Chapter 1 What Is Sports and Entertainment Marketing

Chapter 1 What Is Sports and Entertainment Marketing? 1. 1 Marketing Basics 1. 2 Sports Marketing 1. 3 Entertainment Marketing Sports and Entertainment Marketing © Thomson/South-Western

Winning Strategies From $50 to $4 Million n A determined athlete n A supportive family Chapter 1 Slide 2 Sports and Entertainment Marketing © Thomson/South-Western

Lesson 1. 1 Marketing Basics Goals n Describe the basic concepts of marketing. n Explain the marketing mix. n Define the six core standards of marketing. Chapter 1 Slide 3 Sports and Entertainment Marketing © Thomson/South-Western

Terms n n n n marketing mix product distribution price promotion discretionary income Chapter 1 Slide 4 Sports and Entertainment Marketing © Thomson/South-Western

WHAT IS MARKETING? n marketing n the creation and maintenance of satisfying exchange relationships Chapter 1 Slide 5 Sports and Entertainment Marketing © Thomson/South-Western

Satisfying Customer Needs n identify your customer and the needs of your customer n develop superior products n operate your business profitably Chapter 1 Slide 6 Sports and Entertainment Marketing © Thomson/South-Western

Sports and Entertainment Marketing n Marketers of sports and entertainment marketing must assess n consumer demand n the competition n the financial valuation of the goods and services they offer Chapter 1 Slide 7 Sports and Entertainment Marketing © Thomson/South-Western

n What is marketing? Chapter 1 Slide 8 Sports and Entertainment Marketing © Thomson/South-Western

THE MARKETING MIX n marketing mix n how a business blends the following four elements n n Chapter 1 Slide 9 product distribution price promotion Sports and Entertainment Marketing © Thomson/South-Western

n product n what a business offers to satisfy needs n goods and services n distribution n the locations and methods used to make products available to customers Chapter 1 Slide 10 Sports and Entertainment Marketing © Thomson/South-Western

n price n amount customers pay for products n promotion n ways to make customers aware of products n encourages customers to buy Chapter 1 Slide 11 Sports and Entertainment Marketing © Thomson/South-Western

Marketing Mix Considerations n discretionary income n the amount of money individuals have available to spend after paying for necessities n Striking the right balance between price, distribution and promotion is important. Chapter 1 Slide 12 Sports and Entertainment Marketing © Thomson/South-Western

A Marketing Mix Example in the Sports Industry n The product the Super Bowl offers is a game between the best teams of the AFC and NFC. n Consumer costs extend beyond ticket prices and include travel and lodging expenses. n Distribution includes the location of the host city and ticket sales. n Promotion involves media outlets and relatedproduct contests. Chapter 1 Slide 13 Sports and Entertainment Marketing © Thomson/South-Western

A Marketing Mix Example in the Entertainment Industry n State fairs need to n n n appeal to rural and urban residents set reasonable ticket prices advertise about the fair determine fair location plan ticket sales Chapter 1 Slide 14 Sports and Entertainment Marketing © Thomson/South-Western

n What are the elements of the marketing mix? Chapter 1 Slide 15 Sports and Entertainment Marketing © Thomson/South-Western

CORE STANDARDS OF MARKETING Chapter 1 Slide 16 Sports and Entertainment Marketing © Thomson/South-Western

n Distribution involves determining the best way to get a company’s products and services to customers. Chapter 1 Slide 17 Sports and Entertainment Marketing © Thomson/South-Western

n Marketing-Information Management n gathering and using information about customers to improve business decision making Chapter 1 Slide 18 Sports and Entertainment Marketing © Thomson/South-Western

n Pricing n the process of establishing and communicating to customers the value or costs of goods and services Chapter 1 Slide 19 Sports and Entertainment Marketing © Thomson/South-Western

n Product/Service Management n designing, developing, maintaining, improving and acquiring products or services to meet customer needs Chapter 1 Slide 20 Sports and Entertainment Marketing © Thomson/South-Western

n Promotion n using a variety of communication forms, including advertising, to distribute information about products, services, images and ideas to achieve a desired outcome Chapter 1 Slide 21 Sports and Entertainment Marketing © Thomson/South-Western

n Selling n any direct and personal communication with customers to assess and satisfy their needs Chapter 1 Slide 22 Sports and Entertainment Marketing © Thomson/South-Western

n Financing n A company must budget for its own marketing activities and provide customers with assistance in paying for the company’s products and services. Chapter 1 Slide 23 Sports and Entertainment Marketing © Thomson/South-Western

n List and provide an example of each core standard of marketing. Chapter 1 Slide 24 Sports and Entertainment Marketing © Thomson/South-Western

Lesson 1. 2 Sports Marketing Goals n Define sports marketing. n Explain the value of sports marketing to the economy. Chapter 1 Slide 25 Sports and Entertainment Marketing © Thomson/South-Western

