Sports marketing
[21] A practical marketing example of this is the National Lacrosse League mandating players to attend receptions of restaurants who sponsor the team.
Also, with niche sports shown to attract a different type of consumer,[21] these companies desire to increase their public awareness within a specific target market.
Direct benefits to leagues, teams, and athletes include revenue from tickets, media rights, and sponsorships.
Brands involved in sponsorship activations have the opportunity to come into contact with their fan base and enjoy the resulting commercial benefits.
A high level of corporate hospitality, with gourmet dishes, the possibility to meet players/riders and racers, and privileged viewing positions, is an excellent way to tease high-value customers or to hold less formal business discussions in a more exciting context than the office.
Outmoded inflexible contracts can leave little budget for the all-important activation, and with fans choosing rival unofficial channels for gossip and insider information, the rewards can be hard won.
[29] Major sports brands compete to link up with the best marathons in the world, the test for excellence in ‘running’, in what is a genuine showcase for strengthening its marketing strategy to its target audience.
They are not title but technical sponsors, but these runs are popular and are not to be missed events for these brands, which create specific advertising campaigns to one of the few competitions that brings together professionals and amateurs under the same chrono.
[32] Another international example of marketing products through sport is Adidas' sponsorship of FIFA, which includes the company supplying the balls used in the World Cup and having its logo on the side boards along the play-field.
In 2011 Nike agreed to become the official apparel company of the NFL in exchange for around $220 million per year, a deal that has been extended through 2019.
In this case apparel companies Nike, Under Armour, and Adidas, which are all completely related to sports, design the uniforms of these teams and in this way, promote their trademarks every time there is an event.
[37] Apparel companies also sponsor professional athletes such as Kevin Durant who receives $30 million per year from Nike.
Roger Federer holds agreements with Nike, Wilson, Rolex, Mercedes-Benz, and Gillette, worth a sum close to $60 million each year.
LeBron James’ contracts with Nike, Beats by Dre, Coca-Cola, Kia, McDonald's, and Samsung accrue the NBA player more than $40 million per year.
[39] Peyton Manning meanwhile holds sponsorship agreements with companies including Buick, DirecTV, Gatorade, Nationwide and Papa John's worth in sum approximately $12 million per year.
Fellow NFL quarterback Drew Brees earns $11 million each year from his contracts with Wrangler, Vicks, Verizon, Nike, and Microsoft.
Included among Nike's clients are Federer, Woods, golfer Rory McIlroy and tennis player Rafael Nadal while Gatorade has deals with NBA star Dwyane Wade, Serena Williams, and Peyton and Eli Manning.
The money therefore comes from local councils with a remit to increase participation or from public health sector which wants to decrease the cost of healthcare.
[45] Sport businesses need to communicate and participate in discussion with their customers in order to create, sustain and improve relationships.
[46] Existing studies offer insightful information into relationship and the general consensus is that sports businesses can benefit from its use.
[48] In order for sport businesses to be successful in their goals, they should view their customers as partners for life rather than here and now consumers, and attempt to understand their ever-evolving needs, desires, expectations and values.
By doing so, sport businesses are able to maintain and enhance their fan base easily than through the more commonly used short-term transactions such as merchandise and ticket sales.
Used as a global communication and interaction channel, social media has changed the conventional customer relationship dynamics.
Effective utilization of social media enables sports brands to provide their customers with the best possible experience and expand their competitive advantage in marketing.
[55] Social media enables sport businesses to involve customers in the marketing process by receiving feedback and ideas, which can then be implemented in future products and services.
Professional leagues, teams, and athletes have started using social media as a part of their marketing strategies during the recent years.
The most popular social media platforms are Facebook and Twitter, but athletes and teams are also using sites including Instagram and Snapchat for marketing.
[61] Many teams have incorporated sponsorships into their social media strategies, such as the Minnesota Vikings “Touchdown Tracker” Instagram image, which was sponsored by FedEx.
The Cleveland Browns also displayed sponsorship integration in their tweets recapping touchdown drives, sponsored by Cooper Tires.
[65] Many athletes including Kobe Bryant, Russell Wilson, and Rafael Nadal have taken advantage of social media to increase their followers and improve their brand recognition.
