2. Understanding the Sports & Entertainment Product
Lesson 2.5
Understanding the Sports & Entertainment Product
Copyright © 2010 by Sports Career Consulting, LLC

3. The Sports Product Products:
UNIT 2
What is SEM?
The Sports Product
Products:
Tangible, physical goods as well as services and ideas
Tangible products are capable of being physically touched
Copyright © 2010 by Sports Career Consulting, LLC

4. Primary Functions of Marketing
UNIT 2
What is SEM?
Primary Functions of Marketing
Sports products are the goods and services designed to provide benefits to a sports spectator, participant or sponsor
Copyright © 2010 by Sports Career Consulting, LLC

5. The Sports Product What is SEM? UNIT 2
Sports Product: The goods and services designed to provide benefits to a sports spectator, participant or sponsor
Promotional items
Sports facilities
Marketing research
Management services
Licensed merchandise
Participation
Entertainment
Equipment and apparel
Copyright © 2010 by Sports Career Consulting, LLC

6. The Sports Product What is SEM? UNIT 2
Copyright © 2010 by Sports Career Consulting, LLC

7. The Entertainment Product
UNIT 2
What is SEM?
The Entertainment Product
The entertainment industry’s top revenue producing products and services include:
Film & Cinema
Television
Music & Concerts
Radio
Video Games
Theme Parks
Publications
- Newspapers
- Books
- Magazines
Copyright © 2010 by Sports Career Consulting, LLC

8. Unique Nature of Sports & Entertainment Products
UNIT 2
What is SEM?
Unique Nature of Sports & Entertainment Products
Sports and entertainment products often share common characteristics of services:
Services are perishable
Services are intangible
Copyright © 2010 by Sports Career Consulting, LLC

9. UNIT 2
What is SEM?
The Sports Product
Perishability is the ability or need to store or inventory a product
Many sports and entertainment products are perishable
Copyright © 2010 by Sports Career Consulting, LLC

10. Unique Nature of Sports & Entertainment Products
UNIT 2
What is SEM?
Unique Nature of Sports & Entertainment Products
Once a game or event has already taken place, they no longer carry a value
You can’t sell a seat to yesterday’s game, yesterday’s concert or yesterday’s ski-lift ticket!
Copyright © 2010 by Sports Career Consulting, LLC

11. Unique Nature of Sports & Entertainment Products
UNIT 2
What is SEM?
Unique Nature of Sports & Entertainment Products
Perishability can also apply to playing careers which impacts product quality
Dallas Mavericks owner Mark Cuban said in a recent interview, “I wrote a blog post a few years back saying that NHL players lost more than 1 billion in wages for their missed season. It could be more than that if the NFL walks out. The players can't ever get that money back. Their playing time is perishable.”
Copyright © 2010 by Sports Career Consulting, LLC

12. Intangible Product Attributes:
UNIT 2
What is SEM?
Unique Nature of Sports & Entertainment Products
Intangible Product Attributes:
The unobservable characteristics which a physical good possesses, such as style, quality, strength, or beauty
Copyright © 2010 by Sports Career Consulting, LLC

13. Unique Nature of Sports & Entertainment Products
UNIT 2
What is SEM?
Unique Nature of Sports & Entertainment Products
Examples of intangible product attributes:
The exhilaration we get from running our best marathon
The thrill of winning a competition
The satisfaction of scoring well on a challenging golf course
The pride we feel when teams we support win
Copyright © 2010 by Sports Career Consulting, LLC

14. Unique Nature of Sports & Entertainment Products
UNIT 2
What is SEM?
Unique Nature of Sports & Entertainment Products
Examples of intangible product attributes:
The emotional attachment fans invest in their affiliation with a favorite team
The connection fans feel with other fans (whether they know them or not) supporting the same players or teams
Copyright © 2010 by Sports Career Consulting, LLC

15. Competition for the Entertainment Dollar
Lesson 2.6
Competition for the Entertainment Dollar
Copyright © 2010 by Sports Career Consulting, LLC

16. Competition for the Entertainment Dollar
UNIT 2
What is SEM?
Competition for the Entertainment Dollar
Discretionary Income:
Money left to spend after
necessary expenses are paid
Copyright © 2010 by Sports Career Consulting, LLC

