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Sport Marketing Test


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What is a Product?
􀂆 Product: bundle of physical, service, and symbolic attributes designed to enhance buyers’ want satisfaction
Product defined
􀂆 Needs to be understood as a concept and must be used an as umbrella term that includes goods, services, people, places, and ideas with tangible or intangible attributes (Stanton, et al., 1991) 􀂆 “everything both favorable and unfavorable, that one receives in an exchange. It is a complexity of tangible and intangible attributes, including functional, social, and psychological utilities or benefits” (Pride & Ferrell, 1991) 􀂆 A product is something that tends to offer a functional benefit, whereas a brand is a name, symbol, design, or mark that enhances the value of a particular product or service (Farquhar, 1989; Cobb- Walgren, et al. 1995; Myers, 2003)
What are Goods and Services?
􀂆 Service: intangible task that satisfies consumer or business user needs 􀂆 Goods-services continuum: device that helps marketers to visualize the differences and similarities between goods and services
Characteristics that distinguish services from goods:
􀂆 Intangibility 􀂆 A tangible product is something that is concrete, definite, discernible, and material (softball bat, golf clubs, etc.) 􀂆 An intangible product is something that is indefinite, indiscernible, indistinguishable, and imperceptible (pro basketball game) 􀂆 Inseparability 􀂆 Perishability 􀂆 Difficulty of standardization 􀂆 Frequent requirement of interaction between buyer and Seller 􀂆 Variability
Importance of the Service Sector
􀂆 The service sector makes up more than two-thirds of the economy. 􀂆 Services also play a crucial role in the international competitiveness of U.S. firms. 􀂆 Concerns include offshoring service jobs such as customer service call centers.
Personnel and Process
􀂆 A.J. Magrath argues that personnel and process are additional P’s in the marketing mix 􀂆 Charles Martin coined the phrase: All sports are “contact” sports– consumers cannot access a product without contacting personnel in the organization
Types of Convenience Product
􀂆 Impulse goods and services are purchased on the spur of the moment. (concessions) 􀂆 Staples are convenience goods and services that consumers constantly replenish to maintain a ready inventory. (sport-related clothing, shoes?) 􀂆 Emergency goods and services are bought in response to unexpected and urgent needs. (sport?)
Shopping Product
􀂆 good or service purchased only after the customer compares competing offerings from competing vendors on such characteristics as price, quality, style, and color 􀂆 Typically cost more than convenience purchases. 􀂆 Include tangible items. 􀂆 Shopper lacks complete information and gathers information during the buying process.
Specialty And Unsought Products
􀂆 Specialty: good or service with unique characteristics that cause the buyer to value it and make a special effort to obtain it 􀂆 Sport? 􀂆 Season tickets, Super Bowl tickets, Air Jordon shoes, etc. 􀂆 Unsought: good or service marketed to consumers who may not yet recognized in the need for it 􀂆 Sport? 􀂆 12th Man Foundation
Quality as a Product Strategy
􀂆 Quality is a key component to a firm’s success in a competitive marketplace. 􀂆 Total quality management (TQM): approach that involves all employees in continually improving products and work processes to achieve customer satisfaction and world-class performance
Quality of Services
􀂆 Service encounter 􀂆 Service quality: Expected and perceived quality of a service offering 􀂆 Determined by five variables: 􀂆 Tangibles 􀂆 Reliability 􀂆 Responsiveness 􀂆 Assurances 􀂆 Empathy 􀂆 Service quality scale
The Product Mix
􀂆 A company’s assortment of product lines and individual offerings 􀂆 Product Width--the number of product lines offered. 􀂆 Product Length--the number of different products a firm sells. 􀂆 Product Depth--variations in each product that a firm markets in its mix.
