Sports is the major player in the sponsorship game, and even small companies can profit by tying in with local teams and events. This article tells how to make sports part of your promotion program.

Sports touches the lives of more people than any other promotional vehicle. Sporting events have become a prime entertainment phenomenon worldwide, and, as a result, corporate sponsorship is exploding. Sports tie-ins, endorsements, ads, and other promotional tactics have become the centerpiece of many corporate marketing strategies.

Take Coca-Cola. This company, which had a $250-million marketing program at the Olympics, is involved in World Cup soccer, the Tour de France (cycling), and even cricket in India. But your company does not have to be a large multinational to benefit from sports marketing. Smaller companies are finding it advantageous to tie in with such local events as road races, marathons, and community and youth leagues. (For related information, see Doc. 6040, Entertainment Tie-ins.)

KEY STATISTICS

Sponsorship spending in North America, both sports and nonsports, is expected to reach $7.6 billion in 1999,a 12 percent increase over $6.8 billion in 1998, according to the International Events Group (IEG), a Chicago consulting firm that tracks and researches corporate sponsorship. Sports dominates this industry, with a 67 percent share. Thus IEG predicts that sports sponsorship revenues will climb to $5.1 billion in 1999. Forecasted dollar figures for other categories are entertainment tours and attractions, $756 million; festivals, fairs, and annual events, $685 million; causes, $630 million; and arts, $460 million.

ADVANTAGES

If sports marketing is done right, it will result in increased revenues and greater awareness among customers. Sports teams and events are just the ticket to help motivate or reward employees, entertain clients, or spread the company's message to a specific demographic group.

Perhaps the best evidence of this is the eager bidding for Olympic sponsorships. Companies that complained about paying $40 million apiece for worldwide rights to the 1996 Summer Olympics in Atlanta are lining up to pay $45 million for Sydney in 2000.

Sports crosses over virtually every lifestyle category, so, no matter what your target audience, there is a sporting event for you. And, even if you don't want to get into the sponsorship game immediately, there are new ways to incorporate sports in strategic marketing.

For example, those luxury boxes that corporations use to entertain clients at stadiums and arenas can now be rented by the event instead of leased for an entire season. Or, if your target audience is inclined toward actually taking part in a particular sport, there's a new spin on that, too: universal tickets that can be redeemed, say, for a round of golf or a day of skiing.

SUPERSTARS WHO DELIVER

How heavily should a company depend on sports to help sell its products? Gatorade, marketed as a "sports drink," is an astounding marketing success story. It has been growing at a 15 percent composite rate in volume for ten years. Gatorade's connection with sports is a long and hallowed one, and the company spends millions on promotion to cultivate deals with teams and professional athletes and trainers.

Gatorade makes full use of spokespersons, such as basketball superstar Michael Jordan, who plays a significant role in a number of promotional media, including the company's Web site. Sports is the dominant theme of the site (http://www.gatorade.com), which features behind-the-scenes photos of Jordan and a schedule of Gatorade events, including a basketball tour that is visiting more than 40 cities this year.

Jordan, a formidable marketing machine, also endorses Nike, McDonald's Corp., Rayovac, and Sara Lee Corp. Each of these companies attributes record gains in revenue and market share to him.

Tiger Woods, the youngest Masters champion ever and the first African-American to win a major professional golf championship, is a marketer's dream. His accomplishments have attracted the attention of thousands of people from all ethnic backgrounds who previously would never have considered watching a golf match.

Recognizing his potential, Nike, Titleist, and a few others signed Woods to promotional deals last year, so his name is about to show up on everything from sports apparel to golf balls to watches.

His latest coup is a contract to promote American Express. Said to promise Woods between $13 and $25 million over five years, it will have him promoting financial advisory services at first and generally broadening the company's consumer appeal.

SPORTS MARKETING TIPS

Here are some critical steps to help you get started in sports marketing:

• Contact the marketing representatives of local sports teams, leagues, and events to find out how your business can get involved.
  
  
• Visibility is key. Signage, advertising in printed game programs, radio spots, and other advertising vehicles are often available at local sporting events. Consider purchasing a field board; it will give your company exposure all season long.
  
