Sports & Entertainment Marketing

1. Sports &Entertainment Marketing Unit 2: Markets

2. Fan Falls to His Death at Texas Rangers Game A man attending a Texas Rangers game at Rangers Ballpark with his young son died tragically Thursday night, after tumbling 20 feet, head-first, trying to catch a foul ball tossed to him by Rangers outfielder Josh Hamilton. The man, identified as Shannon Stone — an 18-year veteran of a local fire department — was still conscious as he was carried away by stretcher. He said, 'Please check on my son. My son was up there by himself.' The people who carried him out reassured him. 'Sir, we'll get your son, we'll make sure he's OK,'" [Oakland A's relief pitcher Brad] Ziegler said. "He had his arms swinging. He talked and was conscious. We assumed he was okay. Rangers team president Nolan Ryan later delivered a somber statement, saying, "We had a very tragic accident tonight and one of our fans lost their life reaching over the rail trying to get a ball." Former president George W. Bush was sitting in the front row with Ryan when the accident happened. The accident is similar to one that occurred last July at the same ballpark, when another fan fell 30 feet trying to catch a foul ball. He survived, but suffered a fractured skull and sprained ankle. In May, a 27-year-old fan wasn't so lucky: He died after falling 20 feet into a stairwell at a Colorado Rockies game, apparently trying to slide down a handrail at Coors Field.

3. What is Risk Management? • Risk management is a strategy to offset business risks. • Preventing, reducing, or lessening the negative impacts of risks by using the strategies of: • Retaining the risk. Hire qualified employees, provide better training, and use safety equipment and procedures. • Buying insurance to transfer the risk. • Avoiding the risk. Frameworks 2.2

4. Retaining the Risk • There will be a PARENT ROOM provided for the Justin Bieber concert scheduled at Verizon Arena in Little Rock on January 10, 2013. • This is a room provided for parents who did not wish to purchase a ticket for this event but who have children coming to the concert. • There will be no admittance into the room until doors are open for the concert. Frameworks 2.2

5. Retaining the Risk • Parents wanting access to the Parent Room must enter with their child. Parents will be required to sign in and at that point, parents and child will be wrist banded. • Parents will not be allowed to go to the seating areas to check on their children nor will children attending the concert be allowed to go back and forth from the arena to the parent room. However, if there is an emergency, Arena staff will make sure parents and children will be able to communicate to each other. • Make sure you know your child’s seat location and please designate a place to meet your child after the concert is over. • There will be TV’s in the room for you to watch, popcorn will be available free of charge and assorted drinks will be available for purchase.

6. Retaining the Risk • Modern cruise ships have a mandatory life boat drill within hours of leaving port. • The ships have hospitals, doctors, and security personnel. • Why?

7. Cruise Ships Retain the Risk Cruise ships, by their very nature, retain the risk of sinking each time they leave port.

8. Movie Makers Manage Risk • Movie producers manage risk by making movies based on: • Sequels to previous successful movies. • Star Wars (6 movies) • James Bond (24 movies) • Well known and popular books. • The Hunger Games • The Lord of the Rings • Harry Potter • Comic book characters. • The Avengers • Batman • Spiderman • Superman Frameworks 2.2

9. Movie Makers Manage Risk • The Walt Disney movie John Carter may have lost more money than any other movie in Hollywood history. • The movie cost approximately $350 million dollars to produce and market. • It has earned $72 million in the US, $41 million in China, $33 million in Russia, and $12 million in Mexico. • Total loss to date is approximately $85 Million. Frameworks 2.2

10. Market Segments • A market segment is a group of customers with shared needs and wants, that is separated from the total market, on which the business will focus its efforts. • Geographics • Demographics • Psychographics Frameworks 2.3

11. Market Segment - Geographics • Geographic segmentation divides the market into physical locations. • Winter sports are more popular in the Northern U.S. • Country music is more popular in the South and rural communities. Frameworks 2.3

12. Market Segment - Demographics • Demographic segmentation divides the market based on information such as age, income, gender, ethnic background, education, and marital status. Professional boxing is a sport that appeals primarily to men. Frameworks 2.3

13. Market Segment - Demographics Polo is a sport that appeals primarily to those with higher than average incomes. Frameworks 2.3

14. Market Segment - Demographics Figure skating is a sport that appeals primarily to women. Frameworks 2.3

15. Market Segment - Demographics Skateboarding is a sport that appeals primarily to young men. Frameworks 2.3

16. Market Segment - Demographics Bowling is a sport that appeals primarily to older men. Frameworks 2.3

17. Consider two of the sponsors of the Professional Bowling Association.

18. Market Segment - Demographics The NFL recently added a line of apparel specifically designed for women. This was an excellent strategy for expanding its demographic appeal to women. It also generated more merchandise sales and profits. Frameworks 2.3

19. Market Segment - Psychographics • Psychographic segmentation focuses on characteristics that cannot be physically measured such as values, interests, and lifestyle. Some consumers prefer to be active. Frameworks 2.3

20. Market Segment - Psychographics Many consumers prefer to spend their time (and lots of their money) playing video/computer games. Frameworks 2.3

21. Market Segment - Psychographics Consumers who are, or think of themselves as, fishermen, hunters, or outdoorsmen enjoy shopping at Bass Pro. Frameworks 2.3

22. The Year of Adele – Market Segmentation http://www.cbsnews.com/video/watch/?id=7398480n “Who” is the market segment for the singer Adele? Describe her market segment in terms of demographics. Adele has been described as the “anti-Lady GaGa.” Do you agree or disagree? Why or why not? Frameworks 2.3

