1. SPORTS AND ENTERTAINMENT MARKETING MERCHANDISING AND DISTRIBUTION

2. IN-HOUSE MERCHANDISING When the demand for licensed products is minimal, an organization may choose to handle their merchandising in-house In-house Merchandising: Refers to managing the merchandising process within the organization itself, rather than outsourcing or acquiring licenses

3. STEPS IN THE IN-HOUSE MERCHANDISING PROCESS 1.Design the logo and slogan or tagline (if it is not already available) 2.Determine merchandise type, quality and quantity 3.Interview local merchants (vendors) and select the company that can best fit the organization’s needs 4.Determine distribution outlets 5.Train sales staff 6.Prepare on-site merchandising strategies

4. ON-SITE MERCHANDISING Organizations maximize income through the sales of food and beverage and merchandise On-site Merchandising: Refers to the process of selling merchandise at the physical location of the event Examples: At seat service, Kiosks, Luxury suites, Refreshment Stands

5. FOUR KEY CONSIDERATIONS OF ON-SITE MERCHANDISING 1.The location of where the merchandise is being sold 2.The physical layout and appeal of where the merchandise is being sold 3.How well the sales operation is performed 4.The appeal of the merchandise or product itself

6. BEST PRACTICES FOR SELLING ON-SITE MERCHANDISE The heaviest traffic for merchandising is upon arrival and departure Test marketing is important to ensure the effectiveness of a good or service Training of sales personnel varies with the event

7. ONLINE MERCHANDISING Making merchandise available online opens up a new sales channel for a sports or entertainment organization to purchase related goods and services Online Merchandising: Refers to the process of selling merchandise on the Internet Examples : CustomInk, StubHub, eBay, team website

8. ONLINE MERCHANDISING EXAMPLE Organizations maximize income by providing a customized shopping environment and allowing consumers access to a wider variety of products and services U.S. e-commerce sales totaled $165.4 billion in 2010, up 14.8% from the previous year, according to estimates released in 2011 by the U.S. Commerce Department

9. ONLINE DISTRIBUTION METHODS Direct shipping to consumer In-store pickup

10. ADVANTAGES OF ONLINE MERCHANDISING Easier to control inventory Opportunity to offer exclusive merchandise Opportunities to reach out-of-market consumers

11. DISADVANTAGES OF ONLINE MERCHANDISING Security concerns in making transactions online Potentially higher distribution (delivery) costs Consumers inability to touch, feel or “test-drive” products before buying can be a deterrent and lead to higher return rates

12. DISTRIBUTION Determining how best to get products and services to consumers Sports and entertainment companies must determine which distribution strategies will help to maximize sales: mass distribution in as many outlets as possible exclusive partnerships with individual retailers to create exclusivity and drive demand

13. REVENUE STREAMS Revenue Stream: Streams of sales dollars Movie steams: Theater DVD Pay per view Video on demand Netflix Ancillary products: Games Toys Clothing

14. REVENUE STREAMS FOR SPORTS Media Rights: March Madness Partnership between CBS and Turner Sports 14 year, 10.8 Billion Dollars and $771 million per year for NCAA Advertising: CBS and Turner make $100,000 for 30 second commercial (more than a $1,000,000 for 30 seconds during final 4) CBS earned more than $651 million last year

15. CLASS ACTIVITY Students complete Merchandising Internet Activity Students create Distribution PowerPoint