Using Sports to Market Products Lesson 4.1. Women of Soccer.

Using Sports to Market Products

Lesson 4.1

Women of Soccer

Marketing Products through sports

Using Sports to Market Products• Market to your Audience

– Wide range of demographic groups enjoy sports

• Power of Emotional ties– People get emotional feelings toward a sport or an athlete

• Women on the Scene– Women spend 5 billion a year on sports wearGood market to get intohttp://www.sportsmarketing20.com/video/sponsorship-in-60-seconds-rtr

http://www.sportsmarketing20.com/video/sponsorship-in-60-seconds-rtr

http://www.sportsmarketing20.com/video/sponsorship-in-60-seconds-rtr

What is a Brand• The name word or words, symbol or design

that identifies the organization and its products .

• Brand name- word, letters, or numbers representing the brand that can be spoken.– “Gatorade” “Los Angeles lakers”

“The brand is a promise of the value you'll receive.”

Branding Terms• Trade name- legal name of the company.

– Nike, Reebok– Registered brand names and trade names with

Patent office becomes a trademark

• Brand Personality- Attaching human traits to a brand– Nike creates a “winning mentality” with star

athletes– Skechers - creates a cool hip brand

• Branding builds customer loyalty

• Create an image (personality) for the product

• Delivers the message clearly

• Confirms your credibility

• Connects your target prospects emotionally

• Motivates the buyer

Brand Equity

• The value that a company realizes from a product with a recognizable name compared to its generic equivalent

• Consumers are willing to spend more to buy Coca Cola rather than the store brand. Steps to develop equity1) Develop

2) Link

3) Help

Types of Brand and Strategies

• Manufacturing brands

• Intermediary brands

• Generic brands

Manufacturing Brands

• Owned by the producer of the product

• Strategies used– Multi-product branding

• Company uses one name for all their products. (Nike hockey, running, golf)

– Multi-branding• Each product in a product line has a distinctive

name. P & G makes: Secret, Old Spice , Sure

– Co- branding• Two companies partners to produce one product.

Intermediary Brands

• Carries a name developed by the retailer or wholesaler. Sell products to stores with their own private labels.– Cabela & Gander Mountain

Developing a Brand Name

• Simple

• Offer a benefit

• Different & positive

• Reflect an Image

• Unregistered Name

Sponsorship

Lesson 4.2

Sponsorship• Sponsor- a person, organization , or

business that gives money or donates products in exchange for public recognition.

“This half-time performance is brought to you by…..”“AT&T® Player of the Game…..”“American Airlines® Arena”

Let’s Sell Some Wheaties• The Wheaties Brand Has A Long History

of Using An Endorsement Strategy to Influence the Demand for Its Cereal

www.wheaties.com/history/champions_list.aspx

http://www.wheaties.com/history/champions_list.aspx

Why do companies sponsor? Increase brand loyalty

Create awareness and visibility

Change, enhance or reinforce image

Drive retail traffic

Drive sales and profits

Showcase community responsibility

LESSON 8.3

Sponsorship & Endorsements

Copyright © 2011 by Sports Career Consulting, LLC

Brand Awareness- the ongoing effort of sponsors andadvertisers to keep their brand or product at the forefront of fans’ minds

Brand Awareness- the ongoing effort of sponsors andadvertisers to keep their brand or product at the forefront of fans’ minds

Display brand attributes

Recruit employees and entertain clients

Create merchandising opportunities

Build company awareness

Differentiate products

Associate with particular lifestyles

Why do companies sponsor?LESSON 8.3



Kodak• Their camera & film sold

exclusively at Olympics

• Name included in program

• Receive positive image & increase sales

• Kodak stores have displays featuring Olympics

• Offer a contest or sweepstakes

• Generate traffic

Coca-Cola is a company that has successfully branded their products on an international scale

LESSON 8.3



IEG estimated that Coke spent roughly $600 million on their sponsorship of the 2010 FIFA World

Cup in South Africa

Coca-Cola is a company that has successfully branded their products on an international scale

LESSON 8.3



As a result, Coke’s corporate logo is recognized by 94% of the world while the

Olympic rings are recognized by only 92%

Types of Sponsorship• Signage

• Entitlements

• Facility entitlements

• Product exclusivity

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Types of Sponsorships1. Signage-

signs, floorboards, scoreboards, rotating electronic screens

Premium sponsors

2. entitlements – one sponsor for the entire event NASCAR signed 10 yr contract with Nextel, NEC invitational, Sony Open, Nissan Open John Deere Classic

3. Facility Entitlements- Purchase the promotion rights for the entire stadium

Types of Sponsorship

4. Product Exclusivity- only your product can be old if you purchase the exclusivity– Only Coca Colas drinks can be sold at

Olympic games , only Visa is taken as a form of payment,

Types of SponsorshipSignage

• Is any kind of graphic created to display information to a particular audience

• Signs, floorboards, scoreboards, rotating electronic screens

Entitlements• Are the association of a

company’s name with the name of an event or facility in exchange for money

• PGA- The Buick® Invitational, The Outback Steakhouse® Pro-Am and The Wachovia® Championship, NEC invitational, Sony Open, Nissan Open John Deere Classic

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Facility Entitlements• Occur when a company purchases the

promotional rights to an entire stadium

• Reliant® Stadium in Houston, Heinz® Stadium in Pittsburgh and Lucas Oil® Stadium in Indianapolis

• Offers publicity when any event is held

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Raymond James Financial®, the stadium entitlement sponsor for the hosting venue of Super Bowl XLIII in Tampa Bay amassed an overall exposure value of $37.3 million from the media coverage leading upto and following the big game.

