VIDEO CASE 3.1 National Football League: The King of Professional Sports The Nat
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Question
VIDEO CASE 3.1 National Football League: The King of Professional Sports
The National Football League (www.nfl.com) is considered
the king of all professional sports in the United States.
It was formed by 11 teams in 1920 as the American
Professional Football Association and adopted the name
National Football League in 1922. The league currently
consists of 32 teams from American cities and regions,
divided evenly into two conferences (AFC and NFC), with
four, four-team divisions. The NFL governs and promotes
the game, sets and enforces rules, and regulates team ownership.
It generates revenue mostly through sponsorships,
licensing of merchandise, and selling national broadcasting
rights. It has been extremely successful because it is
advertiser-friendly. The teams operate as separate businesses
but share a percentage of their revenue. NFL
revenues amounted to $5.86 billion in 2006, and the average
player salary was $1.4 million in the same period.
Players are tough, strong, and fiercely competitive on
the field, but remove their helmets and a softer side
emerges. Marketing research has documented the positive
impact of cause-related marketing on corporate image. The
NFL has a strong tradition of public service and is an
active contributor to various social causes. Bettering communities
and helping others ties into the basic team concept
and is an extension of the NFL’s philosophy. NFL
players strongly believe and encourage others to get
involved, whether it is time or money or anything else—
even the smallest of gestures can make a big difference to
someone else.
Focus groups and surveys have shown that community
involvement is particularly important for an organization
that depends on the community for support. The NFL has
a rich history of giving, and each of the 32 teams has its
own community relations initiatives. The fact that there
are around 1,600 players in the league indicates the farreaching
capabilities of this powerful organization.
According to Joe Browne, Executive Vice President of
Communications and Public Affairs, the NFL views its
public service activities as giving something back to its
customers—the fans who attend the games and watch
them on TV. The NFL has worked with a number of nonprofit
and charitable organizations over the years, with
each team taking on a different issue, such as the
Philadelphia Eagles building community playgrounds.
Each year the Eagles take time off from the world of
sports and business and build a playground in the
Philadelphia area. The New England Patriots help deliver
Thanksgiving dinners to those in need, and the Pittsburgh
Steelers visit the elderly—football players reaching out to
make a difference.
Back in 1974, the league formed a partnership with the
United Way, a national network of more than 1,300 locally
governed organizations that work to create lasting positive
changes in communities and people’s lives. This partnership
is still in existence today and has encouraged fans to
give back to society. Consequently, fundraising for United
Way has soared from $800 million to $4 billion. The relationship
between United Way and the NFL has blossomed
into a charitable enterprise that touches 30 million people
each year by providing funds and programs to the needy.
The NFL’s ongoing ad campaigns remind fans that football
players are regular guys who want to do good in the community
where they work and live. The effectiveness of
these ad campaigns is evaluated by undertaking surveys
that measure people’s awareness, perceptions, preferences,
intentions, and behaviors toward the NFL and comparing
them against benchmarks.
Based on marketing research, the NFL’s marketing
strategy has two pillars: football and community. Football is
its product, something that the NFL does best. Community
means giving back to the community in exchange for all its
support and love. The support of the community is tremendous,
with 18 million tickets sold each season and more
than 120 million people watching NFL games on TV each
week. Then, there is the huge impact of the Super Bowl—
an event that has been the top-rated show each year, seen
by more viewers than any other program, an exposure that
has proven to be an effective messaging medium. The
tremendous reach and power of TV commercials helped
the NFL’s “join the team” initiative get a spectacular start
with thousands of eager fans calling up NFL teams across
the country ready to join the team. The NFL believes that
charity and being a good corporate citizen are essential to
achieve success in business. This makes the entire entity
stronger. By giving back to its customers, the NFL shows
that it cares about them.
The NFL’s impact on the community extends way
beyond the games played on Sundays and Monday nights,
because there is a special bond that fans feel with each of
the teams in the league. Consumer perception and attitudinal
surveys have consistently shown that the NFL is held in
high regard, and the League tries hard to maintain these
positive perceptions. It realizes that at the end of the day,
the NFL is an energy, a symbol that represents American
tradition, which if not maintained would wither away.
