CHAPTER 11 Marketing Plans SPORTS AND ENTERTAINMENT MARKETING 4/23/2017 CHAPTER 11 Marketing Plans 11.1 Advertising 11.2 Marketing Research 11.3 Develop a Marketing Plan 11.4 The Bottom Line CHAPTER 11 CHAPTER 11

GOALS Explain the steps in the advertising process. LESSON 11.1 Advertising GOALS Explain the steps in the advertising process. Understand the importance of measuring advertising effectiveness. CHAPTER 11

Advertising Advertising—paid, non-personal communication between an identified sponsor and a potential customer about a product or service CHAPTER 11

Step By Step Set measurable advertising goal Develop the advertising budget Create an advertising theme Choose the advertising media Create the advertisement Develop an advertising schedule Measure the effectiveness of the advertisement CHAPTER 11

The Goal Determine a specific measurable goal Ad effectiveness Brand recognition—the number of people who recognize the brand name of a product CHAPTER 11

The Budget Marginal analysis Percent of sales Bartering Fixed sum per unit Payout planning Competitive parity CHAPTER 11

The Theme Tag line—theme of an ad Conveys the main message of the ad CHAPTER 11

The Media Print Broadcast/cable The Internet Media strategy—choosing the media that will bring the most effective advertising message to the targeted consumer Reach—information about which targeted demographic segments are most likely to be reached CHAPTER 11

The Advertisement Copy Art Wear out—when an ad loses its effectiveness due to overexposure or poor message quality CHAPTER 11

The Schedule Cost-effective media Concentration strategy of scheduling Dominance strategy CHAPTER 11

The Effectiveness Response rate Ad effectiveness helps to shape and improve a business’s future media strategy CHAPTER 11

Pulling It All Together Dominance strategy Running the show Shows “pitched” to advertisers Primetime advertising Expected audience ratings CHAPTER 11

LESSON 11.2 Marketing Research GOALS Define the purposes of marketing research. Understand the human element in marketing research. CHAPTER 11

Researching the Market New marketing medium 1940—television Early 21st century—Internet Mass market—broad categories of people CHAPTER 11

Marketing Information Marketing research—the process of determining what customers want Define the problem Analyze current conditions Develop the process Collect, organize, and analyze the data Determine a solution to the problem Evaluate the results from the changes CHAPTER 11

Data Mining Data mining—digging up data needed to make decisions Nielsen Media Research Sample—an estimate of how many people watch a TV show CHAPTER 11

School’s Out School holiday and weekends U.S. youth ages 8–21 52 million Annual income of $211 billion Harris Interactive YouthPulse E-commerce CHAPTER 11

Who Is Asking? Specialized marketing research Custom research Syndicated research What’s in it for me? CHAPTER 11

Worldwide Data Global market continues to grow Culture of potential new customers Marketing information must be used to shape its product for new customers CHAPTER 11

Careers in Marketing Research Collect data Track sales Monitor advertising spending CHAPTER 11

LESSON 11.3 Develop a Marketing Plan GOALS Explain the purpose of a marketing plan. Describe the components of a strategic marketing plan. CHAPTER 11

Know Where You Are Headed Marketing plan—a written component of the strategic plan that addresses how the company will carry out the key marketing functions Mission statement—the identification of the nature of the business or the reasons the business exists CHAPTER 11

A Sense of Direction Analyze data Decide what your customers want Delivery Customers’ future needs Specific needs of the firm and the products CHAPTER 11

Focusing on the Customer Blockbuster Overhauled business model and marketing strategy plan More of what the customer wants CHAPTER 11

What’s The Plan? Perishable product Pre-sale CHAPTER 11

Components of a Strategic Marketing Plan Mission Goals Product planning Marketing-information management Distribution system Pricing Promotional strategies Financing Purchasing Risk management Selling People Internal communication systems Timelines for implementing the plan Intervals of review and evaluation The future CHAPTER 11

LESSON 11.4 The Bottom Line GOALS Discuss the profit motive behind sports and entertainment marketing. Describe the types of financing related to sports and entertainment marketing. CHAPTER 11

Let’s Make Money! Profit—the amount of money remaining after all costs, including salaries, advertising, utilities, and other expenditures, have been paid Who gets the money? CHAPTER 11

And More Money! Challenges of physical limits New homes for sports teams Did we make money? CHAPTER 11

Challenges of Physical Limits Limited number of seats Sources of revenue with potential growth Personal seat licenses Concessions Commercial licenses CHAPTER 11

New Homes for Sports Teams Professional sports stadiums costly Public subsidy Higher ticket prices CHAPTER 11

Did We Make Money? Forecast—predicts the cost of expenses and expected revenues from an event Budget—provides estimates of expected expenditures and revenues Balance sheet—shows the company’s current assets, including cash, property, and equipment, and it current liabilities, including debts owed and loans Income statement—a record of all revenue received and all expenses incurred CHAPTER 11