Transcript Unit 2 powerpoint

Sports and Entertainment
Marketing
Unit 2 Lesson 1
Sports Marketing
Overview
What are some items sports fans
purchase?
Hour 4
Hats
Tshirts
Sweatshirts
Foam fingers
Stickers
Flags
License plates
Food
Earrings
Jackets
Pants
Seat cushions
Socks
Bags
Pom poms
Sticks
Keychains
Coffee cups
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Hour 6
sports marketing:
using sports to market products.
A company with a product or service to
sell must first identify the customer
and learn specific information about
that customer.
target market:
specific group of people you want to reach.
age
gender
marital status
attitudes
beliefs
educational level
income
-also known as
demographics
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Three levels of sports:
amateur sports: a sport which an individual
pursues without payment, but for enjoyment,
challenge or both
college sports: any organized sport affiliated
within a college or university budget (male,
female)
professional sports: teams in which athletes,
organizations and leagues are involved where all
receive some sort of payment for services.
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Opening Act: page 9
Select your favorite sport.
Who is the target market for that
sport?
Why?
Who would be a good sponsor for
this sport?
(College football: 15-40 year old males who
like football, sponsor: Coke)
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Hour 4
disposable income
income freely spent
This area of demographics is very
important to marketers…..WHY?
Price fans pay for a ticket depend
on
interests of the target market
national importance of the event
popularity of the participating
athletes
rivalry (competition)
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Sports marketing strategies
Logos on merchandise
Create new sports
Gross impressions
Perfect timing
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Clothing
Fans buy sports logo clothing for a
variety of reasons:
loyalty
value is high because of the team
name/logo
feel more successful if you own
products endorsed by successful
teams/person
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new sport:
Arena football
Started in 1987
Affordable tickets
Accessible athletes
Fast paced (clock doesn’t stop)
High scoring game
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gross impression:
number of times per advertisement, game,
or show that a product or service is
associated with an ATHLETE, TEAM or
ENTERTAINER.
Every time you see a product or logo on
the back of a pair of shoes, a jersey,
around the arena or the media mentions a
player, team, or product your brain records
that image.
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Timing
Winning is EVERYTHING!
Popularity of teams and
individuals is based almost
entirely on winning.
Even tragic events can spark sales—
Herb Brooks and Kirby Puckett……
Unit 2 Lesson 2
Amateur Sports
softball golf cup stacking skateboarding
frolf running cross country skiing poker
swimming downhill skiing body building
bocce ball
Have you SEEN cupstacking?
amateur athlete:
someone who does not get paid but plays for
enjoyment, challenge or both
professional athletes:
usually young, strong, healthy
amateur athletes: any age, physical
condition or challenge
(all that’s needed is a want to be one)
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Read the
Opening Act
page 41
Answer these questions:
1. What amateur sports interest you?
2. Do you participate or spectate?
3. How much money do you spend on
each sport?
(see back of lesson 2 worksheet)
Be ready to report your results to the
class.
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Marketing is essential
in EVERY sport.
amateur athletes (and spectators)
need equipment, and money to
participate
Both athletes and spectators need
equipment: uniforms, shoes, pads, bags,
lawn chairs, portable stadium seats, coolers, food
and………
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Read page 45 question 4.
Discussion
What do you think the phrase
“soccer moms” means?
Why would someone running
for political office pay attention
to soccer moms?
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Unit 2 Lesson 3
College Sports
COLLEGIATE SPORTS
Winning Strategies p. 29
Why is Tostitos a good sponsor for a
bowl game in the Southwest?
Name three other sponsors of bowl
games.....
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NCAA
(National Collegiate Athletic Association):
governing body of most college and
university athletic programs. It
creates and enforces guidelines and
rules that schools must follow in
order to remain in good standing.
(areas: recruitment, gender equity, scholarships,
gambling prohibitions, ethical issues such as
illegal activities...drugs, alcohol, other offences).
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How to join:
college or university must be accredited
four men, four women’s sports (one in each
season)
follows NCAA rules
cooperates with NCAA enforcement and accepts
penalties.
Current NCAA news: Beginning February 2006 no nicknames or
mascots deemed “hostile or abusive” will not be allowed on team
uniforms or other clothing. 18 schools affected: UND Fighting
Sioux is one
Goal: promote college athletics with integrity and
focus on athletes and their game.
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Effects of College Sports
1. Ranking of teams is important!
teams get more exposure for their
sponsors.
2. Women’s Collegiate Sports
It wasn’t until 1980 that NCAA focused on
women’s sports.
