Importance of Sports and Entertainment

Marketing

Do NowHow do you think sport differs

from entertainment?

The Sports IndustrySport: source of diversion or physical activity engaged in for pleasure

Entertainment: any activity which provides a diversion or permits people to amuse themselves in their leisure time

The Entertainment Industry

Examples:Television Live ShowsMoviesMusicBooksMagazines

How Are They Different?Sports

Entertainment

Spontaneous/not plannedUnpredictable outcomeInvolves competitionFans support one team

Usually planned with a script or programConsumers are not motivated by brand or teamConsumers do not remain loyal to a brand

The Sports and Entertainment

IndustriesToday these

industries are two of the most profitable in the US

Fans spend BILLIONS on recreation and related products every year

What is Sports Marketing?

Using sports to market a productApplying marketing principles and

processes to sports products Sports equipment, sports apparel, sports drinks

The marketing of non-sports products through association with sports

Celebrity endorsement, Sponsorship: Papa Johns - official sponsor of the Redskins

NFL and Verizon

What is Entertainment

Marketing?Marketing of

entertainment products or using entertainment to attract customers

BK AD

Growth of the Sports Industry

The sports industry generates about $200 billion a yearGrowth is measured in…..

1. Event Attendance Figures2. Media Coverage (ESPN,

Golf Channel, NFL Network)3. Employment Figures (4.5

million jobs and growing)4. Global Market Expansion

Growth in the Sports Industry

Growth of the Entertainment IndustryIn 2009 the film industry grossed $10.6

BILLIONThe largest grossing movies were

"Transformers: Revenge of the Fallen" ($402 million)

"Avatar" ($352 million)

"Harry Potter and the Half-Blood Prince" ($302 million)

This was a record year of revenue for the movie industry, up from $9.9 billion in 2008

Trends in Sports and Entertainment

3D movies (Piranha 3D, Toy Story 3, Avatar) Midnight releases (Twilight Saga)The use of social networks (Twitter, Facebook)

Economic Concepts and Their Impact on the

Industry

CompetitionThe struggle among

companies for scarce customer dollarsBased on the theory that only the strong will survive

◦Those organizations with the best products at the best price will stay in business

Types of CompetitionPrice Competition: when

a business uses the price of their product to compete in the marketplace

Non-Price Competition: when a business uses other product features (such as quality, image or service) to compete in the marketplace

Economic ResourcesAll of the things used in the

production of a good or serviceLand – anything from the earth or sea

Labor – the people who work to produce the good or service

Capitol – the money, buildings, hardware, tools, etc. used in production

Factors that influence demand for a Sports or Entertainment event

Price of the ticketsHow often the event takes

placeHow much promotion is used People involved in event (key

players or performers)

AssignmentSituation: You are to assume the role of director for an amateur

tennis tournament. Because of the tournament’s size, two different tennis clubs and several hotels within your town must be used. The town mayor is unsure about presenting this project to the town council

Activity: Convince the town mayor to support hosting your eventEvaluation: You will be graded on how effectively you cover the

following topics:◦ Explain the economic impact of sports and entertainment events

on a community/area◦ Describe factors that influence the demand for services◦ Explain the concept of competition◦ Explain the concept of economic resources◦ Describe trends in sports and entertainment marketing