Sports and Entertainment Marketing

1
Sports and Entertainment Marketing

• Unit 2 Lesson 1
• Sports Marketing
• Overview

2
What are some items sports fans purchase?
Hour 4

• Hats
• Tshirts
• Sweatshirts
• Foam fingers
• Stickers
• Flags
• License plates
• Food
• Earrings

• Jackets
• Pants
• Seat cushions
• Socks
• Bags
• Pom poms
• Sticks
• Keychains
• Coffee cups

3
sports marketing
Hour 6

• using sports to market products.

A company with a product or service to sell must
first identify the customer and learn specific
information about that customer.
4
target market specific group of people you
want to reach.

• attitudes
• beliefs
• educational level
• income
• -also known as demographics

• age
• gender
• marital status

5
Three levels of sports

• amateur sports a sport which an individual
  pursues without payment, but for enjoyment,
  challenge or both
• college sports any organized sport affiliated
  within a college or university budget (male,
  female)
• professional sports teams in which athletes,
  organizations and leagues are involved where
  all receive some sort of payment for services.

6
Opening Act page 9

• Select your favorite sport.
• Who is the target market for that sport?
  Why?
• Who would be a good sponsor for this sport?
• (College football 15-40 year old males who like
  football, sponsor Coke)

7
disposable income
Hour 4

• income freely spent

This area of demographics is very important to
marketers..WHY?
8
Price fans pay for a ticket depend on

• interests of the target market
• national importance of the event
• popularity of the participating athletes
• rivalry (competition)

9
Sports marketing strategies

• Logos on merchandise
• Create new sports
• Gross impressions
• Perfect timing

10
Clothing

• Fans buy sports logo clothing for a variety of
  reasons
• loyalty
• value is high because of the team name/logo
• feel more successful if you own products endorsed
  by successful teams/person

11
new sport Arena football

• Started in 1987
• Affordable tickets
• Accessible athletes
• Fast paced (clock doesnt stop)
• High scoring game

12
gross impression

• number of times per advertisement, game, or show
  that a product or service is associated with an
  ATHLETE, TEAM or ENTERTAINER.

Every time you see a product or logo on the back
of a pair of shoes, a jersey, around the arena or
the media mentions a player, team, or product
your brain records that image.
13
Winning is EVERYTHING!
Timing

• Popularity of teams and individuals is based
  almost entirely on winning.

Even tragic events can spark salesHerb Brooks
and Kirby Puckett
14
Unit 2 Lesson 2

• Amateur Sports
• softball golf cup stacking skateboarding frolf
  running cross country skiing poker
• swimming downhill skiing body building bocce
  ball
• Have you SEEN cupstacking?

amateur athlete someone who does not get paid
but plays for enjoyment, challenge or both
15
professional athletes

• usually young, strong, healthy
• amateur athletes any age, physical condition or
  challenge
• (all thats needed is a want to be one)

16
Read the Opening Act page
41

• Answer these questions
• 1. What amateur sports interest you?
• 2. Do you participate or spectate?
• How much money do you spend on each sport?
• (see back of lesson 2 worksheet)
• Be ready to report your results to the class.

17
Marketing is essential in EVERY sport.

• amateur athletes (and spectators) need equipment,
  and money to participate
• Both athletes and spectators need equipment
  uniforms, shoes, pads, bags, lawn chairs,
  portable stadium seats, coolers, food and

18
Read page 45 question 4. Discussion What do
you think the phrase soccer moms means?Why
would someone running for political office pay
attention to soccer moms?
19
Unit 2 Lesson 3

• College Sports

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COLLEGIATE SPORTS

• Winning Strategies p. 29
• Why is Tostitos a good sponsor for a bowl game in
  the Southwest?
• Name three other sponsors of bowl games.....

21
NCAA (National Collegiate Athletic Association)

• governing body of most college and university
  athletic programs. It creates and enforces
  guidelines and rules that schools must follow in
  order to remain in good standing.
• (areas recruitment, gender equity,
  scholarships, gambling prohibitions, ethical
  issues such as illegal activities...drugs,
  alcohol, other offences).

22
How to join

• college or university must be accredited
• four men, four womens sports (one in each
  season)
• follows NCAA rules
• cooperates with NCAA enforcement and accepts
  penalties.
• Current NCAA news Beginning February 2006 no
  nicknames or mascots deemed hostile or abusive
  will not be allowed on team uniforms or other
  clothing. 18 schools affected UND Fighting
  Sioux is one
• Goal promote college athletics with integrity
  and focus on athletes and their game.