17. Competition for the Entertainment Dollar
UNIT 2
What is SEM?
Competition for the Entertainment Dollar
There is only so much discretionary income available in today’s economy
The competition for entertainment dollar increases when the economy is in a recession
Copyright © 2010 by Sports Career Consulting, LLC

18. Competition for the Entertainment Dollar
UNIT 2
What is SEM?
Competition for the Entertainment Dollar
The results of a Fortune poll released in May of 2009 showed discretionary spending in America to be at a thirty year low
Regardless of economic conditions, the role of the sports and entertainment marketer is to find ways for consumers to spend those dollars with their organization
Copyright © 2010 by Sports Career Consulting, LLC

19. Competition for the Entertainment Dollar
UNIT 2
What is SEM?
Discussion Topic:
Competition for the Entertainment Dollar
Consider what you do with your leisure time…
Where do you spend your entertainment dollars?
What entertainment options are available to you in your community?
Copyright © 2010 by Sports Career Consulting, LLC

20. Competition for the Entertainment Dollar
UNIT 2
What is SEM?
Discussion Topic
Competition for the Entertainment Dollar
Let’s examine the many entertainment possibilities available to residents in the Denver Metro Area…
Copyright © 2010 by Sports Career Consulting, LLC

21. UNIT 2
What is SEM?
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22. Lesson 2.7 Reaching Consumers
Copyright © 2010 by Sports Career Consulting, LLC

23. The Elusive Fan What is SEM? UNIT 2
In 2006, the sports marketing book entitled “The Elusive Fan” was published to examine the volatility of the sports/entertainment marketplace and the challenges today’s sports business professionals face
Copyright © 2010 by Sports Career Consulting, LLC

24. An Excerpt from The Elusive Fan
UNIT 2
What is SEM?
An Excerpt from The Elusive Fan
“It’s an October Saturday in Chicago. On television are two MLB playoff games, two preseason NBA games, fourteen college football games, five golf tournaments, an AHL game, an international horse race, two NASCAR races, and eight soccer matches. The University of Illinois and Northern Illinois University football teams and the AHL’s Chicago Wolves have home games. Hawthorne Race Course has a full card and there’s harness racing at Balmoral Park. There are twenty-nine high school football games and the final round of the boys and girls Illinois high school state championship golf tournaments…”
Copyright © 2010 by Sports Career Consulting, LLC

25. An Excerpt from The Elusive Fan
UNIT 2
What is SEM?
An Excerpt from The Elusive Fan
“…Youth and recreational league games are also being played in every community of the Chicago area. What about the Chicago Bulls, Bears, Blackhawks and Northwestern Wildcats? The Bulls played at home last night, the Bears play at home tomorrow, the Blackhawks are away and the Wildcats had their midseason bye. Of course this does not include the hundreds of satellite television channels broadcasting soccer, rugby or cricket games all over the world; the millions of sports Web sites with fantasy games, insider information and gamecasts; and a wide variety of increasingly realistic sports video games.”
Copyright © 2010 by Sports Career Consulting, LLC

26. UNIT 2
What is SEM?
Discussion Topic:
What is a sports and entertainment business and marketing professional to do?
What do we mean by the term “elusive fan”?
What challenges lie ahead for sports and entertainment business professionals?
Copyright © 2010 by Sports Career Consulting, LLC

27. Challenges for Today’s Sports Business Professionals
UNIT 2
What is SEM?
Challenges for Today’s Sports Business Professionals
The primary challenge for today’s sports/entertainment business professional is capturing consumer interest and building loyalty once that connection has been made
Copyright © 2010 by Sports Career Consulting, LLC

28. Challenges for Today’s Sports Business Professionals
UNIT 2
What is SEM?
Challenges for Today’s Sports Business Professionals
Why is loyalty important? Most marketers follow the widely accepted “20/80 rule”: 20% of customers account for 80% of company sales
Fans of the popular Twilight film franchise and comic books will see the movie Twilight Saga: Eclipse whether or not the movie gets positive reviews (fans actually camped out three days in advance in Los Angeles hoping to snag tickets to the premiere)
Copyright © 2010 by Sports Career Consulting, LLC