23. Categories of Sports • A sport is a physical activity that is governed by a set of rules and is often engaged in competitively. • There are many categories of sports: • Amateur Sports • Professional Sports • Recreational Sports • Extreme Sports • Individual Sports • Team Sports • Other Categories Also Exist Frameworks 2.4

24. Categories of Sports - Amateur • An amateur athlete is someone who is NOT paid to play a sport. • All University and College sports are played by amateur athletes. • The NCAA does not allow athletic scholarship to cover more than the cost of food, housing, tuition, and other university-related expenses. Frameworks 2.4

25. Categories of Sports - Amateur College athletes cannotendorse products or accept gifts. Frameworks 2.4

26. Categories of Sports - Professional • Professional athletesare paid to play a sport as a form of entertainment. • A blue chip athlete is one who has proven to be among the best at their respective positions in their sports. They will be highly recruited by professional teams. • Most sports played professionally also have amateur players far outnumbering the professionals. Frameworks 2.4

27. Categories of Sports - Professional Professional athletes are often well-paid. Frameworks 2.4

28. Categories of Sports - Professional • Most professional athletes will belong to a labor union, usually referred to as a players’ association. • A labor union is a group of workers who have joined to together to engage in collective bargaining for higher wages, benefits, and working conditions. • Owners of professional teams must negotiate with the players associations to determine salaries. Frameworks 2.4

29. Categories of Sports - Professional • Owners and the representatives of the players’ union will often be unable to research an agreement. • Common negotiation strategies are: • A strike occurs when the players refuse to work. • A lockout occurs when the owners refuse to allow the players to work. • An injunction is a court order stopping or forbidding an action such as a strike or lockout. Frameworks 2.4

30. Categories of Sports - Professional • The collective bargaining agreement (CBA) is the contract negotiated by the players’ association and the owners of the team. Frameworks 2.4

31. Categories of Sports - Recreational • Recreational sports activities occur in travel, tourism, and amateur sports that are not associated with educational institutions. • The primary purpose of recreational sports is participation. • Recreational sports allow participants to improve physical fitness, have fun, and experience social involvement. Frameworks 2.5

32. Categories of Sports - Recreational Recreational sports are very popular activities for children. Frameworks 2.5

33. Categories of Sports - Extreme • Extreme sports is the term given to certain activities perceived as having a high level of inherent danger. • These activities often involve speed, height, a high level of physical exertion, and highly specialized gear or spectacular stunts • Also called action sports, or adventure sports. Frameworks 2.4

34. Ernest Hemingway “Auto racing, bull fighting, and mountain climbing are the only real sports ... all others are games.” • American author of A Farewell to Arms, For Whom The Bell Tolls, and The Old Man and the Sea.

35. Categories of Sports - Extreme • Mountain Climbing • Skateboarding • BMX Racing • Mountain Biking • Motocross • Rock Climbing • Base Jumping • Hang Gliding • Sky Flying • Snowboarding • Wakeboarding • Surfing Frameworks 2.4

36. Sports Marketing • Sports marketing consists of all the marketing activities designed to satisfy the needs and wants of sports consumers. • Sports marketing is using sports to market products. • Sports marketing capitalizes on the popularity of sports. Frameworks 2.6

37. Entertainment Marketing • Entertainment marketing is the activity of influencing how people choose to spend their time and money on entertainment. • Entertainment marketing is the process of developing, promoting, and distributing goods or services to satisfy customers’ needs and wants through entertainment. • Entertainment can also be used to market other products. Frameworks 2.7

38. Entertainment is a product that can be marketed. A remake of the F. Scot Fitzgerald’s book the Great Gatsby will be released on December 25, 2012.

39. Entertainment is whatever people are willing to spend their money and spare time viewing.

40. Entertainment can include anything that can be viewedin person or in broadcast or recorded form.

41. The term entertainment is generally applied to movies, theater, concerts, the circus, and so forth.

42. Professional wrestling is an exaggeration of a real sport, but is it really a sport or staged entertainment?

43. The Global Impact of Sports & Entertainment Marketing • Sports and entertainment are worldwide industries. • People of all nationalities enjoy some form of sports and entertainment. • The growing economy and expanding middle class of China is attracting entertainment businesses. • China has a population of 1.2 billion • The economy has grown by 10% annually. Frameworks 2.7.1

44. The Global Impact of Sports & Entertainment Marketing • Walt Disney will open a new theme park outside Shanghai, China in 2015. • The project will cover 963 acres and cost nearly $4 billion to complete. • The Chinese government was responsible for extensive infrastructure improvements which included expansion and upgrading of water, sewer, roadways, and electricity. Frameworks 2.7.1

45. In this joint venture, a Chinese investment group will own 57% of the theme park and the Walt Disney Company will own 43%. Frameworks 2.7.1 Frameworks 2.7.1

46. The Global Impact of Sports & Entertainment Marketing Globalization is the term used to describe the growth of international economic relationships. Walt Disney is a global entertainment company. Frameworks 2.7.1

47. Scope, Structure, and Types of Entertainment Businesses • The entertainment industryconsists of a large number of sub-industries devoted to entertainment. • The term applies to every aspect of entertainment including movies, television, radio, theater and music. • Other entertainment businesses include theme parks, cruise ships, fairs, circuses, concerts, night clubs, fashion shows, and trade shows. Frameworks 2.8

48. End of Unit 2 Test on . . . ?