Female athletes and sports continue to
grow and continue to have challenges
on increasing
attendance/sales/enrollment
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Effects of College Sports
3. Community Benefits
events impact more than just that
team and the school. Each event
brings in spectators from all over.
Spectators provide business to:
hotels
restaurants
shopping malls
concession
gas stations
souvenir shops
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Effects of College Sports
4. sponsorship:
provides money for college
programs, and exposure for
sponsoring company
It’s about financing or generating
revenue for programs. And
corporations also sell their products
and services on site.
There are 2 winners with
sponsorship…..
the team benefits from the revenue
the sponsor benefits from higher
sales of their merchandise
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A city with a popular college team can
expect these revenues for ONE football
game:
Ticket sales:
$3 million
Stadium food:
$380,000
Hotel sales:
$210,000 to $420,000
Restaurants,
shopping,
transportation:
$210,000 to $420,000
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Read Judgment Call page 39
~Alcohol abuse has emerged as one of the biggest
social problems on college campuses. Rape,
assaults, property damage - all are part of the
numbing toll drinking contributes to.
The NIAAA report presented the alarming statistic
that drinking contributed to 1,400 student deaths
each year, 500,000 injuries and 70,000 cases of
sexual assault.
~A 2001 study observed that athletes engage in
binge drinking at higher rates than non-athletes.
Like these athletes, fans of college sports tend to
drink more heavily than non-fans.
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~Dr. Anderson's study found that two-thirds
of all property damage, 64 percent of
violent behavior, 42 percent of physical
injury, 37 percent of emotional difficulty,
and 38 percent of poor academic
performance could be attributed to alcohol
abuse. http://www.csmonitor.com/durable/1999/09/29/text/p2s1.html By Mark
Clayton, Staff writer of The Christian Science Monitor
~NCAA tournament games led all other
sports events in alcohol-related TV ads in
2002. (939 ads NCAA vs 925 in Super
Bowl, World Series, college bowl games
and Monday Night football combined!)
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Alcohol & Academic Performance
This table describes the relationship between
the average number of drinks consumed per
week and grade point average.
3.6
Drinks
5.5
Drinks
7.6
Drinks
10.6
Drinks
A
B
C
D/F
*sponsored by FAU Center for Alcohol and Other Drug Prevention
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Is this sponsorship sending a mixed
message to students that alcohol is
acceptable since it is big money for
sponsorship?
Why is it unusual to have beer
corporations sponsor sporting events
with athletes who are in top physical
shape?
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Effects of College Sports
5. license:
legal right to reproduce a team’s
logo in exchange for payment
(another method of revenue for a
team).
Licensing is used to protect the use of the name
and symbols of a school/team/band/etc. so that
the public won’t confuse the image or identity.
conference:
group of college athletic teams within
the same region
(Big 12: Kansas State, Nebraska, Missouri,
Colorado, Kansas, Iowa State, Texas A &M, texas,
texas Tech, Oklahoma, Oklahoma State, Baylor,
PAC 10: UCLA, Arizona, Oregon, USC, Washington,
Arizona State, California, Oregon State, Stanford,
and Washington State)
Can anyone name the Big 10?
1.
2.
3.
4.
5.
Minnesota
Illinois
Indiana
Ohio State
Iowa
6. Michigan State
7. Michigan
8. Penn State
9. Wisconsin
10.Northwestern
11.Purdue
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To go pro, or not to go pro?
Read page 47, #12
List five questions you can think of
that an amateur/college athlete must
ask themselves when deciding to
become professional.
Unit 2 Lesson 4
Professional Sports
Survey:
What are your favorite
professional sports?
Opening Act
p. 52 (Private ballot)
How much money are you willing to
pay for a ticket to the Super Bowl?
Discuss differing answers.........why,
why, why?
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Financial Impact of Pro Sports
Top Football Franchises
The Washington Redskins are owned
by Daniel Snyder, who bought
them in 1999 for $750 mil. Team
Value: $1.3 billion!
– Revenue
– Operating Income
– Player Expenses
– Gate Receipts
$287 million
$53.8 million
$133 million
$79 million
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Financial Impact of Pro Sports
Top Football Franchises
Dallas Cowboys
New England Patriots
Owner: Jerry Jones
(net worth: $1 bil)
1989
Owner: Robert Kraft
1994
Bought team: $150 mil
Current value: $1.1 bil
Revenue:
$231 mil
Op. Income: $54.3 mil
Player Exp:
$81 mil
Gate Recpts:
$31 mil
Bought team: $172 mil
Current value:
$1 bil
Revenue:
$236 mil
Op. Income: $50.5 mil
Player Exp:
$92 mil
Gate Recpts:
$66 mil
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You better believe
MARKETING is in on this
business!
