The Sponsorship Pyramid

Sponsorship is a way for a company or business to make an investment in a sport entity. There are opportunities to invest in leagues, teams, events and even athletes. The investment can be in cash or in equipment and merchandise. The sponsor benefits the business by providing the business with the right to associate with the entity they are providing support for, while the entity gets money and supplies to help them train and succeed. The businesses hope that through sponsorship they will increase sales, change attitudes,  bring awareness to their organization and build relationships with sports entities and their fans. (Shank & Lyberger, 2015)

When a business decides to begin a sponsorship, they must first consider their objectives and budget. They also might look at their competition to what kind of sponsorship they are involved in. A decision must be made about how big they want their own sponsorship to be. The Sports Event Pyramid can help to categorize which sponsorship is the best fit. The pyramid is based on width, which is the geographic area, and depth, which is the interest that consumers have in the entity. The pyramid helps to determine the scope of the sponsorship. The levels of the pyramid are local, regional, national, international and global. By deciding how big the sponsorship will be, companies and reduce the number of proposals that they have to consider. (Shank & Lyberger, 2015)

At the local level, sponsorship is involved with sports entities in a city or or town. At this level the interest in the event might be high, but the coverage of the event is low. In Buckhannon, WV, Sam’s Pizza is often a sponsor of local teams and games. They have their sign on the high school baseball field. Sams Pizza gives donations and sometimes provides low cost pizzas for the snack bars. This sponsorship helps people hear about the local restaurant and can bring more customers in. The sports teams can use the money to help them with fields and equipment.

At the regional level, the MAC (Mid American Conference) is a league of 23 college sports in the Mid Atlantic region of the United States. One of their sponsors is University Hospitals, a network of hospitals in Northeast Ohio. University Hospitals places billboards in the stadiums and has commercials that highlight the MAC logo. The hospital became the official health provider for the organization in 2015. Athletes are encouraged to use their hospital for healthcare and the hospital provides funding for the organization.

The NBA a national association of basketball teams, is sponsored by Gatorade. Gatorade pays to have their commercials played during NBA games. They also pay to have their signs and logo seen around the the arenas. They also provide drinks, coolers and towels for the players. By sponsoring the NBA,  the Gatorade brand is seen by a large number of people all across the USA.  People identify Gatorade with the basketball teams.

Internationally, Wimbledon is a tennis tournament that brings worldwide attention and coverage. Players come from many different countries to compete. IBM has sponsored tennis since 1990. The technology company also sponsors the US Open and Australian Open. They provide services for the tournaments like equipment to find the speed of the ball and ways to provide statistics on matches to broadcasters. This service helps the tournaments to take place and also allows IBM to attach their name to the events.

One of the few truly global sports entities is the Olympics. The Olympics has high interest and is known and viewed all over the world. Coca-Cola has been a sponsor of the Olympics since 1928. They bring cold drinks to both athletes and spectators. Sponsoring the Olympics is a good way to promote their brand. In Atlanta, Coca-Cola provided a center for special events and shows to entertain people who had come to the Olympics. Because of their support, Coca-Cola is able to put put their logo on Olympics posters and ads. When people look at the Olympics they are sure to also see the Coca-Cola symbol.

 

Shank, M. & Lyberger, M.  Sports Marketing: A Strategic Perspective, 5th edition. (2015) New York: Routledge.

https://getsomemaction.com/news/2015/12/8/GEN_1208153708.aspx

https://www.bizjournals.com/chicago/news/2018/10/17/gatorade-scores-12-year-high-for-nba-sponsors.html

