What is Sports and Entertainment Marketing?

1. What is Sports and Entertainment Marketing? Chapter 1 1.1 Marketing Basics 1.2 Sports Marketing 1.3 Entertainment Marketing 1.4 Recreation Marketing

2. Sports & Entertainment Industries • Today, more than any other time in history, are the two most profitable industries in the U.S. • Fans spend billions of dollars each year on recreation • Reaches around the globe as well • Entertainment is a main export of the U.S.

3. What is Marketing?

4. If you know: • Nike: • “Just Do It” • Wheaties: • “Breakfast of Champions” • Under Armour: • “Protect this house” • Lowes: • “Lets build something together” • Butterfinger: • “Nobody better lay a finger on my butterfinger” • Apple: • “There’s an app for that” You have been exposed to marketing.

5. Marketing Defined: The process of planning, pricing, promoting, selling, and distributing ideas, goods, or services to create exchanges that satisfy customers • To sum it up – Marketing is the creation and maintenance of satisfying exchange relationships. • Marketing is an “umbrella” term • Current marketing practices focus on customers and maintaining a close relationship with them

6. Marketing Mix • Describes how a business “blends” the four marketing elements. • The 4 P’s • Product • Place (Distribution) • Price • Promotion

7. Marketing Mix • Product—what a business offers customers to satisfy needs • (Place) Distribution—the locations and methods used to make products available to customers • Price—the amount that customers pay for products • Promotion—ways to encourage customers to purchase products and increase customer satisfaction

8. Product • Goods • Tangible items that have monetary value and satisfy your needs & wants (can touch them) • Examples: sports equipment, TV, clothing, candy. • Services • Intangible items that have monetary value and satisfy your needs & wants (can’t touch them) • Examples: tickets, banks, dry cleaners, amusement parks.

9. Place (Distribution) • Involves the locations and methods used to make products available to customers.

10. Place (Distribution) • Where do you buy a pair of sneakers or a theater ticket? • Internet? • Retail Store? • Theater? • Telephone Solicitation? • Wholesaler? • Retailer?

11. Price • Amount that customers pay for products/services. • Approximately 50% of an item’s price is for the marketing costs! • Did you know? – On average, stores raise the price around 50% more than what they paid for it?

12. Promotion Buy 2, get 1 free!! • ways to encourage customers to purchase products/services. • increase customer satisfaction. • includes: advertising, publicity, personal selling, and public relations Our product will make you better at everything!

13. What are some forms of Promotion? • Newspaper • Magazine • Radio • Television • Direct Mail • Internet Advertising

14. Satisfying Customer Needs pg 5 • MOST important aspect of marketing! • Must perform the following: • Identify customer needs • Develop products/services that customers consider better than other choices • Operate business profitably

15. Product/Service Management Distribution Selling Marketing-Information Management Financing Pricing Promotion Every marketing activity can be classified into seven functions of marketing Functions of Marketing

16. Functions of Marketing

17. Key Marketing Functions • Product/Service Management • Designing, developing, maintaining, improving, and acquiring products/services so they meet customer needs. • Ex: Focus groups • Distribution • Determining the best way to get a company’s products/services to customers. • Ex: Best Buy

18. Key Marketing Functions • Selling • Direct and personal communication with customers to assess and satisfy their needs. • satisfying customers • anticipating customers’ future needs • Marketing-Information Management • Gathering and using information about customers to improve business decision making. • Marketing research • Domino’s pizza expanding to Japan

19. Survey Says…. • TV Sports Survey Questionnaire

20. Survey Results • Why do you watch TV sports? • To relax (2) • For entertainment (19) • I do not watch TV sports (1) • Other “Watch when I’m bored” (2) • Approximately how many hours do you spend watching sports during the week? • 1 or less (13) • 2-4 hours (6) • 5 or more hours (5)

21. Survey Results • How many tv sets do you have in your household? • 1-2 (3) • 3 or more (21) • Approximately how many live sports events do you attend during the week? • 0-1 (15) • 2-3 (9) • 1 student did not respond

22. Survey Results • Which of these tv sports do you watch? • Basketball (11) • Football (15) • Hockey (5) • Tennis (2) • Curling (2) • Swimming (1) • Other—baseball (11) • Other—soccer (2) • Other– racing (2) • Other – wrestling (2) • Other – golf (1) • Other – boxing, UFC (1)

