Transcript Changes in Marketing - Hatboro

Objectives
Explain how sports and entertainment marketers
use tools to sell their products.
Explain risks and risk management of sports and
entertainment events.
Identify differences between marketing sports
and entertainment products.
Changes in Marketing
Communicating through
promotion is more
important than ever.
promotion any form of
communication used to
persuade people to buy
products
New technologies have
broadened the scope and
reach of marketing
messages, and they can be
entertainment products
themselves.
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Marketing Similarities
The marketing of sports and
entertainment products differs
from marketing traditional
products in the following four
areas:
Product
– Endorsement
– Core product
– Ancillary product
– Revenue
continued
endorsement approval or
support of a product or
idea, usually by a celebrity
core product the main
product, such as sports
event, movie, stage show,
or book
ancillary product a
product related to or
created from the core
product
revenue gross income
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Marketing Similarities
continued
piracy the unauthorized
use of another’s music,
movies, or copyrighted
material
Place
Price
– Piracy
– Royalty
– Copyright
royalty a payment for
material that has been
copyrighted, or legally
declared as belonging to
the creator
continued
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Marketing Similarities
continued
Promotion
– Product tie-in
– Cross-promotion
product tie-in use of
ancillary products such
as merchandise as
promotional tools
cross-promotion any
form of communication
through which one
industry relies on another
industry to promote its
product
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Marketing Similarities
Convergence expands the
potential for profit in sports
marketing and entertainment
marketing.
convergence the
overlapping of product
promotion
Convergence and crosspromotion help to develop
synergy.
synergy a combined
action that occurs when
products owned by one
source promote the
growth of related products
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Risks and Risk
Management
In any industry, including the
entertainment industry, there
are risks.
risks unforeseen events
and obstacles that can
negatively affect
business
Successful sports and
entertainment marketers
develop risk management
strategies.
risk management a
strategy to offset business
risks
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1.
What is celebrity endorsement?
2.
What is the difference between core and
ancillary products?
3.
Give an example of synergy.
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Different Players,
Different Games
The differences between sports and entertainment
can be found in three areas:
Consumer loyalty
Product
Revenue stream
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Differences in Consumer
Loyalty
If sports fans feel their team
is trying to win, the team can
retain its consumer loyalty.
consumer loyalty
consumers’ attitude that
occurs when they are
happy with a company
and become repeat
customers
The entertainment consumer
is not motivated by brand or
team loyalty, but by a desire
for satisfying entertainment.
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Differences in Product
The sports product is consistent, or stable.
The entertainment product is variable, or
changeable.
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Differences in Revenue
Stream
The streams of revenue created by marketing
products in entertainment are very diverse.
Sporting events do not usually produce the same
amount of revenue from merchandising and
royalties as entertainment events.
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Differences in Revenue
Stream
Sports franchises earn
revenue from sponsorship.
sponsorship the
promotion of a company
in association with a
property
Sports franchises also earn
revenue from advertising
and broadcast rights.
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Similarities and Differences in Marketing
Sports Marketing
Consumer Loyalty
Consistent Product
Few Ancillary Products
Entertainment Marketing
Product
Place
Price
Lack of Consumer
Loyalty
Variable Product
Many Ancillary Products
Promotion
Convergence
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1.
List two differences in consumer loyalty
between sports and entertainment.
2.
What are differences between marketing
sports product and entertainment product?
3.
In what one way does the stream of revenue
in sports differ from the stream of revenue in
entertainment?
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Assign groups to look up
online and present
1. Define and Give an example of a royalty.
2. Find an example of cross-promotion for
a film.
3. Describe one risk involved in a sports
event and find an example online
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