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:
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:
core product:
ancillary product:
Revenue:
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Marketing Similarities
continued
Piracy:
Place
Price
– Piracy
– Royalty
– Copyright
Royalty:
continued
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Marketing Similarities
continued
Promotion
product tie-in:
– Product tie-in
– Cross-promotion
cross-promotion:
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Marketing Similarities
Convergence expands the
potential for profit in sports
marketing and entertainment
marketing.
Convergence:
Convergence and crosspromotion help to develop
synergy.
Synergy:
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Risks and Risk
Management
In any industry, including the
entertainment industry, there
are risks.
Risks:
Successful sports and
entertainment marketers
develop risk management
strategies.
risk management:
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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:
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:
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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Attempt to answer with a
partner
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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