Overview

One of the greatest challenges for sports marketers is trying to keep pace with the ever-changing, fast-paced environment of the sports world. For example, since the first edition of this text was published in 1999, amazing changes have taken place and challenges to sports marketers emerge daily. First, costs and valuations have been rising quickly. For example, Merrill Lynch estimated Qatar will spend over $65 billion to prepare for the 2022 world soccer competition while Brazil’s projected budget for hosting the World Cup is $13.3 billion and $18 billion for the Olympics, not counting projected public and private expenditures needed before the competitions. Furthermore, valuations of sport franchises have skyrocketed, Steve Ballmer’s recent $2 billion offer for the Los Angeles Clippers, a bid nearly four times that of the last record sale, underscores the logical tendency and nonchalance in which sports brands are valued.

Athletes’ salaries continue to escalate; for example, even though the Philadelphia Phillies have accumulated player salaries that encompass three of the top ten highest paid players in MLB, $25 million for Ryan Howard and Cliff Lee and $23.5 million for Cole Hamels, they rank third behind the N.Y. Yankees and L.A. Dodgers in total team expenditures. For the first time since 1998, the Yankees no longer can claim baseball’s spending crown, that honor goes to the Dodgers in a runaway – with an estimated payroll of more than $235 million while the Yankees estimated payroll was just shy of $204 million.

To offset these costs leagues and teams alike are procuring lucrative television and media contracts and continue to expand and amend facilities. For example, the NFL recently secured extension deals with ESPN, CBS and FOX. ESPN recently agreed to expend $1.9 billion per year for the rights to broadcast Monday Night Football. CBS, which has aired NFL broadcast since 1956, recently agreed to pay $1 billion per year for the rights to broadcast the AFC Conference games while Fox Sports agreed to a $1.1 billion per year expenditure for NFC Conference broadcast starting in 2014. These expenditures top the SkySport’s agreement, which amounted to €760 million ($1.22 billion) per year for broadcasting the Premier League.

To remain attuned to market demand sport teams are constantly on the lookout for ways to improve the sporting landscape, often through the use of public subsidies. Stadium new builds and/or retrofits continue to occur at a rapid pace with escalated costs. The Sochi Winter Olympics recently became the most expensive Olympics in history, with an estimated expenditure of $51 billion. The newest US pro stadiums have cost estimates of $975 million (Minnesota Viking Stadium), $1.15 billion (Cowboys Stadium) and $1.6 billion (Metlife Stadium). Furthermore, on the collegiate landscape, college sports organizations continue to build bigger, nicer, state of the art facilities to compete in the “competitive” arms race. Industry experts estimate that more than $17 billion have been spent on stadium upgrades in the last decade.

Each ticketholder will also pay more to attend the games in these plush new facilities. Ticket prices continue to increase and to drive the common fan out of the sport arena. For instance, the average seat price at an NBA game more than doubled from $22.52 in 1991 to $51 in 2014. But this may not be the largest problem in sports, as scandals emerge daily. For example, Donald Sterling’s racial transgressions, the Penn State child sexual abuse scandal, Tiger Woods and his marital woes, Rick Pitino’s extortion trial, the Ohio State football team tattoos-for-memorabilia, and the list goes on and on.

The one constant in this sea of change is the incredible appetite of consumers for sports. We get sports information on the Webwatch, sports in high definition on network and cable TV, read about sports in the newspaper and sports magazines, talk to friends about sports, purchase sports merchandise, participate in sports (both fantasy and real), and attend sporting events in record numbers. The sports industry has experienced tremendous growth and is estimated by AT Kearney to be a $480-$620 billion industry worldwide. Moreover, the sports industry is flourishing around the globe. The expansion of the sports industry has triggered a number of important outcomes: more sports-related jobs being created, and more students interested in careers in the sports industry. As student interest grows, demand for programs in sports administration and classes in sports marketing have also heightened.

In this book, we will discover the complex and diverse nature of sports marketing. Moreover, a framework will be presented to help explain and organize the strategic sports marketing process. Even if you are not a sports enthusiast, you should become excited about the unique application of marketing principles and processes that pertain to the sports industry.

