10-1 chapter 10 venue naming rights copyright © 2010 by the mcgraw-hill companies, inc. all rights...
Post on 20-Dec-2015
213 views
TRANSCRIPT
10-1
Chapter 10Chapter 10
Venue Naming RightsVenue Naming Rights
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
10-2
Venue Naming RightsVenue Naming Rights
• Building Sponsorship
• Sponsor Pays to Have Its Name Attached to a Facility for A Specified Period of Time
• Many Types of Facilities beyond Sports
• Also Driven by ROI
10-3
Brief Historical PerspectiveBrief Historical Perspective
• Early Ego-Driven Motives
• 1973 – Rich Stadium for NFL’s Buffalo Bills ($1.5 million over 25 Years)
• Percent of US Professional Teams Playing in Venues with Corporate Sponsor– 30% in 1997– 69% in 2007
10-4
Benefits for Four ConstituenciesBenefits for Four Constituencies
• Benefits for the Fans
• Benefits for the Community at Large
• Benefits for the Resident Organization
• Benefits for the Sponsor
10-5
Benefits for the Fans – Benefits for the Fans – Often Involves New FacilityOften Involves New Facility
• Better Seating Configurations
• More Amenities
• Potential for Lower Ticket Prices
• Better Product
• Team Retention
10-6
Benefits for the Benefits for the Community at LargeCommunity at Large
• Provides Jobs
• Higher Levels of Tourism
• Lower Taxpayers’ Burden
10-7
Benefits for the Benefits for the Resident OrganizationResident Organization
• New Revenue Stream
• Enhanced Level of Prestige
• Greater Corporate Interest for Involvement Via Traditional Sponsorship
10-8
Benefits for the SponsorBenefits for the Sponsor
• Increased Awareness
• Improved Image
• Sustainable Competitive Advantage from the Association with the Venue and Its Resident Organization
• Hospitality Opportunities
• Increased Sales
10-10
Plan ComponentsPlan Components
• Signage– Places like main entrance, gathering areas,
scoreboards, concession areas– May Include Virtual Signage Opportunities
• Logos – On uniforms of participants, service workers,
and items such as napkins and cups
10-12
Plan ComponentsPlan Components
• Advertising – Broadcast and Programs– Many venue naming rights deals include
advertising for the building sponsor; these may include radio, TV, and the event program
• Designation for Leveraging Purposes– A building sponsor often seeks ability to
position itself as an “official sponsor” of the venue’s primary resident organization
10-13
Plan ComponentsPlan Components
• Category Exclusivity– Competitors of the building sponsor may not
be allowed any official role with the venue
• Recognition on Public Address Announcements and Scoreboards– Contract often specifies a minimum number of
such acknowledgements during each event that is staged at the venue
10-14
Plan ComponentsPlan Components
• Hospitality– Provision of an area for entertaining; may
include a luxury suite for some (or all) events
• Complimentary Tickets– Free tickets to events staged at the venue
10-15
Plan ComponentsPlan Components
• Web Presence– Acknowledgment or even a direct link to the
sponsor’s Web site from the venue and the resident organizations’ Web sites
• Distribution Rights– Ability of sponsor to sell its products at the
venue
10-16
Plan ComponentsPlan Components
• Other Marketing Initiatives
– Take orders for products– Accept applications (i.e. credit card company)– Showcase products– Engage in promotional giveaways
10-17
Example of Example of Venue Naming Rights ContractVenue Naming Rights Contract
• Drop in Table 10.1 Here
10-18
Key Success DriversKey Success Drivers
• Target Market Fit
• Ability to Leverage
• Integration within Sponsor’s IMC Plan
• Multipurpose Facilities
10-19
Target Market FitTarget Market Fit
• Capitalize on Strategic Linkage to Reach the Sponsor’s Target Market
• Marketer May Need to Consider Venues beyond the Sports Environment
10-20
Ability to LeverageAbility to Leverage
• Resident Organization May Receive a Significant Amount of Media Exposure
• Building Sponsor Should Use Leveraging Program as a Means of Capitalizing on that Exposure
• Leveraging Should Tie the Sponsor to the Resident Organization
10-21
Integration within Integration within Sponsor’s IMC PlanSponsor’s IMC Plan
• Sponsorship Fits Other Elements of the Building Sponsor’s Marketing Strategy
• Sponsorship Is Not a Stand-Alone Promotional Strategy; It Must Work in Harmony with the Other Components of the Sponsor’s Integrated Marketing Communications (IMC) Plan
10-22
Multipurpose FacilitiesMultipurpose Facilities
• Multipurpose Facilities:
– Reach a Varied Array of Market Segments
– Reduce the Seasonal Variation Regarding the Use of the Venue
10-24
Examples of Sports VenuesExamples of Sports Venues
Venue Location Total Contract ($US) YearsCiti Field New York, NY 400 20
Reliant Stadium Houston, TX 300 30
Philips Arena Atlanta, GA 180 20
Emirates Stadium London, England 200 13
Lucas Oil Stadium Indianapolis, IN 121.5 20
Allianz Arena Munich, Germany 120 15
Air Canada Centre Vancouver, Canada 25 20
10-25
Opportunities Beyond SportsOpportunities Beyond Sports
• Examples Include– Hospitals– Educational Facilities– Museums– Performing Arts Centers– Shopping Malls
10-26
Measuring the ResultsMeasuring the Results
• Qualitative Assessment
• Consumer Surveys of Awareness
• Media Equivalencies
10-27
Problems, ConcernsProblems, Concernsand Criticismsand Criticisms
• Cost
• Public Reluctance to Embrace Corporate Name
• Media Resistance to Use Corporate Name
10-28
Problems, ConcernsProblems, Concernsand Criticismsand Criticisms
• Difficult to Measure Sponsorship’s Impact
• Sponsor Transition (i.e. Merger)
• Arena Obsolescence
• Lack of Consistency – Performance of Resident Organization Varies over Time
10-29
Problems, ConcernsProblems, Concernsand Criticismsand Criticisms
• Limited Number of Opportunities Remain in the US Professional Sports Market
• Teams Move
• Sponsorship Clutter
10-30
Growth OpportunitiesGrowth Opportunities
• Some Pro Sports Opportunities in USA
• Nonsports Environment
• Secondary Sports Facilities
• Opportunities Outside of United States
10-32
Brokers and ConsultantsBrokers and Consultants
• Specialized Agencies that Negotiate Deals that Work for Either the Sponsor or the Sponsee in the Negotiation Process
– Work to Get Maximum Revenue for Venue– Work to Get Best Deal for the Sponsor
– For Example: Front Row Marketing http://www.frontrow-marketing.com/
10-33
Closing CapsuleClosing Capsule
• Venue Naming Rights Is Our First Special Case of Sponsorship
• Primary Emphasis Has Been on Sports Venues, but Other Opportunities Abound
• It’s Not Just about Attaching a Corporate Name to a Building