29. Challenges for Today’s Sports Business Professionals
UNIT 2
What is SEM?
Challenges for Today’s Sports Business Professionals
Because NASCAR fans are among the most brand loyal in all of sports, more Fortune 500 companies invest in NASCAR marketing programs than any other major sports property
Copyright © 2010 by Sports Career Consulting, LLC

30. Challenges for Today’s Sports Business Professionals
UNIT 2
What is SEM?
Challenges for Today’s Sports Business Professionals
Because loyalty is so important, many sports and entertainment organizations implement “loyalty programs” to reward core customers
UCLA unveiled a loyalty-based point system in 2009 that will help determine the order by which fans get to choose their seats in the new basketball arena before it opens its doors for season
Copyright © 2010 by Sports Career Consulting, LLC

31. Challenges for Today’s Sports Business Professionals
UNIT 2
What is SEM?
Challenges for Today’s Sports Business Professionals
New and emerging sports and entertainment properties keep the marketplace in a constant state of competition and evolution
Copyright © 2010 by Sports Career Consulting, LLC

32. Challenges for Today’s Sports Business Professionals
UNIT 2
What is SEM?
Challenges for Today’s Sports Business Professionals
In 2010, Nike announced that its action sports division is the fastest growing category within the Nike Brand. The Company anticipates doubling its current estimated $390 million business by 2015.
Copyright © 2010 by Sports Career Consulting, LLC

33. Challenges for Today’s Sports Business Professionals
UNIT 2
What is SEM?
Challenges for Today’s Sports Business Professionals
ESPN’s action sports X Games franchise’s consumer products and licensing business does more than $120 million in retail sales each year
Copyright © 2010 by Sports Career Consulting, LLC

34. Challenges for Today’s Sports Business Professionals
UNIT 2
What is SEM?
Challenges for Today’s Sports Business Professionals
In a sport once publicly denounced by Senator and Presidential Candidate John McCain, Mixed Martial Arts (MMA) has gained mainstream appeal
The sport is now sanctioned in every state with an athletic commission except New York
Copyright © 2010 by Sports Career Consulting, LLC

35. Challenges for Today’s Sports Business Professionals
UNIT 2
What is SEM?
Challenges for Today’s Sports Business Professionals
UFC's pay-per-view audience surpassed boxing and World Wrestling Entertainment for the first time in 2006, and has been on top ever since
Nearly ever major MMA event today results in a sold out venue
Copyright © 2010 by Sports Career Consulting, LLC

36. Challenges for Today’s Sports Business Professionals
UNIT 2
What is SEM?
Challenges for Today’s Sports Business Professionals
Many industry analysts are beginning to ponder the growth potential of cricket in the U.S.
The American College Cricket Championship began in 2009, with five Colleges, and quickly grew to 20 Colleges in 2010
Copyright © 2010 by Sports Career Consulting, LLC

37. Examining the Elusive Fan
UNIT 2
What is SEM?
Examining the Elusive Fan
Primary influencers of the fan decision
making process are money and time
Other factors can include personal issues
like spending time with family,
camaraderie among friends and relaxation
Copyright © 2010 by Sports Career Consulting, LLC

38. Examining the Elusive Fan
UNIT 2
What is SEM?
Examining the Elusive Fan
Innovation, enhancement of the overall fan (consumer) experience and careful market research become essential components of marketing plans and strategies
Copyright © 2010 by Sports Career Consulting, LLC

39. Seven Characteristics of the “Elusive Fan”
UNIT 2
What is SEM?
Seven Characteristics of the “Elusive Fan”
Pressurized competitive environment
2) Higher fan expectations
3) Paradox of commercialism
4) New technology
5) Individualism
6) Change in family structure/behavior
7) Time pressure
Copyright © 2010 by Sports Career Consulting, LLC

40. Seven Characteristics of the “Elusive Fan”
UNIT 2
What is SEM?
Seven Characteristics of the “Elusive Fan”
Pressurized Competitive Environment
The sports marketplace is extremely crowded
Paintball, while not a direct competitor of the
NHL, poses an indirect threat as the sport gains
popularity and has the potential to attract new
sports fans
Copyright © 2010 by Sports Career Consulting, LLC

