Chapter 1 What Is Sports and Entertainment Marketing?mshsamandahanshew.mmswiki.wikispaces.net/file/view/Sports... · SPORTS AND ENTERTAINMENT MARKETING CHAPTER 1 SLIDE 1 CHAPTER 1

© SOUTH-WESTERN/THOMSON

SPORTS AND ENTERTAINMENT MARKETING

CHAPTER 1 SLIDE 1

CHAPTER 1

What Is Sports and

Entertainment Marketing?

1.1 Management Basics

1.2 Sports Marketing

1.3 Entertainment Marketing

1.4 Recreation Marketing



CHAPTER 1 SLIDE 2

LESSON 1.1

Marketing Basics

GOALS

Describe the basic concepts of

marketing.

Define the seven key marketing

functions.



CHAPTER 1 SLIDE 3

Marketing Concepts

We all participate in the marketing

process as a consumer of

goods/services

About ½ of every dollar you spend pays

for marketing costs

Marketing costs include product

development, packaging, advertising,

sales expenses



CHAPTER 1 SLIDE 4

What Is Marketing?

Marketing—the creation and

maintenance of satisfying exchange

relationships Creation-marketing involves product development

Maintenance-marketing must continue as long as

the business operates

Satisfaction-marketing must meet needs of both

businesses and customers

Exchange Relationships-occurs when people both

give and receive something of value



CHAPTER 1 SLIDE 5

Marketing Mix

Marketing mix—describes how a business

blends the four marketing elements

Product—what a business offers customers to satisfy

needs

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 (includes

advertising, publicity, personal selling and public

relations)



CHAPTER 1 SLIDE 6

Satisfying Customer Needs

Satisfying customer needs is the most

important aspect of marketing!

Should be the primary focus

3 Activities for Businesses

Identify customer needs

Develop products that customers consider

better than other choices

Operate a business profitably



CHAPTER 1 SLIDE 7

Key Marketing

Functions

Every time you buy a product or service, all of the

marketing functions take place.

Product/service management

Distribution

Selling

Marketing-information management

Financing

Pricing

Promotion



CHAPTER 1 SLIDE 8

Key Marketing Functions-

Product/Service Management

Designing, developing, maintaining,

improving and acquiring products or services

so they meet customer needs.



CHAPTER 1 SLIDE 9


Distribution

Determining the best way to get a company’s

products or services to the customers.



CHAPTER 1 SLIDE 10


Selling

Includes direct and personal communication

with customers to assess and satisfy their

needs

Anticipating their future needs

Includes purchases made through the

Internet



CHAPTER 1 SLIDE 11

Key Marketing Functions-Marketing-

Information Management

Gathering and using information about

customers to improve business decision

making.

Research about customers needs and tastes



CHAPTER 1 SLIDE 12


Financing

Providing methods for customers to pay for

the company’s products or services

Loans, financing, credit cards, etc.



CHAPTER 1 SLIDE 13


Pricing

Process of establishing and communicating

the value or costs of goods and services to

customers.

Supply/Demand help set the prices for

products and services



CHAPTER 1 SLIDE 14


Promotion

Using advertising and other forms of

communicating information about products,

services, images, and ideas to achieve a

desired outcome.

Example: Coupons on back of ticket stubs



CHAPTER 1 SLIDE 15

LESSON 1.2

Sports Marketing

GOALS

Define sports marketing, and

understand the importance of target

markets.

Identify sports marketing strategies.



CHAPTER 1 SLIDE 16

What Is Sports Marketing?

Sports marketing—using sports to

market products



CHAPTER 1 SLIDE 17

Determine

the Target Market

Target market—a specific group of

people you want to reach

In order to promote and sell products

and services, a company must know the

needs and wants of their target market



CHAPTER 1 SLIDE 18

How to Find

a Target Market

Disposable income—income that can

be spent freely

Demographics—specific customer

information (age ranges in the group,

marital status, gender, educational

level, attitudes and beliefs, income)

Find out why the customer chooses the

product they buy



CHAPTER 1 SLIDE 19

Spending Habits of Fans

Tickets (price they are willing to pay

depends on interest of target market,

national importance of event, popularity

of particular athletes, rivalries in the

event)

Clothing or equipment

Food

Travel



CHAPTER 1 SLIDE 20

Marketing Strategies

Sports logos on clothing

New sports bring new opportunities for

endorsements and marketing

Gross impression

Timing



CHAPTER 1 SLIDE 21

Sports Logos on Clothing

Fan loyalty

Increased value in the eyes of the buyer

Feeling of success if own products

endorsed by a successful person

Royalties-percentage of sales are earned

by teams each time merchandise bearing

their logo is sold



CHAPTER 1 SLIDE 22

New Sports Bring

New Opportunities for Endorsements

and Marketing

Arena football

Television broadcasts

Sponsorships



CHAPTER 1 SLIDE 23

Gross Impression

Gross impression—the number of

times per advertisement, game, or show

that a product or service is associated

with an athlete, team, or entertainer

Your brain records the mental images

and you remember when it comes time

to buy



CHAPTER 1 SLIDE 24

Timing

Popularity of team/sport is based on

continued winning.

