Tuesday, July 8, 2008

Sports Terminology

Below is a compilation of sports business terminology.

Activation – The act of leveraging sponsorship to augment the impact on the target audience. For example, during Visa's recent sponsorship of the Olympic Games they spent $3 to $4 on marketing for every dollar spent on acquiring sponsorship rights (not including media buy).

Affect Transfer in Sponsorship – A non-conscious connection in which positive feelings for a sporting event or property transfers to a brand. For example, "I love the NFL so I love Pepsi." (The second mechanism of influence in sports sponsorship.) (Pracejus, 2004)

Affiliation in Sponsorship – Consumers define themselves in part by their memberships and affiliations to various social groups, so highly identified fans see themselves as "members" of the team and act in ways to support the team. (The fourth mechanism of influence in sports sponsorship.) (Pracejus, 2004)

Ambush Marketing – A marketing campaign by an organization with the goal of associating themselves indirectly with a sports event in order to gain the recognition and benefits associated with being an official sponsor (Sandler & Shani, 1989). An example of ambush marketing took place in the 2000 Sydney Olympics when Qantas Airlines used the slogan, "The Spirit of Australia" in imitation of the games’ slogan "Share the Spirit," despite Ansett Air being the official sponsor.

BIRGing – Basking In Reflected Glory. When a fan takes credit for a team’s success.

Blasting – A defensive mechanism similar to CORFing wherein a fan will attribute negative characteristics to the opposition. For example, after a loss to the Pistons, a Blazer’s fan might say, “The Pistons are from dilapidated Detroit, whereas the Blazers (and I) are from progressive Portland.”

Branding – The effort of distinguishing one product or service from a competitor’s product or service. Factors of branding include Brand Awareness (getting customers to recognize your sport product), Brand Image (building a customer’s belief in the product), Brand Equity (the value the brand adds), and Brand Loyalty (consistent preference of a brand).

Communication Communities in Sports – A segmentation of those who watch sports. The three Communication Communities proposed by Shoham & Kahle (1996) breaks the market into three groups:

  1. Those who watch live sporting events (spectators)

  2. Those who watch sports on TV (viewers)

  3. Those who read about sports (readers)

Consumption Communities in Sports – A segmentation of those who participate in sports. The three consumption communities proposed by Shoham & Kahle (1996) breaks the market into three groups:

  1. Those who participate in competitive sports

  2. Those who participate in fitness sports

  3. Those who participate in nature sports

CORFing – Cutting Off Respective Failure. When a fan distances himself from his team’s failure or loss.

Endorsement – The use of a (sports) celebrity’s name, likeness, or autograph in connection with the sale or promotion of a product or service. Fans might chose to buy the product in order to emulate the celebrity, in what is sometimes called “image transfer.” (Gardiner, 2006)

Event Management – The planning, organization, delivering, and management of an event. Typical tasks include management of ticket sales, sponsors, performers, permits, promotions, and budgets.

Experiential Consumption – When the consumer takes on an active role in the production and delivery of the consumption experience. Sports spectators are often active in their consumption of their experience, such as those who feel drained after watching a game or match. (Morgan & Summers, 2005)

Extreme Sports – Also called “Adrenaline Sports,” “Action Sports,” and “Adventure Sports,” these are sports with a perceived level of danger that often focus on performing tricks or stunts, and which are geared toward the individual rather than a team. The adherents of Extreme Sports are perceived to reject traditional marketing approaches. The X Games and Gravity Games are both examples of multi-sport events that feature extreme sports.

Fan Equity – What a fan believes he deserves for his loyalty. Also, the emotional bond that links a fan to a team. (McDonald & Milne, 1999)

Image Transfer in Sponsorship – The abstract beliefs about a property that transfer to a sponsor. An example of this is when a consumer feels that the personality of a brand takes on the personality of a property—as in Ironman watches (brand) taking on the toughness of an Olympic decathlon (property). Moderating variables include degree of similarity, level of sponsorship, event frequency, and product involvement. (The third mechanism of influence in sports sponsorship.) (Pracejus, 2004)

Implied Endorsement in Sponsorship – This mechanism requires the consumer to infer that the property is somehow endorsing the brand. Athletes are a primary example of this, as in: "If Greg Oden is wearing those shoes then I'll jump higher if I wear them too." (The sixth mechanism of influence in sports sponsorship.) (Pracejus, 2004)

Implied Size in Sponsorship – The perceived size of an event selected for sponsorship is a signal of the company's financial strength. Implied size acts as a heuristic (mental shortcut) similar to "price equals quality." (The fifth mechanism of influence in sports sponsorship.) (Pracejus, 2004)

Licensing – The method of exploiting intellectual property by transferring the rights of use to a third party without the transfer of ownership. In sports this often means the use of a logo or trademark on merchandise, such as the use of a team-specific logo on a credit card.

