History of Leisure What do sports and entertainment have in common? Marketers have always sold participation in these events Consumers: people with free time, discretionary income and interest in entertainment Only for the wealthy 1800s Tennis, ballet, horse races, theater Unions earned better hours, pay=option to attend sporting events for lower and middle class

Entertainment for Everyone What made it possible? Technology Unions Public transportation Film industry Thomas Edison: Kinetoscope Famous entertainers End of WWI: 1st international movie star: Mary Pickford Babe Ruth Sports and Entertainment: Role Depression: Welcomed distraction WWII: Relief from the Trauma

Development of S&E Marketing William “Bill” Veeck Owned baseball teams in the 40s Drafted the 1 st African-American player to the American League, Larry Doby Sports marketing innovations Introduced the Grandstand, fireworks, dazzling scoreboards, special event nights, event days Increased joy and entertainment at events: more patrons=more $ Adolph Zukor Founder of Paramount Pictures Pioneer in creating the Hollywood studio system1st to draw big box office crowds-made Paramount the leading studio of teens in 1920s

Marketing Today Can’t rely on entertainment value of products S&E vendors-sellers of products Compete for a share of the $ spent on recreation Very, very competitive Requires an organized strategy and target market

Sports vs. Entertainment Similarities Differences Risk/risk management Synergy Product (not usually physical products) Core and ancillary products Pricing Place promotion Product (S&E) Revenue stream (E-many ancillary products and extra revenue, S-one event does not bring in $ like E except a championship game-clothes) Sponsorship (S) Advertising and broadcast rights (S) Consumer loyalty

Define the following and give an example of each: 1. Promotion 2. Endorsement 3. Core product 4. Ancillary product 5. Revenue 6. Piracy 7. Royalty 8. Product tie-in 9. Cross-promotion 10. Convergence 11. Synergy 12. Risks 13. Risk management 14. Consumer loyalty 15. sponsorship