Sports marketing

Sports marketing

what is sports marketing

Sport marketing is the set of marketing principles and strategies applied to the field of sport. It concerns products, services and organizations. The objective of sports marketing is to enable companies to promote a particular sport but also to promote something other than sport through sport.

Indeed, sport makes it possible to bring people together around a common passion and to overcome differences, to stimulate debate and to develop a strong sense of belonging for enthusiasts. The enthusiasm for this field has forced companies and marketing professionals alike to adapt their strategies to this new market. Thus, sport has become a means for companies to communicate their values, commitments and products. Today we no longer speak of sport but of "sportainment".

The different facets of sports marketing

The sponsorship

Sponsorship, also called sponsorship, is a communication technique that consists, for any organization, brand or product, in associating its brand with a sporting entity in order to achieve marketing communication objectives. Even if passive sponsorship (billboards, jersey sponsors, etc.) still exists, it has become more professional and is part of a communication mix where it is accompanied by operations in the field. Examples of sponsorship include Lacoste, which sponsors tennis player Arnaud Clément, Coca-Cola, which sponsored the 1998 Football World Cup, or the Caisse d'Epargne, which sponsors the French basketball team.

This sponsorship strategy has many objectives for a company. First of all, it must develop brand awareness through better and more intense visibility. In addition, this exposure can make it possible to reach a new target and thus trigger the act of purchase. The second and probably the most important objective of sponsorship today is the effect on brand image. Its aim is then to improve the brand's image, in particular by benefiting from a transfer of values from the sponsored person to the brand. Another objective of sponsorship is to develop a close relationship with the company's environment: staff, suppliers, distributors, customers, media, local authorities. It is then a question of distinguishing oneself from traditional modes of communication in order to develop a close relationship with these targets. Finally, sponsorship has a financial objective in the sense that it must have a lower contact cost than advertising.

The naming

Naming, also called naming rights, is a form of sponsorship aimed at giving the name of a brand to a sports support which can be an event, a club, a ranking, a league or a stadium. The first form of this strategy, event naming has become widespread in all disciplines except the Olympic Games, Football World Cups and Grand Slams. For example, the Heineken Cup in rugby, the Louis Vuitton Cup in sailing, the Areva Meeting in athletics, the Quiksilver Pro in surfing, the GDF Suez Open in tennis and the Andros Trophy in motor sports.

Then there is club naming, which is quite rare in major sports and practiced unevenly across sports and countries. However, examples of this strategy can be found in cycling with the Europcar or Cofidis teams, Formula 1 with the Lotus or Red Bull teams, sailing with Banque Populaire or Macif boats and some football clubs such as Bayer Leverkusen or Red Bull New York.

Less dependent on the news of a single club and more recurrent than event naming, league or league naming allows a continuous visibility of the brand. Thus, the English football league is called the Barclays Premier League and the Italian league is the Tim A Series. In the same idea, we find the classification naming with for example the Longines Jumping Rankings in horseback riding and the Emirates ATP Race to London in tennis.

Finally, the most developed form of naming is that of speaker naming. This strategy is widely used in England where 80% of stadiums or halls are branded and in Germany where twelve of the eighteen clubs in the football league play in stadiums that bear a brand name. In France, there are some uses of enclosure naming such as the MMArena stadium in Le Mans or the Allianz Riviera in Nice.

The patronage

Patronage can be defined as material support provided by a donor, also known as a patron, without direct compensation from the recipient, to a work or person for the exercise of activities of general interest, extending to the fields of culture, solidarity and the environment. Thus, unlike the sponsorship mentioned above, sponsorship is a one-way act and can therefore be considered a donation. It is a long-term investment for the patron.

The support granted within the framework of sponsorship can take different forms:

Financial patronage: the patron provides support to the beneficiary through cash donations. These may include subsidies, contributions, cheques or bank transfers.

Skills sponsorship: the patron brings his skills through the provision of one or more employees to the beneficiary structure. This is not voluntary work since the employees concerned receive a salary for their actions. Competency sponsorship is an excellent way to raise awareness of a cause among a company's employees.

