1. CHAPTER 1 What Is Sports and Entertainment Marketing?
1/4/2018
CHAPTER 1 What Is Sports and Entertainment Marketing?
1.1 Management Basics
1.2 Sports Marketing
1.3 Entertainment Marketing
1.4 Recreation Marketing
CHAPTER 1
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2. LESSON 1.1 Marketing Basics
GOALS
Describe the basic concepts of marketing.
Define the seven key marketing functions.
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3. Marketing Concepts What is marketing? Marketing mix
Satisfying customer needs
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4. What Is Marketing?
Marketing—the creation and maintenance of satisfying exchange relationships
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5. Marketing Mix
Marketing mix—describes how a business blends the four marketing elements
Product—what a business offers customers to satisfy needs
Distribution—the locations and methods used to make products available to customers
Price—the amount that customers pay for products
Promotion—ways to encourage customers to purchase products and increase customer satisfaction
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6. Satisfying Customer Needs
Primary focus
Identify customer needs
Develop products
Operate a business profitably
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7. Key Marketing Functions
Product/service management
Distribution
Selling
Marketing-information management
Financing
Pricing
Promotion
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8. LESSON 1.2 Sports Marketing
GOALS
Define sports marketing, and understand the importance of target markets.
Identify sports marketing strategies.
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9. What Is Sports Marketing?
Sports marketing—using sports to market products
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10. Determine the Target Market
Target market—a specific group of people you want to reach
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11. How to Find a Target Market
Disposable income—income that can be spent freely
Demographics—specific customer information
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12. Spending Habits of Fans
Tickets
Clothing or equipment
Food
Travel
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13. Marketing Strategies Sports logos on clothing
New sports, new opportunities
Gross impression
Timing
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14. Sports Logos on Clothing
Fan loyalty
Increased value
Feeling of success
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15. New Sports, New Opportunities
Arena football
Television broadcasts
Sponsorships
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16. Gross Impression
Gross impression—the number of times per advertisement, game, or show that a product or service is associated with an athlete, team, or entertainer
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17. LESSON 1.3 Entertainment Marketing
GOALS
Understand why marketing must relate to the specific audience.
Relate advances in entertainment technology to changes in distribution.
Recognize the power of television and the Internet as marketing tools.
Understand feedback from the customer.
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18. Entertainment for Sale
What exactly is entertainment?
Entertainment—whatever people are willing to spend their money and spare time viewing rather than participating in
Entertainment can include sports or the arts.
Sports—games of athletic skill
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19. Sports or Entertainment?
Is a distinction required for successful marketing?
Marketing-information management
Specific product promotions
Knowing customer needs
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20. Modern Entertainment Marketing
The beginning of change
Change accelerated
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21. The Beginning of Change
Louis Le Prince—first moving pictures (1888)
Lumiere brothers—first to present a projected movie to a paying audience (1895)
The Jazz Singer—first movie with sound (1927)
Mickey Mouse—animation arrived (1928)
Disneyland—theme park a new approach to the marketing mix of entertainment (1955)
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22. Change Accelerated Improvement of technology
Ease of distribution to the masses
Evolution of entertainment media
The Internet
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23. The Big Eye in Every Room
The early days of television and marketing
Television’s increasing influence
Entertaining the customer
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24. The Early Days of Television and Marketing
The first demonstration of TV in 1945
The American Association of Advertising Agencies encouraged start of television advertising
NBC and the Gillette Company staged the first television sports spectacular in 1946
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25. Television’s Increasing Influence
Major national corporations began to advertise
Ad pricing tied to ratings or number of viewers
Appeal to a mass audience
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26. Entertaining the Customer
Instant feedback from the customer
Marketing mix of reality shows is unique
Marketing mix fine-tuned based on customer input
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27. LESSON 1.4 Recreation Marketing
GOALS
Apply the marketing mix to recreation marketing.
Describe marketing for the travel and tourism consumer.
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28. Recreational Sports
Recreation—renewing or rejuvenating our body or mind with play or amusing activity
Recreational activities—travel, tourism, and amateur sports that are not associated with education institutions
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29. Not for the Couch Potato
Time and money
Lessons
Practice
Equipment
Travel
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30. A Better Image Ladies Professional Golf Association (LPGA)
Promotion of a strong image to draw sponsors and a broader audience
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31. Travel and Tourism Tourism—traveling for pleasure Data mining
Relax and smell the roses
Niche travel—recreational travel or tours planned around a special interest
Complete travel packages/tours
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32. CHAPTER 2 Marketing Basics
SPORTS AND ENTERTAINMENT MARKETING
1/4/2018
CHAPTER 2 Marketing Basics
2.1 Marketing College Athletics
2.2 Economic Impact of College Athletics
2.3 Amateur Sports
CHAPTER 2
CHAPTER 2

33. LESSON 2.1 Marketing College Athletics
GOALS
Explain the importance of the NCAA and team rankings to college sports.
Define market segmentation.
Discuss the growing market surrounding women’s college athletics.
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34. Effects of Collegiate Sports
A winning team has economic implications for school, community, region, and state
Fan expectation
Promotion of organization’s goods and services
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35. Rules and Rankings
National Collegiate Athletic Association (NCAA)—the governing body of most college and university athletic programs
Creates and enforces guidelines and rules
NCAA Corporate Partners
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36. College Team Rankings Why so much emphasis? #1 has lingering effects
CHAPTER 2

