Business Marketing

The Chicago Bulls engage in Business Marketing every time the organization attains a new player, coach, or trainer. These newly acquired (and veteran) personel are classified as business products because they are "bought" to attain a level of success on the hardwood that will likely get them into the postseason and generate massive revenue, thus helping the organization reach their marketing goals.

The Chicago Bulls also create a relationship with their fans (consumers). When a fan buys season tickets it ensures the Bulls that they will be there for every home game the Bulls play. So for 42 home games in the season, excluding playoffs, there will be a ticket that has been sold to every season ticket holder. Season tickets range from $1,000 to $8,000.Talk about Commitment to your team. Here is an overview of the season ticket holders prices and benefits.

Moreover, with the Chicago Bulls having only one retail store, which is in their stadium, they rely on Strategic Alliances to generate most of their merchandise revenue. Company's like Footlocker and Modells, sell team jerseys, hats and other merchandise. These alliances help the NBA and companys like Footlocker generate high profits. Just look at the predicted losses Footlocker would have sustained had the NBA lockout continued.

The Chicago Bulls as an organization relies heavily on Business Marketing to make profit and gain revenue. How else can an organization attain 169 million in stadium revenue alone. The Bulls are going to be a strong organization for decades to come and wiht the NBA lockout drawing to a close, they will not miss a beat this year.

Segmenting and Targeting Markets

The NBA has numerous teams in different cities, sometimes two in one like the Los Angeles Clippers and the Los Angeles Lakers. Where they are located is usually where their target market will become in reference to geographic segmentation which segments markets by region the region of a country or the world, market size, market density, or climate. For the Chicago Bulls their segmented market will be in Illinois, Chicago to be exact. They use the city of Chicago as the center of their basketball operations and is their most profitable region in terms of ticket sales and merchandise. As stated in previous blog post, it doesn't hurt their cause that they're the only team in the state.

According to Scarborough Research, NBA fans are 60 percent male and 40 percent female. Thirteen percent of fans are ages 18-24, 19 percent 25-34, 20 percent 35-44, 19 percent 45-54, 14 percent 55-64 and 14 percent 65-plus. Ten percent of NBA fans have an average annual household income less than $25,000, with 18 percent between $25,000 and $39,999, 11 percent between $40,000 and $49,999, 18 percent between $50,000 and $74,999, 18 percent between $75,000 and $99,999, 14 percent between $100,000 and $149,999, and 10 percent at $150,000 or more. These numbers help to determine the demographic segmentation which is segmenting markets by age, gender, income, ethnic background, and family life cycle. As you can see, the NBA is very diverse in terms of gender with only a 20 percent discrepancy, in income with the highest discrepancy between two household incomes being 8 percent, and in age with only a 5 percent difference. Although these numbers seem close the Chicago Bulls target market is males 25-34 with an average income between 50,000 and 75,000.

Due to the lockout and its continuality, if the NBA season is canceled there will not only be huge losses in profit but also fans will grow weary and lose interest in the NBA causing less fans to watch and view games in the future. The is bad news considering the NBA had one of their highest t.v. and attendance ratings in recent years, actually since Michael Jordan retired from the Bulls. Now with new superstars like Derrick Rose, Kevin Durant, Blake Griffin, etc the NBa is losing fans and their demographics wont look the same next year without an NBA season.

Holiday SeasonaBULL

Due to the NBA Lockout and the refusal of the NBPA on the latest bargaining agreement, which would have split revenue profit 50/50 between players and owners, the hopes of a Christmas game between the Chicago Bulls and the Los Angeles Lakers is in major jeopardy. With there Thanksgiving game already canceled there will be no basketball this holiday season much to my dismay and the entire NBA season is on life support. On a good note though, the Chicago bulls will visit many charities, clubs, and also food drives for families in need. The holiday games may be canceled but the spirit will always be intact.

