Sport sales and Sponsorships Study guide - exam 1

What is marketing myopia?

- A lack of foresight in marketing ventures - A focus on selling goods/services rather than identifying and satisfying the needs of consumers - A shortsighted focus on quick-return price hikes - Failure to adapt to industry, market, and consumer change

What might motivate a company to invest in a sponsorship (e.g., the common elements of sponsorship)?

1. Intellectual property: Use of a team's intellectual property (trademarks) 2.Category exclusivity: Not allowing a sponsor's competitors to promote their business within the sport organization's events or facilities 3.Media: The opportunity to advertise during team-controlled broadcasts 4.Tickets/hospitality: Access to events 5.Venue signage: Sponsor messaging displayed within the venue 6.Sponsor identification: Sport organizations acknowledges sponsor as official partner in communications with media and the public 7.Event marketing/special events: Sponsor has a presence at organization's special events 8.In-game promotions: Sponsor recognized as provider of fan-centric activities 9.Pass-through rights: Benefits from sport organization that sponsor gives to its business partners (e.g., tickets) 10.Direct marketing/use of property's database: Sponsor gains access to sport organization's member database to market to people in it

What tactics can be utilized to overcome stalls?

1. Social Proof: Provide an example of another client that was in the same situation, but who you were able to help. •2. Re-state the benefit: Re-state the benefit you used to open the call. •3. Emphasize the small time investment: Remind how little time you are seeking from the decision-maker.

ROI example

A company is interested in bringing three prospects to each game and buying four season tickets. The team has eight games per season. So, the company would need to buy 32 tickets (three prospects and one salesperson). Each ticket costs $100, so the total package would cost $3,200 ($32 * $100). The Company believes 25% of customers would convert into buyers after a game. So, 6 prospects would become purchasers. Prospects typically make three purchases, with the average purchase amount being $500. Thus, the revenue generated from prospects would be $9,000 (6 * 3 * $500). The Return on Investment (ROI) would be 2.81 to 1 ($9,000/$3,200).

What is a product feature?

A product feature is a specific piece of functionality that has a corresponding benefit or set of benefits for the user. Benefits are the value that users gain from using that functionality.

What is a cold call?

A technique whereby a salesperson contacts individuals who have not previously expressed an interest in the product sold.

What is a ticket sales representative?

A title given to inside sales employees.

What type of questions should a salesperson ask in a needs analysis? Why?

Ask open-ended questions. Use the Prospect's response to prompt the next question. Continue this process until enough information is acquired to feel confident you can pitch a beneficial product offering.

What is Benefit Selling? Why should salespeople use it?

Benefit Selling focuses on what a customer will get out of a product, rather than what a product is. - more incentive to buy if they know it will have a positive impact on them, and more incentive to buy again

What is Business-to-Consumer sales? What is the goal of a Business-to-Consumer sales call?

Business to consumer sales : Salesperson calls individuals who are probably interested in using the sport tickets for personal use. Goal for sales call: build rapport

What is Business-to-Business sales?

Business-to-Business Sales: Selling sport products to businesses for the primary purposes of entertaining clients and employees.

What is the objective for the first Business-to-Consumer call? How about the second call and beyond?

Call One: Conduct a needs analysis and set an appointment to speak in the future. Call Two and beyond: Assess the objective based on past interactions.

What is a commitment question? Why is it used? What examples can you think of?

Commitment Question: Used to test agreement and pace the discussion toward a decision. Used to overcome objections, set an agenda, summarize what the seller heard and close the sale. • •How does that sound? •Do you agree with that? •Will that work for you? •Does that answer your question? •Does this help? •...isn't it? •...doesn't it? •...shouldn't it? •...aren't they?

What is a comparison question? Why are they used? What examples can you think of?

Comparison Question: Use words like compare, contrast, differ, whether, and versus to yield more detailed information than the traditional open-ended question. •"Compare for me where you are this year versus last year in your sales goals." •"How does your sales approach differ from your competitors'?"

What is a confirmation question? Why are they used? What examples can you think of?

Confirmation Questions: Used to confirm the seller's understanding of something the customer just stated. Involves paraphrasing. Shows that the seller is listening and builds credibility and rapport. •I want to make sure I'm hearing you correctly. •If I understand you correctly. •Let me see if I have this right.

What is Consultative Selling? Why is this approach used in the sport industry (in other words, what are the benefits of it)? How does it work?

