importance of sports and entertainment marketing

Importance of Sports and Entertainment

Marketing

Do NowHow do you think sport differs

from entertainment?

What is an Industry?A group of organizations

involved in the producing

or handling of the same

product or type of

service

Industries can be further

defined by subdivisions

Examples of Industries

The Music Industry The Hotel Industry

Subdivisions

Country

Rock

Hip-Hop

R&B

Subdivisions

Full service

(resorts)

Limited service

Economy

Extended Stay

Examples of IndustriesThe Television

IndustryThe Sports Camp

Industry

Subdivisions

Reality TV

Talk Shows

Drama

Sitcom

Subdivisions

Football Camp

Cheerleading

Camp

Dance Camp

Basketball Camp

The Sports IndustrySport: source of diversion or physical activity engaged in for pleasure

Entertainment: any activity which provides a diversion or permits people to amuse themselves in their leisure time

The Entertainment Industry

Examples:Television Live ShowsMoviesMusicBooksMagazines

How Are They Different?Sports

Entertainment

Spontaneous/not planned

Unpredictable outcome

Involves competition

Fans support one team

Usually planned with a script or program

Consumers are not motivated by brand or team

Consumers do not remain loyal to a brand

The Sports and Entertainment

IndustriesToday these

industries are two of the most profitable in the US

Fans spend BILLIONS on recreation and related products every year

What is Sports Marketing

Applying marketing

principles and processes to

promote sports products

◦Sports equipment

◦Sports apparel

◦Sports drinks

RG3 Adidas Under Armour- This is How We Run"Fate"

What is Sports Marketing

The marketing of non-

sports products through

association with sports

or sports figures

Papa John's and the NFL

Hanes - Sports and Entertainment

Head and ShouldersGillette - Lochte

Sample Sports Marketing Ads

What is Entertainment

Marketing?

Marketing of entertainment products or using entertainment to attract customers

BK AD

Dr. Pepper/ Iron Man

Growth of the Sports Industry

The sports industry generates about $200 billion a yearGrowth is measured in…..

1. Event Attendance Figures

2. Media Coverage

(ESPN, Golf Channel, NFL

Network)

3. Employment Figures

(4.5 million jobs and growing)

4. Global Market Expansion

Growth of the Entertainment IndustryIn 2011 the film industry

grossed $10.6 BILLIONThe largest grossing movies were

“The Avengers" ($617 million)

“The Hunger Games" ($407 million)

“Dark Knight Rises" ($359 million)

Trends in Sports and Entertainment

3D movies (Piranha 3D, Toy Story 3, Avatar)

Midnight releases (Twilight Saga)

The use of social networks (Twitter, Facebook)

Economic Concepts and Their Impact on the

Industry

CompetitionThe struggle among

companies for scarce customer dollars

Based on the theory that only the strong will survive

◦Those organizations with the best products at the best price will stay in business

Types of CompetitionPrice Competition: when

a business uses the price of their product to compete in the marketplace

Non-Price Competition: when a business uses other product features (such as quality, image or service) to compete in the marketplace

Economic Resources

All of the things used in the production of a good or serviceLand – anything from the earth or sea

Labor – the people who work to produce the good or service

Capitol – the money, buildings, hardware, tools, etc. used in production

Factors that influence demand for a Sports or Entertainment event

Price of the tickets

How often the event takes place

How much promotion is used

People involved in event (key players or performers)

AssignmentSituation: You are to assume the role of director for an amateur

tennis tournament. Because of the tournament’s size, two different tennis clubs and several hotels within your town must be used. The town mayor is unsure about presenting this project to the town council

Activity: Convince the town mayor to support hosting your event

Evaluation: You will be graded on how effectively you cover the following topics:◦ Explain the economic impact of sports and entertainment events

on a community/area◦ Describe factors that influence the demand for services◦ Explain the concept of competition◦ Explain the concept of economic resources◦ Describe trends in sports and entertainment marketing