Developing and Managing Products

New ideas are the cornerstone of any business. Without personnel to brainstorm about new product ideas or new ways to enhance old ones there wouldn't be much life in marketing or their product counterparts. Innovations sells and usually this is what marketers are aiming for when thinking of new products.


In March the Chicago Bulls and Vibes Media, a leading mobile marketing company, developed a way so that fans can receive updates via text on live games depending on what they type. If one text score to BULLS you can get the live score of  current game they are playing. You can also see how your favorite player is doing by texting their last name to BULLS to receive a live stat update. The Bulls are the first team to introduce this type of ability to receive self-driven live game scores.

"SMS has been a key component of our digital marketing platform for three years," said Jeremy Thum, director of interactive marketing for the Chicago Bulls. "Introducing this groundbreaking functionality, however, moves us closer to our goal of expanding mobile capabilities while allowing our fans control over content they receive. In just a short time, the campaign has already attracted more than 4,000 unique users and continues to grow with each game."

"We've recently seen an explosion in SMS text messaging, as industry experts predict that over 2 trillion messages will be sent in the US in 2011," said Jack Philbin, Vibes co-founder and president. "As a result, more brands are taking advantage of mobile to connect with consumers because your mobile phone is your most personal device, and it gives users information immediately. The Bulls have created a great program that lets their fans always stay connected to the team – an example of a storybook franchise that has expanded its excellence into an innovative mobile initiative."

These two quotes shows how innovation is key to a great business and how the Chicago Bulls thrive to be the front-runners not just on the court but off it as well.

Intergrated Marketing Communications

In order to build up hype for the next season the Chicago Bulls go through many events which in turn will create a fresh start and have leave fans with championship aspirations. AIDA can be intergrated in this process.

A=Attention

The Chicago Bulls grab the fans attention for the upcoming season during the NBA draft and free agency periods. This is when new players join the team and veterans leave. The Bulls draft for success and go into free agency with the hopes of landing someone who can help them in their road to glory. Last year the bulls traded away the draft pick but they made a lot of noise in free agency. Deals with former All-Star Carlos Boozer and the signings of defensive minded coach Tom Thibodeau grabbed the fans attention.



I=Interest

After the Bulls sign their draft picks and free agents they start training camp. This is when fans get their first peek as to how their team will play.  It is usually televised and can be seen on NBA T.V. during the summer. Many pplayers who are not signed on to the team get invited and management makes a decision to sign them if the player gels with the team.



D=Desire

After training camp ends the Bulls start to play their pre-season games which are exhibition games versus other NBA teams.  These games are televised and fans can buy tickets and see these games and enjoy basketball atmosphere in October. The Bulls also partake in Media day where they have photoshoots, take interviews and talk about their team and their goals for the upcoming season.



A=Action

The Bulls finished the season with the best record in the NBA and only 3 wins away from reaching the NBA Finals. There were numerous amounts of Bulls games which were sold out and they had one of the best T.V. ratings in the league.  Derrick Rose won the M.V.P. award and Tom Thibodeau won coach of the year.  It was a succesful season that ended in heartbreak but it lit a fire on this team to do better this season. If this season ever starts..........

Product Concepts

The Bulls play in one of the largest markets in the NBA and have benefited financially because of their location. They also benefit from the fact that they are the only basketball team in the city as opposed to in baseball where you have the Chicago Cubs and the Chicago Whitesox. Being the only team in the state means there is no real competition when it comes to a fan wanting to watch basketball in the city of Chicago where there are over 9.5 million people living in the metro area. For the 2009-2010 season the Chicago Bulls drew in an average of 20,725 fans, the most in the NBA despite posting a 41-41 record (24-17 at home). These numbers could not have been achieved without Derrick Rose who I consider to be a specialty product of some sort to the fans. The Bulls drafted the Chicago born phenom and now he is the face of the franchise. From selling jerseys to sneakers to autographed basketballs, the Bulls now have someone who can sell tickets or anything basketball related because of his marketability. In reference to the book, Derrick Rose is the largest product line the Bulls have.

