What is Sports and Entertainment Marketing?

1.1 Marketing Basics1.2 Sports Marketing1.3 Entertainment Marketing

1

Thinking Critically

Read: Winning Strategies Page 3 Answer Questions

1. Explain the relationship between persistence and success indicted in article

An entrepreneur is someone who takes risks to start a new business.

2. How is Michelle Kwan’s father an entrepreneur?

Lesson 1.1

Marketing Basics

GoalsDescribe the basic concepts

of marketing.Explain the marketing mix.Define the six core

standards of marketing.

Terms

marketing marketing mix product distribution price promotion discretionary income

Class Discussion

Name examples of goods and services consumers demand in the world of sports and entertainment

Opening Act

Name your favorite commercialAre any famous celebrities in the

commercials cited?Why do companies spend large

sums of money to have famous people endorse their products?

What is Marketing?

marketingthe creation and

maintenance of satisfying exchange relationships

Video Moment:

Satisfying Customer Needs

identify your customer and the needs of your customer

develop superior productsoperate your business profitably

What is Marketing? (Defined in Depth)

Creation suggests that marketing involves product development

Maintenance indicates that marketing must continue as long as a business operates

Satisfaction implies that marketing must meet the needs of both businesses and customers when exchanging products or services

Exchange relationship is when both give and receive something of value

Sports and Entertainment Marketing

Marketers of sports and entertainment marketing must assess and monitor consumer demand the competition the financial valuation

of the goods and services they offer

What is marketing?

THE MARKETING MIX

marketing mix (4-Ps) how a business blends the following four

elements▪ product▪ place (distribution)▪ price▪ promotion

what a business offers to satisfy needs▪ goods and services

the locations and methods used to make products available to customers

product

place (distribution)

THE MARKETING MIX

amount customers pay for products

ways to make customers aware of products

encourages customers to buy

price

promotion

THE MARKETING MIX

Marketing Mix Considerations

discretionary income the amount of money

individuals have available to spend after paying for necessities

Marketing Mix Considerations

Striking the right balance between product, price, place (distribution), and promotion is important.

Partner Activity: Cyber Marketing

Think Critically: Visit the home pages of

at least three (3) movies that have related merchandise for sale

Determine what information is collected from customers▪ Question: How can the

marketing information gathered could be used in the future to promote and sell other products.

Closer Look: Superbowl

Sports event of the year: Superbowl Billion-dollar event results in large

sums of money from sponsorships to ticket sales Actual ticket prices range from $400 to

$600 Individuals attending spend much more…

▪ Lodging▪ Travel▪ Restaurants▪ Tourism▪ Shopping

A Marketing Mix Example in the Sports Industry

The product the Super Bowl offers is a game between the best teams of the AFC and NFC.

Consumer costs extend beyond ticket prices and include travel, food, and lodging expenses.

Place or distribution includes the location of the host city and arena ticket sales.

Promotion involves media outlets and related-product contests.

A Marketing Mix Example in the Entertainment Industry

State fairs need to Product: Must appeal to rural and

urban residents▪ Livestock shows, domestic and commercial

exhibits, carnivals, and music

Price: Family-type event admission price is important▪ Charge enough to remain fiscally stable while

still attracting attendance

Promotion: Advertise about the fair▪ Ads on radio, newspapers across state, TV may

be too expensive

Place: Determine fair location and outlets for tickets▪ Central location, tickets available at gate or

online or outlets

What are the elements of the marketing mix?

Understand the Growth of the Sports Industry

Sports are the 11th largest businesses of all U.S. industry groups

Nation’s output for sports goods and services is estimated at $213-350 billion annually

Sports Managers measure growth in the sports industry by: Team Operating Expenses ($22.9 Billion) Attendance Figures ($26.7 Billion) Media Coverage (Broad Cast rights $6.9 Billion) Employment Figures (4.5 million jobs) Global Markets (Advertising $27.4 Billion) Sports Goods ($36.1 Billion) Sports Information ($ 2.3 Billion) Sponsorships ($6.5 Billion)

Growth of Sports Industry

Media Coverage is Increasing▪ 200 million people watched NBC coverage of the

Summer Olympic Games and 3.7 billion people watched worldwide

▪ ESPN, the original sports-only network launched in 1979, reaches some 76 million homes with its 4900 hours of sports programming and, ESPN2 reaches 65 million viewers.

▪ $2.3 billion to secure the broadcast and cable rights for the Olympic Games in 2004, 2006, and 2008 and additional $2.2 billion for 2010 and 2012.

Growth of Sports Industry

Media Coverage is Increasing▪ Overall for the week, NBC averaged 26.7 million

viewers in primetime during the Olympic Games.▪ $2.64 billion paid by NBC and Turner Sports to

televise NBA contests, $18 billion paid by the networks for the NFL, $2.5 billion for post season MLB

▪ New sports networks, such as the College Sports Television, Tennis Channel, Blackbelt TV, and the Women’s Sports Network

▪ Internet, satellite stations, and pay-per-view cable television are growing in popularity

Opportunities in the Sports Industry There are 13 major career areas in

sport: event suppliers, event management and marketing, sports media, sports sponsorship, athlete services, sports commissions, sports lawyers, manufacturers and distribution, facilities and facility suppliers, teams, leagues, college athletics, and finance

Marketing & Public RelationsProfessional Sports Intercollegiate Sports

Youth Sports Olympic Sports

OrganizationsSport Commissions

Amateur Sports Corporate Sports

Marketing Sports Marketing

Firms Licensing

Firms

Creative Moment:

Baseball World Series Brochure- SEM Omaha NE

CORE STANDARDS OF MARKETING

Distribution involves determining the best way to get a company’s products and services to customers.

