Transcript Examples of Sports Marketing

Unit 2 – What is SEM?
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© 2010 by Sports Career Consulting, LLC
UNIT 2 OBJECTIVES
What is SEM?
1) Define sports marketing and
entertainment marketing
2) Explain the two primary types of sports
and entertainment marketing
3) Compare and contrast sports marketing
and entertainment marketing
4) Describe the seven functions of
marketing
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© 2010 by Sports Career Consulting, LLC
UNIT 2 OBJECTIVES
What is SEM?
5) Understand what makes sports and
entertainment products unique
6) Explain the concept of competition for
entertainment dollars
7) Identify the five P’s of event
marketing
8) Explain the event triangle
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Lesson 2.1
Sports & Entertainment
Marketing Defined
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What is SEM?
UNIT 2
"I'm tired of hearing about
money, money, money, money,
money. I just want to play the
game, drink Pepsi, wear Reebok.”
- NBA Star, Shaquille O'Neal
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What is SEM?
UNIT 2
What is Sports &
Entertainment Marketing?
To define Sports & Entertainment Marketing, you
must first understand the foundation of the term:

Marketing

Sports

Entertainment
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What is SEM?
UNIT 2
Marketing
Sports
The process of
developing,
promoting, and
distributing
products, or goods
and services to
satisfy customers’
needs and wants
Entertainment
A source of
diversion or
physical activity
engaged in for
pleasure
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Whatever
people are
willing to spend
their money
and spare time
viewing rather
than
participating
What is SEM?
UNIT 2
Leisure Time
It is the goal of the sports
and entertainment
marketer to provide a
product or service that
can satisfy the needs and
wants of those individuals
who choose to be
entertained during their
leisure time
Copyright
Leisure time is the
time available to
people when they
are not working or
assuming
responsibilities, often
times referred to as
“free time”
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Lesson 2.2
The Fusion of Marketing
with Sports & Entertainment
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What is SEM?
UNIT 2
Sports Marketing is the act of using
sports as a platform to market products
or services and increase sales or the
process the of marketing and selling the
sports property itself
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What is SEM?
UNIT 2
Fundamental Concept of SEM:
Marketing through Sports & Entertainment
vs.
Marketing of Sports & Entertainment
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What is SEM?
UNIT 2
Marketing through Sports & Entertainment
Companies use sports and entertainment as
a vehicle to gain exposure for their products
Kia Motors sponsoring the World Cup
VitaminWater affiliating its product
with celebrities like Steve Nash,
Carrie Underwood, Jennifer Aniston,
David Ortiz and Steve Nash
HP serving as presenting sponsor of
the Sundance Film Festival
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What is SEM?
UNIT 2
Marketing through Sports & Entertainment
A CEO entertaining potential customers at a PGA
Golf Event in the hospitality area as a sales tool
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What is SEM?
UNIT 2
Marketing through
Sports & Entertainment
Product placement is a tactic
companies use to place their products
within a particular form of
entertainment to gain visibility or
exposure
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What is SEM?
UNIT 2
Marketing through
Sports & Entertainment
Audi being prominently
featured in the new “Iron
Man 2” movie
Judges on the hit show
American Idol drinking Coke
products during episodes
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What is SEM?
UNIT 2
Marketing of Sports & Entertainment
Marketing of Sports & Entertainment involves
the promotion and sales of the sports and
entertainment products themselves
The Potomac Nationals baseball club
selling special “Holiday” ticket packages
Branding the 2010 Winter Games with
the slogan “With Glowing Hearts”
Paramount Pictures spending over $130
million in marketing and promotion for
the film “The Last Airbender”
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What is SEM?
UNIT 2
Marketing of Sports & Entertainment
Marketing of Sports & Entertainment involves
the promotion and sales of the sports and
entertainment products themselves
Nike advertising the launch of a new
sneaker or shoe line
Astro Turf selling and installing a
synthetic grass football field to a college
Artist Jay Sean attending the "Jersey
Shore" soundtrack album release party
in New York City
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What is SEM?
UNIT 2
Discussion Topic
Let’s say Adidas invests in a luxury
suite at the Staples Center in Los Angeles.
Is this an example of the marketing of
sports or an example of marketing through
sports?
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What is SEM?
UNIT 2
Discussion Topic
The Adidas investment in a luxury suite
at the Staples Center arena provides an
example of BOTH marketing of sports
and marketing through sports
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What is SEM?
UNIT 2
Discussion Topic
Marketing of Sports:
The marketing OF sports occurs as the
Staples Center marketing staff actively
engages in the activity of selling suites to
corporations, thereby marketing their
products
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What is SEM?
UNIT 2
Discussion Topic
Marketing through Sports:
Occurs as Adidas uses the suite for events
(NBA’s Lakers or Clippers basketball games,
Disney on Ice, Rolling Stones Concert, Barnum
& Bailey Circus, Harlem Globetrotters, NHL’s
Kings, WNBA’s Sparks etc.) to entertain
customers, prospective customers and
employees
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What is SEM?
UNIT 2
Sports Management vs. Sports Marketing
Sports management is the study
and practice of all people, activities,
businesses or organizations involved
in producing, facilitating, promoting
or organizing any sport-related
business or product
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What is SEM?
UNIT 2
Sport management areas of
study might include:
 Sport law
 Facility management
 Human resources
 Sport governance
 Leadership
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UNIT 2
Examples of Sports Marketing
 Tostitos sponsoring the Fiesta Bowl
 A NHL team offering payment plan options for
season ticket buyers
 NBC paying $5.7 billion for the TV rights in the U.S. to
the Olympics from 2000 to 2012
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What is SEM?
UNIT 2
Examples of Sports Marketing
 A corporation’s purchase of a courtside tickets in a
NBA Arena
 A sign or banner displaying a company’s logo at a
hockey rink
 Coca-Cola paying for “pour rights” at an event or
facility
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What is SEM?
