Sports marketing as a concept has established itself as a branch of marketing over the past few decades; however, a generally accepted definition does not exist. Academicians Kaser and Oelkers (2005, p. 9) define sports marketing as 'using sports to market products'. It is a specific application of marketing principles and processes to sport products and to the marketing of non- sports products through association with sport.
Sports Marketing is a subdivision of marketing which focuses both on the promotion of sports events and teams as well as the promotion of other products and services through sporting events and sports teams focused on customer-fans. It is a service in which the element promoted can be a physical product or a brand name. The goal is to provide the client with strategies to promote sports or to promote some other product, service, business or cause through sports. Sports marketing is also designed to meet the needs and wants of the consumers through exchange processes. These strategies follow the traditional four "P"'s of general marketing: Product, Price, Promotion and Place. Another four "P"’s are added to sports marketing, relating to the fact sports are considered to be a service. The additional 4 P’s are: Planning, Packaging, Positioning and Perception. The addition of the four extra elements is called the "sports marketing mix."
Sports marketing is an element of sports promotion which involves a wide variety of sectors of the sports industry, including broadcasting, advertising, social media, digital platforms, ticket sales, and community relations. Sports marketing is divided into three sectors. The first is the advertising of sport and sports associations such as the Olympics, Spanish Football league, NFL and the IPL, as well as sport teams like Mumbai Indians, Chennai Super Kings, Real Madrid and the New York Yankees. The second concerns the use of sporting events, sporting teams and individual athletes to promote various products. The third category is the promotion of sports to the public in order to increase participation.
In the first case, the promotion is directly related to sports. In the second case, the products can but do not have to be directly related to sports. When the promotion is about sports in general, the use of this kind of strategy is called “Marketing of Sports”. When the promotion is not about the sports but sports events, athletes, teams or leagues are used to promote different products, the marketing strategy is denominated “Marketing through sports." When the promotion is about increasing participation among the public, it is called "Grassroots Sports Marketing." To promote the products or services, the companies and associations use different channels such as sponsorships of teams or athletes, television or radio advertisement during the different broadcast sports events and celebrations, and/or advertisement on sporting venues.
Street marketing of sports considers sports marketing through billboards on the street and also through urban elements (street lighters and sidewalks, etc.) to help promote and gain publicity during major worldwide sporting events such as the Football World Cup, the Olympic Games, the Cricket World Cup or the Super Bowl.
Sports fans Like all business sectors, sports businesses also rely on market segmentation to effectively market themselves. Sport fans differ according to a number of attributes including motivations to attend sporting events, emotional attachment, economic attachment, identity, and loyalty. These attributes also make sports different from other forms of entertainment as sport fans behave differently than consumers of other products and services.
Attributes such as loyalty can be recognized through the contracts players and athletes sign with sports companies, in which they get paid to wear or use their products in each game or sporting event. By doing so, the players and athletes and also their fans develop a loyalty for the products for a longer time.
Types of sports With such an array of differences of sports fans, different types and levels of sports are found across the globe. For example, in many countries cricket and association football are extremely popular. In the United States, American football, baseball, and basketball are most favored, while college sports are also preferred. In addition to the classification of sports by levels, sports have also been classified as either mainstream or non-mainstream, also known as niche.
There are seven product attributes that differentiate mainstream sports from non-mainstream sports: accessibility, popularity, uniqueness, affordability, star power, player skill, and player similarity. Accessibility, affordability, and similarity are strongly related to niche sports while popularity, player skill as well as accessibility are strongly related to mainstream sports. Meanwhile, fans that are less-identified with a team are drawn to player similarity as they feel they can relate more with players while highly identified fans prefer the star power of players. Affordability also is a distinguishing factor among fans, as less-identified fans place greater importance on price. A practical marketing example of this is the National Lacrosse League mandating players to attend receptions of restaurants who sponsor the team. Other strategies that niche sports utilize to differentiate themselves from mainstream sports are providing easy access to team and player information, especially online, as well as offer affordable ticket prices and valuable promotions such as dollar beer nights and 25-cent hot dog nights. In contrast, popular mainstream sports like Major League Baseball (MLB) and the National Basketball Association (NBA) highlight the star power of players, which is why teams go to great effort to promote their best players. This is also seen in media as nationally televised sporting events often promote specific players leading up to games.
