Chapter Two

Chapter Two
Nick Michels
Russell Webb
Participation – Consumer/customer marketer
has sold participation in sports and
Consumers – USE PRODUCTS
Discretionary income – money left over paying
expenses (recreation)
Unions – Higher Wages, Better Work
Environment, & Reasonable Hours
A Brief History of Leisure
GDP vs.
Income of the world-
Middle East
Australia & Norway
Kinetoscope – a device for viewing a new
The creation of public transportation meant
that a working-class can use.
Entertainment for
William Veeck, a key figure in the development
of sports marketing.(owner of the White Socks.)
He believed that fans wanted to be more
involved than just the final score.
At the white socks games he would shoot off
fireworks, dazzling scoreboards, special-event
nights, other fun family events to make games
more enjoyable.
Development of Sports and
Entertainment Marketing
Vendors – selling of products
Vendors would compete for a share of money
people spend on recreation.
Product – a good or service that any for-profit
industry sells to its customers.
It isn't enough to just sell single game tickets,
they want to sell Season tickets
Marketing today
Status and exposure of sports stars on
television, in magazines, and in advertising are
equal to if not greater than celebrity
Use images to sell products
Due to their similarities, sports have blurred
lines between sports and entertainment
Similarities and Differences
in Marketing
Some marketers consider people as one of the 5
P’s in marketing mix
Promotion is a good way to advertise the
Sales are very important for selling the product
New technology has broadened scope of
marketing messages
Changes in Marketing
Professionals agree that sports and event
marketing are similar in that they market
4 P’s- Product, place and price and promotion
and it differs
Marketing Similarities
Sport and Entertainment products are different then consumer
products- not physical goods
Entertainment presentations and athlete competitions and can
be used to promote unrelated products
Endorsement- Approval or support of a product or idea,
usually by a celebrity
All celebrities have person persona that fans identify with to
feel connected to them
Marketers use celebs to market certain products to sell to
certain people
Core product- Main product such as sports event or book
Ancillary product- Product backed off core product
Revenue- Gross income
Companies use core and ancillary products to increase
Changing place component has changed
traditional marketing techniques.
E-commerce has changed where most people
shop traditional consumer products
Malls are competing with online shopping
Occasion appeal of events contributes to
entertainment value
Pricing sports and entertainment products is different from traditional
consumer products
Prices for movies and sports tickets have risen over the past 10 years
Customers believe they are getting more for their money
This kind of perception affects sports and entertainment marketing from
traditional marketing
Price becomes an issue when players and celebs go on strike for salary
Fan loyalty can be damaged
Ticket scalpers are unauthorized ticket sellers who sell tickets at a higher
Piracy- The unauthorized use of an owners music, movies or other
copyrighted material
Intellectual property- A idea that is stolen
Profit- Usually goes to a owner
Royalty- A payment for material that has been copyrighted or legally
declared to the creator
Marketers use cross-production and tie-in to
promote goods
Product tie-in- Use of ancillary products as
promotional tools
Cross-promotion- Any form of communication
through which one industry relies on another
industry to promote its products
Celebs use personal interviews and appeal to
sell movie
Websites provide info and highlights of a
product and word of mouth
Convergence- The overlapping of product
Websites are used a promotional tool and
source of revenue expands potential for profit
in sports and entertainment marketing
Synergy- A combined action that occurs when
products owned by one source promote growth
of related products
Convergence- Part of the
Marketing Mix
Risks- unforeseen events and obstacles that can
negatively effect business
Risk management- a strategy to offset business
Some insurance polies will reimburse for direct
and indirect losses
Both sports and entertainment products are
similar and share risks but differences require
marketers to adjust for each specific industry
Risk and Risk
Chapter Three
Differences in marketing
The differences between sports and
entertainment can be found in three areas.
Consumer loyalty
Revenue System
Different players, different
Consumer loyalty- occurs when consumers are
happy with a company’s product and become
repeat customers.
Where this differs in entertainment consumers
aren’t motivated by brand loyalty but the desire
for satisfying entertainment
People will not normally go see a bad movie
twice but fans will still go to games if their
team is on a losing streak
Differences in consumer
Where sports and entertainment differ in
product is in their consistency or stability of the
sports product
In entertainment the products variability, and
changeability is what differ.
Sports marketers core product doesn’t change
much throughout the years( team, event, and
Entertainment marketers have to predict trends
and change the product to satisfy audience
Differences in product
Entertainment products can be developed into
merchandise used for promotion, and create
profit through sales of ancillary products.
A single film can generate a lot of different
ancillary goods.
With the exception of a championship game
sporting events does not produce the same
amount of revenue in merchandise as an
entertainment event.
Differences in revenue