Joe Browne describes people’s relationship with the
NFL as a love affair in which the NFL and the teams have
to give this love back to the people for supporting them so
well. That’s what the NFL does through its various programs
such as NFL charities, the NFL football fund, and
the disaster relief fund that the NFL established after 9/11
to give back to the families of those killed in New York and
Washington. There is charity on the field, too; each time a
player is fined, the money is used to help fund various
causes. Fans can get into the game by going to the auctions
section on the NFL Web site, because all of the proceeds
go to players’ charities. According to Beth Colleton,
Director of Community Affairs, NFL stands for quality,
tradition, and integrity—all of which come together to
define Americana. The NFL captures the American energy
like no other—an energy that continues to ignite goodwill
with each passing season.
Conclusion
The NFL has used marketing research to foster immense
goodwill and influence to make a difference to the community.
The strong public service feeling at the NFL and
the active involvement by NFL players in various social
initiatives and programs bear testimony to how seriously
the NFL takes its responsibility toward society and the
immensely positive impact it has on society, all supported
by marketing research. Continued reliance on marketing
research can help the NFL to remain the king of professional
sports.
Questions
1. Football is a male-dominated sport. Discuss the role that
marketing research can play in helping the NFL more effectively
market the league to women.
2. The NFL would like to increase its penetration of the women
segment. Define the management decision problem.
3. What is the main competition faced by the NFL?
4. Define an appropriate marketing research problem corresponding
to the management decision problem in question 2.
5. Develop three appropriate research questions, each with suitable
hypotheses.
6. What type of research design would you recommend for
investigating the marketing research problem?
Explanation / Answer
Answer :- 1-
When dealing with marketing research the essential parts are linking the consumer, customer and the public through various ways of getting information to the marketer. The two vital parts of marketing research is the problem identification research and problem solving research. (Malhotra 2010). The NFL is a sport, which is dominated by men for many years, only recently has the NFL recognize the potential audience in women. They are now acting quickly so they can capture the different segment market to cash in and also to make women more aware and appeal about the sport. The underlining point to the market research question is how does the NFL market the league to women adequately. Marketing research can help address the matter of effectively marketing the league and finding out the role of marketing research when dealing with NFL. The key role of marketing research is to acquire vital information so they can react to the markets offerings, which is to market the NFL league to women. Marketing research measures the information needed and even delivers NFL with valid, relevant, reliable and current actionable information for helpful research purposes. With the absence of marketing research, it is worth taking note that the NFL might have adverse effects with incorrect management decisions, which can later be costly. In essence for improved decision making it is vital that market research has a role to play.
Answer :-2-
A management decision problem confronts the decision maker to make a decision as in what to do. The NFL wants to increase the market penetration in the female segment; in this case the management has to decide what angle should they move in to gain market penetration in the female segment. The decision that the management should make is to change the advertisement slots, which should focus on more female oriented products or brands in conjunction with the NFL. This will attract, appeal and increase the chance of women watching the NFL.
Answer :3-
Tough, strong, and fiercely competitive on the field, but remove the players’ helmets and a softer side emerges. Marketing research has documented the positive impact of cause-related marketing on corporate image. The NFL has a strong tradition of public service and is an active contributor to various social causes. Bettering communities and helping others ties into the basic team concept and is an extension of the NFL’s philosophy. NFL players strongly believe and encourage others to get involved, whether it is time or money or anything else—even the smallest of gestures can make a big difference to someone else.
Answer ; 4 -
Based on marketing research, the NFL’s marketing
strategy has two pillars: football and community. Football is
its product, something that the NFL does best. Community
means giving back to the community in exchange for all its
support and love. The support of the community is tremendous,
with 18 million tickets sold each season and more
than 120 million people watching NFL games on TV each
week. Then, there is the huge impact of the Super Bowl—
an event that has been the top-rated show each year, seen
by more viewers than any other program, an exposure that
has proven to be an effective messaging medium. The
tremendous reach and power of TV commercials helped
the NFL’s “join the team” initiative get a spectacular start
with thousands of eager fans calling up NFL teams across
the country ready to join the team. The NFL believes that
charity and being a good corporate citizen are essential to
achieve success in business. This makes the entire entity
stronger. By giving back to its customers, the NFL shows
that it cares about them.
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