https://www.compelo.com/wimbledon-2018-sponsors/

https://www.coca-cola.co.uk/stories/making-history-with-the-olympic-games

The Product Life Cycle

The product life cycle is a generalization used by marketers to describe how a product is introduced, sees growth in sales and then declines in popularity. This cycle was first described in the 1960’s in articles focusing on product sales. There were four basic stages in the life of a product, introduction, growth, maturity and decline. In the introduction stage the product is new and the goal is to get people to become aware of the product and try it out. Next, in the growth stage, sales increase and the company tries to gain customer preference and extend the product line. Minor changes might be made and the focus is on getting the product in as many locations as possible. In the maturity stage, sales growth ends and the focus is on maintaining the advantages and keeping repeat buyers. Prices might be reduced and the company needs to offer incentives to buyers, so the profit goes down. Finally, the decline stage occurs and sales diminish. Decisions have to be made and the product might be dropped, harvested (continued with no advertising), or continued as is. The decision usually depends on the competition. This cycle can have much variety and can be different, but can still be useful.  Fads are products that come and go quickly and classics are products that stay popular over time. (Shank & Lyberger, 2015)

Understanding this model can be useful to sports marketers It is a tool that helps them anticipate how the market will react. Sports are unique because they have an off season and the product life cycle may have to be adjusted accordingly. Extending the life cycle of a sports product can be hard, but it is possible. New uses or new product features is one way to revive sales. The market can be increased or a new market can be found, this may also help. The marketing mix may be changed by reducing price or different promotions. Finally, The product can be linked to a trend, which would bring back its popularity.

The product life cycle typically is used for sports products such as equipment, vehicles, technology and even food and beverage.  However it is also possible to look at star athletes as a primary product in sports. “For instance, individual athletes can be thought of as sports products that move through a life cycle just as products do.” (Shank & Lyberger, 2015)

LeBron James is one athlete that could be looked at in the product cycle. His professional career began in 2003. He quickly rose to stardom when he was drafted to the NBA. In just a few years he was the star in a finals game. He won a few MVPs and was a member of championship teams. His efforts won him sponsorship and endorsements.  The stage he is in now would be described as maturity. He is in his mid thirties now and still performing at a high level. He may have shown some slight declines when he moved from one team to another, but he still remains popular.

Baker Mayfield is a quarterback for the Cleveland Browns. He may be described as in the growth stage of his career. In 2018, he was in his rookie year and was able to put up good numbers which led him to become the Rookie of the Year. He has the status where his name is well known. He is developing more sponsorships and getting a larger fan base. This will ultimately increase the ticket sales on game day.

Michael Phelps is a 23 times gold medal swimmer. His popularity peaked in the early 2000’s when he appeared in several Olympic games. He became famous worldwide for winning more medals than any other Olympic swimmer. However, he did have some publicity problems for being involved in a DUI and then a photo of him using marijuana was published. He announced his retirement but then came back in 2016 and won more medals. His product would be described on the decline stage because he is not seen in the media and is not as popular as he was.

Looking at these three athletes, it is clear that their name is very similar to a product life cycle. They generally go up and then down, but they can also experience comebacks.

 

Sources:

Shank, M. & Lyberger, M.  Sports Marketing: A Strategic Perspective, 5th edition. (2015) New York: Routledge.

https://www.latimes.com/sports/nba/la-sp-lakers-lebron-timeline-20180701-story.html

http://www.espn.com/nfl/player/_/id/3052587/baker-mayfield

https://www.teamusa.org/usa-swimming/athletes/Michael-Phelps

Product Items, Lines and Mixes

The things that are being sold by sport marketers can vary greatly. Some companies focus on a single product or service. Others offer a wide variety of products. It is importance to carefully evaluate the items that are being offered to be more successful in the sport marketing process.

Organizing the units that are being offered can help make marketing easier. Product  items are individual things that a company is selling to make a profit. These items can be grouped together under product lines. The things that go together in a product line all satisfy the same customer need. The assortment of different lines that they sell are referred to as the product mix. Having a larger number of items in a line makes the line deeper. The term product breadth describes the number of different lines in a mix. If the lines are related this is called consistency. (Shank & Lyberger, p. 268)

The Cleveland Browns offer an interesting product mix. The lines in their product are, first off, the team itself. Merchandise is another line and the items in that line could be shirts, hats, jerseys and other miscellaneous items. Concessions at the stadiums, parking outside the stadium and tickets to get into the stadium could all be considered product lines. The items in those lines could be, in tickets for instance, box seat tickets, general admission tickets, or season tickets.

