Business Administration LAP 8Business Administration LAP 8

ObjectivesObjectives

Explain the nature of the sports industry.Explain the nature of the sports industry.

Explain the concept of sports Explain the concept of sports marketing and its effect on society.marketing and its effect on society.

Objective AObjective A

Explain the nature of theExplain the nature of thesports industry.sports industry.

• Sports industry affects your life even if Sports industry affects your life even if you’re not athletic.you’re not athletic.

• There’s almost nowhere on Earth that isn’t There’s almost nowhere on Earth that isn’t touched by the sports industry.touched by the sports industry.

• Marketing of this vast industry affects you.Marketing of this vast industry affects you.

Sports industry includes a lot more than Sports industry includes a lot more than professionals or amateurs playing a game.professionals or amateurs playing a game.

It includes…It includes…

……the facility the facility where the where the games are games are

played.played.

……the equipment the equipment used to playused to play

the game.the game.

……the agencies that the agencies that regulate the games.regulate the games.

……the mediathe mediathat broadcastthat broadcast

the games.the games.……the fans the fans

who watch the who watch the games.games.

Sport Product Includes:Sport Product Includes:

The sporting eventThe sporting event

Sporting goodsSporting goods

Personal trainingPersonal training

Sports informationSports information

Sporting event is the first thing that comes to Sporting event is the first thing that comes to mind when you think of the sport product.mind when you think of the sport product.

An intangible, perishable experienceAn intangible, perishable experience

Example:Example:

The badminton game The badminton game you played with your you played with your friends Saturday. You friends Saturday. You

will never again play that will never again play that same game.same game.

Athletes are another part of the sporting event.Athletes are another part of the sporting event.

They make the They make the game or activity game or activity happen. Without happen. Without the players, there the players, there

would be no event.would be no event.

Third part of the sporting event is the facility or Third part of the sporting event is the facility or location where the event takes place.location where the event takes place.

Sporting goods make the games possible.Sporting goods make the games possible.

These are the tangible, manufactured products sold and These are the tangible, manufactured products sold and used within the sports industry. used within the sports industry.

Equipment and clothingEquipment and clothing

Accessory productsAccessory productsLicensedLicensed

merchandisemerchandise

Collectibles or Collectibles or memorabiliamemorabilia

Personal training is available to Personal training is available to professionals and amateurs.professionals and amateurs.

Professionals attend pre-seasonProfessionals attend pre-seasontraining camps.training camps.

Amateurs might go to a Amateurs might go to a gym or health club.gym or health club.

Children attend Children attend sports camps in sports camps in

the summer.the summer.

Adults might take golf Adults might take golf lessons before teeing lessons before teeing

off each season.off each season.

Sports InformationSports InformationProvides news about teams, events, schedules, statisticsProvides news about teams, events, schedules, statistics

Local newspapers, TV, and radio stationsLocal newspapers, TV, and radio stations

Specialized sports Specialized sports channelschannels

Sports magazinesSports magazines

InternetInternet

Consumers of Sports Include:Consumers of Sports Include:

• Unorganized participantsUnorganized participants

• Organized participantsOrganized participants

• SpectatorsSpectators

• SponsorsSponsors

Unorganized ParticipantsUnorganized Participants

• Do not follow rules of an Do not follow rules of an organization or grouporganization or group

• Free to participate whenever Free to participate whenever they want, for as long as they want, for as long as they want, and in any way they want, and in any way they want.they want.

• Have freedom that Have freedom that organized participants do organized participants do not havenot have

Organized ParticipantsOrganized Participants

• Play sports that have rules and are Play sports that have rules and are controlled by groups or sanctioning bodiescontrolled by groups or sanctioning bodies

• Cannot play any way they want or at any timeCannot play any way they want or at any time

• Usually play in amateur or professional Usually play in amateur or professional eventsevents

Amateur athletes are:Amateur athletes are:

• Not paid to playNot paid to play

• Regulated on the local, state, or national levelRegulated on the local, state, or national level

Professional athletes are:Professional athletes are:

• PaidPaid——Playing the game is often their occupation.Playing the game is often their occupation.

• Regulated by governing bodies and must follow Regulated by governing bodies and must follow strict rulesstrict rules

Many amateur Many amateur games are played games are played

only for the only for the enjoyment ofenjoyment of

the participants.the participants.

In contrast, most professional games are played In contrast, most professional games are played before a large audience of paying customers.before a large audience of paying customers.

SpectatorsSpectators

These participants are the observers of These participants are the observers of the sporting event. They include:the sporting event. They include:

• FansFans

• Corporate consumersCorporate consumers

• The mediaThe media

$ponsors$ponsorsBusinesses or organizations that pay to associate Businesses or organizations that pay to associate

their names with a sporting event.their names with a sporting event.

A business that sponsors the Olympics

can reach millions worldwide.

Businesses sponsor:Businesses sponsor:

AthletesAthletesTeamsTeams

ArenasArenas

Stadiums

Objective BObjective B

Explain the concept of Explain the concept of sports marketing and its sports marketing and its

effect on society.effect on society.

