Sports Marketing Ama Sm
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Sports Marketing brings a unique specialty to a marketing mix. When used properly - it is the most powerful marketing tool.
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Sports Marketing Ama Sm
- 1. Successful Sponsorships & Benefits Sports marketing
- 2. SPORTS + MARKETING = A WINNING COMBINATION WHAT IS SPORTS MARKETING? EXPLOITABLE COMMERCIAL POTENTIAL BENEFITS OF SPORTS MARKETING SUCCESSFUL CONCEPTS RESEARCH AND INDUSTRY DETAILS Q & A
- 4. Sports sponsorship spending in North America increased by nearly 40% from 2001-2006, and is expected to increase to $13.24 billion by 2011. (IEG Sponsorship Report, 2007)Source: IEG, Inc., *IEG Sponsorship Report (2001-2006); eMarketer projections (July 2007)
- 5. SPORTS MARKETING By definition, a sports sponsorship is the relationship between a company seeking to market a brand/service AND a property in which the company pays in return for access to the “exploitable commercial potential” associated with the property.
- 6. “EXPLOITABLE COMMERCIAL POTENTIAL” FANS BRANDING/SIGNAGE MEDIA PROMOTIONS HOSPITALITY
- 8. Men ages 25-59 skew higher in sports
- 9. More home owners attend games*Scarborough Research 2007 Release 1
- 10. FANS/DEMOGRAPHICS Source: Scarborough Research, 2008, Release 1
- 11. FANS/DEMOGRAPHICS Which sport has the most avid fan base? Percent of U.S. population who say they are “very interested” in specific sports. Source: Sports Business Journal - Based on a 12-month average, Nov. 2006 - Oct. 2007
- 12. BRANDING/SIGNAGE Marketers turn to sports to develop a heart & mind connection. By leveraging the emotional power of a team, player, sport or event, a sponsor can create a strong tie between his/her brand and the fans. The frequent appearance of a brand name or logo establishes the company as part of what that team, event, or league represents. This connection is more lasting and valuable than traditional advertising alternatives.
- 13. BRANDING/SIGNAGE You receive multiple views per person in each game, making it much more effective than passing by on the side of the road. Fans Expect Signage at Sporting Events. They are more likely to accept your brands. Placement often ties directly into TV, Newspaper, and digital coverage – further expanding the viewership. Locations are strategically placed. Sizing and design matter.
- 14. BRANDING/SIGNAGE
- 15. MEDIA: DESTINATION PROGRAMMING On-air coverage of sporting events creates a window of opportunity for marketers. Exclusive destinations for sharing an experience allows the marketer access to a captive audience. Radio – television – print - online A CAPTIVATED AUDIENCE DESTINATION PROGRAMMING EXCLUSIVE CONTENT
- 17. PROMOTIONS: CREATING INTERACTION Sometimes, showing a product on a screen, or hearing an ad on the radio is not enough. Using the mass appeal of a sporting event allows your organization to connect directly to the fan base. Creating a positive community image at the event goes a long way to build loyalty, converge new users, and establish lasting impressions.
