Unit 1: Reviewing Marketing Basics Intro to Sports and Entertainment

What is Sports and Entertainment Marketing? It is the marketing of sports and entertainment products AND using sports/entertainment to market other products. We can market sports and entertainment We can market THROUGH sports and entertainment

The Marketing Mix 4 P’s Product, Price, Place, Promotion Product: what is sold to consumers—good/service Price: monetary amount Place: distribution of products Promotion: communicating with consumers In sports/entertainment the marketing mix must be looked at carefully Considered to be “leisure” activities Consumers are using “extra” income and must be reached carefully Many options for consumers

The Marketing Concept Ways to view marketing: Mass marketing: sending out one message with little regard to individuals Sales oriented: selling products without regard for what people want Effective in certain situations Marketing Concept: Focus on customer satisfaction. Direct their resources toward offering the goods and services that people want. Requires market research and understanding of competition!

Why use the Marketing Concept Sports and Entertainment industry focuses on people’s free time and extra income Lots of choices! Limited time and money Makes the Marketing Concept necessary! Must focus on satisfaction and wants of consumers!

The Seven Functions in SEM All seven functions of marketing are important when marketing sports and entertainment Distribution Marketing Information Management Pricing Product Service Management Promotions Selling Financing

Functions Activity Each table will be assigned a function Using your textbook, phone or computer complete the following for the function you have selected Define the function How is this function used in Sports and Entertainment? Illustrate the function May use an image associated with function May be hand drawn or printed

Adapting the Marketing Mix

The Marketing Mix Product, Price, Place, Promotion—Looks a little different in SEM Products in Sports and Entertainment DURABLE GOODS--Three years or longer NONDURABLE GOODS---Cannot be re-used SERVICES—Intangible IDEAS--Can be sold and turned into a business Tourism—Visit California https://www.youtube.com/watch?v=ZAwqumoO0Ds PEOPLE—professional/amateur athletes/celebrities

The Marketing Mix Price in Sports and Entertainment The most SENSITIVE ELEMENT for sports and entertainment because of discretionary income What will the market accept? How much is too much?

The Marketing Mix Place (Distribution) in Sports and Entertainment Locations and methods used to make products available Host cities of sporting events Venues Movie distributors, theater companies Ticket sales online

The Marketing Mix Promotions in Sports and Entertainment Communicating with consumers Informing and persuading become crucial! Persuading through…… Endorsements Celebrities

Target Marketing in SEM

Sports Marketers use sports to market other products People Organizations Goods/Services Match the product to the viewers Utilizing gross impression The number of times per advertisement, game or show that a product is associated with an athlete or team. Goal is to maximize exposure and create an association Nike—Oregon Gatorade—NFL

Entertainment Entertainment is all about products that people are willing to spend their time/money on during leisure time Entertainment Marketing: all about influencing how consumers spend time/money on entertainment What counts as entertainment? It’s a blurred line and depends of the consumers TV. Films, theatre, news, books, social media, internet

Keeping Up! Ratings Changes in industry Market where the ratings are Ratings=viewership Direct impact on cost Changes in industry Internet Netflix, Hulu, On Demand, DVR—What challenges does this present?

Customer Profiles

Finding your Market Market: all of those capable and willing to purchase Target Market: Those MOST LIKELY TO BUY To identify we often times need to segment our market

Views on Marketing Mass Marketing—one basic message sent to audience Marketing Concept=Market Segmentation—focusing on the marketing concept This is a common view in Sports/Entertainment

Segmentation Grouping the market based on common characteristics to identify target markets Rule of 80/20! Segmentation variables Demographics: surface level characteristics Psychographics: lifestyle, personality Geographics: location of consumers Behaviors: spending and consumption

Looking Deeper Demographics Income Age groups Discretionary Income: the money people have left over after paying expenses Living expenses, taxes This is the money they spend on entertainment Age groups Millennials Baby Boomers Tweens Generation X Generation Y

Building Customer Profiles Creating an in-depth description of your targeted customer by examining segmentation Should reveal ways to reach these consumers

Project Example Package A: The Average Joe Demographics: Male, 30-50, Lower Middle Class, Average discretionary income of $8.000 with income of around $40,000, White Psychographics: Sports fan Behaviors: Spends 6-10 hours a week watching football, spends 10% of discretionary income on football related activities Geographic: regional are of football team (EX. Dallas Cowboys—Southeast)

Project Details Each package should be for 4 people! 3 packages each targeted at 3 different segments (customer profile)