2 Sport Marketing Fourth Edition Bernard J. Mullin, PhD Aspire Group Stephen Hardy, PhD University of New Hampshire William A. Sutton, EdD University of South Florida Human Kinetics 3 Library of Congress Cataloging-in-Publication Data Mullin, Bernard James. Sport marketing / Bernard J. Mullin, Stephen Hardy, William A. Sutton. -- Fourth edition. pages cm Includes bibliographical references and index. 1. Sports--Marketing. I. Hardy, Stephen, 1948- II. Sutton, William Anthony, 1951- III. Title. GV716.M85 2014 338.4'3796--dc23 2013031098 ISBN-10: 1-4504-2498-8 (print) ISBN-13: 978-1-4504-2498-1 (print) Copyright © 2014, 2007, 2000, 1993 by Bernard J. Mullin, Stephen Hardy, and William A. Sutton All rights reserved. Except for use in a review, the reproduction or utilization of this work in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including xerography, photocopying, and recording, and in any information storage and retrieval system, is forbidden without the written permission of the publisher. The web addresses cited in this text were current as of December 2013, unless otherwise noted. Acquisitions Editor: Myles Schrag Developmental Editor: Amanda S. Ewing Assistant Editor: Casey A. Gentis Copyeditor: Bob Replinger Indexer: Andrea J. Hepner Permissions Manager: Dalene Reeder Graphic Designer: Nancy Rasmus Graphic Artist: Dawn Sills Cover Designer: Keith Blomberg Photograph (cover): Layne Murdoch/NBAE via Getty Images Photo Asset Manager: Laura Fitch Photo Production Manager: Jason Allen Art Manager: Kelly Hendren Associate Art Manager: Alan L. Wilborn Illustrations: © Human Kinetics, unless otherwise noted Printer: Courier Companies, Inc. Printed in the United States of America 10 9 8 7 6 5 4 3 2 1 The paper in this book was manufactured using responsible forestry methods. Human Kinetics Website: www.HumanKinetics.com United States: Human Kinetics P.O. Box 5076 Champaign, IL 61825-5076 800-747-4457 e-mail: [email protected] Canada: Human Kinetics 475 Devonshire Road Unit 100 Windsor, ON N8Y 2L5 800-465-7301 (in Canada only) e-mail: [email protected] Europe: Human Kinetics 107 Bradford Road Stanningley Leeds LS28 6AT, United Kingdom +44 (0) 113 255 5665 e-mail: [email protected] Australia: Human Kinetics 4 57A Price Avenue Lower Mitcham, South Australia 5062 08 8372 0999 e-mail: [email protected] New Zealand: Human Kinetics P.O. Box 80 Torrens Park, South Australia 5062 0800 222 062 e-mail: [email protected] E5690 5 Check Out the Web Study Guide! You will notice a reference throughout this version of Sport Marketing, Fourth Edition, to a web study guide. This resource is available to supplement your e-book. The web study guide features exclusive video interviews with leaders in the sport industry, offering insight into how they incorporate marketing strategies into their daily work. Activities built around these clips guide you in using core concepts from the text to answer questions about the applied situations in the interviews. Web search activities also provide opportunities for you to compare strategies found on sport organization websites, YouTube, and other online locations. Follow these steps to purchase access to the web study guide: 1. Visit www.tinyurl.com/BuySportMarketing4EWSG. 2. Click the Add to Cart button and complete the purchase process. 3. After you have successfully completed your purchase, visit the book’s website at www.HumanKinetics.com/SportMarketing. 4. Click the fourth edition link next to the corresponding fourth edition book cover. 5. Click the Sign In link on the left or top of the page and enter the e-mail address and password that you used during the purchase process. Once you sign in, your online product will appear in the Ancillary Items box. Click on the title of the web study guide to access it. 6. Once purchased, a link to your product will permanently appear in the menu on the left. All you need to do to access your web study guide on subsequent visits is sign in to www.HumanKinetics.com/SportMarketing and follow the link! Click the Need Help? button on the book’s website if you need assistance along the way. 6 Guy Maxton Lewis, 1926-2013 Photo courtesy of Special Collections and Archives, University of Massachusetts, Amherst. We dedicate this book to the memory and legacy of Professor Guy M. Lewis, a true genius and visionary. Guy was a key founder and builder of undergraduate and graduate programs in sport studies and sport management at both the University of Massachusetts and the University of South Carolina. Throughout his long and active career, he constantly searched for ways to integrate the theoretical with the practical, scholars with practitioners. His professional contributions include the North American Society for Sport History, the Sport Management Arts and Sciences Conferences at UMass, and the International Sports Business Conferences at South Carolina. We happily consider ourselves among the many students, colleagues, and professional associates who have benefitted from his wisdom and counsel. He will be missed. His contributions will endure. 