CONTENT/TEACHING OUTLINE COMPENTENCY: 5.00 OBJECTIVE: 5.03 Explain the function of promotion in sports and entertainment marketing.

Discuss the use and importance of sponsorships and endorsements.

A. Define sponsorship and sponsor. 1. Sponsorship is the financing of a sports or entertainment entity (athlete, league, team, concert, or event) by a business in return for recognition affiliation. 2. A sponsor can be a business, person, or organization that finances a sports or entertainment entity. This financing can be in the form of money, products, equipment, services, or any combination of the four. B. Discuss reasons for sponsorships. 1. Increase a companys sales and profits through affiliation with sports or entertainment entity. 2. Increase market share for existing products or services. 3. Introduce new products or services. 4. Increase brand awareness and company image. 5. Enter and reach new target markets. 6. Build and maintain relationships with consumers. 7. Build and maintain goodwill within the community. 8. Entertain existing customers, potential customers, or employees and their families. C. Discuss types of sponsorships. 1. Barter sponsorship is a form of sponsorship whereby the company does not finance a sports or entertainment entity with money only. A company will provide products, equipment, or services in return for their affiliation with the sports or entertainment entity. Barter sponsorship is also referred to as inkind or trade. Companies might choose to combine money and barter sponsorship. For example, a company decides to sponsor a little league baseball team. The company (sponsor) pays for the teams uniforms and equipment. In return, the sponsor gets to place their name and logo on the teams uniforms. 2. Endorsements, also called testimonials, are a personal recommendation regarding the use or quality of a good or service. Consumers are more likely to purchase a good or service if a celebrity endorses it. For example, Dennis Franz uses Nextel telephones in a commercial. 3. Naming rights are contractual agreements between a sponsor and a venue or event. A company or organization will sponsor a sports or entertainment facility or an event. In return, the company or organizations logo will appear in affiliation with the facility or event. For example, The FedEx Orange Bowl in Miami, Florida or The Coca-Cola 600 at Lowes Motor Speedway in Charlotte, North Carolina.
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CONTENT/TEACHING OUTLINE COMPENTENCY: 5.00 OBJECTIVE: 5.03 Explain the function of promotion in sports and entertainment marketing. Discuss the use and importance of sponsorships and endorsements.

4. Personal services agreements are contracts between a company and a sports figure or entertainer for the endorsement of a product or service. The contract includes details of the duties and responsibilities for each party involved.

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CONTENT/TEACHING OUTLINE COMPENTENCY: 5.00 OBJECTIVE: 5.03 Explain the function of promotion in sports and entertainment marketing. Discuss the use and importance of sponsorships and endorsements.

Resources Printed References: Sports and Entertainment Marketing, pp. 79-83, 89-97. Marketing, pp. 212, 301. Suggested Activities: NASCAR sponsorship activity Students are to select 20 sponsors for a new racing team. These should not be present NASCAR sponsors. The NASCAR website (www.nascar.com) has a link providing present sponsors. All selected sponsors should have the same target market. Students are to identify their target market and provide rationale for their choice of sponsors. Naming rights for venues presentation Students are to select a venue with a naming rights contract and research the following information to place into a PowerPoint presentation: terms of the contract (number of years/dollar amount), teams playing at venue, capacity, amenities of venue, and views of venue. Naming rights information can be found at www.sportsvenue.com. Search engines can provide venue sites. There is a 5.00 project at the end of this competency. Websites: www.nascar.com www.sportsvenue.com Other Resources: 5.03 PowerPoint Presentation

Teacher Notes

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