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what is Sports & Entertainment Marketing?

what is Sports & Entertainment Marketing?. Question. Do you consider golf a sport? Why or why not?. Exactly what is and what isn’t a sport?. Exercising Cheerleading Chess Lawn Mower Racing Spelling Bee. Understanding the sports industry. Sport

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what is Sports & Entertainment Marketing?

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  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 a process of bringing together sellers and buyers • the creation and maintenance of satisfying exchange relationships

  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 • What a business offers to satisfy needs • Products include both Goods and Services Services Goods Tangible Intangible

  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 • Discretionary Income • 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 10 live music venues in Austin • Stubb’s • Antone’s • Emo’s • Continental Club • The Parish Room • Momo’s • Lucky Lounge • La Zona Rosa • Bass Concert Hall • Cactus Cafe

  15. promotion • Ways to make customers aware of products • Encourages customers to buy • Regrettable promotions • Ball Night Dodgers StadiumAugust, 1995 • Free baseball giveaway turns ugly when fans throw 200 balls at players after an argument on the pitchers mound • Disco Demolition Night Comisky 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 • 21,716 was the average NBA attendance in 2014 (Chicago) • Over 65 million people attended MLB games in 2014

  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. Technology and Customer Feedback • Audiences can use a variety of communication technologies to provide entertainment feedback. • American Idol • 132 million votes

  25. Future of sports and entertainment marketing? • ??????

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