MKT 302 Exam 3 Study Guide
MKT 302 Exam 3 Study Guide MKT 302
Popular in Marketing Research
Popular in Marketing
verified elite notetaker
verified elite notetaker
One Day of Notes
verified elite notetaker
verified elite notetaker
One Day of Notes
verified elite notetaker
verified elite notetaker
This 0 page Study Guide was uploaded by taylor Notetaker on Sunday December 6, 2015. The Study Guide belongs to MKT 302 at University of Miami taught by Tsiros in Fall 2015. Since its upload, it has received 21 views. For similar materials see Marketing Research in Marketing at University of Miami.
Reviews for MKT 302 Exam 3 Study Guide
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 12/06/15
KIN 201 Exam 2 Study Guide PROFESSIONAL SPORTS INTRODUCTION any sport activity or skill for which the athlete is compensated Compensation can be in the form of a salary bonuses or any other form of direct payment 0 We will primarily look at four major in US NBA MLB NFL and NHL 0 Heart of North American Sport probably on test 0 Super Bowl Stanley Cup NBA Finals World Series Masters Indy 500 Kentucky Derby US Open 0 Revenue coming in from professional sports 15 billion revenue MLB 2015 125 billion revenue projected from NFL this year probably more 0 Revenue affects salary caps HISTORY OF PRO SPORTS dates not on exam 0 Olympic Games 0 776 BC in Greece 0 First athlete compensation for performance 0 o 0 Biggest misconception in pro sports is that baseball was rst paid athletes BUT FALSE First paid athletes that were not part of a team were BOXERS RUNNERS JOCKEYS all got compensation O o 1871 0 Formation of the other pro leagues o 1876 o 1917 NHL 0 1921 NFL 0 1937 National Basketball League fell apart then merged with Basketball Association of America to form NBA 0 1949 NBA UNIQUE ASPECTS OF PROFESSIONAL SPORTS 1 teams simultaneously compete and cooperate All teams make sacri ces and concessions for the longterm bene ts and growth of the league 0 Each league pools its revenues to some extent a portion of everything that comes in revenuewise gets shared REVENUE SHARING KC Royals would not have been able to win the World Series without Revenue Sharing Examples Corporate America Walmart and Target don t share revenue to keep Kmart around 0 But Pro Sports don t want to eliminate competition KIN 201 Exam 2 Study Guide 0 Expos Marlins and Red Sox relocation of coaches when situations get bad 2 Structure and Governance 0 League Of ce includes 0 in mid 905 MLB players went on strike Fay Vincent was commissioner at that time Bud Sealey who owned Milwaukee Brewers at the time decided to oust Fay Vincent Other owners voted Bud Sealey as interim commissioner for a while Other owners wanted to be permanent commissioner Just stepped down in 2015 Bud Sealey recommended Rob Manford and after interviewing others owners decided they agreed NBA Commissioner David Stern recommended Adam Silver and owners eventually agreed 0 composed of team owners oversee decision of appointing commissioner o negotiates contracts and agreements Responsible for scheduling licensing record keeping nesdisciplines revenue sharing Coordinates publicity and advertising 3 LaborManagement Relationship 0 Unique circumstances and conditions Between league and players union Dictates rules of player contracts trades revenue distribute draft and salary cap Collective Bargaining Agreement CBA Salary cap normally rises ve to six million a year but this year its 30 million so owners have to try to prevent this In previous CBA NBA was getting 57 of revenues Now only get 50 Implications after ful lling number of years of service with a team players can sell their services to another team Wasn t always the case in 705 Kirk Flood was being traded from rst place team to last place team and decided to take a stance and took case to Supreme Court which led to Free Agency average baseball salary in 1976 was 46000 this past year was 4 million Whole point is to limit the compensation of the athletes All teams must comply Labor and management share revenues generated by the league 0 if make over certain amount of revenue Two types 0 Salary caps cannot be exceeded for any reason 0 Power is with the owners here KIN 201 Exam 2 Study Guide 0 Typical life expectancy of NFL is four years so contracts are not guaranteed unless top players like Peyton Manning Botton performing players will not be guaranteed 0 NFL 143 million to ll out your roster cannot exceed 0 NHL guaranteed contracts 0 Limitation on how much each team can spend on all players while allowing teams to go over limit by issuing exceptions and requiring teams to pay a luxury tax 0 NBA MLB DESIGNED TO BE AN EQUITABLE SYSTEM IMPORTANT Teams with poor records have an advantage over teams with winning records in acquiring talented new players ex KC Royals Teams can now restrict competition for new talent with a draft system 0 The team that drafts a player determines destination and salary of a new player ROLE OF ELECTRONIC MEDIA 0 Importance of TelevisionlMPORTANT 0 Teams and leagues receive revenue more exposure for sponsors and teams charge more money 0 Enhances enjoyment for viewers o Helps increase amount leagues and teams can charge for sponsorships 0 Emerging Sources of Media Coverage 0 Satellite TV Sirius XM pro table 0 Internet streaming contentgames online pro table 0 Social Media Twitter Facebook blogs etc can be pro table but not the point REVENUE SOURCES FOR PROFESSIONAL SPORT 0 Media Contracts TVRadio rights deals with league and teams 0 Gate Receipts purchased