EVENT DISTRIBUTION Sports Entertainment and Recreation Marketing

Review – The 5 P’s 2 involve the goods, services, or ideas used to satisfy consumer needs. Product involve the exchange process between the customer and the seller. Price involve making the product available to the customer. Place involve how the goods or services are communicated to the consumer. Promotion involves the target market that the manufacturer is trying to reach involves the target market that the manufacturer is trying to reach People

Place Decisions  Involves getting the product into the hands of your customer  First step is determining the type of customer you have TARGET MARKET (or the TARGET MARKET) 3

Channels of Distribution  The path a product takes from the producer to the consumer  Companies will use either direct or indirect channels of distribution Manufacturers WholesalersRetailersConsumers Agents 4 What is the difference?

Examples of Channel Distribution 5 NIKE products can be purchased - (or distributed) 1. Website Direct or Indirect? 2. Retail Store Direct or Indirect? 3. Factory Outlet Direct or Indirect? NIKE products can be purchased - (or distributed) 1. Website Direct or Indirect? 2. Retail Store Direct or Indirect? 3. Factory Outlet Direct or Indirect?

Examples of Channel Distribution 6 Movie and event tickets can be purchased - (or distributed) 1. Box Office 2. Online 3. Ticket Brokers Movie and event tickets can be purchased - (or distributed) 1. Box Office 2. Online 3. Ticket Brokers

Place Distribution  Sports are produced and consumed at the same time  The Stadium, Arena, or Venue serves as both the location and the method of distribution for the event  The media also provides for distribution of sports events  News, TV, PPV, Radio, Internet… 7

Fan Involvement in Events 8 There are many ways that fans shape and effect games and events:  “Home Court Advantage”  Noise meters  Attendance records  Ticket Prices & “Scalping”  Media Input & Purchasing DirecTV, Satellite Pay-Per-View

New Stadium  New venues incorporate luxury boxes Increase revenue for team  Incorporate new technology with “old style” atmosphere” Example New Yankee Stadium 9

Venue Videos 10  10 New Super Stadiums 10 New Super Stadiums  Yankee Stadium Yankee Stadium  Cowboys Stadium Cowboys Stadium

Stadiums Funding TAX DOLLARS  80% of funding is TAX DOLLARS  Luxury Boxes  Add $10-$40 Million annually  Increases in salary and payroll  Signing top players 11

Ticket Distribution 12 Team & Venue Sales  Sale Price: face value of tickets  Luxury seats are more expensive Ticket Brokers  Sales Price + Service Charge Game Marketing Advertising Tech Support Customer Service Sales Force Customer Complaint: Service Fees Too High

Goal of Stadium  Create value in time spent at park (better than watching from home)  Attract more spectators  Make “Experience” Bigger & Better  In stadium technology  Seat side concession ordering, instant replay, player statistics... 13

Yankee Stadium Food Choice 14

Media Distribution  Delivering sports and entertainment events with media  Television  Internet  Radio  Satellite 15

16 How does American Idol help with the distribution of new artists’ music?

Rights to Distribution 17  Networks Buy “Rights” to Broadcast  Advertisers buy advertising time during broadcast  Sponsors pay for exposure from Broadcast  NBC – Olympic Games FOX– Super Bowl  Media Revenue goes to Team or League

Benefits of Media Rights 18 Guaranteed Mass Audiences  Specifically Young Male Target Market Networks can use sports and entertainment events to create & maintain their IMAGE

Cable and Satellite 19 Cable & Satellite Services  DirecTV, PrimeStar, Dish Network, Digital Cable Offer Specialty Broadcasting  Provide specialty target markets for advertising  Provide statistical data (Pay-per-View)