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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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What?What?

• What Is the Site’s Core Purpose?

• How Will It Impact the Target Market?

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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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Types of Sites in Sports MarketingTypes of Sites in Sports Marketing

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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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Web-Based ObjectivesWeb-Based Objectives

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Provide InformationProvide Information

• Information 24/7

• No Geographic Limitations

• Can Drill Deeper than Traditional Media

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Provide InformationProvide Information

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Information-Based Web SitesInformation-Based Web Sites

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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 (your.name@lakers.com)

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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

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Closing CapsuleClosing Capsule

• Other Technology Beyond Internet:

– Mobile Technology– Virtual Imaging– EFT– Interactive TV– WiFi– GPS