tickets 0 Also luxury suites 0 Licensing and Merchandising Revenues o Leagues and teams grant manufacturers the right to use names and logos 0 Receive a royalty in return 0 Very lucrative source of revenue 0 Sponsorships KIN 201 Exam 2 Study Guide CA 0 Signage becomes visible demand for location best location for baseball is right behind home plate rotating signage virtual signage digitally impose signage for TV that aren t actually in the stadium o Naming Rights corporation agrees to pay a large sum of money biggest bang for your buck name of corporation included in the name of the facility REER OPPORTUNITIES IN PRO SPORTS overseers of the entire operation responsible for entire organization responsible for accounting and nancial planning responsible for coordinating marketing mix responsible for overseeing all legal matters drafting up contracts not creating themsexual harassmenthiring and ring responsible for acquiring developing trading and 0000 o releasing talent responsible for putting the best possible team on the eld or court 0 involved in identifying evaluating and developing potential and current players 0 Involved in observing players assigned to the minor leagues scouting staff 0 Medical Training and Team Support physical and mental preparation and readiness of the players 0 Coaching Staff 0 serves as a liaison between team and player Reason to have this person on staff don t want a revolving door of different people coming into locker room and asking me for things 0 Equipment and Clubhouse Staff 0 Stadium and Facility Staff responsible for generating revenue marketing developing a fan base and working with customers THE DOTTED LINE 30 FOR 30 ESPN FILM World of sports agents 1956 players got the right to representation 1977 Job in negotiating contracts is protecting players Trust is something you earn 2012 NFL slot systems restructured negotiations from agents 0 Andrew Luck rst one affected Eugene Lee ETL Operations Josh Luchs former NFL agent suspended for improper conduct paid dozens of college recruits to sign with him Johan Santana became highest paid pitcher in the game KIN 201 Exam 2 Study Guide DAVID FALK MICHAEL JORDAN39S AGENT Founder and CEO of FAME Nike spent 1 mill promoting Michael Jordan in 1st year Nike wanted to get sales to 3 million by 3rd year In rst year sold 130 million in Jordans SPORTS MARKETING consists of all activities designed to meet the needs and wants of sports consumers through exchange processes Consumers Wants and Needs 0 Products 0 Tangible set of golf clubs 0 Intangible attending a Heat game 0 Services personal training golf lessons hospitality at a sport event Two Major Components of Sports MarketinglMPORTANT 1 Marketing of sports productsservices directly to the consumer 2 Marketing consumerindustrial products or services through the use of sport promotions Unique Aspects of Sport MarketinglMPORTANT Sport organizations must compete and cooperate at the same time Sport consumers often consider themselves experts Consumer demand tends to uctuate throughout the year Sport product is often intangible attending a game The basic sport product event is simultaneously produced and consumer shelf life of one Sport is generally publicly consumed and satisfaction is often affected by social interaction 7 Sport product is inconsistent and unpredictable 8 Sport marketer has little or no control over the core product LJ39gtLJLJII I 9 Sport Consumers Two CharacteristicslMPORTANT 1 Involvement behavioral cognitive affective 2 Commitment frequency duration intensity willingness to spend time money and energy NFL Fantasy Files Super Deluxe Version Commercial Videos 0 Showing these players accuracy KIN 201 Exam 2 Study Guide 0 Selling Fantasy Football Ran for two years 0 Still came in fourth so abandoned the idea 0 Great idea but wasn t executed properly Target Market 0 One goal of marketing is to connect a productservice with a target market 0 Portion of the overall market that has certain desirable traits or characteristics 0 Demographic age income race gender education 0 Geographic zip codes area codes proximity to the event sometimes spread farther if Magic are playing Heat 0 Psychographic beliefs Jewish heritage night targetJews Marketing MixIMPORTANT what the sport organization is trying to sell 0 Can be goods services people places and ideas 0 Challenge is to produce to the right product for the consumer 0 Products can be differentiated in order to appeal to a different part of the target market segmentation Example use a Hispanic baseball player to gain sales in Little Havana areas 0 the value of the product and the price the consumer must pay to obtain it 0 Evaluation of costs vs bene ts o If the consumer feels the bene ts exceed the costs then the product is perceived to have value 0 A product that is under priced may be perceived to have no value 0 uctuating pricesMPORTANT the channels available for getting the product to the consumer distribution 0 Evaluation of different distribution options selection of methods that will provide the best connection to consumers 0 Distribution point is becoming just cell phones 0 the communication activities that inform persuade and motivate consumers to purchase the product 0 Process of creating interest among consumers 0 Variety of promotional methods Print Television Radio Internet CrossPromotions Social Media 0 Choice is dependent upon target market and available resources 0 communication process intended to convey the purposes and goals of the organization 