprinted chocolate-chip pancakes.
toward the fight. Seeing this, Kermit Lunch: One pound of enriched
Washington tossed a roundhouse to pasta. Two large ham and cheese
his opponent’s face. sandwiches with mayo on white
Tomjanovich would drop to the bread. Energy drinks packing 1,000
floor with facial fractures and other calories.
serious injuries, effectively ending his Dinner: One pound of pasta. An
career and almost ending his life. entire pizza. More energy drinks.
60. The New York Jets’ Dynamic 56. Super Sports Agents
Santonio Holmes demanding the Ruthless negotiations and money-
ball, Rex Ryan guaranteeing annual driven thirsts for power; thus is the
Super Bowl victories, cornerback life of a sport super agent.
Antonio Cromartie calling himself an Scott Boras, Drew Rosenhaus,
elite receiver, Mark Sanchez being fictional Jerry Maguire. All these guys
coddled. The dynamic of the Jets had one thing in common: Their client
locker room is not only frustrating was the greatest and deserved the
for NFL fans, but also covered best. . .until a better one came along.
excessively by every channel known
55. Early Running Back Retirements
to man.
A bruising position that demands so
Take a hike Mike Tannenbaum.
much from the human body, starting
Your flashy approach is getting old.
tailback remains the most short-lived
59. Hipster Glasses at Press role in sports.
Conferences Jim Brown, perhaps the greatest
Russell Westbrook often closes in on ever, dominated for nine years
Steve Urkel territory as the hipster (until he was 29) and Barry Sanders,
look becomes a trending fad on perhaps the most elusive ankle-
the professional hardwood. Kevin breaker in history, retired at 30. In
Durant’s backpacks set the tone, and limited time, Brown remains revered
his point guard piled on. as a brutal legend and Sanders
remains third on the all-time rushing
58. Serena Williams’ Anger Problems
list with 15,269 yards.
With the self control of a juiced
special teams linebacker, Serena 54. The Wave
Williams continues to alienate all Better fit for Miley Cyrus concerts
those who were once inspired by her and rollercoaster rides, the all-mighty
unique nature. wave has become a mainstay in
Keep your comments to dull roars, sports arenas around the world. But
please. while it’s a child’s activity, it’s often
the inebriated adults engaging in
57. Michael Phelps’ Diet
such affairs. . .and at the worst times.
Want to swim like Mike? Start eating
Are we watching a game here
like him. . .
or preschool recess? And can we
Breakfast: Three fried-egg
possibly wait until after the final pitch
sandwiches loaded with cheese,
lettuce, tomatoes, fried onions and
mayonnaise. Two cups of coffee.
of the bottom of the ninth, when
you’re back home perhaps?
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565
53. Jay Cutler’s Personality spectacles being specially cleaned by

Chicago gunslinger Jay Cutler is his son-in-law will.
despised by most of the football His glasses aren’t always dirty, but
fanbase at this point. Not because when they are he prefers Jerry wipes.
of his rocket arm or his inability
48. Baylor’s Neon Green Uniforms
to win games, but rather because
Jamie Squire/Getty Images
of his apparent disrespect for his
In an effort to protect your eyes
teammates and coaches.
from the blinding aura, we’ve
Mike Tice was the obvious, heart-
provided a small chunk of Baylor’s
crushed victim during this year’s
neon catastrophes.
game against the Cowboys.
The reflection off the hardwood is
52. Tiger Woods’ Self Control nearly as egregious.
Maybe the greatest ever to swing a
47. Tony Romo’s Ability in the Clutch
golf club, Tiger Woods was once a
No. 9 just can’t catch a break.
role model who could do no wrong,
Surrounded by pressures from fans,
an athletic icon hauling in endless
his owner and over-analytical pundits
cash and endless trophies.
around the sports world, Tony Romo
Until it all came crashing down.
continues to crumble under the
Perhaps getting married was his
blinding spotlight.
greatest mistake.
At least the 32-year-old still throws
51. Colin Cowherd’s Herd a mean pickup line (see Candice
First off, who calls their audience a Crawford).
herd? The hay-and-straw listeners
46. Flopping
aren’t ready to embrace that label.
The disgraceful act of flopping is
Next, as Frank Caliendo properly
also seen on the basketball court,
noted (for the first time we agree
but only in soccer are award-winning
with him), all this guy does is
performances the norm.
reaffirm what he’s already said.
Some actors bide their time by
Cowherd simply clouds us from the
waiting tables, others by dabbling in
awfully boring co-host sitting across
European football.
the way.
45. The Busch Brothers
50. Rich Fans Who Show Up Late to
These trouble-making brothers
Their Great Seats
continue to cause problems in the
When you have elitist seats, you
racing industry.
better show up on time. End of story.
And at the same time, they
The only blockage worse than the
dominate.
wave or a beach ball is a wealthy
couple with no regard for human 44. Fur Coats
life. Enough with the seventh-inning Some can wear the fur, some can’t.
stretch entrances. Many have tried, few have thrived.
This is just Manny being Manny.
49. Jerry Jones
If his yearly proclamations (rather 43. Slovenia’s Football Uniforms
hallucinations) regarding his team’s Tearing a page out of Charlie Brown’s
success and his buy-a-championship playbook, Slovenia football graces
approach weren’t enough to make the pitch with a sharp stripe and stout
you despise Cowboys owner Jerry smile.
Jones, perhaps a visual of his Time for a new look, Peanuts.
566
42. Michael Jordan’s Ability to Find up the courage to say no. Change is
Talent now.
With Kwame Brown and Adam
37. Television Blackouts
Morrison on his resume, Michael
The most frustrating television issue
Jordan’s reputation as NBA owner
known to man, blackouts are the
can never be revived.
cause of most couch-related disputes
Time will tell whether Kentucky
and the single-most hated occurrence
sensation Michael Kidd-Gilchrist can
in American households during
at least save his team’s.
sporting events.
41. Dick Vitale-isms
36. Barry Bonds Coverage
Everything that comes out of Dick
Despised around the sports world for
Vitale’s mouth is questionable,
his chemistry-based destruction of
yet always epic. Although like a
Babe Ruth’s home run record, juicer
weekly overdose of bacon, we need
Barry Bonds remains an anomaly in
to watch our intake if we want to
the sports world.
survive.
He alienated himself and the game
40. Overhyped Amateurs he supposedly loved. Baseball has
On any level it’s ridiculous, moved on from the so-called home
considering the majority of run king.
overhyped – and sometimes over-
35. Malice at the Palace
pressured – young athletes don’t
An on-court scuffle between the
make it (see Todd Marinovich).
Pacers and Pistons in 2004, naturally
We had 13-year-old quarterback
featuring former bad boy Ron Artest,
David Sills committing to USC
turned into an arena-wide brawl
and now 14-year-old Tate Martell
when Artest (now Metta World Peace)
committing to the University of
was pegged with an icy drink thrown
Washington. Mind boggling.
from the crowd.
39. Lockouts It quickly turned into the most
Hockey is the essence of all the heinous disgrace in NBA history.
world’s problems, and it’s about time
34. Commissioners
we appreciate it.
Lockouts, replacement refs, All-Star
Unfortunately, Gary Bettman
game ties. It’s clear at this point that
doesn’t seem concerned with the
NHL commissioner Gary Bettman
growing popularity of the NHL. The
was hired by the fellow three to
short NFL lockout was an emotionally
distract fans from their mistakes by
crippling appetizer to the extended
cancelling hockey.
hockey lockout.
Either that or we just scripted an
38. Players Forcing Trades intriguing thriller.
Dwight Howard was the most
33. Vancouver Canucks Vintage
serious offender of this harsh crime.
Uniforms
A man has to pay his dues and
Whoever made this happen should’ve
play out his written contract before
been canned on the spot and
scratching for a move if he wants to
replaced with a fax machine for the
garner respect.
love of comedy.
Unfortunately, these owners and
general managers have yet to muster
The Canucks have come a long
way.
13
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32. Manny Pacquiao and Floyd 27. NFL’s Addiction to Personal Fouls
Mayweather Not Fighting In today’s game, even the threat of
Seriously, get it over with already. a pinky touching the quarterback
If Mayweather is ever going to quit seems to garner a yellow flag. A
with the arrogant shenanigans and sport that once preached toughness
Pac-Man is going to establish his and ruthless bruising is now flooded
greatness, the fight must go on. with unnecessary “roughing the
But it won’t. passer” calls and whiny, self-entitled
quarterbacks.
31. Michael Jordan Comparisons
Y.A. Tittle’s bleeding forehead
Enough with the Michael Jordan
would agree.
comparisons, which we’re
surrounded by every single season. 26. ESPN First Take
In no other sport are the comparisons Loud Skip Bayless vs. louder Stephen
so monstrous, and so constant. A. Smith has become the epitome
LeBron James: Doesn’t have the of a rough wakeup. There’s nothing
killer instinct MJ had. like listening to the First Take crew
Kobe Bryant: Doesn’t have as shiny thoroughly discuss everything from
of a scalp as MJ did. Tim Tebow’s throwing inadequacies
Kevin Durant: The closest thing. to Tim Tebow’s awesome personality.
It might be time to get Jay Pharoah
30. Teams Parodying Gangnam Style
in there.
Interesting way for Georgia to open
the season. 25. The Decision
Is this rhythmic masterpiece Enough judging the decision itself,
slaughtered yet? we’re more inclined to rip the
approach, although it did generate
29. Replacement Refs
charitable income for the Boys &
They came from all walks of life
Girls Clubs of America.
and patrolled the gridiron with
But live television, millions
confidence. Until they had to make a
watching, hairline receding. What
call.
a spectacle, and what a pure
Watching these zebras attempt
disappointment.
to control their professional
surroundings caused league-wide 24. Retaliatory Punches in Hockey
nausea and worldwide mockery. Fighting is allowed for a reason.
It was a three-week step back for Retaliatory blind-side sucker punches
Goodell & Co. only taint an already controversial
game.
28. 1988 Olympic Boxing Decision
Hockey’s raw nature sometimes
Dominant pugilist Roy Jones Jr.
attracts the worst type of scum, or
trampled through the 1988 Olympics,
breeds the worst type of reactions.
not losing a round en route to a final
Face-to-face combat is the only way.
against South Korea’s Park Si-Hun.
A superior performance from 23. Brett Favre’s Retirements
Jones in the final turned into superior Several more retirements and Brett
heartbreak, though, as judges gave Favre could’ve produced three
the victory to Si-Hun, despite Jones’ separate Iron Man careers. The future
86 punches to his opponent’s 32. Hall of Famer was once a beloved
A despicable moment in Olympic gunslinger from Mississippi.
boxing.
568
Unfortunately now his numerous your own home. To season ticket

retirements seemingly overshadow holders who can barely afford rent,
his numerous records. sell the stubs and buy a house.
22. No. 1 Pick Quarterback Busts 18. NFL’s Lack of Concern for Retired
JaMarcus Russell and his cough Players
syrup in ’07, David Carr and his ability A sport that demands constant
to get sacked in ’02, Tim Couch and physical brutality needs to protect its
his brutal averageness in ’99. The list players, and football certainly hasn’t.
goes on, but the learning curve stays Many feel as if the NFL and the
the same. league players association, led by
Remember “unathletic” pretty boy Hall of Fame guard Gene Upshaw,
Tom Brady being taken in the sixth don’t do enough to help former
round in ’00? players who are physically and
financially crippled. Gridiron Greats
21. Floyd Mayweather Jr.’s Attitude
has contrastingly paved the way for
Everything about undefeated pugilist
improvement.
Floyd “Money” Mayweather reeks
of insecure school girl. But the 17. The Designated Hitter
boxer once (still?) backed by 50 Cent Baseball has always been a game
remains the most arrogant trash played by baseball players. Running,
talker in sports. catching, spitting, grabbing. Not
As Ricky Hatton so eloquently everyone had Ken Griffey Jr.
noted; “He’s a good fighter, talent, but flaws were embraced
everybody knows he’s a good as inadequacies paved the way for
fighter. . .but you don’t have to keep historic performances.
telling us.” Touche. The designated hitter has allowed
clumsy, tip-of-the-iceberg players
20. Anything Swami Sez
to concentrate on only one aspect;
If quips like “WHOOOOP” and
swinging the pine.
“Back, Back, Back” weren’t enough
to make your ears bleed, maybe 16. Gregg Williams Speech and
Chris Berman’s heinous rant (NSFW Bounty Gate
language) can get it done. Don’t be naive, friendly bounties have
Like a toddler attempting to stay certainly been a part of the football
inside the lines, Berman’s vibrant world for some time now. But the
performance fails mightily. speech that suspended coordinator
Gregg Williams gave to his Saints
19. Cost of Tickets
before last year’s divisional game
In hopes of attending a three-
was a shocking reality check for
hour game with the family for a
commissioner Roger Goodell.
Saturday afternoon, one might
We don’t expect to see Williams
consider skipping dinner for a week
back on a professional sideline any
or two or perhaps selling his ’84
time soon.
Mitsubishi Starion. Although can
we blame the industry for giving in 15. Sports Cliches
to supply and demand? Yes, yes we They need to generate some offense.
can. We’re taking it one game at a time.
Save your money, grill some
steaks, pop on the Samsung and
enjoy the game from the comfort of
He gave 110 percent. It’s a mental
game. At the end of the day. . .
Sick yet?
13
569
14. First Pitch Fails Although he took his postseason

As a blossoming star on the benching like a pro, mingling with the
professional hardwood, Wizards female fans. . .
point guard John Wall should be able
9. Sports Bars That Play Loud Music
to toss a baseball 60 feet.
over Games
He barely scraped 13, though
Most fans prefer the soothing
gave cricket scouts a dose of his
sound of Gus Johnson’s colorful
potential.
annunciations to James Blunt’s
13. Bill Belichick “You’re Beautiful.” Unless of course
Through bizarre tactics and the luck they’re frustrated, dragged-to-the-bar
of the hoodie, Bill Belichick led the girlfriends who are more focused on
Patriots to three Super Bowl wins Philip Rivers’ dimples than Peyton
in four years. Indeed, he remains a Manning’s precision.
respected coach around the league.
8. Teams Singing Call Me Maybe
But Spygate and constant
There’s nothing like an Ivy League
arrogance make us despise
education.
everything he’s done.
These Harvard ballplayers show
12. Concussions us true team spirit with yet another
A problem without a solution it Carly Jae Repsen cover. It’s only
seems, and only the advancement of acceptable at this point when it’s
technology will guide the way. weirdly remixed by the Dolphins
They’ve ruined careers and cheerleaders.
crippled retirements, but remain
7. Front-runners
unavoidable.
The worst brand of fan known to
11. BCS Standings and Polls man. Front-runners are self-entitled,
Voted on by sportswriters and often uneducated and clearly
coaches who clearly don’t have time insecure with their own choices.
to watch every team play, the polls Those bumper stickers may as well
remain a ridiculous aspect of college be targets.
football.
6. National Anthem Screwups
Didn’t realize this was a popularity
Nine-time gold medalist track star
contest.
Carl Lewis was faster than the speed
10. Alex Rodriguez of light. . .in destroying his reputation.
With the baseball world at his Sports fans are still waiting on that
fingertips, Alex Rodriguez, pulling in redemption rendition.
over $30 million per season, seemed
5. Racial Profiling
ready to approach greatness. Now he
Instead of ethnic breakdowns, it’s
simply defines everything we despise
time scouts blind themselves to skin
about sports: wealth, inefficiency and
color.
arrogance.
If he can hit a curve, throw a tight
The diamond’s highest-paid and
spiral and drain a three, it doesn’t
once most-gifted talent preaches
matter what he looks like.
arrogance over class and continues
to flail at pitches like he’s a wounded 4. The Joe Buck and Tim McCarver
donkey trying to touch his nose with Tandem
his knee. Possibly the most numbingly
atrocious broadcasting unit of all time,
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Buck-McCarver remain the epitome 1. ESPN’s Coverage of Tebow

of mundane. This minute of arbitrary Whether it’s analyzing the length of
nonsense does, however, distract us his nose hairs, detailing his shirtless
from Buck’s runway forehead and chest in the rain or interrupting
McCarver’s frightening grin. regular Tim Tebow coverage to throw
Mission accomplished; let’s just Tim Tebow a birthday (over Magic
hope extraterrestrials don’t get this Johnson might we add), ESPN has
message. made the unique former Gator top
priority.
3. Kyle Not Getting More Attention
The most scrutinized backup
Depending how you embrace his
quarterback in history, and a
performance, Kyle the reporter may
thorough punt protector, Tebow
be sports’ greatest gift.
somehow found himself flooded with
His nonsensical dialogue combines
media members after a climactic
failure with brilliance, perfectly.
Super Bowl. . .which Eli Manning and
2. Ryan Lochte’s Interviews the big brother Giants won.
Everyone in this room is now dumber Tebowmania remains maniacal.
for having listened to this. We award
Ryan Lochte no points and may God Source: Article author: Zack Pumerantz.
have mercy on his soul. Rightsholder: BleacherReport; http://
Next reality show star? Nope, bleacherreport.com/articles/1375225-the-
fashion designer it seems. 100-worst-things-in-sports.
Encouraging intrapreneurship
Creative efforts and the innovations within organizations are a function of both
individual and organizational factors. Entrepreneurial employees add value to the
organization and enhance implementation by finding creative ways to achieve the
strategic plan. However, these efforts can flourish only if organizational features
foster creativity. To encourage an intrapreneurial environment, staff members must
be rewarded for entrepreneurial thinking and must be allowed and even encouraged
to take risks. Failure and mistakes must be allowed and even valued as a means to
creative and innovative expression.
The key to successfully creating a climate that encourages creativity and innovation
is to understand the components of such an atmosphere. Those components include
management support, worker autonomy, rewards, time availability, and flexible
organizational boundaries. To understand these components, consider the following
guidelines used at 3M Company:18
X Do not kill a project – If an idea does not seem to find a home in one of 3M’s
divisions at first, 3M staff member can devote 15 percent of their time to prove it
is workable. In addition, grant money is often provided for these pursuits.
X Tolerate failure and encourage risk – Divisions at 3M have goals of 25–30
percent of sales from products introduced within the last five years.
X Keep divisions small – This will encourage teamwork and close relationships.
X Motivate champions – Financial and nonfinancial rewards are tied to creative
output.
X Stay close to the customer – Frequent contact with the customer can offer
opportunities to brainstorm new ideas with them.
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X Share the wealth – Innovations, when developed, belong to everyone.
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Sports marketers are always looking for new and innovative approaches to all
elements of the marketing mix and technology is transforming the delivery of these
marketing experiences. Advances in technology have made information more
accessible and put spectators in the heart of the action. Whether the enhancement
of promotional delivery systems, broadcast, venue management, sportscape,
logistics, or safety and security, people want technology to enhance their sporting
lives. Spectators, governing bodies, and event planners are demanding more from
their sporting events, therefore, real-time information utilizing multimedia solutions
must be integrated into planning and promotion. On the promotion side, for instance,
the University of Cincinnati’s Department of Athletics introduced Social Seats.19
Social Seats is an exclusive offer to fans of UC Facebook page and followers of the
GoBEARCATS twitter account. The program allows fans who purchase tickets for any
of the remaining four basketball games as well as those who have already purchased
tickets an opportunity to be entered into a random draw. The winners receive
upgrades to lower level seats, access to the media room and media hospitality area,
as well as the postgame press conference. The Bearcats benefited from the increased
exposure on the social network, to fans at the park, and on televised games. On
the product side, Sportsline’s HydraCoach bills itself as the world’s first “intelligent
water bottle.”20 You enter your weight and activity level, and then indicators on the
side of the unit tell you whether you are meeting your “personal hydration goal.”
One area of innovation in sports facility design is going green. The Cleveland Indians
and Green Energy Ohio installed a new solar electric system at Progressive Field, the
first American League ballpark to go solar. The ballpark utilizes recycling containers
and biodegradable cornstarch utensils and cups. In addition, the facility composts the
garbage, which in turn has reduced the trash pickups by 50 percent since 2007.21
National Park, home to the Washington Nationals, is the nation’s first major
professional stadium to become LEED Silver Certified by the U.S. Green Building
Council. LEED is an internationally recognized green building certification system,
providing third-party verification that a building or community was designed and built
using strategies aimed at improving performance across all the metrics that matter
most: energy savings, water efficiency, CO2 emissions reduction, improved indoor
environmental quality, and stewardship of resources and sensitivity to their impacts.
The project incorporated a variety of sustainable design elements in regards to its
proximity to the Anacostia River. For example, HOK Sport, the ballpark’s architect,
integrated the first “green roof” at a big league sports facility. The Chesapeake Bay
Foundation, an environmental nonprofit, gave a $101,670 grant to the D.C. Sports and
Entertainment Commission to cover the cost of planting grass and other plants on top
of a 6,300-square-foot waterproof surface above a concession stand in left field.22
In other examples, for the first time in the history of any major North American
professional sports league, a league-wide uniform innovation had been established.
The National Hockey League and Reebok partnered to create a technologically
advanced uniform for players called the Rbk EDGE Uniform System.23 At the time
it provided a technology advanced edge for the Reebok brand. However, Adidas,
who purchased Reebok in 2005 for $3.8 billion, has recently been contemplating
replacing Reebok as the official NHL brand, for the Reebok brand has struggled,
continuing to lose ground to Nike for the soles of Americans.24 In fact according
to Sporting Goods Intelligence, from 2005 through 2012, Nike increased its U.S.
footwear sales 75 percent, to $6.3 billion, meanwhile Adidas, over the same period,
saw its footwear sales rise a more modest 35 percent, to $1 billion.25 All the while,
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Reebok’s U.S. footwear sales fell 40 percent, to $597 million, over the same period.
Up until 2006, the NBA had Reebok as its official uniform and apparel supplier;
however, they decided to move to replace the contract with one that made Adidas
the official supplier, a strategy the NHL is now contemplating. In other apparel
advances, Under Armour in 2011 unveiled a uniform technology comparable with
Nike’s Pro Combat used by top football programs across the nation. Branched off its
original compression shirts, these Under Armour uniforms were 33 percent lighter,
integrated technology that enhanced breathability, afforded heat exchange, and
enhanced muscle stability. Under Armour also designed the Mach 39 Speedskating
Skin for the 2014 US Olympic Speedskating team. The skin’s design was rigorously
tested for maximum efficiency. The engineering of the skin focused solely on full-
body aerodynamics. Under Armour utilized Lockheed Martin’s expertise during a
two-year research and testing program. The engineers employed high-speed cameras
to help create computational fluid dynamic models that analyzed how air flowed
around the skater during key body positions. Coupled with over 300 hours of wind-
tunnel testing on reinforced fiberglass mannequins with hundreds of different skins
setups and textile configurations, the research allowed designers to zero in – down
to the millimeter, actually – on exactly how and where to build the new suit.26 The
goal of the new design was to achieve technological improvements that would be
measurable. Unfortunately, during the 2014 Olympic Games, performances were
dismal and many experts and athletes readily blamed the suit for these disappointing
performances. It was not until the national governing body did a comprehensive
review of its preparation heading into the Games that the controversial suits were
found not to have anything to do with the sub-par performance; its findings: too much
travel, too much training at high altitude, overly optimistic expectations, and not
enough time in the new suits.27
Budgeting
Budgets are often used as a means of controlling organizational plans. However, the
budgeting process can be an important part of the implementation plan if budget
development is closely linked to the sports marketing strategy. In fact, the allocation
of financial resources can either promote or impede the strategic implementation
process.
Marketers within the sports organization must typically deal with two types of
budgetary tasks. First, they must obtain the resources necessary for the marketing
group to achieve the marketing plan goals. Second, they must make allocation
decisions among the marketing activities and functions. These two types of activities
require working with individuals and groups internal and external to the sports
marketing function.
To develop strategy-supportive budgets, those individuals responsible should have
a clear understanding of how to use the financial resources of the organization most
effectively to encourage the implementation of the sports marketing strategy. In
general, strategy-supportive activities should receive priority budgeting. Depriving
strategy-supportive areas of the funds necessary to operate effectively can undermine
the implementation process. However, overallocation of funds wastes resources and
decreases organizational performance.
In addition, just like the rest of the strategic sports marketing process, the budgeting
process is subject to changing and often unpredictable contingencies that may
13
necessitate changes in the marketing budget. A change in strategy nearly always calls
573
for budget reallocation. Thus, those individuals who are responsible for developing
budgets must be willing to shift resources when strategy changes.
Control
In the uncertain and changing environments in which sports organizations operate, it is
critical to consider four questions throughout the strategic sports marketing process.
1. Are the assumptions on which the strategic marketing plan was developed still
true?
2. Are there any unexpected changes in the internal or external environment that
will affect our plan?
3. Is the marketing strategy being implemented as planned?
4. Are the results produced by the strategy the ones that were intended?
These questions are considered the basis of strategic control and the fundamental
issues to be considered in the control phase of the strategic sports planning process
model. Strategic control is defined as the critical evaluation of plans, activities, and
results – thereby providing information for future action. As illustrated in Figure 13.2,
the control phase of the model is the third step to be considered. However, it is
important to note that the arrows allow for “feedforward.” In other words, even
though control is the third phase of the model, we consider it as we develop earlier
phases of the process. Once the initial plan is developed, the assumptions on which
the plan was developed and the internal and external contingencies must be examined
and monitored. As the implementation process is set in place and as the plan is
executed, strategic control reviews the process as well as the outcomes. Variances
Planning phase of the

strategic sports
marketing process
Implementation phase
of the strategic
sports marketing
process
Control phase
of the strategic
marketing
process
Planning
Process
assumptions
control
control
Contingency
control
Figure 13.2 Control phase of the strategic sports marketing process

574
from the original assumptions, plans, and processes are noted and changes are made
as needed.
The three types of strategic control that sports marketers must consider are planning
assumptions control, process control, and contingency control. The following sections
outline each of these three types of control.
Planning assumptions control

As we have discussed throughout this text, it is vital to understand internal and
external contingencies and formulate strategic sports marketing plans that establish a
fit with those contingencies. During the planning phase, it is often necessary to make
assumptions concerning future events or contingencies about which we do not have
complete information. In addition, individual planners may perceive and interpret data
differently. In other words, the strategic sports marketing plan is based on a number
of situation-specific premises and assumptions. This level of control attempts to
monitor the continuing validity of these assumptions. Thus, in planning assumptions
control, the sports marketer asks the question: “Are the premises or assumptions
used to develop the marketing plan still valid?” To fully evaluate the responses to
this question, the assumptions used during the development of the marketing plan
must be listed. This step is vital to the success of this control mechanism so those
individuals who are responsible can monitor them throughout the process.
A good example of planning assumptions control at work resides within the realms
of the Big East Conference. As the conference struggles to compete with the cash
cow, that is college football, now the third most popular sport in America but even
more important, a money-making machine, the conference fights to retain a basketball
presence. Many feel college basketball has been lost in the shuffle, often being
overlooked as far as conference realignment goes and undoubtedly the Big East was
the conference that took the biggest hit. Losing major schools like Miami, Syracuse,
and Pitt to the ACC, to splitting into two separate conferences altogether, the new
Big East offered some great moments on the college basketball landscape, but it
definitely was not an improvement on the legacy the previous incarnation developed
over the past 35 years. Three new teams – Creighton, Butler, and Xavier – joined the
Catholic 7, and although Creighton and Xavier made some noise by making the NCAA
Tournament (http://www.sbnation.com/march-madness) the Big East could use some
extra firepower in its quest to return to dominance.28
Another example of a planning control assumption has been associated with the
marketing and endorsement of players and teams. Scandals with teams such as USC,
Penn State, Syracuse, the Ohio State University, and Miami and with players the
likes of Tiger Woods, extramarital sex scandal, Michael Phelps, marijuana use, Lance
Armstrong, doping, and Barry Bonds regarding steroid use, have made corporate
partners rethink their plans and uses.
Because of the complexity of the decision-making process, it may be impossible
to monitor all the assumptions or premises used to formulate the strategic sports
marketing plan. Therefore, it is often practical not only to list the premises, but also to
prioritize them based on those that may most likely effect a change in the marketing
plan.
Although all assumptions should be considered in this form of control, two
categories of premises are most likely to be of concern to the sports marketer:
external environmental factors and sports industry factors. As we discussed
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earlier, strategic sports marketing plans are usually based on key premises about
many of these variables. Some examples of external environmental factors include
technology, inflation, interest rates, regulation, and demographic and social changes.
The relevant sports industry in which a sports organization operates is also usually
a key premise aspect in designing a marketing plan. Competitors, suppliers, league
regulations, and leadership are among the industry-specific issues that need to be
considered when identifying the critical assumptions used to develop the strategic
plan.
Monitoring the premises or assumptions used to develop the strategic sports
marketing plan is vital to the control phase of the strategic sports marketing process,
but it is not sufficient. In other words, this form of control does not measure
how well the actual plan is progressing, nor is it able to take into account the
aspects of the internal and external environment that could not be detected during
the planning phase when the premises were developed. Thus, effective control
must consider two additional forms of evaluation: process control and contingency
control.
Process control
Process control monitors the process to determine whether it is unfolding as
expected and as desired. This type of control measures and evaluates the effects of
actions that have already been taken in an effort to execute the plan.
Because of changes in premises and contingencies, the realized strategic marketing
plan is often not the intended strategic marketing plan. Changes and modifications
to the plan usually occur as a result of the process control activities carried out by
marketers. In other words, during this stage of control, sports marketers attempt to
review the plan and the implementation process to determine whether both remain
appropriate to the contingencies. Either the marketing plan or the implementation
process put in place to execute the plan may not proceed as intended. These
variances may lead to a need to change the plan or the process or both. Thus, the
key question asked by this form of control is: “Should either the strategic plan or the
implementation process be changed in light of events and actions that have occurred
during the implementation of the plan?” It is important to note that to change or
modify the marketing plan or implementation process is not necessarily a decision
to avoid. The benefit of this form of control is that sports marketers can minimize
the allocation of resources into a strategic plan or implementation process that is not
leading to achievement of the objectives and goals they deem important. To answer
the preceding question, two measures are typically used: monitoring strategic thrusts
and reviewing milestones. As we discussed earlier, the strategic sports marketing
plan is a means of achieving strategic and financial organizational goals and marketing
objectives. An important part of evaluating the plan and process is to review the
achievement of these objectives and goals during the execution of the plan. Because
objectives are not time specific or time bound (as discussed in Chapter 2), strategic
thrusts can be examined to evaluate progress in the direction of strategic and financial
objectives. On the other hand, reviewing milestones typically examines achievement
of marketing objectives. Let us look at each of these two forms of process control
more closely.
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Monitoring strategic thrusts

Monitoring strategic thrusts attempts to evaluate or monitor the strategic direction
of the plan. As a part of the overall strategic plan, smaller projects are usually planned
that will lead to the achievement of the planned strategy. Successful pursuit of these
smaller projects can provide evidence that the strategic thrust is the intended one.
However, if these projects are getting lost to other “nonstrategic” projects, it could
mean that the overall strategy is not progressing as planned.
One strategic thrust of special interest to sports organizations and organizations
marketing their products through sports is, of course, sponsorship. Determining the
effectiveness of a sponsorship program is becoming increasingly more important
as the costs of sponsorship continue to rise. A Turnkey Sports Poll was conducted
with 400 senior-level sports industry executives to understand just how important
measurement can be to the sponsorship package. Half of those surveyed indicated
that the fact that “certain sponsors are paying closer attention to measuring return on
investment” is “good for sports.” Additionally, nearly 60 percent of the executives
indicated that in the last three years spending on consumer research was either “up
slightly” or “up significantly.”29
Just how, then, do we measure or determine whether we are seeing a return on our
marketing investment? Lesa Ukman, former CEO of IEG, which publishes the IEG
Sponsorship Report, believes sponsorship return can be measured. Ukman stresses
the following regarding sponsorship measures:30
Sponsorship return can be measured. The key lies in defining objectives, establishing
a presponsorship benchmark against which to measure, and maintaining consistent
levels of advertising and promotion so that it is possible to isolate the effect of
sponsorship.
The lack of a universal yardstick for measuring sponsorship is a problem, but it is also
an opportunity. The problem is that sponsorships often are dropped, not because they
don’t have measurement value, but because no one has actually measured the value.
The lack of a single, standardized measurement is also an opportunity because
it means sponsors can tailor their measurement systems to gauge their specific
objectives.
HOW ATHLETES ARE FIGHTING FOR

