Unit 1 – Strategies Used in the Sports and Entertainment Industry

1. Unit 1 – Strategies Used in the Sports and Entertainment Industry

2. What is S & EM? • Earliest forms of sports marketing started around 1858 . . . First known sporting event to charge admission • Emergence of radio/tv/internet • Corporations see a benefit to working with sport/ent. organizations – results in a sponsorship boom • Celebrity endorsements and naming rights deals become common industry practice

3. Why is Sports & Entertainment Marketing Important? • 2 of the most profitable industries in U.S. • Fans spent approximately $695 billion in 2015 • Main export of U.S. • They have become 2 of the largest and fastest growing industries in the U.S. • Organized marketing plan with strategies to target specific consumers is needed due to number of businesses competing in these industries.

4. Factors Contributing to Growth Increase in numbers of those participating in sports & ent. Increase in those following sports & ent. Increase in offerings Attendance increases Media coverage International marketplace Continued growth

5. What is Marketing? • Marketing is process of developing, promoting, and distributing products (good & services), to satisfy customers’ needs & wants. • Goods are tangible (e.g. sports equipment) • Services are intangible (e.g. theater tickets)

6. What is the Marketing Process? • Developing - involves: • Studying consumers’ wants • Designing products that satisfy those wants & needs • Promotional – help to: • Educate consumers • Create interest & desire • Make a sale • Create image for company • Distribution – way of: • Getting product to consumer • Buying and selling

7. What is the Marketing Concept? Organizations must recognize importance of their customers and create a marketing concept or idea that they must not only satisfy their own goals but satisfy their customers as well.

9. Industry Pioneers • Choose 5 industry pioneers from the list, or think of a few on your own (check with me for approval). • Provide a brief biography of the person(s) • 1st paragraph of 3-5 sentences • Describe how this person influenced the sport and entertainment industry • 2nd paragraph of 3-5 sentences • Insert a photo of the person

11. What Makes Up a Market? • 1st step of marketing concept identify customers • These potential customers become a market if they have: • shared needs • both desire and ability to buy product • Products and marketing activities can be tailored to the needs of these segments

12. What Makes Up a Market? (cont.) • Organizations spend a lot of $ to learn about customers’ needs and wants • Needs – necessities • Wants – wishes • Next they must identify smaller group of people within that market to sell to. This is known as a target market which becomes the specific group organization focuses its’ marketing plan on • Statistics used to describe consumers in terms of personal characteristics, known as demographics, help organizations develop their marketing plans. The 6 most common are: • Age • Income • Occupation • Gender • Ethnic background • Educational levels

13. How Do Organizations Identify Their Target Market? Market Identification 1980’s Methods more sophisticated and enhanced with technology Able to use market research to identify target mkt. Message aimed at those specific consumers Mass Marketing • 1950’s • 1 core message aimed at everyone • Hope that the right people notice it and buy

14. Market Research • Market research is the process of collecting data about customers and competitors. • There are 2 types of market research: • Primary research – gathering first hand data (e.g. through questionnaires and focus groups) • Secondary research – gathering existing data (e.g. through trade journals and government statistics)

15. What is the Marketing Mix? Marketing Mix is a combination of 4 basic marketing strategies known as the 4 P’s:

16. Case Study #1

17. Marketing Mix (cont.) • Product – Refers to the functions and features of a good or service and should satisfy the needs of the customer. • Designing • Naming • Packaging

18. Marketing Mix (cont.) • Price – influences customers’ buying decisions • Cost of making or buying product • Additional expenses related to marketing product • Competition’s prices • What consumer is willing to pay

19. Marketing Mix (cont.) • Place – involves making the product conveniently available to the customer • How and where target mkt. shops: brick and mortar stores, mail order, telesales, internet • Channel of distribution – path product takes from the producer to the consumer

20. Marketing Mix (cont.)

21. Marketing Mix (cont.) • Promotion – involve how goods and services are communicated to consumers (e.g. advertising, sales promotions, publicity, personal selling). • Raise awareness • Encourage sales • Create or change a brand image • Maintain market share

22. Above-the-Line Promotion Uses paid-for mass media for advertising Is often used to inform an audience of a product and persuade them to purchase Can reach a very large audience May reach people beyond the target market Is difficult to measure in terms of its impact Tends to be more expensive than below-the-line methods Types of media used: newspapers & magazines, television, radio, cinema, internet, billboards and other types of outdoor media

23. Below-the-Line Promotion May be less expensive than above-the-line methods Is generally used for short to medium-term incentives Can be used to target specific audiences or even individuals Is often aimed at the consumer (as opposed to business customers) Methods include: Sales promotions, competitions, sponsorship, PR, direct mail, point-of-sale displays

24. Promotional Mix Most businesses use a combination of different promotional activities. The chosen promotional mix will depend on: Cost Target Market Product Competitors Promotional campaigns often take into account the AIDA model: Awareness – raising awareness of a product Interest – exciting interest in the product Desire – creating desire for the product Action – encouraging a purchase