You have been tasked with advertising the new line of clothing/sports accessories. You have been instructed to
Question:
You have been tasked with advertising the new line of clothing/sports accessories. You have been instructed to consider two methods of marketing. 1 st by running a standard 30 second advertisement on televised sporting events, and 2nd by sponsoring an athlete in a televised sporting event, specifically you want to supply clothing to a promising athlete for exposure. You are interested in 3 factors before you decide on what to advertise/who to sponsor.
1. Are athletes improving over time? If so, you can market clothing/accessory technology as part of this reason and sell your apparel as the next breakthrough technology.
This will be done by collecting Olympic data from a recent and historic Olympic event and determining to an appropriate confidence level whether one group was “better” than the other on average. (This data is not provided)
2. Is there a correlation between the performance of a sponsored athlete and the exposure that athlete brings to a televised sporting event? This will be done by analysing the televised exposure percentage that the top 20 golfers received during 6 tournaments and determining if the data is correlated using a scatter plot and linear regression. (This data is provided)
3. Is the expected exposure time the athlete would bring worth more than their sponsorship cost compared to running advertisements for the same amount of time?
You have an opportunity to sponsor a golfing athlete at a cost of $299,000. They are going to be playing in an upcoming televised tournament. The cost of a televised advertisement in this event is $39,000 per minute. The tournament is televised for 2 hours with 30 minutes of advertising in that 2-hour timeslot.
You wish to know if the potential sponsorship of the athlete would be worth more than the cost of their sponsorship. That is, is paying for advertisements for the same amount of time the athlete is expected to bring in exposure more or less expensive than the cost of sponsorship? From this provide feedback as to whether you recommend sponsoring the athlete.
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella