Lesson 2.1
Sports & Entertainment
Marketing Defined
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© 2013 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.1
"I'm tired of hearing about
money, money, money, money,
money. I just want to play the
game, drink Pepsi, wear Reebok.”
- NBA Star, Shaquille O'Neal
What is SEM?
MARKETING is the process of
developing, promoting, and distributing
products, or goods and services, to satisfy
customers’ needs and wants
The term “marketing” has grown to
encompass many business activities such
as selling, promotion and publicity
What is SEM?
LESSON 2.1
What is Sports &
Entertainment Marketing?
To define Sports & Entertainment Marketing, you
must first understand the foundation of the term:

Marketing

Sports

Entertainment
What is SEM?
LESSON 2.1
Sports
A source of diversion or physical activity engaged
in for pleasure. Sports can be a participation or
spectator activity, and it is a form of entertainment
either way
Sport, as used in contemporary sport management
and in relation to the sport business industry,
denoted all people, activities, businesses, and
organizations involved in producing, facilitating,
promoting, or organizing any sport business,
activity, or experience focused on or related to
fitness, recreation, sports, sports tourism, or leisure
What is SEM?
SPORTS INDUSTRY
The sports industry is the market
in which the businesses and
products offered to its buyers are
sport related and may be goods,
services, people, places or ideas
What is SEM?
LESSON 2.1
Entertainment
Whatever people are willing to spend their money
and spare time viewing rather than participating
What is SEM?
LESSON 2.1
LEISURE TIME
It is the goal of the sports
and entertainment
marketer to provide a
product or service that
can satisfy the needs and
wants of those individuals
who choose to be
entertained during their
leisure time
Copyright
Leisure time is the
time available to
people when they
are not working or
assuming
responsibilities, often
times referred to as
“free time”
© 2013 by Sports Career Consulting, LLC
What is SEM?
What is SEM?
Sports marketing is the act of using sports
as a platform to market products or services
and increase sales or the process the of
marketing and selling the sports property
itself
Entertainment marketing is the process of
developing, promoting, and distributing
products, or goods and services, to satisfy
customer’s needs and wants through
entertainment, or any diversion,
amusement, or method of occupying time
Lesson 2.2
The Fusion of Marketing
with Sports & Entertainment
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What is SEM?
LESSON 2.2
Marketing through Sports & Entertainment
Companies use sports and entertainment as
a vehicle to gain exposure for their products
Coca-Cola, McDonald’s, Panasonic,
Visa, General Electric and others
spending millions to sponsor the 2014
Winter Olympic Games in Sochi as a
tool to brand their product globally on
the international stage
Gatorade affiliating its product with
athletes like Derek Jeter, Peyton & Eli
Manning, Jimmie Johnson, Usain Bolt,
Sidney Crosby and Landon Donovan
What is SEM?
LESSON 2.2
Fundamental Concept of SEM:
Marketing through Sports & Entertainment
vs.
Marketing of Sports & Entertainment
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What is SEM?
Marketing through Sports & Entertainment
Companies use sports and entertainment
as a vehicle to gain exposure for their
products
HP serving as presenting sponsor of the
Sundance Film Festival
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What is SEM?
Marketing through
Sports & Entertainment
Product placement is a tactic
companies use to place their products
within a particular form of
entertainment to gain visibility or
exposure
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© 2013 by Sports Career Consulting, LLC
What is SEM?
Marketing through
Sports & Entertainment
Audi vehicles being
prominently featured in the
blockbuster film, Iron Man 3
Judges on the hit show
American Idol drinking Coke
products during episodes
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What is SEM?
Marketing of Sports & Entertainment
Marketing of Sports & Entertainment involves
the promotion and sales of the sports and
entertainment products themselves
The Potomac Nationals baseball club
selling special “Holiday” ticket packages
The Kansas City Royals branding the 2013
season with the slogan “This Year, We're
Trying to Win” in an effort to
communicate the message of re-building
a franchise to the fan base
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© 2013 by Sports Career Consulting, LLC
What is SEM?
Marketing of Sports & Entertainment
Marketing of Sports & Entertainment involves
the promotion and sales of the sports and
entertainment products themselves
Disney Studios spending over $250 million to
produce and promote the 2013 box office bust
The Lone Ranger. The Hollywood Reporter
recently suggested that, based on information
from industry insiders, marketing a film
worldwide now costs around $175 million
A country club offering a special
rate to increase its membership
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What is SEM?
Marketing of Sports & Entertainment
Marketing of Sports & Entertainment involves
the promotion and sales of the sports and
entertainment products themselves
Puma advertising the
launch of a new sneaker
or shoe line
FieldTurf selling and
installing a synthetic grass
football field at a local high
school
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What is SEM?
Discussion Topic
Marketing OF Sports:
The marketing OF sports occurs as
the Staples Center marketing staff
actively engages in the activity of
selling suites to corporations, thereby
marketing their products
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What is SEM?
Sports Management vs. Sports Marketing
Sports management is the study
and practice of all people, activities,
businesses or organizations involved
in producing, facilitating, promoting
or organizing any sport-related
business or product
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Sports Management vs. Sports Marketing
Although the terms are often used
interchangeably, sports management is best
described as the application of management
concepts and principles to the sports
industry while sports and entertainment
marketing refers to the marketing concepts
and principles to both the sports and
entertainment industries
What is SEM?
Sport management areas of
study might include:
 Sport law
 Facility management
 Human resources
 Sport governance
 Leadership
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What is SEM?
Examples of Sports Marketing
 Tostitos sponsoring the Fiesta Bowl
 A MLS team offering payment plan options for
season ticket buyers
 The Big East athletic conference agreeing to a 7 year
television contract in 2013 with ESPN worth an
estimated $130 million
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What is SEM?
Examples of Sports Marketing
 A corporation’s purchase of a courtside tickets in a
NBA Arena
 A sign or banner displaying a company’s logo at a
hockey rink
 Coca-Cola paying for “pour rights” at an event or
facility
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What is SEM?
Examples of Sports Marketing
 A local restaurant sponsoring the local high school
soccer team
 Blimp flying over sporting events
 Fans receiving free bobble
head dolls at a baseball game
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What is SEM?
Examples of Sports Marketing
 Nike partnering with Microsoft to launch fitness
technology with Nike+ Kinect Training
 Foot Locker stores offering special sales or coupons
to help increase sales
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What is SEM?
Examples of Sports Marketing
 Eli Manning hosting Saturday Night Live
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What is SEM?
Entertainment Marketing is the process of
developing, promoting, and distributing
products, or goods and services, to satisfy
customer’s needs and wants through
entertainment, or any diversion, amusement,
or method of occupying time
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© 2013 by Sports Career Consulting, LLC
What is SEM?
Examples of Entertainment
 Seeing the Houston Symphony perform at Jones Hall in
downtown Houston
 Attending a LSU Tigers football game
 Reading one of Suzanne Collins’ novels in
The Hunger Games trilogy
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What is SEM?
Examples of Entertainment
 Visiting the Seattle Aquarium
 Going to a Zac Brown Band or Adele concert
 Listening to the newest Justin Timberlake song
 Watching the Broadway musical “Lion King”
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What is SEM?
Examples of Entertainment
 Going to the Ringling Bros. and Barnum & Bailey circus
at the American Airlines Center in Dallas
 SeaWorld Orlando opening the new attraction
‘Antarctica: Empire of the Penguin’ and Universal
Orlando opening Transformers: The Ride 3D in 2013
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© 2013 by Sports Career Consulting, LLC
REVIEW
What is SEM?
1) Explain the two primary types of sports
and entertainment marketing
2) Compare and contrast sports marketing
and entertainment marketing
LESSON REVIEW (ANSWERS)
What is SEM?
1) Explain the two primary types of sports
and entertainment marketing
1-Marketing of sports & entertainment
2-Marketing through sports & entertainment
2) Compare and contrast sports marketing
and entertainment marketing
Sports are entertainment but several key
differences separate the two: sports are
unscripted, sports customers are extremely
loyal and an emotional attachment is very
prevalent in sports
Lesson 2.3
Sports ARE Entertainment
What is SEM?
Sports ARE Entertainment!
There are many
similarities between sports
and other forms of
entertainment as each
activity is one that
entertains or occupies
our time
Sports are a form of
entertainment
1. Watching a Broadway
show
2. Listening to music
3. Watching a movie
4. Watching a football
game
5. Playing a game of
soccer
Entertainment may be
presented in the form
of sports
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What is SEM?