23. Survey Results • Would you be interested in a cable channel that showed classic sports events? • Yes (6) • No (5) • Maybe (13)

24. Key Marketing Functions • Financing • Requires a company not only to budget for its own marketing activities, but also provides customers with assistance in paying for the company’s products/services. • Ex: General Motors

25. Key Marketing Functions • Pricing • Process of establishing and communicating the value or cost of goods/services to customers. • Ex: Concert tickets. Consumers like, price high • Promotion • Used in advertising & other forms of communicating information about products/services, images, and ideas to achieve a desired income. • Ex: coupons on back of tickets

26. Chapter 1.2 Page 9What is Sports Marketing? • Spectators of sporting events are the potential consumers of a wide array of products/services. • Sports marketing • Using sports to market products

27. Sports Marketing • Target Market • A specific group of people you want to reach. • Ex: Reebok & Nike have a large market for athletic shoes, but smaller, homogenous (similar) group for tennis, golf, running, walking, and so on. • Demographics • Specific info. such as the age ranges in the group, marital status, gender, educational level, attitudes and beliefs, and income.

28. Sports Marketing • Disposable Income • Income that can be freely spent. • Spending Habits of Fans • Important to research spending habits of fans • Maximize profits on items they purchase at sporting events

29. Marketing Strategies • Sports Logos on clothing • Shows team loyalty, value of merchandise is increased in the eyes of the buyer, consumers feel more successful. • Royalties - (% of sales) • New Sports, New Opportunities • Arena Football League (AFL) was one of the fastest growing sports in the country.

30. Ambush (or Stealth) Marketing (page 11 Marketing Myths) • When organizations participate in events to some degree rather than sponsor the event. • Why would companies want to do this?

31. Marketing Strategies • Gross Impressions • Number of times per advertisement, game, or show that a product or service is associated with an athlete, team, or entertainment. • Product Placement • Timing • The popularity of teams and sports figures is based almost completely on continued winning.

32. Entertainment MarketingLesson 1.3 pg 14 • Entertainment Marketing-Influencing how people choose to use their time and money • First, Entertainment is looked at as a product to be marketed. • Second, use EM to attract attention to other products • Ex: hiring celebs to endorse related mdse. or events.

33. Entertainment Marketing • Entertainment • Whatever people are willing to spend their money and spare time viewing rather than participating in. • Any examples? • Ex: movies, theatre, circus, or even athletic events

34. Modern Entertainment Marketing • Beginning of 20th Century • Performing arts were the major form of entertainment • Live theater, ballet, opera and concerts • Marketing was limited • Posters, newspapers, magazines and word-of-mouth • People had to travel to the show • Show wasn’t brought to the consumers as it is today

35. The beginning of change • Louis Le Prince • Made the first moving pictures (movies) – first made in Britain in 1888

36. The big eye in every room • 1950s- TV began to arrive in great numbers in American homes • Sports and Entertainment marketers found a wide-open distribution channel into the homes of Americans

37. Early days of TV and Marketing • Early 1940s - Nine TV stations and fewer than 7,000 working TV sets existed in the US • October 1945 – Gimbel’s Department Store in Philly had over 25,000 people come to watch the first demonstration of TV • Soon after, advertising on TV was encouraged

38. Television’s increasing influence • Ratings – the number of viewers the programming attracted • Elvis #1 – September 1956 • Elvis #2 – October 1956 Forrest Gump! • Beatles

39. Recreational SportsLesson 1.4 pg 20 • Recreation • Renewing or rejuvenating your body or mind with play or amusing activity. • Recreational Activities • Activities involved in travel, tourism, and amateur sports that are NOT associated with educational institutions.

40. Recreational Sports • No Couch Potatoes • Participation requires purchase of a combo. of products/services • A Better Image • LPGA • Annika Sorenstam – first woman in over 50 years to play in men’s PGA tournamnet • Michelle Wie – first LPGA tournament at 13!

41. Travel and Tourism • World’s largest industry • Tourism • Traveling for pleasure • Vacations, honeymoons, conventions, and family visits • Data Mining • Collecting data about which people travel, where, and when.

42. Travel and Tourism • Niche Travel • Recreational travel or tours planned around a special interest. • Ex: Caribbean Cruise for Singles or Vacation package for college spring breakers • Disney now offers travel packages that include hotel, airfare, rental car and park tickets • Thomas Cook – first to introduce package tours to seaside resorts