Transcript Chapter 1
Chapter 1 What Is Sports and Entertainment Marketing? 1.1 Marketing Basics 1.2 Sports Marketing 1.3 Entertainment Marketing Sports and Entertainment Marketing © Thomson/South-Western Celebrity Endorsments 19 2 Advertising Campaigns that feature athletes/celebrities Examples? How do they affect your thinking about the product? If you were in the market for that product, would you buy it? Why?/Why not? Read Article: “Do celebrity endorsements really persuade consumer buys?” Successful and failed celebrity endorsements Chapter 1 Slide 3 Sports and Entertainment Marketing © Thomson/South-Western WHAT IS MARKETING? Marketing from a sports/entertainment standpoint the creation and maintenance of satisfying exchange relationships Creation = product development Maintenance = continuous marketing Satisfaction = meet the needs of the business and customer Exchange = Both parties are receiving something Chapter 1 Slide 4 Sports and Entertainment Marketing © Thomson/South-Western Satisfying Customer Needs Primary focus of marketing 1. identify your customer and the needs of your customer Nike – who are they? Sony – who are they? 2. develop superior products 3. operate your business profitably Chapter 1 Slide 5 Sports and Entertainment Marketing © Thomson/South-Western Sports and Entertainment Marketing Marketers must assess: consumer demand the competition the financial value of the goods and services they offer Consumers have limited $ vs. huge industry Average cost for family of four to attend Phillies game? Tickets, parking, hot dogs & drink, two baseball hats http://articles.courant.com/2013-04-05/sports/hc-fan-cost-index-040520130405_1_red-sox-game-yankees-game-citi-field Chapter 1 Slide 6 Sports and Entertainment Marketing © Thomson/South-Western THE MARKETING MIX How a business blends the following four elements: product what a business offers to satisfy needs distribution the locations and methods used to make products available to customers price sensitive to consumer demand and state of the economy promotion Ways to make customers aware of products Recession - Businesses cutting TV ads Chapter 1 Slide 7 Sports and Entertainment Marketing © Thomson/South-Western A Marketing Mix Example in the Sports Industry The product the Super Bowl offers is a game between the best teams of the AFC and NFC. Prices range from $500 to thousands Consumer costs extend beyond ticket prices and include travel and lodging expenses. Distribution includes the location of the host city Is it easily accessible by fans? Near an airport, major highway? Nearby accommodations? Ticket Sales How will tickets be distributed? Promotion involves media outlets and related-product contests TV commercials, newspapers, sweepstakes Celebrity Endorsement Chapter 1 Slide 12 Sports and Entertainment Marketing © Thomson/South-Western Group Project A local town in Bucks County wants to raise money so they want to plan an event. Choose the event, complete the marketing mix and choose a celebrity that you would use to promote this event. Be specific Answer the 4 P’s Create a visual depicting the marketing mix Present to class Chapter 1 Slide 13 Sports and Entertainment Marketing © Thomson/South-Western The challenge creating and maintaining satisfying exchange relationships can be very difficult in the sports and entertainment world. For example: The Philadelphia 76ers have won 15 games and lost 37 The have the lowest home attendance in the league How can the owners of this franchise maintain a relationship with their fans? Chapter 1 Slide 14 Sports and Entertainment Marketing © Thomson/South-Western As a Marketing Manager you have been asked to create a sports package that will increase sales by at least 30%. This package can be targeted at any demographics that you feel will accomplish this task. Create a professional, exciting poster describing the package. Be sure to include your sponsor! Your grade will depend on creativity of your idea and the design of the poster. The website below will give you ideas of packages that the 76ers have already used and have been a success. Be original! Good Luck! http://www.nba.com/sixers/tickets/ Chapter 1 Slide 15 Sports and Entertainment Marketing © Thomson/South-Western Terms demographics sports marketing gross impression/product placement Chapter 1 Slide 16 Sports and Entertainment Marketing © Thomson/South-Western Sports Marketing Demographics Common characteristics – age, gender, ethnicity, income, education Sports marketers Research spectators interests and buying habits to plan products or services that they will buy Chapter 1 Slide 18 Sports and Entertainment Marketing © Thomson/South-Western To be successful…. Goal = using the right marketing mix to meet customers needs while generating profit. Three factors to consider…… Chapter 1 Slide 19 Sports and Entertainment Marketing © Thomson/South-Western 1) New Sports, New Opportunities continual innovation provides new opportunities extreme sports Skateboarding and snowboarding arena football Founded in 1987 – fastest growing sport in the country-------WHY? Tickets $17.50 – fans meet players – get autographs – clock doesn’t stop – scores are high – tons of excitement Chapter 1 Slide 