Chapter 7 The Product Is Sports and Entertainment

Chapter 7 The Product Is Sports and Entertainment 7. 1 The Product Mix 7. 2 Recruiting Athletes and Entertainers 7. 3 Customized Entertainment 7. 4 Product Marketing Strategies Sports and Entertainment Marketing © Thomson/South-Western

Winning Strategies Fame and Fortune Used to Benefit Those in Real Need n Brad Pitt has used his fame to draw attention to those in need. n n children with AIDS in Africa the plight of Haitian children global poverty conditions helped sponsor architectural competition to rebuild part of New Orleans Chapter 7 Slide 2 Sports and Entertainment Marketing © Thomson/South-Western

Lesson 7. 1 The Product Mix Goals n Define product mix, product extension, and product enhancement. n List and describe the components of the product mix. Chapter 7 Slide 3 Sports and Entertainment Marketing © Thomson/South-Western

Terms n n n n product mix product extensions product enhancements product line brand trademark licensed brand Chapter 7 Slide 4 Sports and Entertainment Marketing © Thomson/South-Western

WHAT IS A PRODUCT MIX? n tangible parts n physical features that can be seen and felt n intangible parts n the nonphysical service features Chapter 7 Slide 5 Sports and Entertainment Marketing © Thomson/South-Western

n product mix n the total assorted features associated with the product n brand name n various products offered under the brand n product packaging n product extensions n items added to a product to make it more attractive to the target market n guarantees n warranties n instructional CDs Chapter 7 Slide 6 Sports and Entertainment Marketing © Thomson/South-Western

Basic vs. Enhanced Product n product enhancements n features added to the basic product that satisfy additional needs and wants with the same purchase n add value to the product and may increase the purchase price Chapter 7 Slide 7 Sports and Entertainment Marketing © Thomson/South-Western

n Provide two examples of a product enhancement. n Your example: n Classmates example: Chapter 7 Slide 8 Sports and Entertainment Marketing © Thomson/South-Western

PRODUCT MIX COMPONENTS n Product mix includes product line, packaging, and brand development. Chapter 7 Slide 9 Sports and Entertainment Marketing © Thomson/South-Western

Product Line n product line n a group of similar products with slight variations to satisfy the different needs of consumers Chapter 7 Slide 10 Sports and Entertainment Marketing © Thomson/South-Western

Packaging n Product packaging components to consider include n n Chapter 7 Slide 11 ease of use safety accessibility environmental friendliness Sports and Entertainment Marketing © Thomson/South-Western

Brand n brand n the name, symbol, word, design, or combination of these elements that identifies a product, service, or company n trademark n the legal protection of words and symbols used by a company n licensed brand n a well-known name and/or symbol established by one company and sold for use by another company Chapter 7 Slide 12 Sports and Entertainment Marketing © Thomson/South-Western

Who came up with these phrases? ? ? Chapter 7 Slide 13 Sports and Entertainment Marketing © Thomson/South-Western

n The five stages of brand recognition are 1. non-recognition – unable to identify new brands 2. rejection – will not purchase due to brand 3. recognition – know of brand, but brand has little influence on purchases 4. preference – purchase preferred brand if readily available, but may purchase another brand it’s not readily available 5. insistence – reject other brands even if preferred brand is not readily available Chapter 7 Slide 14 Sports and Entertainment Marketing © Thomson/South-Western

Genericide n Trademarked Brands that everyone uses as generics Chapter 7 Slide 15 Sports and Entertainment Marketing © Thomson/South-Western

n What are the components of the product mix? Chapter 7 Slide 16 Sports and Entertainment Marketing © Thomson/South-Western

Lesson 7. 2 Recruiting Athletes and Entertainers Goals n Define the bottom line for sports. n Explain the high cost of sports and entertainment events. Chapter 7 Slide 17 Sports and Entertainment Marketing © Thomson/South-Western

THE COST OF SUCCESS n Success requires n skilled coaches n top-notch players n popular entertainers Chapter 7 Slide 18 Sports and Entertainment Marketing © Thomson/South-Western

Attracting and Keeping Coaches n The best coaches can command annual salaries in excess of $1 million. n fringe benefits n incentives received in addition to base salary Chapter 7 Slide 19 Sports and Entertainment Marketing © Thomson/South-Western