UNIT 2
Examples of Sports Marketing
 A local restaurant sponsoring the local high school
soccer team
 The Goodyear Blimp flying over sporting events
 Fans receiving free bobble
head dolls at a baseball game
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What is SEM?
UNIT 2
Examples of Sports Marketing
 Nike partnering with Apple to launch new technology
for runners
 Foot Locker stores offering special sales or coupons
to help increase sales
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What is SEM?
UNIT 2
Examples of Sports Marketing
 Former NBA star Charles Barkley
hosting Saturday Night Live
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What is SEM?
UNIT 2
Entertainment Marketing is the process of
developing, promoting, and distributing
products, or goods and services, to satisfy
customer’s needs and wants through
entertainment, or any diversion, amusement,
or method of occupying time
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What is SEM?
UNIT 2
Examples of Entertainment
 Seeing the Houston Symphony perform at Jones Hall in
downtown Houston
 Attending a LSU Tigers football game
 Reading Stephanie Meyer’s novel Twilight
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What is SEM?
UNIT 2
Examples of Entertainment
 Visiting the Seattle Aquarium
 Going to a Justin Timberlake or Jack Johnson concert
 Listening to the newest Lady GaGa song on your mp3
player
 Watching the Broadway musical “Lion King”
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What is SEM?
UNIT 2
Examples of Entertainment
 Going to the Ringling Bros. and Barnum & Bailey circus
at the American Airlines Center in Dallas
 Universal Studios announcing ‘Transformers’ as a new
theme park ride
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What is SEM?
UNIT 2
Technology’s Impact on SEM
A podcast is a digital media file, or
a series of such files, that is
distributed over the Internet using
syndication feeds for playback on
portable media players and personal
computers
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What is SEM?
UNIT 2
Technology’s Impact on SEM
The NHL’s league website
(nhl.com) features a podcast
page which includes podcasts of
its NHL radio show (“This Week
in the NHL”) and podcasts for
individual teams in both audio
and video format (the Minnesota
Wild podcast show is referred to
as the “pondcast”, St. Louis
Blues have a “BluesCast”,
Washington Capitals have a
“Caps Report” etc.)
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What is SEM?
UNIT 2
Technology’s Impact on SEM
Podcast technology opened the door
for comedian Adam Corolla to
reinvent and revive his career after
his network show was cancelled.
Since launching his self-produced
podcast show in February of 2009,
"The Carolla Podcast" has frequently
been the most popular podcast on
iTunes, even edging out President
Obama’s weekly address and
drawing over 3 million downloads in
a given week.
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What is SEM?
UNIT 2
Technology’s Impact on SEM
Sticky marketing is the practice of creating
online content that encourages consumers to
visit a specific Website frequently with the
goal of getting the visitor to explore the site
in greater detail while maximizing the
amount of time the user spends on the site
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What is SEM?
UNIT 2
Technology’s Impact on SEM
Sports Illustrated’s Peter King is widely
credited with the development of one of
the first true “sticky” web marketing
applications. His column, “Monday
Morning QB” gets more than three million
page views per week!
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What is SEM?
UNIT 2
Technology’s Impact on SEM
Yahoo’s site featured dedicated coverage to the 2010
Winter Games in Vancouver provides provides an excellent
example of sticky marketing, boasting an impressive total
of 314 million total minutes spent by visitors on the site,
compared to the 218 million total minutes spent by visitors
to NBC's Olympics site (official broadcaster of the Games).
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What is SEM?
UNIT 2
Technology’s Impact on SEM
Online video rentals (Netflix,
Blockbuster etc.)
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What is SEM?
UNIT 2
Technology’s Impact on SEM
Streaming audio and video capabilities
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What is SEM?
UNIT 2
Streaming Live Events
In 2010, many
major global
sporting events
like the British
Open Golf
Tournament were
streamed through
the Internet
allowing fans to
watch online
and/or on mobile
devices
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What is SEM?
UNIT 2
Technology’s Impact on SEM
To celebrate the band’s reunion, Blink 182 staged
plans to offer one a new twist on traditional touring by
streaming an interactive 3D concert online. The
concert, sponsored by Doritos required only that fans
purchase a bag of chips (Doritos brand of course) and
place the bag in front of their computers webcam for
admission to the show.
Throughout the concert, fans were able to move and
shake their bag of chips to activate certain interactive
actions such as, zooming in and out and other
features and noise picked up from computer
microphones would influence the band’s encore.
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What is SEM?
UNIT 2
Technology’s Impact on SEM
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What is SEM?
UNIT 2
Technology’s Impact on SEM
Consumer’s ability to purchase
entertainment on the Internet
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What is SEM?
UNIT 2
Technology’s Impact on SEM
Advertising: Signage and Displays
American Airlines Arena
unveiled new technology
capable of delivering “live
and dynamic billboard
advertising”, making the
NBA’s Miami Heat the first
U.S. sports franchise to tap
into the next generation of
outdoor media systems
designed to drive revenue
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What is SEM?
UNIT 2
Technology’s Impact on SEM
Advertising: Signage and Displays
The Kansas City Royals
teamed up with Cisco
Systems and AT&T Inc. to
launch a new video platform
that offers customized
advertising, capable of
delivering live game video,
concessions menus and
customized fan content
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Technology enables us
to enrich the
experience for our fans,
who are celebrating 40
years of Royals
baseball this year,” said
Kevin Uhlich, Royals
senior vice president of
business operations
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What is SEM?
UNIT 2
Technology’s Impact on SEM
Advertising: Virtual Ads
Advertising firm “Instadium.com” sells promotional
materials and “touchpoints” to advertisers at venues
such as Coors field in Denver. They have ads
positioned in hundreds of locations around the
stadium, from rotational signage around the field
perimeter to ads in the restrooms, concessions
areas, and concourses. Fans can’t help but be
exposed to their messages.
