What is Sports and Entertainment Marketing?

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What is Sports and Entertainment Marketing?

• Chapter 1
• 1.1 Marketing Basics
• 1.2 Sports Marketing
• 1.3 Entertainment Marketing
• 1.4 Recreation Marketing

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Sports Entertainment Industries

• Today, more than any other time in history, are
  the two most profitable industries in the U.S.
• Fans spend billions of dollars each year on
  recreation
• Reaches around the globe as well
• Entertainment is a main export of the U.S.

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What is Marketing?
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If you know

• Nike
• Just Do It
• Wheaties
• Breakfast of Champions
• Under Armour
• Protect this house
• Lowes
• Lets build something together
• Butterfinger
• Nobody better lay a finger on my butterfinger
• Apple
• Theres an app for that
• You have been exposed to marketing.

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Marketing Defined

• The process of planning, pricing, promoting,
  selling, and distributing ideas, goods, or
  services to create exchanges that satisfy
  customers
• To sum it up Marketing is the creation and
  maintenance of satisfying exchange relationships.
• Marketing is an umbrella term
• Current marketing practices focus on customers
  and maintaining a close relationship with them

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Marketing Mix

• Describes how a business blends the four
  marketing elements.
• The 4 Ps
• Product
• Place (Distribution)
• Price
• Promotion

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Marketing Mix

• Productwhat a business offers customers to
  satisfy needs
• (Place) Distributionthe locations and methods
  used to make products available to customers
• Pricethe amount that customers pay for products
• Promotionways to encourage customers to purchase
  products and increase customer satisfaction

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Product

• Goods
• Tangible items that have monetary value and
  satisfy your needs wants (can touch them)
• Examples sports equipment, TV, clothing, candy.
• Services
• Intangible items that have monetary value and
  satisfy your needs wants (cant touch them)
• Examples tickets, banks, dry cleaners,
  amusement parks.

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Place (Distribution)

• Involves the locations and methods used to make
  products available to customers.

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Place (Distribution)

• Where do you buy a pair of sneakers or a theater
  ticket?
• Internet?
• Retail Store?
• Theater?
• Telephone Solicitation?
• Wholesaler?
• Retailer?

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Price

• Amount that customers pay for products/services.
• Approximately 50 of an items price is for the
  marketing costs!
• Did you know? On average, stores raise the
  price around 50 more than what they paid for it?

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Promotion
Buy 2, get 1 free!!

• ways to encourage customers to purchase
  products/services.
• increase customer satisfaction.
• includes advertising, publicity, personal
  selling, and public relations

Our product will make you better at everything!
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What are some forms of Promotion?

• Newspaper
• Magazine
• Radio
• Television
• Direct Mail
• Internet Advertising

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Satisfying Customer Needs pg 5

• MOST important aspect of marketing!
• Must perform the following
• Identify customer needs
• Develop products/services that customers consider
  better than other choices
• Operate business profitably

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Functions of Marketing

• Product/Service Management
• Distribution
• Selling
• Marketing-Information Management
• Financing
• Pricing
• Promotion

• Every marketing activity can be classified into
  seven functions of marketing

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Functions of Marketing
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Key Marketing Functions

• Product/Service Management
• Designing, developing, maintaining, improving,
  and acquiring products/services so they meet
  customer needs.
• Ex Focus groups
• Distribution
• Determining the best way to get a companys
  products/services to customers.
• Ex Best Buy

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Key Marketing Functions

• Selling
• Direct and personal communication with customers
  to assess and satisfy their needs.
• satisfying customers
• anticipating customers future needs
• Marketing-Information Management
• Gathering and using information about customers
  to improve business decision making.
• Marketing research
• Dominos pizza expanding to Japan

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Survey Says.

• TV Sports Survey Questionnaire

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Survey Results

• Why do you watch TV sports?
• To relax (2)
• For entertainment (19)
• I do not watch TV sports (1)
• Other Watch when Im bored (2)
• Approximately how many hours do you spend
  watching sports during the week?
• 1 or less (13)
• 2-4 hours (6)
• 5 or more hours (5)

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Survey Results

• How many tv sets do you have in your household?
• 1-2 (3)
• 3 or more (21)
• Approximately how many live sports events do you
  attend during the week?
• 0-1 (15)
• 2-3 (9)
• 1 student did not respond

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Survey Results

• Which of these tv sports do you watch?
• Basketball (11)
• Football (15)
• Hockey (5)
• Tennis (2)
• Curling (2)
• Swimming (1)
• Otherbaseball (11)
• Othersoccer (2)
• Other racing (2)
• Other wrestling (2)
• Other golf (1)
• Other boxing, UFC (1)

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Survey Results

• Would you be interested in a cable channel that
  showed classic sports events?
• Yes (6)
• No (5)
• Maybe (13)

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Key Marketing Functions

• Financing
• Requires a company not only to budget for its own
  marketing activities, but also provides customers
  with assistance in paying for the companys
  products/services.
• Ex General Motors

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Key Marketing Functions

• Pricing
• Process of establishing and communicating the
  value or cost of goods/services to customers.
• Ex Concert tickets. Consumers like, price high
• Promotion
• Used in advertising other forms of
  communicating information about
  products/services, images, and ideas to achieve a
  desired income.
• Ex coupons on back of tickets

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Chapter 1.2 Page 9What is Sports
Marketing?

