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What do Sports and
Entertainment have in common?
They have thrilled and entertained people for
centuries—since the ancient Olympic games and
Greek plays.
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A Brief History of Leisure
Marketers sell participation
in sports and entertainment
events to consumers.
The growth of the sports
and entertainment
industries has relied on
consumers with free time,
discretionary income,
and a desire for
recreation.
Consumers people who
use products
Discretionary income
money left to spend after
necessary expenses are
paid
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By the late 1880s, both wealthy and
working-class families could seek
similar forms of entertainment, thanks
to public transportation.
In the late 1890s, Thomas
Edison invented the
kinetoscope.
Kinetoscope a device
used to view a sequence of
moving pictures
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Other milestones in the history of leisure include:
Mary Pickford becomes the first
international movie star in 1918.
The first talking movie in
1927 (The Jazz Singer)
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Babe Ruth sets records in
baseball that would stand
for decades.
The development of
television
Development of Sports and
Entertainment Marketing
William “Bill” Veeck
Key figure in the development of sports marketing
He conceived of marketing activities and events
that surround baseball games
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Drafted the first African- American player
Lou Doby
Believed consumers
wanted more than the
final score
Introduced “grandstand
events” : dazzling scoreboards,
special event nights
Took a game and turned it into
a concept that appealed to the
media and fans and made it
more profitable!
Marketing of sports became a more interesting
show and sold more advertising
Adolph Zukor
Founder of Paramount Pictures,
One of the first film producers to draw big boxoffice crowds
Owned a chain of movie theaters.
Capitalized on the appeal of dramatic stories and
popular stars
Marketing Today..
Its all about Competition
Sports and entertainment
vendors compete for a
share of the money people
spend on recreation.
The marketing directs
consumers toward sports
and entertainment
products.
vendors sellers of products
Product a good or
service that any for-profit
industry sells to its
customers
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Fan Clubs Grow Online
Fan clubs for athletes and celebrities
Operating an e-tail business
on marketing
an electronic
channel—the
make good
tools.
Thanks to
Web—can be costly,the
dueInternet,
to design,
delivery,ofreturns,
thousands
official and
and
operating expenses.
unofficial clubs are formed. They are run
fans, corporations,
and
Though Many largerby
dot-com
companies crashed
in the
celebrities.
Some
fan clubs
charge
fees, such
as Tiger
1990’s, small
stores
like Harris
Cyclery
of West
Newton,
Woods’
tigerfans.com
at $30.
Other sales
Web sites
free. Web
For
Massachusetts,
actually
increase
usingare
a basic
example,
fanemporium.com,
which
operates
for arides
group
of
site. Today,
a third of Harris’s
bicycle
business
in on
the Web
to get hard-to-find
parts
and
personal
service.
musical
celebrities,
charges no
dues.
Sites
offer newsletters,
merchandise, contests, event updates, and more.
Describe an e-business’s home page to your class after
viewing
one throughon
marketingseries.glencoe.com.
For
more information
sports and entertainment marketing,
go to marketingseries.glencoe.com.
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Changes in Marketing
Communicating through
promotion is more
important than ever.
Promotion any form of
communication used to
persuade people to buy
products
New technologies have
broadened the scope and
reach of marketing
messages, and they can be
entertainment products
themselves.
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Marketing Similarities
The marketing of sports and
entertainment products differs
from marketing traditional
products in the following four
areas:
Product
– Endorsement
– Core product
– Ancillary product
– Revenue
continued
endorsement approval or
support of a product or
idea, usually by a celebrity
core product the main
product, such as sports
event, movie, stage show,
or book
ancillary product a
product related to or
created from the core
product
revenue gross income
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Marketing Similarities
continued
Piracy the
unauthorized use of
another’s music,
movies, or
copyrighted material
Place
Price
– Piracy
– Royalty
– Copyright
royalty a payment for
material that has been
copyrighted, or legally
declared as belonging to
the creator
continued
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Marketing Similarities
continued
Promotion
– Product tie-in
– Cross-promotion
product tie-in use of
ancillary products such
as merchandise as
promotional tools
Cross-promotion any
form of communication
through which one
industry relies on another
industry to promote its
product
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Marketing Similarities
Convergence expands the
potential for profit in sports
marketing and entertainment
marketing.
convergence the
overlapping of product
promotion
Convergence and crosspromotion help to develop
synergy.
synergy a combined
action that occurs when
products owned by one
source promote the
growth of related products
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Risks and Risk
Management
In any industry, including the
entertainment industry, there
are risks.
risks unforeseen events
and obstacles that can
negatively affect
business
Successful sports and
entertainment marketers
develop risk management
strategies.
risk management a
strategy to offset business
risks
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Examples
Athletes/ Entertainers injured or ill
Bad Publicity
Drug use / suspension
Injury to audience / damaged equipment
Different Players,
Different Games
The differences between sports and entertainment
can be found in three areas:
Consumer loyalty
Product
Revenue stream
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Differences in Consumer
Loyalty
If sports fans feel their team
is trying to win, the team can
retain its consumer loyalty.
consumer loyalty
consumers’ attitude that
occurs when they are
happy with a company
and become repeat
customers
The entertainment consumer
is not motivated by brand or
team loyalty, but by a desire
for satisfying entertainment.
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Differences in Product
The sports product is consistent, or stable.
The entertainment product is variable, or
changeable.
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Differences in Revenue
Stream
The streams of revenue created by marketing
products in entertainment are very diverse.
Sporting events do not usually produce the same
amount of revenue from merchandising and
royalties as entertainment events.
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Differences in Revenue
Stream
Sports franchises earn
revenue from sponsorship.
sponsorship the
promotion of a company
in association with a
property
Sports franchises also earn
revenue from advertising
and broadcast rights.
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Similarities and Differences in Marketing
Sports Marketing
Consumer Loyalty
Consistent Product
Few Ancillary Products
Entertainment Marketing
Product
Place
Price
Lack of Consumer
Loyalty
Variable Product
Many Ancillary Products
Promotion
Convergence
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