In the case of the Chicago Bulls online and stadium store most of the products are shopping products and can only be found in sporting goods stores. These items are homogeneous because jerseys, basketballs, and other items are relatively the same but are made by different manufactures, the authentic jerseys and itmes being priced higher the their replica counterparts.

Sales Promotion and Personal Selling

The Chicago Bulls have games in which there are free promotional giveaways. This lures in fans to want to buy tickets and attend the game that day. Giveaways usually include bobble-heads, posters, hats etc. This year the Bulls will be giving away a Scottie Pippen bobble-head, a Luvabulls poster( Bulls Cheerleaders), a Nerf basketball hoop and many more. Here is the link to all the promotional games . These items usually have a target market. For instance, some items include 6 pack coolers and Cheerleader posters while others include youth jersey t-shirts. Moreover, the Chicago Bulls also hold sweepstakes in which you can have a chance to meet, greet and play with players.




















 The Chicago Bulls store has same a promo called same day shipping so the fans can buy their item online and receive it the same day. It is very convenient for fans that really need that jersey just in time for the game. Also, if a customer signs up  they can get exclusive coupons to the store via email and new product updates. The coupons consist of save 10% your next Bulls purchase and many more.

 There was this one promotional night that i remember. It was 2 years ago and i was watching the bulls game on t.v.  the score was 98 to 90 and Kirk Hinrich was on the line. There was 20 seconds left and the Bulls had already sealed the win but when Hinrich missed the free throw the whole entire arena started booing him. i did not understand as to why until the announcer stated that if the Hinrich would have made that free throw every ticket holder would have won a free Big Mac from McDonalds. Talk about pressure, I wonder if he missed it on purpose because he is a Burger King guy .

Advertising and Public Relations

Every season, the NBA uses a slew of commercials to let casual fans know that the start of your favorite teams campaign is about to begin. There is usually a commercial that touts many NBA stars in a highlight reel commercial that makes fans excited for the season which usually runs on ESPN, TNT, and ABC. But, for every team that has their own channel that broadcast their games there is a team commercial to make the locals ecstatic. The Chicago Bulls have their locally televised games split between Comcast SportsNet Chicago and WGN-TV. Television is not the only way you can get your dose of the Bulls. They also have a radio station where they broadcast live play by play of the game so if your stuck in traffic or if you have no more gas at least you have your basketball.

The Bulls commercial don't just serve as a reminder to watch the game but to experience the game live. After the commercials you can see many teams try to entice fans to buy tickets. These tickets usually come in packs like family packages. When the games is being played the announcers usually cut off to the teams schedule and highlight key match-ups which also serves as advertising.Games are not the only product the Bulls are advertising though, they also have commercials where they want you to shop online so one can buy Chicago Bulls Jerseys and other memorabilia.

Players also serve as a huge advertisers. Many players have participated in commercials, from funny little skits to breast cancer awareness. When a superstar catches the eyes of national television they get propelled to rock star like status and help their teams popularity as well. There is no denying the marketing power superstars have throughout the community. I just wish they can make sign a new CBA deal so that i can be inspired by one of those fun and pleasure advertising commercials mixed with some mood and musical executional styles.

Retailing Bulls

The Chicago Bulls have their own shopping website where you can shop anything related to the team. As an online retailer (Electronic Retailing) one can shop from items like basketballs to jerseys to fatheads etc. The site offers same day shipping from their "Chicagoland Warehouse". If your an avid Derrick Rose fan like i am then you too can appreciate all the items you can order by the click of a button. And if your not , well you can go to your team store. Moreover, if you don't have a favorite team then the NBA store is right for you. You can shop for anything basketball related at the NBA Store website. I recently bought a shooting sleeve online and got 15% off just for signing up. Granted it was only 3 dollars off but those 3 dollars made for a good deli sandwich.