41. Seven Characteristics of the “Elusive Fan”
UNIT 2
What is SEM?
Seven Characteristics of the “Elusive Fan”
Higher Fan Expectations
Fans demand a higher consumer experience
than ever before with more concessions
options, newer facilities and advances in
broadcast technologies
Copyright © 2010 by Sports Career Consulting, LLC

42. Seven Characteristics of the “Elusive Fan”
UNIT 2
What is SEM?
Seven Characteristics of the “Elusive Fan”
Paradox of Commercialism
In 2010, the WNBA’s New York Liberty The New York Liberty became the fourth WNBA team to feature corporate logos on their jerseys by entering a multi-year partnership with Foxwoods Resort Casino (the jerseys say "Foxwoods" across the front with a small Liberty logo above)
Copyright © 2010 by Sports Career Consulting, LLC

43. Seven Characteristics of the “Elusive Fan”
UNIT 2
What is SEM?
Seven Characteristics of the “Elusive Fan”
Paradox of Commercialism
Also in 2010, Bank of Montreal renewed their jersey sponsorship with Major League Soccer’s Toronto FC for a reported $4 million annually through 2015
Copyright © 2010 by Sports Career Consulting, LLC

44. Seven Characteristics of the “Elusive Fan”
UNIT 2
What is SEM?
Seven Characteristics of the “Elusive Fan”
Paradox of Commercialism
While the debut continues, sports teams who choose NOT to sell jersey advertising are passing up the potential for extremely lucrative sponsorship deals (Manchester United receives $30.4 million annually from global insurance company Aon to advertise on their jerseys)
Copyright © 2010 by Sports Career Consulting, LLC

45. Seven Characteristics of the “Elusive Fan”
UNIT 2
What is SEM?
Seven Characteristics of the “Elusive Fan”
New Technology
Never before have consumers had so much
information or access to sports and entertainment
products at their fingertips with the proliferation of
media channels
The fan experience is being consistently upgraded
as a direct result of new technologies as consumers
can absorb the sport experience from almost
anywhere
Copyright © 2010 by Sports Career Consulting, LLC

46. Seven Characteristics of the “Elusive Fan”
UNIT 2
What is SEM?
Seven Characteristics of the “Elusive Fan”
New Technology
Devices like the Slingbox or iPhone enable users to
watch live sports or television programming remotely
In a poll conducted by thebusinessofsports.com,
nearly 2/3 of survey participants indicated they use
Twitter to consume sport-related content
Copyright © 2010 by Sports Career Consulting, LLC

47. Seven Characteristics of the “Elusive Fan”
UNIT 2
What is SEM?
Seven Characteristics of the “Elusive Fan”
Individualism
Society as a whole has become less
focused on group interaction and
developed more specialized interests
Individualism has slowly resulted in the
deterioration of the popularity of team
sports (4 of the 5 fastest growing sports
last year were the individual sports of
backpacking, surfing, trail running and
bicycling on non-paved surfaces
Copyright © 2010 by Sports Career Consulting, LLC

48. Seven Characteristics of the “Elusive Fan”
UNIT 2
What is SEM?
Seven Characteristics of the “Elusive Fan”
Change in Family Structure/Behavior
Today, more than half of all U.S. families are
divorced, single parent or diverse groups of
unrelated people
As a result, the decision making process for sports
and entertainment participation becomes more
complicated
Copyright © 2010 by Sports Career Consulting, LLC

49. Seven Characteristics of the “Elusive Fan”
UNIT 2
What is SEM?
Seven Characteristics of the “Elusive Fan”
Time Pressure
The time demands Americans face today offer fewer
hours for the consumption of sport in any capacity,
be it as a spectator or participant
It is not simply the activity itself
that poses challenges for
consumers
Copyright © 2010 by Sports Career Consulting, LLC

50. UNIT 2
What is SEM?
Discussion Topic
Think about the last time you participated as a spectator in a sports or entertainment event (basketball game, movie, concert etc).
How much of your leisure time was spent consuming the activity?
Copyright © 2010 by Sports Career Consulting, LLC

51. UNIT 2
What is SEM?
Discussion Topic
Consider the plight of a sports fan that purchased tickets to see a Washington Wizards game. Tip-off is at 7:00 p.m. and the fan leaves work at 5:00 to meet a friend at a local restaurant for a pre-game dinner. Given traffic and parking issues, that fan may not get home until 11:30 p.m…
That two or three hour game has now eaten up almost six hours of the consumer’s day!
Copyright © 2010 by Sports Career Consulting, LLC