Asics is an apparel and footwear company that is targeted toward athletes. Their lines are- Running, training, wrestling, volleyball, tennis, track running, track & field, and other sports. These lines are organized by customer need according to the sport interest that people have. Below each of these lines there are individual products such as shoes, shirts, socks, outerwear, track suits, and accessories. (Asics)

A sport service that has a product mix is Planet Fitness. Planet Fitness is work out facility or gym that requires membership and has a range of fitness experiences that that they offer members. The product mix includes the lines of fitness classes, personal trainers, independent work out sessions, and memberships. Each of these lines offer individual products. For example, fitness classes include the items yoga, zumba, pilates, aerobics, step class, etc. The personal training line has individual items of how to use weight equipment, nutrition guidance, and safety advice. (Planet Fitness)

Understanding how these companies break down the products that they offer can help you to know the business better. In the marketing field, this can help a marketer figure out who they can sell to and better ways to reach customers.

References

Shank, M. & Lyberger, M.  Sports Marketing: A Strategic Perspective, 5th edition. (2015) New York: Routledge.

(https://www.asics.com/us/en-us/mk/inside-asics)

https://www.planetfitness.com/

Sport Marketing Research

sports marketing

The definition of marketing research is using information from consumers to find marketing opportunities and define problems. The information can also be used to generate and evaluate the actions that marketers use. Marketing research can be used to oversee how well marketing is succeeding and also better understand or improve the entire marketing process. Research must find ways to collect information and use the data that is found. (Shank & Lyberger, p. 95)

In order to complete successful sport marketing research,there are several steps that need to be involved. First, the problem or opportunity needs to be defined and this can be done in meetings of the researcher and the client. Objectives for the study are set. The type of research design will be chosen next. The design is a framework or plan and can be  exploratory, descriptive, and causal  Identifying good methods to collect the data is the third step. Secondary data already exists but is relevant and can come internally from within the organization or externally from a variety of sources. Primary data comes from information collected during the research. The next step is designing data collection forms such as questionnaires and surveys. A sample data collection form should be created. The next step involves the work of collecting, analyzing and then interpreting the data. Finally, a research report can be prepared using the data collected, recommendations can be made. (Shank & Lyberger, p. 99) Some researchers believed in finding the problem is the the most important part of the process. “In order to do any research and collect data, you have to know what you’re trying to learn from the research.” (Tomasetti, 2018) Goals might be what to do about a loss in the share of your market or how to go about launching a new product. The research might try to fix the problem or find a new opportunity. Each of these would require new different information. Different collection methods are more appropriate for some situations than others. (Tomasetti, 2018)

Lidl is a supermarket chain based in Europe that supports sports and children in sports. This video is one example of how they try to involve more children in soccer. Dream Big With Lidl

In 2017 a research project was funded by Lidl to see if sports have an impact on body confidence and mental well being of girls. The problem that they were trying to solve was to get more young people involved in sports. Although it is a supermarket chain, they are a sponsor and supporter of football (or soccer)

They questioned girls to see see why many girls have given up sports by the age of 13. The survey included over 800 people, both girls and parents. They used questionnaires and interviews to get primary data.  They also used secondary data like statistics to compare the number of girls involved in sports. Their findings were that girls in sports have better coping mechanisms to deal with the pressures of life than other girls. Girls in sports reported that they happier, have more support and say that they are less lonely and depressed. Sixty-eight percent of players said they felt happy daily compared to 49% of the girls who are not in sports. Girls Interview About Soccer

The results of the survey were used to try to encourage not only coaches but also parents to try to encourage girls to participate more. There were no results or outcomes reported from the research. However it is hoped that more women will participate in sports activities. Before the study, only 14% of women reported that they are involved in sports, and the goal was for this number will increase. (Duffy, 2017)

 

 

 

 

References

Duffy, E. (2017, July 31). Girls who play sport have significantly better body confidence and mental well-being. Retrieved from https://www.the42.ie/lidl-lgfa-research-findings-girls-teenagers-and-sport-3519620-Jul2017/

Shank, M. & Lyberger, M. (2015). Sports Marketing: A strategic Perspective.  5th Edition. New York, Routledge. 