Top Paid College Coaches NCAA Football School Conference Coach Salary Alabama SEC Nick Saban $5, 545, 852 Texas Big 12 Mack Brown $5, 392, 500 Arkansas SEC Bret Bielema $5, 158, 863 Tennessee SEC Butch Jones $4, 860, 000 Oklahoma Big 12 Bob Stoops $4, 741, 667 NCAA Basketball School Conference Coach Salary Duke ACC Mike Kryzewewski $7, 233, 976 Louisville Big East Rick Pitino $4, 078, 327 Kansas Big 12 Bill Self $4, 750, 763 Michigan State Big 10 Tom Izzo $3, 220, 769 Florida SEC Billy Donovan $3, 689, 200 Chapter 7 Slide 20 Sports and Entertainment Marketing © Thomson/South-Western

Attracting and Keeping Star Athletes n Competition for top athletes is fierce. n Recruiters compete with professional teams as well as with other colleges. n Recruiters need a well refined sales and marketing effort to attract talent to their schools. Chapter 7 Slide 21 Sports and Entertainment Marketing © Thomson/South-Western

n northwestern-wildcats-unionrepresentatives-head-congress Chapter 7 Slide 22 Sports and Entertainment Marketing © Thomson/South-Western

The Price for Top Musicians and Other Entertainers n Popular performers can attract large enough crowds to make an event profitable. n Popular celebrities help increase the advertising revenue of their television shows. Chapter 7 Slide 23 Sports and Entertainment Marketing © Thomson/South-Western

TV Actors Salaries 2013 Actor Show Salary/Episode # of 2013 episodes Ashton Kutcher 2. 5 Men $16. 8 mill $700, 000 24 Jon Cryer 2. 5 Men $14. 4 mill $600, 000 24 Mark Harmon NCIS $12 mill $500, 000 24 Mariska Hargitay Law & Order: SVU $11. 5 mill $500, 000 23 Sandra Oh, Ellen Pompeo & Patrick Dempsey Grey’s Anatomy $8. 4 mill $350, 000 24 Chapter 7 Slide 24 Sports and Entertainment Marketing © Thomson/South-Western

Lesson 7. 3 Customized Entertainment Goals n Define customizing. n Describe the financial impact of Baby Boomers on the entertainment industry. Chapter 7 Slide 25 Sports and Entertainment Marketing © Thomson/South-Western

Terms n customizing n impromptu n tiering Chapter 7 Slide 26 Sports and Entertainment Marketing © Thomson/South-Western

CUSTOMIZING PRODUCTS n customizing n changing a product to fit the needs or wants of a particular market Chapter 7 Slide 27 Sports and Entertainment Marketing © Thomson/South-Western

n impromptu n spontaneous and changing Chapter 7 Slide 28 Sports and Entertainment Marketing © Thomson/South-Western

Local TV American Style n Although local programming is less expensive to produce, it has fallen out of favor with major networks. n Local programming does not attract enough viewers to draw advertisers to cover the costs of running and producing the show – primarily only newscasts now Chapter 7 Slide 29 Sports and Entertainment Marketing © Thomson/South-Western

n Children’s Programming n Because hosts of locally produced TV shows had such a large impact on children, parents requested that hosts not endorse products. n Advertisers lost interest in sponsoring locally produced children’s shows. Chapter 7 Slide 30 Sports and Entertainment Marketing © Thomson/South-Western

n Sports Programming n Excessive salaries of sports figures have helped drive up the costs of television coverage of sporting events. n tiering n specific sports programs will be offered outside the basic cable or satellite package Chapter 7 Slide 31 Sports and Entertainment Marketing © Thomson/South-Western

Public TV and Radio n Public TV and Radio are viewer- and listener-supported. n programming is tailored to local audiences n Usually nonprofit organizations financed through grants, corporate donations & listener contributions Chapter 7 Slide 32 Sports and Entertainment Marketing © Thomson/South-Western

n Why is different TV programming shown in different cities or regions of the United States? Chapter 7 Slide 33 Sports and Entertainment Marketing © Thomson/South-Western

MARKETING TO BABY BOOMERS n Baby Boomers, born between 1946 and 1964, are one of the best-known market segments. Chapter 7 Slide 34 Sports and Entertainment Marketing © Thomson/South-Western

Boomers Won’t Retire n Baby Boomers have the discretionary income to pay for the products and services they desire. n Like: recreational activities, travel, personal fitness, all types of entertainment - from concerts & movies to the fine arts Chapter 7 Slide 35 Sports and Entertainment Marketing © Thomson/South-Western

