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Chapter 2Chapter 2

The Four Domains The Four Domains

of Sports Marketingof Sports Marketing

Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill/Irwin

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One 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 Events

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Two 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)

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Important StatementImportant Statement

“attention to marketing tools is long overdue” in the marketing of sports products.

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Products Germane to Products Germane to Sports MarketingSports Marketing

• Sports Products

• Nonsports Products

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Sports Product - Category 1Sports Product - Category 1

• Spectator Sports (i.e. a football game)– Live Audience– Media-based Audience

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Sports Product - Category 2Sports Product - Category 2

• Participation Sports (i.e. golf)– Attracting more Participants– Getting Current Participants to Play More

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Sports 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)

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Nonsports 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)

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Level of IntegrationLevel of Integration

• Traditional Strategies

• Sponsorship-based Strategies

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Traditional StrategiesTraditional Strategies

• Employ the Basic Components of Marketing Strategy

– Target Market Selection– Corresponding Marketing Mix

• Price• Place• Product• Promotion

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Sponsorship-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)

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Basic 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 Strategies

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The Sport Marketing MatrixThe Sport Marketing Matrix

• Drop in Figure 2.1 from Page 35

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Mainstream 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 Uniform

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Product-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 Price

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Domain-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 & NASCAR

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Sports-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 Yankees

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““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.

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Closing 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 matrix

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Closing CapsuleClosing Capsule

• The Four Strategic Domains Are:– Mainstream– Product-Focused– Domain-Focused– Sports-Dominant

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Closing 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?

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Closing CapsuleClosing Capsule

• Chapter 3 Begins Our Examination of Marketing through Sports

• Marketing of Sports Products Will Begin with Chapter 13