Download SEM Chap 03 - Interboro School District

Chapter 3
The Wide World of Sports
and Entertainment
3.1 Industry Segments
3.2 Special Marketing Tools
3.3 Destinations: Travel and Tourism
3.4 Worldwide Sports and
Entertainment Events
Sports and Entertainment Marketing
© Thomson/South-Western
Winning Strategies
Oprah Winfrey
 while a high school student, began a broadcasting career
 at 19, she was the youngest person and the first AfricanAmerican woman to anchor the news at Nashville’s
WTVF-TV
 in 1986, The Oprah Winfrey show entered national
syndication
 with the launching of Harpo studios, she became the third
woman in U.S. history to own her own studio
 provides generous funding and leadership to educational
support programs – both within the U.S. and in South
Africa
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Lesson 3.1
Industry Segments
Goals
 Define industry and give examples of
subdivisions of an industry.
 Explain why marketing decisions are
based on industry standards, norms,
and trends.
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Terms
 industry
 industry standards
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THE SPORTS AND
ENTERTAINMENT INDUSTRY
 industry
 a group of organizations involved in
producing or handling the same product or
type of service
 industry subdivisions
 subsets of an industry
 Ex. Football – AFC & NFC, college & pro
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Industry Standards and Trends
 Industry trend – show the latest demand for and
consumer response to sports and entertainment
events and their growth or decline over time
 Ex. Par Kour is a new sports trend. Reality shows
are new TV trends
 Industry standards
 the guidelines and goals set for different
entertainment industries.
 Ex. Five star restaurant should have great food
and service. It may also be more expensive
 Industry norm
 the average expectation within an industry
 Ex. The price of a movie ticket
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 What is an industry?
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BASING MARKETING DECISIONS ON INDUSTRY
STANDARDS, NORMS, AND TRENDS
 They provide guidelines for what
consumers want and expect from a
business
 If businesses do not keep up with the
standards, norms and trends they will
fail
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U.S. Sports Camps
 U.S. Sports Camps manages the
marketing and administration of sports
camps throughout the country.
 coaches hire their own staff
 website generated $1.4 million in online
sales in one year
 Nike sponsors many camps
 provides apparel to staff and campers
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College Sports
 ISP Sports
 a leader in collegiate sports marketing
 has over 500 radio and 100 television
outlets
 the country’s largest and fastest growing
multimedia company
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The Television Industry
 perpetually seeks programming that will
yield higher viewer ratings
 reality shows are less expensive to
produce than traditional shows
 continually seeking new ways to reach
viewers
 Internet
 video iPods
 on-demand cable
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The Concert Industry
 The concert industry is undergoing a
change.
 mass appeal artists are diminishing
 live concerts seem less important to the
post baby boomer generation
 audiences will probably be smaller and
more fragmented in the future
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State and County Fairs
 State and county fairs have made many
changes to stay competitive.
 increased use of technology
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online advertising
ticket sales
premium books
news releases
 expanded schedules
 corporate sponsorships
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 List three different forms of sports or
entertainment and a current industry
trend for each one.
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Lesson 3.2
Special Marketing Tools
Goals
 Explain how a sports figure can be
successful in the motivational lecture
circuit and the publishing industry.
 Explain the purpose of and promotion
methods used for sports camps and
clinics.
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Terms
 ghostwriter
 literary agent
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MOTIVATIONAL SPEAKING AND
WRITING
 Professional athletes cannot plan on a
lifelong career.
 Many people enjoy listening to and
reading what famous individuals have
to say.
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Successful speakers have
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a message that is interesting repeatedly
well written speeches
excellent communication skills
strong promotional campaigns
an agent
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The Price of Motivation
 All American Speakers Bureau
 speakers receive between $5,000 and
$50,000 for an individual speech
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To be Successful at Writing
Their Stories
 When an athlete’s story has a broad
appeal, more people are likely to buy their
book.
 Ghostwriter if athlete not a writer
 a writer who takes someone’s experiences
and ideas and commits them to paper on
behalf of that person
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 royalty
 a percent of the sale price of each book
that is paid to the author
 literary agent
 plans the marketing and promotional
campaign for an author
 compensation is a percent of book sales
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Sponsorships
 Generally, a sports camp sponsor can expect
the following
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a positive public relations campaign
visibility and recognition of sponsorship
sponsor marketing materials on display at camp
potential product sales at camp
advertising space in the camp’s publications
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Camp Expectations
 Parents need to carefully read camp
literature to ensure that what the camp
provides meets the family’s
expectations.
 The location of the camp should be
considered to ensure it meets the
needs of the family
 Ex. Baseball Camp
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Clinics
 clinics
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single skill focus
shorter duration
limited enrollment
help capture a larger fan base for the sport
Ex. Batting Clinic
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SPORTS CAMPS AND CLINICS
NEED TO USE PROMOTION TOOLS
 Every year parents make sizable
expenditures to send their children to
sports camps and clinics they need to
get word out about their camp.
 Sponsors want to publicized
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Sports Camps and Clinics
Promotion methods
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local news coverage in a variety of media
product giveaways
interviews and photos
a community appearance by a camp celebrity
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 follow-up materials are critical for future
sessions of camp
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parent surveys
mailing list of prior attendees
alumni incentives
alumni networking for potential new
campers
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Advertising
 Well researched and thoughtfully
planned marketing will yield the most
effective results.
