The National Football League (NFL) is the premier professional sports league in the U.S., established in 1920 and currently comprising 32 teams. It generates significant revenue through sponsorships and broadcasting rights while actively engaging in community service and charitable initiatives, reflecting its commitment to social responsibility. The NFL's marketing strategy emphasizes both football and community involvement, fostering goodwill and maintaining a strong bond with fans.
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Case Study Analysis
The National Football League (NFL) is the premier professional sports league in the U.S., established in 1920 and currently comprising 32 teams. It generates significant revenue through sponsorships and broadcasting rights while actively engaging in community service and charitable initiatives, reflecting its commitment to social responsibility. The NFL's marketing strategy emphasizes both football and community involvement, fostering goodwill and maintaining a strong bond with fans.
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National Football League: The King of
Professional
‘The National Football League (www.nil.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 wo
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 around $9 billion in 2011, and the
‘average player salary was $1.9 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 tie into the basic team concept are extensions of the
NFL's philosophy. NFL players strongly believe in this and
encourage others to get involved, whether it is time or money
cor anything else—even the smallest of gestures can make
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 fich 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 far-reaching,
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
Sports
New England Patriots help deliver Thanksgiving dinners to
those in need, and the Pitisburgh 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 al 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 Bow!—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 highregard, 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. U.S. football is a male-dominated sport. Discuss the role
that marketing research can play in helping the NFL more
cffcctively 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
ible hypotheses.
6. What type of research design would you recommend for
investigating the marketing research problem?
References
1, “In a League of Its Own,” www.economist.convbusiness/
displaystory.cfm?story_id=6859210, accessed February 6,
2009.
2. “NFL Team Values/Revenues, Ranked,” www-forbes.com/
lists/2006/30/06nfl_NFL-Team-Valuations_land.hum!, accessed
January 2, 2008.
3. “NFL Studies What Women Want,” www.reuters.com/article/
MediaMarketing06/idUSN2933923020061129, accessed
January 2, 2008.
4. “Making Sure Ads Play to Women, Too,” www.boston.com/
sports/football/patriotv/articles/2004/0 1/28/making_sure_ads_,
play_to_women_too/?page=1, accessed January 2, 2008.
5. “Why the NFL Struggles to Attract Female Fans,” www.
dmwmedia.com/news/2006/12/05/why-the-nfl-struggles-to-
attract-female-fans, accessed January 2, 2008.