1. Sports and Entertainment Marketing © Thomson/South-Western ChapterChapter The Product Is Sports and Entertainment 7.1 The Product Mix 7.2 Recruiting Athletes and Entertainers 7.3 Customized Entertainment 7.4 Product Marketing Strategies 7

2. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 2 Winning Strategies Brad Pitt has used his fame to draw attention to those in need. children with AIDS in Africa the plight of Haitian children global poverty conditions helped sponsor architectural competition to rebuild part of New Orleans Fame and Fortune Used to Benefit Those in Real Need

3. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 3 Lesson 7.1 The Product Mix Goals Define product mix, product extension, and product enhancement. List and describe the components of the product mix.

4. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 4 Terms product mix product extensions product enhancements product line brand trademark licensed brand

5. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 5 WHAT IS A PRODUCT MIX? tangible parts physical features that can be seen and felt intangible parts the nonphysical service features

6. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 6 the total assorted features associated with the product brand name various products offered under the brand product packaging product extensions items added to a product to make it more attractive to the target market guarantees warranties instructional CDs product mix

7. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 7 Basic vs. Enhanced Product product enhancements features added to the basic product that satisfy additional needs and wants with the same purchase add value to the product and may increase the purchase price

8. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 8 Provide two examples of a product enhancement. Your example: Classmates example:

9. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 9 PRODUCT MIX COMPONENTS Product mix includes product line, packaging, and brand development.

10. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 10 Product Line product line a group of similar products with slight variations to satisfy the different needs of consumers

11. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 11 Packaging Product packaging components to consider include ease of use safety accessibility environmental friendliness

12. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 12 Brand brand the name, symbol, word, design, or combination of these elements that identifies a product, service, or company trademark the legal protection of words and symbols used by a company licensed brand a well-known name and/or symbol established by one company and sold for use by another company

13. Sports and Entertainment Marketing © Thomson/South-Western WhoWho came up with these phrases??? Chapter 7 Slide 13

14. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 14 1. non-recognition – unable to identify new brands 2. rejection – will not purchase due to brand 3. recognition – know of brand, but brand has little influence on purchases 4. preference – purchase preferred brand if readily available, but may purchase another brand it’s not readily available 5. insistence – reject other brands even if preferred brand is not readily available The five stages of brand recognition are

15. Sports and Entertainment Marketing © Thomson/South-Western Genericide Trademarked Brands that everyone uses as generics Trademarked Brands that everyone uses as generics Chapter 7 Slide 15

16. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 16 What are the components of the product mix?

17. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 17 Lesson 7.2 Recruiting Athletes and Entertainers Goals Define the bottom line for sports. Explain the high cost of sports and entertainment events.

18. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 18 THE COST OF SUCCESS Success requires skilled coaches top-notch players popular entertainers

19. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 19 Attracting and Keeping Coaches The best coaches can command annual salaries in excess of $1 million. fringe benefits incentives received in addition to base salary

20. Sports and Entertainment Marketing © Thomson/South-Western Top Paid College Coaches Chapter 7 Slide 20 NCAA Football SchoolConferenceCoachSalary AlabamaSECNick Saban$5,545,852 TexasBig 12Mack Brown$5,392,500 ArkansasSECBret Bielema$5,158,863 TennesseeSECButch Jones$4,860,000 OklahomaBig 12Bob Stoops$4,741,667 NCAA Basketball SchoolConferenceCoachSalary DukeACCMike Kryzewewski$7,233,976 LouisvilleBig EastRick Pitino$4,078,327 KansasBig 12Bill Self$4,750,763 Michigan StateBig 10Tom Izzo$3,220,769 FloridaSECBilly Donovan$3,689,200

21. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 21 Attracting and Keeping Star Athletes Competition for top athletes is fierce. Recruiters compete with professional teams as well as with other colleges. Recruiters need a well refined sales and marketing effort to attract talent to their schools.

22. Sports and Entertainment Marketing © Thomson/South-Western northwestern-wildcats-union- representatives-head-congress northwestern-wildcats-union- representatives-head-congress Chapter 7 Slide 22

23. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 23 The Price for Top Musicians and Other Entertainers Popular performers can attract large enough crowds to make an event profitable. Popular celebrities help increase the advertising revenue of their television shows.

24. Sports and Entertainment Marketing © Thomson/South-Western TV Actors Salaries 2013 Chapter 7 Slide 24 ActorShowSalarySalary/Episode# of 2013 episodes Ashton Kutcher2.5 Men$16.8 mill$700,00024 Jon Cryer2.5 Men$14.4 mill$600,00024 Mark HarmonNCIS$12 mill$500,00024 Mariska Hargitay Law & Order: SVU $11.5 mill$500,00023 Sandra Oh, Ellen Pompeo & Patrick Dempsey Grey’s Anatomy $8.4 mill$350,00024

25. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 25 Lesson 7.3 Customized Entertainment Goals Define customizing. Describe the financial impact of Baby Boomers on the entertainment industry.

26. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 26 Terms customizing impromptu tiering

27. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 27 CUSTOMIZING PRODUCTS customizing changing a product to fit the needs or wants of a particular market

28. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 28 spontaneous and changing impromptu

29. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 29 Local TV American Style Although local programming is less expensive to produce, it has fallen out of favor with major networks. Local programming does not attract enough viewers to draw advertisers to cover the costs of running and producing the show – primarily only newscasts now

30. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 30 Because hosts of locally produced TV shows had such a large impact on children, parents requested that hosts not endorse products. Advertisers lost interest in sponsoring locally produced children’s shows. Children’s Programming

31. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 31 Excessive salaries of sports figures have helped drive up the costs of television coverage of sporting events. tiering specific sports programs will be offered outside the basic cable or satellite package Sports Programming

32. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 32 Public TV and Radio Public TV and Radio are viewer- and listener-supported. programming is tailored to local audiences Usually nonprofit organizations financed through grants, corporate donations & listener contributions

33. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 33 Why is different TV programming shown in different cities or regions of the United States?

34. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 34 MARKETING TO BABY BOOMERS Baby Boomers, born between 1946 and 1964, are one of the best-known market segments.

35. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 35 Boomers Won’t Retire Baby Boomers have the discretionary income to pay for the products and services they desire. Like: recreational activities, travel, personal fitness, all types of entertainment - from concerts & movies to the fine arts

36. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 36 Segmenting the Group The U.S. population is aging. Average age in 1994 was 34 yrs & in 2035 it will be 39 yrs Marketers will need to focus their efforts on this aging market.

37. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 37 Entertaining the Boomers Baby Boomers are increasing their movie attendance. According to “Reel Source” boomers account for more than 1/3 of all attendance at movies Independent film studios are filling the niche & producing films boomers want to see

38. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 38 Understanding All Parts of the Group Through 2020, Baby Boomers will continue to be a major target of entertainment marketing. As the Boomer group is so large & diverse, marketing messages need to be developed for specific subgroups of Boomers.

39. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 39 Why are Baby Boomers important to entertainment marketers?

40. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 40 Lesson 7.4 Product Marketing Strategies Goals List and describe the stages of the product life cycle. Explain how products are positioned in the marketplace.

41. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 41 Terms product life cycle skimming price strategy penetration price strategy positioning

42. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 42 THE PRODUCT LIFE CYCLE product life cycle 1.introduction 2.growth 3.maturity 4.decline

43. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 43 Introduction Stage introduction stage product is a novelty only one brand of product is available

44. Sports and Entertainment Marketing © Thomson/South-Western Price Strategy for Introduction Phase Skimming Price Strategy introduces new products at a very high price Penetration Price Strategy uses low pricing to help capture a large market share early Chapter 7 Slide 44

45. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 45 Growth Stage Second part of product life cycle target market purchases the product regularly advertising focuses on customer satisfaction competition increases

46. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 46 The Maturity Stage third stage of product life cycle sales are level or slowing down marketing costs increase sales prices often offered to hold off competition

47. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 47 The Decline Stage sales decrease alternatives include drop a product sell/license Discount regionalize modernize/alter recommit

48. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 48 What are the stages of the product life cycle?

49. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 49 POSITIONING A PRODUCT positioning used by a company to differentiate its products or services from its competitors’ products or services status, price, brand recognition, quality, features & benefits

50. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 50 List three ways a product may be positioned in the marketplace.

51. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 51 PERFORMANCE INDICATORS EVALUATED Communicate the goals of the state fair. Prepare an attractive document that incorporates the latest desktop publishing technology. Create an original, appealing newsletter to increase awareness and attendance at the state fair.

52. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 52 Select graphics and fonts that appeal to the intended audience. Produce a final product that indicates a clear thought process and an intended, planned direction with formulation and execution of a firm idea. Understand the comprehensive nature of this project and its purpose.

53. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 53 THINK CRITICALLY 1.Why does the state fair need multiple forms of publicity to increase attendance? 2.What promotional item could be included in your desktop publishing document to help increase the attendance at the state fair?

54. Sports and Entertainment Marketing © Thomson/South-Western Chapter 7 Slide 54 4.What types of graphics would be appropriate for this publication? Why? 3.How can the state fair measure the effectiveness of your publication?