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Chapter 12 Selling Sports and Entertainment 12.1 The Sales Process 12.2 Ticket Sales 12.3 Group and Corporate Sales Sports and Entertainment Marketing © Thomson/South-Western Winning Strategies Country Stampede─Financial Boost for Manhattan, Kansas A small community can host a huge entertainment event with the right help. corporate or organizational sponsorship related events held in conjunction with the concert tiered ticket prices affordable campsites web sit promotion Chapter 12 Slide 2 Sports and Entertainment Marketing © Thomson/South-Western Lesson 12.1 The Sales Process Goals List the steps involved in the sales process. Discuss the management skills and knowledge necessary for successful salespeople. Chapter 12 Slide 3 Sports and Entertainment Marketing © Thomson/South-Western Terms preapproach suggestion selling cold calling leads customer management Chapter 12 Slide 4 Sports and Entertainment Marketing © Thomson/South-Western SELLING SPORTS AND ENTERTAINMENT selling the direct, personal communication with prospective customers in order to assess and satisfy their needs with appropriate products and services Chapter 12 Slide 5 Sports and Entertainment Marketing © Thomson/South-Western personal selling the sales person becomes the link between the customer and the business Chapter 12 Slide 6 Sports and Entertainment Marketing © Thomson/South-Western The Sales Process The six steps of effective selling are: 1. The Preapproach Sales people learn about the: products and services offered target market competition 2. The Approach Chapter 12 Slide 7 Sports and Entertainment Marketing © Thomson/South-Western 3. Demonstration 4. Answering questions 5. Closing the sale suggestion selling asking customers if they want to purchase related products 6. Follow-up Chapter 12 Slide 8 Sports and Entertainment Marketing © Thomson/South-Western When Is Personal Selling Appropriate? Personal selling is effective for: expensive, complex products markets with a few large customers unfamiliar, unique products customers in a limited area complicated, long decision-making processes customers who expect personal attention Chapter 12 Slide 9 Sports and Entertainment Marketing © Thomson/South-Western Explain why personal selling is necessary when selling expensive items like luxury suites at a professional football stadium. Chapter 12 Slide 10 Sports and Entertainment Marketing © Thomson/South-Western MANAGEMENT SKILLS AND KNOWLEDGE FOR SUCCESS Salespeople need to manage their time effectively be stable be motivated Chapter 12 Slide 11 Sports and Entertainment Marketing © Thomson/South-Western Know the Product Salespeople need a thorough knowledge of the product or service they sell. Chapter 12 Slide 12 Sports and Entertainment Marketing © Thomson/South-Western Know the Customer cold calling contacting potential customers randomly without researching their needs first leads customer contact information obtained from market research Chapter 12 Slide 13 Sports and Entertainment Marketing © Thomson/South-Western Understand Customer Decisions A five-step decision-making process for purchases recognition of a need for a product or service search for information about alternative products or services evaluate all options a decision is reached and a purchase occurs evaluate the decision to determine if needs were met Chapter 12 Slide 14 Sports and Entertainment Marketing © Thomson/South-Western Manage Customer Information customer management building a customer base carefully scheduling time spent with customers Chapter 12 Slide 15 Sports and Entertainment Marketing © Thomson/South-Western Know the Competition Salespeople must be able to explain how their products are unique from the competition’s product superiority Chapter 12 Slide 16 Sports and Entertainment Marketing © Thomson/South-Western List three things successful salespeople must understand. Chapter 12 Slide 17 Sports and Entertainment Marketing © Thomson/South-Western Lesson 12.2 Ticket Sales Goals Explain the difference between ticket brokers and ticket scalpers. Describe the ticket economy and strategies for getting highly sought tickets. Chapter 12 Slide 18 Sports and Entertainment Marketing © Thomson/South-Western Terms ticket brokers ticket scalpers Chapter 12 Slide 19 Sports and Entertainment Marketing © Thomson/South-Western HIGH PRICES FOR THE MOST DEMANDED ENTERTAINMENT Ticket Brokers ticket brokers registered businesses that legally buy and sell tickets to a variety of events and guarantee ticket authenticity Chapter 12 Slide 20 Sports and Entertainment Marketing © Thomson/South-Western Consumers should research on-line brokers to verify legitimacy before providing credit card information. Chapter 12 Slide 21 Sports and Entertainment Marketing © Thomson/South-Western Ticket Scalpers ticket scalpers sell tickets to major sporting events, often outside the venue on the day of the event, at inflated prices illegal in some states Chapter 12 Slide 22 Sports