ENDORSEMENT DOLLARS
Brands are becoming more judicious sponsorship realm, as well, adding
in the way that they choose who to the competition for endorsements.
to endorse, according to panelists “Ten years ago, the celebrities who
in a discussion about athlete were getting the big bucks before
endorsements. The fallout from the were saying, ‘Hey, these athletes
Tiger Woods scandal, for example, are encroaching on my space,’” said
has caused sponsors to think longer Unilever’s Rob Candelino. “[Now]
and harder about who they sign and these guys are starting to treat
about the language they include in themselves like brands. It’s gone full
their contracts. circle.”
Celebrities and musicians have
started to encroach further into the
U.S Olympic swimmer Cullen
Jones said that he thinks of
13
577
himself as a brand and believes been a winning formula because

that is what has to happen for it resonates with our brand. If we
athletes to be recognized. When started trying to be a sports brand,
even relatively unknown reality then we’ve lost the plot. I think far too
TV stars are competing for deals, often nowadays, brands, particularly
agents and brands are focusing ones that don’t have both feet firmly
more on an organic, authentic entrenched in sports, subcontract
match-up and becoming better their responsibility of brand equity
storytellers. to the athlete. If you do that, you’re
Quick hits: done.”
Jim Tanner, on what drives Allan Zucker, on athlete
marketing: “One of the things we overexposure: “People talk
always tell new clients is don’t about overexposure all the time.
start with branding. Start with Whether it’s Tiger Woods or Peyton
performance. That drives 90 percent Manning or Danica Patrick, [they
of marketing.” say] ‘I see them everywhere.’
Matt Mirchin, on figuring out what Yea, they are everywhere, but
reaches your customers: “As a brand people keep calling. So obviously
you want to associate yourself with they must be doing something
something that resonates with your right with their brands or people
consumer. From our perspective, wouldn’t want to work with them
Under Armour is all about making anymore.”
athletes better. So it’s nice when Jones, on using Twitter: “Granted,
entertainers or celebrities wear our I might have thoughts that I might
product. But we’re going to go right want to instantly put out there, [but]
to that sweet spot with the athletes It’s not smart to do that. I consider
because that’s who resonates with myself a brand.”
us.”
Candelino, on Unilever’s athletes Source: Rightsholder: Sports Business
representing Dove Men: “Every Journal; http://www.sportsbusinessdaily.
one of them has told a story or a com/SB-Blogs/Events/Sports-
Marketing-Symposium/2012/10/Athlete-
sentimental moment that has shaped
Endorsements.aspx.
them as men. We think that has
Since there are no universal measures, companies struggle with finding the
resources and determining what the right things to measure are. In the sporting
world, it is not uncommon for companies not to measure return from sponsorship.
In fact, in 2012 when IEG asked the question, does your company actively measure
return from its sponsorship, a full one-third of the sponsors said no. Companies
often choose the easiest method of assessment focusing on awareness of
products, attitudes and brands. The more challenging methods that focus on
the harder-to-determine effectiveness measures are further down the purchase
funnel. Marketers also continue to rely on their property partners for evaluation
assistance, with survey respondents ranking their dependence on rightsholders to
help them measure return as a 6 on a 10-point scale.31 Here are a few of the more
popular ways of measuring sponsorship effectiveness and brand impact against
the objectives of awareness and exposure, sales, attitude change, and enhancing
channel-of-distribution relationships:
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X N-Score is a new measurement system from Nielsen that rates the brand impact
of professional athletes and sports personalities, enabling advertisers to make
smart marketing decisions on commercial endorsements. Based on Nielsen’s
strategic collaboration with E-Poll Market Research, N-Score provides the most
comprehensive, in-depth look at a sports figure’s overall endorsement potential.
A potential endorser’s N-Score is the result of a model that factors in awareness,
appeal (how strongly one likes or dislikes an individual) and 46 specific personal
attributes.
The N-Score is available for over 1,000 athletes, coaches, broadcasters, and other
sports personalities, on both a national basis and in 30 local markets. Advertisers
can use N-Score to evaluate how effective a sports figure will be when endorsing
their products. N-Score can also measure the positive and negative impact of off-
field events on an athlete’s effectiveness, including the impact across different
demographic groups.32
X For the NASCAR Sprint Cup Series, Sprint identified three metrics specific to
return on investment. According to Tim Considine, director of sports marketing
Sprint Nextel Corp., they generate return by assessing the size of the customer
base, average revenue per unit-total revenue divided by the number of customers,
and churn. Considine noted that they prefer to achieve low churn, high average
revenue per unit, and large customer base.33
X Number of stories and mentions in popular media, such as newspapers, televised
shows, and magazines, serve as a measure of exposure as well. For example, John
Hancock Financial Services measured the impact of its football bowl sponsorship
using this method. In one year, approximately 21 binders of newspaper clippings
were collected at an estimated advertising equivalency of $1 million.34
Awareness is also assessed through “media equivalencies,” that is, determining how
much “free” time the sponsor has accumulated through television coverage. For
example, Joyce Julius & Associates had estimated that Louisville-based Yum Brands
earned almost $2.7 million in exposure in its debut as the first presenting sponsor of
the Kentucky Derby.35
Web 13.2 Sponsorship ROI evaluation 13

Source: Joyce Julius & Associates, www.joycejulius.com
579
While the measurement of brand exposure has historically used human observation,
companies like Margaux Matrix are testing electronic tools to perform the same
operation more accurately.36 Not all researchers are sold on the notion of media
equivalencies. In fact, a study by the former public relations firm Jeffries-Fox’s led to
the official Institute for Public Relations (IPR) position that “The IPR Commission does
not endorse Ad Value Equivalencies as a measurement tool.”37
X Sales figures for products and services can be examined both prior to (pre) and
after (post) the event to estimate the potential impact of the sponsorship. Other
methods of tracking sales include looking at sales for the sponsorship period
versus the same time period in prior years or measuring sales in the immediate
area versus national sales. In addition, sales might be tied directly to the sponsored
event. For example, discounts for products might be offered with proof of
attending the event (show ticket stub); therefore, the number of redemptions
might be tracked. Of course, many other factors, such as competitive reaction and
additional sales promotions, will influence the sales figures.
One final variation of measuring the impact of sales is to involve the sales force in
tracking the value of leads and contacts generated through sponsorship.
X To assess consumer attitudes toward various products and services, as well as
the sponsored event, research is conducted in the form of surveys or in-depth
interviews. This primary market research is used to gauge the image of the
event and its sponsors, attitudes that consumers have toward the event and its
sponsors, and awareness of events and sponsors’ products and services.
When determining the impact of sponsorship on channels of distribution, it is common
practice to track the number of outlets carrying the given product before and after the
sponsored event. In addition, sponsors may want to assess the number of retailers or
dealers participating in a program versus previous promotions. Finally, companies may
measure incremental display at the point of purchase in retail outlets.
For example, M&M’s MARS brand continues to employ the “Race Day is better with
M” slogan on a range of confectionary displays offered to meet the snacking needs of
NASCAR fans. In fact, M&M’s estimates that approximately 83 percent of consumer
purchases are unplanned. Therefore, M&M’s displays often employ impulse strategies
that seek to trigger or solicit immediate consumption (IC) or future consumption (FC)
responses. IC responses seek to trigger an “immediate” impulse purchase e.g., items
that are often available at checkout lines, while FC displays often focus on enhancing
exposure in high traffic areas e.g., a lobby where shoppers are purchasing for others.38
Overall implications and strategy goals: to interrupt trips with off-shelf displays to keep
MARS NASCAR products on the top of mind on fan trips; important to display product
for pantry-load trips; and critical to have immediate consumption displays to capture
the impulse purchase. The strategic approach highlighted message reach, increased
focus on home viewer and consumer engagement with quarterly giveaways. M&M’s
committed to providing national advertising and PR support integrating television, FSI,
in-store, promotional radio, online, PR, social, POP and shopper marketing strategies.
The ultimate goal, to utilize displays to tempt the passionate fan and trigger impulsivity
by making chocolate more mentally available in-store, sounds delicious.39
Milestone review
The second form of process control is milestone review. Marketing managers at
sports organizations usually establish milestones that will be reached during the
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Photo 13.2 Sponsors such as M&M must design controls to evaluate sponsorship
effectiveness.
Source: Getty Images
execution of the marketing plan. These milestones may be critical events, major
allocations, achievements, or even the passage of a certain amount of time. They
are often an integral part of a program evaluation and/or network analysis strategies.
Critical path or milestone reviews help market planners to prioritize goals and
objectives, define time lines, as well as the sequence, order, and thresholds of market
strategies. As these milestones are reviewed on a continuous basis, an evaluation of
the advisability of continuing with the plan and the process is afforded.
Financial analysis
Financial information can be used to understand and control the process of strategic
marketing plan implementation; that is, to perform financial analyses. It is important
for any sports organization to have a good accounting system. In terms of process
control, the accounting system can provide the following:
X A ready comparison of present financial performance with past performance,
industry standards, and budgeted goals.
X Reports and financial statements that can be used to make appropriate strategic
decisions.
X A way of collecting and processing information that can be used in the strategic
sports marketing process.
Two important components of a good accounting system are the income statement
and balance sheet. The balance sheet and income statement are the traditional
financial statements that have been required in annual reports for many years.
Income statements provide a summary of operating performance. These documents
13
summarize both money coming into and going out of the sports organization and the
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Table 13.4A Rich Creek Rockers income statement
Income statement for the year ended December 31, 2012

Revenues:
Single game admissions $140,000
Season ticket holders 275,000
Concessions 250,000
Advertising revenue 95,000 760,000
Expenses:
Cost of concessions sold 100,000
Salary expense – players 235,000
Salary and wages – staff 130,000
Rent 150,000 615,000
Profits before taxes 145,000
Income tax 33,000
Income after taxes $112,000
Table 13.4B Rich Creek Rockers balance sheet
Balance sheet at December 31, 2012

Assets Liabilities and Owner’s Equity
Cash $10,000 Accounts payable $20,000
Accounts receivables 82,000 Capital stock 50,000
Equipment 40,000 Retained earnings 62,000
Total assets $132,000 Total liabilities and owner’s equity $132,000
marketing department or division. Because income statements are a good measure

of customer satisfaction and operating efficiency, they should be prepared frequently
– at least every three months, if not monthly. Balance sheets provide a summary of
the financial health of the sports organization at a distinct point in time. The balance
sheet provides the sports marketer with a summary of what the organization is worth;
what has been invested in assets, such as inventories, land, and equipment; how the
assets were financed; and who has claims against the assets. Tables 13.4A and 13.4B
provide simple examples of the information typically found on income statements
and balance sheets. In contrast, the statement of cash flows, which replaced the
statement of changes in the late 1980s, shows the sources and uses of a firm’s
cash. The statement of cash flows details where resource of cash comes from and
how they are used. It provides more valuable information about liquidity than can be
obtained from the balance sheet and income statements.
One of the more useful methods of financial analysis for control purposes is known
as ratio analysis. Financial ratios are computed from income statements and balance
sheets. These ratios can tell the sports marketing manager a lot about the progress
and success of the strategic sports marketing plan. In other words, using financial
ratios can help a sports marketing manager assess whether the marketing strategy
continues to provide an appropriate fit with internal and external contingencies. There
are several types of financial ratios that can be categorized as follows:
X Profitability ratios – Provide an indication of how profitable the organization or
division is during a period of time.
X Liquidity ratios – Indicate the ability of the organization to pay off short-term
obligations without selling off assets.
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X Leverage ratios – Measure the extent to which creditors finance the organization.
X Activity ratios – Measure the sales productivity and utilization of assets.
X Other ratios – Determine such things as return to owners in dividends, the
percentage of profits paid out in dividends, and discretionary funds.
Table 13.5 lists some of the more commonly used ratios, how each is calculated, and
what each can tell the sports marketing manager. Examples of how these ratios are
applied and interpreted are shown in Table 13.6.
Table 13.5 Summary of selected key financial ratios
Ratio Calculation Question(s) Answered

Gross profit margin Sales – Cost of goods sold What is the total margin available to cover
Sales operating expenses and provide profit?
Net profit margin Profit after taxes Are profits high enough given the level of
Sales sales? Are we operating efficiently?
Return on total Profit after taxes How wisely has management employed
assets Total assets assets?
Asset turnover Sales How well are assets being used to generate
Average total assets sales revenue?
Current ratio Current assets Does our organization have enough cash
Current liabilities or other liquid assets to cover short-term
obligations?
Debt-to-assets load Total Debt Is the organization’s debt excessive?
Total assets
Inventory turnover Cost of goods sold Is too much cash tied up in inventories?
Average inventory
Accounts receivables Annual credit sales What is the average length of time it takes
turnover Account receivables our firm to collect for sales made on credit?
Table 13.6 Examples of key financial ratios
Net profit margin 112,000

= 14.7%
760,000
Interpretation – Approximately 15 percent of sales is yielding profits. This percentage should be
compared with industry (similar sports organizations) averages and examined over a period of several
years. Declining or subpar percent could mean expenses are too high, prices are too low, or both.
Return on assets 112,000
= 84.8%
132,000
Interpretation – This is a measure of the productivity of the assets in the sports organization. Once
again, this number should be compared with similar sports organizations and examined over several
years. If this number is declining, it may indicate that assets are not being used as effectively or
efficiently as they were in previous years.
Inventory turnover 2,500,000
= 25 times
100,000
Interpretation – Inventory turnover is a measure of the number of times inventory is sold during
a period of time. Assuming an average inventory of $100,000 (beginning inventory + ending
inventory/2) the inventory (in this example – concessions) was sold 25 times. If this number is
higher than the average for this type of sports organization, then ordering costs may be too high and
stockouts may be occurring. If the number is lower, it may mean too much inventory is being stored,
tying up money unnecessarily, and the products (in this case – food) may lack freshness.
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Contingency control
The third form of control, contingency control, is based on the assumption that
sports marketers operate in an uncertain and unpredictable environment and that
the changing nature of the internal and external environments may lead to the need
to reassess strategic choices. Although it is included as a part of the control phase,
this form of control should be of concern throughout the strategic sports marketing
process.
The goal of contingency control is to constantly scan the relevant environments for
internal and external contingencies that could affect the marketing planning process.
Foreseeability, the ability to anticipate the future events, outcomes or results of an
action based on the circumstances, past experiences, apparent riders or reasonable
sense expected of a human being, is critical to the success of contingency control.
Unlike planning assumptions control, the goal here is to remain unfocused so any
unanticipated events will not be missed. In other words, the “big picture” is of most
concern in this phase of control. The primary question to be addressed here is: “How
can we protect our marketing strategy from unexpected events or crises that could
affect our ability to pursue the chosen strategic direction?” Attempts to control
without a prestructured list of variables of concern may not seem to make sense at
first. However, it is easier to understand this form of control if one thinks in terms of
how a crisis usually occurs. The daily events leading up to an unpredicted event lead
to a focus in the form of a crisis. Previously unimportant or unnoticed events become
more problematic until an actual crisis requires some action. Learning to notice and
interpret signals thus becomes an important way to circumvent crises. Thus, the goal
of contingency control is to learn to notice these signals and to have a plan of action in
place to cope with a crisis if it occurs.
Sports scandals and crises are not infrequent. Anyone who reads a newspaper sports
section has observed situations that could lead to a public relations nightmare for
a sports organization or individual athlete. More research is now being conducted
on better understanding the defining characteristics of scandal and attempting to
quantify the magnitude of a specific scandal. Hughes and Shank found that media and
corporate sponsors generally identified four consistent characteristics that make an
event in athletics scandalous or not.40 These characteristics included an action that
was either illegal or unethical, involved multiple parties over a sustained period of time,
and whose impact affected the integrity of the sport with which they are associated.41
The top 10 sports scandals of all time are presented in Table 13.7.42
Although crises such as these are unpredictable, it is useful to plan so the chosen
response can be not only faster, but also more effective. A crisis plan should include
the following:43
X Well-defined organizational response strategies
X Specific procedures that will lead to a more efficient and effective response
X Steps that will deal effectively with potential media impact and will enhance image
X Efficient ways to deal with a variety of problems that could occur
Moreover, sports organizations may benefit from an informal and a formal crisis
response plan. The key is that any crisis plan should offer priorities for proactive and
reactive response under a variety of circumstances. It should have the capacity to both
alert and calm people during an unexpected event that could have the potential for
major consequences.
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Table 13.7 Top ten sports scandals
1 O.J. Simpson
It’s not every day that the NBA finals are overshadowed by a Heisman Trophy winner and former
NFL star on the run from double murder charges. While acquitted during the most publicized trial of
all time, years later OJ now sits in prison convicted of robbery.
2 Pete Rose
Baseball’s all time hits leader and manager of the Cincinnati Reds gets thrown out of the game for
illegally betting on baseball (including games in which the Reds were playing). Years later Pete’s
banishment still stands and Major League Baseball’s Hall of Fame refuses to consider him for
induction.
3 Tiger Woods
On his way to becoming the greatest golfer of all time, 2009 saw a series of events that included a
car accident, more than a dozen mistresses, divorce and therapy derail his career and personal life.
Two years later Tiger is still trying to recapture his golf greatness and another Masters title.
4 Barry Bonds and Steroids
Baseball’s steroid era and the Mitchell Report gave us hulking players (Mark McGwire, Sammy Sosa,
Barry Bonds) who easily shattered Roger Maris’ and Hank Aaron’s home run records. In the wake
of player admissions and denials, most have been tried in the court of public opinion and require the
use of asterisks when analyzing their baseball accomplishments.
5 Soviet Union Basketball Win over United States in 1972 Olympics
The US Men’s Basketball team had won every single game between 1936 and the 1972 final. Had it
not been for a referee adding three seconds back on the clock, the US would have beaten Russia on
this day as well. To date, the US team refuses to accept their Silver Medal from the ’72 games and
gave rise to the creation of US Olympic Basketball “Dream Teams.”
6 Tonya Harding and Nancy Kerrigan
Seeking to eliminate her main rival leading up to the 1994 Olympics figure skating competition,
Tonya Harding, her husband and others assaulted Nancy Kerrigan by striking her in the leg with
a club during a skating practice session. Harding wound up finishing 8th at the Olympics, while
Kerrigan took home the silver medal.
7 Penn State Sex Abuse
One of college football’s most celebrated programs and coaches failed to report and likely covered
up when allegations of child molestation against former defensive coordinator Jerry Sandusky
surfaced. Fast forward, Coach Paterno has passed, Sandusky convicted and a university and
administration still in turmoil and under investigation for a massive cover up.
8 New Orleans Saints Bounty Program
“Bountygate” was a fund that rewarded Saints players with financial bonuses for inflicting injuries
on opposing players that forced them to leave games. Following an NFL investigation, the Saints will
play their 2012 season without their head coach, defensive coordinator and key players who have all
been suspended by commissioner Roger Goodell.
9 1918 Chicago Black Sox
In response to notoriously cheap team owner, Charles Comiskey, who leveraged loopholes
in contracts and MLB laws to prevent playing his star players, eight members of the 1919
Chicago White Sox were banned from baseball for life for taking money from underworld figures
to intentionally lose games (including the 1919 World Series). The scandal, which was also
immortalized by the film Eight Men Out, remains one of baseball’s darkest and enduring moments.
10 SMU Death Penalty
To date this remains the most severe penalty handed down to any athletic program. SMU’s entire
1987 schedule was cancelled due to massive violations of NCAA rules and regulations including
slush funds and illegal payments to athletes for over a decade. Following the death penalty, the
SMU Mustangs had only one winning season over the next 20 years.
Source: http://www.mensfitness.com/leisure/sports/11-biggest-sports-scandals-of-all-time?page=2.
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Summary organizational structure to best meet the

needs of the customers.
Implementing and controlling the
Another important organizational design
strategic sports marketing process
element that affects implementation
is the emphasis of Chapter 13. After
is the rewards structure of the sports
the planning phase of the strategic
organization. With proper pay and
marketing process is completed, the
incentives, employees may be motivated
implementation and control phases
to carry out the strategic plan. Some
are considered. Implementation is
guidelines for designing effective
described as an action step where
rewards systems include linking rewards
strategic marketing plans are executed.
to the strategic plan, using a variety
Without the proper execution, the best
of incentives: link performance with
plans in the world would be useless. To
rewards, give everyone the opportunity
facilitate the implementation process,
to be rewarded, and be willing to adapt
seven organizational design elements
the rewards system.
must be addressed. The organizational
design elements include communication, Information is one of the most essential
staffing and skills, coordination, rewards, elements of effective implementation. To
information, creativity, and budgeting. To aid in the gathering and dissemination of
begin, the organization must effectively information for strategic decision making,
communicate the plan and its rationale to organizations must design information
all the members of the sports marketing systems. Before gathering information,
team who will play a role in executing the consider who is going to need this
plan. In terms of staffing and skills, there information, for what purpose is the
must be enough people and they must information needed, and when do they
have the necessary skills and expertise need it?
to successfully implement the strategic Fostering creativity, another
marketing plan. Research has shown organizational design element, is
that the skills deemed most important yet another important aspect of
for sports marketing managers include implementation. Creativity and
establishing a positive image for your innovation within the organization is
sports organization, achieving sponsors’ called intrapreneurship or corporate
promotional goals, stimulating ticket sales, entrepreneurship and is developed
maximizing media exposure for events, through education and training. To
athletes, and sponsors, and acquiring enhance employee creativity the
sponsors through personal contacts. creative process, consisting of four
Coordination is another of the steps, is used by organizations. These
organizational design elements that steps include knowledge accumulation,
influences implementation. Coordination idea generation, evaluation, and
involves determining the best structure implementation. Efforts to encourage
for the organization to achieve the intrapreneurship are also enhanced by
desired strategy. Research has shown creating an organizational environment
the importance of good fit between that cultivates such thinking.
structure and successful implementation. The final organizational design
One way of coordinating people and element that has a direct impact on
tasks that has received considerable implementation is budgeting. Without
attention over the last decade is through proper monies, the strategic sports
total quality management (TQM). TQM marketing plan cannot be properly
philosophies are based on aligning the implemented or carried out. Budgets
must be secured for all marketing efforts
586
within the larger organization. Once these are those concerned with the external
monies are obtained, they must then be contingencies and the sports industry.
allocated within marketing to achieve Because plans are typically developed
specific marketing goals that have been by carefully considering the external
prioritized. environment and the sports industry,
After plans have been implemented, assumptions with respect to these two
the control phase of the strategic issues are critical.
sports marketing process is considered. Process control considers whether the
Strategic control is defined as the critical plan and processes used to carry out the
evaluation of plans, activities, and results, plan are being executed as desired. The
thereby providing information for future key issue addressed by process control is
action. In other words, the control phase whether the planning or implementation
explores how well the plan is meeting processes should be altered in light of
objectives and makes suggestions for events and actions that have occurred
adapting the plan to achieve the desired during the implementation of the plan.
results. Three types of strategic control To make decisions about whether plans
considered by sports marketers include or the implementation process should
planning assumptions control, process be changed, sports organizations review
control, and contingency control. milestones that have been set or monitor
Planning assumptions control asks strategic thrusts. Milestones such as
whether the premises or assumptions financial performance are more specific
used to develop the marketing plan objectives that can be examined, while
are still valid. Two categories of strategic thrust evaluates whether
assumptions that should receive special the organization is moving toward its
consideration from sports marketers intended goals.
Key terms X crisis plan X planning assumptions

X financial analyses control
X activity ratios X implementation X process control
X budgeting X information X profitability ratios
X communication X intrapreneurship X ratio analysis
X contingency control X leverage ratios X rewards
X control X liquidity ratios X staffing and skills
X coordination X milestone review X strategic control
X creative process X monitoring strategic X total quality
X creativity thrusts management (TQM)
Review questions 3. What are some of the common

ways of communicating with groups
1. What are the organizational both inside and outside the sports
design elements that must organization?
be managed for effective 4. What are the marketing-specific
implementation? core competencies of the sports
2. Why must there be a fit between the marketing manager?
planning and implementation phases 5. Define TQM. What are the common
of the strategic sports marketing
process?
characteristics of any TQM program?
Why is it important for sports
organizations to practice a TQM
13
philosophy?
587
6. What are the guidelines for designing for implementing and controlling
rewards systems? the strategic sports marketing
7. What is intrapreneurship? process.
What are the four steps in the 7. Interview three marketing managers
creative process? How can who are responsible for sponsorship
sports organizations encourage decisions in their organization.
intrapreneurship? Determine how each evaluates the
8. Define strategic control. What effectiveness of their sponsorship.
are the three types of strategic
control that sports marketers must Internet exercises
consider?
9. What two measures are typically 1. Browse the Web site of the Sports
used during process control? & Fitness Industry Association
10. How can we evaluate sponsorship (SFIA), formerly the SGMA (www.
effectiveness? sfia.org) and discuss how the
11. Describe the different financial ratios information found on this site might
that can be calculated to assess be useful for developing a strategic
whether a sports organization’s marketing plan for the new IBL.
financial objectives are being met. 2. Find two Web sites that would
12. What are the fundamental provide sports marketing managers
components of a crisis plan? with information about whether their
planning assumptions regarding the
Exercises demographics of the U.S. population
remain valid.
1. Describe three sports organizations 3. Find examples of three nonsports
that have a strong leader who organizations that advertise on
communicates well outside the ESPN’s Web site (www.espn.
sports organization. What are the com). How might these companies
common characteristics of these evaluate the effectiveness of their
leaders, and why do these leaders Web-based advertising?
communicate effectively?
2. How does the training that you Endnotes
are receiving complement the
1 Eric Ivie, “Busy Offseason Ahead for Arena
marketing-specific skills required of Football League: Fan Take,” Yahoo.com
sports marketing managers? (August 20, 2012). Available from: http://
3. Locate the organizational charts for sports.yahoo.com/news/busy-offseason-
the marketing department of two ahead-arena-football-league-fan-163400668.
html, accessed May 7, 2014.
professional sports organizations. 2 “Turnkey Sports Poll,” Sport Business
How will this structure facilitate or Journal (November 13, 2006). Available from:
impede the implementation of their http://www.sportsbusinessdaily.com/Journal/
strategic marketing effort? Issues/2006/11/20061113/SBJ-In-Depth/
Turnkey-Sports-Poll.aspx, accessed May 7,
4. Design a rewards system to 2014.
encourage intrapreneurship. 3 Joe Logan, “LPGA’s First Female
5. Discuss the last three major “crises” Commissioner Rides Out Bumpy Start,”
in sport (at any level). How did the Buffalo News (New York) (July 20, 2006), D1.
4 Alan Shipnuck, “LPGA Commissioner
organizations or individuals handle Carolyn Bivens was Undone by Unflinching
these crises? Commitment to her Vision for the Tour,”
6. Discuss how being the quarterback Sports Illustrated (July 10, 2009). Available
of a football team is similar to from: http://www.golf.com/tour-and-news/
lpga-commissioner-carolyn-bivens-was-
being a marketer responsible
588
undone-unflinching-commitment-her-vision- from: http://www.gobearcats.com/sports/m--
tour, accessed May 7, 2014. footbl/spec-rel/091012aaa.html, accessed
5 Andrew Todd-Smith, “Commentary: 2022 July 6, 2014.
Qatar World Cup Decision Raises Questions 20 “Sportline Hydracoach User Guide,”
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Strategy (Winter 1984), 41. 22 “Green Ballpark,” Washington Nationals
7 Peter Smolianov and David Shilbury, (2010). Available from: http://washington.
“An Investigation of Sport Marketing nationals.mlb.com/was/ballpark/information/
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8 Alfred D. Chandler, Strategy and Structure 23 “Reebok and NHL to Unveil New
(Cambridge, MA: MIT Press, 1963). Technologically Advanced Uniform System,”
9 Marlene L. Mawson, “Total Quality Marketwired.com (2007). Available from:
Management: Perspectives for Sport http://www.marketwired.com/press-release/
Managers,” Journal of Sport Management, reebok-and-nhl-to-unveil-new-technologically-
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Quality Is Personal (New York: Free Press, 24 Josh Kosman and Larry Brooks, “Adidas
1993). May Distance Reebok from NHL,” New
11 George Easton and Sherry Jarrell, “The York Post, (February 1, 2014). Available
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no. 2 (1998), 253–261. 25 Ibid.
12 James Evans and William Lindsay, The 26 Tim Newcomb, “U.S. Speedskating Finds
Management and Control of Quality, 2nd ed. Edge with High-Tech Engineered Skins,”
(St. Paul, MN: West, 1993). Sports Illustrated.com (January 16, 2014).
13 Ibid. Available from: http://sportsillustrated.
14 “Pay for Performances: Why Footballers Are cnn.com/-olympics/news/20140116/sochi-
Not Remunerated Like Investment Bankers,” olympics-speed-skating-under-armour-mach-
Financial Times, London, (January 27, 2007), 39-skin/#ixzz318YY9ElF, accessed May 6,
10. 2014.
15 BusinessWire, “NHL Teams with IBM to 27 Kelly Whiteside, “U.S. Speedskating Says
Promote and Enhance Hockey Through Don’t Blame Under Armour Suits,” USA
New Alliance, NHL-ICE,” Freelibrary.com Today (May 1, 2014). Available from:
(September 5, 1996). Available from: http:// http://www.usatoday.com/story/sports/
www.thefreelibrary.com/NHL+tea ms+with+ olympics/2014/05/01/us-speedskating-under-
IBM+to+promote+and+enhance+hockey+th armour-suits/8589263/, accessed May 6,
rough+new. . .-a018651230. 2014.
16 John Lombardo, “Blazers First with Social 28 “Should the Big East Expand to 12 Schools,”
Networking Site,” Sport Business Journal SB Nation (March 24, 2014). Available
(March 5, 2007). Available from: http:// from: http://www.bigeastcoastbias.
www.sportsbusinessdaily.com/Journal/ com/2014/3/24/5543726/should-the-big-
Issues/2007/03/20070305/This-Weeks-News/ east-expand-to-12-schools, accessed May 7,
Blazers-First-With-Social-Networking-Site. 2014.
aspx, accessed May 8, 2014. 29 Noah Liberman, “Agencies Roll Out New
17 Zack Pumerantz, “The 100 Worst Things in Measurement Tools as Sponsors Seek to
Sports.” Bleacherreport.com (October 22, Justify Their Investments,” Sports Business
2012). Available from: http://bleacherreport. Journal (September 26, 2005). Available
com/articles/1375225-the-100-worst-things- from: http://www.sportsbusinessdaily.
in-sports. com/Journal/Issues/2005/09/20050926/
18
19
R. Mitchell “Masters of Innovation,”
Business Week (April 10, 1989), 58–63.
“Bearcats Announce Football Social Seats
SBJ-In-Depth/Agencies-Roll-Out-New-
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13
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30 Lesa Ukman, “Evaluating ROI of a Available from: http://www.joycejulius.com/
Sponsorship Program,” Marketing News Newsletters/a_second_look__june_2006.
(August 26, 1996), 5. htm, accessed July 6, 2014.
31 “How Athletes are Fighting for Endorsement 36 “Sponsorship: Keeping an Eye on the Ball,”
Dollars,” Sportbusinessdaily.com (October Marketing Week (October 30, 2003), 43.
4, 2012). Available from: http://www. 37 “Institute for Public Relations Releases First-
sportsbusinessdaily.com/SB-Blogs/Events/ Ever Guidelines for Measuring Importance of
Sports-Marketing-Symposium/2012/10/ Interest Audience,” US Newswire (February
Athlete-Endorsements.aspx, accessed May 17, 2004).
8, 2014. 38 M&M MARS, http://mars24seven.com/
32 William Chipps, “Sponsorship Spending: handler/download.ashx?FileName=2014_
2010 Proves Better Than Expected; Bigger NASCAR_Cstore_Selling_Story.pptx,
Gains Set for 2011,” Sponsorship.com accessed May 7, 2014.
(January 6, 2011). Available from: http:// 39 Ibid.
www.sponsorship.com/About-IEG/Press- 40 Stephanie Hughes and Matt D. Shank,
Room/Sponsorship-Spending--2010-Proves- “Defining Scandal in Sport: Media and
Better-Than-Expe.aspx. accessed May 8, Corporate Sponsor Perspectives,” Sport
2014. Marketing Quarterly, vol. 14, no. 4 (2005),
33 “State of the Media: Year in Sports 2010,” 207–216.
Nielsen.com (2010). Available from: http:// 41 Ibid.
www.nielsen.com/us/en/reports/2011/year- 42 “Top 10 Sports Scandals,” Topyaps.com
in-sports-2010.html, accessed May 8, 2014. (June 21, 2010). Available from: http://
34 “And Now a Word From Our Sponsors,” topyaps.com/top-10-sports-scandals/,
Marketing Tools (2005). Available from: accessed May 5, 2014.
www.demographics.com/publications/ 43 “Defining Crisis and Crisis Planning.”
mt/95_/9506_mt/mt169, accessed June 2, Available from: www.sports.mediachallenge.
2009. com\crisis\index.html#feature, accessed May
35 “Team Sponsorships and Partnerships,” 6, 2014.
Joyce Julius & Associates Inc. (June 2006).
590
Appendix A
Career opportunities in sports marketing
Many of us have dreamed of becoming a professional athlete. Unfortunately, reality
sets in rather quickly. We discover that we cannot throw a 90-mile-per-hour fastball
or even touch the rim – much less slam-dunk. However, here are many other
opportunities for careers in sports. In fact, there are a wide variety of sports careers
in sports marketing. In this appendix, we will explore some of the career options in
sports marketing and present some interview and resumé writing tips for landing that
dream job. Finally, we will examine some additional sources of information on careers
in sports marketing.
Before we look at some of the career alternatives in sports marketing, it is useful to
think about how the concepts discussed in this text can be useful in your job search.
As you know, the strategic marketing process begins by conducting a SWOT analysis.
You should build a SWOT into your career planning. First, ask questions about your
own strengths and weaknesses. You can be sure the organizations you interview with
will be asking similar questions. Next, try to identify the opportunities that exist in the
marketplace. What sports are hot? Where are the growth areas in sports marketing?
The next step of your strategic career search should be to gather information and
conduct research on prospective employers. Research could be conducted by talking
to people within the organization to gain a better understanding of the culture. In
addition, observation might take place both before and certainly during the interview.
Next, you need to consider your target market. Do not apply for all of the sports
marketing jobs in the world. Target the job opportunities based on location, type of
position, and how the position or organization fits with your current and potential
strengths. You also need to position yourself. Remember, careers in sports marketing
are in demand and you need to find a way to market yourself and stand out from the
competition.
The marketing mix variables also should be considered in your job search. The
product, in this case, is you. You are the bundle of benefits that is being offered to
the prospective organization. You should also enter into the strategic career search
with some understanding of price. What is the value you attach to the service and
expertise that you will provide? Are the salary and benefits package being offered a
satisfactory exchange?
Your resumé, cover letter, interviewing skills, and ability to sell you are the elements
of the promotion mix. These elements communicate something about you to
prospective employers. Finally, the place element of the marketing mix is the location
in which you are willing to work.
591
Appendix A
From this brief discussion, you can begin to understand that finding the right job for
yourself in sports marketing can be done in a systematic, organized fashion. By using
the basic principles of the strategic marketing process, you will be in a better position
to land your dream job. Let us turn our attention to some of the job opportunities that
exist in the field of sports marketing.
Job opportunities in sports marketing

