What Is Sports and Entertainment Marketing?

1. What Is Sports and Entertainment Marketing? 1.1 Marketing Basics 1.2 Sports Marketing 1.3 Entertainment Marketing

2. 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

3. Lesson 1.1Marketing Basics Goals • Describe the basic concepts of marketing. • Explain the marketing mix. • Define the six core standards of marketing. Chapter 1

4. 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

5. 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

6. 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 Chapter 1

7. Satisfying Customer Needs • identify your customer • identify the needs of your customer • develop superior products • operate your business profitably Chapter 1

8. 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

9. What is marketing? Chapter 1

10. THE MARKETING MIX • marketing mix • how a business blends the following four elements • product • distribution • price • promotion Chapter 1

11. 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

12. 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

13. 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

14. 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 Chapter 1

15. What are the elements of the marketing mix? Chapter 1

16. CORE STANDARDS OF MARKETING Chapter 1

17. 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

18. 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 Chapter 1

19. 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 andsports and entertainment events. Chapter 1

20. 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

21. 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

22. 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

23. 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

24. List and provide an example of each core standard of marketing. Chapter 1

25. Encore • Page 11 • # 1 – 4 • On your own or with 1 partner Chapter 1

26. Lesson 1.2Sports Marketing Goals • Define sports marketing. • Explain the value of sports marketing to the economy. Chapter 1

27. WHY SPORTS MARKETING? • Spectators are POTENTIAL CUSTOMERS • What might you buy at the game??? • Apparel • Food • Autographed items • Merchandise Chapter 1

28. 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 Chapter 1

29. 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

30. 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

31. 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

32. 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 $$$ Chapter 1

33. Why are gross impression and timing important in sports marketing? Chapter 1

34. 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

35. 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

36. 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

37. Name three ways that sporting events help boost the local economy and/or national economy. Chapter 1

38. Lesson 1.3Entertainment Marketing Goals • Define entertainment. • Describe the impacts of advances in entertainment technology on entertainment marketing. Chapter 1

39. Opening Act • Page 17 • 2-4 people in a group. • Write a list of 10 products • Be prepared to defend your answers Chapter 1

40. 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

41. 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

42. What are the two ways of looking at entertainment marketing? Chapter 1

43. 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

44. The Beginning of Change • First moving picture – Britain 1888 • First projected movie in Café – 1895 • First movie with sound – Jazz Singer 1927 Chapter 1

45. 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

46. 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

47. 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

48. 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

49. 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

50. Name a few benefits of television to marketers and advertisers. Chapter 1