Sport Sponsorship Expenditure Bundesliga

This is an overview of the jersey-sponsors of all 18 teams of the Bundesliga. You can see their sponsors, the duration of the contract (the german word unbefristet behind VfL Wolfsburg means that the duration is unlimited) and the current expenditures. So Bayern Munich is (of course) the leader in this list receiving 30 Mio Euros a year, Borussia Dortmund is only on the fourth place. I think it is quite interesting that there are still teams in the widely known Bundesliga like Augsburg that only get 1.8 Mio Euros  year which is nothing compared to other teams.

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Mimetic Isomorphism

Mimetic Isomorphism means to copy the business models of other leading companies in your market. This action is used to avoid risks as the copying companies know that this model will work out (otherwise the competitor wouldn’t be that successfull).

In sports we can see this very often, especially in the online shop segment. Long time ago the first companies decided to sell sport goods and apparell via online shops. This model absolutely worked out and nowadays we can find thousands of online shops offering all the sport stuff we need (and don’t need) via online shops.

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This is about a campaign in Germany called “Deutschland bewegt sich” (Germany moves). The campaign appeals to all Germans to work out more often, get fit and stay in shape. So this is not about a special kind of sport or brand but about sports in general.



This is a commercial from adidas. It is about the new running shoe “boost” they introduced in 2013.


This is a video about Nike’s 2010 campaign called “the chance” where they searched for footballing talents all over the world. So actually this video is about the participants, their dreams, etc. but in the end it is also great indirect marketing for Nike.

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A PESTEL analysis is a framework or tool used by marketers to analyse and monitor the macro-environmental(external marketing environment) factors that have an impact on an organisation.

PESTEL stands for:

  • P – Political
  • E – Economic
  • S – Social
  • T – Technological
  • E – Environmental
  • L – Legal

Political Factors

These are all about how and to what degree a government intervenes in the economy. This can include – government policy, political stability or instability in overseas markets, foreign trade policy, tax policy, labour law, environmental law, trade restrictions and so on.

It is clear from the list above that political factors often have an impact on organisations and how they do business. Organisations need to be able to respond to the current and anticipated future legislation, and adjust their marketing policy accordingly.

Economic Factors

Economic factors have a significant impact on how an organisation does business and also how profitable they are. Factors include – economic growth, interest rates, exchange rates, inflation, disposable income of consumers and businesses and so on.

These factors can further be broken down into macro-economical and micro-economical factors. Macro-economical  factors deal with the management of demand in any given economy. Governments use interest rate control, taxation policy and government expenditure as their main mechanisms they use for this.

Micro-economic factors are all about the way people spend their incomes. This has a large impact on B2C organisations in particular.

Social Factors

Also known as socio-cultural factors, are the areas that involve the shared belief and attitudes of the population. These factors include – population growth, age distribution, health consciousness, career attitudes and so on. These factors are of particular interest as they have a direct effect on how marketers understand customers and what drives them.

Technological Factors

We all know how fast the technological landscape changes and how this impacts the way we market our products. Technological factors affect marketing and the management thereof in three distinct ways:

  • New ways of producing goods and services
  • New ways of distributing goods and services
  • New ways of communicating with target markets

Environmental Factors

These factors have only really come to the forefront in the last fifteen years or so. They have become important due to the increasing scarcity of raw materials, polution targets, doing business as an ethical and sustainable company, carbon footprint targets set by governments (this is a good example were one factor could be classes as political and environmental at the same time). These are just some of the issues marketers are facing within this factor. More and more consumers are demanding that the products they buy are sourced ethically, and if possible from a sustainable source.

Legal Factors

Legal factors include – health and safety, equal opportunities, advertising standards, consumer rights and laws, product labelling and product safety. It is clear that companies need to know what is and what is not legal in order to trade successfully. If an organisation trades globally this becomes a very tricky area to get right as each country has its own set of rules and regulations.


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Dynamic Pricing

Definition: The process of determining a product’svalue in commercial transactions in a fluid manner depending on current market conditions. Dynamic pricing is gaining ground among business owners compared to the more traditional fixed pricing method. Also called real time pricing.



This is very important to sport teams when selling their tickets. They can react on current demands (rainy weather, team is performing poor, next opponent is Nr. 1 etc.) and adapt their prices. Furthermore they can offer different prices for different categories of seats.

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Case Study p. 138-141

1)      Comment on how the variables facility planning and physical evidence apply to the different sections of this case study:


In the first section the author mentions the aspect of facility planning by discussing the problem of finding the right balance between a small and a large stadium. It shouldn’t be too small in order to guarantee a decent income but it shouldn’t be too large either in order to guarantee a nice atmosphere.

Also the second section approaches the aspect of facility planning. Nowadays it is quite important to offer a stadium that can be used for different events like sports, concerts, meetings etc. In the fourth section there is given an example of the approach to build such sporting facilities (Olympic Park in Sydney) but it worked out only partly (swimming facilities are a success).

The fifth section both approaches the investments in the facility infrastructure in England and the aspect of physical evidence when talking about e.g. interactive video screens in the stadiums.


2)      Comment on how the variables people and process apply to the different sections of this case study:


In the case study it is mentioned that it is very important how the operators of the facilities think and behave. Are they able and willing to be far-seeing and taking a multifunctional stadium into account? Think about our previous discussion about marketing myopia!

The process is also a very important aspect when talking about facility management. You have to take both the visible and the invisible part into account! Only if all processes are planned well before an event, the people having direct customer contact will be able to do their job well. And only if you hired competent people before, they will be able to fulfill your service plans.



3)      Can you think of other standards that may replace cost per seat as a better means to account for facility construction costs?  Justify your answer.


 It would be useful to take the other possibilities of using the facility into account. If the facility is multifunctional, one should consider how often the seats/rooms etc. will be used and how much money one could earn by using it differently. Furthermore it would be interesting to take the recyclable materials into account.


4)      Given the different contribution channels presented in Figure 7.5, can you argue the most likely (Future) distribution channel for spectator sport? You may want to consider the strategic distribution principle of vertical integration.


A vertical integration strategy is one in which one company operates at more than one level of the distribution channel. The distribution channel begins with the manufacturer that makes a product. The manufacturer sells the product to a wholesaler. The wholesaler sells to retailers, who ultimately sell to end customers. When a manufacturer sells directly to end customers, it uses forward vertical integration. When a wholesaler or retailer manufacturers, it uses backward vertical integration.


In my opinion the most likely distribution channel is this vertical integration style, as it offers various advantages to the teams:

–          More control

–          Cost control

–          Competitive Advantages

–          Differentation

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Fernwood Women’s Health Club


–    Over 70 fitness clubs situated in every state of Australia, clubs are only for women


Physical evidence:

–    Website in women-style, pink and white, pictures of happy women



–    Only women work as instructors in order to create relaxed atmosphere



–    3068 classes per week offered, a lot of different programs like Beach Bod Boost, Operation Wedding Dress etc.

–    Personal Training possible

–    Specials like childcare and free breakfast

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