37. Market Segmentation
Market segment—a group of individuals within a larger market that share one or more characteristics
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38. Five Elements of Market Segmentation
Geographic segmentation
Demographic segmentation
Psychographics
Product usage
Benefits derived
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39. Women’s College Sports
NCAA
Women’s Enhancement Program
Increased fan support
Marketing opportunities in women’s sports
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40. LESSON 2.2 Economic Impact of College Athletics
GOALS
Understand the benefits of college sports to the home community.
Identify benefits of sponsorship and licensing to a team.
Explain the reasons for realignment of college conferences.
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41. Benefits to the Community
Good for town business
Hotels
Restaurants
Retailers
Good for stadium business
Food/restaurants
Gift shops
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42. Sponsorships and Licensing
Generating revenue
Name-brand apparel
Create goodwill
Licensing
License—the legal right to reproduce a team’s logo in exchange for payment
Protect the use of the name and symbols
Identify and associate logos
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43. Conference Realignment
Conference—a group of college athletic teams within the same region
Increase revenues
Create new rivalries
Playoff games generate additional revenue
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44. GOALS Discuss marketing and sponsoring of amateur sports.
LESSON 2.3 Amateur Sports
GOALS
Discuss marketing and sponsoring of amateur sports.
Understand the economic benefits of amateur sports.
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45. Popularity of Amateur Sports
Amateur athlete—someone who does not get paid but plays for enjoyment, challenge, or both
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46. Marketing and Sponsoring Amateur Sports
Provides significant income for manufacturers
Minivan and sport utility vehicle
Retro sports jerseys
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47. Local Promotion of Amateur Sports
Fund-raising charity events
High school athletic teams
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48. National Promotion of Amateur Sports
Promotion used to elevate the attention of consumers
Lance Armstrong and Subaru
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49. Economic Benefits Minnesota’s example
Minnesota Amateur Sports Commission
Create economic development through amateur sports
Create maximum opportunity for sport participation
Establish Minnesota as a national model for the Olympic and amateur sport movement
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50. Economic Benefits of Specific Sports
Ice skating
Soccer
Basketball
Baseball and softball
CHAPTER 2

51. CHAPTER 3 Professional Sports
SPORTS AND ENTERTAINMENT MARKETING
1/4/2018
CHAPTER 3 Professional Sports
3.1 Big League Sports
3.2 Attracting a Professional Team
3.3 Agents, Managers, and Ethics
CHAPTER 3
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52. LESSON 3.1 Big League Sports
GOALS
Discuss the financial impact of professional sports.
Identify the perks associated with big league sports.
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53. Financial Impact Big league pricing and planning
Financial planning for a sports team
Bringing all the resources together
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54. Big League Pricing and Planning
Professional athletes contracts
Corporate sponsorships
Television revenue
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55. Financial Planning for a Sports Team
Financial viability for the home city
Increased spending by fans
Increased tax revenues
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56. Bringing All the Resources Together
Media support
Marketing
Charitable and other organizations
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57. Prestige, Power, Profitability
Perks and payoffs
Political clout
Professional teams and the community
Sociological ties to a professional team
The bottom line
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58. Perks and Payoffs
Perk—a payoff or profit received in addition to a regular wage or payment
Company employees receive tickets
Media exposure for owners
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59. Political Clout
Franchise owners bring millions of dollars in business activity to a city
Frequently associated with wealth
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60. Professional Teams and the Community
Teams bring new jobs to a city
Boost for surrounding businesses
Community service
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61. Sociological Ties to a Professional Team
City’s “image enhancement”
Residents feel pride
Wholesome family entertainment
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62. The Bottom Line Winning is everything in sports
Special contract incentives for winning
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63. LESSON 3.2 Attracting a Professional Team
GOALS
Describe the distribution process for a professional sports team.
Explain the process for financing a professional sports team.
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64. Getting in the Ballgame
Distributing the game
How distribution is decided
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65. Distributing the Game
Individual teams are separately operated businesses
Cartel—a combination of independent businesses formed to regulate production, pricing, and marketing of a product
The league controls the distribution of the teams
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66. How Distribution Is Decided
Region with a large potential customer base
Subsidies for the team
Owner must have financing
Stadium to attract fans
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67. Attracting a Sports Team
It takes money
And more money
Cashing in
Another option
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68. LESSON 3.3 Agents, Managers, and Ethics
GOALS
Understand the role of agents in marketing.
Explain ways that professional sports organizations and their sponsors develop an athlete’s character.
Assess the impact of ethical behavior on an athlete’s promotional value.
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69. Show Me the Money Agent—the legal representative of a celebrity
Athletes won the right to become free agents
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70. Polishing the Marketing Value
Professional athletes ultimately responsible for their own behavior
National Basketball Association rookie training program
Illegal behavior may hurt ability to attract sponsors
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71. Handlers
Handlers—sponsor-paid individuals who work closely with athletes who are unable or unwilling to police themselves
For athletes to remain valuable to sponsors, they must behave
Neither can afford negative publicity
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72. Advisors Financial and business counselors
Advisors keep the athlete and sponsor together for the benefit of both
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73. Do Ethics Count?
Ethics—a system of deciding what is right or wrong in a reasoned and impartial manner
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74. Ethics and Character Matter
Lack of mature adult role models
Frequent news accounts of unethical behavior by politicians, sports and entertainment figures, and religious leaders
Can result in publicity that interferes with a marketing plan
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75. CHAPTER 4 Marketing Products and Services Through Sports
SPORTS AND ENTERTAINMENT MARKETING
1/4/2018
CHAPTER 4 Marketing Products and Services Through Sports
4.1 Using Sports to Market Products
4.2 Sponsorship
4.3 Promotion
4.4 Endorsements
CHAPTER 4
CHAPTER 4

