1. SPORTS AND ENTERTAINMENT MARKETING JANUARY 20, 2016

2. SPORTS AND ENTERTAINMENT MARKETING As we watch the following videos, make a list of every organization you think is being promoted. ESPN Video Super Bowl / Telluride Ad Sports and entertainment marketing is big business! ESPN 2016 NCAA Football Championship

3. HISTORY OF SPORTS AND ENTERTAINMENT Sports and entertainment are leisure activities for the purpose of enjoyment The growth of the sports and entertainment industries has relied on consumers with free time, discretionary income, and a desire for recreation In the mid to late 1800’s, organized sports and entertainment were pastimes of the wealthy because they were the only consumers with the time and money to participate Higher wages, improved working conditions, creation of public transportation and the development of technology made entertainment more available to the working class.

4. HISTORY OF SPORTS AND ENTERTAINMENT By the end of WWI in 1918, international movie stars like Mary Pickford and sports icons like Babe Ruth made sports and entertainment a staple in everyday life During the Great Depression of the 1930’s and WWII in the 1940’s, sports and entertainment were a distraction and relief from the hardships and trauma Further advances in technology in the 1950’s and beyond meant that people grew up with television, local movie theaters, sports franchises and more time and money to spend on recreation

5. SPORTS AND ENTERTAINMENT MARKETING TODAY Today, sports and entertainment marketers can not simply rely on the entertainment value of their products Sports and entertainment vendors compete for a share of the money people spend on recreation With so many recreation outlets, an organized strategy that targets a specific consumers to specific products is essential

6. THE BASICS OF MARKETING The basics of marketing apply to sports and entertainment marketing: The Marketing Concept: The idea that organizations need to satisfy their customers wants and needs while also meeting the organization’s goals – usually making a profit The Marketing Mix: Product – What are you going to sell? Place – Where are you going to sell it? Price – How much are you going to charge? Promotion – How will the company communicate with the consumer to persuade people to buy ?

7. THE BASICS OF MARKETING The Promotional Mix includes any combination of : Advertising Public Relations Personal Selling Direct Marketing Sales Promotion

8. IMPACT OF SPORTS AND ENTERTAINMENT EVENTS What do Broadway in New York City, Walt Disney World, and Super Bowl all have in common?  They all benefit the local economy! Think of all the possible ways the Super Bowl will benefit the San Francisco economy. Airlines Hotels Restaurants Transportation (train/taxi/car rental) Other recreation Local Merchants Security services... just to name a few! Estimate the total dollar value of the economic impact of the Super Bowl. $500 MILLION DOLLARS!!

9. SPORTS AND ENTERTAINMENT MARKETING Sports and entertainment products are marketed differently than traditional consumer products. There are both similarities and differences in marketing sports products versus entertainment products.

10. SPORTS AND ENTERTAINMENT MARKETING - SIMILARITIES Product By nature, sports and entertainment products are different from traditional consumer products as they are often not physical goods Endorsement is approval or support of a product or idea, usually by a celebrity lending his or her image or name to a product Marketers must match their products with the correct celebrity – to create an effective endorsement, the celebrity should be popular with the target market

11. ENDORSEMENT ACTIVITY 1- Ford F-150 Pastel Edition Pickup truck 2 - Just For Men Hair color 3 - Farmersonly.com 4 - Old Spice Bear Claw Deodorant 5 - “Mayhem” All-State Insurance- Insuring the Palmer Ridge Bear Mascot against injury 6 - Twinkies 7 - Secret brand deodorant 8 - Wells-Fargo bank 9 - Capital One “What’s in your wallet” 10 - White Rain Hair Spray

12. SPORTS AND ENTERTAINMENT MARKETING - SIMILARITIES Product (cont’d) The core product (main product) is the sports event, movie, stage show, or book. The ancillary product is a product related to or created from the core product

13. SPORTS AND ENTERTAINMENT MARKETING - SIMILARITIES Product (cont’d) Brainstorm some ancillary products that would coordinate with: A hockey team A character from the Star Wars movies New Stadium that is opening Denver Bronco’s AFC Championship game

14. SPORTS AND ENTERTAINMENT MARKETING - SIMILARITIES Place The changing nature of the place component (such as e- commerce) has impacted traditional marketing more than sports and entertainment marketing Successful sports and entertainment marketing strategies appeal to the desire to go out to a special event