  
• Create your own event. Many professional teams and radio stations have alumni teams that tour for charity. Ask the team's marketing representative if your customers can play against these local sports celebrities.
  
  
• Sponsor a T-shirt giveaway at a sporting event. Be sure the T-shirts have your logo or company name on them.
  
  
• Arrange for a sports celebrity to appear at your corporate headquarters or at an event you are sponsoring. A celebrity helps attract attention, build excitement, and bring credibility to your event. Another innovative way to use a professional athlete is by offering lessons with him or her as the prize of a contest that your company sponsors.

LAUNCHING THE CAMPAIGN

Once you've decided what form the sports promotion will take, consider the following points to help get it under way:

1. Understand thoroughly the specific marketing objectives of your company.
   
   
2. Identify your target audience. Different sports attract different demographic and interest groups.
   
   
3. Decide how much outside help you need. Do you plan to handle this promotion on your own, or are you going to hire an outside sports marketing agency? If you want to go the agency route, look at the agency's other clients and at its track record. Make sure you communicate your objectives to the agency. Get a written estimate stating all services to be performed.
   
   
4. Integrate as many elements as possible into your program. The best results come from promotions with several elements that build on each other. For example, you could sponsor a consumer contest, awarding as prizes box seats for a few games or even season tickets. To publicize the campaign, you could use radio spots and an official logo. Note: By tying these elements together in a package, you will also save money.

FINDING A SUPPLIER

Sports marketing agencies specialize in developing sponsor strategies. The following services and guidebooks will help you find the agency that is right for you:

• 1999 Sports Sponsor FactBook provides names and numbers of thousands of decision makers in all areas of sports marketing. It's also available in an interactive digital version for both Windows and Macintosh computers. Published by Team Marketing Report. Call 312-829-7060; go to http://www.teammarketing.com.
  
  
• IEG Sponsorship Sourcebook. A guide to who's who and who does what in sponsorship, be they sponsors, properties, agencies, or suppliers. It lists 1,600 sponsorship opportunities and more than 4,000 sponsors plus 300 advertising, public relations, and marketing agencies. $199; $149 for subscribers to IEG Sponsorship Report, IEG's biweekly newsletter. Call 312-944-1727; fax 312-458-7111; or go to http://www.sponsorship.com.
  
  
• Promo SourceBook, the 200-page annual buying guide published by Promo magazine, lists hundreds of suppliers. Call 203-358-4375.
  
  
• ISES Worldwide Resource Directory. About 2,000 members of the International Special Events Society are listed in this directory, which is sent to 10,000 event professionals throughout the world. Free to ISES members and individuals on its mailing list, $99 for others. Call 800-688-4737.

• To find a supplier, go to #9520, Supplier Finder.

ASSOCIATIONS

• Promotion Marketing Association (PMA) is a trade association for the promotion marketing industry. Call 212-420-1100; fax 212-533-7622; go to http://www.pmalink.org.
  
  
• International Special Events Society (ISES) is a not-for-profit professional society with about 2,000 members involved in the special events industry. It offers an online service, a membership directory, a fax-on-demand service, and education and networking opportunities. Call 800-688-4737; fax-on-demand 888-755-4737; go to http://www.ises.com/.

TRADE SHOWS AND SEMINARS

For a list of Industry Events, go to #9510, Calendar of Industry Events.

RESEARCH

Here is a list of services and organizations that provide research on sports marketing:

• International Events Group (IEG) is a for-profit organization that provides information on sponsorships in various areas, including sports. Its services include an industry newsletter, sponsor-locator service, books, conferences, workshops, consulting, and the two research services listed below. Call 312-944-1727; fax 312-789-6488 or go to http://www.sponsorship.com.
  
  
• IEG Intelligence Reports provide in-depth examinations of sponsorship activity in eight different categories, including professional team sports, auto racing, and golf. $265 per report for subscribers, $295 for nonsubscribers, including a copy of the report on a computer disc.
  
  
• IEG SR Search compiles articles on specific companies or categories. It also provides information about companies or organizations looking for sponsors. $245; $122 for subscribers to IEG Sponsorship Report, IEG's biweekly newsletter.
  
  
• Promo magazine offers a fax-back service for its special reports. Call 203-358-4375; go to http://www.promomagazine.com/.

