Sports Sales & Sponsorships - needs to be done tonight before midnight
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Ch5.pptx3FglobalNavigation3Dfalse.pptxSport Ticket Sales
Chapter 5
Ticket Sales
Ticket sales = attendance
Attendance = following
Following ↑ sponsorship & broadcast contracts
Effectiveness = sales volume
Fans
Support team
Attract sponsors
Create media demand
Media
Provide coverage
Vehicle for sponsors to reach fans
Sponsors
Buy media time
Sales
Sell existing products at price, quality, performance acceptable to customers
Includes repackaging, modifications
Revenue producing
Identify customer, increase interest, persuade, culminate in action
Customer performance factors
Quality
Quantity
Time
Cost
Fit
Product focused vs. customer focused
Components of a Sale
Salable product
Awareness, interest, need, demand
Attitude
Approach of salesperson (work with the customer/listen vs. sell inventory)
Leads
Identify prospects
Past purchasers, referrals, buying lists
Segment by education, income, home ownership, age, lifestyle
Equity
Both parties benefit from agreement
Customers
Current customers
Most valuable
Most cost effective way to increase sales
Increase frequency
Light, moderate, heavy users
Loyal customers
Spend more, refer, cost less to do business with
Past customers
Identify reasons for defecting
Potential customers
Low conversion rate to customers
High cost to generate awareness and interest
Butterfly customers
Switch even if satisfied
Customer Relationship Management
Turning customer knowledge into revenue
Customized email communications
Speak to fans in manner relevant to them
Track ROI (response to offers)
Open rates, click through, revenue
Lower cost than direct mail, more immediate (few hours vs. few weeks)
Frequency and relevance
Archtix
Database system
List of buyers and prospects
Purchasing histories, preference, notes
Why people buy
Economy, trends, performance, emotional attachment, identification, social interaction, star factor
Fan identification
Social identification
Trend
Progression of rationale
Individual motivations (fan identification, enjoyment)
Social/community motivations
Business related reasons
Increasing expenditures along progression
Sales Presentation
Information to be shared
Provide new information
Risk of overwhelming prospect
Full menu marketing
Product variations, different price points
Option for everyone
Create a unique & memorable impression
Strategies & Methods
Direct Mail
No opportunity to explain (self-explanatory, clear)
Good response rate is 2%
Can be personalized
Ticket sales materials
Email messages
Annual report for stakeholders
Sponsors
Ticket plan holders
Telemarketing
Non face to face contact
Inbound/outbound
Focus on high yield accounts
Outcomes
Sale, no sale, continuance, advance
Personal Contact
Sampling, trial memberships, open houses
Data based marketing
Quick changes in trends, be proactive
Relationship marketing
Buyers market
Alternative suppliers (ticket brokers, resellers) as competition
Benefit selling
Create new benefits or enhance existing benefits
From focus group research
Why customers defect, what benefits they want
Flex Book
USP – not restricted, minimize effect of performance, time, for teams with less demand and capacity
Strategies & Methods
Personal Contact
Sampling, trial memberships, open houses
Data based marketing
Quick changes in trends, be proactive
Relationship marketing
Buyers market
Alternative suppliers (ticket brokers, resellers) as competition
Benefit selling
Create new benefits or enhance existing benefits
From focus group research
Why customers defect, what benefits they want
Flex Book
USP – not restricted, minimize effect of performance, time, for teams with less demand and capacity
Unique Sport Products
Luxury Suites
Premium seating
12 or more seats
$150,000 - $275,000 per year for 5 plus years
Selling by trial sampling & open house
Personal Seat License
Right to buy permanent season ticket (guaranteed seat)
$500 – several thousand
New stadium construction
Can sell
Given back if not sold or season ticket not purchased
For as long as team in current venue
Chicago Bears (Skyline Suite)
151 suites @ $8000 per season/seat
Between club and luxury pricing
Club Seats
Premium seating with services not available to other seats
Corporate product
Loge suites/table top suites
Broader marketing appeal – one day trade up
On-field seating
All inclusive tickets
Group Sales
20 plus people
Incentives
Inclusion in organizational asset (perform at halftime) minimum purchase 100-1000
fundraiser
Ticket Department
Typical progression
Retention
Salary plus bonuses
Inside sales/telemarketing
8-12 entry level sales personnel
75-100 outgoing calls per day
Group sales
4-6 sales personnel
Relationship sales
Account executives
8-12 senior personnel
$4 in revenue for every $1 in salary/bonuses/benefits
Outsourcing
Tickets on the web
25% of tickets sold
