1. Sports & Entertainment: Connections & Contrasts
Chp. 2-1, 2-2, 2-3

2. Sec. 2-1
History of Sports & Entertainment Marketing

3. Sports & Entertainment connections
Overview:
What are the connections between sports & ent.?
They have both thrilled & entertained people for centuries
Concessions, seats, anticipation, excitement, action

4. A brief history of leisure
Sports & ent. are leisure activities for the purpose of enjoyment
Marketers sell participation
Consumers = people who use products
Growth of these industries has relied on:
Consumers having free time
Consumers having discretionary income ($ left over after expenses)
Consumers desiring recreation

5. A brief history of leisure (cont.)
Organized sports & ent. used to only be for the wealthy (mid to late 1800’s)
Changes:
Labor unions – fight for better working conditions & better pay
Development of technology & new inventions

6. Entertainment for everyone
Public transportation
Inventions:
Late 1890’s – Thomas Edison invented the kinetoscope/vitascope = a device for viewing moving pictures
This device signaled the birth of the film
industry

7. Entertainment for everyone (cont.)
Inventions:
Lumiere Brothers & George Eastman
Nickelodeon
Industry leader scavenger hunt Activity

8. Entertainment for everyone (cont.)
1920’s – Sports & ent. became staples in everyday life
This was vital for 2 reasons:
Depression (‘30’s)
WWII (‘40s)
1950’s – further advancement in technology:
Television sets in the home
Local movie theaters
Local sports franchises
disneyland
*Sports & Ent. was a welcome distraction
*more time & money spent on Sports & Ent.

9. Development of s & e Mktg.
Sports:
William “bill” veeck was a pioneer in the sports mktg. field
Drafted the 1st African American baseball player to the
american league (Larry Doby, Indians, 1947)
Brought a grandstand style of ent. to the fans
Fireworks at games
Dazzling/exploding scoreboards
Special event nights
Players names on the back of jerseys
Giving ballparks “flair”
Took the game of baseball and made it more enjoyable for fans and media = more profitable

10. Development of s & e Mktg.
Entertainment:
Adolph zukor was a pioneer of the film industry
Founder of paramount studios and created what we know of as the Hollywood studio system
Took the concept of taking move from the kinetoscope to the theater
Owned a chain of theaters
Capitalized on telling dramatic stories and creating “big stars”

11. Marketing today Both compete:
Athletes competing in games
Tv/film competing for ratings
Both competing for share of market
Vendors = people who sell products
Marketers’ goal is to sell entire package, not individual product or service
An organized strategy that targets specific consumers Is essential b/c media and s & e are vying for consumer attention = this is the foundation of s & e Mktg.
Line has become blurred between s & e = many athletes & celebs. Branch off and sell other products

12. Sec. 2-2
Similarities in marketing

13. Similarities in marketing
Some changes continued to take place over time:
5th P? = People – focus on target market
Promotion = any form of communication used to persuade people to buy products through advertising, publicity, personal selling, or sales
New technologies has broadened scope and reach of marketing messages while also entertaining us
Internet, e-commerce, on demand tv, interactive gaming, virtual advertising

14. Marketing similarities
Different than all other products in the 4 P’s
S & E Products
All other products

15. Marketing similarities (cont.)
Product – s & e are different from traditional consumer products b/c they are often not physical goods but rather services
s & e products are both dynamic and used to promote extension products
Endorsements – approval or support of product or idea by a celeb. Lending their image to product
all celeb. Have public persona = personality perceived by public
Core & ancillary products
Core = main product (e.g. sporting event, movie, book, etc.)
Ancillary = product created off of core product (e.g. amusement park ride, programs, souvenirs, food, kids line, etc.)
Marketers promote both the core and/or ancillary product
Can earn additional revenue on these 2 types of products to promote even more unrelated products

16. Marketing similarities (cont.)
place – changing nature of place has affected traditional products more than s & e
E-commerce or online shopping is quickly replacing brick & mortar stores (traditional places to get products) – s & e locations haven’t changed
Both s & e offer the occasion appeal = consumers still enjoy going there for the event
price – pricing s & e events is dramatically different than traditional products
Based on what they can charge and what people are willing to pay
All about perception with s & e marketing
Price problems – price becomes an issue when:
Highly paid players & celebs. Go on strike for salary increases
piracy = unauthorized use of product without owner’s permission
Ticket scalping = unauthorized ticket sellers who stand outside event and sell tickets for higher price
these are considered intellectual property which is being used without permission since it is copyrighted & bootlegged – production and distribution without authority
When done correctly portion of profit goes to owner = royalty

17. Marketing similarities (cont.)
promotion – S & e marketing uses 2 tools to promote goods:
Product tie-ins – use of ancillary products such as merchandise to promote event (e.g. Mcdonald’s happy meal)
Cross promotion – any form of communication through which 1 industry relies on another industry to promote its products (e.g. jimmy fallon)
convergence – overlapping of product promotion expands the potential for profit in s & e marketing (e.g. web sites are used both as promotional tools and as sources of revenue, hosting links and online shopping for merchandise)
Synergy = cross promotion + convergence (e.g. oprah winfrey)
Risks & risk management – synergy is goal for s & e mktg. but not easy to achieve
Risks = unforeseen events that can negatively affect a business
Athletes can get injured
Singers/bands get sick
Celebrities get in trouble w/ decisions they make
So to offset risks, businesses develop good risk management and purchase insurance

18. Sec. 2-3
Differences in marketing

19. Different players, different games
3 areas for differences for s & e marketing:
Consumer loyalty
Product
Revenue stream

20. Consumer loyalty
When consumers are happy with a company’s product and become repeat customers (e.g. support your favorite team)
Sports
fans usually support 1 or 2 teams
Sports marketers usually target core groups of fans and work on maintaining team loyalty
Sports franchises spend more time marketing winning season to target market then attracting new consumers
Entertainment
ent. consumers not motivated by team loyalty but for desire to be entertained
Marketers target each product to well-defined consumer groups
Ent. industry is affected by trends and consumers will stop purchasing if they don’t like it
Record labels and production companies struggle to have consumer loyalty because we’ll purchase from anyone

21. Find Winning . . .
Know . . .
Product . . .
Sports
Team
What consumers want
Deliver it
Entertainment
Formula
Create it

22. Difference in product Sports Product Is consistent and stable
Time in on their side when marketing
Entertainment
Product is always changing (fads/trends)
Everything must be done immediately ahead of time (time is of the essence) – have to predict trends

23. Difference in revenue stream
Sports
Doesn’t produce the amount of revenue that entertainment does
Exception - big time sporting event (e.g. march madness, super bowl, world series)
However, additional streams of revenue exist through ticket sales, media advertising video games, ancillary products
Entertainment
Ent. products can be developed into merchandise used for promotion
Large profit through sale of products, licensing and royalties
Streams of revenue are diverse b/c of variety of ent. products

24. Difference in revenue stream (cont.)
Sponsorships = promotion of a company in association with a property (e.g. nascar)
Sponsorship is different from endorsement
The sponsoring company is not lending a name or image to a sports product
tiger woods nike = sponsorship
buick, Gillette, Gatorade = endorsement
Corporate boxes and stadium naming
Advertising and broadcast rights
Sports get money from virtual advertising (advertisements overlaid on existing promotions
Get money by landing broadcast deals