- 18. PROMOTIONS: CREATING INTERACTION Additional benefits of promotions: Media tags Extended recognition Focused fan-base Tracking data (Ex: text to win) Involving Fans builds retention and brand awareness. Increase fan entertainment and receive a dedicated, and captive, audience
- 19. HOSPITALITY: ONE-ON-ONE INTERACTION Corporate hospitality is no longer just about entertaining clients. It’s about maximizing your return on investment. According to Sports Business, “It costs five times as much to acquire a new client as it does to keep an existing one.” Yet, the majority of brand owners have not even begun to scratch the surface of using hospitality as a way of retaining and motivating clients or their own employees in any meaningful way. Source: SportsHospitality.com
- 20. HOSPITALITY: ONE-ON-ONE INTERACTION FIVE KEY’S TO HOSPITALITY: * Choose the right event for the right people * Ensuring the right mix of guests * Choosing an appropriate location or venue * Good and professional organization of the event * Good quality and quantity of food and drinks WHY USE HOSPITALITY: * Cement and build relationships * Thank your customers * Raise your profile * Motivate your staff * Enhance loyalty and retention * Remind your customers of what you do Source: SportsHospitality.com
- 21. FINANCIAL BENEFITS: RELATIONSHIP TO STOCKS “Using announcements from the five most popular professional “ball and stick” sports in the United States, the results of the study document that officialsponsorships were perceived positively by stock market investors… Specifically, Cornwell, Pruitt, and Van Ness (2001) showed that Indianapolis 500 race-winning sponsors with direct ties to the automotive industry experienced increases in stock prices almost 3 percent higher than the sponsors of unrelated products.” Source: Journal of the Academy of Marketing Science, 33(4), 401-412
- 22. FINANCIAL BENEFITS: BANK OF AMERICA “…the millions that Bank of America spends on sports sponsorships is an income-generating activity, not a frivolous marketing outlay, say bank officials. For every dollar the bank spends on sponsorships, they say, it brings in $10 in revenue and $3 in earnings.” Source: Ken Lewis, Bank of America CEO/President in Sports Business Journal, March 2009
- 23. FINANCIAL BENEFITS: AAA INSURANCE “AAA clubs use sponsorship to engage customers and prospects and develop positive feelings about the brand.” “The club credits its sponsorship and other non-traditional marketing activities with playing a key role in lifting its market penetration from less than 3.5 percent share to roughly 15 percent.” Source: IEG Sponsorship Report, 8/10/09, Volume 28: Number 15
- 24. SPORTS MARKETING: SUMMARY Creating a common connection through sports with your customers will reveal a lifetime of loyalty and brand recognition. Incorporating the right mix of branding, media, promotions, and hospitality with your local sports franchise will provide the qualitative and quantitative results to justify your commitment to the sponsorship.
Notes de l'éditeur
- ONE OF THE REASONS I WAS ASKED TO BE HERE TODAY IS BECAUSE OF THE GROWING TREND OF NON-TRADITIONAL MARKETING SPENDS ACROSS THE COUNTRY.THIS GRAPH SHOWS THE GROWING TREND OF SPONSORSHIPS DATING BACK FROM 2001.
- IT IS THIS “EXPLOITABLE COMMERCIAL POTENTIAL” THAT WE ARE GOING TO GO THROUGH TODAY SO THAT EVERYONE REALLY UNDERSTANDS WHAT A SPORTS MARKETING PROGRAM CAN OFFER.
- THE COMMERCIAL POTENTIAL OF ANY SPORTS MARKETING CAMPAIGN BEGINS WITH FANS. WHETHER IT’S COLLEGIATE SPORTS, MINOR LEAGUE BASEBALL, OR A LOCAL TRIATHLON – IT’S IMPORTANT TO KNOW WHO YOU ARE APPROACHING.
- THIS SLIDE SHOWS THE LOBOS DEMOGRAPHIC DETAILS WITH AN EMPHASIS ON IN-GAME ATTENDEES. EVERY ORGANIZATION OFFERS A VARIETY OF DEMOGRAPHIC DETAILS TO MARKETERS – AND WITHIN EACH SPORT AND MEDIUM – NEW DEMOGRAPHIC SEGMENTS BECOME CLEARLY DEFINED. BASKETBALL ATTENDEES HAVE A SLIGHTLY SKEWED DEMOGRAPHIC THAN FOOTBALL FOR EXAMPLE.FOR EXAMPLE: PEOPLE WHO ATTEND GAMES TEND TO BE WEALTHIER WHILE RADIO LISTENERS HAVE A LOWER HOUSEHOLD INCOME. MIND YOU THAT DURING AWAY GAMES – THE BLEND OF BOTH HIGHER AND LOWER INCOME LEVELS BECOMES MORE SIGNIFICANT.
- AS IT RELATES TO ALBUQUERQUE, WE’RE FORTUNATE THAT COLLEGIATE FOLLOWING HAS A BETTER ATTRACTION FOR SPORTS FANS, MAKING IT EVEN MORE VALUABLE TOTIE INTO A LOCAL SPORTS PROGRAM.
- SO, HOW DO WE REACH THOSE FANS? THE FIRST WAY TO EXPLOIT THECOMMERCIAL POTENTIAL OF YOUR SPORTS MARKETING CAMPAIGN IS THROUGH THE USE OF BRANDING, OR SIGNAGE.