There are a wide variety of jobs in sports marketing that may be of interest to you.
Here are just a few of the opportunities that exist. As you look through this section,
pay attention to the sample advertisements and the qualifications that are stressed for
each position. In addition, remember not to suffer from marketing myopia when you
look for your first job. Have a broad perspective and think of your first job as an entrée
into the sports industry.
Internships
Nearly 70 percent of sports marketing executives began their careers interning for
a sports organization, and 90 percent of sports organizations offer some type of
internship. Many sports marketing students believe they will secure high-paying,
glamorous, executive-level positions upon completion of their degree. The truth is, jobs
in sports marketing are so competitive that internships are usually the only route to
gaining the experience needed for a permanent position. By working as an intern, you
become familiar with the organization and learn about the sports industry. In turn, the
organization learns about you and reduces its risk in hiring you for a permanent position.
Sample advertisements
X Sales and Marketing Manager – Interns will assist the marketing department in
the following areas:
sponsorship fulfillment, lead qualification, sampling/couponing programs, health
and fitness expo at the Los Angeles Convention Center, and race day festival.
Must be hardworking, detail oriented, friendly, energetic, computer-literate, and
have good communication skills. Hours would be flexible to fit interns’ schedule.
X Marketing Intern – We have an opening for a sports marketing intern to assist in
marketing programs designed to facilitate the growth of our products and services.
Ideal person should have a sports marketing or sports management background.
Computer, organization, and strong communication skills are essential. Internet
experience preferred.
Facilities management
Whatever the sport, there must be a place to play. From brand-new multimillion-dollar
sports complexes such as Nationals Stadium in Washington, D.C. to community
centers used for recreational sports, facilities management is an important function.
Although facilities management positions are more managerial in nature, they do
include a strong marketing emphasis. For example, facilities managers are expected
to perform public and community relations tasks, as well as have a strong promotion
management background. Two of the largest facility management companies in
the United States that you may want to explore are Global Spectrum (www.global-
spectrum.com) and SMG (www.smgworld.com).
592
Appendix A
X Advertising and Public Relations Manager – Opportunity for a creative,
energetic, hands-on individual to develop and implement advertising and
PR programs for an established golf course facility. Minimum of five years’
experience in advertising, esign, broadcast production, and media planning.
Desktop experience a must. Internet experience a plus. Must be able to maximize
preestablished budgets.
X Facility Manager – The Special Events Center is seeking candidates for the
position of facility manager. Candidates should be sales and marketing driven with
experience in event planning, marketing and promotions, and facility management.
Bachelor’s degree with three years’ related experience required. Primary liaison
between users and facility staff. Provide leadership in event planning, onsite event
management, and customer service.
Professional services
As the sports industry grows, the need for more and more business professionals in
all areas is increasing. Today, sports careers are automatically associated with being
a sports agent because of the Jerry McGuire “show me the money” phenomenon.
However, professional services are also needed in sports law, advertising, accounting,
information systems, marketing research, finance, and sports medicine. Having the
appropriate educational background before attempting to secure sports industry
experience is a must. Salaries for professional services positions vary greatly
depending on the job type and responsibilities.
X Director of Special Olympics – Seeking persons with excellent communication,
fund raising, and management skills. Special Olympics is a year-round program of
sports training and competition for children and adults with intellectual disabilities.
Responsibilities include planning and organizing competitive events, training
programs, public awareness campaigns, and fund-raising activities. Candidates for
position must possess excellent communication and fund-raising skills as well as
administrative, organizational, and volunteer management experience. Previous
Special Olympics experience not required, but helpful.
X Global Advertising/Merchandising Manager – Multinational manufacturer of
cycling components. Responsible for leading the creation and execution of global
advertising; athlete and event sponsorship; media planning and communication;
global product merchandising; global cost center management. This position
requires an analytical thinker with excellent leadership and execution skills. A
successful candidate is an MBA who has in-depth knowledge of ad strategy,
planning, and production.
Health and fitness services

As the sports-participant market continues to grow, so will jobs in the health and
fitness segment of the sports industry. Numerous jobs are available in management
and sales for health clubs. Additionally, health and fitness counseling or instruction
(personal trainer or aerobics instruction) represents another viable job market in
health and fitness. Careers in sports training and sports medicine are also increasing.
In addition to working for sports organizations as a trainer or physical therapist, a
593
Appendix A
number of sports medicine clinics (usually affiliated with hospitals) are targeting
the recreational participant and creating a host of new jobs in the prevention or
rehabilitation of sports injuries.
X Director of Campus Recreation – Major responsibilities: provide opportunities to
enhance participant fitness, personal skills, and enjoyment for a variety of student
recreational activities; supervise, coordinate, and evaluate the activities of the
department; prepare operating and capital expenditure budgets; develop goals,
objectives, policies, and procedures; and perform personnel administration within
the department. Qualifications: Master’s degree and three years’ experience in
recreation or a similar field, two years’ experience in administrative position, and
current CPR and first aid certification required.
X Fitness Club Operations Director – Oversee all pool and tennis associates.
Duties include hiring, training, supervising, and reviewing the performance
of staff; administering weekly payroll; designing employees work schedules;
and overseeing maintenance/cleanliness of facilities and inventory. Bachelor’s
degree; minimum two years’ experience in athletic club/resort and one year in
club management; basic knowledge of tennis, fitness and aquatics; excellent
communication skills. Sales and marketing experience, with a strong member
services background and experience developing/implementing member retention
programs preferred.
Sports associations
Nearly every sport has a governing body or association that is responsible for
maintaining the integrity and furthering the efforts of the sport and its constituents.
Examples of sports associations include the Fédération Internationale de Football
Association (FIFA), National Sporting Goods Association (NSGA), United States Tennis
Association (USTA), and the National Thoroughbred Racing Association (NTRA). Each
sports association has executive directors, membership coordinators, and other jobs
to help satisfy the members’ needs.
X U.S. Tennis Association – Assist director of marketing in sponsorship, donations,
and ad sales. Professional tournament operations for one tournament and booth
promotions at all Northern California tournaments.
X Research Associate – A nonprofit golf association. Duties include survey research,
statistical analysis, report writing, and database management. Knowledge of
SAS and related bachelor’s degree a must. Proficiency required in mapping,
spreadsheet, and word processing software. Position requires demonstrated
experience in technical writing and good verbal communication skills. Knowledge
of the golf industry a plus. Entry-level position.
Professional teams and leagues

Along with being a sports agent, the types of jobs most commonly associated
with sports marketing are in the professional sports industry segment. Working
as the director of marketing for one of the “big four” sports leagues (NBA, MLB,
594
Appendix A
NHL, or NFL) or one of the major league teams requires extensive experience with
a minor league franchise or college athletic program and a master’s degree. Job
responsibilities include sales, designing advertising campaigns to generate interest in
the team, and supervision of game promotions and public relations.
X Assistant Marketing Director – Develops season ticket campaign strategies,
negotiates advertising and media tradeouts, directs promotion coordinator, sales
representative. Master’s degree preferred; bachelor’s degree required, preferably
in marketing. Excellent communication skills a must. Should have extensive
experience in working with corporate sponsors and developing a client base to
support athletic sales.
X Advertising Sales – Major sports league seeks account executive to sell print
advertising for event publications. The ideal candidate will possess two to four
years’ consumer or trade publication sales experience; excellent written and verbal
communication skills; a proven track record of increasing sales volume; the ability
to work in a fast-paced environment; and the flexibility to travel.
College athletic programs

If your ultimate career objective is to secure a position with a professional team or
league, college athletic departments are a great place to start. Nearly all Division I and
Division II athletic programs have marketing, sales, and public relations functions. In
fact, most of the larger Division I programs have an entire marketing department that
is larger than most minor league franchises.
X Coordinator of the Goal Club – Responsibilities include identifying, cultivating,
soliciting, and stewarding donors together with managing special events and direct
mail programs. Candidates must possess a bachelor’s degree and two or three
years of fund-raising experience.
X Athletic Recruiting Coordinator – Responsibilities include developing and
organizing a vigorous recruiting program for eight sports within the guidelines of
NCAA III, represent the athletics department at college fairs, and coordinate all
recruiting activities with the admissions department.
Sporting goods industry

Sporting goods is a $60+ billion industry that is growing and presents career choices
in all of the more traditional marketing or retailing functions. Opportunities include
working for sporting goods manufacturers’ (e.g., Nike, Adidas, Callaway, or Wilson) or
retailers such as Dick’s Sports Authority, or Foot Locker.
X Associate Buyer – Lady Foot Locker is looking for a professional. To qualify you
will need chain store buying experience. Sporting goods exposure a plus.
X General Manager/Catalog Division – An outdoor recreation equipment retailer
in the burgeoning backpacking/mountaineering/climbing industry is looking
for a hands-on GM with full responsibility for its fast-growing catalog division.
595
Appendix A
Responsibilities include bottom-line profitability, strategic planning/execution,
financial planning, marketing, prospecting, circulation and database management,
catalog development and production, purchasing and inventory control, and
systems coordination. Qualifications include five-plus years’ management in a mail-
order operation.
Event planning and marketing

Rather than work for a specific team or league, some sports marketers pursue a career
in events marketing. Major sporting events such as the World Series, All-Star games,
or the Olympics do not happen without the careful planning of an events management
organization. The largest and most well-known events management company is the
International Management Group (IMG) (www.imgworld.com) with offices worldwide.
Event marketers are responsible for promoting the event and selling and marketing
sponsorships for the event.
X Event Management Leader – A service management association serving the
bowling industry. Candidates will have a bachelor’s degree in business or hotel
management along with a proven track record of professional event production.
X Event Planner – National sports marketing firm organizing sports leagues and special
events for young professionals is seeking an entry-level candidate to assist with
operations and promotions of sports leagues, parties, and special events. Should be
sports minded, extremely outgoing, and organized for this very hands-on position.
Researching companies
The previous section gives you a good idea of the types of job opportunities in sports
marketing. Having considered your options, it is now time to get serious about finding
that first job that will launch an exciting career. You will soon send out cover letters
and resumés tailored to each position and organization. If they are not, the prospective
employer will sense you have not done your homework. Your research efforts should
include the following types of information: age of the organization, services or product
lines, competitors within the industry, growth patterns of the organization and of the
industry, reputation and corporate culture, number of employees, and financial situation.
Today, most of the organizational information can be obtained quickly and easily via
the Internet. Other popular sources of industry and company information include the
following: Team Marketing Report’s Inside the Ownership of Professional Sports
Teams, Million Dollar Directory (Dun & Bradstreet), Standard and Poor’s Register, and
Ward’s Business Directory of U.S. Private and Public Companies.
Cover letters and resumés

Once you have researched prospective employers, you are ready to communicate
with the organizations that you wish to pursue. Let us look at how to construct
simple, yet persuasive, cover letters and resumés. Remember, these documents
are within your complete control (think of this as an internal contingency); use this to
your advantage and present yourself in the best possible light. Let us begin with the
fundamentals of cover letter preparation.
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Appendix A
Cover letters
The major objective of any cover letter is to pique the interest of the prospective
employer. First impressions are everything and the cover letter is the employer’s
first glimpse of you. A cover letter is a vital tool in marketing yourself to prospective
employers for several reasons: An effective cover letter will draw attention to your
qualifications and experiences that are most relevant to the position for which you
are applying. Employers often use letters to assess the written communication skills
that you will need for any position. A letter provides you the opportunity to convey to
a potential employer your interest, enthusiasm, and other personal attributes that are
not easily expressed in a resumé alone. There are a few basic guidelines that you can
follow to make your cover letters more effective.
In the first paragraph, state the letter’s purpose and how you found out about
the position. Follow this with an overview of your most impressive job-related
attributes such as skills, knowledge, and expertise. Obviously, the attributes you
choose should relate to the position in mind. The third part of the cover letter should
stem from all the research previously gathered on the organization. Show off your
knowledge of the company and their current needs. Finally, let the organization
know how you can help solve their current needs. Stress the fit between your
background and values and the organization’s culture.
Resumés
Now that your cover letter has been constructed, you are ready to begin work on an
effective resumé. Here are seven tips for writing a resumé that are guaranteed to tell
your story.
1. Be thorough – A good resumé should give the employer an indication of your
potential based on your previous accomplishments. Include things such as job-
related skills, previous work experience, educational background, volunteer
experiences, special achievements, and personal data.
Activities that you might deem to be unimportant could provide a great deal of
insight into your ability to succeed on the job. For example, how about the student
that has coached a Little League team throughout his or her collegiate career?
Some candidates might view this as totally unrelated to the job. However, wise
candidates will see how this activity could be used to demonstrate unique aspects
of their personality such as patience, leadership, and good organizational skills.
2. Be creative – Most students are under the false impression that there is a right
way and a wrong way to organize their resumé. In fact, most career development
centers use a boilerplate format making every student’s resumé standard and
neglecting the job and the industry.
All resumés should include topical areas such as job objectives, skills, knowledge,
accomplishments, personal data, education, employment history, observations
of superiors, and awards. Organizing and writing these sections is limited only by
your imagination. The most important thing to remember is that the format should
reflect both you and the job you are seeking.
3. Use quotations – A powerful tool that is not widely used in resumé preparation
is the use of quotations. These quotes can be found in old performance
evaluations or letters of recommendation. Here is an example of a quote that was
used to reinforce the strength of an application.
597
Appendix A
“Mr. Gamble has contributed in a positive manner to the success of the athletic
department at WPU by organizing and implementing an effective game day
promotional plan.”
– Melissa Luekke, promotions manager,
athletic department, WPU.
Quotes like this can provide further evidence of your abilities while relieving you
of having to toot your own horn.
4. Make the resumé visually appealing – Looks are everything. In one study, 60
percent of employers indicated that they formed an opinion about the candidate
on the basis of the resumé’s appearance. The resumé that looks good will be
given more consideration than one that does not. The resumé that is badly
written and produced will be tossed, regardless of the applicant’s qualifications. A
few things to think about when designing your resumé include length (keep it to
one page), paper (high-quality stock in white or off-white), spelling, grammar, and
neatness (any error is unacceptable).
5. Include a career objective – Most employers consider the career objective to be
the most important part of the resumé. Why? A specific career objective indicates
that you know what you want in a job. This type of goal-directed behavior is what
employers want to see in a candidate. Narrate to demonstrate to the reader what
you have helped the organizations accomplish.
On the other hand, some resumé preparation experts strongly disagree with this
line of reasoning. They argue that by placing an objective on your resumé, you are
limiting the potential position. In other words, if you leave your options open, the
employer will direct your resumé to the job that best suits your qualifications.
The best advice is to have multiple resumés prepared and ready to go with
multiple career objectives. Most people have multiple career interests and do
not have to settle for just one job. If you are truly practicing target marketing, you
should have several different resumés ready. You should try to make the career
objective sound like the description of the job you are targeting. Here is a sample
career objective for a student who wishes to pursue a public/community relations
position at a major university or professional sports franchise:
Public Relations Assistant – Interested in copywriting, editing, writing
speeches and news releases, photography, graphics, etc. Desire experience
on organization’s internal and external publications. Good writing and speaking
skills with communications background should assist in advancement to a
management position within the athletic department of a major university or
professional sports organization.
6. Honesty is the best policy – Employers are checking prospective candidates’
qualifications more than ever before, due to a wave of people falsifying their
credentials. Obviously, deceiving the employer about what you have done, or
what you are able to do, is no way to start a positive relationship.
7. Spread the word – You should seek feedback and constructive criticism about
your resumé by showing it to everyone you know. Ask for comments from
other students, your professors, and career development specialists at school.
In addition, you should circulate it among people in the sports industry. Resumé
writing is a dynamic process that requires constant changes and improvement.
Interviewing
Most jobs in sports marketing require a high degree of interpersonal communication;
598 therefore, the interview becomes a place to showcase your talents. Each person
Appendix A
should have his or her own interview style, but here are some tips that should assist
all job candidates with their interviewing skills.
1. Be mentally prepared – As with athletes, mental preparation is the name of
the game for job seekers. Most job candidates do not come to the interview
fully prepared. To get ready, you should have thoroughly researched the sports
organization. Next, you need to learn as much as possible about the person or
people who will be conducting the interview. Being mentally prepared means being
able to ask intelligent questions. Naturally, the types of questions you ask will vary
by the position of the interviewer. Here are just a few of the potential questions
that you might ask of the personnel manager or human resource representative:
X What do employees like best about the company? What do employees like least
about the company?
X How large is the department in which the opening exists? How is it organized?
X Why is this position open?
X How much travel would normally be expected?
X What type of training program does a new employee receive? What type of
professional development programs are offered? Who conducts them?
X How often are performance reviews given and how are they conducted?
X How are raises and promotions determined? What is the salary range of the position?
X What are the employee benefits offered by the company?
Possible questions for your potential supervisor include:
X What are the major responsibilities of the department?
X What are the major responsibilities of the job?
X What would the new employee be expected to accomplish in the first six months
or year of the job?
X What are the special projects now ongoing in the department? What are some
that are coming in the future?
X How much contact with management is there? How much exposure?
X What is the path to management in this department? How long does it typically
take to get there, and how long do people typically stay there?
Here are some questions that might be asked of would-be colleagues:
X What do you like most or least about working in this company? What do you like
most or least about working in this department?
X Describe a typical workday.
X Do you feel free to express your ideas and concerns? Does everyone in this
department?
X What are the possibilities here for professional growth and promotion?
X How much interaction is there with supervisors, colleagues, external customers?
How much independent work is there?
X How long have you been with the company? How does it compare with other
companies where you have worked?
2. Be physically prepared – Image is important to all organizations, and a large part
of the image that you project is largely a function of your physical appearance.
In other words, if you look the part, the chances of getting the job increase
exponentially. The key to dressing for an interview is not only to be professionally
dressed, but to convey an image that is consistent with the company and the
position. An interview is not the time to redefine the meaning of professional
dress. Make sure you feel comfortable in the clothes that you choose to wear to
599
Appendix A
the interview. If you look good and feel good, you will undoubtedly convey these
positive feelings throughout the interview.
3. Practice makes perfect – Many marketing experts have discussed the
similarities between finding a job and personal selling. When you are job hunting,
you are, in essence, marketing or selling yourself. If you were selling a product,
you would strive to become as familiar as possible with that product. You would
not only learn the positive features and benefits of the product, but understand
the limitations of the product. In this case, you have to know everything the
interviewer could conceivably ask about you. This should not be difficult, but you
have to be prepared. The best way to prepare is through practice and repetition,
so that you feel confident answering questions about yourself.
The following is a list of questions regarding school, work, and personal
experiences that are often asked during the interview. The more you have
thought about these questions prior to the interview, the better your responses.
Questions pertaining to school experiences might include:
X Which courses did you like most? Why?
X Which courses did you like least? Why?
X Why did you choose your particular major?
X Why did you choose to go to the school you attended? What did you like most or
least about this school?
X If you could start college again, what would you do differently?
Questions pertaining to work experiences might include:
X What did you like most or least about the job?
X What did you like most or least about your immediate supervisor?
X Why did you leave the job?
X What were your major accomplishments during this job?
X Of all the jobs you have had, which did you like the most and why? Of all the
supervisors you have had, which did you like the most and why?
Questions pertaining to personal experiences might include:
X Of all the things that you have done, what would you consider to be your greatest
accomplishment and why?
X What do you consider to be your major strengths? What do you consider to be
your major weaknesses?
X What kind of person do you have the most difficulty dealing with? Assuming that
you had to work with such a person, how would you do it?
X What do you think are the most valuable skills you would bring to the position for
which you are applying?
X What are your short-term goals (within the next five years), and what are your long-
term goals?
4. Maintaining a proper balance – A good interviewee will know when to talk
and when to listen. Your job is to present a complete picture of yourself without
dominating the conversation. The best strategy for success is adapting to the
interviewer and following his or her lead. When you are answering questions, do
not let your mouth get ahead of your mind. Take a moment to think and construct
your answers before rushing into a vague and senseless reply.
600
Appendix A
5. The interview process does not end with the interview – After the
interview be sure to write a letter expressing your thanks and desire for future
consideration. It is a good idea to mention something in the body of the letter that
will trigger the memory of the interviewer. Look for unique things that happened
or were said during the interview and write about these. Too often, students
neglect writing this simple letter and lose the opportunity to present their
professionalism one more time.
Where to look for additional information

Sports career books
Aspatore Books. Career Insights: Presidents/GMs from the NFL,MLB, NHL and MLS
on Achieving Personal and Professional Success: Landing a Job with a Sports Team
(Boston: Aspatore Books, 2004).
Field, Shelly. Career Opportunities in the Sports Industry (NY, NY: Checkmark Books,
2004).
Fischer, David. The 50 Coolest Jobs in Sports: Who Got Them, What They Do, and
How Can You Get One! (New York: Arco, 1997).
Floyd, Patricia A., and Allen, Beverly. Careers in Health, Physical Education, and Sports
(Ohio: Brooks/Cole, 2003).
Heitzmann,William Ray. Opportunities in Sports and Fitness Careers (NY, NY:
McGraw-Hill/Contemporary Books, 2003).
Holzhauer,Tom. Sports Career Tips for Teens (Bloomington, IN: AuthorHouse, 2006).
Menard,Valerie. Careers in Sport (Hockessin, DE: Mitchell Lane Publishers, 2001).
Stein, Mel. How to Be a Sports Agent (Harpenden, England: Oldcastle Publishing,
2006).
Sports career Web sites

careerplanning.about.com/od/occupations/a/sports_industry.htm
www.jobsinsports.com/
www.jobs4sports.com/
www.onlinesports.com/pages/jobs.html
www.scottishsport.co.uk/business/jobs.htm
www.sgma.com/jobbankdisplaylistings.cfm
www.sportscareers.com
www.sportscareerfinder.com/
www.sportsdiversityrecruiting.com/
www.sportsmanagementworldwide.com/courses
www.teamworkonline.com/
www.usgolfjobs.com/
www.wiscfoundation.org/
www.womensportsjobs.com/
www.workinsports.com/
601
Appendix A
General career preparation books

Bennett, Scott. The Elements of Resume Style: Essential Rules and Eye-Opening
Advice for Writing Resumes and Cover Letters That Work (AMACOM/American
Management Association, 2005).
Hansen, Katherine, and Hansen, Randall. Dynamic Cover Letters Revised (Berkely, CA:
Ten Speed Press, 2001).
Kador, John. 201 Best Questions to Ask on Your Interview (NY, NY: McGraw-Hill,
2002).
Rosenberg, Arthur, and Hizer, David. The Resume Handbook: How to Write
Outstanding Resumes & Cover Letters for Every Situation (NY, NY: Adams Media
Corporation, 2003).
Whitcomb, Susan Britton. Resume Magic: Trade Secrets of a Professional Resume
Writer, 3rd ed. (St. Paul, MN: JIST Publishing, 2006).
602
Appendix B
Some sports marketing sites of interest on the Internet
Category URL Annotation
Professional www.nba.com Official site of the NBA

Sports www.nhl.com Official site of the NHL
www.nfl.com Official site of the NFL
www.mlb.com Official site of MLB
www.fifal.com Official site of FIFA
www.mlssoccer.com. Official site of MLS
www.wnba.com Official site of the WNBA
www.pga.com Official site of PGA
www.pgatour.com Official site of PGA Tour
www.lpga.com Official site of the LPGA
www.nascar.com Official site of NASCAR
www.indycar.com Official site of Indy Car
www.pba.com Official site of PBA
www.atpworldtour.com Official site of ATP
www.milb.com Official site of Minor League
Baseball
www.formula1.com Formula One Racing
www.theahl.com Official site of the AHL
www.avp.com US Pro Beach Volleyball
International www.sportcal.com Database of International

Sports Sports
www.ausport.gov.au Australian Sports Directory
www.ismhome.com Institute of Sport
Management
www.olympic.org International Olympics
Committee
www.sportaccord.com Umbrella organization of
all Olympic & non-Olympic
international sport feds
603
Appendix B
www.nbcolymics.com NBC Olympic coverage

www.paralympic.org Paralympic information
www.ontariohockeyleague.com Official site of the OHL
www.cfl.ca Official site of the CFL
www.uefa.com Official site of UEFA
www.irb.com International Rugby Board
www.rugbyworldcup.com Rugby World Cup
Sports Media www.espn.go.com ESPN

www.foxsports.com Fox
www.cbssports.com CBS
www.cbssportsnetwork.com CBS Sports Network
www.nbcsports.com NBC
www.cnsi.com CNN and Sports Illustrated
www.sportingnews.com The Sporting News
www.sportsnetwork.com Sportsnetwork sports
www.sportsmediajournal.com Sports Media Journal
www.sports-media.org Video/Education
www.sportsmedianews.com Sports Media Press
Releases
Women in www.womenssportsfoundation.org Women’s Sports

Sports Foundation
www.womenssportsnet.com Women’s Sports
www.womenssportscareers.com Women’s Sports Careers
www.shapeamercica.org formerly
www.aahperd.org/nagws National Assoc. of Women
in Sports
Careers in careerplanning.about.com/od/ Job opportunities

Sports occupations/a/sports_industry.htm
www.sportsmanagementworld Job opportunities
wide.com
www.scottishsport.co.uk Job opportunities
www.workinsports.com/ Job opportunities
www.teamworkonline.com/ Job opportunities
www.wiscfoundation.org/ Job opportunities
www.sportscareers.com Job opportunities
www.sportsdiversityrecruiting.com/ Job opportunities
www.womensportsjobs.com/ Job opportunities
www.sportscareerfinder.com/ Job opportunities
www.jobsinsports.com/ Job opportunities
604
Appendix B
www.usgolfjobs.com/ Job opportunities

www.sfia.org formerly
www.sgma.com/jobbankdisplay Job opportunities
listings.cfm
www.onlinesports.com/pages/jobs. Job opportunities
html
www.teammarketing.com/jobs.cfm Job opportunities
Sporting Goods www.sfia.org Sport & Fitness Industry

& industry info Association formerly
Sporting Goods
Manufacturers Association
www.americansportsdata.com Sporting Goods Research
www.sportinggoodsresearch.com Sporting Goods Research
www.nsga.org National Sporting Goods
Assoc.
www.esports-report.com E-Commerce in Sports
College Sports www.ncaa.com Official site of NCAA Sports

Marketing Industry
www.teammarketing.com General Sports Marketing
Info and Research
www.sportbusinessdaily.com General Sports Marketing
Info
www.sportmarketingassociation.net Sport Marketing Association
www.nasss.org North American Society for Sociology of
Sport
www.sportseconomics.com Sports Economics Info
www.sportsbusinessjournal.com The Sports Business
Journal
www.sportsbusinessnews.com Sports Business News
www.nassm.org North American Society of
Sport Management
www.joycejulius.com Joyce Julius Sponsorship
www.sbrnet.com Sport Business Research
www.sportsbusiness.com Sports Business
www.bleacherreport.com Sports Highlights
www.scarborough.com Scarborough Research
www.nielsen.com Nielsen Research
www.kantarmedia.com Media Research
www.kff.org Henry J. Kaiser Foundation
www.sponsorship.com IEG
605
Appendix B
Other Sports www.soccerlinks.net Soccer links

www.uslacrosse.org US Lacrosse
www.usa-gymnastics.org/links Gymnastics
www.churchilldowns.com Horse racing
www.ntra.com Horse racing
www.baseball-links.com Baseball links
www.baseballprospectus.com Baseball
www.tennis.com Tennis links
www.golflink.com Golf links
www.tenpin.org Bowling links
www.hockeyzoneplus.com Hockey news and
information
Indices www.el.com/elinks/sports Index for general sports

links
www.sports.yahoo.com Index for general sports
www.refdesk.com/sports.html Index for general sports
www.anythingresearch.com Research Index
Educational www.nassm.com/InfoAbout/Sport Colleges offering sports

