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? Sports A 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 INDUSTRY The 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” Copyright © 2013 by Sports Career Consulting, LLC

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 What is SEM? Marketing through Sports & Entertainment Companies 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

What is SEM? Marketing through Sports & Entertainment Copyright © 2013 by Sports Career Consulting, LLC 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 Copyright © 2013 by Sports Career Consulting, LLC What is SEM?

Marketing through Sports & Entertainment Copyright © 2013 by Sports Career Consulting, LLC Audi vehicles being prominently featured in the blockbuster film, Iron Man 3 Judges on the hit show American Idol drinking Coke products during episodes

What is SEM? Marketing of Sports & Entertainment Copyright © 2013 by Sports Career Consulting, LLC 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

What is SEM? Marketing of Sports & Entertainment Copyright © 2013 by Sports Career Consulting, LLC Marketing of Sports & Entertainment involves the promotion and sales of the sports and entertainment products themselves Disney 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

What is SEM? Marketing of Sports & Entertainment Copyright © 2013 by Sports Career Consulting, LLC Marketing of Sports & Entertainment involves the promotion and sales of the sports and 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 Copyright © 2013 by Sports Career Consulting, LLC

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 Copyright © 2013 by Sports Career Consulting, LLC 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?  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 Copyright © 2013 by Sports Career Consulting, LLC

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 Examples of Sports Marketing Copyright © 2013 by Sports Career Consulting, LLC

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 Examples of Sports Marketing Copyright © 2013 by Sports Career Consulting, LLC

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 Examples of Sports Marketing Copyright © 2013 by Sports Career Consulting, LLC

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 Copyright © 2013 by Sports Career Consulting, LLC 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 Copyright © 2013 by Sports Career Consulting, LLC

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” Examples of Entertainment Copyright © 2013 by Sports Career Consulting, LLC

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 2013Antarctica: Empire of the Penguin Examples of Entertainment Copyright © 2013 by Sports Career Consulting, LLC

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 2) Compare and contrast sports marketing and entertainment marketing 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 show 2.Listening to music 3. Watching a movie 4. Watching a football game 5. Playing a game of soccer Copyright © 2013 by Sports Career Consulting, LLC

What is SEM? Copyright © 2013 by Sports Career Consulting, LLC 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 GUBER Chairman and founder of Mandalay Entertainment, Co-owner of NBA’s Golden State Warriors Former CEO Sony Pictures and Columbia Pictures

What is SEM? Differentiating Between Sports & Entertainment Sports are “unscripted” Copyright © 2013 by Sports Career Consulting, LLC Unscripted: Consumers of sports do not know the outcome of the event in which they are participating

What is SEM? Differentiating Between Sports & Entertainment Sports entertainment relies heavily on emotion Copyright © 2013 by Sports Career Consulting, LLC Consumers of sports products have an emotional investment or interest in the outcome of the event (winning vs. losing, close games vs. “blow outs”)

What is SEM? Differentiating Between Sports & Entertainment Sports expose differences in customer loyalty Customer Loyalty: A customer decision to become a repeat consumer of a particular product or brand Copyright © 2013 by Sports Career Consulting, LLC

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 Shows Major League Baseball / HBO’s ‘Game of Thrones’ ESPN’s ESPY Awards Gorillaz new album / Converse Pacers / Indy 500 promo Copyright © 2013 by Sports Career Consulting, LLC

What is SEM? Integrating Sports with Entertainment Copyright © 2013 by Sports Career Consulting, LLC Major League Baseball (MLB) partnering with HBO to cross promote Opening Day with season premiere of hit series, “Game of Thrones”MLB 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 Super Bowl

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 Copyright © 2013 by Sports Career Consulting, LLC 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? Integrating Sports with Entertainment Copyright © 2013 by Sports Career Consulting, LLC 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? Integrating Sports with Entertainment 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) Copyright © 2013 by Sports Career Consulting, LLC

What is SEM? Integrating Sports with Entertainment 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. Copyright © 2013 by Sports Career Consulting, LLC +=

What is SEM? LESSON 2.3 REVIEW 1) Compare and contrast sports marketing and entertainment marketing

What is SEM? LESSON 2.3 REVIEW (ANSWERS) 1) Compare and contrast sports marketing and entertainment marketing 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 Copyright © 2013 by Sports Career Consulting, LLC

LESSON 2.4 What is SEM? Pricing: Assigning a value to products and services Copyright © 2013 by Sports Career Consulting, LLC 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 Primary Functions of Marketing

LESSON 2.4 What is SEM? Pricing: Assigning a value to products and services Copyright © 2013 by Sports Career Consulting, LLC 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. Primary Functions of Marketing

LESSON 2.4 What is SEM? Primary Functions of Marketing 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… Copyright © 2013 by Sports Career Consulting, LLC

LESSON 2.4 What is SEM? Primary Functions of Marketing Distribution: 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 Copyright © 2013 by Sports Career Consulting, LLC

LESSON 2.4 What is SEM? Primary Functions of Marketing On Demand and streaming services have become prevalent options for consumers in today’s marketplace Copyright © 2013 by Sports Career Consulting, LLC 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? Primary Functions of Marketing 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. Copyright © 2013 by Sports Career Consulting, LLC

LESSON 2.4 What is SEM? Primary Functions of Marketing 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 Copyright © 2013 by Sports Career Consulting, LLC

LESSON 2.4 What is SEM? Primary Functions of Marketing Copyright © 2013 by Sports Career Consulting, LLC 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? Primary Functions of Marketing Copyright © 2013 by Sports Career Consulting, LLC 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 Marketing Promotion: 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 Copyright © 2013 by Sports Career Consulting, LLC

LESSON 2.4 What is SEM? Primary Functions of Marketing Financing 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 Copyright © 2013 by Sports Career Consulting, LLC

LESSON 2.4 What is SEM? Primary Functions of Marketing 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 Copyright © 2013 by Sports Career Consulting, LLC

LESSON 2.4 What is SEM? Primary Functions of Marketing Budgets 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. Copyright © 2013 by Sports Career Consulting, LLC

LESSON 2.4 What is SEM? Primary Functions of Marketing In 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 Copyright © 2013 by Sports Career Consulting, LLC

LESSON 2.4 What is SEM? Primary Functions of Marketing Like 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.” Copyright © 2013 by Sports Career Consulting, LLC

LESSON 2.4 What is SEM? Primary Functions of Marketing 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 Copyright © 2013 by Sports Career Consulting, LLC 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 Copyright © 2013 by Sports Career Consulting, LLC

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. Copyright © 2013 by Sports Career Consulting, LLC

LESSON 2.4 What is SEM? Primary Functions of Marketing Marketing Information-Management: Gathering and using information about customers to improve business decision making Copyright © 2013 by Sports Career Consulting, LLC 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 Marketing As 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. Copyright © 2013 by Sports Career Consulting, LLC

LESSON 2.4 What is SEM? Primary Functions of Marketing One 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. Copyright © 2013 by Sports Career Consulting, LLC

Primary Functions of Marketing Product/Service Management: Designing, developing, maintaining, improving, and acquiring products or services so they meet customer needs Copyright © 2013 by Sports Career Consulting, LLC LESSON 2.4 What is SEM?

LESSON 2.4 What is SEM? Primary Functions of Marketing 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) Copyright © 2013 by Sports Career Consulting, LLC

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 Copyright © 2013 by Sports Career Consulting, LLC Primary Functions of Marketing

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

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

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

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