Lesson 2.1 Sports & Entertainment Marketing Defined Copyright © 2013 by Sports Career Consulting, LLC

Lesson 2.1 Sports & Entertainment Marketing Defined

Copyright © 2013 by Sports Career Consulting, LLC

LESSON 2.1

What is SEM?

"I'm tired of hearing about money, money, money, money, money. I just want to play the game, drink Pepsi, wear Reebok.”

- NBA Star, Shaquille O'Neal

MARKETING is the process of developing, promoting, and distributing products, or goods and services, to satisfy customers’ needs and wants

What is SEM?

The term “marketing” has grown to encompass many business activities such as selling, promotion and publicity

LESSON 2.1

What is SEM?

What is Sports & Entertainment Marketing?

To define Sports & Entertainment Marketing, you must first understand the foundation of the term:

Marketing Sports Entertainment

LESSON 2.1

What is SEM?

SportsA source of diversion or physical activity engaged in for pleasure. Sports can be a participation or spectator activity, and it is a form of entertainment either way

Sport, as used in contemporary sport management and in relation to the sport business industry, denoted all people, activities, businesses, and organizations involved in producing, facilitating, promoting, or organizing any sport business, activity, or experience focused on or related to fitness, recreation, sports, sports tourism, or leisure

What is SEM?

SPORTS INDUSTRYThe sports industry is the market in which the businesses and products offered to its buyers are sport related and may be goods, services, people, places or ideas

LESSON 2.1

What is SEM?

Whatever people are willing to spend their money and spare time viewing rather than participating

Entertainment

LESSON 2.1

What is SEM?

It is the goal of the sports and entertainment marketer to provide a product or service that can satisfy the needs and wants of those individuals who choose to be entertained during their leisure time

LEISURE TIME

Leisure time is the time available to people when they are not working or assuming responsibilities, often times referred to as “free time”


What is SEM? Sports marketing is the act of using sports as a platform to market products or services and increase sales or the process the of marketing and selling the sports property itself

Entertainment marketing is the process of developing, promoting, and distributing products, or goods and services, to satisfy customer’s needs and wants through entertainment, or any diversion, amusement, or method of occupying time

What is SEM?

Lesson 2.2 The Fusion of Marketing with Sports & Entertainment


LESSON 2.2

What is SEM?

Marketing through Sports & EntertainmentCompanies use sports and entertainment as a vehicle to gain exposure for their products

Coca-Cola, McDonald’s, Panasonic, Visa, General Electric and others spending millions to sponsor the 2014 Winter Olympic Games in Sochi as a tool to brand their product globally on the international stage

Gatorade affiliating its product with athletes like Derek Jeter, Peyton & Eli Manning, Jimmie Johnson, Usain Bolt, Sidney Crosby and Landon Donovan

LESSON 2.2

What is SEM?

Fundamental Concept of SEM:


Marketing through Sports & Entertainment

vs.

Marketing of Sports & Entertainment

What is SEM?



Companies use sports and entertainment as a vehicle to gain exposure for their products

HP serving as presenting sponsor of the Sundance Film Festival

Marketing through

Sports & Entertainment

Product placement is a tactic companies use to place their products within a particular form of entertainment to gain visibility or exposure


What is SEM?

What is SEM?



Audi vehicles being prominently featured in the blockbuster film, Iron Man 3

Judges on the hit show American Idol drinking Coke products during episodes

http://www.google.com/url?sa=i&rct=j&q=audi+in+iron+man+3&source=images&cd=&cad=rja&docid=5LeCw0DUMWoWyM&tbnid=9j6Fqn_sK7kmwM:&ved=0CAUQjRw&url=http%3A%2F%2Fteaser-trailer.com%2Firon-man-3-tony-stark-drives-audi%2F&ei=tvD6UYqgCqbn2wWqmYH4Aw&bvm=bv.50165853,d.b2I&psig=AFQjCNHhDbE6KO4Yx1yDBdquYFioUBnCMw&ust=1375486454082432

What is SEM?



