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Copy of Marketing Strategies of NBA

Yeditepe University Graduation Thesis
by

Han li

on 31 January 2013

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Transcript of Copy of Marketing Strategies of NBA


MARKETING STRATEGIES OF THE NATIONAL BASKETBALL ASSOCIATION



A Graduation Project
Submitted to the Faculty of the
Graduate School of Business Administration
of Yeditepe University



By
Onur Koyuncu
May 25, 2012 1.ABSTRACT
2.INTRODUCTION
3.SOCIAL MEDIA
4. MERCHANDISING AND SOCIAL EVENTS
4.1 NBA Stores
4.2 Fan Based Events
4.2.1 NBA Care Program
4.2.2 National Nights
4.2.3 Europe Live Tours
5. PLAYER EFFECT on MARKETING STRATEGY
6. DEMOGRAPHICAL OVERLOOK of NBA PLAYERS and FANS
7. SPONSORSHIP AGREMENTS in NBA
7.1 Issues on Sponsorship Agreement
7.2 New Sponsorship Strategies
8.CONCLUSION
9.REFERENCES ABSTRACT Since 1946 to today NBA (National Basketball Association ) has became one of the most attractive sport all over world.

With it’s expanding rating on many communication channels now it is a war between NBA and all other entertainments. Not only other sport but all other fan based entertainments such as concerts, movies In this marketing war, most important part of creating a more competative and fan based league he supported young all-star caliber players (i.e Michael Jordan, Magic Johnson) who has the power to change NBA direction to the upper levels.

With this kind of talented players, Stern has agreed with National T.V channels such as ESPN and ABC to make the league more popular. INSTRUCTION In spite of all it’s marketing tools, still perception of fans a big wall for all teams. Different factors can effect perception of a fan to a sport.

For example it has been observed that fans with older ages are less attractive to the young talented players because they thinks that those players are rival of their age. ‘’in the marketplace, perception is reality, no matter how right or wrong that perception is’’

(Bedbury,Scott. A New Brand World. 164). SOCIAL MEDIA
NBA inform its fans regularly via e-mail which called as All-Access with over 100.000 number of member only In Turkey

Also global NBA Facebook account has more than 600.000 Turkish user which show how it is powerfull to use social media

Also NBA was the 4th in popular Twitter topics in 2011 among other sports SOCIAL MEDIA Time Difference !



Solution : Game locator app. and NBA.TV app



50.000 fans only in Turkey Some Statistics
SOCIAL MEDIA NBA.com, has over 35 million display just in one day


Turkey Facebook page has the most follower among other countries NBA facebook pages including USA


Every month over 500.000 Turkish user downloaded NBA videos

14 NBA.com in different languages MERCHANDISING AND SOCIAL EVENTS

4 MAIN TOOL Fan Based Events Fan based events are powerful entertainment weapons for NBA. Other than the regular games we can analyze them in 3 group;

NBA community
National nights
Europe Live Tours NBA Community
NBA Care Program In 2005, NBA launches NBA CARES program which targeting the needs of society, kids and victims of natural disaster

Originate to increase the readiness level of poor child’s and social issues such as education, youth and family development.

Since 2005 the league have raised more than $190 million for charity and 1.9 million hours of hands-on service, also built more than 700 places where kids and their families can live. NBA Stores NBA opened its first store in 1998 and has spread its store chains all over the world in 2000s.

The biggest growth was in China for sure because of All-star player Yao Ming

Although this international operations just provide %10 of total NBA store profit,

in April 2012, they began selling offical Twitter T-shirts of the league’s biggest stars with Twitter handles above their jersey numbers.

NBA is the first sport league which has this kind of merchandising agreement with one of the top level social media channel. National Nights To create more fan interest and increase attendance to the games NBA support organizers to organize national nights during half-times.

For example this year a Turkish Night has been organized with over 1000 Turkish fan during Los Angeles Clippers – Phoenix Suns game National Nights With this kind ethnic marketing strategy as they did in China, NBA plans to make foreign players the center piece of its marketing In their country.

Yao Ming, 2.26 cm Center of Houston Rockets drafted in 2002

First international player whom selected with first pick without U.S college

Brilliant opportunity for NBA Considering big market and the political situation of China

But in spite of all the advertising on Yao Ming he was never had the title to have most sales in his own country but Kobe Bryant had Europe Live Tours NBA and FIBA (Fédération Internationale de Basketball)

Since 2006

Spain, Italy, Turkey

NBA opened it is first European NBA Store in Istanbul, Taksim PLAYER EFFECT on MARKETING STRATEGY At the beginning of the 1980s, basketball was still a sport behind baseball, football, and in many places hockey

The merge of ABA and NBA in 1976

First marketing rivalry :

Larry Bird and Magic Johnson




Meet in the Finals three times in80s International Effects Cold war between Russia and USA so they boycotted Olympics in 80s

Dream Team

Michael Jordan led the Olympic team

IMPORTANCE: Player vs Player match-ups instead of Team vs Team Michael Jordan 6 championships in 90s

Great advertisements for Nike, Gatorade and Disney

Gatorade offered $10 Million in 1991

Monkey Song of Disney’s classic The Jungle Book : Be like Mike

Michael needed a break ! ! !

