1. Unit 1 – Strategies Used in the Sports and Entertainment Industry

2. What is S & EM?
Earliest forms of sports marketing started around First known sporting event to charge admission
Emergence of radio/tv/internet
Corporations see a benefit to working with sport/ent. organizations – results in a sponsorship boom
Celebrity endorsements and naming rights deals become common industry practice

3. Why is Sports & Entertainment Marketing Important?
2 of the most profitable industries in U.S.
Fans spent approximately $695 billion in 2015
Main export of U.S.
They have become 2 of the largest and fastest growing industries in the U.S.
Organized marketing plan with strategies to target specific consumers is needed due to number of businesses competing in these industries.

4. Factors Contributing to Growth
Increase in numbers of those participating in sports & ent.
Increase in those following sports & ent.
Increase in offerings
Attendance increases
Media coverage
International marketplace
Continued growth

5. What is Marketing?
Marketing is process of developing, promoting, and distributing products (good & services), to satisfy customers’ needs & wants.
Goods are tangible (e.g. sports equipment)
Services are intangible (e.g. theater tickets)

6. What is the Marketing Process?
Developing - involves:
Studying consumers’ wants
Designing products that satisfy those wants & needs
Promotional – help to:
Educate consumers
Create interest & desire
Make a sale
Create image for company
Distribution – way of:
Getting product to consumer
Buying and selling

7. What is the Marketing Concept?
Organizations must recognize importance of their customers and create a marketing concept or idea that they must not only satisfy their own goals but satisfy their customers as well.

9. Industry Pioneers
Choose 5 industry pioneers from the list, or think of a few on your own (check with me for approval).
Provide a brief biography of the person(s)
1st paragraph of 3-5 sentences
Describe how this person influenced the sport and entertainment industry
2nd paragraph of 3-5 sentences
Insert a photo of the person

11. What Makes Up a Market?
1st step of marketing concept identify customers
These potential customers become a market if they have:
shared needs
both desire and ability to buy product
Products and marketing activities can be tailored to the needs of these segments

12. What Makes Up a Market? (cont.)
Organizations spend a lot of $ to learn about customers’ needs and wants
Needs – necessities
Wants – wishes
Next they must identify smaller group of people within that market to sell to. This is known as a target market which becomes the specific group organization focuses its’ marketing plan on
Statistics used to describe consumers in terms of personal characteristics, known as demographics, help organizations develop their marketing plans. The 6 most common are:
Age
Income
Occupation
Gender
Ethnic background
Educational levels

13. How Do Organizations Identify Their Target Market?
Mass Marketing
Market Identification
1950’s
1 core message aimed at everyone
Hope that the right people notice it and buy
1980’s
Methods more sophisticated and enhanced with technology
Able to use market research to identify target mkt.
Message aimed at those specific consumers

14. Market Research
Market research is the process of collecting data about customers and competitors.
There are 2 types of market research:
Primary research – gathering first hand data (e.g. through questionnaires and focus groups)
Secondary research – gathering existing data (e.g. through trade journals and government statistics)

15. What is the Marketing Mix?
Marketing Mix is a combination of 4 basic marketing strategies known as the 4 P’s:

16. Case Study #1

17. Marketing Mix (cont.)
Product – Refers to the functions and features of a good or service and should satisfy the needs of the customer.
Designing
Naming
Packaging

18. Marketing Mix (cont.) Price – influences customers’ buying decisions
Cost of making or buying product
Additional expenses related to marketing product
Competition’s prices
What consumer is willing to pay

19. Marketing Mix (cont.)
Place – involves making the product conveniently available to the customer
How and where target mkt. shops: brick and mortar stores, mail order, telesales, internet
Channel of distribution – path product takes from the producer to the consumer

20. Marketing Mix (cont.)
MANUFACTURER
WHOLESALER
RETAILER
CONSUMER

21. Marketing Mix (cont.)
Promotion – involve how goods and services are communicated to consumers (e.g. advertising, sales promotions, publicity, personal selling).
Raise awareness
Encourage sales
Create or change a brand image
Maintain market share

22. Above-the-Line Promotion
Uses paid-for mass media for advertising
Is often used to inform an audience of a product and persuade them to purchase
Can reach a very large audience
May reach people beyond the target market
Is difficult to measure in terms of its impact
Tends to be more expensive than below-the-line methods
Types of media used: newspapers & magazines, television, radio, cinema, internet, billboards and other types of outdoor media

23. Below-the-Line Promotion
May be less expensive than above-the-line methods
Is generally used for short to medium-term incentives
Can be used to target specific audiences or even individuals
Is often aimed at the consumer (as opposed to business customers)
Methods include: Sales promotions, competitions, sponsorship, PR, direct mail, point-of-sale displays

24. Promotional Mix
Most businesses use a combination of different promotional activities.
The chosen promotional mix will depend on:
Cost
Target Market
Product
Competitors
Promotional campaigns often take into account the AIDA model:
Awareness – raising awareness of a product
Interest – exciting interest in the product
Desire – creating desire for the product
Action – encouraging a purchase