Patronage in kind: this is when the patron provides the beneficiary with material, personal or technical resources. These goods will be entered in the beneficiary's fixed assets register (e.g. vehicle, furniture), goods in stock (e.g. sports equipment, computers) or services (e.g. maintenance, repair).

Technological sponsorship: this type of sponsorship requires the company's know-how and expertise.
Patronage, whether in a sporting context or not, is relatively underdeveloped in France and even in Europe. However, we can note that the sponsorship was practiced by FC Barcelona when the latter offered Unicef the main advertising space on its jersey for five years. This initiative was taken up again in France in 2009 when Ferrero France left its place on the jersey of the French basketball team in favour of the Secours Populaire. La Française des Jeux, through its foundation, is also heavily involved in sports sponsorship activities. In particular, it contributes to the development and integration of people with disabilities through sport. Finally, the last example of sports sponsorship is BNP Paribas, which supports the "Fête le mur" association created by Yannick Noah. The objective of this association is, among other things, to enable young people from disadvantaged neighbourhoods to access tennis.

Public relations

Sports marketing also includes public relations, also known as sports hospitality. Public relations are often used by companies wishing to improve their customer relations but also their visibility. One of the main objectives of public relations is therefore to improve the company's relationship with the actors who revolve around it, whether they are partners, employees in order to develop cohesion between different members, suppliers, public authorities or journalists.

In concrete terms, in the field of sport, public relations can take the form of the provision of private boxes in the stadiums. For the company, the goal is to provide its host with a different and exceptional experience. The host must feel privileged. For example, the Stade de France has 168 boxes from 20 m² to 40 m². Some are reserved for football and rugby federations, others are allocated to partner companies such as Suez, Bouygues, Danone, Axa or Orange. These boxes are privileged spaces to enjoy the sporting event. On the other hand, these services are often accompanied by other advantages: private parking, high-end catering, or even a complete tourist offer for the biggest events such as the 2014 Football World Cup in Brazil.

Sports law

With the advent of sport business and the importance of the sums involved, the legal aspect is a growing factor in the relations between the various parties.

The new practices

Specialized agencies

In the context of media rivalry, sport is now an essential vector. A phenomenon that affects all social strata and all ages, sport, and especially entertainment sport, i.e. the segment of high-level sport that best meets the requirements of television, is an essential vehicle for the sale of programmes for television channels and a means of communication for all other economic sectors. Indeed, the positive and evocative values of sport have led companies to intensify their communication through sport.

We have seen the development of specialized intermediaries such as Sport Market, Havas Sports & Entertainment France, Carat Sport France, Front de Neige, YE Sport, Sportlabgroup or Eventeam that aim to target any sport, event, champion or team that it is wise to partner with. Sport has become a means of communication in its own right and it is therefore necessary for companies wishing to use sport marketing as a means of communication to use these specialised agencies, which are familiar with all the specificities of the sport sector. They then allow the company to target and choose the best sports marketing strategy to adopt in relation to its communication objectives, target audience and values.

The new actors

In its early days, sports marketing was poorly developed and reserved for companies linked to the world of sport, such as sports equipment manufacturers. Today, sport has become a real market that makes it possible to put in place truly thoughtful communication strategies. Indeed, the time is no longer that of sports marketing, which is done according to the will of a great boss who is passionate about sailing or rugby. As a result, it is now attracting many new players. It is therefore no longer uncommon for companies with no connection to sport, such as the Caisse d'Epargne or Renault for example, to use this market to promote their companies, products and services.

In addition, new competitors from emerging countries are changing the situation. Indeed, the globalization of sport opens doors for emerging countries to organize major international sporting events and finance sports clubs. For example, South Africa, Russia and Qatar have been selected to host the Football World Cup while the Olympic Games will be held in Brazil in 2016. In addition, wealthy financiers from the United Arab Emirates, Hong Kong, Qatar and Russia own all or part of several European football clubs such as Paris Saint Germain or Monaco.