Raymond James Financial®, the stadium entitlement sponsor for the hosting venue of Super Bowl XLIII in Tampa Bay amassed an overall exposure value of $37.3 million from the media coverage leading upto and following the big game.

Product Exclusivity• Occurs when only one product in a

product category is approved for sponsorship

• Contract prevents other companies from advertising or selling their product.

• Coca-Cola® is the official drink of the Olympics

• Kodak® is the official camera of the Olympics

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Endorsements

4.4

• An endorsement is a statement of approval of a product, service, or idea by a celebrity to promote the company and the company’s products

• Someone everyone recognizes

• Someone with few risks and a positive image

• Someone who is believable

• Successful career

• Demographic match

• Similar qualities to the product

In 2008, Dallas Cowboy quarterback Tony Romo signed a five-year, $10 million endorsement deal with STARTER®, which is believed to be the largest footwear and apparel deal in NFL® history.

In 2008, Dallas Cowboy quarterback Tony Romo signed a five-year, $10 million endorsement deal with STARTER®, which is believed to be the largest footwear and apparel deal in NFL® history.

Factors ImpactingEndorsement Effectiveness

• Endorser:– Is a High Achiever– Has Believability/Credibility– Is Known– Is Likable/Popular/Admired– Is Recognizable– Provides Ease of Recall– Is Congruent with Target Market– Is Physically Attractive– (Provides Prospect for) Continuity

Example Endorsements• A few of the athletes Nike® has endorsed

include Tiger Woods, LeBron James and Serena Williams

• Hanes® is endorsed by Michael Jordan

• Canon® has an endorsement deal with Maria Sharapova

• Peyton Manning has an endorsement agreement with DirectTV®

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Guidelines to meet:• Reflect an honest opinion.• Endorser must have real experience• May not contain any deceptive or

misleading statements.• Endorser must use and continue to use

product• If product changes, company must inform

endorser

DisadvantageI use

Gatorade

McDonaldsNike

Rayovac

Sara Lee

MCI

Advantages & Disadvantages

• Consumers buy more when celebrities endorse it

• Believe celebrities over common person.

• Pay more attention to celebrities on TV/Print

• Very Expensive • Endorsing Multiple

product produces indifference

• Negative publicity of a fallen celebrity

Tiger Woods• But the private conduct - or misconduct -

of Tiger Woods has brought with it potentially devastating public consequences to the sport of golf he has come to dominate, consequences that could add up to hundreds of millions of dollars.

• Lost 50 million in endorsements

• Image Clause- contracts are released if your image is tainted due to law or athletic performance

Tiger Sponsors$130 Million 08’

Tiger Woods Official Sponsors

Consequences Tiger Woods commercials were pulled during is fall from grace revelations. For over 6 months his commercials were not shown even the Chevron World Challenge, which he hosted since 2001.

Benefits of Endorsements

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Sports Organizations

Companies

Reinforceimage

Build teamspirit

Profit

Build presencethroughmerchandise

Reach a newaudience

Publicity

Revenue

Brandawareness

Mutual Advantages

Risk of Sponsorship

• Ambush Marketing

• Sponsorship Clutter

• Guilt by Association

• Strike – You're Out

• A Losing Streak


1) Understand why a company would engage in sponsorship

Companies typically use sponsorship as a vehicle to:

Increase brand loyalty

Create awareness and visibility

Change or reinforce image


LESSON 8.3 REVIEW (ANSWERS)LESSON 8.3 REVIEW (ANSWERS)




Drive retail traffic

Drive sales

Showcase community responsibility

Display brand attributes

Entertain clients and hospitality

Recruit and retain employees

Create merchandising opportunitiesCopyright © 2011 by Sports Career Consulting, LLC





Build company awareness

Differentiate products

Associate with particular lifestyles

Business-to-Business marketing

Distinguish from the competition

Introduce a new product or service to a large audience

Enter new marketsCopyright © 2011 by Sports Career Consulting, LLC



2) Explain what criteria must be met for a sponsorship to be effective

Criteria consistent with effective sponsorships include:

Frequent impressions

Sponsorship leverage/activation

Company commitment

Commitment for the right reasons

Communication

Fan (consumer) connection



Using Sports to Market Products Lesson 4.1. Women of Soccer.

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