Marketing agencies

Challenges Facing Agencies

Industry is growing in # of firms and job opportunities, but agencies still face challenges: •Uncertainty in client base: Or a new CEO doesn't see the value in sports spending? what if an athlete gets in trouble? http://people.com/sports/speedo-usa-and-ralph-lauren-drop-ryan-lochte/ •In-house vs. outsourcing: some programs outsource (IMG College clients) but more pro teams and colleges are bringing sponsorship, licensing and broadcasting in-house to gain more control, generate more $, and save $ at the same time. •Labor unrest: what do you think happens when there is a labor stoppage/lockouts and the athletes aren't playing? Possible new endorsement opportunities?

Economic challenges

•Bank and auto industry downturn 2007-2009, both are usually large-scale spenders on sport sponsorship, so downturn had a ripple effect across the sport landscape •General weakened economy from 2007-2015 resulted in overall more budget scrutiny and cost-cutting. •Need to change with the times. Products such as sponsorships and premium seating (suites) are now often sold in incremental offerings so agencies need to adjust

360 Marketing Strategy

•Corporate sport sponsorship continues to grow in popularity and so have the rights fees associated with traditional sponsorships •Shift from using sponsorships as one tool in the marketing toolbox to being a central theme that benefits all elements of a marketing mix.

Evolution of Agencies

•Evolved significantly in short amount of time •1900s pro athletes began to be compensated for endorsing products. •First baseball agent: Christy Walsh, represented Babe Ruth of NY Yankees •First football agent: Charles C. Pyle, represented Red Grange of Chicago Bears •Represented their interests in PR, contract negotiations, endorsements

Full-Service Agencies

•Full range of services -Strategic planning, sponsorship solicitation -Event management, contract negotiation -Marketing activation, research and evaluation •Tend to have multiple divisions

Full-Service Agency: IMG

•History •Client management •Event and corporate marketing •Event management •Media

Emergence of IMG

•Individual athlete-agent pairings continued until 1960s Mark McCormack founded IMG based on a handshake deal with Arnold Palmer •International Management Group was the first agency dedicated to representing pro athletes Nine network areas: college, events, fashion, global brand partnerships, IMG Academy, licensing, media, original content, representation and management

General Agencies

•Integrated approach to development of client programs •Business components of 16W Marketing -Athlete, coach, and broadcaster representation -Corporate consulting and property marketing -Hospitality and event management

In-House Groups

•Internal sponsorship departments of corporate brands (Mastercard Sponsorships) that perform sport functions on behalf of the parent company. •https://www.mastercard. •These departments have only one client: themselves •Work with other company units such as advertising, PR, and community affairs departments •AB InBev has in-house marketing and sponsorship departments that take care of client relationships such as when NFL and AB InBev agreed to extend Bud Light's sponsorship of the league through the 2022 Super Bowl, a deal valued at $1.4 billion.

Functions of Agencies

•Some agencies perform only one function; some agencies perform all functions, which can include: 1.Strategic planning- $53.3 billion industry 2.Sponsorship and licensing solicitation 3.Event creation, management, marketing 4.Contract negotiation 5.Marketing activation 6.Content development- Programming 7.Financial or investment planning 8.Research and evaluation

Intro

•Sport management and marketing agency: a business that acts on behalf of a sport entity (client) involved in the sport industry •Client: sport-related person, brand, property, media company, or concept represented by an agency. •Examples of clients: a person, a corporate brand, a media company, or a property (such as an event, team, university or venue)

Types of Sport Management and Marketing Agencies

•Thousands of agencies and in-house groups •Vary in size, budget, type of clientele, and scope of services •Types include: 1.Full service 2.General 3.Specialty