Part of the re-positioning effort in this case would require sending a message to the target market that the club is affordable by public standards
Slogan might be “Enjoy the benefits of a private club at public course rates!”
The average age of a Major League Baseball fan is 44 years old, but the 18-24 age demographic is the target audience most sponsors and advertisers. To help reposition the brand as a product that would attract a younger demographic, MLB has focused on developing their “Fan Cave” program through integration of new, hip technology, a trendy location and relationships with unlikely partners like MTV2.
According to the Sports Business Journal, as part of their new deal with CBS, the Pro Bull Riders Association will now be grouped among other major properties online, like the NFL and the NCAA men’s basketball tournament to re-position it as a more legitimate sports property (in the past, PBR was grouped under the “CBS Sports Spectacular” banner alongside some niche sports)
Xbox One re-positioning its console as a legitimate fitness training device, not just a device for video game consumers
Lesson 4.6
Understanding the Sports & Entertainment Consumer
Customer vs. Consumer
The customer is the individual who buys the product or service
The consumer is the individual who uses the product or service
Let’s say Frito Lay invests in four club seats at Jacobs Field in Cleveland for their customer service and sales staff to entertain clients and prospective clients at Major League Baseball games. Frito Lay is the customer while their staff members and their clients are the consumers.
The customer can also be the consumer
John Smith buys four tickets to take his family to see the Yankees play the Red Sox. Because he bought the tickets, he is considered a customer. Because he used the tickets with his family, he is also the consumer.
Who is the sports and entertainment business consumer?
Identify and define marketing opportunities and potential challenges
Generate, refine, evaluate and monitor marketing activities
Analyze and understand the company, its industry and its competition
Steps in the research process
Identify the problem, concern or additional desired information to be gathered
Select and design research
Primary research is the original research conducted for a specific marketing situation
Surveys
Direct mail
Telephone
Interviews
Focus groups
Despite an already solid attendance track record in which the team has led the league in attendance in all 11 years of its existence (drawing nearly 5 million fans to date), Minor League Baseball’s Lakewood BlueClaws decided to cap attendance at 8,000 fans per game, based on feedback from fans during focus groups that large crowds were negatively impacting the game-day experience 48
Conduct secondary research
Secondary research is published data that has been collected for some other purpose (collect data)
Census reports
Demographic analyses
Trade associations
State agencies
Commercial research firms
Collecting data
A census is a method used for obtaining statistical information that counts every member of a population
The latest U.S. Census results showed an increase in the nation’s Hispanic population of 43 percent since 2000, (four times the nation’s overall 9.7 percent growth rate), as such the sports and entertainment industry has seen a boom in the number of marketing initiatives targeting the Hispanic audience49
Also according to census data, more than 10 percent of the overall population in the Phoenix area is Hispanic age 18-34, one of the largest such ratios in the country. Based on this information, Major League Baseball’s Arizona Diamondbacks adjusted how they market to those prospective ticket buyers, after an offseason study indicated the team’s Hispanic fans’ preferences in terms of ticket sections or package options were significantly different than the general market.50
A sample is a method for accumulating statistical information that is only obtained from a subset of a population
Typically involves large numbers of respondents, typically 100 or more, and yields results that are representative of the total population
Quantitative research data 51
Generally gathered in the form of focus groups (groups of six to ten respondents who carry on a group discussion which is led by a trained moderator)
Another common form of qualitative research is in-depth one-on-one or two-on-one interviews
Communicate results of research
Examples of market research applications
Consider the following figures from a fan avidity report released in 2013 by Scarborough Sports Marketing (a research firm) 52
Based on the study results, U.S. consumers have typically shown unwavering support for the NFL, MLB, NBA, NHL, College Football and Basketball, NASCAR and the Olympics (53 percent of American adults are “Avid Fans” at least one of these sports). However, after these traditionally supported fan favorites, the list includes sports like Figure Skating, Gymnastics, Men’s Golf, High School Sports and Pro Boxing.
