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Unique characteristics of sports marketing
Sports Marketing Chapter 3
Sports Marketing Chapter 3
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Overview
Ambush marketing “occurs when one brand pays to become the official sponsor of an event (most often athletic) and another competing brand to cleverly connect itself with the event, without paying the sponsorship fee, more frustratingly, without breaking any laws”(Sauer, 2002). Ambush marketing is something that every sporting event must deal with. From the vendor-selling knock off to the large corporation buying billboard space outside of a baseball park, these are all forms of ambush marketing. Most ambush marketing aims to associate itself with major events that have high sponsorship fees or that create exclusivity for their sponsors (Mullin, 2007).
The Problem
AT&T is one of Velocity Sports and Entertainments biggest clients. The problem that we are facing as their sponsorship activators is the threat of being ambushed. Currently we are experiencing some of the worst economic times and more companies are lowering themselves to become ambushers in order to save money. Companies who still see the value in sponsorships are seeking a way to protect their interests.
AT&T vs. Verizon
Currently Verizon wireless is the largest cell phone provider in the United States. This graph shows that Verizon controls 31% of the U.S. wireless provider market share.
Verizon has been increasing their competitive advantage over AT&T by introducing the Iphone to its arsenal and by providing high quality service for its customers. AT&T on the other hand has been dealing with network issues and has lost the exclusivity to the Iphone.
AT&T’s Current Sponsorship Activation With the NCAA Final Four
We have been creative in developing in what we consider to be a lucrative partnership with the NCAA. We have devel...
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...k down. If not we are willing to take them to court along with our partner the NCAA for violating the Lanham Act and being the first case to establish case law on ambush marketing. We need to protect our clients interests and these actions will help us do that.
Annotated Bibliography
McKelvey, S., & Grady, J. (2004). Ambush marketing the legal battleground for sport marketers. Sports Lawyers and Entertainment, 21. Retrieved from http://www.heinonline.org/HOL/Page?handle=hein.journals/entspl21&id=96&collection=journals
Sublime with rome to headline at&t block party as part of the big dance concert series during the 2011 ncaa men's final four. (2011, March 22). Retrieved from http://www.ncaa.org/wps/wcm/connect/ncaa/ncaa/media+and+events/press+room/news+release+archive/2011/announcements/20110322+block+party+sublime+rls?pageDesign=old+news+releases+template
Verizon Wireless is a joint venture between Verizon Communications out of New Jersey and the European-owned telecommunications company "Vodafone." Verizon Wireless is a wireless communication carrier that operates in the continental United States. Currently, Verizon Wireless provides wireless communication services to over 60 million customers nationwide including customers in Hawaii and Alaska. Its products include wireless voice and data services using the largest wireless voice and data network in the United States. Cingular Wireless is currently the leading cellular carrier when it comes to amount of customers on its wireless network. However, as Verizon Wireless continues to grow its market share as the United States' second largest wireless carrier, it ranks number one in total revenue collected as well as how it is viewed by Wall Street. Verizon Wireless' strong market position, perception of quality, and its proportion of income has a strong competitive advantage that would allow a small price increase--making the demand inelastic, "quality demand stretches very little in response to price change" (McConnell et. al, 2004).
In this scenario, the marketing activities of Prince Sports, Inc. will be examined. Prince Sports manufactures a large line of tennis, racquetball, squash, badminton and table tennis products. The company also manufactures clothing, bags and other accessories that would be useful to individuals in those particular sports. The company makes use of multiple different marketing strategies based on the type of equipment, level of expertise of the player and the type of media outlets that are available.
The supplier bargaining power relies mainly in Apple and Google Android phones, because they are the highest in demand smart phones on the market today. In addition, both of these companies have other cellular service providers like AT&T, Sprint, and T-Mobile to sell their phones. This creates little bargaining power for Verizon, which can only use their reputation and customer base as a driving force for their bargaining power. Simply put, without Apple and Google Android phones, Verizon would not sell very many phones. Therefore, Verizon must keep a very close relationship with its providers, especially the phone manufacturers. These relationships Verizon has is very pivotal in their overall strategy, because without these two phone companies, Verizon would most likely not be in the cellular service industry. Consequently, Verizon must keep a very healthy relationship with these phone companies, because they can decrease/stop the supply chain, which ultimately would
According to cnet.com, “AT&T and Verizon combined control more than 70 percent of the wireless market.” This means that these two phone companies are the peoples favorite everywhere. As of 2012, Verizon had 111.3 million customers and AT&T had 105.2 million customers. That makes a 6.1 million difference between the companies customers. Telling people that majority of the 70 percent wireless market control are Verizon users. On the Verizon website it says that they “Cover over 97% of Americans.” This shows that most people prefer Verizon because of how great it is to have. Having Verizon gives people LTE everywhere meaning that your phone will work faster on the internet than other phone companies. Only Verizon’s 4G network is 100% LTE. That is what makes them different than
Change is inevitable in any institution today due to the ever changing environment in which institutions operate. Schools, firms, and other different institutions have witnessed significant changes in the recent years in order to adapt to the prevailing changing environment. Change is very important, but it has to be done with great care to avoid leading to unwanted consequences. This paper focuses on one of the recent regulation change which has been adopted by the NCAA.
