Sports Marketing Exam Review 2025 PDF

Sports Marketing Exam Review 2025 Worth: 20% Breakdown: True or False​​ 20 marks​ ​ Short Answer​ 6 questions – 30 marks Multiple Choice ​ 25 marks​ ​ Case Study​ ​ 1 (4 questions) – 20 marks You are responsible to review all material but...

Sports Marketing Exam Review 2025 Worth: 20% Breakdown: True or False​​ 20 marks​ ​ Short Answer​ 6 questions – 30 marks Multiple Choice ​ 25 marks​ ​ Case Study​ ​ 1 (4 questions) – 20 marks You are responsible to review all material but should focus on the following: Pratice Questions Unit 1 Target market: a specific group of consumers to whom an organization directs its marketing program because they want to attract these customers Examples: teens, parents, seniors, and extremely wealthy goods vs. services Goods: tangible products such as sports equipment Services: intangible products such as theatre tickets demographics vs. psychographics demographics: Statistics that describe a population in terms of personal characteristics. Age, income, occupation, gender, ethnic background and educational levels Psychographics: Statistics that describe a population in terms of psychological characteristics.Hobbies (photography, fitness), social activities, lifestyle, interests, attitudes marketing concept: the idea that organizations need to satisfy their customers while also trying to reach their organization's goals promotion: How the goods/services are communicated to the consumer cross-promotion: any form of communication through which one industry relies on another industry to promote its product E.g.. Celebrities use their appeal to persuade viewers to buy tickets to their movies through late-night tv, magazine interviews gross domestic product (GDP): is the value of all goods and services produced within the country consumer loyalty: risk: there is a chance of a financial risk or possible loss examples include:  ➔​ Movies or sporting events that do not attract audiences ➔​ Poor weather conditions ➔​ Health reasons cancels a concert ➔​ Lawsuits for falling at an event or being injured Companies handle risk through insurance, proper employee training and safety considerations when event planning competition: based on price follows the concept of demand elasticity and available substitutes synergy: mass marketing: Involves promoting products with one key message directed to everyone. patent: Words, names, symbols, sounds or colours that distinguish goods and services are registered copyright: Legal protection of a creator’s intellectual property or products ex. books, films, music, and video games are copyrighted for the life of the author plus 70 years trademark: Words, names, symbols, sounds or colours that distinguish goods and services are registered The Marketing Mix (4 P’s of Marketing) A plan of action needs to be developed and focus on the target market Product is the what. Place is the where. Price is the how much. Promotion is the communication. Price vs. Non-Price Competition Non-Price Competition ​ Price isn’t the only way to compete ​ Non-price competition involves factors such as quality of service or image ​ Companies attempt to create loyalty by personalizing a service and/or building ongoing relationships Examples: very popular recording artists can charge more for tickets versus less popular artists, or golfing at a prestigious golf course Price  ​ Manufacturers will supply more of a product when its price is high because they will make more profit ​ Manufacturers will supply less of a product when the price falls because they will lose profit Law of Demand -​ Prices fall, demand will rise -​ Prices rise, demand will fall Law of Supply -​ Prices are high, supply will rise -​ Prices fall, supply will fall Property Ownership & Intellectual Property Rights Copyrights Legal protection of a creator’s intellectual property or products Books, films, music, video games are copyrighted for the life of the author plus 70 years If you wanted to use a clip from a copyrighted film for a commercial you would be required you to get permission and pay a “royalty fee” Patents Patented inventions are protected from others making, using, importing, selling or offering them for sale Granted for 20 years A patented product could not be used without the inventor’s or owner’s permission E.g. The domain of a website is patented The code to Facebook (The Social Network accurately depicts this) Trademarks Words, names, symbols, sounds or colours that distinguish goods and services are registered Trademarks can be renewed over and over again Consumers can expect certain quality and service from a trademarked product. Companies image, reputation and profits are linked to its trademarks E.g. The singer Beyoncé recently won the TTAB – Trademark Trial and Appeal Board, which granted her rights to the brand name of her eight-year-old daughter Blue Ivy Carter. Core vs. Ancillary (Augmented) Products Core -The main product, such as the sports event, movie, stage show or book Ancillary -A product related to or created from the core product