What is Sports Entertainment & Marketing 1.2 Sports Marketing Riverton High School Mrs. Morrey

OBJECTIVE Define Sports Marketing Explain the value of Sports Marketing to the economy Understand demographics and gross impression

Question… Why are individuals and families willing to spend a lot of money to attend events and purchase related merchandise?

OPENING ACT Sports are big business at many universities. Basketball alone has become a big money maker for many colleges. For the 2004-05 school year, the University of Arizona generated a revenue of $16.6 million dollars. The Wildcats have had sell-out games for almost 20 years. Courtside season seats have sold for as much as $30,000. Big business can mean big salaries for college coaches. Tom Crean eared $1.65 million dollars in 2005 for his seventh season as the coach at Marquette. Crean was one of the highest paid college coaches. John Calipari University of Kentucky $5.4 million Rick Pitino University of Louisville $4.8 million Mike Krzyzewski Duke University $4.7 million Billy Donovan University of Florida $3.6 million

Question… In a partnership, discuss whether successful college coaches should earn more than $1 million a year. Write down your ideas and thoughts and be prepared to explain your position.

History of Sports Marketing First known athletic event with paid admission—Baseball game, Long Island, New York in 1858, spectators charged .50 for admission. Coca-Cola endorsed Summer Olympics in 1928. First pay-per-view event—”Thrilla in Manila” with Muhammad Ali taking on Joe Frazier in 1975. ESPN made its debut in 1979.

Sports Marketing Consumers  Use a product! Marketing of a sports team, league or venue is… Marketing OF sports! Marketing of non-sports products or services during a sporting even is.. Marketing THROUGH sports! Consumers  Use a product! Customers  Purchase a product!

Why Sports Marketing? Marketing Information Management Spectators of sporting events are the potential consumers/customers of a wide array of products and services. SPORTS MARKETING ENCOMPASSES MORE THAN JUST A SPORTING EVENT! Sports Marketing is using sports to market products! What are some products that consumers may purchase that are associated with sporting events/teams?

Products Associated with Sports

DEMOGRAPHICS What is DEMOGRAPHICS? Common characteristics of a group, such as age range, marital status, gender, ethnic background, income level, and education. Common interests with in a specific group of people! Teenagers Common Interests? Girls/Boys Married Individuals

Goal of Sports Marketing… Use the right MARKETING MIX (4 Ps) to meet customer needs while generating a profit! To do this, marketers must consider three factors. New Opportunities Gross Impression Timing

New Opportunities Product or Service Management Sports marketers must continually look for new ways to appeal to customers. What are some examples of new sports that are growing in popularity, providing new opportunities for fans and consumers?

Arena Football Created in 1987 $10-20 ticket price Fast—No “time-outs” High Scoring

Skijoring Sledding and Cross Country Skiing

Headis Tennis and Soccer/Volleyball

Kronum Football, Handball, Basketball and Rugby

MMA—Mixed Martial Arts Full contact individual combat sport which include aspects of several other combat sports and martial arts

Joggling Jogging and juggling

Octopush Water Hockey—Hockey puck is pushed around on the bottom of a swimming pool

Gross Impression Marketing Information Management Gross Impression is the number of times per advertisement, game or show that a product or service is seen or associated with an athlete, team or entertainer. Where might you find GROSS IMPRESSION associated with a product or service at a sporting event? Why is GROSS IMPRESSION important in Sports Marketing?

Gross Impression Logos on uniforms Scoreboards Signs around field/arena Programs Commercials Jumbotron Concessions Gross Impression keeps the product upfront and in the minds of sports fans!

Gross Impression How can gross impression make you hungry? How can gross impression influence your athletic apparel purchases? How can gross impression impact you emotionally to contribute money to a worthwhile cause? Can gross impression be made with the uniforms players wear?

Timing Timing is extremely important when marketing sporting goods. Sporting Seasons Winning Teams Popular Sports Marketers must be aware that success leads to increased competition. If one major athletic company has a successful marketing campaign, competitors are likely to increase their advertising efforts.

Everyone Loves a Winner Why is timing so important in Sports Marketing? Immediately following a national or world championship, what is made available? What merchandise would be good to sell at a concert? “Get it why it’s HOT!”

Timing is Everything… Sports and entertainment related merchandise will sell best immediately BEFORE, DURING, and AFTER the event while fans are emotionally motivated to buy.

Marketing Myths Major companies pay millions of dollars to sponsor national sporting events. Even though a company may purchase the exclusive rights to advertise during an event, competitors can advertise on local radio stations, competing networks, and billboards. Fans soon become confused about who the real sponsor is. The practice by which a rival company attempts to associate its products with an event that already has official sponsors is sometimes referred to as ambush marketing. It takes place when organizations participate in events to some degree rather than sponsor the events. For example, Coca Cola might pay to be the official soft drink sponsor of a skating competition. However, Pepsi can pay to display an ad on the wall around the rink. Think Critically… Companies that use ambush marketing obviously think it is beneficial. In the long run, is it? How might it eventually harm a company?

Name three ways that sporting events help boost the local economy. INTERMISSION Name three ways that sporting events help boost the local economy.

Value of Sports Marketing Different Industries Impacted by Sports… Hotels Restaurants Sports Bars Service Stations Shops Parking Lots Security Maintenance Crews Coaches Facility Managers Transportation

Emotional Value of Sports Marketing Sports fans have emotional ties to their favorite teams. Many sports enthusiasts live for the weekend to see their favorite team in action. Emotions such as affection and passion often compel fans to buy tickets and other related sports merchandise. What merchandise related to this sporting event might consumers purchase?