Next year the NBA’s ratings downed to12.4 from 17.9 in 1993

All other good young players announced as ‘’Next Michael Jordan Michael Jordan Bill Russell, eleven time NBA champion and legendary player of Boston Celtics and all times asked by his own grandchild if he was as good as Jordan, answered, ‘’The question is was Michael Jordan as good as me’’ DEMOGRAPHICAL OVERLOOK of NBA PLAYERS and FANS 440 players

30 team

Average of $ 4.3MM annual salary

Total salary $ 1.900 MM annually DEMOGRAPHICAL OVERLOOK of NBA PLAYERS and FANS ‘’Age Limit ‘’ Rule

Answer is simple: Quality !

With increasing scandals which NBA players names comes up with, NBA recognize that this kind of bad demonstration of NBA also damage their marketing strategy DEMOGRAPHICAL OVERLOOK of NBA PLAYERS and FANS African-American player percentage in the league (77%)

Jay-Z

2004 Indiana – Detroit game SPONSORSHIP AGREMENTS in NBA Great partners for NBA

Very direct and effective way of advertising through fans

New Social Media Sponsor : Sprint ($ 250 Mil ) Issues on Sponsorship Agreement Advertising on player jerseys

Issue: The Classical Image

Sharing of the pie

A study done by Horizon Media : It will only be occupied 3% of T.V screen but would produce around $ 31 million annually. New Sponsorship Strategies NBA announces the Sponsorship Activation Award each year.

2012 Winner : Orlando Magic

The team hit 10 or more 3-pointers in a home game during the season, fans had the chance to win a free meal by showing their tickets.

Result: 10 or more 3-pointers in 16 games resulting with more than 12.000 free tacos and 25% coming from first time customers New Sponsorship Strategies Kobe Bryant and Turkish Airlines


ESPN, ABC and TNT telecasts


NBA has presenting in 215 countries in 46 languages CONCLUSION Global world, internet and unlimited communication chance with fans

David Stern the longest commissioner of all times

Marketing on Players REFERENCES Bedbury and Scott, P.B. (2002). A New Brand World.
Cynthia Marie A.Flores. G.U. (2004) In Transation: Marketing Strategies for the National Basketball Association in Changing Megamedia World
Steven Raymond Brown Jr. Labor, (1998-2006) Relations in the NBA:The Analysis of Labor Conflicts Between Owners, Players, and Management from
Lance Nicholas Jacobs. Does Losing Matter? An Analysis of NBA Franchise Revenues
Gorman, Jerry And Calhoun, Kirk, John Wiley & Sons, Inc. (1994). The Name of the Game: The Business of Sports.
William p ‘’ 5 Content Marketing Tips to Help the NBA Recover from the Lockout’’
< http://www.idealaunch.com/blog/content/5-content-marketing-tips-to-help-the-nba-recover-from-the-lockout/>
Dan Savage ‘’Magic Win NBA Sponsorship Activation of the Year Award’’
<http://www.nba.com/magic/news/magic_win_nba_team_sponsorship_activation_of_the_year_award_2012.html>
Press Release ‘’NBA joins Sprint in new multiyear marketing partnership’’ <http://www.nba.com/2011/news/12/14/sprint/index.html>
Official Release ‘’Lakers, Wolves, Knicks to participate in NBA Europe Live’’<http://www.nba.com/2010/news/04/13/nba.europe.2010/?ls=iref:nbahpt2 >
Khara Lewin ‘’NBA's 'Linsanity' offers marketing promise’’
<http://articles.cnn.com/2012-02-15/us/us_new-york-jeremy-lin_1_jeremy-lin-team-gain-ground-marketing?_s=PM:US>
Alex Brodsky ‘’NBA Lockout: An Airball Marketing Strategy’’
<http://www.qualitylogoproducts.com/blog/nba-lockout-airball-marketing-strategy/>
http://en.hispanosnba.com/teams/comparison
Karl Greenberg ‘’NBA Sponsors Rush The Basket’’
<http://www.mediapost.com/publications/article/164550/nba-sponsors-rush-the-basket.html>s
Skylife ‘’ I’m A Unique Player’’ <http://www.turkishairlines.com/en-int/skylife/2011/march/articles/im-a-unique-player.aspx>
<http://www.nba.com/caravan/>
<http://en.wikipedia.org/wiki/NBA_Store>
<www.nba.com/global>
<www.startribune.com> Thank You
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