76. LESSON 4.1 Using Sports to Market Products
GOALS
Understand the enormous market for sports.
Explain emotional ties to sports and earning power of women in sports.
Discuss the marketing cycle.
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77. Market Audience Size The audience
Sports events attract more viewers and participants than any other form of entertainment today
An audience of avid fans is captive
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78. The Power of Sports Power of emotional ties Power of new markets
People experience intense emotions over sports
Pride in their city
Rioting after championship games
Fans may overlook athlete’s bad behavior
Power of new markets
Rising popularity of women’s athletics
Title IX
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79. Marketing Cycle
A company buys the right to advertise or use a logo on products
Television and radio stations and networks sell broadcast time
Cities buy the rights to host teams
Consumers buy the products advertised
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80. How Companies Decide Outside consulting firms Sports marketing groups
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81. GOALS Understand sponsors and their investments.
LESSON 4.2 Sponsorship
GOALS
Understand sponsors and their investments.
Discuss prohibited sponsorship.
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82. Sponsors and Investments
Reasons for sponsorship
Need for profit
Sponsorship in niche markets
Examples of niche markets
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83. Reasons for Sponsorship
Increase sales
Introduce a new product or service
Compete where potential customers are in one place
Identify an event with a target market
Earn the goodwill of the audience
Show community commitment
Enter new markets
Entertain clients, employees, or potential customers
Enhance the companies’ image
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84. Need for Profit
Guaranteed amount of exposure, recognition, or acknowledgement
Market research measures the results of its sponsorships
Return—the profit the sponsor earns from its support of an athlete or team
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85. Sponsorship in Niche Markets
Niche marketing—researching a target market to determine the specific items or services a small group of people will buy
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86. Examples of Niche Markets
NASCAR
X Games
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87. Can Anyone Sponsor Anything?
Newer sports offer attractive opportunities for smaller businesses
Minor league baseball
Affinity sports—niche markets whose participants are just as passionate about their sports as are enthusiasts of the more traditional sports
Loss of sponsors
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88. GOALS Discuss promotion and its objectives.
LESSON 4.3 Promotion
GOALS
Discuss promotion and its objectives.
Understand the tools used in promotion.
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89. Promotion
Selling—the exchange of a product or service for another item of equal or greater value
Promotion—publicizing or advertising a product, service, or event with the goal of selling it
Promotion example
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90. Promotion Targets
Primary goal of promotion is to increase sales or attendance
Winning new customers
Maintaining customer satisfaction, loyalty, and repeat business
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91. Promotion Objectives Decide on target market Decide on the message
Determine what it wants consumers to do
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92. Promotional Tools The four elements in a promotion plan are
Personal selling
Advertising
Publicity
Sales promotion
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93. Personal Selling
Personal selling—in-person, face-to-face communication between a seller and a customer
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94. Advertising
Advertising—paid communication between the product maker or seller and the audience or customer
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95. Publicity Publicity—any free notice about a product, service, or event
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96. Sales Promotion
Sales promotion—any action or communication that will encourage a consumer to buy a product
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97. GOALS Describe endorsements and their restrictions.
LESSON 4.4 Endorsements
GOALS
Describe endorsements and their restrictions.
Describe qualifications for endorsers.
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98. What Is an Endorsement?
Endorsement—a person’s public expression of approval or support for a product or service
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99. Legal Restrictions on Endorsements
Endorsements must always reflect the honest opinions, findings, and beliefs or experience of the endorser.
The endorser must have real experience with the product.
The endorsements may not contain any deceptive or misleading statements. The statements must be able to be substantiated by the advertiser.
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100. Legal Restrictions on Endorsements (continued)
Endorsements may not be presented out of context or reworded so as to distort in any way the endorser’s opinion.
The endorser must use and continue to use and believe in the product for as long as the endorser is used in the advertisements.
If the product changes in any way, the company must notify the endorser, and the endorser must continue to use and believe in the new or revised product.
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101. Athlete Endorsements Advantages and disadvantages
How controversial can an endorser be?
Should endorsers speak out on anything besides the product?
What businesses look for in an endorser
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102. Advantages and Disadvantages
Consumers will buy products endorsed by celebrities more often than products that are not so endorsed
Viewers, listeners, and fans are less likely to turn off a commercial featuring a celebrity than a commercial featuring a fictitious character
Consumers tend to believe celebrities, especially those who are chosen for their good public image
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103. How Controversial Can an Endorser Be?
A difference between harmful endorsement and questionable endorsement
Dennis Rodman
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104. Should Endorsers Speak Out?
Debate over whether celebrity endorsers have a moral obligation to speak out on controversial topics
Athletes are not experts in the field of politics, labor, human rights, or global issues
Athletes have a responsibility to know what’s going on with the business they endorse
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105. What Businesses Look for in an Endorser
Positive, charismatic, trustworthy image
A celebrity most consumers know
A celebrity whose career is in process (not retired)
Presents few risks
Believable relationship with the product
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106. SPORTS AND ENTERTAINMENT MARKETING
1/4/2018
CHAPTER 5 Public Images
5.1 Public Relations
5.2 Fans
5.3 Publishing and Speaking Engagements
CHAPTER 5
CHAPTER 5

107. LESSON 5.1 Public Relations
GOALS
Discuss the importance of positive public relations for sports.
Explain how public relations firms assist in creating favorable images.
Evaluate how athletes can affect public perceptions.
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108. Image Is Everything
Public relations—the arm of marketing that concerns itself with creating a favorable public opinion for an individual or organization
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109. An Image Is Born
Famous athletes expected to be role models who portray a positive image
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110. An Action Plan
Which forms of media are most appropriate for promoting the event or tournament?
What will be used to create a favorable image for the player, team, or event?
How will the public relations firm promote the event and the cause?
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111. The Bigger Picture
Sporting event locations needs an attractive presentation
Businesses need to maintain a reputation for excellence
Athletes, events, and locations must maintain positive relationships with the community and with fans
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112. Special Events
Goodwill—a general willingness to work with or assist a person or organization based on a positive reputation or relationship
Keeping the customer happy
Making public relations work
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113. Keeping the Customer Happy
Problems must be solved to create an enjoyable experience for visiting fans
Transportation and traffic
Accommodations
Police protection
Quality attractions
CHAPTER 5

