what is sports and entertainment marketing?

WHAT IS SPORTS AND ENTERTAINMENT

MARKETING?

1.1 Marketing Basics1.2 Sports Marketing

1.3 Entertainment Marketing

Winning Strategies

From $50 to $4 Million

Explain the relationship between persistence and success as indicated.

An entrepreneur is someone who takes risks to start a new business. How is Michelle Kwan’s father an entrepreneur?

Chapter 1 Slide 2

Lesson 1.1

Marketing Basics

Goals

Describe the basic concepts of marketing.

Explain the marketing mix.

Define the six core standards of marketing.

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OPENING ACT ~ Pg. 4 Work in SMALL Groups (2-3)

Identify at least 4 advertising campaigns that feature celebrities or athletes.

How does the campaign effect what you think about the product?

If you needed the product, would you buy the celebrity endorsed product? Why or Why Not? Chapter 1 Slide 4

WHAT IS MARKETING? marketing

the creation and maintenance of satisfying exchange relationships

American Marketing Association (AMA): “Marketing is - Planning and executing the

conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individuals and organizational objectives.”

Chapter 1 Slide 5

WHAT IS MARKETING? Creation

Product development (service)

Maintenance Daily business operations

Satisfying Meets the needs of both businesses and

customers

Relationships Both parties receive something of value

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Satisfying Customer Needs

identify your customer

identify the needs of your customer

develop superior products

operate your business profitably

Chapter 1 Slide 7

Sports and Entertainment Marketing

Marketers of sports and entertainment marketing must assess:

consumer demand

the competition

the financial valuation of the goods/services they

offer

Chapter 1 Slide 8

What is marketing?

Chapter 1 Slide 9

THE MARKETING MIX

marketing mix how a business blends the following four

elements product distribution price promotion

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Product what a business offers to satisfy needs

goods and services

Distribution the locations and methods used to make

products available to customers

Price amount customers pay for products

Promotion ways to make customers aware of products encourages customers to buy

Chapter 1 Slide 11

Marketing Mix Considerations

discretionary income the amount of money individuals have

available to spend after paying for necessities

Striking the right balance between price, distribution and promotion is important.

Chapter 1 Slide 12

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 and lodging expenses.

Distribution includes the location of the host city and ticket sales.

Promotion involves media outlets and related-product contests.

Chapter 1 Slide 13

A Marketing Mix Example in the Entertainment Industry

State fairs need to Product/service: appeal to rural and urban

residents Price: set reasonable ticket prices Place/Distribution: determine fair location Place/Distribution: plan ticket sales Promote: advertise about the fair

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What are the elements of the marketing mix?

Chapter 1 Slide 15

CORE STANDARDS OF MARKETING

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Distribution: involves determining the best way to get a

company’s products and services to customers.

Entertainment: Best Buy: known for selling Electronics and

Appliances so major brands with them

Sports: Selecting the right location Making tickets available online

Chapter 1 Slide 17

Marketing-Information Management

gathering and using information about customers to improve business decision making

Expanding to a new country? Learn about their culture first!

Predicting consumer demand, estimating quantities for merchandise production

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Pricing the process of establishing and communicating

to customers the value or costs of goods and services

Ticket to game – Directly related to Consumer Demand High Demand = Higher Prices Lower Demand = Lower Prices

Prices based on: Cost of producing the goods and

sports and entertainment events. Chapter 1 Slide 19

Product/Service Management

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

Fisher Price – Tests toys with kids and parents before committing to producing them.

Sports Events – evaluate if fans had a good time and if any changes need to be made to help increase ticket sales.

Chapter 1 Slide 20

Promotion

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

Coupons on the back of Game Tickets Special Promo at participating restaurant if

the Home Team wins, scores # of points, etc.

Chapter 1 Slide 21

Selling

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

Not only satisfying customer now, but also anticipating their future needs

Car Dealership Salesman

Chapter 1 Slide 22

Financing

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

Obtain financing from sponsors and investors

Willing to spend large sums to be visible at events

* * * not 1 of 6 core standards but closely related * * *

Chapter 1 Slide 23

List and provide an example of each core standard of marketing.

Chapter 1 Slide 24

Encore

Page 11

# 1 – 4

On your own or with 1 partner

Chapter 1 Slide 25

Lesson 1.2

Sports Marketing

Goals

Define sports marketing.

Explain the value of sports marketing to the economy.

Chapter 1 Slide 26

WHY SPORTS MARKETING?

Spectators are POTENTIAL CUSTOMERS

What might you buy at the game???

