What is Sports & Entertainment Marketing?

1. What is Sports & Entertainment Marketing?

2. Question Do you consider golf a sport? Why or why not?

3. Exactly what is and what isn’t a sport? Exercising Cheerleading Chess Lawn Mower Racing Spelling Bee

4. Understanding the sports industry • Sport • An athletic activity requiring skill or physical prowess and often of a competitive nature • Source of diversion or physical activity engaged in for pleasure • Sports Entertainment • “We’ve recognized for several years that sport is part of entertainment. The market now is really sports, fashion and music. We can’t expect to ignore reality and survive.” • Robert Meers, former Reebok president

5. Sports = entertainment

6. Growth of the Sports Industry • 11th largest of all U.S. industry groups • US’s output for sports goods and services estimated at $213 – 350 billion annually • How do we measure growth in the sports industry? • Growth measured in: • Attendance Figures • Media Coverage • Employment Figures (4.5 million jobs) • Global Markets Sports Goods

7. Understanding the entertainment industry • Entertainment • Agreeable occupation for the mind; diversion; amusement • Whatever people are willing to spend their money and spare time viewing rather than participating in • Sports or the arts • Typically, movies, theater, music concerts, the circus, etc.

8. Growth of the entertainment industry • 1.36 billion tickets sold to movies in 2012 • Highest grossing film of all time - Avatar $2.7 billion • $16 million goes through Broadway a year • Fortune 500 Ranking • Walt Disney 65 • News Corp 83 • Time Warner 95 • Marriott International 210 • Harrah’s Entertainment 264 • CeasarsEntertainment 277

9. What is Marketing? Marketing is the process of communicating the value of a product or service to customers, for the purpose of selling the product or service.

10. THE MARKETING MIX • Marketing Mix • How a company gets their product to the consumers using the following four elements • Product • Price • Place (distribution) • Promotion

11. product Services Goods Tangible Intangible What a business offers to satisfy needs Products include both Goods and Services

12. price • How much consumers are willing to pay for product • Movies • Average ticket price $8.38 • Up 5% from last year 3D • Broadway Shows • The Book of Mormon $195 • Wicked $103 • Mama Mia $ 81 • Professional Sports • NFL $168 • NBA $ 51 • MLB $ 27 • Disney World • Family of 4, 4-days/3-nights $2,000 - $12,000 • Super Bowl XLVII • Prices ranged from $2,100 - $53,333 for a game ticket on StubHub

13. price • Consumers use their Discretionary Income for Sports & Entertainment: • the amount of money individuals have available to spend after paying for necessities

14. place • The locations and methods used to make products available to customers • Top live music venues in Austin • Madison Square Garden • Izod Center • Nassau Center • Nikon at Jones Beach • Hammerstein Ballroom • Roseland Ballroom

15. promotion • Ways to make customers aware of products • Encourages customers to buy • Regrettable promotions • Ball NightDodgers StadiumAugust, 1995 • Free baseball giveaway turns ugly when fans throw 200 balls at players after an argument on the pitchers mound • Disco Demolition NightComisky Park July, 1979 • Free admission to anyone who brings in old disco records to destroy • Expected 5,000 fans; 75,000 show up • Rowdy fans begin throwing discs on field • Last forfeited game in the American League • Man sues Anheuser Busch 1991 • Lawsuit filed citing false and misleading advertising that allegedly caused emotional distress, mental injury and financial loss • Upset because companies portrayal of "scenic tropical settings [and] beautiful women and men engaged in endless and unrestricted merriment" — turned out to be "untrue."

16. 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.

17. A Marketing Mix Example in the Entertainment Industry • State fairs need to: • Appeal to rural and urban residents • Set reasonable ticket prices • Advertise about the fair • Determine fair location • Plan ticket sales

18. Sports and Entertainment Marketing • Involves the use of sports and entertainment to develop, promote and distribute goods and/or services to satisfy the wants and needs of customers. • Impact of Sports and Entertainment Marketing • Generates an average of $400 billion in annual revenue. • 64% of Americans watch NFL football • The NFL has $20.4 billion in television deals with CBS, FOX, ABC, and ESPN • 21,876 was the average NBA attendance in 2013 (Chicago) • Over 65 million people attended MLB games in 2013

19. Disney world • Disney World Fun Facts • 2011 Attendance Figures ~ 47 million visitors • Magic Kingdom, 16.97 million visits (No. 1 worldwide) • Epcot, 10.83 million visits (No. 5) • Disney's Animal Kingdom, 9.67 million visits (No. 7) • Disney's Hollywood Studios, 9.60 million visits (No. 8) • 75 million Cokes consumed each year • If you were to wash and dry one load of laundry every day for 52 years, you’d clean as much as the folks at Walt Disney World Laundry do in a single day • Walt Disney World Resort is the largest single-site employer in the United States (62,000 employees)

20. EVOLUTION OF ENTERTAINMENT AND ENTERTAINMENT MARKETING At the beginning of the twentieth century, audiences needed to travel to the entertainment source. Audience feedback was instantaneous and live. Technology distanced entertainers from their audiences.

21. The Beginning of Change • 1888 First moving picture • 1927 First movie with sound • 1928 Steamboat Willie • 1938 Snow White • 1955 Disneyland opens • Disneyland represented a new approach to the marketing mix of entertainment – the Theme Park

22. The Big Eye in Every Room • The Early Days of Television and Marketing • 1945 9 stations, less than 7,000 TV sets in U.S. • 1946 1st broadcast sporting event (boxing match) • 1949 98 stations • 1956 82% of all TVs watched Elvis on The Ed Sullivan Show • 1964 60% watched the Beatles • 1969 500 million people worldwide watched moon landing • Ratings • the number of viewers the programming attracted

23. Change Accelerated • Technology improvements, including the internet, have facilitated distribution of sports and entertainment to the masses. • 2012 Olympics • 4 billion television viewers worldwide • 18 million global unique users on BBC website • 29 million video requests from website

24. Entertainment Marketing • Event marketing refers to the actual marketing and management of an event by its organizers • International Rugby Cup earned $90 million in 2003 • X-games turned $15 million in profit

25. For sports events, event marketing can involve a number of different marketing activities 
 • Marketing the event to athletes to recruit and secure their participation • Create a publicity strategy incorporating a plan to utilize the media to increase coverage of the event • Promote the event to the general public to increase attendance or follow the 
event through the media
 • Market the event to corporations to urge sponsorship and general event 
support
 • Work with government officials to provide public support
 • Market to private vendors that can provide services for the event

26. The 5 P’s of event marketing Participation
 • Involves getting consumers to attend the event and interact with the company, whether visually, verbally or interactively b. Product/brand experience • Refers to the activity of distributing samples or having the consumer try on or try out your product at the event Promotion
 • Focuses on the generation of media exposure by creating stories within the event and further increasing corporate awareness through promotions that might include event-related coupons and sweepstakes Probe • Conduct research before, during and after the event to make sure that you are effectively reaching and penetrating your target audience Prospect • Implies that companies should approach event marketing as a long-term 
commitment • Involvement with an event can require several years to establish before a 
company will reap the reward on their investment

27. Examples of Event Marketing