- BRANDING COMES FROM EVERY MARKETABLE ANGLE IN MOST SPORTING EVENTS. THE RIGHT DESIGN IN THE RIGHT LOCATION RECEIVES MORE EXPOSURE AND GENERATES A POSITIVE EMOTION.
- HERE ARE EXAMPLES OF HOW BRANDING COMES ACROSS IN THE MEDIA.EA SPORTS (FIFA): MY WORK WITH ESPN360 ACTUALLY INCLUDED IN-GAMEADVERTISING AS A MEANS TO ENHANCE THE PLAYER EXPERIENCE AND EARN REVENUE. WE FOUND THAT IN-GAME ADVERTISING IN THE SPORTS VIDEO GAME CREATED A 76% INCREASE IN CONFIDENCE FROM OUR PLAYERS WHILE GIVING SPONSORS AN AVERAGE OF 2.8 HOURS OF GAME PLAY EXPOSURE PER PLAYER, PER DAY.
- ANOTHER WAY TO REACH FANS IS THROUGH THE USE OF MEDIA. GRABBING FANS WHERE THEY HAVE TO TUNE IN, LOG-IN, OR WATCH ENSURES YOUR AUDIENCE IS PAYING ATTENTION. USING MEDIA ALLOWS MARKETERS TO TAP INTO A CAPTIVATED AUDIENCE WITH DESTINATION PROGRAMMING BECAUSE THE SPORTS PROPERTY IS PROVIDING EXCLUSIVE CONTENT THAT CAN ONLY BE FOUND IN SPECIFIC LOCATIONS.
- USING THE LOBOS AS OUR EXAMPLE: THE LOBOS HAVE CREATEDA STATE-WIDE RADIO NETWORK TO BROADCAST OUR GAMES. THIS IS THE SAME CONCEPT THAT MAJOR LEAGUE BASEBALL USES WHEN IT AIRS GAMES ACROSS THE COUNTRY – ALLOWING PEOPLE FROM ALL OVER TO HEAR THE YANKEES PLAY THE REDSOX.IN NEW MEXICO – YOU CAN TUNE IN FROM FARMINGTON, TO GALLUP, EVEN ALL THEWAY DOWN WHERE OUR IN-STATE RIVALS ARE IN LAS CRUCES. ON TOP OF THAT – PEOPLE WHO MIGHT NOT USUALLY LISTEN TO 770 KKOB HAVE TOTUNE IN TO OUR BROADCASTS TO HEAR THE LOBOS PLAY. SO WHETHER YOU LISTENTO SOFT ROCK, COUNTRY MUSIC, OR HIP HOP – IF YOU ARE A LOBO FAN – YOU TUNE IN TO OUR BROADCAST BECAUSE OF THE UNIQUE CONTENT - CREATING DESTINATION PROGRAMMING.
- A 3RD, AND SOME SAY THE MOST FUN WAY, TO ATRACT FANS AND EXPLOIT YOUR SPORTS SPONSORSHIP IS THROUGH THE USE OF PROMOTIONS. PROMOTIONS CAN BE AT GAMES, OR AT STORE LOCATIONS. FANS OF TEAMS WANT TO PARTICIPATE IN TEAM ACTIVITIES, TO FEEL CLOSE TO THE TEAM. IF YOUR COMPANY CAN PROVIDE THAT EXPERIENCE – YOU HAVE THE OPPORTUNITY TO CONVERT NON-USERS, IMPROVE MARKET SHARE, AND GENERATE DIRECT RESULTS. TALK ABOUT AAA SPONSORSHIP OF THE EAGLES.