Tomasetti, B. (2018, April 4). The 5 Step Marketing Research Process. Retrieved from https://www.smartbugmedia.com/blog/the-5-step-marketing-research-process

Demographics and the Impact on Sports

Demographics include age, race, gender, and economic status. All of these things can influence  the decisions that people can make. Demographics can also be described using  data and statistics. In sports marketing, demographics can be use to categorize the audience that sports are marketed to. There are some important trends in demographics that sports marketers should be aware of.  The population is growing and the proportion of older people is getting larger. The United States is becoming more diverse over the past years. Immigrants from Asia and Latin America are increasing. The population is also shifting away from the Midwest and North to the South and West. The economy continues to cycle from from prosperity to recession but must be monitored closely because sports is not considered a necessity, and so it is highly impacted by the economic conditions. (Shank & Lyberger, p. 84-85) To To consider the impact of demographics we can look at sport leagues, franchises and products.

In 2016 investor Mark Cuban became the owner of the Professional Futsal League. A sport that is like soccer and played indoors with 5 team members. (Pramuk, 2016) His willingness to invest in a sport that is popular with Latin America is probably influenced by by the growing population of immigrants. They may be interested and willing to go to watch or participate in this new league.

Another league that has developed in the United States are e-sports leagues. League of Legends is a e-sport league in Europe and in France there is the  Rocket League team. In America Team Dignitas is run by the  Philadelphia 76ers. E-sports are creating permanent teams and setting annual tournaments for prizes. (Webster, 2018) The growth of e-sports teams shows a demographic trend toward young people and their dependence on technology.

Demographics have also led to some changes. In 2016 the St. Louis Rams relocated the franchise to Los Angeles.  They were moving from the struggling city of St Louis to go to a new stadium and bigger market. (Dickey, 2016) This move is related to the demographics of populations moving and also the poverty issues faced  by many Midwestern cities.

In 2008 the Seattle Supersonics moved to Oklahoma City. This left Seattle with no NBA team. This has led to the NBA losing popularity in Seattle. Some want the team to come back. (Quniton, 2018) Franchises move to try to be more profitable. There is a lot of discussion and strategics that go into the relocation of a franchised team. Careful attention must be paid to the demographics of the city that is being left and the new city.

Copper fit is a product that is made to offer support to joints and muscles. Copper fit is a type of brace that is meant to protect and reduce pain while participating in sports activities. The products are affordable and found in many department stores. The sale of this product can be related to the aging population. As the population is getting older but still wanting to participate in sports, they look for products to help them.

The Fitbit is another product that has grown in popularity in the past few years. A Fitbit tracks the amount of steps and calculates BMI. It can tell you how many calories you are burning and your heart rate through the day. It is worn on the wrist and can communicate with the users cellphone. The Fitbit is beneficial in modern times, especially for athletes and active people. While it is used by all ages, the Fitbit is more popular with Millennials and Generation Z. Popularity of this product shows that demographically young people are looking to put together sports and technology.

References

Dickey, J. (2016, January 28). Lessons from the St. Louis’ Rams Move to Los Angeles. Retrieved from http://time.com/4196690/st-louis-rams-los-angeles/

Quinton, S. (2018, July 02). 10 years ago today, the Sonics moved from Seattle to Oklahoma City. Retrieved from https://www.seattletimes.com/sports/nba/10-years-ago-today-the-sonics-moved-from-seattle-to-oklahoma-city

sports pic

Sports marketing is using the principles and methods of marketing by using the process of creating, delivering, communicating, exchanging offerings that have value for customers in the sports business. It involves both promoting sports and using sports to promote other products. It is necessary for anyone who wants to be successful in sports marketing to completely know the logistics and applications that apply in both sports industry and marketing.