The importance of segmentation

Unlike consumer products, the sporting event can hardly guarantee constant and repetitive quality. These characteristics imply a diversity of targets, which is why segmentation comes into play in such a context. Understanding who consumers are and what differentiates them from each other is a fundamental issue for marketing managers in professional sports clubs. To do this, they must implement segmentation strategies that will allow them to identify targets and needs and make strategic investment decisions.

In order to achieve this segmentation, several techniques are available to companies. First of all, we find the classic segmentation based on social-demographic criteria (age, sex, etc.). This technique allowed the Baltimore Ravens to identify a segment they neglected, women, and thus create a club of 15,000 women with a standard membership. The second technique is based on the identification of the consumer through a sporting entity. (1997) observe that unconditional fans invest more easily in derivatives and thus ensure a positive commercial activity of the club. In fact, it is a major challenge for professional sports clubs to propose offers and commercial strategies. The objective is also to reach less identified spectators in order to create a link with them of an identity type. The latest segmentation technique used is based on motivation and in particular the eight emotional factors described by Wann et al. in 2008: group affiliation, aesthetic character, positive stress, self-esteem, entertainment, economic interest, escape and family.

In addition, a study conducted with spectators of a Canadian NHL team identified several groups of individuals who can help brands segment and implement sports marketing strategies. We then find the super-spectators who seem relatively easy to satisfy and who are seduced by many facets of the event; the social spectator who wants a quality show at affordable prices and with infrastructure and grouping facilities that allow him to meet and discuss with people; and the hedonistic spectator who seeks the experience and excitement that a sporting event provides.

Marketing of teams and sporting events

According to various authors and organizations, the marketing of events and sports teams is defined as "the design or development of a thematic activity (occasion, display...) or the presentation of a sports event to promote a product, a team, a cause, or an organization. In other words, it can be defined as follows: Event and sports team marketing is the marketing strategy that is designed or developed as a "live" activity, with a specific theme. This type of strategy is mainly used as a means of promoting, exposing or presenting different things, such as a sports team, a sports association, among others. There are various events that can clearly serve as an example for this concept, such as the Super Bowl, the Olympic Games, the UEFA Champions League and the FIFA World Cup.

The Super Bowl is an example of this concept because it is a massive sports event organized by a sports association, the NFL, which seeks to promote the event itself, the sport itself and thus the various American Football teams. The way this event is promoted is mainly through sports television and radio, but also through contracts signed with other companies to promote and broadcast the event. For example, in Mexico, the NFL has signed a contract with a Mexican cinema, Cinemex, so that some of the most important games of the event will be broadcast in its various cinemas. Thus, the NFL was able to promote the event in its country, on national television, but also had the opportunity to broadcast the event on a large scale in foreign countries. This means more audience, and thus achieving the NFL's goal of promoting the sporting event and the teams involved.

Product Marketing through Sport

"Marketing through sport" is a concept that has been in use since the 1980s, but has gained in importance over the past two decades due to the growth and expansion that different types of sports have experienced since then. "Marketing through Sport" is a marketing strategy that can be used in sports in two different ways. First, the use of marketing and advertising can be done through sport or through the sports club. In the first case, the use of marketing is the responsibility of the different sports associations, while in the second case, the responsibility falls on the different sports clubs. In this way, all marketing and advertising through: sport and sponsored clubs, corporate events, licensed products, broadcaster advertising, field advertising (signage, clothing, equipment...), game promotion, promotion using players, clubs, leagues or under development" are business opportunities. The particularity of sport is that "sport is the only entertainment where, no matter how many times you come back, you will never know the end in advance." This unique fact is used by marketing companies as an advantage: every time the public attends an event, they will see the ads over and over again, providing a wide range of opportunities for the different companies that operate in this field.

In addition to product marketing, sport also allows corporate sponsors to promote the services they provide at events, such as the Atos Digital Services company responsible for IT infrastructure (cloud, cybersecurity, etc.) for the Olympic Games.

