Sports & Entertainment Marketing

Sports & Entertainment
Differences in Marketing
Different Payers, Different Games
• The differences between sports and
entertainment can be found in three areas:
– Consumer loyalty
– Product
– Revenue Stream
Differences in Consumer Loyalty
• Sports fans enjoy the drama of real
competition and the unpredictability of
each game.
• Consumer loyalty occurs when
consumers are happy with a company’s
product and become repeat customers.
– For example, consumer loyalty may mean
always watching one team play on television
because you like that team the best.
Differences in Consumer Loyalty
• In contrast, the entertainment consumer is not
motivated by brand or team loyalty, but by a
desire for satisfying entertainment. The
entertainment industry is subject to trends that
dictate “what’s hot and what’s not.”
– For example, If a company’s movie, book, sitcom,
amusement ride, video game, magazine, CD, DVD, or
video does not deliver the expected level of
entertainment, the consumer will quickly turn to the
Differences in Consumer Loyalty
• Because of this difference in consumer loyalty,
marketers must identify the different marketing
goals for sports consumers and for
entertainment consumers:
– Job of the Entertainment Marketer: Find a Winning
Formula. Try to KNOW what consumers want.
CREATE that product.
– Job of the Sports Marketer: Find a Winning Team.
KNOW what consumers want. Try to DELIVER that
Differences in Product
• Another big difference between sports product
and entertainment product is the consistency, or
stability, of the sports product and the variability,
or changeability, of the entertainment product.
• In marketing a traditional product, marketers
have plenty of time to conduct research, run
tests, and plan launches and promotions.
• To some extent, sports as a product has the
same luxury because its core product remains
the same – a sports team, event, or facility.
Differences in Product continued
• For entertainment products, however, marketers
have to predict a trend or fad, and then change
the product to satisfy audience demand.
– For example, a movie release may be postponed or
cancelled because the movie’s subject matter is too
sensitive due to current events. In the case of the
2003 movie Phone Booth, the plot revolved around a
man pinned in a phone booth by a gunman. Its
premiere coincided with real-life shootings in the
Washington, D.C., metro area. Therefore, the studio
20th Century Fox postponed the movie’s release.
Sports events are usually not subject to the same
Differences in Revenue Stream
• Entertainment products can be developed
into merchandise, used for promotion, and
create profit through sales of ancillary
products, licensing, and royalties. Because
there are so many different types of
entertainment products, the streams of
revenue created by marketing products
are very diverse.
Differences in Revenue Stream
• A single film can generate many ancillary
products. The film can be sold to cable TV and
pay-per-view TV, and also rented as videos and
DVDs. The film can also be the basis for a
game, TV series, book, or clothing line.
• The products that make use of the original
creative idea or characters make a profit for the
owner through sales, royalties, and licensing
Differences in Revenue Stream
• With the exception of a championship game, one
sporting event does not usually produce the
same amount of revenue from merchandising
and royalties as might an entertainment event.
– For example, a single, regular-season National
Football League (NFL) game probably does not have
more economic impact than a Rolling Stones concert.
However, sporting events do have their own streams
of revenue from ticket sales, media advertising, video
games, and so on.