The Product Life Cycle (PLC)
􀂆 Product life cycle: progression of products through introduction, growth, maturity, and decline stages
􀂆Introduction Stage
􀂆 Firm works to stimulate demand for the new market entry 􀂆 Promotional campaigns stress features (teach them) 􀂆 Additional promotions to intermediaries attempt to induce them to carry the product (B2B) 􀂆 Although prices are typically high, financial losses are common due to heavy promotional and research-and-development costs
􀂆Growth Stage
􀂆 Sales volume rises rapidly (demand & they have been taught) 􀂆 Firm usually begins to realize substantial profits 􀂆 Success attracts competitors 􀂆 Firm may need to make improvements to the product 􀂆 Additional spending on promotion and distribution may be necessary 􀂆Maturity Stage 􀂆 Industry sales continue to grow, but eventually reach a plateau (plan for this) 􀂆Many competitors have entered the market, and profits began to decline 􀂆 Differences between competing products diminish 􀂆 Available supplies exceed industry demand for the first time 􀂆 Competition intensifies and heavy promotional outlays are common 􀂆Decline Stage 􀂆 Innovations or shifts in consumer preferences cause an absolute decline in industry sales 􀂆 Industry profits fall -- sometimes become losses 􀂆 Firms cut prices in a bid for the dwindling market 􀂆Manufacturers
􀂆Maturity Stage
􀂆 Industry sales continue to grow, but eventually reach a plateau (plan for this) 􀂆Many competitors have entered the market, and profits began to decline 􀂆 Differences between competing products diminish 􀂆 Available supplies exceed industry demand for the first time 􀂆 Competition intensifies and heavy promotional outlays are common
􀂆Decline Stage
􀂆 Innovations or shifts in consumer preferences cause an absolute decline in industry sales 􀂆 Industry profits fall -- sometimes become losses 􀂆 Firms cut prices in a bid for the dwindling market 􀂆Manufacturers gradually drop the declining items from their product lines
Extending the Product Life Cycle
􀂆 Marketers usually try to expand each stage of the life cycle for their products as long as possible 􀂆 Product life cycles can stretch indefinitely as a result of decisions designed to: 􀂆 Increase the frequency of use by current customers 􀂆 Increase the number of users for the product 􀂆 Find new uses 􀂆 Change package sizes, labels, or product quality
Product Deletion Decisions
􀂆 Product lines must sometimes be pruned and marginal products eliminated 􀂆 Teams, individual players, leagues, etc. 􀂆 This decision is typically faced during the late maturity and early declined stages of the product life cycle 􀂆 An unprofitable item may be continued in order to provide a complete line for customers Marketing Challenges 􀂆 The sport product is inconsistent from consumption to consumption 􀂆 The core game or performance is just one element of a larger ensemble 􀂆 The marketer typically has little control over the core product and consequently must focus efforts on product extensions Sport Product Core and Extensions 􀂆 Both an integrated ensemble and a bunch of components with lives of their own 􀂆 At the core is the event experience, composed of 4 components 􀂆 Game
Marketing Challenges
􀂆 The sport product is inconsistent from consumption to consumption 􀂆 The core game or performance is just one element of a larger ensemble 􀂆 The marketer typically has little control over the core product and consequently must focus efforts on product extensions
Sport Product Core and Extensions
􀂆 Both an integrated ensemble and a bunch of components with lives of their own 􀂆 At the core is the event experience, composed of 4 components 􀂆 Game form (rules, technique) 􀂆 Players 􀂆 Equipment & Apparel 􀂆 Venue
􀂆 The drama of sport requires star power 􀂆 NASCAR drivers demonstrate how stars extend the product beyond the event 􀂆 Sponsorships & consumer reaction 􀂆 Women have made progress, but still face limited media exposure 􀂆 MJ redefined the player as a product 􀂆 Fortune stated that he was worth “about $10 billion” when gate receipts, tv revenues, merchandise sales, etc. were combined 􀂆 It took the alignment of several factors including 1990s economy, his incredible ability, marketability, charisma, and popularity of basketball at the time
Equipment & Apparel 􀂆
􀂆 All sports have equipment 􀂆 Some of this equipment is high-tech or specialized requiring constant updating
The Ticket and other Print Materials
Few realize the full value of a ticket 􀂆 Obvious uses 􀂆 But often used for both a promotional tool as well as revenue 􀂆 Can carry prestige (and scalping value) 􀂆 Game programs can be similar to tickets regarding aforementioned factors
The Role of Marketing Channels in Marketing Strategy
􀂆 Channels provide the means by which the firm moves the goods and services it produces to ultimate users 􀂆 Facilitate the exchange process by cutting the number of contacts necessary 􀂆 Adjust for discrepancies in the market’s assortment of goods and services via sorting 􀂆 Standardize exchange transactions 􀂆 Facilitate searches by both buyers and sellers
Physical Distribution
􀂆 A company’s physical distribution system contains the following elements: 􀂆 Customer Service 􀂆 Transportation 􀂆 Inventory Control 􀂆 Protective packaging and materials handling 􀂆 Order Processing 􀂆 Warehousing
Place: There’s No Place Like Home!
