Download Chapter 1

Chapter 1
What Is Sports and
Entertainment Marketing?
1.1 Marketing Basics
1.2 Sports Marketing
1.3 Entertainment Marketing
Sports and Entertainment Marketing
© Thomson/South-Western
Celebrity Endorsments
19
2
Advertising Campaigns that feature
athletes/celebrities
 Examples?
 How do they affect your thinking about the product?
 If you were in the market for that product, would you buy
it? Why?/Why not?
 Read Article:
 “Do celebrity endorsements really persuade consumer
buys?”
 Successful and failed celebrity endorsements
Chapter 1
Slide 3
Sports and Entertainment Marketing
© Thomson/South-Western
WHAT IS MARKETING?
 Marketing from a sports/entertainment
standpoint
 the creation and maintenance of satisfying
exchange relationships
 Creation = product development
 Maintenance = continuous marketing
 Satisfaction = meet the needs of the business and
customer
 Exchange = Both parties are receiving something
Chapter 1
Slide 4
Sports and Entertainment Marketing
© Thomson/South-Western
Satisfying Customer Needs
Primary focus of marketing
1. identify your customer and the needs of
your customer
 Nike – who are they?
 Sony – who are they?
2. develop superior products
3. operate your business profitably
Chapter 1
Slide 5
Sports and Entertainment Marketing
© Thomson/South-Western
Sports and Entertainment
Marketing
 Marketers must assess:
 consumer demand
 the competition
 the financial value of the goods and services they offer
 Consumers have limited $ vs. huge industry
 Average cost for family of four to attend Phillies
game?
 Tickets, parking, hot dogs & drink, two baseball hats
http://articles.courant.com/2013-04-05/sports/hc-fan-cost-index-040520130405_1_red-sox-game-yankees-game-citi-field
Chapter 1
Slide 6
Sports and Entertainment Marketing
© Thomson/South-Western
THE MARKETING MIX
How a business blends the following four elements:
 product
 what a business offers to satisfy needs
 distribution
 the locations and methods used to make products available to
customers
 price
 sensitive to consumer demand and state of the economy
 promotion
 Ways to make customers aware of products
 Recession - Businesses cutting TV ads
Chapter 1
Slide 7
Sports and Entertainment Marketing
© Thomson/South-Western
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.
 Prices range from $500 to thousands
 Consumer costs extend beyond ticket prices and include travel and
lodging expenses.
 Distribution includes the location of the host city
 Is it easily accessible by fans? Near an airport, major highway?
Nearby accommodations?
 Ticket Sales
 How will tickets be distributed?
 Promotion involves media outlets and related-product contests

TV commercials, newspapers, sweepstakes
 Celebrity Endorsement
Chapter 1
Slide 12
Sports and Entertainment Marketing
© Thomson/South-Western
Group Project
 A local town in Bucks County wants to raise
money so they want to plan an event.
Choose the event, complete the marketing
mix and choose a celebrity that you would
use to promote this event.
 Be specific
 Answer the 4 P’s
 Create a visual depicting the marketing mix
 Present to class
Chapter 1
Slide 13
Sports and Entertainment Marketing
© Thomson/South-Western
The challenge  creating and maintaining satisfying
exchange relationships can be very difficult
in the sports and entertainment world.
 For example:
 The Philadelphia 76ers have won 15 games
and lost 37
 The have the lowest home attendance in the
league
 How can the owners of this franchise
maintain a relationship with their fans?
Chapter 1
Slide 14
Sports and Entertainment Marketing
© Thomson/South-Western
 As a Marketing Manager you have been asked to
create a sports package that will increase sales by
at least 30%. This package can be targeted at any
demographics that you feel will accomplish this
task. Create a professional, exciting poster
describing the package. Be sure to include your
sponsor! Your grade will depend on creativity of
your idea and the design of the poster. The
website below will give you ideas of packages that
the 76ers have already used and have been a
success. Be original! Good Luck!
 http://www.nba.com/sixers/tickets/
Chapter 1
Slide 15
Sports and Entertainment Marketing
© Thomson/South-Western
Terms
 demographics
 sports marketing
 gross impression/product placement
Chapter 1
Slide 16
Sports and Entertainment Marketing
© Thomson/South-Western
Sports Marketing
 Demographics
 Common characteristics – age, gender,
ethnicity, income, education
 Sports marketers
 Research spectators interests and buying
habits to plan products or services that they
will buy
Chapter 1
Slide 18
Sports and Entertainment Marketing
© Thomson/South-Western
To be successful….
 Goal = using the right marketing mix to meet
customers needs while generating profit.
 Three factors to consider……
Chapter 1
Slide 19
Sports and Entertainment Marketing
© Thomson/South-Western
1) New Sports, New Opportunities
 continual innovation provides new opportunities
 extreme sports
 Skateboarding and snowboarding
 arena football
 Founded in 1987 – fastest growing sport in the
country-------WHY?
 Tickets $17.50 – fans meet players – get autographs – clock
doesn’t stop – scores are high – tons of excitement
Chapter 1
Slide 20
Sports and Entertainment Marketing
© Thomson/South-Western
2) Gross Impression/Product Placement
 the number of times per advertisement, game,
or show that a product or service is
associated with an athlete, team or entertainer
 May be very subtle – brain records image
 Movie with the most product placements ever
Chapter 1
Slide 21
Sports and Entertainment Marketing
© Thomson/South-Western
Subliminal Advertising
Chapter 1
Slide 22
Sports and Entertainment Marketing
© Thomson/South-Western
3) 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.
Chapter 1
Slide 23
Sports and Entertainment Marketing
© Thomson/South-Western
Emotional Value
 Emotional connections to teams
motivate fans to buy tickets to games.
 People will freely spend discretionary
income on events that capture their hearts
Chapter 1
Slide 24
Sports and Entertainment Marketing
© Thomson/South-Western
Differences in Marketing
Entertainment Vs. Sports
Chapter 1
Slide 25
Sports and Entertainment Marketing
© Thomson/South-Western
 Entertainment
 Based on creative ideas that can be
fashioned to fit the tastes of a target audience
 Sports
 Based on attitude, ability and competition
Sports and Entertainment Marketing
© Thomson/South-Western
Differences can be found in 3 areas:
1. Consumer loyalty

