Chapter 3 Sport and Entertainment Industries

What is an industry? A group of organizations involved in producing or handling the same type of product or service. Industries can be further divided into smaller subdivisions known as industry subdivisions

The Sports Industry Advertising Spectator Spending Sporting Goods Team/League Operating Expense Gambling Travel Professional Services Sport Medicine Licensed Goods Media Broadcast Rights Sport Sponsorship Facility Construction Multimedia Endorsements Internet

Industry Standards industry standards  the guidelines and goals set for different entertainment industries industry norm  the average expectation within an industry

Industry norms  What is the difference between an industry norm and an industry standard? Norms are average expectations while standards are guidelines

 Why is it important for businesses to understand consumer behaviors and spending habits? Because of high competition levels

What is a trend? A trend is the latest demand to consumer response

Marketing Decisions for an Industry.  What three things are marketing decisions based on?  Standards  Norms  Trends

Trends in College Sports Industry trend to build college coaches salaries. Expanding stadiums and attracting major sponsors More $$$$ coming in

Largest Stadiums in College

The Concert Industry Fewer stars have universal appeal Large subdivisions Must make adjustments for expected trends.

Athletes Trends Websites Facebook Twitter YouTube

3.2 Special Marketing Tools

Warm-Up Come up with a list of sports or entertainment stars that you feel would be good public speakers. What would make them good public speakers?

Goal Explain how a sports or entertainment figure can be successful in the motivational lecture and in the publishing industry.

Motivational Speaking and Writing Public speaking and writing has become a natural job extension for many celebrities and athletes Depends on more then just ability in your industry. Public Speaking is a major business in the sports and entertainment industry

Successful Speaking Successful speakers have  a message that is interesting repeatedly  well written speeches  excellent communication skills  strong promotional campaigns  an agent

More Extensions Broadcasting has become the latest trend It is difficult for athletes to remove themselves from competition and their sport Why can a move to broadcasting be a natural move for athletes?

Highlight an event Keynote Speakers can highlight an event What is a keynote? is the principal underlying theme of a larger idea

The Price of Motivation All American Speakers Bureau What do you think a speaker costs Motivational Speaking and Writing

Writing Their Stories When an athlete’s story has a broad appeal, more people are likely to buy their book. Can set off a national publicity campaign. It is a current trend in the sports industry

The Process ghostwriter  a writer who takes someone’s experiences and ideas and commits them to paper on behalf of that person

 Royalty  a percent of the sale price of each book that is paid to the author literary agent  plans the marketing and promotional campaign for an author  compensation is a percent of book sales

Camps and Clinics Section 3.2

Warm-Up Think about a camp or clinic you have attended. Why did you attend the camp? What did you like best? What did you not like? Were there any celebrities?

Goal Explain the purpose of and promotion methods used for sports camps and clinics.

What is in a camp? Camps cover an extended period of time. They provide athletes with a variety of skills and activities to strengthen ability. Usually high profile celebrities or athletes are associated with the camps. This helps attract customers. Every year parents make sizable expenditures to send their children to sports camps and clinics.

Sponsorship- help cover overhead Generally, a sports camp sponsor can expect the following: visibility and recognition of sponsorship advertising space in the camp’s publications sponsor marketing materials on display at camp potential product sales at camp

Industry Standards What should a camp have? Planned Activities Good Food Facilities Maybe A/C Good Location (distance) Competent Staff Gear

Clinics clinics  Focus on single skills  shorter duration  limited enrollment  help capture a larger fan base for the sport

Types of Clinic Clinics to produce profit Promotional clinics/events Beginner clinics

Advertising What outlets can be used? Newsprint Magazines Online/ Mailings and Brochures Television Radio

Good Marketing Equals Success Geographic Importance of marketing a day vs. night camp. You may be wasting your time marketing What information needs to be on a brochure? What should you do once a camp is over?