Unit 2 sports marketing: all the marketing activities designed to satisfy the needs and wants of sports consumers professional athlete: an athlete has the will and ability to earn an income from a particular sport amateur athlete: a person who does not get paid to play a sport product mix: The total assortment of products that a company makes and sells (eg. Nike carries several lines of shoes like running/lifestyle to make its shoe product mix market segmentation: a way of analyzing a market by specific characteristics to create a target market franchise: an agreement or contract for a sports organization to sell a parent company’s goods or services within an area (example: NBA) grassroots marketing: To gain support on a local community level, This helps build relationships between the community and the team, Charity and fund-raising events are examples An opportunity cost is the loss of an opportunity passed up to receive something in exchange. An example of a decision ​ Each decision consumers make keeps those employees for the event employed in jobs (e.g. ticket agent, parking attendant, vendor) ➔​ Each decision the consumer makes involves an opportunity cost the loss of the opportunity that is passed up in order to receive something in exchange Unit 3 Elastic Demand – change in price will affect demand Inelastic Demand – the price has no effect on demand, this occurs when the product is a necessity, there are no substitutes, the price increase is not significant relative to the customer’s income and there are time constraints market share: the percentage of the total sales of all companies that sell the same type of product i.e. Gatorade may have 80% of the market share of all sports drinks point of difference: is created which is a unique product characteristic or benefit that sets the product apart from a competitor’s product sample: A number of people who are representative of a study’s population, Must reflect all groups data mining: Process of collecting data from one or more existing databases and looking for relationships among the data market research:the process of systematically collecting, recording, analyzing, and presenting data related to marketing goods and services -​ Product development, pricing, promotional activities, distribution, and customer satisfaction are areas where information generated by market research can be beneficial observation: requires a researcher to watch actual behaviours and record them ★​ Allows for freedom of interpretation  ★​ E.g. Watch customers to see what they do when they purchase golf balls experiment: designed for research has 2 parts, or variables Independent variable – changed or manipulated Dependent variable - affected by the change made by the independent variable Example: changing ticket prices to a minor league baseball game (independent variable) to see if ticket sales increase (dependent variable) survey: Involves asking questions of participants in a study, Want to gain insight into customers’ thoughts and opinions Qualitative Research Data – reported in paragraph form, only inferences can be drawn Quantitative Research Data – reported in graphs, charts with analysis or interpretation Primary Research is original research conducted for a specific marketing situation Three types of research methods: o​ Experiment o​ Observation o​ Survey Secondary Research is published data that have been collected for some other purpose -​ May come from internal company data like sales reports or external data such as books, magazines articles, the Internet -​ Secondary research is conducted before primary research because secondary data may actually answer all or part of a research problem or question ​ Pricing Strategies Prestige pricing: pricing based on consumer perception, Very expensive sports equipment will be priced well above average market price to attract consumers who may judge a product’s quality by its price Odd-even pricing: pricing goods with either an off number or an even number to match a product's imag, Odd-priced items, $25.99 suggest a bargain, even-priced items reflect a quality item, more expensive goods priced with even numbers $100 Target pricing: pricing goods according to what the customer is willing to pay Markup pricing: the difference between the retail or wholesale price and the cost of an item Cost-plus pricing: pricing products by calculating all costs and expenses and adding desired profit Product line pricing: involves setting different markup percentages for each product so that the average markup is achieved Non-price competition: competition between businesses based on quality, service, and relationships Price lining: Bundle pricing: selling several items as a package for a set price i.e. products purchased individually would cost more than the package price, Customers benefit because of the lower price, sales are generally, higher and more products sold Example: Xbox Bundle Loss-leader pricing: pricing an item at cost or below cost to draw customers into the store, The idea is that customers will buy other products