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What is Sports and Entertainment
Marketing?
Chapter 1
1.1
1.2
1.3
1.4
Marketing Basics
Sports Marketing
Entertainment Marketing
Recreation Marketing
Sports & Entertainment
Industries
• Today, more than any other time in
history, are the two most profitable
industries in the U.S.
• Fans spend billions of dollars each year on
recreation
• Reaches around the globe as well
• Entertainment is a main export of the U.S.
What is Marketing?
If you know:
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Nike:
“Just Do It”
Wheaties:
“Breakfast of Champions”
Under Armour:
“Protect this house”
Lowes:
“Lets build something together”
Butterfinger:
“Nobody better lay a finger on my butterfinger”
Apple:
“There’s an app for that”
You have been exposed to marketing.
Marketing Defined:
The process of planning, pricing, promoting, selling,
and distributing ideas, goods, or services to create
exchanges that satisfy customers
• To sum it up – Marketing is the creation and
maintenance of satisfying exchange relationships.
• Marketing is an “umbrella” term
• Current marketing practices focus on customers and
maintaining a close relationship with them
Marketing Mix
• Describes how a business “blends”
the four marketing elements.
• The 4 P’s
– Product
– Place (Distribution)
– Price
– Promotion
Marketing Mix
– Product—what a business offers customers
to satisfy needs
– (Place) Distribution—the locations and
methods used to make products available to
customers
– Price—the amount that customers pay for
products
– Promotion—ways to encourage customers
to purchase products and increase customer
satisfaction
Product
• Goods
– Tangible items that have monetary value and satisfy
your needs & wants (can touch them)
– Examples: sports equipment, TV, clothing, candy.
• Services
– Intangible items that have monetary value and satisfy
your needs & wants (can’t touch them)
– Examples: tickets, banks, dry cleaners, amusement
parks.
Place (Distribution)
• Involves the locations and methods
used to make products available to
customers.
Place (Distribution)
• Where do you buy a pair of sneakers
or a theater ticket?
– Internet?
– Retail Store?
– Theater?
– Telephone Solicitation?
– Wholesaler?
– Retailer?
Price
• Amount that customers pay for
products/services.
• Approximately 50% of an item’s
price is for the marketing costs!
• Did you know? – On average, stores
raise the price around 50% more
than what they paid for it?
Buy 2,
get 1
free!!
Promotion
• ways to encourage customers to
purchase products/services.
• increase customer satisfaction.
• includes: advertising, publicity,
personal selling, and public relations
Our product
will make
you better at
everything!
What are some forms of
Promotion?
• Newspaper
• Magazine
• Radio
• Television
• Direct Mail
• Internet Advertising
Satisfying Customer Needs
pg 5
• MOST important aspect of
marketing!
• Must perform the following:
– Identify customer needs
– Develop products/services that
customers consider better than other
choices
– Operate business profitably
Functions of Marketing
• Every marketing
activity can be
classified into
seven functions of
marketing
1. Product/Service
Management
2. Distribution
3. Selling
4. MarketingInformation
Management
5. Financing
6. Pricing
7. Promotion
Functions of Marketing
Key Marketing Functions
– Product/Service Management
• Designing, developing, maintaining,
improving, and acquiring products/services
so they meet customer needs.
– Ex: Focus groups
– Distribution
• Determining the best way to get a
company’s products/services to customers.
– Ex: Best Buy
Key Marketing Functions
– Selling
• Direct and personal communication with
customers to assess and satisfy their needs.
– satisfying customers
– anticipating customers’ future needs
– Marketing-Information Management
• Gathering and using information about
customers to improve business decision
making.
– Marketing research
» Domino’s pizza expanding to Japan
Survey Says….
• TV Sports Survey Questionnaire
Survey Results
• Why do you watch TV sports?
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To relax (2)
For entertainment (19)
I do not watch TV sports (1)
Other “Watch when I’m bored” (2)
• Approximately how many hours do you spend watching
sports during the week?
– 1 or less (13)
– 2-4 hours (6)
– 5 or more hours (5)
Survey Results
• How many tv sets do you have in your
household?
– 1-2 (3)
– 3 or more (21)
• Approximately how many live sports
events do you attend during the week?
– 0-1 (15)
– 2-3 (9)
– 1 student did not respond
Survey Results
• Which of these tv sports do you watch?
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Basketball (11)
Football (15)
Hockey (5)
Tennis (2)
Curling (2)
Swimming (1)
Other—baseball (11)
Other—soccer (2)
Other– racing (2)
Other – wrestling (2)
Other – golf (1)
Other – boxing, UFC (1)
Survey Results
• Would you be interested in a cable
channel that showed classic sports
events?