Why does this matter?
According to Scarborough: “American sports fans have been opening their minds and wallets to a host of diverse sports. Avid Fans of these sports are often characterized by distinct audience demographics. For instance, 73% of Avid Gymnastics Fans are female and 81% of Avid Figure Skating Fans are female. This is a unique demographic makeup since Avid Fans of sports like the Olympics, Women’s Tennis and the WNBA – classically “female friendly” sports – are only about 50% female. This notable demographic base helps explain findings such as: Gymnastics Fans are 53% more likely than all American adults to schedule a spa day, 30% more likely to visit a jewelry store and 33% more likely to visit a bridal store. Similarly, Figure Skating Fans are 28% more likely to visit a florist and 27% more likely to visit a dry cleaner.” 52
Another demographically interesting sport is Pro Boxing. Though European Soccer, Major League Soccer and Mexican Soccer are all leagues with large Hispanic fan bases, Pro Boxing is the non-soccer sports league with the highest percentage of Hispanics among its Avid Fans – 35%. Avid Pro Boxing Fans are also 58% more likely than all American adults to use their smartphones to: listen to or download music, 67% more likely to check sports scores and updates, and a staggering 110% more likely to watch free TV programs. 52
Click here to download the entire press release from Scarborough Sports Marketing 54
Additional market research applications explore many additional topics in sports and entertainment
Sport participation
Violence in sports
Advertising
Media outlets
Viewer and listener ratings
Financing
Effectiveness of marketing efforts
Lesson 4.8
Advertising * TEACHER’S NOTE * Be sure to reference the “ad samples” PPT provided on the CD-ROM containing your membership resources for excellent discussion starter material. The advertising samples presentation can be found in the lesson 4.8 folder on your disc. ALSO, the Super Bowl provides an excellent means for helping students gain a fundamental understanding of advertising. Check out USA Today’s Ad Meter by clicking here to view all the Super Bowl commercials from 2014.
Advertising
Advertising is any paid, non-personal form of communication by an identified company promoting goods and services
Advertising is presented in many different formats
TV commercials and infomercials
Print advertisements
Direct mail
Internet (banner advertising, “pop up” ads, social media ads)
Social media
The 2014 NCAA Men’s Basketball Tournament (“March Madness”) generated over $1 billion in advertising revenue (click here to see a breakdown from Kantar Media)
Last year, movie studios spent $3.06 billion advertising films in the U.S. alone (not counting what they spent promoting in other global markets) 55
What role can advertising play in helping marketers achieve their goals? 56
Effective communication
Create awareness
Create or change image
Associate a brand with feelings and emotion
Precipitate behavior
Establish and maintain positive public perceptions
Assist in the increase in sales
Types of advertising 57
Print media
Any written form of communication used to inform, persuade, or remind consumers about products or services offered
Outdoor advertising
Traditionally includes any outdoor signs and billboards
Gillette unveiled a creative twist on traditional billboard advertising with their "Everyday Masterpiece" campaign in New York City's SoHo neighborhood that featured a Derek Jeter billboard showing the various stages of men's grooming in which the All-Star shortstop's face was repainted on a daily basis to reflect a stubble look, shave prep, and a clean shaven appearance (a cycle that carried was repeated for one month) 58
Mass transit advertising
Uses public transportation, such as buses, bus stands, taxicabs, and subways to post advertising messages
The upstart Hillsboro Hops, a minor league team in the Portland, OR area, wanted to encourage fans to utilize mass transit to come to games. To do so, they chose to brand the local light rail train with the team’s logo to help generate more awareness.
