objectives explain how sports and entertainment marketers use tools to sell their products. explain...

Objectives

Explain how sports and entertainment marketers use tools to sell their products.

Explain risks and risk management of sports and entertainment events.

Identify differences between marketing sports and entertainment products.

Changes in Marketing

Communicating through promotion is more important than ever.

2

Promotion:

New technologies have broadened the scope and reach of marketing messages, and they can be entertainment products themselves.

Marketing Similarities

The marketing of sports and entertainment products differs from marketing traditional products in the following four areas:

3

Endorsement:

Product– Endorsement– Core product– Ancillary product– Revenue

continued

core product:

ancillary product:

Revenue:

Marketing Similarities

Place

4

Piracy:

continued

Royalty:

continued

Price– Piracy– Royalty– Copyright

Marketing Similarities

Promotion– Product tie-in– Cross-promotion

5

product tie-in:

cross-promotion:

continued

Marketing Similarities

Convergence expands the potential for profit in sports marketing and entertainment marketing.

6

Convergence:

Synergy:Convergence and cross-promotion help to develop synergy.

Risks and Risk Management

In any industry, including the entertainment industry, there are risks.

7

Risks:

risk management:Successful sports and entertainment marketers develop risk management strategies.

What is celebrity endorsement?

What is the difference between core and ancillary products?

Give an example of synergy.

1.

2.

3.

8

Different Players, Different Games

The differences between sports and entertainment can be found in three areas:

9

Consumer loyalty

Product

Revenue stream

Differences in Consumer Loyalty

If sports fans feel their team is trying to win, the team can retain its consumer loyalty.

10

consumer loyalty:

The entertainment consumer is not motivated by brand or team loyalty, but by a desire for satisfying entertainment.

Differences in Product

The sports product is consistent, or stable.

The entertainment product is variable, or changeable.

11

Differences in Revenue Stream

The streams of revenue created by marketing products in entertainment are very diverse.

Sporting events do not usually produce the same amount of revenue from merchandising and royalties as entertainment events.

12

Differences in Revenue Stream

Sports franchises earn revenue from sponsorship.

13

Sponsorship:

Sports franchises also earn revenue from advertising and broadcast rights.

Similarities and Differences in Marketing

14

Sports Marketing Entertainment Marketing

Place

Product

Price

Promotion

Convergence

Consumer Loyalty Lack of ConsumerLoyalty

Consistent Product Variable Product

Many Ancillary ProductsFew Ancillary Products

Attempt to answer with a partner

List two differences in consumer loyalty between sports and entertainment.

What are differences between marketing sports product and entertainment product?

In what one way does the stream of revenue in sports differ from the stream of revenue in entertainment?

1.

2.

3.

15

16

Define and Give an example of a royalty.

Find an example of cross-promotion for a film.

Describe one risk involved in a sports event and find an example online

1.

2.

3.

Assign groups to look up online and present