Transcript Difference between Sports & Entertainment

Differences in Marketing
Sports and Entertainment Events
Differences in Marketing
For example:
Entertainment
Sports
Based on creative
ideas that can be
fashioned to fit the
tastes of a target
audience.
Based on athletic
ability and
competition
Differences Between Sports &
Entertainment
• Consumer loyalty
• Product
• Revenue stream
Differences in Consumer Loyalty
• Sports fans enjoy the drama of real competition and
the unpredictability of each game.
• Consumer loyalty occurs when consumers are happy
with a company’s product and become repeat
customers.
• Sports marketers target a core group of fans & work
on maintaining their team loyalty, or consumer loyalty.
• Sports franchises spend more effort marketing a
winning season to their target markets than trying to
appeal to new and different consumer groups.
Maple Leaf Sports &
Entertainment
• Owns Toronto Maple Leafs,
Toronto Raptors, Toronto FC,
Toronto Marlies, Toronto Rock
Facts - Toronto Maple Leafs
• Last year finished 25th
in the 30-team NHL.
• For seven seasons have
not made it to the play
offs.
• Still attendance
averaged 19,260 last
season.
• In platinum seats along
the glass, people paid
$1,317 a game for a pair
of seats.
Facts - Raptors
• In 17 seasons the team has
advanced to the second round
of the playoffs just once.
• This year they are predicted
to finish in the cellar.
• Average attendance last year
was 17,897.
• Court side tickets cost $2,240
a pair.
Facts – Toronto FC
• Has yet to make the
playoffs in six
seasons.
• BMO field is sold out
for nearly every
home game.
• Top ticket cost $97.00
Entertainment
• The entertainment consumer is not motivated by
brand or team loyalty, but by a desire for satisfying
entertainment.
• Subject to trends that dictate “what’s hot and what’s
not”. Entertainment marketers target each product
to a well defined consumer group.
• An individual artist might successfully maintain a loyal
fan base, but entertainment production companies
have difficulty creating that same kind of consumer
loyalty.
Differences in Product
• Another big difference between sports product and
entertainment product is the consistency, or stability
of the sport product and the variability or
changeability of the entertainment product.
• With sports the core product remains the same – a
sports team in competition.
• For entertainment products however, marketers have
to predict a trend or fad, and produce the product to
satisfy audience demand.
Differences in Revenue Stream
•
Both sports and entertainment
have their own streams of
revenue.
•
With entertainment products
many diverse streams of
revenue can be generated. A
single film can generate many
ancillary products.
•
The products that make use of
the original creative idea or
characters make a profit for
the owner through sales,
royalties and licensing fees.
•
However, sporting events do not
usually produce the same amount
of revenue from merchandising
and royalties as might an
entertainment event.
Sponsorship
• Sponsorship is the
promotion of a
company in
association with an
event or property.
Project or Event Sponsorship
• One form of
sponsorship is when
a company sponsors
or gives money to
another person or
company to fund a
project or
production in
exchange for
something, such as
advertising.
Corporate Box Sponsorship
• Another form of
sponsorship is
corporate boxes in
stadiums.
• Corporations use
them as a marketing
tool to entertain and
network with their
own clients.
Sponsorship – Naming Rights
• Sponsorship revenue
can also come from
selling stadium
naming rights. This
is where the
sponsors pay for the
privilege of having
stadiums named
after their business.
Advertising and Broadcasting
Rights
• Virtual advertising is a new
phenomenon that has created
revenue for sports teams and
venues.
• Companies can now pay to
have their logos digitally
overlaid onto a billboard
during a televised game.
• Sports franchise also earn
revenue by landing broadcast
deals with television
companies. TV networks
make million-dollar deals with
sports leagues for exclusive
rights to broadcast games.