Technology’s Impact on SEM
Sports ARE Entertainment
“I believe sports is entertainment. I know there’s athletic
excellence. But when I watch a game-let’s say I’m
watching Charles (Barkley’s) show on (TNT)-it’s not just
for the athletic excellence. Every piece of information is
available in that telecast: scores, highlights, standings,
analysis-0-right? I watch it because it’s entertaining. It’s
about being entertained. It’s about being consumed.
You’re a consumer, and you’re consumed by the
entertainment, you’re engaged by the entertainment.”
PETER GUBER
Chairman and founder of Mandalay Entertainment,
Co-owner of NBA’s Golden State Warriors
Former CEO Sony Pictures and Columbia Pictures
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What is SEM?
Differentiating Between
Sports & Entertainment
Unscripted:
Sports are
“unscripted”
Copyright
Consumers of sports do
not know the outcome of
the event in which they
are participating
© 2013 by Sports Career Consulting, LLC
What is SEM?
Differentiating Between
Sports & Entertainment
Sports entertainment
relies heavily on
emotion
Copyright
Consumers of sports
products have an
emotional investment
or interest in the
outcome of the event
(winning vs. losing,
close games vs.
“blow outs”)
© 2013 by Sports Career Consulting, LLC
What is SEM?
Differentiating Between
Sports & Entertainment
Customer Loyalty:
Sports expose
differences
in customer loyalty
Copyright
A customer decision to
become a repeat
consumer of a particular
product or brand
© 2013 by Sports Career Consulting, LLC
What is SEM?
Integrating Sports with Entertainment
Super Bowl Half-Time Shows
Major League Baseball / HBO’s
‘Game of Thrones’
ESPN’s ESPY Awards
Gorillaz new album / Converse
Cross Promotion:
The convergence of two
entertainment properties
working together to
market products or
services.
Pacers / Indy 500 promo
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What is SEM?
Integrating Sports with Entertainment
Beyonce performing at half time of the 2013
Super Bowl and Pitbull, Macklemore and Ryan
Lewis and Florida-Georgia Line performing at the
2013 Preakness Stakes
Major League Baseball (MLB) partnering with HBO
to cross promote Opening Day with season
premiere of hit series, “Game of Thrones”
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Indiana Pacers mascot Boomer
and the Indiana Pacemates cheerleaders
on site at the Indianapolis Motor Speedway.
What is SEM?
LESSON 2.3
Integrating Sports with Entertainment
Cross promotion can be an effective sales
and branding tool for all parties involved
Variety.com reports that a significant factor in
ESPN’s successful launch of its Chicago-based
website on all things Windy City was cross
promotion, suggesting the cable company used
“plenty of cross-promotion as a way to attract
listeners to the site”
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© 2013 by Sports Career Consulting, LLC
What is SEM?
Integrating Sports with Entertainment
It took just six months for ESPNChicago to become the
city’s top sports site, attracting about 590,000 unique
visitors in the month of June alone while the city’s
historic newspaper company’s (Chicago Tribune) online
sports section drew just 455,000 unique visitors
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What is SEM?
Integrating Sports with Entertainment
In 2011, 20th Century Fox engaged in several cross
promotional efforts, including a tie-in with TNT and the NBA
playoffs and an advertising campaign with Farmers
insurance, to promote the release of the film "X-Men: First
Class”, yet the film was largely underwhelming at the box
office, yielding around $36 million less in its opening
weekend than 3 of the other 4 installments of the film’s
franchise (the third film, “X-Men”, did just as poorly)
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What is SEM?
Integrating Sports with Entertainment
A badly botched a Spider-Man 2 promotion in which MLB
had planned to feature the Spider-Man logo on each base
during the All-Star Game provides a cautionary tale to
marketers considering cross promotional strategies.
The league received such opposition from fans and
baseball purists that the promo was eventually pulled.
+
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LESSON 2.3 REVIEW
What is SEM?
1) Compare and contrast sports marketing
and entertainment marketing
LESSON 2.3 REVIEW (ANSWERS)
What is SEM?