while at the store, total purchase will more than cover the money lost on the loss leader Yield-management pricing: pricing items at different prices to maximize revenue when limited capacity is involved, Sports arenas have limited seating, businesses set seat prices differently to maximize revenues Discounts & allowances: Used to change the published price, Manufacturers offer discounts for buying in large quantities or buying prior to the buying season, Some allowances can be trade-in, which is where you can trade in an old model for a new one, the price reduction would be called a trade-in allowance Price fixing: an agreement between market participants to collectively raise, lower, or stabilize prizes to control supply and demand. It is an illegal practice for competitors to conspire to set the same prices. Price skimming: is a pricing strategy in which a company starts by charging the highest price that customers will pay. Product Life Cycle Stages There are five stages in the product life cycle Introduction Stage-When a product is introduced in to a market it is known as a product launch -​ The most expensive stage of the five stages -​ price skimming can be involved as prices are very high to cover R&D costs -​ Toughest part is convincing retailers to carry the new product Growth Stage-The product is highly visible in either daily life or in the media -​ Sales and profits are rapidly rising -​ Manufactures of the product will advertise heavily during this stage -​ This is the stage where the product will catch on or fail -​ To remain competitive at this stage the product may be improved by adding new features or new products in that line -​ Adding distribution outlets is important as well Example: Nintendo Wii – the first system to get you up and to move, now you have Kinect, PlayStation Move Maturity Stage-Sales in this stage slow down -​ Marketers look for new buyers for the product or make changes to distinguish it from competitors' products (repositioning/rebranding) -​ Manufacturers have recouped the major costs associated with the introduction stage Decline Stage-When a company/product sees a decrease in profits, or when sales begin to fall -​ Technological advances can cause an entire product category to enter the decline stage -​ Some products are discontinued – usually because of new technology Examples of this - older iphones, landline telephones, CDs A company can bring a product back to growth/maturity stage by: repositioning/rebranding ​ adding a new feature, ​ new advertising campaign or ​ a small change in price Decision Point Stage Case Study Type Questions identify a target market identify demographics/psychographics/geographic characteristics develop a promotional mix determine sponsorships identify licensing and merchandising opportunities Example:Nike's target market for a movie collaboration could be active, sports-oriented individuals who are passionate about performance and style. Demographics: Ages 18-40, both male and female, with a focus on those who participate in sports or fitness activities. Middle to upper-middle-class income levels. Psychographics: Motivated, performance-driven, fashion-conscious, and value innovation and quality. They prefer active lifestyles and are often early adopters of new trends and technology. Geographic Characteristics: Primarily urban and suburban areas with high access to gyms, sports clubs, and outdoor activity centers. Targeting cities with large fitness or sports communities. Pricing Calculations Dollar Markup: Sport Chek purchases shoes from Adidas for $35.00 each. They will sell the shoes for $130.00 each. 1.​ What is the dollar mark-up? (show your work) $130.00-$35.00=$95.00 Percentage MarkUp: Golf Town purchases golf clubs from Top Flight for $59.00 each and resells them for $99.50 each. 1.​ What is the percentage mark-up? (show your work) $99.50-$59.00=$40.50 $40.50/$59.00=0.6864407 0.6864407x100=68% Average Markup: Wilson sells a variety of Tennis Rackets at local sports goods stores. Version 3.0 is marked up 140%, Version 4.5 is marked up only 125%, Version 5.0 is marked up 175% and Version 7.0 is marked up 210%. Wilson uses product-line pricing. What is the average markup of all Wilson Tennis Rackets? (show your work) 140+125+175+210=650% 650/4=162.5% The average markup is 162.5% Cost-Plus Pricing: HOKA is manufacturing a new shoe for next year. Expenses of manufacturing the shoe is $45.99 per pair. HOKA uses cost-plus pricing. If HOKA wants to make a $160.00 profit, what is the price of the new HOKA shoes? (show your work) $160.00+$45.99=$205.99 The price of the new HOKA shoes is $205.99 Cost of Goods Sold (COGS): It costs the company $20 each stick to purchase What is their “Cost of Goods Sold (COGS)”? $20 x 10 = $200 Sales Revenue Net Profit/Loss Unit 4 brand: a name, word(s), symbol or design that identifies an organization and its products tradename: legal name of a company such as Nike trademark: a device that legally identifies ownership of a registered brand or trade name types of brands manufacturer branding