Is our loyalty different?
2. Product
•
What do we expect
from products?
3. Revenue stream
•
Where does money come
from?
Sports and Entertainment Marketing
© Thomson/South-Western
Differences in Consumer Loyalty
 Sports
 If fans feel the team is trying to win, the team retains
consumers loyalty
 Entertainment




Is not motivated by brand/team loyalty
Desire for satisfying entertainment
Subject to trends-”What’s Hot & What’s not Hot”
If a company’s movie, book, sitcom, video game, etc.
does not deliver expected level – consumer turns to
competition
Sports and Entertainment Marketing
© Thomson/South-Western
Difference In Product
 Sports
 Consistency, stability
 Includes: Team, event, facility
 Entertainment
 Variability and changeability
 Markets must predict trend/fad
 Example: movie postponed (Phone Booth – 2003) revolved
around a man pinned in a phone booth by gunman
 Real life shootings in Washington D.C.
 20th Century Fox postponed release
Sports and Entertainment Marketing
© Thomson/South-Western
Differences in Revenue Stream
 Entertainment
 Many different entertainment products
 Streams of revenue created by marketing products
are very diverse
 Entertainment products can be developed
into:
 Merchandise, licensing, royalties
 Ancillary products – games, TV series, books,
clothing line
 Ancillary products – created from the core product
Sports and Entertainment Marketing
© Thomson/South-Western
Differences in Revenue Stream
 Sports
 One sporting event does not usually
produce the same amount of revenue from
merchandising and royalties
 Exception – championship game
Sports and Entertainment Marketing
© Thomson/South-Western
Activity
Nike running shoes
Philadelphia Zoo
Loyalty – what type of
loyalty do you have?
Product – what do you
expect from this product?
Revenue – Where does
the money come from?
Chapter 1
Slide 33
Sports and Entertainment Marketing
© Thomson/South-Western
Project
New Drink/New Opportunity
 A new sports drink company wants your marketing firm to
find a sport for the company to sponsor, research the
market surrounding that sport, and prepare a marketing
plan. The company prefers a less popular sport (new
opportunity) rather than, for example, professional football.
The company wants consumers to see its product as
fresh, exciting, invigorating, young and daring.
 Work with a partner and complete the following activities.
Chapter 1
Slide 34
Sports and Entertainment Marketing
© Thomson/South-Western
 Use the internet to find and up and coming sport. It can be a team
sport or an individual sport. Explain the objectives and rules of the
game.
 Explain what kind of publicity the team or individual is seeking? Why?
What features of this sport can be related to the products
characteristics? What are the demographics of these athletes?
 Name at least two TV programs you would use for “Gross Impression”
for your new drink. Why did you choose these programs? How will
you drink be shown on the show? For example; Seinfeld is talking to
Elaine in the kitchen and behind him on the counter is a bottle of
“PowerPunch”.
 Explain the timing of when your drink would be aired.
 Prepare a questionnaire to hand out to fans attending the event. What
five essential pieces of information do you want? What reward will you
offer the fans for filing out the questionnaire?
Chapter 1
Slide 35
Sports and Entertainment Marketing
© Thomson/South-Western
 Research which media your fan base uses most. Television?
Internet? Newspapers? Radio? Why?
 Design a label for your client’s drink that will attract the attention
of its desired customers. Your drink should include the brand
name, trade name, brand mark and trademark (This can be
done using any software program)
 Plan an advertisement for your client. (This can be done using
any software program)
 Examples……..
Chapter 1
Slide 36
Sports and Entertainment Marketing
© Thomson/South-Western