There is marketing teams, athletes,
coaches, stadiums, leagues, cities,
apparel/equipment, technology,
movies, food/restaurants, etc.
Top 5 Highest Paid Athletes
Tiger Woods $80.3 million
Michael Schumacher $80 million
Peyton Manning $42 million
Michael Jordan $35 million
Shaquille O’Neal $31.9 million
6-KG $30 mil
8-Beckham $28 mi
10- Kobe $26 mil
7-Agassi $28 mil
9-Rodriguez $26 mil
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professional athlete: someone who earns
a living participating in a sport
“big league sports”=professional sports
“BIG” stands for revenue potential or
commercial value just as much as it
stands for “big” as in physical size and
competition
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Financial Planning for a Team
Goal of a business:
PROFIT!
Professional Teams are
BUSINESSES!
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Others benefit from professional teams as well…
A city can benefit from a professional team
especially if:
everyone and everything involved with the team
(staff, headquarters, practice areas, and preseason training facilities) stays within the home
city. –not like the Vikings/Twins
the stadium/arena is used for events other than
those for which it is built. –like the Vikings/Twins
the team attracts other business development
like hotels, restaurants, and retail shops.
(***Remember the Vikings and Twins represent not only
the Twin Cities, but others in North Dakota, South
Dakota, Iowa, and even other states that don’t have
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professional teams).
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PRESTIGE, POWER, PROFITABILITY
What a pro team does for the community:
local employees might get perks from
their employer.....
owners of teams get a place politically
community members get more
enthusiasm and morale
more jobs for the community
families get a place to go for wholesome
entertainment (so watch your mouths....)
more money for the local businesses
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There are the benefits to a professional
team, but in the end…... who pays the
bill?
The new Paul Brown Stadium opened for
the Cincinnati Bengals in 2000. Some of
the costs paid by taxes include:
Scoreboard: $5.4 million
New offices, not including furniture:
$2.67 million
679 wooden-backed chairs etched with
team logo: $135,000.00
Window treatments (curtains/blinds) for
offices $48,106.00
ONE custom made desk:
$4,854.00
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Loss of a team can bring on
depression in a community....
(owners have been known to get bomb
threats, hate letters, death
threats.....HOW PATHETIC!)
Can you say Norm Green?
(MINNESOTA North STARS
now Dallas Stars)
but since winning is everything, was the
move a good decision (Stars won the Stanley
Cup just a few years after moving!)
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Winning is everything
good players go to winning teams.
winning teams have happier fans.
tickets sell faster (and sell out).
teams get more tv/radio airtime for
games and mention.
teams get bigger/better sponsors.
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Read Judgement Call p. 54
Is it right for athletes to earn so
much money?
Is it right for attendees to pay so
much for a few hours of pleasure?
What does this say about what
Americans stand for?
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league:
sports leagues control where the
teams are located, number of
teams etc.
(National Football League, National
Basketball Association, National Hockey
League, Major LEAGUE Baseball)
cartel:
a combination of businesses
formed to regulate
production, pricing, and
marketing of a product.
(In pro sports it would be the “league”)
Cartels are prohibited by federal law, but in
sports they are allowed. Hmmmm….can you
say MONEY talks?
Where to put a new team? Here’s
what to look for:
Large potential customer base
Owners usually want public funds (so a
supportive local government)
Support of other owners (must vote in a new
team/location)
Owner financing (NFL requires from $450 million
to $600 million for an expansion team—that
money is split between existing owners-the
league)
A facility (another LARGE issue, how to pay for it)
Some leagues are managed better than
others…compare NFL to MLB.
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Are you ready for some
FOOTBALL?
Super Bowl Stats 2006
More Americans watched the 2005 Super Bowl than voted
in the 2004 presidential election (133.7 mil vs. 122 mil)
There are more parties for the Super Bowl than New Year’s
Eve.
Domino’s Pizza sales are higher on Super Bowl Sunday than
any other day…duh!
National impact of this event is in the millions of dollars
– Many buy new furniture, TV’s etc. for the game and even
antacids the day after
Detriot reaped est. $350 mil from hosting in 2006 (with
only a few mil invested and 3 years to plan)
Average cost of a ticket: $500 at Ford Field (seats 65,000)
– =$32,500,000
Emerald Nut’s Company advertised the SB and their sales
tripled: 2004: $12.9 million
2005: $42.2 million
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Are you AWAKE now?
