Unit 1: Reviewing Marketing Basics

1. Unit 1: Reviewing Marketing Basics Intro to Sports and Entertainment

2. What is Sports and Entertainment Marketing? • It is the marketing of sports and entertainment products AND using sports/entertainment to market other products. • We can market sports and entertainment • We can market THROUGH sports and entertainment

3. The Marketing Mix • 4 P’s • Product, Price, Place, Promotion • Product: what is sold to consumers—good/service • Price: monetary amount • Place: distribution of products • Promotion: communicating with consumers • In sports/entertainment the marketing mix must be looked at carefully • Considered to be “leisure” activities • Consumers are using “extra” income and must be reached carefully • Many options for consumers

4. The Marketing Concept • Ways to view marketing: • Mass marketing: sending out one message with little regard to individuals • Sales oriented: selling products without regard for what people want • Effective in certain situations • Marketing Concept: • Focus on customer satisfaction. • Direct their resources toward offering the goods and services that people want. • Requires market research and understanding of competition!

5. Why use the Marketing Concept • Sports and Entertainment industry focuses on people’s free time and extra income • Lots of choices! • Limited time and money • Makes the Marketing Concept necessary! • Must focus on satisfaction and wants of consumers!

6. The Seven Functions in SEM • All seven functions of marketing are important when marketing sports and entertainment • Distribution • Marketing Information Management • Pricing • Product Service Management • Promotions • Selling • Financing

7. Functions Activity • Each table will be assigned a function • Using your textbook, phone or computer complete the following for the function you have selected • Define the function • How is this function used in Sports and Entertainment? • Illustrate the function • May use an image associated with function • May be hand drawn or printed

8. Adapting the Marketing Mix

9. The Marketing Mix • Product, Price, Place, Promotion—Looks a little different in SEM • Products in Sports and Entertainment • DURABLE GOODS--Three years or longer • NONDURABLE GOODS---Cannot be re-used • SERVICES—Intangible • IDEAS--Can be sold and turned into a business • Tourism—Visit California • https://www.youtube.com/watch?v=ZAwqumoO0Ds • PEOPLE—professional/amateur athletes/celebrities

10. The Marketing Mix • Price in Sports and Entertainment • The most SENSITIVE ELEMENT for sports and entertainment because of discretionary income • What will the market accept? • How much is too much?

11. The Marketing Mix • Place (Distribution) in Sports and Entertainment • Locations and methods used to make products available • Host cities of sporting events • Venues • Movie distributors, theater companies • Ticket sales online

12. The Marketing Mix • Promotions in Sports and Entertainment • Communicating with consumers • Informing and persuading become crucial! • Persuading through…… • Endorsements • Celebrities

13. Target Marketing in SEM

14. Sports • Marketers use sports to market other products • People • Organizations • Goods/Services • Match the product to the viewers • Utilizing gross impression • The number of times per advertisement, game or show that a product is associated with an athlete or team. • Goal is to maximize exposure and create an association • Nike—Oregon • Gatorade—NFL

15. Entertainment • Entertainment is all about products that people are willing to spend their time/money on during leisure time • Entertainment Marketing: all about influencing how consumers spend time/money on entertainment • What counts as entertainment? • It’s a blurred line and depends of the consumers • TV. Films, theatre, news, books, social media, internet

16. Keeping Up! • Ratings • Market where the ratings are • Ratings=viewership • Direct impact on cost • Changes in industry • Internet • Netflix, Hulu, On Demand, DVR—What challenges does this present?

17. Customer Profiles

18. Finding your Market • Market: all of those capable and willing to purchase • Target Market: Those MOST LIKELY TO BUY • To identify we often times need to segment our market

19. Views on Marketing • Mass Marketing—one basic message sent to audience • Marketing Concept=Market Segmentation—focusing on the marketing concept • This is a common view in Sports/Entertainment

20. Segmentation • Grouping the market based on common characteristicsto identify target markets • Rule of 80/20! • Segmentation variables • Demographics: surface level characteristics • Psychographics: lifestyle, personality • Geographics: location of consumers • Behaviors: spending and consumption

21. Looking Deeper • Demographics • Income • Discretionary Income: the money people have left over after paying expenses • Living expenses, taxes • This is the money they spend on entertainment • Age groups • Millennials • Baby Boomers • Tweens • Generation X • Generation Y

22. Building Customer Profiles • Creating an in-depth description of your targeted customer by examining segmentation • Should reveal ways to reach these consumers

24. Project Example • Package A: The Average Joe • Demographics: Male, 30-50, Lower Middle Class, Average discretionary income of $8.000 with income of around $40,000, White • Psychographics: Sports fan • Behaviors: Spends 6-10 hours a week watching football, spends 10% of discretionary income on football related activities • Geographic: regional are of football team (EX. Dallas Cowboys—Southeast)

25. Project Details • Each package should be for 4 people! • 3 packages each targeted at 3 different segments (customer profile)