Transcript Similarities and Differences between Sports and

Similarities and Differences
between Sports and Entertainment
Marketing
Brainstorm
 How do you think sports and entertainment
marketing are similar?
 How do you think sports and entertainment
marketing differ?
Marketing Similarities
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Services not goods (usually)
Endorsements
Core and Ancillary Products
Pricing Problems
Product Tie-ins and Cross Promotion
Business Risk
Using Celebrity Endorsers = Same
Core and Ancillary Products = Same
Entertainment
Sports
• Core Product – the main product (sports event, movie, stage
show, etc)
• Ancillary Product – a product related to or created from the
core product
Pricing Problems = Same
 Pricing different than consumer products
 Price is set based on what theatres and sports teams
can charge
 Change more frequently based on demand
 Rarely lower prices
 Ticker scalpers and piracy
Product Tie-Ins and Cross Promotion = Same
 Product Tie in – use of ancillary products such as
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merchandise as promotional tools
Happy Meal at McDonald’s toy included character from
newest Disney film or sports figure bobble head
Film promotions on talk shows
Cross Promotion – any form of communication through
which one industry relies on another industry to promote
its product
Film promotion – celebrities use their personal appeal to
persuade viewers to buy products
Business Risk = Same
 Cancelled events
 Cancelled seasons
 Unpredictable nature of the product
 1994–95 NHL lockout, cancelled many of the games and
shortened the regular season to 48 games per team
 2004–05 NHL lockout, which cancelled all of the games
of the 2004–05 season
 2011 NBA lockout was the fourth lockout in the history of
the National Basketball Association
 1994–95 Major League Baseball strike was the
eighth work stoppage in baseball history
Revenue
Consumer Loyalty = Different
 Sports Fans are more loyal
 Entertainment interests often change through life
stages
Marketing Differences
• Consumer loyalty
• Sponsorship
• Revenue stream
Consumer Loyalty = different
 Sports marketers target a core group – try to maintain team
loyalty
 If an entertainment product does not deliver the expected
level of entertainment – consumers turn to competition
 Entertainment products do not enjoy the same stability as
sports products
 Entertainment marketers have to predict the trend or fad
and develop a product to meet it
Revenue Stream = different
 Entertainment products can be developed into
merchandise – used for promotion
 Create profit through sales of ancillary products
 Sports team usually does not produce the same
amount of revenue from merchandise and royalties
as does an entertainment venue
Sponsorship Revenue = Different
• Sports products earn more in sponsorship and
advertising/broadcasting rights
• Exclusive coverage of football games