34 importance and impact presentation

34MPORTANCE AND IMPACT OF SPORT, ENTERTAINMENT & RECREATION

What are sports?What is entertainment?

What is recreation?

IMPORTANCE OF SER

IMPORTANCE OF SERSports, entertainment and recreation

are important to the consumer because they enhance quality of life by providing a means of:

escape fun bonding with others health education involvement with people from all

socioeconomic levels

Grow

th, Trends and Impact - H

ow can I satisfy c

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hat are sports, entertainment and rec

reation?

4 IMPACT OF SER

IMPACT Sports, entertainment and recreation impact

the economy by providing jobs, adding tax revenue.

FASHIONClothing we wearHairstyles

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Growth, Trends and Impact - How can I

satisfy customers? W

hat are sports, entertainm

ent and recreation?

MERCHANDISE LINES Clothing and accessories - Rocawear, Air

Jordan, Dereon, Applebottom Video games - NBA Live, Madden NFL,

Karaoke Revolution: American Idol

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ent and recreation?

THEME PARK RIDES Batman, Superman, SpongBob 3D ride, Joker,

Disney World, Universal Studios

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ent and recreation?

RESTAURANTS ESPN Zone, Planet Hollywood

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ent and recreation?

SPONSORSHIPS Gatorade – Lebron James Nike – Kobe Bryant Proactive – Gabrielle Union,

Jessica Simpson Covergirl – Rhianna, Queen

Latifa

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ent and recreation?

EXPRESSIONS – I’ll be back – Terminator Houston, we have a problem – Apollo 13 Show me the money – Jerry McGuire

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ent and recreation?

ECONOMY – HUNDREDS OF BILLIONS OF DOLLARSEntertainment industry – top 10

highest grossing segment of the economy

Sports industry – top 25 largest industry

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ent and recreation?

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SIMILARITIES AND DIFFERENCES IN SPORTS AND ENTERTAINMENT MARKETING

SER MARKETING SER Marketing - satisfy customers through

sports, entertainment, recreation, amusement or any method of occupying time.

SER Marketing relies on – Meeting consumer demand for excitement and diversion at a price the customer is willing to pay

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ent and recreation?

Entertainment–

Consumer Loyalty• Fads

ProductTV –

• Ratings• Prime Time• SyndicationMusic/Radio – • Air play

• Prime Time• Label• CoverFilms -

• Evergreens• Trailers

• Primary Market• Secondary Market

Revenue Stream• Intellectual Property• Piracy/Bootlegging

• Royalty

Sports– Consumer Loyalty• Success/Winning

Product• Young Amateur• Recreational• High School

• NCAA - College/University• Professional• Olympic

• Women’s - Title IX• Extreme Sports

Revenue Stream• Scalping

• TV Broadcast Deals• Sponsorship

• Stadium Signage• Stadium Naming Rights• Corporate Boxes/Suites

• Venue Design

Similarities and Differences in Sports and Entertainment Marketing

Similarities – • Discretionary Income

• Leisure Time• Opportunity cost

• Amateur vs. Professional• Niche Marketing

• Consumer Loyalty/Fans

• Core Products• Ancillary Products/Licensing

• Endorsements• Concessions

• Impulse Spending• Break Even

• Gross vs. Net Revenue

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SIMILARITIES

SIMILARITIES• Discretionary Income - Money left to spend

after necessary expenses are paid

• Leisure Time – Time free from work or duties

• Opportunity cost - When you make a decision to spend your money on 1 thing you can’t spend it on something else (ex. Cd vs. t-shirt)

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ent and recreation?

THINK, SHARE What are some necessary expenses? What might you spend your discretionary

income on? Do teens have more or less income than

adults? Do teens have more or less discretionary

income than adults? What is your favorite thing to do in your

leisure time?

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ent and recreation?

SIMILARITIES• Amateur - Person who does not get paid to

perform• Professional - person who has the will and ability to

earn income from performing• Niche Marketing - Focuses on a small target

market of consumers who have very similar interests

• Consumer Loyalty/Fans

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ent and recreation?