Why this book?

Programs and courses in sports marketing have emerged at many universities across the country. Surprisingly, few sports marketing textbooks exist and not one is written from a strategic marketing perspective. In the first edition of this book, Dr. Shank sought to fill this void. The second edition represented an effort to improve the first edition and capitalize on its strengths. The third edition attempted to continuously improve the content and focus on the current relevant issues in sports marketing. The fourth edition provided more focus on the important issues in sports marketing theory and practice. Our goals for the fifth edition are to provide:

  A framework or conceptual model of the strategic marketing process that can be applied to the sports industry. The contingency framework is presented as a tool for organizing the many elements that influence the strategic sports marketing process and recognizes the unpredictable nature of the sports industry. In addition, the contingency framework allows us to explore complex relationships between the elements of sports marketing.

  A more concise and focused approach describing the internet and social media and their relationship to understanding strategic sports marketing. Advances in internet and social networking platforms, though constantly changing and often considered evolutionary, continue to have an impact on organizational strategy. They have had a dramatic impact on the delivery and use of market strategies. The continued emergence of social media as a viable platform has generated new and innovative ways to create dialog and receive feedback, as well as further enhance methods of engaging the consumer.

  An appreciation for the growing emphasis on the globalization of sport. As such, international sport topics are integrated throughout the text, and are also highlighted in chapters in the “Spotlight on International Sports Marketing.”

  An examination of current research in the area of sports marketing. The study of sports marketing is still in its relative infancy and academic research of interest to sports marketers (e.g., sports sponsorships, using athletes as endorsers, and segmenting the sports market) has grown exponentially since the first edition of this text. It is important that students learn how academic research is applied to the “real world” of sports marketing.

  An awareness of the many job opportunities available in the sports industry. The one common denominator for all sports business students is the desire to secure their first job after graduation and start their careers. In this edition, we focus on several successful sports marketers who provide perspective about how and why they got started in the industry. Also, this edition retains an appendix devoted to careers in sports marketing.

  A balanced treatment of all aspects of sports marketing at all levels. This book attempts to capture the diverse and rich nature of sports marketing by covering the marketing of athletes, teams, leagues, and special events. Although it is tempting to discuss only “major league” sports because of their intense media coverage, the book explores different sports (e.g., cricket and women’s football) and various levels of competition (e.g., collegiate and recreational). Moreover, the book discusses the activities involved in marketing to participants of sports – another area of interest to sports marketers.

  An introduction of the concepts and theories unique to sports marketing and a review of the basic principles of marketing in the context of sports. Even though many of the terms and core concepts are repetitive, they often take on different meanings in the context of sports marketing. Consider the term sports involvement. Although you probably recognize the term product involvement from your principles of marketing and/or consumer behavior class, what is sports involvement? Is involvement with sports based on participation or watching sports? Is involvement with sports deeper and more enduring than it is for other products that we consume? How can sports marketers apply sports involvement to develop a strategic marketing plan? As you can see, the core marketing concept of involvement in the context of sports presents a whole new set of interesting questions and a more comprehensive understanding of sports marketing.

  Comprehensive coverage of the functions of sports marketing. While some texts focus on specialized activities in sports marketing, such as sports media, this book seeks to cover all the relevant issues in designing an integrated marketing strategy. Extensive treatment is given to understanding consumers as spectators and participants. In addition to planning the sports marketing mix (product, price, promotion, and place), we will examine the execution and evaluation of the planning process.

Ground rules

This text is organized into four distinct but interrelated parts. Each part represents an important component in the strategic sports marketing process.

Part I: Contingency Framework for Strategic Sports Marketing

In Chapter 1, we introduce sports marketing and illustrate the breadth of the field. In addition, we will take a look at the unique nature of sports products and the sports marketing mix. Chapter 2 presents the contingency framework for strategic sports marketing. This chapter also highlights the impact of the internal and external contingencies on the strategic sports marketing process. Internal contingencies such as the sports organization’s mission and organizational culture are considered, as are external contingencies like competition, the economy, and technology.