What makes sports marketing so unique is it has a complication of defining what it is that is being sold to customers. Somethings are clear, such as, sports equipment and apparel being products. However, promoting teams and selling tickets which becomes selling entertainment or an experience. This is no different than going to a concert, club, or to a movie theater.  Another unique thing that sets sports marketing apart is that the customers sometimes have strong commitments and takes their favorite team very personally. This will make marketing easier if the product is related to that specific team or player, but more challenging to sell to customers who are not fans and when the team is performing well.

Sports Good “Nike Combat Gear”

This commercial shows an all-pro football player wearing the Nike clothing brand on the field. The player in the commercial just experience a tough game. Once he went back to the locker room the camera focuses on the gear that kept him warm.

Sports Service “Mamba Sports Academy”

This commercial describes the athletes sacrificing and dedicating their time into the sport. Different sport shows the same amount of energy that it takes to become great. This video is trying to promote the company’s sports academy which offers professional training for young athletes.

Both are highly energize and dramatic. Both commercials shows athletes in action while its message is trying to advertise a good or service. The commercials are indirect in trying to sell the product or service. The differences between these two videos is one focus on a good that an athlete can use to perform better and the other commercial focus on training and motivating the athlete. Also, in one of the commercials there was a professional athlete used as a promotional strategy, as in the other commercial there were amateurs used as promotional strategy. The ultimate goal for these commercials is to sell customers a good or service within the sports business.

 

Sports Marketing

Final Project Brief Discussion

Wesleyan AdvertisingGo_Mart_logo and PR’s ideas on getting that younger generation of people to come to the store are simple, we have Three inexpensive ways that we could bring in those customers. Our first idea is posting more on social media we have found that Go Mart posts a decent amount of material on their Instagram page but as research states Twitter is on the verge of passing Instagram on being the most used social media site. So by posting more on Twitter would make more of the younger generation be more involved with the franchise.

The Second idea is we have a student in our class that his parents own a billboard company, and they came in our class and told us that if we wanted to we could put up our ad on one of their electronic billboards for one month free. The billboards location is right across from the sheets on North Locust St. where most college students come in at so they are more likely to see it when they’re are coming back to college.

Our Third and final idea to get generation Z into the stores is something called geo fencing. Geo Fencing is an online software where you can select regions around where your company is or anywhere in the world and it allows you to put ads into the cloud and it connects to all mobile devices. it can force an ad to pop up on whatever device you’re using at the time through any app and show you deals for your store. 

 

Business-Advertising

 

In the early 1900’s, there were only a few sources of advertising that were streamed in society. It was radio, newspaper, and magazine. As time went on throughout decades, there was the invention of television. Television made advertising more efficient and convenient for consumers, since almost every family had a television in their home by the time the 1950’s have ended. The exposure to adverting increase even more when computers were invented in the 1990’s. Switching things over to digital marketing. In today’s society, the use of cellphones, internet, and social media are taking over the world with mass marketing and ads for consumers to get a hold of.  Although it is good to have many resources in modern time, advertisers found a way to take advantage of those resources. For instance, many people like going on YouTube, Hulu, Pandora, Google, and etc. These apps have lots of ads on there. Advertisers like bombarding consumers on these platforms into buying their product or service. This can easily push lots of consumers away.

Statista TV viewing habits have changed over the last few years, the TV ad market has been naturally adapting to these new ways of consuming TV. Primetime TV advertising has been one of the main pillars of TV ads in terms of revenue; yet only 18 percent of TV viewers in the U.S. watch the commercials during primetime shows. Advertisers still invest in television, but they are using different strategies to reach its public, as they turn to live TV for a wider reach or have a better integration between TV ads with other platforms. Online TV advertising is another alternative to this changing market; the medium accounted for an estimated four percent of TV advertising revenue in the U.S. in 2015 and was forecast to reach 4.9 percent in 2017.