52. Introduction to Event Marketing & Management
Lesson 2.8
Introduction to Event Marketing & Management
Copyright © 2010 by Sports Career Consulting, LLC

53. Event Marketing Event Marketing:
UNIT 2
What is SEM?
Event Marketing
Event Marketing:
Refers to the actual marketing of an event by its organizers. For sports events, this type of event marketing can involve a number of different areas of marketing
Copyright © 2010 by Sports Career Consulting, LLC

54. Event Examples What is SEM? UNIT 2
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55. Event Marketing What is SEM? UNIT 2
Event marketing has become a profitable segment of the sports/entertainment industry
Marketers spent over $9.0 billion on event marketing in 2010
The 2010 FIFA World Cup generated a record $3.2 billion in revenue (representing a forty eight percent increase over 2006 World Cup revenues)
Copyright © 2010 by Sports Career Consulting, LLC

56. Event Marketing What is SEM? UNIT 2
Event marketing has become a profitable segment of the sports/entertainment industry
The 2009 Bassmaster Classic set an attendance record by drawing more than 135,000 fans to the event
The organizer’s of Montreal’s International Jazz Festival operate on a hefty $30 million budget
Copyright © 2010 by Sports Career Consulting, LLC

57. Event Marketing What is SEM? UNIT 2
Event marketing has become a profitable segment of the sports/entertainment industry
L.A. Live (the entertainment district in Los Angeles which is home to the Staples Center, Nokia Theatre, Conga Room and Grammy Museum) played host to over 1,000 events in 2009, reaching over 10 million fans
Copyright © 2010 by Sports Career Consulting, LLC

58. Event Marketing What is SEM? UNIT 2
For sports events, event marketing can involve a number of different marketing activities
Recruiting athlete participation in event
Creating a publicity strategy to increase coverage
of the event
Promoting the event to boost attendance
Selling sponsorships to corporations
Copyright © 2010 by Sports Career Consulting, LLC

59. Event Marketing What is SEM? UNIT 2
The role of corporate support in event marketing has increased dramatically in the past few decades. Without sponsorships and corporate support, many events would not be profitable.
The ADT Championship, one of the LPGA's most prestigious events, was canceled in 2009 because the event sponsor, Stanford Financial, went into receivership and the event was unable to secure a new sponsor in their place
Copyright © 2010 by Sports Career Consulting, LLC

60. The 5 P’s of Event Marketing
UNIT 2
What is SEM?
The 5 P’s of Event Marketing
Participation
Product / Brand Experience
Promotion
Probe
Prospect
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61. The 5 P’s of Event Marketing
UNIT 2
What is SEM?
The 5 P’s of Event Marketing
Participation: Getting consumers to attend the event and interact with the company, whether visually, verbally or interactively
Copyright © 2010 by Sports Career Consulting, LLC

62. The 5 P’s of Event Marketing
UNIT 2
What is SEM?
The 5 P’s of Event Marketing
Product / Brand Experience : Distributing samples or having the consumer try on or try out your product at the event
Copyright © 2010 by Sports Career Consulting, LLC

63. The 5 P’s of Event Marketing
UNIT 2
What is SEM?
The 5 P’s of Event Marketing
Promotion:
Generating media exposure by creating stories within the event and further increasing corporate awareness through promotions
Copyright © 2010 by Sports Career Consulting, LLC

64. The 5 P’s of Event Marketing
UNIT 2
What is SEM?
The 5 P’s of Event Marketing
Probe: Conducting research before, during and after the event to make sure that you are effectively reaching and penetrating your target audience
Prospect: Implies that companies should approach event marketing as a long-term commitment in order to see returns on investment
Copyright © 2010 by Sports Career Consulting, LLC

65. Event Planning UNIT 2 What is SEM?
Key factors to consider when planning an event
Working with vendors
Facility selection
Staffing & Volunteers
Traffic & Parking
Security
Concessions
Ticketing & Admissions
Sponsorship
Award Ceremonies
Special Accommodations
Weather
Hotels & Lodging
Copyright © 2010 by Sports Career Consulting, LLC