Part II: Planning for Market Selection Decisions

Chapter 3 presents an overview of the tools used to understand sports consumers – both participants and spectators. Each step in the marketing research process is discussed, illustrating how information can be gathered to aid in strategic decision-making. In Chapters 4 and 5, respectively, participants and consumers of sport are studied. Chapter 4 examines the psychological and sociological factors that influence our participation in sport, while Chapter 5 looks at spectator issues such as fan motivation. In addition, we will discuss the relationship between the participant and spectator markets. Chapter 6 explores the market selection decisions of segmentation, targeting, and positioning in the context of sport.

Part III: Planning the Sports Marketing Mix

Chapters 7 through 12 explain the sports marketing mix, the core of the strategic marketing process. Chapters 7 and 8 cover sports product issues such as brand loyalty, licensing, and the new product development process. Chapter 9 introduces the basic promotion concepts, and Chapter 10 gives a detailed description of the promotion mix elements of advertising, public relations, personal selling, and sales promotions. Chapter 11, the final chapter on promotion, is devoted to designing a sports sponsorship program. Chapter 12 tackles the basic concepts of pricing.

Part IV: Implementing and Controlling the Strategic Sports Marketing Process

While the previous sections have focused on the planning efforts of the strategic marketing process, Part IV focuses on the implementation and control phases of the strategic marketing process. Chapter 13 begins with a discussion of how sports organizations implement their marketing plans. In this chapter, we see how factors such as communication, motivation, and budgeting all play a role in executing the strategic plan. We also examine how sports marketers monitor and evaluate the strategic plans after they have been implemented. Specifically, three forms of control (process, planning assumption, and contingency) are considered.

Pedagogical advantages of sports marketing

To help students learn about sports marketing and make this book more enjoyable to read, the following features have been retained from previous editions of Sports Marketing: A Strategic Perspective.

  Text organized and written around the contingency framework for strategic sports marketing

  Chapters incorporating global issues in sport and how they affect sports marketing

  Sports Marketing Hall of Fame boxes featuring pioneers in the field integrated throughout the text

  Text incorporating up-to-date research in the field of sports marketing

  Internet exercises at the end of each chapter

  Experiential exercises at the end of each chapter that ask you to apply the basic sports marketing concepts and perform mini-research projects

  Vignettes throughout the text to illustrate core concepts and make the material come to life

  Detailed glossary of sports marketing terms

  Use of ads, internet screen captures, and photos to illustrate core concepts of sports marketing

  Appendix describing careers in sports marketing

  Appendix presenting Internet addresses of interest to sports marketers

Enhancements to the fifth edition

While we have attempted to retain the strengths of the previous editions of Sports Marketing: A Strategic Perspective, we also hoped to improve the fifth edition based on the comments of reviewers, faculty who adopted the text, and most importantly, students who have used the book. This edition includes the following features:

  Up-to-date examples illustrate the core sports marketing concepts in the text. As mentioned previously, the sports industry is rapidly changing and nearly 80 percent of the examples introduced in the previous editions are now obsolete. It was our goal to find new, relevant examples to illustrate key points in every chapter of the text. These new examples are meant to keep the book fresh and keep students engaged.

  New advertisements, web captures and illustrations have been incorporated into each chapter to highlight key sports marketing concepts and make the material more relevant for students. These ads and photos are examples of sports marketing principles that have been put into practice and bring the material in the text “to life.”

  New spotlights on careers in sports marketing introduce students to successful sports marketers and their jobs.

  The spotlights on international sports marketing have been revised and updated for the fifth edition to highlight this key area of growth in the sports industry.

  New screen captures of relevant web sites illustrate key concepts. Because social media is now playing such a large role in sports marketing, screen captures from various web sites have been incorporated throughout the text to bring the material to life for students. In addition, social media/internet exercises appear at the end of each chapter, and discussions of these items as an emerging tool for sports marketers appear throughout.

  New exercises have been created that afford instructors the opportunity to further integrate real life up-to-date information utilizing auxiliary materials such as Sport Business Journal, Sport Business Daily, Sport Business and Bleacher Report.