Segmenting the Group n The U. S. population is aging. n Average in 1994 was 34 yrs & in 2035 it will be 39 yrs n Marketers will need to focus their efforts on this aging market. Chapter 7 Slide 36 Sports and Entertainment Marketing © Thomson/South-Western

Entertaining the Boomers n Baby Boomers are increasing their movie attendance. n According to “Reel Source” boomers account for more than 1/3 of all attendance at movies n Independent film studios are filling the niche & producing films boomers want to see Chapter 7 Slide 37 Sports and Entertainment Marketing © Thomson/South-Western

Understanding All Parts of the Group n Through 2020, Baby Boomers will continue to be a major target of entertainment marketing. n As the Boomer group is so large & diverse, marketing messages need to be developed for specific subgroups of Boomers. Chapter 7 Slide 38 Sports and Entertainment Marketing © Thomson/South-Western

n Why are Baby Boomers important to entertainment marketers? Chapter 7 Slide 39 Sports and Entertainment Marketing © Thomson/South-Western

Lesson 7. 4 Product Marketing Strategies Goals n List and describe the stages of the product life cycle. n Explain how products are positioned in the marketplace. Chapter 7 Slide 40 Sports and Entertainment Marketing © Thomson/South-Western

Terms n n product life cycle skimming price strategy penetration price strategy positioning Chapter 7 Slide 41 Sports and Entertainment Marketing © Thomson/South-Western

THE PRODUCT LIFE CYCLE n product life cycle 1. 2. 3. 4. Chapter 7 Slide 42 introduction growth maturity decline Sports and Entertainment Marketing © Thomson/South-Western

Introduction Stage n introduction stage n product is a novelty n only one brand of product is available Chapter 7 Slide 43 Sports and Entertainment Marketing © Thomson/South-Western

Price Strategy for Introduction Phase n Skimming Price Strategy n introduces new products at a very high price n Penetration Price Strategy n uses low pricing to help capture a large market share early Chapter 7 Slide 44 Sports and Entertainment Marketing © Thomson/South-Western

Growth Stage n Second part of product life cycle n target market purchases the product regularly n advertising focuses on customer satisfaction n competition increases Chapter 7 Slide 45 Sports and Entertainment Marketing © Thomson/South-Western

The Maturity Stage n third stage of product life cycle n sales are level or slowing down n marketing costs increase n sales prices often offered to hold off competition Chapter 7 Slide 46 Sports and Entertainment Marketing © Thomson/South-Western

The Decline Stage n sales decrease n alternatives include n n n drop a product sell/license Discount regionalize modernize/alter recommit Chapter 7 Slide 47 Sports and Entertainment Marketing © Thomson/South-Western

n What are the stages of the product life cycle? Chapter 7 Slide 48 Sports and Entertainment Marketing © Thomson/South-Western

POSITIONING A PRODUCT n positioning n used by a company to differentiate its products or services from its competitors’ products or services n status, price, brand recognition, quality, features & benefits Chapter 7 Slide 49 Sports and Entertainment Marketing © Thomson/South-Western

n List three ways a product may be positioned in the marketplace. Chapter 7 Slide 50 Sports and Entertainment Marketing © Thomson/South-Western

PERFORMANCE INDICATORS EVALUATED n Communicate the goals of the state fair. n Prepare an attractive document that incorporates the latest desktop publishing technology. n Create an original, appealing newsletter to increase awareness and attendance at the state fair. Chapter 7 Slide 51 Sports and Entertainment Marketing © Thomson/South-Western

n Understand the comprehensive nature of this project and its purpose. n Select graphics and fonts that appeal to the intended audience. n Produce a final product that indicates a clear thought process and an intended, planned direction with formulation and execution of a firm idea. Chapter 7 Slide 52 Sports and Entertainment Marketing © Thomson/South-Western

THINK CRITICALLY 1. Why does the state fair need multiple forms of publicity to increase attendance? 2. What promotional item could be included in your desktop publishing document to help increase the attendance at the state fair? Chapter 7 Slide 53 Sports and Entertainment Marketing © Thomson/South-Western

3. How can the state fair measure the effectiveness of your publication? 4. What types of graphics would be appropriate for this publication? Why? Chapter 7 Slide 54 Sports and Entertainment Marketing © Thomson/South-Western