114. Making Public Relations Work
Put customers first
Personal service & relationships
CHAPTER 5

115. Athletes and Public Goodwill
Sports heroes
Athletes support or create their own foundations and charities
Spokespersons
Raising funds and awareness
Fans and image
Friendly locals create many benefits for their communities
CHAPTER 5

116. GOALS List the advantages of fan clubs to both fans and athletes.
LESSON 5.2 Fans
GOALS
List the advantages of fan clubs to both fans and athletes.
Discuss the importance of marketing research before undertaking a licensing agreement.
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117. Fan Clubs
Fans give athletes loyalty, positive media attention, and a following
A fan club offers a perfect opportunity to build a positive image
Benefits of fan clubs
Products
Special events
Discounts
Outings or seminars
CHAPTER 5

118. Licensing and Merchandising
License—allows companies to produce, distribute, and sell official merchandise
Royalties—a negotiated percentage of all gross sales of the particular products
CHAPTER 5

119. Licensing in Collegiate Sports
Increased demand for officially licensed university memorabilia
Many universities have initiated trademark licensing programs
Quality control measures
CHAPTER 5

120. “Evergreens” Products that remain valuable from year to year
Sports trading cards
CHAPTER 5

121. Success and New Features Equal Sales
New trends
New athletes
Changing positions of teams
Consumer demand
CHAPTER 5

122. Predicting the Market Licenses are expensive to obtain
Investment in designing, manufacturing, shipping, and distribution
Marketing and promotion merchandise
Tracking inventory
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123. Successes in the Market
Official sponsors of events of leagues
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124. LESSON 5.3 Publishing and Speaking Engagements
GOALS
Explain how a sports figure can be successful in the lecture circuit.
Describe the steps in the creation of popular sports books.
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125. Motivational Speaking
Many athletes extend their association with sports through speaking engagements
Aids to success
The price of motivation
Ongoing success
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126. Writing Their Stories Extend a sports career profitability
Broadening the audience
Target audience
Larger audience because of universal themes and concerns
CHAPTER 5

127. The Publishing Process
Ghostwriter
Book prices determined by public demand and the extend of distribution
Author receives a royalty
Literary agent—an individual who, for a percentage of the sales, will plan the marketing campaign and book appearances
CHAPTER 5

128. CHAPTER 6 Advancing The Cause
SPORTS AND ENTERTAINMENT MARKETING
1/4/2018
CHAPTER 6 Advancing The Cause
6.1 Community Service
6.2 Sports Camps
6.3 Workshops
CHAPTER 6
CHAPTER 6

129. LESSON 6.1 Community Service
GOALS
Describe the importance of charities and tournaments to the successful images of athletes and teams.
Explain why athletes become involved with or create their own foundations.
CHAPTER 6

130. Community Service Negative publicity about athletes
Athletes involved in helping others
Time
Money
CHAPTER 6

131. Raising Awareness and Visibility
Special events
Spokespersons
Promotional campaigns
Contribute financial support
CHAPTER 6

132. Tournaments for Charities
Golf tournaments
Corporate partners
CHAPTER 6

133. Foundations
Foundation—an organization that is established to maintain, assist, or finance other institutions or programs that are of an educational, charitable, or social nature
Going the extra mile
Athletes create foundations that continually aid their favorite causes
Examples
CHAPTER 6

134. LESSON 6.2 Sports Camps
GOALS
Explain why sports celebrity camps have become increasingly popular.
Describe ways to promote a sports camp.
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135. Popularity of Camps Chance to work with famous athlete or coach
Make a contact
Step toward success
CHAPTER 6

136. Camp Expectations Basics Celebrity involvement Location Activities
Safety
Facilities
Staff
Size
CHAPTER 6

137. Good Marketing and Managing Equals Success
Promotional materials
Corporate sponsorships
Strong business plan
Effective presentation
CHAPTER 6

138. Camp Promotion Publicity Brochures and registration materials
Promotional campaign
Ongoing promotions
Personal interest stories promote goodwill
Professional photographer to capture photos for next year’s brochure
Follow-up materials to parents
Mailing lists
CHAPTER 6

139. LESSON 6.3 Workshops
GOALS
Define the relationship between sponsorship and interest in one-day seminars.
Evaluate three methods of advertising workshops, and discuss the benefits of each.
CHAPTER 6

140. Targeting Specific Skills
Clinics concentrate on a specific skill
Sessions are more intense and concentrated
Number of participants limited
Clinics introduce a sport
Beginners
Basic elements of a game
Lower cost
Participants arrange their own food and lodging
Large staffs are not needed
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141. Workshop Sponsorships
Benefits for workshop
Fund aspects of the workshop
Keep participants’ fees down
Speakers
Products
Benefits to sponsor
Opportunity to promote products
CHAPTER 6

142. Advertising Demographics Avenues for ads Newsprint
Magazines and e-zines
Targeted mailings and brochures
CHAPTER 6

143. CHAPTER 7 Sports Marketing
SPORTS AND ENTERTAINMENT MARKETING
1/4/2018
CHAPTER 7 Sports Marketing
7.1 Marketing Firms
7.2 The Global Market
7.3 Careers in Sports Marketing
CHAPTER 7
CHAPTER 7

144. LESSON 7.1 Marketing Firms
GOALS
Explain the role of a sports marketing firm.
Understand the importance of maintaining a positive image for sports owners and marketing firms.
CHAPTER 7

145. Marketing Sports Successful sports marketing firms
Have integrity, broad and varied expertise, and knowledge of information technology
Bring business sponsors and nonprofit sponsors together with sports teams, individual athletes, and coaches
Negotiate and manage contracts
CHAPTER 7