􀂆 Proper management of facilities and services at the home field can provide a competitive advantage both for attracting fans and then for the team who gets to play in front of a good home crowd. 􀂆 However, management sometimes has difficulty consistently getting good play from their employees and keeping the place in proper shape. 􀂆 A new stadium or arena can make things better in the short term, but won’t save bad management and a bad team.
Difficulties Managing a Sport Venue: Place
First, the longer you work at a place, the more difficult it is to remember what it is like to be a customer. 􀂆 Second, owners and managers are less likely to receive or even see the same service that the average Joe does. 􀂆 These three areas of difficulty presented before represent three critical aspects of sports marketing that hit close to home: 􀂆 facility management, 􀂆 service management and 􀂆 fan management.
Facility Management
􀂆 Managing the place is particularly important in sportscapes (i.e., all of the built and managed environment that the fan sees when attending a sporting event), because fans spend hours in the place. 􀂆 In fact, the more time fans spend in the place, the more important is the facility itself in determining fan attendance. 􀂆 The sportscape has the most influence on fans’ feelings and behavior in baseball (70-82 home games), followed by basketball and hockey (40+ home games), and football (6-8 home games). 􀂆 The point is that the more hours that season ticket holders (or frequent fans) are paying to be in the place, the better the place has to be.
Facility Research
􀂆 Because management becomes accustomed to the physical environment and the people with which they work everyday, it is important to be aware of the focal points that affect fans’ perceptions of the place. 􀂆 Research on stadiums shows that the ten factors on the next slide influence how (dis)pleasurable fans feel the place is.
Multiple Use Facilities
􀂆 Too often in the past, management has focused on the sports facility as merely a place to play a game. 􀂆 Today, it is more often a place that people go for entertainment throughout the year, as sports facility owners seek to hold events in the facility for social groups, weddings, birthdays, bar mitzvahs, multiple sports, concerts, and hopefully—rodeos and monster truck shows. 􀂆 In any case (except perhaps rodeos), the attractiveness of the facility as a meeting place will influence the likelihood that others will want to spend time in the facility. 􀂆 Obviously, availability of customer services (i.e., food service & catering) are also important, but this is covered in the next section on service management.
Parking Access
􀂆 Five things that organizations can do to facilitate parking access include: 1. Employ enough personnel to direct fans to open parking when entering and to educate and direct fans to the most expedient exit routes. 2. Add routes that give fans more entrance & exit choices. It is important that management carefully evaluate physical routes and barriers that may inhibit proper traffic flow. If adding additional entrances/exits will save fans 10-20 minutes, it is probably worth the investment in logistic infrastructure (roads). 3. Arrange traffic light management with local police. Sometimes the problem isn’t in the parking lot—it could be problems down the road where traffic lights stall the free movement of traffic. 4. Offer entertainment before and/or after the game that encourages fans to come early and stay later. Having a concert or some other post-game entertainment allows the crowd to not have to disperse all at the same time. 5. Provide shuttle service from a more distant parking lot—for free, by getting a sponsor who gets personal contact with the fans on the way to the facility. The sponsor can pass out samples or coupons and provide other brand/product information while also gaining the positive association with the team in the minds and hearts of fans.
