What Is Sports And Entertainment Marketing ?

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What Is Sports And Entertainment Marketing ?

• Chapter 1

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1.1 Marketing BasicsObjectives

• You will be able to describe the basic concepts
  of marketing.
• You will be able to describe the seven key
  marketing functions.

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What Is Marketing?

• Marketing is planning and executing the
  conception, pricing, promotion, and distribution
  of ideas, goods, and services to create exchanges
  that satisfy individual and organizational
  objectives.
• The American Marketing Association
• Marketing is the creation and management of
  satisfying exchange relationships.

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Marketing Mix

• The Marketing Mix describes how a business blends
  the four marketing elements of Product,
  Distribution, Price, and Promotion.

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The Marketing Mix

• Product What a business offers a customer to
  satisfy needs.
• Distribution Involves the location and methods
  used to make products available to customers.

• Price The amount that customers pay for
  products.
• Promotion This describes ways to encourage
  customers to purchase products and increase
  customer satisfaction.

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Satisfying Customer Needs

• The most important aspect of marketing is
  satisfying the customer. Customer needs should
  be the primary focus during the planning,
  production, distribution, and promotion of a
  product or service.
• 1. Identify customer needs
• 2. Develop products that customers consider
• better than other choices
• 3. You must be able to operate a business
  profitably

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Marketing Functions The Basis of All Marketing
Activities
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• Please Dont Forget My Pizza Party Saturday
• Please-Promotion
• Dont-Distribution
• Forget-Finance
• My-Marketing Information Management
• Pizza-Product/Service Management
• Party-Pricing
• Saturday-Selling

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Product / Service Management

• The designing, developing, maintaining,
  improving, and acquiring products or services so
  they meet customer needs.
• Fisher Price tests new toy ideas with both
  children and parents to make sure children will
  play with them and parents will buy them.

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Distribution

• Determining the best way to get a a companys
  products or services to the customer.
• Television manufacturers like Sony sell their
  products through electronic retailers like
  Circuit City.

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Selling

• Direct and personal communication with customers
  to asses and satisfy their needs. Selling also
  includes anticipating the customers future
  needs.
• Today selling also includes items purchased
  over the internet with no personal
  communication.
• Loretta Lynn and her husband traveling to sell
  radio stations on her single Honky Tonk Girl

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Marketing Information Management

• Gathering and using information about customers
  to improve business decision making.
• Dominos used marketing research to adapt to a
  new market in Japan.
• Smaller pizzas to be eaten as snacks
• Non traditional toppings corn / tuna

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Financing

• This requires a company to not only
• a.) budget for their own marketing activities
• b.) but to provide the customer with assistance
  in paying for the product.
• General Motors offers loans to customers through
  its GMAC Division.

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Pricing

• The process of establishing and communicating the
  value or cost of goods and services to customers.
• Prices to professional sports events and
  concerts are often very expensive because the
  demand for them is very high.

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Promotion

• The use of advertising to communicate a products,
  services, or images to the customer to achieve a
  desired outcome.
• Coupons on the back of tickets promote products
  or services and entice fans into trying the
  products or services shown.

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• Think Critically
• Think of 3 recent sports or entertainment
  purchases you have made. Identify how each
  purchase involved the seven marketing functions.

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1.2 Sports MarketingObjectives

• Define sports marketing.
• Understand the importance of target markets.
• Identify sports marketing strategies.

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What Is Sports Marketing?

• Sports Marketing is using SPORTS to market
  products or services.
• Spectators of sporting events are the potential
  consumers of a wide array of products.
• EX. Apparel, Athletic Equipment Food

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Variety of Sports

• Young amateur sports
• Recreational sports
• High school sports
• College and University sports
• Professional sports
• Olympic sports

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Target Market

• A target market is a specific group of people you
  want reach.
• To promote sell products, a company must know
  the needs wants of the target market.

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How To Find A Target MarketA Company Must First.