Terms n demographics n sports marketing n gross impression Chapter 1 Slide 26 Sports and Entertainment Marketing © Thomson/South-Western

WHY SPORTS MARKETING? n demographics n common characteristics of a group n age, marital status, income, education n sports marketing n using sports to market products Chapter 1 Slide 27 Sports and Entertainment Marketing © Thomson/South-Western

New Sports, New Opportunities n continual innovation provides new opportunities n extreme sports n arena football Chapter 1 Slide 28 Sports and Entertainment Marketing © Thomson/South-Western

Gross Impression n gross impression n the number of times per advertisement, game, or show that a product or service is associated with an athlete, team or entertainer Chapter 1 Slide 29 Sports and Entertainment Marketing © Thomson/South-Western

Timing n Fans want products and services that identify them with winning teams and athletes. n Marketing efforts may need to be tweaked based on changes in winning trends. Chapter 1 Slide 30 Sports and Entertainment Marketing © Thomson/South-Western

n Why are gross impression and timing important in sports marketing? Chapter 1 Slide 31 Sports and Entertainment Marketing © Thomson/South-Western

THE VALUE OF SPORTS MARKETING n Sports marketing is a multi-billion-dollar global industry that has a definite impact on the economy. Chapter 1 Slide 32 Sports and Entertainment Marketing © Thomson/South-Western

Emotional Value n Emotional connections to teams motivate fans to buy tickets to games. Chapter 1 Slide 33 Sports and Entertainment Marketing © Thomson/South-Western

So Many Channels n High profile sporting events generate strong promotional revenues for broadcasters. Chapter 1 Slide 34 Sports and Entertainment Marketing © Thomson/South-Western

n Name three ways that sporting events help boost the local economy and/or national economy. Chapter 1 Slide 35 Sports and Entertainment Marketing © Thomson/South-Western

Lesson 1. 3 Entertainment Marketing Goals n Define entertainment. n Describe the impacts of advances in entertainment technology on entertainment marketing. Chapter 1 Slide 36 Sports and Entertainment Marketing © Thomson/South-Western

Terms n entertainment marketing n entertainment n ratings Chapter 1 Slide 37 Sports and Entertainment Marketing © Thomson/South-Western

ENTERTAINMENT FOR SALE n entertainment marketing n influencing how people choose to spend their time and money on entertainment Chapter 1 Slide 38 Sports and Entertainment Marketing © Thomson/South-Western

What Exactly is Entertainment? n entertainment n whatever people are willing to spend their money and spare time viewing rather than participating in Chapter 1 Slide 39 Sports and Entertainment Marketing © Thomson/South-Western

n What are the two ways of looking at entertainment marketing? Chapter 1 Slide 40 Sports and Entertainment Marketing © Thomson/South-Western

EVOLUTION OF ENTERTAINMENT AND ENTERTAINMENT MARKETING n At the beginning of the twentieth century, audiences needed to travel to the entertainment source. n Audience feedback was instantaneous and live. n Technology distanced entertainers from their audiences. Chapter 1 Slide 41 Sports and Entertainment Marketing © Thomson/South-Western

The Beginning of Change n Disneyland represented a new approach to the marketing mix of entertainment. Chapter 1 Slide 42 Sports and Entertainment Marketing © Thomson/South-Western

The Big Eye in Every Room n The Early Days of Television and Marketing n TV changed the marketing of entertainment in a profound way. n Television’s Increasing Influence n ratings n the number of viewers the programming attracted Chapter 1 Slide 43 Sports and Entertainment Marketing © Thomson/South-Western

Change Accelerated n Technology improvements, including the internet, have facilitated distribution of sports and entertainment to the masses. Chapter 1 Slide 44 Sports and Entertainment Marketing © Thomson/South-Western

Technology and Customer Feedback n Audiences can use a variety of communication technologies to provide entertainment feedback. Chapter 1 Slide 45 Sports and Entertainment Marketing © Thomson/South-Western

n Name a few benefits of television to marketers and advertisers. Chapter 1 Slide 46 Sports and Entertainment Marketing © Thomson/South-Western

PERFORMANCE INDICATORS EVALUATED n Communicate an appropriate advertising campaign through writing and speaking. n Analyze relevant data to make recommendations for an appropriate plan of action. n Demonstrate critical thinking and problem-solving skills when creating the advertising campaign. Chapter 1 Slide 47 Sports and Entertainment Marketing © Thomson/South-Western

n Demonstrate teamwork to complete a group project. n Demonstrate advertising budgeting skills. Chapter 1 Slide 48 Sports and Entertainment Marketing © Thomson/South-Western

THINK CRITICALLY 1. Why is an advertising campaign necessary to overcome the city’s previous reputation? 2. Give several examples of activities other than sporting events to attract customers downtown. 3. What is the advantage of having new condominiums in the downtown area? 4. Does the light rail system present an advantage for your advertising campaign? Explain your answer. Chapter 1 Slide 49 Sports and Entertainment Marketing © Thomson/South-Western