Fans want products/services that

identify them with a winner.

Timing is extremely important when

marketing sporting goods!



CHAPTER 1 SLIDE 25

Ambush Marketing or

Stealth Marketing

Takes place when organizations

participate in events to some degree

rather than sponsor the events.

Example: Coca Cola might pay to be the

official sponsor, but Pepsi can pay for an

ad around the rink that spectators will see

Causes confusion about who real sponsor is



CHAPTER 1 SLIDE 26

LESSON 1.3

Entertainment Marketing

GOALS Understand why marketing must relate to the

specific audience.

Relate advances in entertainment technology

to changes in distribution.

Recognize the power of television and the

Internet as marketing tools.

Understand feedback from the customer.



CHAPTER 1 SLIDE 27

Entertainment Marketing

The purpose of entertainment marketing is

influencing how people choose to use their

time and money

Entertainment is looked at as a product to be

marketed

Marketing will look at how to use

entertainment to market other products

(endorsements of related products)



CHAPTER 1 SLIDE 28

Entertainment for Sale

What exactly is entertainment?

Entertainment—whatever people are

willing to spend their money and spare time

viewing rather than participating in

Entertainment can include sports or the arts.

Sports—games of athletic skill

Sometimes what qualifies as entertainment is

a matter of opinion



CHAPTER 1 SLIDE 29

Sports or Entertainment?

Is a distinction required for successful marketing?

Marketing-information management is used to

gather as much information as possible about the

viewers

Specific product promotions can then be

designed specifically for that audience

Must know customer needs and keep accurate

info about them to successfully market to them.



CHAPTER 1 SLIDE 30

Modern Entertainment Marketing

The Beginning of Change

Louis Le Prince—first moving pictures (1888)

Lumiere brothers—first to present a projected

movie to a paying audience (1895)

The Jazz Singer—first movie with sound

(1927)

Mickey Mouse—animation arrived (1928)

Disneyland—theme park a new approach to

the marketing mix of entertainment (1955)



CHAPTER 1 SLIDE 31

Modern Entertainment Marketing

Change Accelerated

Improvement of technology

Ease of distribution to the masses

Evolution of entertainment media

(moving pictures, radio, TV, video

recorders, CDs, DVDs)

The Internet



CHAPTER 1 SLIDE 32

The Big Eye in Every Room

The Early Days of Television and

Marketing

At the end of World War II, there were only 9 TV

stations and fewer than 7,000 working TV sets

The first demonstration of TV in 1945

The American Association of Advertising

Agencies encouraged start of television

advertising

NBC and the Gillette Company staged the first

television sports spectacular in 1946 (Estimated

audience of 150,000 watching on 5,000 TV sets)



CHAPTER 1 SLIDE 33

The Big Eye in Every Room

Television’s

Increasing Influence

Major national corporations began to

advertise

The pricing of time for TV advertising was

quickly tied to ratings or number of viewers

Because of advertisements, 9 TV stations of

1945 grew to 98 stations by 1949

Ed Sullivan Show (Elvis and the Beatles)

Appeal to a mass audience



CHAPTER 1 SLIDE 34

Entertaining the Customer

Instant feedback from the customer

(television, telephones, Internet, Social

Media)

Marketing mix of reality shows is unique

because viewers help determine the

ending

Marketing mix fine-tuned based on

customer input



CHAPTER 1 SLIDE 35

LESSON 1.4

Recreation Marketing

GOALS

Apply the marketing mix to recreation

marketing.

Describe marketing for the travel and

tourism consumer.



CHAPTER 1 SLIDE 36

Recreational Sports

Recreation—renewing or rejuvenating

our body or mind with play or amusing

activity

Recreational activities—travel,

tourism, and amateur sports that are not

associated with education institutions



CHAPTER 1 SLIDE 37

Not for the Couch Potato

Participation in recreational activity requires

time and money

Lessons

Practice

Equipment

Travel to a facility or location

People are remaining active throughout their

lives and recreational activities can cross

generations



CHAPTER 1 SLIDE 38

A Better Image

Professional sports marketers work to increase the

interest in related recreational sports

People who like to participate in sports usually like to

watch professionals play the same sport

Ladies Professional Golf Association (LPGA)

Promotion of a strong image to draw sponsors and a

broader audience (Annika Sorenstam, Michelle Wie)

When people become interested in the sport, they

start participating (spending $$ to participate)



CHAPTER 1 SLIDE 39

Travel and Tourism

Tourism—traveling for pleasure

Travel/Tourism is world’s largest industry

Data mining-collecting data about which people

travel, where and when

Relax and smell the roses

Niche travel—recreational travel or tours

planned around a special interest (special

groups of people)

Complete travel packages/tours

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Chapter 1 What Is Sports and Entertainment Marketing?mshsamandahanshew.mmswiki.wikispaces.net/file/view/Sports... · SPORTS AND ENTERTAINMENT MARKETING CHAPTER 1 SLIDE 1 CHAPTER 1