Transcript PowerPoint 2

Similarities in Marketing
Chapter 2 Section 2
Changes in Marketing




Many marketers consider People to be the
fifth P in the marketing mix.
Marketers have new tools to work with that
they did not have years ago.
Direct TV, TiVo, video, CD’s, CD burners,
DVD’s, MP3’s, PC’s, PDA’s, interactive gaming,
and virtual advertising.
New technologies have broaden the scope of
marketing messages.
Marketing Similarities


Sports and Entertainment products are
similar in that they are marketed
different from traditional products
They differ in four areas: product,
place, price, and promotion.
Product



S and E products are not often physical
products that can be stacked on a shelf.
Entertainment presentations and athletic
competitions are both dynamic and can be
used to promote unrelated products.
ESPN restaurants do not sell tickets to the
game, and Tiger Woods sells everything from
cars to clothing.
Product
EndorsementsIs approval or support of a product or idea,
usually by a celebrity lending his or her image
or name to a product.
Have you ever purchased a product based on
an endorsement?
Marketers must match the celebrity with a
proper product. George Foreman and makeup do not mix.

Product
A Core product- is the main product.
The sporting event, the play, the movie, etc,
etc.
 The ancillary product- is a product that is
created from the core product.
A ride in an amusement park based on a
movie. A DVD recording from a play is
another example.
See page 34, figure 2.1

Product

Companies can increase their revenue
by using the core product and the
ancillary product together as
promotional tools.
Place

The changing nature of the place
component in the marketing mix has
affected traditional marketing more
than sports and entertainment
marketing. E-commerce has changed
where people buy their products.
Place

Successful S and E marketing strategies
have always appealed to the desire to
go out to a special event.
Price




Pricing S and E products is different from
traditional products.
S and E product pricing is never lowered and
has risen steadily over the past few years.
Price is set and adhered to uniformly based
on what theaters and sports teams can
charge and what people can pay.
Box seating vs outfield seating- a customer
gets more for their money in a box seat.
Price Problems




Actors Guild strike
Players strike
Piracy- unauthorized copying of a
movies or songs. Invades the
intellectual property rights of the
producer of the movie or song
Ticket Scalping
Price Royalties


When people purchase entertainment in
a store, or use it in another form for
profit, a portion of that profit called a
royalty usually goes to the artist or
owner. It is a payment for material that
has been copyrighted, or legally
declared as belonging to the creator.
North Penn plays for example.
Promotion


S and E marketing uses two tools to
promote goods.
The first one is Product tie ins- it is
the use of ancillary products such as
merchandise as promotional tools.
Example would be a Happy meal from
Micky D’s.
Promotion

Cross-PromotionIs the second type of promotion used.
It is any form of communication
through which one industry relies on
another industry to promote its product.
NASCAR racing is an example.
Promotion

Convergence- is the overlapping of
product promotion. A studio may
use TV advertising to promote a
movie that one day may be sold to
television.
Promotion

Synergy- one of the biggest similarities
between S and E marketing is the potential
for convergence and cross-promotion. These
two entities help create a product’s synergy.
Synergy is a combined action that occurs
when products owned by one source promote
the growth of related products.
Oprah’s magazine and her show. One feeds
off the other.
Risks and Risk Management


Risks are unforeseen negative events
which affect a business. Injuries to
players and illness to actors are
examples.
Risk Management is the legal aspect of
a business. People are hired to identify
possible business risks.
Risks and Risk Management



Writing contracts
Writing insurance policies
See page 37 for different types of risk
insurance coverage.