and Entertainment Marketing © Thomson/South-Western Ticket Frenzy Some events make fans think that a “once-in-a-lifetime” event is worth a large ticket price. When season ticket holders for the Green Bay Packers pass away, they can bequeath the tickets to someone in their will. Chapter 12 Slide 23 Sports and Entertainment Marketing © Thomson/South-Western Explain why scalping is illegal in some states. Chapter 12 Slide 24 Sports and Entertainment Marketing © Thomson/South-Western THE TICKET ECONOMY Ticketmaster controls ticket sales for most venues in the country. Average consumers compete with scalpers and corporate sponsors for tickets. Chapter 12 Slide 25 Sports and Entertainment Marketing © Thomson/South-Western Work the System Buy over the Internet. Pre-register your credit card and mailing address on the web site before the on-sale date. Log on to the site a few minutes early. If the concert sells out, check back with the website for a few days to see if additional dates were added. Try again the day of the show. Chapter 12 Slide 26 Sports and Entertainment Marketing © Thomson/South-Western Landing Super Bowl Tickets 70,000 tickets are distributed for the Super Bowl 500 tickets available by lottery overpriced hotel packages offer tickets ticket brokers sell tickets If a legitimate broker fails to deliver the tickets, they must provide a refund that is 200% of the ticket price. Chapter 12 Slide 27 Sports and Entertainment Marketing © Thomson/South-Western Beware of Scams The FBI receives reports of fraudulent ticket sales for the Super Bowl. Consumers should never send cash payments or use wire transfer services for tickets. Chapter 12 Slide 28 Sports and Entertainment Marketing © Thomson/South-Western Movie Theaters Aim for 3D Sports By 2007, movie theater operators plan to screen live sports events in 3D. to boost weekday theater ticket sales Chapter 12 Slide 29 Sports and Entertainment Marketing © Thomson/South-Western How has the Internet changed the way that tickets are sold for sports and entertainment events? Chapter 12 Slide 30 Sports and Entertainment Marketing © Thomson/South-Western Lesson 12.3 Group and Corporate Sales Goals Explain sales strategies for attracting groups to sports and entertainment venues. Describe how corporations use sports and entertainment to motivate employees and impress clients. Chapter 12 Slide 31 Sports and Entertainment Marketing © Thomson/South-Western Terms group packages luxury boxes club seats Chapter 12 Slide 32 Sports and Entertainment Marketing © Thomson/South-Western FILLING THE STANDS Appealing to Groups group packages special ticket prices for group purchases of 15 or more tickets Chapter 12 Slide 33 Sports and Entertainment Marketing © Thomson/South-Western Special Privileges University alumni who make substantial contributions to athletic departments and scholarship funds may receive perks. special seating at sporting events season tickets Chapter 12 Slide 34 Sports and Entertainment Marketing © Thomson/South-Western Explain how group packages can help fill entertainment venues. Chapter 12 Slide 35 Sports and Entertainment Marketing © Thomson/South-Western CORPORATE PERKS Corporations might use sporting event tickets in a variety of ways. to promote bonding of employees as a performance reward to entertain clients Chapter 12 Slide 36 Sports and Entertainment Marketing © Thomson/South-Western Special Seating luxury boxes fancy rooms inside stadiums high in the stands near the press-box level close-circuit televisions good source of additional revenue for stadium Chapter 12 Slide 37 Sports and Entertainment Marketing © Thomson/South-Western club seats premium stadium seats high revenue source cushy and roomy provide a good view often comes with added benefits Chapter 12 Slide 38 Sports and Entertainment Marketing © Thomson/South-Western How do corporations outside of the sports and entertainment industries use sports and entertainment events for business purposes? Chapter 12 Slide 39 Sports and Entertainment Marketing © Thomson/South-Western PERFORMANCE INDICATORS EVALUATED Demonstrate critical-thinking and problemsolving skills. Describe a promotional strategy to keep the hotel at capacity on football weekends. Chapter 12 Slide 40 Sports and Entertainment Marketing © Thomson/South-Western Analyze the wants and needs of football fans, and demonstrate how your plan will satisfy them. Differentiate The University Hotel and its services. Demonstrate teamwork to complete a group project. Chapter 12 Slide 41 Sports and Entertainment Marketing © Thomson/South-Western THINK CRITICALLY 1. What is the new challenge faced by the hotel? 2. List two promotions the hotel could offer to football fans. Chapter 12 Slide 42 Sports and Entertainment Marketing © Thomson/South-Western 3. List two publications in which to advertise the hotel’s promotions. 4. What factors must be considered when determining what prices to charge per night? Chapter 12 Slide 43 Sports and Entertainment Marketing © Thomson/South-Western