Fans also hold different expectations of different sport types and levels of sports. This is essential for sport marketers to understand. For example, fans attending a minor league baseball game will compare their experience to previous games attended at minor league baseball games, or even other minor league sports if they have little experience with minor league baseball. They will not, however, compare a minor league baseball experience to an NFL game as they understand the two experiences will be very different.
Sports differentiation is also important concerning sponsorship. Companies who sponsor niche sports place the most importance on attributes including cost effectiveness, spectator demographics, and the company fit with the sports image. Niche sports often allow companies who cannot afford to sponsor mainstream sports a channel to market their companies. Also, with niche sports shown to attract a different type of consumer, these companies desire to increase their public awareness within a specific target market. Other attributes important to companies sponsoring niche sports are enhancing both their image and community involvement.
Benefits
The benefits of sports marketing are wide-ranging. Stakeholders involved in sports include leagues, teams, athletes, and fans as well as cities and countries hosting sporting events. The media and businesses who promote their products and services through sports also receive benefits. Direct benefits to leagues, teams, and athletes include revenue from tickets, media rights, and sponsorships. Cities and countries also receive revenue from taxes, and all of the stakeholders gain from the exposure provided through sports.
Sports sponsorship activation is often used by brands to increase visibility and brand awareness. Additionally, it also provides opportunities for companies to engage with target audiences and strengthen relationships with consumers. It also helps offer commercial benefits through increased exposure and fan engagement. When it comes to B2B, sponsorships are also used for corporate hospitality purposes, such as hosting clients at sporting events, providing premium viewing access, and facilitating networking opportunities in informal settings rather than in an office.
New challenges for sports marketing The role of traditional media and sports marketing is changing with millennials switching to new platforms to access sport. Inflexible contracts can leave little budget for marketing spend, and with fans choosing rival unofficial channels for insider content and insider information, the rewards can be hard won for organizations. New and accessible ways to view sports, from mobile to social to VR, mean there is less incentive for fans to attend events in person, while more expectation is placed on sports stars to pull off an authentic natural voice for their brands. The environment is challenging for small college athletics (e.g., NCAA Division III schools), who rely on fan attendance for revenue generation to keep their sports afloat, requiring communicators and marketers to become more creative in the ways they promote sports to their target audiences.
Marketing of sports teams and events According to different authors and organizations, the marketing of sports events and teams is defined as “Designing or developing a 'live' themed activity, occasion, display, or exhibit a sporting event to promote a product, a team, cause, or organization". In other words it can be defined as follows: The marketing of sports events and teams is the marketing strategy which is designed or developed for a “live” activity, which has a specific theme. Mostly this kind of strategy is used as a way to promote, display or exhibit different things, such as a sports team, a sport association among others. There are different events that can clearly exemplify this concept, such as the Super Bowl, the Olympic Games, the UEFA Champions League, the World Marathon Majors, and the FIFA World Cup.
Major sportswear companies compete to associate themselves with leading international marathons, often regarded as benchmarks of excellence in distance running, and for a genuine showcase for strengthening its marketing strategy to its target audience. Brands like Adidas, Asics and Nike play significant roles in dividing the market into the ‘World Marathon Majors’, an international competition established in 2006 that brings together some of the most prestigious marathonsworldwide. Although these companies typically serve as technical rather than title sponsors, such events remain central to their marketing strategies, often accompanied with dedicated advertising campaigns. These marathons are notable for attracting both elite and amateur runners competing within the same event.
The Super Bowl is an example of this concept because it is a massive sports event organized by a sport association, the NFL, which looks to promote the event, the sport, and as well the different football teams. The event is promoted through local and national media, and has also spread internationally. For example, in Mexico the NFL signed a contract with Cinemex, a Mexican movie theater chain, for the right to transmit its games in movie theaters. This displays the potential of sporting leagues and teams to promote not just the event, but the league and teams involved to a worldwide audience.
Marketing products through sports "Marketing through sports" is a concept that's been used since the 1980s, but has increased in importance in the last two decades due to the growth and expansion that the different types of sports have enjoyed since then.