Marketing of Sports & Entertainment involves the promotion and sales of the sports and

entertainment products themselves

The Potomac Nationals baseball club selling special “Holiday” ticket packages

The Kansas City Royals branding the 2013 season with the slogan “This Year, We're Trying to Win” in an effort to communicate the message of re-building a franchise to the fan base

http://www.google.com/url?sa=i&rct=j&q=kansas%20city%20royals&source=images&cd=&cad=rja&docid=C6ORTMrpuIjpjM&tbnid=RvutTVxPWCfu3M:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.forums.mlb.com%2Fml-royals&ei=wfH6UcPvCqfM2gXD6oGIBA&bvm=bv.50165853,d.aWM&psig=AFQjCNH3uKzdHKn4M4pZvtbxE7qs7n32OQ&ust=1375486742596969

What is SEM?




entertainment products themselvesDisney Studios spending over $250 million to

produce and promote the 2013 box office bust The Lone Ranger. The Hollywood Reporter recently suggested that, based on information from industry insiders, marketing a film worldwide now costs around $175 million

A country club offering a special rate to increase its membership

http://www.google.com/url?sa=i&rct=j&q=the%20lone%20ranger%202013&source=images&cd=&cad=rja&docid=0CS6po4E-PodfM&tbnid=6kIcqH7AIwOqKM:&ved=0CAUQjRw&url=http%3A%2F%2Fen.wikipedia.org%2Fwiki%2FThe_Lone_Ranger_(2013_film)&ei=RfP6Ud63OsSQ2gWtoIGQBA&psig=AFQjCNE8LOhtM-Pvxe4HY0I7DzdB6SBN-w&ust=1375487172097726

What is SEM?




entertainment products themselves

Puma advertising the launch of a new sneaker or shoe line

FieldTurf selling and installing a synthetic grass football field at a local high school

What is SEM?

Discussion Topic

Marketing OF Sports:

The marketing OF sports occurs as the Staples Center marketing staff actively engages in the activity of selling suites to corporations, thereby marketing their products


Sports Management vs. Sports Marketing

Sports management is the study and practice of all people, activities, businesses or organizations involved in producing, facilitating, promoting or organizing any sport-related business or product


What is SEM?

Although the terms are often used interchangeably, sports management is best described as the application of management concepts and principles to the sports industry while sports and entertainment marketing refers to the marketing concepts and principles to both the sports and entertainment industries

Sports Management vs. Sports Marketing

What is SEM?

Sport law

Facility management

Human resources

Sport governance

Leadership

Sport management areas of study might include:


What is SEM?

Tostitos sponsoring the Fiesta Bowl A MLS team offering payment plan options for

season ticket buyers The Big East athletic conference agreeing to a 7 year

television contract in 2013 with ESPN worth an estimated $130 million

Examples of Sports Marketing


http://www.google.com/url?sa=i&rct=j&q=the%20big%20east&source=images&cd=&cad=rja&docid=Y8T8xXHESyik7M&tbnid=cExRKtVDbJCZtM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.bloguin.com%2Fcrystalballrun%2F2012-articles%2Ffebruary%2Fthe-top-10-offseason-storylines-in-the-big-east.html&ei=TfT6UdjqIoe42wWRw4GQCQ&psig=AFQjCNHMfKA0FWLTq810LOUX_grT5u_81Q&ust=1375487430026098

What is SEM?

A corporation’s purchase of a courtside tickets in a NBA Arena

A sign or banner displaying a company’s logo at a hockey rink

Coca-Cola paying for “pour rights” at an event or facility



What is SEM?

A local restaurant sponsoring the local high school soccer team

Blimp flying over sporting events Fans receiving free bobble head dolls at a baseball game



What is SEM?

Nike partnering with Microsoft to launch fitness technology with Nike+ Kinect Training

Foot Locker stores offering special sales or coupons to help increase sales



What is SEM?

Eli Manning hosting Saturday Night Live



Entertainment Marketing is the process of developing, promoting, and distributing products, or goods and services, to satisfy customer’s needs and wants through entertainment, or any diversion, amusement, or method of occupying time


What is SEM?

What is SEM?

Seeing the Houston Symphony perform at Jones Hall in downtown Houston

Attending a LSU Tigers football game Reading one of Suzanne Collins’ novels in

The Hunger Games trilogy

Examples of Entertainment


What is SEM?

Visiting the Seattle Aquarium Going to a Zac Brown Band or Adele concert Listening to the newest Justin Timberlake song Watching the Broadway musical “Lion King”



What is SEM?