1) Compare and contrast sports marketing
and entertainment marketing
Sports are entertainment but several key
differences separate the two: sports are
unscripted, sports customers are extremely
loyal and an emotional attachment is very
prevalent in sports
Lesson 2.4
Primary Marketing Functions
What is SEM?
LESSON 2.4
Primary Functions of Marketing
 Pricing
 Distribution
 Promotion
 Financing
 Selling
 Information-Management
 Product and Service Management
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© 2013 by Sports Career Consulting, LLC
What is SEM?
LESSON 2.4
Primary Functions of Marketing
Pricing: Assigning a value to products and services
Price is determined on the basis of supply and demand
Tickets to the Super Bowl are very expensive because
demand is high.
In 2013, the New York Jets chose to lowering the prices on
about 5,000 seats combined for season ticket holders in the
300-level and in the club seating areas (in some cases
dropping prices from $700 to $255 for season tickets) at
MetLife Stadium based on the supply and demand that
impacted last year's sales in those areas
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What is SEM?
LESSON 2.4
Primary Functions of Marketing
Pricing: Assigning a value to products and services
Despite the fact that Disney announced ticket prices at both
Disneyland and Disney World while eliminating many of the
traditional discounts given to local residents, the 2013 summer
is expected to be one of the busiest for the theme parks in
years with attendance figures increasing significantly.
Tickets for the 2014 men's ice hockey gold medal game at the
Sochi Olympics were unavailable within a half hour of going on
sale online. Customers were able to buy a maximum of four
tickets, with prices ranging from $233 and $1,132.
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What is SEM?
LESSON 2.4
Primary Functions of Marketing
When demand fluctuates as frequently
as it does in the ticketing world,
companies must implement strategies
to help identify the best price points to
match demand.
This is why many organizations are
moving toward a “dynamic pricing”
structure where games in higher
demand cost more than the same ticket
for a game with lower demand…
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What is SEM?
LESSON 2.4
Primary Functions of Marketing
Distribution: Determining how best to get products
and services to consumers
EA Sports sells their video game products at
Target and Best Buy stores, knowing that
consumers shop at those stores for video games
and entertainment
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What is SEM?
LESSON 2.4
Primary Functions of Marketing
On Demand and streaming services have become
prevalent options for consumers in today’s
marketplace
As Apple tries to hold on to
market share, they are
constantly adding new
streaming content for their
Apple TV product (such as
HBO Go, ESPN) to appeal to
a broader base of
customers
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What is SEM?
LESSON 2.4
Primary Functions of Marketing
Sports and entertainment companies must
determine which distribution strategies will
help to maximize sales, whether that is mass
distribution in as many outlets as possible or
partnerships with individual retailers to
create exclusivity and drive demand.
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What is SEM?
LESSON 2.4
Primary Functions of Marketing
Taylor Swift’s 2012 album
release Red received a boost
because the album was
available at several
nontraditional retail outlets,
including Starbucks, Target,
Papa John’s Pizza and
Walgreens, selling over 1.2
million copies in its first week
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What is SEM?
LESSON 2.4
Primary Functions of Marketing
To promote the 2013 release of his album Magna Carta
Holy Grail, Jay-Z inked an exclusive (and lucrative)
partnership with Samsung to provide free copies of the
album to one million Samsung cell phone and tablet
owners before it was available for sale.
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What is SEM?
LESSON 2.4
Primary Functions of Marketing
Exclusive distribution doesn’t always guarantee
success however, illustrated by the disappointing
sales of Sears’ “Kardashian Kollection”
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What is SEM?
LESSON 2.4
Primary Functions of Marketing
Promotion: Communicating information about
products and services to consumers
GameFly, Inc., an online video game rental subscription
service, announced a national summer-long promotion
with Six Flags last summer, in which the online video
game rental company offered Six Flags guests extended
“free” trials of their subscription service as well as
providing one million gift cards available for giveaway at
toll booth exits at each park
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What is SEM?
LESSON 2.4
Primary Functions of Marketing
Financing activities could include:
1. Creating a budget for a company’s marketing
plan
2. Analyzing the cost effectiveness of existing or
past marketing efforts
3. Providing customers with flexibility in
purchasing company products or services
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What is SEM?