Opportunities business
MgmtPrograms
http://whatcanidowiththismajor.com/major/sport-management
606
Glossary
activity ratios measure the sales productivity and utilization of assets.
advertising creating and maintaining brand awareness and brand loyalty.
advertising appeals telling why the consumer wants to purchase the sports
product.
advertising budgeting budgeting methods stemming from the objectives the
advertising is attempting to achieve.
advertising execution the format of the advertising.
advertising objectives direct or indirect actions designed to inform, persuade,
remind, and cause consumers in the target market to take action.
aesthetic value one of Wann’s 8 basic motives for watching sport: to appreciate the
beauty of the performance and the pleasure of the art form.
affective component the part of attitude based on feelings or emotional reactions.
agent intermediary whose primary responsibility is leveraging athletes’ worth or
determining their bargaining power.
AIO dimensions statements describing consumers’ activities, interests, and opinions.
amateur sporting event sporting competition for athletes who do not receive
compensation for playing the sport.
ambush marketing a planned effort by an organization to associate itself indirectly
with an event to gain some of the recognition and benefits associated with being an
official sponsor.
antecedent states temporary physiological and mood states that a sports consumer
brings to the participant situation.
arbitrary allocation setting a promotional budget without regard to other critical
factors; allocating all the money the organization can afford.
assurance the knowledge and courtesy of employees and their ability to convey
trust and confidence.
athletic platform for sponsorship, the choice of team, sport, event, athlete, or level
of competition.
attitudes learned thoughts, feelings, and behaviors toward a given object.
attractiveness characteristics of personality, lifestyle, and intellect of the source
(athlete) that lead the target audience to identify with him or her in some fashion.
availability of substitute products as the number of substitute products increases,
demand for the product will decrease.
awareness consumers’ knowledge of a company’s product and services, product
lines, or corporate name.
607
Glossary
behavioral component the part of attitude based on actions.
behavioural leaning concerned with how various stimuli (information about sports)
elicit certain responses (feelings or behaviours) within an individual.
behavioral segmentation grouping consumers based on how much they purchase,
how often they purchase, and how loyal they are to a product or service.
benefits the goods or services consumers derive from a product.
benefits segmentation describing why consumers purchase a product or service or
what problem the product or service solves for consumers.
brand awareness making consumers in the target market recognize and remember
the brand name.
brand equity the value that the brand contributes to a product in the marketplace.
brand image consumers’ set of beliefs about a brand, which shape attitudes
brand loyalty a consistent preference or repeat purchase of one brand over all
others in a product category.
brand mark the element of a brand that cannot be spoken.
brand name the element of the brand that can be vocalized.
branding a name, design, symbol, or any combination that a sports organization on
individual athlete uses to help differentiate its products from the competition.
branding process establishing brand awareness; developing and managing brand
image; developing brand equity; and sustaining brand loyalty.
budgeting obtaining the resources necessary to achieve the marketing plan
goals, and making allocation decisions among the marketing activities and
functions.
buying influences the various roles of individuals involved in the buying process.
classic type of product life cycle characterized by continuous stage of maturity.
coach's role acting as a guide for the salesperson making the sale.
cognitive component the part of attitude concerned with beliefs.
cognitive dissonance experiencing doubts or anxiety about the wisdom of a
decision.
cognitive learning concerned with the ability to solve problems and use observation
as a form of learning.
commercialization final phase of the new product development process in which
full-scale production and distribution of the product begins.
communication allowing and encouraging an understanding of the marketing plan
by all members of the marketing plan by all members of the marketing team; also,
the process of establishing a commonness of thought between the sender and the
receiver.
community involvement community activities in which the sports organization
sponsors public programs, requires time commitments from its employees, partially
funds programs, provides personnel at no charge, and so on.
comparative advertisements contrasting one sports product with another.
comparative messages directly or indirectly comparing a sports product with one or
more competing products in the promotional message.
608
Glossary
competition the attempt all organizations make to serve similar customers; also, a
threat that is thought to be reduced by sponsorship.
competitive objectives those that are directly linked to final pricing
decisions.
competitive parity setting a promotional budget based on what competitors are
spending.
concomitant variation the extent to which a cause and an effect vary together.
consumer demand the quantity of a sports product that consumers are willing to
purchase at a given price.
consumer income consumers’ ability to pay the price of the product.
consumer pricing evaluation process using consumers’ expectations to determine
acceptable price ranges.
consumer socialization learning the skills, knowledge, and attitudes necessary to
be a consumer.
consumer tastes trends and desires of consumers.
contingency control scanning the relevant environments for internal and external
contingencies that could affect the marketing plan.
contingency framework for strategic sports marketing a model for predicting and
strategically aligning the marketing process with internal and external contingencies.
continuous innovations ongoing, commonplace changes such as minor alterations
of a product or introduction of an imitation product.
continuous schedule continually running the advertisement during the advertising
period without any breaks.
control phase of the strategic sports planning process model
control phase the phase of the strategic sports marketing process of evaluating the
response to plans to determine their effectiveness.
convenience sampling techniques choosing sample data collection units that are
easy to reach but may not be representative of the population of interest.
coordination the effective organization of people and their tasks to implement the
marketing plan.
cost of information search affects a consumer’s determination of the acceptable
price of a product.
costs factors associated with producing, promoting, and distributing the sports
product.
coupons certificates that offer reductions in price to induce sales.
creative brief tool used to guide the creative process toward a solution to serve the
interests of the client and the customers.
creative decisions the advertising campaign.
creative process the source of innovative ideas; knowledge accumulation, incubation,
idea generation, and evaluation and implementation; also; generating the ideas and
concepts of the advertising.
creativity a distinctive way of looking at the world, seeking relationships between
things that others have not seen.
credibility a source’s perceived expertise and trustworthiness.
609
Glossary
crisis plan well-defined organizational procedures and strategies to deal with
problems that could occur.
cross-sectional studies surveys that describe the characteristics of a sample at one
point in time.
cultural values widely held beliefs that affirm what is desirable by members of
society.
culture the set of learned values, beliefs, language, traditions, and symbols shared
by members of a society and passed down from generation to generation.
data collection techniques methods of collecting information about a population of
interest.
decision maker in the buying center, the person with the ultimate responsibility to
accept or reject proposals.
decision-making process problem recognition; information search; evaluation of
alternatives; participation; and post-participation evaluation.
decline stage of product life cycle when sales are diminishing.
decoding the interpretation by the receiver of the message sent by the source.
demographic environment population trends such as total number of consumers,
age, ethnic background, geographic dispersion, and so on.
demographic factors variables such as population, age, gender, education,
occupation, ethnic background.
demographic segmentation grouping consumers on the basis of demographic
variables such as age, gender, ethnic background, or family life cycle.
dependent variable the variable to be explained, predicted, or measured.
developing the sports product phase of the new product development process in
which basic marketing decisions are made.
diffusion of innovation the rate at which new sports products spread throughout
the marketplace.
dimensions of service quality reliability, assurance, empathy, responsiveness, and
tangibles.
direct competition competition between sellers producing similar products and
services.
direct objectives designed to elicit a behavioral response from the target audience.
direct sponsorship objectives objectives that have a short-term impact on
consumption behavior and focus on increasing sales.
discontinuous innovations products that are so new and original that they require
major learning by consumers and new consumption and usage patterns.
diversion from everyday life one of Wann’s 8 basic motives for watching sport: to
“get away from it all.”
dynamically continuous innovations new products that represent changes and
improvements but do not strikingly change buying and usage patterns.
early adopters consumers who adopt a new sports product after innovators and
communicate its value to others.
early majority consumers who adopt a sports product after being influenced by
innovators and early adopters.
610
Glossary
easily defined segments grouping people with active interest across neatly split
markets.
economic activity the flow of goods and services between producers and
consumers.
economic buying role a position that governs final approval to buy and that can
approve a sale even when others say no, and vice versa.
economic factors controllable (such as the price of tickets) and uncontrollable (such
as average income) factors that affect game attendance.
economic value one of Wann’s 8 basic motives for watching sport: the potential for
economic gains from gambling on sporting events.
economy the current economic cycle, which influences pricing decisions.
elastic demand the principle that small changes in price will produce large changes
in quantity sold.
elements in the communications process sender, encoding, message, medium,
decoding, receiver, feedback, and noise.
emotional appeals using such emotions as fear, humor, pleasure, or identification
with a team or athlete in advertising.
emotional versus rational appeal attempting to make consumers feel a certain
way about a product, or providing information so consumers can make an analytical
decision.
empathy the caring, individualized attention a firm provides to its customers.
encoding translating the sender’s thoughts or ideas into a message.
entertainment value one of Wann’s 8 basic motives for watching sport: sports as a
form of entertainment.
environmental scanning a firm’s attempt to continually acquire information on
events occurring outside the organization so it can identify and interpret potential trends.
esteem according to Maslow, the need for recognition and status.
estimating demand studying consumer tastes, availability of substitute products,
and consumers’ income to determine the relationship between price and the amount
of product sold.
ethnic background a type of market segmentation that groups consumers on the
basis of having a common race, religion, or nationality.
eustress one of Wann’s 8 basic motives for watching sport: because
it is enjoyable and exciting to the senses.
evaluation of alternatives considering and judging the acceptability of a range of
criteria.
evaluative criteria the features and characteristics that a decision maker looks for.
even keel mode characterized by a buyer that is experiencing no discrepancy
between the current and ideal states.
evoked set alternatives given the greatest consideration by a decision maker.
exchange a marketing transaction in which the buyer gives something of value to
the seller in return for goods and services.
expected price range of substitute products the prices of competitive products
have a major influence on what consumers deem an acceptable price.
611
Glossary
experiential source an external information source.
experimentation research in which one or more variables are manipulated while
others are held constant: the results are then measured.
expertise the knowledge, skill, or special experience possessed by the source of a
message.
extensive problem solving (or extended problem solving) comprehensive
information search and evaluation of many alternatives on many attributes.
external contingencies all influences outside the organization that can affect its
external (or environmental) factors factors beyond the control of the organization
that influence pricing decisions, such as consumer demand, competition, legal issues,
the economy, and technology.
external source a personal, marketing, or experiential source of information.
facility aesthetics the exterior and interior appearance of a stadium, which can play
a role in fan satisfaction and attendance.
fad type of product life cycle characterized by accelerated sales and acceptance of
the product by consumers followed by decline.
family influence the influence of family members on decisions.
family life cycle the concept describing how individuals progress through various
life stages.
family ties one of Wann’s 8 basic motives for watching sport: to foster family
togetherness.
fan identification the personal commitment and emotional involvement customers
have with a sports organization.
fan motivation factors reasons why individuals are sports fans or sports
consumers.
fear appeals telling what negative consequences man occur if the sports product or
service is not used or is used improperly.
feedback the response of a target audience to a message.
financial analysis comparing present with past financial performance, and
collecting and processing financial information that can be used to make strategic
decisions.
fixed costs the sum of the producer’s expenses that are stable and do not change
with the quantity of the product consumed.
flighting schedule advertising expenditures vary in some months and zero is spent
in other months.
focus group a moderately structured discussion session with 8 to 10 people.
frequency the number of times an individual or household is exposed to the media
vehicle.
game attractiveness a situational factor that varies from game to game; its
perceived quality based on the skill level of participants.
gatekeepers in the buying center, those who control the flow of information to
other members.
geodemographic segmentation grouping consumers by combining geographic and
demographic characteristics.
612
Glossary
geographic segmentation grouping consumers on the basis of local, regional,
national, or international characteristics.
global events at the top of the Sports Event Pyramid; events that have the broadest
international coverage and generate a great deal of interest among consumers.
goal a short-term purpose that is measurable and challenging, yet attainable and
time specific.
goods tangible, physical products that offer benefits to consumers
growth stage of product life cycle when sales increase.
growth mode characterized by a buyer wanting to improve an already good
situation.
habitual problem solving (or routinized problem solving) limited information
search and evaluation of alternatives; a decision becomes a habit or routine.
harvesting (or milking) when an organization retains the product but offers little or
no marketing support.
health appeals telling why purchasing the product will be beneficial to consumers’
health.
hierarchy of effects seven steps of leading consumers to purchase the product:
unawareness, awareness, knowledge, liking, preference, conviction, action.
idea generation initial phase of the new product development process;
consideration of any and all ideas.
idea screening phase of the new product development process in which ideas are
evaluated on how well they fit the organization’s goals and consumer demand.
ideal customer a hypothetical customer model against which all potential
customers can be evaluated to determine where salespeople should invest time and
energy.
idle product capacity “down time” in which a service provider is available but there
is no demand.
image building a sponsoring organization associates itself and/or its brands with the
positive images generated by the unique personality of the sporting event.
implementation putting strategy into action; executing the plan.
implementation phase phase of the strategic sports marketing process of deciding
who will carry out the plans, when the plans will be executed, and how the plans will
be executed.
income objectives concerned with achieving maximum profits or simply
organizational survival.
independent variable the variable that can be manipulated or altered in some way.
indirect competition sports marketers’ competition with all other forms of
entertainment for the consumers’ dollar.
indirect objectives establishing pre behavioral responses to advertising that should
lead to direct behavioral responses.
indirect sponsorship objectives objectives that ultimately lead to the desired goal
of enhancing sales; generating awareness, beating competition, reaching new target
markets, building relationships, and improving image.
inelastic demand the principle that changes in price will have little or no impact on
sales.
613
Glossary
influencers in the buying center, those who can affect the decision-making process.
information accurate information is essential for decision making and necessary in
all phases of the strategic sports marketing process.
information search seeking relevant information to resolve a problem.
innovations new sports or sports products.
innovators consumers who are the first to adopt a new sports product as it enters
the marketplace.
integrated marketing communications how a sports organization integrates and
coordinates its promotional mix elements to deliver a unified message.
internal contingencies all influences within the organization that can affect its
internal factors factors controlled by the organization, including other marketing
mix elements, costs, and organizational objectives, which influence pricing
decisions.
internal source information recalled from memory, based on previous experience.
international events the second level of the Sports Event Pyramid; events that
have a high level of interest in a broad but not global geographic region, or that are
global in scope but have a lower level of interest in some of the countries reached.
intrapreneurship the process of creating and innovating within an organization, or
corporate entrepreneurship.
introduction initial stage of product life cycle when the product is introduced in the
marketplace.
judgment sample study participants chosen subjectively based on the researcher’s
judgment that they will best fit the purpose of the study.
just noticeable difference (JND) the point at which consumers detect a difference
between the original price and the adjusted price.
laggards consumers who adopt a sports product in its declining stage.
late majority consumers who adopt a sports product in its late stages of maturity.
law of demand the principle that consumers are more likely to purchase products at
a lower price than a higher price.
layout accessibility referring to whether spectators can move freely about a
stadium.
learning a relatively permanent change in response tendency due to the effects of
experience.
legal issues factors such as legislation that affect pricing.
leverage ratios measure the extent to which creditors finance the
organization.
licensing a contractual agreement whereby a company may use another
company’s trademark in exchange for a royalty or fee; also, a practice whereby a
sports marketer contracts with other companies to use a brand name, logo, symbol,
or characters.
lifestyle advertisements portraying the lifestyle of the desired target audience.
limited problem solving internal and sometimes limited external information search
and evaluation of a small number of alternatives on few criteria.
614
Glossary
liquidity ratios indicate the organization’s ability to pay short-term obligations
without selling assets.
local events the lowest level of the Sports Event Pyramid: events that have the
narrowest geographic focus and attract a small segment of consumers who have a
high level of interest.
logo see brand mark.
logotype see brand mark.
longitudinal study a study conducted over time in which several measurements are
made.
love and belonging according to Maslow, the social need to be a respected part of
a group.
macroeconomic elements the big picture, such as the national income.
majority fallacy assuming that the largest group of consumers should always be
selected as the target market.
market niche a very homogenous group of consumers as reflected by their unique
need.
market segmentation identifying groups of consumers based on their common
needs.
market selection decisions decisions made to segment markets, choose targeted
consumers, and position the sports product against the competition. These decisions
that dictate the direction of the marketing mix.
marketing environment the competitive forces to be assessed in the strategic
sports marketing process.
marketing mix integrating sports products, pricing, promotion, and place to meet
identified sports consumer needs.
marketing mix variables factors that must be considered when determining the
price of a sports product.
marketing myopia the practice of defining a business in terms of goods and
services rather than in terms of the benefits sought by customers.
marketing orientation concentration on understanding the consumer and providing
a sports product that meets consumers’ needs, while achieving the organization’s
objectives.
marketing research the systematic process of collecting, analyzing and reporting
information to enhance decision making throughout the strategic sports marketing
process
marketing sources information from advertisements, sales personnel, brochures,
Web sites, and so on.
Maslow’s hierarchy of needs a theory of human motivation based on classification
of needs.
match-up hypothesis Belief that states the more congruent the image of the
endorser with the image of the product being promoted, the more effective the message
mature market adults, age 55-plus, about 21 percent of the U.S. population.
maturity stage of product life cycle when sales stabilize.
media scheduling continuous, flighting, pulsing, or seasonal types of advertising
schedules.
615
Glossary
media strategy determining what medium or media mix will be most effective in
reaching the desired target audience, and how this media should be schedules to
meet advertising objectives.
medium a communications channel, such as television, radio, newspapers, signage,
billboards, Web sites, and so on.
message the exact content of the words and symbols to be transmitted to the
receiver.
message characteristics the attributes of the promotional message.
methodology description of how a study is conducted.
microeconomic elements smaller elements of the big picture, such as consumer
income level.
milestone review evaluation of critical events, major allocations, achievements, or
the passage of a certain amount of time as part of process control.
mob effect a situation in which consumers feel it is socially desirable to attend
“special” sporting events
model of participant consumption behavior model that tries to understand how
consumers arrive at their decisions.
monitoring strategic thrusts evaluating the strategic direction of the marketing
plan.
monopolistic competition an environment where numerous brands with identical
products are sold requiring both price competition and non-price competition.
monopoly when one seller sets the price for a unique product.
motivation an internal force that directs behavior towards the fulfillment of needs.
national events in the Sports Event Pyramid, events that have an extremely high
level of interest among consumers in a single country or two countries.
need for affiliation fans’ need to feel connected to the community and to identify
with the team.
new product category entries sports products that are new to the organization, but
not to consumers. The sample units are chosen subjectively by the researcher
new product development process idea generation, idea screening, analysis of the
concept, development of the product, test marketing, and commercialization.
new-to-the-world products brand new sports innovations such as the first in-line
skates, the first sailboard, or the advent of arena football.
niche marketing the process of carving out a relatively tiny part of a market that has
a very special need that is not currently being filled
noise interference in the communications process.
nonprice competition the creation of a unique sports product through the
packaging, product design, promotion, distribution or any marketing variable other than
price
nonprobability sampling the researcher chooses sample units subjectively so
there is no way of ensuring that the sample represents the population of interest.
objective and task method identifying promotional objectives, defining the
communications tools and tasks needed to meet those objectives, and then adding up
the costs of the planned activities.
616
Glossary
objectives the long-range purposes of the organization that are not quantified or
limited to a time period.
oligopoly a small number of firms controlling a market.
one-sided versus two-sided messages that convey either just the positive or both
the positive and negative features of the product.
organizational culture the shared values and assumptions of organizational
members that shape an identity and establish preferred behaviors in an organization.
organizational objectives Signposts along the road which help an organization
focus on its purpose as stated in the mission statement.
organizational strategies the means by which the organization achieves its
objectives and marketing goals.
organized sporting events Sporting competitions that are sanctioned and
controlled by a controlling authority such as a league, association or sanctioning body.
overconfident mode characterized by a buyer that believes it is already exceeding
its goals.
participant consumption behavior actions performed when searching for,
participating in, and evaluating the sports activities that consumers feel will satisfy their
needs
participants those who take part in a sport.
perceived risk the uncertainty associated with decision making and the concern for
the potential threats of making the wrong decision
percentage of sales determining a standard percentage of promotional spending
and applying this proportion to past or forecasted sales to arrive at the amount to be
spent.
perception the complex process of selecting, organizing and interpreting sports-
related stimuli.
perception of value the acceptable price ranges for sports products, which varies
from person to person and is based on perceived benefits.
perceptual maps created through advanced marketing research techniques to
examine product positioning.
perishability the ability to store or inventory “pure goods,” whereby services are
lost if not consumed.
personal selling a form of person-to-person communication in which a salesperson
works with prospective buyers and attempts to influence their purchase needs in the
direction of his or her company’s products or services
personal source information from friends and family.
personal training products designed to benefit participants in sports at all levels
of competition (e.g., fitness centers, health services, sports camps, and instruction).
personality a set of consistent responses an individual makes to the environment
physical environment natural resources and other characteristics of the natural
world that have an impact on sports marketing.
physical surroundings the location, weather, and physical aspects of the
participation environment.
physiological needs according to Maslow, the biological needs to eat, drink, and
meet other physiological needs, such as have some level of physical activity.
617
Glossary
planning assumptions control monitoring the validity of the assumptions used to
develop the marketing plan.
planning phase phase of the strategic sports marketing process of understanding
sports consumers through marketing research and identifying their wants and
needs.
pleasure or fun appeals directed at target audiences that participate in or watch
sports for fun, social interaction, or enjoyment.
political, legal, and regulatory environment legal and political issues that affect
sports and sports marketing.
point-of-purchase or P-O-P displays a promotional display designed to attract
consumers’ attention to a particular product or retail display area
positioning fixing the sports product in the minds of the target market by
manipulating the marketing mix
postparticipation evaluation evaluation of a decision after making it and
participation has begun.
premiums items given away with the sponsors product as part of the sales
promotion.
pretest a “trial run” for a questionnaire to determine if there are any problems in
interpreting the questions.
price a statement of value for a sports product
price adjustments changing the price of a product to stimulate demand.
price competition stimulating consumer demand primarily by offering consumers
lower prices
price discounts incentives offered to buyers to stimulate demand or reward
behaviors that are favorable to the seller
price elasticity the extent to which consumer purchasing patterns are sensitive to
fluctuations in price
price increases raising established prices to keep up with inflation or if there is
excess demand for the product.
price inelasticity see price elasticity.
price reductions efforts to enhance sales and achieve greater market share by
directly lowering the original price
primary data data gathered for the specific research question at hand
primary reference group those people, such as friends and coworkers, who have
frequent contact with us and have the power to influence our decisions
probability sampling objective procedures in which sample units have a known
and nonzero chance of being selected for study and the accuracy of the results can be
estimated.
problem definition specifying what information is needed to assist either in solving
problems or identifying opportunities
problem recognition the result of a discrepancy between a desired state and an
actual state large enough and important enough to activate the entire decision-making
process
process control measuring and evaluating the effects of actions that have already
been taken to execute the marketing plan.
618
Glossary
producers and intermediaries the manufacturers of sports products or the
organizations that perform some function in the marketing of sports products.
product characteristics the important attributes or characteristics that, when taken
together, create the total product.
product design the aesthetics, style and function of the sports product
product form product variations within a category.
product life cycle a useful tool for developing marketing strategy and then revising
this strategy as a product moves through the stages of introduction, growth, maturity
and decline
product line a group of products that are closely related because they satisfy a class
of needs, are used together, are sold to the same customer groups, are distributed
through the same type of outlets or fall within a given price range
product mix the total assortment of product lines the sports organization sells
product quality consumers’ perception of the performance, features, reliability,
conformance, durability, serviceability, aesthetics, and perceived quality of a
product.
product warranties statements indicating the liability of the manufacturer for
problems with the product.
professional sports sporting competitions in which athletes receive compensation,
commonly classified as major or minor league status.
profitability ratios indicate how profitable the organization is during a period of time.
projective techniques methods that allow respondents to project their feelings,
beliefs, or motivations onto a relatively neutral stimulus.
promotion all forms of communication to consumers.
promotional budgeting determining the amount to spend on promotion based on
maximizing the monies available.
promotion mix elements the combination of elements, including advertising,
personal selling, sponsorship, public relations and sales promotion designed to
communicate with sports consumers.
promotional objectives informing, persuading, and reminding the target audience.
promotional planning identifying target market considerations; setting promotional
objectives; determining the promotional budget; and developing the promotional
mix.
psychographic segmentation grouping consumers on the basis of a common
lifestyle preference and personality.
public relations the element of the promotion mix that identifies, establishes and
maintains mutually beneficial relationships between the sports organizations and the
various publics on which its success or failure depends
pull strategy any method a company uses to generate demand for a product. A
pull marketing campaign is customer-focused, but should still start with the analysis
of the product the company wants to sell. The company needs to determine what
the product’s key features are and who is most likely to demand it through extensive
market research. Often used to stimulate demand for the sports product so that
retailers are forced to stock the sports product, target audience is the ultimate
consumer.
619
Glossary
pulsing schedule ad expenditures may vary greatly, but some level of advertising is
always taking place.
purchasers responsible for negotiating and formally carrying out the terms of the
sponsorship.
pure competition a market structure that has so many competitors that none can
singularly influence the market price. It does not exist in the sports industry.
pure monopoly one seller who sets the price for unique product.
push strategy focuses on taking the product through the channel of distribution
to the customer, and putting the product in front of the customer at the point of
purchase. This type of marketing strategy hopes to minimize the amount of time
between a customer discovering a product and buying that product. To accomplish
this, companies use aggressive and wide-reaching ads to make the biggest and most
immediate impact they can on customers.
quality dimension of goods how well a product conforms to specifications related
to design and function.
quantity discounts rewarding buyers for purchasing large quantities of a sports
product by lower prices.
quota sampling sample elements chosen on the basis of some control
characteristic or characteristics of interest to the researcher
ratio analysis quantitative analysis of information based on line items in financial
statements like the balance sheet, income statement and cash flow statement; the
ratios of one item – or a combination of items – to another item or combination are
then calculated. Ratio analysis is used to evaluate various aspects of a company’s
operating and financial performance such as its efficiency, liquidity, profitability and
solvency.
reach the number of people exposed to an advertisement in a given medium
receiver the audience or the object of the source's message.
regional events in the Sports Event Pyramid, events that have a narrow geographic
focus but high interest levels in the region.
reference groups individuals who influence the information, attitudes, and behaviors
of other group members
relationship marketing the process of creating, maintaining, and enhancing strong,
value-laden relationships with customers and other stakeholders.
reliability the ability to perform promised service dependably and accurately.
reposition to change the image or perception of the sports entity in the minds of
consumers in the target market.
research design the framework or plan for a study that guides the collection and
analysis of data.
research objectives the various types of information needed to address a problem
or opportunity.
research problem statement definition of the problem to be solved or opportunity
to be identified.
research proposal a written blueprint that describes all the information necessary to
conduct and control the study.
response modes the various reactions of buyers in a sales situation.
620
Glossary
responsiveness the willingness to help customers and provide prompt service
rewards as part of an implementation plan, used to motivate behavior that supports
the strategy.
roles patterns of behavior expected by people in a given position.
safety needs according to Maslow, the need to feel physically safe and to remain
healthy.
sales funnel a model of organizing clients so that sales people can allocate their
efforts in the most efficient and effective manner.
sales objectives concerned with maintaining or enhancing market share and
encouraging sales growth.
sales promotions a variety of short term, promotional activities that are designed to
stimulate immediate product demand.
sample a subset of the population of interest from which data is gathered to
estimate some characteristic of the population.
sampling inducing customers to try new products by giving away a product or
putting on an exhibition game.
sanctioning authoritative permission or approval that makes a course of action
valid, often surrounding a consideration, influence, or principal that dictates an ethical
choice.
scientific advertisements featuring the technological superiority of the advertised
product or using research or scientific studies to support these claims.
scoreboard quality a dimension of the stadium that is sometimes seen as the focal
point of the interior.
seasonal type of product life cycle characterized by rise and fall of sales according to
opening and closing dates of the sports season.
seasonal discounts reduction in prices to stimulate demand in off-peak periods
seating comfort perceived comfort of the seating and the spacing of the seats
relative to each other in a stadium.
secondary data data that has already been collected, but is still relevant to the
research question.
second screening a supplementary social, and synchronized experience that
delivers enhanced content to a tablet or smartphone, engaging a consumer through a
second screen (Second Screen Society, 2014).
selective attention a consumer’s focus on a specific marketing stimulus based on
personal needs and attitudes.
selective interpretation consumers perceive things in ways that are consistent
with their existing attitudes and values.
selective retention the tendency to remember only certain information.
self-actualization according to Maslow, the individual’s need to fulfill personal life
goals.
self-esteem enhancement one of Wann’s 8 basic motives for watching sport; to
enhance or maintain self-esteem through associating with a winning team.
separability the ability to separate the quality of a good from the quality of a service.
service quality the physical, interactive, and corporate dimensions of a product.
621
Glossary
services intangible, non-physical products.
sex appeals type of emotional appeal used in advertising.
sidedness based on the nature of the information presented to the target audience;
only positive features of the product, or both benefits and weaknesses.
signage a factor of the sportscape that affects spectators’ enjoyment of the game
experience.
simplified model of the consumer-supplier relationship Framework for
describing the consumers of sport, the sports products that they consume, and the
suppliers of the sport product.
simulated test market nontraditional test market approach in which respondents
participate in a series of activities in a laboratory environment.
situational factors factors that may affect a consumer’s acceptable range of prices;
presence or absence of time, usage situation, and social factors.
situational factors temporary factors within a particular time or place that influence
the participation decision-making process
slice-of-life advertisements showing an athlete or consumer in an everyday
situation in which the consumer might be using the advertised product.
social class the homogeneous division of people in a society sharing similar values,
lifestyles, and behaviors that can be hierarchically categorized.
social concerns a type of organizational objective that influences pricing.
social learning watching others and learning from their actions.
social surroundings the effect of others on a participant during participation in an
event.
socialization learning the skills, knowledge, and attitudes necessary for
participation.
socializing agents direct and indirect influences on children.
socioeconomic segmentation grouping consumers on the basis of social class and
income.
sociological or external factors influences outside an individual that affect the
decision-making process.
source sender of a message; beginning of the communication process.
space allocation a factor of the sportscape that affects spectators’ enjoyment of
the game experience.
spectators consumers who derive their benefit from the observation of the
event.
sponsor the individual or group that provides the support, similar to a benefactor.
sponsorship investing in a sports entity (athlete, league, team, event, etc.) to
support overall organizational objectives, marketing goals, and/or more specific
promotional objectives
sponsorship budgeting methods determining competitive parity, arbitrary
allocation, percentage of sales, and the objective and task method.
sponsorship evaluation process of determining the sponsorship decision by the
buying center in the organization.
sponsorship objectives direct or indirect objectives.
622
Glossary
sponsorship program one element of the promotional strategy.
sport a source of diversion or a physical activity engaged in for pleasure.
sport sponsorship acquisition model of the corporate sponsorship decision-making
process by Arthur, Scott, and Woods.
sporting event the primary product of the sports industry – the competition.
sporting goods tangible products that are manufactured, distributed, and marketed
within the sports industry.
sports equipment manufacturers responsible for producing and sometimes
marketing the sports equipment used by consumers.
Sports Event Pyramid Shani and Sandler’s model of categorizing various
sponsorship opportunities.
sports information news, statistics, schedules, and stories about sports.
sports involvement the perceived interest in and personal importance of sports to
an individual participating in a sport.
sports marketing applying marketing principles and processes to sports products
and nonsports products associated with sports.
sports marketing mix the coordinated set of product and service strategies, pricing
decisions, and distribution issues that sports organizations use to meet marketing
objectives and satisfy consumers’ needs.
sports product a good, a service, or any combination of the two designed to provide
benefits to a sports spectator, participant, or sponsor.
sports product map the intersection of the dimensions of goods–services and
body–-mind.
sports sponsorship exchanging money or product for the right to associate a name
or product with a sporting event.
sportscape the physical surroundings of the stadium that impact spectators desire
to stay at the stadium and ultimately return to the stadium.
stacking using both a manufacturer's coupon and a store coupon for purchase.
stadium access issues such as availability of parking, ease of entering and exiting
the parking areas, and location of parking relative to the stadium.
stadium factors variables such as newness of the stadium, stadium access,
aesthetics of the stadium, seat comfort, and cleanliness of the stadium, which are all
positively related to game attendance.
stadium signage on-site advertising.
staffing and skills having a leader who can champion and communicate the
marketing strategy and a staff that cares about and can implement the strategy.
standardization receiving the same level of quality over repeat purchase.
strategic control the critical evaluation of plans, activities, and results, thereby
providing information for future strategic action
stategic selling a personal selling strategy that takes into account buying influences,
red flags, response modes, win results, the sales funnel, and the ideal customer profile.
strategic sports marketing process the process of planning, implementing, and
controlling marketing efforts to meet organizational goals and satisfy consumers’
needs.
623
Glossary
strategic windows a limited period of time during which the characteristics of a
market and the distinctive competencies of a firm fit together well.
sweepstakes and contests sales promotional tools; games of chance or luck and
competitions that award prizes on the basis of contestants’ skills and ability.
tangibility the ability to see, feel, and touch the product.
tangibles the physical facilities, equipment, and the appearance of the service
personnel
target market considerations identifying the target market and planning
promotions to reach that specific market.
target marketing choosing the segment(s) that will allow an organization to most
efficiently and effectively attain its marketing objectives
task definition the reasons that occasion the need to participate in a sport, which
affect the decision-making process.
TEAMQUAL a survey instrument used to evaluate spectators’ perceptions of
service quality for an NBA team.
technical buying role screening potential suppliers on the basis of meeting or failing
to meet a variety of technical specifications that have been determined in advance.
technology a rapidly changing environmental influence on sports marketing; it can
have an indirect or direct influence on pricing decisions.
test marketing introducing a new product or service in one or more geographic
areas on a limited basis.
testimonials statements about the sports product given by endorsers.
time a situational influence on the decision-making process.
total cost sum of the variables and fixed costs.
Total Quality Management (TQM) an integrative management concept for
continuously improving the quality of goods and services at all levels of the organization.
trademark identifies that a sports organization has legally registered its brand name
or brand mark and thus prevents others from using it.
trouble mode characterized by a buyer experiencing difficulties.
trustworthiness the honesty and believability of the athlete endorser.
types of adopters various groups of consumers likely to try a product at any given
stage.
unitary demand the situation when price changes are offset exactly by changes in
demand; price and demand are perfectly related.
unorganized sports the sporting activities people engage in that are not sanctioned
or controlled by some external authority.
user buying role making judgments about the potential impact of the product on job
performance.
values widely held beliefs that affirm what is desirable in a culture.
variable costs the sum of the producer’s expenses that vary and change as a result
of the quantity of the product being consumed
vision a long-term roadmap for where the organization is headed.
win-results in the strategic selling process, an objective result that gives one or
more of the buying influences a personal win.
624
Illustration credits
Chapter 1
Ads
Ad 1.1 – Concept of sports marketing
Credit: Reprinted with permission. www.cartoonstock.com Ref. aton1188
Ad 1.2 – Become a Fantasy Football God Ad: Fantasy sports blurring the line between
spectator and participant
Source: Sporting News
Articles
Sports Marketing Hall of Fame: Mark McCormack
Source: Susan Vinella, “Sports Marketing Pioneer Dead at 72”; “IMG’s McCormack
Hailed as Visionary,” Plain Dealer, May 17, 2003, a1; Eric Fisher, “IMG Founder
McCormack Spiced Up the Sports World,” The Washington Times, May 18, 2003, c3.
Credit: The Washington Times
URL: http://www.washingtontimes.com/news/2003/
may/18/20030518-120347-6818r/?page=all
Girls get their game on – with great gear: Sports teams cater to women fans with new
lines of feminine fashion
Article Author: Ellen Warren
Rightsholder: Courtesy of Chicago Tribune
URL: http://articles.chicagotribune.com/2011-01-28/lifestyle/sc-cons-0127-warren-
shopping-super-bo20110127_1_women-fans-sports-leagues-team-colors
Figures
Figure 1.3 – Top 10 Sports Websites (March 2011; Total U.S. Home, Work, and
University Internet Users
Source: Created by Author, adapted from: http://www.ebizmba.com/articles/
sports-websites
Photos
Photo 1.1 – Fans in grandstand
Source: Shutterstock.com – ID # 1855093
Credit: © aceshot1/Shutterstock.com
625
Photo 1.2 – The sports collectors dream – the Baseball Hall of Fame. The Baseball Hall
of Fame’s plaque gallery, housing plaques for all Hall of Famers, November 26, 2011
in Cooperstown, NY.
Source: Shutterstock.com # 90134158
Credit: © Aspen Photo/Shutterstock.com
Tables
Table 1.1 – 25 Coolest Minor League Stadiums
Source: Author Generated Table
Article Author: Doug Mead
Rightsholder: BleacherReport
URL: http://bleacherreport.com/articles/842135-power-ranking-the-25-coolest-minor
league-stadiums
Table 1.2 – NFL Media Rights