Going to the Ringling Bros. and Barnum & Bailey circus at the American Airlines Center in Dallas

SeaWorld Orlando opening the new attraction ‘Antarctica: Empire of the Penguin’ and Universal Orlando opening Transformers: The Ride 3D in 2013



http://www.youtube.com/watch?v=aH0jVjFyYa8

http://www.google.com/url?sa=i&rct=j&q=seaworld%20antarctica&source=images&cd=&cad=rja&docid=u9bZTnAOuTeqoM&tbnid=Bv19XyUwz7SQJM:&ved=0CAUQjRw&url=http%3A%2F%2Fseaworldfan.wordpress.com%2F2012%2F09%2F17%2Fantarctica-empire-of-the-penguin-behind-the-scenes-part-i%2F&ei=Afb6UZOFGMW02wXszICIBA&psig=AFQjCNEyo164R89NuYTngzYsBkLWMPnzdg&ust=1375487859090466

What is SEM?REVIEW

1) Explain the two primary types of sports and entertainment marketing

2) Compare and contrast sports marketing and entertainment marketing

What is SEM?

LESSON REVIEW (ANSWERS)

1) Explain the two primary types of sports and entertainment marketing

1-Marketing of sports & entertainment

2-Marketing through sports & entertainment


Sports are entertainment but several key differences separate the two: sports are unscripted, sports customers are extremely loyal and an emotional attachment is very prevalent in sports

Lesson 2.3 Sports ARE Entertainment

What is SEM?Sports ARE Entertainment!

There are many similarities between sports and other forms of entertainment as each activity is one that entertains or occupies our time

Sports are a form of entertainment

Entertainment may be presented in the form of sports

1.Watching a Broadway show2.Listening to music3. Watching a movie4. Watching a football game5. Playing a game of soccer


What is SEM?


Technology’s Impact on SEM

Sports ARE Entertainment“I believe sports is entertainment. I know there’s athletic

excellence. But when I watch a game-let’s say I’m watching Charles (Barkley’s) show on (TNT)-it’s not just for the athletic excellence. Every piece of information is available in that telecast: scores, highlights, standings,

analysis-0-right? I watch it because it’s entertaining. It’s about being entertained. It’s about being consumed.

You’re a consumer, and you’re consumed by the entertainment, you’re engaged by the entertainment.”

PETER GUBERChairman and founder of Mandalay Entertainment,

Co-owner of NBA’s Golden State WarriorsFormer CEO Sony Pictures and Columbia Pictures

What is SEM?

Differentiating BetweenSports & Entertainment

Sports are“unscripted”


Unscripted:

Consumers of sports do not know the outcome of the event in which they are participating

What is SEM?


Sports entertainment relies heavily on

emotion


Consumers of sportsproducts have anemotional investmentor interest in theoutcome of the event(winning vs. losing,close games vs. “blow outs”)

What is SEM?


Sports exposedifferences

in customer loyalty

Customer Loyalty:

A customer decision to become a repeat consumer of a particular product or brand


What is SEM?Integrating Sports with Entertainment

Cross Promotion:

The convergence of two entertainment properties working together to market products or services.

Super Bowl Half-Time ShowsMajor League Baseball / HBO’s ‘Game of Thrones’

ESPN’s ESPY AwardsGorillaz new album / Converse

Pacers / Indy 500 promo


http://espn.go.com/espy2004/s/04bestfemalegolfernominees.html

What is SEM?Integrating Sports with Entertainment


Major League Baseball (MLB) partnering with HBO to cross promote Opening Day with season premiere of hit series, “Game of Thrones”

Beyonce performing at half time of the 2013 Super Bowl and Pitbull, Macklemore and Ryan

Lewis and Florida-Georgia Line performing at the 2013 Preakness Stakes

http://www.youtube.com/watch?v=2bWTOe7WUSc

http://www.youtube.com/watch?v=jEk5x4dz2l8

Indiana Pacers mascot Boomer and the Indiana Pacemates cheerleaders on site at the Indianapolis Motor Speedway.

LESSON 2.3

What is SEM?

Integrating Sports with Entertainment


Variety.com reports that a significant factor in ESPN’s successful launch of its Chicago-based

website on all things Windy City was cross promotion, suggesting the cable company used “plenty of cross-promotion as a way to attract

listeners to the site”

Cross promotion can be an effective sales and branding tool for all parties involved

What is SEM?



It took just six months for ESPNChicago to become the city’s top sports site, attracting about 590,000 unique

visitors in the month of June alone while the city’s historic newspaper company’s (Chicago Tribune) online

sports section drew just 455,000 unique visitors

What is SEM?