BOOKS

The Ultimate Guide to Sport Event Management & Marketing, by Stedman Graham, Joe Jeff Goldblatt, and Lisa Delpy, gives an overview of the emerging sports event profession. It provides guidelines on how to produce sports events successfully and economically and includes a reference section with sample contracts, invitations, and contact lists. 383 pp. $32.50; through Amazon.com, $22.75. Irwin Professional Publishing, a McGraw-Hill company.

Sports Marketing; It's Not Just a Game Anymore, by Phil Schaaf, explores sponsorship, event management, licensing and merchandising, endorsements, radio and TV, and stadium facilities. It examines the relationship among fans, sponsors, and the actual events, and it covers corporate sponsorship of leagues, teams, individual athletes, and other property-rights holders. 355 pp. $25.95; through Amazon.com, $18.17. Prometheus Books.

Sports Marketing: Competitive Business Strategies for Sports, by Christine Brooks, is a hands-on guide to becoming a sports marketing strategist. Although this is a college textbook, it is loaded with helpful information. 352 pp. $53; through Amazon.com, $73.75. Prentice-Hall.

Keeping Score: An Inside Look at Sports Marketing, by David M. Carter, addresses the issue of how and why a company should use sports marketing to enhance its profile. It contains case histories about Nike, McDonald's, and Anheuser-Busch. 322 pp. $18.95; through Amazon.com, $15.16. Oasis Press.

Just Do It: The Nike Spirit in the Corporate World, by Donald Katz, is about the business of sports and the sport of business. Theme: Nike may be just a shoe company but it is changing the way sports, business, and popular culture interact. 336 pp. $10.95; through Amazon.com, $8.76. Random House.

PUBLICATIONS

• The Sports Marketing Letter is a monthly digest of news in sports marketing, sponsorship, endorsements, licensing, and merchandising. $180 US., $200 Canada, $220 rest of world. Call 203-259-3890.
  
  
• Outlook, PMA's bimonthly newsletter, addresses issues affecting the promotion marketing business. Call 212-420-1100; fax 212-533-7622; go to http://www.pmalink.org.
  
  
• Team Marketing Report, is a monthly newsletter specializing in sports sponsorships and team-related marketing ideas. $179/year. Call 312-829-7060; go to http://www.teammarketing.com.
  
  
• IEG Sponsorship Report, IEG's biweekly newsletter, covers sports, entertainment, and cause marketing. Its concise format makes it a quick read. $415/year, $340 for nonprofit organizations. Call 312-944-1727.
  
  
• Promo, a monthly magazine for full-time promotion marketers, frequently runs stories on sports marketing. Free to qualified readers, otherwise $65/year. Call 203-358-4375; go to http://www.promomagazine.com.
  
  
• Sales and Marketing Strategies and News, published eight times a year, frequently writes about sports marketing. $49/year. Call 815-963-4000.
  
  
• Business Week publishes a feature called "Sports Business." Call 212-512-2000; go to http://www.businessweek.com.
  
  
• Advertising Age regularly runs articles about sports marketing. Call 800-678-9595; go to http://www.adage.com/.

ONLINE SERVICES

• IEG. This online service provides information about IEG and its products and services. It includes a job forum and sponsorship links. Click on http://www.sponsorship.com.
  
  
• The Sports Business Daily, a daily electronic trade publication dedicated to the business of sports, covers sponsorships, endorsements, marketing, and advertising. Delivered through e-mail, modem, or broadcast fax, it can also be accessed through its Web site and downloaded directly to your computer. Call 203-838-0800; go to http://www.sportsbizdaily.com.
  
  
• ISES has an online service, but most of its features are available only to members. Click on http://www.ises.com.
  
  
• Three Web sites that cover the event business are:
  www.eventsource.com
  http://www.event-planner.com.
  http://www.eventweb.com

CAREER OPPORTUNITIES

IEG's home page on the Web features a job forum, and such business publications as Advertising Age and Adweek have classified sections. More comprehensive listings may be found in the following publication:

Employment Review is a monthly magazine that lists numerous career opportunities in various fields, including sales and marketing. $29.95/year, or $34.95/two years. Call 800-994JOBS; go to http://www.bestjobsusa.com/.