7 Contents Contributors Foreword Preface Web Study Guide Instructor Resources Acknowledgments Chapter 1: The Special Nature of Sport Marketing The NBA and Global Marketing Strategy Weathering Recessions The Competitive Marketplace Sport Marketing Defined Marketing Myopia in Sport Change in the Profession Uniqueness of Sport Marketing Wrap-Up Chapter 2: Strategic Marketing Management Sport Strategy Is More Than Locker Room Talk Marketing Planning Process Strategic Step 1: Develop Vision, Position, and Purpose Strategic Step 2: Develop Strategic Goals and Objectives Strategic Step 3: Develop a Ticket Marketing, Sales, and Service Plan Strategic Step 4: Integrate the Marketing Plan Into a Broader, Strategic Resource Allocation Strategic Step 5: Control and Evaluate Implementation of the Plan Eight-Point Ticket Marketing, Sales, and Service Plan Model Wrap-Up Chapter 3: Understanding the Sport Consumer Socialization, Involvement, and Commitment Environmental Factors Individual Factors Decision Making Wrap-Up Chapter 4: Market Research in the Sport Industry Sources of Information Users of Market Research in Sport and Entertainment Application of Market Research in the Sport Industry Performing the Right Research Wrap-Up Chapter 5: Market Segmentation What Is Market Segmentation? Four Bases of Segmentation Integrated Segmentation Strategies and Tactics Wrap-Up 8 Chapter 6: The Sport Product What Is the Sport Product? The Sport Product: Its Core and Extensions Grassroots Ideas Key Issues in Sport Product Strategy Wrap-Up Chapter 7: Managing Sport Brands What Is Branding? Importance of Brand Equity Benefits of Brand Equity How Brand Equity Is Developed Wrap-Up Chapter 8: Sales and Service Relationship Between Media, Sponsors, and Fans and the Sales Process What Is Sales? Direct Data-Based Sport Marketing and Sales Typical Sales Approaches Used in Sport Pricing Basics Secondary Ticket Market Aftermarketing, Lifetime Value, and the Importance of Retaining Customers Wrap-Up Chapter 9: Sponsorship, Corporate Partnerships, and the Role of Activation What Is Sponsorship? Sponsorship in the Marketing Mix Growth of Sponsorship What Does Sport Sponsorship Have to Offer? Corporate Objectives Sponsor Activation Selling Sponsorships Ethical Issues in Sponsorship Wrap-Up Chapter 10: Promotion and Paid Media The Catchall P: Promotion Advertising Advertising Media for Sport Promotional Concepts and Practices Promotional Components Ultimate Goal: Keeping Consumers on the Escalator and Moving Them Up Putting It All Together: An Integrated Promotional Model Wrap-Up Chapter 11: Public Relations What Is Public Relations? Public Relations in the Sport Marketing Mix Sport Public Relations in the Digital Age Public Relations Functions Sport, Television, and Entertainment Influence on Sport Public Relations Wrap-Up Chapter 12: Social Media in Sport What Is Social Media? 9 Building an Audience Engaging Fans Driving Behavior Social Media Platforms Avoiding Pitfalls Leveraging Players and Talent Wrap-Up Chapter 13: Delivering and Distributing Core Products and Extensions Placing Core Products and Their Extensions Theory of Sport and Place Facility Marketing Channels Product-Place Matrix Wrap-Up Chapter 14: Legal Aspects of Sport Marketing Intellectual Property Trademark Infringement Copyright Law and Sport Marketing Patents Sport Marketing Communications Issues Ambush Marketing Right of Publicity and Invasion of Privacy Contractual Issues Involving Consumers Promotion Law Issues Emerging Issues Wrap-Up Chapter 15: Putting It All Together Cross-Effects Among the Five Ps Controlling the Marketing Function Wrap-Up Chapter 16: The Shape of Things to Come From Our Crystal Ball From Our Crystal Ball Redux: By the Year 2020 Wrap-Up About the Authors 10