SECTION 2.2 SIMILARITIES IN MARKETING Chapter 2: Sports & Entertainment : Connections and Contrasts

What You’ll Learn To explain how sports and entertainment markets use tools to sell their products. To explain risks and risk management of sports and entertainment events.  Think of ways marketing has changed over the last 25 years.

Changes in Marketing Promotions – any form of communication used to persuade people to buy products through advertising, publicity, personal selling or sales

Marketing Similarities Product  Endorsement – approval or support of a product or idea, usually by a celebrity lending his or her image or name to a product  Core and Ancillary Products Core product – main product Ancillary product – a product related to or created from the core product Revenue – gross income Price  Price Problems Piracy – unauthorized use of an owner’s or creator’s music, movies, or other copyrighted material Royalty – a payment for material that has been copyrighted, or legally declared as belonging to the creator

Marketing Similarities continue…  Promotion Product tie-in – use of ancillary products such as merchandise as promotional tools Cross-promotion – any form of communication through which one industry relies on another industry to promote the product.  Convergence – Part of the Marketing Mix Convergence – overlapping of product promotion  Synergy a combined action that occurs when products owned by one source promotes the growth of related products  Risk and Risk Management Risk – unforeseen events and obstacles that can negatively affect business Risk management – a strategy to offset business risks

Activity Divide into groups of 4-6. Plan a marketing strategy for a celebrity’s latest offering (a film, CD, series of games, etc.). Will they use product tie-ins? Cross Promotion? Advertising? How will they use them?