Architectural Design
The first broad impression that fans get of a place is from the exterior of the place and its general architectural design. 􀂆 While you may read many editorials complaining about the rash of new stadiums and arenas and the drain on taxpayers, the fact of the matter is that facilities of all types (not just sports) require frequent renovation or entirely new facilities to maintain its competitiveness. 􀂆 On the extreme, one can observe the frequency and expense with which casinos in Las Vegas renovate and rebuild in order to remain competitive. Must be able to accomodate more than just a sporting event
Interior Décor
􀂆 Even today, you can frequently encounter sportscapes that rely upon this time-tested color scheme that makes fans feel like they want to leave as soon as 􀂆 (a) the game is decided, 􀂆 (b) they stop serving beer, and/or 􀂆 (c) they recover from walking around the seemingly endless winding walkways to their seats in the upper deck. 􀂆 Fix it up. Some organizations with older facilities have improved the interior décor and built or maintained fan attendance.
Layout and Wayfinding Signage
􀂆 A frequent problem encountered by new fans visiting a stadium is finding their way around. 􀂆 Again, management already knows where to go, so they often overlook the fact that the layout of the facility can be confusing and that clear wayfinding signage is needed.
Visualization and Markers
􀂆 An important advantage of most of the new stadiums is that they are designed so that fans can see through the facility to be able to visualize where they are, where they want to go, and what’s going on the field. 􀂆 Further, better interior designs often provide wayfinding markers that may include landmarks (e.g., sculptures, displays, etc.), differentiated wall design (e.g., wall colors, pictures, etc.) or differentiated facilities (e.g., concessions with different storefronts) to enable fans to separate one part of the large facility from another
Lacking effective interior layout and design, way-finding signage becomes critical in helping fans find seats, services and exits. 􀂆 The point is that management must view things from the fans’ perspective and consider situations that occur when the stadium is occupied and new fans are attending. 􀂆 After fans find their seats, they will likely seek directions to food service, restrooms, shops, and other services (such as first aid, ticket offices for future sales, etc.). 􀂆 In the case of food service and restrooms, it can be particularly useful if directions are available communicating alternative locations (viz., “Expanded restrooms are also located behind the 1st and 3rd baselines and outfield bleachers.”). 􀂆 Finally, exits should be clearly marked, but fans also would benefit from knowing the best ways to exit. 􀂆 Announcements and informational pamphlets can communicate some of this information. 􀂆 However, having personnel available to answer questions and direct fans as they exit is also an important responsibility of attendants and security personnel. Sportscape Facility Space and Perceived Crowding 􀂆 The amount of space available given the number of people in that space has a direct psychological and physiological effect on fans. 􀂆 Perceived crowding in its strictest sense refers to the negative psychological reaction that an individual has when the number of people in a given space exceeds an acceptable comfort level for that individual. 􀂆 While an effective visually-open layout and clear way-finding signage can alleviate space problems, the lack of space available for fans to easily navigate the facility in a timely manner leads to feelings of frustration. 􀂆 For anyone but maybe the most committed fan, cramped walkways, stuffy concession areas with long lines, and long narrow rows of seats leads to negative affective responses (read: they don’t like it) and ultimately to exit (read: they leave and don’t come back). 􀂆 It is no surprise that some fan segments are particularly disadvantaged at sporting events due to the lack of equitable restroom space. 􀂆 To combat this problem, the new American Airlines Center in Dallas has nearly 9,832 stalls in the women’s restroom to accommodate fans. 􀂆 Unfortunately, the men’s restrooms are now located outside the arena. !(•_•)! Sportscape Facility Space and Perceived Crowding 􀂆 Crowding is a two-edged sword in the sportscape. 􀂆 On
Facility Space and Perceived Crowding
Perceived crowding in its strictest sense refers to the negative psychological reaction that an individual has when the number of people in a given space exceeds an acceptable comfort level for that individual.
Crowding is a two-edged sword in the sportscape.
􀂆 On the one hand, the team wants a large crowd. 􀂆 The large crowd means greater excitement in the stands, more revenue to the organization, and home field advantage for the team. 􀂆 On the other hand, a large crowd without ample space will lead some to exit early and not return due to perceived crowding.
