1. The Wide World of Sports and Entertainment
Chapter 3
The Wide World of Sports and Entertainment
3.1 Industry Segments
3.2 Special Marketing Tools
3.3 Destinations: Travel and Tourism
3.4 Worldwide Sports & Entertainment Events

2. Winning Strategies (P. 59)
Oprah Winfrey
while a high school student, began a broadcasting career
at 19, she was the youngest person and the first African-American woman to anchor the news at Nashville’s WTVF-TV
1986, The Oprah Winfrey show entered national syndication
with the launching of Harpo studios, she became the third woman in U.S. history to own her own studio
provides generous funding and leadership to educational support programs – both within the U.S. and in South Africa

3. Lesson 3.1 Industry Segments
Goals
Define industry and give examples of subdivisions of an industry.
Explain why marketing decisions are based on industry standards, norms, and trends.

4. THE SPORTS AND ENTERTAINMENT INDUSTRY
a group of organizations involved in producing or handling the same product or type of service
industry subdivisions
subsets (part, group) of an industry

5. Subdivisions Music Industry Hotels Industry Sports Camp Industry
Country, Rock, Top 40s, Hip-Hop, Classics
Hotels Industry
Full Service, Limited Service, Economy, B & B
Sports Camp Industry
Sports Type, Dance Team, Cheerleading
TV Industry
Reality, Sitcoms, Sports, Soaps, Educational
College Sports
Football, baseball, soccer, softball, lacrosse, etc.

6. Industry Standards and Trends
the guidelines and goals set for different entertainment industries
industry norm
the average expectation within an industry
Question??? 3 Star Hotel Expectations?

7. Industry Norms Provide examples of what to expect, such as:
Attendance Levels
Average attendance at home football game
Event Revenue
Average cost of a local sports camp
Event Length
And other Important Factors in Planning

8. Industry Trends Industry Trends Shows:
the latest demand for an event
consumer response to events
growth or decline over time.
Marketing plans are often based on industry trends.

9. What is an industry?
Group of organizations involved in producing or handling the same product or service.

10. MARKETING DECISIONS FOR AN INDUSTRY
Marketing decisions are based upon industry standards, norms, and trends.
Planning Basketball Camp
Standards
Lessons/materials taught, Liability Insurance
Norms
Days/Length, Price, Max Enrollment, Avg. Revenue
Trends
Camp popularity, time of year, advertising methods

11. U.S. Sports Camps
Manages the marketing and administration of sports camps throughout the country.
specializes in over-night camps
coaches hire their own staff
Nike sponsors many camps (close ties)
provides apparel to staff and campers
Invested $80K in creation informational website
Site generated $1.4 million in online sales in one year
Offers additional info to help campers attend camper (convenient links to services they don’t offer – airfare)

12. College Sports ISP Sports a leader in collegiate sports marketing
Recognized quality performance, professional workmanship and outstanding service
Network has over 500 radio & 100 TV outlets
the country’s largest and fastest growing multimedia company
Sponsoring Opportunities for:
University publications, radio/TV programming, websites, game promo and stadium/arena signage

13. The Television Industry
Constantly seeks programming that will yield higher viewer ratings
Reality shows - less expensive to produce
Ordinary people vs. TV/movie stars
Networks continually seeking new ways to reach viewers
Internet, Video iPods, On-Demand cable

14. The Concert Industry Concert industry is undergoing a change.
mass appeal artists are diminishing (Beatles, Rolling Stones, Springsteen, etc. – Baby Boomers were big concert goers)
live concerts seem less important to the post baby boomer generation (TREND)
music videos, downloads – hinder concerts

15. State and County Fairs
State and county fairs have made many changes to stay competitive.
Younger Management Groups – fresh ideas
increased use of technology
online advertising
ticket sales
premium books
news releases
expanded schedules
corporate sponsorships

16. List three different forms of sports or entertainment and a current industry trend for each one.

17. Lesson 3.2 Special Marketing Tools
Goals
Explain how a sports figure can be successful in the motivational lecture circuit and the publishing industry.
Explain the purpose of and promotion methods used for sports camps and clinics.