Consultative Selling: A customer-focused sales method where the salesperson asks questions in order to learn more about the customer before presenting a customized solution that will specifically address the needs or desires of the customer. (never sell a person something that they do not need)

What is Consumer Motivation?

Consumer motivation is an internal state that drives people to identify and buy products or services that fulfill conscious and unconscious needs or desires.

What is a Customer Relationship Management ("CRM") database? Why do teams utilize CRM databases (in other words, what is it used for)? What are some methods by which a team could obtain data from fans to put in the CRM database

Customer Relationship Management (CRM): Allows employees to merge all information collected from any touchpoint with a customer into a single, easily accessible database, providing a 360-degree picture of the fan or prospect. It is used to potentially market to those customers more specifically in the future. obtained: surveys, phone calls, emails, etc...

What is Customer-Focused selling? How does it work and what are the benefits?

Customer-Focused Selling: The salesperson talks about the product or service in terms of what the customer wants, not in terms of what they are selling. Benefits: More personalized to the customers needs and not what your are selling, two-way conversation, positive customer feedback

What is a Decision-Maker? Why do salespeople want to connect with a Decision-Maker on business-to-business calls?

Decision-Maker: The person who has the final authority to accept or reject a proposal and is held accountable for that decision. - because they have the authority to make a purchase

What is a Dominant Buying Motive? Why should a seller care about knowing what a customer's Dominant Buying Motive is?

Dominant Buying Motive: Buying motive that has the greatest influence on the customer's decision to buy. •During the Needs Analysis (Step 1 in Consumer Motivation), a salesperson must identify what a prospect's dominant buying motive(s) is/are. •The Dominant Buying Motive is used to deliver product knowledge and a production solution to the prospect. - they should care so that they know how to properly sell to them in a way that they have the best chance of purchasing

What is a double-barreled question? Why should they be avoided?

Double-Barreled Question: A question that poses two questions at once. Not good to ask because it needs to be more specific cause you never know what the answer to the question will be

What is an expansion question? Why are they used? What examples can you think of?

Expansion Question: Seek to acquire the same information as the open-ended questions identified above, but in a way that elicits more detailed information from the prospect. •Describe for me •Share with me •Explain •Walk me through •Tell me

What strategy should teams employ when deciding which games to put into a partial plan?

Focus on maximizing revenue through discounts, giveaways and opportunity for a fan to select the most popular games through exclusivity.

What is a Gatekeeper? How can building a relationship with a Gatekeeper help a salesperson reach a Decision-Maker?

Gatekeeper: A person who keeps the decision-maker's work life organized by answering incoming calls, keeping their schedule, setting meetings, and generally protecting the decision-maker from time wasters. - they are a step through to getting to the decision maker if you can not connect directly to them at first.

What is a global question? Why are they used? What examples can you think of?

Global Questions: Ask the customer to expand on a statement they just made in a way that invites them to continue. Allows for more information to be gathered and the conversation to continue. •very similar to an expansion question •Tell me more •How so? •Like what? •How does that work? •What happened next? •What else?

What are group tickets? What factors are utilized to qualify prospects?

Group Tickets: Focused on having a higher quantity of customers as a group attending a single game. Also consider, "Membership Clubs." •Qualify potential buyers based on their possible interest in consuming a benefit the team offers.

What are the high priority categories of prospects for sponsorship? Medium? Low?

High Priority Categories •Currently not sponsored •Drive the most revenue •Most lucrative categories typically are: TV providers, banks/financial services, airlines, wireless providers, health insurance, auto insurance, hospitals, soft drinks, auto brands and dealerships Medium Priority Categories •Open categories that are typically less lucrative •Lucrative categories that are currently sponsored, but the sponsor isn't exclusive •Categories that are sponsored, but the investment is lower than desired and the contract is expiring Low Priority Categories •Closed categories •Categories that rarely spend on sponsorship •Early stage companies that don't have enough marketing budget

What is a Hot Lead? Warm Lead? Cold Lead?

Hot Lead: Prospects who have contacted the sport organization proactively seeking to buy tickets. These leads are the best possibility for a sale and should be treated with high importance. Warm Lead: Prospects in which contact or connection has already been made with the prospect prior to the seller making the sales call . •Cold Leads: Prospects who the seller does not know much about.

What are humble disclaimers? Why are they used? What examples can you think of?