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What is SEM?
UNIT 2
Technology’s Impact on SEM
Advertising: Virtual Ads
During the 2009 playoffs, the NHL provided an
opportunity for a sponsor to preview the potential
impact of virtual advertising when, during the third
period of MSG Network’s telecast of two playoff
games, Subway logos were superimposed on the
glass areas behind each goal and at center ice. The
results were impressive, as sponsors averaged
nearly 20 minutes of quality on-screen time per
game from the high-tech broadcast enhancement.
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What is SEM?
UNIT 2
Technology’s Impact on SEM
Advertising: Interactive Shopping
An upcoming Blu-ray film will
reportedly feature an e-commerce
application that will allow viewers to
shop for products in the movie and
purchase them through the Internet
with BD Live (BD-Live is a newly
developed Blu-ray feature that
allows users to access additional
content with any internet-connected
Blu-ray player)
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What is SEM?
UNIT 2
Technology’s Impact on SEM
Audio / Visual Enhancement
In a sentiment shared by sports consumers
everywhere, ESPN writer Bill Simmons discusses
how HD television has revolutionized the fan
(viewer’s) experience: “It's a new world for sports
fans: an intimacy that can't be found otherwise,
unless you're paying through the nose for great
seats. I thought I'd like sports less when I got
older. Actually, I like them more. And it's partly
because of HD. I'm constantly saying to myself, I
can't get over how great that looks!”
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What is SEM?
UNIT 2
Technology’s Impact on SEM
Audio / Visual Enhancement
Over 1,000 FM radio stations are now broadcasting in
high definition (special HD-ready receivers are
required to hear the high quality signal)
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What is SEM?
UNIT 2
Technology’s Impact on SEM
Audio / Visual Enhancement
A 2010 estimate suggests that
global sales of Blu-Ray players will
reach 62.5 million units by 2011
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What is SEM?
UNIT 2
Technology’s Impact on SEM
Audio / Visual Enhancement
According to a report by Variety,
2.7 million Blu-Ray copies of
Avatar were sold in the first four
days of its retail release. Perhaps
a testament to the growing
demand for Blu-ray content, Bluray accounted for 40% of sales for
the movie in that four-day window.
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What is SEM?
UNIT 2
Technology’s Impact on SEM
Video Games
Games now feature enhanced graphics, creating a
more realistic user experience
Game players now enjoy greater accessibility and
interactive capabilities through the Internet
Through Nintendo’s Wii system, video game
enthusiasts can now enjoy motion sensor technology,
allowing for users to simulate various activities
(such as golf or tennis) using a video game controller
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What is SEM?
UNIT 2
Technology’s Impact on SEM
Video Games
In 2010, Microsoft plans to
up the ante in the motion
sensor technology arena
with the launch of their
“Kinect” accessory that
allows users of the Xbox
360 console to interact with
games without a controller
by simply using gestures
and spoken commands
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What is SEM?
UNIT 2
Technology’s Impact on SEM
Apparel/Footwear/Sporting Goods
Just prior to the 2008 Summer
Olympics, Speedo introduced the
LZR Racer swimsuit, a
technologically advanced piece of
swimwear that features a finely
woven water-repellent microfiber
that cuts down on drag and
features localized compression,
which Speedo officials say
reduces swimmers' energy loss
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What is SEM?
UNIT 2
Technology’s Impact on SEM
Apparel/Footwear/Sporting Goods
The technology was so effective that, in 2010,
swimming's governing body adopted new rules
to limit the role of high-tech suits after seeing
more than 100 world records fall after the suit’s
introduction just one year earlier
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What is SEM?
UNIT 2
Technology’s Impact on SEM
Apparel/Footwear/Sporting Goods
In 2008, Nike teamed
up with Apple to
launch the Nike+iPod
Sports Kit, a device
which allows users to
measure and record
the distance and pace
of a walk or run
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What is SEM?
UNIT 2
Technology’s Impact on SEM
Apparel/Footwear/Sporting Goods
In 2010, Adidas introduced
similar technology with
MiCoach, a system the
company’s website calls “the
interactive personal coaching
and training system” which
relies on a mobile phone’s GPS
systems allowing the app to
track distance, pace, and
calories, all while coaching
athletes based on their pace
and training regimen
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What is SEM?
UNIT 2
Technology’s Impact on SEM
Broadcasting / Viewer Experience
In 2009, golf fans were able to view multiple video
feeds of the Masters on their TV screens to keep up
with action at different points on the course
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What is SEM?
UNIT 2
Technology’s Impact on SEM
Broadcasting / Viewer Experience
With the re-emergence
of 3D technology (3D
has been around since
silent films in the early
20th century), the
viewing experience has
been taken to a whole
new level
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Lesson 2.3
Sports ARE Entertainment
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What is SEM?
UNIT 2
Sports ARE Entertainment!
Sports are a form of
entertainment
Entertainment may
be presented in the
form of sports
 Watching a Broadway
show
 Listening to music on an
mp3 player
 Watching a movie
 Watching a football game
 Playing a game of soccer
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What is SEM?
UNIT 2
Technology’s Impact on SEM
Sports ARE Entertainment
“I believe sports is entertainment. I know there’s athletic
excellence. But when I watch a game-let’s say I’m
watching Charles (Barkley’s) show on (TNT)-it’s not just
for the athletic excellence. Every piece of information is
available in that telecast: scores, highlights, standings,
analysis-0-right? I watch it because it’s entertaining. It’s
about being entertained. It’s about being consumed.
You’re a consumer, and you’re consumed by the
entertainment, you’re engaged by the entertainment.”
- PETER GUBER
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What is SEM?
UNIT 2
Differentiating Between
Sports & Entertainment
Unscripted:
Sports are
“unscripted”
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Consumers of sports do
not know the outcome of
the event in which they
are participating
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What is SEM?