Sports marketing makes you aware of all the goods and Sports marketing makes you aware of all the goods and services that are part of the industry…services that are part of the industry…

……through the marketing of sports products as well as through the marketing of sports products as well as other products through the use of sports.other products through the use of sports.

The sports marketing industry is divided The sports marketing industry is divided into the following segments:into the following segments:

• Marketing of the actual sport eventMarketing of the actual sport event

• Marketing of sports goods/services to Marketing of sports goods/services to consumers of the sportconsumers of the sport

• Marketing of other consumer and Marketing of other consumer and individual goods/services through sportsindividual goods/services through sports

• Marketing of products to sporting eventsMarketing of products to sporting events

Marketing the Sport EventMarketing the Sport Event

What made you decide to join a particular What made you decide to join a particular fitness center or exercise facility?fitness center or exercise facility?

New New member member

discount?discount?

Free visit?Free visit?New New

location?location?

Cheaper than Cheaper than competitors?competitors?

Effectively pricing, promoting, and distributing a Effectively pricing, promoting, and distributing a product encourages you to buy.product encourages you to buy.

Marketing the Sport EventMarketing the Sport Event

Marketing gets you to tune in to events, buy tickets, Marketing gets you to tune in to events, buy tickets, participate in all types of sporting events.participate in all types of sporting events.

Marketing of Sports GoodsMarketing of Sports Goodsand Servicesand Services

• Participants in sporting events buy a varietyParticipants in sporting events buy a varietyof products.of products.

• Marketing helps you to decide where to shop, Marketing helps you to decide where to shop, how much to spend, and which brand to buy.how much to spend, and which brand to buy.

• Involves a retail focus because it is directed Involves a retail focus because it is directed towards consumers of sporttowards consumers of sport

• Purpose is to encourage fans and participants to Purpose is to encourage fans and participants to buy certain sport goods and servicesbuy certain sport goods and services

• Manufacturers and retailers involved in marketingManufacturers and retailers involved in marketing

Marketing Other Goods or Services Marketing Other Goods or Services Through the Use of SportsThrough the Use of Sports

Businesses use sport to market their product.Businesses use sport to market their product.

A football scoreboard featuring the names of local businesses

The businesses and their products areThe businesses and their products arenot related to football.not related to football.

Businesses use a sport specifically to market a Businesses use a sport specifically to market a certain good or service.certain good or service.

Example:Example:

A 5k race to raise money A 5k race to raise money for a charity attracts a for a charity attracts a

lot of people and lot of people and increases awareness of increases awareness of

the good or service.the good or service.

Marketing of Products to SportsMarketing of Products to Sports

The sport itself needs goods and servicesThe sport itself needs goods and servicesin order to operate.in order to operate.

NIKE Uniforms for Uniforms for playersplayers

Networks/channels Networks/channels to broadcast sportto broadcast sport

Soft drinks for Soft drinks for arena or stadiumarena or stadium

Businesses that provide these products Businesses that provide these products spend a lot of time and energy on marketing.spend a lot of time and energy on marketing.

These companies might offer lower prices,These companies might offer lower prices,better service, faster delivery, and promotional better service, faster delivery, and promotional

assistance to get the business.assistance to get the business.

Marketing of Products to SportsMarketing of Products to SportsBusinesses market their products to local sports such as:Businesses market their products to local sports such as:

Race tracksRace tracks

Bowling alleysBowling alleysMarinasMarinas

Ski areasSki areas

Many goods sold by these sports businesses are Many goods sold by these sports businesses are provided by other businesses.provided by other businesses.

The growth and marketing of the sports The growth and marketing of the sports industry go hand in hand.industry go hand in hand.

They actually feed off one another.They actually feed off one another.

Product growthProduct growthMarketing Marketing

opportunitiesopportunities

Sports product becomes more popular becauseSports product becomes more popular becauseof marketing, and marketing opportunitiesof marketing, and marketing opportunities

increase as the product grows.increase as the product grows.Some sport products would exist withoutSome sport products would exist without

marketing, but not on the same scale.marketing, but not on the same scale.

Sports marketing affects millions of people throughout Sports marketing affects millions of people throughout the world from young children to senior citizens.the world from young children to senior citizens.

Attendance at sporting events has increased Attendance at sporting events has increased dramatically in the last decade.dramatically in the last decade.

Media coverage of these games has also increased.Media coverage of these games has also increased.

Almost any time of day or night television or radio Almost any time of day or night television or radio stations broadcast some type of sporting event. stations broadcast some type of sporting event.

Everything from traditional sports to windsurfing.Everything from traditional sports to windsurfing.

Sports marketing is good for you.Sports marketing is good for you.

Opportunity for employment increases as Opportunity for employment increases as attendance and media coverage grows.attendance and media coverage grows.

TrainersTrainers

CommentatorsCommentators

Stadium Stadium workersworkers

Doctors/Doctors/TherapistsTherapists

AthletesAthletesSports lawSports law

Sports marketing is good for you.Sports marketing is good for you.

