Analyzing NBA Cares: A Sport Marketing Case Study, MMS712

This case study analyzes the NBA Cares program, a corporate social responsibility initiative launched by the National Basketball Association (NBA) in response to the "Malice at the Palace" incident, a highly publicized brawl. The study explores the relationship between sports and philanthropy, e...Read More

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CASE STUDY - NBA CARES
UNIT CODE: MMS712
UNIT NAME: SPORT MARKETING
UNIT CHAIR:
STUDENT & ID:
DUE DATE:
WORD COUNT:
I certify that the attached work is entirely my own, except where material quoted or paraphrased is
acknowledged in the text. I also declare that it has not been submitted for assessment in any other
unit or course.

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TABLE OF CONTENTS
SR. NO SUBJECT PG. NO
Part 1 Summary and Scope 2
Part 2 Case Study 4
1. Introduction: Incorporating Communal Welfare
Policies In Sport
4
2. ‘NBA and the Basketbrawl’ 4
3. Understanding Public Attitude for Devising a
Marketing Strategy
7
4. NBA’s Marketing Ploy - ‘NBA Cares’ 9
5. NBA Care and its Promotional Mix 12
6. Conclusion – A Successful Initiative 16
Part 3 Questions and Answers 17
Reference List 20
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PART 1 - SUMMARY AND SCOPE
Relationship between sport and philanthropy is interlaced. As professional athletes have
garnered considerate amount of attention for activities which they perform on and off the
field of play over the years, a corresponding stakeholder expectation of their charitable
involvement has followed which has been scrutinized and analysed with a microscopic lens.
Indeed, athletes form a unique resource pool which the sport capitalizes upon to create an
impact on social issues coupled with gaining positive associations for themselves
This case study endeavours to present and highlight the powerful role of marketing and
promotional strategies exercised in manipulating public perceptions towards the National
Basketball Association (“NBA”) in the aftermath of the infamous 2004 brawl between the
Indiana Pacers and Detroit Pistons (“Event”) wherein the fight extended into the stands with
the spectators getting involved (Giannoulakis & Drayer 2009, p. 454). Considering a ‘social
contract’ had been violated between the fans and players, the NBA had to address and
respond to an aggressive media backlash (Green 2014, p. iv). The NBA, in its capacity of an
organization governing the sport of basketball not only in the United States, but also in the
world, found itself and its players under intense scrutiny from the media and its fans, thus
disparaging the reputation it had built over the years preceding the said Event.
Accordingly, the NBA countered the said Event through its corporate social initiative in the
form of the ‘NBA Cares Program’ (“Program”) in an attempt to restore the credibility and
image of its players and the sport. This case study examines the evolution of marketing as a
function exercised by the NBA and its Program stating that it has assumed centres-stage in
the sport industry today. It further proceeds to highlight the importance of understanding
public attitudes before strategizing a marketing plan as it is crucial to understand the needs
and demands of the market before catering to it. Thereafter, the case study proceeds to
analyse the various promotional tools used by the Program such as public relations,
reputational management and the new media such as Twitter, Facebook and Instagram
wherein the impact of the same on public perceptions is ascertained. The impact of social
media for projecting a positive image of an organization cannot be overlooked by sporting
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bodies like the NBA today. Correspondingly, the Case Study concludes by stating that the
public relations and promotional campaign adopted by the NBA was a success considering it
has made significant financial strides as well as widened its fan base globally since the
aftermath of the said notorious Event.
Subsequently, the author attempts to engage the readers by letting them test their
knowledge bank on the subject of sport marketing in the form of a ‘Question & Answer’
segment to further expand their horizon on the issues presented by this case study.
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PART 2 – CASE STUDY
1. INTRODUCTION: INCORPORATING COMMUNAL
WELFARE POLICIES IN SPORT
Controversies involving team players in American professional team sports is commonplace.
