What is Sports and Entertainment Marketing? Chapter 1 1.1 Marketing Basics 1.2 Sports Marketing 1.3 Entertainment Marketing 1.4 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: 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: Theres 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 Ps Product Place (Distribution) Price Promotion
Marketing Mix Productwhat a business offers customers to satisfy needs (Place) Distributionthe locations and methods used to make products available to customers Pricethe amount that customers pay for products Promotionways 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 (cant 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%Approximately 50% of an items price is for the marketing costs! Did you know? On average, stores raise the price around 50% more than what they paid for it?
Promotion ways to encourage customers to purchase products/services. increase customer satisfaction. includes: advertising, publicity, personal selling, and public relations Buy 2, get 1 free!! 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 1.Product/Service Management 2.Distribution 3.Selling 4.Marketing- Information Management 5.Financing 6.Pricing 7.Promotion Every marketing activity can be classified into seven functions of marketing
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 companys 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 Dominos pizza expanding to Japan
Survey Says. TV Sports Survey Questionnaire
Survey Results Why do you watch TV sports? To relax (2) For entertainment (19) I do not watch TV sports (1) Other Watch when Im 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? Basketball (11) Football (15) Hockey (5) Tennis (2) Curling (2) Swimming (1) Otherbaseball (11) Othersoccer (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 companys 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 PlacementProduct 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 20 th 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 wasnt 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 Gimbels Department Store in Philly had over 25,000 people come to watch the first demonstration of TV Soon after, advertising on TV was encouraged
Televisions increasing influence Ratings the number of viewers the programming attracted Elvis #1 September 1956Elvis #1 Elvis #2 October 1956 Forrest Gump!Elvis #2 Forrest Gump! BeatlesBeatles
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 mens PGA tournamnet Michelle Wie first LPGA tournament at 13!
Travel and Tourism Worlds 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