URL: http://espn.go.com/nfl/story/_/id/7353238/
nfl-re-ups-tv-pacts-expand-thursday-schedule
Table 1.3 – Most Popular Sports and Fitness Activities Based on Core Participation
(age 6 and above; U.S. residents)
Credit: Reproduced with kind permission of Sports & Fitness Industry Association,
www.sfia.org
Webcaptures
Webcapture 1.1 – ESPN: The growth of sports information on the Web
URL: www.espn.go.com
Webcapture 1.2 – Ski.com: Ski.com provides information for ski enthusiasts

Courtesy ski.com
URL: www.Ski.com
Webcapture 1.3 – NCAA: One of the most powerful sanctioning bodies

Copyright: © National Collegiate Athletic Association, 2012. All rights reserved.
URL: http://www.ncaa.com/
Chapter 2
Ads
Ad 2.1 – Cobra stresses an improved performance based on their technological
product improvements
Source: Cobra Golf
Ad 2.2 – NCAA capitalizes on the new opportunities based on the growth in women’s
sports.
Source: NCAA © National Collegiate Athletic Association, 2012. All rights reserved.
626
Articles
NBA Releases 2011-2012 Regular Season Schedule
Source: Slamonline.com
Credit: The NBA and individual member team identifications reproduced herein are
used with permission from NBA Properties, Inc. © 2014 NBA Properties, Inc. All rights
reserved.
URL: http://www.slamonline.com/online/nba/2011/12/
nba-releases-2011-2012-regular-season-schedule/
On the Industry's Radar

Article Author: Dan Muret
Rightsholder: Sports Business Journal
URL: http://m.sportsbusinessdaily.com/Journal/Issues/2012/01/16/In-Depth/Trends.
aspx
Big-Time College Sports is an Out-of-Control Monster

Article Author: Ken Reed
Credit: Courtesy of Ken Reed
URL: http://leagueoffans.org/2013/06/11/
big-time-college-sports-is-an-out-of-control-monster/
MLB Forms Diversity Committee

Article Author: Associated Press
Credit: Used with permission of Bloomberg L.P. Copyright© 2014. All rights reserved.
URL: http://espn.go.com/mlb/story/_/id/9158114/
mlb-forms-task-force-study-how-increase-diversity
Photos
Photo 2.1 – After the Lockout, the NBA is Still Thriving: Chris Bosh #4 participates in
an NBA basketball game at the Air Canada Centre on January 24, 2010 in Toronto,
Canada. The Toronto Raptors beat the Los Angeles Lakers 106-105.
Credit: Domenic Gareri/Shutterstock.com
Photo 2.2 – The mature market: staying young and having fun in record numbers
Credit: Lisa F. Young/Shutterstock.com
Tables
Table 2.1 – College Sports TV: The Main Players
URL: http://www.broadcastingcable.com/news/news-articles/
battle-college-sports-fans/106216
Table 2.2 – Top 10 Sports Video Games (Ranked by total U.S. units sold)
URL: www.complex.com/video-games/2012/12/
the-10-best-sports-video-games-of-2012/fifa-13
627
Webcaptures
Webcapture 2.1 – Myrtle Beach Pelicans using a low-cost market niche strategy
Source: BB&T Coastal Field
Credit: Reproduced courtesy of Myrtle Beach Pelicans
Webcapture 2.2 – ESPN Fantasy Sports: ESPN.com providing sports information via
the Internet
Source: ESPN.com
Webcapture 2.3 – C-12 Lacrosse showing its latest advances in Lacrosse

Technology
Source: C-12 Lacrosse
Reproduced with permission of Entrotech.com
Chapter 3
Articles
Marketing Research in Action: the Gary Southshore RailCats
Source: Center for Sport Recreation and Tourism Development, KSU / Gary
Southshore RailCats Feasability Study
Hitting a Home Run with the Digital Generation

Rightsholder: Scarborough USA 2012
URL: http://www.prnewswire.com/news-releases/hitting-a-home-run-with-the-digital-
generation-145950285.html
Case Study: A Sponsorship Measurement Solution

Source: A Sponsorship Measurement Solution, IEG October, 2011. Ukman, L &
Krasts, M
Credit: IEG
URL: http://www.sponsorship.com/ieg/files/07/07903e35-98d1-4f1c-b318-
7524b3104222.pdf
Drivers should take a spin online, study shows

Article Author: Tripp Mickle
URL: http://www.sportsbusinessdaily.com/Journal/Issues/2012/11/05/Research-and-
Ratings/NASCAR-study.aspx
Case Study: Survey Shows Split on Racial Opportunity

Article Author: Mark Fainaru-Wada
Rightsholder: ESPN – Originally published in The Good Men Project
URL: http://sports.espn.go.com/espn/otl/news/story?id=6006813
628
Figures
Figure 3.4 – Designing a questionnaire
Source: Churchill. IM/TM - Basic Marketing Research, 3/E, 3E. © 1996 South-Western,
a part of Cengage Learning, Inc. Reproduced with permission.
URL: www.cengage.com/permissions
Photos
Photo 3.1 – Field Hockey: The growing number of women’s sport participants is being
monitored through secondary marketing research.
Credit: Elissa Unger
Photo 3.2 – Focus groups

Source: Shutterstock.com – ID #55855492
Credit: Franz Pfluegl/Shutterstock.com
Tables
Table 3.3 – North American Golf Report Table of Contents
Credit: Golf Research Group
URL: http://www.golf-research-group.cpm/reports/22/content.html
Webcaptures
Webcapture 3.1 – SBRNET: Sport Business Research is an excellent source of primary
and secondary data
Credit: Courtesy www.SBRNET.com.
Chapter 4
Ads
Ad 4.1 – Wrangler® & Brett Farve
Source: Wrangler®
Credit: Courtesy Wrangler®
Articles
Spotlight on International Sports Marketing
Article author: Richard Lewis
Credit: Courtesy of Sport England
URL: http://sportengland.org/about-us/what-we-do/annual-report/
Sports Marketing Hall of Fame: Babe Didrikson Zaharias

Credit: Elizabeth Lynn, Babe Didrikson Zaharias: Champion Athlete (New York,
Chelsea House, 1989). 1-55546-684-2 © 1989 by Chelsea House Publishers an imprint
of Infobase Learning.
High School Sports Participation Tops 7.6 Million, Sets Record

Article Author: Lauren Fellmeth
629
Source: “High School Sports Participation Tops 7.6 Million, Sets Record”
Credit: NFHS: National Federation of State High School Associations.
URL: http://www.nfhs.org/content.aspx?id=3282.
P90X vs. Insanity: Which is the best for you?

Article Author: Rebecca Anderson
Source: Sports & Fitness
URL: http://weekly.blog.gustavus.edu/2013/02/22/
p90x-vs-insanity-which-is-the-best-for-you/
Figures
Figure 4.2 – Maslow’s Hierarchy of Needs
Source: A.H. Maslow, Motivation and Personality, 2nd ed. (New York: Harper and Row,
1970).
Credit: Maslow, Abraham H.; Frager, Robert D.; Fadiman, James, Motivation and
Personality, 3rd Edition, © 1987.
Reprinted by permission of Pearson Education, Inc., Upper Saddle River, NJ.
Figure 4.5 – Model of Attitude Formation

Source: Adapted from Del Hawkins, Roger Best, and Kenneth Coney. Consumer
Behavior: Building Marketing Strategy, 7/e © 1998 The McGraw-Hill Companies, Inc.
ISBN 0256218951
Rightsholder: McGraw-Hill Companies
Credit: © The McGraw-Hill Companies, Inc.
Figure 4.6 – Model of Consumer Socialization

Source: John Mowen, Consumer Behavior 3rd ed. (New York: Macmillan, 1993)
Rightsholder: Macmillan
Figure 4.7 – The Structure of Social Class

Source: Richard P. Coleman, “The Continuing Significance of Social Class to
Marketing,” Journal of Consumer Research, vol. 10 (December 1983), 265-280.
Rightsholder: Journal of Consumer Research
Credit: Reprinted by permission of the University of Chicago Press.
Photos
Photo 4.1 – Father and son fishing together by the ocean
Credit: BlueOrange Studio/Shutterstock.com
Photo 4.2 – Many consumers see a discrepancy between the “ideal” and “actual”
body.
Credit: Diego Cervo/Shutterstock.com
630
Photo 4.3 – A growing number of consumers participate in high-risk sports.
Credit: Vitalii Nesterchuk/Shutterstock.com
Photo 4.4 – Sports participants fulfilling the need for self-actualization.

Credit: Dudarev Mikhail/Shutterstock.com
Photo 4.5 – The high involvement cyclist

Credit: Ljupco Smokovski/Shutterstock.com
Photo 4.6 - Karate: Girls’ sport participation is eroding traditional gender roles
Credit: Lipik/Shutterstock.com
Photo 4.7 – Marathon

Credit: Suzanne Tucker/Shutterstock.com
Tables
Table 4.1 – Sport Participation Changes from 2013 (Participants ages six and up)
Credit: Courtesy The Sporting Goods Marketing Association
Table 4.2 – Golfer’s Self-Reported Traits and Personality Characteristics

Source: Yankelovich Partners, “How Golfers Are Likely to Describe Themselves.”
Rightsholder: Yankelovich Partners
Credit: The Futures Company Worldwide
Table 4.3 – Why People Participate in Sports

Source: George Milne, William Sutton, and Mark McDonald, “Niche Analysis: A
Strategic Measurement Tool for Managers,” Sport Marketing Quarterly, vol. 5, no. 3
(1996), 17–21.
Rightsholder: Sports Marketing Quarterly
Credit: Courtesy of Fitness Information Technology, Morgantown, WV.
Table 4.4 – Segmentation of Runners by Motives

Source: Andrew J. Rohm, George R, Milne, and Mark McDonald, “A Mixed-Method
Approach for Developing Market Segmentation Typologies in the Sports Industry,”
Sport Marketing Quarterly, 2006, 15, 29-39, © 2006 West Virginia University
631
Table 4.5 – Core American Values
Source: Leom Shiffman and Leslie Kanuk. Consumer Behavior, 5th ed. (Upper Saddle
River, NJ: Prentice Hall, 1994).
Credit: Courtesy The Sporting Goods Marketing Association
Table 4.6 – Household Income for Select Sports and Activities

Credit: reproduced with kind permission of Sports & Fitness Industry Association,
www.sfia.org
Webcaptures
Webcapture 4.1 – Kayak Online: Online information source
Source: Kayak Online
URL: http://www.kayakonline.com
Chapter 5
Articles
Baseball Suffers Drop in Attendance
Article Author: Ken Rosenthal
Rightsholder: Foxsports
URL: http://msn.foxsports.com/mlb/story/
attendance-down-not-just-at-miami-marlins-games-060513
Sports Marketing Hall of Fame: David Stern

Source: Adapted from E.M. Swift, “Corned Beef to Caviar.” Sports Illustrated (June 3,
1991), 74-87.
Credit: Time, Inc.
Sports Wagering
Rightsholder: American Gaming Association
Credit: American Gaming Association
URL: http://www.americangaming.org/industry-resources/research/fact-sheets/
sports-wagering
Figures
Figure 5.2 – Model of Sportscape
Source: K.L. Wakefield, J.G. Blodgett, and H.J. Sloan, “Measurement and
Management of the Sportscape,” Journal of Sport Management, vol. 10, no. 1 (1996),
16.
Credit: Courtesy of Human Kinetics, Inc.
Figure 5.3 – Model for Fan Identification

Source: William A. Sutton. Sports Marketing Quarterly.
632
Photos
Photo 5.1 – Group of happy Brazilian soccer fans commemorating victory, with the flag
of Brazil swinging in the air.
Credit: mangostock/Shutterstock.com
Photo 5.2 – Traditional corrida - bullfighting in Spain. Bullfighting has been prohibited in
Catalunia since 2011 for animal torturing.
Shutterstock.com – ID # 155340746
Credit: Matej Kastelic/Shutterstock.com
Tables
Table 5.1 – Differences between Spectators and Participants
Source: Adapted from John Burnett, Anil Menon, and Denise T. Smart, “Sports
Marketing: A New Ball Game with New Rules,” Journal of Advertising Research
(September-October 1993), 21-33.
Rightsholder: Journal of Advertising Research
Credit: Courtesy www.warc.com
Table 5.2 – Who’s a Sports Fan?

Source: “Americans to Rest of World: Soccer Not Really Our Thing,” page 8
Credit: Courtesy of the Pew Research Center
URL: http://www.pewsocialtrends.org/2006/06/14/
americans-to-rest-of-world-soccer-not-really-our-thing/
Table 5.3 – Eight Value Dimensions of Sport to the Community

Source: James J. Zhang, Dale G. Pease, and Sai C. Hui, “Value Dimensions of
Professional Sport as Viewed by Spectators,” Sports and Social Isssues (February 21,
1996), 78–94. Copyright © 1996, SAGE Publications.
Credit: Reprinted by Permission of SAGE Publications.
Table 5.4: What’s Your Favorite Sport? Favorite sport to watch by interest in sports
news.
Source: “Americans to Rest of World: Soccer Not Really Our Thing,” page 9
Credit: Courtesy of the Pew Research Center
URL: http://www.pewsocialtrends.org/2006/06/14/
americans-to-rest-of-world-soccer-not-really-our-thing/
Webcaptures
Webcapture 5.1 – Richard Petty Driving Experience: Allowing NASCAR fans to feel
racing thrills
Source: Richard Petty Driving Experience
Credit: Richard Petty Driving Experience / DrivePetty.com
URL: http://www.drivepetty.com/
633
Webcapture 5.2 – New sports facilities such as the Cowboy Stadium in Dallas
influence attendance.
Source: dallascowboys.com
Chapter 6
Ads
Ad 6.1 – Hodgman is capitalizing on the growing mature market.
Credit: Pure Fishing – Columbia
Ad 6.2 – Pygmy is segmentation on the basis of the family life cycle.

Credit: www.pygmyboats.com
Ad 6.3 – 47 Brand positions itself as the official licensee of the National

Basketball Association.
Credit: Forty Seven Brand
Articles
Technical Report: Sport England Market Segmentation
Source: Sport England
Credit: Courtesy Sport England
URL: http://www.sportengland.org/research/about-our-research/market-segmentation/
Generation M2: Media in the Life of 8 to 18 Year Olds, The Henry J. Kaiser Family
Foundation, 2013.
Credit: Courtesy The Henry J. Kaiser Family Foundation
URL: http://kff.org/other/poll-finding/report-generation-m2-media-in-the-lives/
ESPN W Brand
URL: http://blogswithballs.com/2010/10/espnw-a-brand-for-female-athletes/
The IWFL and the History of Women’s Tackle Football

Credit: Reprinted with permission from Yahoo. © 2014 Yahoo.
URL: http://voices.yahoo.com/the-iwfl-history-womens-tackle-football-4268395.html
NFL May be Hitting Stride with Female Fans

Rightsholder: ESPN, published 2/3/12
URL: http://espn.go.com/espnw/news-commentary/article/7536295/nfl-finding-
success-targeting-women-fans-merchandise-fashion [accessed 1/2/14]
Move over Fútbol. The NFL Scores Big With Latinos

Rightsholder: Dialogo Public Relations (http://Dialogo.us/), published 1/3/12
Credit: Diálogo Public Relations
URL: http://www.dialogo.us/move-over-futbol-the-nfl-scores-big-with-latinos/
[accessed 1/2/14]
634
Spotlight on International Sports Marketing – NBA continues to grow internationally
Source: http://www.nba.com/2012/news/10/26/nba-international-growth.ap/index.html
Rightsholder: NBA.com
used with permission from NBA Properties, Inc. © 2014 NBA Properties, Inc. All rights
reserved.
Baseball Continues to Assist Storm Relief Efforts

Article Author: John Schlegel and Mark Newman
Rightsholder: MLB.com
URL: http://washington.nationals.mlb.com/news/article.
jsp?ymd=20121102&content_id=40155972&vkey=news_chc&c_id=chc
Figures
Figure 6.1 – Pro-Sports that Appeal to Teenagers: Youth who say they are very or
somewhat interested in the sport.
Credit: With permission of The Futures Company
Photos
Photo 6.1 – Young boy watching a baseball game: Professional sports are realizing the
importance of the kid’s market to their long-term success.
Credit: Christopher Penler/Shutterstock.com
Photo 6.2 – Polo European Championship match Switzerland against Germany

on September 10, 2010 in Ebreichsdorf, Austria: Polo is a sport that has typically
appealed to the upper class
Credit: fritz16/Shutterstock.com
Tables
Table 6.2 – Most Popular Sports/Athletic/Fitness Activities U.S. Population, Age 55+,
Based on Total Participation
Credit: reproduced with kind permission of Sports & Fitness Industry Association,
www.sfia.org
Table 6.3 – AIO Dimensions

Source: Journal of Advertising Research
Credit: courtesy www.warc.com
Table 6.4 – Lifestyle Analysis Report: Lifestyle Ranking Index

Source: PRIZM 2010, Experian Marketing Solutions, Inc, 2010. Nielson 2010
635
Table 6.5 – Five Market Segments for Golf Participants
Source: Sam Fullerton and H. Robert Dodge, “An Application of Market Segmentation
in a Sports Marketing Arena: We All Can’t Be Greg Norman,” Sport Marketing
Quarterly, vol. 4, no. 3 (1995), 43–47.
Table 6.6 – PRIZM Cluster Categories and Descriptions

Source: How to Use PRIZM (Alexandria, VA: Claritas, 1996). Courtesy of Claritas, Inc.,
of Arlington, VA.
Rightsholder: Neilsen
Table 6.8 – Six Dimensions or Attributes of Sports

Source: James H. Martin, “Using a Perceptual Map of the Consumer’s Sport Schema
to Help Make Sponsorship Decisions,” Sport Marketing Quarterly, vol. 3, no. 3 (1994),
27–33.
Webcaptures
Webcapture 6.1 – Cleveland Browns Youth Football: A wide array of youth football
programs exist that target participation in youth football and cheerleading.
Credit: Reprinted with permission Cleveland Browns Inc. (2014).
Webcapture 6.2 – ESPN W: Reaching women’s soccer fans on the web

Source: ESPN.com
Chapter 7
Articles
Spotlight on International Sports Marketing - 5 Worst Athlete-Endorsed Products of All
Time
Article Author: Adam Dietz
Rightsholder: Bleacher Report
URL: http://bleacherreport.com/articles/1165407-the-worst-athlete-
endorsed-products-of-all-time?search_query=athlete endorsements#/
articles/1434868-the-50-biggest-sports-fails-of-2012
Spotlight on Sports Marketing Ethics – NCAA Native American Mascot Controversy

URL: http://www.bernardgoldberg.com/ncaa-native-american-mascot-controversy/
Miami Marlins attendance reverts to old Sun Life Stadium levels

Article Author: Douglas Hanks
URL: http://www.miamiherald.com/2013/08/01/3537432/marlins-attendance-
reverts-to.html
636
Sports Marketing Hall of Fame – Phil Knight
Source: http://www.biogs.com/famous/knightphilip.html
Credit: © 2002-2014 Danny Rosenbaum All Rights Reserved
Photos
Photo 7.1 – This baseball, glove, and bat represent pure goods.
Credit: David Lee/Shutterstock.com
Photo 7.2 – This competition represents a pure service.

Credit: Courtesy Cory Hindel
Photo 7.3 – Future Redbirds in their St. Louis Cardinals licensed baby gear
Source: Courtesy Matthew Shank
Photo 7.4 – Bike manufactures must stress the importance of product design and
technology.
Credit: Dudarev Mikhail/Shutterstock.com
Tables
Table 7.1 – Wilson Sporting Goods Product Mix
Source: Paraphrased by Author – Wilson Sporting Goods, www.wilsonsports.com
Credit: Courtesy Wilson Sporting Goods
Table 7.3 – Importance Weights Allocated to the Five TEAMQUAL Dimensions

Source: Mark A. McDonald, William A. Sutton, & George R. Milne, “TEAMQUAL:
Measuring Service Quality in Professional Team Sports,” Sport Marketing Quarterly,
vol. 4, no. 2 (1995).
Rightsholder: Sport Marketing Quarterly
Table 7.4 – Quality Dimensions of Goods

Source: Adapted from D.A. Garvin, “Competing on the Eight Dimensions of Quality,”
Harvard Business Review (November-December 1987). 101-109. Copyrighted ©1987
by the President and Fellows of Harvard College; all rights reserved.
Credit: Reprinted by permission of Harvard Business School Press.
Webcaptures
Webcapture 7.1 – TaylorMade-Adidas Golf Extends Their Product Line with Adidas
Golf Footwear and Apparel
Credit: © 2014 Taylor Made Golf Company, Inc.
Webcapture 7.2 – Sports logos gallery on the web

Rightsholder: Baseball Almanac, Inc
URL: http://www.baseball-almanac.com/ 637
Webcapture 7.3 – Licensed merchandise on the Web
Credit: Reproduced with kind permission of FansEdge™, Incorporated
Chapter 8
Articles
Nike + FuelBand Makes Life a Sport
Article Author: Nike, Inc.
Credit: Courtesy of Nike, Inc.
URL: http://nikeinc.com/news/nike-fuelband-makes-life-a-sport#/inline/6742
Sports Marketing Hall of Fame – Bill Rasmussen

Source: Richard Hoffer, “Bill Rasmussen,” Sports Illustrated (September 19, 1994),
121
Credit: Courtesy of Time, Inc
Spotlight on Sports Marketing Ethics – College Sports Have Become Too

Commercialized
URL: http://sites.psu.edu/swk5473sec9engl137h/2013/04/03/
college-sports-have-become-too-commercialized/
Credit: Reprinted with permission of Samuel Kantner
Fantasy Sports Becoming Big Business as Popularity Continues to Rise

Article Author: Kyle Clapman
Credit: Courtesy Kyle Clapham
URL: http://news.medill.northwestern.edu/chicago/news.aspx?id=205473
John McEnroe’s Bold Move To Revive US Tennis

Article Author: Bernard A. Chavis
URL: http://bleacherreport.com/
articles/406753-john-mcenroes-bold-move-to-revive-us-tennis
Spotlight on International Sports Marketing – X Games Global Expansion Continues

With TV Deals in New Host Markets, Syndication Deals in Multiple Other Countries
Article Author: Grace Coryell
Rightsholder: ESPN
URL: http://espnmediazone.com/us/press-releases/2013/01/x-games-global-expansion-
continues-with-tv-deals-in-new-host-markets-syndication-deals-in-multiple-other-
countries/
638
Photos
Photo 8.1 – Concept testing is used to understand consumer reactions to sports such
as white water rafting.
Credit: Ammit Jack/Shutterstock.com
Photo 8.2 – Extending the product life cycle of the waterbike.