Brawls, alcohol and drug abuse, steroids, involvement in criminal activity, sexual abuse and
the like have dictated headlines, thus resulting in negative press coverage. According to
Giannoulakis and Drayer (2009, p. 454), it is unsurprising that professional leagues like the
NBA find themselves in a public relations (“PR”) and marketing skirmish to establish that
their players are not just role models, but also leaders in their respective communities. As
noted by Babiak and Wolfe (2006, p. 215), teams and their respective leagues are realising
the importance of developing positive perceptions about the sport in the eyes of the public.
Hamilton opines (in Babiak et al. 2012, p. 159):
Players, in addition to their work on the field, must also do their part in integrating the team
with the community it represents … the goal is to have fans in the market associate them
and the team for which they play to positive community activities. (Babiak et al. 2012, p.
159)
Therefore, leagues are striving hard to foster policies promoting community development in
order to project their athletes as positive role models. The case of NBA Care stemming from
an initiative undertaken by NBA in the aftermath of the ill-famed ‘Basketbrawl’ is one such
example which we shall consider in detail in the following segments (Green 2014, p. 20).
2. NBA AND THE ‘BASKETBRAWL’
The NBA is a professional basketball league comprising 30 teams across the North American
continent featuring the best basketball players in the world (NBA 2016). It strives to be the
most successful league in the world guided by injecting its expansion plans with values of
social responsibility. It tries to effect positive change in society by channelizing the
popularity of its players towards a wide array of social causes and events (Filizöz & Fişne
2011, p. 1412). It is imperative that it continues to engage in such communal welfare
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initiatives considering the NBA is constantly battling to erase and evade the negative
publicity it has magnetized over the past two decades (as seen in Figure 1) below, especially
in the aftermath of the “Basketbrawl” event of 2004.
Figure 1 – Timeline of Negative Events between 1997 – 2004 (Giannoulakis & Drayer 2009, p. 455)
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Malice in the Palace
‘Malice in the Palace’ which is popularly known as the ‘Basketbrawl’ refers to a violent
incident which took place during a basketball game between the Indiana Pacers and Detroit
Pistons. Ron Artest of Indiana Pacers triggered the violent event by fouling Detroit Piston’s
Ben Wallace during a layout attempt in the last minute of the game with the Pacers leading
97-82. Wallace reacted with a two-hand shove which resulted in escalation of the situation.
This altercation resulted in other teammates getting aggressively involved, which in turn let
Artest navigate through the commotion towards the scorer’s table where he lay down as
the arguments worsened (Green 2014, p. 20).
Figure 2 – Fight ensuing between players of Indiana Pacers and Detroit Pistons
As Artest lay there, an aggravated spectator threw a beverage at him directed at his chest. It
triggered an unprecedented response from Artest who leaped into the stands and
confronted the person who threw the drink at him. Consequently, more players ended up in
the stands with fans spilling all over the court. Men and women feeling insecure in a hostile
climate with children crying around, the police officers had to intervene to control the
situation. The fans, players, referees and coaches were all made to disperse from the court
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with the game being called off with 45 seconds on the clock in favour of the Pistons (Green
2014, p. 21).
3. UNDERSTANDING PUBLIC ATTITUDE FOR DEVISING
A MARKETING STRATEGY
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Figure 3 – 7 P’s of Marketing Mix (Shilbury et al. 2014, p. 8)
Knowing NBA’s ‘Publics’ before devising marketing strategy
In order to develop a marketing plan, it is imperative that the NBA strikes a right balance
between all the 7 variables of marketing namely price, place, physical evidence, people,
process and promotion which is the most relevant and important for the purpose of this
case study (See Figure 3 above). However, before devising a marketing plan, NBA needed to
understand the pulse of ‘Publics’ before it proceeded to executing its marketing plan
(Shilbury et al. 2014, p. 306). According to Gruning and Hunt (in Shilbury et al. 2014, p. 306),
‘publics’ is a word which has a wider connotation that the term ‘target audience’. In the case
of NBA, there are four types of publics relevant to the said organization namely:
 Latent publics who have not yet recognized that they are affected by the said Event
but may be affected by it in the future;
 Aware publics who are affected by the event but may choose not to act or respond
to the said Event;
 Active publics who will initiate strong action on the problem that has arisen; and
 Non – publics who are not affected by the said Event.
