Transcript What is Marketing?

Sports and Entertainment
Marketing
Chapter 1
What is Sports and Entertainment
Marketing?
Chapter 1.1
Marketing Basics
What is Marketing?
 Planning and executing the conception, pricing,
promotion, and distribution of ideas, goods, and
services to create exchanges that satisfy individual
and organizational objectives
 Put Simply
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Create a Product
Market the product for as long as it exists
Meet the needs of your customers
A mutually beneficial exchange relationship exists
 Customers give money, businesses give a produt
The Marketing Mix
 Defines how a business will go about a
marketing plan
 Blends the 4 P’s of Marketing
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Product
Distribution (Place)
Price
Promotion
Product
 What a business offers customers to satisfy
needs
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Can be a product such as basketball shoes
Can be a service like video rentals
 Market First vs. Product First
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Can you think of an example of each?
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DVD Burners…Market First
Singing Wide Mouth Bass …product first
Which is a more sound business practice?
Distribution (Place)
 Locations and methods used to make
products available to customers.
 What are a few of these methods?
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Direct…Dell, Gateway,
Internet…Amazon.com
Indirect…Department Stores, Grocery Stores
Catalogue…Eastbay
 What are some advantages of each of these?
Price
 The amount customers pay in exchange for your
product or service
 What happens if…
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Price too low?
Price too high?
 What are a few things that keep price levels fair?
 Anti-trust laws
 Competition
 Technology..more efficient production methods
Promotion
 Ways to encourage customers to purchase
products and increase customer satisfaction
 Can include
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Advertising
Publicity
Personal Selling
Public Relations
Key Marketing Functions
 Page 6 in Text
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Product/Service Management
Distribution
Selling
Marketing-Information Management
Financing
Pricing
Promotion
Chapter 1.2
What is Sports Marketing
What is Sports Marketing?
 Opening Act (pg. 9) discussion
 Spectators of sporting events are potential
consumers of a wide array of products;
examples????
 Definition -- finding out customer interests
and planning a good or service that they will
buy, using sports to market the product
The Target Market
 What is a target market?
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Specific Group of people you want to reach
 How do you find a target market --
demographic research
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Age, education level, attitudes/beliefs,
income(disposable)
 People buy because of past experience,
referral by family/friends, id with an attitude;
what else????
Spending Habits of Fans
 Research these habits to maximize profits on items
purchased at sporting events
 Price willing to pay for a ticket
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depends on interests, national importance of event,
popularity of athletes, rivalry, etc.
 What affects price your willing to pay for team
merchandise?
Marketing Strategies
 In order to be competitive today, companies
need to stay ahead
 Use creative promotion to attract attention
 Other strategies
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Logos on clothing
Creating New Sports
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X Games
Gross Impression
Timing
Marketing Strategies
 Gross impression -- number of times per advertisement,
game, or show that a product is associated with an
athlete, team, or entertainer (subtle)
 logos on uniforms
 brands used on tv, movies, etc.
 Motorola Headsets during NFL games
 Timing
 fans want to id with a winner
 streaks
 continued winning records
 trends must be monitored
 marketing needs to be unique
Chapter 1.3
Entertainment Marketing
Entertainment For Sale
 We all have a limited amount of free time and
disposable income
 Entertainment Marketing is aimed at getting
us to spend both of the above in specific
places
What is Entertainment?
 Whatever people are willing to spend their
time and money viewing instead of
participating in
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Movies, the Arts, Sporting Events, TV, etc..
Our personalities will control what we feel is
entertaining
Modern Entertainment Marketing
 Early 1900’s- Theater, Concerts, Ballet were
the major forms of entertainment
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The only forms of marketing were posters,
newspapers, magazines, and word of mouth
 1927- First movie with sound in the US…The
Jazz Singer
 1928- Mickey Mouse is animated…10 years
later, Snow White is first full length animated
movie
 1955- DisneyLand opens in California
Change Accelerated
 Technology has contributed to the explosion of
Entertaiment Marketing
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Radio, TV, Internet, Billboards, Busses, Taxis,
Corporate Sports Stadiums (United Center)
 The Big Eye in Every Room
 Television provided access to the homes of consumers
 In 1945, only 9 stations and 7,000 working TV sets in
the US
 American Association of Advertising formed
 1946- NBC and Gillette stage first major sports event
 Heavyweight Boxing….considered a Major success
because 150,000 people watched!!
TV’s Influence on Marketing
 TV added Real Life..sound and movement to
marketing…
 The Rate for TV ads became tied to the
number of viewers a program attracted
 By 1996, 223 Million TV sets in the US
 Advertisers spent $42.5 Billion on television
ads in 1996
Chapter 1.4
Recreation Marketing
Recreational Sports
 Aimed at steering consumers away from home based
entertainment
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Golf, Tennis, Hiking, Bowling, etc..
 Travel and Tourism also considered recreational
activities
 Recreation is defined as: Renewing or Rejuvenating
your mind and body with play or amusing activity
 Recreational Activities: those involved with travel,
tourism, and amateur sports not associated with an
educational institution
Not for the Couch Potato
 Many Rec. Sports require an investment of
both time and money
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Need to purchase equipment, join leagues,
practice, etc…
What recreational activities are popular among
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Teens
30’s
60’s
A Better Image
 Want to Go Bowling???
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Most Popular Rec sport in US
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55 mil people bowled during 1997
Most will watch bowing on TV
 Huge market for advertisers
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The sport lacks excitement and youth
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Tiger Woods credited with “saving” golf
Travel and Tourism
 The worlds largest industry
 Employs 130 Mil people worldwide
 Defined as traveling for pleasure, either
independently or Tour-based
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Vacations, honeymoons, family reunions (most given
reason for traveling), etc.
 Data Mining
 Gathering information about customers
 When, where, and how people travel
 Can gear promotions and advertising around the data
Niche Travel
 Traveling or touring for a specific reason
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Visiting all the Museums in Europe
Touring National Parks in the US
Visiting all Baseball stadiums in the summer
Spring Break Packages for students
 Packages/Tours are put together to meet the
needs of its clients