Section 2.1

Consumers – people who use products Discretionary Income – money left after necessary expenses are paid. Used for the desire of leisure Kinetoscope – first device for viewing moving pictures. The beginning of mass marketing. Nickelodeon – First Indoor Movie Theater

William Veeck – Key figure in developing sports marketing Owned Cleveland Indians & Chicago White Socks Brought Marketing to baseball games Fireworks, Special-Event Nights, 10c Hotdog night Adolph Zukor – founded Paramount Pictures Marketed the first Sports Movie – The Prisoner of Zenda – Famous players making famous plays

 Cannot rely on only the entertainment value of a product or service. All teams compete for fans/market share/money  Vendors – sellers of products  Product – good or service any for-profit industry sells to consumers (Tickets, all goods pertaining to the team/city)

 5 th P of the marketing mix – Promotion  Any form of communication to persuade people to buy a product Sports & Entertainment Products – not always physical goods. (Entertainment presentations, athletic competitions) Endorsement – approval or support of a product or idea. Uses a celebrities image to sell the product

Core Product – Main product (Sport Event, Movie, Book) Ancillary Product – related to or created from the core product (DVD Recording, Action Figures, Pay-Per-View) Core + Ancillary = Greater Revenue Overall

Price Problems – Players Salaries – affect ticketing/merchandise Piracy – unauthorized use of an owners created music, movies, or art. Scalping – Illegal selling of purchased tickets. Cost the consumer more than face value Royalty – payment for material that has been copyrighted. Illegal copies decrease the royalty

Convergence – overlapping in product promotion Expands the potential for profit Websites, commercials, selling online and in stores Synergy – Combined action that occurs when products owned by one source promote the growth of related products

Risk – unforeseen obstacles and events that can negatively affect business (Athletes as sponsors – injury, bad life choices) Risk Management – strategy to offset business risk Hire firms to help identify possible risks Specific contracts and insurance policies