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

Sports Marketing Learning Targets: n I can describe the basic concepts of marketing. n I am able to explain the Marketing Mix. n I can define the Six Core Standards of marketing. Sports and Entertainment Marketing © Thomson/South-Western

Key Terms: n n n n marketing mix product distribution price promotion discretionary income Chapter 1 Slide 3 Sports and Entertainment Marketing © Thomson/South-Western

WHAT IS MARKETING? n Marketing n Process through which goods and services move from concept to the customer. It includes the coordination of four elements called the “ 4 P's of marketing”: (1) (2) (3) (4) Product Place or (Distribution) Price Promotion n Simply stated Marketing is the creation and maintaining of a satisfying exchange. Chapter 1 Slide 4 Sports and Entertainment Marketing © Thomson/South-Western

Continued… n Creation – product/service development. n Maintenance – it must be continuous. n Satisfaction – meets the needs/wants of businesses and customers. n Exchange – businesses and customers both give and receive something of value. Chapter 1 Slide 5 Sports and Entertainment Marketing © Thomson/South-Western

Satisfying Customer Needs n Identify your customer n Identify needs/wants 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 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

THE MARKETING MIX n Marketing Mix n Describes how a business blends the following four elements: n Product n Distribution (Place) n Price n Promotion aka – the Four P’s of Marketing Chapter 1 Slide 8 Sports and Entertainment Marketing © Thomson/South-Western

n Product n what a business offers to satisfy needs/wants. n goods and services Can be either tangible or intangible or both. n Distribution (Place) n the locations and methods used to make products available to customers. Ex: Online, mail order, Bricks-N-Mortar Chapter 1 Slide 9 Sports and Entertainment Marketing © Thomson/South-Western

n Price n amount customers pay for products. Amount that is listed on the price tag, ticket, bill, etc. n Promotion n ways to make customers aware of products. n encourages customers to buy. Ex: advertising, publicity, personal selling, and public relations. Chapter 1 Slide 10 Sports and Entertainment Marketing © Thomson/South-Western

Marketing Mix Considerations n Satisfying Customers n Must satisfy customers needs/wants by 1. Offer what they want 2. Offer when they want it 3. Offer where they want it 4. Offer it at a price (affordable) they are willing to pay n Discretionary / Disposable Income n the amount of money individuals have available to spend after paying for necessities Striking the right balance between price, distribution and promotion is important. Chapter 1 Slide 11 Sports and Entertainment Marketing © Thomson/South-Western

A Marketing Mix Example in the Sports Industry – Super Bowl n Product a championship game offered by the NFL between the best in the AFC vs the best team in the NFC. n Distribution includes the location of the host city and ticket sales. n Price – consumer costs extend beyond ticket prices and include travel and lodging expenses. n Promotion involves media outlets and related-product contests. Chapter 1 Slide 12 Sports and Entertainment Marketing © Thomson/South-Western

In class Assignment / Bell Ringer / Exit Slip: Opening Act pg. 4 Work with a partner or work solo. Read – answer what it is asking. Email your answers to: michael. florimonte@campbell. kyschools. us First. Last@stu. campbell. kyschools. us Chapter 1 Slide 13 Sports and Entertainment Marketing © Thomson/South-Western

Chapter 1 Slide 14 Sports and Entertainment Marketing © Thomson/South-Western

Michael Jordan - NIKE Bo Jackson - NIKE Tiger Woods – NIKE Le. Bron James – Beats by Dre Wade and Barkley – T Mobile Jeter, Woods and Federer - Gillette Johnny Football – Snickers Chapter 1 Slide 15 Barkley and Harden - Footlocker Sports and Entertainment Marketing © Thomson/South-Western

Read Page 9 & 10 Be ready to discuss tomorrow. Chapter 1 Slide 16 Sports and Entertainment Marketing © Thomson/South-Western

CORE STANDARDS OF MARKETING Chapter 1 Slide 17 Sports and Entertainment Marketing © Thomson/South-Western

n Distribution involves determining the best way to get a company’s products and services to customers. Examples: In stores, online, via mail order Chapter 1 Slide 18 Sports and Entertainment Marketing © Thomson/South-Western

n Marketing-Information Management n gathering and using information about customers to improve business decision making. Example: Telemarketers calling you and asking you various questions. Chapter 1 Slide 19 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. Price is typically linked to consumer demand. Chapter 1 Slide 20 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. Examples: Sony comes out with bought out Chapter 1 Slide 21 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. Examples: Sales ads, Commercials on TV. Chapter 1 Slide 22 Sports and Entertainment Marketing © Thomson/South-Western

n Selling n any direct and personal communication with customers to assess and satisfy their needs now and in the future. Examples: Sales and customer service representatives. Progressive Insurance Best Buy Chapter 1 Slide 23 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. Example: Note – customers are more likely to make a purchase when they have more than one payment option. Chapter 1 Slide 24 Sports and Entertainment Marketing © Thomson/South-Western

In class Assignment / Bell Ringer / Exit Slip: ENCORE! pg. 11 Read and Answer #3 Due (start of class) – 9/5/14 Email to – michael. florimonte@campbell. kyschools. us Chapter 1 Slide 25 Sports and Entertainment Marketing © Thomson/South-Western

