Download Sports and Entertainment Marketing

Chapter 7
The Product Is Sports
and Entertainment
7.1 The Product Mix
7.2 Recruiting Athletes and
Entertainers
7.3 Customized Entertainment
7.4 Product Marketing Strategies
Sports and Entertainment Marketing
© Thomson/South-Western
Winning Strategies
Fame and Fortune Used to Benefit Those
in Real Need
 Brad Pitt has used his fame to draw
attention to those in need.
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children with AIDS in Africa
the plight of Haitian children
global poverty conditions
helped sponsor architectural competition to
rebuild part of New Orleans
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Lesson 7.1
The Product Mix
Goals
 Define product mix, product extension,
and product enhancement.
 List and describe the components of
the product mix.
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Terms
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product mix
product extensions
product enhancements
product line
brand
trademark
licensed brand
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WHAT IS A PRODUCT MIX?
 tangible parts
 physical features that can be seen and felt
 intangible parts
 the nonphysical service features
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 product mix
 the total assorted features associated with the
product
 brand name
 various products offered under the brand
 product packaging
 product extensions
 items added to a product to make it more
attractive to the target market
 guarantees
 warranties
 instructional CDs
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Basic vs. Enhanced Product
 product enhancements
 features added to the basic product that
satisfy additional needs and wants with the
same purchase
 add value to the product and may increase
the purchase price
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 Provide three examples of a product
enhancement.
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PRODUCT MIX COMPONENTS
 Product mix includes product line,
packaging, and brand development.
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Product Line
 product line
 a group of similar products with slight
variations to satisfy the different needs of
consumers
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Packaging
 Product packaging components to
consider include
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ease of use
safety
accessibility
environmental friendliness
Sports and Entertainment Marketing
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Brand
 brand
 the name, symbol, word, design, or combination of
these elements that identifies a product, service, or
company
 trademark
 the legal protection of words and symbols used by
a company
 licensed brand
 a well-known name and/or symbol established by
one company and sold for use by another
company
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 The five stages of brand recognition are
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nonrecognition
rejection
recognition
preference
insistence
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 What are the components of the product
mix?
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Lesson 7.2
Recruiting Athletes and
Entertainers
Goals
 Define the bottom line for sports.
 Explain the high cost of sports and
entertainment events.
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Terms
 blue-chip athletes
 NCAA
 fringe benefits
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THE BOTTOM LINE FOR
SPORTS
 blue-chip athletes
 excellent athletes
 demonstrate good character and leadership
qualities on and off the field
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 The bottom line for sports is winning.
 The bottom line for business is profit.
 Winning teams generate profit.
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NCAA Regulations
 NCAA
 a voluntary organization through which the
nation’s colleges and universities govern
their athletics programs
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Compensation for Athletes?
 Athletes receive scholarships and
grants for their college education.
 After signing with an agent, a college
athlete can no longer participate in
college sports.
 In some states, proposals have been
brought to the legislature to pay college
athletes.
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THE COST OF SUCCESS
 Success requires
 skilled coaches
 top-notch players
 popular entertainers
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Attracting and Keeping
Coaches
 The best coaches can command
annual salaries in excess of $2 million.
 fringe benefits
 incentives received in addition to base
salary
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Attracting and Keeping Star
Athletes
 Competition for top athletes is fierce.
 Recruiters compete with professional
teams as well as with other colleges.
 Recruiters need a well refined sales
and marketing effort to attract talent to
their schools.
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The Price for Top Musicians
and Other Entertainers
 Popular performers can attract large
enough crowds to make an event
profitable.
 Popular celebrities help increase the
advertising revenue of their television
shows.
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Marketing Women’s Sports
 In recent years, women’s sports have
grown in popularity.
 Relative to male counterparts, women
receive far less pay.
 Creative marketers may develop new
products to appeal to females who are
relatively new sports fans.
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 Why is it important for young, talented,
and highly sought-after athletes to hire
trustworthy agents to represent them?
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Lesson 7.3
Customized Entertainment
Goals
 Define customizing.
 Describe the financial impact of Baby
Boomers on the entertainment industry.
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Terms
 customizing
 impromptu
 tiering
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CUSTOMIZING PRODUCTS
 customizing
 changing a product to fit the needs or wants
of a particular market
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 impromptu
 spontaneous and changing
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Local TV American Style
 Although local programming is less
expensive to produce, it has fallen out
of favor with major networks.
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 Children’s Programming
 Because hosts of locally produced TV
shows had such a large impact on
children, parents requested that hosts not
endorse products.
 Advertisers lost interest in sponsoring locally
produced children’s shows.
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 Sports Programming
 Excessive salaries of sports figures have
helped drive up the costs of television
coverage of sporting events.
 tiering
 specific sports programs will be offered
outside the basic cable or satellite package
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Public TV and Radio
 Public TV and Radio are viewer- and
listener-supported.
 programming is tailored to local audiences
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 Why is different TV programming shown
in different cities or regions of the United
States?
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MARKETING TO BABY
BOOMERS
 Baby Boomers, born between 1946 and
1964, are one of the best-known market
segments.
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Boomers Won’t Retire
 Baby Boomers have the discretionary
income to pay for the products and
services they desire.
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Segmenting the Group
 The U.S. population is aging.
 Marketers will need to focus their efforts
on this aging market.
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Entertaining the Boomers
 Baby Boomers are increasing their
movie attendance.
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Understanding All Parts of the
Group
 Through 2002, Baby Boomers will
continue to be a major target of
entertainment marketing.
 As the Boomer group is so large,
marketing messages need to be
developed for specific subgroups of
Boomers.
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 Why are Baby Boomers important to
entertainment marketers?
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Lesson 7.4
Product Marketing Strategies
Goals
 List and describe the stages of the
product life cycle.
 Explain how products are positioned in
the marketplace.
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Terms
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product life cycle
skimming price strategy
penetration price strategy
positioning
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THE PRODUCT LIFE CYCLE
 product life cycle
 introduction, growth, maturity, and decline
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Introduction Stage
 introduction stage
 product is a novelty
 only one brand of product is available
 skimming price strategy
 introduces new products at a very high price
 penetration price strategy
 uses low pricing to help capture a large
market share early
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Growth Stage
 second part of product life cycle
 target market purchases the product
regularly
 advertising focuses on customer
satisfaction
 competition increases
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The Maturity Stage
 third stage of product life cycle
 sales are level or slowing down
 marketing costs increase
 sales prices often offered to hold off
competition
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The Decline Stage
 sales decrease
 alternatives include
 drop a product
 sell/license
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 discount
 regionalize
 modernize/alter
 recommit
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 What are the stages of the product life
cycle?
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POSITIONING A PRODUCT
 positioning
 used by a company to differentiate its
products or services from its competitors’
products or services
 status, price, or brand recognition
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 Pick a one product in the introductory
stage, growth stage, maturity stage, and
decline stage.
 Then pick entertainer/athlete to promote
the product. Come up with sales
promotion for each product/promoter
 Put into a power point to present to
class.
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