21-1 chapter 21 the role of technology in sports marketing mcgraw-hill/irwin©2007 the mcgraw-hill...
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Chapter 21Chapter 21
The Role of Technology The Role of Technology in Sports Marketingin Sports Marketing
McGraw-Hill/Irwin ©2007 The McGraw-Hill Companies, All Rights Reserved
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Technology – Technology – The Internet and BeyondThe Internet and Beyond
• Technology Has Impacted Virtually Every Aspect of Every Organization
• Sport Is No Different in this Regard
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Foundation for the Internet:Foundation for the Internet:Five Key QuestionsFive Key Questions
• Why?
• Who?
• What?
• Where?
• How?
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Why?Why?
• Will It Enhance Marketer’s Image?
• Will It Augment Other Strategic Initiatives?
• Will It Result in Increased Demand?
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Who?Who?
• Who Will Utilize the Site?
• Is It Open to Everyone?
• Will It Target Adults or Kids – or Both?
• What Other web Sites Will be Linked to It?
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Where?Where?
• Where Will Users Gain Access to the Site?
• Where Will Site be Developed and Maintained?
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How?How?
• How Will Users Receive the Information?
• How Will the Site be Developed?
• How Will the Site be Evaluated?
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Content SitesContent Sites
• Large Information Base
• Often Extensions of Traditional Media– General Publication: New York Times– Sports Oriented Publication: Sporting News– General Broadcast Media: ABC TV– Sports Broadcast Media: ESPN
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Team or League SitesTeam or League Sites
• Also Includes Sports Organization Sites
• Wide Range of Organizations from Local Recreational Bowling League, to an NHL Team, to the NBA, to FIFA.
• Information on Players, Awards, Results, Schedules, and Merchandise Sales, etc.
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Commerce SitesCommerce Sites
• Virtual Storefront
• Often Sell Officially Licensed Merchandise
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Gambling SitesGambling Sites
• Not Generally Embraced as Sports Sites
• High Growth Rate
• Provide Information as Well as Wagering
• Generally Require Some Sort of “Membership” or Registration
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Revenue Models – Content SitesRevenue Models – Content Sites
• Online Advertising or Sponsorship– Banner Ads– Ad Badges
• Subscription Fees– Subscribers Can Drill Deeper for Content
• E-Commerce– Products Available for Purchase
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Advertising FeesAdvertising Fees
• Bases for Rates Charged to Advertisers– CPM
• Cost Per 1000 Visitors to Web Site
– Click-through• Fee Charged for Each Visitor Who “Clicks through”
to Link to the Advertiser’s Web Site
– Flat Rate• Fixed Sum for the Advertiser
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Revenue Models – Revenue Models – Team & League SitesTeam & League Sites
• Online Advertising or Sponsorship
• Subscription Fees
• E-Commerce
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Revenue Models – Revenue Models – Commerce SitesCommerce Sites
• Sales Revenue
• Commissions
• Online Advertising or Sponsorship
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Revenue Models – Revenue Models – Gambling SitesGambling Sites
• Wagers
• Subscriptions
• Online Advertising
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Communications Objectives for Communications Objectives for Sports Marketing Web SitesSports Marketing Web Sites
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Provide InformationProvide Information
• Information 24/7
• No Geographic Limitations
• Can Drill Deeper than Traditional Media
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Facilitate DistributionFacilitate Distribution
• Virtual Box Office
• Ticket Sales and Exchanges for Season Ticket Holders
• Audio and Video Streaming– Live Action– Replays of Past Action (Video-on-Demand)
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Enhance Customer Enhance Customer Relationship ManagementRelationship Management
• One-Way Communication
• Interactive Communication
• One-to-One Marketing (Customization)
• E-mail Domain ([email protected])
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Relationship Marketing: Australia’s Relationship Marketing: Australia’s National Basketball LeagueNational Basketball League
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Facilitate OperationsFacilitate Operations
• Marketing Research – Data Collection
• Account Management – Order Extra Tickets
• Database Management – Contest Information
• Interoffice Communications – Among Offices
• Participant Registration – Boston Marathon
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Technology Beyond the InternetTechnology Beyond the Internet
• Mobile Technology– Customized Content– Information Service– Audio and Video Highlights
• Virtual Imaging– Home Plate Application in MLB– First Down Marker in Football– Cricket – Leg-before-Wicket Call by Umpire
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Technology Beyond the InternetTechnology Beyond the Internet
• Electronic Funds Transfer Technology– Smart Cards– Powerpay (RFID Technology)
• Interactive TV
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Technology Beyond the InternetTechnology Beyond the Internet
• WiFi Stations– Wireless Access– Fans, Media Who Have Laptop Computers– Some Premium Seats May Include Monitors
• Global Positioning Systems– Golf Courses – Information for Players– Participants – Runners, Cross Country Skiers
• Boston Marathon Facilitated Tracking of Runners
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Closing CapsuleClosing Capsule
• Technology Has Had a Dramatic Impact on Marketers in Every Industry
• The Internet and the WWW Have Ushered in Dramatic Changes for Sports Marketers
• Other Technology Beyond the WWW Has also Played a Role
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Closing CapsuleClosing Capsule
• Virtually Every Sports Marketer Today Has Its Own Web Site
• There Are Content Sites, Team & League Sites, Commerce Sites, and Gambling Sites
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Closing CapsuleClosing Capsule
• Web Sites Can Provide a Revenue Stream– Advertising and Sponsorship– Subscription Fees– E-Commerce
• Other Sources, Depending on the Type of Web Site, Are Available
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Closing CapsuleClosing Capsule
• The Most Common Applications for a Sports Marketer’s Web Site Are:
– Provide Information– Facilitate Distribution– Enhance Customer Relationships– Facilitate Routine Operations