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Unit 2 Lesson 5
Role of Products
Read Opening Act p. 283
What logos used to be popular?
What logos are popular now?
Why?
When you wear/carry anything with
a logo you are a Walking Billboard!
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licensing:
permission to copy the logo of a league,
athlete, team, entertainer, film or TV
show for a fee to the owner of the
image.
Steps for licensing
complete business plan
Can you say ENTREPRENEURSHIP?
a sample or drawing of the product
the costs of production and
distribution
a marketing plan
the existing distribution channels for
the product
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Strategies for maximizing profits
– change the logo, color or uniform or use
“old” versions (nostalgic)
– add new items, licenses for use, sales
methods
– widen the market to the world
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~TAKE NOTES….
NOT IN BOOK!~
Product Life Cycle Stages
Product Life Cycle
Introduction
Growth
Maturity
Decline
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Product Life Cycle
Introduction
– first stage, new product introduced, quite different from
other products, customers don’t know what it is or how
it might satisfy their needs
– Basic product, few features, higher price
Growth
– new product introduced, attracts more customers, sales
grow rapidly, competitors counteract
– added features, brand important, range of prices
Maturity
– sales peak, profits decline, all customers and all
competitors are in the market, intense competition
– price adjustment, more customer service, competitive
pricing/promotion
Decline
– sales rapidly drop, little profit, businesses get out,
additional uses of product
– prices need to be high to compensate for low sales.
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Stages in a Life Cycle
sales
time
profits
introduction
growth
maturity
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decline
brand:
a name, term, design or
symbol, that identifies a business
or organization and its products
(unique)
trademark:
a LEGAL protection for words,
symbols for use by one company
Do you own a piece of clothing
with a professional team logo
on it?
What other items (besides
clothing) are popular for sports
logos?
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Unit 2 Lesson 6
Role of Pricing and Place
Computer Lab Introduction:
p. 60 Cyber Marketing
Think about buying products on-line vs. in
store vs. at arena/stadium.
Where is selection best?
Where were prices higher? Why?
Were there items on-line that you wouldn’t
find in a mall? Why?
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~TAKE NOTES….
NOT IN BOOK!~
price:
the value of money placed on a
good or service
(Source: Marketing Essentials-Glencoe 2002 p. 451)
A price must be set that is high
enough to make a profit ,but not so
high that consumers will not want to
buy.
(Source: South-Western Marketing 2002)
Does higher price means better
product?
– (local game vs. Super Bowl)
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What factors
cause
concession
prices to be
higher than
store prices?
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break-even point:
point where sales and revenue
equal cost of making and
distributing a product
(administration, concession staff,
security, coaches, players)
This is where PROFIT begins!
PLACE/DISTRIBUTION
channel of distribution: path a
product takes from producer or
manufacturer to final user
wholesalers: buy large quantities of
goods and re-sell them to smaller
businesses.
retailers: sell goods to the final user
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Unit 2 Lesson 7
Role of Promotion
magazines
web sites
billboards
radio
PROMOTION
Focus: How do you hear
about products? What
influences what you buy?
newspaper
movies
television
bathroom stalls
video games
~TAKE NOTES—NOT IN BOOK~
promotion:
publicizing or advertising a
product, service or event with
the goal of selling it.
Two purposes of
promotion/increase sales:
1. maintaining current
customers/markets
2. attracting new customers/markets
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Promotion
Promotion
Mix
Publicity
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Sales
Promotion
Personal
Selling
Advertising
4 Types of Promotion
(learn these, love these)
advertising
publicity
personal selling
sales promotion
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4 Elements of the Promotional Mix
(learn these, love these)
advertising
– paid communication between a product maker and the
audience (tv, magazine, newspaper, billboard, etc.)
publicity
– free notice about a product, service or event (tv,
newspapers, radio, magazines, speaking at events,
volunteering, donations etc.)
personal selling
– door to door, in the home, sales person to
customer
sales promotion
– action or communication that will encourage a consumer
to buy a product
– specials, limited-time offers, giveaways, coupons, free
samples
Sports and Entertainment Marketing:
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Promotional Planning Process
(Marketing, South-Western 2002 p. 416)
Analyze the Market (competition etc.)
Identify the Target Market
Develop Promotional Objectives
(inform, persuade, change attitudes, broaden awareness,
action customer to take: try product, come to an
event, buy more)
Develop Promotional Budget
Select Promotional Mix
Implement Promotional Plan
EVALUATE RESULTS!!
Sports and Entertainment Marketing:
Unit 2
Na na na na, na na na na,
hey hey hey…….
Goodbye!