Sport Marketing Ch. 9

Sponsorships activities are composed of

A variety of marketing and promotional component

This pricing concept involves pricing tickets based on preferred days for viewing opponents, part of the season, and location of the seat. Select one or more: a. variable pricing b. price smoothing c. lead pricing d. user segmenting

A. Variable Pricing

Where is the entry-level sales position for most professional sport teams? Select one: a. telemarketing b. premium sales c. group sales d. corporate sales Feedback

A. telemarketing

The marketing activities that a company conducts to promote its sponsorship.

Activation

Elements of promotion and communication mix

Advertising Personal selling Publicity Positioning Sales promotion

Potentially inappropriate sponsors for sport organizations?

Commercial gambling providers Alcohol manufacturers Junk food manufacturers

T/F: Activation costs are typically included within most sponsorship contracts between a brand and a sport team or event.

False

T/F: In the field of sport marketing, the terms price and cost are interchangeable.

False

Common sponsor objectives

Increase public awareness of the company, the product, or both Alter or reinforce public perception of the company Identify the company with particular market segments Involve the company in the community Build goodwill among decision makers Generate media benefits Achieve sales objectives Showcase unique product features, technologies, or advantages Create an advantage over competitors through association or exclusivity Gain unique opportunities in terms of hospitality and entertainment Secure entitlement or naming rights

Sponsorship and Social Media

Keep commercialization to a minimum Cap the frequency of sponsor messaging Offer consumer engagement

Selling the sponsorship

Make comprehensive list of inventory. Establish list price for items in inventory. Conduct research of sponsorships sold in the market and identify prospects that would be likely to have an interest. Establish packaging discount policies. Determine or recognize real costs of items. Establish sales strategy. Initiate sales process. Work from larger sponsorship proposals (major corporations) to smaller proposals and corporations. Pit competitors to create bidding environment.

Ethical Issues

Questionable athlete behavior and its effect on endorsements

Sponsorship Sales

Research category and prospect within that category. Schedule meeting with sponsorship decision maker. Hold preliminary meeting; listen more than talk. Arrange follow-up meeting. Create a marketing partnership proposal. Present proposal in draft form to allow negotiation. Negotiate final deal. Introduce client to activation team.

The rights derived from the sponsor relationship may include the following:

Retail opportunities Purchase of media time Entitlement Contests or sweepstakes Endorsements Logo placement on uniforms or apparel Hospitality Website access

Reasons for growth in sport sponsorship

Shift in marketing spends by tobacco and alcohol manufacturers Decreased effectiveness of advertising in print and television Lower cost and increased exposure compared with traditional advertising Commercial success of 1984 Los Angeles Olympic Games Increasing number of television channels devoted to sport programming Technological developments leading to the portability of sport through mobile devices Emergence of new sport offerings and the importing of programming from other countries Popularity of sport-themed video gaming and fantasy sports Globalization of sport

T/F: Cost relates not only to overall cost but also to such aspects as payment options and value received for the purchase price.

True

T/F: Money spent on activation is over and above the rights fees paid to the sponsored property.

True

T/F:One drawback of lowering a price is that it cheapens the value of the product.

True

A company thinks that its image in the market is one of poor quality. It enters into a sponsorship agreement with a team that has won six consecutive league championships. What benefit is it seeking? Select one: a. to alter or reinforce public perception of the company b. to build goodwill among decision makers c. to identify the company with the particular market segments d. to involve the company in the community

a. to alter or reinforce public perception of the company

Which of the following is not a reason for the explosive growth of sport sponsorships over the last three decades? Select one: a. commercial success of the 1984 Los Angeles Olympic Games b. shift in marketing spends by tobacco and alcohol manufacturers c. lower cost and increased exposure compared with traditional advertising d. continued decrease in the cost of sport sponsorships

d. continued decrease in the cost of sport sponsorships

Activation

is commonly referred to as leveraging or bringing a brand to life by creating a variety of means to interact with a target market.

Sponsorships

refer to the acquisition of rights to affiliate or directly associate with a product, person, organization, team, league, or event for the purpose of deriving benefits related to that affiliation or association

Sponsorships activities are integrated within sport event or organizations

yes