Credit: Heather Renee
Tables
Table 8.3 – Critical Success Factors for New Products
Source: Courtland L. Bovee and John Thill, Marketing (New York: McGraw-Hill, 1992),
307-309. 9780070067349
Table 8.4 – Extending the Product Life Cycle

Source: Joel Evans and Barry Berman, Marketing, 6th ed. (New York: Macmillan, 1992),
439.
Webcaptures
Webcapture 8.1 – The new sport of Bossaball combines volleyball, football,
gymnastics, and capoeira.
Credit: www.Bossaballsports.com
Chapter 9
Ads
Ad 9.1 – Arnold Palmer: one of the most credible endorsers ever.
Source: Lamkin Corporation
Articles
Sports Marketing Hall of Fame – Bill Veeck
Source: Adapted from Bill Veeck, Veeck as in Wreck: Autobiography of Bill Veeck
(New York: Simon and Schuster, 1962).
Spotlight on Sports Marketing Ethics – Endorsements Remain Buyers’ Market

Article Author: Terry Lifton
URL: http://www.sportsbusinessjournal.com/article/66990
Spotlight on Sports Marketing Ethics – How impact of “Tiger Recession” changed

athlete marketability
Article Author: Bill Sanders
URL: http://www.sportsbusinessdaily.com/Journal/Issues/2010/08/20100802/From-
The-Field-Of/How-Impact-Of-Tiger-Recession-Changed-Athlete-Marketability.aspx
639
Figures
Figure 9.1 – Communication Process
Credit: Solomon, Michael R., Consumer Behavior, 3rd Edition, © 1996, p. 194.
Reprinted by permission of Pearson Education, Inc., Upper Saddle River, NJ.
Photos
Photo 9.1 – Having greater knowledge of sports such as hockey moves consumers
through the hierarchy of effects
Source: Shutterstock # 109773617
Credit: muzsy/Shutterstock.com
Copyright: Michael Pettigrew/Shutterstock.com
Tables
Table 9.1 – Creating a More Effective Message
Source: James MacLachlan, “Making a Message Memorable and Persuasive,”
Journal of Advertising Research, vol. 23 (December 1983-January 1984), 51-59.
Rightsholder: Journal of Advertising Research
Credit: courtesy www.warc.com
Table 9.3 – Most watched programs in U.S. television history

Source: Nielsen Newswire 2014, “Super Bowl XLVIII Draws 111.5 Million Viewers,
25.3 Million Tweets,” published 2/3/14
URL: http://www.nielsen.com/us/en/newswire/2014/super-bowl-xlviii-draws-111-5-
million-viewers-25–3-million-tweets.html [accessed June 20, 2014]
Table 9.4 – Top 50 Sports Advertisers

Source: Sports Business Journal
Chapter 10
Articles
Spotlight on Sports Marketing Ethics – Sex Sells? Trend May be Changing
Article Author: Kate Fagan
Source: ESPNW
URL: http://espn.go.com/espnw/w-in-action/nine-for-ix/article/9604247/
espnw-nine-ix-sex-sells-female-ahtletes-trend-changing
Spotlight on Sports Marketing Ethics – Lance Armstrong’s Fall from Athletic Grace
Doesn’t Diminish His Greatest Triumph
Article Author: Brian Mazique
Rightsholder: Bleacher Report
URL: http://bleacherreport.com/articles/1383267-lance-armstrongs-fall-from-athletic-
grace-doesnt-diminish-his-greatest-triumph
640
Armstrong faces $200 million salary loss with reputation hit
URL: http://www.bloomberg.com/news/2012-10-24/armstrong-faces-200-million-
salary-loss-with-reputation-ruined.html
Case Study – Impact of Facebook Advertisments

Rightsholder: Neilson
Big 4 jersey rights value put at $370m

Article Author: Terry Lefton
URL: http://www.sportsbusinessdaily.com/Journal/Issues/2011/02/20110207/
Marketing-and-Sponsorship/Jerseys.aspx.
NBA Cares evolving after 5 years of Service

Article Author: John Lombardo
URL: http://www.sportsbusinessdaily.com/Journal/Issues/2010/10/20101018/Leagues-
and-Governing-Bodies/NBA-Cares.aspx.
Photos
Photo 10.1 – Stadium signage – one of the first forms of promotion
Credit: Eric Broder Van Dyke/Shutterstock.com
Photo 10.2 – Coca-Cola creates a positive association with baseball by using stadium
signage.
Rightsholder: [email protected], Laura M. Hoffman
Photo 10.3 – These runners all exemplify the human billboard

Credit: Mr Pics/Shutterstock.com
Photo 10.4 – Athlete signing autographs

Credit: Chad McDermott/Shutterstock.com
Tables
Table 10.1 – The Creative Brief & The Client’s Role
Source: Forbes
Credit: Reprinted by permission of Forbes Media LLC © 2014
Table 10.2 – 50 Most Marketable Active Athletes

Authors: David Cushnan, James Emmett, Eoin Connolly, Ian McPherson and Michael
Long
641
Credit: www.sportspromedia.com
URL: http://www.sportspromedia.com/notes_and_insights/
the_worlds_50_most_marketable_2013
Table 10.3 – Guidelines for Using Sports Celebrities as Endorsers

Source: Adapted from Amy Dyson and Douglas Turco, “The State of Celebrity
Endorsement in Sport,” Cyber-Journal of Sport Marketing
URL: www.cad.gu.edu.au//cjsm.dyson.htm.
Table 10.4 – Profiles of Major Media Types

Source: Adapted from Philip Kotler and Gary Armstrong, Marketing: An Introduction,
4th ed. (Upper Saddle River, NJ: Prentice Hall), 471. Kotler, Philip R; Armstrong, Gary,
Marketing: An Introduction, 4th Edition, © 1997, pp. 471, 312. Credit: Reprinted by
permission of Pearson Education, IIlC., Upper Saddle River, NJ.
Table 10.5 – Top 5 Countries by Internet Penetration

Source: http://www.internetworldstats.com/stats.htm
Credit: © 2000 - 2014, Miniwatts Marketing Group. All rights reserved.
Webcaptures
Webcapture 10.1 – Cobra Golf using direct objective
Source: Cobra Golf
Webcapture 10.2 – Upper Deck: Sales promotion advertised on the Web

Source: Upper Deck
Webcapture 10.3 – Easton Sports: Easton stresses its competitive advantage

Source: Easton Sports
Webcapture 10.4 – Ashworth Inc – Fred Couples creates a powerful image for the
Ashworth Collection
Credit: © 2014 Taylor Made Golf Company, Inc.
Webcapture 10.5 – In the Hole Golf – The Internet has become a popular medium for
all forms of online purchasing.
Source: InTheHoleGolf.com
Webcapture 10.6 – Golf Channel – The Golf Channel, PGA, and LPGA team up for
online contests.
Credit: Golf Channel.com
Webcapture 10.7 – Twitter – Social-media continue to emerge as an interactive web

strategy
Source: Twitter
Credit: Nick Pangio
URL: https://twitter.com/nickpangio
642
Webcapture 10.8 – Philadelphia Eagles reach out to the community
Source: Philadelphia Eagles.com
Credit line: Courtesy of the Philadelphia Eagles
Chapter 11
Articles
Scheuring Speed Sports Announces Partnership With Ford Motor Company
URL: http://www.isocracing.com/2013/09/13/
scheuring-speed-sports-announces-partnership-with-ford-motor-company/
Cleveland Cavaliers 2012-13 Promotional Schedule: Fans Will Wig Out, Fly High and
Get a “Kick” Out Of This Season’s Premium Giveaways, Theme Nights and More!
used with permission from NBA Properties, Inc. 2014 NBA Properties, Inc. All rights
reserved.
URL: http://www.nba.com/cavaliers/releases/promotional-schedule-130927 , accessed
12-11-2013.
Adelaide United Energised by New Sponsorship

Article Author: Michael Long
URL: http://www.sportspromedia.com/news/adelaide_united_energised_by_new_
sponsorship/
Understanding Why Sponsorship Continues to Grow

Article Authors: Rick Burton and Norm O’Reilly
URL: http://www.sportsbusinessdaily.com/Journal/Issues/2011/01/20110124/Opinion/
Burton.aspx
London 2012 Sponsors and Ambush – and the Lessons for Rio 2016
URL: http://www.sportspromedia.com/guest_blog/
london_2012_sponsors_and_ambush_and_the_lessons_for_rio_2016.
Beats by Dre Gives Headphones to British Athletes, Angering IOC

Article Author: Martin Rogers
Rightsholder: Yahoo Sports
Credit: Reprinted with permission from Yahoo. © 2014 Yahoo URL: http://sports.
yahoo.com/news/olympics--beats-by-dre-gives-headphones-to-british-athletes--
angering-ioc.html
643
Spotlight on Sports Marketing Ethics – Congress Adopts Legislation to Curb Ambush
Marketing During 2016 Summer Olympics
Article Authors: Rodrigo Borges Carneiro, Dannemann Siemsen Bilger, & Ipanema
Moreira
Rightsholder: International Trademark Association
Credit: Reprinted with permission from INTA Bulletin Vol. 65 No. 2January 15 2010
copyright 2010 International Trademark Association, Authors Rodrigo Borge” Carneiro,
Dannemann Siemsen Dilge’, & Ipanema Moreira.
URL: http://www.inta.org/INTABulletin/Pages/BRAZILCongressAdoptsLegislationtoCurb
AmbushMarketingDuring2016SummerOlympics.aspx
Behind the Scenes at the 2013 Waste Management Open

Rightsholder: BMA
Credit: Business Marketing Association (BMA), Phoenix Chapter
URL: http://bmaphoenix.org/events/behind-the-scenes-at-the-2013-waste-manage
ment-open/
Lance Armstrong Nike Contract Terminated

Article Author: Michelle Chapman
URL: http://www.huffingtonpost.com/2012/10/17/lance-armstrong-nike-contract-
terminated_n_1973192.html
Fenton High School looking at boosting corporate sponsorships of athletics

Article Author: Sarah Wojcik
Rightsholder: Mlive
URL: http://www/mlive/com/news/flint/index.ssf/2012/06/
fenton_high_school_proposes_po.html
Hot Seahawks add Boeing, Starbucks Deals

Article Author: Terry Lefton
URL: http://www.sportsbusinessdaily.com/Journal/Issues/2013/07/29/Franchises/
Seahawks.aspx.
Spotlight on Sports Marketing Ethics – Nike Won’t Drop Penn State’s Paterno, So We
Should Drop Nike
Article Author: Clare O’Connor
Rightsholder: Forbes
Credit: Reprinted by permission of Forbes Media LLC © 2014
URL: http://www.forbes.com/sites/clareoconnor/2011/11/14/
nike-wont-drop-penn-states-paterno-so-we-should-drop-nike/
Career Spotlight – Lesa Ukman and IEG

644
URL: http://www.sportspromedia.com/notes_and_insights/
lesa_ukman_the_sponsorship_pathfinder/0/
Figures
Figure 11.1 – The Sponsorship Process
Source: Hawkins et al., Consumer Behavior: Implications for Marketing Strategy, 6/e
© 1994 © The McGraw-Hill Companies, Inc. ISBN: 0256139725
Credit: © The McGraw-Hill Companies, Inc.
Figure 11.3 – Sports Sponsorship Acquisition Model

Source: Reprinted by permission from D. Arthur, D. Scott, and T. Woods. “A
Conceptual Model of the Corporate Decision-Making Process of Sport Sponsorship
Acquisition” Journal of Sport Management, vol. 11, no. 3 (1997), 229.
Credit: Courtesy of Human Kinetics, Inc.
Photos
Photo 11.1 – Little League (Youth Baseball League)
Credit: Timothy Kosheba/Shutterstock.com
Tables
Table 11.1 – Official sponsors of NASCAR
Source: Adapted from http://www.nascar.com/en_us/sponsors.html
Table 11.2 – Castrol North America – Sponsorship Criteria Requirements

Credit: BP Lubricants USA Inc.
URL: www.refresh.castrolusa.com/sponsors
Table 11.3 – Sponsorship Opportunities for the Wyndam Championship Sponsorship

levels
Credit: Courtesy PGA TOUR
Table 11.6 – Importance of Sponsorship Objectives

Source: Doug Morris and Richard L. Irwin, “The Data-Driven Approach to Sponsorship
Acquisition,” Sport Marketing Quarterly, vol. 5, no. 2 (1996), 9.
Table 11.7 – Wegmans LPGA Championship Sponsorship Levels

Credit: Children’s Success Fund Special Events, LLC / Wegmans LPGA Championship
URL: http://www.wegmanslpga.org/sponsorship-opps.aspx, accessed 12-13-2013.
Table 11.8 – University Merchandise Sales Leaders in 2013

Credit: Collegiate Licensing Company - an IMG Company
URL: http://www.clc.com/News/Archived-Rankings/Rankings-Q4-2012.aspx
645
Webcaptures
Webcapture 11.1 – Disabled athletes compete in Paralympic games
Source: U.S. Paralympics/U.S. Olympic Committee
Credit: © International Paralympic Committee
Webcapture 11.2 – University of Texas’ Corporate partner program

Credit: www.texassports.com / UT Athletics.
Chapter 12
Articles
Deal to end lockout reached
Article Author: Adam Schefter
Rightsholder: ESPN.com
URL: http://espn.go.com/nfl/story/_/
id/6797238/2011-nfl-lockout-owners-players-come-deal-all-points-sources-say
Sports Marketing Hall of Fame – Pete Rozelle

Source: “Innovator Rozelle Dies at 70.” Cincinnati Enquirer (December 7, 1996),
C1, C5. Credit: Used with permission of Bloomberg L.P. Copyright© 2014. All rights
reserved.
Spotlight on Sports Marketing Ethics – Astronomical Athlete Salaries: Are They Worth
It?
Credit: Orley Amos
URL: http://cc.kangwon.ac.kr/~kimoon/pr/issues/IS02.html
The NFL vs. Ticket Scalpers: Super Bowl Edition

Article Author: Ira Boudway
Rightsholder: Bloomberg Businessweek
Credit: The YGS Group
URL: http://www.businessweek.com/articles/2013-09-20/
the-nfl-vs-dot-ticket-scalpers-super-bowl-edition
New Era Tickets uses iovation to Keep Scalpers and Fraudsters Out of the Arena
Article Author: iovation Inc. (2013)
Credit: www.iovation.com
URL: https://www.iovation.com/images/uploads/case-studies/PDF/iovation-newera-
ticketing-case-study.pdf
Orioles raise season-ticket prices slightly, expand variable-pricing system

Article Author: Eduardo A. Encina
Credit: © The Baltimore Sun
URL: http://articles.baltimoresun.com/2013-12-06/sports/
bs-sp-orioles-ticket-prices-1207-20131206_1_single-game-tickets-pricing-orioles
646
Figures
Figure 12.1 – Internal and External Influences on Pricing
Source: Gary Armstrong & Philip Kotler; Marketing: An Introduction, 7th ed. 2005.
Credit: Kotler, Philip R; Armstrong, Gary, Marketing: An Introduction, 4th Edition,
© 1997, pp. 471, 312. Reprinted by permission of Pearson Education, IIlC., Upper
Saddle River, NJ.
Photos
Photo 12.1 – Golf Lessons: To some, golf lessons may be priceless
Credit: Cindy Hughes/Shutterstock.com
Tables
Table 12.2 – An Example of the Fan Cost Index® (FCI) for the NBA
Credit: Fan Cost Index® / Team Marketing Report.
URL: http://www.teammarketing.com/fci.cfm?page=fci_nhl_06-07.cfm
Table 12.3 – 2013 Sport/Recreational Activity Participation

Source: Courtesy National Sporting Goods Association
Webcaptures
Webcapture 12.1 – Loveland Ski may use seasonal discounting
Credit: Loveland Ski Area
URL: http://skiloveland.com
Chapter 13
Articles
Dew Action Sports Tour
Credit: Active Imagination Inc. Sports Marketing
URL:http://www.marketingforsports.com/content393.html
Busy Offseason Ahead for Arena Football League: Fan Take

Article Author: Eric R. Ivie
Rightsholder: Yahoo Sports
Credit: Reprinted with permission from Yahoo. © 2014 Yahoo.
URL: http://sports.yahoo.com/news/busy-offseason-ahead-arena-football-league-
fan-163400668.html.
Sports Marketing Hall of Fame – Gary Davidson

Source: Steve Rushin, “Gary Davidson,” Sports Illustrated (September 19, 1994), 145.
Credit: Courtesy of Time, Inc.
647
The 100 Worst Things in Sports
Article Author: Zack Pumerantz
URL: http://bleacherreport.com/articles/1375225-the-100-worst-things-in-sports
How Athletes are fighting for Endorsement Dollars

URL: http://www.sportsbusinessdaily.com/SB-Blogs/Events/Sports-Marketing-
Symposium/2012/10/Athlete-Endorsements.aspx.
Photos
Photo 13.1 – Sports organizations often utilize creative marketing strategies to target
consumers
Credit: RTimages/Shutterstock.com
Photo 13.2 – Racing & Sponsorship: Sponsors such as M&M must design controls to
evaluate sponsorship effectiveness.
Disclaimer: M&M’S, M, M in a Circle and the M&M’S Characters are registered
trademarks of Mars, Incorporated and its affiliates. These trademarks are used with
permission. Mars, Incorporated is not associated with Routledge.
Credit: Getty Images
Tables
Table 13.1 – Experience Rankings of Professional Sports Teams
Source: ESPN.com
Table 13.2 – Most Important Skills for Sports Marketing Managers

Source: Peter Smolianov and David Shillbury, “An Investigation of Sport Marketing
Competencies, Sport Marketing Quarterly, vol. 5, no. 4 (1996), 27-36.
Table 13.3 – Guidelines for Designing Reward Systems

Source: John Pearce and Richard Robinson, Formulation, Implementation, and Control
of Competitive Strategy, 5th ed. (Boston: Irwin, 1994). 0-256-12634-8. 11th edition
published by McGraw Hill, 2008
Credit: Reproduced with permission of McGraw-Hill Education, LLC
Table 13.7 – Top Ten Sports Scandals

Authors: Michael Dub and Patty Hodapp
Credit: MensFitness.com
URL: http://www.mensfitness.com/leisure/
sports/11-biggest-sports-scandals-of-all-time?page=2
648
Webcaptures
Webcapture 13.1 – Teamwork Online – Sports careers on the Web.
Source: http://www.teamworkonline.com
Webcapture 13.2 – Sponsorship ROI Evaluation

Source: Joyce Julius & Associates, www.joycejulius.com
Disclaimer
The publishers have made every effort to contact authors/copyright holders of

