1. Importance of Sports and Entertainment Marketing

2. Do Now
How do you think sport differs from entertainment?

3. The Sports Industry
Sport: source of diversion or physical activity engaged in for pleasure

4. The Entertainment Industry
Entertainment: any activity which provides a diversion or permits people to amuse themselves in their leisure time
Examples:
Television
Live Shows
Movies
Music
Books
Magazines

5. How Are They Different? Sports Entertainment
Usually planned with a script or program
Consumers are not motivated by brand or team
Consumers do not remain loyal to a brand
Spontaneous/not planned
Unpredictable outcome
Involves competition
Fans support one team

6. The Sports and Entertainment Industries
Today these industries are two of the most profitable in the US Fans spend BILLIONS on recreation and related products every year

7. What is Sports Marketing?
Applying marketing principles and processes to promote sports products
Sports equipment, sports apparel, sports drinks
David Beckham/ ADIDAS
"Fate"

8. What is Sports Marketing?
Papa John's and the NFL
The marketing of non- sports products through association with sports or sports figures
Hanes - Sports and Entertainment
Head and Shoulders

9. What is Entertainment Marketing?
BK AD
Marketing of entertainment products or using entertainment to attract customers

10. Dr. Pepper/ Iron Man

11. Growth of the Sports Industry
The sports industry generates about $200 billion a year
Growth is measured in…..
1. Event Attendance Figures
2. Media Coverage (ESPN, Golf Channel, NFL Network)
3. Employment Figures (4.5 million jobs and growing)
4. Global Market Expansion

12. Growth of the Entertainment Industry
In 2009 the film industry grossed $10.6 BILLION
The largest grossing movies were
"Transformers: Revenge of the Fallen"
($402 million)
"Avatar"
($352 million)
"Harry Potter and the Half-Blood Prince"
($302 million)
This was a record year of revenue for the
movie industry, up from $9.9 billion in 2008

13. Trends in Sports and Entertainment
3D movies (Piranha 3D, Toy Story 3, Avatar)
Midnight releases (Twilight Saga)
The use of social networks (Twitter, Facebook)

14. Economic Concepts and Their Impact on the Industry

15. Competition The struggle among companies for scarce customer dollars
Based on the theory that only the strong will survive
Those organizations with the best products at the best price will stay in business

16. Types of Competition
Price Competition: when a business uses the price of their product to compete in the marketplace
Non-Price Competition: when a business uses other product features (such as quality, image or service) to compete in the marketplace

17. Economic Resources
All of the things used in the production of a good or service
Land – anything from the earth or sea
Labor – the people who work to produce the good or service
Capitol – the money, buildings, hardware, tools, etc. used in production

18. Factors that influence demand for a Sports or Entertainment event
Price of the tickets
How often the event takes place
How much promotion is used
People involved in event (key players or performers)

19. Assignment
Situation: You are to assume the role of director for an amateur tennis tournament. Because of the tournament’s size, two different tennis clubs and several hotels within your town must be used. The town mayor is unsure about presenting this project to the town council
Activity: Convince the town mayor to support hosting your event
Evaluation: You will be graded on how effectively you cover the following topics:
Explain the economic impact of sports and entertainment events on a community/area
Describe factors that influence the demand for services
Explain the concept of competition
Explain the concept of economic resources
Describe trends in sports and entertainment marketing