20 Sports and Entertainment Marketing © Thomson/South-Western 2) Gross Impression/Product Placement the number of times per advertisement, game, or show that a product or service is associated with an athlete, team or entertainer May be very subtle – brain records image Movie with the most product placements ever Chapter 1 Slide 21 Sports and Entertainment Marketing © Thomson/South-Western Subliminal Advertising Chapter 1 Slide 22 Sports and Entertainment Marketing © Thomson/South-Western 3) Timing Fans want products and services that identify them with winning teams and athletes. Marketing efforts may need to be tweaked based on changes in winning trends. Chapter 1 Slide 23 Sports and Entertainment Marketing © Thomson/South-Western Emotional Value Emotional connections to teams motivate fans to buy tickets to games. People will freely spend discretionary income on events that capture their hearts Chapter 1 Slide 24 Sports and Entertainment Marketing © Thomson/South-Western Differences in Marketing Entertainment Vs. Sports Chapter 1 Slide 25 Sports and Entertainment Marketing © Thomson/South-Western Entertainment Based on creative ideas that can be fashioned to fit the tastes of a target audience Sports Based on attitude, ability and competition Sports and Entertainment Marketing © Thomson/South-Western Differences can be found in 3 areas: 1. Consumer loyalty Is our loyalty different? 2. Product • What do we expect from products? 3. Revenue stream • Where does money come from? Sports and Entertainment Marketing © Thomson/South-Western Differences in Consumer Loyalty Sports If fans feel the team is trying to win, the team retains consumers loyalty Entertainment Is not motivated by brand/team loyalty Desire for satisfying entertainment Subject to trends-”What’s Hot & What’s not Hot” If a company’s movie, book, sitcom, video game, etc. does not deliver expected level – consumer turns to competition Sports and Entertainment Marketing © Thomson/South-Western Difference In Product Sports Consistency, stability Includes: Team, event, facility Entertainment Variability and changeability Markets must predict trend/fad Example: movie postponed (Phone Booth – 2003) revolved around a man pinned in a phone booth by gunman Real life shootings in Washington D.C. 20th Century Fox postponed release Sports and Entertainment Marketing © Thomson/South-Western Differences in Revenue Stream Entertainment Many different entertainment products Streams of revenue created by marketing products are very diverse Entertainment products can be developed into: Merchandise, licensing, royalties Ancillary products – games, TV series, books, clothing line Ancillary products – created from the core product Sports and Entertainment Marketing © Thomson/South-Western Differences in Revenue Stream Sports One sporting event does not usually produce the same amount of revenue from merchandising and royalties Exception – championship game Sports and Entertainment Marketing © Thomson/South-Western Activity Nike running shoes Philadelphia Zoo Loyalty – what type of loyalty do you have? Product – what do you expect from this product? Revenue – Where does the money come from? Chapter 1 Slide 33 Sports and Entertainment Marketing © Thomson/South-Western Project New Drink/New Opportunity A new sports drink company wants your marketing firm to find a sport for the company to sponsor, research the market surrounding that sport, and prepare a marketing plan. The company prefers a less popular sport (new opportunity) rather than, for example, professional football. The company wants consumers to see its product as fresh, exciting, invigorating, young and daring. Work with a partner and complete the following activities. Chapter 1 Slide 34 Sports and Entertainment Marketing © Thomson/South-Western Use the internet to find and up and coming sport. It can be a team sport or an individual sport. Explain the objectives and rules of the game. Explain what kind of publicity the team or individual is seeking? Why? What features of this sport can be related to the products characteristics? What are the demographics of these athletes? Name at least two TV programs you would use for “Gross Impression” for your new drink. Why did you choose these programs? How will you drink be shown on the show? For example; Seinfeld is talking to Elaine in the kitchen and behind him on the counter is a bottle of “PowerPunch”. Explain the timing of when your drink would be aired. Prepare a questionnaire to hand out to fans attending the event. What five essential pieces of information do you want? What reward will you offer the fans for filing out the questionnaire? Chapter 1 Slide 35 Sports and Entertainment Marketing © Thomson/South-Western Research which media your fan base uses most. Television? Internet? Newspapers? Radio? Why? Design a label for your client’s drink that will attract the attention of its desired customers. Your drink should include the brand name, trade name, brand mark and trademark (This can be done using any software program) Plan an advertisement for your client. (This can be done using any software program) Examples…….. Chapter 1 Slide 36 Sports and Entertainment Marketing © Thomson/South-Western