Division I intercollegiate athletic departments, especially those that are home to Football Bowl Subdivision (FBS) teams, increasingly resemble front offices of professional sport organizations in regard to their mission and business operations. With huge operating budgets, state-of-the-art facilities, world-class athletes, and multinational corporate sponsors, these sport businesses strive to produce winning teams and profitable events every season. The outsourcing of marketing operations and rights is common practice in American college athletics today. According to Li and Burden (2002), more than one half of all NCAA Division I-A athletic programs have outsourced some or all of their marketing operations and rights to a growing number of nationally prominent outsourcing agencies. Among the operations commonly outsourced are the production of radio game broadcasts, production of radio call-in shows, coaches' television shows, sales of media and venue advertising, sales of "official sponsorship" rights to corporations, and production and management of Internet websites, etc. (Li & Burden, 2002).
AT&T diversifies it’s promotions to grab different customers. AT&T is still in the market to grab every single customer out there. The same as Verizon it pops up different promotions, but AT&T has different promotions for different likes. It has a promotion for music, Samsung Galaxy, family plans, TV packages. Immediately on clicking on the AT&T the first thing that pops up is plans for every single device. Same thing as Verizon, AT&T has people smiling with their devices showing how happy they are with AT&T and their service.
Every sports fan hates to admit the fact that sports are simply business, but it is undeniable that sports are one of the most lucrative businesses in the U.S. Right now the market for women's professional sports is growing rapidly. The best way for women's sporting organizations to promote and sell this market is to align with previously established organizations such as the NBA, NCAA and the USOIC. Although joining with men's organizations is a difficult process that involves compromise, merging with these organizations helps to land big television contracts, gives greater publicity, and brings in endorsements, advertisers and investors. The lack of these benefits was among the key factors in the failure of the ABL. Inversely, these are the reasons for the successes of the WNBA and women's sports in the Olympics.
Channel Exposure- AT&T is adequate in its point of sales. They intend to match most competitors in using Radio Shack, BEST Buy, Walmart, Mall locations, high visible real estate traffic.
Mitten, Matthew J., James L. Musselman, and Bruce W. Burton. "Targeted Reform of Commercialized Intercollegiate Athletics." San Diego Law Review 47.3 (2010): 779-844. Academic Search Complete. Web. 17 Nov. 2013.
While there are some positives and negatives to sponsors, a line has to be drawn
Sports teams around the world value the importance of keeping their consumers (fans) happy and engaged. The NFL’s New England Patriots are very active in the community and have expansive social media sites and online tools to keep their consumers engaged and connected to all things related to the franchise. Over in Europe, the football franchise Manchester United has created a large following and making sure their consumers are engaged is one of the franchises’ main strategies (Emirates24/7). According to Forbes 50 most valuable sports teams of 2013, both Manchester United (#2 at $3.165 Billion) and the Patriots (#6 at $1.635 Billion) are included on that list. This paper will highlight how both New England and Manchester are identifying their consumers and how their activities are targeting those consumers.
Marketing companies know that by associating a product with an athlete it can drastically increase sales. Fig 1. Gaines, Cork. "... ... middle of paper ... ...
The telecommunications industry is of vital importance to the development of the information-based economy. AT&T need to supply access to cost efficient, timely and innovative telecommunications services.
In fact, some of the biggest threats to the company’s growth are the government’s regulation that increases the risk to the underlying business. In addition, the risk of losing the exclusive contract for the iPhone would be a major loss for AT&T. Most of the consumers choose AT&T because of their exclusive contract for the iPhone. Hence, this loss of business will significantly influence the AT&T's profitability and revenue. Moreover, the antitrust authorities play an important role on approved the merger of AT&T.