Sports and Entertainment Marketing Chapter 1 What is Sports and Entertainment Marketing?

Chapter 1.1 Marketing Basics

What is Marketing? Planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives Put Simply Create a Product Market the product for as long as it exists Meet the needs of your customers A mutually beneficial exchange relationship exists Customers give money, businesses give a produt

The Marketing Mix Defines how a business will go about a marketing plan Blends the 4 P’s of Marketing Product Distribution (Place) Price Promotion

Product What a business offers customers to satisfy needs Can be a product such as basketball shoes Can be a service like video rentals Market First vs. Product First Can you think of an example of each? DVD Burners…Market First Singing Wide Mouth Bass …product first Which is a more sound business practice?

Distribution (Place) Locations and methods used to make products available to customers. What are a few of these methods? Direct…Dell, Gateway, Internet…Amazon.com Indirect…Department Stores, Grocery Stores Catalogue…Eastbay What are some advantages of each of these?

Price The amount customers pay in exchange for your product or service What happens if… Price too low? Price too high? What are a few things that keep price levels fair? Anti-trust laws Competition Technology..more efficient production methods

Promotion Ways to encourage customers to purchase products and increase customer satisfaction Can include Advertising Publicity Personal Selling Public Relations

Key Marketing Functions Page 6 in Text Product/Service Management Distribution Selling Marketing-Information Management Financing Pricing Promotion

Chapter 1.2 What is Sports Marketing

What is Sports Marketing? Opening Act (pg. 9) discussion Spectators of sporting events are potential consumers of a wide array of products; examples???? Definition -- finding out customer interests and planning a good or service that they will buy, using sports to market the product

What is a target market? Specific Group of people you want to reach How do you find a target market -- demographic research Age, education level, attitudes/beliefs, income(disposable) People buy because of past experience, referral by family/friends, id with an attitude; what else???? The Target Market

Spending Habits of Fans Research these habits to maximize profits on items purchased at sporting events Price willing to pay for a ticket depends on interests, national importance of event, popularity of athletes, rivalry, etc. What affects price your willing to pay for team merchandise?

Marketing Strategies In order to be competitive today, companies need to stay ahead Use creative promotion to attract attention Other strategies Logos on clothing Creating New Sports X Games Gross Impression Timing

Gross impression -- number of times per advertisement, game, or show that a product is associated with an athlete, team, or entertainer (subtle) logos on uniforms brands used on tv, movies, etc. Motorola Headsets during NFL games Timing fans want to id with a winner streaks continued winning records trends must be monitored marketing needs to be unique Marketing Strategies

Chapter 1.3 Entertainment Marketing

Entertainment For Sale We all have a limited amount of free time and disposable income Entertainment Marketing is aimed at getting us to spend both of the above in specific places

What is Entertainment? Whatever people are willing to spend their time and money viewing instead of participating in Movies, the Arts, Sporting Events, TV, etc.. Our personalities will control what we feel is entertaining

Modern Entertainment Marketing Early 1900’s- Theater, Concerts, Ballet were the major forms of entertainment The only forms of marketing were posters, newspapers, magazines, and word of mouth First movie with sound in the US…The Jazz Singer Mickey Mouse is animated…10 years later, Snow White is first full length animated movie DisneyLand opens in California

Change Accelerated Technology has contributed to the explosion of Entertaiment Marketing Radio, TV, Internet, Billboards, Busses, Taxis, Corporate Sports Stadiums (United Center) The Big Eye in Every Room Television provided access to the homes of consumers In 1945, only 9 stations and 7,000 working TV sets in the US American Association of Advertising formed NBC and Gillette stage first major sports event Heavyweight Boxing….considered a Major success because 150,000 people watched!!

TV’s Influence on Marketing TV added Real Life..sound and movement to marketing… The Rate for TV ads became tied to the number of viewers a program attracted By 1996, 223 Million TV sets in the US Advertisers spent $42.5 Billion on television ads in 1996

Chapter 1.4 Recreation Marketing

Recreational Sports Aimed at steering consumers away from home based entertainment Golf, Tennis, Hiking, Bowling, etc.. Travel and Tourism also considered recreational activities Recreation is defined as: Renewing or Rejuvenating your mind and body with play or amusing activity Recreational Activities: those involved with travel, tourism, and amateur sports not associated with an educational institution

Not for the Couch Potato Many Rec. Sports require an investment of both time and money Need to purchase equipment, join leagues, practice, etc… What recreational activities are popular among Teens 30’s 60’s

A Better Image Want to Go Bowling??? Most Popular Rec sport in US 55 mil people bowled during 1997 Most will watch bowing on TV  Huge market for advertisers The sport lacks excitement and youth Tiger Woods credited with “saving” golf

Travel and Tourism The worlds largest industry Employs 130 Mil people worldwide Defined as traveling for pleasure, either independently or Tour-based Vacations, honeymoons, family reunions (most given reason for traveling), etc. Data Mining Gathering information about customers When, where, and how people travel Can gear promotions and advertising around the data

Niche Travel Traveling or touring for a specific reason Visiting all the Museums in Europe Touring National Parks in the US Visiting all Baseball stadiums in the summer Spring Break Packages for students Packages/Tours are put together to meet the needs of its clients