146. Service Specifics
Match athletes and businesses for their mutual benefit
Olympics
Broadcast partnership
Endorsements
CHAPTER 7

147. Role of the Agent
Agent—a person responsible for making contacts with clients and sponsors
Can represent individuals, businesses, or organizations
Turnkey operation—the firm handles everything from initial contacts to the final production of an event
CHAPTER 7

148. Providing Incentives
Encourage salespeople and attract new clients and buyers
Incentives—gifts or bonuses designed to motivate buyers, sellers, and sponsors
CHAPTER 7

149. The Big Picture Sports are expensive. The image of owners
Often perceived as self-seeking businessmen
Provide the public with the sports entertainment it seeks
Willing to donate some proceeds to charitable causes
CHAPTER 7

150. Pro Bono
“For the good”
Services that a sports marketing firm provides for free
Companies and sports teams brought together for the benefit of both
CHAPTER 7

151. LESSON 7.2 The Global Market
GOALS
Describe sports that have become popular internationally.
Describe ways in which sports marketing has increased international awareness of sports.
Explain some challenges in marketing the Olympics and women’s sports.
CHAPTER 7

152. The Migration of Sports
State of sports today has much to do with the political history of the past 50 years
United States occupation of Japan; American baseball
CHAPTER 7

153. Other International Sports Trends
Strengthening of the Olympic games
Advances in communications and transportation
CHAPTER 7

154. World Sports Today Scouting for talent Spreading the word
Scout—a team representative who travels to locate the best athletes in their respective sports
Salaries, bonuses, and other incentives attract new players
Spreading the word
Global marketing
CHAPTER 7

155. International Market Niches
Big business
Earnings drive the industry
CHAPTER 7

156. Marketing Women’s Sports
Years of neglect
Growing popularity of women’s professional sports
New female fans
CHAPTER 7

157. LESSON 7.3 Careers in Sports Marketing
GOALS
Identify numerous sports marketing careers.
Describe skills and personal characteristics necessary for a career in sports marketing.
CHAPTER 7

158. A Wide World of Careers Two roads to success Other marketing avenues
First is matching clients, overseeing projects, and providing follow-up evaluations
Second is technical services such as media, graphics and photography, and video production
Other marketing avenues
College or university bookstores
Team mascots
CHAPTER 7

159. Focus on Careers Media—print, radio, television, and the Internet
Apprenticeships
Public relations skills
Old-fashioned hard work
CHAPTER 7

160. CHAPTER 8 Entertainment Industry
SPORTS AND ENTERTAINMENT MARKETING
1/4/2018
CHAPTER 8 Entertainment Industry
8.1 Entertainment Profits
8.2 Distribution Off Entertainment
8.3 Marketing Music and Theater
8.4 Awards and Annual Events
8.5 Entertainment Marketing Careers
CHAPTER 8
CHAPTER 8

161. LESSON 8.1 Entertainment Profits
GOALS
Explain financial strategies in the motion picture industry.
Calculate film revenue, and discuss the importance of foreign markets for movies.
Describe financing in auto racing.
CHAPTER 8

162. The Profit Makers Movie ticket sales Studio earnings Production
Marketing
CHAPTER 8

163. Is Big Best? Spreading economic risk
Partnerships to help produce, promote, and distribute films
Promotional opportunities
CHAPTER 8

164. Cost-Cutting Strategies
Control release to control distribution costs
Wide release—a movie released in more than 2,000 theaters at one time
Preview—the release of a movie the evening before its official opening
Matinees—pre-evening shows, generally have less audience and lower-priced tickets
Low-budget movies—generally costing less than $250,000 to produce
CHAPTER 8

165. Profit and Opportunity
Generating film revenue
Cultural opportunities for profits
CHAPTER 8

166. Generating Film Revenue
Ratio of tickets sold to the cost of production
Income
Domestic and foreign ticket sales
Licensed merchandise
Soundtracks
Relationships to theme parks
CHAPTER 8

167. Cultural Opportunities for Profits
Significance of worldwide distribution revenue
Economic, political, and cultural barriers
CHAPTER 8

168. Fast Money— Stock Car Racing
Entertainment or sport
Financing
Mutual fund
Variation on the traditional sponsorship style
Nontobacco sponsors
CHAPTER 8

169. LESSON 8.2 Distribution of Entertainment
GOALS
Understand the different kinds of entertainment distribution.
Discuss promotional strategies for motion pictures.
CHAPTER 8

170. Distribution of Home Entertainment
Broadcast
Cable
Satellite
Internet
CHAPTER 8

171. Cable Mania Number of cable channels Delivery system and cost
Programming
Availability
Competition
CHAPTER 8

172. Digital Delirium High-definition television (HDTV)
Memorandum of Understanding (MOU)
CHAPTER 8

173. Satellite Television Rural areas In-vehicle multimedia Far-away fans
CHAPTER 8

174. Mega-Distribution
Broadcast webs—groups of television networks, production studios, and related entertainment firms that produce shows inhouse for their group
Vertical integration—one company controls several different areas in the same industry
CHAPTER 8

175. Movie Marketing
Trailers—advertisements for other movies and for related music and merchandise
Pay-per-view promotions
Web sites
CHAPTER 8

176. See It at Home Format Purchase Rentals DVDs Videotape
Mass market retailers
Music and video specialty stores
Online
Rentals
Online businesses with delivery via mail
CHAPTER 8

177. LESSON 8.3 Marketing Music and Theater
GOALS
Understand the distribution of music.
Discuss the legalities of music distribution.
Explain two kinds of theater promotion.
CHAPTER 8