THINK, SHAREList 5 amateur athletes or entertainers

List 5 professional athletes or entertainers

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ent and recreation?

SIMILARITIES• Core Products - Main product, ex. Sports

event, movie, book• Ancillary Products/Licensing - Product related

to core product, ex. Lunch boxes, t-shirts, back packs, park rides

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ent and recreation?

SIMILARITIES Endorsements - Approval or support of a

product or idea

How should companies decide who to ask to endorse their products?

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ent and recreation?

SIMILARITIES• Concessions - Snack bars that sell

refreshments such as popcorn, soda and candy

• Impulse Spending - Buying without proper planning ex. Food, gifts, souvenirs and apparel

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ent and recreation?

SIMILARITIES• Break Even - Have costs and expenses equal

revenue• Revenue - Income or money made from

selling products Gross Revenue - Total income from sales

BEFORE costs, expenses and taxes Net Revenue – total income from sales AFTER

costs, expenses and taxes

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ent and recreation?

GROSS VS. NET REVENUE A theater makes $200,000 from the sales of

movie tickets and concessions

After paying for the popcorn kernels, rent, and wages to employees, a theater makes $25,000

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ent and recreation?

WHAT PERCENT OF A FILM REVENUE COMES FROM ANCILLARY PRODUCTS?

10%25%50%75%

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ent and recreation?

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DIFFERENCES

CONSUMER LOYALTYSPORTS

Success/winningENTERTAINMENT

Fads - Short term popular trend,Industry is always looking for the

“next big thing”

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ent and recreation?

PRODUCTS - SPORTS Categories of Sports -

Amateur, high school, college, professional

Title IX - Law that bans gender discrimination in schools that receive federal funds

Extreme Sports - Involve nontraditional daring methods of competition,

ex. X Games - Skateboarding, rollerblading, stunt bikers, snowboarders

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ent and recreation?

THINK, PAIR, SHAREWhat percent of homes have at

least 1 TV?What is the average # of hours

teens watch TV?TV shows survive based on size of

their what?How many content minutes are

there in a 30 min TV show?30




ent and recreation?

PRODUCTS – ENTERTAINMENTTV

Ratings - Rankings of TV or radio show popularity in a certain time period

Most famous rating company - Nielson Prime Time - 8pm – 11pm, bring in greatest

audiences and highest advertising revenue Syndication - Selling TV programs to individual

stations not networks Sitcoms – high rerun value, Reality TV – high

ratings, but low rerun value

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ent and recreation?

PRODUCTS – ENTERTAINMENTMUSIC/RADIO

Airplay or time on the radio - Primary means of introducing new artists

Radio prime time hours - 6am-9am A record company is also called a - label Cover - When another artist records the same

song

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ent and recreation?

PRODUCTS – ENTERTAINMENTFILMS

Evergreens - Films or products that are popular year after year

Trailers - Previews of coming movies shows before the main feature to create interest in new releases

Primary Market - Target audience who sees a movie on the first release in theaters

Secondary Market - Target audience who sees a movie in TV, discount theaters, dvd or rental

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ent and recreation?

REVENUE STREAM - SPORTS Scalping – unauthorized reselling of tickets TV Broadcast deals Sponsorship Stadium Signage Stadium Naming Rights Corporate Boxes/Suites Venue Design

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ent and recreation?

REVENUE STREAM - ENTERTAINMENT Intellectual property - Idea, concept or

written work that is unique and protected by a copyright

*would need permission from the author, plus would have to pay a royalty fee

Piracy - The unauthorized use of an owner’s copyrighted material, ex. Books, movies

Royalty - Payment for a material that has been copyrighted

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ent and recreation?

THINK, PAIR, SHAREHow long is work protected by a

copyright?8,000 commercial albums are

produced every year, what percent make a profit?

What is the highest percent of retail price for each album sold that a talent might receive?

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ent and recreation?

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ESSENTIAL QUESTIONS:WHAT ARE SPORTS?WHAT IS ENTERTAINMENT?WHAT IS RECREATION?

Competencies:Explain the importance and impact of SERDescribe the growth & development of SERAnalyze trends in SER

34 importance and impact presentation

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