Smaller venues: Crowding
􀂆 Interestingly, to combat such crowding problems, nearly all new baseball stadiums over the past decade actually seat fewer fans than their predecessors. 􀂆 Rather than cram more people into uncomfortable spaces, they have chosen to make cozier facilities for fewer—but more satisfied—fans. 􀂆 Having 40,000 relatively good seats (including suites) compared to 60,000 seats of which only 20,000 are decent seats (as in some old stadiums) allows the organization to charge higher prices for the better value afforded by the seats.
􀂆 Make space: Facilities and Perceived Crowding
􀂆 Some facilities have attempted to deal with cramped facilities by removing seats and expanding the width and number of aisles and walkways. 􀂆 Other venues with limited attendance have shifted pricing policies to encourage or allow fans to get closer to the action (and out of the cramped upper level seats). 􀂆 Some teams offer seat upgrades for a small fee (e.g., $1) that move fans to unused lower level seats after the beginning of the game. 􀂆 In addition to the benefit in reducing negative responses to cramped spaces, providing spacious areas to allow fans to easily navigate the venue is likely to have a positive affect on food service revenues.
Seat Comfort, Equipment Quality, Scoreboards & Sound Systems
􀂆 The most important aspect of seats, equipment and scoreboards is that they function properly. 􀂆 You can have the highest quality seats, service equipment (e.g., including things like air conditioning), scoreboards and sound systems in the country, but if they do not work they are little good at the time. 􀂆 Fans are likely to attribute the malfunctioning to management.
Scoreboards & Sound Systems
􀂆 The quality of the scoreboard & sound system limits or affords opportunities to entertain and inform fans. 􀂆 Since most sports organizations should be able to obtain decent systems through sponsorship deals, the only reason for lousy scoreboards is likely to be because someone has not effectively presented a package deal to the appropriate sponsor(s
What do fans want on scoreboard
1) Complete team and player stats: Real sports fans eat up statistics about players and teams. Why else would Jerry Seinfeld say, “I’d read the sports page if my hair was on fire.”? 2) Emotion-driven entertainment: While highly identified fans want plenty of stats, fans of all identification levels are likely to enjoy video entertainment that sparks emotion. 3) Replays
Keeping a facility clean is much like maintaining seats and equipment. Individuals must be assigned to clean every aspect of the facility before, during, and after the event. 􀂆 Since cleanliness is entirely up to the personnel managing the place, fans will make attributions regarding management if the place is not clean: 􀂆 1. Lack of organizational skills & attention to detail 􀂆 2. Lack of concern for fans’ needs 􀂆 3. Lack of finances (due to poor attendance) to pay janitorial staff 􀂆 To the extent that management does have direct control over these services, personnel should be assigned to complete cleaning assignments at every customer contact point (halls, aisles, restrooms, etc.).
Promotion Objectives
􀂃 Promote means to persuade, to build up, to encourage, to advance, to exalt, to elevate, and to build a good image 􀂃 Promoting can include activities designed to inform, to gain attention, to encourage action such as participation or purchasing, and to disseminate information 􀂃 Sport promotion: the function of informing or influencing people about the sport company’s products, community involvement, or image 􀂃 Marketing Communications: transmission from a sender to a receiver of a message dealing with the buyer-seller relationship
􀂃 The communication tool of the industry 􀂃 People will not buy a product if they do not know that it exists
Promotional Advertising Mediums for Sport
􀂃 Signage 􀂃 Endorsements 􀂃 Print Media 􀂃 Electronic Media 􀂃 Billboards, Blimps, Buses
Integrated Marketing Communications
􀂃 Coordination of all promotional activities – media advertising, direct mail, personal selling, sales promotion, and public relations – to produce a unified customer-focused promotional message 􀃠 Success of any IMC program depends critically on identifying the members of an audience and understanding what they want
The Communications Process
􀂃 An effective promotional message accomplishes three tasks: 1) It gains the receiver’s attention 2) It achieves understanding by both receiver and sender 3) It stimulates the receiver’s needs and suggests an appropriate method of satisfying them Communication
􀂃 AIDA concept (Attention-Interest- Desire-Action
an explanation of the steps through which an individual reaches a purchase decision 􀃠 Sender 􀃠 Encoding 􀃠 Channel 􀃠 Decoding 􀃠 Response 􀃠 Feedback 􀃠 Noise
The 6 V’s
1. Visitors 2. Vision 3. Value 4. Volume 5. Voice 6. Validation
􀂃 To plan a successful promotion campaign that effectively uses your promotion dollars you must first know all you can about the visitors (read: infrequent fans or customers) you are trying to attract. 􀂃 You can increase your revenue from three sources: 􀃠 1. Sales to current customers (i.e., increase visits per month) 􀃠 2. Sales per visit (i.e., increase ticket amount each visit) 􀃠 3. Sales to new customers
􀂃 To be successful over the longer term, you must have a vision. Having a vision for the “longer term” here refers to something more along the lines of five to ten years, rather than only six to twelve months. 􀂃 The best advertising campaigns are those that have staying power and that build a clear company image over a long period of time. 􀂃 One of the biggest mistakes that advertisers can make is to frequently change their campaigns. You must envision a specific, achievable, and measurable objective that you want to achieve with your promotion within a specific time frame.