UNIT 2
Differentiating Between
Sports & Entertainment
Sports entertainment
relies heavily on
emotion
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Consumers of sports
products have an
emotional investment
or interest in the
outcome of the event
(winning vs. losing,
close games vs.
“blow outs”)
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What is SEM?
UNIT 2
Differentiating Between
Sports & Entertainment
Customer Loyalty:
Sports expose
differences
in customer loyalty
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A customer decision to
become a repeat
consumer of a particular
product or brand
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What is SEM?
UNIT 2
Integrating Sports with Entertainment
Super Bowl Half-Time Shows
Cross Promotion:
ESPN’s ESPY Awards
Universal Studios partnering
with the Dodgers to promote the
park's new King Kong attraction
TNT tapping pop stars Jamie
Foxx and Justin Timberlake to
lead a marketing campaign for
the 2010 NBA playoffs
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The convergence of
two entertainment
properties working
together to market
products or services
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What is SEM?
UNIT 2
Integrating Sports with Entertainment
Cross promotion can be an effective sales
and branding tool for all parties involved
Variety.com reports that a significant factor in
ESPN’s successful launch of its Chicago-based
website on all things Windy City was cross
promotion, suggesting the cable company used
“plenty of cross-promotion as a way to attract
listeners to the site”
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What is SEM?
UNIT 2
Integrating Sports with Entertainment
By July of 2010, ESPNChicago has become the city’s
top sports site, attracting about 590,000 unique
visitors in the month of June alone while the city’s
historic newspaper company’s (Chicago Tribune) online
sports section drew just 455,000 unique visitors
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What is SEM?
UNIT 2
Integrating Sports with Entertainment
Ratings for the 2010 Tour de France increased 83% on
the Versus network through the first nine days of
competition. Versus President Jamie Davis credited
part of the ratings jump on cross-promotion during its
coverage of the NHL Stanley Cup Playoffs.
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What is SEM?
UNIT 2
Integrating Sports with Entertainment
In the summer of 2009, MLB partnered with Walt Disney Pictures and
Jerry Bruckheimer Films to cross promote the 3-D comedy G-Force,
this time determined to push the promotion cautiously. Five years
earlier the league badly botched a Spider-Man 2 promotion in which
MLB had planned to feature the Spider-Man logo on each base during
the All-Star Game. The league received such opposition from fans
and baseball purists that the promo was eventually pulled.
+
=
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Lesson 2.4
Primary Marketing Functions
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What is SEM?
UNIT 2
Primary Functions of Marketing
 Pricing
 Distribution
 Promotion
 Financing
 Selling
 Information-Management
 Product and Service Management
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What is SEM?
UNIT 2
Primary Functions of Marketing
Pricing: Assigning a value to products and services
Price is determined on the basis of supply and demand
Tickets to the Super Bowl are very expensive because
demand is high
In July of 2009, the NFL’s New York Giants announced
a reduction in ticket prices on seats in several sections
of their new stadium that had not yet been sold
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What is SEM?
UNIT 2
Primary Functions of Marketing
Supply and demand is a major
factor influencing pricing
strategies, so much so that many
teams are evaluating the
possibility of moving toward a
“dynamic pricing” structure for
tickets in which games in higher
demand cost more than the same
ticket for a game with lower
demand
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What is SEM?
UNIT 2
Primary Functions of Marketing
Red Box created a
price point of $1 in an
effort to capture a
piece of the lucrative
movie rental business
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What is SEM?
UNIT 2
Primary Functions of Marketing
Distribution: Determining how best to get products
and services to consumers
EA Sports sells their video games in Target and
Best Buy stores, knowing that consumers shop
at those stores for video games and
entertainment
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What is SEM?
UNIT 2
Primary Functions of Marketing
In 2009, TiVo announced plans to provide
“on-demand” access to Blockbuster’s film
catalog to TiVo subscribers
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What is SEM?
UNIT 2
Primary Functions of Marketing
Google announcing plans to
open a digital music store
online to challenge iTunes
Hotel chains offering movie
rental opportunities from the
comfort of a hotel room
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What is SEM?
UNIT 2
Primary Functions of Marketing
The top selling on demand theatrical movie titles in
hotel guest rooms in 2009
1. The Hangover
6. Gran Torino
2. Taken
7. Inglourious Basterds
3. Paul Blart: Mall Cop
8. Quantum of Solace
4. Angels & Demons
9. X-Men Origins
5. The Proposal
10.
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The Ugly Truth
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What is SEM?
UNIT 2
Primary Functions of Marketing
Promotion: Communicating information about
products and services to consumers
Prior to the start of the 2010 NFL training camp, Nike
announced that former college QB Tim Tebow would
have his own Nike shoe through a combined EA
Sports/Nike cross promotion that coincided with the
rollout of the NCAA Football 2011 video game
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What is SEM?
UNIT 2
Primary Functions of Marketing
The Sacramento Kings initiated a ticket sales promotion
shortly after the 2010 NBA draft to capitalize on the
excitement surrounding first-round draft pick DeMarcus
Cousins in which the franchise extended new offers every
hour between noon and 8 p.m. on their website. The special
offers included season ticket deals for less than $17 per
game, access to a VIP reception with the team’s new draft
picks and $150 merchandise vouchers.
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What is SEM?
UNIT 2
Primary Functions of Marketing
In 2009, Sony Pictures Home Entertainment launched
a promotion encouraging consumers to stay home for
vacation with “Movie Staycations” where Sony movies
were being offered at retail stores for less than $10.
Consumers also had the opportunity to visit the “Movie
Staycation” Web page online to download coupons for
an additional $2 off DVDs and $3 off Blu-ray Discs.
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What is SEM?
UNIT 2
Primary Functions of Marketing
Financing activities could include:
 Creating a budget for a company’s marketing
plan
 Analyzing the cost effectiveness of existing or
past marketing efforts
 Providing customers with flexibility in purchasing
company products or services
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What is SEM?
