WHAT IS SPORTS & ENTERTAINMENT MARKETING?

QUESTION Do you consider golf a sport? Why or why not?

EXACTLY WHAT IS AND WHAT ISN’T A SPORT? Exercising Cheerleading Chess Lawn Mower Racing Spelling Bee

UNDERSTANDING THE SPORTS INDUSTRY Sport an athletic activity requiring skill or physical prowess and often of a competitive nature Source of diversion or physical activity engaged in for pleasure Sports Entertainment “We’ve recognized for several years that sport is part of entertainment. The market now is really sports, fashion and music. We can’t expect to ignore reality and survive.” Robert Meers, former Reebok president

SPORTS = ENTERTAINMENT

GROWTH OF THE SPORTS INDUSTRY 11 th largest of all U.S. industry groups US’s output for sports goods and services estimated at $213 – 350 billion annually How do we measure growth in the sports industry? Growth measured in: Attendance Figures Media Coverage Employment Figures (4.5 million jobs) Global Markets Sports Goods

UNDERSTANDING THE ENTERTAINMENT INDUSTRY Entertainment Agreeable occupation for the mind; diversion; amusement Whatever people are willing to spend their money and spare time viewing rather than participating in sports or the arts Typically, movies, theater, music concerts, the circus, etc.

GROWTH OF THE ENTERTAINMENT INDUSTRY 10.9 billion tickets sold to movies in 2012 Highest grossing film of all time - Avatar $2.7 billion Frozen is the highest grossing film for 2013 at 1.2 billion, still ranking #5 overall $16 million goes through Broadway a year Fortune 500 Ranking Walt Disney66 News Corp91 Time Warner105 CBS Corporation186 Viacom198 CC Media Holdings407

Marketing is a process of bringing together sellers and buyers the creation and maintenance of satisfying exchange relationships WHAT IS MARKETING?

THE MARKETING MIX Marketing Mix how a company gets their product to the consumers using the following four elements Product Price Place (distribution) Promotion

PRODUCT What a business offers to satisfy needs Products include both Goods and Services Goods Services TangibleIntangible

PRICE How much consumers are willing to pay for product Movies Average ticket price $7.96 Up 3% from last year3D Broadway Shows The Book of Mormon$195 Wicked$103 Mama Mia$ 81 Professional Sports NFL$168 NBA$ 51 MLB$ 27 Disney World Family of 4, 4-days/3-nights$2,000 - $12,000 Super Bowl XLVII Prices ranged from $2,100 - $53,333 for a game ticket on StubHub

PRICE TourAve. Price TourAve. Price One Direction$674Justin Timberlake$221 The Rolling Stones$637Justin Bieber$214 Beyonce$358Taylor Swift$214 Eagles$312John Mayer$208 Pink$299Dave Matthews Band$202 Paul McCartney$273Lil Wayne$193 Fleetwood Mac$270Rush$192 Depeche Mode$263Bon Jovi$191 Bruno Mars$250Matchbox 20$182 Black Sabbath$227 Discretionary Income the amount of money individuals have available to spend after paying for necessities

PLACE The locations and methods used to make products available to customers Top live music venues in Richmond The National The Camel Strange Matter Rare Olde Times Friday Cheers at Brown’s island Hat Factory Sound Check Studios

PROMOTION Ways to make customers aware of products Encourages customers to buy Regrettable promotions Ball Night Dodgers StadiumAugust, 1995 Free baseball giveaway turns ugly when fans throw 200 balls at players after an argument on the pitchers mound Disco Demolition Night Comisky ParkJuly, 1979 Free admission to anyone who brings in old disco records to destroy Expected 5,000 fans; 75,000 show up Rowdy fans begin throwing discs on field Last forfeited game in the American League Man sues Anheuser Busch 1991 Lawsuit filed citing false and misleading advertising that allegedly caused emotional distress, mental injury and financial loss Upset because companies portrayal of "scenic tropical settings [and] beautiful women and men engaged in endless and unrestricted merriment" — turned out to be "untrue."

A MARKETING MIX EXAMPLE IN THE SPORTS INDUSTRY The product the Super Bowl offers is a game between the best teams of the AFC and NFC. Consumer costs extend beyond ticket prices and include travel and lodging expenses. Distribution includes the location of the host city and ticket sales. Promotion involves media outlets and related- product contests.

A MARKETING MIX EXAMPLE IN THE ENTERTAINMENT INDUSTRY State fairs need to appeal to rural and urban residents set reasonable ticket prices advertise about the fair determine fair location plan ticket sales

Involves the use of sports and entertainment to develop, promote and distribute goods and/or services to satisfy the wants and needs of customers. Impact of Sports and Entertainment Marketing Generates an average of $400 billion in annual revenue. 64% of Americans watch NFL football The NFL has $20.4 billion in television deals with CBS, FOX, ABC, and ESPN 21,876 was the average NBA attendance in 2013 (Chicago)NBA Over 65 million people attended MLB games in 2013MLB SPORTS AND ENTERTAINMENT MARKETING

DISNEY WORLD Disney World Fun Facts 2013 Attendance Figures ~ 70 million visitors Magic Kingdom, million visits (No. 1 worldwide) Epcot, million visits (No. 5) Disney's Animal Kingdom, million visits (No. 7) Disney's Hollywood Studios, million visits (No. 8) 75 million Cokes consumed each year If you were to wash and dry one load of laundry every day for 52 years, you’d clean as much as the folks at Walt Disney World Laundry do in a single day Walt Disney World Resort is the largest single-site employer in the United States (62,000 employees)

EVOLUTION OF ENTERTAINMENT AND ENTERTAINMENT MARKETING At the beginning of the twentieth century, audiences needed to travel to the entertainment source. Audience feedback was instantaneous and live. Technology distanced entertainers from their audiences.

THE BEGINNING OF CHANGE 1888First moving picture 1927First movie with sound 1928Steamboat Willie 1938Snow White 1955Disneyland opens Disneyland represented a new approach to the marketing mix of entertainment – the Theme Park

THE BIG EYE IN EVERY ROOM The Early Days of Television and Marketing stations, less than 7,000 TV sets in U.S st broadcast sporting event (boxing match) stations % of all TVs watched Elvis on The Ed Sullivan Show % watched the Beatles million people worldwide watched moon landing Ratings the number of viewers the programming attracted

CHANGE ACCELERATED Technology improvements, including the internet, have facilitated distribution of sports and entertainment to the masses Olympics 4 billion television viewers worldwide 18 million global unique users on BBC website 29 million video requests from website

TECHNOLOGY AND CUSTOMER FEEDBACK Audiences can use a variety of communication technologies to provide entertainment feedback. American Idol 132 million votes

FUTURE OF SPORTS AND ENTERTAINMENT MARKETING? ??????