􀂃 After you understand who your visitors really are and have set visionary objectives, you can begin to design your promotional message or theme. 􀂃 This message must answer the customer’s question, “What do I get?” And the answer better be something that they value
Volume: 2 ways
􀃠 1. Frequency—Rule of Three. Some advertising professionals advise that for people to get a message that they need to be exposed to it at least three times over a four-week period. 2. Reach—Once a Week. Other advertising professionals (Erwin Ephron and John Philip Jones), suggest that if you’re not trying to teach customers something new, then what you really want to do is reach the most people you can with your message every week. The first time people hear or see your promotion message is the most impressive.
􀂃 You will recall that when you set your visionary objective that you included a benchmark (where you are) and a concrete destination (where you are going) within a specific time frame.
Athlete Endorsements
􀁺 Jesse Owens and Adidas in 1936 􀁺 Amateur status, IOC “eligible athletes” 􀁺 Some obtain huge sums of $, others receive equipment or other fringe benefits 􀁺 The benefits of cross promotion: Michael Jordan on a Wheaties box wearing Nike shoes 􀁺 Signage on cars, bodies, etc. 􀁺 The risk is high for corporations to sponsor individual athletes (scandal clauses
Growth of Sponsorship
􀁺 Coincided with the ban on tobacco & alcoholic drink advertising 􀁺 Decreased efficiency of traditional media 􀁺 Changing social priorities – cause-related marketing 􀁺 High consumer acceptance 􀁺 Development of goodwill 􀁺 The acceptance of commercialization of sport by governing bodies 􀁺 The increased media interest in sport programming 􀁺 Sports have gone global
Growth of Sponsorship: Then and Now
THEN: The incredible growth of corporate sports sponsorship spending over the past two decades has generally not been accompanied with a great deal of marketing planning, either on the part of the sponsor or the sponsored organization. 􀁺 Sponsorships have evolved from simply placing signage on an outfield wall (see Shibe Park/Connie Mack Stadium) to highly leveraged sponsorship arrangements that may include a full menu of sponsorship activities designed to activate consumer response. 􀁺 NOW: The pressure placed upon senior management to produce results from their marketing endeavors has “resulted in enhanced interest in measuring and evaluating the impact of sponsorship decisions” (Crompton, 2004, p.268).