- HOSTING A PROMOTION INCLUDES MANY VARIABLES. YOU CAN:CREATE BENEFIT PROGRAMS FOR USING YOUR PRODUCT OR SERVICEDRIVE TRAFFIC TO YOUR STORE LOCATION BY OFFERING A UNIQUE TEAM/GAME EXPERIENCEGIVE FANS A TAKEAWAY OR KEEPSAKE THAT IS KEPT/DISPLAYED – INCREASING LOYALTY AND REACHSPONSORING PROMOTIONS ALSO LEADS TO FAN ENTERTAINMENT. THINK ABOUT KISSING CAM’S, LUCKY SEAT PROMOTIONS, OR HALF-COURT SHOTS TO WIN MONEY… FANS WANT TO BE A PART OF THOSE PROMOTIONS AND ENJOY WATCHING THEM.ADDITIONAL BENEFITOF PROMOTIONS TYPICALLY INCLUDE:THE SPORTS PROPERTY TYPICALLY HELPS PROMOTE YOUR SPONSORSHIP WITH THEIR OWN MARKETING BUDGET. EXAMPLE: “RALLY TOWEL NIGHT, THINK PINK GAME, ETC.”TRACK RESULTS. TYPICALLY, FANS HAVE TO SIGN UP OR COMPLETE AN ACTION TO RECEIVE ENTRY IN A PROMOTION. TEXT TO WIN.
- THE FINAL EXPLOITABLE COMMERCIAL OPPORTUNITY FOR MARKETERS COMES FROM THE USE OF HOSPITALITY AT THE ACTUAL EVENTS. THIS IS SOMETHING MOST COMPANIES FAIL TO COMPLETELY UTILIZE. GIVING PROSPECTS, EXISTING CLIENTS, AND EMPLOYEES A UNIQUE EXPERIENCE GIVES YOU THE FACE-TO-FACE INTERACTION THAT PROVIDES IMMEASURABLE BRAND LOYALTY.
- SOME OF THE BIGGEST ARGUMENTS AGAINST SPORTS MARKETING ARE BASED ON METRICS. “HOW CAN WE QUANTIFY RESULTS?” “WHAT ARE THE RATINGS FOR THE GAMES?” “HOW MANY IMPRESSIONS WILL WE RECEIVE?” THESE ARE THE TYPE OF QUESTIONS I ALWAYS HERE. WELL, THE RESULTS ARE NOT ALWAYS EASILY QUANTIFIED IN SPONSORSHIPS. VARYING GAME TIMES DON’T ALLOW GAMES TO FITINTO TYPICAL RATING SPOTS FOR TV & RADIO. IMPRESSIONS CAN BE MORE IN ONEGAME AND LESS IN ANOTHER BASED ON THE ACTION ON THE FIELD. BUT HERE ARE SOME EXAMPLES AND STUDIES THAT SHOW HOW SPONSORSHIPSBENEFIT SPONSORING BUSINESSES.
- THIS SLIDE SHOWS A REACTION FROM KEN LEWIS – PRESIDENT AND CEO OF BANKOF AMERICA – ABOUT A CLAIM THAT THE BANK’S MARKETING SPENDING WAS “FRIVOLOUS.” BANK OF AMERICA USES SPORT SPONSORSHIPS TO INCREASE IT’S OVERALLPROFITABILITY AND USES EVERY ONE OF THE EXPLOITABLE COMMERCIAL AVENUESTO ACHIEVE IT’S GOALS.
- HERE, AAA FURTHER DEVELOPS THE IDEA THAT SPONSORSHIPS ENHANCE THE “FEELING” ASSOCIATED WITH THEIR BRAND. AAA SPONSORSHIP ELEMENTS:OFFER A CRUISE WITH PROFESSIONAL ATHLETES AT END OF THE SEASONDISCOUNTED COST TO FANSDISCOUNTED COST TO EXISTING AAA MEMBERSTEAM UP WITH FRITO LAY TO OFFER IN-STORE PROMOTION GIVEAWAY ONE FREE TRIP FOR TWO USING PROMOTIONUSE PRE-SEASON SIGNING DAY PARTY TO KICK OFF THE EVENTGIVE ADDITIONAL GIVEAWAYS (JERSEYS, TICKETS, ETC)
- A STUDY PERFORMED BY TURNKEY INTELLIGENCE – A NEW JERSEY MARKET RESEARCH FIRM - SHOWED THAT THE POSITIVE PERCEPTION OF SPONSORSHIPS IN MID-MAJOR CONFERENCES, AND AMONG COLLEGE FANS IN GENERAL, FAR EXCEEDS THE PROFESSIONAL RANKS.