According to AMA, the average consumer is exposed up to 10,000 brand messages a day. That is a lot. The number is growing rapidly. Consumer switch between screens up to 21 times an hour, which means the average person’s attention span is now just eight seconds. Consumer attention is divided across different screens and multi-tasking so the difficulty for their attention is tougher than ever.

In the article of MediaPost, it talks about cross-targeting. It shared a story of a person who were searching for wood-like tiles on Bing and Google. It took about a week later for cross-targeting to begin. Once it began, there were repetitive ads showing on the same channel every half hour or more. The best way to do is spreading out the buys, so the ads can appear on a less frequent basis per viewer reached.

Depending on the ad, is on how annoyed or satisfied I am on when watching it. The ad I watched satisfied me because it sent a interesting message. It was more than I expected in a good way.  I did not feel it was an ad burnout. All the things that were included in the media was Christmas spirit, young kid, and his so-called “toy monster”. I enjoy watching this ad. John Lewis Christmas Ad 2017

 

Advertising is Your Friend

NFL

In the past few years, NFL ratings on television have gone down. The fall of these ratings must eventually have some impact on advertising. If the percentage continue to decrease then TV networks could lose $200 million cut in earnings. Business Insider  Toward the end of last season, some felt the NFL’s ratings dip would be temporary and therefore would not ultimately hurt the networks by forcing them to reimburse advertisers. Instead, the opposite has happened. This past season in the NFL, attendance for some games has also been disappointing. The networks will pay $5 billion this season to televise the NFL and were already facing unflattering margins on advertising profits. Forbes

Even though NFL ratings are going down, they are still one of the highest priced advertising on television. The three most expensive programs to advertise on this fall are all NFL games “despite the creep of politics and safety concerns into the league” TV’s Most Expensive Ads Sunday Night Football gets the biggest price of $699,602 for a 30 sec commercial. The average cost for commercials this season is $134,009. This price has went up to 6% from last season even though TV ratings for all programs has went down from 8.1% to 8%. TV’s Most Expensive Ads In football advertising itself, the price of ads have went up by 50% from 2011-2016. This is true even though the number of viewers has drop from 17.8-16.5 million viewers.  Advertisers still think of football as a good place to show their advertising because football is live. Many other shows are streamed on demand rather than on TV. It is uncertain if the trend of buying time during the NFL games will continue if ratings fall even more. Recode

Another effect of the rating slump is a fall of stock prices of broadcasters who broadcast football games. In the domino effect, CBS, Comcast, and ESPN stocks have fallen because the revenue of these companies is expected to decrease. This is linked to the fall of expected advertising prices that might go along with falling viewer numbers. The contracts between the NFL and broadcasters last several years into the future. For instance, FOX, CBS, and NBC have contracts that is valid through 2022.  Fortune

 

NFL Declining Ratings

Mike Arbogast Reflection

What I thought was interesting about Mike Arbogast’s presentation was he gave us an exercise to help us understand the principles on how to work as a team. He gave us handouts for us to use to describe and put into order pictures that no one else can see. This teaches us how to articulate and communicate with other people to work together to reach a goal. The most important thing when working with clients and/or employees is to make sure they comprehend each other. One person needs to be able to completely describe what they want the others to know while the people gathering information needs to listen to all the details carefully.

Mike Arbogast continued his presentation with the PowerPoint detailing information about client’s needs and wants for particular projects. I learned that it all comes down to what you can do for them, and what would make them happy. Sometimes it is necessary to ask the customers questions or personal details on what they specifically need. Next, skills must be used to find the solution to that particular problem. Then, evaluate the progress to make sure the customers are satisfied with production that you are giving them.

The information from the presentation should be useful in creating a successful ad campaign for a client. Working as a team is beneficial because it is an effective way to accomplish success in major projects.  The importance of good communication is crucial with any type of group work. In creating an ad campaign, the group must understand exactly what the client is looking for in order to keep the clients impressed and have a good reputation for the business. The group can ask questions and keep a record of all the answers so that everyone in the group is aware of the client’s needs.

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