Corporate Sales Activities and the Retention of Sponsors in the National Basketball Association (NBA)

Abstract

Certain professional sport organizations fall short of educating their corporate clients with respect to all of the benefits and attributes of the sport products they offer (e.g., season tickets, sponsorship programs, and luxury suites). In response to this problem, Sutton, Lachowetz, and Clark (2000) developed a nine-step framework, “eduselling,” that identifies corporate sales activities designed to assist professional sport franchises in the education and retention of their corporate customers.

Lachowetz et al. (2001b) surveyed all 29 teams in the National Basketball Association (NBA) in an attempt to validate the nine-step process. The purpose of this study was to collect more detailed information about the sales activities used by NBA franchises. As a follow up to the Lachowetz et al. (2001b) study, marketing directors were selected from five NBA franchises. Selection criteria included average to below-average team winning percentage and average to above-average corporate customer retention rates (indicating an effective corporate sales strategy).

Each individual participated in a 45–60 minute phone interview. Data were qualitatively analyzed using the inductive method, and three primary themes were identi-fied—added value, relationship building/developing, and customer education. According to the interviewees, these three areas were most responsible for their franchise retaining corporate customers over the three-year period 1998-99 to 2000-01.

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