Transcript Chapter 4 Marketing Products and Services Through

SPORTS AND ENTERTAINMENT MARKETING
CHAPTER
4
Marketing Products and
Services Through Sports
4.1 Using Sports to Market Products
4.2 Sponsorship
4.3 Promotion
4.4 Endorsements
CHAPTER 4
SLIDE 1
© SOUTH-WESTERN/THOMSON
LESSON 4.1
SPORTS AND ENTERTAINMENT MARKETING
Using Sports to
Market Products
GOALS
Understand the enormous market for
sports.
Explain emotional ties to sports and
earning power of women in sports.
Discuss the marketing cycle.
CHAPTER 4
SLIDE 2
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
Market Audience Size
The audience
Sports events attract more viewers and
participants than any other form of
entertainment today
An audience of avid fans is captive
CHAPTER 4
SLIDE 3
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
The Power of Sports
Power of emotional ties
People experience intense emotions over
sports
Pride in their city
Rioting after championship games
Fans may overlook athlete’s bad behavior
Power of new markets
Rising popularity of women’s athletics
Title IX
CHAPTER 4
SLIDE 4
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
Marketing Cycle
A company buys the right to advertise or
use a logo on products
Television and radio stations and
networks sell broadcast time
Cities buy the rights to host teams
Consumers buy the products advertised
CHAPTER 4
SLIDE 5
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
How Companies Decide
Outside consulting firms
Sports marketing groups
CHAPTER 4
SLIDE 6
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
LESSON 4.2
Sponsorship
GOALS
Understand sponsors and their
investments.
Discuss prohibited sponsorship.
CHAPTER 4
SLIDE 7
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
Sponsors and Investments
Reasons for sponsorship
Need for profit
Sponsorship in niche markets
Examples of niche markets
CHAPTER 4
SLIDE 8
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
Reasons for Sponsorship









Increase sales
Introduce a new product or service
Compete where potential customers are in one place
Identify an event with a target market
Earn the goodwill of the audience
Show community commitment
Enter new markets
Entertain clients, employees, or potential customers
Enhance the companies’ image
CHAPTER 4
SLIDE 9
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
Need for Profit
Guaranteed amount of exposure,
recognition, or acknowledgement
Market research measures the results
of its sponsorships
Return—the profit the sponsor earns
from its support of an athlete or team
CHAPTER 4
SLIDE 10
© SOUTH-WESTERN/THOMSON
Sponsorship in
Niche Markets
SPORTS AND ENTERTAINMENT MARKETING
Niche marketing—researching a target
market to determine the specific items
or services a small group of people will
buy
CHAPTER 4
SLIDE 11
© SOUTH-WESTERN/THOMSON
Examples of
Niche Markets
SPORTS AND ENTERTAINMENT MARKETING
NASCAR
X Games
CHAPTER 4
SLIDE 12
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
Can Anyone
Sponsor Anything?
 Newer sports offer attractive opportunities for
smaller businesses
 Minor league baseball
 Affinity sports—niche markets whose
participants are just as passionate about their
sports as are enthusiasts of the more
traditional sports
 Loss of sponsors
CHAPTER 4
SLIDE 13
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
LESSON 4.3
Promotion
GOALS
Discuss promotion and its objectives.
Understand the tools used in promotion.
CHAPTER 4
SLIDE 14
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
Promotion
Selling—the exchange of a product or
service for another item of equal or
greater value
Promotion—publicizing or advertising a
product, service, or event with the goal
of selling it
Promotion example
CHAPTER 4
SLIDE 15
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
Promotion Targets
Primary goal of promotion is to increase
sales or attendance
Winning new customers
Maintaining customer satisfaction,
loyalty, and repeat business
CHAPTER 4
SLIDE 16
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
Promotion Objectives
Decide on target market
Decide on the message
Determine what it wants consumers to do
CHAPTER 4
SLIDE 17
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
Promotional Tools
The four elements in a promotion plan are
Personal selling
Advertising
Publicity
Sales promotion
CHAPTER 4
SLIDE 18
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
Personal Selling
Personal selling—in-person, face-toface communication between a seller
and a customer
CHAPTER 4
SLIDE 19
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
Advertising
Advertising—paid communication
between the product maker or seller
and the audience or customer
CHAPTER 4
SLIDE 20
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
Publicity
Publicity—any free notice about a
product, service, or event
CHAPTER 4
SLIDE 21
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
Sales Promotion
Sales promotion—any action or
communication that will encourage a
consumer to buy a product
CHAPTER 4
SLIDE 22
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
LESSON 4.4
Endorsements
GOALS
Describe endorsements and their
restrictions.
Describe qualifications for endorsers.
CHAPTER 4
SLIDE 23
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
What Is an Endorsement?
Endorsement—a person’s public
expression of approval or support for a
product or service
CHAPTER 4
SLIDE 24
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
Legal Restrictions
on Endorsements
 Endorsements must always reflect the honest
opinions, findings, and beliefs or experience
of the endorser.
 The endorser must have real experience with
the product.
 The endorsements may not contain any
deceptive or misleading statements. The
statements must be able to be substantiated
by the advertiser.
CHAPTER 4
SLIDE 25
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
Legal Restrictions
on Endorsements (continued)
 Endorsements may not be presented out of
context or reworded so as to distort in any
way the endorser’s opinion.
 The endorser must use and continue to use
and believe in the product for as long as the
endorser is used in the advertisements.
 If the product changes in any way, the
company must notify the endorser, and the
endorser must continue to use and believe in
the new or revised product.
CHAPTER 4
SLIDE 26
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
Athlete Endorsements
Advantages and disadvantages
How controversial can an endorser be?
Should endorsers speak out on
anything besides the product?
What businesses look for in an endorser
CHAPTER 4
SLIDE 27
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
Advantages and
Disadvantages
 Consumers will buy products endorsed by
celebrities more often than products that are
not so endorsed
 Viewers, listeners, and fans are less likely to
turn off a commercial featuring a celebrity than
a commercial featuring a fictitious character
 Consumers tend to believe celebrities,
especially those who are chosen for their good
public image
CHAPTER 4
SLIDE 28
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
How Controversial
Can an Endorser Be?
A difference between harmful
endorsement and questionable
endorsement
Dennis Rodman
CHAPTER 4
SLIDE 29
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
Should Endorsers
Speak Out?
 Debate over whether celebrity endorsers have
a moral obligation to speak out on controversial
topics
 Athletes are not experts in the field of politics,
labor, human rights, or global issues
 Athletes have a responsibility to know what’s
going on with the business they endorse
CHAPTER 4
SLIDE 30
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
What Businesses Look
for in an Endorser
Positive, charismatic, trustworthy image
A celebrity most consumers know
A celebrity whose career is in process
(not retired)
Presents few risks
Believable relationship with the product
CHAPTER 4
SLIDE 31
© SOUTH-WESTERN/THOMSON