23
Effects of College Sports

• Ranking of teams is important! teams get more
  exposure for their sponsors.
• Womens Collegiate Sports
• It wasnt until 1980 that NCAA focused on womens
  sports.
• Female athletes and sports continue to grow and
  continue to have challenges on increasing
  attendance/sales/enrollment

24
Effects of College Sports

• 3. Community Benefits
• events impact more than just that team and the
  school. Each event brings in spectators from all
  over.
• Spectators provide business to
• hotels restaurants shopping malls
  concession gas stations
  souvenir shops

25
4. sponsorship
Effects of College Sports

• provides money for college programs, and exposure
  for sponsoring company
• Its about financing or generating revenue for
  programs. And corporations also sell their
  products and services on site.

26
There are 2 winners with sponsorship..

• the team benefits from the revenue
• the sponsor benefits from higher sales of their
  merchandise

27
A city with a popular college team can expect
these revenues for ONE football game

• Ticket sales 3 million
• Stadium food 380,000

• Hotel sales
• 210,000 to 420,000
• Restaurants, shopping, transportation
• 210,000 to 420,000

28
Read Judgment Call page 39

• Alcohol abuse has emerged as one of the biggest
  social problems on college campuses. Rape,
  assaults, property damage - all are part of the
  numbing toll drinking contributes to.
• ?The NIAAA report presented the alarming
  statistic that drinking contributed to 1,400
  student deaths each year, 500,000 injuries and
  70,000 cases of sexual assault.
• A 2001 study observed that athletes engage in
  binge drinking at higher rates than non-athletes.
  Like these athletes, fans of college sports tend
  to drink more heavily than non-fans.

29

• Dr. Anderson's study found that two-thirds of
  all property damage, 64 percent of violent
  behavior, 42 percent of physical injury, 37
  percent of emotional difficulty, and 38 percent
  of poor academic performance could be attributed
  to alcohol abuse. http//www.csmonitor.com/durab
  le/1999/09/29/text/p2s1.html By Mark
• Clayton, Staff writer of The Christian Science
  Monitor
• NCAA tournament games led all other sports
  events in alcohol-related TV ads in 2002. (939
  ads NCAA vs 925 in Super Bowl, World Series,
  college bowl games and Monday Night football
  combined!)

30
Alcohol Academic Performance
This table describes the relationship between the
average number of drinks consumed per week and
grade point average.
3.6 Drinks A
5.5 Drinks B
7.6 Drinks C
10.6 Drinks D/F
sponsored by FAU Center for Alcohol and Other
Drug Prevention
31

• Is this sponsorship sending a mixed message to
  students that alcohol is acceptable since it is
  big money for sponsorship?
• Why is it unusual to have beer corporations
  sponsor sporting events with athletes who are in
  top physical shape?

32
5. license
Effects of College Sports

• legal right to reproduce a teams logo in
  exchange for payment (another method of revenue
  for a team).

Licensing is used to protect the use of the name
and symbols of a school/team/band/etc. so that
the public wont confuse the image or identity.
33
conference

• group of college athletic teams within the same
  region
• (Big 12 Kansas State, Nebraska, Missouri,
  Colorado, Kansas, Iowa State, Texas A M, texas,
  texas Tech, Oklahoma, Oklahoma State, Baylor,
  PAC 10 UCLA, Arizona, Oregon, USC, Washington,
  Arizona State, California, Oregon State,
  Stanford, and Washington State)

34
Can anyone name the Big 10?

• Minnesota
• Illinois
• Indiana
• Ohio State
• Iowa

• Michigan State
• Michigan
• Penn State
• Wisconsin
• Northwestern
• Purdue

35
To go pro, or not to go pro?Read page 47, 12

• List five questions you can think of that an
  amateur/college athlete must ask themselves when
  deciding to become professional.

36
Unit 2 Lesson 4

• Professional Sports

Survey What are your favorite professional
sports?
37
Opening Act p. 52 (Private ballot)

• How much money are you willing to pay for a
  ticket to the Super Bowl?
• Discuss differing answers.........why, why, why?

38
Financial Impact of Pro SportsTop Football
Franchises

• The Washington Redskins are owned by Daniel
  Snyder, who bought them in 1999 for 750 mil.
  Team Value 1.3 billion!
• Revenue 287 million
• Operating Income 53.8 million
• Player Expenses 133 million
• Gate Receipts 79 million

39
Financial Impact of Pro SportsTop Football
Franchises

• Dallas Cowboys
• Owner Jerry Jones
• (net worth 1 bil)
• 1989
• Bought team 150 mil
• Current value 1.1 bil
• Revenue 231 mil
• Op. Income 54.3 mil
• Player Exp 81 mil
• Gate Recpts 31 mil

• New England Patriots
• Owner Robert Kraft
• 1994
• Bought team 172 mil
• Current value 1 bil
• Revenue 236 mil
• Op. Income 50.5 mil
• Player Exp 92 mil
• Gate Recpts 66 mil

40
You better believe MARKETING is in on this
business!

• There is marketing teams, athletes, coaches,
  stadiums, leagues, cities, apparel/equipment,
  technology, movies, food/restaurants, etc.

