Sports Marketing

A Strategie Perspective

5th edition

Matthew D. Shank and Mark R. Lyberger

H Routledge
Taylor & Francis Croup
LONDON AND NEW YORK
 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 Strategie 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
CHARTER 2 Contingency framework for Strategie sports marketing
NBA Releases 2011-2012 Regulär Season Schedule
Contingency framework for Strategie sports marketing
Contingency approaches
Internal and external contingencies
Internal contingencies
Vision and mission
Organizational objectives and marketing goais
Organizationai strategies
Organizational culture
External contingencies
Competition
Technology
On the industry's radar
Cuitural and social trends
Physical environment
Political, legal, and regulatory environment
Big-time College sports is an out-of control monster
Demographics
Ethnic studies: MLB forms diversity comittee
The economy
Monitoring the external contingencies
Assessing the internal and external contingencies: SWOT analysis

Summary
Key terms
Review questions
Exercises
Internet exercises
Endnotes

PART II: FLANNING FOR MARKET SELECTION DECISIONS

CHARTER 3 Research tools for understanding sports consumers

Marketing research in action: the Gary Southshore RailCats
Hitting a home run with the digital generation
The marketing research process
Defining the problem or opportunity
Case study: a sponsorship measurement Solution
Choosing the research design type
Identifying data collection techniques
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 splh on racial opportunity 126

Summary 130
Key terms 132
Review questions 132
Exercises 132
Internet exercises 133
Endnotes 133

CHARTER 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
 Key terms
Review questions
Exercises
Internet exercises
Endnotes

CHARTER 5 Understanding spectators as consumers

Factors influencing attendance
Fan motivation factors
Baseball suffers drop in attendance
Sports marketing hall of fame: David Stern
Sports wagering
Game attractiveness
Economic factors
Competitive factors
Demographic factors
Stadium factors
Vaiue of sport to the Community
Career Spotlight: Marc Reeves
Sports involvement
Spotlight on international sports marketing: a comparative
analysis ofspectator involvement: United States vs.
United Kingdom
Fan identification
Summary
Key terms
Review questions
Exercises
Internet exercises
Endnotes

CHARTER 6 Segmentation, targeting, and positioning

Segmentation
Bases for segmentation
Technical report - Sport England Market Segmentation
Generation M2: media in the iives of 8- to 18-year-olds
espnW: a brand for female athletes
The IWFL and the history of women's tackle football
 Contents

NFL may be hitting stride with female fans 226

Move over Fütbol. 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
Review questions 254
Exercises 254
Internet exercises 255
Endnotes 256

PART III: FLANNING THE SPORTS MARKETING MIX

CHARTER 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 Farne: Phil Knight 282
Licensing 284
Quality 289
Product design 293

Summary 296
XII
 Contents

Key terms 298

Review questions 299
Exercises 299
Internet exercises 299
Endnotes 299

CHARTER 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 Farne: 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
Review questions 340
Exercises 340
Internet exercises 341
 Contents

Endnotes 341

CHARTER 9 Promotion concepts 343

Communications process 345
Sports Marketing Hall of Farne: 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
Review questions 371
Exercises 371
Internet exercises 372
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 Rochiitz, Vice President, National
Partnerships and Sales, Baltimore Ravens 410
The Strategie selling process 411
Sales promotions 415
Public relations 421
NBA cares evolving after 5 years of Service 424
Summary 427
Key terms 428
Review questions 429
Exercises 429
Internet exercises 429
Endnotes 429

CHARTER 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 Schoo! looking at boosting corporate
sponsorship ofathietics 479
Hot Seahawks add Boeing, Starbucks deais 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
Review questions 492
Exercises 492
Internet exercises 493
Endnotes 493

CHARTER 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 Farne: 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

xv:
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Orioles raise season-ticket prices slightly, expand variable-

pricing system 529
Price increases and reductions 530
Price discounts 532
Summary 533
Key terms 534
Review questions 535
Exercises 535
Internet exercises 536
Endnotes 536

PART IV: IMPLEMEIMTING AND CONTROLLING THE STRATEGIC

SPORTS MARKETING PROCESS

CHAPTER 13 Implementing and Controlling the Strategie 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 ofFame: 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 1001vorst 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
Review questions 587

xvii
 Contents

Exercises 588
Internet exercises 588
Endnotes 588
Appendix A: Career opportunities in sports marketing 591
Job opportunities in sports marketing 592
Cover letters and resumes 596
Interviewing 598
Where to look for additional Information 601
Appendix B: Some sports marketing sites of interest on the Internet 603
Glosse ry 607
Illustration credits 625
Index 650

xviii