Importance of Sports and Entertainment Marketing

Do Now How do you think sport differs from entertainment?

What is an Industry? A group of organizations involved in the producing or handling of the same product or type of service Industries can be further defined by subdivisions

Examples of Industries The Music Industry The Hotel Industry Subdivisions Country Rock Hip-Hop R&B Subdivisions Full service (resorts) Limited service Economy Extended Stay

Examples of Industries The Television Industry The Sports Camp Industry Subdivisions Reality TV Talk Shows Drama Sitcom Subdivisions Football Camp Cheerleading Camp Dance Camp Basketball Camp

The Sports Industry Sport: source of diversion or physical activity engaged in for pleasure

The Entertainment Industry Entertainment: any activity which provides a diversion or permits people to amuse themselves in their leisure time Examples: Television Live Shows Movies Music Books Magazines

How Are They Different? Sports Entertainment Usually planned with a script or program Consumers are not motivated by brand or team Consumers do not remain loyal to a brand Spontaneous/not planned Unpredictable outcome Involves competition Fans support one team

The Sports and Entertainment Industries Today these industries are two of the most profitable in the US Fans spend BILLIONS on recreation and related products every year

What is Sports Marketing Applying marketing principles and processes to promote sports products Sports equipment Sports apparel Sports drinks RG3 Adidas "Fate" Under Armour- This is How We Run

What is Sports Marketing The marketing of non- sports products through association with sports or sports figures Papa John's and the NFL Hanes - Sports and Entertainment Head and Shoulders Gillette - Lochte

Sample Sports Marketing Ads

What is Entertainment Marketing? BK AD Marketing of entertainment products or using entertainment to attract customers

Dr. Pepper/ Iron Man

Growth of the Sports Industry The sports industry generates about $200 billion a year Growth is measured in….. 1. Event Attendance Figures 2. Media Coverage (ESPN, Golf Channel, NFL Network) 3. Employment Figures (4.5 million jobs and growing) 4. Global Market Expansion

Growth of the Entertainment Industry In 2011 the film industry grossed $10.6 BILLION The largest grossing movies were “The Avengers" ($617 million) “The Hunger Games" ($407 million) “Dark Knight Rises" ($359 million)

Trends in Sports and Entertainment 3D movies (Piranha 3D, Toy Story 3, Avatar) Midnight releases (Twilight Saga) The use of social networks (Twitter, Facebook)

Economic Concepts and Their Impact on the Industry

Competition The struggle among companies for scarce customer dollars Based on the theory that only the strong will survive Those organizations with the best products at the best price will stay in business

Types of Competition Price Competition: when a business uses the price of their product to compete in the marketplace Non-Price Competition: when a business uses other product features (such as quality, image or service) to compete in the marketplace

Economic Resources All of the things used in the production of a good or service Land – anything from the earth or sea Labor – the people who work to produce the good or service Capitol – the money, buildings, hardware, tools, etc. used in production

Factors that influence demand for a Sports or Entertainment event Price of the tickets How often the event takes place How much promotion is used People involved in event (key players or performers)

Assignment Situation: You are to assume the role of director for an amateur tennis tournament. Because of the tournament’s size, two different tennis clubs and several hotels within your town must be used. The town mayor is unsure about presenting this project to the town council Activity: Convince the town mayor to support hosting your event Evaluation: You will be graded on how effectively you cover the following topics: Explain the economic impact of sports and entertainment events on a community/area Describe factors that influence the demand for services Explain the concept of competition Explain the concept of economic resources Describe trends in sports and entertainment marketing