• Spectators of sporting events are the potential
  consumers of a wide array of products/services.
• Sports marketing
• Using sports to market products

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Sports Marketing

• Target Market
• A specific group of people you want to reach.
• Ex Reebok Nike have a large market for
  athletic shoes, but smaller, homogenous (similar)
  group for tennis, golf, running, walking, and so
  on.
• Demographics
• Specific info. such as the age ranges in the
  group, marital status, gender, educational level,
  attitudes and beliefs, and income.

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Sports Marketing

• Disposable Income
• Income that can be freely spent.
• Spending Habits of Fans
• Important to research spending habits of fans
• Maximize profits on items they purchase at
  sporting events

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Marketing Strategies

• Sports Logos on clothing
• Shows team loyalty, value of merchandise is
  increased in the eyes of the buyer, consumers
  feel more successful.
• Royalties - ( of sales)
• New Sports, New Opportunities
• Arena Football League (AFL) was one of the
  fastest growing sports in the country.

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Ambush (or Stealth) Marketing (page 11 Marketing
Myths)

• When organizations participate in events to some
  degree rather than sponsor the event.
• Why would companies want to do this?

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Marketing Strategies

• Gross Impressions
• Number of times per advertisement, game, or show
  that a product or service is associated with an
  athlete, team, or entertainment.
• Product Placement
• Timing
• The popularity of teams and sports figures is
  based almost completely on continued winning.

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Entertainment MarketingLesson 1.3 pg 14

• Entertainment Marketing-Influencing how people
  choose to use their time and money
• First, Entertainment is looked at as a product to
  be marketed.
• Second, use EM to attract attention to other
  products
• Ex hiring celebs to endorse related mdse. or
  events.

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Entertainment Marketing

• Entertainment
• Whatever people are willing to spend their money
  and spare time viewing rather than participating
  in.
• Any examples?
• Ex movies, theatre, circus, or even athletic
  events

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Modern Entertainment Marketing

• Beginning of 20th Century
• Performing arts were the major form of
  entertainment
• Live theater, ballet, opera and concerts
• Marketing was limited
• Posters, newspapers, magazines and word-of-mouth
• People had to travel to the show
• Show wasnt brought to the consumers as it is
  today

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The beginning of change

• Louis Le Prince
• Made the first moving pictures (movies) first
  made in Britain in 1888

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The big eye in every room

• 1950s- TV began to arrive in great numbers in
  American homes
• Sports and Entertainment marketers found a
  wide-open distribution channel into the homes of
  Americans

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Early days of TV and Marketing

• Early 1940s - Nine TV stations and fewer than
  7,000 working TV sets existed in the US
• October 1945 Gimbels Department Store in
  Philly had over 25,000 people come to watch the
  first demonstration of TV
• Soon after, advertising on TV was encouraged

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Televisions increasing influence

• Ratings the number of viewers the programming
  attracted
• Elvis 1 September 1956
• Elvis 2 October 1956 Forrest Gump!
• Beatles

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Recreational SportsLesson 1.4 pg 20

• Recreation
• Renewing or rejuvenating your body or mind with
  play or amusing activity.
• Recreational Activities
• Activities involved in travel, tourism, and
  amateur sports that are NOT associated with
  educational institutions.

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Recreational Sports

• No Couch Potatoes
• Participation requires purchase of a combo. of
  products/services
• A Better Image
• LPGA
• Annika Sorenstam first woman in over 50 years
  to play in mens PGA tournamnet
• Michelle Wie first LPGA tournament at 13!

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Travel and Tourism

• Worlds largest industry
• Tourism
• Traveling for pleasure
• Vacations, honeymoons, conventions, and family
  visits
• Data Mining
• Collecting data about which people travel, where,
  and when.

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Travel and Tourism

• Niche Travel
• Recreational travel or tours planned around a
  special interest.
• Ex Caribbean Cruise for Singles or Vacation
  package for college spring breakers
• Disney now offers travel packages that include
  hotel, airfare, rental car and park tickets
• Thomas Cook first to introduce package tours to
  seaside resorts