Sports & Entertainment Marketing Management Minot High School

Section 1 Marketing Basics

What is Sports & Entertainment Marketing  A huge industry offering numerous products and services  is a subdivision of marketing which focuses on the promotion of sports events, teams, or entertainment  promotion of other products and services through these events often arise: apparel, toys, promotional items, teams etc.

Primary Focus  Identify the customer and their needs and wants  Develop products that customers consider better than other choices  Make a profit off your business

Sports Marketing  The use of sports events to market products  Multi-billion dollar global industry  Value of Sports Marketing  Large $$$ spent on events and related products  Automobile industry – transport to/from national events and personal kids sporting events  Restaurants, hotels, service stations  Jobs created: parking attendants, trainers, security and personal attendants

Entertainment Marketing  Entertainment is whatever people are willing to spend their money and spare time viewing rather than participating  Viewed in person, in broadcast or recorded form  Movies, theater, music concerts, circus and so forth

Marketing Mix When developing plans for sports and entertainment, marketers must consider the marketing mix! Product, Place, Price & Promotion

Marketing mix in sports & entertainment marketing  Product  The brand name, the various products offered under the brand, packaging and any product extensions and enhancements  Product extensions are items added to make it more attractive ie. Guarantees, warranties, new seating  Enhancements: features added to the basic product to satisfy additional needs. ie special seating areas etc.  Core product: main product  Ancillary product: product related to or created from the core product

Core product

Ancillary product

Marketing Mix Price  Based on what entertainment venues and sports teams can charge and what people will pay  What people pay based on:  Interests of the market  National importance of event  Popularity of athletes  Rivalry of the contest

Marketing Mix Price  Price Problems 1. Fan loyalty can be damaged when players/celebrities go on strike 2. Ticket scalping (unauthorized ticket sales) 3. Piracy (unauthorized use of an owner’s music, movies, or other copyrighted materials) 4. Royalty (payment for material that has been copyrighted)

Marketing Mix Place  Place  Event location and distribution of products  Bringing in turf or other venue props needed  Ticket sales of event - direct, online, ticketmaster etc.  People go online after an event to purchase related products  People get highlights of the game on TV

Marketing Mix Promotion  Promotional mix: Television, newspaper, web, and radio ads  In stadium ads (coupons on back of tickets)  Endorsements:  Sponsorships

Marketing Mix Promotion  Endorsements: a person’s public expression of approval or support for a product (goods, service, or idea).  usually by a celebrity lending his/her image/name to a product  Jordan Spieth Jordan Spieth  What product does Spieth Endorse?  How many logos was he wearing during the masters?  Has a contract until 2025

Marketing Mix Promotion  Sponsorships – a person, organization, or business that gives money or donates products and service to another organization or event in exchange for public recognition

Section 2 Sports Marketing

Spending habits of fans  Disposable income (freely spent income)  Research spending habits of fans to maximize profit on merchandise at sporting events  Fans are willing to pay for  team or celebrity identified merchandise  Expenses of food  Travel to and from games

Sports marketing strategies  Goal: attract high population of target market  Marketing strategies used 1. Sports logos on clothing 2. New sports, new opportunities 3. Gross impression 4. Perfect timing

1. Sports logos on clothing Why do people wear clothing that has the logos of their favorite teams or that is endorsed by a professional athlete?  Team logos show loyalty  Value of the merchandise is increased in the eyes of the buyer (same shirt without logo would cost less)  Some consumers feel more successful themselves if they own products endorsed by a successful person

2. New sports, new opportunities  Opportunities for endorsements and marketing  Example: Arena football, 1987  Affordable ticket prices  Players meet fans and sign autographs  Continuous action  Elements that add excitement and build interest

3. Gross impression  Number of times per advertisement, game, or show that a product or service is associated with an athlete, team, or entertainer  Brands shown in movies, TV shows, televised sporting events  Your brain records the brands it sees and encourages you to buy

4. Perfect Timing  Popularity of teams and sport figures is based almost completely on winning record  Fans want products and services that identify them with a winner  Successful trends monitored to determine when marketing strategies need to change

Section 3 Entertainment Marketing

Entertainment marketing  Process of developing, promoting, and distributing products to satisfy customers’ needs and wants through any diversion, amusement, or method of occupying time

What is entertainment?  Whatever people are willing to spend their money and spare time viewing, rather than participating

The entertainment industry  Entertainment marketing is influencing how people spend their time and money on entertainment  $200 billion market of products and services with one goal  Goal: to provide diversion, excitement, and amusement  Today, revolves around celebrities, cartoon characters, and concepts such as water parks, video games, concerts, and festivals

Entertainment marketing then & now  Performing arts represent a major form of entertainment  Live theatre, ballet, opera, concerts  Marketing was limited to posters, newspapers, magazines, word of mouth  Change occurred due to technology  The advent of the television revolutionized Entertainment marketing.  Buses are rolling billboards, vehicle ad panels, sports stadiums named after advertisers, social media

Media & entertainment  Media: the methods used for communicating or transmitting messages

Forms of media used as entertainment today (greatest amount of time to least) 1. TV 2. Radio 3. Recorded music 4. Newspapers and magazines 5. Video games (at home or arcade) 6. Films (theatrical or at home)

Walt Disney Company example  TV production  ABC TV  Movie studios  Video distribution  Theme parks  Cruise line  Publishing  Broadway shows  ESPN  Hockey team One company owns the other companies, although each company in the chain continues to perform separate tasks. This is called vertical distribution.

Entertainment products 1. Film and music merchandising 2. Electronics and video games 3. Print books and magazines 4. Theme parks and water parks 5. Special entertainment events

Product: film & music  Movies, plays, musical productions  Concessions—snack-bars that sell refreshments  DVD/video rentals and sales  Record clubs—organizations in which members receive free records if they agree to purchase additional records within a certain time period

Product: electronics & video games  Game consoles (Xbox, PlayStation, etc.)  Marketers cross-market in video game distribution (game makers works with films, TV shows, sports teams, etc.)  Advergaming—marketers place certain products in video games to increase sales and awareness

Product: print books & magazines  One of the oldest sources of entertainment  Magazines offer a good opportunity for marketers to reach their target market  Specific groups of customers buy specific magazines

Product: theme parks & water parks  Provide recreation, but also sell tangible goods  Location-based entertainment (LBE)— entertainment that includes amusement, theme, animal, and water parks  Visitors buy admission ticket and other souvenirs, apparel, food, gifts, etc.  Edutainment—recreation-based entertainment linked to education (museums, zoos, historic sites, etc.)

Product: special entertainment events  Circuses, state fairs, pageants  Each event provides the opportunity for selling related entertainment products