Transcript Chapter 1 - businesseducationnation

Chapter 1
What Is Sports and
Entertainment Marketing?
1.1 Marketing Basics
1.2 Sports Marketing
1.3 Entertainment Marketing
Sports and Entertainment Marketing
© Thomson/South-Western
Lesson 1.1
Marketing Basics
Goals
 Describe the basic concepts of
marketing.
 Explain the marketing mix.
 Define the six core standards of
marketing.
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WHAT IS MARKETING?
 marketing
 the creation and maintenance of satisfying
exchange relationships
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Satisfying Customer Needs
 identify your customer and the needs of
your customer
 develop superior products
 operate your business profitably
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Different Generations
=
Different marketing strategies
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Companies have
created social media
campaigns that
encourage consumers
to take video of them
wearing, eating,
using their products
or services to entice
the newest and
younger generation
of adult consumers to
buy their products.
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Sports and Entertainment
Marketing
 Marketers of sports and entertainment
marketing must assess
 consumer demand
 the competition
 the financial valuation of the goods and
services they offer
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THE MARKETING MIX
 marketing mix
 how a business blends the following four
elements
1.
2.
3.
4.
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product
distribution
price
promotion
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The Marketing Mix
 product
 what a business offers to satisfy needs &
wants
 goods and services
 distribution
 the locations and methods used to make
products available to customers
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The Marketing Mix
 price
 amount customers pay for products
 promotion
 ways to make customers aware of
products
 encourages customers to buy
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Marketing Mix Considerations
 discretionary income
 the amount of money individuals have
available to spend after paying for
necessities
 Striking the right balance between
price, distribution and promotion is
important.
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A Marketing Mix Example in
the Sports Industry
 The product the Super Bowl offers is a game
between the best teams of the AFC and
NFC.
 Consumer costs extend beyond ticket prices
and include travel and lodging expenses.
 Distribution includes the location of the host
city and ticket sales.
 Promotion involves media outlets and
related-product contests.
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A Marketing Mix Example in
the Entertainment Industry
 State fairs need to





appeal to rural and urban residents
set reasonable ticket prices
advertise about the fair
determine fair location
plan ticket sales
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CORE STANDARDS OF MARKETING
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CORE STANDARDS OF MARKETING
 Distribution
 Distribution involves determining the best
way to get a company’s products and
services to customers.
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CORE STANDARDS OF MARKETING
 Marketing-Information Management
 gathering and using information about
customers to improve business decision
making
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 Pricing
 the process of establishing and
communicating to customers the value or
costs of goods and services
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CORE STANDARDS OF MARKETING
 Product/Service Management
 designing, developing, maintaining,
improving and acquiring products or
services to meet customer needs
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CORE STANDARDS OF MARKETING
 Promotion
 using a variety of communication forms,
including advertising, to distribute
information about products, services,
images and ideas to achieve a desired
outcome
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CORE STANDARDS OF MARKETING
 Selling
 any direct and personal communication
with customers to assess and satisfy their
needs
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 Financing
 A company must budget for its own
marketing activities and provide
customers with assistance in paying for
the company’s products and services.
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Lesson 1.2
Sports Marketing
Goals
 Define sports marketing.
 Explain the value of sports marketing to
the economy.
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WHY SPORTS MARKETING?
 demographics
 common characteristics of a group
 age, marital status, income, education
 sports marketing
 using sports to market products
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New Sports, New Opportunities
 continual innovation provides new
opportunities
 extreme sports
 arena football
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Gross Impression
 gross impression
 the number of times per advertisement,
game, or show that a product or service is
associated with an athlete, team or
entertainer
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Timing
 Fans want products and services that
identify them with winning teams and
athletes.
 Marketing efforts may need to be
tweaked based on changes in winning
trends.
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THE VALUE OF SPORTS
MARKETING
 Sports marketing is a multi-billion-dollar
global industry that has a definite
impact on the economy.
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Emotional Value
 Emotional connections to teams
motivate fans to buy tickets to games.
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So Many Channels
 High profile sporting events generate
strong promotional revenues for
broadcasters.
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Lesson 1.3
Entertainment Marketing
Goals
 Define entertainment.
 Describe the impacts of advances in
entertainment technology on
entertainment marketing.
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ENTERTAINMENT FOR SALE
 entertainment marketing
 influencing how people choose to spend their
time and money on entertainment
 Entertainment is the product to be
marketed (music, TV shows, Movies,
Theater, etc.)
 Entertainment is used to market other
products
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Entertainment Marketing
 Entertainment is the product to be
marketed (music, TV shows, Movies,
Theater, etc.)
 Entertainment is used to market other
products (Author appearing on TV show
to discuss new book)
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What Exactly is Entertainment?
 entertainment
 whatever people are willing to spend their
money and spare time viewing rather than
participating in
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EVOLUTION OF ENTERTAINMENT
AND ENTERTAINMENT MARKETING
 At the beginning of the twentieth
century, audiences needed to travel to
the entertainment source.
 Audience feedback was instantaneous
and live.
 Technology distanced entertainers from
their audiences.
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The Beginning of Change
 Disneyland represented a new
approach to the marketing mix of
entertainment.
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The Big Eye in Every Room
 The Early Days of Television and
Marketing
 TV changed the marketing of entertainment
in a profound way.
 Television’s Increasing Influence
 ratings
 the number of viewers the programming attracted
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Change Accelerated
 Technology improvements, including
the internet, have facilitated distribution
of sports and entertainment to the
masses.
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Technology and Customer
Feedback
 Audiences can use a variety of
communication technologies to provide
entertainment feedback. Ex: Social media,
text, calls, e-mail, etc.
 Reality shows – viewer participation in
results
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PERFORMANCE INDICATORS
EVALUATED
 Communicate an appropriate advertising
campaign through writing and speaking.
 Analyze relevant data to make recommendations
for an appropriate plan of action.
 Demonstrate critical thinking and problem-solving
skills when creating the advertising campaign.
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 Demonstrate teamwork to complete a group
project.
 Demonstrate advertising budgeting skills.
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THINK CRITICALLY
1. Why is an advertising campaign necessary to
overcome the city’s previous reputation?
2. Give several examples of activities other than
sporting events to attract customers
downtown.
3. What is the advantage of having new
condominiums in the downtown area?
4. Does the light rail system present an
advantage for your advertising campaign?
Explain your answer.
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