Sponsorship Defined
􀁺 Acquisition of rights to affiliate or directly associate with a property or event for the purpose of deriving benefits related to that affiliation or association 􀁺 “An investment, in cash or in kind, in an activity, in return for access to the exploitable commercial potential associated with that activity” (Meenaghan,1991, p.36) 􀁺 Includes a wide array of activities associated with a communications process that is designed to utilize sport and lifestyle marketing to send messages to a targeted audience
Sponsorship Exchange Relationship
Sport Property Financial investment, media & promotional commitments Sponsor (corporation) Increased awareness, image enhancement, demonstration platform, hospitality, product trial and/or sales opportunities
Promotions Mix
􀁺 Advertising 􀁺 Personal Selling 􀁺 Sales Promotion 􀁺 Public/Community Relations 􀁺 Sponsorship
How Sponsorship differs from Advertising
– Sponsor’s degree of control – Nature of the message – Audience reaction – Ambush marketing
Integrated Promotions
Sponsorship->Advertising-> Personal Selling->Sales Promotions->Public Relations
Sponsorship Objectives
􀁺 Since the onset of sponsorship growth in the 1980s, corporate motives and objectives for sponsorships have been unclear As we fast-forward to the new millenium, we find that over 75% of those engaged in sponsorships allocate little or none of their sponsorship budgets to finding out if objectives are being met (see IEG Sponsorship Report 2002: Survey Reveals What Matters to Sponsors)
Sponsorship Objectives: how can we measure our objectives
􀁺 Fundamental to any planning process is the need to set clear, measurable objectives to be completed within a precise timeframe. This implies that: 1. Benchmarks of current performance are measured 2. Objectives are developed. Plans are made to meet objectives 3. Performance is measured and compared to the benchmarks
SMART Objectives
All sponsorship endeavors should BEGIN and END with objectives (Madrigal, 2006) 􀁺 Specific 􀁺 Measurable 􀁺 Achievable 􀁺 Results-oriented 􀁺 Time-bounded
Corporate Objectives
􀁺 Increase public awareness 􀁺 Influence public perception 􀁺 Establish association with particular market segments 􀁺 Community based 􀁺 Builds goodwill 􀁺 Media benefits 􀁺 Achieve sales objectives 􀁺 Create exclusivity 􀁺 Obtain opportunities in hospitality and entertainment 􀁺 Secure entitlement or naming rights
Sponsorship Objectives: corporate
􀁺 Create awareness & visibility (1) For a new product or company (2) Reach a new target market (3) Bypass legal restrictions 􀁺 Increase brand loyalty 􀁺 Connecting the brand to properties the consumer cares about 􀁺 Change/reinforce image 􀁺 DAST, John Hancock & Boston Marathon 􀁺 Differentiate from competitors 􀁺 Signify exclusivity, brand leadership 􀁺 Drive retail traffic & sales (consumers & properties) 􀁺 Alltel & NASCAR, Reliant Energy 􀁺 Community/Social Responsibility 􀁺 HEB & Bruce Bowen 􀁺 Hospitality 􀁺 Access to exclusive events (Masters, NCAA) 􀁺 Recruit/retain employees 􀁺 McDonald’s, American Express
Activation and Over-servicing
• “Activation refers to putting the sponsorship into action. It could mean many different things, including: 􀁺 Leveraging the tie-in advertising or promotions 􀁺 Developing that artwork to be used in program ads or signage at the stadium/arena 􀁺 Utilizing hospitality offered by the property to entertain guests, customers, etc.” Over-servicing sponsors means that the sports organization makes every effort to make the sponsorship work through effective matching, activating, and leveraging the sponsorship on the front end and communicating, documenting, and following-up on the backend of the deal
Activation Risks
Potential risks of sponsoring 􀁺 Poor performance at an event 􀁺 Disreputable behavior at an event 􀁺 Community backlash from charges of overcommercialization 􀁺 Liability risk 􀁺 Clutter – will it be effective?
Evaluation of Sponsorships
Three broad schools of evaluation 1) Measuring awareness levels achieved or attitudes changed 2) Quantifying sponsorship in terms of sales results 3) Comparing the value of sponsorship – generated media coverage to the cost of equivalent space or time Regardless of the type of evaluation: 􀁺 A pre-sponsorship benchmark 􀁺 Maintaining consistent levels of advertising and other promotions during the sponsorship 􀁺 Measure one objective at a time
Why sponsorships fail?
1. Lack of leverage 2. Property hopping 3. Too many little sponsorships 4. Insufficient staffing 5. Failure to sell internally 6. Overlooking the fans
Assessing Sponsorship Results
􀁺 Sponsorship results are usually long-term, not short-term 􀁺 Difficult to assess effects 􀁺 Despite the impressive visibility of events like the World Cup and Super Bowl, sponsorships do not always lead to increased sales or improved brand awareness 􀁺 Clutter 􀁺 Marketers utilize some of the same techniques to measure both advertising and sponsorship

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