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 newspapers
 short ad lead-times
 inexpensive
 large non-targeted audience
 magazines and e-zines
 longer ad lead-times
 higher ad rates
 targeted audience
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 mailings and brochures
 Although direct mail is the most expensive
advertising method, if it is sent to a wellresearched group of consumers, it can be
the most effective method.
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 Explain the difference between a camp
and a clinic.
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Lesson 3.3
Destinations: Travel and Tourism
Goals
 Explain the economic impacts of travel
and tourism in sports and
entertainment.
 Discuss the differences of resorts and
theme parks.
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Terms
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tourism
direct economic impact
indirect economic impact
niche travel
ecotourism
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TRAVELING
 The travel industry is the world’s largest
industry.
 tourism
 traveling for pleasure
 travel trade
 companies and individuals who create and
market tours with the mission of increasing
the volume of visitors and their spending
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Tourists economic impacts
 direct economic impact
 total of new spending resulting from the event or
attraction
 Ex. Overtime police& fire pay, increased security
and garbage cleanup
 indirect economic impact
 multiplier effect
 the portion of the money spent locally by visitors that is in
turn spent by local residents
 Ex. I tip a waitress in New Jersey while at the Super Bowl
she then spends that money to buy her groceries
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Tailor-Made Vacations
 niche travel
 travel planned around a special interest
 Ex. Golf trips
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Ecotourism
 ecotourism
 responsible travel to natural areas that
conserves the environment and sustains the
well being of the local people
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 sustainable tourism
 enjoying while simultaneously preserving
natural environments so that they may
also be enjoyed in the future
 Ex. Sleeping in huts when visiting Africa
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Halls of Fame
 Some hall of fames offer a complete
destination.
 additional entertainment sources are
located nearby
 Attracting visitors is critical to keeping a
hall of fame alive.
 Word of mouth is the most effective
promotion for a hall of fame.
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 What is the mission of the travel trade?
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RESORTS AND THEME PARKS
 theme parks
 family-oriented destinations
 Activities, rides, attractions based on
movies, cartoons, etc
 resorts
 aimed at adults
 Focus on relaxation activities
 Single recreational sports
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Theme Park Central
 Orlando, Florida has 95 attractions and
hosts about 50 million visitors annually.
 Disney tries to be a comprehensive
provider of all the products and services
a visitor may require during their stay.
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 Why might a theme park add restaurants
and lodging to the site?
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Lesson 3.4
Worldwide Sports and
Entertainment Events
Goals
 Describe why sports and entertainment
marketing is a growing industry in other
countries.
 Describe a “sponsor’s dream” in
international sports?
 Why might cell phones be called “the
heart” of the future music industry.
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Terms
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joint venture
infrastructure
globalization
piracy
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GLOBAL SPORTS AND
ENTERTAINMENT
 Sports and entertainment is a
worldwide industry.
 As the world economy grows in
country’s like China and India the
opportunity for sports and entertainment
marketers also grows.
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An Expanding India
 India continues to transition from a
third-world economy to one of the
fastest growing economies in the world.
 Increased wealth of the population
allows for greater consumption of
sports and entertainment.
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An Expanding China
 China has:
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over one billion potential consumers
an annual economic growth rate of more than 10 percent
unsuccessful foreign-operated attractions
a glut (supply exceeds demand) of amusement parks
 Many parks have failed due to poor marketing and
planning and due to excess competition.
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A World Mouse
 Disney is the worldwide leader in the theme park
industry.
 joint venture
 when two groups (The Hong Kong government and Walt
Disney Company) share the costs and profits of a
business
 infrastructure
 water, sewer, roadways, and all other underlying
framework
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 Why is the number of theme parks
growing in China and India?
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INTERNATIONAL MARKETING
 globalization
 international economic relationships
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Scoring With Fans
 Soccer is a dream event for international
marketing.
 FIFA – The federation Internationale de
Football Association help propel The World
Cup which is held every four years.
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A Sponsor’s Dream
 Sponsors provide funding for events in return
for certain rights such as exclusivity,
advertising, etc.
 The World Cup provides valuable promotional
opportunities.
 $1.5 billion in sales for Nike and Adidas-Salomon,
German sporting goods manufacturer
 introducing the “Bud” brand name in Germany
while giving up exclusive sales rights to keep
good relations
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International Sports Trends
 Current world sports has much to do
with political history of the last 50 years.
 After World War II, the Japanese
became quite interested in baseball.
 In 2006, the World Baseball Classic
was held.
 $50 million to produce
 $15 million profit
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A Connected World
 The 2006 formation of Warner-SK
Telecom dramatically changed the way
consumers buy, store, and listen to
music.
 Cell phones play major role in how e all
listen to music especially the younger
generations
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 piracy
 theft of copyrighted material
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 Why might cell phones be called “the
heart” of the future of music?
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PERFORMANCE INDICATORS
EVALUATED
 Communicate an appropriate marketing
plan for increasing family business at Six
Flags.
 Develop appropriate promotions for all age
groups.
 Demonstrate critical thinking and problemsolving skills.
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 Sell the promotional plan to the
representative from Six Flags.
 Develop strategies to overcome Six Flags’
competition.
 Prepare appropriate strategies that are
sensitive to the economic conditions.
 Demonstrate an understanding of
marketing-information management.
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THINK CRITICALLY
1. Why is it difficult to attract visitors to
amusement parks?
2. Why must an amusement park constantly
update its attractions and rides?
3. Give examples of special events that could
take place at Six Flags for major holidays
such as Fourth of July, Labor Day,
Thanksgiving, and Christmas.
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