Market research on NBA’s fan base prior to the said Event indicated that most spectators
did not hold basketball players’ in the highest regard. In fact, they were often referred to as
“showboats”, “selfish”, “thugs”, “egotistical”, “gangsters”, “punks” and “trouble-makers”
amongst others (Giannoulakis & Drayer 2009, p. 460). Moreover, majority of the individuals
during the market research acknowledged that their negative opinions were primarily
influenced by media coverage i.e. the promotional component of the marketing mix. As
stated by one of the participants during the research:
We see the bad stuff more than the good anyway. If the brawl happened again, then it
would be showed first. (Giannoulakis & Drayer 2009, p. 462).
Therefore, it was apparent to the NBA that it had an image problem which it needed to
address. Thus unsurprisingly, NBA’s marketing strategy swivelled around the ‘promotion’
component of the marketing mix through its initiative ‘NBA Cares’.
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4. NBA’S MARKETING PLOY - ‘NBA CARES’
Evolution of the Marketing Function in Sport Industry
The professionalization of sport in the past 30 years has upraised the significance of the
marketing function (Shilbury et al. 2014, p. 12). As seen in figure 3, the significance of the
marketing function, especially in the sport industry has considerably evolved in the form of
the following phases:
 The Pre-Sport Marketing phase of the 1970’s wherein the sporting bodies and teams
were primarily concerned with operational and administrative tasks with no
emphasis on marketing as a function (Figure 4(a));
 The 1980’s marked by the transition to a more professional form of management
with minimal emphasis on marketing activities as a crucial management function
(4(b));
 The past two decades wherein marketing as a function of sport management forms
the nucleus of an organizations’ strategies considering advertising, public relations
and other forms of new social media have the potential to significantly contribute
towards positive projection of a sporting brand (Figure 4(c) and 4(d)).
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Figure 4 – Importance of Sport Marketing (Shilbury et al. 2014, p. 13)
Birth of NBA Cares Program – A strategic marketing ploy
The NBA demonstrated its familiarity with the evolution of marketing as a strategic sport
management function by introducing the ‘NBA Cares’ Program. Considering the organization
had generated negative publicity over the past two decades with the said Event a final nail
in the coffin, it realised that the marketing function had to be exercised frequently and
strategically to mould the negative perceptions surrounding the NBA (Giannoulakis and
Drayer 2009, p. 454). The said Program endeavours to address social issues which plague
the society with an emphasis on programs that support youth and family development,
education and other health related causes (NBA Cares 2016).
The players make themselves available for offering volunteering services. As noted by
Lombardo (2005), the programs strive to align newly drafted basketball players with local
community organizations and events in order to demonstrate the social responsibilities
associated with their newly formed celebrity status (see Figure 5 below). This initiative
further monitors the players conduct off the court by providing media training, which
consequently helps them make public appearances in socially acceptable and endearing
manner. Scholars like Thomas (2005, p. 72) have provided evidence stating that 80% of
Americans are likely to have a positive image of companies that undertake charitable
activities. He asserts that two-thirds of consumers are prone to switching products because
of the influence exerted by cause-related marketing strategies.
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Therefore, it is not surprising that the goal of such initiatives like NBA Care serves the dual
purpose of not just merely uplifting societal welfare, but also engaging well calculated and
measured public relations efforts and marketing strategies to influence public perception
(Thomas 2005, p. 72). Correspondingly, the NBA Care has provided in excess of 3.7 million
hours of hands-on experience and has provided for more than 1040 places where children
and families can learn, live and play in communities across the world. Additionally, it
engages youth in excess of 12 million who annually inspire playing by endorsing values of
the game (NBA Cares 2016).
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Figure 5 – NBA Cares Program catering to social causes (NBA Care 2016)
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5. NBA CARE AND ITS PROMOTIONAL MIX
According to Shilbury et al. (2014, p. 177), promotion is the manner in which sport
marketers communicate with an existing and a potential customer base to achieve
communication objectives ingrained with information, persuasion and image projection.