178. Today’s Music Technology changes Marketing changes
Distribution changes
CHAPTER 8

179. Digital Music Marketing
TV channels
Audio channels
Downloads
CHAPTER 8

180. One Tune for All—Radio Growing business Deregulated media ownership
ClearChannel Communications
CHAPTER 8

181. Distributing Music
Concerts
MP3
CHAPTER 8

182. Concerts Prior to 1994 SFX Traditional tours “Wildcat tours”
Vertically integrated corporation
98 percent of major concerts
CHAPTER 8

183. Concert Tickets Major source of revenue for musical artists Pre-sales
CHAPTER 8

184. MP3 Online music swapping
Pirating done with free software program—MP3 (Mpeg Layer 3)
Recording Industry Association of America (RIAA)
Using software to trace online music swappers
Suing computer owners
CHAPTER 8

185. Promoting Theater—Broadway
Traditional promotional strategies
Billboards
Radio
Television
Magazines
Other promotional avenues
Let me tell you about . . .
Do I get a grade for this?
CHAPTER 8

186. LESSON 8.4 Awards and Annual Events
GOALS
Explain the promotional value of entertainment awards.
Discuss ways in which entertainment is distributed.
CHAPTER 8

187. Awards Influence Sales
The Oscars
The Grammys
The Emmys
The Tonys
CHAPTER 8

188. The Oscars Academy of Motion Picture Arts and Sciences
Academy Award also known as the Oscar
Pre-award publicity
Advertising films through trade publications and the talk-show circuit
CHAPTER 8

189. The Grammys National Academy of Recording Arts and Sciences (NARAS)
Attracts much attention to a musician
CHAPTER 8

190. The Emmys
Academy of Television Arts and Sciences presents the Primetime Emmy
National Academy of Television Arts and Sciences presents awards for daytime television, sports programming, news cases, and documentary programming
CHAPTER 8

191. The Tonys
Named after Antoinette Perry, who served as head of the Board of the American Theater Wing
Given to professionals in theater for distinguished achievement
CHAPTER 8

192. To Market, To Market Trade events Focus on businesses that are related
ShoWest—example of trade show
CHAPTER 8

193. Digital Distribution Digital projector Digitized movies
Distributed via satellite, fiber optics cables, special disks, or the Internet
Concurrent showings
CHAPTER 8

194. Seasonal or Theme Events
Centered in geographic areas
Market directly to people who will attend them
CHAPTER 8

195. LESSON 8.5 Entertainment Marketing Careers
GOALS
Discuss the preparation needed for a career in the entertainment marketing field.
Comprehend the skills needed for specific jobs in entertainment marketing.
CHAPTER 8

196. Getting There From Here
Breaking into entertainment marketing
Room for top people
CHAPTER 8

197. Marketing You Knowing what you do Gather information
Having required skills is a must
CHAPTER 8

198. How to Prepare Research jobs Learn about companies
Sources of information
Internet
People
Annual reports
Directories
College placement centers
News article and trade publications
CHAPTER 8

199. Marketing Jobs Public relations specialists
Build and maintain positive relationships between their employers and the public
Best opportunities are in larger cities
Marketing and advertising managers
Drives the creative development of the company’s public messages about its products
Must be creative and organized to manage many projects and people
CHAPTER 8

200. Skill Requirements Skills most desired by employers Math
Communications
Interpersonal skills
CHAPTER 8

201. Skill Requirements Other needed skills Creativity Initiative
Good judgment
Problem-solving/ research skills
Outgoing personality/ self-confidence
Understanding of human psychology
Enthusiasm for motivating people
Maturity
Resistance to stress
Flexibility
Decisiveness
CHAPTER 8

202. CHAPTER 9 Marketing Entertainment
SPORTS AND ENTERTAINMENT MARKETING
1/4/2018
CHAPTER 9 Marketing Entertainment
9.1 Customized Entertainment
9.2 Entertainment Technology and Marketing
9.3 World Entertainment Marketing
CHAPTER 9
CHAPTER 9

203. LESSON 9.1 Customized Entertainment
GOALS
Explain customizing entertainment products for a market segment.
Describe customized entertainment marketing for Baby Boomers.
CHAPTER 9

204. Customizing Products
Market segment—a group of people who have the ability and the desire to purchase a specific product
Customizing—changing a product to fit the needs or wants of a particular market
CHAPTER 9

205. Local TV American Style
Number of viewers
Cost
CHAPTER 9

206. Children’s Programming
Locally produced programs
Advertising
CHAPTER 9

207. Sports Programming Regional broadcast
Cable, satellite, and pay-per-view
Cost of programming
Tiering—certain sports programs outside the basic cable package would incur extra costs for the viewers who choose them
CHAPTER 9

208. Public TV and Radio Viewer- and listener-supported
Non-profit organizations
Created locally and tailored to the viewers or listeners
CHAPTER 9

209. Marketing to Baby Boomers
Generation born between 1946 and 1964
76 million people
Boomers won’t retire
Work beyond normal retirement age
Remain active
Discretionary income
Segmenting the group
CHAPTER 9

210. Entertaining the Boomers
Attendance at movies
Movie reviews
Movie stars of similar age
CHAPTER 9

211. Understanding All Parts of the Group
Diverse in opinion
Marketing message must be fine-tuned
Major target of entertainment marketing through 2020
CHAPTER 9

212. LESSON 9.2 Entertainment Technology and Marketing
GOALS
Explain the economic utility of entertainment.
Discuss the impact of technology on entertainment.
CHAPTER 9

213. Entertainment Economics
Economic utility—the amount of satisfaction a person receives from the consumption of a particular product or service
CHAPTER 9

214. Types of Utility
Form utility—when the physical characteristics of a product or service are improved
Time utility—the result of making the movie available when the viewer wants it
Place utility—ensures that the movie is available where the viewer wants it
Possession utility—results from making the movie available at an affordable price
CHAPTER 9

