Presentation on theme: "Changes in Marketing Sports & Entertainment Marketing Mrs. Wilson."— Presentation transcript:
Changes in Marketing Sports & Entertainment Marketing Mrs. Wilson
Promotion Any form of communication used to persuade people to buy products through advertising, publicity, personal selling, or sales. Thirty years ago the tools to promote were totally different! Scope and reach are incredible now.
Sports & Entertainment Products Different from traditional products By nature, these products are not physical goods that can be stacked on a store shelf ESPN-themed restaurants do not sell tickets to a game They sell burgers and drinks by using the appeal of sports Golf celebrities sell everything from cars to watches non-sports related products
Comparing Traditional to Sport Marketing Mix Component TraditionalEntertainmentSports Light BulbMovieBaseball Game Product Who is my consumer? Someone in the dark needs it Someone who wants to be entertained by a plot/character Someone wants to be entertained by sports Place Where will I sell it? In a local hardware store In local theaters, stores, online, pay- per-view At local stadiums, sports bars, online, TV Price How do I compete for customers? Price better for quality than the competition and increases sales Consumer choice to buy a movie ticket is not based on price Consumer choice to buy a baseball ticket is not based on price. Promotion How do I inform customers? Advertising in print, TV, in store Web site, in-theater, TV previews, talk shows, lunch boxes Games on TV, selling jerseys, give-away, radio, etc.
Endorsement The approval or support of a product or idea, usually by a celebrity lending his or her image or name to a product Not only in sports marketing Celebrities and a public persona Marketers must match their product to the right celebrity George Foreman endorsing Cover Girl??
Core & Ancillary Products Core The main product, such as the sport event, movie, stage show, or book Ancillary A product related to or created from the core product
Name some core & ancillary… Core Movie Ancillary Soundtrack VHS/DVD Action figures
Revenue Gross income Generated by using core and ancillary products as promotional tools
Occasion Appeal Contributes to the entertainment value of the process When fans get home, they can also go online and purchase the soundtrack and book version of a film They can download player statistics from a sports web site, or they can catch the highlights of the game on television
Price Pricing sports & entertainment products is radically different from pricing traditional consumer products Movie theaters RARELY lower their ticket prices to compete with each other Price is set and uniformly adhered to People are feeling they are getting more for their money Stadium seating Food courts
Price Problems Price becomes an issue when highly paid players and celebrities go on strike for salary increases Fan loyalty can be damaged Scalping Unauthorized ticket sellers who stand outside a game Piracy Unauthorized use of an owners or creators music, movies, or other copyrighted material
Intellectual Property An idea, concept, or written or created work that is protected by copyright Piracy can occur online Street vendorsbootlegged items Royalties are lost
BUZZ A no or low-cost method of marketing associated with people telling other people about a company's products and/or services, Buzz marketing is based on peoples' direct experiences with specific services/products or on the experiences others have related to them. Both online and offline buzz marketing are synonymous with word-of-mouth marketing and networking
Convergence Overlapping of product promotion Studio may use TV advertising to promote a movie that will one day be sold on TV Web sites are used both as promotional tools and a source of revenue hosting links and online shopping for merchandise This convergence or overlap expands the profit in sports & entertainment marketing Marketers must consider all the elements, obstacles and opportunities and develop strategies for this convergence or overlap
Synergy A combined action that occurs when products owned by one source promote the growth of related products Oprah Winfrey is a good example Has an image as a lifestyle guru TV show is core product Visibility and viewer ship to promote ancillary products magazine, production company, and products she endorses
Risk and Risk Management Risks Unforeseen events and obstacles that can negatively affect business Illness or bodily injury, property damage, loss or damage to equipment, event cancellation Risk Management A strategy to offset business risks Insurance policies
If you were planning a rock concert, what would you insure? Public liability Covers your liability against claims from the public while attending your event. The premium is often dependent upon the number of people attending your event. The levels of cover can vary depending on your needs and you should discuss these with the event insurance broker. This cover is usually a compulsory element of an event insurance policy.
Property insurance Covers the property used in the event. The premium is usually dependent upon the value of the property to be covered. The levels of cover can vary depending on your event needs and you should discuss these with the event insurance broker. If you were planning a rock concert, what would you insure?
Additional insurance… Employers liability Covers you as the organizer against any claims from any staff that you might employ for the event. The premium tends to be in relation to the number of staff which you employ for the event. The levels of employers liability cover can vary depending on your needs and you should discuss these with the event insurance broker. Cancellation and Abandonment cover Covers your event against cancellation or abandonment, postponement, failure to vacate, adverse weather and rainfall affected and any other eventuality beyond the control of the organizer of the event. Covers can vary depending on your needs and you should discuss these with the event insurance broker.
What is celebrity endorsement? The approval or support of a product or idea Can you give examples?