18. MOTIVATIONAL SPEAKING AND WRITING
Professional athletes cannot plan on a lifelong career = natural job extension.
Many people enjoy listening to / reading what famous individuals have to say.

19. Successful Speaking Successful speakers have: Speakers rely on:
excellent speaking/communication skills
well written speeches
a message that is interesting repeatedly
Speakers rely on:
strong promotional campaigns (create positive image)
an agent (paid % of speech fees)
(May hire speech writers & coaches to train)

20. The Price of Motivation
All American Speakers Bureau
Booking agency
Sports figures & Celebrities
speakers receive between $5,000 and $50,000 for an individual speech

21. Writing Their Stories Writing = Career Extension / Expansion
People love a good story about:
Personal Experiences
Failures
Triumphs
Lessons Learned
Rags-to-Riches

22. Writing Their Stories Broad Appeal
Sports Celebrity  reaches sports fans
Universal Themes/Concerns  more people are likely to buy their book. (friends, faith, love)

23. Writing Their Stories Publishing Process
Ghostwriter: a writer commits it to paper for fee
Royalty: % of price of each book paid to author
Promote Book:
TV Appearances, Radio Interviews, Bookstore Signings
literary agent
plans marketing & promotional campaign for author
compensation is a percent of book sales

24. SPORTS CAMPS AND CLINICS
Why would serious young athletes want to participate in sports camp headed by a famous athlete or coach?
Top player(s) will teach them something
Professional Contact (foot in the door)
Every year parents make sizable expenditures to send their children to sports camps & clinics.

25. Sponsorships Major Considerations for Sports Camp/Clinic
Financial support
Featured athlete must be paid
Lease for space used
Marketing activities
Keep participant fees down
Sponsors add interest to event

26. Sponsorships Sponsors can expect the following:
a positive public relations campaign
visibility and recognition of sponsorship
advertising space in the camp’s publications
sponsor marketing materials on display at camp
potential product sales at camp

27. Camp Expectations
Parents need to carefully read camp literature to ensure that what the camp provides meets the family’s expectations.
Athlete welcome speech vs. training campers
The location of the camp should be considered to ensure it meets the needs of the family.
Local convenience vs. cross-country, overnight camp

28. Clinics Clinics: workshops, more intense and concentrated
single skill focus (Long-Snapper Clinic)
shorter duration
limited enrollment (more specialized time per person)
smaller staff (lower overhead costs, salaries)

29. Clinics Clinic Schedule Improve single skill for advanced players
Introduce a sport to beginner players
Several short sessions on sport basics
Description of rules
Interactive sessions on basics
help capture a larger fan base for the sport

30. Good Marketing Equals Success
Promotions (Spread the Word)
Brochures: objectives, schedules, requirements, dates, locations, costs, meals, housing, etc.
Promotional Campaigns include:
local news coverage in a variety of media
product giveaways
interviews and photos
a community appearance by a camp celebrity

31. On-Going Promotions Public Relations Materials
Success stories, goodwill images, community connections
Follow-up materials are critical for future sessions of camp.
parent surveys
mailing list of prior attendees
alumni incentives
alumni networking for potential new campers

32. Advertising Conduct Research in the area
What do citizen read daily? Are there free, weekly publications with high rates of advertising success?
Do area schools have high % of sports players?
At which local sports facilities could posters and brochures be placed?
Which are the best radio stations to consider for promotional ads?

33. Advertising
Well researched and thoughtfully planned marketing will yield most effective results.
How do these venues compare?
Newspapers
Magazines
Mailings

34. mailings and brochures
newspapers
short ad lead-times
inexpensive
large non-targeted audience
magazines and e-zines
longer ad lead-times
higher ad rates
targeted audience
mailings and brochures
direct mail: often most expensive advertising method
if it is sent to a well-researched group of consumers, it can be the most effective method.