UNIT 2
Primary Functions of Marketing
In NHL Commissioner Gary Bettman’s 2009 midseason “state-of-the-league address”, revenue
projections were updated by dropping its initial growth
expectations. Mr. Bettman suggested the league
expected to generate $2.63 billion to $2.64 billion in
hockey-related revenue for the 2008-09 season.
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What is SEM?
UNIT 2
Primary Functions of Marketing
In Hollywood, a decrease in sales of DVDs and significant
increase in production and marketing expenses has
prompted industrywide reforms that include a crackdown on
budgets
In production of the fourth installment in the Pirates of the
Caribbean, super producer Jerry Bruckheimer has been
working with a budget at least a third less than the last
"Pirates" movie and will include far fewer shooting days and
visual effects shots
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© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
Primary Functions of Marketing
Like many professional sports
franchises, MLB’s Washington
Nationals offer payment plans for
customers purchasing ticket
packages. According to the team’s
website, the Nats’ “Grand Slam EZ Payment Plan allows season
ticket holders to pay a fraction of
the total cost of their tickets in
easy monthly payments. This is
available for either Full, Half, or
Partial Season Ticket Plans.”
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© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
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© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
Primary Functions of Marketing
Selling: Communicating with consumers to assess and
fill their needs, as well as anticipating future needs

Cultivating prospective buyers (or leads) in a
market segment

Conveying the features, advantages and benefits
of a product or service to the prospective buyer

Closing the sale
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© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
Primary Functions of Marketing

Many professional sports teams utilize a call center
to revenue generated by ticket sales

A call center is a physical location where calls are
placed, or received, in high volume for the purpose
of sales, marketing, customer service; typically
through the use of telemarketers

Call centers employ a staff to perform
telemarketing activity with the goal of selling
ticket packages over the telephone
Copyright
© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
Primary Functions of Marketing
In 2009, Georgia Tech outsourced the portion of their
ticket sales operation to a company (Aspire Group) to
manage ticket sales for football and men’s basketball.
Aspire has a full-time sales staff of 15 to 20 people who
work from Georgia Tech’s downtown Atlanta campus.
Copyright
© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
Primary Functions of Marketing
Marketing Information-Management: Gathering
and using information about customers to improve
business decision making
Professional sports teams began offering smaller
ticket packages (half-season, quarter-season,
five-game packages) after determining through
customer research that full season ticket plans
were often too costly and/or time consuming for
many fans to purchase
Copyright
© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
We Have a Seat for You!
PAC-10 Power Pack (Men's):
Cal * USC * UCLA * Arizona *
Arizona State
Best of the West (Women's):
Washington · Cal * UCLA *
USC * Arizona
Fun for Five Family Plan
The best deal in town! The
Fun-for-Five Family Plan allows
you and four friends general
admission tickets to over 10
home games, men's or
women's, at Maples Pavilion at
the remarkable cost of only $2
per person!
Stanford basketball season tickets guarantee
your seat for an entire schedule of college
hoops excitement! Follow both teams as
they march towards March Madness and
guarantee yourself the opportunity to buy
post-season tickets when they get there.
Mini Power-Packages
Designed especially for the first time buyer
and reserve power player, this five-pack of
our most popular games offers big-time
college hoops access to the PAC-10 season
for only $59. As a mini-pack subscriber,
you'll receive reserved seats and guarantee
yourself the opportunity to purchase postseason tickets.
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© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
Primary Functions of Marketing
As visitors pass through the turnstiles at Disneyland in
California, guests are randomly selected to answer
interview questions from friendly staff members
equipped with hand held data recording devices. This
provides Disney management with up to date
information about park guests, such as where they
are from, how many are in their group, and how many
times they have visited the theme park in the past.
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© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
Primary Functions of Marketing
Product/Service Management:
Designing, developing, maintaining,
improving, and acquiring products or
services so they meet customer needs
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© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
Primary Functions of Marketing
One of Nike’s product management efforts includes
the “Nike Kids Field Tester Program” in which
selected applicants will wear Nike shoes for typically
4-8 weeks. Testers keep a daily written account of
information relating to the product. Also, testers
are required log the number of hours the shoes
were worn each day, the surfaces shoes were worn
on, observations regarding the shoe’s fit,
performance and durability.
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© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
Nike’s field
tester program
requires a
thorough and
detailed
application
process
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© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
Primary Functions of Marketing
Sketchers recently unveiled the Shape Up shoe, endorsed
by football legend Joe Montana. The shoes are a new
innovation in sport shoe technology and claim to improve
posture, “tone” leg muscles and promote weight loss.
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Lesson 2.5
Understanding the
Sports & Entertainment Product
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© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
The Sports Product
Products:
Tangible products are
capable of being
physically touched
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Tangible, physical
goods as well as
services and ideas
© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
Primary Functions of Marketing
Sports products are the goods and services
designed to provide benefits to a sports
spectator, participant or sponsor
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© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
The Sports Product
Sports Product: The goods and services designed
to provide benefits to a sports spectator, participant
or sponsor
 Licensed merchandise
 Promotional items
 Participation
 Sports facilities
 Entertainment
 Marketing research
 Equipment and apparel
 Management services
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What is SEM?
UNIT 2
The Sports Product
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What is SEM?
UNIT 2
The Entertainment Product
The entertainment industry’s top revenue producing
products and services include:
 Film & Cinema
 Video Games
 Television
 Theme Parks
 Music & Concerts
 Publications
-
 Radio
Copyright
Newspapers
Books
Magazines
© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
Unique Nature of
Sports & Entertainment Products
Sports and entertainment products often
share common characteristics of services:
Services are perishable
Services are intangible
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© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
The Sports Product
Many sports and
entertainment products
are perishable
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Perishability is the
ability or need to
store or inventory a
product
© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
Unique Nature of
Sports & Entertainment Products
Once a game or event has already taken
place, they no longer carry a value
You can’t sell a seat to yesterday’s game,
yesterday’s concert or yesterday’s ski-lift
ticket!