Adidas and the Portland Timbers wrapped several light rail trains in branded content to promote the 2014 MLS All-Star Game 59
The Timbers also advertise INSIDE the train to encourage riders to use mass transit for travel to the stadium
Broadcast media
Any visual and/or audible form of communication used to inform, persuade, or remind consumers about goods or services offered
Radio advertising
Advertisers match their target market to a radio station that segments a particular market
Has the ability to reach a wide audience
Television advertising
Includes commercials and infomercials
The fitness craze known as P90X relied on a carefully crafted TV infomercial strategy to build a $400 million-a-year (and growing) empire
Because broadcast companies now spend so much in rights fees, they are forces to charge much more for television advertising during those broadcasts
Honda assistant VP-advertising Tom Peyton, whose company spends more than $600 million on U.S. television advertising annually and sponsors the Honda Classic golf tournament, the Rose Bowl's Rose Parade, and the NHL's Anaheim Ducks, recently told Ad Age: "There has to be a point where the price of sports properties on TV, the price of tickets for consumers to games, is truly affecting the amount of sports we can engage in — and the type of sports we engage in.” 60
TV advertising is traditionally the most expensive form of broadcast media
Online/digital media
Advertising through various digital media platforms
Banner ads, pop-ups etc.
Digital broadcasts
The $60 million in digital advertising sales earned by NBC through its online coverage of the London Games was three times what the network earned for the 2008 Games in Beijing (sales for the 2014 Winter Games in Sochi were slightly down from the 2012 Sumer Games in London to $50 million) 61
Social media channels (Facebook, Twitter, etc.)
Mobile
Ad revenue for Sports Illustrated’s Swimsuit Issue on tablets (iPad etc.) increased by 42 percent in 2012 62
Specialty media
Known more commonly as promotional products
Includes “everyday” items displaying a company name or logo
Calendars
Pens
Magnets
Coffee mugs
Additional forms of media
Marketers often use many other creative ways of communicating advertising messages to consumers
Blimps
Goodyear, Outback, Met One (“Snoopy One”)
Supermarket carts and grocery bags
Select grocery stores in Oregon offer “eco-friendly” grocery bags featuring the Portland Trail Blazers, University of Oregon Ducks and Oregon State University Beavers logos
Hot air balloons
Airports
In addition to the light rail advertisements, Adidas and the Portland Timbers prominently featured a number of advertisements through the Portland airport to celebrate the 2014 MLS All-Star game
In-theater advertisements
Airplanes trailing banner messages over beaches or outdoor events (or branded airplanes)
Alaska Airlines took aerial advertising a step further when they introduced the Major League Soccer Portland "Timbers Jet", a Boeing 737 featuring a paint theme featuring the Portland Timbers' name and logo in the team's trademark colors (to celebrate the new airplane and their relationship with the team, Alaska Airlines grants early boarding to Portland International Airport passengers wearing an official Timbers jersey) 63
In 2012, Virgin America unveiled a San Francisco Giants-themed plane, complete with the Giants logo and with a black beard and mustache painted under the craft's nose in an usual tribute to popular pitcher, Brian Wilson
In 2014, Boeing rolled out a Seattle Seahawks branded airplane, paying homage to the team’s famed “12th Man” shout out to fans. In the plane’s first flight, the aircraft carved the number “12″ in the sky over downtown Seattle
Alternative transportation
In addition to advertising via mass transit, Fox took to their advertising to the streets during the popular Comic Con festival in 2012 by positioning popular animated characters from “Family Guy”, “The Simpsons”, “Bob’s Burgers” and “The Cleveland Show” and positioning them in San Diego pedal cabs 64
LSU Athletics took a unique advertising as part of a basketball campaign when they teamed with adverCar (a company that pays individuals to affix advertising messages to their personal vehicles), essentially paying fans to drive their message into local neighborhoods, shopping centers and commuter routes 65
Up-front marketing
Marketers and media agencies may choose to buy ads in the spring selling period known as the "upfront", which is when networks sell much of the ad time for fall. Buying early sometimes affords marketers more creative flexibility, allowing them to ask for unique ways to promote their brands.
