1. What is Sports and Entertainment Marketing?
Chapter 1
1.1 Marketing Basics
1.2 Sports Marketing
1.3 Entertainment Marketing
1.4 Recreation Marketing

2. Sports & Entertainment Industries
Today, more than any other time in history, are the two most profitable industries in the U.S.
Fans spend billions of dollars each year on recreation
Reaches around the globe as well
Entertainment is a main export of the U.S.

3. What is Marketing?

4. If you know: Nike: “Just Do It” Wheaties: “Breakfast of Champions”
Under Armour:
“Protect this house”
Lowes:
“Lets build something together”
Butterfinger:
“Nobody better lay a finger on my butterfinger”
Apple:
“There’s an app for that”
You have been exposed to marketing.

5. Marketing Defined:
The process of planning, pricing, promoting, selling, and distributing ideas, goods, or services to create exchanges that satisfy customers
To sum it up – Marketing is the creation and maintenance of satisfying exchange relationships.
Marketing is an “umbrella” term
Current marketing practices focus on customers and maintaining a close relationship with them

6. Marketing Mix
Describes how a business “blends” the four marketing elements.
The 4 P’s
Product
Place (Distribution)
Price
Promotion

7. Marketing Mix
Product—what a business offers customers to satisfy needs
(Place) 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

8. Product Goods Services
Tangible items that have monetary value and satisfy your needs & wants (can touch them)
Examples: sports equipment, TV, clothing, candy.
Services
Intangible items that have monetary value and satisfy your needs & wants (can’t touch them)
Examples: tickets, banks, dry cleaners, amusement parks.

9. Place (Distribution)
Involves the locations and methods used to make products available to customers.

10. Place (Distribution)
Where do you buy a pair of sneakers or a theater ticket?
Internet?
Retail Store?
Theater?
Telephone Solicitation?
Wholesaler?
Retailer?

11. Price Amount that customers pay for products/services.
Approximately 50% of an item’s price is for the marketing costs!
Did you know? – On average, stores raise the price around 50% more than what they paid for it?

12. Promotion ways to encourage customers to purchase products/services.
Buy 2, get 1 free!!
ways to encourage customers to purchase products/services.
increase customer satisfaction.
includes: advertising, publicity, personal selling, and public relations
Our product will make you better at everything!

13. What are some forms of Promotion?
Newspaper
Magazine
Radio
Television
Direct Mail
Internet Advertising

14. Satisfying Customer Needs pg 5
MOST important aspect of marketing!
Must perform the following:
Identify customer needs
Develop products/services that customers consider better than other choices
Operate business profitably

15. Functions of Marketing
Every marketing activity can be classified into seven functions of marketing
Product/Service Management
Distribution
Selling
Marketing-Information Management
Financing
Pricing
Promotion

16. Functions of Marketing

17. Key Marketing Functions
Product/Service Management
Designing, developing, maintaining, improving, and acquiring products/services so they meet customer needs.
Ex: Focus groups
Distribution
Determining the best way to get a company’s products/services to customers.
Ex: Best Buy

18. Key Marketing Functions
Selling
Direct and personal communication with customers to assess and satisfy their needs.
satisfying customers
anticipating customers’ future needs
Marketing-Information Management
Gathering and using information about customers to improve business decision making.
Marketing research
Domino’s pizza expanding to Japan

19. Survey Says….
TV Sports Survey Questionnaire

20. Survey Results Why do you watch TV sports? To relax (2)
For entertainment (19)
I do not watch TV sports (1)
Other “Watch when I’m bored” (2)
Approximately how many hours do you spend watching sports during the week?
1 or less (13)
2-4 hours (6)
5 or more hours (5)

21. Survey Results How many tv sets do you have in your household?
1-2 (3)
3 or more (21)
Approximately how many live sports events do you attend during the week?
0-1 (15)
2-3 (9)
1 student did not respond

22. Survey Results Which of these tv sports do you watch? Basketball (11)
Football (15)
Hockey (5)
Tennis (2)
Curling (2)
Swimming (1)
Other—baseball (11)
Other—soccer (2)
Other– racing (2)
Other – wrestling (2)
Other – golf (1)
Other – boxing, UFC (1)

23. Survey Results
Would you be interested in a cable channel that showed classic sports events?
Yes (6)
No (5)
Maybe (13)