Copyright
© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
Unique Nature of
Sports & Entertainment Products
Perishability can also apply to playing
careers which impacts product quality
Dallas Mavericks owner Mark Cuban said in a recent
interview, “I wrote a blog post a few years back
saying that NHL players lost more than 1 billion in
wages for their missed season. It could be more than
that if the NFL walks out. The players can't ever get
that money back. Their playing time is perishable.”
Copyright
© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
Unique Nature of
Sports & Entertainment Products
Intangible Product Attributes:
The unobservable characteristics which
a physical good possesses, such as
style, quality, strength, or beauty
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What is SEM?
UNIT 2
Unique Nature of
Sports & Entertainment Products
Examples of intangible product attributes:
The exhilaration we get from running our best
marathon
The thrill of winning a competition
The satisfaction of scoring well on a challenging golf
course
The pride we feel when teams we support win
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© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
Unique Nature of
Sports & Entertainment Products
Examples of intangible product attributes:
The emotional attachment fans invest in their
affiliation with a favorite team
The connection fans feel with other fans (whether
they know them or not) supporting the same players
or teams
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Lesson 2.6
Competition for the
Entertainment Dollar
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What is SEM?
UNIT 2
Competition for the Entertainment Dollar
Discretionary Income:
Money left to spend after
necessary expenses are paid
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What is SEM?
UNIT 2
Competition for the Entertainment Dollar
There is only so much discretionary income
available in today’s economy
The competition for entertainment dollar
increases when the economy is in a recession
Copyright
© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
Competition for the Entertainment Dollar
The results of a Fortune poll released in May of 2009
showed discretionary spending in America to be at
a thirty year low
Regardless of economic conditions, the role of the
sports and entertainment marketer is to find ways
for consumers to spend those dollars with their
organization
Copyright
© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
Discussion Topic:
Competition for the Entertainment Dollar
Consider what you do with your leisure time…
Where do you spend your entertainment dollars?
What entertainment options are available to you in
your community?
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What is SEM?
UNIT 2
Discussion Topic
Competition for the Entertainment Dollar
Let’s examine the many entertainment
possibilities available to residents in the
Denver Metro Area…
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What is SEM?
UNIT 2
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Lesson 2.7
Reaching Consumers
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What is SEM?
UNIT 2
The Elusive Fan
In 2006, the sports marketing book entitled “The
Elusive Fan” was published to examine the volatility
of the sports/entertainment marketplace and the
challenges today’s sports business professionals face
Copyright
© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
An Excerpt from The Elusive Fan
“It’s an October Saturday in Chicago. On television are
two MLB playoff games, two preseason NBA games,
fourteen college football games, five golf tournaments, an
AHL game, an international horse race, two NASCAR races,
and eight soccer matches. The University of Illinois and
Northern Illinois University football teams and the AHL’s
Chicago Wolves have home games. Hawthorne Race
Course has a full card and there’s harness racing at
Balmoral Park. There are twenty-nine high school football
games and the final round of the boys and girls Illinois
high school state championship golf tournaments…”
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What is SEM?
UNIT 2
An Excerpt from The Elusive Fan
“…Youth and recreational league games are also being
played in every community of the Chicago area. What about
the Chicago Bulls, Bears, Blackhawks and Northwestern
Wildcats? The Bulls played at home last night, the Bears
play at home tomorrow, the Blackhawks are away and the
Wildcats had their midseason bye. Of course this does not
include the hundreds of satellite television channels
broadcasting soccer, rugby or cricket games all over the
world; the millions of sports Web sites with fantasy games,
insider information and gamecasts; and a wide variety of
increasingly realistic sports video games.”
Copyright
© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
Discussion Topic:
What is a sports and entertainment business
and marketing professional to do?
What do we mean by the term “elusive fan”?
What challenges lie ahead for sports and
entertainment business professionals?
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What is SEM?
UNIT 2
Challenges for Today’s
Sports Business Professionals
The primary challenge for today’s
sports/entertainment business
professional is capturing consumer
interest and building loyalty once
that connection has been made
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© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
Challenges for Today’s
Sports Business Professionals
Why is loyalty important? Most marketers follow the
widely accepted “20/80 rule”: 20% of customers
account for 80% of company sales
Fans of the popular Twilight film franchise and comic
books will see the movie Twilight Saga: Eclipse
whether or not the movie gets positive reviews (fans
actually camped out three days in advance in Los
Angeles hoping to snag tickets to the premiere)
Copyright
© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
Challenges for Today’s
Sports Business Professionals
Because NASCAR fans are
among the most brand
loyal in all of sports, more
Fortune 500 companies
invest in NASCAR
marketing programs than
any other major sports
property
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© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
Challenges for Today’s
Sports Business Professionals
Because loyalty is so important, many sports and
entertainment organizations implement “loyalty
programs” to reward core customers
UCLA unveiled a loyalty-based point
system in 2009 that will help
determine the order by which fans get
to choose their seats in the new
basketball arena before it opens its
doors for 2012-13 season
Copyright
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What is SEM?
UNIT 2
Challenges for Today’s
Sports Business Professionals
New and emerging sports and
entertainment properties keep the
marketplace in a constant state of
competition and evolution
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What is SEM?
UNIT 2
Challenges for Today’s
Sports Business Professionals
In 2010, Nike announced that its action sports division
is the fastest growing category within the Nike Brand.
The Company anticipates doubling its current
estimated $390 million business by 2015.
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© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
Challenges for Today’s
Sports Business Professionals
Many industry analysts are beginning to ponder the
growth potential of cricket in the U.S.