Humble Disclaimer: Injects humility into an assertion that precedes a statement or question with the purpose of getting prospects to openly share their opinions and lower their defenses. •If you don't mind, I'd like to as you about... •I don't want to be too intrusive, but I'd like to ask about... •I'm not sure the best way to ask, but can we discuss...

What is a hypothetical question? Why are they used? What examples can you think of?

Hypothetical Questions: Asked out of interest when the answer has no real effect on the situation. Helps the seller identify potential objections. •If you weren't so busy, how many games would you attend? •In a perfect world, how much would you spend? •How would you use tickets if you could?

What is an I/My Statement? What is the purpose of an I/My Statement? What makes for a good I/My Statement?

I/My Statements: Story that describes a personal experience or the experience of someone else. •Good I/My Statements evoke imagery and emotion. •Set the direction for the call

How can Sport Hospitality help a Business-to-Business customer attain its business goals? In other words, why might a company want to invest in Sport Hospitality?

If the company wants to host certain potential consumers and partners at games to entertain them and give them a higher chance at selling or partnering with the person they host at the game. They could also bring employees to the game

What inventory can teams sell sponsorships for? What are some strategies that can be adopted to determine types of inventory to sell sponsorships for?

Inventory/Assets: In terms of sponsorship sales, the attributes or elements a sport property owns and can sell to a firm. Examples of inventory or assets include: space within a facility, signage, tickets, hospitality, trademarked logos, media rights, in-game activities, experiential opportunities, category exclusivity.

Related to pricing, if a team cannot sell out its venue, should it sell more tickets at a lower price or fewer tickets at a higher price? Why?

It depends... the company has the decision to do both which both have negative consequences but in this case I believe selling tickets at a lower price would give potential consumers more incentive to come to the game. This also gives the opportunity for the organization to bring more people onto the consumer escalator

What are leads?

Leads: Names and contact information for potential buyers.

What is the difference between a motive and an incentive?

Motives: Internal. Incentives: Items of perceived value added to an offer that encourage a purchase decision. Used to alter a consumer's perception of price, product and place.

What is Needs Analysis? What is it used for by a salesperson?

Needs Analysis: Process of asking questions to identify customer needs, desires, motives and problems. used to figure out the need of a consumer in hopes to fill that void

Should a salesperson ever sell a customer something that they don't need or can't use? Why?

No, because they will not buy your product and you could create a bad rep for your organization. You waste your time calling them if they don't have a want for your product.

What is a selling point?

Noting the function of a product feature and explaining how it benefits a customer

What are the two sources of consumer needs? How can sport tickets address both of these needs?

Pain: Stems from problems that evoke emotions, like frustration, discontentment, confusion, boredom, embarrassment, anger, incompetence, stress, lack of knowledge, etc. •Desire: Stems from wanting to experience power, prestige, luxury, self-esteem, social status, instant gratification, significance, growth, etc. They can cure both the pain of boredom and bring out a desire for a fun experience

What are partial plans? What factors are utilized to determine whether a prospect is qualified to buy a partial plan?

Partial Plans (mini plan): Different types of ticket bundles below the full season of games, but larger than tickets to several games. (selling more than one game but less than all) •Qualify potential buyers based on their financial ability and desire. •Benefits: •1. Customization for consumers or ability for team to market less popular games •2. Utilization as a tool to drive consumers up the Sport Consumer Frequency Escalator. •Sales Strategies:

What are personal seat licenses ("PSLs")? If a customer buys a PSL, what does it give them the right to? What do they still need to buy?

Personal Seat Licenses (PSLs): A purchase that provides the PSL holder with the right to buy season tickets in a particular seat within a stadium or arena. (selling access and exclusivity) they still need to purchase the season tickets.

What is premium seating? What level(s) of consumer on the Sport Consumer Escalator would we target premium seating to?

Premium Seating: Seating areas that carry amenities beyond most seats in the facility. middle to top of the escalator target

Where would a season ticket holder or premium sales purchaser fall on the Sport Consumer Escalator? Why?

Premium customers are premier customers who are at the top of the Sport Consumer Escalator since they are already familiar with the brand and have good rep with it. A focus of a premium sales staff is to not only attract, but retain customers

What are premium sales? What types of inventory fall into "premium sales"?

Premium sales: the focus of selling a franchise's premium inventory. Club seats Luxury suites Unique locations in venue

What is Product-Focused selling? How does it work and what are the benefits?

Product-Focused Selling: The salesperson exclusively focuses on the benefits, features, quality and reputation of the product when trying to convince a customer to buy. benefits: One-sided, selling your product, no building relationship

What is a Prospect?