Correspondingly, a promotional strategy represents an integrated program of
communication activities identified by the sport marketer as most effective for the purpose
of presenting an organizations’ message, product or service to its target customer base.
Considering the NBA was quick to understand public attitudes towards the basketball
players along with the sport as mentioned earlier, it resorted to launching a promotional
campaign imbedded with promotional tools of advertising, public relations, publicity,
interactive marketing and the new media amongst others (Shilbury et al. 2014, 182).
Cause Related Marketing and Publicity
The NBA Cares Program has implemented a five-part approach towards image building my
engaging in socially responsible activities directed at confronting public issues. It endorses
Fombrun’s (2000) argument that environmental appeal and social responsibility in the form
of ethical practices and community involvement influence perceptions about a sports
organization. Compatibly, the NBA Cares Program engages in the following cause-related
marketing activities such as:
 Honouring active and retired military and defence personnel through its program
Hoops for Troops;
 Providing mentors to youth through its program ‘My Brother’s Keeper’;
 Raising awareness and benefits of making healthy lifestyle choices through its
program ‘NBA/WNBA FIT’; and
 Adopting environmentally friendly practices and promotion of the same through its
program ‘NBA Green’
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Figure 6 – New Orleans Players’ visiting the Red Cross (NBA Cares 2016)
Such commitment to societal welfare is supplemented by an aggressive public relations and
publicity campaign. For instance, images of players engaged in local and global communal
activities are displayed on its website which is accessible to its fans all over the world (See
Figure 6). Furthermore, it has an assortment of service spots under one minute which air
frequently during televised games, thus informing its fan base about its socially responsible
initiatives projecting players in a positive light (Green 2014, p. 8).
NBA Care recognizing significance of New Media
The said Program recognizes the significance of new media in the form of social media
which encompasses interaction and engagement with the fans. Social networking platforms
facilitate fans and the NBA to communicate and collaborate or be in community with each
other (Klosoky in Shilbury et al. 2014, p. 250). In this regard, YouTube has considerable
presence (Shilbury et al. 2014, p. 250). Unsurprisingly, NBA Care has over 150 video links on
YouTube channel which allows fans access to video clips and images of their favourite
basketball players performing acts of service (Green 2014, p. 8).
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These videos are often seen depicting intimidate, informal and relaxed interactions with
fans. Basketball players are shown laughing and smiling with the fans, thus transcending the
celebrity-non celebrity barrier. Moreover, they are even shown teaching at some youth
clinics which are held during the league, concentrating in a fixated manner on the task at
hand. Likewise, they also share their experience which is recorded for their fans worldwide.
Whilst they may gain individual recognition for their efforts individually and as a team, they
are primarily portrayed in the capacity of representatives of the NBA (Green 2014, p. 8).
Furthermore, the growth of Instagram, Facebook and Twitter have made them influential
platforms for engaging and interacting with fans. Indeed, they are forums that provide fans
with a direct two-way communication process with the NBA Care Program and the NBA
brand (Shilbury et al. 2014, p. 250). Statistics show that 55% of Twitter users and 40% of
Facebook users access these platforms primarily for sporting purposes (ESPN Research
2011). Indeed, the social media has provided NBA with a good opportunity to project its
players and teams in a positive light to inspire followers and fans to give something back to
the community.
Therefore, the NBA Cares Program has undertaken initiatives to bolster its presence in the
social media sphere. Today, it is a leader in the social media space and boasts of:
 499,000 followers on Instagram (NBA Cares 2016);
 117,000 followers on Twitter (NBA Cares 2016);
 168,940 followers on Facebook (NBA Cares 2016); and
 26922 followers on YouTube
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Figure 7 – Promotion of engagement with fans on NBA Cares Instagram Account (NBA Cares 2016)
Public Relations and Reputation Management
An organization’s perceived reputation and its public persona are interlinked. Reputation of
an organization is created overtime when a successful symbiotic relationship is forged with
its ‘publics’. Building a good reputation is concerned more with performing deeds and taking
positive actions as opposed to merely talking about them (Shilbury et al. 2014, p. 314).