In 2011, 20th Century Fox engaged in several cross promotional efforts, including a tie-in with TNT and the NBA

playoffs and an advertising campaign with Farmers insurance, to promote the release of the film "X-Men: First Class”, yet the film was largely underwhelming at the box

office, yielding around $36 million less in its opening weekend than 3 of the other 4 installments of the film’s

franchise (the third film, “X-Men”, did just as poorly)


What is SEM?


A badly botched a Spider-Man 2 promotion in which MLB had planned to feature the Spider-Man logo on each base

during the All-Star Game provides a cautionary tale to marketers considering cross promotional strategies. The league received such opposition from fans and

baseball purists that the promo was eventually pulled.


+ =

What is SEM?

LESSON 2.3 REVIEW


What is SEM?

LESSON 2.3 REVIEW (ANSWERS)


Sports are entertainment but several key differences separate the two: sports are unscripted, sports customers are extremely loyal and an emotional attachment is very prevalent in sports

Lesson 2.4 Primary Marketing Functions

LESSON 2.4

What is SEM?

Pricing Distribution Promotion Financing Selling Information-Management Product and Service Management

Primary Functions of Marketing


LESSON 2.4

What is SEM?

Pricing: Assigning a value to products and services


Price is determined on the basis of supply and demand Tickets to the Super Bowl are very expensive because demand is high. In 2013, the New York Jets chose to lowering the prices on about 5,000 seats combined for season ticket holders in the 300-level and in the club seating areas (in some cases dropping prices from $700 to $255 for season tickets) at MetLife Stadium based on the supply and demand that impacted last year's sales in those areas


LESSON 2.4

What is SEM?

Pricing: Assigning a value to products and services


Despite the fact that Disney announced ticket prices at both Disneyland and Disney World while eliminating many of the traditional discounts given to local residents, the 2013 summer is expected to be one of the busiest for the theme parks in years with attendance figures increasing significantly.

Tickets for the 2014 men's ice hockey gold medal game at the Sochi Olympics were unavailable within a half hour of going on sale online. Customers were able to buy a maximum of four tickets, with prices ranging from $233 and $1,132.


LESSON 2.4

What is SEM?


When demand fluctuates as frequently as it does in the ticketing world, companies must implement strategies to help identify the best price points to match demand.

This is why many organizations are moving toward a “dynamic pricing” structure where games in higher demand cost more than the same ticket for a game with lower demand…


LESSON 2.4

What is SEM?

Primary Functions of MarketingDistribution: Determining how best to get products and services to consumers

EA Sports sells their video game products at Target and Best Buy stores, knowing that consumers shop at those stores for video games and entertainment


LESSON 2.4

What is SEM?

Primary Functions of MarketingOn Demand and streaming services have become prevalent options for consumers in today’s marketplace


As Apple tries to hold on to market share, they are constantly adding new streaming content for their Apple TV product (such as HBO Go, ESPN) to appeal to a broader base of customers

LESSON 2.4

What is SEM?


Sports and entertainment companies must determine which distribution strategies will help to maximize sales, whether that is mass distribution in as many outlets as possible or partnerships with individual retailers to create exclusivity and drive demand.


LESSON 2.4

What is SEM?


Taylor Swift’s 2012 album release Red received a boost

because the album was available at several

nontraditional retail outlets, including Starbucks, Target,

Papa John’s Pizza and Walgreens, selling over 1.2

million copies in its first week


http://www.google.com/url?sa=i&rct=j&q=taylor%20swift%20red&source=images&cd=&cad=rja&docid=gJiIAcoSZeambM&tbnid=D2OMufeJk3nmKM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.fanpop.com%2Fclubs%2Ftaylor-swift%2Fimages%2F32284207%2Ftitle%2Fred-fanart&ei=Lv76UZfxH8PX2QWw94GQDQ&psig=AFQjCNHhY4mEmfM4LUxHusMwhv3otTyPKA&ust=1375489917719321

LESSON 2.4

What is SEM?



To promote the 2013 release of his album Magna Carta Holy Grail, Jay-Z inked an exclusive (and lucrative) partnership with Samsung to provide free copies of the album to one million Samsung cell phone and tablet owners before it was available for sale.

LESSON 2.4

What is SEM?



Exclusive distribution doesn’t always guarantee success however, illustrated by the disappointing sales of Sears’ “Kardashian Kollection”

LESSON 2.4

What is SEM?

Primary Functions of MarketingPromotion: Communicating information about products and services to consumers

GameFly, Inc., an online video game rental subscription service, announced a national summer-long promotion with Six Flags last summer, in which the online video game rental company offered Six Flags guests extended “free” trials of their subscription service as well as providing one million gift cards available for giveaway at toll booth exits at each park


LESSON 2.4

What is SEM?