There are three NBA stores opened worldwide, two in China and one in New York City. The first NBA store opened in 1998 on 5th avenue and 52nd street.The NBA store is considered a Specialty Store. The store has all of the products that are available online and many more. The store is considered a tourist spot with many people going through its doors to experience the basketball phenomenon. Celebrities and important guests have made many appearances. Among them, former president Bill Clinton, the Mayor of London Ken Livingstone, Destinys Child, and Run DMC. The latter two having performed at the store. The store allowed customers to book parties and other celebrations while also allowing charities to host many charities events. Many NBA players have visited the NBA store on their way to face the Knicks or Nets and many greats and current players visit and provide autographs. The NBA store is now closed due to high rent. It will operate temporarily in the fall at 590 Fifth Avenue but is searching for a new home where more memories can be made.

Being from New York and loving the game of basketball i have always enjoyed going into the NBA Store on Fifth Avenue. With its illustrious revolving doors and basketball inspired designs it was always an exciting feeling going inside.  It also didn't hurt my cause knowing that many NBA players walked through these same doors.My favorite aspect of the store is all the memorabilia. When you walk in your not looking for just a shopping experience but an overall life experience like when you visit the Empire State Building or the Statue of Liberty. The retail workers are also very knowledgeable and i always try to give them my 2 cents on whats going on around the league. It is unfair to the them trying to debate with me because when your in retail the customer is always right.

Consumer Decision Making

Choosing a favorite team is usually based on a where a person grew up. For example, if you were born in Los Angeles you would most likely root for the Lakers because of their championship success and overall pedigree. Moreover, a viewer might also choose their team based on their favorite player eventhough one does not live in the same city like a New Yorker rooting for the Miami Heat because Lebron James is wearing their jersey.

 When a person chooses a favorite team they usually start watching them on television whenever they can and this act starts a relationship with the viewer and the organization. Then the consumer tries to buy a jersey, say a Derrick Rose jersey if you root for the Bulls, to show his team pride to friends and family. As the popularity of Derrick Rose rises and the Chicago Bulls keep winning they start getting new viewers across the country which pushes their local and national T.V. view count. The Chicago Bulls were 8th in the NBA in national televison ratings rank. This envokes polpularity around the whole organization and you see it through sell out crowds and millions of viewers watching. Derrick Rose's jersey was number 5 in sales only behind greats likes Lebron and Kobe, not bad for a 22 year old.

After a person chooses a favorite team and watches them play thoughout the year they are going to want to experience the whole fiasco live which then boost the organizations ticket sales. Last season the Bulls pulled in 20,725 fans at the United Center, the most in the NBA.

Finally, when being a long time fan of a team and following them throughout your life you start buying season tickets. The no better experince then being with your beloved team at every home game. The Chicago Bulls had 2,500 season ticket holder when last recorded. Now thats what i call commitment on the consumers decision making behalf.

Global Vision

The Chicago Bulls were one of the biggest catalyst in making the NBA into a global market because of Michael Jordan. Jordan became a worldwide icon in the 90's. His aerobatic playing style on the court and his mass appeal off it made people around the world want to catch a glimpse of his greatness. He became a brand of his own and helped globalize the NBA in places like Europe and Asia.


Today, the NBA is known worldwide and sells team merchandise and televises games throughout the world.  They have five European offices - London, Paris, Milan, Istanbul and Madrid and four offices in China. They even have an NBA GLOBAL website where people can visit the website and get news on the NBA in their own language. The NBA has even staged high-profile sell-out events in London with friendly preseason games being hosted at the 02 arena annually.  David Stern (Commissioner) has even stated that he would like to globalize the league by creating a team outside the America.

 

The NBA also has many stars that were born in foreign countries. They include Steve Nash from Canada, Tony Parker from France, Dirk Nowitzki from Germany, and Chicago Bulls own Luol Deng from Britain. With the inclusion of the Toronto Raptors the league also has a team from Canada. The NBA will continue to globalize throughout the year eyeing markets in India and continuing to have relationships in Europe and Asia.

