1. SECTION 2.2 SIMILARITIES IN MARKETING Chapter 2: Sports & Entertainment : Connections and Contrasts

2. What You’ll Learn To explain how sports and entertainment markets use tools to sell their products. To explain risks and risk management of sports and entertainment events.  Think of ways marketing has changed over the last 25 years.

3. Changes in Marketing Promotions – any form of communication used to persuade people to buy products through advertising, publicity, personal selling or sales

4. Marketing Similarities Product  Endorsement – approval or support of a product or idea, usually by a celebrity lending his or her image or name to a product  Core and Ancillary Products Core product – main product Ancillary product – a product related to or created from the core product Revenue – gross income Price  Price Problems Piracy – unauthorized use of an owner’s or creator’s music, movies, or other copyrighted material Royalty – a payment for material that has been copyrighted, or legally declared as belonging to the creator

5. Marketing Similarities continue…  Promotion Product tie-in – use of ancillary products such as merchandise as promotional tools Cross-promotion – any form of communication through which one industry relies on another industry to promote the product.  Convergence – Part of the Marketing Mix Convergence – overlapping of product promotion  Synergy a combined action that occurs when products owned by one source promotes the growth of related products  Risk and Risk Management Risk – unforeseen events and obstacles that can negatively affect business Risk management – a strategy to offset business risks

6. Activity Divide into groups of 4-6. Plan a marketing strategy for a celebrity’s latest offering (a film, CD, series of games, etc.). Will they use product tie-ins? Cross Promotion? Advertising? How will they use them?