41
Top 5 Highest Paid Athletes

• Tiger Woods 80.3 million
• Michael Schumacher 80 million
• Peyton Manning 42 million
• Michael Jordan 35 million
• Shaquille ONeal 31.9 million
• 6-KG 30 mil 7-Agassi 28 mil
• 8-Beckham 28 mi 9-Rodriguez 26 mil
• 10- Kobe 26 mil

42
professional athlete someone who earns a living
participating in a sport

• big league sportsprofessional sports
• BIG stands for revenue potential or commercial
  value just as much as it stands for big as in
  physical size and competition

43
Financial Planning for a Team

• Goal of a business
• PROFIT!
• Professional Teams are
• BUSINESSES!

44

• Others benefit from professional teams as well
• A city can benefit from a professional team
  especially if

• everyone and everything involved with the team
  (staff, headquarters, practice areas, and
  pre-season training facilities) stays within the
  home city. not like the Vikings/Twins
• the stadium/arena is used for events other than
  those for which it is built. like the
  Vikings/Twins
• the team attracts other business development like
  hotels, restaurants, and retail shops.
• (Remember the Vikings and Twins represent not
  only
• the Twin Cities, but others in North
  Dakota, South
• Dakota, Iowa, and even other states that
  dont have
• professional teams).

45
PRESTIGE, POWER, PROFITABILITYWhat a pro team
does for the community

• local employees might get perks from their
  employer.....
• owners of teams get a place politically
• community members get more enthusiasm and morale
• more jobs for the community
• families get a place to go for wholesome
  entertainment (so watch your mouths....)
• more money for the local businesses

46
There are the benefits to a professional team,
but in the end... who pays the bill?

• The new Paul Brown Stadium opened for the
  Cincinnati Bengals in 2000. Some of the costs
  paid by taxes include
• Scoreboard 5.4 million
• New offices, not including furniture 2.67
  million
• 679 wooden-backed chairs etched with team
  logo 135,000.00
• Window treatments (curtains/blinds) for
  offices 48,106.00
• ONE custom made desk 4,854.00

47
Loss of a team can bring on depression in a
community....

• (owners have been known to get bomb threats, hate
  letters, death threats.....HOW PATHETIC!)
• Can you say Norm Green?
• (MINNESOTA North STARS
• now Dallas Stars)
• but since winning is everything, was the move a
  good decision (Stars won the Stanley Cup just a
  few years after moving!)

48
Winning is everything

• good players go to winning teams.
• winning teams have happier fans.
• tickets sell faster (and sell out).
• teams get more tv/radio airtime for games and
  mention.
• teams get bigger/better sponsors.

49
Read Judgement Call p. 54

• Is it right for athletes to earn so much money?
• Is it right for attendees to pay so much for a
  few hours of pleasure?
• What does this say about what Americans stand
  for?

50
league

• sports leagues control where the teams are
  located, number of teams etc.
• (National Football League, National Basketball
  Association, National Hockey League, Major LEAGUE
  Baseball)

51
cartel

• a combination of businesses formed to regulate
  production, pricing, and marketing of a product.
  

(In pro sports it would be the league) Cartels
are prohibited by federal law, but in sports they
are allowed. Hmmmm.can you say MONEY talks?
52
Where to put a new team? Heres what to look for

• Large potential customer base
• Owners usually want public funds (so a supportive
  local government)
• Support of other owners (must vote in a new
  team/location)
• Owner financing (NFL requires from 450 million
  to 600 million for an expansion teamthat money
  is split between existing owners-the league)
• A facility (another LARGE issue, how to pay for
  it)
• Some leagues are managed better than
  otherscompare NFL to MLB.

53
Are you ready for someFOOTBALL?

• Super Bowl Stats 2006
• More Americans watched the 2005 Super Bowl than
  voted in the 2004 presidential election (133.7
  mil vs. 122 mil)
• There are more parties for the Super Bowl than
  New Years Eve.
• Dominos Pizza sales are higher on Super Bowl
  Sunday than any other dayduh!
• National impact of this event is in the millions
  of dollars
• Many buy new furniture, TVs etc. for the game
  and even antacids the day after
• Detriot reaped est. 350 mil from hosting in 2006
  (with only a few mil invested and 3 years to
  plan)
• Average cost of a ticket 500 at Ford Field
  (seats 65,000)
• 32,500,000
• Emerald Nuts Company advertised the SB and their
  sales tripled 2004 12.9 million 2005
  42.2 million

54
Are you AWAKE now?
55
Unit 2 Lesson 5

• Role of Products

56
Read Opening Act p. 283

• What logos used to be popular?
• What logos are popular now?
• Why?
• When you wear/carry anything with a logo you are
  a Walking Billboard!