multi-product branding: Used when the manufacturer uses one name for all its products Advantage: A strong promotional campaign can be developed to create an image for all products, The brand extension uses an existing brand name for an improved or new product eg. Nike has Nike soccer, Nike Basketball, Nike golf and many more) Multi-Branding: Each product in a product line has a distinctive name, This strategy is used for products that target different consumers Advantage: since each line has its own image, if it fails, its failure will not affect the other products produced by the manufacturer Disadvantage: cost, separate promotional plans are needed for each product which can be very expensive Co-Branding: Combines one or more brands to increase customer loyalty and sales for each producTwo different manufacturers may partner to produce one product Examples: Tim Hortons Visa Collab, Diary milk collab with Oreo, yo crunch with M&Ms intermediary brands:- carries a name developed by the wholesaler, retailer, or catalogue house. generic brand: represents a general product category and does not carry a company or brand name example: No name-brand brand equity: the perception of a product's added value as a result of its brand name. A highly recognizable brand has a high level of brand equity. signage: licensing: an agreement that gives a company the right to use another’s brand name, patent, or other intellectual property sponsorship: promotional vehicles that financially support sports events sponsors: premium sponsor: A company must pay more to be the official or title sponsor, Receives more options and opportunities, A company can sponsor for a length of time or just one event (ie. XYZ halftime report) Examples entitlement: one major sponsor for an event facility entitlements: The company purchases the promotional rights to an entire stadium product exclusivity: only one product in a product category is granted sponsorship Brand Equity: Brand equity is an intangible memory. The benefits of brand equity include: ​ Brand name recognition or awareness ​ Customer loyalty ​ Perceived quality ​ Strong emotional or mental associations Value of a brand beyond its actual functional benefits when a brand becomes extremely popular, its value becomes a competitive advantage (brand = quality) Endorsement Strategies: Using a celebrity/public figure to represent and promote a company and that company’s products, Companies pay sports figures to use their images in print and broadcast media as well as on packaging, billboards and collectibles -​ The Public thinks “If the sports figure likes the product, then it must be good” Endorsement Considerations Association -​ no direct relationship between the product and the athlete -​ hoping athletes will help sell the product (ie. Golfer selling KFC) Demographic Match -​ choose a sports figure that matched the demographic profile of its customer base Successful Careers -​ top sports endorsers come from all sports and they all have successful careers -​ players who “look promising” attract deals -​ some compensation is not just money but are given goods and services Image -​ endorsements sell products when the endorser has a positive image and is popular -​ endorsers must be role models in the public eye and their contract has clauses which will release them if their image becomes tainted Unit 5 promotional advertising: advertising with a goal of selling an item being promoted, it increases sales institutional advertising: advertising with the goal of developing goodwill or a positive image, used to thank fans at the end of a season or just remind consumers about a company publicity: is the free mention of a product or company in the media public relations: companies have a public relations department that holds activities that promote the company’s image and communications company has with its employees, customers, investors, and the public ​ Different from advertising because a company does not pay for the exposure it gets nor does it have control over what is said press kit: consists of promotional materials that can be used by the media such as fact sheets, background information ,press releases and videotapes press release: is a newsworthy article that provides basic information to answer questions about a subject, such as who what, where, when, and why. personal selling: is direct communication by a salesperson to potential customers either in person or by telephone pre-approach strategies: agents will identify the positive aspects of their clients and then approach potential companies about endorsement opportunities entertainment marketing: is the process of developing, promoting and distributing products, or goods, and services to satisfy customers’ needs and wants through entertainment, or a diversion, amusement, or method of occupying time. Merchandise: Huge part of the entertainment industry Cross-selling: Selling additional related products tied to one name sole proprietorship: A short-term incentive to get consumers interested in buying a product, Owned by one