• Identify the customer.
• Learn specific information (Demographics) about
  the customer such as
• Age ranges in the group
• Marital status
• Gender
• Educational level
• Attitudes and beliefs
• Income (especially disposable income)

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Market Segmentation

• Is a way of analyzing a market by specific
  characteristics to create a target market.
• These characteristics include geographics,
  demographics, psychographics and product benefits.

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Geographics

• Consideration is given to where the consumer
  lives.
• Examples include
• Beach related items are marketed to beach towns
  and cities on the coast
• Sweet tea traditionally was marketed in South
  because it orginated there

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Psychographics

• Include characteristics such as attitudes,
  opinions lifestyles.
• Examples include
• Marketing new sports or recreational equipment to
  those who believe exercise is important to their
  life style

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Product Benefits

• This means the marketer studies consumers
  behaviors, needs and wants regarding specific
  product benefits to consumers.
• Examples include..
• Hearing aide to the elderly

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Discretionary Income

• DEFINITION Income that can be freely spent.
• Income left over after all obligations have been
  met.

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Spending Habits of Fans

• Important to research spending habits of fans to
  maximize profits on items that are purchased at
  sporting events.
• The price that fans are willing to pay for a
  ticket depends upon
• Interest of the target market
• The national importance of the event
• The popularity of the participating athletes
• The rivalry associated with the contest
• Fans also pay for
• team clothing or equipment
• food
• travel expenses to and from a game

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Did You Know

• In 1998, a family of 4 could expect to pay
  115.00 on average to attend a major league
  baseball game.
• This price included tickets, parking, hot dogs
  and drinks, programs, and souvenir caps.
• The highest cost was for the New York Yankees
  148.56.
• The lowest cost was for the Cincinnati Reds
  89.97.

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4 Marketing Strategies Used in Sports Marketing
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Marketing Strategies1. Sports Logos on Clothing

• Show fan loyalty
• Increase the value of the clothing in the eyes of
  the fan
• Some Consumers feel more successful themselves if
  they can purchase and wear clothing with logos
• Endorsements make money for professional athletes
  and professional and college teams.

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Marketing Strategies2. New Sports Produce New
Opportunities

• Offer new opportunities for endorsements and
  marketing.
• Arena football founded in 1989
• WNBA (Womens National Basketball Association)

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Marketing Strategies3. Gross Impression

• Gross Impression is the number of times per
  advertisement, game, or show that a product or
  service is associated with an athlete, team, or
  entertainer.
• Often the message is is a very subtle one.
• Advertisers hope you will remember when it is
  time to make a purchase.

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Marketing Strategies 4. Timing

• Popularity based on continued winning.
• Loosing streaks can cost more than points in a
  game.
• Timing is extremely important when marketing
  sporting goods.
• Fans want to identify with winners.
• Trends need to be monitored for time to change.
• Success sparks rivalry

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Think Critically

• Design a new logo for a major sporting goods
  manufacturer. Explain what the logo represents
  and why it will be successful. This logo cannot
  resemble current logos.
• Watch a college or professional sporting event on
  television. Select a sports brand represented
  and keep track of how many gross impressions were
  made during the telecast.

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1.3 Entertainment Marketing Objectives

• Understand why marketing must relate to the
  specific audience.
• Relate advances in entertainment technology to
  changes in distribution.
• Recognize the power of television as a marketing
  tool.

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Entertainment Marketing

• There are two ways to look at Entertainment
  Marketing
• Entertainment must be looked at as a product to
  be marketed.
• Marketing should be looked at in light of the way
  it uses entertainment to attract attention to
  other products

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What Is Entertainment

• Entertainment is whatever people are willing to
  spend their money and spare time viewing rather
  than participating in. This includes
• Sports and the Arts, and can be viewed in person
  or in broadcast or recorded form.
• Sports are games of athletic skill.
• Entertainment can be movies, the theater, the
  circus, or even traditional athletic contests.