0 Position the product in the mind of the consumer through image building and relationships with other organizations 0 PR Media Relations Community Relations Media Relations can have an instant impact Community Relations can have a lasting impact 0 Goal create a positive public image KIN 201 Exam 2 Study Guide So You Want to Work in Sports Marketing 0 Communication Skills 0 Computer Skills 0 Personal Management 0 Sales Ability Education 0 Knowledge of Sport ProductService CORPORATE SPONSORSHIP Sponsorship and sales 0 Using sports as the vehicle to get the message out the practice of seeking a cash andor inkind fee paid to the property typically in sports arts entertainment or causes in return for access to the exploitable commercial potential associated with the sport property 0 give Gatorade products for the event the provision of resources eg money equipment by an organization the sponsor directly to an individual 0 Getting an individual representative to wear our brand or represent our company 0 Example DerekJeter wearing Movados instead of Rolex o Mayweather 1 Ronaldo 3 Messi 4 Maria Sharapova at 26 rst female Primary Bene ts 1 Generating brand awareness and image enhancement 2 Hospitality at sporting events 3 Product trials ex setting up a booth at a NASCAR event 4 Sales Opportunities Fit 0 Criteria to Determine Fit 1 The sport property s image should be compatible with the desired image of the brand 2 A match exists between the target market of the sport entity and the target market of the band 0 Value of a sponsorship often is created by the sport entities need for funding or resources 0 Problems can arise when the value associated with a sponsorship is lower than the associated cost 0 NASDAQ 100 is now the Miami Open KIN 201 Exam 2 Study Guide INCREASING COMPETITION MAY DIMINISHED VALUE l why companies may not want to be associated with sports 0 the result of too many sponsors being associated with a sport entity 0 No single brand image stands out as the sponsor o Spectators cannot distinguish competing brands in this instance thereby diminishing the value for all 0 Example Pepsi sets up tent outside while Coke is inside who s the sponsor average person is exposed to as many as 5000 selling messages a day 0 Whether radio TV internet billboards or print the noise from each desensitizes the consumer to all messages 0 Example hear and see a million commercials a day how do you remember 0 a direct competing brand same category same product staging a presence in which confusion is created in the mind of the consumer regarding who is the official sponsor 0 Le Coke vs Pepsi 0 Example quotThis segment of Olympics brought to you by Pepsi then later is commercial where athlete is seen drinking Coke but sponsoring athlete not Olympics Designing a Sports Sponsorship Program 0 between 20 and 30 yard line is best place for football advertisement O M are the most expensive sport marketing investment in the current marketplace the best dollarforimpression sponsorship bargain and one of the most underutilized promotional assets in a company s arsenal Alan Friedman founder Team Marketing Report 0 Sun Life Stadium has changed names a million times Joe Robbie Stadium Dolphins Stadium Landshark Stadium Jimmy Buffet Sun Life Stadium going to be something new soon 0 Most expensive naming rights in NFL is MetLife Stadium 1725 million 0 the impact that a sponsorship investment has on sales is the best indicator that the sponsorship was a success 0 are most often expressed in three ways 1 Increases in traffic at retail pointsof purchase 2 Resulting number of new sales leads 3 Actual increase in sales connected with a sponsorship 0 Actual sales can be measured by tracking coupon redemptions or ticket discounts given with a proofofpurchase of the sponsor s product 0 Similarly a comparison of sales during a threemonth period corresponding with the event and the sales for a comparable period can be calculated to measure actual increases Why Sponsors Defect 1 Their goals and objectives were not met KIN 201 Exam 2 Study Guide 2 They have chosen a completely new marketing approach which may focus on a new target market or a different direction all together 3 The economy change in marketing budget when a spectator can correctly identify the brand of a sponsor from a list 0 Selecting company from a multiplechoice list higher level of effectiveness spectator can remember and correctly identify a sponsor s brand without input or prompting 0 Free response NBA sponsors wireless service sprint liquor crown royal fast food taco bell credit cards American express REVIEW pro sports espn 30 for 30 dotted line sports agents unique aspects interdependent interdependence de nition structure and gov commissioner etc collective bargaining etc salary caps luxury tax soft cap hard cap revenue sources ve of them know them career opportunities execs categories of business positions player personnel positions scouting GM staff directory marlins department know CEO CFO CMO general counsel general manager sports marketing de nition break down de nition needs and wants of consumers identi ed who sports consumers are 8 unique aspects be comfortable knowing four of these target markets demographics geographic psychographic 2 major components of sports marketing 1 2 other companies using sports to get their message out corp sponsorship 5 p s dynamic pricing variable pricing segmentation jose Fernandez 8th street marketing baseball grandma
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'