Sports Sales & Sponsorships

Module 3 – Activity

1.  Provide a 2-3 sentence summary of relationship marketing as it is applied to each of the Four P’s (2-3 sentences per P).  In other words, how might a marketer focus on each of the Four P’s when considering the relationship value of a customer? Remember to summarize in your own words.

2.  In your own words (after reading your textbook), briefly explain the connection between fans, media and sponsors. What is the single most important step in this interaction? 

3.  List the four components of a customer focused sale. What is involved for each component?

4.  Customer s are looking for a return on their investment of __________ and _________. 

5.  What is the difference between focusing on entertainment and focusing on experience?

6.  What are the four ways customers are like “guests” according to the Disney Magic Marketing Formula?

7.  Other than the “guest” philosophy, what can sport organizations or sport businesses learn from Disney’s marketing or business practices.  Perform research of at least 3 sources and apply what you learned about Disney’s successful practices to a sport organization/business of your choice. 

Requirements:  1-2 pages total, 3 plus sources of Disney research, assessment of sources (is it an opinion or direct source?), application of research to the sport setting.

Sport Ticket Sales

Chapter 5

Ticket Sales

Ticket sales = attendance

Attendance = following

Following ↑ sponsorship & broadcast contracts

Effectiveness = sales volume

Fans

Support team

Attract sponsors

Create media demand

Media

Provide coverage

Vehicle for sponsors to reach fans

Sponsors

Buy media time

Sales

Sell existing products at price, quality, performance acceptable to customers

Includes repackaging, modifications

Revenue producing

Identify customer, increase interest, persuade, culminate in action

Customer performance factors

Quality

Quantity

Time

Cost

Fit

Product focused vs. customer focused

Components of a Sale

Salable product

Awareness, interest, need, demand

Attitude

Approach of salesperson (work with the customer/listen vs. sell inventory)

Leads

Identify prospects

Past purchasers, referrals, buying lists

Segment by education, income, home ownership, age, lifestyle

Equity

Both parties benefit from agreement

Customers

Current customers

Most valuable

Most cost effective way to increase sales

Increase frequency

Light, moderate, heavy users

Loyal customers

Spend more, refer, cost less to do business with

Past customers

Identify reasons for defecting

Potential customers

Low conversion rate to customers

High cost to generate awareness and interest

Butterfly customers

Switch even if satisfied

Customer Relationship Management

Turning customer knowledge into revenue

Customized email communications

Speak to fans in manner relevant to them

Track ROI (response to offers)

Open rates, click through, revenue

Lower cost than direct mail, more immediate (few hours vs. few weeks)

Frequency and relevance

Archtix

Database system

List of buyers and prospects

Purchasing histories, preference, notes

Why people buy

Economy, trends, performance, emotional attachment, identification, social interaction, star factor

Fan identification

Social identification

Trend

Progression of rationale

Individual motivations (fan identification, enjoyment)

Social/community motivations

Business related reasons

Increasing expenditures along progression

Sales Presentation

Information to be shared

Provide new information

Risk of overwhelming prospect

Full menu marketing

Product variations, different price points

Option for everyone

Create a unique & memorable impression

Strategies & Methods

Direct Mail

No opportunity to explain (self-explanatory, clear)

Good response rate is 2%

Can be personalized

Ticket sales materials

Email messages

Annual report for stakeholders

Sponsors

Ticket plan holders

Telemarketing

Non face to face contact

Inbound/outbound

Focus on high yield accounts

Outcomes

Sale, no sale, continuance, advance

Personal Contact

Sampling, trial memberships, open houses

Data based marketing

Quick changes in trends, be proactive

Relationship marketing

Buyers market

Alternative suppliers (ticket brokers, resellers) as competition

Benefit selling

Create new benefits or enhance existing benefits

From focus group research

Why customers defect, what benefits they want

Flex Book

USP – not restricted, minimize effect of performance, time, for teams with less demand and capacity

Strategies & Methods

Personal Contact

Sampling, trial memberships, open houses

Data based marketing

Quick changes in trends, be proactive

Relationship marketing

Buyers market

Alternative suppliers (ticket brokers, resellers) as competition

Benefit selling

Create new benefits or enhance existing benefits

From focus group research

Why customers defect, what benefits they want

Flex Book

USP – not restricted, minimize effect of performance, time, for teams with less demand and capacity

Unique Sport Products

Luxury Suites

Premium seating

12 or more seats

$150,000 – $275,000 per year for 5 plus years

Selling by trial sampling & open house

Personal Seat License

Right to buy permanent season ticket (guaranteed seat)

$500 – several thousand

New stadium construction

Can sell

Given back if not sold or season ticket not purchased

For as long as team in current venue

Chicago Bears (Skyline Suite)

151 suites @ $8000 per season/seat

Between club and luxury pricing

Club Seats

Premium seating with services not available to other seats

Corporate product

Loge suites/table top suites

Broader marketing appeal – one day trade up

On-field seating

All inclusive tickets

Group Sales

20 plus people

Incentives

Inclusion in organizational asset (perform at halftime) minimum purchase 100-1000

fundraiser

Ticket Department

Typical progression

Retention

Salary plus bonuses

Inside sales/telemarketing

8-12 entry level sales personnel

75-100 outgoing calls per day

Group sales

4-6 sales personnel

Relationship sales

Account executives

8-12 senior personnel

$4 in revenue for every $1 in salary/bonuses/benefits

Outsourcing

Tickets on the web

25% of tickets sold