Prospect: Someone who has a need for or interest in the product, has the financial ability to purchase the product, and has the authority to buy the product.

What is prospecting?

Prospecting: The continual process of identifying and contacting businesses and individuals in order to create a pool of qualified buyers.

What is ROI? How is ROI calculated for the purchase of Sport Hospitality? Be able to calculate ROI.

ROI: Return on Interest. ROI should also be calculated for each conversion rate throughout the sales process.

What are redirect questions? Why are they used? What examples can you think of?

Redirect Questions: Channel the customer's thinking back to the agenda and the purpose of the conversation or meeting. Allow the conversation to get back to its purpose or agenda. •Earlier you mentioned •To go back to a point earlier •With that in mind •Based on what you just said

What is the SPIN questioning system? What does "SPIN" stand for? Why do we use this particular order of questions, working from the most general to the most specific?

SPIN Questioning System: Sequences four types of questions designed to uncover a prospect's current situation and inherent problems, enhance the buyer's understanding of the consequences and implications of those problems, and lead to the proposed solution. Situation Questions: Gather facts and background information about the prospect's existing situation. These questions build a profile of the customer. Problem Questions: Bring a customer's implied needs, problems and motives to the surface, or make them explicit. These questions help the Seller hone in on a need they believe they've identified in the Prospect. Implication Questions: Help the customer think about the potential consequences or impact of the problem and understand the urgency of satisfying the need or resolving the problem. Goal: Get the customer to see the problem they're facing, so in the next step, you can show them how you can help fix it. Need-Payoff Questions: Focuses the customer's attention on the benefit derived from solving the problem or satisfying a need. This process gets the customer to tell the seller about the benefits of a product. This allows the customer to be more receptive when the seller positions the product as a way to receive that benefit.

What strategies can a sales person employ to generate more sales of group tickets?

Sales Strategies: •1. Discounts •2. Giveaways •3. Unique opportunities to create memories

What is a warm call?

Sales calls made to prospects who have had some sort of prior contact with the organization.

What is outbound sales?

Sales personnel who make outbound calls to prospects.

What is inside sales?

Sales personnel who utilize telephone and/or online means to see, rather than traveling outside of the organization's facility to sell face-to-face.

What are season tickets? What factors are utilized to determine whether a prospect is qualified to buy season tickets?

Season Tickets: Provide access to every home game for an organization. •Qualify potential buyers based on their financial ability and desire. •Target: Business-to-Business (B2B) sales: Selling to businesses who can use the tickets to entertain customers. •Target: Business-to Consumer (B2C) sales: Selling to consumers with the financial ability and desire to attend all games or have a strategy on how to sell or utilize tickets to unused games. Prospecting - have to be strategic and research what demographic is best suited for what ticket package

What are single game tickets? Who on the Sport Consumer Escalator are single game tickets typically targeted to?

Single Game Tickets: Individual tickets to games. Escalator—consumers don't need high financial ability or interest in high frequency of engagement with the team.

How do league rules and local/national laws impact what can or cannot be sponsored?

Some leagues and laws may ban certain companies that sell drugs or alcohol because it is illegal within the organization.

What is sponsorship?

Sponsorships: Investments by corporations in a sport property to help support the firm's organization, marketing, and promotional objectives or strategies.

What is Sport Hospitality?

Sport Hospitality: Food, beverage, and entertainment assets that accompany premium tickets in suites and club seating areas. •Attract and retain key prospects and clients.

What is the Sport Product? What makes the Sport Product unique compared to other consumer products that are sold (e.g., a bottle of water, food, toothpaste, etc.)? How could these unique aspects make the Sport Product (a) easier and (b) more difficult to sell than a product like water, food or toothpaste?

Sports Product: Any bundle or combination of qualities, processes and capabilities (goods, services or ideas) that a buyer expects will deliver want satisfaction. Typical consumer goods: tangible, predictable, consistent The sport product: intangible, unpredictable, inconsistent Necessitates a focus on selling memories and experiences (A): selling an experience and emotion, something fun (B): Not a necessities that is needed like water or food

Why should questions be phrased in a positive manner to elicit favorable answers? How do you accomplish this?

Structure open-ended questions in a way that reduces the possibility that the Prospect will respond with negative information. •To do this, utilize sentiment-creating language: •"How was your experience last season?" versus "Tell me about your favorite memory last year." •Consider WHY you are asking the question—what information are you trying to gather that will help you propose a BENEFIT solution to the Prospect? •

What is tension? What causes tension?

