History of Sports and Entertainment Marketing Similarities in Marketing 2 Differences in Marketing

Sports and Entertainment Connections What do sports and entertainment have in common? They have thrilled and entertained people for centuries—since the ancient Olympic games and Greek plays. 3

Marketing Today vendors Sports and entertainment vendors compete for a share of the money people spend on recreation. vendors sellers of products 4 products Sports and entertainment marketing directs consumers toward sports and entertainment products. product a good or service that any for-profit industry sells to its customers

Marketing Similarities The marketing of sports and entertainment products differs from marketing traditional products in the following four areas: 5 endorsement approval or support of a product or idea, usually by a celebrity Product –Endorsement –Core product –Ancillary product –Revenue continued core product the main product, such as sports event, movie, stage show, or book ancillary product a product related to or created from the core product revenue gross income

Marketing Similarities Place 6 piracy the unauthorized use of another’s music, movies, or copyrighted material continued royalty a payment for material that has been copyrighted, or legally declared as belonging to the creator continued Price –Piracy –Royalty –Copyright

Marketing Similarities Promotion –Product tie-in –Cross-promotion 7 product tie-in use of ancillary products such as merchandise as promotional tools cross-promotion any form of communication through which one industry relies on another industry to promote its product continued

Marketing Similarities Convergence Convergence expands the potential for profit in sports marketing and entertainment marketing. 8 convergence the overlapping of product promotion synergy a combined action that occurs when products owned by one source promote the growth of related products synergy Convergence and cross- promotion help to develop synergy.

Different Players, Different Games The differences between sports and entertainment can be found in three areas: 9 Consumer loyalty Product Revenue stream

Differences in Consumer Loyalty consumer loyalty If sports fans feel their team is trying to win, the team can retain its consumer loyalty. 10 consumer loyalty consumers’ attitude that occurs when they are happy with a company and become repeat customers The entertainment consumer is not motivated by brand or team loyalty, but by a desire for satisfying entertainment.

Differences in Revenue Stream sponsorship Sports franchises earn revenue from sponsorship. 11 sponsorship the promotion of a company in association with a property Sports franchises also earn revenue from advertising and broadcast rights.