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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
DO NOW
 What is your favorite
Brad Pitt movie? What is
your favorite Angelina
Jolie movie?
 What is your opinion of
these two celebrities?
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Brangelina
 Use their fame to help the
needy.
How did they
successfully bring
these sad and
depressing topics to
entertainment
media?
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The Bidding War Begins
Brangelina's $15
million babies: Record
bidding war for first
picture of twins!
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How has Brangelina taken advantage of the
paparazzi?
How have
their
philanthropic
actions
affected their
celebrity
status?
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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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 tangible parts
 physical features that
can be seen and felt
 intangible parts
 the nonphysical service features
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WHAT IS A PRODUCT MIX?
assorted features associated with a product
brand name
product packaging
various products offered under the brand
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PRODUCT MIX con’t
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 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 line
 Packaging
 Brand
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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
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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





nonrecognition
rejection
recognition
preference
insistence
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 What are the components of the product
mix?
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DO NOW
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Name the company that goes with
each letter.
Sports and Entertainment Marketing
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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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THE BOTTOM LINE FOR SPORTS
 The bottom line for sports is winning.
 The bottom line for business is profit.
 Winning teams generate profit.
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 blue-chip athletes
 excellent athletes
 demonstrate good character
and leadership qualities on
and off the field
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 a voluntary
organization through
which the nation’s
colleges and
universities govern
their athletics
programs
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Compensation for Athletes?
 Scholarships and grants
 Signing with an agent = no longer
eligible in NCAA
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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 $1 million.
 fringe benefits
 incentives received in addition to base
salary
University of Minnesota
Tubby Smith
Coach of Men’s Basketball
$2,073,307
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Attracting and Keeping Star Athletes
 Competition
 Recruiters compete
with professional teams
as well as with other
colleges
 Marketing effort to
attract talent to their
schools
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Why is it so important to have
star athletes?
 Large enough crowds = more profit
 Popular celebrities help increase the
advertising revenue
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Women’s Sports
 In recent years, growing in popularity
 Far less pay
 Creative marketers may develop new
products to appeal to females who are
relatively new sports fans.
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Blue Chips
Should college athletes be compensated for their performances?
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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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CUSTOMIZING PRODUCTS
 customizing
 changing a product to fit the needs or wants
of a particular market
 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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 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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MARKETING TO BABY
BOOMERS
 Baby Boomers, born between 1946 and
1964, are one of the best-known market
segments.
Ages 65 - 47
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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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America as a “melting pot”
 Why have marketers always viewed it
as a white, Anglo-Saxon nation?
What is the ethnicity of U.S. population?
2010 Census
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A Changing Demographic
 2000 – 2010:
 Hispanic population
43%
 Black population
12.3%
 White population
5.7%
 1990 – 2000:
 Hispanic population
57.9%
 Black population
15.6%
 White population
5.9%
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 How will the racial change in population
growth in America affect marketing?
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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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THE PRODUCT LIFE CYCLE
 product life cycle
1.
2.
3.
4.
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introduction
growth
maturity
decline
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Introduction Stage
product is a novelty with only one brand
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Growth Stage
 target market purchases the
product regularly
 advertising focuses on
customer satisfaction
 competition increases
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The Maturity Stage
 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
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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 Get in groups of four.
 Each take one of the stages of the
product life cycle.
 For each stage illustrate a product that is
in that stage.
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