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Just A Little History

• At the beginning of the 20th century the
  performing arts represented a major form of
  entertainment. This included the live theater,
  the ballet, the opera, and concerts.
• Marketing was limited to posters and word of
  mouth.
• In order to enjoy professional entertainment
  people had to travel and travel was sometimes
  slow and tedious.
• In 1888 Louis LePrince made the first moving
  pictures in Britain.

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• In 1895 the Lumiere brothers were the first to
  present a projected movie to paying customers in
  a café in Paris.
• The first movie with sound was The Jazz Singer
  which opened in the United States in 1927.
• Mickey Mouse arrived in 1928 in Walt Disneys
  Steamboat Willie
• 10 years later Snow White and the Seven Dwarfs
  became the first full length animated film.

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• July 1955 Disney opened Disneyland in Anaheim
  California.
• With the opening of Disneyland a totally new form
  of entertainment was born the theme park!
• Once started technologies of all sorts changed
  marketing, advertising, and distribution forever.
• A current trend is to name sports arenas for
  corporate sponsors.

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• The marketing of entertainment is evolving faster
  and faster with daily changes in technology.
• Products that were innovative yesterday are
  out-of-date today.
• Information managers and promoters must be
  creative and forward thinking in order to
  anticipate the wants of the buying public.

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Television and Marketing

• Television provided sports and entertainment
  marketers with a wide-open distribution channel
  into the billfolds of consumers. The market grew
  quickly and continues to advance throughout much
  of the world.
• In October 1945, more than 25,000 people came to
  Gimbles Department Store to see the first
  demonstration of TV.
• Nine television stations and fewer than 7,000
  working TV sets existed in the United States at
  the end of World War II.

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Televisions Increasing Influence

• The pricing of television commercial time is tied
  to the number of viewers the programming
  attracts.
• 9 TV stations in 1945 grew to 98 stations by
  1949.
• In 1996 there were more than 223 million TV sets
  with many homes having at least 2.
• Advertisers spent almost 42.5 billion in 1996.

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• In 1945 The American Association of Advertising
  encouraged the start of television advertising.
• Television changed the marketing of entertainment
  in a profound way. TV advertising hooked the
  imagination of the consumer.
• In 1946 the Gillette Company staged the first
  television sports spectacular a heavy weight
  boxing match. There was an estimated audience of
  150,000 on 5,000 sets!

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1.4 Recreation MarketingObjectives

• Apply the marketing mix to recreation marketing
• Describe marketing for the travel and tourism
  consumer.

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Recreational Sports

• Recreational sports marketers entice people away
  from home-based entertainment. Golf, tennis,
  bowling, hiking, snow skiing, snow boarding, and
  biking are a few of the more popular recreational
  sports activities.

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• Recreation can be defined as renewing or
  rejuvenating your body or mind with play or
  amusing activity.
• Recreational Activities are those activities
  involved in travel, tourism, and amateur sports
  that are not associated with educational
  institutions.
• Participation in recreational activities usually
  requires the purchase of a combination of
  products and services.
• Participation also requires a time commitment.

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• Marketing costs must be included in the financing
  of a recreational sports facility.
• Professional sports marketers work to increase
  interest in related recreational sports.
• Exciting professional sports figures can increase
  interest in recreational sports and can also help
  increase sales of related merchandise. For
  example Tiger Woods and his success in golf.

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Travel and Tourism

• World wide the travel industry employs 130
  million people and is the worlds largest
  industry.
• Tourism is generally considered traveling for
  pleasure whether the travel is independent or
  tour-based.
• Tourism includes vacations, honeymoons,
  conventions, and family visits.
• A major function of the travel industry is data
  mining- this function is the collection of data
  about which people travel, where they travel, and
  when they travel.

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Niche Travel

• Recreational travel or tours planned around a
  special interest.
• Niche travel can be designed for a group of music
  enthusiasts traveling through Europe.
• The marketing mix in niche travel is critical to
  the success of the business. Planning the right
  tour, promoting and distributing it to the right
  customer, pricing it to attract the customer, and
  making a profit, all require marketing
  information.