15. SPORTS AND ENTERTAINMENT MARKETING - SIMILARITIES Price Pricing sports and entertainment products is radically different than pricing traditional consumer goods For example, a movie theater rarely lowers its ticket prices to compete with other first-run theater chains Price is set and adhered to uniformly based on what theaters and sports teams can charge – and what customers are willing to pay Sports and entertainment faces pricing issues such as ticket scalping (unauthorized selling) and piracy (unauthorized use)

16. SPORTS AND ENTERTAINMENT MARKETING - SIMILARITIES Promotion Two tools used in sports and entertainment marketing include product tie-ins and cross promotion Cross promotion is any form of communication through which one company relies on another company to promote its product – example example Product tie-ins are an example of cross promotion and include the use of ancillary products such as merchandise as promotional tools – Happy Meal toys

17. SPORTS AND ENTERTAINMENT MARKETING - SIMILARITIES Promotion Synergy is a combined action that occurs when products owned by one source promote the growth of related products Cross-promotion helps develop product synergy. For example, Oprah has a TV show as her core product and used that visibility to promote ancillary businesses such as a magazine, books, a production company, etc. Synergy occurs when the ancillary products such as a magazine steer consumers back to the TV show

18. SPORTS AND ENTERTAINMENT MARKETING - DIFFERENCES Entertainment is based on creative ideas that can be fashioned to fit the tastes of a target audience, but sport is based on athletic ability and competition. Therefore, consumers are attracted to sports or entertainment for different reasons The difference between sports and entertainment can be found in three areas: 1.Consumer loyalty 2.Product 3.Revenue stream

19. SPORTS AND ENTERTAINMENT MARKETING – CONSUMER LOYALTY DIFFERENCES Sports fans enjoy the drama of real competition and the unpredictability of each game If sports fans feel their team is trying to win, the team can retain consumer loyalty Consumer loyalty occurs when customers are happy with a company’s product and become repeat customers Consumer loyalty for typical consumer goods is based on perceived value whereas consumer loyalty in sports events is based on emotional attachment Fans usually support one or two teams and sports marketers target a core group of fans and work on maintaining their team loyalty Sports marketers are always looking for ways to attract more fans to games, but most sports franchises spend more effort marketing a winning season to their target markets than trying to attract new and different consumer groups

20. SPORTS AND ENTERTAINMENT MARKETING – CONSUMER LOYALTY DIFFERENCES In contrast, the entertainment consumer is not motivated by brand or team loyalty, but by a desire for satisfying entertainment Furthermore, the entertainment industry is subject to trends that dictate “what is hot and what is not”

21. SPORTS AND ENTERTAINMENT MARKETING - PRODUCT DIFFERENCES In marketing a traditional product, marketers have plenty of time to conduct research, run tests, and plan launches and promotions Sports to some extent has the same luxury because its core product remains the same – a sports team, event or facility Marketers of entertainment products have to predict a trend or fad and then change the product to satisfy audience demand

22. FOX PUTS "PHONE" ON HOLD WED OCT 16, 2002 HOLLYWOOD (Variety) - Twentieth Century Fox has elected to postpone indefinitely the release of director Joel Schumacher's sniper thriller "Phone Booth," while a real- life gunman terrorizes residents around the nation's capital. "In light of recent events, we are delaying the release of 'Phone Booth,"' said Flo Grace, a spokeswoman for the studio. "We don't have a new date yet." The movie was scheduled to be released Nov. 15. "Phone Booth" centers on a man who answers a ringing pay phone and discovers he's in the gun sight of a sniper who plans to kill him if he hangs up. Insiders at Fox say the $12 million picture may be released early in 2003, though the situation is still fluid. The film stars Irish actor Colin Farrell and "24" TV star Kiefer Sutherland. It was directed by Joel Schumacher, who has shot a string of flops in recent years, including "Bad Company" and "Batman & Robin.“ The Washington sniper has killed nine people in a wide area around the capital since launching a 15-hour shooting spree earlier this month.

23. SPORTS AND ENTERTAINMENT MARKETING – REVENUE STREAM DIFFERENCES Sports and Entertainment Marketing – Revenue Streams MovieSports Franchise movie ticketsticket sales cable TVselling broadcast rights DVDstadium advertising video gameclothing TV seriesvideo games clothing toys

24. SPORTS AND ENTERTAINMENT MARKETING – REVENUE STREAM DIFFERENCES Sponsorship – when a company supports an event by contributing either money or other resources such as food, venue, or a service. Usually in exchange for publicity at the sponsored event, advertising space, branding Sponsorship is more prevalent in the sports industry Buying stadium naming rights is another example of sponsorship