#3 Purchased Four Reds Tickets n n n n Financing – used credit card (had to pay in full), half-off deal Pricing – $24 per ticket (half-off face value) Promotion – REDS email alert, newspaper PSM – updated customers on ½ half tickets Distribution – received by mail (could have picked them up at Will Call) Selling – email from REDS ticket office MIM – had to give personal information (name, address, phone #) Chapter 1 Slide 26 Sports and Entertainment Marketing © Thomson/South-Western

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Flyers Basic rules for creating a successful Flyer • Be Readable – Utilize clear Fonts and Scripts – Utilize a short, Catch Phrase • Informative – Answer: Who, What, When, Where or Date, Time, Location, Cost • Eye Catching Design – utilize pictures and bright colors • Call to Action – Go online, Call #, Text, Make Purchase, Sign Up 19 29

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Chapter 1 Slide 31 Sports and Entertainment Marketing © Thomson/South-Western

Lesson 1. 2 Sports Marketing Learning Targets n I can identify sports marketing strategies. n I understand the importance of target markets. Chapter 1 Slide 32 Sports and Entertainment Marketing © Thomson/South-Western

Terms n Sports Marketing n Target Market n Demographics n Gross Impression Chapter 1 Slide 33 Sports and Entertainment Marketing © Thomson/South-Western

WHY SPORTS MARKETING? n Sports Marketing n using sports to market products/services n Target Market n Specific group of people you want to reach (your “Target”) How do we identify (know) our market? n By researching their Demographics n Quantifiable statistics (data) of a given population…. common characteristics of a specific group n age, gender, location, income level, education level, ethnicity, home ownership, marital status Chapter 1 Slide 34 Sports and Entertainment Marketing © Thomson/South-Western

Gross Impression n Marketing strategy used by businesses n the number of times per advertisement, game, or show that a product or service is associated with an athlete, team or entertainer is shown. Chapter 1 Slide 35 Sports and Entertainment Marketing © Thomson/South-Western

Timing n Businesses musk act when n Fans want products and services n Teams Wins n Addition of Popular Players n Trends/Styles change n Marketing efforts will change n Winning/Losing n Positive/Negative Press n Trends/Styles change Chapter 1 Slide 36 Sports and Entertainment Marketing © Thomson/South-Western

Emotional Value n connections to teams, players based on n n Tradition Family Where you live What you know (like/watch) Emotions - major factor in what consumers BUY, why they BUY and when they BUY. Chapter 1 Slide 37 Sports and Entertainment Marketing © Thomson/South-Western

THE VALUE OF SPORTS MARKETING n it is a multi-billion-dollar global industry n Businesses know there is money to be made. Chapter 1 Slide 38 Sports and Entertainment Marketing © Thomson/South-Western

New Sports Creates Opportunities n for businesses to make money. n n n Frisbee Golf Extreme Sports (X-Games) UFC Aero-ball Futsal Foot. Golf Chapter 1 Slide 39 Sports and Entertainment Marketing © Thomson/South-Western

So Many Channels n High profile sporting events generate strong promotional revenues for broadcasters. n n Bowl Games Rivalry Games Preseason Tournaments Championship Games How many sports channels do you have? n n DIRECTV Fioptics (Cincinnati Bell) Dish Network Time Warner Cable Chapter 1 Slide 40 Sports and Entertainment Marketing © Thomson/South-Western

In class Assignment – 30 pts: Read pages 17 - 22 Page. 24 -25 n Answer questions 1 -12, 14, 16 and 17 Type your answers in Microsoft Word – Printout and turn in (place in your paper in your Class Bells Bend) before leaving class. Chapter 1 Slide 41 Sports and Entertainment Marketing © Thomson/South-Western

Lesson 1. 3 Entertainment Marketing Learning Targets n I can define entertainment. n I can explain the impact ratings has on marketing and sports teams. Chapter 1 Slide 42 Sports and Entertainment Marketing © Thomson/South-Western

Terms n entertainment marketing n entertainment n ratings Chapter 1 Slide 43 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. n n Chapter 1 Slide 44 Watching NFL Sunday Ticket. Attending a concert at Riverbend. Attending a Camels Athletic event. Going to the movies. 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 45 Sports and Entertainment Marketing © Thomson/South-Western

The Big Eye in Every Room n Television changed the marketing of entertainment in a profound way. n Ratings n Number of viewers the program attracted. n Commercials n Advertising spots purchased by businesses to promote their products/services during TV and Radio broadcasts. Note: Ratings is the main factor in pricing commercials. Chapter 1 Slide 46 Sports and Entertainment Marketing © Thomson/South-Western

Change Accelerated n Technology advancements/improvements have facilitated the distribution of sports and entertainment to the masses. n n Internet Blogs Steaming Smart Phones (i. Phone, Galaxy, etc. ) Note: technology has increased the success rate of reaching Target Markets. Chapter 1 Slide 47 Sports and Entertainment Marketing © Thomson/South-Western

Technology and Customer Feedback n Marketers, Teams and Fans utilize technologies to communicate. n n n Web Sites Blogs Texting Facebook Twitter Chapter 1 Slide 48 Sports and Entertainment Marketing © Thomson/South-Western