Almost every group of friends has at least one of those “Man-U” or “Liverpool” (Chelsea peeps don’t get offended, eh!) fan who seems to be on an oath to eat, drink and sleep the said clubs. On any random given time, these fans can be spotted flaunting the merchandise of their respective favorite clubs. How and why? Welcome to the world of Sports marketing.
A subdivision of marketing focusing on both, promotion of sports events & teams along with the promotion of other products & services. Generally, either a product or a brand name is promoted for the same. The basic goal is to expand the bandwidth of Marketing by building strategies to provide the clients with a platform for sports along with an opportunity for promotions of products & services. Sports Marketing is an element of sports promotion and includes a wide variety of processes involved in the sports industry like broadcasting, advertising, social digital media platforms, sales of tickets, and community relations.
Marketing Mix of Sports Marketing (4+4 Ps)
Along with the Traditional 4Ps of any general form of marketing, Sports Marketing encompasses 4 additional Ps. The reason for the same being that Sports is considered to be a service.
The additional 4 P’s being,
Divisions of Sports Marketing
- The first is the advertising of sport and sports associations.
- The second comprises of the use of sporting events, sports teams and individual athletes to promote various products.
- The third category is the promotion of sport to the public in order to increase participation.
Pros of Sports Marketing
In common terms, sports marketing refers to the marketing of sports leagues and teams. With the changing Global Scenarios, Sports Marketing is responsible for creating fan loyalty for organizations and that should be used effectively.
- Fan Attendance : Fans are the people who blow life into sports events. a Major League Baseball study found specific giveaway promotions had the strongest effect on fan attendance. Bobblehead dolls, for example, often are used as giveaways because of their ability to draw fans. Without them a stadium would look like a barren land in Arizona or The Thar (keeping in mind that we have Indian folks reading it :P).
- Season Ticket Sales: Selling season tickets is the most integral foundation of any professional sports team. Studies of both Major League Baseball and National Basketball Association teams found that roughly one-third of ticket sales take place at stadium gates, compared with about 25 percent at more commercially successful National Football League stadiums. Loyal season ticket buyers create more interest from media coverage and hence need to be focused on.
- Merchandise Sales: Sports organizations derive revenue from the sale of team merchandise. Programs, shirts, caps, jerseys, and posters are just a few common products sold by sports franchises. The New York Yankees are one of the most popular sports brands in the world. As evidence, the 2007 Street & Smith’s “Sports Business Daily” report on league license merchandise sales showed the Yankees with a remarkable 25.4 percent of market share. The Boston Red Sox were second that season with an 8.2 percent share
- New Product Launch or New Market Penetration: When launching a new product, A brand’s prime need is to drive excitement and awareness through multiple marketing channels to get as much attention and sales as possible. And here Sports Marketing comes to the rescue in providing a huge platform both in physical and digital form.
Cons of Sports Marketing
- Lack Of Technical Knowhow: Apart from major teams, most of these teams still are unaware of how to market themselves properly so efforts on those ground need to be made.
- Heavy Cost Incurred: Lack of knowledge leads to errors which in turn are the reason for incurring of heavy cost.
Taking all the above into consideration, it can be well cited that Sports Marketing is a spreading its horizon very fast with Top Players signing Brand endorsement worth millions, that day is not far away from where we see Sports marketing becoming one of the most lucrative platforms for advertisements and promotions.