The American College Cricket Championship began
in 2009, with five Colleges, and quickly grew to 20
Colleges in 2010
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© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
Challenges for Today’s
Sports Business Professionals
ESPN’s action sports X Games franchise’s consumer
products and licensing business does more than
$120 million in retail sales each year
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What is SEM?
UNIT 2
Challenges for Today’s
Sports Business Professionals
In a sport once publicly denounced by Senator and
Presidential Candidate John McCain, Mixed Martial Arts
(MMA) has gained mainstream appeal
The sport is now sanctioned in every
state with an athletic commission
except New York
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© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
Challenges for Today’s
Sports Business Professionals
UFC's pay-per-view audience surpassed boxing and
World Wrestling Entertainment for the first time in
2006, and has been on top ever since
Nearly ever major MMA event today
results in a sold out venue
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© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
Examining the Elusive Fan
 Primary influencers of the fan decision
making process are money and time
 Other factors can include personal issues
like spending time with family,
camaraderie among friends and relaxation
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What is SEM?
UNIT 2
Examining the Elusive Fan
Innovation, enhancement of the overall fan
(consumer) experience and careful market
research become essential components of
marketing plans and strategies
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What is SEM?
UNIT 2
Seven Characteristics of the “Elusive Fan”
1) Pressurized competitive environment
2) Higher fan expectations
3) Paradox of commercialism
4) New technology
5) Individualism
6) Change in family structure/behavior
7) Time pressure
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What is SEM?
UNIT 2
Seven Characteristics of the “Elusive Fan”
Pressurized Competitive Environment
 The sports marketplace is extremely crowded
 Paintball, while not a direct competitor of the
NHL, poses an indirect threat as the sport gains
popularity and has the potential to attract new
sports fans
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What is SEM?
UNIT 2
Seven Characteristics of the “Elusive Fan”
Higher Fan Expectations
 Fans demand a higher consumer experience
than ever before with more concessions
options, newer facilities and advances in
broadcast technologies
Copyright
© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
Seven Characteristics of the “Elusive Fan”
Paradox of Commercialism
In 2010, the WNBA’s New York Liberty The New York
Liberty became the fourth WNBA team to feature
corporate logos on their jerseys by entering a multiyear partnership with Foxwoods Resort Casino (the
jerseys say "Foxwoods" across the front with a small
Liberty logo above)
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© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
Seven Characteristics of the “Elusive Fan”
Paradox of Commercialism
Also in 2010, Bank of Montreal
renewed their jersey sponsorship
with Major League Soccer’s
Toronto FC for a reported $4
million annually through 2015
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© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
Seven Characteristics of the “Elusive Fan”
Paradox of Commercialism
While the debut continues,
sports teams who choose NOT to
sell jersey advertising are
passing up the potential for
extremely lucrative sponsorship
deals (Manchester United
receives $30.4 million annually
from global insurance company
Aon to advertise on their
jerseys)
Copyright
© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
Seven Characteristics of the “Elusive Fan”
New Technology
 Never before have consumers had so much
information or access to sports and entertainment
products at their fingertips with the proliferation of
media channels
 The fan experience is being consistently upgraded
as a direct result of new technologies as consumers
can absorb the sport experience from almost
anywhere
Copyright
© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
Seven Characteristics of the “Elusive Fan”
New Technology
 Devices like the Slingbox or iPhone enable users to
watch live sports or television programming remotely
 In a poll conducted by thebusinessofsports.com,
nearly 2/3 of survey participants indicated they use
Twitter to consume sport-related content
Copyright
© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
Seven Characteristics of the “Elusive Fan”
Individualism
 Society as a whole has become less
focused on group interaction and
developed more specialized interests
 Individualism has slowly resulted in the
deterioration of the popularity of team
sports (4 of the 5 fastest growing sports
last year were the individual sports of
backpacking, surfing, trail running and
bicycling on non-paved surfaces
Copyright
© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
Seven Characteristics of the “Elusive Fan”
Change in Family Structure/Behavior
 Today, more than half of all U.S. families are
divorced, single parent or diverse groups of
unrelated people
 As a result, the decision making process for sports
and entertainment participation becomes more
complicated
Copyright
© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
Seven Characteristics of the “Elusive Fan”
Time Pressure
 The time demands Americans face today offer fewer
hours for the consumption of sport in any capacity,
be it as a spectator or participant
 It is not simply the activity itself
that poses challenges for
consumers
Copyright
© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
Discussion Topic
Think about the last time you
participated as a spectator in a sports
or entertainment event (basketball
game, movie, concert etc).
How much of your leisure time was
spent consuming the activity?
Copyright
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What is SEM?
UNIT 2
Discussion Topic
Consider the plight of a sports fan that
purchased tickets to see a Washington
Wizards game. Tip-off is at 7:00 p.m. and
the fan leaves work at 5:00 to meet a friend
at a local restaurant for a pre-game dinner.
Given traffic and parking issues, that fan may
not get home until 11:30 p.m…
That two or three hour game has now eaten
up almost six hours of the consumer’s day!
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© 2010 by Sports Career Consulting, LLC
Lesson 2.8
Introduction to
Event Marketing & Management
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What is SEM?
UNIT 2
Event Marketing
Event Marketing:
Refers to the actual marketing of an
event by its organizers. For sports
events, this type of event marketing
can involve a number of different areas
of marketing
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What is SEM?
UNIT 2
Event Examples
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© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
Event Marketing
Event marketing has become a profitable
segment of the sports/entertainment industry
Marketers spent over $9.0 billion
on event marketing in 2010
The 2010 FIFA World Cup
generated a record $3.2 billion in
revenue (representing a forty
eight percent increase over 2006
World Cup revenues)
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© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
Event Marketing
Event marketing has become a profitable
segment of the sports/entertainment industry
The 2009 Bassmaster Classic set
an attendance record by drawing
more than 135,000 fans to the
event
The organizer’s of Montreal’s
International Jazz Festival operate
on a hefty $30 million budget
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© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
Event Marketing
Event marketing has become a profitable
segment of the sports/entertainment industry
L.A. Live (the entertainment
district in Los Angeles which is
home to the Staples Center,
Nokia Theatre, Conga Room and
Grammy Museum) played host
to over 1,000 events in 2009,
reaching over 10 million fans
Copyright
© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
Event Marketing
For sports events, event marketing can involve a
number of different marketing activities
 Recruiting athlete participation in event
 Creating a publicity strategy to increase coverage
of the event
 Promoting the event to boost attendance
 Selling sponsorships to corporations
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What is SEM?
