Sports & Entertainment Marketing Differences in Marketing

Different Payers, Different Games The differences between sports and entertainment can be found in three areas: Consumer loyalty Product Revenue Stream

Differences in Consumer Loyalty Sports fans enjoy the drama of real competition and the unpredictability of each game. Consumer loyalty occurs when consumers are happy with a company’s product and become repeat customers. For example, consumer loyalty may mean always watching one team play on television because you like that team the best.

Differences in Consumer Loyalty continued In contrast, the entertainment consumer is not motivated by brand or team loyalty, but by a desire for satisfying entertainment. The entertainment industry is subject to trends that dictate “what’s hot and what’s not.” For example, If a company’s movie, book, sitcom, amusement ride, video game, magazine, CD, DVD, or video does not deliver the expected level of entertainment, the consumer will quickly turn to the competition.

Differences in Consumer Loyalty continued Because of this difference in consumer loyalty, marketers must identify the different marketing goals for sports consumers and for entertainment consumers: Job of the Entertainment Marketer: Find a Winning Formula. Try to KNOW what consumers want. CREATE that product. Job of the Sports Marketer: Find a Winning Team. KNOW what consumers want. Try to DELIVER that product.

Differences in Product Another big difference between sports product and entertainment product is the consistency, or stability, of the sports product and the variability, or changeability, of the entertainment product. In marketing a traditional product, marketers have plenty of time to conduct research, run tests, and plan launches and promotions. To some extent, sports as a product has the same luxury because its core product remains the same – a sports team, event, or facility. Another big difference between sports product and entertainment product is the consistency, or stability, of the sports product and the variability, or changeability, of the entertainment product. In marketing a traditional product, marketers have plenty of time to conduct research, run tests, and plan launches and promotions.

Differences in Product continued For entertainment products, however, marketers have to predict a trend or fad, and then change the product to satisfy audience demand. For example, a movie release may be postponed or cancelled because the movie’s subject matter is too sensitive due to current events. In the case of the 2003 movie Phone Booth, the plot revolved around a man pinned in a phone booth by a gunman. Its premiere coincided with real-life shootings in the Washington, D.C., metro area. Therefore, the studio 20th Century Fox postponed the movie’s release. Sports events are usually not subject to the same variables. For entertainment products, however, marketers have to predict a trend or fad, and then change the product to satisfy audience demand. For example, a movie release may be postponed or cancelled because the movie’s subject matter is too sensitive due to current events. In the case of the 2003 move Phone Booth, the plot revolved around a man pinned in a phone booth by a gunman. Its premiere coincided with real-life shootings in the Washington, D.C., metro area. Therefore, the studio 20th Century Fox postponed the movie’s release. Sports events are usually not subject to the same variables.

Differences in Revenue Stream Entertainment products can be developed into merchandise, used for promotion, and create profit through sales of ancillary products, licensing, and royalties. Because there are so many different types of entertainment products, the streams of revenue created by marketing products are very diverse. Both sports and entertainment have their own streams of revenue. Entertainment products can be developed into merchandise, used for promotion, and create profit through sales of ancillary products, licensing, and royalties. Because there are so many different types of entertainment products, the streams of revenue created by marketing products are very diverse. A single film can generate many ancillary products. The film can be sold to cable TV and pay-per-view TV, and also rented as videos and DVDs. The film can also be the basis for a game, TV series, book, or clothing line. The products that make us of the original creative idea or characters make a profit for the owner through sales, royalties, and licensing fees.

Differences in Revenue Stream continued A single film can generate many ancillary products. The film can be sold to cable TV and pay-per-view TV, and also rented as videos and DVDs. The film can also be the basis for a game, TV series, book, or clothing line. The products that make use of the original creative idea or characters make a profit for the owner through sales, royalties, and licensing fees.

Differences in Revenue Stream continued With the exception of a championship game, one sporting event does not usually produce the same amount of revenue from merchandising and royalties as might an entertainment event. For example, a single, regular-season National Football League (NFL) game probably does not have more economic impact than a Rolling Stones concert. However, sporting events do have their own streams of revenue from ticket sales, media advertising, video games, and so on.