 

The Marketing Environment

The Chicago Bulls, and the 29 other NBA teams, target the community in which they play. The Bulls market around the people that live in Chicago from all races and ages. The teams respective stadiums ( The United Center for the Bulls) are filled with all types of fans. Men and women of all ages can be seen around the stadium. But sometimes, like what happened in game four of the playoffs versus the Pacers at Indiana. The popularity of one team can be overwhelming.
As you can see, the majority of the fans have a red jersey (Bulls road jersey colorway) as opposed to Pacers jersey which is mainly yellow and white.

The Chicago Bulls, in association with the NBA, have campaigned to draw fans in of hispanic ethnicity. Every year they host Noche Latino or Latin Nights if you will. This program celebrates the NBA's unique and dynamic group of fan base. On this night the Chicago Bulls wear special jerseys for latin night as well as festivities inside of the stadium.



Athough, they mostly advertise for their male counterparts, 40% of the people viewing the NBA are females. Albeit, sports is considered an entertainment for men and going to a sports stadium or sports bar is considered what men do. Here is an article about female fans in the NBA.

All in all the Chicago Bulls target market is anyone and everyone. People from any type of background or heritage can sit down next to each other and watch a Bulls game while wearing their favorite Bulls jersey. 

Ethics & Social Responsibility

For the Chicago Bulls, ethics usually concerns how their players act on and off the court.  On the court, players cannot argue a call explicitly with a referee, or perform in any unsportsmanlike conduct including excessive taunting, fouling players above the neck, using profanity, etc. If they do they will be hit with a technical foul. Technical fouls usually end up with players paying thousands of dollars in fines and if they get 15 technicals they will get suspended. These rules are to ensure the integrity of the game as well as respecting it. Joakim Noah was the leader in technical fouls for the Bulls last season (6) which is fairly low. The Bulls, as a whole, did not get one player suspended for the 2010-2011 season. Off the court, players cannot use any kind of illegal or supplemental drugs. Players also have to control their off the court actions as well because kids look at these athletes as role models and the image that they send out to the community should be a positive one.

Fan conduct in the stadium is another ethnic code that is stated within the organization as seen in the website: Fan Code of Conduct

The NBA and the Chicago Bulls also celebrate NBA Green Week which generates and raises awarness to protect the environment.They also have a page dedicated to the community going green.

•  The Chicago Bulls Green Week
•  Chicago Bulls Going Green

The Chicago Bulls are aware of everything around them and the way they can influence the community. Going Green is a step towards the right direction in terms of building awareness throughtout the community. They players also fight their heart out trying to win games while still being able to mantain good sportsmanship. This is how a team and organization should run.

Bulls 1996 Legacy

For the past three years there has been a Chicago Bull inducted into the Hall of Fame. All three of these individuals were apart of the 1996 team that went 72-10 (NBA record) in route to a fourth Bulls championship. I believe this is the greatest team to ever play in the NBA. If you consider the way that team was brought together that summer with former Detroit Pistons "Bad Boy" Dennis Rodman, who feuded with the Bulls in the late 80's early 90's, and Michael Jordan entering his first full season after retiring, this is quite an accomplishment. In a Dennis Rodman interview he explains that when he was being recruited by Phil Jackson and the Bulls the first thing he told Rodman was to apologize to Scottie for a hard foul that made Pippen fall into the crowds. Pippen forgave him. Phil then asked Rodman if he wanted to be a part of the Chicago Bulls, he said i don't care if I'm here or not. Phil took this as a yes and a championship team was born. In the three years they were together they won three championships and combined for a regular season record of 203 wins and 43 losses. They are one of the greatest trios of all-time and one can only speculate what they would have done had they been together in their primes.(all three were 30 years or older)


Michael Jordan, Scottie Pippen, and Dennis Rodman entered the Hall of Fame in 2009,2010, and 2011, respectively. They each had an illustrious career. A career of champions if u will. Michael and Scottie each have six while Rodman has 5 (winning 2 earlier in his career with the Pistons).  There is no doubt this is the greatest team of all time, even the greatest player agrees with me.