Besides engaging in community based activities, the NBA wanted to ensure that it maintains
a healthy persona of the players, teams along with the sport in the eyes of the public. Thus,
a holistic approach towards reputation management was the need of the hour.
Correspondingly, the NBA formulated a well-devised and publicized policy concerning the
dress code of players who were not in uniform at NBA and other team related functions.
They were required to wear business casual attire on such occasions. NBA went a step
further and banned articles of clothing such as work boots, sneakers, shorts, sleeveless
shirts, pendants, chains and headgear of any kind (Green 2014, p. 32). Stankovic (2005)
opines that image is everything in business. The said dress code aligned itself well for
fostering interest from sponsors and corporates, thus increasing the prospects of generating
a higher revenue.
Besides the obvious financial benefits, the said policy constituted an effort to consolidate
and enhance the players’ image in the eyes of the public. The “gangster”, “punk” or “street
thug” image which had become closely associated with the NBA basketball players did not
provide for a lucrative ground for pursuing public relational efforts. As noted by Lombardo
(2005), the NBA players were not particularly appealing to the white males in the United
States. Polls in relation to the NBA players indicated a poor perception of the players. Since
the white male adult formed the fulcrum of the NBA fan base, it was crucial to take their
perceptions towards the players and the sport into account (Giannoulakis & Drayer 2009, p.
454).
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6. CONCLUSION – A SUCCESSFUL INITIATIVE
As evidenced in the said case study, the aftermath of the said Event had far-reaching
implications on the integrity and the perception of the sport. The NBA found itself in a
situational crisis to which it needed to respond in a strategic and timely manner. Many have
questioned the authenticity of the NBA Cares Program due to its sheer timing of it being
introduced. Whilst many scholars have endorsed its approach and attitude towards welfare
of the society, some have raised doubts over its intentions. A widely held notion is that if
NBA really did care about such social initiatives, it should have initiated such measures
before the said Event (Giannoulakis & Drayer 2009, p. 464). It is alleged that the NBA Care is
a mere publicity stunt with the sole motive of appeasing corporate sponsors and increasing
its fan base. In the absence of any tool for measuring the accuracy of such allegations, we
have to rely on numerical facts and figures. Assuming it is a PR stunt aimed at reputational
management, there is no denying the fact that it set out a target of raising a $100 million
within 5 years in 2005 with the aim of opening a 100 safe spaces for kids to play the sport.
Today, it has surpassed its target as it donates more than $270 million towards charity with
more than 1000 places for kids to play and train for basketball (NBA Cares 2016).
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PART 3 – QUESTIONS AND ANSWERS
1. Do sport organizations benefit by engaging in Corporate Social
Responsibility (CSR) related activities?
Society has evolved in the past two decades. Filizöz and Fişne (2011, P. 1407) opine that
what was closed is now open and local has become global. Everybody and everything is
interlinked and interconnected. Earlier, managers of sport organizations were primarily
concerned with meeting economic and financial targets. Such classical societal concepts do
not correspond to present day values and beliefs cherished by society. Today, an
organization is expected to consider a broad spectrum of issues and weigh its moral, ethical,
legal and social impact of decisions it makes. Thompson (2016, p. 192) asserts that not only
is it ethical to engage with activities that benefit the community through the medium of
sport, but it also makes good business sense to do the same. It results in:
 Greater buyer patronage;
 Better for shareholders in the long run; and
 Reduces the risks associated with reputation damaging incidents like the
‘Basketbrawl’
Therefore, it is not surprising that since NBA Cares’ inception in 2005, the NBA brand
has soared in value. According to Badenhausen (2016), the following financial gains
have been made in the previous decade which is a testament to its CSR initiatives:
 TV deals with ESPN and ABC worth $24 Billion, an increment of over five
times from its deal in 2005;
 Big brands like Tissot extending their contracts and offering in excess of $200
million to be associated with the NBA brand;
 NIKE extending its contract and offering $1 Billion;
 The NBA brand itself is valued at $1.25 Billion, three times more than what it
was valued in 2005.
