What is Sports and Entertainment Marketing? Mr. Sherpinsky's SEM Class 1 What is Sports and Entertainment Marketing? 1.1 Marketing Basics 1.2 Sports Marketing 1.3 Entertainment Marketing Sports Entertainment Marketing

Thinking Critically Read: Winning Strategies Page 3 Answer Questions Explain the relationship between persistence and success indicted in article An entrepreneur is someone who takes risks to start a new business. How is Michelle Kwan’s father an entrepreneur?

Lesson 1.1 Marketing Basics Goals Describe the basic concepts of marketing. Explain the marketing mix. Define the six core standards of marketing.

Terms marketing marketing mix product distribution price promotion discretionary income

Class Discussion Name examples of goods and services consumers demand in the world of sports and entertainment

Opening Act Name your favorite commercial Are any famous celebrities in the commercials cited? Why do companies spend large sums of money to have famous people endorse their products?

What is Marketing? marketing the creation and maintenance of satisfying exchange relationships

Video Moment:

Satisfying Customer Needs identify your customer and the needs of your customer develop superior products operate your business profitably

What is Marketing? (Defined in Depth) Creation suggests that marketing involves product development Maintenance indicates that marketing must continue as long as a business operates Satisfaction implies that marketing must meet the needs of both businesses and customers when exchanging products or services Exchange relationship is when both give and receive something of value

Sports and Entertainment Marketing Marketers of sports and entertainment marketing must assess and monitor consumer demand the competition the financial valuation of the goods and services they offer

What is marketing?

THE MARKETING MIX marketing mix (4-Ps) how a business blends the following four elements product place (distribution) price promotion

Mr. Sherpinsky's SEM Class THE MARKETING MIX product what a business offers to satisfy needs goods and services the locations and methods used to make products available to customers place (distribution) Marketing is used 1st to find out if there is demand for the product. Packaging is then considered to make the product appealing to the consumer. They must answer the following questions: Where to sell? What kind of location to sell the product? Where to place the product in the store? Sports Entertainment Marketing

Mr. Sherpinsky's SEM Class THE MARKETING MIX price amount customers pay for products ways to make customers aware of products encourages customers to buy promotion To determine the price of a product a marketer considers three questions: How much are customers willing to pay? Is the price competitive with other products? Can the company make a profit? Break-even point is the amount of money a company has to make on a product to pay for its cost. Promotion’s focus is to make potential consumers aware of the product. The following are ways to increase consumer awareness: Offer discounts Coupons Rebates Sales Bundeling Public Relations (PR) Media Events (ex. parties, award shows, charatiy events. Sports Entertainment Marketing

Marketing Mix Considerations discretionary income the amount of money individuals have available to spend after paying for necessities

Marketing Mix Considerations Striking the right balance between product, price, place (distribution), and promotion is important.

Partner Activity: Cyber Marketing Think Critically: Visit the home pages of at least three (3) movies that have related merchandise for sale Determine what information is collected from customers Question: How can the marketing information gathered could be used in the future to promote and sell other products.

Closer Look: Superbowl Sports event of the year: Superbowl Billion-dollar event results in large sums of money from sponsorships to ticket sales Actual ticket prices range from $400 to $600 Individuals attending spend much more… Lodging Travel Restaurants Tourism Shopping

A Marketing Mix Example in the Sports Industry The product the Super Bowl offers is a game between the best teams of the AFC and NFC. Consumer costs extend beyond ticket prices and include travel, food, and lodging expenses. Place or distribution includes the location of the host city and arena ticket sales. Promotion involves media outlets and related-product contests.

A Marketing Mix Example in the Entertainment Industry State fairs need to Product: Must appeal to rural and urban residents Livestock shows, domestic and commercial exhibits, carnivals, and music Price: Family-type event admission price is important Charge enough to remain fiscally stable while still attracting attendance Promotion: Advertise about the fair Ads on radio, newspapers across state, TV may be too expensive Place: Determine fair location and outlets for tickets Central location, tickets available at gate or online or outlets

What are the elements of the marketing mix?

Understand the Growth of the Sports Industry Sports are the 11th largest businesses of all U.S. industry groups Nation’s output for sports goods and services is estimated at $213-350 billion annually Sports Managers measure growth in the sports industry by: Team Operating Expenses ($22.9 Billion) Attendance Figures ($26.7 Billion) Media Coverage (Broad Cast rights $6.9 Billion) Employment Figures (4.5 million jobs) Global Markets (Advertising $27.4 Billion) Sports Goods ($36.1 Billion) Sports Information ($ 2.3 Billion) Sponsorships ($6.5 Billion)

Growth of Sports Industry Media Coverage is Increasing 200 million people watched NBC coverage of the Summer Olympic Games and 3.7 billion people watched worldwide ESPN, the original sports-only network launched in 1979, reaches some 76 million homes with its 4900 hours of sports programming and, ESPN2 reaches 65 million viewers. $2.3 billion to secure the broadcast and cable rights for the Olympic Games in 2004, 2006, and 2008 and additional $2.2 billion for 2010 and 2012.