215. Utilities on Broadway
Broadway productions taken on the road and produced in many major cities
Economic utility is improved when people are able to choose from multiple forms of the same entertainment
CHAPTER 9

216. Techno-Vision Through a child’s eyes Speed is the key
Early adoption of new technologies
Innovative
Speed is the key
Speed depends on bandwidth
Bandwidth—the technical term for the capacity of communication channels
Personalized television in the future
CHAPTER 9

217. More about the Internet
Access to information on practically every subject
You must have an Internet Service Provider (ISP)
Entertainment distribution
CHAPTER 9

218. Technology
The Internet
TV and the Internet
CHAPTER 9

219. Cookies, Anyone?
Clickstream data—collected at each mouse-click within a web site
Cookie—a small data file placed on the hard drive of the web site visitor
CHAPTER 9

220. Consumer Privacy Concerns about how personal information is used
Information gathered from children
Credit card information
Entertainment industry
Collecting data to protect copyrights
CHAPTER 9

221. Movies or Toy Commercials?
Blurring the line between movies and commercials
Merchandising plans in place in advance of upcoming films
CHAPTER 9

222. LESSON 9.3 World Entertainment Marketing
GOALS
Discuss the economics of global marketing entertainment.
Describe global distribution of entertainment.
CHAPTER 9

223. Global Marketing Research Technology and distribution Culture
Economic development
Economic conditions
Technology and distribution
CHAPTER 9

224. Global Challenges Government policy
Interest in developing national entertainment industry
Interest in protecting culture
Tariffs
CHAPTER 9

225. Global Distribution Disney in Europe Elvis in Israel
Country all over the world
International music
International showcase
International sports
CHAPTER 9

226. Disney in Europe
Disney merchandise can be purchased throughout the world
CHAPTER 9

227. Elvis in Israel Israelis gather at the Elvis Inn Appeal of an icon
CHAPTER 9

228. Country All Over the World
American country music is popular all over the world
Kumamoto Country Gold Festival
CHAPTER 9

229. International Music Eurovision Song Contest pop music competition
CHAPTER 9

230. International Showcase
Cannes International Film Festival
Jury reviews films for the Cannes Awards
CHAPTER 9

231. International Sports NFL Europe League
Television coverage expanding both in Europe and the United States
CHAPTER 9

232. CHAPTER 10 Recreation Marketing
SPORTS AND ENTERTAINMENT MARKETING
CHAPTER 10 Recreation Marketing
10.1 Recreational Sports
10.2 Travel and Tourism
10.3 Resorts and Theme Parks
10.4 Recreation Marketing Careers
SLIDE 10
CHAPTER 10

233. LESSON 10.1 Recreational Sports
GOALS
Explain marketing strategies based on changing demographics.
Apply market information to recreational events.
SLIDE 10

234. Fitness and Fun Facilities versus wilderness
Recreational space for local residents
Environmental impact
Must balance needs
Managing customer information
Customer database
Product planning and promotion
SLIDE 10

235. Is Fitness a Trend? Changing demographics Senior Olympics
Participation of youngsters
SLIDE 10

236. Event Marketing Sponsorship The future is here Inline skating
Mountain biking
Snowboarding
SLIDE 10

237. Snowboard Madness Sport continues to grow Indoor snowboard facilities
Marketers looking for new areas
SLIDE 10

238. LESSON 10.2 Travel and Tourism
GOALS
Explain the importance of the travel and tourism industry to sports and entertainment marketing.
Describe how technology has changed travel marketing.
SLIDE 10

239. Road Trip Travel and tourism supporting business
Traveling to sporting events
SLIDE 10

240. The Products Transportation Accommodations Meals Other attractions
SLIDE 10

241. Travel Technology Online tickets sales and reservations
e-tickets—electronic tickets
SLIDE 10

242. Lean Times for Travel Agencies
Traditional ticket distribution channel until recently
Newer channel is direct sales through web sites
SLIDE 10

243. Price Versus Convenience
Online travel service
Priceline.com
SLIDE 10

244. Small World The business traveler The tourist
Major source of profit for the travel industry
Airline member-only clubs
The tourist
Self-indulgence travel
Cultural travel
Activity tours
Reality tours
SLIDE 10

245. Ecotourism
Ecotourism—responsible travel to natural areas that conserves the environment and sustains the well-being of local people
Fast-growing segment of travel industry
SLIDE 10

246. LESSON 10.3 Resorts and Theme Parks
GOALS
Understand the importance of partnerships between airlines and recreation destinations.
Discuss the popularity of halls of fame as destinations.
Explain the marketing strategies of theme parks and resorts.
SLIDE 10

247. Traveling to Destinations
Short-haul destinations
Low seasons
Getting there is half the fun
Resorts and theme parks depend on airlines to bring customers to them
Partnerships to coordinate efforts
Resort tech
Online sales strategies
Direct sales of tickets and hotel rooms
SLIDE 10

248. Halls of Fame Travel destination Sports and non-sports interests
A hall is not always a hall
No specifications for the site of a hall of fame
Must attract visitors
Promotion by word of mouth
A complete destination
SLIDE 10

249. Resorts and Theme Parks
Popular tourist destinations
Theme parks are family-oriented
Resorts aimed at adults
Children have a major influence on choice of destination
SLIDE 10

250. Theme Park Central
Disney is the world leader in the theme park industry
Tiering for premium services
Creating an attraction requires customizing
SLIDE 10

251. It’s Not Orlando Amusement parks in China
Inadequate or inaccurate marketing information about potential customers
SLIDE 10

252. LESSON 10.4 Recreation Marketing Careers
GOALS
Describe careers in recreation marketing.
Develop a recreation marketing career plan.
SLIDE 10

