SEM1 1.02 A - Marketing • PE - Understand sport/event marketing’s role and function in business to facilitate economic exchanges with customers. • PI - Explain the nature of sport marketing • PI - Explain the nature of event marketing Define the term sport marketing • Sports Marketing: the process of planning and executing the conception, pricing, promotion, and distribution of sports ideas, goods and services to create exchanges that satisfy individual and organizational objectives – Satisfy the needs and wants of the consumer Identify categories of sport products • The Sporting Event: Service Product – Intangible: an experience you can see, feel & participate in – Perishable experience: Once over, the product is gone – The athletes/participants: make the game happen – The spectators/fans: create excitement and enthusiasm for the product – The facility: Time Warner Arena, Lowes Motor Speedway – where the product is offered Identify categories of sport products • Sporting Goods: Goods Product – Tangible, manufactured products that make the game possible. – Equipment, clothing, licensed merchandise • Personal Training: get ready to compete (good or service?) • Sports Information: ESPN, Sports Illustrated, newspapers, internet (good or service?) SEM1 1.02 Activity Goods & Services • Remember the segments we learned about in 1.01? NOTE: Check your unit notes!! • Select three of those segments and list 3 goods and services from each segment • After we have completed the activity you will share with two other students. All must agree the goods and services are correct • Several groups of 3 students will present to the class Describe categories of sport consumers • 1. Unorganized participants: walk in the woods, jogging • 2. Organized participants: have rules – NCAA, MLB, MBA, MMA – Amateurs are not paid to play, regulated on local, state, national level – Professionals are paid but follow strict rules by their governing body – their occupation (income) is playing the game • 3. Spectators/fans: observers of the sporting event – As important as the athletes due to the excitement they create • 4. Sponsors: businesses or organizations that pay to associate their names or products with a sporting event for recognition and affiliation benefits Example: NASCAR has many sponsors Describe the relationship between the growth and marketing of the sport industry. • A sports product (good or service) becomes more popular because of marketing – Explain and give examples • Sanctioning bodies like NASCAR, NFL and MLB establish rules and guidelines for all teams, participants and owners – allows national ads, etc • Marketing opportunities increase as the product grows resulting in increased sales and profits Discuss benefits from the development of sports marketing • Good for You – – – – Increases opportunity for employment Benefit those who participate either by playing or watching Recreation Entertainment • Good for the Local Community – Economic effect of a major event – Improve city’s image • Good for Society – Generates billions of dollars of revenue each year – More jobs – Multiplier effect SEM 1 1.02 Activity “Players” • Students remain at seats and provide examples of the following categories on same paper of other 2 activities – NOTE: you may not use the PPT examples • Unorganized – provide 2 examples & a characteristic • Organized – provide 2 examples & a characteristic • Sanctioned bodies – provide 2 examples & a characteristic • Spectators/fans – provide 2 examples & a characteristic • Sponsors – provide 2 examples & a characteristic • Students once again share with 2 other students Define the terms event marketing • Event Marketing: designing and developing a live themed activity, occasion, display or exhibit, such as a sports, music festival or concert to promote a product, cause, or organization. The event is produced and consumed at the same time and is normally an unique experience for the participant or spectator Identify types and categories of events • Corporate Events – Conferences, seminars, trade shows, team building, theme parties, VIP events, incentive travel • Private Events – weddings, birthdays, family events, anniversaries • Public Events – professional and/or amateur participants with spectators/fans – Concerts, NFL games, college or high school or recreational events Discuss benefits from the development of event marketing. • Start a dialogue: face to face marketing (viral marketing) • Personal connection: builds consumer trust for the product • Immediate fulfillment: produce and consume the product at the same time • Brand awareness: build awareness of your product by marketing the event - Examples: sales flyers, ads, promotion & PR – give example of this for a private event Target Marketing in the SEM Industry • IMPORTANT part of target marketing in the Sports and Entertainment/Event industry involves appealing to potential customers who have DISPOSABLE INCOME – WHY? – Disposable Income is the amount of money people have to spend or dispose of AFTER they have paid their taxes. – Appealing to consumers with disposable income is VERY important in the SEM Industry because the products associated are not necessary to live. Wants – SEM goods and services are products people buy AFTER they buy their necessities (example: bills, groceries). SEM 1 1.02 Activity • • • • • • • • • • • • • • • Read the Olympic articles and view the Ortega ad and respond to these questions http://www.youtube.com/watch?v=ADCxstTLFsw – Ortega ad Why is Usian Bolt an ideal candidate for product endorsement? Provide 3 names that were the most marketable names for sponsorship & promotional deals from the summer 2012 Olympics Why would amateur athletes want to endorse products? Why is Wheaties listed under the good section? What is Wheatie’s slogan? Who is Mary Lou Retton? What event did Bruce Jenner participate in? Who is Carl Lewis Why is Puma listed under the good section? Who sponsors the entire Jamaican track team? Puma’s sponsorship of Bolt has helped position the brand how? Why is Subway and Michael Phelps listed with the bad? What does it mean Phelps has overexposure? What is over-saturation? Why is the message & execution wrong of Phelps and Subway? Why did the article say Ortega is a confusing ad? Is it?