24. Key Marketing Functions
Financing
Requires a company not only to budget for its own marketing activities, but also provides customers with assistance in paying for the company’s products/services.
Ex: General Motors

25. Key Marketing Functions
Pricing
Process of establishing and communicating the value or cost of goods/services to customers.
Ex: Concert tickets. Consumers like, price high
Promotion
Used in advertising & other forms of communicating information about products/services, images, and ideas to achieve a desired income.
Ex: coupons on back of tickets

26. Chapter 1.2 Page 9 What is Sports Marketing?
Spectators of sporting events are the potential consumers of a wide array of products/services.
Sports marketing
Using sports to market products

27. Sports Marketing Target Market Demographics
A specific group of people you want to reach.
Ex: Reebok & Nike have a large market for athletic shoes, but smaller, homogenous (similar) group for tennis, golf, running, walking, and so on.
Demographics
Specific info. such as the age ranges in the group, marital status, gender, educational level, attitudes and beliefs, and income.

28. Sports Marketing Disposable Income Spending Habits of Fans
Income that can be freely spent.
Spending Habits of Fans
Important to research spending habits of fans
Maximize profits on items they purchase at sporting events

29. Marketing Strategies Sports Logos on clothing
Shows team loyalty, value of merchandise is increased in the eyes of the buyer, consumers feel more successful.
Royalties - (% of sales)
New Sports, New Opportunities
Arena Football League (AFL) was one of the fastest growing sports in the country.

30. Ambush (or Stealth) Marketing (page 11 Marketing Myths)
When organizations participate in events to some degree rather than sponsor the event.
Why would companies want to do this?

31. Marketing Strategies Gross Impressions Timing
Number of times per advertisement, game, or show that a product or service is associated with an athlete, team, or entertainment.
Product Placement
Timing
The popularity of teams and sports figures is based almost completely on continued winning.

32. Entertainment Marketing Lesson 1.3 pg 14
Entertainment Marketing-Influencing how people choose to use their time and money
First, Entertainment is looked at as a product to be marketed.
Second, use EM to attract attention to other products
Ex: hiring celebs to endorse related mdse. or events.

33. Entertainment Marketing
Whatever people are willing to spend their money and spare time viewing rather than participating in.
Any examples?
Ex: movies, theatre, circus, or even athletic events

34. Modern Entertainment Marketing
Beginning of 20th Century
Performing arts were the major form of entertainment
Live theater, ballet, opera and concerts
Marketing was limited
Posters, newspapers, magazines and word-of-mouth
People had to travel to the show
Show wasn’t brought to the consumers as it is today

35. The beginning of change
Louis Le Prince
Made the first moving pictures (movies) – first made in Britain in 1888

36. The big eye in every room
1950s- TV began to arrive in great numbers in American homes
Sports and Entertainment marketers found a wide-open distribution channel into the homes of Americans

37. Early days of TV and Marketing
Early 1940s - Nine TV stations and fewer than 7,000 working TV sets existed in the US
October 1945 – Gimbel’s Department Store in Philly had over 25,000 people come to watch the first demonstration of TV
Soon after, advertising on TV was encouraged

38. Television’s increasing influence
Ratings – the number of viewers the programming attracted
Elvis #1 – September 1956
Elvis #2 – October 1956 Forrest Gump!
Beatles

39. Recreational Sports Lesson 1.4 pg 20
Renewing or rejuvenating your body or mind with play or amusing activity.
Recreational Activities
Activities involved in travel, tourism, and amateur sports that are NOT associated with educational institutions.

40. Recreational Sports No Couch Potatoes A Better Image
Participation requires purchase of a combo. of products/services
A Better Image
LPGA
Annika Sorenstam – first woman in over 50 years to play in men’s PGA tournamnet
Michelle Wie – first LPGA tournament at 13!

41. Travel and Tourism World’s largest industry Tourism Data Mining
Traveling for pleasure
Vacations, honeymoons, conventions, and family visits
Data Mining
Collecting data about which people travel, where, and when.

42. Travel and Tourism Niche Travel
Recreational travel or tours planned around a special interest.
Ex: Caribbean Cruise for Singles or Vacation package for college spring breakers
Disney now offers travel packages that include hotel, airfare, rental car and park tickets
Thomas Cook – first to introduce package tours to seaside resorts