Primary Functions of MarketingFinancing activities could include:

1. Creating a budget for a company’s marketing plan

2. Analyzing the cost effectiveness of existing or past marketing efforts

3. Providing customers with flexibility in purchasing company products or services


LESSON 2.4

What is SEM?


In July of 2013, Nike reduced its annual forecast for sales and earnings after expectations that revenue

in China would decline throughout the remainder

of the fiscal year


LESSON 2.4

What is SEM?

Primary Functions of MarketingBudgets and projections/forecasts are never an exact science.

The 2013 summer release of the film Star Trek Into Darkness was forecast to break the $100 million barrier but made just $84 million, not good news for the studio after budgeting a reported $200 million to produce the movie.


LESSON 2.4

What is SEM?

Primary Functions of MarketingIn 2012 , the US Army chose to end it NASCAR sponsorship after the Air National Guard spent $650,000 to sponsor a 2010 NASCAR Sprint Cup race that resulted in just 439 recruitment leads, none of which ended up joining the Army


LESSON 2.4

What is SEM?

Primary Functions of MarketingLike many professional sports franchises, MLB’s Washington Nationals offer payment plans for customers purchasing ticket packages. According to the team’s website, the Nats’ “Grand Slam E-Z Payment Plan allows season ticket holders to pay a fraction of the total cost of their tickets in easy monthly payments. This is available for either Full, Half, or Partial Season Ticket Plans.”


LESSON 2.4

What is SEM?


LESSON 2.4

What is SEM?


1. Cultivating prospective buyers (or leads) in a market segment

2. Conveying the features, advantages and benefits of a product or service to the prospective buyer

3. Closing the sale


Selling: Communicating with consumers to assess and fill their needs, as well as anticipating future needs

LESSON 2.4

What is SEM?

Primary Functions of Marketing Many professional sports teams utilize a call center

to revenue generated by ticket sales

A call center is a physical location where calls are placed, or received, in high volume for the purpose of sales, marketing, customer service; typically through the use of telemarketers

Call centers employ a staff to perform telemarketing activity with the goal of selling ticket packages over the telephone


LESSON 2.4

What is SEM?

Primary Functions of Marketing The University of Minnesota athletics department

outsourced their ticket sales operation to a third party organization (Aspire Group) to help boost ticket sales for

Gopher athletic events.

Aspire deployed a full-time sales staff to work in Minneapolis on the effort.


LESSON 2.4

What is SEM?

Primary Functions of MarketingMarketing Information-Management: Gathering and using information about customers to improve business decision making


Professional sports teams began offering smaller ticket packages (half-season, quarter-season, five-game packages) after determining through customer research that full season ticket plans were often too costly and/or time consuming for many fans to purchase

LESSON 2.4

What is SEM?

Primary Functions of MarketingAs visitors pass through the turnstiles at Disneyland in

California, guests are randomly selected to answer interview questions from friendly staff members

equipped with hand held data recording devices. This provides Disney management with up to date

information about park guests, such as where they are from, how many are in their group, and how many times they have visited the theme park in the past.


LESSON 2.4

What is SEM?

Primary Functions of MarketingOne of Nike’s product management efforts includes the “Nike Field Tester Program” in which selected applicants will wear Nike shoes for typically 4-8 weeks. Testers keep a daily written account of information relating to the product. Also, testers are required log the number of hours the shoes were worn each day, the surfaces shoes were worn on, observations regarding the shoe’s fit, performance and durability.



Product/Service Management:Designing, developing, maintaining, improving, and acquiring products or

services so they meet customer needs


LESSON 2.4

What is SEM?

LESSON 2.4

What is SEM?


Executives from professional sports teams are always working to improve their product, recognizing the

importance of fielding a competitive team to meet the demands of consumers (fans)


LESSON 2.4

What is SEM?

Following in the footsteps of the popular “app” ecosystem

which allows anyone to create games for mobile

devices, Microsoft announced that the release of its Xbox One gaming console would allow developers to create

their own games



What is SEM?

LESSON 2.4 REVIEW (ANSWERS)

1) Describe the seven functions of marketing

1- Pricing

2- Distribution

3- Promotion

4- Financing

5- Selling

6- Marketing information-management

7- Product and service management

Documents

Lesson 2.1 Sports & Entertainment Marketing Defined Copyright © 2013 by Sports Career Consulting, LLC