1. Similarities and Differences between Sports and Entertainment Marketing

2. Brainstorm
How do you think sports and entertainment marketing are similar?
How do you think sports and entertainment marketing differ?

3. Marketing Similarities
Services not goods (usually)
Endorsements
Core and Ancillary Products
Pricing Problems
Product Tie-ins and Cross Promotion
Business Risk

4. Using Celebrity Endorsers = Same

5. Core and Ancillary Products = Same
Entertainment
Sports
Core Product – the main product (sports event, movie, stage show, etc)
Ancillary Product – a product related to or created from the core product

6. Pricing Problems = Same
Pricing different than consumer products
Price is set based on what theatres and sports teams can charge
Change more frequently based on demand
Rarely lower prices
Ticker scalpers and piracy

7. Product Tie-Ins and Cross Promotion = Same
Product Tie in – use of ancillary products such as merchandise as promotional tools
Happy Meal at McDonald’s toy included character from newest Disney film or sports figure bobble head
Film promotions on talk shows
Cross Promotion – any form of communication through which one industry relies on another industry to promote its product
Film promotion – celebrities use their personal appeal to persuade viewers to buy products

8. Business Risk = Same Cancelled events Cancelled seasons
Unpredictable nature of the product
1994–95 NHL lockout, cancelled many of the games and shortened the regular season to 48 games per team
2004–05 NHL lockout, which cancelled all of the games of the 2004–05 season
2011 NBA lockout was the fourth lockout in the history of the National Basketball Association
1994–95 Major League Baseball strike was the eighth work stoppage in baseball history

9. Revenue

10. Consumer Loyalty = Different
Sports Fans are more loyal
Entertainment interests often change through life stages

11. Marketing Differences
Consumer loyalty
Sponsorship
Revenue stream

12. Consumer Loyalty = different
Sports marketers target a core group – try to maintain team loyalty
If an entertainment product does not deliver the expected level of entertainment – consumers turn to competition
Entertainment products do not enjoy the same stability as sports products
Entertainment marketers have to predict the trend or fad and develop a product to meet it

13. Revenue Stream = different
Entertainment products can be developed into merchandise – used for promotion
Create profit through sales of ancillary products
Sports team usually does not produce the same amount of revenue from merchandise and royalties as does an entertainment venue

14. Sponsorship Revenue = Different
Sports products earn more in sponsorship and advertising/broadcasting rights
Exclusive coverage of football games