66. The Event 2) The Sponsor 3) Spectators The Event Triangle
UNIT 2
What is SEM?
The Event Triangle
The 3 Key Components of the Triangle
The Event
2) The Sponsor
3) Spectators
Copyright © 2010 by Sports Career Consulting, LLC

67. The Event What is SEM? UNIT 2 Can be amateur or professional
Typically provides some form of entertainment for spectators
Provides exposure for sponsors
The Event:
A function that will draw participants, spectators and sponsors
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68. Event Examples What is SEM? UNIT 2 Super Bowl Olympic Games
Local “Blues”
and Music Festivals
Event Examples
Copyright © 2010 by Sports Career Consulting, LLC

69. The Sponsor The Sponsor:
UNIT 2
What is SEM?
The Sponsor
Will utilize the event to market its products or services
Will leverage its relationship to advance future business opportunities
The Sponsor:
A company using the event to reach important consumers
Copyright © 2010 by Sports Career Consulting, LLC

70. The Spectator The Spectator:
UNIT 2
What is SEM?
The Spectator
Typically must pay to attend the event
Exposed to promotions for the event and event sponsors
The Spectator:
Those attending the event as a source of entertainment
Copyright © 2010 by Sports Career Consulting, LLC

71. Blank Slide Available for Teacher Edits
UNIT 2
What is SEM?
Blank Slide Available for Teacher Edits
Copyright © 2010 by Sports Career Consulting, LLC

72. Define sports marketing and entertainment marketing
UNIT 2 REVIEW (ANSWERS)
What is SEM?
Define sports marketing and entertainment marketing
Sports marketing is the act of using sports as a platform to market products or services and increase sales or the process the of marketing and selling the sports property itself
Entertainment marketing is the process of developing, promoting, and distributing products, or goods and services, to satisfy customer’s needs and wants through entertainment, or any diversion, amusement, or method of occupying time
Copyright © 2010 by Sports Career Consulting, LLC

73. 2) Explain the two primary types of sports and entertainment marketing
UNIT 2 REVIEW (ANSWERS)
What is SEM?
2) Explain the two primary types of sports and entertainment marketing
1-Marketing of sports & entertainment
2-Marketing through sports & entertainment
3) Compare and contrast sports marketing and entertainment marketing
Sports are entertainment but several key differences separate the two: sports are unscripted, sports customers are extremely loyal and an emotional attachment is very prevalent in sports
Copyright © 2010 by Sports Career Consulting, LLC

74. 4) Describe the seven functions of marketing
UNIT 2 REVIEW (ANSWERS)
What is SEM?
4) Describe the seven functions of marketing
1- Pricing
2- Distribution
3- Promotion
4- Financing
5- Selling
6- Marketing information-management
7- Product and service management
Copyright © 2010 by Sports Career Consulting, LLC

75. 5) Understand what makes sports and entertainment products unique
UNIT 2 REVIEW (ANSWERS)
What is SEM?
5) Understand what makes sports and entertainment products unique
Sports and entertainment products share the same characteristics as services in that they are often times intangible and perishable.
Once a game or event has already taken place, they no longer carry a value and cannot be sold.
Copyright © 2010 by Sports Career Consulting, LLC

76. 6) Explain the concept of competition for entertainment dollars
UNIT 2 REVIEW (ANSWERS)
What is SEM?
6) Explain the concept of competition for entertainment dollars
The role of the sports and entertainment marketer is to find ways for consumers to spend discretionary dollars with their organization.
The competition for those discretionary dollars is always on the rise with new, innovative ways to entertain constantly being introduced to the market
Copyright © 2010 by Sports Career Consulting, LLC

77. 7) Identify the five P’s of event marketing
UNIT 2 REVIEW (ANSWERS)
What is SEM?
7) Identify the five P’s of event marketing
1- Participation
2- Product/brand experience
3- Promotion
4- Probe
5- Prospect
Copyright © 2010 by Sports Career Consulting, LLC

78. 8) Explain the event triangle
UNIT 2 REVIEW (ANSWERS)
What is SEM?
8) Explain the event triangle
The event triangle is the model for studying the exchanges developed in sports marketing.
It places emphasis on the relationships between producers and consumers.
Three key components to the triangle include the event itself, the sponsor(s) and the spectators
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79. End Unit 2
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