Apparel

Food

Autographed items

Merchandise

Chapter 1 Slide 27

WHY SPORTS MARKETING? Sports fans sometimes have more in

common than just the sport…

demographics common characteristics of a group

age, marital status, income, education

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WHY SPORTS MARKETING? sports marketing

Using sports to market products Capitalizes on the popularity of the sport

Marketers research demographics and spending habits to understand their fans and maximize profit

The Goal: use the right marketing mix to meet customer needs while generating profit. Must consider:

New opportunities Gross impression Timing

Chapter 1 Slide 29

New Sports, New Opportunities

continual innovation provides new opportunities

New sports = new opportunities More endorsements More marketing

New sports markets = new audiences More fans, more sales More merchandise

Chapter 1 Slide 30

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

Message is usually subtle

Every time you see a product or company logo On back of shoes In a movie scene License plate holder

Your brain remembers the images Will you remember come purchase time?

Chapter 1 Slide 31

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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.

Losing streaks can cost teams a lot of $$$

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Why are gross impression and timing important in sports marketing?

Chapter 1 Slide 33

THE VALUE OF SPORTS MARKETING

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

Business is also generated for: Restaurants, Hotels, Gas stations / Airlines

Jobs are created: Parking attendants, security, vendors, marketing

manager Venues require:

Managers, landscaping, maintenance, trainers, PR reps Chapter 1 Slide 34

Emotional Value

Emotional connections to teams motivate fans to buy tickets to games.

Marketers try to appeal to fans emotions

Passion + Winning = More Tix Sold Frustration + Losing = Less Tix Sold

Chapter 1 Slide 35

So Many Channels Goal = Most viewers for least amount of

money

Networks aim for right mixture of programs to reach audiences, attract sponsors & maximize profit Reality shows more popular than sitcoms? Sporting events more popular than both?

TV Networks will pay top dollars to obtain exclusive broadcasting rights to high profile sporting events.

Chapter 1 Slide 36

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

Chapter 1 Slide 37

Lesson 1.3

Entertainment Marketing

Goals

Define entertainment.

Describe the impacts of advances in entertainment technology on entertainment marketing.

Chapter 1 Slide 38

Opening Act

Page 17 2-4 people in a group.

Write a list of 10 products Be prepared to defend your answers

Chapter 1 Slide 39

ENTERTAINMENT FOR SALE

Busy schedule provide little time for leisure…

entertainment marketing influencing how people choose to spend their

time and money on entertainment

Entertainment is the Product or

Entertainment markets the Product

Chapter 1 Slide 40

What Exactly is Entertainment?

entertainment whatever people are willing to spend their

money and spare time viewing rather than participating in

Movies Bowling Museums Theater Mini Golf Carnivals Concerts Ice Skating Vacations Circus State Fairs

Sports are entertaining too but we provide a separate category to discuss professional sports marketing

Chapter 1 Slide 41

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What are the two ways of looking at entertainment marketing?

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EVOLUTION OF ENTERTAINMENT AND ENTERTAINMENT

MARKETING At the beginning of the 20th century, audiences

needed to travel to the entertainment source. Live theaters, ballet, opera, concerts Audience feedback was instantaneous and live. Marketing limited: posters, newspaper, word of

mouth

Technology distanced the entertainers from their audiences. Moving pictures Television Internet Marketing possibilities are endless…

Chapter 1 Slide 43

The Beginning of Change

First moving picture – Britain 1888

First projected movie in Café – 1895

First movie with sound – Jazz Singer 1927

Chapter 1 Slide 44

The Beginning of Change Steamboat Willie – 1928

Snow White & Seven Dwarfs – 1938 1st full-length animated film

Disneyland – Anaheim 1955

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

Combined live arts and recorded arts.

Chapter 1 Slide 45

The Big Eye in Every Room

The Early Days of Television & Marketing 9 stations and 7,000 working TVs after WWII

Oct 1945 – 25,000 people gathered at Gimbel’s in Philadelphia to watch the first demonstration of TV

TV changed the marketing of entertainment in a profound way.

1946 – NBC & Gillette CompanyStaged first televised sports spectacular Heavyweight Boxing Match(150,000 on 5,000 TV = avg 30 ppl per TV)

Chapter 1 Slide 46

The Big Eye in Every Room

Television’s Increasing Influence

Pricing of commercials tied directly to ratings

Ratings: the # of viewers the programming

attracted

9 stations grew to 98 stations by 1949

Sept 9, 1956 – 82% of all TVs in the US were tuned

into the Ed Sullivan Show (weekly Sunday evening

variety show, Elvis was the special guest that week)Chapter 1 Slide 47

Change Accelerated

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

What was available to few is now available to many… Entertainment shared around the world.

New technologies: HD Smart Tvs 3D DVRs

Chapter 1 Slide 48

Technology and Customer Feedback

Audiences can use a variety of communication technologies to provide entertainment feedback. Texting, Twitter, etc Allows entertainment company to gather info

and use it to refine /improve the product (show).

Reality shows allow consumers to create their own endings by voting.

American Idol America’s Got Talent Dancing with the Stars

Chapter 1 Slide 49

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Name a few benefits of television to marketers and advertisers.

Chapter 1 Slide 50