1. Sports and Entertainment Marketing © Thomson/South-Western ChapterChapter What Is Sports and Entertainment Marketing? 1.1 Marketing Basics 1.2 Sports Marketing 1.3 Entertainment Marketing 1

2. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 2 Winning Strategies A determined athlete A supportive family From $50 to $4 Million

3. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 3 Lesson 1.1 Marketing Basics Goals Describe the basic concepts of marketing. Explain the marketing mix. Define the six core standards of marketing.

4. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 4 Terms marketing marketing mix product distribution price promotion discretionary income

5. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 5 WHAT IS MARKETING? marketing the creation (product development)and maintenance (marketing must occur as long as business operates) of satisfying (meet needs of businesses & consumers) exchange relationships (both parties giving & receiving something of value)

6. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 6 Three Activities involved in Satisfying Customer Needs Identify your customer and the needs of your customer. Ex. Today’s college students need a laptop Develop superior products. Ex. Develop a light weight top of the line touch screen laptop Operate your business profitably. Revenues must exceed cost (materials, marketing, etc.)

7. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 7 Sports and Entertainment Marketing Marketers of sports and entertainment marketing must assess consumer demand the competition the financial valuation of the goods and services they offer

8. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 8 What is marketing?

9. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 9 THE MARKETING MIX marketing mix how a business blends the following four elements product distribution price promotion

10. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 10 what a business offers to satisfy needs goods and services distribution the locations and methods used to make products available to customers. Ex. Online or in a retail store product amount customers pay for products. Ex. High price for new trendy products promotion ways to make customers aware of products encourages customers to buy price

11. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 11 Marketing Mix Considerations discretionary income the amount of money individuals have available to spend after paying for necessities Striking the right balance between price, distribution and promotion is important.

12. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 12 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 and lodging expenses. Distribution includes the location of the host city and ticket sales. Promotion involves media outlets and related-product contests.

13. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 13 A Marketing Mix Example in the Entertainment Industry State fairs need to appeal to rural and urban residents set reasonable ticket prices advertise about the fair determine fair location plan ticket sales

14. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 14 What are the elements of the marketing mix?

15. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 15 CORE STANDARDS OF MARKETING

16. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 16 Distribution involves determining the best way to get a company’s products and services to customers. Distribution

17. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 17 gathering and using information about customers to improve business decision making Conducting interviews, focus groups, surveys, etc Marketing-Information Management

18. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 18 the process of establishing and communicating to customers the value or costs of goods and services Pricing

19. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 19 designing, developing, maintaining, improving and acquiring products or services to meet customer needs Product/Service Management

20. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 20 using a variety of communication forms, including advertising, to distribute information about products, services, images and ideas to achieve a desired outcome Promotion

21. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 21 any direct and personal communication with customers to assess and satisfy their needs Selling

22. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 22 List and provide an example of each core standard of marketing.

23. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 23 A company must budget for its own marketing activities and provide customers with assistance in paying for the company’s products and services. Not a core standard but closely related Financing

24. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 24 Lesson 1.2 Sports Marketing Goals Define sports marketing. Explain the value of sports marketing to the economy.

25. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 25 Terms demographics sports marketing gross impression

26. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 26 WHY SPORTS MARKETING? demographics common characteristics of a group age, marital status, income, education sports marketing using sports to market products Ex. Nike logo on football uniforms

27. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 27 New Sports, New Opportunities continual innovation provides new opportunities extreme sports arena football

28. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 28 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 Every time you see a product or logo in a movie, sporting event, etc your brain records the image Ex. Wonderful Pistachio Super Bowl Ad

29. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 29 Timing Fans want products and services that identify them with winning teams and athletes. Ex. “riding the bandwagon” Marketing efforts may need to be tweaked based on changes in winning trends. Ex. Sales when teams not doing well

30. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 30 Why are gross impression and timing important in sports marketing?

31. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 31 THE VALUE OF SPORTS MARKETING Sports marketing is a multi-billion-dollar global industry that has a definite impact on the economy. Created job opportunities from parking lot attendants to sports teams marketing executives Emotional value - connections to teams motivate fans to buy tickets to games

32. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 32 So Many Channels High profile sporting events generate large revenues when TV networks pay for exclusive rights to game. Ex. Comcast & Phillies Marketers must create marketing strategies to appeal to largest number or viewers to beat out the competition of todays reality shows High-paying promoters pay large sums to advertise during major sporting events like Super Bowl

33. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 33 Name three ways that sporting events help boost the local economy and/or national economy.

34. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 34 Lesson 1.3 Entertainment Marketing Goals Define entertainment. Describe the impacts of advances in entertainment technology on entertainment marketing.

35. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 35 Terms entertainment marketing entertainment ratings

36. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 36 ENTERTAINMENT FOR SALE entertainment marketing influencing how people choose to spend their time and money on entertainment First entertainment is looked at as a product to be marketed. Ex. Pursuing people to buy game tickets Second marketing is examined to see how it uses entertainment to attract attention to other products. Ex. Singer or Actor appearing on a talk show to discuss new album or movie

37. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 37 What Exactly is Entertainment? entertainment whatever people are willing to spend their money and spare time viewing rather than participating in

38. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 38 What are the two ways of looking at entertainment marketing?

39. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 39 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.

40. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 40 The Beginning of Change Moving pictures began the trend of Technology distancing entertainers from their audiences. Movie theaters were created in 1927 with the first movie with sound The Jazz Singer Disneyland opened in 1955 and represented a new approach to the marketing mix of entertainment by introducing theme parks. Scarce distribution channels

41. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 41 Television’s Increasing Influence The Early Days of Television and Marketing TV changed the marketing of entertainment in a profound way. Oct. 1945 25,000 went to Gimbel’s dept store in Phila. to watch first TV demonstration and the American Association of Advertising Agencies encouraged the start of TV advertising Viewer were hooked by the audiovisuals on the 9 stations that existed Few distribution channels

42. Sports and Entertainment Marketing © Thomson/South-Western Television’s Increasing Influence 1946 NBC and the Gillette Company aired first televised sporting event, a heavyweight boxing match. On average 30 people per TV set were watching on 5,000 TV’s. 98 stations were now available for viewing. Ed Sullivan show set standard for marketing talent by promoting Elvis & the Beatles Corporations began to buy time and produce advertisements. Pricing based on viewer ratings. The larger ratings = larger prices Ratings - the number of viewers the programming attracted Chapter 1 Slide 42

43. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 43 Change Accelerated Technology improvements, including the internet, have made distribution of sports and entertainment to the masses much easier. TV’s older form of distribution but competing by using Hi-def, etc. Internet more common form of distribution

44. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 44 Technology and Customer Feedback Audiences can use a variety of communication technologies to provide entertainment feedback. Instant messages, emails, phone calls, social networks, etc

45. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 45 Name a few benefits of television to marketers and advertisers.

46. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 46 PERFORMANCE INDICATORS EVALUATED Communicate an appropriate advertising campaign through writing and speaking. Analyze relevant data to make recommendations for an appropriate plan of action. Demonstrate critical thinking and problem-solving skills when creating the advertising campaign.

47. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 47 Demonstrate advertising budgeting skills. Demonstrate teamwork to complete a group project.

48. Sports and Entertainment Marketing © Thomson/South-Western Chapter 1 Slide 48 THINK CRITICALLY 1.Why is an advertising campaign necessary to overcome the city’s previous reputation? 2.Give several examples of activities other than sporting events to attract customers downtown. 3.What is the advantage of having new condominiums in the downtown area? 4.Does the light rail system present an advantage for your advertising campaign? Explain your answer.