Distribution

gathering and using information about customers to improve business decision making

Marketing-Information Management

--

the process of establishing and communicating to customers the value or costs of goods and services

Pricing

designing, developing, maintaining, improving and acquiring products or services to meet customer needs

Product/Service Management

using a variety of communication forms, including advertising, to distribute information about products, services, images and ideas to achieve a desired outcome

Promotion

any direct and personal communication with customers to assess and satisfy their needs

Selling

A company must budget for its own marketing activities and provide customers with assistance in paying for the company’s products and services.

Financing

List and provide an example of each core standard of marketing for a movie operation.

Distribution? Different chains? Frank’s, AMC, IMAX, etc

Examples of Cores with Movies Distribution MIM

Pricing Product

Management Promotion

Selling

Financing

Movie Chains Who and where?

Targets, Channels, Audience

No Passes Genre, Series,

Trilogy When do we

Advertise? Early, sales, momentum

Testimony viewers/critics

Cost of marketing Ads, posters,

commercials

Lesson 1.2

Sports Marketing

GoalsDefine sports

marketing.Explain the value of

sports marketing to the economy.

Terms

demographicssports marketinggross impression

WHY SPORTS MARKETING?

Spectators of sporting events are consumers of a wide array of products From apparel to athletic equipment to food items

and automobiles Common traits of spectators are important

demographics common characteristics of a group

▪ age, marital status, income, education sports marketing

using sports to market products --

New Sports, New Opportunitiescontinual innovation provides

new opportunities extreme sports arena football

Gross Impression

gross impression the number of times per

advertisement, game, or show that a product or service is associated with an athlete, team or entertainer

--

Question: How many times do you need to see a message to make it part of your memory?

Timing

Fans want products and services that identify them with winning teams and athletes.

Marketing efforts may need to be tweaked based on changes in winning trends.

Why are gross impression and timing important in sports marketing?

Both are important in cognitive processing to deepen memory

THE VALUE OF SPORTS MARKETING

Sports marketing is a multi-billion-dollar global industry that has a definite impact on the economy. Name some ways

that sports impact you and your family?

Emotional Value

Emotional connections to teams motivate fans to buy tickets to games. Some fans live for the

weekends Emotions compel fans to

spend or act Purchase tickets or other sport-

related merchandise People spend discretionary

income willingly if their heart is captured▪ Common for marketers to

target emotions

So Many Channels

High profile sporting events generate strong promotional revenues for broadcasters. 100s of TV and Radio Stations

and networks must capture the largest audience for the least amount of money▪ 1960-2000: Sitcoms▪ 2001-2008: Reality shows▪ 2009-today: Sports events

Name three ways that sporting events help boost the local economy and/or national economy.

Lesson 1.3

Entertainment Marketing

GoalsDefine entertainment.Describe the impacts of advances in

entertainment technology on entertainment marketing.

Terms

entertainment marketing entertainment ratings

ENTERTAINMENT FOR SALE

entertainment marketing influencing how people choose to

spend their time and money on entertainment

What Exactly is Entertainment?

entertainment whatever people are willing to spend

their money and spare time doing rather than participating in ….

--

EVOLUTION OF ENTERTAINMENT AND ENTERTAINMENT MARKETING At the beginning of the

twentieth century, audiences needed to travel to the entertainment source.

Audience feedback was instantaneous and live.

Technology distanced entertainers from their audiences. Internet Feedback (How)

Hits…

The Beginning of Change

Disneyland represented a new approach to the marketing mix of entertainment.

The Big Eye in Every RoomEarly Days of Television and Marketing TV changed the marketing of

entertainment in a profound way. In 1945, Only 9 TV stations and 7000 TVs

existed▪ 25,000 people came to Gimbel’s in Phila to see TV

In 1946, MBC and Gillette staged 1st Sporting Event (heavy-weight boxing)

Television’s Increasing Influence All major corporations lined up to use TV Charged by influence and ratings ratings

▪ the number of viewers the programming attracted

Early Days of Television and Marketing

In 1956, 82% of all TVs tuned into The Ed Sullivan Show, weekly Sunday-evening variety show. Launched Big Name stars:

▪ Elvis Presley▪ The Beatles

Set the standard for marketing ▪ Talent displayed to millions by

using technology for distribution

Change Accelerated

Technology improvements, including the internet, have facilitated distribution of sports and entertainment to the masses.

Technology and Customer Feedback

Audiences can use a variety of communication technologies to provide entertainment feedback.

--

Name a few benefits of television to marketers

and advertisers.

Review

Textbook Review pages 23, 24Class Discussion, Pages 25 & 26Student Project:

Core Marketing Analysis Project▪ 6 Products (Group Activity)

▪ Respond to the item listed▪ Will present analysis to the class

CORES Project

For your product: Give 10 ways to

Distribute Set a local unit price Identify 3 possible

shortfalls of your product and list plans for improvement

Identify 5 forms of promotion for your product

Create a slogan/catch phrase to “sell” your product