person partnership: Owned by two or more people conglomerates: giant corporations or conglomerates (companies that have merged with or bought out other companies and absorbed them into a larger, more competitive business) media-based entertainment goods and services: films and music on DVDs and CDs, video and electronic games, books, magazines, toys, T-shirts, and concessions media-based entertainment services television shows, movies in theatres, concerts, and theatre performances recreation-based entertainment services: amusement parks, zoos, museums, and even snack bars location-based entertainment (LBE): Includes amusement, theme, animal and water parks Example: Disney World, Park hopes for impulse spending – buying without prior planning, LBE owners can cross-sell products in their parks syndication: selling television programs to individual stations, not networks. residuals: Actors collect payments every time a show is aired a number of times example: FRIENDS payola: an illegal payment by record companies to radio stations to persuade them to play the label’s records concessions:food and drinks sold and consumed at an event (concession is considered a service not a good AIDA Formula - Attention, Interest, Desire and Action attention: -​ must get the customer’s attention by getting through the clutter -​ colours, graphics, music, sound effects, and celebrity endorsements used to CAPTURE the audience’s attention -​ offer something for free -​ asking intriguing questions such as “what would you do for a granola bar?” -​ shock or flatter the consumer interest: -​ an ad must be able to hold the interest of the audience -​ if the ad does not answer the question “what’s in it for me?”the consumer will not keep reason, listening, or watching the ad -​ interest is created when the ad discusses the product’s features, rather than the benefits to the customer desire: -​ ads must generate a desire to learn more about the product or service or a desire to acquire it -​ teaser campaign or scented magazine inserts showing other enjoying the product or service are examples of ways to generate desire action: -​ the advertiser has attracted attention, created interest and simulated desire, therefore now the consumer should be thinking “I want to purchase this product” -​ the ad should tell the consumer what to do next, this is called a “ call to action” or “close’ - visit the website  - location of the store - toll-free phone number Types of Media - Print, Broadcast, Direct Marketing, Online Marketing broadcast: -​ radio and television are broadcast media used for advertising -​ radio is relatively low in cost and has the ability to communicate in many setting, such as in a car or at the beach, work, however, radio does not give a visual image -​ television allows for sight, sound, and motion however commercials are expensive -​ infomercial (special form of TV advertisement) -​ thirty minutes long and teach viewers how to use the product direct marketing: -​ many media used to communicate directly with consumers to make a sale -​ letters, flyers, postcards, telemarketing, or email online marketing: popular medium (one of the largest) -​ number of “hits” can be counted -​ however, NOT ALL members of a target market can be reached through this medium as not all people use each platform -​ banner ads, websites, or onlines promotions Sales Promotion -​ a short-term incentive to get consumers interested in buying a product -​ types of sales promotions that target consumers include: -​ coupons (money or percentage discounts at store - use BEFORE BUYING) -​ rebates (money or percentage discounts at store - use AFTER BUYING) -​ samples (free products for customer to taste or try out -​ premiums (items given away when you buy something else)  -​ contests (need to do something to win a prize) -​ sweepstakes (just enter your name for a chance to win) Steps in the Selling Process step 1 (approach) - first face-to-face meeting with the potential customer, goal is to establish a relationship (firm handshake, greeting, or a “may I help you” step 2 (determine needs) - through active listening, looking, and asking questions a sales person attempts to determine needs and sell them what they want step 3 (present the product) - show how the product meets their needs/wants by illustrating the most important features and benefits step 4 (overcome objections) - answer questions and turn negatives into positives, eliminate doubts and misconceptions step 5 (close the sale) - ge the customer to buy the product, should occur naturally step 6 (perform suggestion selling) - try to sell ancillary products that go with what the customer purchased step 7 (follow up) - further develop the relationship to generate repeat business How companies “create a buzz” limited release: only shown in a few theaters in the whole country to showcase them or create a “buzz” wide release: booked in thousands of theaters nationwide “how does an industry create a buzz?”, (creating interest through limited release) (like a movie being shown in limited theaters)