Staying Local It is important to be visible and advertise in the local community. What is the cheapest form of advertising? Word of Mouth

Travel and Tourism Chapter 3.3

Goals Explain the role of travel and tourism in sports and entertainment. Discuss the roles of resorts and theme parks.

Traveling Tourism is the world’s largest industry We will define tourism as traveling for pleasure or enjoyment It is the number one, two, or three industry for most states.

Attracting Tourists The travel and hotel industries are closely related to the sports and entertainment industry.

Impacts What events can cause an impact to the economy of a city? What attractions can cause an impact to the economy of a city? In what ways is the local economy impacted?

Super Bowl? The biggest beneficiaries of Super Bowl XL spending were the region's hotels, the casinos and other entertainment spots, and food and drink providers who nabbed 54% of the $170 million in direct spending by out- of-town visitors.

Direct Impact-total of new spending from an event Indirect Impact- money spent locally continues to be spent locally

Vacation What are some words that you associate with a vacation.

Niche Travel Travel planned around special interests. What type of special interests could travel be planned around.

A Hall of Fame As a travel destination a hall of fame can serve a basis for promoting tourism. Attracting visitors is critical to keeping a hall of fame alive.  Word of mouth is the most effective promotion for a hall of fame What hall of fames do you know of?

Resorts and Theme Parks What do you think the differences are between Resorts and Theme Parks?

Characteristics theme parks  family-oriented destinations resorts  aimed at adults

Theme Park Central Orlando, Florida has 95 attractions and hosts about 50 million visitors annually. Disney tries to be a comprehensive provider of all the products and services a visitor may require during their stay.

Encore 3.3 Page 77 #1 & #2 Question and Answer #3 & #4 Answer Only (#4 write a few sentences of what your state has to offer highlighting three specific things.)

Worldwide Sports and Entertainment Events Chapter 3.4

Objectives Describe the international role of sports and entertainment marketing. Discuss the challenges of international marketing.

Warm-Up Use the graphic organizer that you were provided. Fill out a word or short phrase for each letter in the alphabet. Use words that you can associate with “international sports and entertainment”

17. Yao Ming Earnings: $26.3 million Sport: Basketball Nationality: Chinese Born: September 12, 1980 After several years on the sidelines, Reebok is finally putting Yao to use in its advertising for the brand. The Houston center's other big deals include China Unicom, Garmin and Upper Deck

Other International Athletes Top List

Global Sports and Entertainment Like tourism sports and entertainment is a worldwide industry. As the world economy grows sports and entertainment marketers are looking over seas to distribute their products and services.

An Expanding China A population of over 1 billion potential consumers. Economy has grown by more then 10% a year since the 1980’s, and the number of middle class workers has expanded. What does this create?

Expanding India India continues to transition from a third- world economy to one of the fastest growing economies in the world. Increased wealth of the population allows for greater consumption of sports and entertainment.

Theme Parks Between 1990 and 2006 more then 2,500 amusement parks in China. During that time fewer then 200 mid-sized parks opened in the US. Many parks have failed due to poor marketing and planning and due to excess competition.

Vocab. joint venture  when two groups (including businesses and governments) share the costs and profits of a business infrastructure  water, sewer, roadways, and all other underlying framework

Disney Worldwide leader in theme parks. Hong Kong Disneyland opened September, 2005 Was a joint venture with the government The government was responsible for the infrastructure. What are the challenges this park faces?

Globalization What is globalization? International economic relationships with goods and services that flow quickly around the world.

The World Cup Most identifiable sport in the world. Soccer is a dream event for international marketing. Each year that a World Cup is held Nike and Adidas make an estimated 1.5 billion in soccer sales. Adidas gets special rights as a sponsor.

Current Trends Current world sports has much to do with political history of the last 50 years. After World War II, the Japanese became quite interested in baseball. In 2006, the World Baseball Classic was held.  $50 million to produce  $15 million profit