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Undeniably, the CSR initiatives undertaken by the NBA in the form of its NBA Care
Program have significantly contributed to its colossal growth that we witness today.
2. Was the introduction of the NBA Care program immediately
after the ‘Basketbrawl’ a PR error of judgment?
Authenticity of the NBA Cares Program came under scrutiny considering it was unveiled
shortly after the said Event. As noted by Giannoulakis and Drayer (2009, p. 463), the said
Program was viewed as a ‘cover-up’ by the NBA for the negative perception surrounding its
players. Likewise, participation of players in the NBA Cares Program was viewed as a
‘commercial obligation’ that the players had towards the NBA. It probably would have
benefited the NBA had TV commercials and other PR motivated efforts towards positive
projection of players image stemmed from independent third parties like news channels,
newscasts, commentators etc. Furthermore, a strategic pro-active commitment towards
social causes prior to the Event would have created a favourable attitude towards the NBA
and its players and would have contributed significantly towards masking the negative
media attention in the backdrop of the Event (Shilbury et al. 2014, p. 308).
However, as noted by Shilbury et al. (2014, p. 309) negative unplanned events like the said
‘Basketbrawl’ negatively influence the public attitudes. Sport organizations like the NBA and
its players are likely to be under media scrutiny, thus increasing the probability of becoming
involved in a crisis situation. For instance, although it was the basketball fan in the said
Event that threw a beverage at a basketball player who had violated a code of conduct, it
was the basketball player and the NBA as an organization that were portrayed as the
‘culprits’. There is no doubt that the basketball players had crossed the line in attacking fans,
but the media reports turned a blind eye and a deaf ear to provocations made by the fans
during the said game. Therefore, it was imperative that the NBA reacted in a manner that
projected its players in a positive light in the backdrop of negative media attention. Thus, it
was not a PR blunder by any stretch of imagination although such efforts would have
received better appreciation had they been pro-active, rather than it being a reactive PR
strategy.
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Nonetheless, NBA Care’s unswerving consistent commitment of 10 years on such
social causes has come a long way in silencing its doubters and critiques. In
hindsight, facts suggest that it was a good reactionary PR strategy adopted by the
NBA (NBA Cares 2016).
3. What are the shortcomings of excessive reliance on social media
as a marketing and promotional tool?
The NBA through its NBA Cares Program approached the 2013-2014 season with the aim of
increasing their social media presence for engaging with their fans and the community at
large (Heitner 2014). Undeniably, the positive impact of such an initiative cannot be ignored.
For instance, the NBA Green campaign on Twitter resulted in 17,325 uses of the hashtag
within a week’s time, thus creating awareness at an exceptional rate. Heitner further asserts
that the NBA Cares Instagram following increased by a staggering 425% within a year’s time
in 2014.
However, Kunz and Hackworth (2011, p. 18) have thrown caution to the wind stating that it
is imperative that the management team devise strategic policies addressing its social media
campaigns. Excessive reliance on the same can be detrimental for a sporting organization
like the NBA considering, the social media platforms such as Twitter, Facebook and
Instagram are still in their adoptive phase. Statistics and figures in respect of fan following
over social media does not provide an accurate scenario of fans who form a consolidated
consumer base. In fact, majority of the figures represent less than 20% of the actual fan
base (Shilbury et al. 2014, p. 251).
Additionally, a PR campaign can turn into a promotional disaster if the athletes are not
trained well or are not restricted from expressing themselves on social media. Poor
decisions by athletes on social media can have a calamitous effect on their brand (Shilbury
et al. 2014, p. 252). Given the interactive nature of social media, sporting organizations are
not in control of what is said and written about them. Therefore, it is crucial that an
organization like NBA relies on social media with a pinch of salt by ensuring that there are
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restrictive policies with adequate training provided to NBA athletes over reliance and usage
of social media.
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