Tension: The unpleasant feeling when there is a need that remains unfulfilled. The "needs gap" creates a sense of tension in a consumer.

Should a salesperson ask most of the questions in a needs analysis? Why or why not?

The Seller should seek to speak only 25% of the conversation. Because they need to figure out as much information as they can from the consumer by listening to them answer their questions

What is the Drive State? How is it aroused?

The drive state is aroused from tension •Drive State: Exists when an individual is aroused to reduce or eliminate the unpleasant tension, thus restoring balance. •The person feels a push to do something to alleviate the tension.

What is the Sport Consumer Escalator? What are the steps on the Escalator? What type of ticket package would I sell to each type of consumer on the three different steps of the escalator?

The escalator concept involves increasing the level of a fan's sport consumption. Nonconsumer to heavy user. The theory is that it is more profitable to focus on current consumers rather than garnering new ones steps: attract --> grow --> retain

What is season ticket sales and retention?

The focus of selling season tickets to customers - Season ticket holders are premier customers who are at the top of the sport consumer escalator. Retention: a focus of a season ticket sales staff is to retain season ticket holders

What is group sales?

The focus of selling tickets to groups of customers note: Group tickets purchasers usually receive a discount and an added benefit

What is the difference between the primary and secondary ticket market? Why do teams want customers to buy tickets with them, as opposed to on the secondary market?

The primary ticket market means the tickets are being sold for the very first time and at face value which is set by the event provider. The secondary ticket market includes tickets that were purchased from a primary ticket marketplace and then re-sold, often for a profit. Teams want people to buy tickets with them so that they can have data on that person and potentially market toward them in the future.

How can teams avoid myopia when it comes to their sales strategies?

They can always be looking for ways to improve sales, look into the future to see trends, and always be prepared just in case something does not go the right way.

What is a Valid Business reason? Why do we need to have a Valid Business Reason before setting a meeting with a decision-maker?

Valid Business Reason: A statement which justifies asking for the appointment with the decision-maker. - We need this in order for the decision maker to have any incentive to buy from us at all... needs to show them that they can benefit from purchasing this item.

How is value calculated? How does value factor into whether a consumer buys a product?

Value = Perceived Benefits/ price To motivate a consumer to purchase a product, perceived benefits must be greater than price.

What is variable pricing? What is dynamic pricing? What is premium pricing?

Variable Pricing: Prices vary based on anticipated demand.(prices are set before the season begins and once they are set they remain the same until they are sold) Dynamic Pricing: When organizations have the ability to change prices on a frequent basis as demand changes. (the price is constantly changing in response to actual consumer demand) Premium Pricing: Involves charging high prices, those above other competitors, as it is consistent with a brand image of luxury and high quality.

What is the Want Pathway? What makes someone choose a Want Pathway?

Want Pathway: The pathway toward a specific consumption decision chosen by a person to reduce tension. •A pull draws an individual toward a product, service or experience that can offer a way to restore balance with a positive outcome.

What type(s) of questions would you ask to conduct a needs analysis of a college student you are trying to sell Lakers tickets to? Why would you ask these questions?

What do you like to do on the weekend, do you like sports, what is your favorite thing to watch on TV, Are you social butterfly? You need to ask these questions to see if you can sell them the tickets to fill a potential need they may have

Why is listening a critical aspect of the sales process? What could be gained from listening?

collect data on person, may pick up on certain interest of theirs, build relationship, help to ask more question based off their answer.

What strategies can be employed to retain season ticket holders?

discounts, special benefits

How has myopia plagued the sport industry from a sales perspective?

people will get Laid off in the sales job when businesses think their sales are going good because they don't think they need to continue to grow sales... they assume it will stay the same or it is easy.

How does price impact the image of a product (e.g., luxury products)? What consideration should teams give, then, when it comes to charging a high price for their tickets and apparel?

the higher the price, the more luxury and good quality the item is perceived to be. Teams should consider the standard of the products they sell and should consider what the effect would be to their consumer if they discounted them.

What is a value proposition?

the set of benefits or values it promises to deliver to consumers to satisfy their needs

Why do companies invest in sponsorship?

•Sponsorships are marketing tools for companies. •Companies use sponsorships to reach their key audiences. •Sponsors don't really care about the sport organization—they care about whether the sport organization can help them achieve their business goals.