253. Building a Career Planning the trip What’s out there?
Wide selection of career paths
Research jobs and what they require
What’s out there?
Marketing positions in every firm in the recreation business
Searching for jobs using the Internet
Research national travel agencies
SLIDE 10

254. Getting Ready What’s school got to do with it?
Education requirements
Tech Prep program
How About the Real Thing?
Internships
Part-time work
Job shadowing —spending active work time with someone in a certain job or career
SLIDE 10

255. People Skills Are Critical
Manage your behavior
Adopt appropriate behavior for success
SLIDE 10

256. Recreation Marketing Careers
Recreation marketers needed to develop and execute the seven marketing functions
Communication and presentation skills
Most positions require a bachelor’s degree
Salary and perks
SLIDE 10

257. CHAPTER 11 Marketing Plans
SPORTS AND ENTERTAINMENT MARKETING
1/4/2018
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

258. 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

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

260. 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

261. 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

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

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

264. 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

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

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

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

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

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

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

271. 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

272. 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

273. 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

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

275. 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

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

277. 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

278. 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

279. 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

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

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

282. 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

283. 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

284. 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

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

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

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

288. 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

289. CHAPTER 12 Legal Issues For Sports and Entertainment
SPORTS AND ENTERTAINMENT MARKETING
1/4/2018
CHAPTER 12 Legal Issues For Sports and Entertainment
12.1 Laws and Contracts
12.2 Unions
12.3 Licensing
CHAPTER 12
CHAPTER 12

290. LESSON 12.1 Laws and Contracts
GOALS
Explain risk management in the distribution of sports and entertainment marketing.
Describe the importance of copyright law to pricing.
Discuss the need for contracts.
CHAPTER 12

291. The Law Managing risk Liable—legally responsible for damages
Risk—the possibility of financial loss or personal injury
CHAPTER 12

292. Steps to Risk Management
Identify risks.
Estimate the possibility of each risk.
Determine how great the consequences are.
Determine how to control the risk.
CHAPTER 12

293. Control the Risk Limit the possibility of risk through planning.
Purchase insurance that transfers the cost of the risk to the insurance company.
Transfer liability through a contract.
Cover the risk in the event budget.
Avoid offering the risky event.
CHAPTER 12

294. Who Has The Rights?
Copyright laws—protect the unique work of the originator within the geographic boundaries to which the laws apply
Royalty—payment made to the owner of a copyright for the use of a copyrighted work
CHAPTER 12

295. U.S. Laws International copyright convention Celebrity marketability
CHAPTER 12

296. Legal Listening Recording Industry Association of America (RIAA)
File sharing
Apple’s iTunes Music Store
CHAPTER 12

297. Federal Laws Sherman Antitrust Act (1890) Clayton Act (1914)
National Labor Relations Act (1935)
Contracts the bind
Contracts—agreements enforced by law that detail the transaction of business
Contract law
CHAPTER 12

298. GOALS Analyze the public relations impact of labor laws on sports.
LESSON 12.2 Unions
GOALS
Analyze the public relations impact of labor laws on sports.
Assess the financial harm that strikes may cause to a sport.
Analyze the impact of labor unions on sports and entertainment pricing.
CHAPTER 12

299. Organized Labor
Players’ associations—professional athletes organized into labor unions
Collective bargaining—a group of employees joining together as a single unit to negotiate with employers
CHAPTER 12

300. Bargaining Rights Minimum and maximum salaries Grievance procedures
Contract lengths
Rules of operation
Negotiations with skilled communicators
Higher salaries
Higher percentage of revenue from the game
Increased costs passed along to the fans
CHAPTER 12

301. Topping the Salary
Salary cap—a maximum amount that a team can spend on players’ salaries
CHAPTER 12

302. Owners Versus Players
Lock-out
Strike
CHAPTER 12

303. Picking up the Pieces Work stoppages Loss of revenue for all parties
Congress
Winning back fans
CHAPTER 12

304. Labor Relations Soccer success Entertainment labor Getting along
Single-entity league
Owners are business partners
Entertainment labor
Screen Actors Guild (SAG)
American Federation of Television and Radio Artists (AFTRA)
Union power
Getting along
CHAPTER 12

305. GOALS Explain licensing.
LESSON 12.3 Licensing
GOALS
Explain licensing.
Describe the financial value of licensing sports and entertainment merchandise.
CHAPTER 12

306. Walking Billboards Reaching agreement
Licensing—giving permission to copy the logo of a league, athlete, team, entertainer, film, or TV show for a fee paid to the right holder of the image
Licensing allows unions to focus on their primary business
CHAPTER 12

307. Worldwide Publicity Availability of licensed items
New opportunities in Europe
CHAPTER 12

308. Getting Licensed A complete business plan
A sample of drawing of the product
The costs of production and distribution
A marketing plan
The existing distribution channels for the product
CHAPTER 12

309. Easy to Apply, Hard to Obtain
Immediate recognition and honor to a product
Limited number of licenses granted
CHAPTER 12

310. Keeping Current Fashions, uniforms, and team logos change
Promotional strategies
Changing logo, color, or uniform
Adding creative new items, licensees, and sales methods
Widening the marketing to the world
CHAPTER 12

311. Managing Licensing License applications Selection of licensees
Minimum guarantees
Design handbook and marketing plan
New product lines and number of designs
Approval process guidelines
Design review
Accounting
Counterfeit merchandise
CHAPTER 12

312. New Success Story NASCAR Nextel Cup Series Target market
ten-year agreement
36 championship-point races
23 tracks
19 states
Target market
CHAPTER 12

313. Legal Protection Federal registration as a trademark—
Civil and criminal penalties for violation
CHAPTER 12