Sports & Entertainment Marketing How to market fun and excitement!

Forms of Sports Marketing Sports Marketing: marketing sports products and using sports to market non-sport related products –Sport product example Sport product exampleSport product example –Non-sport product example Non-sport product exampleNon-sport product example –Non-sport example 2 Non-sport example 2Non-sport example 2 Entertainment Marketing: marketing events, such as sports, theater, music, etc. that people spend money and time viewing. Can be live or broadcast. –Belmont Stakes example Belmont Stakes exampleBelmont Stakes example –WWE example WWE exampleWWE example –Slamball example Slamball exampleSlamball example Recreation Marketing: marketing activities that rejuvenate, renew, or amuse people, including travel, tourism, and recreational sports. –Example 1 Vail Example 1Example 1 –Example 2 PS3 Example 2Example 2 –Example 3 PS3 Example 3Example 3

Sports Marketing Industry $213 billion industry –Twice the size of the automotive industry; 7x the size of the film industry What comprises the industry? –Sports advertising $27.4 billion –Sporting goods $25.6 billion –Licensed goods $10.5 billion –Endorsements $895 million to top 75 sports figures –Professional services to sports teams $15 billion –Spectator spending $26 billion per year –Sponsorships $6 billion per year –Sports medicine $12.6 billion –Sports travel $16 billion –Team operating expenses $23 billion

How to Market Sports Products Identify target market for product –Golf clubs vs. snowboards –Fishing equipment vs. ice skates –Football equipment vs. mountain bikes Emphasize quality & product features –Under Armour video Under Armour videoUnder Armour video Focus on the excitement created by the product Show the benefits of using the product –P90X video P90X videoP90X video

Why Use Sports to Market Non- Sports Products & Services? Mass appeal of sports Sports have a very positive image –Healthy –Exciting –Contemporary Coors Light Example Coors Light Example Aussie Shampoo Example Aussie Shampoo Example Campbell’s Soup Example Campbell’s Soup Example Sports figures are easily recognized and admired Many non-sports products are used or consumed while watching sports What types of non-sport products use sports for marketing?

Endorsements A written or spoken statement by a famous person, such as an athlete or movie star, promoting a particular product, service, or company. Benefits of celebrity endorsements: –Improved brand awareness and recall –Celebrity values define, and refresh the brand image. –Instant credibility for the product, service or business Endorsement examples: –Peyton Manning #1 and #2 #1 #2#1 #2 –Lebron James Lebron JamesLebron James –Lance Armstrong Lance ArmstrongLance Armstrong –Michael Phelps, Kobe, A. Rodriguez Michael Phelps, Kobe, A. RodriguezMichael Phelps, Kobe, A. Rodriguez –Danica Patrick Danica PatrickDanica Patrick –Shaun White Shaun WhiteShaun White –Maria Sharapova Maria SharapovaMaria Sharapova –Phil Mickelson Phil MickelsonPhil Mickelson

Sports Event Marketing Objective of Sports Team Organizations: –Sell out every game, every night –Promote the organization –Provide quality entertainment in a constantly changing market –Ensure that every fan who attends a game has an enjoyable and memorable experience How is this accomplished? –Concessions –Games/contests during breaks in competition –Mascots –Half-time performers –Souvenirs

Professional Sports Team Revenues How does each team earn its $$$? –38% from Ticket Sales Individual tickets Season tickets Group sales and special events (DECA Night at the Nuggets Box seats Game packages –35% from League Revenue National television contracts Licensed merchandise sales –25% from Corporate Sales Local Radio & Television contracts Corporate sponsor packages Signage –2% from Sports camps, tournaments, etc.

Recreation Marketing Difference between sports & recreation marketing? How is recreation marketed? –Emphasize ease of participation –Promote the key features and benefits of the activity: Spas – comfort, relaxation, rejuvenation, stress relief Resorts – numerous activities, family bonding, excitement, competition, fun Tourist Destinations – culture, beautiful scenery, exotic food, get away from routine –Kentucky Tourism Kentucky TourismKentucky Tourism –California Tourism California TourismCalifornia Tourism