| When investing in sports, a marketer is often faced | | | | hospitality program, dubbed "The Tournament Club", |
| with the alternative to use exclusively media, or an | | | | they hired rEvolution to not only run the program, |
| integrated platform of media and sponsorship. One of | | | | but to aid in their efforts to regulate third party |
| the most valuable components of the sponsorship | | | | vendors. The result is that significantly fewer tickets |
| alternative is hospitality, which has long been an | | | | find their way to the public. This means more than |
| underutilized and misunderstood tool by marketers. | | | | increased prices for Joe Fan who wants to see his |
| The changing climate of hospitality at the marquee | | | | team in the big game. It means an increased risk in |
| sports events in North America (The Masters, Super | | | | dealing with ticket brokers and third party vendors. In |
| Bowl and Final Four) will soon change the lack of | | | | turn the hospitality component of a sponsorship has |
| focus that hospitality has received by marketers. | | | | become that much more valuable. |
| Traditionally most of the damage was done due to | | | | In this new hospitality climate if your sales |
| the confusion of hospitality as a marketing function | | | | organization wants to entertain at the most exclusive |
| or a sales function. Sales people grew too | | | | and premier events in the U.S., they have two reliable |
| accustomed to sports tickets and often hosted | | | | alternatives. One is a massive investment in an official |
| friends or long term and stable clients for which they | | | | sponsorship with the governing body of the sport |
| already shared a strong relationship. Marketers would | | | | (anywhere from $5 - $100 million per year) and the |
| stand at a distance and encourage high opportunity | | | | second is the purchase of official hospitality directly |
| clients as guests, but would do little to help in the | | | | from the governing body (prices range from $3,000 - |
| selection of guests or in the post event reporting of | | | | $8,000 per attendee). One option requires a Fortune |
| sales lift. | | | | 500 marketing budget and offers no solution for a |
| This era is quickly coming to an end. Today, | | | | B2B marketer. The second option, although not |
| hospitality offers marketers a rare opportunity to | | | | cheap, is fast becoming the reliable and cost |
| accurately measure sales lift and in turn a marketing | | | | effective alternative. |
| ROI. For sales people, the market for hospitality is | | | | So the question remains, is hospitality a sales or |
| maturing. Easy access to big sporting events is a | | | | marketing function. If it's not clear already, the |
| thing of the past. Ticket allocation is monitored | | | | answer is both. To satisfy the return on investment |
| closely and access is limited. | | | | and accomplish your firm's goals, marketing has to |
| If you haven't already heard about the Mike Tice | | | | work in conjunction with sales to provide access to |
| incident (former coach of the Minnesota Vikings), he | | | | premier events. In turn, the sales organization must |
| was heavily fined and reprimanded by the NFL for | | | | think and act like marketers conducting one on one |
| scalping his Super Bowl tickets which were provided | | | | brand building and in turn increasing sales. |
| by the league. The NFL was the first to launch an | | | | The necessary budget is large and the access has |
| official program, unable to resist the secondary | | | | become increasingly scarce. If you are going to take |
| market pricing of their tickets for the Super Bowl. | | | | the plunge, it would be wise to do your homework |
| This level of regulation and surveillance is not limited | | | | and start with the official governing body. If a |
| to the NFL. The Masters, U.S. Open and now the | | | | sponsorship doesn't make sense and you can't gain |
| NCAA have all followed suit by denying third party | | | | access through an existing media buy, call the official |
| vendors the ability to profit from their product. | | | | vendor. And finally, make sure your marketing |
| In 2006, when the NCAA launched their own official | | | | organization is communicating with the sales team. |