Sponsorship of events

The concept of providing accessories for a sporting event stems from the invention of sport. Indeed, the fact of supplying jerseys or balls during a "big" sporting event is a symbol of quality and reputation of the brand. Let's take the example of Slazenger, who is the very symbol of tennis partnership, as they have been serving the balls of the Wimbledon Grand Slam tournament for over 100 years now (editor's note: Slazenger has been one of Wimbledon's official sponsors since 1902)

League sponsorship

A significant example to represent the concept of marketing through sport is the English bank Barclays associated with the professional English football league: the first league. Indeed since 2001 Barclays has been sponsoring the first English league at £120m per year. Through this marketing strategy, Barclays Bank promotes the qualities of its brand and the services it provides.

Turkish Airlines has established a sports marketing strategy involving top sports teams, players, and sports associations including Manchester United, FC Barcelona, Euroleague basketball competition, NBA player Kobe Bryant and tennis player Caroline Wozniacki.

Another example of sports marketing is the renewal of the contract between Adidas and the Mexican Football Federation (FMF). In August this year, Adidas CEO Herbert Hainer and FMF President Justino Compeán announced the renewal of the contract to allow Adidas to continue to produce and design the Mexican team uniform until 2018. Sports marketing is a marketing strategy in which companies are linked to sports products or services to promote their brand through design, production or other resources. In this case, Adidas, which is completely linked to sport, is a company that uses sport marketing as a strategy, designing the uniforms of the football team and therefore its brand is represented every time there is a jersey game. In addition, the jersey sets are a real showcase for brands. These are elements of sportswear that have a strong power of communication.

Advertising at sporting events

Today, advertising has invaded the fields of most sports. Indeed, when you watch a football match for example, you see a large number of advertising boards around the stadium that allow fans to place passive products. Unconsciously, we inevitably watch these ads and during moments of more or less intense emotions (goal of your favorite player, victory of your country in the World Cup...), this can influence the perception of the potential consumer, who will want to buy these products.

In addition, athletes' jerseys are covered with one or more brands depending on the players and disciplines. In football, a player's jersey can include up to ten different brands that sponsor the club. He also wears equipment from his personal sponsor. In tennis, the number of brands on a jersey is lower in most cases. For Rafael Nadal, for example, his clothes are from a single brand, Nike. As in football, he has his personal equipment from another brand, his Babolat racket

During broadcasting sports events

To illustrate this point, we can use the example of the Super Bowl. Indeed, at the halftime of the American football final, the various brands are competing for the few minutes of advertising available. As this game is one of the most watched sporting events in the world, it is not surprising to see the price of a second of advertising soar ($150,000 per second).

Another example is the French tennis event Roland-Garros. During this tournament, the best players in the world are present, which encourages fans of the little yellow ball to gather in front of their TV sets. Advertisements during matches allow event sponsors, such as Peugeot or Perrier, to promote their products during the many advertising breaks.

Using the image of world-renowned athletes

Another example of marketing through sport is the strategy used by Gillette to promote its hygiene products, through the athletes who represent each sport on television. Gillette uses football figures such as Lionel Messi or Thierry Henry, tennis with Roger Federer and golf in the person of Tiger Woods. In the commercials, these celebrities appear using the company's products and explain that these products produce exceptional results. The aim is to encourage consumers to buy this product to identify with their idol and guarantee success for users of these products. It is a clear example of sports marketing in the sense that Gillette does not rely on 1 but on 3 different sports to target the widest possible audience, football and tennis being 2 of the most practiced sports in the world.

Limitations

Sports marketing, in its various forms, is increasingly used, but it has several limitations. First of all, it can only be effective if it is part of a coherent mix that complements traditional means of communication. Thus, sports marketing must be adapted to the company's overall strategy and coordinated with other means of communication. Moreover, it is still difficult to assess the real impact of sports marketing actions on a company. However, it is not very suitable for creating a buying habit, transmitting the characteristics of a product or making the company's action known.

Finally, in sports marketing, the choice of the sports entity, whether it is an athlete, a team or an event, is very important. Indeed, a negative image of the partner entity can have consequences on the brand. For example, the doping cases of the Festina cycling team or the situation of the French football team during the 2010 World Cup had negative impacts on relations with partner brands, which are then associated with its negative events.