Importance of Sports and Entertainment Marketing

Do Now How do you think sport differs from entertainment?

The Sports Industry Sport: Sport: source of diversion or physical activity engaged in for pleasure

Entertainment: Entertainment: any activity which provides a diversion or permits people to amuse themselves in their leisure time The Entertainment Industry Examples:Television Live Shows MoviesMusicBooksMagazines

How Are They Different? SportsEntertainment Spontaneous/not planned Unpredictable outcome Involves competition Fans support one team Usually planned with a script or program Consumers are not motivated by brand or team Consumers do not remain loyal to a brand

The Sports and Entertainment Industries Today these industries are two of the most profitable in the US Fans spend BILLIONS on recreation and related products every year

What is Sports Marketing? Using sports to market a product Applying marketing principles and processes to sports products Sports equipment, sports apparel, sports drinks The marketing of non-sports products through association with sports Celebrity endorsement, Sponsorship: Papa Johns - official sponsor of the Redskins NFL and Verizon

What is Entertainment Marketing? Marketing of entertainment products or using entertainment to attract customers BK AD

Growth of the Sports Industry $200 billion The sports industry generates about $200 billion a year Growth is measured in….. 1. Event Attendance Figures 2. Media Coverage (ESPN, Golf Channel, NFL Network) 3. Employment Figures (4.5 million jobs and growing) 4. Global Market Expansion Growth in the Sports Industry

Growth of the Entertainment Industry $10.6 BILLION In 2009 the film industry grossed $10.6 BILLION The largest grossing movies were "Transformers: Revenge of the Fallen" ($402 million)"Avatar" ($352 million) "Harry Potter and the Half-Blood Prince" ($302 million) This was a record year of revenue for the movie industry, up from $9.9 billion in 2008

Trends in Sports and Entertainment 3D movies (Piranha 3D, Toy Story 3, Avatar) Midnight releases (Twilight Saga) The use of social networks (Twitter, Facebook)

Economic Concepts and Their Impact on the Industry

Competition The struggle among companies for scarce customer dollars  Based on the theory that only the strong will survive ◦ Those organizations with the best products at the best price will stay in business

Types of Competition Price Competition: Price Competition: when a business uses the price of their product to compete in the marketplace Non-Price Competition: Non-Price Competition: when a business uses other product features (such as quality, image or service) to compete in the marketplace

Economic Resources All of the things used in the production of a good or service  Land  Land – anything from the earth or sea  Labor  Labor – the people who work to produce the good or service  Capitol  Capitol – the money, buildings, hardware, tools, etc. used in production

Factors that influence demand for a Sports or Entertainment event  Price of the tickets  How often the event takes place  How much promotion is used  People involved in event (key players or performers)

Assignment Situation: Situation: You are to assume the role of director for an amateur tennis tournament. Because of the tournament’s size, two different tennis clubs and several hotels within your town must be used. The town mayor is unsure about presenting this project to the town council Activity: Activity: Convince the town mayor to support hosting your event Evaluation: Evaluation: You will be graded on how effectively you cover the following topics: ◦Explain the economic impact of sports and entertainment events on a community/area ◦Describe factors that influence the demand for services ◦Explain the concept of competition ◦Explain the concept of economic resources ◦Describe trends in sports and entertainment marketing