Upfront provides a measuring stick for networks to create a more accurate sales forecast and they typically sell 75% to 80% of the ad inventory that accompanies their new season
The upfront commitments for the 2012-13 television season generated nearly $9.1 billion in commitments for advertising sales to five major networks, including $2.6 billion for CBS, $2.4 billion for ABC, $1.9 billion for Fox and $1.8 billion for NBC 66
In another nod to the importance of ratings, advertisers were reportedly most interested in buying time in NBC's highest-rated program, "Sunday Night Football” 66
CBS also reportedly sold more than 50% of its ad inventory for its 2013 broadcast of Super Bowl XLVII in the upfront period 67
Thanks to in part to two major sporting events in 2014 — the Sochi Winter Olympics and the FIFA World Cup that generated more than $1.5 billion in advertising dollars, fewer dollars were available in the upfront market for the 2014-15 season. As a result, upfront spending dropped for the first time since the recession-stifled 2009-10 season, representing a spending decline of nearly $500 million.
Click here to read Ad Age’s coverage of the 2014-15 upfront season
Click here for a graphic illustrating the growth (and 2014-15 decline) in upfront spending over the past seven years
However, Upfront commitments should not be confused with actual advertising revenue because, while advertisers make an initial promise before the season starts, a good portion of any marketer's ad spend can and will change as shows are cancelled or rearranged on a schedule or if ratings are not meeting pre-determined levels of expectation 68
Advertising (Ad) and Public Relations (PR) agencies
An ad agency is an organization that decides on and implements an advertising and marketing strategy for a customer while a PR agency is responsible for determining an effective public relations strategy for each respective client 69
Nike contracts the Wieden + Kennedy ad agency to manage and oversee some of their advertising campaigns
Wieden + Kennedy won an award at the 2012 Cannes Lions festival for its advertising spot featuring Carmelo Anthony, created for the Jordan Brand
In 2013, the agency celebrated the 25th anniversary of its famous slogan developed for Nike, “Just Do It”
Wieden + Kennedy is also responsible for the wildly popular “It’s Not Crazy, It’s Sports” ad campaign for ESPN, addressing the culture of fandom in the sports industry
Click here to see a YouTube playlist of the W+K “It’s Not Crazy, It’s Sports” commercials on ESPN’s channel
Click here to see some of the spots W+K created for ESPN, including the 2014 campaign “Who’s In?” introducing the new college football playoff format
Under mounting pressure and facing a potential lawsuit, the Washington Redskins enlisted the help of a PR professional to help make a decision as to whether the franchise should change the team nickname 70
Questions organizations address when selecting an agency 71
Does the agency have a solid, comprehensive marketing plan in place?
Does the agency have comprehensive marketing skills?
Can the agency effectively determine the target market and find a means to reach them efficiently?
Does the agency have a track record of success?
Has the agency worked with others in your industry?
Additional considerations for organizations opting to work with an agency 72
Comfort level with the representative that will be handling the account
Making sure all written copy is customer centered
Selection of an agency that views itself as a partner of the organization
Agency extension example
Creative use of in house advertising capability
The Red Sox, as a way to generate additional revenue, leveraged relationships in the industry and throughout the community and created a spin-off agency, the Fenway Sports Group
FSG was so successful that they were profitable in their first year and their client base included NASCAR, Boston College, and even the rival New York Yankees73
* ACTIVITY IDEA * Give students a sports or entertainment product and ask them to build a comprehensive advertising campaign. The campaign should include each of the elements identified in this lesson. Have them present their campaign to the class.
* ACTIVITY IDEA * Have students create their OWN version of an “It’s Not Crazy, It’s Sports” commercial. Ask them to explain the idea behind their commercial and who they hope to target with the spot. Here is the link again to see the YouTube playlist of the W+K “It’s Not Crazy, It’s Sports” commercials on ESPN’s channel online.
* TEACHER’S NOTE * 
* ACTIVITY IDEA *