LESSON 2.4
Primary Functions of Marketing
In July of 2013, Nike
reduced its annual forecast
for sales and earnings after
expectations that revenue
in China would decline
throughout the remainder
of the fiscal year
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What is SEM?
LESSON 2.4
Primary Functions of Marketing
Budgets and projections/forecasts are never an
exact science.
The 2013 summer release of the film Star
Trek Into Darkness was forecast to break
the $100 million barrier but made just $84
million, not good news for the studio after
budgeting a reported $200 million to
produce the movie.
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What is SEM?
LESSON 2.4
Primary Functions of Marketing
In 2012 , the US Army chose to end it NASCAR
sponsorship after the Air National Guard spent
$650,000 to sponsor a 2010 NASCAR Sprint Cup
race that resulted in just 439 recruitment leads,
none of which ended up joining the Army
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What is SEM?
LESSON 2.4
Primary Functions of Marketing
Like many professional sports
franchises, MLB’s Washington
Nationals offer payment plans for
customers purchasing ticket
packages. According to the team’s
website, the Nats’ “Grand Slam EZ Payment Plan allows season
ticket holders to pay a fraction of
the total cost of their tickets in
easy monthly payments. This is
available for either Full, Half, or
Partial Season Ticket Plans.”
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What is SEM?
LESSON 2.4
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What is SEM?
LESSON 2.4
Primary Functions of Marketing
Selling: Communicating with consumers to assess and
fill their needs, as well as anticipating future needs
1. Cultivating prospective buyers (or leads) in a
market segment
2. Conveying the features, advantages and benefits
of a product or service to the prospective buyer
3. Closing the sale
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What is SEM?
LESSON 2.4
Primary Functions of Marketing

Many professional sports teams utilize a call center
to revenue generated by ticket sales

A call center is a physical location where calls are
placed, or received, in high volume for the purpose
of sales, marketing, customer service; typically
through the use of telemarketers

Call centers employ a staff to perform
telemarketing activity with the goal of selling
ticket packages over the telephone
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What is SEM?
LESSON 2.4
Primary Functions of Marketing
The University of Minnesota athletics department
outsourced their ticket sales operation to a third party
organization (Aspire Group) to help boost ticket sales for
Gopher athletic events.
Aspire deployed a full-time sales staff to work in
Minneapolis on the effort.
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What is SEM?
LESSON 2.4
Primary Functions of Marketing
Marketing Information-Management: Gathering
and using information about customers to improve
business decision making
Professional sports teams began offering smaller
ticket packages (half-season, quarter-season,
five-game packages) after determining through
customer research that full season ticket plans
were often too costly and/or time consuming for
many fans to purchase
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What is SEM?
LESSON 2.4
Primary Functions of Marketing
As visitors pass through the turnstiles at Disneyland in
California, guests are randomly selected to answer
interview questions from friendly staff members
equipped with hand held data recording devices. This
provides Disney management with up to date
information about park guests, such as where they
are from, how many are in their group, and how many
times they have visited the theme park in the past.
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What is SEM?
LESSON 2.4
Primary Functions of Marketing
One of Nike’s product management efforts includes
the “Nike Field Tester Program” in which selected
applicants will wear Nike shoes for typically 4-8
weeks. Testers keep a daily written account of
information relating to the product. Also, testers
are required log the number of hours the shoes
were worn each day, the surfaces shoes were worn
on, observations regarding the shoe’s fit,
performance and durability.
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What is SEM?
LESSON 2.4
Primary Functions of Marketing
Product/Service Management:
Designing, developing, maintaining,
improving, and acquiring products or
services so they meet customer needs
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What is SEM?
LESSON 2.4
Primary Functions of Marketing
Executives from professional sports teams are always
working to improve their product, recognizing the
importance of fielding a competitive team to meet the
demands of consumers (fans)
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What is SEM?
LESSON 2.4
Primary Functions of Marketing
Following in the footsteps of
the popular “app” ecosystem
which allows anyone to
create games for mobile
devices, Microsoft announced
that the release of its Xbox
One gaming console would
allow developers to create
their own games
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LESSON 2.4 REVIEW (ANSWERS)
What is SEM?
1) Describe the seven functions of marketing
1- Pricing
2- Distribution
3- Promotion
4- Financing
5- Selling
6- Marketing information-management
7- Product and service management