Sports benefits those who participate eitherSports benefits those who participate eitherby playing or watching.by playing or watching.

Health benefits are Health benefits are an important part an important part of participating.of participating.

Recreation is another Recreation is another benefit. Sports provides benefit. Sports provides a chance to play, have a chance to play, have

fun, and relax.fun, and relax.

Being entertained is a benefit that sports provides.Being entertained is a benefit that sports provides.

Enjoying the excitement of Enjoying the excitement of competition and cheering for competition and cheering for your favorite team makes you your favorite team makes you

feel like part of the game.feel like part of the game.

Sports marketing is good forSports marketing is good forthe local community.the local community.

Major events have a significant impact on the local economy.Major events have a significant impact on the local economy.

People who travel to watch the game will stay

in hotels, eat in restaurants, buy

souvenirs, and visit other attractions. The money they spend benefits the

local economy.

People are attracted to a city for sports-related activitiesPeople are attracted to a city for sports-related activitiesother than major league teams.other than major league teams.

These attract visitors at different times of the year, and those These attract visitors at different times of the year, and those visitors spend money at local stores, hotels, and restaurants.visitors spend money at local stores, hotels, and restaurants.

Sports has an impact on a city’s image.

When you think ofWhen you think ofGreen Bay, Wisconsin Green Bay, Wisconsin

you think of the Packers. you think of the Packers. They have a good They have a good

reputation, have won reputation, have won three Super Bowls, and three Super Bowls, and have had great coaches have had great coaches

like Vince Lombardi.like Vince Lombardi.

It can create a good image.It can create a good image.It can also create a negative image.It can also create a negative image.

SPORTSLuckville Loses

24th Straight

GameIf a team is not If a team is not

doing well or has an doing well or has an image problem, that image problem, that

often carries overoften carries overto the city.to the city.

Even small cities and towns benefit from the image of Even small cities and towns benefit from the image of local sports activity.local sports activity.

The Village of Islamorada The Village of Islamorada in the Florida Keys is in the Florida Keys is known for being the known for being the sportfishing capital sportfishing capital of the world. It’s also of the world. It’s also

known for scuba diving known for scuba diving and snorkeling.and snorkeling.

Sports marketing is good for society.Sports marketing is good for society.

A major industry A major industry that generates that generates

billions of dollars of billions of dollars of revenue each yearrevenue each year

JobsJobs RevenueRevenueIt grows, it creates It grows, it creates

more jobs that more jobs that generate more generate more

revenue that helps revenue that helps industry growth, industry growth, which causes the which causes the cycle to continue.cycle to continue. Industry Industry

GrowthGrowth

Growth increases opportunities within the Growth increases opportunities within the industry and in related industries.industry and in related industries.

Equipment/Equipment/clothingclothing

Larger Larger stadiums/arenasstadiums/arenasTraining facilitiesTraining facilities

Sports marketing is good for society.Sports marketing is good for society.

Snowballing effect trickles downSnowballing effect trickles downto almost everybody.to almost everybody.

Involvement in sports isInvolvement in sports isgood for everyone.good for everyone.

• Can bring economic prosperity to even the Can bring economic prosperity to even the sleepiest of communitiessleepiest of communities

• Can unite people from around the world in Can unite people from around the world in support of an event or teamsupport of an event or team

• Can keep you active and entertainedCan keep you active and entertained

Marketing is an enormous industry that might be hard to put into perspective.

• Identify and talk with a sports marketer in your community.

• Find out what sports product the person provides.

• Determine how much the product costs.

Follow a process to see sports marketing in action:

• Now, find out how to obtain the product.

• Think of how you learned about the product.

• Find out who the primary product users are.

• Put together all these pieces to obtain the overall picture of sports marketing.

Sponsorships are an important part of sports marketing.

• Money from sponsorships often helps sports organizations that are struggling to make ends meet.

• Think of what it means to a high school athletic department to:

- Receive free uniforms

- Have its stadium renovated and expanded

• All these companies want in exchange is to put their names on the scoreboard, program, or stadium.

• What’s the problem, or is it a problem?

• What if the local company is a

- beer or wine distributor?

- nearby gambling casino?

- a clothing manufacturer using child labor in foreign countries?

• Do any of these situations have an effect on sponsorships?

MarkED

Acknowledgements

Original DeveloperChristopher C. Burke, MarkED

Version 1.0

Copyright 2004MarkED Resource Center

Digital-based photography sources:

CORBIS CORP.Women’s LifeObj. A: #082Photos copyright Corbis Corp.750 Second Street, Encinitas, CA 92024

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DIAMARPeople & Lifestyles Vol. 7Obj. B: #PEO_51Photos copyright Diamar Interactive Corp. 600 University Street 1701 One Union Square, Seattle, WA 98101-1129

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Photos copyright T/Maker Company; 1390 Villa Street: Mountain View, CA 94041; tel. (415) 962-0195. Copyright 1994, all rights reserved. ClickArt is a registered trademark of T/Maker Company. ClickArt Images copyright 1984-1994 by T/Maker Company. All rights reserved.

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