Sports and Entertainment Marketing © Thomson/South-Western ChapterChapter The Marketing Game Plan 6.1 The Game Plan 6.2 Entertainment and Sports Strategies 6.3 Mapping the Plan 6

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 2 Winning Strategies Anschutz Entertainment Group (AEG) is a key player in movie exhibition AEG dominates specific markets second largest promoter of live events in the U.S. AEG sells more than $500 million in tickets annually AEG

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 3 Lesson 6.1 The Game Plan Goals Explain the difference between marketing tactics and strategies. Discuss the importance of planning to stay ahead of the competition.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 4 Terms tactic strategies marketing intelligence trade shows

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 5 MARKETING TACTICS Nike wants to be number one in their market. Nike needs to differentiate itself from Adidas, the market leader.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 6 Tactics First tactic the way a product or service is differentiated in the minds of customers from other competing products or services Ex. Ritz-Carlton wanted to differentiate by targeting wealthy people. Burger wanted to differentiate by targeting vegetarians. the most effective tactics are developed by salespeople tactics can work their way from salespeople to upper management

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 7 Strategies strategies the process by which tactics are implemented Ex. Ritz-Carlton partnered with Bulgari, fine Italian jeweler to change name and open the lavish Bulgari Hotels and Resorts Burger king sells veggie burger

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 8 What is the difference between a tactic and a strategy?

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 9 BEATING THE COMPETITION “Winning the game” in business means gaining market share over competitors and making a profit. requires depth of competitive knowledge

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 10 What Information is Needed? marketing intelligence information gathered about competitors

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 11 pricing is very important to customers the prices of competitors can influence buying decisions Pricing

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 12 marketers need to make the product purchase convenient for customers Distribution

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 13 knowing the product and service offerings of competitors can help a business determine how to differentiate its products Product/Service Management

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 14 promotional competitive analysis reveals: the product characteristics emphasized by competitors target customers promotional budgets Promotional Efforts

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 15 Finding the Information Marketing information is critical to help anticipate future moves of the competition.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 16 efficient searching leads to effective results company name keywords internet

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 17 combining the insights of a variety of salespeople can provide valuable competitive information observations

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 18 major events where people in a related industry meet to show their products exchange ideas learn about the latest trends valuable source of competitive information trade shows

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 19 customer feedback is critical for fine tuning marketing plans can provide competitive information customers

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 20 Give three examples of marketing intelligence information that might be collected by a movie theater.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 21 Lesson 6.2 Entertainment and Sports Strategies Goals Explain the importance of learning from customers. Discuss sports marketing strategies. Discuss entertainment marketing strategies.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 22 Terms marketing plan interpretation applied research touchpoints

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 23 DATA-DRIVEN DECISIONS marketing plan a document that describes the tactics and strategies that will be used to market the product or service

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 24 the facts and recorded measures that have been gathered raw data

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 25 Importance of learning from customers Determining Customer needs & wants using proper Applied research touchpoints interpretation explaining the information so that it has meaning drawing conclusions that relate to the defined marketing research problem Gathering data and transforming it into usable info such as charts, graphs, etc

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 26 Applied Research applied research conducted to solve specific problems touchpoints the points at which the business makes contact with the customers – where they are collecting data web site visits s phone calls advertisements one-on-one sales pitches

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 27 SPORTS MARKETING STRATEGIES Fans are necessary for the longevity of a team. Using research to form the right tactics to attract fans is a challenge for teams. Attract them to watch games in person, on TV, or motivating them to buy merchandise.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 28 Fans Rule Competition for fans is fierce. Adidas and Nike have different tactics and strategies to compete for soccer fans. Adidas provides soccer balls for the World Cup and promotes customizable soccer cleats. Nike is filling a niche for street-ready soccer merchandise and is sponsoring a number of major international soccer teams.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 29 What drives professional sports teams’ marketing plans? Explain why.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 30 ENTERTAINMENT MARKETING STRATEGIES The movie and music industries use many of the same strategies used in sports marketing to attract customers. Determining the new tactic first and then figuring the strategies that will drive sales is the key. Controversy, concert pricing strategies, & differentiating