35. Explain the difference between a camp and a clinic.
Camps concentrate on a variety of skills in a given sport (longer)
Clinics focus on only one skill or give short introduction to the sport to beginners (shorter)

36. Lesson 3.3 Destinations: Travel and Tourism
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Lesson 3.3 Destinations: Travel and Tourism
Goals
Explain the role of travel and tourism in sports and entertainment.
Discuss the roles of resorts & theme parks.

37. CHAPTER 19
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Opening Act ~ Page 73
Discuss the disadvantages of owning a business that caters to a very narrow group of people.
If the hotel had a more general appeal, do you think it would attract more or fewer guests and why?

38. TRAVELING The travel industry is the world’s largest industry.
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TRAVELING
The travel industry is the world’s largest industry.
Travel Industry employs over 220 million people. (240 million by 2013)
Tourism: traveling for pleasure
Independent or tour-based travel

39. Attracting Tourists Tourism includes: Vacations Family Visits
Attending Conferences
Attending Sports & Entertainment Events

40. CHAPTER 19
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Attracting Tourists
How/Why do sporting events bring tourists to their city? Who benefits from tourists?
Following their Favorite Team (Packages make it easy and convenient)
Hotels, restaurants, airlines, trains, buses, shopping malls, gas stations, vehicle rentals, etc.

41. Attracting Tourists Travel Trade
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Attracting Tourists
Travel Trade
Companies and individuals who create and market tours
Mission: increase the volume of visitors and their spending.

42. Attracting Tourists direct economic impact indirect economic impact
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Attracting Tourists
direct economic impact
total of new spending resulting from the event or attraction
indirect economic impact
multiplier effect:
the portion of the money spent locally by visitors that is in turn spent by local residents (local taxes paid on all the extra sales)
100,000 people visit a super bowl city about 1/3 are travel companions who do not attend the game
Stay on average 3.5 days and spend more than $375/day
Host city costs: overtime for police, fire, other securities, increased cleanups,

43. Tailor-Made Vacations
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Tailor-Made Vacations
niche travel
travel planned around a special interest
Music Enthusiasts: European Tour following a concert series of a specific genre.
Demographic Breakdowns
Hobby Breakdowns

44. Ecotourism Ecotourism:
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Ecotourism
Ecotourism:
responsible travel to natural areas that conserves the environment and sustains the well being of the local people
Minimize negative impacts of visitors on environment & culture but help host country

45. Ecotourism Sustainable Tourism:
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Ecotourism
Sustainable Tourism:
enjoying while simultaneously preserving natural environments so that they may also be enjoyed in the future
Locals plan and provide products/services
Locally owned lodging used, benefits locals.

46. CHAPTER 19
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Halls of Fame
Attracting visitors is critical to keeping a hall of fame alive. (Perfect Marketing Mix)
Word of Mouth is most effective promotion
Right theme (Product)
Convenient Location (Specific to theme?)
Appealing Promotion (Packages?)
Fair Price

47. Halls of Fame Some H.O.F. offer a complete destination.
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Halls of Fame
Some H.O.F. offer a complete destination.
additional entertainment sources located nearby
World Golf: golf, museum, shopping, dining theaters, hotels, custom packages, etc.

48. What is the mission of the travel trade?
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What is the mission of the travel trade?
Increase volume of visitors and their spending
What does Ecotourism attempt to do?
Minimize negative visitor impacts, help locals

49. RESORTS AND THEME PARKS
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RESORTS AND THEME PARKS
theme parks
family-oriented destinations
activities, rides, other attractions
centered around movies, cartoons, TV shows
resorts
aimed towards adult destinations
recreational sports, relaxing activities
with or without celebrity connections

50. Theme Park Central Orlando, Florida has: 7 major theme parks
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Theme Park Central
Orlando, Florida has:
7 major theme parks
95 attractions
hosts about 50 million visitors annually.
About 47 million are domestic visitors (U.S. tourists)

51. CHAPTER 19
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Disney
What strategies has Disney used to appeal to a wide range of consumers?
Packages: hotels, dining, park passes
Entertainment: shopping, nightclubs, rides
Parks: themed and target different groups

52. Disney What strategies has Disney used to maximize revenue per guest?
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Disney
What strategies has Disney used to maximize revenue per guest?
Disney tries to be a comprehensive provider of all the products and services a visitor may require during their stay.
Hotel, Dining, Shopping, Entertainment

53. Why might a theme park add restaurants and lodging to the site?
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Why might a theme park add restaurants and lodging to the site?
For the convenience of consumers and to increase profits.