There is no arguing with the man in the video, or is there? If you think there is a better team out there then voice your opinions.

Strategic Planning

Gar Forman's (the Chicago Bulls current general manager) plan is to put out the best team that will make them contend for a championship every year. He has to talk every offseason with free agents and explain to them why the Bulls are the best team for him and not any other of the 29 teams. He also has to deal with resigning players that are important to the franchise. Right now the Bulls have a great team and it has made them relevant again as their stadium gets sold out on a nightly basis. Merchandise has also sky rocketed with Derrick Rose Jersey being the number 1 jersey sold in the NBA.

Chicago Bulls Mission Statement

According to the Bulls website:

The Chicago Bulls organization is a sports entertainment company dedicated to winning NBA Championships, growing new basketball fans, and providing superior entertainment, value and service.
We aim to achieve our mission by working hard to emphasize the following core values:

• Mutual respect for each other, and a commitment to excellence, innovation, integrity and quality in everything we do.
• By providing our guests with superior entertainment value in a clean, secure, and comfortable environment—win or lose—regardless of their interest level in basketball.
• By helping our sponsors build their brands and grow their business.
• By treating our respective constituencies with respect, appreciation, and as we ourselves would want to be treated and serviced. In other words, by putting our fans and sponsors first every single day—and meaning it.
• By making our community a better place to live through our support of worthy social causes.
• By involving our guests in the game as active participants—not merely spectators.
• By knowing who and where our fans are, and reaching out to them.
• By working hard to make NBA basketball the most popular sport in our community and by selling and humanizing our players to everyone we meet.
• By being proactive and accountable in carrying out our mission.

The Chicago Bulls organization! Many people working together in a fiscally responsible way to grow our customer base and to win more World Championships.
Many people. One attitude. To dazzle our fans and sponsors.

A Brief History on the Chicago Bulls

The Chicago Bulls are the third most successful franchise in the National Basketball Association (NBA) in terms of Championships (6), behind the Los Angeles Lakers (16) and the Boston Celtics (17). The Bulls are well known for having one of the greatest dynasties in the 1990's with two of the greatest basketball players of all time at helm, Hall of Famers Michael Jordan, Scottie Pippen, and a Hall of Fame coach in Phil Jackson. Together they managed to win 6 NBA Championships in the 90's decade, including two three-peats.. During the 1990s, the Bulls helped spread the popularity of the NBA around the world. The 1998 NBA Finals was the most watched championship series in NBA history. They are also the only team in history to win 70 or more games in a single season (1995/1996).
 


The Founder of the Chicago Bulls is Dick Klein. He tried to purchase the team in 1963, but he failed, and the team left the city after posting a 25-55 season record. However, Klein was determined to bring professional basketball back to Chicago, and started recruiting local businessmen to help him support an expansion team. Most investors were skeptical of Klein’s request, given the failure of the Zephyrs (the team before the Bulls came into town) and their predecessors. But when Klein received the support of the American Broadcasting Company, who was negotiating with the NBA for television rights, the tides changed. ABC also joined the bandwagon and on January 26, 1966, his group was finally awarded an NBA expansion franchise at a cost of $1.6 million, and Klein was named general manager. Klein wanted to give the team a  new nickname. He wanted the team to represent images of the Chicago stockyards, which were close to the teams stadium. According to Klein, he had originally considered Matadors or Toreadors, but when his youngest son dismissed these nicknames as “a bunch of bull,” he decided to name the team the Chicago Bulls. He had one of his neighbors design the Bulls logo, which has not changed in 45 years.












The Chicago Bulls have returned to glory these past couple of years and are looking to make a run back to the top behind League MVP Derrick Rose and Stars like Joakim Noah and Luol Deng.