Marketing Sports – Marketing a sports good or service directly to sports consumers. Selling tickets is a prime example of this.

Marketing Through Sports – Using a sports affiliation to market non-sport goods and services. Selling stadium naming rights is an example of this kind of marketing, and should not be confused with licensing.

Narrowcasting – Media messages directed at specific segments of the population defined by values, preferences, or demographics. Sports marketing strategists attempt to distinguish and separate the large groups of consumers that are brought together through sports.

Olympic Effect, The – An economic boom that affects the hosting city and country of the Olympic games. Examples of this include increased housing prices in London years before the 2012 games, and the creation of jobs brought on by the Beijing 2008 Olympics.

Parasitism in Sports – The act of taking advantage of another’s representation without authorization. For example, in 1977 the state of Delaware created a lottery based on the results of NFL games without permission from the league. (Moorman & Greenwell, 2005)

Primary Sports Roles – Those who participate in sports. (See Consumption Communities in Sports.) This is also called “direct involvement.”

Reciprocity in Sponsorship – The message of reciprocity is that the sponsor supports an event an individual consumer cares about, so the consumer will go out of his way to support the sponsor by purchasing the sponsor's product. (The seventh mechanism of influence in sports sponsorship.) (Pracejus, 2004)

Relatedness in Sponsorship – The closer the relationship between properties and sponsoring companies, the easier it is for consumers to recall the sponsoring company's brand. For example, it is easier to remember that Speedo sponsored Olympic swimming than it would be to remember Coca Cola's sponsorship of the same property. (Pracejus, 2004)

Secondary Sports Roles – Those who act as listeners, readers, spectators, or viewers of sports. (See Communication Communities in Sports.) This is also called “indirect involvement.”

Seven Mechanisms of Influence in Sports Sponsorship – The seven mechanisms through which sponsorship can influence consumers. Proposed by John W. Pracejus, the mechanisms that sponsorship influences brand equity and brand positioning are, in order of cognitive elaboration needed: Simple Awareness, Affect Transfer, Image Transfer, Affiliation, Implied Size, Implied Endorsement, and Reciprocity. (Pracejus, 2004)

Simple Awareness in Sponsorship – The awareness of a brand's existence, or initial exposure to a brand. (The first mechanism of influence in sports sponsorship.) (Pracejus, 2004)

Sponsorship – A deal under which a sponsor pays a sport entity (athlete, event, league, or team) to promote the sponsor’s product or organization. The sport entity also often delivers advertising space and some level of exclusivity. (Andreff & Szymanski, 2006)

Sponsorship Recall – The recognition of a company's role as a sponsor. In a practical application: a non-leading brand must be prepared to spend more money than a leading brand to achieve high sponsorship recall. (Pracejus, 2004)

Works Cited

Andreff, W. & Szymanski, S. “Sponsorship, in Handbook on the Economics of Sport.” Edward Elgar Publishing, 2006. p 49.

Gardiner, S. “Sports Law.” Routledge Cavendish, 2006. p 433.

McDonald, M.A. & Milne, G.A. “Cases in Sports Marketing.” Jones & Bartlett Publishers, 1999. p 6.

Moorman, A. M. & Greenwell, T. C. “An examination of consumer perceptions of ambush marketing practices.” Journal of Legal Aspects of Sport, 2005. p 191.

Morgan, M..J.J & Summers, J. “Sports Marketing.” Thomson Learning Nelson, 2005. p 16.

Sandler, D.M. & Shani, D. “Olympic Sponsorship vs. ‘Ambush’ Marketing: who gets the Gold.” Journal of Advertising Research, August/September 1989, Cambridge University Press. p 9.

Pracejus, J. Edited by Kahle, L.R. & Riley, C. “Sports Marketing and the Psychology of Marketing Communication.” Lawrence Erlbaum Associates, 2004. p 175-186.


Works Consulted


Kobel, P. “International Report on Question B : Ambush Marketing Too Smart to Be Good ? Should Certain Ambush Marketing Practices Be Declared Illegal and If Yes, Which Ones and Under What Conditions?” International League of Competition Law. Accessed January 3, 2008.