UNIT 2
Event Marketing
The role of corporate support in event marketing
has increased dramatically in the past few
decades. Without sponsorships and corporate
support, many events would not be profitable.
The ADT Championship, one of the
LPGA's most prestigious events, was
canceled in 2009 because the event
sponsor, Stanford Financial, went
into receivership and the event
was unable to secure a new sponsor
in their place
Copyright
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What is SEM?
UNIT 2
The 5 P’s of Event Marketing
1) Participation
2) Product / Brand Experience
3) Promotion
4) Probe
5) Prospect
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What is SEM?
UNIT 2
The 5 P’s of Event Marketing
Participation: Getting consumers to attend the
event and interact with the company, whether
visually, verbally or interactively
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What is SEM?
UNIT 2
The 5 P’s of Event Marketing
Product / Brand Experience : Distributing
samples or having the consumer try on or try out
your product at the event
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© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
The 5 P’s of Event Marketing
Promotion:
Generating media
exposure by creating
stories within the event
and further increasing
corporate awareness
through promotions
Copyright
© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
The 5 P’s of Event Marketing
Probe: Conducting research before, during and
after the event to make sure that you are
effectively reaching and penetrating your target
audience
Prospect: Implies that companies should
approach event marketing as a long-term
commitment in order to see returns on investment
Copyright
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What is SEM?
UNIT 2
Event Planning
Key factors to consider when planning an event
 Working with vendors
 Ticketing & Admissions
 Facility selection
 Sponsorship
 Staffing & Volunteers
 Award Ceremonies
 Traffic & Parking
 Special Accommodations
 Security
 Weather
 Concessions
 Hotels & Lodging
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What is SEM?
UNIT 2
The Event Triangle
The 3 Key Components of the Triangle
1) The Event
2) The Sponsor
3) Spectators
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What is SEM?
UNIT 2
The Event
 Can be amateur or
professional
The Event:
 Typically provides some
form of entertainment for
spectators
 Provides exposure for
sponsors
Copyright
A function that will
draw participants,
spectators and
sponsors
© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
Event Examples
 Super Bowl
 Olympic Games
 Local “Blues”
and Music Festivals
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What is SEM?
UNIT 2
The Sponsor
Will utilize the event to
market its products or
services
Will leverage its
relationship to advance
future business
opportunities
Copyright
The Sponsor:
A company using the
event to reach
important
consumers
© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
The Spectator
Typically must pay to
attend the event
The Spectator:
Exposed to promotions
for the event and event
sponsors
Those attending the
event as a source of
entertainment
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© 2010 by Sports Career Consulting, LLC
What is SEM?
UNIT 2
Blank Slide Available
for Teacher Edits
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UNIT 2 REVIEW (ANSWERS)
What is SEM?
1)Define sports marketing and
entertainment marketing
Sports marketing is the act of using sports
as a platform to market products or
services and increase sales or the process
the of marketing and selling the sports
property itself
Entertainment marketing is the process of
developing, promoting, and distributing
products, or goods and services, to satisfy
customer’s needs and wants through
entertainment, or any diversion,
amusement, or method of occupying time
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© 2010 by Sports Career Consulting, LLC
UNIT 2 REVIEW (ANSWERS)
What is SEM?
2) Explain the two primary types of sports
and entertainment marketing
1-Marketing of sports & entertainment
2-Marketing through sports & entertainment
3) Compare and contrast sports marketing
and entertainment marketing
Sports are entertainment but several key
differences separate the two: sports are
unscripted, sports customers are extremely
loyal and an emotional attachment is very
prevalent in sports
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UNIT 2 REVIEW (ANSWERS)
What is SEM?
4) Describe the seven functions of marketing
1- Pricing
2- Distribution
3- Promotion
4- Financing
5- Selling
6- Marketing information-management
7- Product and service management
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© 2010 by Sports Career Consulting, LLC
UNIT 2 REVIEW (ANSWERS)
What is SEM?
5) Understand what makes sports and
entertainment products unique
Sports and entertainment products share
the same characteristics as services in
that they are often times intangible and
perishable.
Once a game or event has already taken
place, they no longer carry a value and
cannot be sold.
Copyright
© 2010 by Sports Career Consulting, LLC
UNIT 2 REVIEW (ANSWERS)
What is SEM?
6) Explain the concept of competition for
entertainment dollars
The role of the sports and entertainment
marketer is to find ways for consumers to
spend discretionary dollars with their
organization.
The competition for those discretionary
dollars is always on the rise with new,
innovative ways to entertain constantly
being introduced to the market
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© 2010 by Sports Career Consulting, LLC
UNIT 2 REVIEW (ANSWERS)
What is SEM?
7) Identify the five P’s of event marketing
1- Participation
2- Product/brand experience
3- Promotion
4- Probe
5- Prospect
Copyright
© 2010 by Sports Career Consulting, LLC
UNIT 2 REVIEW (ANSWERS)
What is SEM?
8) Explain the event triangle
The event triangle is the model for
studying the exchanges developed in
sports marketing.
It places emphasis on the relationships
between producers and consumers.
Three key components to the triangle
include the event itself, the sponsor(s)
and the spectators
Copyright
© 2010 by Sports Career Consulting, LLC
End Unit 2
Copyright
© 2010 by Sports Career Consulting, LLC