Chapter 2One of Our DilemmasTwo Broad DomainsImportant StatementProducts Germane to Sports MarketingSports Product - Category 1Sports Product - Category 2Sports Product – Category 3Nonsports ProductsLevel of IntegrationTraditional StrategiesSponsorship-Based StrategiesBasic Principles of Sports Marketing (Details in Box 2.2)The Sport Marketing MatrixMainstream StrategiesProduct-Focused StrategiesDomain-Focused StrategiesSports-Dominant Strategies“Sports Marketing”Closing CapsuleSlide 21Slide 22Slide 232-1Chapter 2Chapter 2The Four Domains The Four Domains of Sports Marketingof Sports MarketingCopyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin2-2One of Our DilemmasOne of Our Dilemmas•No Uniform Definition of “Sport(s) Marketing”•Thus, There Is No Agreement as to Exactly What Constitutes a Sports Product•There Is Agreement that the Discipline Encompasses More than Putting Fans in Seats at Spectator Sports Events2-3Two Broad DomainsTwo Broad Domains•As Noted in Chapter 1, there are two broad domains (categories of initiatives) germane to the discipline of sports marketing:–Marketing of Sports Products–Marketing through Sports by Creating a Sports Overlay (Platform)2-4Important StatementImportant Statement“attention to marketing tools is long overdue” in the marketing of sports products.2-5Products Germane to Products Germane to Sports MarketingSports Marketing•Sports Products•Nonsports Products2-6Sports Product - Category 1Sports Product - Category 1•Spectator Sports (i.e. a football game)–Live Audience–Media-based Audience2-7Sports Product - Category 2Sports Product - Category 2•Participation Sports (i.e. golf)–Attracting more Participants–Getting Current Participants to Play More2-8Sports Product – Category 3Sports Product – Category 3•SASS–Sporting Goods (Callaway Golf Clubs)–Apparel (New Era Baseball Cap)–Athletic Shoes (Air Jordan Shoes)–Sports-related Products (Souvenir Program)2-9Nonsports ProductsNonsports Products•Goods & Services not directly related to a sport•Anything not Included as a Sports Product such as cars, clothes, soft drinks, & razors•Nonsports Products Are Often Sold by Creating a Sports Overlay (or Platform)2-10Level of IntegrationLevel of Integration•Traditional Strategies•Sponsorship-based Strategies2-11Traditional StrategiesTraditional Strategies•Employ the Basic Components of Marketing Strategy–Target Market Selection–Corresponding Marketing Mix•Price•Place•Product•Promotion2-12Sponsorship-Based StrategiesSponsorship-Based Strategies•Employ an Official Sponsorship-based Relationship with a Sports Entity–Traditional Sponsorship–Three Special Forms of Sponsorship•Venue Naming Rights (Building Sponsorship)•Endorsements (Personal or Personality Sponsorship•Licensing (Right to Use Intellectual Properties)2-13Basic Principles of Sports Marketing Basic Principles of Sports Marketing (Details in Box 2.2)(Details in Box 2.2) •Broad Focus–Marketing of Sports vs. Marketing of Sports•Products–Sports vs. Nonsports•Level of Integration–Traditional vs. Sponsorship Based Strategies2-14The Sport Marketing MatrixThe Sport Marketing Matrix•Drop in Figure 2.1 from Page 352-15Mainstream StrategiesMainstream Strategies•Using a Traditional Strategy to Create a Sports Overlay to Sell Nonsports Products–Target Market – ad for Honda cars in Golf Digest–Product – Clothing feature golf graphics–Promotion – ad featuring golfers drinking Pepsi–Distribution – Hard Rock Café at MLB Stadium–Price – Discounts to Bar Patrons Wearing Participation Sport Uniform2-16Product-Focused StrategiesProduct-Focused Strategies•Using Traditional Marketing Strategy to Sell Sports Products–Target Market – NBA Targeting Chinese Fans–Product – New Titanium Golf Clubs–Promotion – Newspaper ad regarding tickets–Distribution – Broadcast Available on WWW–Price – Bundling Tickets & Refreshments at a Bargain Price2-17Domain-Focused StrategiesDomain-Focused Strategies•Using Sponsorship of a Sports Entity to Sell Nonsports Products–Traditional – Coca Cola and the Olympics–Venue Naming Rights – Citi Bank & MLB Stadium–Endorsement – Tiger Woods & Gatorade–Licensing – Mattel & NASCAR2-18Sports-Dominant StrategiesSports-Dominant Strategies•Using Sports-Based Sponsorship to Sell Sports Products (Least Common Domain)–Traditional – adidas and FIFA (World Cup)–Venue Naming Rights – Reebok Stadium–Endorsement – Burton Boards & Shaun White–Licensing – Nike & the New York Yankees2-19““Sports Marketing” Sports Marketing” …is the implementation of proactive strategic initiatives designed to influence potential buyers’ preferences for an array of sports products or to otherwise create a sports overlay in such a way so as to have a positive impact on the sale of nonsports products.2-20Closing CapsuleClosing Capsule•We have a comprehensive overview of the sports marketing environment•Using the type of product sold and the level of sports integration, we have identified the four domains of the discipline•Best visualized with the 2 by 2 matrix2-21Closing CapsuleClosing Capsule•The Four Strategic Domains Are:–Mainstream–Product-Focused–Domain-Focused–Sports-Dominant2-22Closing CapsuleClosing Capsule•To Determine a Marketing Initiative’s Location in the Sports Marketing Environment Matrix, You Need to Answer Two Questions:–Is the product a sports product or not?–Is there any indication that an official sponsorship of a sports entity exists?2-23Closing CapsuleClosing Capsule•Chapter 3 Begins Our Examination of Marketing through Sports•Marketing of Sports Products Will Begin with Chapter