Transcript Chapter 11 Marketing Plans

SPORTS AND ENTERTAINMENT MARKETING
CHAPTER
11
Marketing Plans
11.1 Advertising
11.2 Marketing Research
11.3 Develop a Marketing Plan
11.4 The Bottom Line
CHAPTER 11
SLIDE 1
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
LESSON 11.1
Advertising
GOALS
Explain the steps in the advertising
process.
Understand the importance of
measuring advertising effectiveness.
CHAPTER 11
SLIDE 2
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
Advertising
Advertising—paid, non-personal
communication between an identified
sponsor and a potential customer about
a product or service
CHAPTER 11
SLIDE 3
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
Step By Step
 Set measurable advertising goal
 Develop the advertising budget
 Create an advertising theme
 Choose the advertising media
 Create the advertisement
 Develop an advertising schedule
 Measure the effectiveness of the advertisement
CHAPTER 11
SLIDE 4
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
The Goal
Determine a specific measurable goal
Ad effectiveness
Brand recognition—the number of
people who recognize the brand name
of a product
CHAPTER 11
SLIDE 5
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
The Budget
Marginal analysis
Percent of sales
Bartering
Fixed sum per unit
Payout planning
Competitive parity
CHAPTER 11
SLIDE 6
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
The Theme
Tag line—theme of an ad
Conveys the main message of the ad
CHAPTER 11
SLIDE 7
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
The Media
 Print
 Broadcast/cable
 The Internet
 Media strategy—choosing the media that will
bring the most effective advertising message
to the targeted consumer
 Reach—information about which targeted
demographic segments are most likely to be
reached
CHAPTER 11
SLIDE 8
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
The Advertisement
Copy
Art
Wear out—when an ad loses its
effectiveness due to overexposure or
poor message quality
CHAPTER 11
SLIDE 9
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
The Schedule
Cost-effective media
Concentration strategy of scheduling
Dominance strategy
CHAPTER 11
SLIDE 10
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
The Effectiveness
Response rate
Ad effectiveness helps to shape and
improve a business’s future media
strategy
CHAPTER 11
SLIDE 11
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
Pulling It All Together
Dominance strategy
Running the show
Shows “pitched” to advertisers
Primetime advertising
Expected audience ratings
CHAPTER 11
SLIDE 12
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
LESSON 11.2
Marketing Research
GOALS
Define the purposes of marketing
research.
Understand the human element in
marketing research.
CHAPTER 11
SLIDE 13
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
Researching the Market
New marketing medium
1940—television
Early 21st century—Internet
Mass market—broad categories of
people
CHAPTER 11
SLIDE 14
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
Marketing Information
 Marketing research—the process of
determining what customers want
 Define the problem
 Analyze current conditions
 Develop the process
 Collect, organize, and analyze the data
 Determine a solution to the problem
 Evaluate the results from the changes
CHAPTER 11
SLIDE 15
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
Data Mining
Data mining—digging up data needed
to make decisions
Nielsen Media Research
Sample—an estimate of how many
people watch a TV show
CHAPTER 11
SLIDE 16
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
School’s Out
School holiday and weekends
U.S. youth ages 8–21
52 million
Annual income of $211 billion
Harris Interactive YouthPulse
E-commerce
CHAPTER 11
SLIDE 17
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
Who Is Asking?
Specialized marketing research
Custom research
Syndicated research
What’s in it for me?
CHAPTER 11
SLIDE 18
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
Worldwide Data
Global market continues to grow
Culture of potential new customers
Marketing information must be used to
shape its product for new customers
CHAPTER 11
SLIDE 19
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
Careers in
Marketing Research
Collect data
Track sales
Monitor advertising spending
CHAPTER 11
SLIDE 20
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
LESSON 11.3
Develop a Marketing Plan
GOALS
Explain the purpose of a marketing
plan.
Describe the components of a strategic
marketing plan.
CHAPTER 11
SLIDE 21
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
Know Where
You Are Headed
Marketing plan—a written component
of the strategic plan that addresses how
the company will carry out the key
marketing functions
Mission statement—the identification
of the nature of the business or the
reasons the business exists
CHAPTER 11
SLIDE 22
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
A Sense of Direction
Analyze data
Decide what your customers want
Delivery
Customers’ future needs
Specific needs of the firm and the
products
CHAPTER 11
SLIDE 23
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
Focusing on the Customer
Blockbuster
Overhauled business model and
marketing strategy plan
More of what the customer wants
CHAPTER 11
SLIDE 24
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
What’s The Plan?
Perishable product
Pre-sale
CHAPTER 11
SLIDE 25
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
Components of a
Strategic Marketing Plan









Mission
Goals
Product planning
Marketing-information
management
Distribution system
Pricing
Promotional strategies
Financing
Purchasing
CHAPTER 11
SLIDE 26




Risk management
Selling
People
Internal communication
systems
 Timelines for
implementing the plan
 Intervals of review and
evaluation
 The future
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
LESSON 11.4
The Bottom Line
GOALS
Discuss the profit motive behind sports
and entertainment marketing.
Describe the types of financing related
to sports and entertainment marketing.
CHAPTER 11
SLIDE 27
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
Let’s Make Money!
Profit—the amount of money remaining
after all costs, including salaries,
advertising, utilities, and other
expenditures, have been paid
Who gets the money?
CHAPTER 11
SLIDE 28
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
And More Money!
Challenges of physical limits
New homes for sports teams
Did we make money?
CHAPTER 11
SLIDE 29
© SOUTH-WESTERN/THOMSON
Challenges of
Physical Limits
SPORTS AND ENTERTAINMENT MARKETING
Limited number of seats
Sources of revenue with potential
growth
Personal seat licenses
Concessions
Commercial licenses
CHAPTER 11
SLIDE 30
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
New Homes
for Sports Teams
Professional sports stadiums costly
Public subsidy
Higher ticket prices
CHAPTER 11
SLIDE 31
© SOUTH-WESTERN/THOMSON
SPORTS AND ENTERTAINMENT MARKETING
Did We Make Money?
 Forecast—predicts the cost of expenses and
expected revenues from an event
 Budget—provides estimates of expected
expenditures and revenues
 Balance sheet—shows the company’s current
assets, including cash, property, and equipment,
and it current liabilities, including debts owed and
loans
 Income statement—a record of all revenue
received and all expenses incurred
CHAPTER 11
SLIDE 32
© SOUTH-WESTERN/THOMSON