Growth of Sports Industry Media Coverage is Increasing Overall for the week, NBC averaged 26.7 million viewers in primetime during the Olympic Games. $2.64 billion paid by NBC and Turner Sports to televise NBA contests, $18 billion paid by the networks for the NFL, $2.5 billion for post season MLB New sports networks, such as the College Sports Television, Tennis Channel, Blackbelt TV, and the Women’s Sports Network Internet, satellite stations, and pay-per-view cable television are growing in popularity

Opportunities in the Sports Industry There are 13 major career areas in sport: event suppliers, event management and marketing, sports media, sports sponsorship, athlete services, sports commissions, sports lawyers, manufacturers and distribution, facilities and facility suppliers, teams, leagues, college athletics, and finance Marketing & Public Relations Professional Sports Intercollegiate Sports Youth Sports Olympic Sports Organizations Sport Commissions Amateur Sports Corporate Sports Marketing Sports Marketing Firms Licensing Firms

Baseball World Series Brochure- SEM Omaha NE Creative Moment: Baseball World Series Brochure- SEM Omaha NE

CORE STANDARDS OF MARKETING

Distribution Distribution involves determining the best way to get a company’s products and services to customers.

Marketing-Information Management gathering and using information about customers to improve business decision making

Pricing the process of establishing and communicating to customers the value or costs of goods and services

Product/Service Management designing, developing, maintaining, improving and acquiring products or services to meet customer needs

Promotion using a variety of communication forms, including advertising, to distribute information about products, services, images and ideas to achieve a desired outcome

Selling any direct and personal communication with customers to assess and satisfy their needs

Financing A company must budget for its own marketing activities and provide customers with assistance in paying for the company’s products and services.

List and provide an example of each core standard of marketing for a movie operation. Distribution? Different chains? Frank’s, AMC, IMAX, etc

Examples of Cores with Movies Distribution MIM Pricing Product Management Promotion Selling Financing Movie Chains Who and where? Targets, Channels, Audience No Passes Genre, Series, Trilogy When do we Advertise? Early, sales, momentum Testimony viewers/critics Cost of marketing Ads, posters, commercials

Lesson 1.2 Sports Marketing Goals Define sports marketing. Explain the value of sports marketing to the economy.

Terms demographics sports marketing gross impression

WHY SPORTS MARKETING? Spectators of sporting events are consumers of a wide array of products From apparel to athletic equipment to food items and automobiles Common traits of spectators are important demographics common characteristics of a group age, marital status, income, education sports marketing using sports to market products

New Sports, New Opportunities continual innovation provides new opportunities extreme sports arena football

Gross Impression gross impression the number of times per advertisement, game, or show that a product or service is associated with an athlete, team or entertainer Question: How many times do you need to see a message to make it part of your memory?

Timing Fans want products and services that identify them with winning teams and athletes. Marketing efforts may need to be tweaked based on changes in winning trends.

Why are gross impression and timing important in sports marketing? Both are important in cognitive processing to deepen memory

THE VALUE OF SPORTS MARKETING Sports marketing is a multi-billion-dollar global industry that has a definite impact on the economy. Name some ways that sports impact you and your family?

Emotional Value Emotional connections to teams motivate fans to buy tickets to games. Some fans live for the weekends Emotions compel fans to spend or act Purchase tickets or other sport-related merchandise People spend discretionary income willingly if their heart is captured Common for marketers to target emotions

So Many Channels High profile sporting events generate strong promotional revenues for broadcasters. 100s of TV and Radio Stations and networks must capture the largest audience for the least amount of money 1960-2000: Sitcoms 2001-2008: Reality shows 2009-today: Sports events

Name three ways that sporting events help boost the local economy and/or national economy.

Lesson 1.3 Entertainment Marketing Goals Define entertainment. Describe the impacts of advances in entertainment technology on entertainment marketing.

Terms entertainment marketing entertainment ratings

ENTERTAINMENT FOR SALE entertainment marketing influencing how people choose to spend their time and money on entertainment

What Exactly is Entertainment? whatever people are willing to spend their money and spare time doing rather than participating in ….

EVOLUTION OF ENTERTAINMENT AND ENTERTAINMENT MARKETING At the beginning of the twentieth century, audiences needed to travel to the entertainment source. Audience feedback was instantaneous and live. Technology distanced entertainers from their audiences. Internet Feedback (How) Hits…

The Beginning of Change Disneyland represented a new approach to the marketing mix of entertainment.

The Big Eye in Every Room Early Days of Television and Marketing TV changed the marketing of entertainment in a profound way. In 1945, Only 9 TV stations and 7000 TVs existed 25,000 people came to Gimbel’s in Phila to see TV In 1946, MBC and Gillette staged 1st Sporting Event (heavy-weight boxing) Television’s Increasing Influence All major corporations lined up to use TV Charged by influence and ratings ratings the number of viewers the programming attracted

Early Days of Television and Marketing In 1956, 82% of all TVs tuned into The Ed Sullivan Show, weekly Sunday-evening variety show. Launched Big Name stars: Elvis Presley The Beatles Set the standard for marketing Talent displayed to millions by using technology for distribution

Change Accelerated Technology improvements, including the internet, have facilitated distribution of sports and entertainment to the masses.

Technology and Customer Feedback Audiences can use a variety of communication technologies to provide entertainment feedback.

Name a few benefits of television to marketers and advertisers.

Review Textbook Review pages 23, 24 Class Discussion, Pages 25 & 26 Student Project: Core Marketing Analysis Project 6 Products (Group Activity) Respond to the item listed Will present analysis to the class

CORES Project For your product: Give 10 ways to Distribute Set a local unit price Identify 3 possible shortfalls of your product and list plans for improvement Identify 5 forms of promotion for your product Create a slogan/catch phrase to “sell” your product