  New spotlights on ethical issues are integrated throughout the text. Hopefully, this will generate lively discussion in the classroom and make students more aware of the ethical issues that they will confront in the workplace.

Instructional support

Various teaching supplements are available to accompany this textbook. They consist of an Instructor’s Manual, Test Item File, and PowerPoint presentation. These items may be found online only at www.routledge.com/cw/shank.

Acknowledgments

The new edition of any textbook is a challenge. In fact, much more of a challenge than people think. Typically colleagues joke that a new edition just means changing dates and examples. Nothing could be farther from the truth, and the fifth edition posed significant professional hurdles and opportunities. On the professional side, the fifth edition of Sports Marketing: A Strategic Perspective is the most significant revision of the text since its inception. Most importantly, I have added a co-author, Dr. Mark Lyberger, who adds a wealth of expertise and brings a fresh new perspective to the text. We also welcome our new publisher, Routledge. In addition, during the fifth edition, I moved from my position as Dean of the Business School at the University of Dayton to President of Marymount University. Obviously, a significant professional commitment. Before going any further, I have to thank my wife Lynne for her patience and support. The project could never have been completed without the expertise and encouragement of many others. Although there are countless people to thank, I was greatly assisted by the thoughtful reviews that undoubtedly improved all the editions of this text. These reviewers include:

Ketra Armstrong, The Ohio State University

Robert E. Baker, Ashland University

Ronald Borrieci, University of Central Florida

Chris Cakebread, Boston University

James Cannon, University of South Alabama

Joseph Cronin, Florida State University

Kathleen Davis, Florida Atlantic University

Eddie Easley, Wake Forest University

Renee Florsheim, Loyola Marymount University

Pat Gavin, New Mexico State University

Lynn Kahle, University of Oregon

Patricia Kennedy, University of Nebraska, Lincoln

Jerry Lee Goen, Oklahoma Baptist University

Deborah Lester, Kennesaw State University

Mark Lyberger, Kent State University

Ann Mayo, Seton Hall University

Mark McDonald, University of Massachusetts, Amherst

Stephen McKelvey, J.D., University of Massachusetts, Amherst

David Moore, University of Michigan

Susan Logan Nelson, University of North Dakota

Gregory Pickett, Clemson University

Michael Smucker, Texas Tech University

Joseph Terrian, Marquette University

Lou Turley, Western Kentucky University

In addition to the formal reviews, we are especially grateful to the graduate students and staff who have contributed their time and efforts to enhance the delivery and completion of the fifth edition, in particular Tami Gingerich, Katie Goldring, Kelly Leacoma, Danielle Novotny, Nick Pangio, Taryn Schmidt, Jennifer Schultz, and Josh Selden. We received informal comments from many of you who adopted the first four editions; we thank you for your feedback. We have tried to incorporate all of your suggestions and comments. We are very grateful to our colleagues both old and new at the University of Dayton, Kent State University, Marymount University, and Northern Kentucky University (NKU) who have supported us throughout this process. Additionally, thanks go out to all of our students who have helped fuel our interest in sports marketing. We would like to thank all of those sports business and management students who have used the book (and other universities) and pointed out their likes and dislikes.

One of the greatest challenges facing authors and publishers is the procurement and protection of intellectual work. Special thanks to Emma Davis for her assistance with securing copyright permissions for the text. In a world where technology and dissemination continue to precede copyright law this undertaking is no easy task, therefore, for her perseverance, we are forever grateful. Furthermore, a number of organizations have been very helpful in providing permission to use ads and articles throughout the text. Special thanks to all the individuals within these organizations who have made this book more meaningful and readable for students.

We would also like to thank Alison Jones for without her meticulous reading, due diligence, and expedient editing this edition would not have become a reality. We are grateful for her helpful suggestions, advice and constructive comments which ultimately enhanced the final presentation of materials within the fifth edition. Finally, we are indebted to the entire Routledge team for their encouragement and making the fifth edition a reality. Special thanks go to William Bailey, and Hannah Champney. Last, but certainly not least, thank you to Simon Whitmore for his superb project management.