57
licensing

• permission to copy the logo of a league, athlete,
  team, entertainer, film or TV show for a fee to
  the owner of the image.

58
Steps for licensing

• complete business plan
• Can you say ENTREPRENEURSHIP?
• a sample or drawing of the product
• the costs of production and distribution
• a marketing plan
• the existing distribution channels for the
  product

59
Strategies for maximizing profits

• change the logo, color or uniform or use old
  versions (nostalgic)
• add new items, licenses for use, sales methods
• widen the market to the world

60
TAKE NOTES.NOT IN BOOK!Product Life Cycle
Stages
61
Product Life Cycle

• Introduction
• Growth
• Maturity
• Decline

62
Product Life Cycle

• Introduction
• first stage, new product introduced, quite
  different from other products, customers dont
  know what it is or how it might satisfy their
  needs
• Basic product, few features, higher price
• Growth
• new product introduced, attracts more customers,
  sales grow rapidly, competitors counteract
• added features, brand important, range of prices
• Maturity
• sales peak, profits decline, all customers and
  all competitors are in the market, intense
  competition
• price adjustment, more customer service,
  competitive pricing/promotion
• Decline
• sales rapidly drop, little profit, businesses get
  out, additional uses of product
• prices need to be high to compensate for low
  sales.

63
Stages in a Life Cycle
sales
time
profits
introduction
growth
maturity
decline
64
brand

• a name, term, design or symbol, that identifies
  a business or organization and its products
  (unique)

trademark
a LEGAL protection for words, symbols for use by
one company
65
Do you own a piece of clothing with a
professional team logo on it?What other items
(besides clothing) are popular for sports logos?
66
Unit 2 Lesson 6

• Role of Pricing and Place

67
Computer Lab Introduction p. 60 Cyber Marketing

• Think about buying products on-line vs. in store
  vs. at arena/stadium.
• Where is selection best?
• Where were prices higher? Why?
• Were there items on-line that you wouldnt find
  in a mall? Why?

68
TAKE NOTES. NOT IN BOOK!

• price
• the value of money placed on a good or service
• (Source Marketing Essentials-Glencoe 2002 p.
  451)

69

• A price must be set that is high enough to make a
  profit ,but not so high that consumers will not
  want to buy.
• (Source South-Western Marketing 2002)
• Does higher price means better product?
• (local game vs. Super Bowl)

70

• What factors
• cause
• concession
• prices to be
• higher than
• store prices?

71
break-even point

• point where sales and revenue equal cost of
  making and distributing a product
  (administration, concession staff, security,
  coaches, players)

• This is where PROFIT begins!

72
PLACE/DISTRIBUTION

• channel of distribution path a product takes
  from producer or manufacturer to final user
• wholesalers buy large quantities of goods and
  re-sell them to smaller businesses.
• retailers sell goods to the final user

73
Unit 2 Lesson 7

• Role of Promotion

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PROMOTION
magazines
web sites
radio
newspaper
billboards

• Focus How do you hear about products? What
  influences what you buy?

movies
television
bathroom stalls
video games
75
TAKE NOTESNOT IN BOOK

• promotion
• publicizing or advertising a product, service or
  event with the goal of selling it.

76
Two purposes of promotion/increase sales

• maintaining current customers/markets
• attracting new customers/markets

77
Promotion
78
4 Types of Promotion(learn these, love these)

• advertising
• publicity
• personal selling
• sales promotion

79
4 Elements of the Promotional Mix (learn these,
love these)

• advertising
• paid communication between a product maker and
  the audience (tv, magazine, newspaper, billboard,
  etc.)
• publicity
• free notice about a product, service or event
  (tv, newspapers, radio, magazines, speaking at
  events, volunteering, donations etc.)
• personal selling
• door to door, in the home, sales person to
  customer
• sales promotion
• action or communication that will encourage a
  consumer to buy a product
• specials, limited-time offers, giveaways,
  coupons, free samples

80
Promotional Planning Process (Marketing,
South-Western 2002 p. 416)

• Analyze the Market (competition etc.)
• Identify the Target Market
• Develop Promotional Objectives
• (inform, persuade, change attitudes, broaden
  awareness, action customer to take try product,
  come to an event, buy more)
• Develop Promotional Budget
• Select Promotional Mix
• Implement Promotional Plan
• EVALUATE RESULTS!!

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Na na na na, na na na na, hey hey hey.

• Goodbye!