works reprinted in Sports Marketing 5th Edition and to obtain permission to publish
extracts. This has not been possible in every case, however, and we would welcome
correspondence from those individuals/companies whom we have been unable to
trace. Any omissions brought to our attention will be remedied in future editions.
649
Index
Please note that references to non-textual material such as Figures, Photographs or Tables will
be in italics, while references to Notes will be followed by the letter ‘n’.
AAA Sacramento River Cats baseball team, versus two-sided messages, 386, 616;
306 testimonials, 387, 623
Aardsma, David, 461 AEG, 309
acceptability criterion, 56 aerobics, 27
accidental sampling see convenience sampling aerodynamics, 239
techniques aesthetic value, 186, 607
accounting systems, 581–3 affective component, attitudes, 156, 607
action, hierarchy of effects model, 362 affective response, 194
Active People and Taking Part surveys, Sport affiliation need, 186–7, 202, 616
England, 211–12 African Americans, 79, 126, 127, 129, 228,
activities, interests and opinions (AIO), 234, 353–4
235, 456, 607 Agassi, Andre, 328, 399
activity ratios, 583, 607 age factors, market segmentation, 213–20
actualized athletes, 147 agents, 34–5, 607; socializing, 158–9, 621
Adelaide United, 440 aggression, level of, 141, 142, 145–6
Adidas, 306, 347, 349, 392, 434, 441, 453 Aikman, Troy, 351
adolescents, market segmentation, 216–17 AIO dimensions, 234, 235, 456, 607
adopters, 337–8, 623; early, 338, 610; early Ali, Muhammad, 7, 8, 332, 349, 387
majority, 338, 610; innovators, 337, 614; Allen, Leslie, 329
laggards, 338, 614; late majority, 338, Allen, Paul, 69, 72
614 Allen, Ray, 47
advertisements: comparative, 386–7, 608; amateur sporting events, 21, 607
sample, 592, 593, 594, 595–6; slice-of-life, ambush marketing, 451–2, 454–6, 607
387, 621 American Basketball Association (ABA), 35
advertising, 344, 377–408; alternative American Express, 449, 453
forms, 397, 400; benefits, identifying, American League Championship, 50
380; budgeting, 380, 427, 607; creative American Marketing Association, 5, 43n,
decisions, 380, 381, 609; defined, 607; 517
design of campaign, 377, 427; direct, 427; American Media, 76
lifestyle, 387, 614; objectives, 378, 607; American Medical Association, 464
outdoor, 399–401; prime advertising time, American Tennis Association, 328
selling, 34; process, 377; reach, 408, 619; Anaheim Angels, 32, 59
sales promotion, 379–80, 620; sample Anaheim Ducks, 37, 400
advertisements, 592, 593, 594, 595–6; Ancient Olympic Games, 6
scientific advertisements, 387, 620; by Andretti, Mario, 8
sports organization to end users, 379–80; Anheuser-Busch, 465, 483–4
stadium signage, 397–9, 622; top sports antecedent states, 169, 607
advertisers, 364–5 Anthony, Carmelo, 237, 332
advertising appeals, 382–6; definitions, 607; appeals, advertising see advertising appeals
emotional, 352, 382, 611; fear, 382, 612; Appleby, Stuart, 400
health, 382; pleasure of fun, 386, 618; Apple Computer, 70, 323
rational, 352–3, 611; sex, 383, 621 arbitrary allocation, 366, 607
advertising execution, 386–92; attractiveness, arena, sport, 25; merchandising, 66–7
389, 607; credibility, 387, 609; definitions, Arena Football League (AFL), US, 544–6
607; expertise, 387, 612; one-sided Arizona Cardinals, 71
Index
Arizona Diamondbacks, 284 product design, 293–4; strike (1993), 9; see
Armstrong, Gary, 503 also Major League Baseball (MLB), US
Armstrong, Ketra L., 180 Baseball Boyfriend (fantasy baseball app),
Armstrong, Lance, 248, 393–6, 463, 563; as 323
cancer survivor, 390, 394 Baseball Hall of Fame, 26
Aronin, Michael, 50 basketball, 177, 232, 310; American Basketball
Arthur, David, 43n, 475 Association (ABA), 35; Dream Teams of
artificial turf, in stadiums, 75 USA Basketball, 24; Men’s Basketball
Ashe, Arthur, 328 Championship, 65, 66; Wilson product
Asian Americans, 79, 228, 230 line, 269; Women’s National Basketball
associations, sports, 594 Association (WNBA), 58; see also National
assurance, 290, 607 Basketball Association (NBA), US
AstroTurf, 327 Basketball Without Borders, 230
AT&T, 195, 351, 352, 389, 462, 463, 480 Bastianelli, Ann, 226
AT&T Mobility, 363 Baumer, Kevin, 45n
athletes, 8, 9–10, 147, 480–1, 486; celebrity, Bavaria beer, 450
162; female, 222, 224, 225; marketability, Bayne, Trevor, 287
355–7; and Rule 40, 452–3; salaries 511–12; Bazant, Jordan, 351
sports products, 24, 263, 271 Beach Soccer World Wide Tour, 314
Athlete’s Foot, The, 268 Beamer, Frank, 238
athletic platform, 478–86, 607 Beard, Amanda, 382
A. T. Kearney studies, 12 Beckham, David, 24, 272, 349, 384
Atlanta Braves, 32, 59 Beem, Rich, 400
Atlanta Falcons, 480 behavioral component, attitudes, 156, 608
attendance, factors influencing, 13, 176, behavioral learning, 153–4
180–9, 203; aesthetic value, 186, 607; behavioral segmentation, 238–9, 253, 608
affiliation need, 186–7, 202, 616; diversion Behrens, Kathy, 424
from everyday life, 182, 610; economic Beijing Olympic Games (2008), 14, 194,
value, 183, 611; entertainment value, 182–3, 454
611; eustress, 183, 611; family ties, 187, 189, Belichick, Bill, 570
612; fan motivation factors, 181–3, 612; self- benefits, product, 608
esteem enhancement, 181–2, 621; sports benefits segmentation, 239–40, 253, 608
wagering, 188 Berry, Leonard, 290, 298
attention, 400; selective, 152, 620 Best, Roger, 341n
attitudes, 155–6, 607 betting, 188, 325
attractiveness, 389, 607 Bettman, Gary, 558
audience, 34, 126 Beville, Hugh Malcolm? 7
AudioNet, Inc., 65 Biderman, David, 43n
authenticity, 282 Bigelow, Chris, 196
auto racing, 331 Bird, Larry, 8
availability of substitute products, 521, 607 BIRGing (basking in reflected glory), 181, 182,
awareness, 361, 448, 607 499
Bjorling, Eric, 395
baby boomers, 79 Blake, James, 328
Badenhausen, Kurt, 341n Bloomberg Sports, 322
Bahama, Tommy, 285 blue-collar occupations, 232, 233
Bakker, Mike, 479 BMW, 450
balance sheet, 581, 582 body billboards, 401
Ballmer, Steve, 69 body–mind continuum, 31
Ballpark Classics, 285 Boeing, 481–2
banana bar, 34 bonding, 282
Bank of America, 379, 459, 460 Bonds, Barry, 129, 249, 585
Banks, Ernie, 376 books, 111
Barbato, Gene, 462 Borg, Bjorn, 332
Barboza, David, 44n Bosh, Chris, 49
Barkley, Charles, 161 Bossaball, 304
baseball, 391, 413, 569, 585; assisting storm Boston Red Sox, 51, 180
relief efforts, 249–52; drop in attendance, Bosworth, Brian, 332
184–6; minor league franchises, 11, 12; Bourne, Matt, 40
651
Index
Bovee, Courtland L., 316 cable television, 8, 16, 520; digital networks,
Bowerman, Bill, 282 63
bowling, 142, 143, 144, 232 Cablevision, 59
boxing, 33, 247, 332, 520; Olympic boxing Caby, Taylor, 320, 325, 326
decision (1988), 568 Cador, Roger, 80
Bradbury, J.C., 278 Candelino, Rob, 577
Brady, Tom, 271, 272 Cannon, Stephen, 456–7
branding, 159, 272–3; brand associations, Capitals, 32, 59
277; brand awareness, 276, 377, 608; Cardinals Stadium, Arizona, 75
brand equity, 276, 277, 281, 608; brand cardio-kickboxing, 330
identification, 188; brand image, 276, 608; career opportunities, sports marketing,
brand loyalty, 277, 281, 377, 608; brand 591–602
mark, 273, 608; brand name, 272, 297, 608; Carlos, Juan, 388
brand position, 246; process, 276–7, 280–4; Carmody, Thomas, 325
purpose, 297 Carroll, Jerry, 39
Brazil, 333, 335; sponsorship programs, 435, Carter, David M., 459
452, 454–6 Castrol North America, 445
Brevard County Manatees, 217 causal designs, 107
Brew, Alan, 11 CBC Distribution and Marketing Inc., 324
Broadband Sports, 324 CBS, 19, 322, 324
broadcasting, 452 Census Bureau, US, 216
Brooke, Serena, 484 Center Harbor, New Hampshire, 6
Brooklyn Dodgers, 81 central tendency measures, 125
Brooklyn Nets, 358 Chambers, John, 70
Brooks, Christine, 421–2, 478 Chambers of Commerce, 109
Brosnan, Tim, 462 Champions Tour of PGA, 217
Brown, Davie, 351 Chandler, Tyson, 237
Brown, Jim, 7, 565 Charcian, Paul, 324, 325
Brown, Paul, 563 Charlotte Bobcats, 531
Brown University v. Cohen (1997), 76 Chartered Institute of Marketing (CIM), 453
Bruno, Linda, 293 Chicago Bears, 108, 530
Bruno, Marc, 66 Chicago Blackhawks, 51
Bryant, Kobe, 237, 238, 392 Chicago Cubs, 32, 59, 201, 223, 231, 307;
budgeting, 573–4, 586–7; advertising, 380, Fantasy Camp, 266
427, 607; defined, 608; and implementation, Chicago White Sox Fantasy Baseball Camp, 28
543; promotional, 362–6, 370, 619; children, market segmentation, 214–16
sponsorship, 465–6, 491, 622 China, 362–3
Budweiser, 386, 465 Christiansen Capital Advisors (CCA), 188
Buffett, Warren, 418 Churchill, Gilbert, 133n
Build-a-Bear Workshops, 214 Cimperman, John, 201
bullfighting, 179 Cincinnati Reds, 282–3, 486
Bungee Association, US, 149 Cisco, 25, 70, 71
Bureau of Labor Statistics (BLS), US, 27 Civil Rights Movement, US, 7
Bureau of the Census of the US Department Clapham, Kyle, 326
of Commerce, 108 Clarett, Maurice, 292, 293
Burger King, 360, 456 classic product life cycle, 330, 608
Burnett, John, 178 Clemens, Roger, 128–9
Burns, W., 381 Cleveland, Phillip, 395
Burns Sports Celebrity Service, Inc., 389 Cleveland Browns, 201, 423
Burress, Plaxico, 129 Cleveland Cavaliers, 280; promotional
BurstMedia, 28–9, 404 schedule (2013–14), 437–40
Burton, Rick, 50, 317, 341n, 485 climate, physical, 238
Bush, Reggie, 351 coaches, role of, 412, 608
business cycle, 81 CoActive Marketing Group, 376, 377, 466
business level strategy, 60–1 Coalition to Advance the Protection of Sports
Butler (team), 575 Logos, 288
buying influences, 412, 608 Coca-Cola, 347, 398, 453, 466, 478
Byrne, Bill, 65 coding, 124
Byrne, Jane, 490 cognitive component, attitudes, 155, 608
652
Index
cognitive dissonance, 143, 144, 608 175–208; sponsors as, 21–2; unorganized/
cognitive learning, 153, 154, 608 organized sport participants, 21
Cole, Michael, 43n consumer-supplier relationship, simplified
Coleman, Richard P., 161 model, 18, 621
collectibles, 26–7 consumer tastes, 517, 609
college sports, 77–8, 190, 595; and athletes’ contests, 418–20, 623
salaries, 511–12; commercialization, 308–9 contingency approaches, 50–1; internal
College Sports Television (CSTV), 63 contingencies, 53–62
Collegiate Licensing Company, 286, 306 contingency control, 584, 609
Collignon, Hervé, 44n contingency framework for strategic sports
Collins, Rodger (President, Packaged marketing, 50–2, 609
Beverages), 264–5 continuous improvement philosophy, 556
color, product design, 294–5 continuous innovations, 311, 609
Colorado ski resorts, 238 continuous schedule, 408, 609
Comiskey, Charles, 585 control, 51, 574–5, 586, 623; contingency,
commercialization: college sports, 308–9; 584; control phase, 52, 574, 609; planning
defined, 608; new sports products, 315, assumptions control, 575–6, 617; process,
339 576, 618; strategic, 574, 587, 623
commitment criterion, 56 convenience sampling techniques, 123,
communication: definition, in marketing sense, 609
345, 608; elements in communications conviction, hierarchy of effects model, 362
process, 345–6, 370, 611; and Cook, Dan, 214
implementation, 543; strategic sports Cook, Tim, 488
marketing process, 546–9 Cooper, Ken, 27
community affiliation, 202 coordination, 553, 586, 609
community involvement, 422, 608 CORFing (cutting off reflected failure), 182
community relations, 344 corporate level strategy, 57, 59–60
Compadres Club, 410 CORSing (cutting off reflected success),
comparative advertisements, 386–7, 608 182
comparative messages, 353, 608 Corwin, T., 45n
competition, 63–4, 448–50, 522–3, 608; costs, 507–8, 533, 609; cost of information
competitive objectives, 515, 609; direct, 64, search, 521, 609
610; game attractiveness, 189–90, 203–4; Couch, Tim, 569
indirect, 64, 613; price, 618; pure, 523; Council on Physical Fitness and Activity, 216
social competitors, 147 counterfeiters, 289
competitive parity, 366–7, 609 “country club” sports, 232
computer-driven video sport, 72 Couples, Fred, 400
concept testing, 312, 313, 314, 339 coupons, 360, 415, 421, 505, 609
concomitant variation, 107, 609 Courier, Jim, 328
conditioning, 153 cover letters, 596
Coney, Kenneth, 341n Covington-Baker, Kristi Lee, 43n, 44n
Conference Board, The, 82 Cowboys Stadium, Dallas, 71, 193, 194, 195,
Connolly, Eoin, 388 399
Connors, Jimmy, 328 Craftsman, Sears, 359–60
conservation, 75 Craven, Sir Philip, 458
Considine, Tim, 579 creativity, 586; creative brief, 380, 381,
consistency, sports products, 266–7 609; creative decisions, 380, 381, 609;
consoles, 72 creative process, 380, 559–60, 609; and
consumer income, 82, 520, 522, 609, 613 implementation, 543
consumer socialization, 156, 609 credibility, 347, 387, 609
consumers of sport, 18–22; consumer Creighton (team), 575
behavior, 178, 180; consumer demand, crisis plan, 584, 609
515–16, 609; consumer income, 82, criteria, evaluating, 611
520, 522, 609, 613; consumer pricing Cronje, Hanse, 391
evaluation process, 519–20, 609; consumer Crosby, Sidney, 388
response, 369; consumer socialization, 609; cross-sectional studies, 117, 610
identification of specific customers, 369; crowds, 167, 176; perceived crowding, 196
individual versus corporate, 19; participants Cruz, Jason, 44n
as, 20, 134–74; spectators as, 18–19, Cuban, Mark, 32, 69, 70, 347, 561
653
Index
culture: cultural and social trends, 73–4, 87; descriptive designs, 106
cultural values, 73, 610; defined, 62, 156, designing: of advertising campaigns, 377; of
170–1, 610; organizational, 616; sociological/ data collection instruments, 114, 118–25,
external factors, 156, 158–9 130; of sport sponsorship program, 441–2,
Cushnan, David, 388 444, 447
customer valuation, 369 designs: causal, 107; descriptive, 106;
Custom US574 (product line extension, exploratory, 105–6; product, 619; research,
footwear), 307 105, 620
Cutler, Jay, 566 Detroit Piston players, 76, 236, 415
Cyberathlete Professional League (CPL), 72 Detroit Red Wings, 99
cycling, 248, 249 developing sports product, 313–15, 610
Dew Action Sports Tour (NBC), 542
Dachman, Jason, 133n Dick’s Sporting Goods, 37
Dale, Casey, 149 Didrikson Zaharias, Mildred (”Babe”), 162
Dallas Cowboys Stadium, 71, 193, 194, 195, differentiation strategies, 60
399 diffusion of innovation, 336–7, 610
Dallas Mavericks, 32, 47, 70 digital generation, 96–7
d’Amico, Michael, 341n digital platforms, 405
data analysis, 124–5, 131 Dillon, Austin, 287
data collection instruments, designing, 114, DiMarco, Chris, 400
118–25, 130, 131; information requirements, dimensions of service quality, 610
119; questionnaires see questionnaires; direct competition, 64, 610
sample design, 122–3 direct objectives, 378, 610
data collection techniques, 107–8, 610 DIRECTTV (satellite station), 16
data-driven processes, 556 discontinuous innovations, 310, 338, 610
Davidson, Carolyn, 273 discounts: price, 618; quantity, 532, 619;
Davidson, Gary, 550–1 seasonal, 532, 620
Davis, Al, 62 discretionary income, 82
Davis, Anthony, 564 Disney Company, 32, 59
Davis, Jim, 306 dispersion measures, 125
Davis Cup, tennis, 327, 328 dissonance, 143, 144, 608
Daytona 500, 217 distribution, 37, 506
Dayton Dragons, 505 Ditka, Mike, 347
decision-maker, 610 diversified companies, 59
decision-making process, 136–40, 170; diversion from everyday life, 182, 610
defined, 136–7, 610; types of consumer Dobson, Everett R., 69
decisions, 143–4 Dodge, H. Robert, 241
decline, product life cycle, 329, 610 Dodger Stadium, 61–2
decoding, 354–5, 370, 610 Dolan, Garry, 43n
Dell Computer, 317 Dombrowski, Dave, 80
Delta Air Lines, 488–9 Dosh, Kristi, 227
Delzell, Matt, 351 Dotson, Megan, 554–5
demand, consumer, 515–16, 609; elastic, 516, Douglas, Buster, 332
611; estimating, 517–22, 611; inelastic, 516, DraftDay (online startup), 321, 325, 326
613; law of, 614; unitary, 623 Dre, Dr, 451, 453, 454
demographic factors, 190, 192, 204, 610 Dream Teams of USA Basketball, 24, 236
demographics, 78–81; agents, 78–9; Dr Pepper Snapple Group, 264–5
attendance, factors influencing, 190, drug tests, 248–9
192; demographic environment, 610; Dueterman, Harold (Hair Doo), 509, 510,
demographic segmentation, 210–31, 253, 511
610; ethnic group shifts, 79–80; population Dungy, Tony, 129, 130
shifts, 80–1; population size, 78 Dunne, Frank, 190
Denver Broncos, 14 Durant, Kevin, 49
dependent variables, 107, 117, 610 dynamically continuous innovations, 310–11,
Deportes Hoy (Spanish-language sports daily), 610
230
depression, 81 E21 (golf industry manufacturer), 69
depth interviews, 112–13 early adopters, 338, 610
Derrick, Jeffery, 44n early majority, 338, 610
654
Index
Earnhardt, Dale, 284, 286–7, 348, 388 external contingencies, 52, 63–84, 86–7, 612;
EA Sports, 311 assessing, 84–5; competition, 63–4; cultural
economic buying role, 412, 611 and social trends, 73–4, 87; demographics
economy/economics, 81–3; economic activity, see demographics; economy, 81–3;
81, 610; economic factors, 189, 203, 611; monitoring, 83–4; physical environment,
economic value, 183, 611; macroeconomic 74–5, 87, 617; political, legal and regulatory
elements, 81–2, 615; microeconomic environment, 75–7, 87, 618; technology,
elements, 82–3, 616 64–6, 64–73; see also internal contingencies
editing process, 124 external factors see sociological/external
elastic demand, 516, 611 factors
Electronic Arts (EA) Sports, 72 external sources, information, 140, 612
Elliot, Sonya, 480 extreme sports, 310
Emmett, James, 388
emotional appeals, 382, 611; versus rational, Facebook, 244
352–3 facilities management, 592–3
empathy, 290, 611 facility aesthetics, 194–5, 612
employment, 16–17 fad product life cycle, 329–30, 612
encoding, 348–9, 369, 611 Fairbend, Rick, 195
endorsements, 7, 271, 349–52, 391, 577–8; family influences, 162–4, 612
21st century, 356–7 family life cycle, 230–1, 232, 612
entertainment, 60, 64; sport as, 10–11 family ties, 187, 189, 612
entertainment value, 182–3, 611 fan bonding, 282
environmental scanning, 83–4, 611 Fan Cost Index (FCI), MLB, 512, 513–14
ESPN (US-based global cable and satellite fan identification, 201–3, 204, 612; low,
television channel), 4, 15, 19, 63, 73, 118, medium and high, 202; managerial benefits,
220, 305, 416, 523; ESPN.com, 65; ESPN 203
Sports Poll, 109; ESPN W brand, 222–4; fan loyalty, 282–4
ESPN Zone Baltimore Ultimate Coach Potato fan motivation factors, 181–3, 612
Contest, 419; Local Organizing Committees, Fantasy Player News (RotoWire.com), 324
333; marketing research, 118, 127, 131; fantasy sports, 320–6, 562
networks coverage worldwide, 335–6; Farner, Jay, 418–19
seven cross-media principles, 30 Fatheads wall graphics, 320
ESPN The Magazine, 230 Favre, Brett, 568
ESPNU, 63 fear appeals, 382, 612
esteem, 149, 611 feasibility criterion, 56
estimating demand, 517–22, 611 Federal Express, 22
ethnic background, 228, 230, 611; ethnic group feedback, 357–8, 612
shifts, 79–80 Feely, Jay, 561
Europe, 335–6 female fans: fashion choices, 40–1; and
eustress, 183, 611 National Football League (NFL), 226–7
evaluation of alternatives, 141–2, 611 Fenway Park, Boston, 195
evaluative criteria, 141, 611 Ferreira, Mauricio, 180
even keel mode, 413, 611 Ferris, Chris (Associate Athletic Director,
event planning, 596 Pittsburgh University), 23–4
event triangle, 34 FIFA (Federation Internationale de Football
evoked set, 141, 611 Association), 76, 77, 441, 548; World Cup
exchange: defined, 611; process of, 38–9 competition, 194, 309
exhibitions and displays, 9 figure skating, 190
expected price range, of substitute products, financial analysis, 581–3, 612
521, 611 financial objectives, 55–6
Experian databases, 212, 213 financial ratios, 582, 583
experiential source, 141, 611 Finchem, Tim, 461
experiments/experimentation, 117–18, 611 Fink, Janet, 384
expertise, 387, 612 Fisher, Derek, 128
exploratory designs, 105–6 Fisher Price (toy company), 214
exposure, and advertising, 400 fitness centers, 27
extensive (extended) problem solving, 144, fixed costs, 508, 612
612 Flesch, Steve, 400
external (environmental) factors, 612 flexibility criterion, 56
655
Index
flighting schedule, 408–9, 612 Generation X, 145, 458
flopping, 566 Generation Y, 96, 97
Florida Marlins, 201 Gentile, Laura, 222
focus groups, 113–14, 115, 612 geodemographic segmentation, 241, 253, 612
food/concessions, 66 geographic segmentation, 236, 253, 612
football, 65; versus golf, 247; market Georgia Pacific soccer link, 405
segmentation, 224, 225, 231; see also Germany, 362–3
Arena Football League (AFL), US; FIFA Gill, David, 557
(Federation Internationale de Football Gillette, 351, 352, 462
Association); Independent Women’s Football Girl Magazine (ESPN), 222–3
League (IWFL); National Football League Gladden, James, 277
(NFL), US; Union of European Football global events, 477, 613
Association Global Games Market Report (2014), 404
Foreman, George, 388 global markets, 17
Foster, Sir Andrew, 158 Global Sports Media Consumption Report,
fouls, 568 Kantar, 15, 189
Fox Sports, 14, 15, 523 Glover, Mark, 341n
France, 333 goals, 56–7, 613
franchises, sport, 4, 32, 500, 534 Golden Age Games, 217
Fraser, Jill, 45n Golden State Warriors, 69
fraudsters, 526–7 golf, 177, 232; versus football, 247; golf ball
Frazier, Joe, 387 manufacturers, 239–40, 246; product
Frazier, Walt “Clyde,” 73, 562 design, 293, 294; see also Woods, Eldrick
French, Adam, 363 (”Tiger”)
French, Sande, 329 Gonella, Jason, 68
frequency/frequency distribution, 125, 408, Goodell, Roger, 13, 220, 392, 569
612 Goodison, Donna, 341n
Frequent Friar Club, 410 Goodluck, D. J., 510, 511
front-runners, 570 goods: definitions, 22, 264, 296, 613; pure,
Fuji, 449 263–4; quality, 291–3; sporting, 8, 25–7,
Fullerton, Sam, 241 595–6, 622; as sports products, 263–8
functional-level strategy, 61 goods–service continuum, 266, 268
Funk, C., 422 Gordon, Jeff, 388
future consumption (FC), 580 Gotti, John, 33
Fydrich, Mark “The Bird,” 332 Gould, Alan, 400
government reports and documents, 108–9
game attractiveness, 180–1, 189–97, 203; Grand Central Marketing, 416
competitive factors, 189–90; demographic Great Depression, 417
factors, 190, 192, 610; economic factors, Green, Ethan, 542
189, 611; facility aesthetics, 194–5, 612; Green Bay Packers, 268, 423
layout accessibility, 196–7, 614; perceived green marketing, 75
crowding, 196; scoreboard quality, 195–6, Griffey, Ken, 203
620; seating comfort, 196, 620; sportscape, gross national product (GNP), 81
192, 193, 194, 622; stadium access, 194, growth: definitions, 613; product life cycle,
622; stadium factors, 192, 622 319–20; of sponsorship, 8, 433–5, 442–4;
Gandil, Arnold, 562 sports industry, 12
Garber, Don, 228 growth mode, 413
Gareau, Jacqueline, 391 Gruden, Jon, 563
garment tags, checking, 289 Guggenheim Baseball Management, 32–3
Garnett, Kevin, 24, 47, 263
Garrison, Zina, 329 habitual problem solving (routinized problem
gatekeepers, 476, 612 solving), 143–4, 613
Gatorade, 223, 399, 462, 480 Hall, Derrick, 80
Gendall, Philip, 448 Hanas, Jim, 243
gender segmentation, 220–1, 224 Hansen, Ashia, 158
General Motors (GM), 418 Harbison, Dan, 558
GeneralSports Venue, 327 Harding, Tanya, 391, 585
Generation M2, 218–19 Harmon, Rodney, 328–9
Generation N, 228–9 Harris Interactive Company, 123–4, 182
656
Index
Hart Research Associates, 127 idea generation, 312, 338, 560, 613
Harvard University, 6 ideal customers, 414, 613
Hatton, Ricky, 569 idea screening, 312, 338, 613
Hawkins, Del, 341n idle product capacity, 267, 613
Hayes, Woody, 98 IEG (sponsorship-research company), 434, 443
Hayward, Joycelyn, 269 image building, 461–2, 464, 613
health and fitness services, 593–4 immediate consumption (IC), 580
health appeals, 613 implementation, 447, 543, 544, 586, 613;
health services, 27 implementation phase, 51, 52, 613
heavyweight boxing, 520 income objectives, 613
Heidi game, 562–3 income statement, 581, 582
Heiman, Stephen, 411, 412, 414, 428 incubation period, creative process, 560
Heineken, 421 independent variables, 107, 613
Heinz Field, Pittsburgh, 195 Independent Women’s Football League (IWFL),
Helton, Mike, 392 225
Henry J. Kaiser Family Foundation, 217, 218–19 India, 335
Herman, Tim, 394 Indiana Pacers, 76
Hernandez, Keith, 73 indirect competition, 64, 613
Herzog, Jacques, 194 indirect objectives, 379, 613
Hess, Jeff, 66–7 individualism, 73, 160
Hidgon, David, 341n inelastic demand, 516, 613
hierarchy of effects, 360–2, 361, 370, 613 influencers, 613
hierarchy of needs (Maslow), 148, 615 information, 543, 558, 586, 601–2, 613; cost of
Higgins, Susan, 311, 341n information search, 521, 609; sports, 28–30,
high school sports participation, 21, 64, 164–5 622
Hill, Paul, 150 information search, 140–1, 614
Himmelberg, Michele, 44n innovations: continuous, 311, 609; definitions,
Hiram Walker, 376, 377 614; diffusion of, 336–7, 610; discontinuous,
Hispanic Americans, 79, 228, 229, 230 310, 338, 610; dynamically continuous,
Hmurovich, James, 488 310–11, 610
hockey, 361, 416, 567, 568; minor league innovators, 337, 339, 614
franchises, 507–8; see also National Hockey Institute for Public Relations (IPR), 580
League (NHL), US; National Women’s integrated marketing communications, 368,
Hockey League; World Hockey Association 400, 614
(WHA) intelligence generation/dissemination, 11
Hockey News, 407 Intermedia Advertising Group (IAG), 400
Hoek, Janet, 448 internal (psychological) factors, 144–56, 170;
Hogan’s Alley, 459, 460 attitudes, 155–6, 607; learning, 153–4, 608,
HOK Sport, 572 614, 621; motivation, 146, 147, 148–50, 612,
Holdsclaw, Chamique, 24 616; perception, 151–3; personality, 144–6,
Holland, Cecil, 329 160, 234, 617; pricing, 503, 504–15, 533
Holmes, Santonio, 561, 565 internal contingencies, 52, 53–62, 86, 87, 614;
Holyfield, Evander, 520 assessing, 84–5; business level strategy,
Homer’s Landing, 231 60–1; corporate level strategy, 57, 59–60;
Hong, JinBae, 146 functional-level strategy, 61; marketing
Hong Kong, 335 goals, 56–7; mission, 54; operational-level
Horizon Media, 401 strategy, 61–2; organizational objectives,
Host Communications, 306 55–6; organizational strategies, 57–8; vision,
Houston Astrodome, 327 54; see also external contingencies
Howard, David, 114, 531 internal sources, information, 140, 614
Howard, Dennis, 50, 317, 341n International Cricket Council, 397
Howard, Dwight, 567 international events, 477, 614
Howard, Ryan, 388 International Health, Racquet and Sportsclub
Hueter, Megan, 224 Association, 27
Hui, Sai C., 198 International Management Group (IMG), 7,
Hurricane Sandy, 249 35–6; IMG College, 84–5, 306; IMG
Worldwide, 306; IMG X Sports, 84
IBISWorld, 382 International Olympic Committee (IOC), 453,
ice hockey, 361 454, 489
657
Index
international sports marketing: athlete- Kent State University Athletic Department,
endorsed sports products, 271–2; NBA, mission and objectives, 54–5
236–7; United States vs. United Kingdom, Kermit Washington incident, 565
200; X Games, 333–6 Kerrigan, Nancy, 391, 564, 585
International Tennis Federation, 217, 220 Kessler, Jeffrey, 501
Internet, 232, 243, 322, 404–7, 419; gambling, King, Billy Jean, 223
188, 325; sites, 64, 603–5 King, Martin Luther, 126
internships, 592 King, Tom, 462
interpretation, 126; selective, 152, 620 “K-means clustering” technique, 212–13
interviewing, 598–601 Knight, Phil, 273, 281, 282
intrapreneurship, 559, 571–3 knowledge, hierarchy of effects model, 361–2
introduction phase, product life cycle, 319, knowledge accumulation phase, creative
360, 614 process, 559
Iole, Kevin, 33, 45n Ko, Jae, 291
Ipsos Public Affairs, 226 Kodak, 449
IRC Survey Research Group, 192 Koegel, Warren, 196
ITF Super-Senior World Team Championships, Kohli, Ajay K., 44n
220 Kotler, Philip, 503
iTunes, 323 Kroger Senior Classic (Champions Tour golf)
Iverson, Allen, 24 event, 532
Krzyzewski, Mike, 267
James, Bill, 564 Kurz, Jerry B., 544, 545, 546
James, LeBron, 237, 249, 263, 269, 320, 332, KVA Stainless, 70
392, 415, 562
Japan, 335, 362–3 lacrosse, 320
Jaworski, Bernard, 44n Ladies Professional Golf Association (LPGA),
Jeffcoat, Michelle, 448 548
Jeffries-Fox (PR firm), 580 LA Dodgers, 417
jersey valuations, 401–4 laggards, 338, 614
Jessey, David, 459 Landis, Floyd, 248
Jeter, Derek, 41, 238, 348 Lange, Chip, 404
John Hancock Financial Services, 579 Lardinoit, Thierry, 489
Johnson, Gus, 570 Larson, Kyle, 287
Johnson, Junior, 34 Las Vegas Convention and Visitors Authority,
Johnson, Kevin, 128 188
Johnson, Magic, 8, 33, 59, 128, 263, 332 Las Vegas Review Journal, 33
Johnson, Suzanne, 227 late majority, 338, 614
Johnson, Woody, 227 Latinos, 228–30
Jones, Jerry, 71, 566 Lavoi, Nicole, 385
Jordan, Bob, 44n, 67 law of demand, 516, 614
Jordan, Michael, 8, 9, 127, 128, 282, 347, 561, Laws of the Game (rules for soccer), 76
567, 568 layout accessibility, 196–7, 614
Jordan Brand, 307 Lazaroff, Daniel, 395
journals, 112 leadership: strategic, 547; visible, 556
judgment sample, 123, 614 leagues, 8, 68, 118, 246, 311, 483–5; minor
Juliard, Pauline, 394 league franchises, 11, 12; new, 319;
just noticeable difference (JND), 531, 614 professional, 594–5; see also Arena Football
League (AFL), US; Major League Baseball
Kaefer, Mark, 405 (MLB), US; National Football League (NFL),
Kahne, Kasey, 480 US
Kaiser Foundation, 217, 218–19 learning, 170; behavioral, 153–4; cognitive,
Kanar Media, 482 153, 154, 608; defined, 614; social, 153, 154,
Kane, Mary Jo, 385 621
Kantar, 189–90; Global Sports Media Lechleiter, John, 488
Consumption Report, 15, 189 Lee, Bill, 195
Kanuk, Leslie, 159 legal issues, 523, 614
Kendrick, Ken, 69 Lehtinen, R., 289
Kendrick, Scott, 44n Lehtinen, Uolevi, 289
Kenton High School, 479–80 Lemanski, Philip, 158
658
Index
Lendl, Ivan, 399 Cost Index (FCI), 512, 513–14; licensing,
Leonard, Sugar Ray, 332 284, 285; market research, 95–7; premiums,
Leonis, Ted, 69 use of, 416–17; product line extensions,
Lesa Ukman, 489–90 307; storm relief, 249–52
leverage ratios, 583, 614 Major League Baseball Players Association
Levitt, Theodore, 11, 317 (MLBPA), 249, 250, 251
Lewis, Carl, 570 Major League Gaming, 72
Lewis, Ray, 352 Major League Lacrosse, 484
Lewis, Richard, 157 Major League Soccer (MLS), 51, 228, 270;
licensed merchandise, 25–6 mission statement, 515
licensing, 284–9, 614; advantages and male fan base, 190
disadvantages, 287–8, 297–8 Malone, Meghann, 226
Licensing Letter, The, 25 Maloof Companies, 57–8
life stages, 230 Manning, Peyton, 37, 154, 332, 347, 388
lifestyle advertisements, 387, 614 Mantle, Mickey, 7
Lifestyle Analysis Report, 235 Manuel, Jerry, 80
liking, hierarchy of effects model, 362 March Madness, 65–6, 177, 188, 420, 457
Limbaugh, Rush, 564 Margaux Matrix, 580
limited problem solving, 144, 614 marketing, defined, 615
Lin, Jeremy, 562 marketing environment, 63, 615
linkage criterion, 57 marketing goals, 56–7
liquidity ratios, 583, 614 marketing mix, 52, 55, 532, 615
local events, 478, 614 marketing mix variables, 267–8, 504–7, 591,
Local Organizing Committees (LOC), 333 615
Lochte, Ryan, 571 marketing myopia, 11, 615
logo/logotype, 273, 275, 615 marketing orientation, 11, 615
Lombardi, Vince, 396 marketing principles and processes: applied
Lombardo, John, 341n to sport, 36–9; distribution strategies, 37;
London 2012 Olympic Games, 157, 237; exchange process, 38–9; pricing strategies,
ambush marketing, 451–2; Paralympic 37; product strategies, 36–7; promotion
Games, 458; sponsors, 450–3 strategies, 37–8; sports marketing mix, 36;
Long, Michael, 388 strategic sports marketing process, 39
longitudinal studies, 117, 615 marketing research, 93–133, 264, 338–9;
Lopez, Rosemary, 251 choosing design type, 105, 130; data
Loria, Jeffrey, 278 analysis, 124–5; data collection instruments,
Los Angeles Clippers, 69 designing, 118–25, 119, 130, 131;
Los Angeles Dodgers, 32, 61–2 defined, 98, 517, 615; defining problem
Lothery, Karlyn, 329 or opportunity, 99–100, 130; process, 98,
love and belonging needs, 149, 615 99–118; research design, 105, 130, 620;
Lowenstein, Douglas, 72 research objectives, 100, 130, 620; research
loyalty, 238, 239, 282–4; brand, 277, 281, 608 problem statement, 99, 620; research
Luckman, Greg, 352 proposal, 105, 620; samples see samples/
Lufthansa, 450 sampling; sports marketing research, 98;
Lyberger, Mark, 45n steps, 130; writing proposal, 105; see also
new product development process; sports
M&M, 580, 581 products; sports products, new
MacLachlan, James, 353 marketing sources, 140–1
MacLean, Danielle, 323 market niche, 60, 243, 615
macroeconomic elements, 81–2, 615 markets: global, 17; participant, 177, 178;
Madrigal, Robert, 181 spectator, 177, 178
Mahar, Frank, 351 market segmentation, 615; see also
Mahar, Matthew T., 341n segmentation
Mahoney, Dan, 283 market selection decisions, 51, 210, 615;
majority fallacy, 242, 615 see also positioning; segmentation; target
Major League Baseball (MLB), US, 7, 13, 27, markets
40, 80, 190, 217, 284, 322, 360, 366, 391, Martin, James, 311, 341n
485; contingency framework for strategic Maslow, Abraham, 148, 615
sports marketing, 65, 73; digital generation Master, Stephen, 45n
fans, 96–7; experimentation, 117, 118; Fan Mastercard PayPass, 72
659
Index
Masters Golf Tournament, 19 Mirchin, Matt, 578
match-up hypothesis, 348, 462, 615 mission, 54
mature market, 74, 79; market segmentation, MLB see Major League Baseball (MLB), US
217; product life cycle, 615 MLB Advanced Media, LP (MLBAM), 66, 324
maturity, product life-cycle, 327, 330 MLS see Major League Soccer (MLS)
Mavericks Surf Contest (2010), 457 mob effect, 521, 616
Maxwell, Heather, 385 mobile technology, 64, 326
Mayweather, Floyd, 569 model of participant consumption behavior,
McCook, Kristie, 43n, 133n 137–44, 616; consumer decisions, types,
McCormack, Mark (IMG founder), 7, 35–6 143–4; evaluation of alternatives, 141–2,
McCoy, Colt, 351 611; extensive (extended) problem solving,
McDonald, Mark A., 146, 147, 148, 177, 201, 144, 612; habitual problem solving,
280, 290, 291 143–4, 613; information search, 140–1,
McDonald, Ronald, 399 614; limited problem solving, 144, 614;
McEnroe, John, 327–9, 331, 399 participant decision-making process,
McEnroe, Patrick, 328 137–40; participation, 142; post-participation
McLaren Health Care, 479 evaluation, 618; postparticipation evaluation,
McLoughlin, Peter, 481 143; problem recognition, 138–40, 618
McMahon, Vince, 11 Molson Goalies program, 416
McPherson, Ian, 388 Money magazine, 192
McQueary, Mike, 487 monitoring strategic thrusts, 576, 577, 578–80,
measurability criterion, 56, 244–5 616
Meckelson, Phil, 348 Montag, Sandy, 350
media, 34, 615; coverage of sport, 14–16; Montana, Joe, 8
mobile, 219; new platforms, 219; Montgomery, Mike, 293
nontraditional, 370; online, 219 Montreal Impact, MLS, 51
Media Audit report, 14, 15 Moody, Sean, 484
media decisions/selection, 396–7 Moon, Bo, 322
media scheduling, 408–9 Moore, Ann, 223
media strategy, 396–7 Morgan, Nyjer, 564
medium, 353–4, 370, 616; specific, choosing, Morris, Cassidy, 322
407–8 Morris, Philip, 464
memorabilia, 26–7 Mosaic-Pixel grid (MPG) methodology, 212,
Menon, Anil, 178 213
merchandise, sports: arena, 66–7; licensed, Moscow, 309
25–6; women’s merchandise, 227 Mossman, John, 44n
Mertz, Craig, 133n motivation, 56, 146, 147, 148–50, 170, 616; fan
message characteristics, 353, 616 motivation factors, 181–3, 612
messages: comparative, 353, 608; one-sided Moyer, Brian, 284
versus two-sided, 386, 616; promotion, Mukasey, Marc, 395
352–3; receivers, 357, 370 Muñoz, Anthony, 228, 229
Messi, Lionel, 349 Muret, Don, 341n
methodology, 126, 616 Murray, Joanne, 251
Metrodome, Minnesota, 195 Myrtle Beach Pelicans, 61
Meyer, Urban, 280
Miami Marlins, 185, 277, 278–9 Nammath, Joe, 8
Mickelson, Phil, 24 narrowcasting, 15
microeconomic elements, 82–3, 616 NASCAR (National Association for Stock Car
Mid-American Conference (MAC), 54 Auto Racing) see National Association for
Mighty Ducks, 32, 37, 59 Stock Car Auto Racing (NASCAR)
milestone review, 580–1, 616 Nashville Predators, 423
Miller, Bode, 332 National Association for Stock Car Auto Racing
Miller, Robert, 411, 412, 414, 428 (NASCAR), 15, 26, 33, 39, 233, 284; fans,
Milne, George R., 146, 147, 148, 177, 201, 277, 116–17, 233; licensing, 286–7; NASCAR.
280, 290, 291 com, 65; NASCAR Digital Media, 65;
Ministry of Community Development, Youth NASCAR SpeedParks, 315, 316; NASCAR
and Sports (MCYS), Singapore, 60 Sponsorship Study, 100; spectators, 177,
Minnesota Vikings stadium, 114 178; sponsorship, 436; Sprint Cup ticket,
Minor League Baseball, 415–16 346; Winston Cup, 8, 9, 178
660
Index
National Association of Sports Commissions, needs, hierarchy of (Maslow), 148, 615
75 Neff, Steve, 462
National Basketball Association (NBA), Negro, Christopher, 239
US, 9, 187, 215, 230, 292, 388; All-Star Neuman, Michael, 403
Game, 10; back-to-back games, 47, 48; the Nevada, sports wagering, 188
Bulls, 48; the Celtics, 47–8; the Heat, 48; Newall, Cassie, 225
international growth, 236–7; the Knicks, New Balance footwear, 306, 307, 366–7
48–9; the Lakers, 47, 48; licensing, 286; the New England Patriots, 14
Mavericks, 48; media coverage, 14; NBA New Era Tickets, 525–8
2013 All Star Game, 419; NBA Cares, 230, New Jersey Nets, 293
424–7; NBA Development League, 426; New Meadowlands Stadium, New York, 72
NBA Entertainment, 10–11; NBA FIT, 426; New Orleans Saints, 50; Bounty Program, 585
NBA Philadelphia 76rs, 415; NBA TV, 11; NFL new product category entries, 306–7, 616
Properties, 485; regular season schedule new product development process, 311–16,
(2011–12), 47–9; Sacramento Kings, 58; the 338, 616; analysis of sports product concept
Thunder, 49; triples, 47, 48 or potential, 312–13; developing sports
National Basketball Development League product, 313–15, 610; idea generation/
(NBDL), 307, 332 screening, 312, 338, 560, 613
National Collegiate Athletic Association new product success factors, 315–16
(NCAA), 15, 54, 78, 85, 308, 377, 464, 503, newspapers/journals, sports-specific, 13, 28,
511, 564; Final Four, 478; Men’s Basketball 63, 77, 230, 407
Championship, 65, 66; Native American new-to-the-world products, 306, 616
mascot controversy, 274–5 New York Athletic Club, 27
National Endowment for the Arts, 21 New York Islanders (NHL team), 267
national events, 477–8, 616 New York Mets, 530–1
National Federation of State High School New York Yankees, 499
Associations, 224 NexTag, 227
National Football League (NFL), US: NFL Party, 226
agreements, 20; attendance rates, 13; NFL Youth Football Fund (YFF), 214
female fans, 220, 226–7; jersey valuations, NHL see National Hockey League (NHL), US
401–2; Latinos, 228–30; licensing, 285–6; NHL Center Ice, 16
male fans, 190; NFL Network, 546; NFL NHL-ICE program, 558
Properties, 284, 289; NFLRUSH.com, 216; niche marketing, 243, 616
rules, 183; Super Bowl see Super Bowl Nicholas, Jack, 480
National Football League Players Association Nichols, B., 44n
(NFLPA), 500, 501, 502 Nicolas, Jack, 8
National Hockey League (NHL), US, 9, 13, Nielsen (company), 14, 29, 63
183, 365–6, 572; Hockey is for Everyone Nike, 55, 70, 114, 223, 239, 313, 376, 377,
initiative, 215; New York Islanders, 267 392, 419, 463, 484, 485, 486, 491; Dri-FIT
National Lacrosse League, Columbus, 118 performance apparel, 266; NIKE+ FuelBand
National Park stadium, 572 (innovate wristband), 303–4; and promotion,
National Sporting Goods Association (NSGA), 349, 350; sports product concepts, 268,
135, 331 269, 270, 294, 296
National Sporting Goods Manufacturers Nine for 1X film, 383–5
Association, 25 Nixon, Richard, 75
National Women’s Football League (NWFL), noise (interference in communication process),
225 358, 616
National Women’s Hockey League, 319 non-price competition, 507, 533, 616
Natural Resources Defense Council (NRDC), non-probability sampling, 123, 616
426 NordicTrack exercise equipment, 294
Navratilova, Martina, 388 North America: Golf Report table of contents,
NBA see National Basketball Association 110; historical development of sports
(NBA), US marketing in, 6–10
NBA Entertainment, 10–11 NPL Players Association, 500–2
NBC Sports, 14 N-score (measurement system), 579
NCAA see National Collegiate Athletic NuMetrex (clothes brand), 69–70
Association (NCAA)
Nebraska University, game against San Jose Oakland Raiders, 62, 294–5
State (2000), 65 objective and task method, 367, 616
661
Index
objectives: advertising, 378, 607; competitive, Patrick, Danica, 284, 287, 378, 480, 562
515, 609; defined, 616; direct, 378, 610; Pauley Pavillion, 197
financial, 55–6; income, 613; indirect, 379, Payne, Nikita, 225
613; organizational, 55–6, 512, 515, 533, pay-per-view (PPV) customers, boxing, 520
617; promotional, 360, 491, 619; research, Pearce, John, 557
100, 130, 620; sales, 512, 620; sponsorship, Pease, Dale G., 198, 341n
448, 622 Pellegrini, Leo, 250–1
occupational class, 232, 233 Penn State child rape scandal, 487–8, 585
O’Donnell, Steve, 392 Penn State University, 62
off-peak periods, stimulating demand in, 267–8 people participation criterion, 57
Ogilvy, David, 519 Pepsi, 449, 480
oligopoly, 523 Pera, Robert J., 69
Olympic Games, 6, 15, 17, 24, 150; Beijing perceived crowding, 196
2008, 14, 194, 454; lessons for Rio, 452, perceived risk, 141, 617
453; London 2012, 157, 237, 450–3; Olympic percentage of sales, 367, 617
charter, 451–2 perception, 151–3, 170; of value, 521, 617
O’Neal, Shaquille, 263, 271, 332 perceptual maps, 246–7, 253, 617
one-on-ones (depth interviews), 112–13 perishability, 267–8, 297, 617
one-sided versus two-sided messages, 386, Perkins, Kendrick, 49
616 personality, 144–6, 160, 234, 617
one-way tables, 125 personal seat licenses (PSLs), 120
operant conditioning, 153 personal selling, 344, 409–10, 414, 427, 617
operational-level strategy, 61–2 personal sources, 140, 617
O’Reilly, Peter, 226–7 personal training, 27–8, 617
organizational culture, 62, 616 personal watercraft, 318
organizational objectives, 55–6, 512, 515, 533, Pew Research Center, 199
617 Phelps, Michael, 565
organizational strategies, 53, 57–8, 617 Philadelphia Blazers, 417
organized sporting events, 21, 617 Philadelphia Eagles, 423, 480
Orioles, season-ticket holders, 529–30 Philadelphia Union, MLS, 51
Orsman, David, 448 Phoenix University Stadium, 71
Osborn, John, 352 physical environment, 74–5, 87, 617
Ovechkin, Alex, 348, 388 physical surroundings, 166, 192, 617
overconfident mode, 413, 617 physiological needs, 148, 617
Owens, Jesse, 7 Pierce, Paul, 47, 563
Piken, Lisa, 41
Pace, Tony, 351 Pistons-Knicks basketball game, 237
Pacquiao, Manny, 568 Pitts, Brenda, 489
Palmeiro, Raffy, 271 Pittsburgh Pirates, 423–4; Bucaroos Kids Club,
Palmer, Arnold, 7, 34, 332, 348, 388, 480 505
Palmer, Carson, 272 planning: contingency approaches, 51;
Palmer, Jim, 332 planning assumptions control, 575–6, 617;
Pan American games, 17 planning phase, 52, 617; promotional, 359,
Paralympic Games, 458 619
Parasuraman, A., 290, 298 Platinum Rye Entertainment, 351
Parker, Candace, 388 Platypus Sporting Goods (sports equipment
Parker, Mark, 306, 487 manufacturer), 36
Parmlid, Mikaela, 382 Player, Gary, 480
Parseighian, Ara, 422 Play It Again Sports, 498–9
participant consumption behavior, 136, 166, PlayStation, 72
170, 617; model see model of participant pleasure of fun appeals, 386, 618
consumption behavior Plunkett Research, 12, 44n
participants: as consumers, 20, 134–74; Point-of-Purchase (P-O-P) displays, 420–1, 618
definitions, 617 poker, 325
participation, 142 political, legal and regulatory environment,
partnerships, 32; strategic, 413–14 75–7, 87, 618
Passikoff, Robert, 282 polo, 232, 233, 311
Pastore, Donna L., 291 Pope, Nigel, 21–2, 44n
Paterno, Joe, 487, 488 Popular Mechanics, 71
662
Index
Portland Timbers, MLS, 51 product life cycle (PLC), 339, 506; classic, 330,
Portland Trail Blazers, 558 608; decline stage, 329, 610; fad, 329–30,
positioning, 245–9, 253, 618; perceptual maps, 612; fantasy sports, 320–6; introduction
246–7, 253, 617; repositioning, 248–9, 309, phase, 319, 360, 614; length and shape,
620 329–31; mature market, 327, 615; product
post-participation evaluation, 618 level, 331; product type, 331–2; seasonal,
postparticipation evaluation, 143 331, 620; selected patterns, 330
Pound, Richard, 8 product line, 268, 269, 297, 307, 619
Powell, Matt, 366 product mix, 268, 269, 619
preference, hierarchy of effects model, 362 product placement, 399
Premiership club deals, UK, 403 product quality, 291, 619
premiums, 416–17, 618 products see sports products
premium seating, 68 product strategies, 36–7
pre-test, 122, 618 product warranties, 293, 619
price, defined, 498–500, 618 Professional Golf Association (PGA), 33;
price adjustments, 528–9, 618 Champions Tour, 217
price competition, 507, 533, 618 professional services, 593
price discounts, 532, 618 professional sports, 21, 619
price elasticity, 516, 618 professional warranties, 619
price increases, 530–1, 534, 618 profitability ratios, 582, 619
price inelasticity, 516, 618 projective techniques, 114, 619
price reductions, 530–1, 534, 618 promotion: arbitrary allocation, 366,
PricewaterhouseCoopers, 443 607; athlete marketability, 355–7;
pricing: consumer pricing evaluation process, communications process, 345–6;
519–20, 609; determinants, 503–15; and competitive parity, 366–7, 609; concepts,
distribution, 506; dynamic, 529; external 343–74; decoding, 354–5, 370, 610;
factors, 503, 515–23, 533–4; internal factors, definitions, 619; encoding, 348–9, 369,
503, 504–15, 533; marketing mix variables, 611; endorsements, 349–52; external, 549;
504–7, 615; non-price competition, 507; feedback, 357–8, 612; hierarchy of effects,
price competition, 507; and promotion, 360–2, 370, 613; integrated promotional
505–6; and technology, 524; and value, 499 mix, choosing, 368–9; internal, 549;
pricing strategies, 37 Internet, 404–7; medium, 353–4, 370,
primary data, 112–18, 130; defined, 108, 618; 616; messages, 352–3, 608, 616; noise
depth interviews, 112–13; experiments, (interference in communication process),
117–18; focus groups, 113–14, 115, 612; 358, 616; objective and task method, 367,
projective techniques, 114, 619; surveys, 616; percentage of sales, 367, 617; planning,
114, 117, 211–12, 240, 284; test marketing, 359, 619; and pricing, 505–6; pull strategy,
118, 623; see also secondary data 359–60; push strategy, 359; source,
primary reference groups, 162, 618 346–8; target markets, 359; see also sales
Pringles, 450 promotion
Pritchard, Mark, 239, 422 promotional budgeting, 362–6, 370, 619
PRIZM system, 241, 242 promotional mix elements, 375–431, 490, 619;
probability sampling, 123–4, 618 advertising see advertising
problems/problem solving, 560–71; defining promotional objectives, 360, 491, 619
problem or opportunity, 99–100, 130; promotional planning, 619
extensive (extended) problem solving, 144, promotion mix elements, 344
612; habitual problem solving, 143–4, 613; promotions, sales, 620
limited problem solving, 144, 614; problem promotion strategies, 37–8
definition, 99, 618; problem recognition, Pro Rodeo Cowboys Association (PRCA), 61
138–40, 618; research problem statement, prosperity, 81
99, 620 psychographic segmentation, 234–5, 253
process control, 576, 618 psychological commitment to team (PCT), 283
Procter & Gamble (P&G), 360, 476 publicity, 422
producers and intermediaries, 32–6, 618; public relations, 421–4, 505, 619
sanctioning bodies, 33–6; sports labor, Pujols, Albert, 388, 499
32–3 pull strategy, promotion, 359–60, 370
product characteristics, 270, 271, 618 pulsing schedule, 409
product design, 293–6, 298, 506, 619 purchasers, 476
product form, 331, 619 push strategy, promotion, 359
663
Index
quality, 289–93; customer-driven, 556; of response modes, 413, 620
goods, 291–3; licensing, 289; product responsiveness, 11, 290, 298, 620
design, 295–6; of services, 289–91, 621 resumés, 597–8
quality dimension of goods, 291, 292 retailers, 506
quality improvement programs, 553–4 retention, selective, 153, 620
quantity discounts, 532, 619 retired players, 569
Quester, Pascale, 489 return on investment (ROI), 369, 447
Quest Field, 71 rewards, 556–7, 586, 620
questionnaires, 131; administration method, Reynolds, Mike, 30
deciding, 119–20; concise questions, 121; Richard Petty Driving Experience, 178
content of questions, 120; double-barreled Richards, Bill, 341n
questions, avoiding, 121; exact wording Riche, Patrick, 393
of questions, 121; form of response, 121; Rich Stadium, 8
information requirements, 119; physical RiechesBaird (now BrandingBusiness), 11
characteristics, 122; pretest, 122, 618; Rines, Simon, 435
question sequence, 121–2; specificity of risk, perceived, 141, 617; high-risk sports,
questions, 121; technicality of questions, 145
avoiding, 121; unambiguous questions, 121 River Cats (team), 306, 415
quota sampling, 123, 619 Robinson, Brooks, 376
Robinson, David, 128; Doritos Raft, 271
racial opportunity, case study, 126–30 Robinson, Harold, 150
racial profiling, 570 Robinson, Jackie, 7, 80
radio, 6–7, 15 Robinson, Richard, 557
Radio City Music Hall Stage, 377 Rochlitz, Kevin, 410–11
RailCats, 94–5, 105, 106, 107, 125 Roddick, Andy, 328
Raley Field, 306, 415 Rodriguez, Alex, 570
Ranadivé, Vivek, 58, 69, 332 Rodriguez, Carlos, 250
Ranii, David, 341n Roethlisberger, Ben, 128
Rasmussen, Bill (ESPN founder), 8, 12, 305 Rogge, Jacques, 453, 454
ratio analysis, 582, 583 Rohm, Andrew J., 146, 148
rational appeals, versus emotional, 352–3, 611 roles, 620
Rawlings (sports equipment manufacturer), 36 Romo, Tony, 566
Raykovitz, Jack, 487 Roosevelt, Theodore, 6
Raymond James and Associates, 479 Roper, Julie, 30
reach, 408, 619 Rorschach test, 114
Real Madrid, 32 Rose, Derrick, 48, 237, 349
rebates, 505 Rose, Pete, 585
Rebilas, Mark J., 383 Rosner, Scott, 59
recall, and advertising, 400 RotoWire.com, 324, 325, 326
receivers, messages, 357, 370 Route 2015 (Adidas Business Plan), 349
recession, 81 routinized problem solving see habitual
recovery, 81 problem solving (routinized problem solving)
red flags, 412–13 Rowell, Jack, 158
Reebok, 306, 388, 392, 453, 572–3 Rozelle, Pete, 8, 504
Reeves, Marc (international commercial Ruiz, Rosie, 391
director, NFL), 198–9 running, 177, 178
reference groups, 160–2, 187, 619; primary, Russell, JaMarcus, 569
618
regional events, 478, 619 sabermetrics, 564
relationship marketing, 409, 459–61, 619 Sacramento Kings, 69, 332
reliability, 290, 298, 620 Sacramento Monarchs, 58, 69
Reliant Stadium, Houston, 72, 74 safety needs, 148, 149, 620
reports, 126 salaries, 8, 267, 346; ethical considerations,
repositioning, 248–9, 309, 620 509–12; salary loss by Armstrong, 393–6
research design, 105, 130, 620 sales: percentage of, 367, 617; strategic
researching of companies, 596 selling, 411–14, 623
research objectives, 100, 130, 620 sales funnel, 414, 620
research problem statement, 99, 620 sales increases, 464–5
research proposal, 105, 620 sales objectives, 512, 620
664
Index
sales promotion, 344, 415–16, 505, 620; selective interpretation, 152, 620
advertising, 379–80 selective retention, 153, 620
samples/sampling, 420; convenience sampling self-actualization, 149, 150, 621
techniques, 123, 609; definitions, 620; self-esteem enhancement, 181–2, 621
design, 122–3; judgment sample, 123, self-sufficiency, 144–5
614; non-probability sampling, 123, 616; Selig, Bud, 80, 249
probability sampling, 123–4, 618; quota sentence completion test, 115
sampling, 123, 619; size of sample, 124 separability, 268, 621
Sampras, Pete, 282, 328, 399 services: definitions, 22, 264, 296, 621;
Samson, David, 278 goods–service continuum, 266, 268; health
Samueli, Henry, 37 and fitness, 593–4; professional, 593; pure,
Samuelson, Paul, 82 266–7, 297; quality, 289–91, 621; as sports
Sanchez, Mark, 272 products, 263–8
sanctioning bodies, 33–6 SERVQUAL, 290
Sanderson, Derek, 417 sex appeals, 383, 621
San Diego Padres, 410 Shabelman, Doug, 351
Sandler, Dennis, 477, 491 Shadow Box slot cards, 311
Sandusky, Jerry, 62, 487, 488 Shady Valley Primadonnas, 509, 510
San Jose State, game against Nebraska Shallenberger, Frank, 282
University (2000), 65 Shani, David, 477, 491
Santander, Clément, 44n Sharapova, Maria, 37, 382, 486
Santee, Earl, 67 shelf life, 267
SAP (software giant), 310 Sheuring Speed Sports, 433
scandals, 391, 575, 577, 585; Penn State child Shiffman, Leon, 159
rape scandal, 487–8, 585 Shipnuck, Alan, 382
Scarborough Sports Marketing, 95, 96 sidedness, of messages, 352, 621; one-sided
Schaaf, Phil, 45n versus two-sided messages, 386, 616
Scheindlin, Shira, 292 signage, 196, 621; stadium, 397–9, 622
Scheuring, Steve, 433 Silva, Anderson, 456
Schoenke, Peter, 324, 325, 326 simplified model of consumer–supplier
Schultz, Don, 369 relationship, 18, 621
scientific advertisements, 387, 620 Simpson, O. J., 585
scoreboard quality, 195–6, 620 simulated test market, 118, 621
Scott, D., 475 Singapore Sports Council (SSC), “Vision 2030,”
seasonal discounts, 532, 620 60
seasonal product life cycle, 331, 620 situational factors, 166–9, 170–1, 520, 621;
seating comfort, 196, 620 antecedent states, 169, 607; physical
Seattle Seahawks, 14, 71 surroundings, 166, 617; social surroundings,
secondary data, 108–12, 130; books, 111; 166–7, 621; task definition, 169, 623; time,
defined, 107–8, 620; government reports 167
and documents, 108–9; journals, 112; trade skateboarding, 331
and industry associations, 110–11; see also skating, 246
primary data skills, 543, 551–3
second screening, 365 ski resorts, 532
segmentation: age factors, 213–20; bases, Slattery, Jennifer, 489
210, 211, 253; behavioral, 238–9, 253, 608; Sleight, Steve, 284
benefits, 239–40, 253, 608; choosing multi- slice-of-life advertisements, 387, 621
segments, 240; defined, 615; demographic, Slovenia football, 566
210–31, 253, 610; easily definable Slusher, John, 350
segments, 365; ethnic background, 228, Small Business Administration (SBA), 109
230, 611; family life cycle, 230–1, 232, Smart, Denise T., 178
612; gender, 220–1, 224; geodemographic, SMART framework, 56
241, 253, 612; geographic, 236, 253, 612; Smith, Dennis W., 341n
psychographic, 234–5, 253; socioeconomic, Smith, Emmitt, 73
232–3, 253, 621 Smith, Geoffrey, 45n
segmenting, targeting and positioning (STP), Smith, Howard, 285
210; see also positioning; segmentation; Smith, Jason, 450
target markets Smith, Josh, 47
selective attention, 152, 620 Smith, Lovie, 129
665
Index
Smith, Michael D., 44n sports, 21, 619; value to community, 197–8,
Smith, Tubby, 280 204; see also game attractiveness
snowboarding, 153–4 Sport Business Daily, 13
Snyder, Daniel, 69 Sport Business Research, 112
Sochi Games, 14 Sport England, 157–8; market segmentation,
social class, 160, 161, 232, 621 211–12
social competitors, 147 sporting events, 24–5, 622
social concerns, 515, 621 sporting goods, 8, 25–7, 595–6, 622
socialization, 156, 159, 621 sporting goods superstores, 37
socializing agents, 158–9, 621 Sporting News Magazine, 407
social learning, 153, 154, 621 sport involved, 622
social media, 407 Sport Media Report, 63
Social Seats, 572 sports associations, 594
social surroundings, 166–7, 621 Sports Authority, 37
socioeconomic segmentation, 232–3, 253, 621 Sports Business Journal, 310
sociological/external factors, 156–66, 621; Sports Business Research Network, 109
culture, 156, 158–9; family influences, sports camps/instruction, 28
162–4, 612; pricing, 503, 515–23, 533–4; sportscape, 192, 193, 194, 204, 622
reference groups, 160–2, 618, 619; social sports equipment manufacturers, 36, 148–9,
class, 160, 161, 232, 621 622
software developers, 321 Sports Event Pyramid, 476, 477, 478, 622
Soldier Field, 530 Sports Fan Graph, 243
Solheim, John, 347 Sports Illustrated, 28, 77, 407, 408, 416
Solo, Hope, 383 Sports Illustrated for Women, 223
Solomon, Michael, 234 sports industry, 6–10; growth, 12; structure,
Soto, Ivan, 544 17–18
source association, 400 sports information, 28–30, 622
sources: definitions, 621; experiential, 141, sports involvement, 150, 199–200, 204, 622
611; external, 140, 612; internal, 140, 614; sports labor, 32–3
marketing, 140–1; online, 140; personal, Sports Licensing Report, 25
140, 617; promotion, 346–8 sports marketing: defined, 5, 622; emergence
Southeast Asia, 335 of, 3–45; historical development in
Southshore RailCats, 94–5, 105, 106, 107, 125 North America, 6–10; international, 200,
space allocation, 196, 621 236–7, 271–2, 333–6; standardized sports
Spain, 333–4 marketing information studies, 109–10
Spartak Stadium, Moscow, 194 sports marketing ethics: ambush marketing,
spectators: as consumers, 18–19, 175–208; curbing, 454–6; Armstrong, Lance (as
defined, 621 cancer survivor), 390, 394; athlete
spinning, 330 marketability, 355–7; athlete salaries,
Spitz, Mark, 332 509–12; commercialization of college sports,
Spoelstra, Erik, 236 308–9; endorsements, 349–52; NCAA
sponsors, 34; as consumers, 21–2 Native American mascot controversy, 274–5;
sponsorship, 7–8, 225, 344; budgeting, Penn State child rape scandal, 487–8, 585;
465–6, 491, 622; choice of opportunity, 466; selling of sex, 383–5
corporate CEO involvement, 8–9; defined, sports marketing mix, 36, 622
433–4, 622; determining scope, 476–8; sports marketing research, 98
direct objectives, 448, 491, 610; evaluation, Sports Marketing Research Institute (SMRI),
475, 488–9, 622; growth, 8, 433–5, 442–4; 503
implementation, 488–9; indirect objectives, Sports Market Place Directory, The, 16
448, 613; measurement (case study), 101–4; sports organizations, 34, 41
objectives, 448, 622; sports, 21, 622; sport sport sponsorship acquisition, 475, 622
sponsorship acquisition, 622 sports product map, 31, 622
sponsorship programs, 432–96, 622 sports products, 22, 24–7; arena, 25; athletes/
Sponsorship Research and Strategy (SRS), 100 athlete-endorsed, 24, 263, 271; benefits,
sport: consumers, 18–22; defined, 10, 622; 608; branding see branding; as bundles
dimensions, 247, 248; as entertainment, of benefits, 270; classifying, 268–70, 297;
10–11; extreme sports, 310; marketing concepts, 261–301; consistency, 266–7;
principles and processes applied to, 36–9; or definitions, 262–3, 622; developing, 610;
league, 483–5; popularity, 180; professional goods as, 263–8; idle product capacity,
666
Index
267, 613; logo/logotype, 273, 275, 615; Stealey, J. W., 32
management, 302–42; multidimensional Steinberg, Mark, 350, 351
nature, 31; new see sports products, Stenhouse, Ricky, 287
new; perishability, 267–8, 297, 617; Stern, Bill, 7
product characteristics, 270, 271, 618; Stern, Caryl, 215, 425
product design, 293–6, 298, 619; product Stern, David, 76, 187, 236, 237, 331
diffusion process, 265; product form, Sternberg, Stuart, 80
331, 619; product life cycle see product steroids, 585
life cycle (PLC); product line, 268, 269, Stevenson, Gary, 350
297, 307, 619; product mix, 268, 269, 619; St. Louis Cardinals, 231, 239, 499, 521
product placement, 399; product quality, stock car races, 33–4; see also National
291, 619; product warranties, 293, 619; Association for Stock Car Auto Racing
separability, 268, 621; services as, 263–8; (NASCAR)
standardization, 266–7, 296, 623; substitute Strahan, Michael, 351
products, 607, 611; tangibility, 266, 623 strategic control, 574, 587, 623
sports products, new, 304–16; strategic partnerships, 413–14
commercialization, 315, 339; concept strategic selling, 411–14, 623
testing, 312, 313, 314, 339; diffusion of strategic sports marketing: contingency
innovations, 336–7, 610; growth stage, framework, 50–2; process, 39, 51, 52, 53,
319–20; introduction phase, 319; newness 541–90
from consumer’s perspective, 309–11, 338; strategic windows, 84, 623
newness from organization’s perspective, strategies: business level, 60–1; corporate
306–7; new product category entries, 306–7, level, 57, 59–60; differentiation, 60;
616; new product development process, distribution, 37; functional-level, 61;
311–16, 338, 616; new product screening media, 396–7; operational-level, 61–2;
checklist, 313, 338; new-to-the-world organizational, 53, 57–8, 617; pricing, 37;
products, 306, 616; product improvements, product, 36–7; promotion, 37–8
307–8; product line extensions, 307, 619; StratTix inventory management tool, 69
success factors, 315–16; test marketing, substitute products: availability, 521, 607;
118, 315, 621, 623; types, 305–11 expected price range, 521, 611
sports sponsorship, 21, 622 suitability criterion, 56
sports wagering, 188, 325 Sultan, Nicolas, 44n
sporttainment, 11 super-agents, 35
SRDS: The Lifestyle Market Analyst/National Super Bowl, 14, 22, 66, 188, 268, 363, 420,
Demographic and Lifestyle, 234 459, 478; segmentation, 226, 228–9; ticket
stacking, 421 scalpers, 523–4; see also National Football
stadium access, 194, 622 League (NFL), US
stadium factors, 192, 204, 622 Super Bowl Sunday, 40
stadium signage, 376, 397–9, 622 surveys, 114, 117, 240, 284; Sport England,
stadium trends, 66–7 211–12
Stadium Wi-Fi packages, 25 Sutton, William, 147, 177, 201, 202, 203, 277,
staffing, 543, 551–3, 623 290, 291
standardization, 266–7, 296, 623; standardized Sweden, 159
sports marketing information studies, sweepstakes, 418–20, 623
109–10 Swinand, Paul, 394
standard metropolitan statistical areas SWOT analysis, 84–5, 87, 412, 591
(SMSAs), 241 Synder, Matt, 341n
Stanford University, 274 Synergy Sports Technology, 69
Stankovich, Christopher, 131
Staples Center, 41 Taco Bell, 415, 416, 462
Starbucks, 481–2 Tampa Bay Rays, Tropicana Field, 502–3
Stargell, Willie, 376 tangibility, 266, 296; tangibles, 290, 298, 623
StatBridge, 69 Tanner, Jim, 578
State Farm Insurance, 449 target market considerations, 623
Statistical Abstract of the United States, target markets, 241–5, 253, 623;
108–9, 217 behavioral variation, 245; evaluation,
StatSheet, 323, 326 242–5; measurable, 244–5; numbers, 245;
StatSmack, 323–4 promotion, 359; reachable, 243–4, 456–9;
steady scheduling, 408 sizable, 242
667
Index
task definition, 169, 623 trustworthiness, 623
Taylor, Chuck, 7 Turner, Ted, 8
Taylor, Robyn, 225 Turner Sports, 13
Taylor, Rod, 466 Turnkey Intelligence survey, 284
TaylorMade-Adidas Golf, 270 two-way tables, 125
TCF Bank Stadium, Minnesota, 195 Tyson, Mike, 355, 520
TEAMQUAL, 290, 291, 298, 623
Team Slipstream, 248 UCLA (University of California, Los Angeles),
Teams Sport Report, 73 197
teams/team sports, 7, 73–4, 481–3; Ueberroth, Peter, 8
professional, 594–5; sales promotions, 415 Ukman, Lesa, 489–90, 577
Tebow, Tim, 227, 568, 571 Ultimate Fighting Championship, 221
technical buying role, 412, 623 unawareness, hierarchy of effects model,
technology, 64–73, 67, 524, 623 361
teenagers, market segmentation, 216–17 Under Armour Performance gear, mission, 54,
television, 7, 217, 363, 560; blackouts, 567; 55
cable, 8, 16; new sports networks, 15 understandability criterion, 56
tennis, 232, 294, 327–9 Union of European Football Association, “Get
testimonials, 387, 623 Active Campaign,” 169
test marketing, 118, 623; simulated test unitary demand, 516, 623
market, 621 United Kingdom, 362–3
Textronics, Inc., 69 United States Olympic Committee (USOC),
Theismann, Joe, 422 17, 76
Thill, John, 316 Unlawful Internet Gambling Enforcement Act,
3M Company, 571 325
ticket holders, income levels, 190 unorganized sports, 21, 624
ticket sales, 81–2 unstructured conversations (depth interviews),
ticket scalpers, 523–4, 525–8 112–13
“Tiger Recession,” and athlete marketability, Upper Deck, 311
355–7 Urban, Jeff, 399
Tiger Stadium, Louisiana, 195 USADA (anti-doping organization), US, 249,
Tigert, Douglas J., 234 393, 394, 395, 463
Tillotson, Jeffrey, 394 USA Today, 16
time: and decision-making, 623; situational user buying role, 412, 624
factors, 167 USTA (governing body of tennis, US), 328
titanium woods, 331
Title IX (legislation), 75–6, 222 Valdez, Juan, 399
TMZ, 355 Valdiserri, Roger, 422
Tomjanovich, Rudy, 565 VALS (values and lifestyles), 235
Top 35 rule, 563 values, 159, 171, 624; cultural, 73, 610
Topps, 27 Vancouver Canucks, 567
Toronto Blue Jays, 295 Vancouver Whitecaps FC, MLS, 51
Tortora, Andrea, 45n Vancouver Winter Olympic Games, 14
total cost, 508 variable costs, 508, 624
Total Quality Management (TQM), 553, 556, variable pricing, 529–30
623 Vaughters, Jonathan, 248
Tour de France, 393, 563 Veeck, Bill, 7, 345
toy industry, 64, 214 venue design, 67–8
ToysRUS.com, 216 Verducci, Tom, 13
track message delivery, 369 verification, licensing, 289
trade and industry associations, 110–11 Via, Greg, 352
trademarks, 276, 623 Vic Canever Chevrolet, 479
Trail, Galen, 181 Vick, Michael, 128, 129, 463, 481
Trans World International (TWI), International video game industry, 72, 311; P90X versus
Management Group, 35 Insanity, 168–90; Shaq Fu, 271
triathletes, 150 Villalba, Victor, 229
Tribune Company, 59 Virginia Slims Tennis, 8
trouble mode, 413, 623 VISA, 449
Trump, Donald, 561 vision, 54, 624
668
Index
“Vision 2030,” Singapore Sports Council, 60 Wilson Six, 307
Vitale, Dick, 567 Wilstein, Steve, 82
Vodafone, 450 Wines by Design (WBD), 285
VTB Bank, 309 Winfrey, Oprah, 564
win-results, 413–14, 624
Wade, Dwayne, 10, 263, 280 Winston Cup (NASCAR), 8, 9, 178
wagers, sports, 188, 325 Wizards, 32, 59
Wakefield, L., 197 Women’s Football Alliance, 319
Waldman, Suzyn, 561 Women’s National Basketball Association
Wall, John, 388, 570 (WNBA), 368; Sacramento Monarchs, 58;
Wallace, Rasheed, 401 WNBA Pride, 483
Wal-Mart, 286 Women’s Sport Foundation, 111
Walton, Bill, 360 women’s sports, 458
Waltrip, Michael, 73, 392 Wooden, John, 197, 360
Wambach, Abby, 385 Woods, Eldrick (“Tiger”), 24, 282, 332, 463,
Wan, Charles, 69 480, 487, 566, 585; and promotion concepts,
Wann, L., 181 346, 350–1, 355; and promotion mix
Wansley, Brant, 466, 486 elements, 388, 389–90, 392
Washington Redskins, 22, 32, 59 World Anti-Doping Agency code, 248
Waste Management Open, 461 World Cyber Games, 72–3
WatchESPN, 14 World Hockey Association (WHA), 35, 417
water bike, 318 World Series, 478, 507
Weatherly, Benji, 484 World Wide Web (WWW), 28, 30; sports
webcast, of football games, 65 information on, 16; websites, 29
Weber, Jim, 366 World Wrestling Entertainment (WWE), 11
websites, 29 Wrigley Field, Chicago, 194, 307
Wegman LPGA Championship, 467–75 WWE (World Wrestling Entertainment), 11
Wei, Michelle, 24 Wyndham Championship, 444, 446–7
Weikel, Colby, 43n
Weil, Chris, 403 Xavier (team), 575
Weiner, Jay, 133n Xbox, 72
Weiner, Michael, 250 X Games (Extreme Games), 217, 333–4, 462
Weishaupt, Frank, 363 X-treme Games, 73
Wells, William, 234
Westbrook, Russell, 49, 565 Yahoo, 321, 322
Whan, Michael, 547 Yale University, 6
White, Shaun, 348 Yamauchi, Hiroshi, 69
white-collar occupations, 232 yellow flag, 568
White Sox, 397 Young, Donald, 328
Whyte, Keith, 183 youthfulness, 73
Wide World of Sports, 382
Wie, Michelle, 388 Zablow, Mark, 351
Wiese, Mike, 350 Zeithaml, Valarie, 290, 298, 499
Wii, 72 Zeller, Heather, 227
Williams, Billy, 376 ZenithOptimedia, 362, 363
Williams, Bob, 389 Zhang, James J., 198, 341n
Williams, Deron, 49 Ziguana.com (software developer), 321, 322;
Williams, Gregg, 569 Ziguana Auto-Pilot, 323
Williams, Serena, 154, 328, 486, 565 Zikmund, William, 341n
Williams, Venus, 154, 328, 486 Zimberoff, David, 395
Wilson (sports equipment manufacturer), 36; Zinna, Jason, 524
product mix, 268, 269 Zoombang protective gear, 319
Wilson, Russell, 482 Zucker, Allan, 578
669

