Transcript Similarities in Marketing-

Changes in Marketing
Sports & Entertainment Marketing
Mrs. Wilson
Promotion
Any form of communication used to persuade people
to buy products through advertising, publicity,
personal selling, or sales.
Thirty years ago the tools to promote were totally
different!
Scope and reach are incredible now.
Sports & Entertainment Products
Different from traditional products
By nature, these products are not physical goods that
can be stacked on a store shelf
ESPN-themed restaurants do not sell tickets to a
game
They sell burgers and drinks by using the appeal of sports
Golf celebrities sell everything from cars to watches—
non-sports related products
Comparing Traditional to Sport
Marketing Mix
Component
Traditional
Entertainment
Sports
Light Bulb
Movie
Baseball Game
Product
Who is my
consumer?
Someone in the
dark needs it
Someone who wants
to be entertained by a
plot/character
Someone wants to
be entertained by
sports
Place
Where will I sell it?
In a local hardware
store
In local theaters,
stores, online, payper-view
At local stadiums,
sports bars, online,
TV
Price
How do I compete
for customers?
Price better for
quality than the
competition and
increases sales
Consumer choice to
buy a movie ticket is
not based on price
Consumer choice to
buy a baseball
ticket is not based
on price.
Promotion
How do I inform
customers?
Advertising in print,
TV, in store
Web site, in-theater,
TV previews, talk
shows, lunch boxes
Games on TV,
selling jerseys,
give-away, radio,
etc.
Endorsement
The approval or support of a product or idea, usually
by a celebrity lending his or her image or name to a
product
Not only in sports marketing
Celebrities and a “public persona”
Marketers must match their product to the right
celebrity
George Foreman endorsing Cover Girl??
Core & Ancillary Products
Core
The main product, such as the sport event, movie, stage
show, or book
Ancillary
A product related to or created from the core product
Name some core & ancillary…
Core
Movie
Ancillary
Soundtrack
VHS/DVD
Action figures
Revenue
Gross income
Generated by using core and ancillary products as
promotional tools
Occasion Appeal
Contributes to the entertainment value of the process
When fans get home, they can also go online and
purchase the soundtrack and book version of a film
They can download player statistics from a sports
web site, or they can catch the highlights of the
game on television
Price
Pricing sports & entertainment products is radically
different from pricing traditional consumer products
Movie theaters RARELY lower their ticket prices to
compete with each other
Price is set and uniformly adhered to
People are feeling they are getting more for their
money
Stadium seating
Food courts
Price Problems
Price becomes an issue when highly paid players and
celebrities go on strike for salary increases
Fan loyalty can be damaged
Scalping
Unauthorized ticket sellers who stand outside a game
Piracy
Unauthorized use of an owner’s or creator’s music, movies,
or other copyrighted material
Intellectual Property
An idea, concept, or written or created work that is
protected by copyright
Piracy can occur online
Street vendors—bootlegged items
Royalties are lost
Promotion
Product tie-in
The use of ancillary products such as merchandise as
promotional tools
Happy meal©
Cross Promotion
Any form of communication through which one industry
relies on another industry to promote its product
Late night TV appearances, web sites, word of mouth, chat
rooms, online voting surveys and….
BUZZ
A no or low-cost method of marketing associated
with people telling other people about a company's
products and/or services,
Buzz marketing is based on peoples' direct
experiences with specific services/products or on the
experiences others have related to them.
Both online and offline buzz marketing are
synonymous with word-of-mouth marketing and
networking
Convergence
Overlapping of product promotion
Studio may use TV advertising to promote a movie that will
one day be sold on TV
Web sites are used both as promotional tools and a source
of revenue hosting links and online shopping for
merchandise
This convergence or overlap expands the profit in
sports & entertainment marketing
Marketers must consider all the elements, obstacles
and opportunities and develop strategies for this
convergence or overlap
Synergy
A combined action that occurs when products owned
by one source promote the growth of related
products
Oprah Winfrey is a good example
Has an image as a “lifestyle guru”
TV show is core product
Visibility and viewer ship to promote ancillary products—
magazine, production company, and products she endorses
Risk and Risk Management
Risks
Unforeseen events and obstacles that can negatively affect
business
Illness or bodily injury, property damage, loss or damage to
equipment, event cancellation
Risk Management
A strategy to offset business risks
Insurance policies
If you were planning a rock concert,
what would you insure?
Public liability
Covers your liability against claims from the public while
attending your event. The premium is often dependent upon
the number of people attending your event.
The levels of cover can vary depending on your needs and
you should discuss these with the event insurance broker.
This cover is usually a compulsory element of an event
insurance policy.
If you were planning a rock concert,
what would you insure?
Property insurance
Covers the property used in the event.
The premium is usually dependent upon the value of the
property to be covered.
The levels of cover can vary depending on your event needs
and you should discuss these with the event insurance
broker.
Additional insurance…
Employers liability
Covers you as the organizer against any claims from any staff that
you might employ for the event. The premium tends to be in
relation to the number of staff which you employ for the event.
The levels of employers liability cover can vary depending on your
needs and you should discuss these with the event insurance
broker.
Cancellation and Abandonment cover
Covers your event against cancellation or abandonment,
postponement, failure to vacate, adverse weather and rainfall
affected and any other eventuality beyond the control of the
organizer of the event.
Covers can vary depending on your needs and you should discuss
these with the event insurance broker.
What is celebrity endorsement?
The approval or support of a product or idea
Can you give examples?