Section 2.1
Consumers – people who use products
Discretionary Income – money left after necessary
expenses are paid. Used for the desire of leisure
Kinetoscope – first device for viewing moving
pictures. The beginning of mass marketing.
Nickelodeon – First Indoor Movie Theater
William Veeck – Key figure in developing sports
marketing
Owned Cleveland Indians & Chicago White
Socks
Brought Marketing to baseball games
Fireworks, Special-Event Nights, 10c Hotdog
night
Adolph Zukor – founded Paramount Pictures
Marketed the first Sports Movie – The Prisoner
of Zenda – Famous players making famous
plays
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Cannot rely on only the entertainment value of
a product or service. All teams compete for
fans/market share/money
Vendors – sellers of products
Product – good or service any for-profit
industry sells to consumers (Tickets, all goods
pertaining to the team/city)
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5th P of the marketing mix – Promotion
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Any form of communication to persuade people to
buy a product
Sports & Entertainment Products – not always physical
goods. (Entertainment presentations, athletic
competitions)
Endorsement – approval or support of a product or
idea. Uses a celebrities image to sell the product
Core Product – Main product (Sport Event,
Movie, Book)
Ancillary Product – related to or created from the
core product (DVD Recording, Action Figures,
Pay-Per-View)
Core + Ancillary = Greater Revenue Overall
Price Problems –
Players Salaries – affect ticketing/merchandise
Piracy – unauthorized use of an owners created
music, movies, or art.
Scalping – Illegal selling of purchased tickets.
Cost the consumer more than face value
Royalty – payment for material that has been
copyrighted. Illegal copies decrease the royalty
Convergence – overlapping in product promotion
Expands the potential for profit
Websites, commercials, selling online and in
stores
Synergy – Combined action that occurs when
products owned by one source promote the
growth of related products
Risk – unforeseen obstacles and events that can
negatively affect business
(Athletes as sponsors – injury, bad life
choices)
Risk Management – strategy to offset business
risk
Hire firms to help identify possible risks
Specific contracts and insurance policies