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 31 Capitalizing on Controversy Sony carefully developed a tactic and a strategy for promoting The DaVinci Code. provided a website for religious dialogue avoided overexposure prior to the movie’s release

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 32 Concert Pricing Strategies Industry consolidation has lead to decreased competition therefore increased prices. Declining profits are prompting concert promoters to re-evaluate pricing strategies such as cutting extra fees. Indoor concerts are more economical to produce than outdoor concerts. A smaller indoor concert may be more profitable than a larger outdoor concert.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 33 A Little Music with Your Coffee? Milkboy boy in Ardmore & Philly always has local performers. Starbuck’s Entertainment connects Starbuck’s brand with entertainment By 2005, Starbucks sold 3.5 million CDs.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 34 Lesson 6.3 Mapping the Plan Goals Explain how marketers determine direction and focus for a marketing plan. List and describe the components of a marketing plan.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 35 Terms mission statement mass market product portfolio test marketing

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 36 KNOW WHERE YOU ARE HEADED mission statement identifies the nature of the business and the reason it exists All tactics and strategies should be built around the mission statement.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 37 A Sense of Direction mass market a broad group of customers

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 38 all the products a company has available at any one time test marketing where the sales potential for a new product is tried in a small market prior to its final release product portfolio

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 39 Explain the importance of a company’s mission statement to the marketing plan.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 40 THE PLAN The marketing plan is a detailed document that further provides a detailed description of how the tactics and strategies will be implemented.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 41 Components of a Marketing Plan A marketing plan should be guided by the current and future needs of customers. Three main sections Analysis Strategy Implementation

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 42 The Mission Statement The marketing plan must be in agreement with the mission statement. Marketing Information Information is gathered, analyzed, interpreted and used to make business decisions. The Tactic describes product or service differentiation should pinpoint a gap that is not be filled by another product or service Analysis

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 43 describes the marketing mix – product/service, price, promotion, distribution Product/Service the identified need is the basis for the development of the product or service The Distribution System describes how the product or service will be made available to customers Strategy

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 44 The price must be set where revenues will be maximized to cover all costs and provide a profit. Strategy Continued Promotional Strategies how the product will be positioned in the minds of customers advertising publicity sales promotion personal selling Pricing

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 45 disclosure of all expected costs and revenues might indicate need for additional funding Risk Management outlines possible risks and strategies for minimizing the risks Strategy Continued Financing

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 46 Timeline start with completion date and plan backwards specify event sequencing Assignments of Responsibility specify who is responsible for each component of the plan Internal Communication System define how all key organizational members will be kept informed of the plan provide a feedback mechanism Implementation

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 47 Implementation Continued Selling defines how direct sales will be handled Review and Evaluation define mileposts for progress checks of the plan

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 48 Look to the Future Organizations should have future products planned while current products are still experiencing strong sales. Marketing plans require periodic revisions.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 49 Why must the marketing plan include intervals for review and evaluation?

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 50 PERFORMANCE INDICATORS EVALUATED Develop a written business plan for a start- up business. Identify the customer base and demographics for the target market. Demonstrate knowledge and understanding of entrepreneurship.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 51 Demonstrate effective persuasive and informative communication and presentation skills. Identify customer relations and promotion related to successful businesses. Analyze financial data and determine appropriate pricing strategies. Communicate research in a clear and concise manner both orally and in writing.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 52 THINK CRITICALLY 1.Why is a detailed business plan so important when starting a business that offers a new product or service? 2.Why is the Executive Summary the most important part of the business plan?

Sports and Entertainment Marketing © Thomson/South-Western Chapter 6 Slide 53 4.What is the value of surveying the target market when preparing a business plan? 3.Why is it important to look at the competition when preparing a business plan?