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Sports Marketing

Matthew D. Shank and Mark R. Lyberger

Routledge is an imprint of the Taylor & Francis Group, an

© 2015 Matthew D. Shank and Mark R. Lyberger

The right of Matthew D. Shank and Mark R. Lyberger to be

All rights reserved. No part of this book may be reprinted

Trademark notice: Product or corporate names may be

British Library Cataloguing-in-Publication Data

Library of Congress Cataloging-in-Publication Data

1. Sports--United States--Marketing. 2. Sports--Economic

ISBN: 978-1-138-01595-1 (hbk)

Additional materials are available on the companion website at www.routledge.co.uk/cw/shank

PART I: CONTINGENCY FRAMEWORK FOR STRATEGIC SPORTS

PART II: PLANNING FOR MARKET SELECTION DECISIONS

PART III: PLANNING THE SPORTS MARKETING MIX

PART IV: IMPLEMENTING AND CONTROLLING THE STRATEGIC SPORTS

Appendix A: Career opportunities in sports marketing 591

PART I: CONTINGENCY FRAMEWORK FOR STRATEGIC SPORTS

CHAPTER 1 Emergence of sports marketing 3

PART II: PLANNING FOR MARKET SELECTION DECISIONS

CHAPTER 3 Research tools for understanding sports consumers 93

Case study: ESPN; survey shows split on racial opportunity 126

CHAPTER 4 Understanding participants as consumers 134

CHAPTER 5 Understanding spectators as consumers 175

CHAPTER 6 Segmentation, targeting, and positioning 209

PART III: PLANNING THE SPORTS MARKETING MIX

CHAPTER 7 Sports product concepts 261

CHAPTER 8 Managing sports products 302

CHAPTER 9 Promotion concepts 343

CHAPTER 10 Promotion mix elements 375

Spotlight on Sports Marketing Ethics: Lance Armstrong’s

CHAPTER 11 Sponsorship programs 432

CHAPTER 12 Pricing concepts and strategies 497

PART IV: IMPLEMENTING AND CONTROLLING THE STRATEGIC

CHAPTER 13 Implementing and controlling the strategic sports

Why this book?

Part I: Contingency Framework for Strategic Sports Marketing

Part II: Planning for Market Selection Decisions

Part III: Planning the Sports Marketing Mix

Part IV: Implementing and Controlling the Strategic Sports

Pedagogical advantages of sports marketing

Enhancements to the fifth edition

General acronym list

"My fan focus groups indicate

Understanding the sports industry

Power ranking Stadium Team

Growth of the sports industry

Web 1.1 The growth of sports information on the Web

In addition to traditional sports media, pay-per-view cable television is growing in

The structure of the sports industry

Photo 1.1 Fans in grandstand.

Consumers Products Producers and intermediaries

Figure 1.1 Simplified model of the consumer–supplier relationship in the sports

The traditional organizational perspective, however, is not as helpful to potential

The consumers of sport

The spectator as consumer

Figure 1.2 Individual vs corporate consumer

The participant as consumer

Table 1.2 NFL media rights

CBS (AFC) 2014–2022 $1.08B

Rank Activity # Of Participants

Unorganized sport participants/organized sport participants

The sports product