54. Lesson 3.4 Worldwide Sports and Entertainment Events
Goals
Describe the international role of sports and entertainment marketing.
Discuss the challenges of international marketing.

55. GLOBAL SPORTS AND ENTERTAINMENT
Sports and entertainment is a worldwide industry.
People of all nationalities enjoy some form of sports and entertainment.
India & China – Growing…

56. An Expanding India
India continues to transition from a third-world economy to one of the fastest growing economies in the world.
Increased wealth of the population allows for greater consumption of sports and entertainment. (Discretionary Income)

57. An Expanding China China has:
over ONE BILLION potential consumers
an annual economic growth rate of more than 10%
unsuccessful foreign-operated attractions
a glut of amusement park (‘96-’06 estimated 2,500)
Many parks have failed due to poor marketing and planning and due to excess competition.
300 of 2,500 amusement parks were profitable
Standing out requires unique marketing mix

58. A World Mouse Disney: worldwide leader in theme park industry.
Tokyo ~ 1983
Paris ~ 1992
Hong Kong ~ 2005
Hong Kong Disneyland
Theme Park
2 Hotels
Shops, Restaurants, Entertainment Venues

59. A World Mouse joint venture infrastructure
when two groups (including businesses and governments) share the costs and profits of a business
infrastructure
water, sewer, roadways, and all other underlying framework
Location – 10 minutes away from H.K. Airport
Troubles with marketing

60. Why is the number of theme parks growing in China and India?
Large Populations
Growing Economies
Increased Discretionary Income

61. INTERNATIONAL MARKETING
globalization
international economic relationships
Goods & services flow quickly around the world – Globalization is now common.

62. Scoring With Fans Soccer… a.k.a. “Football”
FIFA – international governing body
Soccer is a dream event for international marketing. Universally Loved.
The World Cup is held every four years.

63. A Sponsor’s Dream
The World Cup provides valuable promotional opportunities.
$1.5 billion in sales for Nike and for Adidas in years of World Cup on soccer related goods.
introducing the “Bud” brand name in Germany
At first “Bud” not allowed due to “Bit” similarity
Germans not happy with Bud being the only beer.
Gave up “Exclusive Rights”
“Bit” also sold, so “Bud” name allowed

64. International Sports Trends
Current world sports has much to do with political history of the last 50 years.
After WWII, Japanese became interested in baseball. (baseball gum, caps, & the sport)
Leagues were formed (Amateur & Pro)
MLB opened office in Tokyo
Promotions: TV, Sponsorships, Licensing

65. International Sports Trends
In 2006, the World Baseball Classic was held. (modeled after World Cup)
$50 million to produce
$15 million profit
17 day tournament ~ Played in Tokyo, Arizona, Florida, Puerto Rico, Southern California
Goal: determine authentic WORLD Champion
Largest Fans in US ~ Latin & Asian Americans
Began working harder to reach these audiences

66. A Connected World + ‘06 ~ Warner Music Group + SK Telecom
SK Telecom: cell phone company
1st music co. & communications to merge
Dramatically changed the way consumers buy, store, and listen to music.

67. A Connected World
Cell phones are one of the few retail changes that have not been undercut by piracy. Article Link
Piracy
theft of copyrighted material

68. Why might cell phones be called “the heart” of the future of music?
2005
Why might cell phones be called “the heart” of the future of music?
Cell phones play a significant role in how we access music now.