– Yes (6)
– No (5)
– Maybe (13)
Key Marketing Functions
• Financing
– Requires a company not only to budget
for its own marketing activities, but also
provides customers with assistance in
paying for the company’s
products/services.
• Ex: General Motors
Key Marketing Functions
• Pricing
– Process of establishing and communicating
the value or cost of goods/services to
customers.
• Ex: Concert tickets. Consumers like, price high
• Promotion
– Used in advertising & other forms of
communicating information about
products/services, images, and ideas to
achieve a desired income.
• Ex: coupons on back of tickets
Chapter 1.2
Page 9
What is Sports Marketing?
• Spectators of sporting events
are the potential consumers
of a wide array of
products/services.
• Sports marketing
– Using sports to market
products
Sports Marketing
• Target Market
– A specific group of people you want to reach.
• Ex: Reebok & Nike have a large market for
athletic shoes, but smaller, homogenous (similar)
group for tennis, golf, running, walking, and so
on.
• Demographics
– Specific info. such as the age ranges in the
group, marital status, gender, educational
level, attitudes and beliefs, and income.
Sports Marketing
• Disposable Income
– Income that can be freely spent.
• Spending Habits of Fans
– Important to research spending habits
of fans
– Maximize profits on items they purchase
at sporting events
Marketing Strategies
• Sports Logos on clothing
– Shows team loyalty, value of merchandise is
increased in the eyes of the buyer, consumers
feel more successful.
• Royalties - (% of sales)
• New Sports, New Opportunities
– Arena Football League (AFL) was one of the
fastest growing sports in the country.
Ambush (or Stealth)
Marketing (page 11 Marketing Myths)
• When organizations participate in
events to some degree rather than
sponsor the event.
• Why would companies want to do
this?
Marketing Strategies
• Gross Impressions
– Number of times per advertisement, game, or
show that a product or service is associated
with an athlete, team, or entertainment.
– Product Placement
• Timing
– The popularity of teams and sports figures is
based almost completely on continued
winning.
Entertainment Marketing
Lesson 1.3 pg 14
• Entertainment Marketing-Influencing how
people choose to use their time and
money
• First, Entertainment is looked at as a
product to be marketed.
• Second, use EM to attract attention to
other products
– Ex: hiring celebs to endorse related mdse. or
events.
Entertainment Marketing
• Entertainment
– Whatever people are willing to spend
their money and spare time viewing
rather than participating in.
• Any examples?
• Ex: movies, theatre, circus, or even
athletic events
Modern Entertainment
Marketing
• Beginning of 20th Century
– Performing arts were the major form of
entertainment
– Live theater, ballet, opera and concerts
• Marketing was limited
– Posters, newspapers, magazines and
word-of-mouth
• People had to travel to the show
– Show wasn’t brought to the consumers as
it is today
The beginning of change
• Louis Le Prince
– Made the first moving pictures (movies)
– first made in Britain in 1888
The big eye in every room
• 1950s- TV began to arrive in great
numbers in American homes
• Sports and Entertainment marketers
found a wide-open distribution
channel into the homes of Americans
Early days of TV and Marketing
•Early 1940s - Nine TV stations and fewer than
7,000 working TV sets existed in the US
•October 1945 – Gimbel’s Department Store in
Philly had over 25,000 people come to watch
the first demonstration of TV
•Soon after, advertising on TV was encouraged
Television’s increasing
influence
• Ratings – the number of viewers the
programming attracted
– Elvis #1 – September 1956
– Elvis #2 – October 1956 Forrest Gump!
– Beatles
Recreational Sports
Lesson 1.4 pg 20
• Recreation
– Renewing or rejuvenating your body or
mind with play or amusing activity.
• Recreational Activities
– Activities involved in travel, tourism,
and amateur sports that are NOT
associated with educational institutions.
Recreational Sports
• No Couch Potatoes
– Participation requires purchase of a
combo. of products/services
• A Better Image
– LPGA
• Annika Sorenstam – first woman in over 50
years to play in men’s PGA tournamnet
• Michelle Wie – first LPGA tournament at 13!
Travel and Tourism
• World’s largest industry
• Tourism
– Traveling for pleasure
– Vacations, honeymoons, conventions,
and family visits
• Data Mining
– Collecting data about which people
travel, where, and when.
Travel and Tourism
• Niche Travel
– Recreational travel or tours planned around a
special interest.
– Ex: Caribbean Cruise for Singles or Vacation
package for college spring breakers
• Disney now offers travel packages that
include hotel, airfare, rental car and park
tickets
• Thomas Cook – first to introduce package
tours to seaside resorts